Document:

exv10w9

 

- 1 -

Exhibit 10.9

LEASE CONTRACT

Executed and signed in Yokne’am on this 9th day of the month of May 2001

BY:

	 	 	 
	 

	 	Sha’ar Yokne’am, Registered Limited Partnership
	 

	 	Partnership No. 55-001466-6
	 

	 	Through its managers, Mr. Ze’ev Sivan (I.D. 000685974) and Yitzchak Reich
(I.D. 127198) who are authorized to sign and bind the partnership whose
address for the purpose of this contract is the “Sha’ar Hacarmel” Complex,
No. 5 Nachum Chat Street, Tirat Carmel
And which will be referred to below for abbreviation purposes as “The
Landlord”
	 
	 	 
	 

	 	On the One Part
	 
	 	 
	AND BETWEEN:

	 
	 	 
	 

	 	Mellanox Technologies Ltd.
	 

	 	Registered Company No. 51-276328-5
	 

	 	Through Mr. Eyal Waldman (I.D. 56429095) who is authorized to sign and bind
the Company whose address for the purpose of this contract is “Tabor”
Building, Sha’ar Yokneam, Yokneam, which will be referred to below for
abbreviation purposes as “The Tenant”)
	 
	 	 
	 

	 	On the Second Part
	 
	 	 
	WHEREAS:

	 	The Landlord is the registered owner or Leaseholder,
pursuant to the matter at hand, and exclusive holder of
land with an area of approximately 62,000 square meters
(hereinafter – “The Land”) including complete lots and
partial lots in Bloc 11098, to the exception of part of
lots 21 and 82 which are not registered in the Landlord’s
name and which Sultam Ltd. who sold the rights to the
foregoing “land” to the Landlord undertook also to
purchase them and transfer the ownership or leasehold
rights thereof to the Landlord;
	 
	 	 
	AND WHEREAS:

	 	The land described above is in an area designated for
industry pursuant to the local city zoning plan C/297;
	 
	 	 
	AND WHEREAS:

	 	The Landlord developed a detailed plan to establish an
industrial park on the land or some of it known as “Plan
No. C/Bat/245 – Yokneam Junction Industrial Park”, that
was approved by the local district construction and
zoning committee, northern district and which obtained
final validity with respect to Amendment No. 1 and which
the

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 2 -

	 	 	 
	 

	 	Landlord intends to continue to develop additional detailed plans, including
but not limited to amendments and additions to the plan and amendment of the
foregoing Amendment No. 1;
	 
	 	 
	AND WHEREAS:

	 	Inter alia the buildings to be constructed in the
industrial park the Landlord is building on parcels 48,
49 as well as on lot no. 101 constituting part of parcels
50, 79 and 80 (partnership in land) in lot 11098 a
high-tech industrial building known as the “Hermon
Building”;
	 
	 	 
	AND WHEREAS:

	 	The Tenant is interested in leasing a net area of 3,332
square meters on levels *18.88 and *22.72 (on floors 4
and 5) of the “Hermon Building”, marked in yellow on the
building plans attached hereto as Appendix A to this
contract in order to operate its factory therein pursuant
to the “purpose of the lease” as defined below;
	 
	 	 
	AND WHEREAS:

	 	The Tenant’s factory is an approved enterprise under the
Encouragement of Capital Investments Law 5719-1959 an
issue that constituted a material consideration by the
Landlord to lease the premises to the Tenant and upon
determining the rent and the terms of the lease;
	 
	 	 
	AND WHEREAS:

	 	The premises are located in a new building, which the
construction thereof will be completed in 5762 (2001) and
that therefore the Tenants Protection Law (Consolidated
Version) 5732-1972 (hereinafter – “The Law”) will not
apply to the lease;
	 
	 	 
	AND WHEREAS:

	 	The Landlord is entitled and may lease the premises to
others by such a manner and terms specified in this
contract below;
	 
	 	 
	AND WHEREAS:

	 	The Tenant requires the premises for a limited period and
this – solely to conduct its business as a high-tech
factory for the development, research and manufacturing
of advanced technological products (above and below –
“The Purpose of the Lease) from within the premises;
	 
	 	 
	AND WHEREAS:

	 	The Landlord declares that pursuant to the CBP and the
building permit in relation to the “Hermon Building” a
business as stated in the “purpose of the lease” can be
conducted from within the premises;
	 
	 	 
	AND WHEREAS:

	 	The Landlord wishes to lease the premises to the Tenant
and the Tenant wishes to lease the premises from the
Landlord and all this by a lease that is not subjected to
the various Landlord and Tenants Protection laws,
including an unprotected lease pursuant to the Tenants
Protection Law (Consolidated Version) 5732 -1972 and in
accordance with the terms and provisions of this
contract;

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 3 -

	 	 	 
	AND WHEREAS:

	 	The premises have never been leased to the Tenant and/or
other tenants with key money and the Tenant and/or any
third party never paid the Landlord key money and/or any
other consideration to lease the premises and therefore
it is stipulated and agreed between the parties that the
various Landlord-Tenants Protection laws will not apply
to the lease under this contract.
	 
	 	 
	AND WHEREAS:

	 	The Tenant is willing to lease the premises for the
stipulated lease period and pursuant to the terms set
forth in this contract below and to undertake to fulfill
all the terms and provisions contained in the contract.

Therefore It Is Agreed and Stipulated Between The Parties As Follows:

General

	1.	 	The preamble above constitutes and integral part of this contract.

Definitions

	 	 	 	 	 
	2.

	 	In this contract:	 	 
	 
	 	 	 	 
	 

	 	“The Landlord” -
	 	Sha’ar Yokneam, Registered Limited Partnership No.
55-001466-6.
	 
	 	 	 	 
	 

	 	“The Tenant”-
	 	Mellanox Technologies Ltd. (P.C./ 51-2763280-5).
	 
	 	 	 	 
	 

	 	“Area A” or

“The Land” -
	 	
The land with an area of approximately 62,000 square meters in Bloc
11098, including the parcels known as numbers 33, 34, 36, 37, 40, 41, 42, 43, 44, 45,
46, 47, 48, 49 and 50 (in their entirety) and some of parcels (areas) of the land known
as numbers 21, 22, 23, 24, 30, 31, 32, 35, 38, 39, 79, 80 and 82.
	 
	 	 	 	 
	 

	 	“The Detailed Plan”-
	 	A detailed plan called “Plan No. C/Bat/245 – Yokneam Junction
Industrial Park”, that was approved by the district construction and zoning committee,
northern district, on 18.09.95 and received final validity including but not limited to
the amendments and additions that were and/or will be made to the foregoing plan with
time and any detailed plan or other plan to be approved with time with respect to the
Landlord’s areas of “land”.
	 
	 	 	 	 
	 

	 	“Industrial Park”

or “The Project” -
	 	
Industrial Park which the Landlord is establishing on Area
A based on the detailed plan and which the Landlord will continue

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 4 -

	 	 	 	 	 
	 

	 	 	 	to establish on additional areas pursuant to plans to be approved.
	 
	 	 	 	 
	 

	 	“The Building”

or “Hermon Building” -
	 	
A building for advanced industries (high-tech) the plans of
which are attached to this contract as Appendix A, which is currently being
built and will constitute part of the “industrial park”.
	 
	 	 	 	 
	 

	 	“Public Areas” or

“Public Areas of the
Building”
	 	
All the areas of the “building” including all its floors to be determined and
defined by the Landlord, from time to time as public areas serving all the building and
tenants therein, including but not limited to stairwells, elevator shafts, utility
rooms, engine rooms, electricity rooms and the rest of the rooms or areas containing
facilities servicing all the building, access ways, corridors, hallways and all other
areas provided that they are not located or designated to be uniquely occupied by one
of the tenants or users of the building.
	 
	 	 	 	 
	 

	 	 	 	The Landlord will occasionally be entitled to add to the public
areas of the building or derogate from the areas and make them
available for the exclusive use of a specific tenant or user
provided that the public areas of the building will always be areas
serving or designated for the use of all the tenants and occupiers
of the building or a specific floor therein.
	 
	 	 	 	 
	 

	 	“The Premises” -
	 	The premises described in Section 7 below to this contract.
	 
	 	 	 	 
	 

	 	“The Management
Company” -
	 	The Landlord itself or a company to be established by the Landlord or which the
Landlord engages in a contract with to manage, maintain and render services to the
“industrial park” and/or to the “building”, or a company which the Landlord grants the
management, maintenance and rendering of the foregoing services to and all pursuant to
the matter at hand and based on the Landlord’s exclusive and absolute choice and
discretion.
	 
	 	 	 	 
	 

	 	“Management
Contract” -
	 	The management contract to be signed between the Landlord (or the Management
Company) and the Tenant.
	 
	 	 	 	 
	 

	 	“Tenants Protection

Law”-
	 	Tenants Protection Law [Consolidated Version], 5732 – 1972.

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 5 -

	 	 	 	 	 
	 

	 	“Encouragement of

Capital Investments

Law”-
	 	
Encouragement of Capital Investments Law, 5719-1959.
	 
	 	 	 	 
	 

	 	“Representative Rate”

or “The Dollar

Representative Rate”
	 	

The US of America Dollar representative rate in New Israeli Shekels as
published by the Bank of Israel prior to the date of actual payment of each and every
payment of rent or any part of these payments which the Tenant must and/or will be
obligated to pay to the Landlord under the terms of this contract and all pursuant to
the matter at hand.
	 
	 	 	 	 
	 

	 	 	 	It is hereby agreed that the foregoing payments will be calculated
and/or made in NIS, all pursuant to the matter at hand on days upon
which there are no restrictions imposed and/or applicable to trading
foreign currency. In the event that such restrictions apply then
the relevant payment will be deferred until the first business day
following the payment day upon which there are no restrictions
imposed and/or that apply as above upon the trade of foreign
currency and regular trading of foreign currency is conducted in
commercial banks and the relevant payment will be paid in accordance
with the foreign currency representative rate in NIS of the US of
America as published for that business day upon which the relevant
payment is made.
	 
	 	 	 	 
	 

	 	 	 	It is hereby clarified and agreed that for the purpose of
calculating the rent the payments stipulated in US Dollars will be
linked to the “U.S. CPI” index as defined below in accordance with
the provisions of Section 13 below. It is hereby agreed that the
representative rate on the date of signing this contract is a sum of
4.15 NIS per 1 US Dollar.
	 
	 	 	 	 
	 

	 	“U.S. CPI Index”-
	 	The Consumer Prices Index in the USA known as the Consumer Price
Index for all Urban Consumers, United States City Average as published on any relevant
date to this contract by the Bureau of Labor Statistics of the United States Department
of Labor and/or as published by any other entity and/or other official authority in the
United States of America that publishes from time to time this index rate instead of
the foregoing entity.
	 
	 	 	 	 
	 

	 	“The Basic Index” -
	 	The U.S. CPI index last published prior to the date of signing
this contract.
	 
	 	 	 	 
	 

	 	“The Determinative

Index” -
	 	
The U.S. CPI index last published prior to the payment of any rent payment or prior
to any payment on account of the rent or prior to any other payment under this
contract.

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 6 -

	 	 	 	 	 
	 

	 	“The Building’s Plans”
	 	The plans attached to this agreement as Appendix A.
	 
	 	 	 	 
	 

	 	“The Premises Plans”
	 	The plans attached to this contract as Appendix B and
which may constitute part of the building’s plans – Appendix A and marked
thereon.
	 
	 	 	 	 
	 

	 	“The Tenant’s Work”
	 	Adjustments, additions and changes to the premises specified in
Appendix C to this contract which the Tenant is permitted to do in the premises
as specified and stipulated in Section 9 to this contract.
	 
	 	 	 	 
	 

	 	“Mandatory Payments”
	 	Taxes, rates, surcharges and any other payments that an occupier of
land is obligated to pay pursuant to any law.

Appendices

	3.	 	The following appendices are attached to this contract as an integral part hereof:

	 	 	 	 	 
	 

	 	Appendix A -
	 	Plans of the building.
	 
	 

	 	Appendix B -
	 	Plans of the premises.
	 
	 

	 	Appendix B-1 -
	 	Drawing of the parking lots
	 
	 

	 	Appendix C -
	 	Technical specification of the internal work in the premises.
	 
	 

	 	Appendix D -
	 	Photocopy of the approval letter given to the Tenant pursuant to the
Encouragement of Capital Investments Law.
	 
	 

	 	Appendix E -
	 	Draft of the “Confirmation Of The Establishment Insurance Policy”.

	 
	 

	 	Appendix F -
	 	Draft of the “Confirmation Of The Premises Insurance Policy”.
	 
	 

	 	Appendix G -
	 	Letter of undertaking by the sub-tenant.
	 
	 

	 	Appendix H -
	 	Draft of the agreement with the Management Company.
	 
	 

	 	Appendix I -
	 	Signposting appendix.
	 
	 

	 	Appendix J -
	 	Confirmation from the Tenant’s attorney/accountant with respect to the identity
of the Tenant’s shareholders and authorized signatories.

The Landlord’s Declarations

	4.	 	The Landlord declares that:

	 	a.	 	It is the registered owner or leaseholder, pursuant to the matter at hand, and
exclusive occupier of the land with an area of approximately 62,000 square meters,
comprised of parcels and sub-parcels in bloc 11098, to the exception of some of parcels
21 and 82 which are not registered in the Landlord’s name and which Sultam Ltd., who
sold the rights to the foregoing land to the Landlord undertook to purchase them too
and transfer the ownership or leasehold rights thereof to the Landlord.

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 7 -

	 	b.	 	Area A – is located in an area designated for industry pursuant to the
local zoning plan C/297 and which the detailed plan was approved with respect thereto
and has received final validity.
	 
	 	c.	 	It is erecting on Area A and possibly on additional areas, an
industrial park whose buildings, all or some, are designated to be leased and the
building constitutes one of them. The Landlord designated the building for high-tech
industries.
	 
	 	d.	 	It is erecting the building pursuant to a duly executed building permit. The
building’s external construction and construction of the public areas therein and
communal facilities have yet to be completed.
	 
	 	 	 	The Landlord hereby declares that it intends to apply for an additional building permit
with respect to the “Hermon Building” which will allow it to build an additional floor
on the existing roof of the “Hermon Building” and also to split the ground level of the
“Hermon Building” into two floors.
	 
	 	 	 	Additionally the Landlord declares that once the external construction of the “Hermon
Building” is completed, the public areas are completed and the communal facilities
thereof are installed the various premises on the various floors of the “Hermon
Building” will be built pursuant to the various tenants’ needs.
	 
	 	e.	 	It expects that the construction of the premises, as described in Section 8(b)
below will be completed by 31.12.2001 (subject to supplementing the development work
and additional work to be carried out in the “Hermon Building” and/or its surroundings
and which will be completed within approximately an additional 6 (six) calendar months.

The Tenants Declarations

	5.	 	The Tenant declares that: -

	 	a.	 	It saw and reviewed the detailed plan, the “building’s” plan and the premises
plans and that he visited the “land” and saw the designated place for the “industrial
park” to be built upon and the location of the “Hermon Building” which is currently
undergoing construction and found that the premises, once built, and the “Hermon
Building” in which the premises will be located are suitable for its needs, its factory
and “purpose of the lease” and is willing and undertakes to lease the premises, as is
once built, and under no circumstances will file a suit or raise allegations with
respect to suitability of the building and premises and once built, to the “purpose of
the lease” and the Tenant’s needs.
	 
	 	b.	 	The Landlord showed and told it that the “Hermon Building” plans may be
modified and added thereto which will not prejudice the use of the premises and the
possibilities of using it and that during the course of construction or in the future
the Landlord may add and build an additional floor on the roof of the building, split
the ground level of the “Hermon Building’ into 2 floors, erect an additional floor,
galleries and/or additions and/or modifications of the construction

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 8 -

	 	 	 	of the building itself and subject to the provisions of Section 29(a) below the Tenant
agrees not to sue or raise any assertions in relation thereto provided that no changes
apply to the premises plan without its consent, the Tenant’s convenient and safe access
to the premises will not be prejudiced nor will the Tenant’s reasonable use of the
premises in accordance with the “purpose of the lease” be prejudiced.
	 
	 	c.	 	The Tenant’s factory that is to be housed in the premises in the future is
and/or will be by the date of receiving possession of the premises pursuant to the
terms of this contract, an approved enterprise under the Encouragement of Capital
Investments Law. Appendix D to this contract is a correct photocopy of the
approval letter given to the Tenant’s factory under the foregoing law by the
Investments Center. The foregoing approval is still valid and not cancelled and the
Tenant continues to abide by its terms.
	 
	 	d.	 	The Tenant is aware that since its factory is an approved enterprise under the
Encouragement of Capital Investments Law this was one of the Landlord’s primary
concerns upon considering whether to lease the premises to the Tenant and determining
the terms of the lease and if the approval is not given or so long as it is not given
or if it is cancelled in the future then if the Tenant’s factory is not an approved
enterprise under the Encouragement of Capital Investments Law for any reason, the basic
rent will be increased by an amount in New Israeli Shekels (principal) equal, on the
date of signing this contract, to $1 (one US Dollar) per square meter of the premises
area, including but not limited to its share of the public areas in the “Hermon
Building” and which will be wholly linked to increases that apply to the consumers
prices index since the “basic index” was published and until the day the “Determinative
index” is published prior to the actual date of payment.
	 
	 	e.	 	That subject to the fact that possession of the premises is given pursuant to
the terms of this contract then the Tenant on its part hereby declares and undertakes
that it saw, inspected and examined “the land”, the “Hermon Building” and its plans,
the premises and all the areas included therein and/or affixtures thereto, whether
exclusively or jointly with others and all its surroundings, including but not limited
to access ways thereto and infrastructures, including but not limited to water,
electricity, drainage and sewage hook-ups and that it found the premises and all its
systems and infrastructures in working order and suitable for its needs and purposes
with respect to the use thereof pursuant to the “purpose of the lease” and that it
hereby waives, finally, completely, wholly and absolutely any assertion of a blatant
defect and/or non-suitability in connection with the foregoing building and/or in
connection with the premises and in connection with the foregoing surroundings.
	 
	 	 	 	To remove any doubts it is hereby clarified and agreed that defects that originate in
defective construction of the premises which prevent the Tenant reasonable use of the
premises pursuant to the “purpose of the lease” will be fixed by the Landlord and at its
expenses within a reasonable time from the date the Landlord is requested to do so in
writing by the Tenant.

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 9 -

	 	f.	 	A breach of Section 5 above and/or a breach of any of its sub-sections will
constitute a material breach of this contract.

The Lease And Non-Applicability Of The Landlord-Tenants Protection Laws Upon The Lease

6.

	 	a.	 	The Landlord undertakes to lease the premises to the Tenant following
completion of the construction thereof and the Tenant undertakes to lease the premises
from the Landlord and this by virtue of a lease that is not subject to the
applicability of the Tenants Protection Law for the lease periods stipulated in this
contract and pursuant to the conditioned and specified terms in this contract.
	 
	 	b.	 	The parties declare that upon signing this contract the construction of the
“Hermon Building” and the premises has yet to be completed, that they constitute a “new
building” as this phrase is defined in the Tenants Protection Law (Consolidated
Version) 5732 – 1972- whereby the construction will finally be completed after signing
this contract and in any event after 5728 (20th August 1968) and it will be
leased after that date, and therefore the Tenants Protection Law and any law amending
or replacing it as well as any regulations and/or orders enacted and/or to be enacted
pursuant thereto will not apply to the leasing of the premises, and the Tenant will not
be protected under the Tenants Protection Law and Regulations thereof and will not
raise any assertion pursuant thereto.
	 
	 	c.	 	The Tenant hereby declares that it did not pay any key money for the premises
and/or in connection with the lease subject-matter of this contract, that it did not
undertake to pay any key money for leasing the premises, it did not contribute by any
means to the construction of the premises and/or did not give any consideration for the
premises that could be interpreted as key money under the law, that it is aware that on
the day of signing this contract the premises are exclusively possessed by the
Landlord, that there are no other entities or person other than the Landlord that is
entitled to possession thereof and that the Tenants Protection laws, including but not
limited to the “law” will not grant any protection as a protected tenant with respect
to leasing the premises under this contract.
	 
	 	 	 	Additionally and for the sake of removing any doubt it is hereby emphasized and agreed
that investments, construction extensions and improvements that are made to the premises
by the Tenant, if made, will by no manner be considered as payment of key money for the
premises nor will they be considered as giving consideration to the Landlord which may
be interpreted as key money under the law even if they remain in the premises after the
Tenant vacates the premises.
	 
	 	d.	 	The Tenant hereby explicitly declares that it is aware that this contract was
executed in accordance with Sections 10 and 14 of the “law” since the premises
constitute a new property and/or a property that was vacated and/or that will be
vacated of any occupier other than the Landlord prior to the commencement of the lease
subject matter of this contract.

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 10 -

	 	e.	 	It is hereby agreed that a breach of this Section 6 above and/or a breach of
any of its sub-sections will be considered a material breach of this contract.

The Premises

	7.	 	The premises include a net area of approximately 3,332 square meters located on the *18.88
and *22.72 levels of the “Hermon Building” (on the fourth and fifth floors of the “Hermon
Building”), and is marked on the plans attached to this contract as Appendix B with a
peripheral marking in yellow.
	 
	 	 	However, for the purpose of calculating rent which the Tenant has to pay the Landlord in
accordance with the terms of this contract an additional area of approximately 674 square
meters will be added to the foregoing area of the premises constituting the premises portion
of the public areas in the “Hermon Building” and therefore the (gross) area of the premises
including the portion of the public areas in the “Hermon Building” will be calculated as an
area of 4,006 square meters.
	 
	 	 	Additionally it is hereby agreed that the Tenant will be allotted 20 (twenty) covered
parking spaces in the parking lot on the open floor of the “Hermon Building” as well as 80
(eighty) additional parking spaces marked in Appendix B-1 in Green and a total of
100 (one hundred) parking spaces. The Landlord and/or the Management Company will always be
entitled to change the location of the foregoing parking spaces that were allotted and/or
will be allotted from time to time to the Tenant and even move them from the “Hermon
Building” to another location, including but not limited to the parking areas that are
organized in the “industrial park” and/or a separate parking building to be erected. The
Landlord will act in good faith and reasonably in order to coordinate in advance with the
Tenant any changes to apply to the foregoing parking spaces.
	 
	 	 	For the sake of removing any doubts it is hereby clarified and agreed that the monthly rent
for the covered parking space will amount to a monthly total in NIS that is equal to
a monthly total of $75.- (Seventy Five US Dollars), whereas the monthly rent for an open
parking space (uncovered) will amount to a monthly total in NIS equal to a monthly total
of $50.- (Fifty US Dollars) and all this in addition to VAT prescribed by law.
	 
	 	 	It is hereby clarified and agreed that if any changes are made to the location of the
foregoing parking spaces the rent which the Tenant is to pay to the Landlord for leasing the
foregoing parking spaces will not change.
	 
	 	 	Additionally it is hereby clarified and agreed that both the Landlord and the Tenant may not
and will not be entitled to derogate from and/or reduce the number of parking spaces
included in the premises nor charge the Tenant a sum exceeding more than 20 (twenty) covered
parking spaces.

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 11 -

	 	 	 	Likewise, it is hereby clarified and agreed that the foregoing premises, in addition to all
the foregoing parking spaces that are allotted to the Tenant from time to time will be
referred to in this contract (above and below – “The Premises”).
	 
	 	 	 	For the sake of removing any doubts it is hereby clarified and agreed that by determining
the foregoing area of the premises all the thicknesses of the external walls of the premises
were included in the determination, one half (1/2) of the thickness of all the internal
walls of the premises bordering other premises in the “Hermon Building” but the full
thickness of the partitions or walls of the premises bordering public areas in the “Hermon
Building” in addition to the “relative portion” of the premises in the communal property of
the “Hermon Building”.
	 
	 	 	 	Likewise it is hereby agreed and clarified that the phrase “relative portion” in this
section means: the relative portion based on the ratio between the area of the premises
itself excluding the public areas and the total areas of all the areas of the premises or
those that are designated to be leased or for exclusive use in the building also without
their portion of the public areas as noted above.
	 
	 	 	 	It is hereby agreed that a breach of this section will constitute a material breach of this
contract.

Delivery Of Possession Of The Premises To The Tenant

8.

	 	a.	 	The Landlord hereby undertakes to deliver the premises to the Tenant on 31.12.2001
(hereinafter – “Date For Delivery Of Possession Of The Premises”) whereby the premises will
be built and completed pursuant to the technical specification attached hereto
as Appendix C to this contract including the internal layout of the premises.
	 
	 	 	 	For the sake of removing any doubts it is hereby clarified, emphasized and agreed that at
least 50% (fifty percent) of the total area of the premises will be delivered by the
Landlord to the Tenant at an “open-space” standard.
	 
	 	 	 	The provisions of this section are subject to the provisions of Section 37 below.
	 
	 	b.	 	Additionally, it is hereby agreed that the Landlord will permit the Tenant, after
delivery of possession of the premises to the Tenant and at its exclusive and complete
expense to carryout various work in the premises that the Tenant requires from time to time
for the purpose of adjusting the premises to the Tenant’s needs as they may be from time to
time, but this – subject to the fact that all the plans and work which the Tenant intends
to carryout in the premises requires the Landlord’s written and approval in advance.
	 
	 	c.	 	The Tenant was informed that “on the date of delivery of possession of the premises”
the construction of the “Hermon Building” will not be completely finished and some or part
of the premises or systems serving it or part of it will be built or installed thereafter
and the Tenant is aware and agrees to this provided that “on the date of delivery of
possession of the premises” to the Tenant the construction of the external

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 12 -

	 	 	 	shell of all the “Hermon Building” will be completed, reasonable and safe access to the
premises will be available, including but not limited to parking areas, the Landlord will
ensure hookups, temporary or permanent, to electricity, water and air-conditioning for the
premises, the construction of the “Hermon Building” entrance lobby will be completed and
the construction of the secured areas on the floor will be completed that are designated for
the use of the premises.
	 
	 	 	 	For the sake of removing any doubts it is hereby clarified and emphasized that the
installation and operation of the elevators in the “Hermon Building” will be completed only
2 (two) calendar months thereafter which will begin from the “date of delivery of possession
of the premises”.
	 
	 	 	 	However, if on the “date of delivery of possession of the premises” a freight elevator is
not made available to be used by the Tenant which will allow the Tenant to move equipment
belonging to it to the premises, the Landlord will contribute to the expenses of hiring
cranes to transfer such equipment to the premises as against the issuance of receipts to it
by the Tenant and up to a total sum not to exceed $1,500.- (One Thousand And Five Hundred US
Dollars).
	 
	 	 	 	Additionally, it is hereby agreed and emphasized that “on the date of delivery of possession
of the premises” to the Tenant pursuant to the terms and provisions in this contract the
development work and work in the public areas of the “Hermon Building” have yet to be
completed however the Landlord will act so that the Tenant will have reasonable access to
the premises in order for the construction thereof to be completed and/or to be used for the
“purpose of the lease”.
	 
	 	d.	 	The Landlord will notify the Tenant of the date of delivery of possession of the
premises by written notice at least 7 days in advance.
	 
	 	e.	 	Prior to the date of delivery of possession of the premises as noted above and as a
condition precedent to delivery of possession thereof, the Tenant will give the Landlord
all the confirmations of insurance policies which the Tenant is obligated to remit to the
Landlord in accordance with the provisions of Section 16(b) below.
	 
	 	f.	 	On the day and time stipulated in the Landlord’s notice pertaining to the date of
delivery of possession, the Tenant will be at the premises in order to accept possession
thereof and the Landlord will deliver possession of the premises at that time provided that
the Tenant furnishes the Landlord, prior to then, postdated checks to secure full payment
of the rent for the first year as noted in Section 12(a)(4) below, if not yet furnished,
and the Tenant will also furnish, at that time, to the Landlord all the securities and
guarantees that are required in order to fulfill its obligations pursuant to this contract
and as noted in Section 27 below.
	 
	 	g.	 	Upon delivery of possession of the premises a delivery and condition of the premises
protocol will be executed (hereinafter – “Delivery Protocol”).
	 
	 	 	 	The delivery protocol will note all the issues that require completion or repairing, if such
exist, and the Landlord will complete the repairs as soon as possible despite the

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 13 -

	 	 	 	fact that the Tenant has received possession of the premises. The provisions of this
section is subject to the fact that the defects which prevent the “Tenant’s work” in the
premises from being carried out are repaired by the Landlord prior to delivery of possession
of the premises to the Tenant.
	 
	 	h.	 	If the Tenant does not appear, as above, to accept possession of the premises on the
day and at the time stipulated in the Landlord’s notice, a “delivery protocol” will be
executed in the Tenant’s absence pertaining to the fact that the premises are ready for
delivery, the Landlord’s willingness to deliver possession thereof to the Tenant and the
fact that the Tenant did not show up to accept delivery thereof. This protocol will serve
as prima facie evidence of the correctness of the content thereof and possession of the
premises will be considered as delivered to the Tenant on that day and the commencement of
the “lease period” will be considered as starting on that day even in this instance no
matter when the Tenant actually accepts possession of the premises.
	 
	 	i.	 	If the Tenant does not furnish the checks to guarantee payment of the rent as noted in
Section 12(a)(4) below, or does not furnish the securities and guarantees to ensure
fulfillment of its obligations as noted in Section 27 below, then it will not be entitled
to receive possession of the premises so long as it does not furnish the Landlord with all
the checks and guarantees as noted even if the Tenant shows up on the date and at the time
determined for the date of delivery of possession of the premises and the Tenant will be
deemed as not showing up to accept possession of the premises until it furnishes the
foregoing checks and guarantees.
	 
	 	j.	 	The day determined in the Landlord’s notice as the date of delivery of possession of
the premises will be considered the date upon which the lease begins whether the Tenant
shows up to accept possession of the premises or not and all its obligations under this
contract, including but not limited to its obligation to pay rent, mandatory payments and
the rest of the payments imposed upon it under this contract will apply from that date
onwards unless the Landlord agreed to set a different date for delivery of possession and
issued an additional written notice to the Tenant which will then be the date stipulated in
such a notice as the beginning of the lease.
	 
	 	k.	 	If such a “delivery protocol” is not executed for a reason associated with the Tenant
then actual acceptance of possession of the premises by the Tenant will be deemed as the
Tenant’s consent and as prima facie evidence of the fact that the premises were in fact
delivered to the Tenant by the Landlord pursuant to the terms of this contract and to the
Tenant’s complete satisfaction.
	 
	 	l.	 	It is hereby agreed that a breach of Section 8 above and/or a breach of any of its
sub-sections will be considered a material breach of this contract.

Tenant’s Work in the Premises

9.

	 	a.	 	It is hereby agreed between the parties that the Tenant is entitled to carryout, from
time to time, internal work in the premises in order to adjust the premises to its needs
(hereinafter – “The Tenant’s Work”). The Tenant hereby undertakes that all the

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 14 -

	 	 	 	“Tenant’s work” that it carries out in the premises will be to a high standard, using
materials that are approved only by the Israeli Standards Institution, exactly matching the
plans and specifications that were approved in writing by the Landlord and/or someone on its
behalf and are carried out while stringently and completely conforming to all the relevant
rules and laws concerning such work.
	 
	 	 	 	The Landlord will permit the Tenant to enter the premises in order to carryout the “Tenant’s
work” in the premises from the date stipulated in Section 8(b) above.
	 
	 	 	 	In addition to the provisions of Section 8(a) and 8(b) above, it is hereby agreed that the
authorization given by the Landlord to the Tenant to carryout the “Tenant’s work” in the
premises is contingent upon and subject to the provisions in this contract below.
	 
	 	b.	 	It is hereby clarified and agreed that if the Tenant wishes to carryout any work in the
premises then all the plans relating to the “Tenant’s work” as well as their technical
specifications will be furnished by the Tenant to the Landlord at least 60 (sixty) days
prior to the date scheduled to begin the “Tenant’s work” in the premises and requires the
Landlord’s approval in advance and in writing.
	 
	 	 	 	The Landlord will not refuse approval of the “Tenant’s work”, plans or technical
specifications unless on reasonable grounds. The engineer’s response, on the Landlord’s
behalf, will be given within 30 days from the date the Tenant gives the Landlord the plans
to carryout the “Tenant’s work” in the premises.
	 
	 	 	 	Additionally, the engineer on the Landlord’s behalf is entitled and authorized to give the
Tenant appropriate instructions if he finds that the “Tenant’s work” in the premises do not
conform with the plans and/or the technical specifications that were furnished by the Tenant
to the Landlord for its approval and/or to the terms of this contract and this without
imposing upon the Landlord any duty and/or liability pertaining thereto. The Tenant, on its
part, hereby undertakes to follow these instructions immediately upon being notified
thereof.
	 
	 	c.	 	The Landlord will favorably respond to the Tenant’s request to carryout the
	 
	 	 	 	“Tenant’s work” in the premises after delivery of possession of the premises to the Tenant
pursuant to the terms of this contract only if all the following preliminary conditions are
met and subject to the fulfillment thereof:

	 	1.	 	The Tenant provides the Landlord with confirmation of the “Work in
progress Insurance Policy”, as noted in Section 16(b)(1) below.
	 
	 	2.	 	The Tenant pays the Landlord the first payment of rent as noted in
Section 12(a)(3) below and also provides it with the confirmation of the “Premises
Insurance Policy” as noted in Section 16(b)(2) below before the Tenant is permitted
to begin the Tenant’s work in the premises instead of on the day of delivery of
possession of the premises.
	 
	 	3.	 	The Landlord’s engineer will approve, in advance and in writing, that
carrying out the Tenant’s work or any part of the Tenant’s work that it

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 15 -

	 	 	 	approves, does not cause any interruption, delay or burden upon the construction
work of the premises themselves.
	 
	 	 	 	The Landlord engineer’s decision pertaining to the above, including but not
limited to its decision not to permit performance of the Tenant’s work prior to
delivery of possession of the premises or that only some of the work can be
carried out will be final and there will be no argument or appealing such a
decision unless if the Tenant views the decision as being given on unreasonable
grounds.
	 
	 	4.	 	The Tenant will execute all the insurance policies that are required or
correct to execute them in connection with the performance of the Tenant’s work
under the given circumstances pursuant to the Landlord’s determinations and
requirements and at its exclusive and absolute discretion, including but not
limited to contractors work insurance policy, third party liability insurance
policy, employers insurance policy in the amounts to be determined by the Landlord
or to be approved by it, will furnish the Landlord confirmation from the insurer
pertaining to the execution of all the foregoing policies in the format attached to
this contract as Appendix E and will present the Landlord all the policies
that were executed prior to beginning the work in the premises.
	 
	 	5.	 	The Tenant will pay the Landlord in advance or will undertake to pay
it, or in its place, all at the Landlord’s choice, all the additional payments that
are required by the contractors or other persons performing the work in the
premises or the “Hermon Building”, work on the Landlord’s behalf so that the Tenant
will be permitted to carryout the “Tenant’s work” or that part of the work that is
approved even prior to completion and delivery of the work in the premises or
building, or due to additional work or hindrances or delays that are caused,
according to them, due to the “Tenant’s work” or due to any other demand that is
raised by them that is associated with the “Tenant’s work” in the premises unless
the payment demand is made on unreasonable grounds. In the event of a dispute
regarding the reasonableness of the demand the Landlord’s CEO will decide upon the
matter finally and absolutely.
	 
	 	6.	 	If despite all of the above a delay occurs in completing the
construction of the premises or in delivery of possession of the premises to the
Tenant due to the “Tenant’s work” or due to delays it caused or because the work
was not completed or finished or some of it was not completed or finished for any
other reason associated with the “Tenant’s work”, the Landlord will determine the
date for delivery of possession to the best of its judgment and in good faith on
the same day the premises should have been completed but for the “Tenant’s work”,
will notify the Tenant of the date and this date will be deemed the date for
delivery of possession of the premises and the date upon which the lease will begin
and will replace the

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 16 -

	 	 	 	date for delivery of possession that is stipulated in Section 8(b) above despite
the premises not being completed by then.

	 	d.	 	The “Tenant’s work” to be done in the premises commencing from the “date of delivery of
possession of the premises” and onwards will be treated the same as changes or additions
that are executed by the Tenant in the premises with the Landlord’s consent during the
“lease period”, as noted in Sections 19(a) and through to 19(d) below and will become the
Landlord’s property at the end of the lease subject matter of this contract without any
consideration unless the Landlord demands that they be removed, or some of them be removed
at the end of the lease subject matter of this contract and in such an instance – the
Tenant must remove all the Tenant’s work or any part of them that was demanded to be
removed and restore the premises to the condition it was in or should have been in pursuant
to the terms of this contract including but not limited to the relevant appendices hereto.
	 
	 	e.	 	It is hereby agreed that a breach of this Section 9 above and/or a breach of any of its
sub-sections will be considered a material breach of this contract.

The Purpose Of The Lease And Use Of The Premises

	10.	 	 	The Landlord hereby leases the premises to the Tenant and the Tenant hereby leases the
premises from the Landlord and this only for the “purpose of the lease” specified in the
preamble to this contract.
	 
	 	 	 	The Tenant will be entitled to use the premises only for the “purpose of the lease” and will
not be entitled to use the premises or any part thereof or permit the use of the premises or
any part thereof for a purpose other than the “purpose of the lease” above without the
Landlord’s consent thereto in advance and in writing.
	 
	 	 	 	Additionally, the Tenant hereby undertakes not to change by any means the “purpose of the
lease” without obtaining the Landlord’s consent thereto in advance and in writing.
	 
	 	 	 	Likewise, it is agreed between the parties that subject to the provisions of Section 32
below a breach of this section will be considered a material breach of this contract which
will entitle the Landlord to sue the Tenant to immediately vacate the premises without
prejudicing the rest of the Landlord’s rights under this contract and/or prescribed by law.

Lease Period

11.

	 	a.	 	It is hereby agreed between the parties that the lease period of the premises in
accordance with the terms of this contract will only be for a total period of 60 (sixty)
months, commencing on 1.1.2002 and ending on 31.12.2006 (hereinafter – “The Lease Period”).

