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Exhibit 10.3  

TRANSLATION FOR CONVENIENCE ONLY  

 
 

Service Supply Agreement  
    

Made and executed in Kibbutz Shamir this 9th day of February, 2005  

	BETWEEN:	 	Kibbutz Shamir Co-operative Society

Registered Society no. 57-000272-5

Mobile Post Upper Galilee 12135

(hereinafter: "the Kibbutz")
	

 	
 	
of the one part
	

AND:	
 	
Shamir Optic Development and Industry—Agricultural Co-operative Society Ltd.

Agricultural Co-operative Society no. 57-003541-0 or such limited company that will derive from the Agricultural Co-operative Society

Of Kibbutz Shamir, Mobile Post Upper Galilee 12135

(hereinafter: "the Company")
	

 	
 	
of the other part
	

WHEREAS	
 	

On the date of execution of this Agreement the Company is incorporated as an agricultural co-operative society limited; and
	
WHEREAS	
 	

It is the Company's intention to vary, on or about the Operative Date (as hereinafter defined) its corporate configuration in accordance with section 345 of the Companies Law, 5759-1999, from an agricultural co-operative society limited to a
company limited by shares in a manner whereby all its rights and obligations, including under this Agreement, will belong to and be within the responsibility of such limited company; and
	
WHEREAS	
 	

The Company is proprietor of a factory which develops, manufactures, markets and sells spectacle lenses and moulds for producing plastic spectacle lenses (hereinafter: "the Plant"); and
	
WHEREAS	
 	

The Kibbutz supplies to the Company various services that are required for the Plant for its operation according to a service agreement dated January 1, 1999 (hereinafter: "the Existing Service Agreement"); and
	
WHEREAS	
 	

The Company is desirous of continuing to acquire from the Kibbutz and the Kibbutz has agreed to continue providing the Company with, various services as more particularly set out in this Agreement;

It is therefore agreed, stipulated and declared between the parties as follows:  

	1.
	 Preamble and Interpretation

	1.1
	The
preamble to this Agreement and the Appendices thereto constitute an integral part thereof.

	1.2
	The
section headings in this Agreement are for convenience only and no meaning will be attributed thereto for purposes of interpreting this Agreement.

	1.3
	Save
as otherwise expressly stated, the following expressions used in this Agreement shall bear the meanings set out opposite them: 

"the
Service Fees"—as defined in section 3.1 hereof.

"the Plant"—as defined above.

"the Existing Service Agreement"—as defined above.

 

"the
Services"—the services set out in Appendix A
hereto.

"the Operative Date"—the date on which the Company will list its shares for trading on NASDAQ. 

	2.
	Supply of the Services

	2.1
	The
Kibbutz will supply to the Company and the Company will acquire from the Kibbutz the Services pursuant to the terms hereinafter set forth and in the Appendices thereto.

	2.2
	The
Kibbutz undertakes to provide the Services skillfully and at the customary level, use suitable materials, equipment and staff and operate in accordance with the provisions of law
in relation to providing the Services.

	2.3
	The
Kibbutz will provide the Services in accordance with the Company's reasonable instructions and demands.

	2.4
	The
Kibbutz will be entitled to provide the Services through Kibbutz members, salaried employees or sub-contractors, at its discretion, on condition the Kibbutz will be
exclusively responsible towards the Company for the quality of the Services and for all the obligations deriving from the employment of the staff through which the Services will be supplied.

	2.5
	The
Kibbutz hereby declares that the Services will be supplied to the Company by it or by persons on its behalf, as an independent contractor and it is agreed by the parties that the
Kibbutz will bear all payments and costs that will apply, if at all, originating from an employer-employee relationship or the termination thereof in respect of the kibbutz members, the employees and
sub-contractors and any other party through whom the Services will be supplied.

	2.6
	The
Kibbutz will not raise any claim of the existence of an employer-employee relationship between the Company and any person on its behalf through whom the Services will be supplied
and hereby undertakes to indemnify the Company in respect of any loss, damage, liability or expense, including legal costs, that will be incurred by the Company in respect of any claim of the
existence of such employer-employee relationship, regardless of whether such claim will have been raised by the Kibbutz or by any third party.

 

	3.
	Consideration

	3.1
	In
consideration of the Services, the Company will pay the Kibbutz a monthly sum equal to NIS. 92,000 (hereinafter: "the Service
Fees"). The Service Fees will be linked to the Consumer Price Index that will be known on the Operative Date.

	3.2
	The
Service Fees will be adjusted as follows:

	3.2.1
	At
the end of each five year period commencing from the Operative Date, the Service Fees will be examined and adjusted on the basis of the overall cost of the Services effectively
provided in the year preceding the update.

	3.2.2
	In
the event of the overall cost to the Kibbutz in respect of the Services in any year during the term of this Agreement having increased or reduced by 30% or more compared with the
Service Fees paid to the Kibbutz in respect of the preceding calendar year, disregarding non-recurring factors which are not in the ordinary course of business, the Service Fees will be
adjusted for the period commencing at the expiration of the calendar year in respect of which the check was made, at a rate identical to that of such increase or reduction.

	3.2.3
	Payments
in respect of food services will be adjusted on a current basis pursuant to the number of employees effectively enjoying such service. 

2

 

	3.3
	The
Service Fees will be paid on the 10th of each month in respect of the preceding month.

	3.4
	VAT
as required by law will be added to all the payments mentioned in sections 3.1 and 3.2 above and such payments will be paid against a tax invoice that will be submitted to the
Company by the Kibbutz.

	3.5
	Every
payment mentioned in this section which has not been paid on due date will bear arrears interest at the average rate customary for the time being in Bank Hapoalim B.M., Bank
Leumi le-Israel B.M., and the First International Bank of Israel Ltd., in respect of payments in arrear as from the maturity date thereof through the date of actual payment.

 

	4.
	Additional services

	4.1
	To
the extent the Company will be desirous of acquiring additional services, in addition to the Services (as defined above) (hereinafter: "the Additional
Services"), the Kibbutz will be granted a first right of refusal to supply such services.

	4.2
	Nothing
contained in this section shall operate to derogate from any provision by law which applies now or hereafter to any transaction between the Company and the Kibbutz.

	4.3
	The
provisions contained in sections 3.3 - 3.5 above will, mutatis mutandis, similarly apply to payment in
respect of Additional Services as provided in this section.

	4.4
	The
payment in respect of the Additional Services will be added to the Service Fees mentioned in section 3.1 above to which the provisions of sections 3.3 to 3.5 will,  mutatis mutandis, apply.

 

	5.
	Hot and cold water

	5.1
	Hot
and cold water will be supplied by the Kibbutz on the conditions and for the consideration mentioned in Appendix 5.1 (hereinafter: "the Water
Price").

	5.2
	Payment
in respect of the Water Price will be added to the Service Fees mentioned in section 3.1 above to which the provisions of sections 3.3 - 3.5
will, mutatis mutandis, apply.

 

	6.
	Term and termination of this Agreement

	6.1
	This
Agreement will endure for a period of 60 (sixty) months commencing from the Operative Date (hereinafter: "the Initial Period") and
will automatically be extended for further periods of five years each, unless either party to this Agreement notifies the other, in writing, of its desire not to extend the Agreement at least 12
(twelve) months prior to the expiration of the Initial Period or any extended period.

