Document:

Exhibit 10.17

Management Services Agreement

This Management Services Agreement (this
“Agreement”)
is entered into as of August 11, 2011 by and among Kornit Digital
Ltd., an Israeli company, company registration number 51-319542-0
with its principal offices located at Haamal 12 St., Park Afek,
Rosh Haayin, Israel (the “Company”)
and Fortissimo Capital Fund II (Israel) L.P., a partnership
organized under the laws of the Cayman Islands, on behalf of the
several parallel partnerships and any affiliated entities thereof
with offices at 14 Hamelacha Street, Park Afek, Rosh Haayin
(“Fortissimo”).

	

the Company and Fortissimo have entered into a
Share Purchase Agreement dated July 18, 2011 (the
“SPA”); all
capitalized terms used and not otherwise defined herein shall have
the meanings ascribed to them in the SPA);

	

Whereas,

	

 

	

 

	

Fortissimo will purchase, subject to the closing
of the transactions contemplated under the SPA (the
“Closing”),
a substantial shareholding position in the Company and intends to
actively participate in the management of the Company, including by
way of election of members of the Company’s Board of
Directors (the “Board”);
and

	

Whereas,

	

 

	

 

	

the Company desires to retain management
services from Fortissimo pursuant to the terms and conditions set
forth in this Agreement, and Fortissimo agrees to provide such
services to the Company on such terms and conditions.

	

Whereas,

NOW,
THEREFORE, in consideration of the
covenants and conditions hereinafter set forth, the parties hereby
agree as follows:

1.    
Scope of Services

       
Management
Services

1.1.  Fortissimo, through its employees,
officers and directors, will conduct regular meetings and
discussions with members of the Company’s management, to
assist and advise them on matters concerning the affairs and
business of the Company and render such other management services
and advice as may be agreed to from time to time by the Company and
Fortissimo (the “Management
Services”).

1.2.  In rendering the Management Services
hereunder, Fortissimo shall cooperate with the Company and utilize
professional skill and diligence to provide the expertise required
in connection with such services. Fortissimo shall dedicate as much
time as will be reasonably necessary for the proper performance of
the Management Services.

       
board services

1.3.  Fortissimo is entitled, under the
terms of the SPA and subject to the Closing, to elect Four out of
seven members of the Board, including the chairman of the Board
(the “Fortissimo
Directors”). The services rendered by the Fortissimo
Directors will be referred hereinafter as the “Board
Services”.

1.4.  For the avoidance of doubt, it is
clarified that in serving as members of the Board, the Fortissimo
Directors, shall not be employees of the Company, nor shall the
payment of the Management Fees (defined below) by the Company
create employee-employer relations between the parties hereto or
entitle the Fortissimo Directors to any social benefits.

1.5.  In providing the Board Services, the
Fortissimo Directors shall be subject to any and all fiduciary and
other duties applicable under law upon members of the board of
directors.

 

2.    
Compensation

2.1.  In consideration of the performance
of the Management Services and the Board Services hereunder, the
Company shall pay to Fortissimo management services fees as
follows: (i) monthly management fees in the amount of ten thousand
United States Dollar (US$10,000) plus VAT (the “Management
Fees”); and (ii) an annual amount calculated as the
positive difference between 5% of the Company’s Net Income
(as defined below) in each fiscal year and the aggregate amount of
the Management Fees paid in such fiscal year (the
“Additional
Fees”); provided however, that the Management Fees
together with the Additional Fees paid in each fiscal year shall
not exceed two hundred and fifty thousand United States Dollar (US$
250,000). Each monthly Management Fee shall be paid not later than
the tenth (10th) day of each calendar month for services
rendered during the preceding calendar month. The Additional Fees
shall be paid no later than thirty (30) days from the date on which
the Company’s annual financial statements have been approved
by the Board. For the avoidance of doubt, the payments for 2011
only shall be pro-rated for the relative part of this year
commencing from the date of this Agreement.

       For purpose
of this Agreement the term “Net Income” shall mean the
amount of net income set forth in the Company’s respective
year-end financial statements, provided however, that it shall be
calculated based on actual research and development expenses
(rather than on R&D capitalization in accordance with
International Financing Reporting Standards (“IFRS”))
but after: (a) effecting a corresponding adjustment reflecting the
reduced tax resulting from this calculation; and (b) adding back
the applicable depreciation related to the capitalization
part.