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 17 -

	 	b.	 	The Tenant is hereby granted an option (hereinafter – “The Option”) to extend the
“lease period” for an additional total period of 60 (Sixty) months, commencing on 1.1.2007
and ending on 31.12.2011 (hereinafter – “The Extended Lease Period”), but this provided
that the Tenant gives notice to the Landlord by 30.6.2006 (i.e. – at least 6 (Six) months
prior to the end of the “lease period”) in writing pursuant to which it wishes to exercise
its right in full in accordance with the “option” and extend the “lease period” until the
end of the “extended lease period”.
	 
	 	c.	 	For the sake of removing any doubt it is hereby emphasized and agreed that in addition
to the condition referenced in Section 11(b) above it is hereby agreed between the parties
that the Tenant will not be entitled to extend the lease pursuant to the “option” nor will
it be entitled to any extension of the lease subject-matter of this contract if it does
not adhere to the primary terms of this contract in their entirety and in a timely manner
including if it does not pay all the payments and rent which it is obligated to pay in
accordance with the terms and provisions of this contract.
	 
	 	 	 	However, a delay in giving notice with respect to exercising the “option” and/or a delay in
making any rent payment that does not exceed 15 (fifteen) days from the date determined for
the relevant payment pursuant to the terms of this contract will not negate from the Tenant
the right to continue the lease under the “option” and in accordance with the rest of the
terms of this contract.
	 
	 	d.	 	It is hereby agreed and emphasized that the terms and provisions of this contract with
respect to the “lease period” will apply to the lease during the “extended lease period” –
although subject to amendments that are applicable with respect to the rent to be paid
during the “extended lease period”, all pursuant to the matter at hand, and in accordance
with the terms of this contract.
	 
	 	e.	 	The Tenant will not be entitled to shorten the “lease period” and/or the “extended
lease period” if indeed exercised with respect to the “option” in accordance with the terms
of this contract and all this – without the need to obtain advance consent in writing from
the Landlord.
	 
	 	 	 	Additionally, it is hereby agreed that if the Tenant leaves the premises for any reason
whatsoever prior to the end of the “lease period” or prior to the end of the “extended lease
period”, all pursuant to the matter at hand, and this without obtaining the Landlord’s
consent in advance and in writing hence in addition to the provisions in this lease contract
the Tenant will continue to pay the Landlord the full rent as specified below in this
contract for the rest of the “lease period” and whereupon the “option” is exercised – then
also for the rest of the “extended lease period”, all pursuant to the matter at hand.
	 
	 	f.	 	For the sake of removing any doubt it is hereby explicitly agreed and stipulated that
the Tenant’s obligation to lease the premises during the entire lease period, and in the
event the “option” is exercised by the Tenant – also during the entire “extended lease
period”, including but not limited to its obligation to pay rent and all the rest of the
payments owing to the Landlord under this contract during the entire “lease period” and in
the event the “option’ is exercised, also during the entire “extended lease

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 18 -

	 	 	 	period”, as with the Tenant’s obligation to pay all the rest of the taxes, rates,
surcharges, mandatory payments and various other payments it is obligated to pay under this
contract to the authorities or third parties, will continue to remain in effect until the
end of the “lease period” and in the event the “option” is exercised by the Tenant – until
the end of the “extended lease period” and the Landlord will be entitled to enforce that the
Tenant pay all these payments and the Tenant must continue to pay them until the end of the
“lease period” and in the event the “option” is exercised by the Tenant – also until the end
of the “extended lease period” even if the Tenant gives notice of termination of the lease
and also if it vacates the premises or any part thereof, or actually stops using the
premises prior to the end of the relevant period.
	 
	 	g.	 	Whereupon the Tenant vacates the premises or any part thereof or actually stops using
the premises prior to the end of the relevant lease period as noted in Section 11(f) above,
the Landlord will be entitled, but not obligated, to lease the premises that are vacated or
any part that is vacated, by the Tenant to another tenant and the Tenant’s obligations to
continue to pay the rent and the rest of the mandatory payments and other payments
applicable to it under this contract will continue to remain in effect also until the end
of the “lease period” and in the event the “option” is exercised by the Tenant – also until
the end of the “extended lease period”, unless in such an instance the Landlord deducts
from the amounts that the Tenant owes all the amounts that were paid by the new tenant for
the same payments to the extent of the rent which the Tenant should have paid under the
terms of this contract.
	 
	 	h.	 	None of the provisions in Sections 11(e), 11(f) and 11(g) above will impose upon the
Landlord any duty to lease the premises or any part thereof if vacated by the Tenant prior
to the end of the “lease period” and in the event the “option” is exercised by the Tenant –
if the premises are vacated by the Tenant prior to the end of the “extended lease period”
as noted above, and the Landlord will be entitled to enforce the lease contract upon the
Tenant and see it as obligated to fulfill its obligations and undertakings which the Tenant
assumed until the end of the “lease period” and in the event the “option” is exercised by
the Tenant – until the end of the “extended lease period” without having to attempt to
lease the premises to another tenant.
	 
	 	 	 	On the other hand, leasing the premises or any part thereof that is vacated by the Tenant
prior to the end of the relevant lease period to another tenant as noted in Section 11(g)
above will not be considered a waiver by the Landlord of any of its rights available to it
under this contract and it will be entitled to enforce upon the Tenant to fulfill its
obligations under this contract or any one of them as well as to pay compensation for all
the damages sustained by the Landlord as a result of the breach as noted above in this
contract by the Tenant.
	 
	 	i.	 	A breach of this Section 11 above and/or a breach of any of its sub-sections will be
considered a material breach of this contract.

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 19 -

Rent – Extent Thereof, Payment Terms And Payment Dates

12.

	 	a.	 	The Tenant hereby undertakes to pay the Landlord rent for the premises in accordance
with the following:

	 	1.	 	The monthly rent for each and every one of the 60 (sixty) months of the lease
in the “lease period” will amount to a monthly sum in NIS equal to a monthly sum
(principal) of $59,581.- (Fifty Nine Thousand and Five Hundred and Eighty One US
Dollars) (hereinafter – “The Basic Rent During the Lease Period”).
	 
	 	 	 	It is hereby clarified and agreed that the entire “basic rent during the lease
period” will be paid by the Tenant to the Landlord in NIS in accordance with the “US
Dollar representative rate in NIS” in addition to linkage differentials applicable
to linking it to the applicable changes in the “U.S. CPI Index” pursuant to the
linkage calculations set forth in Section 13 below and in addition to VAT to be paid
in accordance with the provisions of Section 22(d) below.
	 
	 	2.	 	The monthly rent for each and every one of the 60 (sixty) months of the lease
of the “extended lease period” will amount to a monthly sum in NIS equal to a monthly
sum (principal) of $65,539.- (Sixty Five Thousand and Five Hundred and Thirty Nine US
Dollars) (i.e. – an addition of 10% to the dollar rent stipulated in Section 12(a)(1)
above) (hereinafter – “The Basic Monthly Rent During The Extend Lease Period”).
	 
	 	 	 	It is hereby clarified and agreed that the entire “monthly rent during the extended
lease period” will be paid by the Tenant to the Landlord in accordance with the
“Dollar representative rate in NIS” in addition to linkage differentials applicable
due to linking the entire amount to applicable changes to the “U.S. CPI Index”
pursuant to the linkage calculations set forth in Section 13 below, and in addition
to VAT to be paid in accordance with the provisions of Section 22(d) below.
	 
	 	3.	 	The entire rent which the Tenant is obligated to pay the Landlord in accordance
with the terms of this contract is in consideration of leasing the premises during the
entire “lease period” and in the event the “option” is exercised by the Tenant in
accordance with the terms of this contract – also for leasing the premises during the
entire “extended lease period” – will be paid by the Tenant to the Landlord by
tri-monthly consecutive and continuous payments each time to be paid in advance for the
3 (three) additional months in advance.
	 
	 	 	 	The first payment to be paid in advance in lieu of the rent for the second quarter
of the “lease period” will be paid by the Tenant to the Landlord on 1.1.2002 whereas
the dates for the payment of the rest of the tri-monthly payments which the Tenant
is obligated to pay to the Landlord pursuant to the

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 20 -

	 	 	 	terms of this contract will be on the 1st (first) of the calendar months
of April, July, October and January which will apply from 1.4.2002 and until the end
of the lease subject-matter of this contract in accordance with all the terms and
provisions of this contract.
	 
	 	 	 	If the “lease period” begins or ends in the middle of a calendar quarter of the
foregoing 4 (four) calendar quarters then the rent will be paid by the Tenant to the
Landlord for that quarter pursuant to the number of months of the lease actually
included therein.
	 
	 	4.	 	In order to simplify the process of collecting the full amount of the rent
which the Tenant is obligated and/or becomes obligated to pay to the Landlord in
accordance with the terms and provisions of this contract, the Tenant will give the
Landlord no later than 14 (fourteen) days prior to the commencement of each relevant
lease period of 12 (twelve) calendar months of the lease 4 (four) signed checks that
are made payable to the Landlord and for the total sum of the rent linked to the “U.S.
CPI Index” pursuant to the terms of this contract relating to those relevant 12
(twelve) calendar months of the lease.
	 
	 	 	 	The dates for payment of these checks will be in accordance with the dates for
payment stipulated in Section 12(a)(3) above.
	 
	 	 	 	The linkage differentials of the U.S. CPI Index that are applicable with respect to
linking the entire rent payments to increases applicable to the U.S. CPI Index in
accordance with the provisions of Section 13 below will be paid by the Tenant to the
Landlord, in full, and in practice, on the payment dates referenced in Section
12(a)(3) above.
	 
	 	 	 	In order to prevent any doubts it is hereby agreed and emphasized that remitting the
foregoing checks to the Landlord will by no means be considered as payment on
account of the rent which the Tenant is obligated to pay and/or becomes obligated to
pay to the Landlord under the terms of this contract and only full and actual
payment to the Landlord of these checks will be considered as payment on account of
the rent owing to the Landlord from the Tenant pursuant to the terms and provisions
of this contract.
	 
	 	 	 	A check that was given to secure a payment that is actually settled by the Tenant by
means of a bank transfer to the Landlord’s account will be returned by the Landlord
to the Tenant after the Landlord’s account has actually been credited for the
relevant payment for which the relevant check was given.

	 	b.	 	It is hereby agreed between the parties that in any event that the Tenant is late in
making any payment of the rent of the rent payments that it is obligated to pay to the
Landlord in accordance with the terms and provisions of this contract and this – with
respect to a delay exceeding 90 (ninety) days from the date determined for payment of such
a payment pursuant to the terms and provisions of this contract, all pursuant to the matter
at hand, and despite the Tenant receiving a warning from the Landlord in writing thereof 14
(fourteen) days in advance, hence under these circumstances of

	 	 	 
	(—)
	 	(—)
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 21 -

	 	 	 	such a delay in payment the entire balance of the rent owing to the Landlord under this
contract for 12 (twelve) additional consecutive months starting from the date of the
relevant payment in arrears of the rent which the Tenant owes to the Landlord pursuant to
the terms of this contract will become payable immediately and the Tenant must pay the full
rent that it undertook to pay the Landlord in accordance with this contract with respect to
those relevant 12 (twelve) months to the Landlord without any additional delay.
	 
	 	c.	 	For the sake of removing any doubt it is agreed between the parties that the Tenant
must pay the Landlord the full rent owing from it to the Landlord in accordance with this
contract in lieu of leasing the premises even if no use is made of the premises.
	 
	 	d.	 	Without prejudicing the Landlord’s rights to rescind this contract due to a material
breach in any instance of non-payment by the Tenant of any of the rent payments in a timely
manner as noted above, it is agreed between the parties that in any event of a delay in
payment of rent or clearing a check given to secure the payment, the amount will incur
interest in arrears with respect to overdrafts of an approved credit line for foreign
currency accounts managed in US Dollars or at the Landlord’s choice, the amount in arrears
will accrue linkage differentials linked to the “index” in addition to interest at the
maximum rate customary at the relevant time at Bank Hapoalim Ltd. with respect to foreign
currency loans stipulated in US Dollars.
	 
	 	 	 	The charge of the interest in arrears will be executed so that this interest will be added
to a payment which the Tenant must pay the Landlord following the date of the payment in
arrears and will be considered, together with that consecutive payment and the linkage
differentials to the “index” thereon as “principal” for the purpose of calculating interest
in arrears in the future.
	 
	 	 	 	None of the provisions above will be construed as granting the Tenant the right to make rent
payments in arrears under this contract.
	 
	 	e.	 	A breach of this Section 12 above and/or a breach of a sub-section thereof will be
considered a material breach of this contract.

Linking The Payments To The US Dollar Representative Rate In NIS And The Increase Of The U.S.
CPI Index In The USA

13.

	 	a.	 	All the rent payments that the Tenant must pay to the Landlord pursuant to the terms of
this contract, including but not limited to “basic rent during the lease period” and “basic
rent during the extended lease period” and stipulated in this contract in US Dollars will
be paid by the Tenant to the Landlord in New Israeli Shekels in accordance with the “US
Dollar representative rate in Shekels” that is known on the actual date of payment of each
and every payment of such rent payments or any part of these payments that are paid by the
Tenant to the Landlord pursuant to the terms of this contract.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 22 - 

	 	 	 	However under no circumstances will the US Dollar representative rate fall below the “basic
US Dollar rate” of 4.15NIS (Four New Israeli Shekels and Fifteen Agorot) per one US Dollar.
	 
	 	b.	 	It is hereby agreed between the parties that every rent payment to be paid by the
Tenant to the Landlord in accordance with the terms of this contract, including but not
limited to rent referenced in Section 12 above, in the sub-sections of Section 12 will be
paid by the Tenant to the Landlord whereby each payment will be linked in their entirety to
any increase that applies to the U.S. CPI index by such a manner that if the rate of the
U.S. CPI Index that is last published prior to the actual date of payment to the Landlord
of any payment of the foregoing payments which the Tenant took upon itself to pay the
Landlord pursuant to the terms of this contract, all pursuant to the matter at hand
(hereinafter – “the New Index”) increases as opposed to the “basic index” rate, the Tenant
will pay the Landlord all the payments referenced in Section 12 above and all its
sub-sections, whereby they will be increased in relation to the increase in the rate of the
“new index” as opposed to the rate of the “basic index” and all this – pursuant to the
matter at hand and taking into account the actual payment in full to the Landlord of each
and every one of the foregoing payments.
	 
	 	 	 	If the rate of the “new index” falls below the “basic index” the monthly rent payments
(principal) stipulated in Section 12 above (including but not limited to all of its
sub-sections) will be paid without any reduction whatsoever.
	 
	 	 	 	Additionally it is clarified and agreed that if the “new index” falls below any prior “new
index” then the linkage calculations will be executed based on the “new index” that is last
published prior to the actual date of payment of the relevant payment, and provided that
under no circumstances falls below the “new index” as opposed to the “basic index”.
	 
	 	c.	 	Notwithstanding the aforesaid and for the sake of removing any doubt it is hereby
agreed and emphasized between the parties that under no circumstances no payment which
the Tenant is to pay to the Landlord for the rent subject-matter of this contract will fall
short of the dollar rent (principal) specified in Section 12 above and all its
sub-sections.
	 
	 	d.	 	In order to prevent doubts it is hereby agreed and emphasized that VAT prescribed by
law at the rate applicable at the time the payment is actually made in full to the Landlord
for each and every payment on account of the rent which the Tenant must pay the Landlord in
accordance with the terms and provisions in this contract will be added to each payment of
rent which the Tenant must pay to the Landlord under the terms of this contract including
but not limited to the “basic rent during the lease period” and the “basic rent during the
extended lease period”. The foregoing VAT will be paid by the Tenant to the Landlord on
the date stipulated in Section 22(d) below.
	 
	 	e.	 	It is hereby agreed that a breach of this Section 13 and/or its sub-sections will be
considered a material breach of this contract.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 23 - 

Permitted Use, Prohibited Use And The Disposal Of Waste From The Premises

14.

	 	a.	 	The Tenant is entitled to use the premises solely for the “purpose of the lease” as
defined above and for no other use unless it obtains advance and written approval to modify
the “purpose of the lease” from the Landlord.
	 
	 	 	 	Except for the use of the premises and the parts adjoined thereto and the communal property
in the “Hermon Building” and in the “industrial park” the Tenant will not be entitled to use
the rest of the parts of the “Hermon Building” and/or the “industrial park”.
	 
	 	 	 	In addition thereto the Tenant will not be entitled nor allowed to permit a third party and
also including any person acting on its behalf and/or in its place, including but not
limited to its employees, contractors and/or sub-contractors, invitees, clients and
licensees that visit the premises and/or are in the premises on its behalf to make any use
of the premises not in accordance with the “purpose of the lease” and/or not to make any use
of the other parts of the “Hermon Building” and/or “the Industrial Park”.
	 
	 	b.	 	Additionally and without derogating from the generality of the foregoing, the Tenant
hereby undertakes as follows:

	 	1.	 	To do the best it can in order to prevent its employees, clients and
suppliers from parking vehicles and cars in the industrial park except in the
parking areas that are marked with the color green on the parking lot drawing
attached as Appendix B-1 to this contract or in the alternative parking
area that will be allotted to the Tenant in accordance with the provisions of
Section 7 above.
	 
	 	2.	 	Not to place, outside the area of the premises any goods, equipment,
merchandise, inventory, chattels, items of furniture, packaging material and
packaging equipment as well as any type of waste.

	 	c.	 	The Tenant hereby undertakes to ensure that good and proper neighborly relationships
are maintained with the rest of the tenants and/or users of the premises and/or units
included in the “Hermon Building” and/or the “project” and in addition thereto also to
ensure that the areas designated for its use and/or the use of those acting as its agent
and/or on its behalf are kept clean and orderly in accordance with the terms of this
contract.
	 
	 	 	 	Likewise, the Tenant hereby undertakes not to cause and not to allow others to cause any
interruptions, gatherings and/or nuisances in the foregoing premises and/or the “Hermon
Building” and/or the “industrial Park”.
	 
	 	 	 	Additionally, the Tenant hereby undertakes to furnish the Landlord, if the Landlord so
requires of it as a result of a demand and/or complaint addressed to the Landlord, approvals
from the Ministry of Health and the Ministry of Environment pertaining to

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 24 - 

	 	 	 	the fact that its factory to be conducted from within the premises meets all the foregoing
ministries’ standards with respect to waste disposal and/or polluted materials into the
environment.
	 
	 	d.	 	The Tenant is responsible for storing any waste from its factory and any garbage or its
or its’ factory’s other waste other than regular office waste and remove it from the
premises and the area of the
	 
	 	 	 	“industrial park” without delay and the Tenant will also ensure, at its complete and
exclusive expense, to have suitable and separate containers into which it will dispose of
the waste and garbage from its factory until they are removed from the site, and to dispose
and remove the foregoing waste and garbage from the area of the “industrial park” as soon as
possible and this without disturbing the other tenants use and other users use of the
“Hermon Building” and the “Industrial Park”, and while coordinating the removal thereof with
the local authority and the Landlord.
	 
	 	e.	 	It is hereby emphasized and agreed that any supply of petroleum and/or gas to the
premises requires the advance and written consent from the Landlord.
	 
	 	f.	 	A breach of this Section 14 and/or all of its sub-sections will be considered a
material breach of this contract.

Licensing, Use And Management Of The Business From Within The Premises Pursuant To The Law

15.

	 	a.	 	The Tenant hereby undertakes to use the premises and manage the premises in accordance
with the requirements of all laws, statute, regulations and municipal and other bylaws that
apply and/or will apply with respect to businesses in accordance with the nature of the
business to be conducted by the Tenant in the premises in accordance with the “purpose of
the lease”.
	 
	 	 	 	The Tenant undertakes to abide by all the provisions of the laws, regulations, bylaws and
provisions rendered by the competent authorities with respect to the premises and conducting
a business from within the premises including all the standards and provisions applicable
and/or to become applicable from time to time with respect to safety, security, fire
extinguishing, safety at work, environment, cleanliness and sanitary issues, prevention of
nuisances and any other matter as well as with respect to conforming with any regulation or
provision that was duly issued concerning any matter.
	 
	 	 	 	Additionally, the Tenant hereby undertakes to obtain, at its exclusive and complete expense,
all the approvals, permits and licenses that are required, if required by the competent
authorities in order to conduct its business from within the premises building and to pay,
where necessary and as required by law – all payments without exception associated thereto.
	 
	 	 	 	The Landlord on its part will cooperate, in good faith, if the Tenant so requires, and will
sign any applications and documents that are required in order to obtain all the

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 25 - 

	 	 	 	permits, approvals and licenses necessary in order to conduct the Tenant’s business from
within the premises.
	 
	 	 	 	The Landlord hereby declares that to the best of its knowledge there is nothing preventing
the Tenant from obtaining such approvals.
	 
	 	b.	 	Additionally, and for the sake of removing any doubt it is hereby agreed and emphasized
that the complete and exclusive liability to conduct a business and/or to use the premises
without a license, permit and/or any approval, if such a situation is in fact created, will
apply exclusively upon the Tenant and the Tenant will be the one to pay all the sanctions
imposed, if imposed, as a result thereof and will indemnify the Landlord for any expense
and/or payment and/or sanction imposed, if imposed, upon the Landlord by a third party,
including but not limited to a court and/or other competent authority for and/or due to
conducting the Tenant’s business from within the premises building without a business
license and/or without obtaining a permit and/or other approval necessary by law. The
foregoing duty of indemnification is contingent upon the Landlord notifying the Tenant of
the demand and/or claim and/or charge against it and enabling the Tenant, insofar as
dependent upon the Landlord, to defend itself.
	 
	 	c.	 	It is hereby agreed and emphasized that the Tenant must pay the full rent due on
leasing the premises even if it does not actually use the premises as a result of not
obtaining all the approvals, permits and licenses necessary and/or required from time to
time by law and by any competent authority in order to conduct its business from within the
premises and the use of the premises in accordance with the “purpose of the lease” and in
accordance with the rest of the terms and provisions in this contract.
	 
	 	d.	 	A breach of Section 15(a) and/or a breach of Section 15(b) and/or a breach of Section
15(c) above will be considered a material breach of this contract.

Insurance and Liability

16.

	 	a.	 	The Landlord’s Insurance Policies
	 
	 	 	 	Without derogating from the Tenant’s liability under this agreement and/or pursuant to the
law the Landlord undertakes to execute and maintain, itself or through a Management Company,
during the entire lease period and in the event that the “option” is exercised by the Tenant
also during the entire “extended lease period” the insurance policies referenced below and
to the extent of coverage as defined alongside them (to be referred to below as  — “The
Landlord’s Policies”) with a duly authorized and reputable insurance company in Israel and
the Tenant will reimburse the Landlord of its relative share of the foregoing insurance
premiums and insurance expenses as set forth below:

	 	1.	 	A policy covering the premises building and all affixtures thereto (to the
exception of any repairs, modifications, improvements, renovations and extensions to
the premises that were done or will be done by the Tenant or on its behalf other than

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 26 - 

	 	 	 	through the Landlord or the Management Company) against loss or damage that is
acceptable to insure against them including but not limited to risks of fire,
explosions, earth quake, malicious damage, storm, blizzard, flood and water damages,
damage by aircrafts, riots, strikes, supersonic explosion, damage by vehicles, collision
damage, glass breakages, mechanical breakages, damages from burglaries and such like,
all at the Landlord’s exclusive discretion for the full value of rebuilding the building
and the premises as estimated by the Landlord.
	 
	 	 	 	The foregoing policy will include a clause pursuant to which the Insurer will waive any
right to subrogation toward the Tenant and or anyone acting on its behalf, provided that
the damage was not caused maliciously and this provided that also the Tenant’s insurance
policies include a similar clause.
	 
	 	2.	 	A policy for loss of rent, parking fees and management fees as a result of the
risks covered in the property insurance policy specified in Section 16(a)(1) above
during an indemnification period of no less than 12 calendar months and the amounts
will be revised from time to time by the Landlord and/or by the “Management Company”
all at their exclusive and absolute discretion. The foregoing policy will include a
clause pertaining to the waiver of the right to subrogation against the Tenant and/or
anyone acting on its behalf to the exception of a person who maliciously causes the
damage.
	 
	 	 	 	The Tenant undertakes to pay the Landlord its relative share of these insurance premiums
within 30 (thirty) days to begin on the date the Landlord demands reimbursement thereof.
In such an instance the Tenant will be released from payment of the basic rent and
management fees for those instances and during that period in which the insurance
company pays the Landlord and/or Management Company, all pursuant to the matter at hand,
the full payments of the rent and management fees in a timely manner.
	 
	 	 	 	The Tenant’s relative share of the insurance premium will be determined by the Landlord
based on the ratio between the (gross) area of the premises and the (gross) area of all
the premises and buildings insured under that same policy and the Tenant will pay its
relative share of the foregoing insurance premiums at the Landlord’s request to do so
and in accordance with the terms and payments determined by the Landlord. The Tenant
will be entitled to review, at the Landlord’s offices, all the insurance polices that
are issued as above as well as to review all the charges in connection with its
obligation to pay the relative share of these insurance premiums.
	 
	 	3.	 	Third party liability insurance policy insuring the Landlord’s, Management
Company’s and Tenant’s liabilities for any injury and/or damage sustained to the person
and/or property of any person and/or entity within the public areas of the land
adjoined to the “building” and the premises (other than areas whereby an
exclusive right of use has been given to the Tenant in accordance with this
agreement) for appropriate sums at the Landlord’s discretion provided that the limits
of liability do not fall short of a sum of $2,000,000.- (Two Million US Dollars) per
incident and for the duration of the annual insurance period.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 27 - 

	 	 	 	The policy will not be subject to any restrictions with respect to liability deriving
from fire, explosions, shock, poisoning, anything harmful in food and beverages,
elevation devices, loading and unloading, defective sanitary facilities as well as
subrogation claims by the National Insurance Institute.
	 
	 	 	 	The policy will be subject to the cross-liability clause pursuant to which the policy
will be deemed as if executed separately for each of the insured’s individuals.
	 
	 	4.	 	Employers liability insurance policy for the Landlord and Management Company’s
liability toward all those employed by them and on their behalf for bodily injuries or
illnesses they sustain during the course of and as a result of their employment with
the maximum limits of liability acceptable in Israel on the date the policy is issued
which will not fall short, under any circumstances, of a sum of $5,000,000.- (Five
Million US Dollars) per incident, for one year of insurance.
	 
	 	 	 	This policy will not include any restriction pertaining to contractors, sub-contractors
and their employees, bate and toxins as well as the employment of youth.
	 
	 	 	 	Such a policy will be extended to cover the Tenant in the event that it is considered an
employer of the Landlord and/or Management Company’s employees.
	 
	 	5.	 	The Landlord declares that it nor the Management Company will have any
assertion and/or demand and/or claim against the Tenant and those acting on its behalf
for any damage they are entitled to indemnification thereof under the policies they
executed or by any one of them pursuant to Sections 16(a)(1) and 16(a)(2) above and/or
pursuant to any additional policy executed by the Landlord and/or Management Company
and which the Tenant paid its relative share thereof and that they hereby release the
foregoing of any liability for such damage to the exception of the deductible which the
Landlord and/or Management Company are liable for under the policy provided that the
aforesaid pertaining to the waiver of the right to subrogation does not apply in favor
of a person who maliciously caused the damage.
	 
	 	6.	 	If during the “lease period” and/or the “extended lease period” construction
work or completion work of the “building” continue or construction work and/or the
establishment of other buildings in the “project” and/or the “land” is carried out or
other work in the “project” is carried out which is reasonably foresee that damage may
be caused to the Tenant, its employees and its invitees or to the building or the
premises itself, the Landlord undertakes, itself or through the Management Company to
execute and maintain an “all-risks work in progress” policy with a duly authorized and
reputable insurance company in its name and in the name of the contractors and
sub-contractors which will include the following chapters:

	 	a.	 	An “all-risk” contractors work policy insuring the building
including but not limited to all its systems for the value to replace them.
This chapter will be subject to the clause pertaining to the waiver of the
right to

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 28 - 

	 	 	 	subrogation toward the Tenant and/or those acting on its behalf in connection
with the damage from the foregoing work provided that the aforesaid pertaining
to the waiver of the right to subrogation does not apply in favor of a person
who maliciously causes the damage.
	 
	 	b.	 	Third party insurance policy insuring the Landlord, its
contractors and sub-contractors liability for any harm and/or injury to the
person and/or property of any person and/or persons within the limits of
liability not to fall short of a sum of $1,000,000.- (One Million US Dollars)
per incident, cumulatively for the duration of the insurance period. The
policy will not be subject to any exceptions pertaining to rocky and weakening
of supports, adjacent property and the property that is being worked on.
	 
	 	c.	 	Employers’ liability policy insuring the Landlord’s liability
toward those it employs for construction work for any bodily injury or illness
they sustain during the course of and as a result of their illness within the
maximum limits of liability that is acceptable in Israel on the date the policy
is executed. The policy will not be subject to any exceptions pertaining to
in-depth work or work being performed up high, bate and toxins, contractors,
sub-contractors and their employees and any limitations with respect to
employing youth.

	 	 	 	The policy will include an explicit clause pursuant to which it will not be
cancelled or minimized unless written notice thereof is given to the Tenant within a
reasonable period in advance but will not apply in favor of a person who maliciously
causes the damage.
	 
	 	 	 	The Tenant will be liable for all damage sustained in the area of the premises as a
result of conducting its business or even outside the area of the premises as a
result of any negligent act or omission by the Tenant, its employees, agents and/or
any person or other entity acting on its behalf.

	 	b.	 	The Tenant’s Policies
	 
	 	 	 	Prior to the date of receiving possession of the premises and/or prior to the date to
commence any work in the premises by the Tenant and/or by someone on its behalf – the
earlier of these two dates – the Tenant undertakes to execute and maintain an “work in
progress policy” as specified in the “Work In Progress Policy” Section set forth in Section
16(b)(1) below with a duly authorized and reputable insurance company for all the work it is
to perform, including but not limited to equipment, systems and machinery as well as for any
renovations, repairs and extensions made to the premises.

	 	1.	 	"Work in progress Policy” – will be executed on behalf of the Tenant,
contractors, the Tenant’s sub-contractors and will include the following insurance
chapters:

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 29 - 

	 	a.	 	An “all-risk” contractual work policy insuring the full value
of the all the work being conducted by the Tenant as well as the cost of any
repairs, renovations, improvements, modifications and extensions made to the
premises (other than through the Landlord and/or the Management Company). This
chapter will include an explicit extension of coverage pertaining to property
that is being worked on with no exceptions that are to be conducted by the
Tenant in the premises and for a sum of no less than $1,000,000.- (One Million
US Dollars) under any circumstances.
	 
	 	b.	 	Third party insurance policy insuring the Landlord’s liability
for any injury and/or damage to the person and/or property of any person and/or
body in connection with the performance of the work in progress within the
limits of liability not to fall short of a sum of $1,000,000.- (One Million US
Dollars) per incident and cumulatively for the duration of the insurance
period. The Landlord and/or Management Company’s property will be considered
as third party property for the purpose of this chapter.
	 
	 	 	 	This chapter will be extended to indemnify the Landlord and the Management
Company for their liability for the Tenant’s acts and/or omissions subject to
the cross-liability clause pursuant to which it is deemed that a separate policy
was executed for each and every one of the Insureds referenced above.
	 
	 	c.	 	Employers liability insurance policy insuring the Tenant’s
liability toward all those it employs to carryout the construction work for any
bodily injury or illness they sustain during the course of and as a result of
their work within the maximum limits of liability acceptable in Israel on the
day the policies are executed but under no circumstances will this policy fall
short of a sum of $5,000,000.- (Five Million US Dollars) per incident and for
the entire insurance period.
	 
	 	 	 	This policy will not be subject to any exception pertaining to work up high or
deep down, bate and toxins, contractors, sub-contractors and their employees and
all restrictions pertaining to the employment of youth.

	 	 	 	The work-in progress policy will include an explicit clause pursuant to which it
takes priority over any other policy that is executed by the Landlord or/also the
Management Company and that the Insurer waives any allegation pertaining to double
insurance or contributing to the Landlord’s policies. Likewise, the policy will
include an explicit clause pursuant to which it will not be cancelled nor minimized
unless written notice thereof is delivered to the Landlord a reasonable period in
advance but will not apply in favor of a person who maliciously caused the damage.
	 
	 	 	 	No later than on the delivery date of possession of the premises or on the date for
commencing the work (the earlier of the two dates) the Tenant undertakes to furnish
the Landlord with confirmation pertaining to the execution of the

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 30 - 

	 	 	 	“Work in Progress insurance policy” in accordance with the draft attached to this
agreement as Appendix E whereby it is signed by the Insurer.
	 
	 	 	 	It is agreed between the parties that furnishing the “work in progress insurance
policy” is a condition precedent and suspending condition to carrying out the work
or delivery of possession of the premises to the Tenant. The Landlord will be
entitled to prevent the Tenant from carrying out any work in the premises and/or
delivery of possession in the premises to the Tenant in the event that such
confirmation is not furnished of the Landlord on the date referenced above.
	 
	 	2.	 	Prior to the date upon which the Tenant is to open its business from within the
premises or prior to the date any property is inserted into the premises (except for
property that is included in the insured work pursuant to Section 16(b)(1) above) – the
earlier of the two dates – the Tenant undertakes to execute and maintain for the
duration of the entire contract period all the policies specified below (to be referred
to below as – “The Tenant’s Policies”) with a duly authorized and reputable insurance
company in Israel as follows:

	 	a.	 	Content of the premises policy including but not limited to
insuring all equipment serving the premises and which is owned and/or for which
the Tenant is responsible for outside the premises or within the boundaries of
the “land” as well as the Tenant’s work policies and any repairs,
modifications, improvements, renovations and extensions to the premises that
are done and/or will be done by the Tenant and/or someone on its behalf as
well as completely insuring all the furniture, equipment, facilities of any
type and kind against loss or damage due to fire, lightening, explosions,
earthquake, riots, strikes, malicious damage, flood, storm and blizzard
damages, damages from an aircraft, water damages, supersonic explosion, damages
from other fluids and gases, collision damages, glass breakages and burglary.
	 
	 	 	 	The policy will include an explicit clause pursuant to which the Insurer waives
any right to subrogation toward the Landlord and/or Management Company as well
as toward the other tenants and/or residents in the building whose insurance
policies also include a similar clause pertaining to the waiver of the right to
subrogation toward the Tenant provided that the aforesaid pertaining to the
waiver of the right to subrogation does not apply in favor of a person who
maliciously causes the damage.
	 
	 	b.	 	Loss of income insurance policy [to the exception of rent,
parking fees, advertising fees and management fees] due to the risks insured
under the section above for the duration of the indemnification period of no
less than 12 (twelve) months.
	 
	 	 	 	The foregoing policy will include a waiver of the right to subrogation toward
the Landlord and/or Management Company as well as the other tenants and/or other
residents in the “building” whose insurance policies

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 31 - 

	 	 	 	also include a similar clause pertaining to the waiver of the right to
subrogation toward the Tenant provided that the foregoing pertaining to the
waiver of the right to subrogation does not apply in favor of a person who
maliciously causes the damage.
	 
	 	c.	 	Third party liability insurance policy insuring the Tenant’s
liability for any injury or damage to the person or property of any person or
entity within the limits of liability of no less than a sum in NIS equal to a
sum of $1,000,000.- (One Million US Dollars) per incident, for one insurance
year.
	 
	 	 	 	This policy will not be subject to any restriction pertaining to liability
deriving from fire, explosion, shock, elevation devices, loading and unloading,
defective sanitary facilities, poisoning, anything harmful in food or beverages
as well as with respect to claims by the National Insurance Institute.
	 
	 	 	 	The policy will be extended to indemnify the Landlord and/or Management Company
for their liability for the Tenant’s acts and/or omissions and this subject to
the cross-liability clause pursuant to which the policy will be deemed as if
executed separately for each of the insured’s individuals.
	 
	 	d.	 	Employers’ liability insurance policy for the Tenant’s
liability toward all employees employed by it and on its behalf within the
limits of liability not to fall short, under any circumstances, of a sum of
$5,000,000.- (Five Million US Dollars) per incident for the entire insurance
period. This policy will not include any restriction pertaining to
contractors, sub-contractors and their employees, bate and toxins as well as
with respect to the employment of youth.
	 
	 	e.	 	 

	 	1.	 	“Premises Insurance Policies” – will include an
explicit clause pursuant to which they take priority over any other policy
that is executed by the Landlord and/or Management Company and that the
Tenant’s insurer waives any assertion of double insurance or contribution
to the “Landlord’s policies”. Likewise, the Insurer undertakes that the
policies will not be minimized or cancelled nor will they expire and will
remain in effect for the entire duration of the policy period unless
written notice thereof is given to the Landlord by registered mail at least
60 (sixty) days in advance.
	 
	 	 	 	The Tenant undertakes to revise the policy amount for the policy it executes
pursuant to the section pertaining to the property insurance above, from
time to time, therefore always reflecting the full value of the property
insured there under.
	 
	 	2.	 	The Tenant declares that it will have no assertion
and/or claim and/or demand against the Landlord and/or the “Management
Company”

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 32 - 

	 	 	 	and/or against the other tenants in the “building” and/or any other premises
in the “project” and/or on the “land” for any damage awarding
indemnification thereof or for which indemnification would be awarded but
for the deductible stipulated in the policy pursuant to the policies which
it undertook to execute in accordance with the foregoing sections and/or
pursuant to any additional policy that is actually executed, and it hereby
releases the Landlord and/or “Management Company” and/or the other tenants
and/or other residents in the project areas and/or built buildings and/or
buildings to be built on the “land” of any liability for such damage,
provided – in relation to the other tenants and the residents that their
lease agreements or any other agreement granting them rights to the building
in the “project” and/or in the built buildings and/or buildings to be built
on the “land” includes a similar clause pertaining to the release of
liability in favor of the Tenant. The foregoing pertaining to the release
of liability will not apply in favor of a person who maliciously causes the
damage.
	 
	 	3.	 	Without the need for a demand by the Landlord, the
Tenant hereby undertakes to issue the Landlord, no later than the date upon
which the Tenant opens its business from within the premises or prior to
the date any property is inserted into the premises [except for property
included in the insured work under Section 16(b)(1) above], the earlier of
these two dates, confirmation with respect to executing the premises policy
in accordance with the format of the “confirmation of the premises
policies” attached to this agreement and marked as Appendix F
whereby it is signed by the Insurer.
	 