	6.2
	Each
party will be entitled to bring this Agreement to an end by written notice to the other party if the other party has committed a fundamental breach of this Agreement and failed
to cure the same within 30 days of receiving written notice from the other party of the existence of the fundamental breach.

 

	7.
	Condition precedent

	7.1
	This
Agreement is conditional upon the Company's securities being listed for trading on an American exchange. If, by the 31st day of December 2005 such condition precedent will
not have been fulfilled, this Agreement will be null and void and the parties will have no claim or demand or cavil in relation to the Agreement. For the avoidance of any doubt in the event of a
rescission of this Agreement as stated above, the relationship between the parties hereto will be governed by the terms of the Agreement dated January 1, 1999.

	7.2
	Immediately
upon the condition precedent being fulfilled, the existing Service Agreement dated January 1, 1999 will come to an end and no longer be of any effect and the
parties will 

3

 

act
in accordance with the present Agreement. Upon this Agreement entering into effect, the parties declare and covenant that they have no mutual claims and demands and waive any claim that may exist. 

	8.
	Arbitration

	8.1
	Any
disputes relating to this Agreement, the application and interpretation thereon will be referred to a mediation process and in the absence of a determination in that process, will
be exclusively subject to the determination of a sole arbitrator to be appointed with the consent of the parties, and, in the absence thereof, to be appointed by the Chairman of the Auditors Council.

	8.2
	The
arbitrator will be subject to substantive law and be bound to assign reasons for his decision but will not be subject to the rules of evidence.

	8.3
	This
section constitutes an arbitration agreement within the meaning of the Arbitration Law, 5728-1968.

 

	9.
	Whole Agreement, modification and waiver

	9.1
	This
Agreement and all the Appendices hereto exclusively determine and encompass all the conditions and provisions applicable to the engagement between the parties in relation to the
provisions therein contained. Commencing from the Operative Date, this Agreement supersedes any agreement, declaration and understanding made (if any) between either of the parties hereto and any
other party or parties to this Agreement, verbally or in writing, prior to this Agreement having been signed.

	9.2
	The
parties regard the overall stipulations contained in this Agreement as a single, overall obligation and declare that they have entered into this Agreement with the intention that
all the stipulations thereof will be fulfilled as part of a single transaction.

	9.3
	No
variation to the provisions of this Agreement will be valid or have any binding effect unless made in writing and duly signed by all the parties. 

No
waiver by a party to this Agreement of any of its rights will be of any effect unless made in writing and if valid will be effective at the time and for the particular matter for which it is made
only, and will only create no estoppel or forebearance as regards the future. 

	9.4
	Even
if this Agreement will be severable as stated in section 19 of the Contracts (General Part) Law, 5733-1973, if any right of rescission arises in favour of
either of the parties pertaining to a specific part or parts thereof, it will not be possible to rescind such part only.

 

	10.
	Costs

	10.1
	Each
party will bear its own costs in connection with this Agreement.

	10.2
	Stamp
duty, if applicable, to this Agreement, will be borne by the Company.

 

	11.
	Notices

	11.1
	Any
notice sent by one party to the other will be sent in writing by registered mail according to the addresses appearing in the preamble to this Agreement or be served personally.
Notice given by mail will be deemed to have been received within 72 hours of dispatch by registered mail. Notice given personally will be deemed to have been received upon delivery.

	11.2
	For
purposes of this section, Sabbaths and Jewish Festivals will not be taken into account. 

4

 

 
 

In witness whereof the parties have set their hands:    
    

	
 	
 	

 	
 	

 	
 	

 
	

/s/  UZI TZUR      
 Uzi Tzur	

 	

/s/  EFRAT COHEN      
 Efrat Cohen

	

 	

/s/  RAMI BEN-ZEEV      
 Rami Ben-Zeev	

 	

/s/  AVRAHAM HADAR      
 Avraham Hadar

	

Kibbutz Shamir	
 	

 	
 	

Shamir Optic Development and Industry—Agricultural

Co-operative Society Ltd.

5

 
 
 

Appendix 'A'
  Services to be supplied by the Kibbutz    
    

	1.	 	Food services;
	2.	 	Laundry services;
	3.	 	Exchange and communication services;
	4.	 	Decoration, garbage and maintenance services;
	5.	 	Local authority and municipal taxes;
	6.	 	Use of the Internet;
	7.	 	Use of infrastructures and maintaining common infrastructures outside the Plant's premises;

6

 
 
 

Appendix 5.1    
    (Hot and Cold Water)    
    

        Shamir will supply water to the Company to the standard of drinking water at a price of NIS 0.85 plus VAT per cubic meter. 

        The
above price is exclusive of the production price payable to the Water Commissioner by Law, such price to be borne by the Company according to the amount actually used. 

        Hot
water will be supplied at the price of NIS 8.5 plus VAT per cubic meter. 

7

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Service Supply Agreement

In witness whereof the parties have set their hands

Appendix 'A' Services to be supplied by the Kibbutz

Appendix 5.1 (Hot and Cold Water)QuickLinks
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Exhibit 10.4  

TRANSLATION
FOR CONVINIENCE 

 
 

Kibbutz Shamir    
    

 
 

Lease Contract for a Kibbutz    
    

 
 

Ministry of Justice
  Registration and Land Settlement Department    
    

In                           
    

	Application no.	 	Deed
no.                                    

Lease Contract for a Kibbutz 

Made
in Upper Nazareth on 27 December, 1990 

On
14th Teveth, 5751 

Between:

Israel
Lands Administration by virtue of its authority as the party administering Israel lands (hereinafter: "the Administration") 

Of
the one part 

And:  

 Kibbutz Shamir

(hereinafter: "the Kibbutz")  

	
	 	 
	STAMP

True copy of the original

4.2.1996

Signed (illegible)	 	Of the other part
	
	 	 

	

	
 	

 
	A true and proper copy of the original

Advocate

Date: 4 February, 1996

Signature (signed)	 	 
	
	 	 

 
 

TRANSLATION FOR CONVINIENCE    
    

	WHEREAS	 	The Kibbutz is a collective settlement which is a separate settlement maintaining a cooperative company of its members, organized on the foundations of common ownership of property, self-labors and equality and
partnership in all productive, consumption and educational areas, that has been classified by the Registrar of Cooperative Societies as a Kibbutz, and whose articles contain a provision whereby the society does not distribute its profits and its
property in any form whatsoever; and
	

WHEREAS	
 	

For the purpose of implementing the foregoing objectives, the Kibbutz has applied to lease the land described in this Contract on which it resides; and
	

WHEREAS	
 	

The above land is part of Israel lands, within the meaning of Basic Law: Israel Lands, and is administered by virtue of statutory provisions by the Administration, and the Administration agrees to lease the same to the Kibbutz for the purposes set
out in this Contract; and
	

WHEREAS	
 	

according to the terms of the Treaty between the State of Israel and the Jewish National Fund (hereinafter: "the Fund"), which was published in Government Publications no. 1456 dated 11 Sivan 5725
[1965] on page 1897, administration of the land owned by the Fund, including the leasing thereof and the grant or refusal to grant consent to transfer the leasehold rights therein is to be effected by the Administration, subject to the Memorandum and
Articles of Association of the Fund, and the Kibbutz hereby declares that it is aware that solely on the basis of this fundamental condition precedent is the Administration prepared to enter into this Lease Contract with it;

The parties have therefore agreed as follows:  

        Preamble to this Contract constitutes an Integral Part Thereof. 