2.2.  The Company will reimburse Fortissimo
for reasonable documented out-of-pocket business expenses borne by
Fortissimo or any of its employees, directors or officers in
connection with the provision of the Management Services, in
accordance with policies approved by the Board, provided that
Fortissimo shall notify the Company of such out-of-pocket expenses
prior to the actual spending thereof.

2.3.  All payments under this Agreement
shall be made against the issuance of valid invoices by Fortissimo
to the Company. Value Added Tax (“VAT”)
pursuant to applicable law shall be added to all payments
hereunder.

2.4.  Except for VAT, the Management Fees
and the Additional Fees shall be inclusive of all taxes that may be
incurred by the Company and/or Fortissimo in connection with the
payment thereof, and any such taxes shall be borne by Fortissimo.
Furthermore, the Management Fees and Additional Fees are the full
and final compensation for the provision of the Management Services
and the Board Services and shall be in lieu of any and all payments
that are due to the Fortissimo Directors in their capacity as
members of the Board or any of its committees to which they are
appointed, except for the right to receive options to purchase
ordinary shares of the Company granted to the Company’s
directors from time to time. Notwithstanding the above, Fortissimo
Directors who are not employees, directors or officers of
Fortissimo shall be entitled to such compensation, payments and
options as are provided to the other Company Board
members.

3.     
Term and Termination

3.1.  This Agreement shall only come into
effect at the Closing of the SPA, following receipt of the approval
of the Company’s shareholders at the shareholders
meeting.

3.2.  In the event such approval is not
obtained, this Agreement shall expire and become null and void,
without giving any right or claim to either party in this respect.
Nothing herein shall be deemed to derogate from Fortissimo’s
rights under the SPA.

3.3.  This Agreement may be terminated by
Board resolution that may be adopted at such time as the Board
includes less than two (2) Fortissimo Directors and shall terminate
automatically in the event that Fortissimo holds less than fifteen
percent (15%) of the Company’s issued share capital. In the
event of termination hereunder, Fortissimo shall be entitled to
receive a pro-rated part of the Management Fees and Additional Fees
until termination becomes effective.

4.    
Independent Contractor. Fortissimo
is an independent contractor and is not an agent or employee of the Company, and has no authority to bind the Company by contract
or otherwise. Fortissimo will perform the Management Services under the general direction of the Company.

2

5.    
Miscellaneous

5.1.  Entire Agreement. This
Agreement and the SPA contain the entire agreement of the parties
with relation to the subject matter hereof, and cancel and
supersede all prior and contemporaneous negotiations,
correspondence, understandings and agreements (oral or written) of
the parties relating to such subject matter.

5.2.  Amendment. Except for
termination under Section 3.3, this Agreement may not be modified
or amended except by mutual written agreement of the
parties.

5.3.  No Waiver. No failure,
delay of forbearance of either party in exercising any power or
right hereunder shall in any way restrict or diminish such
party’s rights and powers under this Agreement, or operate as
a waiver of any breach or nonperformance by either party of any
terms of conditions hereof.

5.4.  Assignment. Except as
provided herein, this Agreement shall not be assigned by a party
hereof to a third party without the other party’s prior
written consent and any attempt to effect an assignment of this
Agreement or any portion thereof without obtaining such consent
shall be null and void.

5.5.  Severability. In case any
one or more of the provisions contained in this Agreement shall for
any reason be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not
affect any other provision hereof and this Agreement shall be
construed as if such invalid, illegal or unenforceable provision
had never been contained herein

5.6.  Notices. Any notice under
this Agreement shall be in writing and shall be deemed to have been
duly given for all purposes (a) seven (7) days after it is mailed
by registered mail; (b) upon the transmittal thereof by facsimile
or email; or (c) upon the manual delivery thereof, to the
respective party’s address set forth in the preamble or to
such other address with respect to a party as such party shall
notify the other party in accordance with the above.