	 	 	 	The Tenant declares that it is aware that furnishing the “confirmation of
the premises insurance policies” as noted above is a condition precedent and
a suspending condition to opening the Tenant’s business from within the
premises and/or inserting any property into the premises [except for
property that is included in the insured work under Section 16(b)(1) above],
and the Landlord is entitled to prevent the Tenant from opening its business
in the premises and/or inserting any property into the premises in the event
that such confirmation is not furnished. It is hereby emphasized that not
furnishing the confirmation of policies on the date stipulated above will
not prejudice the Tenant’s obligations under this contract including but
without prejudicing the generality of the above, any duty to pay that is
applicable to the Tenant and the Tenant undertakes to fulfill all its
obligations under this contract even if it is prevented from carrying out
the work in the premises and/or receiving possession of the premises and/or
inserting property into the premises and/or opening its business from within
the premises due to not furnishing the foregoing confirmation by the date
stipulated under the terms of this contract.
	 
	 	4.	 	The Tenant hereby undertakes to abide by all the
clauses in the insurance policies specified above, to pay all insurance
premiums in

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 33 - 

	 	 	 	full and in a timely manner, and to ensure that the premises insurance
policies are renewed from time to time, as needed, and remain in effect
during the entire “lease period” and in the event of exercising the “option”
pursuant to the terms of this contract – also during the “extended lease
period”.
	 
	 	 	 	No later than 14 days prior to the end of the premises insurance policy
period the Tenant undertakes to deposit with the Landlord new confirmation
of the “confirmation of premises insurance policies” regarding the extension
thereof for an additional calendar year for each policy specified above.
The Tenant undertakes to renew and reissue the confirmation of the premises
insurance policies on the stipulated dates each insurance year and so long
as this agreement remains in effect.
	 
	 	 	 	At the Landlord’s request, the Tenant will issue a copy of the insurance
policy that the Tenant executed to the Landlord for each one of the
policies that the Tenant took upon itself to execute and maintain as noted
above.
	 
	 	 	 	The Landlord is entitled to examine the confirmation of insurance policies
and/or the insurance policies that are issued by the Tenant as noted above
and the Tenant undertakes to make any changes or amendments that are
required so that they conform with the Tenant’s obligations.
	 
	 	5.	 	The Tenant declares and undertakes that the Landlord’s
right to scrutinize the confirmation of policies and the insurance polices
and the Landlord’s right to examine the foregoing policies and instruct
that they be amended as specified above does not impose upon the Landlord
or anyone on its behalf any duty and liability with respect to the
confirmation of policies and insurance polices above, the nature thereof,
the extent and validity thereof or the absence thereof nor does it derogate
from any duty imposed upon the Tenant pursuant to this agreement.
	 
	 	 	 	The Tenant hereby undertakes not to do and not to permit others to do any
act or omission in the premises and/or the areas of the “building” and/or
the “land” including any area that is built on the “land” that exceeds the
Tenant’s regular activities as defined in the agreement which may cause an
explosion and/or fire and/or increases the costs of insurance applicable to
the Landlord and/or the “Management Company” and/or other tenants for the
‘building” policy or for insuring any premises located in the “building”
and/or built on the “land”.
	 
	 	 	 	The Tenant undertakes that in the event the Landlord and/or Management
Company are charged an additional insurance premium beyond what is
acceptable for the Tenant’s activity, the Tenant will pay

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 34 - 

	 	 	 	the Landlord and/or the “Management Company”, pursuant to the matter at
hand, the difference immediately upon receiving the first demand to do so by
any one of the parties.
	 
	 	 	 	It is hereby clarified and agreed that executing the insurance policies as
above in this contract will not reduce or derogate by any manner from the
parties undertakings under this contract.
	 
	 	 	 	For the sake of removing any doubt it is clarified that the Landlord’s
involvement in connection with the execution of the various insurance
policies by the Tenant, including but not limited to the types of policies
and/or determining the minimum limits of liability does not impose any
liability upon the Landlord with respect to the insurance coverage, the
extent thereof or the adjustment thereof.

	 	c.	 	Liability for Damages

	 	1.	 	The Tenant will assume liability pursuant to the law for any loss and/or damage
and/or injury caused to the premises and/or the areas adjoined thereto and/or in
connection thereto and/or the contents thereof and/or to any person and/or corporation,
including but not limited to employees and/or the Landlord and/or anyone on its behalf
and/or the clients and/or any other person that derive directly from conducting its
business from within the premises and/or from possession and/or use of the premises
and/or any other action by the Tenant and/or on its behalf or with its permission
including but not limited to during the performance of the Tenant’s work in the
premises.
	 
	 	2.	 	It is clarified and agreed between the parties that the Landlord will not
assume any liability whatsoever with respect to damage to the person and/or property of
any type sustained by the Tenant’s employees, clients, visitors, invitees and/or any
other third party including but not limited to adjacent businesses to the premises that
are caused as a result of and/or due to the use of the premises by the Tenant and/or by
anyone on its behalf unless the damage was caused as a result of a negligent and/or
intentional act or omission by the Landlord and/or anyone acting on its behalf and/or
in its name.
	 
	 	3.	 	The Tenant undertakes to indemnify the Landlord for any damage and/or payment
it is required to pay or forced to pay including damage or an expense it sustains due
to a claim filed against it for any damage or loss within the Tenant’s liability as
specified in Section 16(c)(1) above and this provided that the Landlord informs the
Tenant upon becoming aware of such a claim or demand and enables the Tenant to defend
itself and will cooperate with the Tenant in such a defense.

	 	d.	 	It is hereby agreed that anywhere in this agreement whereby the “Landlord” and/or
“Management Company” are referenced this will also refer to contractors and/or
sub-contractors on their behalf and/or on behalf of any of them.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 35 - 

	 	e.	 	It is hereby agreed that a breach of any sub-section of Section 16(a) and through until
Section 16(c) inclusive will be considered a material breach of this contract.

Prohibition Against Assignment Of The Tenant’s Rights To The Premises

17.

	 	a.	 	The Tenant will not be entitled to assign and/or endorse its rights under this lease
contract, in whole or in part, directly or indirectly, to any person and/or legal entity
and/or other without first obtaining the Landlord’s written consent in advance thereto.
	 
	 	 	 	However, the foregoing in this section is subject to the provisions of Section 17(e) below.
	 
	 	b.	 	Additionally and subject to the provisions of Section 17(e) below, the Tenant hereby
undertakes not to deliver or lease the premises or any part thereof by a sub-lease, not to
permit any person or legal entity, whether registered or unregistered, to use the premises
and not to share with any person or legal entity as noted above in the possession of the
premises and all these – whether for consideration or without consideration, unless it
first obtains the Landlord’s consent in advance and in writing.
	 
	 	 	 	However, notwithstanding the above the Tenant will be entitled to employ employees in order
to conduct its business from within the premises in accordance with the terms of this
contract provided that no liabilities are vested in these employees by and/or against the
Landlord as well as provided that these employees will have no rights in the premises.
	 
	 	c.	 	It is hereby emphasized that the Landlord does not have to agree to the transfer of
rights by the Tenant as noted in Sections 17(a) and/or 17(b) above nor will it have to
reason or explain such a refusal however this is subject to the provisions of the Section
17(e) below.
	 
	 	d.	 	 

	 	1.	 	With respect to a tenant of the premises who is a Private Ltd. Company
that was duly incorporated pursuant to the Companies Ordinance (New Version) the
following provisions will apply:
	 
	 	 	 	The Tenant hereby declares that the only shareholders in the company
constituting the Tenant (hereinafter – “The Company”) are only the shareholders
specified in the company’s attorney’s and/or accountant’s confirmation attached
hereto as Appendix J to this contract (hereinafter – “The
Shareholders”).
	 
	 	 	 	A transfer of the Tenant’s shares among the “shareholders” referenced in
Appendix J to this contract will not require the Tenant to obtain the
Landlord’s advance consent thereto but the Tenant undertakes to notify the
Landlord in writing of any such a transfer of shares within 15 (fifteen) days
from the time it is executed.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 36 - 

	 	 	 	The offering of company shares to the public will not require obtaining the
Landlord’s advance approval thereof.
	 
	 	2.	 	Subject to the provisions of Section 17(d)(1) above, it is hereby
agreed that the Tenant and “shareholders” will be entitled to allot or transfer
shares and/or rights in the Tenant under the following conditions:

	 	a.	 	To allot and/or transfer shares and/or rights in the Tenant
among themselves or to others or to grant shares and/or other rights in the
Tenant to another person but this – provided that the “shareholders” continue
to hold 26% — at least – of the total shares and/or rights in the Tenant and by
such a manner that their holdings of the shares in the Tenant and/or rights
therein are not less than 26% in any form or alternatively –
	 
	 	b.	 	1. To allot and/or transfer the Tenant shares and/or rights
among themselves and/or to others without any restrictions with respect to the
percentage of the “shareholders” holdings in the Tenant’s shares and/or the
rights therein but this — provided that if the “shareholders” hold less than
26% of the total Tenant shares and/or rights they must, as well as the Tenant,
inform the Landlord in writing within 15 (fifteen) days from the date upon
which the “shareholders” holdings in the shares and/or rights in the Tenant are
less than 26% of the total shares and/or rights in the premises.
	 
	 	2.	 	Additionally, it is hereby agreed and emphasized that
if the “shareholders” holdings in the Tenant’s shares and/or rights therein
are less than 26% of the Tenant’s shares and/or all the rights therein then
the Landlord is hereby granted the right to rescind this contract and the
lease hereunder and demand that the Tenant vacate the premises without the
Tenant and/or anyone on its behalf, including but not limited to the
“shareholders” having any claim and/or assertions and/or demands of any
type and kind, without any exceptions, against the Landlord but all this
provided that the Landlord gives the Tenant at least 6 months written
notice in advance with respect to the rescission of this contract and the
lease hereunder. The Landlord’s notice will be given to the Tenant within
6 (six) months from the date it receives the Tenant’s notice referenced in
Section 17(d)(2)(b)(1) above.

	 	e.	 	Despite the aforesaid in Sections 17(a) and 17(b) above it is hereby agreed that the
Tenant will be entitled to lease by a sub-lease the premises or any part thereof
(hereinafter – “The Area Designated For A Sub-Lease”) but only if all the cumulative
conditions below are met in their entirety and without any exceptions:

	 	1.	 	The Tenant will be entitled to sub-lease 50% (Fifty Percent) of the
“area designated for a sub-lease) immediately upon receiving actual possession of
the premises.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 37 - 

	 	 	 	Additionally, the Tenant will be entitled to lease all the “area designated for
a sub-lease” only after 24 (twenty four) calendar months have passed that will
begin on the date the “lease period” starts, i.e. commencing from 1.1.2004
onwards.
	 
	 	2.	 	The Tenant will give the Landlord written notice in advance of 90
(ninety) days at least pertaining to its intent to lease to a third party by a
sub-lease the “area designated for a sub-lease”. It is hereby clarified and
emphasized that the Sub-Tenant must be a “approved enterprise” pursuant to the
“Encouragement of Capital Investments Law 5719-1959”.
	 
	 	 	 	In this notice the Tenant will specify the name of the proposed Sub-Tenant, its
business, the purpose of the sub-lease and additional general terms of the
sub-lease including but not limited to the rent and securities.
	 
	 	3.	 	Within 45 (forty five) days from the date the Landlord receives the
foregoing notice from the Tenant, the Landlord will be entitled and may notify the
Tenant in writing that it is interested in receiving the “area designated for a
sub-lease” back to its possession. In such an instance – the Tenant will return
the possession of the “area designated for a sub-lease” to the Landlord and the
lease subject-matter of this contract will end with respect to the “area designated
for a sub-lease” at the end of 30 (thirty) days from the date upon which the
Landlord notifies the Tenant that it wishes to have the “area designated for a
sub-lease” back.
	 
	 	 	 	Additionally, it is hereby agreed that in any event that the “area designated
for a sub-lease” is returned to the Landlord’s possession in accordance with the
above, then the Landlord will not have to, nor will it demand to return and/or
compensate and/or indemnify the Tenant for the expenses and/or the Tenant’s
investments associated with the “area designated for a sub-lease” and/or
renovation thereof and/or improvements thereto and all the terms of this
contract will apply with respect to the termination of the lease subject-matter
of this contract mutatis mutandis pursuant to the matter at hand, also in the
event of termination of the lease subject-matter of this contract with respect
to the “area designated for a sub-lease”.
	 
	 	 	 	Notwithstanding the above in this sub-section it is hereby agreed that the
Landlord will not exercise its right to have the “area designated for a
sub-lease” returned to its possession with respect to the areas that are leased
by the Tenant by a sub-lease for the first 2 (two) years of the “lease period”
provided that the sub-lease period of these areas end by 31.12.2003.
	 
	 	4.	 	If the Landlord does not deliver to the Tenant, within 45 (forty five)
days starting from the date it receives the Tenant’s notice referenced in Section
17(e)(2) above, written notice pertaining to its desire to have all the “area
designated for a sub-lease” returned to its possession and also if the Landlord
does not object, within the aforesaid 45 (forty five) day period, in good faith,
and on reasonable grounds to be specified by the Landlord in

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 38 - 

	 	 	 	writing to the identity of the Sub-Tenant – the Tenant will be entitled to lease
to the Sub-Tenant by a sub-lease that was proposed by it in the Tenant’s
foregoing notice only the “area designated for a sub-lease” and this also
provided that the following terms are met in their entirety:

	 	a.	 	The sub-lease contract will include an explicit
undertaking by the Sub-Tenant addressed both to the Tenant and the
Landlord that it will not act by any means that breaches and/or which may
breach the terms and/or provisions in this contract. A copy of the
sub-lease contract will be furnished to the Landlord by the Tenant and
the Sub-Tenant prior to the Sub-Tenant making any use of the “area
designated for a sub-lease” and attached thereto will be an explicit
undertaking by the Sub-Tenant addressed to the Landlord pertaining to the
Sub-Tenant’s undertaking to fulfill completely and in a timely manner and
orderly fashion all the Tenant’s obligations set forth in this contract
mutatis mutandis deriving from the Sub-Tenant’s possession of the “area
designated for a sub-lease”.
	 
	 	b.	 	The purpose of the sub-lease will be identical to
the “purpose of the lease” and under no circumstances will permission be
given by the Landlord to sub-lease any area of the “area designated for a
sub-lease” for the purpose of conducting a business whereby such a
business is not permitted by the applicable CBP and/or becomes
applicable to the premises nor with respect to any business whereby
conducting such a business from within the premises will breach any
undertaking that the Landlord assumed and/or will assume toward any third
parties that leased and/or will lease from the Landlord any areas in the
building in which the premises are located.
	 
	 	c.	 	Any Sub-Tenant that leases from the Tenant a part
of the premises will not have an independent right to the area it leased
pursuant to the sub-lease, its right to make use, as a Sub-Tenant, of
that area that it leased by a sub-lease pursuant to the terms of this
contract are dependent and contingent upon the Tenant’s right to lease
and/or to make use of the area in accordance with the terms of this
contract, and also including the fact that the Tenant as well as the
Sub-Tenant completely and in an orderly fashion and by the requisite
dates fulfill all its obligations, without any exceptions, of the Tenant
in accordance with this contract.
	 
	 	d.	 	In any instance that the Landlord is entitled to
demand and/or claim pursuant to the law and/or pursuant to the terms of
this contract that the Tenant vacate the premises, the Landlord will be
entitled to demand and/or claim also the immediate eviction from the
premises, including also from the “area designated for a sub-lease” any
Sub-Tenant that leases from the Tenant any part of the premises by a
sub-lease.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 39 - 

	 	e.	 	Every Sub-Tenant will sign, prior to making any
use of the premises and/or part thereof a letter of undertaking in the
format attached hereto as Appendix G to this contract and
constituting a material and integral part hereof.
	 
	 	f.	 	No sub-lease of any area of the premises to any
Sub-Tenant will release the Tenant by any manner of its duty to
completely and in an orderly fashion and timely manner fulfill all its
obligations, without any exceptions in accordance with this contract and
the Tenant will be liable toward the Landlord completely and without
reservations to adhere to all the terms of this contract whether some of
the premises or all of the premises are in the Sub-Tenant’s possession or
not.
	 
	 	g.	 	Any Sub-Tenant of any area of the premises will
sign, prior to making any use of the premises, as a guarantor for the
fulfillment of all the Tenant’s obligations with respect to the “area
designated for a sub-lease” in accordance with this contract and this –
in accordance with the draft letter of guarantee that is furnished to it
by the Landlord.
	 
	 	h.	 	If the rent paid to the Tenant, by the Sub-Tenant,
for the “area designated for a sub-lease”, that is leased by the Tenant
by a sub-lease, is higher than the rent paid to the Landlord for that
area pursuant to this contract, the Tenant will pay the Landlord 50%
(Fifty Percent) of the difference of such rent.

	 	f.	 	A breach of this Section 17 above and/or a breach of any of its sub-sections will be
considered a material breach of this contract.

Maintaining the premises

18.

	 	a.	 	The Tenant hereby undertakes to use the premises cautiously and reasonably and to keep
the structure of the premises complete and in a good state of repair during the entire
lease subject-matter of this contract and until it is returned to the Landlord.
	 
	 	b.	 	Any spoilage or damage caused to the structure of the premises by the Tenant, its
employees, agents, messengers, invitees and guests, to the exception of reasonable and
regular wear and tear caused by the Tenant to the premises due to regular and reasonable
use of the premises for the “purpose of the lease” and which does not prevent reasonable
use of the premises in accordance with the “purpose of the lease”, will be repaired within
a reasonable time by the Tenant and at the Tenant’s expense.
	 
	 	 	 	The Tenant hereby undertakes to keep the premises in good condition, and proper working
order always and to carryout all the work necessary from time to time in order to preserve
the condition and maintenance thereof (including the facilities and accessories therein) to
an appropriate standard. All this work, including but not

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 - 40 - 

	 	 	 	limited to painting, whitewashing and renovations will be done by the Tenant and at the
Tenant’s complete and exclusive expense.
	 
	 	c.	 	If the Tenant does not repair, within a reasonable period of time, the damages and
spoilage which the Tenant is obligated to repair pursuant to the terms of this contract,
the Landlord will be entitled to repair them and the Tenant will assume all the expenses
associated with the repairs done by the Landlord and will be paid to the Landlord and/or
made payable to the Landlord within 7 days from the date the invoice for the repairs is
furnished by the Landlord to the Tenant in addition to a handling fee of 15% (Fifteen
Percent) of the total sum of the expenses involved in carrying out these repairs.
	 
	 	d.	 	A breach of this Section 18 above and/or a breach of any of Sections 18(a) through
18(c) above sub-sections will be considered a material breach of this contract.

Changes to the Premises

19.

	 	a.	 	The Tenant hereby undertakes not to make any material changes to the structure of the
premises, whether beneficial or detrimental and not to make any other changes to the
premises without obtaining the Landlord’s written consent thereto in advance. For the sake
of removing any doubts it is hereby clarified and agreed that the Tenant will not be
entitled to make any changes to the external walls of the premises structure and/or the
walls bordering other premises belonging to other tenants in the areas included in the
“building” nor will the Tenant be entitled to make any other changes to the shell and/or
construction columns of the premises.
	 
	 	 	 	The Tenant hereby undertakes to exclusively and absolutely assume payment of all the
expenses, without any exceptions, involved in carrying out the “Tenant’s work” as define in
Section 9(a) above that are carried out, if carried out by the Tenant in the premises
(above and below – “The Work”), also including payment of the expenses that it expends for
the purpose of hiring architects, consultants and the various types of sub-contractors and
this – in order to adjust the premises to the purpose of conducting the Tenant’s business in
accordance with the purpose of the lease and the rest of the terms of this contract.
Additionally, it is hereby agreed that this “work” will be done, if done by the Tenant, in
accordance with the requirements of all laws pertaining to the performance thereof and the
Tenant will be exclusively and completely liable for any act, omission, damage and/or
expense associated thereto.
	 
	 	 	 	The Landlord on its part hereby gives its consent to carrying out the “Tenant’s work” and/or
the “work” by the Tenant. It is hereby clarified and agreed that subject to the provisions
of the beginning of Section 19(a) above the Landlord will not refuse unless on reasonable
grounds to be reasoned by it, to the Tenant making internal changes in the premises.
	 
	 	 	 	At the end of the lease subject-matter of this contract all the “work” and/or “Tenant’s
work” above as well as any changes, improvements and extensions done to the structure of
the premises by the Tenant with the Landlord’s permission as well as the

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 

  - 41 -

	 	 	 	rest of the accessories and systems that are permanently installed and/or affixed to the
premises on a permanent basis (including but not limited to the flooring, ceilings or walls)
– will be considered the Landlord’s property without the Landlord being required to pay the
Tenant any consideration and/or money for them.
	 
	 	 	 	However it is hereby agreed that accessories and equipment that are installed in the
structure of the premises by the Tenant and at the Tenant’s exclusive and complete expense
that can be disassembled from the structure of the premises without causing damage to the
structure of the premises may be disassembled from the structure of the premises by the
Tenant provided that any damage caused to the premises as a result of disassembling them
will be fixed by the Tenant and at the Tenant’s exclusive and absolute expense forthwith.
	 
	 	 	 	Subject to the above the Tenant hereby undertakes to leave all the “Tenant’s work” and/or
“work”, changes, improvements, extensions and permanent fixtures as noted above in tact
however – at the Landlord’s explicit demand the Tenant must, at its complete expense,
restore the premises to its original condition.
	 
	 	 	 	The duty to restore the premises to their original condition will not apply with respect to
changes to the structure of the premises which the Landlord permitted the Tenant to make
explicitly in writing.
	 
	 	 	 	Additionally, it is hereby agreed that even if the Tenant is released of the duty to restore
the premises to its original condition then such a release by the Landlord will not entitle
the Tenant to the right to receive funds and/or payment and/or other rights from the
Landlord.
	 
	 	 	 	In the event that the Tenant breaches any of its obligations specified in this section above
the Landlord will be entitled and may restore the premises to the condition it was in upon
delivering it to the Tenant forthwith, and this – at the Tenant’s expense and the Landlord
will also be entitled to claim, from the Tenant, an additional 15% (Fifteen Percent) of the
total expenses involved therein which will be paid to the Landlord as reimbursement of
expenses for the Landlord handling the restoration of the premises to its prior condition.
Likewise, the Tenant will assume all the damages, direct and/or indirect that is caused to
the premises and/or the Landlord as a result of carrying out the “work” and the foregoing
changes.
	 
	 	b.	 	Subject to the foregoing in Section 19(a) it is hereby agreed that all the “Tenant’s
work” and/or the “work” as well as any changes, additions, renovations, repairs and such
like done and/or installed in the structure of the premises will be considered the
Landlord’s property without the Tenant being entitled to reimbursement thereof by the
Landlord. Additionally, if the Tenant is required by the Landlord to remove them and
restore the previous condition – the Tenant must do so at its expense and at the Landlord’s
first demand to do so.
	 
	 	c.	 	Upon reaching the end of this contract for any reason the Tenant must restore the
premises to its previous condition as described in the “delivery protocol”, all as set
forth in Section 8(g) to this contract but this subject to the provisions of Sections 19(a)

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 42 -

	 	 	 	and 19(b) above. The premises will be returned taking into consideration reasonable wear
and tear sustained as a result of regular and reasonable use of the premises pursuant to the
terms of this contract.
	 
	 	d.	 	For the sake of removing any doubt it is hereby agreed and emphasized that the Tenant
will not be entitled, at the end of the lease subject-matter of this contract to any
payment from the Landlord for monies expended by the Tenant in connection with carrying out
the “Tenant’s work” and/or the “work” and/or in connection with the changes and/or
additions and/or renovations and/or improvements and/or in connection with the repair of
any damages and spoilages caused to the premises and/or the “building” during the lease
pursuant to this contract.
	 
	 	e.	 	A breach of Section 19 above and/or a breach of any of its sub-sections will be
considered a material breach of this contract.

Vacating the Premises

20.

	 	a.	 	The Tenant hereby undertakes to vacate the premises at the end of the lease
subject-matter of this contract including but not limited to the case whereby the lease
subject-matter of this contract is terminated or cancelled by the Landlord under
circumstances that grant the Landlord the right to do so and return the premises to the
Landlord whereby they will be free and clear of any person and object, in good condition,
working order and fit for use as the Tenant received it pursuant to the “delivery protocol”
referenced above, and taking into consideration reasonable and regular wear and tear but
with the premises containing all the “work” carried out in accordance with the Tenant’s
obligations specified in this contract as well as all the changes, improvements, extensions
that were added by the Tenant to the structure of the premises with the Landlord’s
permission and consent to do so as well as all the items, accessories and systems that were
installed in the premises and permanently affixed during the course of carrying out the
“work” or thereafter.
	 
	 	 	 	However the Tenant will be entitled to remove from the premises accessories and equipment
that were installed by it in the premises and which are capable of being removed without
causing damage to the premises.
	 
	 	b.	 	60 (sixty) days prior to the date upon which the Tenant is to return the premises to
the Landlord the Landlord (or a representative on its behalf) will inspect the premises and
execute, together with the Tenant a list of repairs that the Tenant must do including but
not limited to repairing damages and spoilages and/or repairs and changes associated with
restoring the premises to its prior state and condition pursuant to the “delivery protocol”
and taking into consideration reasonable and regular wear and tear due to regular, cautious
and reasonable use of the premises by the Tenant (hereinafter – “The Repairs”) and the
value of the repairs will also be determined in the above list. In the event of a dispute
with respect to the repairs and the expenses to carry them out – an authorized land
appraiser to be appointed with the mutual consent of both parties will decide the matter
and where no consensus is reached within 10 days from the date one of the parties
approached the other party – by such a land appraiser to be

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 43 -

	 	 	 	appointed by the head of the Land Appraiser Office in Israel pursuant to one of the parties
approaching him and/or by a joint referral by the two parties.
	 
	 	c.	 	The Tenant hereby undertakes to carryout all the repairs it is obligated to do pursuant
to the list referenced in Section 20(b) above to the Landlord’s satisfaction and this by
the date the premises are vacated pursuant to the provisions of this contract.
	 
	 	d.	 	In the event that the Tenant does not carryout the repairs by the date the premises are
vacated pursuant to the terms of this contract – they will be carried out by the Landlord,
at the Tenant’s expense, who will start the repairs on the date this is actually possible
based upon the possession situation of the premises (hereinafter – “The Date For Starting
The Repairs”). In such an instance the repair period will be deemed as if started from the
“date the repairs started” and if this period goes beyond the date upon which the lease
ends pursuant to the provisions of this contract – the Tenant will be seen as a person who
did not vacate the premises in a timely manner for the duration of this period and the
provisions of Section 21 below will apply to the deviation period.
	 
	 	 	 	If these repairs are carried out by the Landlord the Tenant must pay the Landlord an
additional handling fee of 15% (Fifteen Percent) of the total sum of the expenses associated
with carrying out these repairs.
	 
	 	e.	 	A breach of any of these undertaking specified in Section 20 above and/or any of its
sub-sections will be considered a material breach of this contract.

Untimely Vacation Of The Premises

21.

	 	a.	 	If the Tenant does not vacate the premises at the end of the lease subject-matter of
this contract and/or if the Tenant does not fulfill any of its obligations pursuant to the
provisions of Section 20 above, then in addition and without prejudicing any remedy and
relief available to the Landlord by law and/or under this contract, the Tenant will pay the
Landlord for the additional period that it continues to possess the premises as well as the
deviation period referenced in Section 20(d) above, rent at an amount equal to twice
(double) the rent recently paid by the Tenant to the Landlord for a period similar in
duration to the additional period or such a deviation period.
	 
	 	 	 	The two parties declare that the above amount will be liquidated damages that were
determined in good faith, in advance and mutually by the two parties to this contract and
after both parties estimating this amount to be the damages caused to the Landlord as a
result of a delay or being late in vacating the premises by the Tenant.
	 
	 	b.	 	For the sake of removing any doubt it is hereby explicitly declared that the foregoing
in this section does not constitute a waiver of any of the Landlord’s rights and/or
agreement to the Tenant being late or causing a delay by any means in vacating the
premises. Vacating the premises in a timely manner and actually returning them to the
Landlord are basic principles of this contract and upon reaching the end of the lease or

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 44 -

	 	 	 	termination or rescission of the lease as noted in Section 20 to this contract, the Landlord
will be entitled to evict the Tenant from the premises forthwith.
	 
	 	c.	 	A breach of Section 21(a) and/or Section 21(b) above will be considered a material
breach of this contract.

Payment of Taxes and Expenses

	22.	 	All the taxes, expenses and the rest of the payments applicable to the premises, the use
thereof as well as the lease pursuant to this contract will apply and be paid as follows:

	       a.	1.	 	 Property tax and/or other tax which by law is in effect on the date of signing
this contract imposed on the owners of premises who do not occupy the premises will apply
and be paid in full by the Landlord.
	 
	 	2.	 	Subject to the provisions of Section 22(a)(1) above the Tenant hereby
undertakes that commencing from the date upon which it actually receives possession of
the premises (including but not limited to all the areas adjoined thereto, including
the parking spaces referenced in Section 7 above) pursuant to the terms of this
contract it will pay all the taxes, fees, rates, mandatory payments, surcharges and
other various payments, whether governmental or municipal or other, applicable today
and/or applicable in the future by law and at any rate applicable from time to time by
law and which apply during the entire “lease period” and in the event the “option” is
exercised by the Tenant, during the entire “extended lease period” with respect to an
occupier and/or user of premises under an unprotected lease and which relate to the
premises and/or use thereof and/or possession of the premises during the entire “lease
period” and in the event the “option” is exercised by the Tenant – then also during the
entire “extended lease period” and/or applicable with respect to the lease
subject-matter of this contract and this – by the due date unless the relevant law
explicitly and directly negates the Landlord’s right to compel the Tenant to pay them
in full.
	 
	 	 	 	Likewise, the Tenant will assume all expenses, of any type and kind, associated with
maintaining the premises and the systems included therein as well as the maintenance
of all the systems permanently installed and/or assembled and/or built in the
premises by the Landlord and/or by the Tenant, whether prior to the start of the
“lease period” or during the lease period subject-matter of this contract, all
pursuant to the matter at hand, and without prejudicing the generality of the
foregoing, the Tenant will assume payment of all the ongoing expenses for
electricity, rates, water (including ongoing fees for drainage and sewage) relating
to the premises and/or the Tenant’s relative share of the “building” (hereinafter –
“The Payments”). The Tenant will install in the premises, at its expense, a
separate electricity meter and a separate water meter within 14 days of receiving
possession of the premises and the Tenant will act within these 14 days to register
with the Electricity Company and the local authority as occupier of the premises and
the one exclusively liable to pay all the payments including but not limited to the
tax and municipal rates

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 45 -

	 	 	 	payments applicable to the use and possession of the premises by it during the
entire period in which the lease subject-matter of this contract continues.
	 
	 	 	 	Additionally the Tenant will assume the relative share of all the taxes,
rates, fees, surcharges, mandatory payments and the rest of the payments imposed
and/or applicable to the ongoing maintenance of the public areas included in the
“building” and/or “the industrial park”, including but without any exceptions
payments of rates to the local authority for the foregoing areas in relation to the
area of the premises to the total area included in the “building” and/or “the
industrial park”, all pursuant to the matter at hand.
	 
	 	 	 	The supply of electricity to the premises will be done by the Electricity Company
after the Tenant signs a “consumer’s agreement” with the Electricity Company as
customary and acceptable with the Electricity Company. The Tenant on its part
hereby undertakes to pay the Electricity Company directly, in a timely manner and
regularly all the electricity bills in connection with the premises and/or the use
thereof by the Tenant and this – in addition to the Tenant’s duty to pay the
Landlord and/or the “Management Company” its relative share of the electricity bills
in relation to the “public areas” of the “Hermon Building” and the “industrial
park”.
	 
	 	 	 	For the sake of removing any doubt it is hereby agreed that subject to the fact that
the “Hermon Building” is duly connected to the national electricity network then the
Tenant hereby waives any claim on any grounds and any assertion and/or demand of any
type that it may have toward the Landlord and/or against the “Management Company”
and/or against anyone on their behalf pertaining to no supply of electricity to the
premises and/or as a result of disruptions thereof and/or stoppages of the supply of
electricity to the premises.
	 
	 	 	 	However, it is hereby emphasized and agreed that the Tenant will not be entitled to
ask the Electricity Company to increase the electricity connection to the premises
without obtaining approval in advance and in writing from the Landlord or to exceed
such approval – if granted.
	 
	 	3.	 	Without prejudicing the generality of the above it is hereby agreed that the
Landlord will be entitled and may demand that the Tenant pay it directly the payments
referenced in Section 22(a)(2) above, all or some, in accordance with the charge notice
it sends to the Tenant and which will include the amounts of the required payments, the
calculation thereof and the last date of payment to be no less than 10 (ten) days from
the date the notice is sent.
	 
	 	 	 	Each payment that is made by the Tenant to the Landlord pursuant to the above will
be paid by the Tenant to the Landlord in addition to VAT prescribed by law. The
Landlord will furnish the Tenant, following payment of the above, with a duly
executed invoice.

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 46 -

	 	4.	 	The Tenant undertakes to show the Landlord, from time to time, at the
Landlord’s demand, correct and photocopied copies of all the receipts and/or approvals
attesting to the fact that all the payments applicable to it under this contract have
been paid and at the end of the lease subject-matter of this contract – the Tenant
undertakes to remit to the Landlord, at its demand, all the receipts and/or original
invoices and/or clear photocopies of these documents. The Tenant undertakes to show
the Landlord photocopies of receipts and/or approvals attesting to the fact that all
payments were paid by the Tenant at the end of the “lease period” and in the event that
the “option” was exercised by the Tenant – also with respect to the foregoing payments
were paid by the Tenant following the end of the “extended lease period”.
	 
	 	5.	 	If the Landlord for any reason pays any of the payments which the duty to pay
them under the terms of this contract is applicable to the Tenant, and which the Tenant
does not pay despite receiving written warning 14 days in advance to pay them, the
Tenant must reimburse the Landlord any amount it paid as above immediately upon the
Landlord’s first demand to do so in writing to the Tenant in addition to interest in
arrears at the rate determined in Section 12(d) above and this from the date it was
paid by the Landlord and until it is actually reimbursed by the Tenant.
	 
	 	 	 	The aforesaid in this section applies mutatis mutandis pursuant to the matter at
hand in the event that the Tenant pays a payment that the payment thereof in
accordance with this contract applies to the Landlord and which the Landlord did not
pay despite receiving a written warning of at least 14 days in advance from the
Tenant.
	 
	 	6.	 	If such a payment is imposed for an entire year of which only some of it is
within the “lease period” and/or the “extended lease period”, all pursuant to the
matter at hand, the Tenant will pay the relative share of such payments relating to the
period in which it leased the premises from the Landlord.
	 
	 	7.	 	For the sake of removing any doubts it is hereby clarified and agreed between
the parties that if after signing this contract taxes, rates, surcharges or other
mandatory payments in connection with the premises and/or the “Hermon Building” and/or
the “land” are imposed upon the Landlord as the owner of the premises and/or the
“Hermon Building” and/or the “land” and/or the lease subject matter of this contract
(hereinafter – “The Additional Taxes”) the Landlord will be entitled to demand payment
or reimbursement from the Tenant of the “additional taxes” that were imposed upon the
premises or the relative share of the “additional taxes” relating to the premises, all
pursuant to the matter at hand, in addition to rent and the rest of the payments which
the Tenant is obligated to pay under the terms of this contract unless the relevant law
explicitly and directly negates the Landlord’s right to charge the Tenant the complete
payment.
	 
	 	8.	 	For the sake of removing any doubts it is hereby clarified and agreed that
betterment surcharges pertaining to the receipt of additional building rights for

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 47 -

the “Hermon Building” and/or development surcharges imposed on the “Hermon Building”
such as for paving the road, pavement, sewage, drainage – will apply and be paid in
full by the Landlord.

	 	b.	 	Additionally, it is hereby agreed that all the rest of the payments, without any
exceptions, including but not limited to payment of the taxes and the rest of the expenses
involved in managing the Tenant’s business from within the premises also including business
taxes, if applicable, as well as signpost taxes will apply and be paid in full and in a
timely manner by the Tenant.
	 
	 	c.	 	The Tenant hereby undertakes to pay in full and in a timely manner all the payments,
without any exceptions, involved in using and/or possessing subscription telephone lines
that are installed, if installed, in the premises by the Landlord and this during the
entire period of the lease subject-matter of this contract and until the premises are
vacated by the Tenant and possession thereof is returned to the Landlord.
	 
	 	 	 	Additionally, the Tenant hereby undertakes to maintain the proper working order of the
foregoing subscription telephone lines and also – to return them to the Landlord at the end
of the lease subject-matter of this contract whereby they are in working order and fit for
immediate use.
	 
	 	 	 	However it is hereby clarified and agreed that the aforesaid does not compel the Landlord to
install any telephone lines in the premises.
	 
	 	 	 	The Tenant will be entitled to install in the premises, at its complete and exclusive
expense, additional subscription telephone lines in accordance with its needs.
	 
	 	 	 	The telephone lines that are installed in the premises by the Tenant and at its expense will
belong solely to the Tenant and the Tenant will be entitled to remove them from the premises
at the end of the lease subject-matter of this contract.
	 
	 	d.	 	Value Added Tax that is applicable and/or becomes applicable to the lease and/or any
other payment, including management fees and payment for the consumption of electricity
which the Tenant is obligated to pay to the Landlord in accordance with this contract, and
at any rate applicable from time to time under the law will apply and be paid in full and
in a timely manner by the Tenant.
	 
	 	 	 	For the sake of removing any doubt it is hereby emphasized and agreed that the Tenant will
pay the full Value Added Tax that applies with respect to the payment of rent owing to the
Landlord under this contract and at any rate applicable from time to time by law, by and no
later than 2 (two) days prior to the date upon which the Landlord must pay the VAT to the
Value Added Tax Authorities pursuant to all laws.
	 
	 	 	 	For the sake of removing any doubts it is hereby agreed that a check to pay the VAT as above
will be given by the Tenant together with the rent payments but its due date will be the
date stipulated above.

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 48 -

	 	 	 	For the sake of removing any doubt it is agreed and emphasized that VAT will be added to the
payment of rent referenced in Section 12 above and its sub-sections as noted above.
	 
	 	 	 	With respect to additional payments which the Tenant must pay VAT thereon to the Landlord in
accordance with the terms of this contract and appendices hereto, the Tenant will pay full
VAT that is applicable to it from time to time and at any rate applicable from time to time
on the due date of payment of the relevant payment for which it must also pay VAT as above.
	 