Definitions.  

	1.
	In this Contract:

	(a)
	"Premises"—means
the land of the size and as detailed in Schedule no. 1 hereto including everything constructed and planted now or hereafter thereon, including
anything permanently affixed to the land.

	(b)
	"Israel
Lands Administration"—within the meaning of the Israel Lands Administration Law, 5720-1960, including any body in substitution therefor by virtue of
any law and including the Director of the Israel Lands Administration or any person in his stead or authorised by him.

	(c)
	"Israel
Lands Council"—within the meaning of the Israel Lands Administration Law, including any body in substitution therefor by virtue of any law
(hereinafter—"the Council").

	(d)
	"Agricultural
Settlement"—means land used or designed to be used by the Kibbutz and its members to produce agricultural produce and/or raise animals and fish for their
sustenance, or for landscaping and specific purposes and/or for purposes of residential buildings and/or for the Kibbutz's public purposes and/or for purposes of an agricultural settlement, service or
workshops, including buildings for purposes of youth clubs, Hebrew study and the like—all with the exception of a "Factory."

	(e)
	"Factory"—
(1) Use of an area of land being part of the Premises which is used or designed to be used for industry, health and leisure buildings, camping grounds, fuel
stations and commercial swimming pools or for any other business purpose not being an "Agricultural Settlement."

	(2)
	A
building or installation for service or a workshop designed for purposes of the Kibbutz and its members only (including for purposes of youth groups, Hebrew study
etc., as stated in subparagraph (d) above), which supplies service or 

 

workshop
services to other persons also, will not be deemed to be a Factory unless the consideration received from such person/s exceeds one hundred (100) new shekels per annum. This sum will
be linked to the Consumer Price Index of August 1981 and updated as of 1st of October in each year. 

	(f)
	"Zoning"—the
zoning of the land as prescribed in an Approved Plan within the meaning of the Planning and Building Law, 5725-1965, or any other statute in
substitution therefor (hereinafter—"the Plan", including a Special Plan within the meaning of such Law.

	(g)
	"Value
of the Land"—the value of the land to be prescribed by a government appraiser, as vacant land having regard to the zoning and/or use of such area of land to which
the evaluation relates.

	(h)
	"Estate"—an
area of land the size of which has been fixed by the Minister of Agriculture or any other body or person empowered by him for the purpose of settling a single
family on the Kibbutz.

	(i)
	"Consumer
Price Index"—the Consumer Price Index published periodically by the Central Bureau of Statistics or by any other official body in substitution therefor.

	(j)
	"The
New Index"—the Consumer Price Index last published prior to the actual payment date of the rent.

	(k)
	"The
Owners"—the owners of the land in whose name and on whose behalf the Administration administers, by virtue of the provisions of the Israel Lands Administration Law,
the land. 

Engagement of the parties  

	2.
	

	a.
	The
Administration hereby undertakes to lease to the Kibbutz and the Kibbutz hereby undertakes to take from the Administration on lease, the Premises for the purpose of the Kibbutz
settling on the Premises, all on the conditions and for the term prescribed in this Contract.

	b.
	The
size of the area leased has been fixed having regard to the number of Estates specified in clause 30(b) of this Contract. 

Term of the Lease  

	3.
	

	a.
	The
term of the Lease is 49 (forty nine) years as set out in clause 30(a) of this Contract, (hereinafter—"the Lease
Term"), which will be renewed as stated in clause 3(b) at the expiration of 49 years, for a further 49 years.

	b.
	Upon
the expiration of the First Lease Term, the Administration will be bound, at the request of the Kibbutz, to renew the Lease Term for a further period of 49 years
(hereinafter—"the Further Term") according to the conditions that will then be customary at the Administration with respect to leases of
land to Kibbutzim, for purposes of leases similar to those mentioned in clause 4 hereof.

	c.
	Renewal
of the Contract for such Further Term will be by way of the parties signing a new Lease Contract, in accordance with that stated in sub-paragraph (b) above. 

2

 

Purposes of the Lease  

	4.
	

	(a)
	The
Premises are being leased to the Kibbutz for purposes of an "Agricultural Settlement" and "Factory" (hereinafter—"the Purpose of the
Lease").

	(b)
	The
Kibbutz will not be entitled to use the Premises or any part thereof in any manner whatsoever otherwise than for the Purposes of the Lease as prescribed in this Contract. 

Limitations on Use of the Premises  

	5.
	

	(a)
	The
Kibbutz may, during the Lease Term, make use of the Premises for various uses within the scope of clause 4 above and vary the same from time to time without needing the
Administration's consent, all within the framework of the Purpose of the Lease mentioned in clause 4 above and subject to the conditions hereof. 

Notwithstanding
the foregoing, the Kibbutz undertakes not to submit plans for the construction of a building for the purpose of a Factory for the approval of the competent authorities, until after the
Administration signs the same; the Administration will be entitled to stipulate as a condition for its signature to the plans, that the Kibbutz fulfils the undertakings according to this Contract. 

	b.
	Notwithstanding
the provisions herein contained, the Kibbutz will not be entitled to use the Premises for a housing factory or a factory for dwellings.

	c.
	Without
derogating from that stated in clause 9(c) hereof, the Kibbutz will not be entitled to use the areas of the Premises for any use that is not in accordance with its
zoning.

	d.
	The
Kibbutz may use any part of the Premises that have been designated for a Factory, for an Agricultural Settlement also, on condition that it will not be entitled to receive back
from the Administration any payment that it has paid in respect of such area, including initial rent and annual rent that it has paid for it as a Factory. 

Rent  

	6.
	

	a.
	For
the areas of the Premises used as an Agricultural Settlement, the Kibbutz will pay—

	(1)
	Annual
rent at the rate of the annual rate for an Estate multiplied by the number of Estates that have been prescribed for this Kibbutz by the Minister of Agriculture or any other
body or person who has been empowered by him. Such rent will be set annually pursuant to the decisions of the Council that will be in force at the beginning of each year of the Lease.

	(2)
	The
number of Estates that has been fixed for the Kibbutz is as stated in clause 30(b) hereof.

	(3)
	The
annual rent for a single Estate is as set out in clause 30(c) hereof.

	b.
	For
areas of the Premises used for a Factory, the Kibbutz will pay—

	(1)
	Non-recurring
initial rent and annual rent or capitalised rent or royalties or any other payment, as customary with the Administration with respect to a Factory of such
kind. 

3

 

	(2)
	The
initial or capitalised rent will be a certain percentage of the value of the land used as a Factory, as determined from time to time by the Council with respect to the leasing of
land used for a Factory in a Kibbutz.