5.7.  Counterparts. This
Agreement may be executed in multiple counterparts, including,
without limitation, by facsimile signature, which taken together
shall constitute a single document.

5.8.  Governing Law and
Jurisdiction. This Agreement and the transactions
contemplated hereunder shall be governed by and construed in
accordance with the laws of the State of Israel, without giving
effect to rules respecting conflict of law that would cause the
laws of any jurisdiction other than the State of Israel to be
applied. The competent courts of Tel Aviv-Jaffa shall have sole and
exclusive jurisdiction to hear and resolve any disputes among the
parties related to this Agreement.

[Signature Page to Follow]

3

In Witness
Whereof, the parties have signed
this Management Services Agreement as of the date first set forth
above.

	

 

	

Kornit
Digital Ltd.

	

 

	

Fortissimo
Capital Fund II (Israel) L.P.

	

 

	

 

	

 

	

 

	

 

	

 

	

 

	

 

	

 

	

By:
Fortissimo Capital Fund II (GP), L.P., its general partner, by
Fortissimo Capital 2 Management (GP) Ltd., its general
partner

	

 

	

 

	

 

	

 

	

 

	

 

	

 

	

By:

	

/s/ Ofer Ben-Zur 

	

 

	

By:

	

 /s/ Yuval Cohen

	

 

	

Name:

	

Ofer Ben-Zur

	

 

	

Name:

	

Yuval Cohen 

	

 

	

Title:

	

CEO

	

 

	

Title:

	

CEO and Director 

	

 

	

 

	

 

	

 

	

 

	

 

	

 

	

By:

	

/s/ Moshe
Nur

	

 

	

 

	

 

	

 

	

Name:

	

Moshe
Nur

	

 

	

 

	

 

	

 

	

Title:

	

Chairman

	

 

	

 

	

 

Signature Page of Management Agreement

4

In Witness
Whereof, the parties have signed
this Management Services Agreement as of the date first set forth
above.

	

 

	

Kornit
Digital Ltd.

	

 

	

Fortissimo
Capital Fund II (Israel) L.P.

	

 

	

 

	

 

	

 

	

 

	

 

	

 

	

 

	

 

	

By:
Fortissimo Capital Fund II (GP), L.P., its general partner, by
Fortissimo Capital 2 Management (GP) Ltd., its general
partner

	

 

	

 

	

 

	

 

	

 

	

 

	

 

	

By:

	

 

	

 

	

By:

	

 

	

 

	

Name:

	

 

	

 

	

Name:

	

Yuval
Cohen 

	

 

	

Title:

	

 

	

 

	

Title:

	

CEO &
Dir

	

 

	

 

	

 

	

 

	

 

	

 

	

 

	

By:

	

 

	

 

	

 

	

 

	

 

	

Name:

	

 

	

 

	

 

	

 

	

 

	

Title:

	

 

	

 

	

 

	

 

Signature Page of Management Agreement

5Exhibit
10.19

 

English
Summary of the Lease Agreement dated as of March 25, 2010 by and between Benbenishti Engineering Ltd. (the "Landlord")
and Kornit Digital Ltd. (the "Company") (the "Original Lease Agreement"), as amended by an Addendum
dated November 21, 2011 and by an Addendum dated September 16, 2014 (collectively, the "Lease Agreement").

 

		•	Subject
                                         Matter of the Original Lease Agreement: Unprotected lease of the ground floor in
                                         the Building (as defined in the Original Lease Agreement) and 10 Parking Spaces (the
                                         "Original Premises") that will be used by the company for the purpose
                                         of manufacture and storage of ink products. Premises are located in Kiryat Gat, Israel.

		•	Term
                                         of Original Lease Agreement:

		o	The
                                         term of the Original Lease Agreement is five (5) years commencing on June 1, 2010 and
                                         ending on May 30, 2015 (the "Original Lease Period").

		o	The
                                         Company was given the option to extend the term of the Original Lease Period by a three
                                         (3) years period, ending on May 30, 2018 (the "Extension Period"). This
                                         extension option is subject to the condition that the Company will provide a written
                                         notice, at least 120 days before the end of the Original Lease Period.

		o	The
                                         term of the of the Original Lease Period is still in effect and, as mentioned above,
                                         expected to expire on May 30, 2015 unless the Company exercises its right to extend the
                                         Original Lease Period.