	 	 	 	The Tenant will receive a duly executed tax invoice from the Landlord for all the payments
specified above in this sub-section which are to be paid by the Tenant to the Landlord.
	 
	 	e.	 	Upon signing this contract the Tenant hereby undertakes to sign the “management
agreement” attached hereto as Appendix H to this contract which will organize the
procedures in the premises of the “building” in which the premises are located and the
“land” and the “project” and all that is built and/or to be built thereon. The Tenant’s
undertaking to sign the “management agreement” attached hereto as Appendix H to
this contract constitutes a suspending condition to the validity of this contract (above
and below – “The Management Agreement”).
	 
	 	 	 	For the sake of removing any doubt it is hereby clarified and agreed that the Landlord
reserves the right to compel the Tenant to sign the foregoing “management agreement” whether
the management is executed by the Landlord itself or through a company it controls and/or
controlled by its shareholders or through any other entity (above and below in this contract
– “The Management Company”).
	 
	 	 	 	The Tenant on its part hereby undertakes to sign the “management agreement” and fulfill all
of its obligations there under including payment of expenses and/or management fees and this
in addition to and without prejudicing its obligation to pay rent in full and the rest of
the payments applicable and/or to become applicable to it in accordance with the terms of
this contract.
	 
	 	 	 	The Tenant hereby declares that it is aware that it will undertake, pursuant to the
foregoing “management agreement”, inter alia, to pay maintenance fees and management fees to
the Landlord and/or to whomever manages the maintenance of the “building”, “the project”,
and the “land” and/or to the “Management Company” who will manage the “building” and/or the
“project” and/or the “land”, in whole or in part, and all this in accordance with the terms
specified in the “management agreement”.
	 
	 	 	 	The foregoing maintenance fees and management fees will amount to all the costs and expenses
that the “Management Company” incurs in order to render the services subject-matter of the
“management agreement” in addition to management fees at a rate of 15% (Fifteen Percent),
i.e. 15% + Cost.

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 49 -

	 	 	 	The Tenant’s undertaking to sign the “management agreement” and to abide by, in a timely
manner, all the terms and provisions thereof also constitutes an undertaking of a third
party contract, i.e. in favor of the “Management Company”.
	 
	 	 	 	It is hereby clarified and agreed that the management fees under the “management agreement”
that will apply during the first 2 (two) years of the “lease period” will be determined
pursuant to a budgetary estimation to be prepared from time to time by the Management
Company or they will be calculated pursuant to a monthly sum in NIS equal to a monthly sum
of $2.75 (Two Dollars and Seventy Five Cents) per 1 square meter of the premises in addition
to VAT prescribed by law and in addition all the expenses that apply with respect to the
electricity consumption required to operate the air-conditioning systems that will be
installed in the premises and/or that are associated thereto, pursuant to the lower amount
of these two relevant calculations.
	 
	 	 	 	The Landlord hereby declares and undertakes that the standard of management of the “Hermon
Building” will be in accordance with what is acceptable in similar projects.
	 
	 	g.	 	Stamp duty on this contract will apply and be paid in full by the Tenant.
	 
	 	h.	 	A breach of each one of Sections 22(a) through until 22(f) above will be considered a
material breach of this contract.

Management of the Building and Inspecting the Premises

23.

	 	a.	 	The Tenant hereby declares that it is aware of the paramount importance which the
Landlord attributes to the management of the “premises”, the “building”, the “project” and
the “land” and the proper maintenance thereof.
	 
	 	 	 	Therefore, the Tenant hereby declares that it is aware that the provisions of the
“management agreement” as revised from time to time by the Landlord will apply to all the
tenants in the “building”.
	 
	 	 	 	The Tenant hereby undertakes to fulfill in their entirety and in an orderly fashion all the
provisions of the “management agreement” and/or any instruction, directive, permit and/or
prohibition applicable or to become applicable from time to time with respect to the
“building” and/or with respect to the “land” and/or with respect to all the premises
included in the “building” and/or that are leased by the Landlord within the area of the
“land” and/or with respect to the use thereof, including but not limited to any repair
and/or change thereto as determined from time to time, at the Landlord and/or Management
Company’s exclusive and absolute discretion and provided that all these do not interfere
with the ongoing functionality of the premises during regular business hours to be
determined by the “Management Company” and provided that they do not materially prejudice
the Tenant’s rights under this contract.
	 
	 	 	 	The Tenant will do its utmost so that it, and all those acting on its behalf and/or its
name, without any exceptions, will not act contrary to the provisions of the “management
agreement” and/or the “Management Company’s” instructions.

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 50 -

	 	b.	 	The Tenant hereby undertakes to permit the Landlord and/or its representatives to enter
the premises at reasonable times in order to inspect the condition of the premises, in
order to transfer through the premises plumbing, wires and systems belonging to the “Hermon
Building” (subject to the Landlord and/or Management Company’s duty to restore the premises
to its prior condition at their complete expense) as well as in order to execute repairs in
the premises in accordance with the provisions above in this contract and/or in the
“management agreement” and all this – during regular business hours and upon coordinating
such a visit in advance with the Tenant and provided that the possibility of reasonable use
of the premises by the Tenant is not prejudiced.
	 
	 	 	 	Additionally it is agreed that the Landlord and/or its authorized agents will be entitled to
enter the premises at reasonable times, during regular business hours, and upon coordinating
the visit with the Tenant in advance in order to show it to third parties who are interested
in leasing it and/or purchasing it.
	 
	 	c.	 	It is hereby agreed that any placing and/or installation of signs on the “building”
and/or the “premises” and/or the “land” including but not limited to directional signs
and/or advertising signs pertaining to the Tenant’s business in the premises will require
advance approval and in writing from the Landlord and its signs consultants and/or the
Management Company.
	 
	 	 	 	The Tenant’s right to install signs in the structure of the premises will be in accordance
with the provisions set forth in “the Signs Appendix” attached hereto as Appendix I
to this contract.
	 
	 	d.	 	A breach of Section 23(a) and/or Section 23(b) and/or Section 23(c) above will be
considered a material breach of this contract.

Assignment of the Landlord’s rights

	24.	 	The Landlord, and only the Landlord, is entitled to transfer its rights under this contract,
in whole or in part, to others as it deems fit but explicitly provided that this does not
prejudice the Tenant’s rights in accordance with the terms and provisions of this contract.

Breach of the Contract by the Tenant

25.

	 	a.	 	If the Tenant breaches and/or does not fulfill a material term of the terms in this
contract and particularly if the Tenant does not pay, within 10 (ten) days from the date
determined for payment, an amount and/or payment whereby payment thereof applies to the
Tenant pursuant to the provisions of this contract, the Landlord, after giving the Tenant
written notice thereof of 14 (fourteen) days in order to remedy the breach may rescind this
contract, sue the Tenant to vacate the premises forthwith and return possession thereof to
the Landlord. The Landlord will be entitled to lease the premises to another/others and
this will not negate the Tenant’s liability to continue to

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 51 -

	 	 	 	pay rent at the rate stipulated in Section 21(a) above until the premises are leased to
another/others and/or to pay the difference in rent in the event that the premises are
leased to another/others in consideration of rent that is lower than the amount paid by the
Tenant.
	 
	 	 	 	The generality of the aforesaid does not prejudice any of the Landlord’s rights to claim and
obtain enforcement of the provisions of this contract and/or claim and obtain in any event
compensation for any type of damage the Landlord sustains as a result of a breach of the
contract by the Tenant from the Tenant.
	 
	 	b.	 	If the Tenant does not pay any of the payments applicable to it pursuant to the
provisions of this contract in a timely manner and abstains from paying it despite
receiving written notice thereof from the Landlord 14 (fourteen) days in advance the
Landlord will be entitled to pay any such amount instead of the Tenant and the Tenant must
reimburse any such payment to the Landlord immediately upon the Landlord’s first demand to
do so.
	 
	 	 	 	For the sake of removing any doubt it is hereby declared that the aforesaid in this
sub-section does not constitute an undertaking by the Landlord to pay such an amount instead
of and/or on behalf of the Tenant.
	 
	 	c.	 	Notwithstanding the above it is agreed between the parties that a delay of up to 10
(ten) days in making any payment will not constitute a material breach of this contract.
Subject to the above, a breach of Section 25(a) and/or 25(b) above will constitute a
material breach of this contract.

	26.	 	Without prejudicing and/or minimizing the Landlord’s rights pursuant to this contract and in
addition to any relief determined herein, it is hereby agreed that the occurrence of one or
more of the following instances will be considered a breach of a primary and material section
of this contract for which the Landlord may, at its absolute and exclusive discretion bring an
end to the leasing relationship under this contract and demand the immediate eviction of the
Tenant from the premises, and all this without prejudicing the Tenant’s duty to fulfill its
obligations under this contract and the Tenant undertakes to vacate the premises and return
the premises to the Landlord immediately upon delivery of the Landlord’s first demand to do so
to the Tenant. And all this whereupon the premises will be free and clear of any person and
object, in good condition and subject to the fulfillment of the rest of the terms and
provisions in this contract:-

	 	a.	 	If the Tenant does not make a rent payment in a timely manner and in full.
(However, a delay in making any payment that does not exceed 10 (ten) days from the
date determined for payment will not entitle the Landlord to the right to evict the
Tenant from the premises).
	 
	 	b.	 	If a receiver is appointed or a receiver and a (temporary or permanent) manager
is appointed for the Tenant’s business and/or property or part of them and the
appointment is not cancelled within 90 (ninety) days.

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 52 -

	 	c.	 	If a (temporary or permanent) liquidator is appointed for the Tenant and the
appointment is not cancelled within 90 (ninety) days.
	 
	 	d.	 	If the Tenant grants the right to use the premises or part of the premises to a
third party contrary to the terms and provisions of this contract.
	 
	 	e.	 	If the Tenant materially breaches or does not fulfill one or more of the terms
or provisions or sections of this contract and does not remedy the breach within 14
(fourteen) days from the date required to do so by written notice to be sent to the
Tenant by the Landlord.
	 
	 	f.	 	If the Tenant does not actually conduct its business from within the premises
pursuant to the “purpose of the lease” for a period exceeding 90 (ninety) days.

Bank Guarantee

27.

	 	a.	 	Upon signing this contract the Tenant hereby undertakes to deposit with the Landlord an
autonomic, unconditional and unreserved bank guarantee by a recognized bank that is duly
operable in Israel. This guarantee will not be negotiable and will be made payable only to
the Landlord.
	 
	 	 	 	This bank guarantee will be for a sum (principal) of 4,339,400.-NIS (Four Million, Three
Hundred And Thirty Nine Thousand And Four Hundred New Israeli Shekels)(equal to rent
(principal) for the first 15 (fifteen) months rent of the “lease period” in addition to VAT
prescribed by law). This bank guarantee will be linked to the increases that apply with
respect to the consumers prices index in accordance with the ratio of the increase of the
rate of the consumer prices index that is known upon actually realizing the guarantee as
opposed to the rate of the “basic index” as defined in Section 13(a) above (hereinafter –
“The Bank Guarantee”).
	 
	 	 	 	The “bank guarantee” will remain in effect for the duration of the entire “lease period” in
addition to 3 (three) additional calendar months.
	 
	 	 	 	If the Tenant exercises the “option” and the “lease period” is extended for the duration of
the “extended lease period” then by the date that 6 (six) complete months of the lease
remain until the end of the “lease period” the Tenant will issue the Landlord a letter
extending the validity of the “bank guarantee” for the entire duration of the “extended
lease period” in addition to 3 (three) additional calendar months.
	 
	 	 	 	All the expenses, without any exceptions, and including but not limited to the stamp duty
and bank charges that apply to and/or in connection with issuing and/or extending the
validity of the “bank guarantee” will apply and be paid in full by the Tenant.
	 
	 	 	 	It is hereby emphasized and agreed between the parties that the “bank guarantee” will be a
financial, autonomic, unconditional, unreserved bank guarantee that can be realized
immediately. It is hereby clarified and agreed that the Landlord will be

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 53 -

	 	 	 	entitled to demand immediate payment of the “bank guarantee”, in whole or in part, upon any
instance of a breach of this contract by the Tenant provided that the Landlord gives the
Tenant written notice of its intent to realize this “bank guarantee” at least 10 (ten) days
in advance.
	 
	 	b.	 	In addition to the “bank guarantee” referenced in Section 27(a) above the Tenant
undertakes to furnish the Landlord, upon signing this contract, an additional bank
guarantee, identical in format and linkage terms to the amount of the “bank guarantee” for
a sum (principal) of 926,240.- (Nine Hundred and Twenty Six Thousand and Two Hundred and
Forty New Israeli Shekels) equal to the rent for the first 3 (three) months of the “lease
period” in addition to VAT prescribed by law (hereinafter – “The Second Bank Guarantee”).
The “second bank guarantee” will remain in effect for a period of 12 (twelve) months to
start from the date of signing this contract and will serve to guarantee full payment of
the rent by the Tenant for the first quarter of the “lease period”. The bank charges and
stamp duty involved in issuing the “second bank guarantee” will apply and be paid by the
Landlord in accordance with the bank’s charging documents that will be issued by the Tenant
to the Landlord.
	 
	 	c.	 	It is hereby agreed that a breach of Section 27(a) and/or Section 27(b) above will be
considered a material breach of this contract.

Contract Guarantors

	28.	 	The Section was cancelled

The Landlord’s Additional Building Rights And The Tenant’s Additional Undertakings

	29.	 	The Tenant hereby declares, confirms and undertakes as follows:

	 	a.	 	That the Landlord told it that the premises constituted part of the “Hermon Building”
built on the “land” in the “industrial park” and which constitutes an additional phase of
the vast construction project that includes, inter alia, commercial buildings which the
Landlord is considering building in the future on the “land” in the “industrial park” and
including – to the extent permitted by law, also material improvements and/or extensions
and/or expanding the “Hermon Building” itself, including but not limited to splitting the
ground level of the “Hermon Building” into 2 floors and building an additional floor on the
roof of the “Hermon Building” (in total 7 floors in addition to the parking level).
	 
	 	 	 	The Landlord on its part hereby undertakes to enable the Tenant and its client’s convenient,
reasonable and safe access to the premises also during the foregoing construction if and
when carried out on the “land” in “the industrial park”.
	 
	 	 	 	The Tenant on its part hereby waives finally, completely, fully and absolutely any assertion
and/or demand and/or claim pertaining to and/or associated with expanding the “Hermon
Building” and/or the foregoing additional construction and also including an inconvenience
or nuisance or interference with the use of the “premises” pursuant to the “purpose of the
lease” that may be sustained by the Tenant as a result thereof,

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 54 -

	 	 	 	but this provided that the possibility of making reasonable use of the premises during the
entire “lease period” is not negated from the Tenant.
	 
	 	 	 	The Tenant will be estopped from suing the Landlord and all those acting on its behalf
and/or in the Landlord’s name due to the execution of such construction work subject to the
provisions of this section above.
	 
	 	b.	 	Subject to the fact that the Tenant’s rights are not prejudiced in accordance with the
provisions of this contract it is hereby agreed between the parties that the Landlord is
entitled and may, without obtaining the Tenant’s consent, make changes to the “building”
and/or adding construction to the “building” and/or on the “land” but this – provided that
such work will not unreasonably and continuously disrupt the Tenant from conducting its
business from within the premises pursuant to the “purpose of the lease”.
	 
	 	 	 	Additionally, it is hereby clarified and agreed that the roof of the “building” and/or the
roof of the premises and/or the parking area on level 7.36* of the “Hermon Building”
(hereinafter – “The Parking Level) as well as the areas of the yards and parking areas that
are not included within the boundaries of the “building” marked in yellow in Appendix
A and/or which are not included within the areas marked in orange in Appendix
B-1 to this contract, are not leased to the Tenant and do not constitute part of the
communal property for all the residents and/or tenants of the units in the “building” and
that the Landlord may and is entitled to use these areas at its absolute and exclusive
discretion, and also to adjoin them to certain areas and/or the certain premises located in
the “Hermon Building” and/or the “project”. Additionally it is hereby agreed that the
Landlord may and is entitled to build on the roof of the “building” and/or on the “parking
level” any additional construction that is permitted by law by the competent authorities.
Likewise, the Landlord is entitled and may place on the roof of the “building” and/or on the
“parking level” and/or on the roof of the “parking level” facilities and ancillary equipment
such as air-conditioning units, emergency generators, antennas, compressors, signs and
advertising billboards and such like and to make any other reasonable use of the roof of the
“building” and/or the “parking level” and all at the Landlord’s exclusive and absolute
discretion.
	 
	 	 	 	Additionally, it is hereby clarified and agreed that the Landlord may convert the use and/or
designation of the “parking level” to a floor that is designated for other permitted uses
and/or that are approved pursuant to the CBP but this – provided that the Landlord makes
available to the Tenant alternative parking spaces to those that the Tenant had use of on
the “parking level”.
	 
	 	 	 	The Tenant on its part hereby undertakes not to hinder and/or prevent the Landlord from
using the areas of the yards and the foregoing parking areas. Likewise the Tenant
undertakes not to hinder the Landlord from carrying out the foregoing construction and/or
use to be made by the Landlord of the roof the “building” unless carrying out such
construction work constitutes a continuous and unreasonable nuisance to the Tenant
conducting its business from within the premises in accordance with the “purpose of the
lease”.

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 55 -

	 	c.	 	That it is clear to it and all those acting on its behalf and/or in its name, without
any exceptions, that they are not entitled nor will be entitled to make any use of the
parts and/or areas of the “building” and/or areas of the “land” and/or the areas of the
“industrial park” that are not included in the “premises” and the areas adjoined thereto
pursuant to the definition thereof in this contract.
	 
	 	d.	 	That it will indemnify the Landlord, immediately upon receiving the Landlord’s first
demand to do so, for any payment and/or sanction that the Landlord was compelled to pay due
to the Tenant conducting its business from within the premises contrary to any law or
contrary to the regulations, orders or rules that are determined by a lawfully operational
entity or competent authority and/or for any use made of the premises contrary to the terms
of this contract provided that the Tenant is given an opportunity to defend itself from
such a demand insofar as this is dependent upon the Landlord.
	 
	 	e.	 	A breach of Section 29 above and/or a breach of any of its sub-sections will constitute
a material breach of this contract.

Pledging Rights

30.

	 	a.	 	The Tenant will not be entitled nor may it pledge by any manner its rights pursuant to
this contract, in whole and/or in part.
	 
	 	b.	 	It is hereby agreed that only the Landlord has the right to pledge and/or charge the
“building” in which the premises are located, in whole or in part, including but not
limited to the premises as well as charging and/or selling and/or transferring to others
its rights to the “land” and/or its rights under this contract including but not limited to
its right to receive rent from the Tenant, in whole or in part, by and manner and form as
the Landlord deems correct from time to time, whether in order to obtain financing or for
any other purpose, all at the Landlord’s exclusive and absolute discretion. The Tenant
hereby explicitly agrees to assume and to adhere to all the provisions of this contract
toward any other entity that acts on behalf of and/or instead of the Landlord – if this
happens.
	 
	 	 	 	However, it is hereby agreed that such pledging, charging, endorsing, selling or transfer
will not prejudice and/or derogate from the Tenant’s rights in accordance with this contract
nor will it add to its obligations hereunder.
	 
	 	c.	 	The Tenant will sign, at the Landlord’s first written demand to do so, any document or
confirmation that is duly required from time to time for one of the purposes listed in
Section 30(b) to this contract, insofar as necessary. The Tenant will not be entitled to
stipulate its consent by any condition. Without prejudicing the Tenant’s foregoing duty, it
is hereby agreed that despite the provisions of any law the Tenant hereby releases the
Landlord from the need to obtain additional or separate consent from the Tenant in order to
carryout the above. Likewise, the Tenant releases the Landlord of the need for the
Tenant’s signature in connection with any matter referenced in this section and/or in its
sub-sections and this section and this contract can be presented by

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 56 -

	 	 	 	the Landlord to any third parties and will constitute the Tenant’s irrevocable consent to
carryout such actions.
	 
	 	d.	 	A breach of any of the Tenant’s obligations specified in Section 30 above and/or in one
of its sub-sections will be considered a material breach of this contract.

Adjustment Work In The Premises For The Tenant’s Needs

	31.	 	Without derogating from the binding effect of any of the provisions specified in Sections 9
and 19 above and their sub-sections with respect to carrying out “The Tenant’s Work” and/or
with respect to carrying out the work and/or other changes to the premises, it is hereby
agreed between the parties that with respect to all the “work”, the “Tenant’s work”, changes,
renovations, improvements and additions, without any exceptions, (hereinafter – “The
Adjustment Work”) to be carried out by the Tenant in the premises, including but not limited
to the purpose of adjusting the premises to the Tenant’s needs, all of the following
cumulative conditions will apply:

	 	a.	 	The provisions of Section 9 and 19 above will apply mutatis mutandis pursuant
to the matter at hand also with respect to the performance of the “adjustment work”.
	 
	 	b.	 	The “adjustment work” and any changes that the Tenant makes in the premises
will be carried out in accordance with the provisions of all applicable laws and/or
that become applicable from time to time with respect thereto, and the Tenant hereby
undertakes to carryout the work at its complete and exclusive expense and to duly
obtain and at its exclusive and complete expense all necessary permits and licenses
and/or which become necessary from time to time in order to carryout the above.
	 
	 	c.	 	All the plans, technical specifications, diagrams and letters of quantity,
without any exceptions, relevant to carrying out the “adjustment work” will be
furnished by the Tenant to the Landlord at least 60 (sixty) days in advance and will
require the Landlord’s and/or the authorized engineer on its behalf’s advance and
written consent to carryout the work prior to the Tenant (and/or by anyone on behalf of
the Tenant) actually beginning the work. The engineer’s response on the Landlord’s
behalf will be given within 30 (thirty) days from the date the Tenant gives the
Landlord the plans to perform the “Tenant’s work” in the premises.
	 
	 	d.	 	The complete and exclusive liability to carryout all the “adjustment work” and
for any damage caused as a result of carrying out such work will be assumed solely by
the Tenant.
	 
	 	e.	 	It is hereby clarified and emphasized that all the rest of the terms in this
contract will also apply with respect to the performance of the “adjustment work” and
including but without derogating from the generality of the aforesaid in this contract,
also the Tenant’s duty to execute the necessary insurance policies pursuant to the
terms and provisions of this contract.

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 57 -

	 	f.	 	It is hereby agreed that a breach of any one of the sections in Section 31(a)
through to Section 31(e) above will be considered a material breach of this contract.

Notice Prior To Rescission Of The Contract

	32.	 	It is agreed between the parties that no party will be entitled to rescind this contract in
the event of a material breach by the other party to this contract unless written notice of 15
(fifteen) days is given to the breaching party, and the breaching party did not remedy the
breach attributed to it within these 15 (fifteen) days that will start from the day the notice
is sent.

Miscellaneous 

33.

	 	a.	 	Any amendment or addition to this contract will only be valid if executed in writing
and signed by both parties. Likewise no negotiations, agreement and settlement between the
parties will be valid unless executed in writing and signed by both parties together.
	 
	 	b.	 	Avoiding filing an eviction claim or a delay in filing such a claim or a delay in
initiating any other legal measures will not be considered a waiver of the breach or as
accepting the breach or as a waiver of any relief and remedies that the Landlord is
entitled to due to a breach and the Tenant will be estopped from raising any assertion of a
waiver of the breach.
	 
	 	c.	 	In this contract “the Landlord” or the “the Tenant” also means the plural form, and
masculine form also means feminine form – all pursuant to the matter at hand.
	 
	 	d.	 	The parties determine the courts in Tel-Aviv-Yaffo as the jurisdictional venue for all
matters pertaining to this contract or deriving from a breach hereof or in connection
hereto or the performance hereof as well as all claims and proceedings hereunder.
	 
	 	34.	 	It is hereby agreed by the parties that if the Tenant materially breaches the terms and
provisions of this contract and does not remedy the breach attributed to it by the Landlord
despite receiving written notice thereof 15 days in advance as specified in Section 32
above, the Landlord will be entitled to sue, by summary judgment proceedings, the immediate
eviction of the Tenant and all those acting on its behalf from the premises and this
without prejudicing any other rights granted to the Landlord in this instance both pursuant
to this contract and in accordance with the law.
	 
	 	 	 	It is hereby agreed that any financial claim based on a stipulated amount of money that is
filed by either of the parties in reliance upon this contract as well as any eviction claim
filed in reliance upon this contract, are suitable to be heard by “summary judgment”
proceedings within the meaning of this phrase in the Rules of Civil Procedure Regulations,
as applicable from time to time and also in accordance with this phrase in the Rules of
Civil Procedure Regulations 5744 – 1984 as amended.

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 58 -

	35.	 	It is hereby declared and agreed that the execution by the parties of this contract hereby
cancels any agreement and/or document and/or prior engagement between the parties, if such
existed, with respect to the premises and it is hereby emphasized that no agreement and/or
document and/or prior engagement as above will have a binding effect also for the purpose of
interpreting this contract and/or in order to impact the relationship between the parties with
respect to the premises from any aspect and that by the parties signing this contract opened a
new relationship between the parties and wholly and exhaustively settles all their mutual
rights and obligations with respect to leasing the premises to the Tenant by the Landlord.

36.

	 	a.	 	If one of the parties to this contract pays and/or will pay any payment whereby the
duty to pay it in accordance with this contract applies to the other party, the other party
will reimburse the paying party the full amount that was paid by such a paying party and
this immediately upon receiving a demand from the paying party and against receipts and/or
the showing of proper documents, and if this not being the case every such debt will accrue
interest in arrears at the maximum rate that is acceptable on the date determined for
payment at Bank Hapoalim Ltd. with respect to exceeding overdrafts in a current loan
account and all this with respect to the period beginning on the due date for payment
thereof and until actual and full payment to the party entitled to receive it pursuant to
the terms and provisions of this contract.
	 
	 	b.	 	Each payment that is determined in this contract that it is linked to changes
applicable to the consumers prices index and which is not paid by the due date for payment
thereof in accordance with the terms and provisions of this contract – will be paid in
addition to linkage differentials to the consumers prices index and in addition to interest
at the rate specified in Section 12(d) above.

Deferring The Date To Start The “Lease Period"

	37.	 	It is agreed between the parties that if due to reasons that are independent of the Landlord
and/or not in its control and also including circumstances of force majeure and/or a
malicious act and/or strike and/or go-slows and/or partial or general enlistment into the IDF
and/or natural disasters and/or any other event that the Landlord could not have foreseen in
advance or that are not within the Landlord’s control (hereinafter – “The Uncontrollable
Event”), the Landlord cannot deliver possession of the premises to the Tenant for the purpose
of actually using it by the Tenant in accordance with the “purpose of the lease” and in
accordance with the rest of the terms of this contract then the date to start the “lease
period” will be deferred for a period of time equal to the period required until the
“uncontrollable event” passes and also for the purpose of removing the foregoing delays and
obstacles originating in an “uncontrollable event” as noted above and all this without this
being considered a breach of this contract by the Landlord and without the Tenant having the
right to any claim against the Landlord due to and/or as a result thereof.
	 
	 	 	In addition to all the deferments of the date to start the “lease period” that may be caused
for reasons independent of the Landlord and/or not within its control and/or as

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 59 -

a result of an “uncontrollable event”, it is hereby explicitly agreed by the Tenant that any
delay, including but not limited to additional delays to those specified above, of up to 60
(sixty) days for any reason in delivery of possession of the premises to the Tenant and/or
of the date to start the “lease period” – will not be considered a breach of this contract
by the Landlord and will not grant the Tenant the right to receive any compensation from the
Landlord and/or a right to delay any payments it must pay to the Landlord pursuant to the
provisions of this contract and all appendices hereto and will also not grant the Tenant any
right to any other relief against the Landlord and/or against anyone acting on its behalf.

Rescission Of The Lease Contract Of The Premises In The “Tabor Building"

	38.	 	It is hereby agreed between the parties that the lease contract that was signed between the
parties on 28.12.2000 with respect to the premises that was leased to the Tenant by the
Landlord located in the “Tabor Building” in “Sha’ar Yokneam”, and which constitutes an area of
approximately 1,084 square meters on the first floor of the “Tabor Building” (hereinafter –
“The Premises in the Tabor Building”) is hereby rescinded by the parties but the binding
effect of the rescission will only apply commencing from 31.12.2001 onwards, and this without
any of the parties to this contract and/or anyone acting on their behalf and/or in their
place, without any exceptions, having any claims and/or assertions and/or demands against one
party or the other to this contract.
	 
	 	 	However it is hereby agreed between the parties that if a deferment of the date to commence
the “lease period” applies under the circumstances specified in Section 37 above and for
reasons that are independent of the Tenant then the Tenant will vacate the “premises in the
Tabor Building” only on the date upon which the premises subject-matter of this contract
located in the “Hermon Building” is ready for occupancy by the Tenant in accordance with the
terms of this contract (hereinafter – “The Date of Occupancy”), and in such an instance the
date for rescission of the foregoing lease contract that was signed between the parties on
28.12.2000 with respect to the “premises in the Tabor Building” will be deferred until the
“date of occupancy” of the new premises in the “Hermon Building” and the foregoing contract
dated 28.12.2000 will be null and void only after the “date of occupancy” onwards without
any party and/or anyone acting on their behalf and/or in their place having any claims
and/or demands and/or assertions against one party or the other to this contract.

Addresses

39.

	 	a.	 	The parties’ addresses for the purpose of this contract are as specified in the
preamble to this contract.
	 
	 	 	 	Any notice sent by one part to this contract to the other party to this contract to the
address listed above will be considered as if duly reaching its destination following 3
(three) business days from the date it was delivered to be mailed by registered mail in
Israel.

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 60 -

	 	b.	 	Each party undertakes to notify the other party of any change that applies from time to
time of its foregoing address.

IN WITNESS HEREOF THE PARTIES HERETO SET THEIR HAND:-

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd.
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245
	 	 
	 
	 	 
	The Tenant
	 	The Landlord

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 61 -

LIST OF APPENDICES

	 	 	 	 	 
	1.

	 	Appendix A -
	 	Plans of the Building.
	 
	 	 	 	 
	2.

	 	Appendix B -
	 	Plans of the Premises.
	 
	 	 	 	 
	3.

	 	Appendix B-1
	 	Drawing of the Parking Spaces.
	 
	 	 	 	 
	4.

	 	Appendix C -
	 	Technical Specification of the internal work in the
premises.
	 
	 	 	 	 
	5.

	 	Appendix D -
	 	A photocopy of the approval letter given to the
Tenant pursuant to the Encouragement of Capital
Investments Law.
	 
	 	 	 	 
	6.

	 	Appendix E -
	 	Draft of the “Confirmation of the Execution of Work
in Progress Insurance Policies”.
	 
	 	 	 	 
	7.

	 	Appendix F -
	 	Draft of the “confirmation of the execution of
insurance policies for the premises.
	 
	 	 	 	 
	8.

	 	Appendix G -
	 	Letter of undertaking from the Sub-Tenant.
	 
	 	 	 	 
	9.

	 	Appendix H -
	 	Draft of the agreement with the Management Company.
	 
	 	 	 	 
	10.

	 	Appendix I -
	 	Signpost Appendix.
	 
	 	 	 	 
	11.

	 	Appendix J -
	 	Confirmation from the Tenant’s attorney/accountant
with respect to the identity of the Tenant’s
shareholders.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 62 -

APPENDIX A

(Intentionally
Omitted)

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 73 -

APPENDIX B

(Intentionally
Omitted)

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 75 -

APPENDIX B-1

(Intentionally
Omitted)

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 76 -

APPENDIX C

To the Lease Contract

	 	 	 
	BY:

	 	Sha’ar Yokne’am, Registered Limited Partnership
	 

	 	(Hereinafter – “The Landlord”)
	 
	 	 
	AND BETWEEN:

	 	Mellanox Technologies Ltd.
	 

	 	(Hereinafter – “The Tenant”)

TECHNICAL SPECIFICATION OF THE INTERNAL WORK IN THE PREMISES

	1.	 	Walls

	 	1.1	 	External walls – precast in accordance with existing walls.
	 
	 	1.2	 	Walls between tenants – 20cm blocks or 20cm Itong blocks, or drywall
partitions.
	 
	 	1.3	 	Internal plaster on the walls, or covering with sheets of drywall pursuant to
on the spot decisions.
	 
	 	1.4	 	Internal drywall wall partitions – 7cm with rock wool.
	 
	 	1.5	 	Internal wall trimmings – supercryl type paint.

	2.	 	Flooring

	 	2.1	 	Concrete floors (smoothed by helicopter).
	 
	 	2.2	 	Fireproof carpet, standard 2, cost 50NIS per square meter (synthetic acrylic),
Magic pattern.
	 
	 	2.3	 	Ceramic flooring in the hallways pursuant to internal division, Negev ceramics
30 x 30cm, Jerusalem pattern.
	 
	 	2.4	 	P.V.C. antistatic in the open space and laboratory, type 10, cost 70NIS per
square meter.

	3.	 	Acoustic Ceilings
	 
	 	 	Lowered acoustic ceiling from mineral sheets 60 x 60cm or 120 x 60cm in size, with trimming
type “L”, Orion pattern.

	4.	 	Electricity and Communications

	 	4.1	 	The following will be installed at each workstation:
	 
	 	4.1.1	 	2 electrical points.
	 
	 	4.1.2	 	Telephone connection + 6 ply wiring (Tenant will order the telephone lines).
	 
	 	4.1.3	 	Power point for U.P.S at each workstation.
	 
	 	4.1.4	 	Pipes to connect the computers (only pipes + pull wires).
	 
	 	4.1.5	 	Light switch point in each room.
	 
	 	4.1.6	 	The electrical work will be carried out in accordance with the technical
specification to be prepared by the electrical consultant, Dan Sharon (the Landlord’s
consultant).

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 77 -

	 	4.2	 	Lighting combined with decorative ceiling to a lighting standard of:
	 
	 	 	 	The work rooms 600 lx made from quadrangular parabola elements, “Pazor” model by
“Ga’ash” lighting of 4 x 18 w.
Corridors and service areas – 300 lx using PL type elements.
Bathrooms – 250 lx using PL type elements.

	5.	 	Air-Conditioning

	 	5.1	 	A central cold water system (through cellars) will be installed including
vertical conduction plumbing in shafts with water entrances/exits per floor intended
for hookup. At the end an element will be installed for disconnection.
	 
	 	5.2	 	The planning of the system from the hookup point will be done by the
air-conditioning engineer, Yitzchak Rosenblatt (the Landlord’s consultant).

	6.	 	Aluminum Windows
	 
	 	 	Aluminum windows, pursuant to the plans of the building.

	7.	 	Doors

	 	7.1	 	Internal doors will be: tin doorposts to be painted, door panel itself from
wood, filled with 100% flex board covered in veneer “Aroline”, oak or other color and
border made from oak wood or other as the sample in the Carmiel carpenters with “Alum”
or “Yardeni” affixtures.
	 
	 	7.2	 	Main entrance door will be a glazed aluminum door.

	8.	 	Sprinkler System
	 
	 	 	An automatic, standard, combined with acoustic ceiling sprinkler system will be installed
within the area of the premises.

	9.	 	Water and sewage system

	 	9.1	 	The Landlord will supply the hookup to the water and sewage systems adjoining
the constructive columns.
	 
	 	9.2	 	A kitchenette upon which a marble surface will be placed with a length of 1.5
meters + clay sink 60 x 40cm for cold water and ceramic covering 20 x 20cm to a height
of 3 rows above the marble and kitchen cabinets underneath the marble surface.
	 
	 	9.3	 	The specification does not include toilets within the premises. There are both
men and women’s toilets in each one of the shafts. Toilets can be installed in the
premises for an additional fee.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 78 -

	10.	 	Placing Facilities On The Roof

	 	10.1	 	The Landlord will allocate for the Tenant’s use areas on the roof upon which to
place the air-conditioning system.
	 
	 	10.2	 	The Landlord will make openings available to the Tenant for the purpose of
transferring the necessary pipes in order to install and hookup facilities adjoining
the columns.
	 
	 	 	 	Systems will go through these openings and adjacent to the columns to the other
floors intended for the tenants.

	11.	 	Trimmings

	 	11.1	 	All the trimming work will be carried out without fixed or mobile furniture.
	 
	 	11.2	 	Any modification of the provisions in this technical specification will be at
the Tenant’s expense and responsibility.
	 
	 	11.3	 	Any modification of the plans of the internal layout after approval by the
Landlord will be at the Tenant’s expense and responsibility.

	12.	 	Internal Layout Plans
	 
	 	 	The internal layout plans will be prepared by the Landlord’s architect, Mr. Micha Ratner.

	13.	 	General
	 
	 	 	All the foregoing internal work is based on the fact that at least 50% (fifty percent) of
the total area of the premises will be delivered by the Landlord to the Tenant to an “open
space” standard.

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd.
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 
	 
	 	 
	Mellanox Technologies Ltd.
	 	Sha’ar Yokneam
	 
	 	Registered Limited Partnership

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 79 -

Ministry of Industry and Trade

Investment Center

Jerusalem, 15.11.99

No.: 99-0359-0-21000-12

Partnership no.: 512763285

APPENDIX – D

Mellanox Technologies Ltd.

Attn: Eyal Waldman – CEO

P.O.Box 86

Yokneam 20692

Dear Sir,

Letter Of Approval Of An Alternative Route Plan

	 	1.	 	The Administration of the Investments Center is considering your application dated
20.06.99 with respect to approving an investments plan pursuant to the Encouragement of
Capital Investments Law, 5719-1959 (hereinafter The Law) to establish a factory in Yokneam
Elite (Development Region A.).
	 
	 	2.	 	The Administration decided (Decision No. 1431(b)13 dated 10.10.99) to approve the
investment plan in permanent property pursuant to the law for a sum of                     ($)
to establish a factory to manufacture                    in
computerized systems in Yokneam Elite, subject to the provisions in this letter of approval
and the attached appendix constituting an integral part hereof.
	 
	 	3.	 	In accordance with the Ministers Committee for Economic Affairs EC/66B dated 3.4.85 the
approved plan sections will be linked to the following:

	 	-	 	Investments in buildings – to the construction prices index

(Basic Index: Index 09/99 8846.2 points).
	 
	 	-	 	Investments in local equipment and local costs – consumers prices index

(Basic index: Index 09/99 720.8425 points).
	 
	 	-	 	Investments in imported equipment – to the US Dollar Rate

(Basic Rate: 4NIS = $1).
	 
	 	 	 	The linkage will not apply to investments that were made between the date of filing
the application for approval of the plan and until the basic month above.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 80 -

	 	4.	 	Fulfillment of the following terms and provisions of the law will constitute a
prerequisite and necessary term to obtaining the benefits that this letter of approval
grants:

	 	-	 	At least 30% of the investments in permanent property will be financed
by paid share capital (regular) whereby the allotment and payment of the capital
will be carried out concurrent with the ongoing investments within the approved
plan.
	 