	(3)
	The
annual rent will be at the rate of 5% or such other rate as will be determined from time to time by the Council, of the value of the land after reducing the initial rent that will
have been paid pursuant to sub-clause (2) above.

	(4)
	The
annual rent will be linked to the last Consumer Price Index known on the date of determining the value of the land of such Factory (hereinafter: "the Base
Index"). 

In
the event of a change occurring in the Base Index—the annual rent will be varied on the eve of each year of the Lease in proportion to the variation rate between the last Consumer Price
Index known immediately prior to each year of the lease, on the one hand, and the Base Index, on the other. 

	(5)
	With
respect to a Factory existing before the time of the signature of this Contract for which a signed agreement exists with the Administration (hereinafter:
"the Previous Agreement")—the terms of this Agreement will replace those of the Previous Agreement, except for the terms thereof relating to
the rent and the rates thereof to which the provisions of the Previous Agreement will continue to apply until the expiration of the Lease Term according to such Agreement, and the Previous Agreement
will be regarded as having been cancelled without any consideration. 

The
Kibbutz hereby undertakes to indemnify and/or compensate the Administration in respect of any damage that will be incurred by it or in respect of any sum that it will be sued to pay and/or in
respect of any claim that will be filed against it by any third party as a result of such cancellation. 

	(6)
	As
regards a Factory that exists before the time of the signature of this Agreement for which an agreement with the Administration has yet to be signed and no initial rent has been
paid—the conditions of this Contract will apply, including payment of initial or capitalised rent that will be fixed according to the value of the land as of the date of the signature of
this Contract.

	(7)
	As
regards a Factory existing before the time of the signature of this Contract and for which an agreement with the Administration has not yet been signed but for which initial rent
has been paid—the conditions of this Contract will apply save that the Kibbutz will not be required to pay any additional payment of initial rent for the term of 49 years from the
date such initial rent has been paid. The operative date for determining the Index mentioned in sub-clause (4) above will be that of the valuation of the land according to which
such initial rent so paid has been calculated.

	(8)
	An
existing Factory to which the provisions of sub-clauses (5) and (7) above apply will be liable for payment, at the end of the term during which the
provisions of such sub-clauses apply, initial or capitalised rent, all if and as then determined pursuant to the decisions of the Council in respect of the residue of the Lease Term
according to this Contract.

	(9)
	Land
which is rezoned as a Factory after the date of this Contract—will have its value determined as of the date of rezoning or as of the beginning of the construction of
the Factory, as elected by the Kibbutz, and land which has been rezoned as a Factory before the signature of this Contract but has not actually being used for a Factory in practice—will
have its value fixed as of the date of the signature of this Contract or as of the date of the commencement of construction of the Factory, all at the election of the Kibbutz. 

4

 

Payment
of the initial rent or the capitalised rent for such land will apply on the date such value is determined. 

If
no notification is given by the Kibbutz to the Administration in writing within 60 days of the date of the rezoning with respect to the first case abovementioned, or from the date of this
Contract with respect to the second case mentioned above, of its electing one of the two above dates, the Administration will be free to determine the value of the land as of one of those dates, as it
wishes. The initial rent (but not the annual rent) will be at the rate which the residual Lease Term according to this Contract bears to the Lease term of 49 years. With respect to capitalised
rent such rent will be calculated for the residuary Term mentioned according to the capitalisation rules in force at the Administration at the time of payment. 

	(10)
	If
the use or zoning of any area used for a Factory is changed from one type of Factory to another, and the initial or capitalised or annual rent which has been calculated according
to the value of the land for the other type of Factory will be higher than that actually paid in respect of the area—the Kibbutz will pay the difference between the amount actually paid
and the amount applicable to the area in accordance with the other type of use.

	(11)
	The
Kibbutz undertakes to convey to the Administration promptly on demand all the documents and particulars that will be required for the purpose of determining the value of the
land. 

Date of Payment of Rent  

	7.
	

	a.
	Payment
of the annual rent will apply to each year in advance save that the parties may agree between them on different payment dates and conditions.

	b.
	The
initial or capitalised rent for parts of the Premises that were used on the signature date of this Contract for purposes of a Factory will be paid on the date of the signature of
this Contract, if not paid previously. The initial or capitalised rent for parts of the premises the zoning or use of which has been varied following the signature of this Contract, will be paid not
later than 30 days of the date of the Administration's demand.

 

	8.
	a.    A schedule of the existing Factories at the Premises as of the date of the signature of this Contract, containing an
itemisation of the name, area, rent for the Factory and the operative date of the Index with respect to each Factory (hereinafter—"the Factories
Schedule") is attached to this Contract as Schedule no. 2. 

A
map of the Factories (hereinafter:- "the Factories' Map") is similarly attached to this Contract as Schedule 3. 

	b.
	The
Kibbutz undertakes to notify the Administration immediately of any change applying following a rezoning or changes in the type of use or following the erection of new Factories on
the Premises and, pursuant to such notices, the Factories' Schedule, the Factories Map and the rent will be updated. 

Rezoning  

	9.
	

	a.
	The
Kibbutz will be entitled to pursue the rezoning of any part of the Premises provided it gives notice to that effect in writing to the Administration before embarking on such action 

5

 

and
subject to a further condition that the rezoning will not extend beyond the Purposes of the Lease or necessitate prohibited use according to clause 5(b) hereof. If, following such rezoning,
the Administration requires the registration of consolidation and/or distribution or severance and the like, the Kibbutz will be bound to effect all the acts required for implementing such
registration, all at is own expense. If the Kibbutz fails to do so within two years of the date of the demand the Administration will be entitled to do this instead of and at the expense of the
Kibbutz. 

	b.
	It
is a fundamental condition that the Kibbutz will not be entitled to commence using any area forming part of the Premises which has been rezoned for the purpose of a Factory unless
it first notifies the Administration in writing of the rezoning and has paid the Administration all sums it is bound to pay to it according to this Contract.

	c.
	In
the event of the use specified in Schedule no. 1 with respect to any area is otherwise than in accordance with the zoning and no approval was at any time given by the
Administration prior to the signature of this Contract, the Kibbutz undertakes to immediately do everything required in order to match the zoning of the area to the use that is actually made of it.

	d.
	The
Administration may submit applications to the competent authorities to vary the zoning of any area or areas within the Premises according to the needs of any of the State
authorities, and to work towards approving such applications, on condition it notifies the Kibbutz thereof in writing and in advance, ninety days prior to submitting the application. 