		·	Addendum
                                         to the Original Lease Agreement:

		o	On
                                         November 21, 2011, the Company and the Landlord signed an Addendum to the Original Lease
                                         Agreement, in which the company leased additional premises on the first floor of the
                                         Building (also in an unprotected lease) (the "Additional Premises Lease"
                                         and together with the Original Premises, the “Premises”).

		o	The
                                         term of the Additional Premises Lease was three (3) years, commencing on March 1, 2011
                                         (the "Additional Premises Lease Period").

		o	The
                                         Company was given the option to extend the term of the Additional Premises Lease Period
                                         by a two (2) year period, ending on May 30, 2015. The Company subsequently exercised
                                         this option.

		·	Premises
                                         Covered by the Lease Agreement:

		o	Under
                                         the Original Lease, the Company leased 1,082.5 square meters (gross) (approximately 11,500
                                         square feet) and 10 Parking Spaces. Pursuant to the Original Lease, the property was
                                         leased to the Company in an "AS-IS" condition, except for a 100 square meters
                                         space inside the property that was needed for renovation in order to accommodate it to
                                         office space.

		o	In
                                         addition, beginning in March 2011, the Company leased the Additional Premises, which
                                         is comprised of 291 square meters (gross) (approximately 3,100 square feet).

 

		·	Rental
                                         Fees:

		o	Under
                                         the terms of the Lease Agreement, during the first two (2) years of the Original Lease
                                         Period, the monthly rental fees for the Original Premises were NIS 30 per square meter
                                         plus VAT for the Original Premises and, through November 1, 2013, 26 NIS plus VAT per
                                         square meter for the Additional Premises (the “Basic Rental Fee”).

		o	From
                                         the period beginning on June 1, 2012 with respect to the Original Premises and the period
                                         beginning November 2, 2013 with respect to the Additional Premises, the

    	 

    	 

    

Basic
Rental Fee increases each year by 2.5% compared to the Basic Rental Fee in the previous year.

		o	In
                                         all cases, rental fees shall be increased (but not decreased) based on changes to the
                                         Israeli Consumer Price Index.

		·	Guarantees:

		o	Under
                                         the Lease Agreement, the Company provided to the Landlord (i) three (3) promissory notes
                                         for NIS 75,000 each;(ii) an unconditional bank
                                         guarantee in the amount of NIS 120,000, index-linked to the Israeli Consumer Price Index,
                                         which is to be valid for fourteen (14) months, and to be extended by the Company to remain
                                         in effect for the duration of the term of lease and for sixty (60) days thereafter;and
                                         (iii) a cash deposit equal to two (2) months’ rental fee.

		·	Other
                                         Terms under the Lease Agreement:

		o	The
                                         Company has a right to sub-lease parts of the premises, subject to the Landlord’s
                                         prior written consent (not to be unreasonably withheld), provided that
                                         the Company will remain responsible for fulfilling all of its obligations under the Lease
                                         Agreement. The Company may also transfer its rights to the premises to a substitute tenant
                                         on terms that are no less favorable than the terms of the Lease Agreement and subject
                                         to the Landlord’s prior written consent (not to be unreasonably withheld), provided
                                         that the lease period of the substitute tenant will be shorter or coincide with
                                         the lease period under the Lease Agreement and that the Company will remain responsible
                                         for all of its obligations for the Landlord under this agreement.

		o	The
                                         landlord has a right to sell or otherwise transfer the property to a third party provided
                                         that the transferee will accept all of the Landlord’s obligations under
                                         the Lease Agreement and that the Company’s rights under the Lease Agreement will
                                         not be affected.

		o	The
                                         Company agreed to assume responsibility for all fees, municipal or local taxes, utility
                                         payments and other similar fees or expenses; provided that the Landlord
                                         shall bear any and all taxes and fees.

		o	Each
                                         party has agreed to assume responsibility for any damage, injury or loss (bodily or otherwise)
                                         resulting from any act, omission or negligence on its part and the Company has assumed
                                         all such responsibility relating to its use of the Premises.

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