	 	-	 	You will submit all the required reports as specified in Income Tax
Circular No. 92/32 to the Investments Center and the Tax Assessor and you will
adhere to all the provisions in the foregoing circular pertaining to the matter at
hand.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 81 -

APPENDIX E

Confirmation Of Executing Work In Progress Insurance Policies

Date: ___ May, 2001

Sha’ar Yokneam Registered Limited Partnership

(Registered Partnership No. 55-001466-6)

Dear Sir,

Re: Confirmation Of The Execution Of Insurance Policies While Carrying Out The Work In
Progress, Contractor Work, Third Party Work And Employers Liability.

We hereby confirm to you that we executed the work in progress policy as specified below and as
referenced in Section 16(b) of the contract between you and Mellanox Technologies Ltd.
(PC/51-267328-5) (hereinafter – “the Tenant”) for the work in the premises which the Tenant leased
from you on the land known as various parcels and sub-parcels in the bloc of land known as Bloc
11098 (hereinafter – “The Land”), and this – during the period from 1.1.2002 and through until
___at midnight.

Chapter 1 – Contractor Work Insurance Policy

Contractor work insurance policy insuring the value of all the work being carried out by the Tenant
and also/or on its behalf and also/or for the premises including but not limited to equipment,
systems and machinery that will serve the Tenant’s business as well as repairs, renovations,
improvements, changes and additions to be made in the premises. This chapter includes a clause
pertaining to the waiver of the right to subrogation toward the Landlord and/or toward the
“Management Company” and/or toward all the residents in the built buildings and/or to be built on
the “land” as all of these are defined in the foregoing agreement, (provided that their insurance
policies include a similar waiver clause toward the Tenant) for any damage caused by them to the
exception of damage that was caused maliciously. The chapter includes explicit extended coverage
pertaining to property that is being worked on and also/or adjacent property within the limits of
liability not to fall short of a sum in NIS equal to a sum of $1,000,000.- (One Million US
Dollars).

Chapter 2- Third Party

Liability insurance policy toward third parties within the limits of liability not to fall short of
a sum of $1,000,000 (One Million US Dollars). This chapter includes a cross-liability clause
pursuant to which the policy will be considered as if executed separately for each one of the
insured individuals within the meaning of Section 11(c) of the foregoing contract. It was further
explicitly noted and for the sake of removing any doubt that the Landlord’s property will be
considered as third party property for the purpose of this chapter.

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 82 -

Chapter 3 – Employers Liability

Employers’ liability insurance policy for the liability toward all those employed to carryout out
the work without any limitation pertaining to the Insurer’s liability. This policy will not
include any limitation with respect to contractors, sub-contractors and their employees as well as
with respect to the employment of youth.

The amount of insurance under no circumstances will fall short of a sum in NIS equal to a sum of
$5,000,000.- (Five Million US Dollars).

We hereby confirm that the foregoing policies (Chapters 1, 2 and 3 above) take priority over any
other policy executed by you (if such policies are executed) and that the policy will not be
minimized or cancelled without written notice being sent to you at least 60 (sixty) days in
advance.

Sincerely,

(Insurer’s Signature)                                        

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 83 -

APPENDIX F

Confirmation Of The Execution Of Insurance Policies For The Premises

Date: ___ May, 2001

Sha’ar Yokneam Registered Limited Partnership

(Registered Partnership No. 55-001466-6)

(Hereinafter – “The Landlord”)

Dear Sir,

Re: Confirmation Of The Execution Of Insurance Policies Against Fire, Third Party Work And Employers Liability.

We hereby confirm that we executed the policies as referenced in Section 16(b) of the agreement
between you and Mellanox Technologies Ltd. (PC/51-267328-5) (hereinafter – “the Tenant”) for the
premises which the Tenant leased from you on the land known as various parcels and sub-parcels in
the bloc of land known as Bloc 11098 (hereinafter – “The Land”), and this – during the period from
1.1.2002 and through until ___at midnight.

	 	 	 	 	 
	a.
	 	 	 	 
	1.	 	Extended Fire Policy
	 
	 	 	 	 
	 

	 	Insured Property:
	 	Building, premises, contents of the premises, equipment serving the
premises it owns and also/or within the Tenant’s liability that are located in the
premises and also/or outside the premises within the boundaries of the “land”, as
defined in the foregoing agreement, as well as any repairs, changes, improvements,
renovations and additions to the premises that are done and/or will be done by the
Tenant and/or on its behalf, as well as furniture, equipment, facilities and inventory
of any type and kind.
	 
	 	 	 	 
	 

	 	Insurance Amount:
	 	$                                        
	 
	 	 	 	 
	 

	 	Insured Risks:
	 	Acceptable risks in extended fire insurance policies and without derogating
from the generality of the above, including but not limited to fire, lightening,
explosions, earthquake, riots, strikes, malicious damage, storm, blizzard, aircrafts,
supersonic explosions, water flood damage and damages from other liquids and gases of
any type and kind, collision damages, glass breakages and burglary.

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 84 -

	 	 	 	 	 
	 

	 	Special Clauses:
	 	The policy includes an explicit clause pursuant to which the Insurer waives
any right to subrogation toward the Landlord and/or toward the “Management Company”
and/or toward the other tenants in the built buildings and/or to be built on the “land”
as all these are defined in the foregoing agreement, (provided that their policies also
include a similar clause toward the Tenant) and also/or toward anyone acting on the
Landlord’s behalf and/or on behalf of the “Management Company” to the exception of
damage caused maliciously.
	 
	 	 	 	 
	2.	 	Loss of Income Policy
	 
	 	 	 	 
	 	 	The Tenant’s loss of income policy (to the exception of rent, parking fees, advertising fees
and management fees) for their full value due to damage caused to the premises and/or its
contents as a result of the insured risks in Section A above, for an indemnification period
not to fall short of 12 months.
	 
	 	 	 	 
	 

	 	Special Clauses:
	 	The policy includes an explicit clause pursuant to which the Insurer waives
any right to subrogation toward the Landlord, “Management Company” as well as toward
the other tenants in the built buildings and/or to be built on the “land” as all these
are defined in the foregoing agreement, (provided that their policies also include a
similar clause toward the Tenant) and also/or toward anyone acting on the Landlord’s
behalf and/or on behalf of the “Management Company” to the exception of damage caused
maliciously.
	 
	 	 	 	 
	b.	 	Third Party Liability Insurance Policy
	 
	 	 	 	 
	 

	 	Limits of Liability:
	 	$1,000,000.- (One Million US Dollars) per incident.
	 
	 	 	 	 
	 

	 	Cancellation of Limitations:
	 	The policy does not include any limitation pertaining to fire,
explosions, shock, elevation machines, loading and unloading, defective sanitary
facilities, poisoning, anything harmful in food or beverages as well as claims by the
National Insurance Institute, and likewise for and toward sub-contractors.
	 
	 	 	 	 
	 

	 	Special Clauses:
	 	The policy is extended to indemnify the Landlord for its direct and/or
vicarious liability for any act or omission by the Tenant as well as its liability as
owner of the premises and this – subject to the clause pursuant to which the policy
will be considered as if executed separately for each of the insured individuals.

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 85 -

	 	 	 	 	 
	c.	 	Employers Liability Insurance
	 
	 	 	 	 
	 

	 	Limits of Liability:
	 	$5,000,000.- (Five Million US Dollars).
	 
	 	 	 	 
	 

	 	Cancellation of Limitations:
	 	The policy is not subject to any limitations pertaining to
contractors, sub-contractors and their employees, bates and toxins as well as the
employment of youth.

We hereby confirm that the foregoing policies take priority over any other policy executed by you
(if such policies are executed) and that the policy will not be minimized or cancelled without
written notice being sent to you at least 60 (sixty) days in advance.

Sincerely,

(Insurer’s Signature)                                        

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 86 -

APPENDIX G

Sub-Tenant’s Letter of Undertaking

Date: ___ May, 2001

Sha’ar Yokneam, Registered Limited Partnership

(Partnership No. 55-001466-6)

“Sha’ar Hacarmel” Complex

5 Nachum Chat Street,

Tirat Hacarmel

Dear Sir,

     Re: Sub-Lease Of The Premises In The “Hermon Building”, Sha’ar Yokneam, Parcels 48, 49 As Well
As Lot 101 Constituting Part Of Parcels 50, 79 And 80 (Partnership In Land) In Bloc 11098
(Hereinafter – “The Premises”)

	 	1.	 	We are interested in leasing, by an unprotected lease pursuant to the Tenants
Protection Law (Consolidated Version) 5732-1972 from Mellanox Technologies Ltd.
(PC/51-276328-5) (hereinafter – “The Sub-Landlord”) part of the premises which the
“Sub-Landlord”) leased from you under the terms set forth in the agreement dated ___
that was signed between you and the “Sub-Landlord” and a true copy of which is attached to
this letter of ours (hereinafter – “The Sub-Lease Agreement”).
	 
	 	2.	 	We hereby undertake toward you to fulfill, insofar as the area of the premises that we
leased from the “Sub-Landlord” is concerned, all the terms and provisions of the lease
agreement that was signed on ___between yourselves and the “Sub-Landlord” (hereinafter –
“The Lease Contract”).
	 
	 	3.	 	We hereby agree and undertake toward you that any eviction grounds you may have
pursuant to the “lease contract” against the “Sub-Landlord” will also constitute grounds
for eviction against us and that we will vacate the premises that we leased from the
“Sub-Landlord” no later than by the date upon which the “Sub-Landlord” vacates, for any
reason, the premises subject-matter of the “lease contract”.
	 
	 	4.	 	We hereby declare that we will not be acquiring any independent rights in the premises
and that we will be entitled to temporarily and with limitations make use of the premises
only if all the terms and provisions, without any exceptions, specified in the “lease
contract” and the “sub-lease agreement” is fulfilled.

Signature:                                                             

Sub-Tenant’s Name:                                                   

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 87 -

Confirmation

I hereby confirm that the foregoing document was duly signed by the authorized signatories,
                     (I.D.                     ) and                      (I.D.                   
  ) who are authorized
to sign on behalf of the foregoing Sub-Tenant and bind it.

	 	 	 	 	 
	Date:                                        
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Adv.	 	 

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 88 -

APPENDIX H

MANAGEMENT CONTRACT

Executed and signed in Yokne’am on this 9th day of the month of May 2001

BY:

	 	 	 
	 

	 	Sha’ar Yokne’am, Registered Limited Partnership
	 

	 	Partnership No. 55-001466-6
	 

	 	Through its managers, Mr. Ze’ev Sivan (I.D. 000685974) and Yitzchak Reich
(I.D. 127198) who are authorized to sign and bind the partnership whose
address for the purpose of this contract is the “Sha’ar Hacarmel” Complex,
No. 5 Nachum Chat Street, Tirat Carmel And which will be referred to below for abbreviation purposes as “The
Landlord”
	 
	 	 
	 

	 	On the One Part
	 
	 	 
	 

	 	AND BETWEEN:
	 
	 	 
	 

	 	Mellanox Technologies Ltd.
	 

	 	Registered Company No. 51-276328-5
	 

	 	Through Mr. Eyal Waldman (I.D. 56429095) who is authorized to sign and bind
the Company whose address for the purpose of this contract is “Tabor”
Building, Sha’ar Yokneam, Yokneam, which will be referred to below for
abbreviation purposes as “The Tenant”)
	 
	 	 
	 

	 	On the Second Part
	 
	 	 
	WHEREAS:

	 	The Tenant leased from the Landlord (who will also be
referred to below as “The Partnership” and/or “The Owners”
and/or “The Management Company”) by an unprotected lease
pursuant to the Tenants Protection Law (Consolidated Version)
5732-1972 the unit as defined below that is located in the
“building” and the “project” defined below;
	 
	 	 
	AND WHEREAS:

	 	The nature and standard of the “project” and the “building”
compel centralized management and performance of the services
by one professional body exclusively, permanently and
continuously;
	 
	 	 
	AND WHEREAS:

	 	The Management Company agreed to assume this role;
	AND WHEREAS:

	 	The occupier is interested and agrees to the fact that the
management and exclusive performance of the services will be
rendered by the Management Company;

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 89 -

	 	 	 
	AND WHEREAS:

	 	This contract constitutes the “management contract”
referenced as Appendix H of the lease contract that was
signed on the 9th of the month of May in the year
2001 between the “owners” and the “Tenant” (hereinafter –
“The Lease Contract”);
	 
	 	 
	AND WHEREAS:

	 	The Management Company will handle the management, operation
and maintenance of the “building”;
	 
	 	 
	AND WHEREAS:

	 	The parties are interested in arranging their relationship;

Therefore It Is Declared, Stipulated And Agreed Between The Parties As Follows:

	1.	 	Preamble and Interpretation

	 	1.1	 	The preamble to this contract and appendices attached hereto constitute an
integral part hereof.
	 
	 	1.2	 	The captions of the section in this contract are intended solely for
convenience purposes and will not bear any weight or significance upon construing this
contract.
	 
	 	1.3	 	This contract encompasses and exhausts all what was agreed between the parties
with respect to the issues referenced in this contract and there is no nor will be any
relevance nor will any document, negotiations, declarations, representations,
undertakings or agreements that were made, if made, between the parties in writing
and/or orally, explicitly and/or impliedly and/or by any other form, prior to signing
this contract be used and/or relied upon.
	 
	 	1.4	 	No amendment to this contract or any of its provisions will be valid unless
executed in writing and signed by the parties.
	 
	 	1.5	 	Agreement by any of the parties in a specific instance to deviate from the
term/s and/or provision/s of this contract will not constitute a precedent and/or
agreement to deviate from the same in other instances and one will not learn or deduce
from that instance upon other instances.
	 
	 	1.6	 	If any of the parties waived and/or did not exercise, in a specific instance, a
right under this contract and/or prescribed by law, this will not be seen nor will it
imply that such a right has been waived also in other instances including but not
limited to in relation to a continuous breach.
	 
	 	1.7	 	Conduct by one of the parties to this contract will not be considered as a
waiver and/or agreement to a change of any of the terms and/or provisions in this
contract and/or as a waiver of any of its rights in accordance with this contract
and/or prescribed by law unless the waiver and/or consent was executed in writing and
signed by both parties together.

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 90 -

	 	1.8	 	The phrases set forth below in this contract and appendices hereto will assume
the meaning appearing alongside each one of them unless the context of the matter
compels otherwise:

	 	 	 	 	 
	 

	 	“This Contract”
	 	This contract and all appendices
attached hereto.
	 
	 	 	 	 
	 

	 	“The Land”
	 	Land with an area of approximately
62,000 square meters in bloc 11098
including the parcels of land known as
numbers 33, 34, 36, 37, 40, 41, 42,
43, 44, 45, 46, 47, 48, 49 and 50 (all
in their entirety) as well as parts
(areas) of the parcels of land known
as numbers 21, 22, 23, 24, 30, 31, 32,
35, 38, 39, 79, 80 and 82.
	 
	 	 	 	 
	 

	 	“The Project”
	 	An Industrial Park that the Landlord
is establishing on the “land” and
which includes existing buildings as
well as a new industrial and high-tech
park to be established in accordance
with the specified plans and/or
changes of the CBP to be approved with
respect to the “land” and which will
include, inter alia, high-tech areas,
commercial areas, offices, parking
lots, basements, warehouses etc.

	 
	 	 	 	 
	 

	 	“The Building” or “The Structure”
or “The Hermon Building”
	 	“Hermon Building” built on parcels 48,
49 as well as lot 101 constituting part of parcels 50, 79 and 80
(Partnership in land) in Bloc 11098.

	 
	 	 	 	 
	 

	 	The Lot”
	 	The lot located around the “Hermon
Building” and marked in blue on the
drawing attached to this management
contract (hereinafter – “The
Drawing”).
	 
	 	 	 	 
	 

	 	“The Unit” and/or “The Premises”
	 	The unit in the “Hermon Building”
marked in red on the drawing,
including but not limited to areas
adjoined thereto, whether exclusively
or jointly with others and marked in
green on the “drawing” constituting
the premises subject-matter of the
“lease contract” and defined as the
“premises” pursuant to the “lease
contract”.
	 
	 	 	 	 
	 

	 	“The Appendix”
	 	Appendix A attached to this contract.
	 
	 	 	 	 
	 

	 	“The Management Company” and/or
“The Owners” and/or “The
Landlord” and/or “The Partnership”.
	 	Meaning: Sha’ar Yokneam, Registered
Limited Partnership (Registered
Partnership No. 55-001466-6) and/or
any company that the Landlord assigns
its rights and obligations under this
contract to in accordance with the

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 91 -

	 	 	 	 	 
	 

	 	 	 	provisions of Section 14 below.
	 
	 	 	 	 
	 

	 	“The Parking Lot”
	 	The parking lot in the “building”
including the mezzanine level marked
in the “drawing” in yellow.
	 
	 	 	 	 
	 

	 	“The Lease Contract”
	 	The lease contract that was signed
between the Landlord and the Tenant
upon signing this contract and
attached hereto as Appendix B to this
contract.
	 
	 	 	 	 
	 

	 	“The Unit” and/or “Units”
	 	A unit and/or units in the “building”
occupied and/or used by a given tenant
including but not limited to the
parking lot.
	 
	 	 	 	 
	 

	 	“Resident”
	 	The owners and/or tenant of a unit.
	 
	 	 	 	 
	 

	 	“Communal Areas”
	 	The communal property included in the
“land” and/or the “project” as
specified in the “lease contract”
and/or appendices thereto, including
but not limited to roads, pavements,
access ways, landscaping, garden areas
and various facilities designated for
the use and/or benefit of most of the
tenants and/or unit owners in the
“project”, all the facilities and
areas located in the “building” and
which are not included in the “units”
of the “building”, all the areas of
the “lot”, including but not limited
to the open spaces between the
“building” and other buildings that
are built and/or to be built on the
“land” including but not limited to
facilities that are placed thereon
and/or those which the Management
Company will handle and which are not
adjoined to a specific unit in the
“building”.
	 
	 	 	 	 
	 

	 	“The Communal Facilities”
	 	The systems and/or facilities in the
building and/or the communal areas to
the exception of facilities and
equipment located in the units and
which serve and service only the
resident of that unit, including and
such as: elevators, central
air-conditioning systems, electrical
boards and systems, plumbing pipes and
systems, lighting, water, drainage,
sewage, safety systems and equipment,
fire detection and extinguishing
systems, waste disposal devices,
computerized and controlled systems,
generator(s), signposts devices and
traffic signs and such like
facilities,

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 92 -

	 	 	 	 	 
	 

	 	 	 	designated equipment and
systems and/or which the “Management
Company” designates them from time to
time for communal use by all the unit
occupiers and/or users of the
“building” and/or “project” and/or
“land” or the majority of them,
directly or indirectly, and all
whether they are within the “building”
complex or not.
	 
	 	 	 	 
	 

	 	“The Services”
	 	Management, operation, repair,
maintenance, renewing equipment,
renewal and replacement of equipment
funds and “communal facilities”,
cleaning, inspections, repairs,
lighting, signposts, doorman,
gardening, insuring the communal areas
and the communal facilities as defined
above and the facilities and areas of
the land and/or project serving and/or
servicing all the residents of the
building.
	 
	 	 	 	 
	 

	 	 	 	Taking into consideration the special
nature of the “project” and of the
“building” and the complexity of them
and with the purpose of preserving
proper standards for the “building”
and the services rendered to the users
of the “building”, the Management
Company will be entitled to include in
the “services” also special services
that are not customary in a regular
building but this – at the “Management
Company’s exclusive and absolute
discretion.
	 
	 	 	 	 
	 

	 	 	 	For the sake of preventing any doubts
it is hereby emphasized, clarified and
agreed that the “services” will also
include the following:

	 	a.	 	Management of the lobby of the
building.
	 
	 	b.	 	Executing the policies specified in
this contract and in Section 16(a) of
the lease contract.
	 
	 	c.	 	Payment of rates and other taxes
for the communal areas and/or communal
facilities.
	 
	 	d.	 	Payment for the supply of electricity and/or water to the public
areas of the building.
	 
	 	e.	 	Signposts costs.
	 
	 	f.	 	Purchasing materials, equipment and
facilities in connection with
rendering the services.

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 93 -

	 	g.	 	Other and/or special services that
are required in order to preserve the
high standard of the building taking
into consideration the special nature
and complexity thereof.

	 	 	 	 	 
	 

	 	“Representative Rate”
	 	The US Dollar representative exchange
rate in NIS that is published by the
Bank of Israel prior to any relevant
payment under this contract. In the
event that the Bank of Israel no
longer continues publishing this
representative rate – this rate will
be calculated pursuant to the average
rate in NIS with respect to the sale
and purchase rates (transfers and
checks) in US Dollar by Bank Leumi
Le’Israel Ltd., last known on the
relevant date for payment and all
pursuant to the matter at hand.
	 
	 	 	 	 
	 

	 	“The Interest”
	 	The maximum rate of interest that is
acceptable on the relevant date by
Bank Hapoalim Ltd. for unapproved
overdrafts (including “exceptional
interest”) in addition to 5% per
annum.

	 	1.9	 	Phrases and concepts that are not specified in Section 1.8 above and which are
referenced in this contract and the lease contract attached as Appendix B to
this contract will have the same meaning in this contract as given to them in the
“lease contract” unless explicitly determined otherwise in the provisions of this
contract.

	2.	 	Management, Operation and Maintenance of the Building

	 	2.1	 	It is hereby agreed that the Management Company alone will handle the
management, operation and maintenance of the building to the exception of the units
constituting the premises areas and/or areas that will exclusively serve business units
in the “building” as well as the management and maintenance of the “communal areas” and
of the “communal facilities’ and within this framework it will perform and execute the
services.
	 
	 	2.2	 	The Management Company will be entitled to render the services, in whole or in
part, itself and/or through contractors it hires for the purpose of rendering the
services, in whole or in part.
	 
	 	2.3	 	Upon performing the services, the Management Company will be entitled to employ
employees, consultants, suppliers and various service providers, to engage in service
and maintenance agreements for the communal facilities etc., as well as to purchase
facilities, including but not limited to those which upgrade the building and/or its
systems and/or the maintenance thereof,

	 	 	 
	( — )
	 	( — )
	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

   - 94 -

	 	 	 	equipment, tools, etc., and these expenses will
be included in the Management Company’s expenses.
	 
	 	2.4	 	The Tenant hereby declares and confirms that it is aware and it agrees that it
is possible that from time to time, whether planned or not, hitches and/or interference
and/or disturbances and/or breakdowns in the operation of the “communal facilities” may
occur and/or the use of the “communal facilities”
and/or “the communal areas” including the electricity and water systems as a result
of hitches and/or malfunctions thereof and/or as a result of performing ongoing
maintenance work and/or carrying out repairs.
	 
	 	 	 	The Management Company will do its best to minimize the disturbances and/or
breakdowns above and insofar as possible – will notify the Tenant in advance with
respect to carrying out planned work.
	 
	 	2.5	 	It is hereby clarified and agreed that the Management Company will determine
from time to time and will be entitled to change from time to time, expand and/or
reduce the scope of the “services”, standard thereof, type and nature as well as the
manner or way they are supplied.
	 
	 	2.6	 	It is hereby clarified and agreed that servicing and repairing the facilities
installed in the premises and affixed to the “communal facilities” such as
air-conditioning units, smoke detectors, sprinklers and such like will be carried out
by the Management Company alone in consideration of a special fee and this – in
addition to the management fees which the Tenant is obligated to pay to the “Management
Company” in accordance with the provisions in this contract and all appendices hereto.
The special payment will be calculated on the basis of 15% + cost (hereinafter – “The
Special Payment”).
	 
	 	 	 	The Tenant will pay the Management Company in consideration of the foregoing service
pursuant to the invoice issued by the Management Company, on the date specified in
the invoice including VAT included in the foregoing invoice.
	 
	 	2.7	 	The Tenant will not carryout, itself and/or through another/others any action
or treatment in the building and/or the “communal areas’ and/or public areas and/or
“communal facilities” nor will it carryout any service and repairs as noted in Section
2.6 above unless by professional entities to be approved in advance and in writing by
the Management Company.
	 
	 	2.8	 	The Tenant will notify the Management Company of any disrepair that requires
action to be taken by the Management Company immediately upon discovering the disrepair
and/or immediately upon him becoming aware of information pertaining to such disrepair.
The Management Company will act to repair the disrepair as soon as possible.
	 
	 	2.9	 	The Management Company will be entitled to decide to manage the offices and the
commercial part and/or the parking lot in the “building” separately and

	 	 	 
	( — )
	 	( — )

	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 95 -

	 	 	 	to determine
separate management fees for each one of the foregoing parts on the basis of the
Management Company’s expenses for that part.
	 
	 	2.10	 	The Management Company will be entitled to decide to split the expenses
involved in maintaining and/or managing the “communal areas” and/or the “communal
facilities” and/or the commercial areas and/or the office areas
and/or the parking lot areas in the “land” and/or the “project” on the basis of the
Management Company’s expenses in relation to the relevant area.

	3.	 	Procedures and Rules of Conduct
	 
	 	 	The Management Company will determine, from time to time procedures, practices, directives
and rules of conduct and/or use of the building and/or “communal areas” and/or “communal
facilities” and the Tenant undertakes to adhere to them and to ensure that its employees
and/or other users of the “premises” and/or guests in the “premises” also conduct themselves
in accordance thereto.
	 
	 	 	A breach or non-fulfillment of the procedures, practices, directives and rules of conduct as
noted above that continues after notice thereof is sent by the Management Company will
constitute and be considered a material breach of this contract by the Tenant.
	 
	 	 	Without derogating from the generality of the above it is hereby agreed between the parties
as follows:

	 	3.1	 	The Management Company will be entitled to set rules of conduct that are
binding upon all the users of the units in the “building” and/or the “project” and/or
in any built structure and/or to be built on the “land” and this – in order to preserve
the standard of the “project” and to prevent disturbances and nuisances to occupiers
and users of the units in the “building” or to some of them and/or to the rest of the
units included and/or to be included in any built structure and/or to be built on the
“land” and/or in the “project”.
	 
	 	3.2	 	The Management Company will be entitled to designate parking spaces,
passageways, places to install television cables, antennas, electricity boards and
connections, gas tanks and such like things in the communal areas whether they serve
the “building” or whether they serve other parts of the “project”.
	 
	 	3.3	 	The Management Company is entitled to determine directives with respect to
entry and exit procedures pertaining to security procedures, access arrangements to the
“communal areas”, use of the parking lot procedures and such like various directives.

	4.	 	Entering The Premises

	 	4.1	 	The Tenant hereby declares and confirms that it is aware that communal
facilities are located and/or installed in the “premises” and that for the purpose and
while rendering the services the Management Company will have to enter

	 	 	 
	( — )
	 	( — )

	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 96 -

	 	 	 	the “premises”
and it undertakes to enable the Management Company and/or whomever it so determines to
enter the “premises” in order to examine, treat, maintain, repair and/or replace these
facilities and/or for the purpose of rendering the services including opening the
walls, floors, ceilings and other parts of the “premises” necessary to do so as well as
to perform any other
action necessary in order to carryout the above and the Tenant will cooperate in
carrying out the foregoing.
	 
	 	 	 	Any such entry to the premises will be coordinated in advance by the Management
Company with the Tenant unless in urgent instances and/or emergencies.
	 
	 	4.2	 	The Management Company will coordinate in advance entrance to the premises as
noted above however, in urgent instances (such as in the event of a fire and/or burst
pipe and/or systems in the premises and/or upon a real fear of the premises safety
and/or the building) and in emergencies it will be entitled to enter the “premises”
also without advance notice and without coordinating the entry in advance.
	 
	 	4.3	 	The Management Company will restore the premises to its previous condition
insofar as possible after performing the aforesaid in Section 4.1 above and will do its
utmost that the disturbance to the Tenant will be minimal insofar as possible.
	 
	 	4.4	 	The Tenant will determine and notify the Management Company of the contact
person on its behalf who will be its representative before the Management Company and
also the details of the persons who can be contacted after business hours in the
premises and also when the premises are closed.
	 
	 	4.5	 	Without derogating and/or prejudicing the above, the Tenant will deposit with
the Management Company a key to the “premises” that it can use to enter the “premises”
in emergencies and/or urgent instances.
	 
	 	4.6	 	Secured Rooms
	 
	 	 	 	If secured room(s) are included in the “premises” then at times of emergencies the
Tenant must vacate it/them and make it/them available for the use of the other
residents and/or their employees who use the same floor in the “building” as well as
other people that are in the “building” at that time.
	 
	 	 	 	At times of emergencies as noted above the “Tenant” will vacate the secured room(s)
and make it/them available to the Management Company at its request and should it
not do so then the Management Company and/or its representatives may enter the
“premises” and seize the secured room(s), vacate them and make them available for
such use.
	 
	 	4.7	 	A breach or non-fulfillment of the foregoing in this section by the Tenant will
constitute a material breach of this contract by the “Tenant”.

	 	 	 
	( — )
	 	( — )

	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 97 -

	5.	 	Signposts

	 	5.1	 	It is hereby clarified and agreed that the Management Company will determine
the location in the “building” wherein signposts may be installed in the
“building” and/or the communal areas and the form of the sign including the
“Tenant’s” signs.
	 
	 	 	 	The “Tenant” will install its signs in a place and form only as determined by the
Management Company, and it undertakes not to install or hang signs in other places
and/or in other forms, including upon the external walls and/or windows of the
“premises”.
	 
	 	5.2	 	It is hereby explicitly clarified and agreed that the Management Company will
be entitled to hang and/or permit another (others) to hang signs in the building and/or
on external walls and/or on the roof of the building in the places and form it so
determines.
	 
	 	5.3	 	It is hereby agreed that the signs in the “building” and/or the “communal
areas” will only be carried out by the Management Company unless it determines
otherwise.
	 
	 	5.4	 	A breach or non-fulfillment of the foregoing by the “Tenant” will constitute
and be considered a material breach of this contract by the “Tenant”.

	6.	 	Air-Conditioning
	 
	 	 	The Management Company will determine from time to time the hours of operation of the
central air-conditioning system in the “building”.
	 
	 	 	For the sake of removing any doubt it is hereby clarified that the regular operational hours
of the central air-conditioning system associated with the premises will be determined
pursuant to the Tenant’s request in writing to the Management Company and the Tenant will
assume all the costs associated thereto.
	 
	 	 	On the other hand, the regular operational hours of the air-conditioning system in the
public areas of the “building” will be between 08:00 in the morning and 19:00 in the
evening.
	 
	7.	 	Insurance Policies

	 	7.1	 	The Management Company will execute and maintain the following insurance
polices:

	 	a.	 	“Building” insurance including the “communal facilities” and
the “communal areas” against “all the risks” including earthquakes, at its
complete restoration value.

	 	 	 
	( — )
	 	( — )

	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 98 -

	 	b.	 	Content insurance in the above places as well as the equipment,
tools, materials etc. that serve the Management Company.
	 
	 	c.	 	Insurance against loss of rent and management fees in the
“building” for a period of at least 12 (twelve) months.
	 
	 	d.	 	Third party liability insurance policy with respect to the
communal facilities and the communal area at the maximum amount obtainable for
such policies.
	 
	 	e.	 	Employers’ liability insurance policy for the Management
Company’s employees.
	 
	 	f.	 	For the sake of removing any doubt the foregoing policies will
not include the contents in the “premises” including the facilities and
equipment in the “premises” nor third party liability insurance insofar as the
“premises” are concerned and the Tenant will execute and maintain these
policies at its expense and responsibility.

	 	7.2	 	The foregoing policies will be executed and maintained upon consulting with the
Landlord’s insurance consultant.
	 
	 	7.3	 	The Management Company will be entitled, from time to time, to increase the
scope of the insurance and/or change and/or expand and/or add to the foregoing policies
but not to minimize them.
	 
	 	7.4	 	The Management Company will include in the foregoing policies as an insured
party also the “Tenant”, the “Landlord” and contractors that will handle rendering the
“services” or any part of them for and/or on behalf of the Management Company.
	 
	 	7.5	 	For the sake of removing any doubt it is hereby clarified and agreed that the
“Landlord” and/or Management Company alone will be the beneficiaries of the “building”
policy and the loss of rent and/or management fees policy in the “building”.
	 
	 	 	 	If damage is caused to the premises that are covered by the “building” policy the
proceeds that are received from the insurance company will serve to cover and repair
the foregoing damage.
	 
	 	7.6	 	The foregoing policies will include a provision pertaining to cross-liability
as well as a provision pertaining to a waiver by the insurance company of the right to
subrogation against the “Tenant” and/or the “Landlord” and/or the contractors that
handle the rendering of the services or any part of them for and/or on behalf of the
Management Company and/or their employees.
	 
	 	7.7	 	A breach of Section 7 above and/or a breach of any of its sub-sections will be
considered a material breach of this contract.

	 	 	 
	( — )
	 	( — )

	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 99 -

	8.	 	Management Fees

	8.1	 	The Tenant undertakes to pay the Management Company the management fees to be
determined in accordance with the provisions of this Section 8 below.

	 	8.2	 	Unless stated otherwise and explicitly in Appendix A to this contract,
the management fees will be determined by splitting the costs of all the Management
Company’s expenses for managing, operating and maintaining the “building”, the
“communal areas” and the “communal facilities” and also with respect to rendering the
“services” including financing and depreciation expenses in addition to management fees
at a rate of 15% (fifteen percent) of the total cost of all the foregoing expenses (all
these expenses together will be referred to below as – “The Management Company’s
Expenses”), and in addition to VAT prescribed by law. All the Management Company’s
expenses will be split among the residents of the building by the manner and form set
forth below in this Section 8 and in Appendix A to this contract.
	 
	 	 	 	However it is hereby clarified and agreed that the aforesaid in this section will be
subject to a “management fee cap” that will apply during the first 2 (two) years of
the “lease period” in accordance with the provisions of Section 22(e) of the “lease
contract”.
	 
	 	8.3	 	The Tenant must pay the management fees to the Management Company from the
starting date of the “lease period” as defined in the “lease contract”.
	 
	 	8.4	 	The management fees which the Tenant must pay to the Management Company will
constitute a relative portion of the “Management Company’s expenses” pursuant to the
ratio between the area of the premises for the purpose of payment of management fees as
specified in Appendix A as opposed to the area of the building as specified
in Appendix A.
	 
	 	 	 	So long as at least 75% (Seventy Five Percent) of the total units in the building
are not occupied at first and there are still vacant units therein, and since the
non-use of the vacant units above will be a savings on the Management Company
expenses then the area of the foregoing vacant units for the purpose of payment of
management fees by their owners will be calculated on the basis of 70% (Seventy
Percent) of their areas and the area of the “building” will be adjusted accordingly.
After the occupancy of at least the first 75% (Seventy Five Percent) of all the
areas of the units in the “building” the owners of the vacant units above will be
exempted from payment of any management fees.
	 
	 	 	 	Additionally, the relative charge pertaining to all the tenants in the “building” of
the “Management Company’s expenses” that relate to all the “communal areas” and/or
the “communal facilities” in the “project” and/or the “land” will be determined by
the Management Company in accordance with the provisions of Section 2.10 above and
the “Tenant’s” relative share of these expenses will

	 	 	 
	( — )
	 	( — )

	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

- 100 -

	 	 	 	be added to the management fees
which the Tenant is obligated to pay to the Management Company.
	 
	 	8.5	 	It is hereby clarified and agreed that since the parking lot will only use a
small portion of the communal facilities and/or communal areas in the “building” then
for the purpose of calculating the management fees relating to the parking lot alone a
special and separate calculation will be done pursuant to the 15% + cost method
(fifteen percent) which will only relate to the services rendered by the Management
Company directly to the parking lot.
	 
	 	8.6	 	Since the electricity and water that are supplied to the building through the
main connections to the electricity and water networks to which the units in the
“building” are connected to, and since the Management Company will pay for the
consumption of electricity and water in the whole building then and for the sake of
removing any doubt it is hereby clarified and agreed that the usage costs of the
electricity and water in the building that are not paid separately by the residents in
the building will be included in the Management Company’s expenses.
	 
	 	8.7	 	For the sake of preventing any doubt it is hereby clarified and agreed that the
Management Company’s expenses will also include the following expenses:

	 	a.	 	Rates and other taxes which the Management Company assumes for
the communal facilities and/or communal areas of the “building” and/or the
“project”.
	 
	 	b.	 	Reasonable and acceptable financing expenses.
	 
	 	c.	 	Costs of claims that are filed against the Management Company
and/or by it including legal expenses.
	 
	 	d.	 	Compensation, fines etc., imposed upon the Management Company
and/or that it are charged including settlement arrangements.
	 
	 	e.	 	Collection costs of management fees.
	 
	 	f.	 	Accounting, administrative expenses and auditing, legal
consults.
	 
	 	g.	 	Treating and/or cleaning the external walls and/or windows of
the building.
	 
	 	h.	 	Depreciation on the communal facilities and/or communal areas.

The depreciation amounts (hereinafter – “The Depreciation Fund”) will be considered
as a deposit to be held by the Management Company in a separate account and will
serve for additions, renewals, replacements etc. of items and communal facilities
and/or communal areas.

	 	 	 
	( — )
	 	( — )

	Mellanox Technologies Ltd
	 	Sha’ar Yokneam
	P.O. Box 86 Yokneam 20692
	 	Limited Partnership
	Tel: 04-9593244, Fax: 04-9593245	 	 

 

 

- 101 -

	 	8.8	 	The Management Company will prepare at the beginning of each fiscal year an
estimated budget of Management Company expenses for that year and management fees for
that year will be determined and paid pursuant to that budget. If it is clarified that
during the course of that year the Management Company expenses exceed the estimated
budget the estimated budget will be revised accordingly and the management fees will
also be revised accordingly.
	 
	 	 	 	The Management Company will inform the “Tenant” in writing of the amount of
management fees it is to pay on the basis of the new estimated budget and any
revision or change applicable to the management fees.
	 
	 	 	 	Additionally it is hereby clarified and agreed that subject to the provisions of
Section 22(e) of the “lease contract” the deposit on account of the payment of the
new management fees per every 1 square meter of the “premises” will not exceed
during the first 2 (Two) years of the “lease period” a monthly sum in NIS equal to a
sum of $2.75 (Two Dollars and Seventy Five Cents) in addition to VAT prescribed by
law, and in addition to all the expenses that are applicable to the consumption of
electricity for the air-conditioning system that is operable in the premises and/or
connected thereto.
	 