Liability of the Kibbutz in tort  

	10.
	

	a.
	The
Kibbutz undertakes to keep the Premises in the manner of a reasonable owner and to take all legal measures for ejecting any trespasses and removing nuisances, for the purpose of
protecting the Kibbutz's rights of possession in the Premises deriving from this Contract against any third party, except for the Administration and the owners or any of their successors, and the
Kibbutz will be entitled to act as owner of the Premises. The expenses of such operations by the Kibbutz and the consequences thereof will be borne solely by the Kibbutz.

	b.
	The
Kibbutz undertakes to fulfil all legal provisions relating to the use and/or implementation of any act at the Premises.

	c.
	The
Kibbutz is responsible towards the Administration or the owners in respect of any damage that will be caused to the Premises and/or to any body or the property of any third party,
including agents of the Administration following the possession and use of the Premises.

	d.
	The
Kibbutz undertakes to employ all precautionary measures required to prevent fires at the Premises, according to law, and bear all payments required by law regarding fire prevention
and extinguishing, whether such payment applies to owners or to occupiers.

	e.
	With
respect to the provisions of any law imposing duties on owners of land or any responsibility for any act or omission, including liability in tort, the Kibbutz will be regarded as
owner and solely bear all consequences and costs by reason of the nonperformance of such provision or by reason of such act or omission. Should suit be brought solely against the Administration based
on such a ground, and it fail to file a defence and in consequence become liable to make any payment—it will have no recourse against the Kibbutz to demand such payment, but if the
Administration files a defence and a copy thereof is furnished by the Administration to the Kibbutz, the Administration will be entitled to have recourse to the Kibbutz to make a demand for indemnity. 

6

 

Taxes and development payments  

	11.
	

	

	The
Kibbutz will bear all taxes, levies, city taxes and compulsory payments of their various kinds applicable by law to the Premises, whether falling on an occupier or
owner of the Premises, and whether or not presently or hereafter existing. It will further bear the expenses for the various developments which have already been made by it with its consent or at its
initiative, at the Premises. 

7

  

Transfer of leasehold rights and sub-lease  

	12.
	

	a.
	The
Kibbutz will be prohibited from transferring to others the leasehold rights or from leasing the Premises or any part thereof by way of sub-lease, or letting the
Premises or any part thereof or authorising the use or possession thereof or part thereof to others, directly or indirectly, or sharing with others the Premises or any part thereof or any right
deriving from the lease excepting by licence of use to youth groups, Hebrew study premises and the like.

	b.
	Notwithstanding
the provisions of sub-clause (a) above, the Kibbutz will be entitled, from time to time, after receiving the Administration's approval, and without
payment of any consent fees, to transfer by way of sub-lease its rights under this Contract with respect to any area designed or used as a Factory, except for a right of headlease, to a
body corporate exclusively controlled by the Kibbutz. 

It
is a fundamental condition for such licence that the sub-lease contract will contain all the provisions herein contained, mutatis
mutandis, recognising the intrinsic substance, and will not include any other provision, and it is a further fundamental condition that the exclusive control in such body
corporate will be retained by the Kibbutz for the entire duration of the sub-lease contract term. The Kibbutz will be entitled, by the sub-lease contract, to limit the use of
the area to be sub-let compared with the permitted uses according to this Contract. 

The
Kibbutz may determine the duration of sub-lease as it wishes, provided it does not extend beyond the Lease Term according to this Contract. The Kibbutz may determine in the
sub-lease contract, such provisions in respect of breach of contract as it deems fit, provided such provisions will not affect nor derogate from the Administration's rights under this
Contract. 

The
Kibbutz will be bound to furnish to the Administration a signed copy of the sublease contract and further produce, at any time required by the Administration, the appropriate documents required to
prove that the conditions mentioned for the transfer of rights have indeed been fulfilled. 

	c.
	The
Kibbutz will be regarded as the exclusive party controlling a body corporate only if the shareholder, member or partner other than the Kibbutz does not participate in the capital
of the body corporate, either by way of investment or by founders' loan to the body corporate or otherwise, except to the extent of the nominal amounts required by virtue of law in order to enable
such shareholder, member or partner to hold such capacity for the purpose of funding and maintaining the body corporate. 

Notwithstanding
the foregoing, a body corporate will not cease to remain in the control of the Kibbutz if it is granted a loan by its shareholder or member or partner which is part of an assistance
covenant organization within the meaning of the Cooperative Societies Regulations, 1934, in which the Kibbutz is a member, or a credit institution or financial or economic institution of such
assistance covenant or is related thereto—according to its rules, by branch connection, on condition that the foregoing will not prejudice the provisions contained in the first passage of
this sub-clause. The foregoing will similarly apply in a case where such shareholder, member or partner other than the Kibbutz is another or other kibbutz or kibbutzim provided the control
in such body corporate will remain vested in the Kibbutz under this Contract. 

In
this sub-clause "control" means a holding of 51% or more of the paid-up share capital of the body corporate, and the right to appoint one half or more of the directors of
such body corporate and its general manager. 

7

 

	d.
	In
the event of a breach of any of the provisions contained in this clause by the Kibbutz, this Contract will be void with respect to the area that has been transferred to such body
corporate, and the Administration will be entitled and have the right to take and regain possession of such area without being liable for any payment to the Kibbutz or the body corporate. The
Administration may exercise its rights under this clause only if, within 60 days of the Administration's demand, such breach has not been rectified.

	e.
	Nothing
contained in sub-clause (a) above, shall prejudice the right of the Kibbutz to authorize members of the Kibbutz and those mentioned in clause 1(d)
hereof, to have use of the Premises. 

Pledge  

	13.
	

	a.
	The
Kibbutz may not pledge or charge the Premises in any way, without first receiving the written consent of the Administration.

	b.
	The
Administration's consent to a pledge or charge of the Premises will be conditional on the stipulation that in the event of a realization of the mortgage or other charge, the right
charged will not be transferred except to a party which is, according to the decisions of the Council, fit to take a lease on Agricultural Land of the Administration and the Administration's written
consent has been given to such party, subject to the further condition that all the payments due to the Administration will be paid to the Administration out of the proceeds receivable following the
transfer of such right and only the balance of the proceeds will be applied in repaying the debt under such mortgage or charge.

	c.
	The
restrictions contained in sub-clause (b) above on the transfer of the rights following a realization of a mortgage or other charge will similarly apply to a
transfer occurring within the framework of bankruptcy or execution proceedings. 

Payments—Arrears and Refunds  

	14.
	

	a.
	All
payments due and owing from the Kibbutz to the Administration and not punctually paid will bear interest on arrears from the date due until actual payment, at the maximum rate
prescribed by statute for the time being, or at such rate as will be determined by the Minister of Finance or the Accountant-General from time to time with respect to payments in arrears resulting
from transactions with or undertakings towards the State. The Administration will be entitled to demand, in lieu of such arrears interest, linkage differentials to the extent of increases in the
Consumer Price Index as of the actual date of payment compared with the Index which existed on the date on which the Kibbutz was liable to make the payment in arrears, with the addition of lawful
interest.

	b.
	Where
the Administration is required to pay any sum by reason of any matter enumerated in clause 10 hereof, it will give 30 days' prior notice to the Kibbutz of its
intention to pay such sum to the demanding party. Should the Kibbutz fail to pay such sum within 30 days of receiving the notice or fail to take measures to stay or cancel the payment demand,
the Administration will be entitled to pay the sum to the demanding party and be reimbursed by the Kibbutz within 30 days of payment. Where the Kibbutz has, within 30 days of receiving
the demand, taken steps to stay, cancel or amend the payment demand and has also given notice to that effect to the Administration in writing, the Administration will not pay the amount demanded or
any part thereof until the clarification procedures have been completed, including legal proceedings on the objections raised by the Kibbutz. Should the Kibbutz fail to 

8

 

pay
the amount fixed as the sum it is liable to pay, the Administration may pay the same, and the Kibbutz will reimburse the Administration in up-to-date values together with
all costs, by no later than 30 days following the payment date. The Kibbutz shall indemnify the Administration in respect of any such sum or debt paid by the Administration following the
employment of enforcement measures against the Administration. 

	c.
	The
Kibbutz undertakes to forward to the Administration, immediately upon receipt, any document relating to a payment demand which applies to the Administration, but will be entitled
to reach an arrangement with the claimant in such claim, provided such arrangement will not be binding upon the Administration. 