	 	 	 	However, it is hereby clarified and agreed that the final calculation of the
management fees will be done in accordance with the provisions of this contract.
	 
	 	8.9	 	At the end of 6 (six) months to be counted from the date of the end of each
relevant calendar year, an exact account will be executed of all the Management
Company’s expenses and the “Tenant” will be issued a report of its activities in the
calendar year just ended. If it is clarified that the “Tenant” paid more than its
share of the management fees that it should have paid for that year the surplus will be
credited to the “Tenant” on account of the management fees the Tenant has to pay in the
following year. If it is clarified that the “Tenant” did not pay sufficient management
fees that it should have paid during that year then the “Tenant” will pay the balance
to the Management Company immediately following receipt of a notice thereof from the
Management Company.
	 
	 	 	 	If on the date the foregoing annual accounting is executed it is apparent that the
leasing of the premises by the Tenant has come to an end in accordance with the
terms of the “lease contract” then the Management Company will, within 30 additional
days return the full proportionate balance to the Tenant owing to it.
	 
	 	8.10	 	Such management fees will be determined in dollars and will be paid in NIS in
accordance with the representative rate in NIS of the US Dollar as published by the
Bank of Israel prior to the actual payment date to the Management Company.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 102 -

	 	8.11	 	The management fees will be paid by the Tenant to the Management Company at the
beginning of each calendar quarter, i.e. on the 1st of January,
1st of April, 1st of July and 1st of October of each
calendar year, in advance for the relevant calendar quarter.
	 
	 	8.12	 	Without derogating from or prejudicing the aforesaid, the Tenant will deposit
with the Management Company, upon signing this contract, a sum equal to three months
management fees that will be deducted and offset from the management fees of the first
quarter of the “lease period”.
	 
	 	8.13	 	Such management fees do not include VAT that applies to the Tenant and will be
paid by it in full and in accordance with the VAT rate applicable and/or to become
applicable from time to time as prescribed by law and this – on the date of making each
and every payment of management fees.
	 
	 	8.14	 	The Tenant will pay the management fees by the manner and way set forth in
Appendix A to this contract.
	 
	 	8.15	 	For the sake of preventing any doubt it is hereby explicitly clarified and
agreed that the Tenant will pay the management fees for the duration of the entire
“lease period” and the period during which this contract is in effect, even if it does
not use the premises and also if it vacates the premises prior to the end of the “lease
period” and in the event that the “option” is exercised subject-matter of the “lease
contract” by the Tenant – then also prior to the end of the “extended lease period”,
all pursuant to the matter at hand, and this – for any reason, including but not
limited to the event that the Tenant is not successful in obtaining the permits and/or
licenses to conduct its business from within the premises.
	 
	 	 	 	In the event that the “lease period” is extended in accordance with the terms of the
“lease contract”, then the validity of this contract will be extended for the same
period of time.
	 
	 	8.16	 	It is hereby agreed that non-payment by the Tenant of the full management fees
and/or VAT thereon within 7 (seven) days from the relevant date determined for payment
thereof –will constitute and be considered a material breach of this contract by the
Tenant.

	9.	 	Use Of The Electricity And Water In The Premises

	 	9.1	 	The “Tenant” hereby undertakes to pay, directly to the Landlord, all the
payments in relation to the use and consumption of electricity within the “premises”
pursuant to the consumption thereof which will be measured by an electricity meter in
the premises multiplied by the Electricity Company’s low voltage tariffs as applicable
from time to time.
	 
	 	 	 	However, it is hereby clarified and agreed that the aforesaid in this sub-section
will not apply if the premises are directly hooked by the Electricity company to

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 103 -

	 	 	 	the national electricity network, a “consumer contract” is signed between the Tenant
and the Electricity Company and the Tenants pays in full, by the specified date, and
in an orderly fashion all the electricity charges applicable to the use of
electricity in the premises in accordance with the meter reading to be installed in
the premises by the Electricity Company but at the Tenant’s exclusive and full
expense.
	 
	 	9.2	 	If a water meter is installed in the “premises”, the “Tenant” will pay the
Management Company in consideration of the use and consumption of water in the
“premises” pursuant to the consumption that is measured by that meter whereby it will
be multiplied by the prices that the Management Company is charged for them and
on the dates the Management Company must pay in consideration of the water that is
supplied to the building.
	 
	 	 	 	However, it is hereby clarified and agreed that if the local authority supplies the
water directly to the premises in accordance with a water meter to be installed in
the premises by it but at the “Tenant’s” complete and absolute expense – then the
Tenant will pay on the stipulated dates the full charge for water in relation to the
use of water in the premises in accordance with the invoices issued to it by the
local authority.
	 
	 	9.3	 	The Management Company will furnish the “Tenant” with invoices for the use and
consumption of electricity and/or water in the “premises” and/or the communal property
of the “building”, all pursuant to the matter at hand, and the “Tenant” undertakes to
pay these invoices on the dates stipulated thereon and including the full VAT included
therein.
	 
	 	9.4	 	The “Tenant” hereby declares and confirms that it was told that since the
supply of electricity and/or water to the units in the building are done via the main
hookup to the building and from the building to the units, incorrect operation and/or
misuse of the devices and/or equipment and/or facilities in the “premises” (hereinafter
– “The Facilities”) and/or incorrect treatment of the electricity and/or water network
in the “premises” or outside it may cause breakdowns and/or malfunctions of the
electricity and/or water network and the supply of electricity and/or water to the
building and/or the other units in the building and therefore it undertakes, inter alia
that:

	 	a.	 	The facilities in the “premises” will be in accordance with the
standards and in accordance with the Management Company’s approval.
	 
	 	b.	 	The “Tenant” will use, handle and maintain the facilities,
equipment, devices, tools and such like in the “premises” regularly and
properly in such a manner that does not affect the electricity and/or water
supply systems in the “building” and in the “premises”.
	 
	 	c.	 	The “Tenant” will not treat the electricity and/or water
systems in the “premises” and/or outside the “premises” without advance
coordination

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 104 -

	 	 	 	and without first obtaining written approval in advance from the Management
Company.
	 
	 	d.	 	The representatives of the Management Company will be entitled,
at any time, to execute inspections in the “premises” in order to inspect the
performance and adherence to the aforesaid. These inspections will be
coordinated in advance insofar as possible with the Tenant.
	 
	 	e.	 	The representatives of the Management Company will be entitled,
at any time, to execute inspections in the “premises” in order to inspect the
electricity and/or water systems in the “premises” and/or to perform
maintenance work thereof and/or to carryout repairs in connection with the
electricity and/or water systems in the “building”.
	 
	 	 	 	These inspections will be coordinated in advance, insofar as possible, with
the Tenant.
	 
	 	f.	 	The “Tenant” will abide by all the Management Company’s
directives in connection with the use of the facilities in the “premises”
and/or in connection with the maintenance and treating of the electricity
and/or water systems in the “premises”.
	 
	 	g.	 	It is hereby clarified and agreed that the Management Company
will be entitled to disconnect the electricity and/or water to the “premises”
after giving advance notice thereof in order to carryout maintenance work and
treating the electricity and/or water systems in the “building.

	 	9.5	 	The “Tenant” will pay the Management Company in consideration of the
electricity in connection with operating the air-conditioning in the “premises”
separately, pursuant to an invoice issued to it by the Management Company on the date
stipulated in the invoice including VAT included in the invoice.
	 
	 	9.6	 	The “Tenant” hereby declares and confirms that it was told and it is aware of
the fact that the supply of electricity and/or water to the “premises” will be
conducted as above and that such a supply is dependent upon the supply of electricity
and/or water to the entire building and that it will have no claims and/or assertions
against the Management Company for stoppages and/or disruptions and/or faults in the
supply of electricity and/or water to the “premises” and that it releases it of any
liability for the above and wholly and irrevocably waives any such claim.
	 
	 	9.7	 	It is hereby clarified and agreed that if the “Tenant” does not pay the entire
rent in a timely manner in accordance with the “lease contract” and/or the full
payments associated with the use and consumption of electricity and/or water in the
“premises” and the delay exceeds 10 (ten) days the Management Company will be entitled
and may disconnect the electricity and/or water connection pursuant to the matter at
hand, to the “premises” and reconnect it

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 105 -

	 	 	 	only after full payment of the debt and the expenses of reconnection will apply and
be paid in full by the “Tenant”.
	 
	 	 	 	It is hereby agreed that the Management Company will not disconnect the electricity
from the “premises” prior to giving the Tenant written notice thereof at least 10
(ten) days in advance.
	 
	 	9.8	 	Without derogating or prejudicing the above it is hereby clarified and agreed
that payment for the electricity and/or water is deemed the same as payment of the
management fees and non-payment of the electricity and/or water in a timely manner and
a delay exceeding 10 (ten) days will constitute and be considered a “material breach”
of this contract by the “Tenant”.

	10.	 	The Management Company’s Liability

	 	10.1	 	It is hereby clarified and agreed that the Management Company will not assume
any liability for any damage and/or malfunction and/or loss and/or expense sustained by
the Tenant as a result of managing, operating and maintaining the building and/or
communal areas and/or communal facilities and/or as a result of rendering the services
and/or as a result of a defect and/or deficiency and/or malfunction and/or stoppage in
the operation of the communal facilities and the “Tenant” releases it of any such
liability and waives any such claim against it.
	 
	 	10.2	 	The Management Company will not be considered a salaried “guard” and/or “free
guard” pursuant to the Guards Law 5727-1967 and/or as a “borrower” pursuant to the Rent
and Borrowing Law 5731-1971 nor will it assume any liability for the loss and/or damage
caused to the “communal facilities” and/or the “communal areas”.
	 
	 	10.3	 	It is hereby clarified and agreed that under no circumstances will the
Management Company be liable for the prevention of profit and/or indirect damage and/or
consequential damage sustained by the “Tenant” due to and/or as a result of a breach of
this contract by the Management Company and it releases it from and waives any such
damage.
	 
	 	10.4	 	Without derogating from the generality of the aforesaid it is hereby clarified
and agreed that the “owners” and/or “Management Company” will not be liable by any
means for damage, loss, destruction, expense and/or payment, whether directly or
indirectly or consequential sustained by the “Tenant” and/or anyone on its behalf
and/or among the tenants and/or occupiers and/or users of the units in the “building”
and/or anyone on their behalf and which derive, directly and/or indirectly from a
disrepair and/or malfunction and/or mechanical breakage and/or wear and tear and/or any
hitches with the electricity systems and/or electrical facilities and/or the water
system and/or water facilities of the “building” and/or as a result of non-supply of
electricity and/or water to the “building” for any reason whether due to reasons
connected to the “owners” and/or the Management Company and the “Tenant” or for reasons
that are

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 106 -

	 	 	 	connected to third parties including but not limited to the national “Electricity
Company”.
	 
	 	 	 	Additionally, the Tenant hereby completely and wholly, finally and irrevocably
releases the “owners” and/or the Management Company of any liability for any damage,
loss, destruction, expenses and payment as specified above in this sub-section and
which are sustained to it and/or on its behalf due to and/or in connection with no
supply of electricity and/or water to the “premises” for any reasons as defined in
the “lease contract”.
	 
	 	 	 	For the sake of removing any doubt it is hereby emphasized and agreed that the
“Tenant” and all those acting on its behalf and/or as its agents will not have any
claims and/or assertions and/or demands whatsoever of any type and kind and without
any exceptions against the “owners” and/or against the Management Company and/or
against anyone on their behalf for and/or in connection with the non-supply of
electricity and/or water for any reason to the “premises” as defined in the “lease
contract”.
	 
	 	10.5	 	It is hereby agreed that all the expenses, without any exceptions, associated
with the repair of malfunctions, disrepairs, hitches, repair and/or replacement of the
water, electricity, air-conditioning, security, smoke and fire detector and
extinguisher systems and their facilities in the “building”, in whole and/or in part,
including but not limited to as a result of wear and tear and/or as a result of a
mechanical breakdown as well as expenses for ongoing maintenance, renewal of all these
systems and facilities and such like expenses associated with the systems in the
“building” and the equipment and facilities associated thereto and/or ancillary thereto
will be considered for all senses and purposes as the Management Company’s expenses for
the purpose of managing the “building”.

	11.	 	Accounting

	 	11.1	 	The Management Company will manage the accounts pursuant to acceptable
accounting practices insofar as management, operation and maintenance of the
“building”, “communal areas”, “communal facilities” and rendering the services are
concerned. The Management Company’s annual expenses reports will be audited by the
Management Company’s accountant.
	 
	 	11.2	 	The “Tenant” will be entitled to receive, at its request, the foregoing annual
expenses reports from the Management Company.
	 
	 	11.3	 	It is hereby agreed that the Management Company’s books will be binding upon
the parties and the content thereof will be considered proof of their correctness
including with respect to the “Tenant’s” debts to the Management Company.
	 
	 	11.4	 	A notice from the Management Company of a “Tenant’s” debt to the Management
Company whereupon it is affirmed by the Management

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 107 -

	 	 	 	Company’s accountant will constitute prima facie evidence of the debt contained in
the foregoing notice.
	 
	 	11.5	 	A breach of this Section 11 and/or a breach of any of its sub-section will be
considered a material breach of this contract.

	12.	 	Contract Period

	 	12.1	 	This contract will be valid so long as the Tenant leases the “premises” or any
part thereof pursuant to the terms and provisions of the “lease contract” attached
as Appendix B to this contract and this – both during the “lease period” as
defined in the “lease contract” and also during the entire “extended lease period” if
in fact the foregoing “lease period” is extended or shortened by the manner and terms
specified in the “lease contract”.
	 
	 	12.2	 	It is hereby clarified and agreed that the Management Company will be entitled
to terminate the management of the building and/or management of the “communal areas”
and/or “communal facilities” and/or rendering the “services” by giving notice thereof
to the Tenant at least 90 days in advance. In such an instance the Landlord
undertakes that the “services” will be given by it and/or by a third party on its
behalf to a similar standard as given by the “Management Company”.

	13.	 	Prohibition Against The Transfer And/Or Assignment Of Rights By The Tenant

The “Tenant” is not entitled and may not transfer and/or assign to another/others this
contract and/or the rights and/or undertakings under this contract unless it obtains
approval to do so in advance and in writing from the Landlord.

It is hereby clarified and agreed that the Landlord does not have to give such consent to
the Tenant unless in instances whereby the Tenant is permitted to lease by a sub-lease the
premises in accordance with the provisions in the “lease contract”.

	14.	 	Transfer Of Rights By The Management Company

The Management Company is entitled and may transfer and/or assign to another/others this
contract and/or the rights and/or undertakings under this contract provided that the
Transferee assumes the performance of this contract.

	15.	 	Rescission Of The Contract By The Landlord

The Management Company will be entitled and may rescind this contract upon the occurrence of
one or more of the following instances:

	 	15.1	 	The “Tenant” materially breaches this contract whether this breach is
considered a material breach pursuant to the definition in this contract or whether the
breach is defined as a material breach by virtue of the law.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 108 -

	 	15.2	 	The “Tenant” materially breaches the “lease contract” whether this breach is
considered a material breach pursuant to the “lease contract” or whether it is
considered as such a breach by law, and in the event that the “lease contract” is duly
rescinded for any reason.
	 
	 	15.3	 	An attachment order was rendered against the “Tenant” and/or a permanent or
temporary receiver was appointed to the “Tenant” and was not cancelled within 60 days.
	 
	 	15.4	 	An application to dissolve the “Tenant” and/or bankruptcy application was
filed, pursuant to the matter at hand, and was not cancelled within 60 days.
	 
	 	15.5	 	The “Tenant” received a decision to dissolve it and/or filed an application for
dissolution and/or bankruptcy pursuant to the matter at hand.
	 
	 	15.6	 	An application for a creditor’s settlement was filed against the “Tenant”
and/or it filed such an application.
	 
	 	15.7	 	A pre-liquidator and/or a temporary pre-liquidator and/or an operative
liquidator and/or permanent liquidator was appointed to the “Tenant” and such an
appointment was not cancelled within 60 days.
	 
	 	15.8	 	The foregoing in this section does not prejudice nor derogate from any relief
or remedy available to the “Landlord” by law and/or pursuant to the “lease contract”
but rather adds to them.

	16.	 	Arbitration

	 	16.1	 	In any instance that a dispute and/or differences of opinion arises between the
parties with respect to any matter pertaining to the execution and/or validity and/or
breach and/or performance and/or interpretation of this contract the parties will remit
the disputes and/or differences of opinion to an arbitrator to be appointed
consensually to rule upon the matter within seven (7) days by the parties and if the
agreed upon arbitrator refuses or cannot fulfill its role or in the event that the
parties cannot mutually agree upon the identity of the arbitrator then an arbitrator
will be appointed within ten days by the chairperson of the Israel Bar Association
pursuant to a referral by one of the parties (hereinafter – “The Arbitrator”).
	 
	 	16.2	 	The arbitrator will serve as a single arbitrator and his decision will be
final.
	 
	 	16.3	 	The provisions in this Section 16 is the same as an arbitration agreement
between the parties and the provisions of the addendums to the Arbitration Law,
5728-1968 will apply to an arbitration proceeding subject-matter of this contract as
well as upon the arbitrator.
	 
	 	16.4	 	It is hereby agreed that the arbitrator’s powers will be explicitly subjected
to the provisions of this contract and that the arbitrator may grant interim orders

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 109 -

	 	 	 	and other interim remedies and he will be bound and subjected to the substantive law
but not to the evidentiary laws and procedural laws.
	 
	 	16.5	 	If and insofar as there are parallel and/or similar disputes between the
Management Company and the “Tenant” and/or between the additional tenants of the units
in the “building”, these disputes will be remitted to the arbitrator and the arbitrator
may, in order to shorten and simplify the proceedings, adjoin and consolidate the
similar and/or parallel disputes and hear them concurrently.
	 
	 	16.6	 	A referral to the arbitrator or pending arbitration proceedings does not delay
and/or defer making any payment which the “Tenant” owes pursuant to the provisions of
this agreement, and a condition precedent to holding such arbitration proceedings is
early payment of all the Tenant’s debts to the Management Company pursuant to the terms
of this contract.

	17.	 	Miscellaneous

	 	17.1	 	In any event that the Tenant does not make any payment applicable to it
pursuant to this contract or by virtue of any law and/or does not fulfill any one of
its obligations under this contract then the Management Company will be entitled (but
not obligated) in addition to and without prejudicing its rights and powers under this
contract and by law to pay and perform what the Tenant should have done and the Tenant
undertakes to reimburse and pay the Management Company immediately upon its first
demand to do so and against it producing a duly executed tax invoice any payment and
any expense the Management Company incurred in connection thereto in addition to
interest from the date of payment and until actual reimbursement to the Management
Company.
	 
	 	17.2	 	In the event that a sanction or penalty is imposed upon the Management Company
and/or it is obligated to pay a payment due to non-fulfillment and/or breach by the
Tenant of the provisions in this contract and/or in any law, the Tenant undertakes to
indemnify and compensate the Management Company as a result thereof and to reimburse
and pay the Management Company any amount it is obligated to pay in addition to
interest from the date of payment and until actual reimbursement to the Management
Company as well as to compensate the Management Company for any damage or loss it
sustains as a result thereof.
	 
	 	 	 	The foregoing in this section will apply mutatis mutandis pursuant to the matter at
hand if a penalty is imposed upon the Tenant as a result of a breach of this
agreement by the Management Company.
	 
	 	17.3	 	“Interest” from the date a payment should have been paid and until actual
payment in full to the “Management Company” will be added to each amount including
management fees and VAT that is not paid in a timely manner.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 110 -

	 	17.4	 	The Tenant will pay valued added tax applicable to each of the payments it is
to pay to the Management Company under this contract including on the interest.
	 
	 	17.5	 	Stamp duty on this contract will apply to the Tenant and be paid in full by the
Tenant.

	18.	 	Securities

The Tenant will give the Management Company the securities specified in Appendix A
to this contract.

	19.	 	Liability for Defective Construction

The Management Company hereby undertakes that defects in the “Hermon Building” originating
from negligent construction and/or as a result of use of unsuitable materials while
constructing the “Hermon Building” will be repaired during the inspection period of the
“Hermon Building” by the Landlord and/or by its contractors and suppliers without charging
the Management Company for these expenses.

	20.	 	Notices and Addresses

Notices in connection with this contract will only be submitted in writing and delivered to
the addresses specified below by hand delivery or by facsimile transmittal or by registered
mail.

A notice that is hand delivered will be considered received immediately upon delivery
thereof to the Tenant’s authorized representative or the Management Company’s authorized
representative pursuant to the matter at hand. A notice that is sent by facsimile will be
considered received on the first business day following transmittal thereof. A notice sent
by registered mail will be considered delivered to the recipient following three business
days of it being delivered to a regular post office in Israel to be dispatched.

The parties’ addresses for the purpose of this contract are:

	 	 	 	 
	 	The Management Company:

	 	Sha’ar Yokneam,
	 	 

	 	Registered Limited Partnership in care of:
	 	 

	 	The Sha’ar Hacarmel Company,
	 	 

	 	Sha’ar Hacarmel Complex, Tirat Hacarmel.
	 	 
	 	 
	 	The Tenant:

	 	Pursuant to its address specified in the preamble to this contract and
from the date of delivery of possession of the premises to the Tenant also the address
of the premises.

Each party is entitled to change its address by giving advance notice thereof, in writing,
to the other party.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 111 -

In Witness Hereof The Parties Have Hereto Set Their Hands:

	 	 	 
	Sha’ar Yokneam
	 	Mellanox Technologies Ltd
	Limited Partnership
	 	P.O. Box 86 Yokneam 20692
	( — )
	 	Tel: 04-9593244, Fax: 04-9593245
	The Management Company:

	 	( — )
	
	 	 
	Sha’ar Yokneam
	 	The Tenant:
	Registered Limited Partnership
	 	Mellanox Technologies Ltd.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 112 -

APPENDIX A

To the management contract that was executed and signed in Yokne’am on the 9th day of the
month of May 2001

BY:

Sha’ar Yokne’am, Registered Limited Partnership

(Partnership No. 55-001466-6)

Through its managers, Mr. Ze’ev Sivan (I.D. 000685974) and Yitzchak Reich (I.D.
127198) who are authorized to sign and bind the partnership whose address for the
purpose of this contract is the “Sha’ar Hacarmel” Complex, No. 5 Nachum Chat Street,
Tirat-Carmel

And which will be referred to below for abbreviation purposes as “The Landlord”
and/or “The Management Company”

On the One Part

AND BETWEEN:

Mellanox Technologies Ltd.

Registered Company No. 51-276328-5

Through Mr. Eyal Waldman (I.D. 56429095) who is authorized to sign and bind the
Company whose address for the purpose of this contract is the “Tabor” Building,
Sha’ar Yokneam, Yokneam, who will be referred to below for abbreviation purposes as
“The Tenant”)

On the Second Part

	1.	 	General
	 
	 	 	The phrases in this appendix will assume the same meaning given to them in the management
contract (hereinafter – “The Contract”) unless determined otherwise in this appendix or the
context at hand compels otherwise.
	 
	2.	 	The Premises
	 
	 	 	Appendix A-1 description of the premises: an area of 4,006 square meters (gross) located on
the *18.88 and *22.72 levels (floors 4 and 5) of the “Hermon Building” and constituting the
“premises” as defined in the “lease contract” attached as Appendix B to this
“contract”.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 113 -

	3.	 	The Area Of The Building For The Purpose Of Calculating Management Fees
	 
	 	 	The area of the building for the purpose of calculating management fees is 15,101.20 square
meters.
	 
	4.	 	Management Fees

	 	4.1	 	It is hereby clarified and agreed that the management fees which the
Tenant is to pay the Landlord in return for leasing the premises for a period
commencing on 1.1.2002 and ending on 31.12.2003 will be determined based on an
estimated budget to be prepared from time to time by the Management Company or will be
calculated pursuant to a monthly sum in NIS equal to a monthly sum of $2.75 (Two
Dollars and Seventy Five Cents) per 1 square meter of the area in the “premises” in
addition to VAT prescribed by law and in addition to the all the costs that apply for
the consumption of electricity that is necessary to operate the air-conditioning
systems to be installed in the premises and/or to be connected thereto, based on the
lower of these two relevant calculations. The maintenance fee, in its entirety, will
be paid in NIS in accordance with the representative rate in NIS of the US Dollar as
applicable upon actual payment to the Management Company. The final calculation of
the management fees will be done in accordance with the provisions in the “contract”.
	 
	 	4.2	 	It is hereby agreed that that the management fees which the Tenant must pay to
the Management Company for leasing the premises commencing from the end of the period
specified in Section 4.1 above and onwards, i.e. – commencing from 1.1.2004 and onwards
will be calculated in accordance with the provisions of Section 8 of the “contract”.
	 
	 	4.3	 	The Tenant will pay the management fees by means of a bank transfer to account
no.                      in bank                     , branch                      in the Management Company’s name.
	 
	 	4.4	 	The Management Company is the entity who will actually collect the management
fees but it is entitled to replace the collector at any time by giving notice thereof
to the Tenant.

	5.	 	Securities
	 
	 	 	Upon signing the management contract and as a condition precedent to delivery of possession
of the “premises” to the “Tenant”, the “Tenant” will furnish the Management Company an
autonomic financial bank guarantee for a sum in NIS equal to the management fees for 3
months rent which the Tenant must pay to the Landlord in accordance with the terms and
provisions of this contract and of the “lease contract” attached as Appendix B to
this contract (hereinafter – “The Bank Guarantee”). It is hereby agreed that the validity
of the “bank guarantee”, a draft thereof, all the expenses associated with issuing it and/or
extending the validity thereof and all the rest of its terms will be identical to the bank
guarantees that were furnished by the

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 114 -

	 	 	Tenant to the Landlord as a condition precedent to receiving possession of the premises in
accordance with the terms and provisions of the “lease contract” attached as Appendix
B to this contract.
	 
	6.	 	The Tenant’s Address

	 	6.1	 	Until occupying the premises: according to its address specified in the
preamble to this contract.
	 
	 	6.2	 	After occupying the premises: pursuant to the address of the premises.

	7.	 	Air-Conditioning – Special Services
	 
	 	 	If the Tenant requests to operate the air-conditioning system in the premises beyond the
regular hours of operation of the central air-conditioning system in the building and if the
Management Company can affirmatively respond to this request by the Tenant, then the Tenant
will have to pay the Management Company all the additional expenses, without any exceptions,
associated thereto, including but not limited to additional management expenses required of
the Management Company that will also be calculated based on the 15% + Cost method and all
this – in addition to VAT prescribed by law, and in accordance with the details of the
invoices issued to the Tenant in respect thereof by the Management Company.
	 
	 	 	The Tenant will be released from paying for the foregoing special services if it does not
require them.

	8.	 	Miscellaneous

	 	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

In Witness Hereof The Parties Have Hereto Set Their Hands:

	 	 	 
	 
	 	Mellanox Technologies Ltd
	Sha’ar Yokneam
	 	P.O. Box 86 Yokneam 20692
	Limited Partnership
	 	Tel: 04-9593244, Fax: 04-9593245
	( — )
	 	( — )
	 
	 	 
	The Management Company:
	 	The Tenant:
	Sha’ar Yokneam
	 	Mellanox Technologies Ltd.
	Registered Limited Partnership	 	 

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 115 -

APPENDIX I

SIGNPOST APPENDIX

	1.	 	General:
	 
	 	 	The signpost plans and designs of all the signs will be determined by the architect or signs
consultant on the Landlord’s behalf. Any deviation from the approved plans requires
approval in advance and in writing from the Landlord.
	 
	2.	 	Itemization of the Signs:

	 	2.1	 	Signs In The Entrance Lobby
	 
	 	 	 	A central signpost will be installed in the entrance to the main lobby of the
entrance level. Each tenant will be allotted an area for a sign pursuant to the
architect’s plans.
	 
	 	2.2	 	Signs In The Lobbies Of The Floors
	 
	 	 	 	Signs will be installed in the lobbies of each floor whereby each tenant will be
allotted an area for a sign in accordance with the plan and the secured area on the
floor.
	 
	 	2.3	 	Directional Signs
	 
	 	 	 	Directional signs will be installed in an area of each floor, in the emergency
stairwell and the public lavatories, as well as in the secured areas on each floor.
	 
	 	2.4	 	Signs Outside The Main Entrance
	 
	 	 	 	A directional and identification sign will be installed for all the tenants whereby
access to such tenants is through the lobby located nearest the relevant sign.
	 
	 	2.5	 	Directional Signs For The Parking Lots
	 
	 	 	 	In the areas of the parking lots and access ways to the parking lots signposting
facilities will be installed for identification and directions pursuant to the plans
approved by the safety consultant and architect.

	3.	 	Signpost Expenses
	 
	 	 	To the exception of the cost of installing the main sign in the main entrance lobby of the
entrance level each tenant will assume the expenses of installing any signs bearing the
tenant’s name.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

- 116 -

	 	 	Installation of the signs will be done by the Landlord but the Tenant hereby undertakes to
pay the Landlord the full expenses associated thereto immediately upon receiving the
Landlord’s invoice.

	4.	 	External Signs On The Front Of The Building
	 
	 	 	The installation of any external signs on the external walls of the “Hermon Building” will
be done upon coordinating such installation in advance with the Landlord and pursuant to the
signposting plans and designs determined by the architect or the signposting consultant on
the Landlord’s behalf.

	5.	 	Rights To Signs And Advertising
	 
	 	 	It is hereby emphasized and clarified that all signpost rights and advertising belonging to
the “Hermon Building” including but not limited to the right to install signs on the roof of
the “Hermon Building” and/or the external walls of the building – belong solely to the
Landlord. The Landlord will be entitled and may use these rights as it deems fit pursuant
to its exclusive and absolute discretion, including but not limited to leasing signs and/or
advertising space to third parties.

In Witness Hereof The Parties Have Hereto Set Their Hands:

	 	 	 
	 
	 	Mellanox Technologies Ltd
	Sha’ar Yokneam
	 	P.O. Box 86 Yokneam 20692
	Limited Partnership
	 	Tel: 04-9593244, Fax: 04-9593245
	( — )
	 	( — )
	 
	 	 
	The Management Company:
	 	The Tenant:
	Sha’ar Yokneam
	 	Mellanox Technologies Ltd.
	Registered Limited Partnership	 	 

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

PROMISSORY NOTE

NO. 1

Shekels

Executed and signed in Tel-Aviv on this 14th day of the month of December, 2000

I/we the undersigned undertake to pay Y.D. Real Estate Company Ltd. a sum of
87,066NIS (Eighty Seven Thousand and Sixty Six NIS)

The consideration: Rent + management fees + VAT at a rate of 17%.

	 	 	 
	Payment venue:

	 	Bank Hapoalim      Branch 722     Account No. 398395
	Payment Date:

	 	1st day of the month of February in the year 2001

The amount stipulated in this note will be linked to the consumer prices index (including fruits
and vegetables) by such a manner that if on the payment date of this note the new index is higher
than the basic index, this note will be paid whereby it will be increased proportionate to the
increase in the rate of the new index as opposed to the basic index.

“The Basic Index”:

Means the last consumer prices index (included fruits and vegetables) for the month of 5/00
(106.7 points) that was published by the Central Statistics Bureau on 15th June
2000.

“The New Index”:

Means the last consumer prices index (including fruits and vegetables) that was published from time
to time by the Central Statistics Bureau prior to the date determined in this note to make the
payment which the person who executed the note undertook to pay.
If the basic index is replaced or if the method of calculating the index or execution thereof is
substituted or if it is published by another entity instead of the Central Statistics Bureau the
beneficiary will calculate the index for the purpose of this section taking the foregoing changes
into account.

In any event that the note is not paid on the payment date and the note is submitted to the
collection office and/or a claim hereunder is filed – pursuant to the matter at hand – the new
index will be the index known on the date the proceedings are opened.
The holder of this note is released of any duties imposed upon a holder of a note including but not
limited to presenting it for payment, protest, non-payment notice.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Mellanox Technologies Ltd
	 	 	 	 	 	 	P.O. Box 86 Yokneam 20692
	 	 	 	 	 	 	Tel: 04-9593244, Fax: 04-9593245
	Mellanox Technologies Ltd.	 	P.O. Box 86 Yokneam 20692	 	512763285	 	(—)
	Name
	 	Address	 	P.C./ID	 	Name of the person executing the note

 

 

PROMISSORY NOTE

NO. 2

Shekels

Executed and signed in Tel-Aviv on this 14th day of the month of December, 2000

I/we the undersigned undertake to pay Y.D. Real Estate Company Ltd. a sum of
87,066NIS (Eighty Seven Thousand and Sixty Six NIS)

The consideration: Rent + management fees + VAT at a rate of 17%.

	 	 	 
	Payment venue:
	 	Bank Hapoalim      Branch 722     Account No. 398395
	Payment Date:
	 	1st day of the month of May in the year 2001

The amount stipulated in this note will be linked to the consumer prices index (including fruits
and vegetables) by such a manner that if on the payment date of this note the new index is higher
than the basic index, this note will be paid whereby it will be increased proportionate to the
increase in the rate of the new index as opposed to the basic index.

“The Basic Index”:

Means the last consumer prices index (included fruits and vegetables) for the month of 5/00
(106.7 points) that was published by the Central Statistics Bureau on 15th June
2000.

“The New Index”:

Means the last consumer prices index (including fruits and vegetables) that was published from time
to time by the Central Statistics Bureau prior to the date determined in this note to make the
payment which the person who executed the note undertook to pay.
If the basic index is replaced or if the method of calculating the index or execution thereof is
substituted or if it is published by another entity instead of the Central Statistics Bureau the
beneficiary will calculate the index for the purpose of this section taking the foregoing changes
into account.

In any event that the note is not paid on the payment date and the note is submitted to the
collection office and/or a claim hereunder is filed – pursuant to the matter at hand – the new
index will be the index known on the date the proceedings are opened.
The holder of this note is released of any duties imposed upon a holder of a note including but not
limited to presenting it for payment, protest, non-payment notice.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Mellanox Technologies Ltd
	 	 	 	 	 	 	P.O. Box 86 Yokneam 20692
	 	 	 	 	 	 	Tel: 04-9593244, Fax: 04-9593245
	Mellanox Technologies Ltd.	 	P.O. Box 86 Yokneam 20692	 	512763285	 	(—)
	Name
	 	Address	 	P.C./ID	 	Name of the person executing the note

 

 

14TH November 2000

Our Ref: Yokn 2038

          Logo

SHAAR YOKNEAM

LIMITED PARTNERSHIP

To Mani/Liora

Mellanox Technologies Ltd.

Attn: Udi Katz

Dear Udi,

Re: Bank Guarantee

	 	1.	 	The validity of the bank guarantee that was remitted to us pursuant to the provisions
of Section 6 of the lease contract dated 24.06.1999 expired on 30.06.2000.
	 
	 	2.	 	We request that you renew the guarantee as required in accordance with the current rent
and management fees (see calculation of the charge that was submitted to you for the
10-12/00 quarter).
	 
	 	 	 	100,609NIS (rent)

  16,097NIS (management fees)

116,706NIS (Quarterly total)

Pursuant to Section 26 – the guarantee is for a period of 9 months 116,706 x 3 = 350,118NIS

Total amount of the guarantee: 1.17 x 350,118 = 409,638NIS

Sincerely,

(—)

Sarig Benjamin

 

 

					
	 	 	 	 	 
	  
	 	Rent: 5th floor + 61/2 — Tel-Aviv
	 	340m2 + 50m2     

Shekels

Executed and signed in Tel-Aviv on this 31st day of the month of July, 2001

I/we the undersigned undertake to pay Y.D. Real Estate Company Ltd. a sum of
87,066NIS (Eighty Seven Thousand and Sixty Six NIS)

The consideration: Rent + management fees + VAT at a rate of 17%.

	 	 	 
	Payment venue:

	 	Bank
Hapoalim      Branch
722     Account No. 398395
	Payment Date:

	 	1st
day of the month of November in the year 2001

The amount stipulated in this note will be linked to the consumer prices index (including fruits
and vegetables) by such a manner that if on the payment date of this note the new index is higher
than the basic index, this note will be paid whereby it will be increased proportionate to the
increase in the rate of the new index as opposed to the basic index.

“The Basic Index”:

Means the last consumer prices index (included fruits and vegetables) for the month of 5/00
(106.7 points) that was published by the Central Statistics Bureau on 15th June
2000.

“The New Index”:

Means the last consumer prices index (including fruits and vegetables) that was published from time
to time by the Central Statistics Bureau prior to the date determined in this note to make the
payment which the person who executed the note undertook to pay.
If the basic index is replaced or if the method of calculating the index or execution thereof is
substituted or if it is published by another entity instead of the Central Statistics Bureau the
beneficiary will calculate the index for the purpose of this section taking the foregoing changes
into account.

In any event that the note is not paid on the payment date and the note is submitted to the
collection office and/or a claim hereunder is filed – pursuant to the matter at hand – the new
index will be the index known on the date the proceedings are opened.
The holder of this note is released of any duties imposed upon a holder of a note including but not
limited to presenting it for payment, protest, non-payment notice.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Mellanox Technologies Ltd
	 	 	 	 	 	 	P.O. Box 86 Yokneam 20692
	 	 	 	 	 	 	Tel: 04-9593244, Fax: 04-9593245
	Mellanox Technologies Ltd.	 	P.O. Box 86 Yokneam 20692	 	512763285	 	(—)
	Name
	 	Address	 	P.C./ID	 	Name of the person executing the note

 

 

Shekels

Executed and signed in Tel-Aviv on this 31st day of the month of July,
2001

I/we the undersigned undertake to pay Y.D. Real Estate Company Ltd. a sum of
87,066NIS (Eighty Seven Thousand and Sixty Six NIS)

The consideration: Rent + management fees + VAT at a rate of 17%.

	 	 	 
	Payment venue:

	 	Bank Hapoalim      Branch 722     Account No. 398395
	Payment Date:

	 	1st day of the month of February in the year 2002

The amount stipulated in this note will be linked to the consumer prices index (including fruits
and vegetables) by such a manner that if on the payment date of this note the new index is higher
than the basic index, this note will be paid whereby it will be increased proportionate to the
increase in the rate of the new index as opposed to the basic index.

“The Basic Index”:

Means the last consumer prices index (included fruits and vegetables) for the month of 5/00
(106.7 points) that was published by the Central Statistics Bureau on 15th June
2000.

“The New Index”:

Means the last consumer prices index (including fruits and vegetables) that was published from time
to time by the Central Statistics Bureau prior to the date determined in this note to make the
payment which the person who executed the note undertook to pay.
If the basic index is replaced or if the method of calculating the index or execution thereof is
substituted or if it is published by another entity instead of the Central Statistics Bureau the
beneficiary will calculate the index for the purpose of this section taking the foregoing changes
into account.

In any event that the note is not paid on the payment date and the note is submitted to the
collection office and/or a claim hereunder is filed – pursuant to the matter at hand – the new
index will be the index known on the date the proceedings are opened.
The holder of this note is released of any duties imposed upon a holder of a note including but not
limited to presenting it for payment, protest, non-payment notice.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Mellanox Technologies Ltd
	 	 	 	 	 	 	P.O. Box 86 Yokneam 20692
	 	 	 	 	 	 	Tel: 04-9593244, Fax: 04-9593245
	Mellanox Technologies Ltd.	 	P.O. Box 86 Yokneam 20692	 	512763285	 	(—)
	Name
	 	Address	 	P.C./ID	 	Name of the person executing the note

 

 

Shekels

Executed and signed in Tel-Aviv on this 31st  day of the month of July, 2001

I/we the undersigned undertake to pay Y.D. Real Estate Company Ltd. a sum of
87,066NIS (Eighty Seven Thousand and Sixty Six NIS)

The consideration: Rent + management fees + VAT at a rate of 17%.

	 	 	 
	Payment venue:

	 	Bank Hapoalim      Branch 722     Account No. 398395
	Payment Date:

	 	1st day of the month of May in the year 2002

The amount stipulated in this note will be linked to the consumer prices index (including fruits
and vegetables) by such a manner that if on the payment date of this note the new index is higher
than the basic index, this note will be paid whereby it will be increased proportionate to the
increase in the rate of the new index as opposed to the basic index.

“The Basic Index”:

Means the last consumer prices index (included fruits and vegetables) for the month of 5/00
(106.7 points) that was published by the Central Statistics Bureau on 15th June
2000.

“The New Index”:

Means the last consumer prices index (including fruits and vegetables) that was published from time
to time by the Central Statistics Bureau prior to the date determined in this note to make the
payment which the person who executed the note undertook to pay.
If the basic index is replaced or if the method of calculating the index or execution thereof is
substituted or if it is published by another entity instead of the Central Statistics Bureau the
beneficiary will calculate the index for the purpose of this section taking the foregoing changes
into account.

In any event that the note is not paid on the payment date and the note is submitted to the
collection office and/or a claim hereunder is filed – pursuant to the matter at hand – the new
index will be the index known on the date the proceedings are opened.
The holder of this note is released of any duties imposed upon a holder of a note including but not
limited to presenting it for payment, protest, non-payment notice.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Mellanox Technologies Ltd
	 	 	 	 	 	 	P.O. Box 86 Yokneam 20692
	 	 	 	 	 	 	Tel: 04-9593244, Fax: 04-9593245
	Mellanox Technologies Ltd.	 	P.O. Box 86 Yokneam 20692	 	512763285	 	(—)
	Name
	 	Address	 	P.C./ID	 	Name of the person executing the note

 

 

ADDENDUM TO THE LEASE CONTRACT DATED 9.5.2001

Executed and signed in Yokneam on the 23rd day of the month of August, 2001

BY:

	 	 	 
	 

	 	Sha’ar Yokne’am, Registered Limited Partnership

Partnership No. 55-001466-6

Through its managers, Mr. Ze’ev Sivan (I.D. 000685974) and Yitzchak Reich
(I.D. 127198) who are authorized to sign and bind the partnership whose
address for the purpose of this contract is the “Sha’ar Hacarmel” Complex,
No. 5 Nachum Chat Street, Tirat Carmel
And which will be referred to below for abbreviation purposes as “The
Landlord”

On the One Part

AND BETWEEN:

	 	 	 
	 

	 	Mellanox Technologies Ltd.

Registered Company No. 51-276328-5

Through Mr. Eyal Waldman (I.D. 56429095) who is authorized to sign and bind
the Company whose address for the purpose of this contract is “Tabor”
Building, Sha’ar Yokneam, Yokneam, which will be referred to below for
abbreviation purposes as “The Tenant”)

On the Second Part

	 	 	 
	WHEREAS:

	 	The Landlord is the registered owner or Leaseholder,
pursuant to the matter at hand, and exclusive holder of land
with an area of approximately 62,000 square meters
(hereinafter – “The Land”) including complete parcels and
partial parcels in Bloc 11098, with the exception of parts of
parcels 21 and 82 which are not registered in the Landlord’s
name and which Sultam Ltd., who sold the rights to the
foregoing “Land” to the Landlord, undertook also to purchase
them and transfer the ownership or leasehold rights thereof
to the Landlord;
	 
	 	 
	AND WHEREAS:

	 	Among the buildings that were built and/or will be built on
the “land”, the Landlord is constructing on Parcels 48, 49
and also on Lot No. 101 constituting part of Parcels 50, 79
and 80 (Partnership in Land) in Bloc 11098, a building for
high-tech industries known as the “Hermon Building”;

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 

	 	 	 
	AND WHEREAS:

	 	On 9.5.2001 a lease contract was signed between the Landlord
and the Tenant (hereinafter – “The Primary Contract”) a copy
of which is attached hereto as Appendix A to this Addendum of
the “primary contract” with respect to leasing a gross area
of 4,006m2 on levels *18.88 and *22.72 (on floors
4 and 5) of the “Hermon Building” (hereinafter – “The
Building” or “Hermon Building”), marked in yellow on the
“building” plans attached hereto as Appendix A-1 to this
Addendum to the “primary contract” and constituting an
integral and material part hereof (hereinafter: “The
Premises”);
	 
	 	 
	AND WHEREAS:

	 	The parties wish to amend the terms and provisions of the
"primary contract” in accordance with the provisions set
forth below in this Addendum to the “primary contract”
(hereinafter – “The Addendum”).
	 
	 	 
	AND WHEREAS:

	 	The Tenant is interested in leasing an additional area of
approximately 508m2 gross from the Landlord
situated on the ground floor of level +00 of the “Hermon
Building", and this pursuant to the provisions specified in
this addendum to the “primary contract’.
	 
	 	 
	AND WHEREAS:

	 	In accordance with the “primary contract” as well as in
accordance with this addendum to the “primary contract”, the
“premises” are being leased to the Tenant by a lease that is
not protected by the Tenants Protection Law (Consolidated
Version) 5732-1972 (hereinafter: “The Law”),

Therefore It Is Stipulated and Agreed Between The Parties As Follows:

Preamble and Appendices

	1.	 	The preamble to this addendum of the “primary contract” and all its appendices and all the
facts specified herein constitutes a material and integral part to this addendum and will be
considered as incorporated into the body of this addendum.

Changes To The Terms In The “Primary Contract"

	2.	 	The parties hereby agree that all the terms and provisions of the “primary contract” will be
amended in accordance with the provisions of this addendum below to the “primary contract”.
	 
	 	 	A breach of this section will be considered a material breach of this addendum to the
“primary contract”.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 

Changes And Expanding The Premises

	3.	 	It is hereby agreed between the parties that commencing from the date of signing this
contract and until the end of the lease subject-matter of this addendum to the “primary
contract”, the area of the “premises” will be enlarged and expanded, as defined in the
“primary contract” by an additional area of approximately 508m2 gross (constituting
a net area of approximately 444.70m2) marked in red on the drawing attached hereto
as Appendix A-2 of this addendum and constituting an integral and material part
hereof (hereinafter – “The Additional Area”). (The premises as defined in the “primary
contract” together with the “additional area” as defined above will jointly be referred to
below for abbreviation purposes “The New Premises”).
	 
	 	 	It is hereby agreed between the parties that 5 (five) parking spaces located in parking lot
no.1 adjacent to the “Hermon Building” will also be adjoined to the “additional area” (these
parking spaces constitute an integral part of the “new premises”).
	 
	 	 	The parties hereby agree that the new premises will be marked in blue on the drawing
attached hereto as Appendix A-2 to this addendum of the “primary contract”.
	 
	 	 	A breach of this section will be considered a material breach of this addendum.

Lease
Period Of The “Additional Area” And Of The “New Premises”

	4.	 	The parties hereby agree and undertake as follows:

	 	a.	 	The terms and provisions of the “primary contract” relating to the lease of the
“premises” as defined in the “primary contract” will apply mutatis mutandis, pursuant
to the matter at hand, to the leasing of the “additional area”.
	 
	 	 	 	Likewise, it is hereby clarified and agreed that all the terms and provisions of the
“primary contract” will apply mutatis mutandis pursuant to the matter at hand to the
leasing of the “new premises”.
	 
	 	b.	 	The Landlord hereby leases to the Tenant and the Tenant hereby leases from the
Landlord the “additional premises” for a total period of time to include 60 (sixty)
months that will start on 1.1.2002 and until 31.12.2006 (hereinafter – “The Lease
Period”).
	 
	 	c.	 	The Tenant is hereby given an additional option, identical to the one
referenced in Section 11(b) of the “primary contract” (hereinafter – “The Additional
Option”) pursuant to which the Tenant is entitled to extend the “lease period” of the
“additional area” for an additional period of time to include 60 (sixty) months
starting on 1.1.2007 and ending on 31.12.2011 (hereinafter- “The Extended Lease
Period”), but this – provided that the Tenant gives the Landlord, by 30.6.2006 (i.e. –
at least 6 (six) months prior to the date upon which the “lease period” ends) advance
written notice pursuant to which it is exercising, in full, its right in accordance
with the “additional option” and is extending the “lease period” until the end of the
“extended lease period”.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 

	 	d.	 	A breach of any sub-section of Sections 4(a) and/or 4(b) and/or 4(c) above –
will be considered a material breach of this addendum to the “primary contract”.

Rent – Extent Thereof And Payment Terms And Date Of Payment

	5.	 	The Tenant hereby undertakes to pay the Landlord rent as specified below:

	 	a.	 	The Tenant hereby undertakes to pay the Landlord monthly rent for the leasing
of the “additional area” during the “lease period” which will amount to a monthly sum
(principal) in NIS equal to a monthly sum (principal) of $7,108 (Seven Thousand One
Hundred and Eight US Dollars).
	 
	 	 	 	It is hereby agreed between the parties that the calculation of the monthly rent for
the leasing of the “additional area” during the “lease period” will be done by
multiplying an area of 508m2 by the monthly sum (principal) in NIS equal
to a monthly sum (principal) of $13.50 (Thirteen Dollars and Fifty Cents) per each
1m2 of the “additional area” and it will also include monthly usage fees
for the right to use the foregoing 5 (five) parking spaces adjoined to the
“additional area”.
	 
	 	b.	 	If the “additional option” is exercised by the Tenant with respect to the
“additional area” then the Tenant hereby undertakes to pay the Landlord monthly rent
(principal) for the leasing of the “additional areas” during the “extended lease
period” which will amount to a monthly sum (principal) in NIS equal to a monthly sum
(principal) to $7,819 (Seven Thousand, Eight Hundred and Nineteen US Dollars).
	 
	 	 	 	It is hereby agreed that the calculation of the monthly rent for the leasing of the
“additional area” during the “extended lease period” will be done by multiplying an
area of 508m2 by the monthly sum (principal) in NIS equal to a monthly
sum (principal) of $14.85 (Fourteen Dollars and Eighty Fifty Cents) per each
1m2 of the “additional area” and it will also include monthly usage fees
for the right to use the foregoing 5 (five) parking spaces adjoined to the
“additional area”.
	 
	 	c.	 	It is agreed between the parties that all the rent which the Tenant must pay to
the Landlord in accordance with the terms and provisions of this addendum to the
“primary contract” will be linked in its entirety to an increase that applies to the
U.S. CPI Index as defined in the “primary contract” and all this – by the manner and
terms set forth in the “primary contract”.
	 
	 	 	 	To prevent any doubts it is hereby agreed and emphasized that VAT prescribed by law
will be added to each and every rent payment at the rate applicable on the date of
actual payment in full to the Landlord of each and every payment on account of the
rent which the Tenant must pay to the Landlord in

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 

	 	 	 	accordance with the terms and provisions of the addendum to the “primary contract”.

	 	d.	 	The full rent which the Tenant must pay to the Landlord for leasing the
“additional area” during the “lease period” and if the Tenant exercises the “additional
option” then also for the lease of the “additional area” during the “extended lease
period” and all – in accordance with the terms and provisions of this addendum to the
“primary contract” will be paid by the Tenant to the Landlord for all the relevant
lease period in tri-monthly consecutive and continuous payments each time in order to
pay the full rent, for 3 (three) additional months of rent in advance, all pursuant to
the matter at hand.
	 
	 	 	 	The first payment to be paid in full and in advance for rent for the leasing of the
“additional area” during the first 3 (three) months of the lease of the “lease
period” will be on 1.1.2002 whereas the dates for payment of the rest of the
tri-monthly payments which the Tenant must pay to the Landlord for leasing the
“additional area” in accordance with the terms and provisions of this addendum and
the “primary contract” will be on the 1st (first) of the calendar months
of the months of April, July, October and January applicable from 1.4.2002 and until
the end of the lease period of the “additional area” in accordance with the terms of
the “primary contract” and this addendum to the “primary contract”.
	 
	 	e.	 	It is hereby agreed between the parties that the rest of the terms and
provisions of the “primary contract” as applicable with respect to the lease of the
“premises” during the “lease period” and during the “extended lease period” as these
phrases are defined in the “primary contract” will apply to the lease of the
“additional area” during the “lease period” as well as the lease of the “additional
area” during the “extended lease period” if in deed the Tenant exercises the
“additional option” in accordance with the terms and provisions of this addendum, but
all this – subject to the applicable changes with respect to the amount of rent and
linking the rent to the U.S. CPI index as a result of increasing the area of the
“premises” as obligatory under the terms and provisions of this addendum to the
“primary contract”.
	 
	 	f.	 	A breach of Section 5 above and/or a breach of any of its sub-section will be
considered a material breach of this addendum to the “primary contract”.

Linking Payments To The Representative Rate In NIS Of The US Dollar And An Increase In The U.S.
CPI Index In The USA

	6.	 	All the rent payments that the Tenant must pay to the Landlord pursuant to the terms of this
addendum, including but not limited to the monthly rent during the “lease period” and monthly
rent during the “extended lease period” as defined in the primary contract and stipulated in
this addendum in US Dollars, will be paid by the Tenant to the Landlord in New Israeli Shekels
in accordance with the “representative rate in NIS of the US Dollar” that was known on the
actual date of payment of each and every

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 

	 	 	payment of the foregoing rent payments or any part of these payments that will be paid by
the Tenant to the Landlord pursuant to the terms of this contract.
	 
	 	 	It is hereby agreed between the parties that all the rent payments which the Tenant must pay
to the Landlord in accordance with the terms of this contract will be paid by the Tenant
whereby they will be linked in full to each increase that applies to the U.S. CPI index and
all in accordance with the provisions set forth in the “primary contract”.
	 
	 	 	All of the provisions of the “primary contract” and particularly the provisions in Section
13 of the “primary contract” will apply to this addendum mutatis mutandis pursuant to the
matter at hand.
	 
	 	 	Additionally, it is hereby agreed that a breach of this section will be considered a
material breach of this addendum to the “primary contract”.

Description And Adjustments To The Premises

	7.	 	The Tenant hereby declares that it saw the “premises”, the “additional area”, the “new
premises”, the location of the foregoing parking spaces adjoined to the “additional area”, the
building on the “land” upon which they are erected, the surroundings and found the “premises”,
the “additional area” and the “new premises” suitable and appropriate for all its needs and
purposes with respect to the use thereof pursuant to the “purpose of the lease” and that it
hereby waives, finally, completely, fully and absolutely, any assertion of a defect and/or
unsuitability in connection with the “premises” and/or in connection with the “additional
area” and/or in connection with the “new premises” and/or in connection with their
surroundings, the building in which they are located and/or with respect to the possibilities
of use thereof, in whole and/or in part, based on its needs.
	 
	 	 	Additionally and for the sake of removing any doubt it is emphasized and agreed that the
provisions in Section 7 of the “primary contract” with respect to the change of location of
the parking spaces adjoined to the premises will apply mutatis mutandis pursuant to the
matter at hand, also with respect to the changes of location of the parking spaces that are
adjoined to the “additional area” in accordance with the terms and provisions of this
addendum to the “primary contract”.

Delivery
Protocol of the “Additional Area” and of the “New Premises”

	8.	 	Upon delivery of the “additional area” a delivery protocol will be executed to be signed by
both parties and this protocol will serve as prima facie evidence of the fact that the Tenant
received the “additional area” and the “new premises” in accordance with the terms and
provisions in this addendum and to its complete satisfaction (hereinafter – “The Delivery
Protocol”).
	 
	 	 	If for any reason the delivery protocol is not executed the Tenant’s signature upon this
addendum to the “primary contract” will be considered as its confirmation and as conclusive
evidence of the fact that the “new premises” were in fact delivered by the Landlord pursuant
to the terms of this addendum.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 

	 	 	All the rest of the terms of the “primary contract” including but not limited to the
provisions of Section 8 therein will apply mutatis mutandis pursuant to the matter at hand
also with respect to the delivery of the “additional areas” to the Tenant in accordance with
the provisions of this addendum.

Changes
To The “New Premises”

	9.	 	For the sake of removing any doubt it is hereby agreed and emphasized explicitly that with
respect to executing any changes and performance of the construction and any adjustment work
within the “additional area” and/or the “new premises” the provisions of Section 19 of the
“primary contract” will apply mutatis mutandis pursuant to the matter at hand.
	 
	 	 	A breach of this section will constitute a material breach of this addendum to the “primary
contract”.

Bank Guarantees

10.

	 	a.	 	In order to guarantee the fulfillment of all the Tenant’s obligations in
accordance with the provisions of this addendum to the “primary contract”, and in
general in order to guarantee the fulfillment of the Tenant’s obligations to vacate the
“additional area” constituting part of the “new premises” at the end of the lease
subject-matter of this addendum (including but not limited to the event that the lease
subject-matter of this addendum is cancelled and/or the cancellation of this addendum
as a result of a breach of the “primary contract” and/or of this addendum by the
Tenant) as well as in order to guarantee payment in full and in a timely manner of all
the monies and payments which the Tenant is obligated and/or will become obligated to
pay pursuant to this addendum and in general, payment of ongoing rent, payment for
damages that may be caused to the “new premises” imposed upon it pursuant to the
provisions of this addendum and/or pursuant to the provisions of the “primary contract”
and payment of all the rest of the taxes, expenses, compensation, damages and various
other payments applicable to it which the Tenant must and/or in the future will be
obligated to pay pursuant to the terms of the “primary contract” and this addendum, the
Tenant undertakes to deposit with the Landlord, upon signing this addendum, an
autonomic unconditional and unreserved bank guarantee from a duly operative recognized
bank in Israel. This guarantee will not be negotiable and will be payable only to the
Landlord.
	 
	 	 	 	This bank guarantee will be for a sum (principal) of 517,693 NIS (Five Hundred and
Seventeen Thousand, Six Hundred and Ninety Three NIS) [equal to rent (principal) for
leasing the “additional area” during the first 15 (fifteen) months of the “lease
period” in addition to VAT prescribed by law]. This bank guarantee in its entirety
will be linked to the increases that apply to the consumers prices index in
accordance with the ratio that the consumer prices

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 

	 	 	 	index increases by which that is known upon actually realizing it as opposed to the
rate of the consumer prices index (that was last published prior to the date upon
which this addendum to the “primary contract” was signed (hereinafter – “The
Additional Bank Guarantee”).
	 
	 	 	 	The “Additional Bank Guarantee” will be effective during the entire “lease period”
in addition to 3 (three) additional calendar months.
	 
	 	 	 	If the Tenant exercises the “additional option” and the lease period of the
“additional area” is extended for the duration of the “extended lease period” then
by the date that 6 (six) full months of the lease remain until the end of the “lease
period” of the “additional area” the Tenant will furnish the Landlord with a letter
of extension of the “additional bank guarantee” for the duration of the entire
“extended lease period” in addition to 3 (three) additional calendar months.
	 
	 	 	 	All the expenses, without any exceptions, and including but not limited to stamp
duty and bank charges that apply regarding and/or in connection with the issuance
and/or extending the validity of the “additional bank guarantee” will apply and be
paid in full by the Tenant.
	 
	 	 	 	It is hereby emphasized and agreed by the parties that the “additional bank
guarantee” will be a financial, autonomic, unconditional, unreserved bank guarantee
that is exercisable forthwith. It is hereby clarified and agreed that the Landlord
will be entitled to demand immediate payment of the “additional bank guarantee”, in
whole or in part, upon the occurrence of any breach of this contract by the Tenant
provided that the Landlord gives the Tenant written notice of its intent to realize
this “additional bank guarantee at least 10 (ten) days in advance.

	 	b.	 	In addition to the “additional bank guarantee” referenced in Section 10(a)
above the Tenant undertakes to furnish the Landlord, upon signing this addendum, an
additional bank guarantee identical in format and linkage terms to the amount of the
“additional bank guarantee” for a sum of (principal) 20,349 NIS (Twenty Thousand, Three
Hundred and Forty Nine New Israeli Shekels) equal to rent for leasing the “additional
area” for the first 3 (three) months of the “lease period” in addition to VAT
prescribed by law (hereinafter – “The Second Additional Bank Guarantee”). The validity
of the “second additional bank guarantee” will be for 9 (nine) months which will start
from the date of signing this addendum and will serve to guarantee payment in full of
the rent by the Tenant for the first quarter of the “lease period” of the “additional
area”. The bank charges and stamp duty involved in issuing the “second additional bank
guarantee” will apply and be paid in full by the Landlord in accordance with the bank’s
charges documents that will be issued to the Landlord by the Tenant.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 

	 	c.	 	It is hereby agreed that a breach of Section 10(a) and/or Section 10(b) above
will be considered a material breach of this addendum to the “primary contract”.

The Lease And Negating The Applicability Of The Tenants Protection Law With Respect To The
Lease

	 	 	 	 	 
	11.

	 	a.
	 	The Landlord hereby undertakes to lease to the Tenant the “additional area” after
completion of its construction and the Tenant, on its part, hereby undertakes to lease from
the Landlord the “additional area” and all this – by a lease pursuant to which the Tenants
Protection Law does not apply, for the lease period stipulated in this addendum and contingent
upon the terms set forth in this addendum and in the “primary contract”.

	 	b.	 	The parties declare that upon signing this addendum the construction of the
“Hermon Building”, the “additional area” and the “new premises” are still not
complete, that they constitute a “new building” as this phrase is defined in the
Tenants Protection Law (Consolidated Version) 5732-1972 whereby the construction
thereof will finally be completed only after signing this addendum and in any event
after 5728 (August 20, 1968) and that the “new premises” will be leased after this date
and therefore the foregoing Tenants Protection Law and any law amending it or repealing
it as well as any regulations and/or orders enacted and/or to be enacted pursuant
thereto, will not apply to the leasing of the “new premises” and the “additional area”
and the Tenant will not be protected pursuant to the provisions of the foregoing
Tenants Protection Law and its regulations nor will it assert any assertion pursuant
thereto.
	 
	 	c.	 	The Tenant hereby declares that it did not pay any key money for the
“additional area” and/or for the “new area” and/or in connection with the lease
subject-matter of this addendum, that it did not undertake to pay any key money for the
lease of the “additional area” and/or the “new premises”, that it did not contribute in
any way in the construction of the “additional area” and/or the premises and/or the
“new premises” and/or did not give any consideration for it and/or for any part of it
that can be construed as key money pursuant to the “law”, that it is aware that on the
day of signing this addendum the “new premises” are exclusively owned by the Landlord
and that no other entity or person other than the Landlord is entitled to possess it
and that the Tenants Protection Laws including but not limited to the “law” will not
grant any protection whatsoever as a protected tenant with respect to the leasing of
the “additional area” and/or the “premises” and/or the “new premises” pursuant to the
provisions of the “primary contract” and/or this addendum.
	 
	 	 	 	Additionally and to prevent any doubts it is hereby emphasized and agreed that the
investment, additional construction and improvements that are made to the “new
premises” will also not be considered as giving consideration to the Landlord that
could be construed as key money pursuant to the law even if they remain in the “new
premises” or any part thereof, after the Tenant vacates it.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 

	 	d.	 	The Tenant hereby explicitly declares that it is aware that this contract was
executed in accordance with Sections 10 and 14 of the “law” since the “new premises”
constitutes new property and/or vacated property and/or property that will be vacated
of any occupier other than the Landlord prior to the commencement of the lease
subject-matter of the “primary contract” and this addendum.
	 
	 	e.	 	It is hereby agreed that a breach of Section 11 above and/or a breach of any of
its sub-sections will be considered a material breach of this addendum and the “primary
contract”.

The Management Contract

	12.	 	Upon signing this addendum to the “primary contract” the Tenant undertakes to also sign “the
Management Agreement” relating to the “additional area” attached hereto to this addendum
as Appendix B and constituting a material and integral part hereof.

General

	 	 	 	 	 
	13.

	 	a.
	 	It is hereby emphasized and agreed between the parties that all the terms and
provisions of the “primary contract” – subject to the amendments specified in this addendum –
will also apply to the leasing of the “additional area” and the “new premises” as determined
and/or as modified and/or extended by this addendum to the “primary contract”.

	 	 	 	Likewise it is agreed that all the concepts and definitions referenced in this
addendum will assume the same meaning attributed to them in the “primary contract”
but all this provided that no other and/or contrary definition was attributed to
them in this addendum.

	 	b.	 	It is hereby agreed between the parties that a material breach of this addendum
to the “primary contract” and/or any one of its appendices, including but not limited
to the “management contract” attached hereto as Appendix B to this addendum
will be considered, for all senses and purposes also a material breach of the “primary
contract” itself.
	 
	 	c.	 	Any amendment of the terms and provisions in this addendum will only be
executed in writing and signed by both parties to this addendum.
	 
	 	 	 	Any notice in accordance with this addendum will only be executed in writing.
	 
	 	 	 	With respect to sending notices from one party to the other the parties will act in
accordance with the provisions of Section 39 of the “primary contract”.

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 

In Witness Hereof The Parties Have Hereto Set Their Hands In Writing: -

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Mellanox Technologies Ltd
	 
	 	Sha’ar Yokneam
	 	 	 	P.O. Box 86 Yokneam 20692
	 
	 	Limited Partnership
	 	 	 	Tel: 04-9593244, Fax: 04-9593245
	The Landlord:
	 	( — )
	 	The Tenant:
	 	( — )
	 
	 	 
	 	 	 	 
	 
	 	Sha’ar Yokneam
	 	 	 	Mellanox Technologies Ltd.
	 
	 	Registered Limited	 	 	 	 
	 
	 	Partnership	 	 	 	 

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnership

 

 

APPENDIX A-2

	 	 	 
	( — ) 

Mellanox Technologies Ltd

P.O. Box 86 Yokneam 20692

Tel: 04-9593244, Fax: 04-9593245
	 	( — )

Sha’ar Yokneam

Limited Partnershipexv10w10

 

Exhibit 10.10

MELLANOX TECHNOLOGIES, LTD.

GLOBAL SHARE INCENTIVE PLAN (2006)

     1. Name and Purpose.

          1.1 This plan, which has been adopted by the Board of Directors, and approved by the
shareholders, of Mellanox Technologies, Ltd., as amended from time to time, shall be known as the
Mellanox Technologies, Ltd. Global Share Incentive Plan (2006) (the “Plan”).

          1.2 The purposes of the Plan are to attract and retain the best available personnel
for positions of substantial responsibility, to provide additional incentive to Service Providers
of the Company and its affiliates and subsidiaries, if any, and to promote the Company’s business
by providing such individuals with opportunities to receive Awards pursuant to the Plan and to
strengthen the sense of common interest between such individuals and the Company’s shareholders.

          1.3 Awards granted under the Plan to Service Providers in various jurisdictions may
be subject to specific terms and conditions for such grants may be set forth in one or more
separate appendix to the Plan, as may be approved by the Board of Directors of the Company from
time to time.

     2. Definitions

          “Administrator” shall mean the Board of Directors or a Committee.

          “Appendix” shall mean any appendix to the Plan adopted by the Board of Directors containing
country-specific or other special terms relating to Awards including grants of restricted stock and
other equity-based Awards.

          “Award” shall mean a grant of Options, other equity-based awards granted in accordance with
the provisions of an Appendix, including a Performance-Based Award, or other allotment of Shares
hereunder. All Awards shall be confirmed by an Award Agreement, and subject to the terms and
conditions of such Award Agreement.

          “Award Agreement” shall mean a written instrument setting forth the terms applicable to a
particular Award.

          “Board of Directors” shall mean the board of directors of the Company.

          “Cause” shall have the meaning ascribed to such term or a similar term as set forth in the
Participant’s employment agreement or the agreement governing the provision of services by a
non-employee Service Provider, or, in the absence of such a definition: (i) conviction (or plea of
nolo contendere) of any felony or crime involving moral turpitude or affecting the Company; (ii)
repeated and unreasonable refusal to carry out a reasonable and lawful directive of the Company or
of Participant’s supervisor which involves the business of the Company or its affiliates and was
capable of being lawfully performed; (iii) fraud or embezzlement of funds of the Company or its
affiliates; (iv) any breach by a director of his / her fiduciary duties or duties of care towards
the Company; and (v) any disclosure of confidential information of the Company or breach of any
obligation not to compete with the Company or not to violate a restrictive covenant.

 

 

          “Change in Control” shall mean and includes each of the following:

               (a) A transaction or series of transactions (other than an offering of Shares to the general
public through a registration statement filed under the laws of any applicable jurisdiction)
whereby any person or related group of persons (other than the Company, any of its subsidiaries, an
employee benefit plan maintained by the Company or any of its subsidiaries or a person that, prior
to such transaction, directly or indirectly controls, is controlled by, or is under common control
with, the Company) directly or indirectly acquires beneficial ownership of securities of the
Company possessing more than 50% of the total combined voting power of the Company’s securities
outstanding immediately after such acquisition; or

               (b) During any period of two consecutive years, individuals who, at the beginning of such
period, constitute the Board of Directors together with any new director(s) (other than a director
designated by a person who shall have entered into an agreement with the Company to effect a
transaction described in Subsections (a) or (c) hereof) whose election by the Board of Directors or
nomination for election by the Company’s shareholders was approved by a vote of at least two thirds
of the directors then still in office who either were directors at the beginning of the two-year
period or whose election or nomination for election was previously so approved, cease for any
reason to constitute a majority thereof; or

               (c) The consummation by the Company (whether directly involving the Company or indirectly
involving the Company through one or more intermediaries) of (x) a merger, consolidation,
reorganization, or business combination or (y) a sale or other disposition of all or substantially
all of the Company’s assets in any single transaction or series of related transactions or (z) the
acquisition of assets or shares of another entity, in each case other than a transaction:

                    (i) Which results in the Company’s voting securities outstanding immediately before
the transaction continuing to represent (either by remaining outstanding or by being converted into
voting securities of the Company or the person that, as a result of the transaction, controls,
directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of
the Company’s assets or otherwise succeeds to the business of the Company (the Company or such
person, the “Successor Entity”)) directly or indirectly, at least a majority of the combined voting
power of the Successor Entity’s outstanding voting securities immediately after the transaction,
and

                    (ii) After which no person or group beneficially owns voting securities representing
50% or more of the combined voting power of the Successor Entity; provided, however, that no person
or group shall be treated for purposes of this Subsection (c)(ii) as beneficially owning 50% or
more of combined voting power of the Successor Entity solely as a result of the voting power held
in the Company prior to the consummation of the transaction; or

               (d) The Company’s shareholders approve a liquidation or dissolution of the Company.

          The Administrator shall have full and final authority, which shall be exercised in its
discretion, to determine conclusively whether a Change in Control of the Company has occurred
pursuant to the above definition, and the date of the occurrence of such Change in Control and any
incidental matters relating thereto.

          “ Code ” shall mean the U.S. Internal Revenue Code of 1986, as amended. Any
reference to any section of the Code shall also be a reference to any successor provision and any
Treasury Regulation promulgated thereunder.

2

 

          “Committee” shall mean the compensation committee or other committee as may be appointed and
maintained by the Board of Directors, in its discretion, to administer the Plan, to the extent
permissible under applicable law, as amended from time to time.

          “Company” shall mean Mellanox Technologies, Ltd., an Israeli company, and its successors and
assigns.

          “Companies Law” shall mean the Israeli Companies Law 5759-1999, as amended from time to time.

          “Consultant” shall mean any individual who (either directly or through his or her employer) is
an advisor or consultant to the Company or any affiliate thereof.

          “Corporate Charter” shall mean the Articles of Association of the Company, and any subsequent
amendments or replacements thereto.

          “Covered Employee” means an employee, including an officer, of the Company or any subsidiary
thereof who is, or could be, a “covered employee” within the meaning of Section 162(m) of the Code.

          “Disability” shall have the meaning ascribed to such term or a similar term in the
Participant’s employment agreement (where applicable), or in the absence of such a definition, the
inability of the Participant, in the opinion of a qualified physician acceptable to the Company, to
perform the major duties of the Participant’s position with the Company because of the sickness or
injury of the Participant for a consecutive period of 180 days.

          “Effective Date” shall have the meaning ascribed to it in Section 14.1 hereof.

          “Equity Restructuring” shall mean a non-reciprocal transaction between the Company and its
shareholders, such as a stock dividend, stock split, spin-off, rights offering or recapitalization
through a large, nonrecurring cash dividend, that affects the Shares (or other securities of the
Company) or the share price of Shares (or other securities) and causes a change in the per share
value of the Shares underlying outstanding Awards.

          “ Exchange Act” shall mean the U.S. Securities Exchange Act of
1934, as amended. Any references to any section of the Exchange Act shall also be a reference to
any successor provision.

          “Non-Employee Director” shall mean a member of the Board of Directors who is not an employee
of the Company or any of its affiliates.

          “Options” shall mean options to purchase Shares awarded under the Plan.

          “Participant” shall mean a recipient of an Award hereunder who executes an Award Agreement.

          “Performance-Based Award” means an Award granted to selected Covered Employees pursuant to
this Plan, including pursuant to the provisions of an Appendix, but which is subject to the terms
and conditions set forth in Section 10 hereof.

          “Performance Criteria” means the criteria that the Committee selects for purposes of
establishing the Performance Goal or Performance Goals for a Participant for a Performance Period.
The Performance Criteria that will be used to establish Performance Goals

3

 

are limited to the following: net earnings (either before or after interest, taxes,
depreciation and amortization), economic value-added, sales or revenue, net income (either before
or after taxes), operating earnings, cash flow (including, but not limited to, operating cash flow
and free cash flow), cash flow return on capital, return on net assets, return on stockholders’
equity, return on assets, return on capital, stockholder returns, return on sales, gross or net
profit margin, productivity, expense, margins, operating efficiency, customer satisfaction, working
capital, earnings per Share, price per Share, and market share, any of which may be measured either
in absolute terms or as compared to any incremental increase or as compared to results of a peer
group. The Committee shall define in an objective fashion the manner of calculating the
Performance Criteria it selects to use for such Performance Period for such Participant.

          “Performance Goals” means, for a Performance Period, the goals established in writing by the
Committee for the Performance Period based upon the Performance Criteria. Depending on the
Performance Criteria used to establish such Performance Goals, the Performance Goals may be
expressed in terms of overall Company performance or the performance of a division, business unit,
or an individual. The Committee, in its discretion, may, within the time prescribed by Section
162(m) of the Code, adjust or modify the calculation of Performance Goals for such Performance
Period in order to prevent the dilution or enlargement of the rights of Participants (a) in the
event of, or in anticipation of, any unusual or extraordinary corporate item, transaction, event,
or development, or (b) in recognition of, or in anticipation of, any other unusual or nonrecurring
events affecting the Company, or the financial statements of the Company, or in response to, or in
anticipation of, changes in applicable laws, regulations, accounting principles, or business
conditions.

          “Performance Period” means the one or more periods of time, which may be of varying and
overlapping durations, as the Committee may select, over which the attainment of one or more
Performance Goals will be measured for the purpose of determining a Participant’s right to, and the
payment of, a Performance-Based Award.

          “Prior Plans” shall mean the Company 1999 United State Equity Incentive Plan, Company 1999
Israeli Share Option Plan and Company 2003 Israeli Share Option Plan.

          “Qualified Performance-Based Compensation” means any compensation that is intended to qualify
as “qualified performance-based compensation” as described in Section 162(m)(4)(C) of the Code.

          “Service Provider” shall mean an employee, member of the Board of Directors, office holder or
Consultant of the Company or any affiliate thereof.

          “Shares” shall mean Ordinary Shares, nominal value NIS 0.01 per share, of the Company.

     3. Administration of the Plan.

          3.1 The Plan shall be administered by the Administrator. If the Administrator is a
Committee, such Committee shall consist of such number of members of the Board of Directors of the
Company (not less than two in number), as may be determined from time to time by the Board of
Directors. The Board of Directors shall appoint such members of the Committee, may from time to
time remove members from, or add members to, the Committee, and shall fill vacancies in the
Committee however caused.

          3.2 In order to comply with the requirements of Section 162(m) of the Code, Rule
16b-3 promulgated under the Exchange Act or to the extent required by any other applicable

4

 

rule or regulation, the Plan shall be administered jointly by the Board of Directors and a
Committee consisting solely of two or more members of the Board of Directors each of whom is an
“outside director,” within the meaning of Section 162(m) of the Code, a member of the Board of
Directors who qualifies as a “Non-Employee Director” as defined in Rule 16b-3(b)(3) under the
Exchange Act or any successor rule and an “independent director” under the NASDAQ rules (or other
principal securities market on which Shares are traded). Without limiting the application of this
Section 3.2, to the extent necessary to comply with the requirements of Section 162(m) of the Code
and Rule 16b-3 promulgated under the Exchange Act, Awards shall be granted by a Committee
consisting of members who satisfy the requirements specified in the foregoing sentence and shall be
ratified by the Board of Directors. Notwithstanding the foregoing, but subject to Section 4.1
hereof, the full Board of Directors, acting by a majority of its members in office, shall conduct
the general administration of the Plan with respect to all Awards granted to a member of the Board
of Directors who is not an employee of the Company or any affiliate thereof, and for purposes of
such Awards the term “Committee” as used in this Plan shall be deemed to refer to the Board of
Directors. In its sole discretion, the Board of Directors may at any time and from time to time
exercise any and all rights and duties of the Committee under the Plan except with respect to
matters which under Rule 16b-3 under the Exchange Act or Section 162(m) of the Code, or any
regulations or rules issued thereunder, are required to be determined in the sole discretion of the
Committee.