Unused areas  

	15.
	

	a.
	Should
the Kibbutz cease using any area leased or part thereof for the Purposes of the Lease, the Administration will be entitled, after 60 days' prior notice sent to the
Kibbutz by registered mail, to rescind the Contract with respect to such part of the Premises that the Kibbutz has ceased using or has not used, and repossess the same. Lack of use for a period of
five years will not confer upon the Administration the right to sue for repossession of the area requested.

	b.
	The
Kibbutz undertakes, upon the Administration's demand, to appear at the Land Registry and sign all and any documents required in order to rescind the lease with respect to such area
from the remaining area leased that will remain in the Kibbutz's possession on the basis of this Contract. Should the Kibbutz fail to perform this undertaking, the Administration will be entitled,
after at least 90 days' prior notice to the Kibbutz, to take such action independently, at the expense of the Kibbutz, and the signature of the Kibbutz on this Contract constitutes the grant of
a power of attorney by the Kibbutz to the Administration to effect such acts. 

Natural resources and antiquities  

	16.
	

	a.
	This
Contract confers no rights whatsoever on the Kibbutz or its members in respect of mines, stone quarries, sand and gravel and any minerals of their various kinds that will be found
at the area leased, including oil, natural gas, water resources and antiquities (all the foregoing being hereinafter referred to as—"Natural Resources"). The provisions contained in this
sub-clause do not apply to the well belonging to the Kibbutz which it operates by virtue of a pumping licence granted to the Kibbutz by the Water Commissioner of the Ministry of
Agriculture.

	b.
	The
Administration may rescind the lease with respect to those areas within the Premises in which Natural Resources are found.

	c.
	The
Kibbutz may mine or remove in any other form from the Premises, solely for its purposes and use, stone, sand and gravel on condition it gives prior written notice to that effect to
the Administration and pays it such amount as will be determined by the Administration for those materials, and on the further condition that the removal of those materials will be subject to the
restrictions and conditions now or hereafter imposed by the Administration and/or by law.

	d.
	Subject
to receiving the Administration's prior written consent, including prior consent in writing with respect to the type of the minerals and the materials that will be quarried,
the Kibbutz may use certain of the areas of the Premises for purposes of a quarry-type Factory, 

9

 

such
use also to be subject to the restrictions and the conditions mentioned in sub-clause (c) above. 

	e.
	The
Kibbutz will have a preferential right to lease areas for which the lease will have been cancelled, as stated in sub-clause (b) and which will be leased for
purposes of sand, gravel and stone mining, this also being subject to the provisions of the Mining Ordinance, as in force from time to time, and according to such conditions as will be fixed by the
Administration or by law.

	f.
	If
the Lease with respect to areas according to sub-clause (b) will be cancelled and no compensation paid for the cancellation, the Kibbutz will have a preferential
right to receive the area after mining, quarrying, etc., as appropriate, ceases, if, after restoration, the area will be usable for the Purposes of the Lease stated in clause 4. 

Administration's Rights to carry out acts and Inspect the Premises  

	17.
	

	a.
	The
Administration and any person on its behalf will be entitled to enter upon the Premises at any reasonable time in order to examine whether the conditions of this Contract are being
fulfilled. It is hereby expressly agreed that such examination is not to be construed as imputing any knowledge to the Administration of any breach whatsoever of this Contract or as acquiescence to
such a breach, even if the Administration fails to take any measures by reason of such breach.

	b.
	The
Administration will have the right to transfer or allow others to transfer through, within or above the Premises water, drainage, sewage, gas pipes, electricity and telephone
pylons, run electricity, telephone wires and the like all according to the plan which will have been approved by the competent planning authorities or according to any other law. The Kibbutz will
allow the Administration, its workers and/or agents as well as any person authorized by it, to enter upon the Premises and carry out the works required for such purpose as well as all repairs which
will be required from time to time, provided 30 days' prior notice will be given to the Kibbutz except in cases which cannot be delayed in which case no advance notice will be necessary. This
right of the Administration shall not serve to affect the right of the Kibbutz to demand compensation from the party so authorized, in respect of financial damage incurred by the Kibbutz (to the
extent incurred) as a result of carrying out the work by such party or by any other persons on its behalf. The Kibbutz will be entitled to impose as a condition for implementing the work at the
Premises by the party authorized the giving of an appropriate guarantee by it to secure payment of compensation in respect of financial damage which may be caused to the Kibbutz following the
implementation of such work, the type and amount of the guarantee to be fixed by agreement between the parties within 15 days of the prior notice mentioned above have been given to the Kibbutz. 

Prior termination of the Lease  

	18.
	

	a.
	If
the Premises or any part thereof are rezoned by a valid plan or by any law, except for a rezoning according to clause 9(a) of this Contract, the Administration will be
entitled to bring the Lease under this Contract to an end with respect to such rezoned part, even if the Lease Term or any Further Term has not yet expired and repossess such area. The Administration
will give the Kibbutz prior notice of the date of such termination of the Lease, nothing in this clause mentioned being in derogation of that stated in the last passage of clause 9(d). 

For
purposes of this clause, the grant of a permit by law to erect a security installation will be tantamount to rezoning. 

10

 

	b.
	If
the Administration has notified the Kibbutz of the termination of the Lease as mentioned, the Kibbutz will be entitled to remove from the Premises all the fixtures and fittings that
are not permanently connected to the land.

	c.
	The
Kibbutz will be entitled to compensation for its rights and investments existing as of the date of the termination of the Lease in the area for which the above Lease has
terminated, including in the fixtures that remain in the area. Such compensation will be fixed by the Compensation Committee appointed by decisions of the Council (hereinafter: "the Compensation
Committee"). For purposes of this clause, investments of a body corporate controlled by the Kibbutz will be the equivalent of investments by the Kibbutz. The parties will be entitled to appeal the
decision of the Compensation Committee before an Appeals Committee to be set up by the Council.

	d.
	The
compensation fixed according to sub-clause (c) above will be paid within 30 days of the date of the Compensation Committee's decision, provided that by
such date, the area to be returned to the Administration's possession will have been redelivered, and in the event of the area not having been so redelivered to the Administration's possession within
30 days, the compensation will be paid on the date it is vacated and possession actually redelivered to the Administration. If payment on due date is not made, the Kibbutz will be entitled to
linkage differentials and interest in respect of the period up to the date of payment. 

Vacation of the Premises  

	19.
	

	a.
	If
the Lease has not been renewed at the expiration of the Lease Term or upon the expiration of the Further Term and also in the case of a prior termination of the Lease with respect
to the Premises or any part thereof by reason of the cancellation of the Lease, or for any other reason, as appropriate, the Kibbutz will be under an obligation to vacate the Premises or any part
thereof for which the Lease will have terminated, as mentioned, within 90 days, and leave the same vacant of any person and thing and redeliver possession thereof to the Administration in
proper condition and free of any debt, attachment, mortgage, charge or third party rights and it undertakes not to uproot any plantation nor destroy any building nor dismantle any thing permanently
affixed to the land (all the foregoing being hereinafter referred to as—"the Fixtures") unless required to do so by the Administration. 

In
the absence of the performance of such undertaking by the Kibbutz, the Administration will be entitled to enter upon the area and seize possession thereof. 

	b.
	Should
the Kibbutz be required by the Administration to remove the above Fixtures and fails to do so within the period prescribed by it, the Administration will be entitled to remove
the same at the expense of the Kibbutz. The Kibbutz will be bound to reimburse the Administration with all its expenses within 30 days of receiving a demand to do so from the Administration.

	c.
	If
the Kibbutz is not required by the Administration to remove the above Fixtures, and they are sold or leased by the Administration—the Kibbutz will be entitled, except in
cases where the Lease is cancelled following a breach of the Contract of Lease by the Kibbutz, to receive for those Fixtures from the Administration, payment from the proceeds so received by the
Administration, provided that in no event will such payment exceed the value of the Fixtures as determined by a government appraiser. In determining the value of the Fixtures, the value of the land or
the rights therein will be disregarded.

	d.
	The
provisions of sub-clause (c) above will not apply to the vacation of an area according to clause 18 hereof. 

11

 

Registration of the Leasehold Right  

	20.
	

	a.
	The
Kibbutz undertakes to do all that is required in order to enable the registration of the Premises in the Land Registration Registers as parcels registered in their entirety in the
name of the owners (hereinafter: "the Parcellation Registration"). 

The
Kibbutz further undertakes to do all that is required to register the Lease in its name in the Land Registry, and register the same within 2 years of the date of this Contract. 

	b.
	Registration
of the Lease in the Kibbutz's name in the Land Registration Registers will only be made after the areas of the Premises will be registered in the Land Registry as parcels
registered in their entirety in the name of the owners. 

Fundamental conditions and Rescission of the Contract  

	21.
	

	a.
	The
parties agree that a breach of any of the conditions contained in clauses 4, 5, 6, 7, 9(a) and (b), 10, 12, 13 and 16 is a fundamental breach.

	b.
	In
the event of a fundamental breach by the Kibbutz, the Administration will be entitled to rescind the Lease with respect to such part of the Premises in respect of which the breach
was committed, provided it gives the Kibbutz 90 days' prior notice to rectify the breach. Such notice will be in writing and be sent by registered mail.

	c.
	In
addition to the Administration's right to rescind the Contract, the Administration will be entitled to damages from the Kibbutz as well as to any other relief by law, consequent
upon a breach of the conditions of the Contract by the Kibbutz. The Administration will further be entitled, in the event of such a breach, to proper user fees from the Kibbutz at the customary rate
in the free market.

	d.
	

	(1)
	In
the event the Kibbutz ceases to be such within the meaning of the preamble to this Contract, in addition to any other event in which proceedings for the winding-up or
dissolution or striking out of the Kibbutz will be commenced, this Contract will lapse upon such proceedings commencing, whereupon the provisions contained in clause 19 hereof will,  mutatis mutandis, apply, and the Premises will be revert to the Administration.

	(2)
	Notwithstanding
the provisions contained in sub-clause (1) above, if the Kibbutz becomes an agricultural co-operative society other than a kibbutz, the
Administration will sign with such society a lease contract in the form and on the conditions that will be customary for the time being at the Administration with respect to the leasing of land to a
society of such type, provided that the Minister of Agriculture or any person appointed by him in that behalf will grant his consent to the signature of the Contract with such society and determine
the size of the area to be so leased and the boundaries thereof. 

Miscellaneous.  

	22.
	If the areas of the Premises have not yet been registered in the registers in the Land Registry as parcels registered in the name of
the owners in their entirety, the area of the Premises and the boundaries thereof may change or be rectified following a requisition according to the laws on expropriation and purchase, or following a
land arrangement scheme at the area, or following the exercise of the Administration's rights according to clause 15 hereof, or in order to adjust the area 

12

 

of
the Premises and/or the boundaries thereof, as this will be required in order to prepare a map for registration purposes. 

	23.
	Forbearance by the Administration or of the Kibbutz, as appropriate, from exercising any right conferred upon it according to this
Contract on account of the breach of any of the provisions thereof by the Kibbutz or by the Administration, as appropriate, will not be construed as a waiver of any right nor will it be regarded as
acquiescence to such a breach. 

Without
derogating from the generality of the foregoing, receipt of any payment from the Kibbutz following such a breach will not be regarded as consent on the part of the Administration to such
breach. 

	24.
	In the event of any other agreement existing between the Kibbutz and the Administration in connection with any area of the Premises,
this present contract will replace such agreement in all respects; and if the Kibbutz was liable to the Administration or any other body by virtue of the provisions of such agreement, for any payments
with respect to the period culminating on the commencement of the term of this Contract, the Kibbutz will remain liable for such payments. This clause does not prejudice that stated in the last
passages of clause 6(b)(5) and clause 6(b)(7) respectively, to this Contract.

	25.
	If the Administration and the Kibbutz agree to any amendment, modification or substitution of the Lease Contract for the Kibbutz in the
form for the time being customary at the Administration with respect to kibbutzim generally, such amendment, modification or substitution will apply as from the time the parties sign the same and
thenceforth from that date, the parties will act in accordance with the new form, and if the Lease is registered with the Land Registry the Kibbutz will do all that is required to register such
amendment, modification or substitution in the Land Registers.

	26.
	The Kibbutz will be prohibited, without receiving the prior written consent of the Jewish National Fund, to mine and/or uproot forests
and/or tree arbors, and/or trees generally that have been planted by the Jewish National Fund in the area of the Premises. This clause is in addition to and does not derogate from the provisions of
the Forests Ordinance.

	27.
	The stamp duty costs of this Contract will be borne in their entirety by the Kibbutz.

	28.
	The headings to the clauses of this Contract do not constitute part of the Contract nor will they be applied in the interpretation
thereof.

	29.
	Without derogating from the provisions of this Contract, it is agreed that for purposes of protecting the Kibbutz's right of possession
under this Contract against claims or third party pleas, except for the Administration and/or the owners and/or their successors or assigns, the Kibbutz will be entitled to act as owners of the
Premises on condition that the results of such activity will be solely borne by it.

	30.
	

	a.
	The
Lease Term commences on the 1st day of October, 1990 and will expire on 30 September, 2039.

	b.
	The
number of Estates existing at the time of signing this Contract is 120 (one hundred and twenty).

	c.
	The
annual rent per Estate is NIS. 247.94, although the Administration may adjust the same from time to time in accordance with the decision of the Council.  Translator's note: next passage deleted in the
original.

13

 

	31.
	The addresses of the parties are:

The Administration, Upper Nazareth, P.O.B. 580, Zip Code 17 000

The Kibbutz: Kibbutz Shamir, Upper Galilee, Zip Code 12 195

And any notice sent by one party to the other by registered mail will be deemed to have been duly received three days after the date of dispatch.

	32.
	Special conditions:

The Premises mentioned in clause 1(a) hereof relate to land having an area of 3,370.183 dunams and a further 427.146 dunams approximately. 

Details
of such land are registered in the Schedules marked "Schedule no. 1", and which are attached to this Contract and constitute an integral part hereof. 

 
 

In witness whereof the parties have set their hands:    
    

	The Administration	(signed)
	 	The Kibbutz	(signed)

	

1.	

Name	
 	

  

	 	Description	 	  

	 	Signature	 	  

	2.	Name	 	Rachel (illegible)

	 	Description	 	  

	 	Signature	 	  

	

 	

Signed and stamped bearing the stamp of the Israel Lands Administration on behalf of the State Development Authority Jewish National Fund

14

TRANSLATION FOR CONVINIENCE 

 
 

Schedules    
    

	

Schedule no. 1	
 	

—	
 	

Schedule of parcels

(clause no. 1(a))
	

Schedule no. 2	
 	

—	
 	

Schedule of factories

(clause no. 8(a))
	

Schedule no. 3	
 	

—	
 	

Factories' Map

(clause no. 8(a))
	

Schedule no. 3(A)	
 	

—	
 	

Factories' Map
	

Schedule no. 4	
 	

—	
 	

(clause no. 32)

TRANSLATION
FOR CONVINIENCE 

Page no. 1

Of 2 pages 

Schedule
no. 1 

To
the Lease Agreement dated 27/12/1990 with Kibbutz Shamir (clause no. 1(a)). 

	1.
	Area
of leased property 3,370.183 dunams

	2.
	Schedule
of parcels included in the leased property: 

	Block
 
	 	Parcel
	 	Area in dunams
	 	Use on the date of

signature of the

Contract

	13412	 	3	 	425.402	 	Agricultural settlement as determined in the Contract
	"	 	4	 	144.419	 	"
	13413	 	2	 	108.937	 	"
	"	 	3	 	328.799	 	"
	"	 	4	 	419.080	 	"
	"	 	5	 	237.150	 	"
	"	 	6	 	439.324	 	"
	"	 	7	 	243.111	 	"
	"	 	8	 	350.873	 	"
	"	 	10	 	165.936	 	"
	13414	 	2	 	102.952	 	"
	13414	 	3	 	294.041	 	"
	"	 	4	 	63.833	 	Factory as that term is defined in the Contract
	"	 	5	 	25.152	 	Agricultural settlement as defined in the Contract
	"	 	6	 	6.795	 	"
	"	 	8	 	3.809	 	"
	"	 	11	 	.696	 	"
	"	 	12	 	2.636	 	"
	"	 	13	 	.132	 	"
	"	 	14	 	.468	 	"
	"	 	15	 	.434	 	"
	"	 	16	 	1.329	 	"
	"	 	17	 	4.875	 	Factory as that term is defined in the Contract
	Israel Lands Administration

On behalf of the State

Development Authority

Jewish National Fund	 	 
	 	 	 	 	 	 	(signed)

Kibbutz Shamir

TRANSLATION
FOR CONVINIENCE 

Page no. 2

Out of 2 pages 

Schedule
no. 1 

To
the Lease Agreement dated 27.12.1990 with Kibbutz Shamir (clause no. 1(a)). 

	1.
	Leased
area 427.146 dunams approximately, as delineated in the frame in brown on the map on the scale of 1:10,000 signed by
both parties attached to this Schedule as an integral part hereof.

	2.
	In
the event of any divergence between the map set out in paragraph 1 above and the schedule the list of parcels in paragraph 4 hereof, the map will take precedence.

	3.
	It
is agreed between the parties that the final size of the leased property will be determined according to the maps to be prepared according to clause 20 of this Contract.

	4.
	Schedule
of parcels included in the leased property and their types of use: 

	Block
 
	 	Parcels in their

entirety
	 	Incomplete Parcels
	 	Use on the date of

signature of the

Contract

	

13413	
 	

 	
 	

9	
 	

Agricultural settlement as determined in the Contract
	

13419	
 	

 	
 	

4	
 	

 
	

Israel Lands Administration

On behalf of the State

Development Authority

Jewish National Fund	
 	

 
	

 	
 	

 	
 	

 	
 	

(signed)

Kibbutz Shamir

   
Schedule no. 3

To the Lease Agreement dated 27/12/1990 with Kibbutz Shamir

(clause no. 3(a)). 

Factories Map 

On
a scale of: 1:2500 

	 
	 	 
	 	Parcel
	 	 
	 	 
	 	 

	No. of plant on

map
	 	Block
	 	In whole
	 	In part
	 	Area of

property in
	 	Name of

Factory
	 	No. of file in

ILA

	 	 	13414	 	17	 	 	 	1.330 dunams	 	Optical

Industries

Plant	 	2000361-9
	 	 	 	 	 	 	 	 	3.545 dunams	 	" " "	 	214821-6
	 	 	13414	 	 	 	4	 	8.250	 	S.L.A.G.	 	214820-8

	

 	
 	

(signed)
	 	 	Kibbutz Shamir
	

Israel Lands Administration

On behalf of the State

Development Authority

Jewish National Fund	
 	

 

2

TRANSLATION FOR CONVINIENCE 

Schedule
no. 2

To the Lease Agreement dated 27/12/1990 with Kibbutz Shamir

(clause no. 8(a)). 

Factories Schedule  

	 
	 	 
	 	 
	 	 
	 	Date of linkage to the CPI (x)
	 	 
	 	 
	 	 
	 	 

	 
	 	 
	 	 
	 	Annual rent

on the date of

the signature of

this Agreement

(in shekels)
	 	Date of end of period according to clause 6b.(5) & 17
	 	 
	 	 
	 	 

	 
	 	 
	 	 
	 	Percentage of value period or capitalized as initial rent
	 	 
	 	 

	No. of

Factory on

the map
	 	Factory name
	 	Area of the

Factory in

dunams
	 	Month & year
	 	Points
	 	District file no.
	 	Account

Remarks

	 	 	Optical Industries Plant	 	1.330 dunams	 	 	 	4—1971	 	143.9	 	31/3/2020	 	80	%	200361-9	 	00254013
	 	 	-" -	 	3.545 dunams	 	 	 	 	 	 	 	27/11/2039	 	Capitalized	 	214821-6	 	352242911
	 	 	S.L.A.G. Factory	 	8.250 dunams	 	 	 	 	 	 	 	27/11/2039	 	Capitalized	 	214820-8	 	352242903

(signed)

Kibbutz Shamir 

	
	 	 
	Israel Lands Administration

On behalf of the State

Development Authority

Jewish National Fund	 	 
	
	 	 

QuickLinks

Kibbutz Shamir

Lease Contract for a Kibbutz

Ministry of Justice Registration and Land Settlement Department In

TRANSLATION FOR CONVINIENCE

In witness whereof the parties have set their hands

Schedules

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]