          3.3 The Committee, if appointed, shall select one of its members as its Chairman and
shall hold its meetings at such times and places as it shall determine. Actions at a meeting of
the Committee at which a majority of its members are present or acts approved in writing by all
members of the Committee, shall be the valid acts of the Committee. The Committee shall appoint a
Secretary, who shall keep records of its meetings and shall make such rules and regulations for the
conduct of its business and the implementation of the Plan, as it shall deem advisable, subject to
the directives of the Board of Directors and in accordance with applicable law.

          3.4 Subject to the general terms and conditions of the Plan, and in particular
Section 3.5 below, the Administrator shall have full authority in its discretion, from time to time
and at any time, to determine (i) eligible Participants, (ii) the number of Options or Shares to be
covered by each Award, (iii) the time or times at which the Award shall be granted, (iv) the
vesting schedule and other terms and conditions applying to Awards, (v) the form(s) of Award
Agreements, and (vi) any other matter which is necessary or desirable for, or incidental to, the
administration of the Plan. The Board of Directors may, in its sole discretion, delegate some or
all of the powers listed above to the Committee, to the extent permitted by the Companies Law, its
Corporate Charter or other applicable law, rules or regulations to which the Company is subject.

          3.5 In the event that the Administrator is a Committee, the Committee shall not be
entitled to grant Options to the Participants (unless permitted to do so by the Companies Law).
However, in the event that the Committee is authorized to do so by the Board of Directors, it may
issue Shares underlying Options which have been granted by the Board of Directors and duly
exercised pursuant to the provisions hereof, in accordance with Sections 112(a)(5) and 288 of the
Companies Law.

          3.6 No member of the Board of Directors or of the Committee shall be liable for any
action or determination made in good faith with respect to the Plan or any Award granted hereunder.
Subject to the Company’s decision and to all approvals legally required, each member of the Board
of Directors or the Committee shall be indemnified and held harmless by the Company against any
cost or expense (including counsel fees) reasonably incurred by him, or any liability (including
any sum paid in settlement of a claim with the approval of the Company) arising out of any act or
omission to act in connection with the Plan unless arising out of such

5

 

member’s own willful misconduct or bad faith, to the fullest extent permitted by applicable
law. Such indemnification shall be in addition to any rights of indemnification the member may have
as a director or otherwise under the Company’s Corporate Charter, any agreement, any vote of
shareholders or disinterested directors, any insurance policy or otherwise.

          3.7 The interpretation and construction by the Administrator of any provision of the
Plan or of any Option hereunder shall be final and conclusive. In the event that the Board of
Directors appoints a Committee, the interpretation and construction by the Committee of any
provision of the Plan or of any Option hereunder shall upon ratification by the Board of Directors,
be final and conclusive unless otherwise determined by the Board of Directors. To avoid doubt,
subject to Section 3.2 hereof, the Board of Directors may at any time exercise any powers of the
Administrator, notwithstanding the fact that a Committee has been appointed.

          3.8 The Administrator shall have the authority to adopt, alter and repeal such
administrative rules, guidelines and practices governing the Plan and perform all acts, including
the delegation of its responsibilities (to the extent permitted by applicable law and applicable
stock exchange rules), as it shall, from time to time, deem advisable; to construe and interpret
the terms and provisions of the Plan and any Award issued under the Plan (and any agreements
relating thereto); and to otherwise supervise the administration of the Plan. The Administrator
may correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any
agreement relating thereto in the manner and to the extent it shall deem necessary to effectuate
the purpose and intent of the Plan. Notwithstanding the foregoing, no action of the Administrator
under this Section 3.8 shall reduce the rights of any Participant without the Participant’s
consent.

          3.9 Without limiting the generality of the foregoing, the Administrator may adopt
special Appendices and/or guidelines and provisions for persons who are residing in or employed in,
or subject to, the taxes of, any domestic or foreign jurisdictions, to comply with applicable laws,
regulations, or accounting, listing or other rules with respect to such domestic or foreign
jurisdictions.

     4. Eligible Participants.

          4.1 No Award may be granted pursuant to the Plan to any person serving as a member
of the Committee or to any other member of the Board of Directors at the time of the grant, unless
such grant is approved in the manner prescribed for the approval of compensation of directors under
Section 273 of the Companies Law. To avoid doubt, such Awards require approval of the audit
committee of the Board of Directors, the Board of Directors and the shareholders of the Company.

          4.2 Subject to the limitation set forth in Sub-section 4.1 above and any restriction
imposed by applicable law, Awards may be granted to any Service Provider of the Company, whether or
not the Service Provider is a member of the Board of Directors or a member of the board of
directors of an affiliate of the Company. The grant of an Award to a Participant hereunder shall
neither entitle such Participant to receive an additional Award or participate in other incentive
plans of the Company, nor disqualify such Participant from receiving and additional Award or
participating in other incentive plans of the Company.

     5. Reserved Shares.

          5.1 Subject to Section 12.1 hereof, the aggregate number of Shares which may be
issued or transferred pursuant to Awards under the Plan shall be the sum of (i) six

6

 

million (6,000,000) Shares and (ii) any Shares which as of the Effective Date are available
for issuance under the Prior Plans and which following the Effective Date are not issued under the
Prior Plans (including Shares that that are subject to awards outstanding under the Prior Plans
that expire, are cancelled or otherwise terminate unexercised, or Shares that otherwise would have
reverted to the share reserve of the Prior Plans following the Effective Date). In addition,
subject to Section 12.1 hereof, the aggregate number of Shares available for issuance under the
Plan shall automatically increase each year during the term of the Plan commencing on the first day
of the Company’s 2008 fiscal year by a number equal to the lesser of (i) two percent (2%) of the
total number of Shares outstanding on a fully diluted basis on the date of the increase and (ii)
1,200,000 Shares. Notwithstanding the foregoing, the Board of Directors may act
prior to the first day of any fiscal year to provide that there shall be no increase in the share
reserve for such fiscal year or that the increase in the share reserve for such fiscal year shall
be a lesser number of Shares than would otherwise occur pursuant to the preceding sentence.
Anything to the contrary herein notwithstanding, the maximum aggregate number of Shares that may be
issued or transferred pursuant to Awards under the Plan during the term of the Plan shall not
exceed 27,079,533 Shares, subject to Section 12.1 hereof. Subject to Section 14.2 hereof, the Company
shall determine the number of Shares reserved hereunder from time to time, and such number may be
increased or decreased by the Company from time to time.

          5.2 Any Shares subject to an Award that shall for any reason terminate, expire or
otherwise lapse shall again be available for grant as Awards under the Plan. Additionally, any
Shares tendered or withheld to satisfy the grant or exercise price or tax withholding obligation
pursuant to any Award shall again be available for the grant of an Award pursuant to the Plan. To
the extent permitted by applicable law or any exchange rule, Shares issued in assumption of, or in
substitution for, any outstanding awards of any entity acquired in any form of combination by the
Company or any affiliate shall not be counted against Shares available for grant pursuant to this
Plan. Any Shares that remain unissued and are not subject to Awards at the termination of the Plan
shall cease to be reserved for purposes of the Plan. Until termination of the Plan the Company
shall at all times reserve a sufficient number of Shares to meet the requirements of the Plan.

          5.3 Notwithstanding any provision in the Plan to the contrary, and subject to
Section 12.1 hereof, the maximum number of Shares with respect to one or more Awards that may be
granted to any one Participant during any calendar year (measured from the date of any grant) shall
be four million (4,000,000) Shares.

     6. Award Agreement.

          6.1 The Board of Directors, and to the extent contemplated under Section 3.2 hereof,
a Committee and the Board of Directors, in their discretion may award to Participants Awards
available under the Plan. The terms of the Award will be set forth in the Award Agreement. The
date of grant of each Award shall be the date specified by the Board of Directors, and the
Committee, as applicable, at the time such award is made, or in the absence of such specification,
the date of approval of the award by the Board of Directors, and the Committee, as applicable.

          6.2 The Award Agreement shall state, inter alia, the number of Options or Shares
covered thereby, the type of Option or other Award, any special terms applying to such Award (if
any), including the terms of any country-specific or other Appendix, as determined by the Board of
Directors, and the Committee, as applicable.

7

 

     7. Option Prices.

     The exercise price for each Share to be issued upon exercise of an Option shall be such price
as is determined by the Board of Directors in its discretion, provided that the price per Share is
not less than the nominal value of each Share, and subject to any further restrictions set forth in
an applicable Appendix.

     8. Exercise Of Option.

          8.1 Options shall be exercisable pursuant to the terms under which they were awarded
and subject to the terms and conditions of the Plan and any applicable Appendix, as specified in
the Award Agreement.

          8.2 An Option, or any part thereof, shall be exercisable by the Participant’s
signing and returning to the Company at its principal office (and to the Trustee, where
applicable), a “Notice of Exercise” in such form and substance as may be prescribed by the
Administrator from time to time, together with full payment for the Shares underlying such Option.

          8.3 Each payment for Shares under an Option shall be in respect of a whole number of
Shares, shall be effected in (i) cash, (ii) by check payable to the order of the Company, (iii)
Shares held for such period of time as may be required by the Administrator in order to avoid
adverse accounting consequences and having a fair market value on the date of delivery equal to the
aggregate exercise price of the Option or exercised portion thereof, or (iv) such other method of
payment acceptable to the Company as determined by the Administrator, and shall be accompanied by a
notice stating the number of Shares being paid for thereby.

          8.4 Until the Shares are issued (as evidenced by the appropriate entry in the share
register of the Company or of a duly authorized transfer agent of the Company) a Participant shall
have no right to vote or right to receive dividends or any other rights as a shareholder shall
exist with respect to such Shares, notwithstanding the exercise of the Option. The Company shall
issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment
shall be made for a dividend or other right the record date for which is prior to the date the
Shares are issued, except as provided in Section 12.1 of the Plan.

          8.5 To the extent permitted by law, if the Shares are traded on a national
securities exchange, NASDAQ or quoted on a national quotation system or otherwise publicly traded
or quoted, payment for the Shares underlying an Option may be made all or in part by the delivery
(on a form prescribed by the Company) of an irrevocable direction to a securities broker approved
by the Company to sell Shares and to deliver all or part of the sales proceeds to the Company in
payment of the exercise price (or the relevant portion thereof, as applicable) and any withholding
taxes, or on such other terms and conditions as may be acceptable to the Administrator. No Shares
shall be issued until payment therefor, as provided herein, has been made or provided for.

     9. Cancellation and Re-Grant of Options

          9.1 The Administrator shall have the authority to effect, at any time and from time
to time, with the consent of a Participant whose rights are impaired or altered under an
outstanding Option, a reduction of the exercise price per Share of Shares subject to an outstanding
Option (a) to the then-current fair market value if the fair market value of the Shares has
declined since the date the Option was granted, (b) pursuant to an option exchange program,
including a

8

 

program pursuant to which an outstanding Option is cancelled and any of the following is
granted in substitution therefor (i) a new Option under the Plan or another equity plan of the
Company covering the same or a different number of Shares, (ii) another Award, (iii) cash, or (iv)
other valuable consideration (as determined by the Administrator, in its sole discretion), (c)
pursuant to any other action that is treated as a repricing under Generally Accepted Accounting
Principles.

          9.2 Shares subject to an Option canceled under this Section 9 shall continue to be
counted against the maximum award of Options permitted to be granted pursuant to Section 5.2
hereof. The repricing of an Option under this Section 9, resulting in a reduction of the exercise
price, shall be deemed to be a cancellation of the original Option and the grant of a substitute
Option; in the event of such repricing, both the original and the substituted Options shall be
counted against the maximum awards of Options permitted to be granted pursuant to Section 5.2
hereof. The provisions of this Section 9.2 shall be applicable only to the extent required by
Section 162(m) of the Code.

     10. Performance Based Awards

          10.1 Purpose. The purpose of this Section 10 is to provide the Committee the
ability to qualify Awards other than Options and that are granted pursuant to this Plan as
Qualified Performance-Based Compensation. If the Committee, in its discretion, decides to grant a
Performance-Based Award to a Covered Employee, the provisions of this Section 10 shall control over
any contrary provision contained in this Plan or an Appendix; provided, however, that the Committee
may in its discretion grant Awards to Covered Employees that are based on Performance Criteria or
Performance Goals but that do not satisfy the requirements of this Section 10.

          10.2
Applicability.  This Section 10 shall apply only to those Covered
Employees selected by the Committee to receive Performance-Based Awards. The designation of a
Covered Employee as a Participant for a Performance Period shall not in any manner entitle the
Participant to receive an Award for the period. Moreover, designation of a Covered Employee as a
Participant for a particular Performance Period shall not require designation of such Covered
Employee as a Participant in any subsequent Performance Period and designation of one Covered
Employee as a Participant shall not require designation of any other Covered Employees as a
Participant in such period or in any other period.

          10.3
Procedures with Respect to Performance-Based Awards.  To the extent
necessary to comply with the Qualified Performance-Based Compensation requirements of Section
162(m)(4)(C) of the Code, with respect to any Award granted under this Plan, including under an
Appendix, which may be granted to one or more Covered Employees, no later than ninety (90) days
following the commencement of any fiscal year in question or any other designated fiscal period or
period of service (or such other time as may be required or permitted by Section 162(m) of the
Code), the Committee shall, in writing, (a) designate one or more Covered Employees, (b) select the
Performance Criteria applicable to the Performance Period, (c) establish the Performance Goals, and
amounts of such Awards, as applicable, which may be earned for such Performance Period, and (d)
specify the relationship between Performance Criteria and the Performance Goals and the amounts of
such Awards, as applicable, to be earned by each Covered Employee for such Performance Period.
Following the completion of each Performance Period, the Committee shall certify in writing whether
the applicable Performance Goals have been achieved for such Performance Period. In determining
the amount earned by a Covered Employee, the Committee shall have the right to reduce or eliminate
(but not to increase) the amount payable at a given level of performance to take into account
additional factors that the Committee may deem relevant to the assessment of individual or
corporate performance for the Performance Period.

9

 

          10.4 Payment of Performance-Based Awards. Unless otherwise provided in the
applicable Award Agreement, a Participant must be employed by the Company or a subsidiary of the
Company on the day a Performance-Based Award for such Performance Period is paid to the
Participant. Furthermore, a Participant shall be eligible to receive payment pursuant to a
Performance-Based Award for a Performance Period only if the Performance Goals for such period are
achieved. In determining the amount earned under a Performance-Based Award, the Committee may
reduce or eliminate the amount of the Performance-Based Award earned for the Performance Period, if
in its sole and absolute discretion, such reduction or elimination is appropriate.

          10.5 Additional Limitations. Notwithstanding any other provision of the Plan, any
Award which is granted to a Covered Employee and is intended to constitute Qualified
Performance-Based Compensation shall be subject to any additional limitations set forth in Section
162(m) of the Code (including any amendment to Section 162(m) of the Code) or any regulations or
rulings issued thereunder that are requirements for qualification as qualified performance-based
compensation as described in Section 162(m)(4)(C) of the Code, and the Plan shall be deemed amended
to the extent necessary to conform to such requirements.

     11. Termination Of Relationship As Service Provider.

          11.1 Effect of Termination; Exercise After Termination. Unless otherwise determined
by the Administrator, if a Participant ceases to be a Service Provider, such Participant may
exercise any outstanding Options within such period of time as is specified in the Award Agreement
or the Plan to the extent that the Options are vested on the date of termination (but in no event
later than the expiration of the term of the Option as set forth in the Award Agreement). If, on
the date of termination, any Options or other Awards are unvested, the Shares covered by the
unvested portion of the Option or other Award shall revert to the Plan. If, after termination, the
Participant does not exercise the vested Options within the time specified in the Award Agreement
or the Plan, the Option shall terminate, and the Shares covered by such Option shall revert to the
Plan.

     In the absence of a provision specifying otherwise in the relevant Award Agreement, then:

               (a) in the event that the Participant ceases to be a Service Provider for any reason other
than termination for Cause as a result of the Participant’s death or Disability, the vested Options
shall remain exercisable for a period of three (3) months from the effective date of termination
of the Participant’s status as a Service Provider;

               (b) in the event that the Participant ceases to be a Service Provider for Cause, any
outstanding unexercised Option (whether vested or unvested) will immediately expire and terminate,
and the Participant shall not have any rights in connection with such Options.

               (c) in the event that the Participant ceases to be a Service Provider as a result of the
Participant’s Disability, the Option shall remain exercisable for twelve (12) months following the
Participant’s date of termination for Disability.

               (d) in the event that the Participant dies while a Service Provider, the Option shall remain
exercisable by the Participant’s estate or by a person who acquires the right to exercise the
Option by bequest or inheritance for twelve (12) months following the Participant’s date of death.

10

 

          11.2 Date of Termination. For purposes of the Plan and any Option or Option
Agreement, the date of termination (whether for Cause or otherwise) shall be the effective date of
termination of the Participant’s employment or engagement as a Service Provider.

          11.3 Leave of Absence. Unless the Administrator provides otherwise, vesting of
Options granted hereunder shall be suspended during any unpaid leave of absence. A Service
Provider shall not cease to be considered as such in the case of any (a) leave of absence approved
by the Company, or (b) transfers between locations of the Company or between the Company, and its
parent, subsidiary, affiliate, or any successor thereof; or (c) changes in status (employee to
member of the Board of Directors, employee to Consultant, etc.), provided that such change does not
affect the specific terms applying to the Service Provider’s Award.

     12. Change in Capital Structure.

     Upon the occurrence of any of the following described events, a Participant’s rights to
purchase Shares under the Plan shall be adjusted as hereinafter provided:

          12.1 Adjustments.

               (a) In the event of any dividend or other distribution, reorganization, merger, consolidation,
combination, repurchase, or exchange of Shares or other securities of the Company, or other change
in the corporate structure of the Company affecting the Shares (other than an Equity Restructuring)
occurs such that an adjustment is determined by the Administrator (in its sole and absolute
discretion) to be appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan, then the Administrator shall, in
such manner as it may deem equitable, adjust: (a) the aggregate number and kind of shares that may
be issued under the Plan (including, but not limited to, adjustments of the limitations in Section
5; (b) the terms and conditions of any outstanding Awards (including, without limitation, any
applicable performance targets or criteria with respect thereto); and (c) the grant or exercise
price per share for any outstanding Awards under the Plan.

               (b) In the event of any transaction or event described in Section 12.1(a) hereof or any
unusual or nonrecurring transactions or events affecting the Company, any affiliate of the Company,
or the financial statements of the Company or any affiliate, or of changes in applicable laws,
regulations or accounting principles, the Administrator, in its sole and absolute discretion, and
on such terms and conditions as it deems appropriate, either by the terms of the Award or by action
taken prior to the occurrence of such transaction or event and either automatically or upon the
Participant’s request, is hereby authorized to take any one or more of the following actions
whenever the Administrator determines that such action is appropriate in order to prevent dilution
or enlargement of the benefits or potential benefits intended to be made available under the Plan
or with respect to any Award under the Plan, to facilitate such transactions or events or to give
effect to such changes in laws, regulations or principles:

                    (i) To provide for either (A) termination of any such Award in exchange for an
amount of cash, if any, equal to the amount that would have been attained upon the exercise of such
Award or realization of the Participant’s rights (and, for the avoidance of doubt, if as of the
date of the occurrence of the transaction or event described in this Section 12.1(b), the
Administrator determines in good faith that no amount would have been attained upon the exercise of
such Award or realization of the Participant’s rights, then such Award may be terminated by the
Company without payment) or (B) the replacement of such Award with other rights or property
selected by the Administrator in its sole discretion;

11

 

                    (ii) To provide that such Award be assumed by the successor or survivor corporation,
or a parent or subsidiary thereof, or shall be substituted for by similar options, rights or awards
covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof,
with appropriate adjustments as to the number and kind of shares and prices;

                    (iii) To make adjustments in the number and type of Shares (or other securities or
property) subject to outstanding Awards, and/or in the terms and conditions of (including the grant
or exercise price), and the criteria included in, outstanding options, rights and awards and
options, rights and awards which may be granted in the future;

                    (iv) To provide that such Award shall be exercisable or payable or fully vested with
respect to all shares covered thereby, notwithstanding anything to the contrary in the Plan or the
applicable Award Agreement; and

                    (v) To provide that the Award cannot vest, be exercised or become payable after such
event.

               (c) In connection with the occurrence of any Equity Restructuring, and notwithstanding
anything to the contrary in Sections 12.1(a) or 12.1(b) hereof:

                    (i) The number and type of securities subject to each outstanding Award and the
exercise price or grant price thereof, if applicable, will be proportionately adjusted. The
adjustments provided under this Section 11.1(c) shall be nondiscretionary and shall be final and
binding on the affected Participant and the Company.

                    (ii) The Administrator shall make such proportionate adjustment, if any, as the
Administrator in its discretion may deem appropriate to reflect such Equity Restructuring with
respect to the aggregate number and type of securities that may be issued under the Plan
(including, but not limited to, adjustment of the limitations in Section 5).

          12.2 Change in Control.

               (a) Anything to the contrary in Section 12.1 hereof notwithstanding, in the event of a Change
in Control, the unexercised or restricted portion of each outstanding Award shall be assumed or an
equivalent Award or right substituted, by the successor corporation or an affiliate of the
successor corporation, as shall be determined by such entity, subject to the terms hereof. In the
event that the successor corporation or a parent or subsidiary of the successor corporation does
not provide for such an assumption or substitution of Awards (in circumstances in which the Company
is not the successor entity), all Awards shall become exercisable in full and all forfeiture
restrictions on such Awards shall lapse, provided that unless otherwise determined by the
Administrator, the exercise of all Options that otherwise would not have been exercisable and the
lapsing of all forfeiture restrictions that would not have otherwise lapsed in the absence of a
Change in Control, shall be contingent upon the actual consummation of the Change in Control.
Upon, or in anticipation of, a Change in Control, the Administrator may cause any and all Awards
outstanding hereunder to terminate at a specific time in the future, including but not limited to
the date of such Change in Control, and shall give each Participant the right to exercise such
Awards during a period of time as the Committee, in its sole and absolute discretion, shall
determine.

               (b) For the purposes of this Section 12.2, an Award shall be considered assumed if, following
a Change in Control, the option confers the right to purchase or receive, for each Share subject to
the Award immediately prior to the Change in Control, the

12

 

consideration (whether stock, cash, or other securities or property) received in the merger or
sale of assets by holders of Shares of the Company for each Share held on the effective date of the
Change in Control (and if holders were offered a choice of consideration, the type of consideration
determined by the Administrator, at its sole discretion); provided, however, that if the
consideration received in the Change in Control is not solely ordinary shares (or the equivalent)
of the successor corporation or its direct or indirect parent, the Administrator may, with the
consent of the successor corporation, provide for the per share consideration to be received upon
the exercise of the Option or upon the lapsing of the forfeiture restrictions to be solely ordinary
shares (or the equivalent) of the successor corporation or its direct or indirect parent equal in
fair market value to the per share consideration received by holders of Shares in the Change in
Control, as determined by the Administrator.

               (c) In the event that the Board of Directors determines in good faith that, in the context of
a Change in Control, certain Options have no monetary value and thus do not entitle the holders of
such Options to any consideration under the terms of the Change in Control, the Board of Directors
may determine that such Options shall terminate effective as of the effective date of the Change in
Control.

               (d) It is the intention that the Administrator’s authority to make determinations, adjustments
and clarifications in connection with the treatment of Awards shall be interpreted as widely as
possible, to allow the Administrator maximal power and flexibility to interpret and implement the
provisions of the Plan in the event of Change in Control.

     13. Non-Transferability of Options, Other Awards and Shares.

          13.1 Except as may be permitted under an applicable Appendix, no Option or other
Award may be transferred other than by will or by the laws of descent and distribution, and during
the Participant’s lifetime an Option may be exercised only by such Participant.

          13.2 Except as may be permitted under an applicable Appendix, Shares for which full
payment has not been made, may not be assigned, transferred, pledged or mortgaged, other than by
will or laws of descent and distribution. For avoidance of doubt, the foregoing shall not be
deemed to restrict the transfer of an Participant’s rights in respect of Options or Shares
purchasable pursuant to the exercise thereof upon the death of such Participant to such
Participant’s estate or other successors by operation of law or will, whose rights therein shall be
governed by Section 11.1(d) hereof, and as may otherwise be determined by the Administrator.

     14. Term And Amendment Of The Plan.

          14.1 The Plan shall become effective as of the Effective Date. The Effective Date
shall be the date immediately prior to the date that the Company’s Registration Statement on Form
S-1 in connection with the initial public offering of the Shares is declared effective by the U.S.
Securities and Exchange Commission, provided that the Plan has been approved by the Company’s
shareholders prior to such date. The Plan shall expire on the date which is ten (10) years from the
date of its adoption by the Board of Directors (except as to Options or other Awards outstanding on
that date).

          14.2 Notwithstanding any other provision of the Plan, the Board of Directors (or a
duly authorized Committee thereof) may at any time, and from time to time, amend, in whole or in
part, any or all of the provisions of the Plan (including any amendment deemed necessary to ensure
that the Company may comply with any regulatory requirement), or suspend or terminate it entirely,
retroactively or otherwise; provided, however, that (a) to the extent necessary and desirable to
comply with any applicable law, regulation, or stock exchange rule, or

13

 

as contemplated in any Appendix, the Company shall obtain shareholder approval of any Plan
amendment in such a manner and to such a degree as required, and (b) shareholder approval is
required for any amendment to the Plan that (i) increases the number of Shares available under the
Plan (other than any adjustment as provided by Section 12.1 hereof), or (ii) permits the
Administrator to extend the exercise period for an Option beyond ten years from the date of grant;
and provided further, however, that, except (x) to correct obvious drafting errors or as otherwise
required by law or (y) as specifically provided herein, the rights of a Participant with respect to
Awards granted prior to such amendment, suspension or termination, may not be reduced without the
consent of such Participant The Administrator may amend the terms of any Award theretofore
granted, prospectively or retroactively, but except (x) to correct obvious drafting errors or as
otherwise required by law or applicable accounting rules, or (y) as specifically provided herein,
no such amendment or other action by the Administrator shall reduce the rights of any Participant
without the Participant’s consent.

     15. Term Of Option.

     Anything herein to the contrary notwithstanding, but without derogating from the provisions of
Section 11 hereof, if any Option, or any part thereof, has not been exercised and the Shares
covered thereby not paid for within ten (10) years after the date on which the Option was granted,
as set forth in the Award Agreement (or any other period set forth in the instrument granting such
Option pursuant to Section 6 hereof), such Option, or such part thereof, and the right to acquire
such Shares shall terminate, all interests and rights of the Participant in and to the same shall
expire, and, in the event that in connection therewith any Shares are held in trust as aforesaid,
such trust shall expire.

     16. Continuance Of Engagement.

     Neither the Plan nor any offer of Shares or Awards to a Participant shall impose any
obligation on the Company or a related company thereof, to continue the employment or engagement of
any Participant as a Service Provider, and nothing in the Plan or in any Award granted pursuant
thereto shall confer upon any Participant any right to continue to serve as a Service Provider of
the Company or a related company thereof or restrict the right of the Company or a related company
thereof to terminate such employment or engagement at any time.

     17. Governing Law.

     The Plan and all instruments issued thereunder or in connection therewith, shall be governed
by, and interpreted in accordance with, the laws of the State of Israel.

     18. Application Of Funds.

     The proceeds received by the Company from the sale of Shares pursuant to Options granted under
the Plan will be used for general corporate purposes of the Company or any related company thereof.

     19. Taxes.

          19.1 Any tax consequences arising from the grant, vesting or exercise of any Award,
from the payment for Shares covered thereby, or from any other event or act (of the Company, and/or
its affiliates, or the Participant), hereunder shall be borne solely by the Participant. The
Company and/or its affiliates shall withhold taxes according to the requirements under the
applicable laws, rules, and regulations, including withholding taxes at source. Furthermore, the
Participant shall agree to indemnify the Company and/or its affiliates and hold

14

 

them harmless against and from any and all liability for any such tax or interest or penalty
thereon, including without limitation, liabilities relating to the necessity to withhold, or to
have withheld, any such tax from any payment made to the Participant. The Company or any of its
affiliates may make such provisions and take such steps as it may deem necessary or appropriate
for the withholding of all taxes required by law to be withheld with respect to Awards granted
under the Plan and the exercise thereof, including, but not limited, to (i) deducting the amount so
required to be withheld from any other amount (or Shares issuable) then or thereafter to be
provided to the Participant, including by deducting any such amount from a Participant’s salary or
other amounts payable to the Participant, to the maximum extent permitted under law and/or (ii)
requiring the Participant to pay to the Company or any of its affiliates the amount so required to
be withheld as a condition of the issuance, delivery, distribution or release of any Shares and/or
(iii) by causing the exercise and sale of any Awards or Shares held by on behalf of the Participant
to cover such liability, up to the amount required to satisfy minimum statutory withholding
requirements. In addition, the Participant will be required to pay any amount due in excess of the
tax withheld and transferred to the tax authorities, pursuant to applicable tax laws, regulations
and rules.

          19.2 The receipt of an Award and/or the acquisition of Shares issued upon the
exercise of the Options may result in tax consequences. The description of tax consequences set
forth in the Plan or any Appendix hereto does not purport to be complete, up to date or to take
into account any special circumstances relating to a Participant.

          19.3 THE PARTICIPANT IS ADVISED TO CONSULT WITH A TAX ADVISOR WITH RESPECT TO THE
TAX CONSEQUENCES OF RECEIVING OR EXERCISING ANY AWARD IN LIGHT OF HIS OR HER PARTICULAR
CIRCUMSTANCES.

     20. Conditions Upon Issuance Of Shares.

     Shares shall not be issued pursuant to an Award unless the issuance and delivery of such
Shares shall comply with applicable laws and shall be further subject to the approval of counsel
for the Company with respect to such compliance. The inability of the Company to obtain authority
from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to
be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of
any liability in respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

     21. Miscellaneous.

     Whenever applicable in the Plan, the singular and the plural, and the masculine, feminine and
neuter shall be freely interchangeable, as the context requires. The Section headings or titles
shall not in any way control the construction of the language herein, such headings or titles
having been inserted solely for the purpose of simplified reference. Words such as “herein”,
“hereof”, “hereto”, “hereinafter”, “hereby”, and “hereinabove” when used in the Plan refer to the
Plan as a whole, including any applicable Appendices, unless otherwise required by context.

*   *   *

15

 

APPENDIX – ISRAELI TAXPAYERS

MELLANOX TECHNOLOGIES, LTD.

GLOBAL SHARE INCENTIVE PLAN (2006) 

     1. Special Provisions for Israeli Tax Payers

          1.1 This Appendix (the “Appendix”) to the Mellanox Technologies, Ltd. Share Incentive Plan
(2006) (the “Plan”) is effective as of the date the Plan becomes effective (the “Effective Date”).

          1.2 The provisions specified hereunder apply only to persons who are deemed to be residents of
the State of Israel for tax purposes, or are otherwise subject to taxation in Israel with respect
to Awards.

          1.3 This Appendix applies with respect to Awards granted as Options or Shares under the Plan.
The purpose of this Appendix is to establish certain rules and limitations applicable to Options
and Shares that may be granted or issued under the Plan from time to time, in compliance with the
securities and other applicable laws currently in force in the State of Israel. Except as
otherwise provided by this Appendix, all grants made pursuant to this Appendix shall be governed by
the terms of the Plan. This Appendix is applicable only to grants made after the Effective Date.
This Appendix complies with, and is subject to the ITO and Section 102.

          1.4 The Plan and this Appendix shall be read together. In any case of contradiction, whether
explicit or implied, between the provisions of this Appendix and the Plan, the provisions of this
Appendix shall govern.

     2. Definitions

Capitalized terms not otherwise defined herein shall have the meaning assigned to them in the Plan.
The following additional definitions will apply to grants made pursuant to this Appendix:

          “3(i) Option” means an Option which is subject to taxation pursuant to Section 3(i) of the ITO
which has been granted to any person who is not an Eligible 102 Participant.

          “102 Capital Gains Track” means the tax alternative set forth in Section 102(b)(2) of the ITO
pursuant to which income resulting from the sale of Shares derived from Options is taxed as a
capital gain.

          “102 Capital Gains Track Grant” means a 102 Trustee Grant qualifying for the special tax
treatment under the 102 Capital Gains Track.

          “102 Ordinary Income Track” means the tax alternative set forth in Section 102(b)(1) of the
ITO pursuant to which income resulting from the sale of Stock derived from Options is taxed as
ordinary income.

 

 

          “102 Ordinary Income Track Grant” means a 102 Trustee Grant qualifying for the ordinary income
tax treatment under the 102 Ordinary Income Track.

          “102 Trustee Grant” means an Award of Options or Shares granted pursuant to Section 102(b) of
the ITO and held in trust by a Trustee for the benefit of the Participant, and includes both 102
Capital Gains Track Grants and 102 Ordinary Income Track Grants.

          “Affiliate” means any “employing company” within the meaning of Section 102(a) of the ITO.

          “Controlling Shareholder” as defined under Section 32(9) of the Ordinance, means an employee
who prior to the grant or as a result of the exercise of any Option, holds or would hold, directly
or indirectly, in his name or with a relative (as defined in the Ordinance) (i) 10% of the
outstanding shares of the Company, (ii) 10% of the voting power of the Company, (iii) the right to
hold or purchase 10% of the outstanding equity or voting power, (iv) the right to obtain 10% of the
“profit” of the Company (as defined in the Ordinance), or (v) the right to appoint a director of
the Company.

          “Election” means the Company’s choice of the type (as between capital gains track or ordinary
income track) of 102 Trustee Grants it will make under the Plan, as filed with the ITA.

          “Eligible 102 Participant” means a person who is employed by the Company or its Affiliates,
including an individual who is serving as a director or an office holder, who is not a Controlling
Shareholder.

          “Fair Market Value” shall mean with respect to 102 Capital Gains Track Grants only, for the
sole purpose of determining tax liability pursuant to Section 102(b)(3) of the ITO, if at the date
of grant the Company’s shares are listed on any established stock exchange or a national market
system or if the Company’s shares will be registered for trading within ninety (90) days following
the date of grant, the fair market value of the Shares at the date of grant shall be determined in
accordancewith the average value of the Company’s shares on the thirty (30) trading days preceding
the date of grant or on the thirty (30) trading days following the date of registration for
trading, as the case may be.

          “ITA” means the Israeli Tax Authorities.

          “ITO” means the Israeli Income Tax Ordinance (New Version) 1961 and the rules, regulations,
orders or procedures promulgated thereunder and any amendments thereto, including specifically the
Rules, all as may be amended from time to time.

          “Non-Trustee Grant” means an Award granted to an Eligible 102 Participant pursuant to Section
102(c) of the ITO and not held in trust by a Trustee.

2

 

          “Required Holding Period” means the requisite period prescribed by the ITO and the Rules, or
such other period as may be required by the ITA, with respect to 102 Trustee Grants, during which
Options or Shares granted by the Company must be held by the Trustee for the benefit of the person
to whom it was granted.

          “Rules” means the Income Tax Rules (Tax benefits in Stock Issuance to Employees) 5763-2003.

          “Section 102” shall mean the provisions of Section 102 of the ITO, as amended from time to
time, including by the Law Amending the Income Tax Ordinance (Number 132), 2002, effective as of
January 1, 2003 and by the Law Amending the Income Tax Ordinance (Number 147), 2005.

          “Shares” means Ordinary Shares, nominal value NIS 0.01 per share, of the Company, including
restricted or unrestricted Shares issued upon exercise of Options granted pursuant to the Plan and
this Appendix.

          “Trustee” means a person or entity designated by the Board of Directors to serve as a trustee
and approved by the ITA in accordance with the provisions of Section 102(a) of the ITO.

     3. Types of Awards and Section 102 Election

          3.1 Awards made pursuant to Section 102, whether as grants of Options or as issuances of
Shares under the Plan, shall be made pursuant to either (a) Section 102(b)(2) of the ITO as 102
Capital Gains Track Grants or (b) Section 102(b)(1) of the ITO as 102 Ordinary Income Track Grants.
The Company’s Election regarding the type of 102 Trustee Grant it chooses to make shall be filed
with the ITA. Once the Company has filed such Election, it may change the type of 102 Trustee Grant
that it chooses to make only after the passage of at least 12 months from the end of the calendar
year in which the first grant was made in accordance with the previous Election, in accordance with
Section 102. For the avoidance of doubt, such Election shall not prevent the Company from granting
Non-Trustee Grants to Eligible 102 Participants at any time.

          3.2 Eligible 102 Participants may receive only 102 Trustee Grants or Non-Trustee Grants under
this Appendix. Participants who are not Eligible 102 Participants may be granted only 3(i)
Options under this Appendix.

          3.3 No 102 Trustee Grants may be made effective pursuant to this Appendix until 30 days after
the requisite filings required by the ITO and the Rules have been made with the ITA.

          3.4 The option agreement or documents evidencing the Options granted or Shares issued pursuant
to the Plan and this Appendix shall indicate whether the grant is a 102 Trustee Grant, a
Non-Trustee Grant or a 3(i) Grant; and, if the grant is a 102 Trustee Grant, whether it is a 102
Capital Gains Track Grant or a 102 Ordinary Income Track Grant.

3

 

     4. Terms And Conditions Of 102 Trustee Options

          4.1 Each 102 Trustee Grant will be deemed granted on the date stated in a written notice by
the Company, provided that on or before such date (i) the Company has provided such notice to the
Trustee and (ii) the Participant has signed all documents required pursuant to this Section 4.

          4.2 Each 102 Trustee Grant granted to an Eligible 102 Participant and each certificate for
shares of Stock acquired pursuant to the exercise of a Option or issued directly as Shares shall be
issued to and registered in the name of a Trustee and shall be held in trust for the benefit of the
Participant for the Required Holding Period. After termination of the Required Holding Period, the
Trustee may release such Option and any such Shares, provided that (i) the Trustee has received an
acknowledgment from the Israeli Income Tax Authority that the Eligible 102 Participant has paid any
applicable tax due pursuant to the ITO or (ii) the Trustee and/or the Company or its Affiliate
withholds any applicable tax due pursuant to the ITO. The Trustee shall not release any 102 Trustee
Options or shares issued upon exercise of such Option prior to the full payment of the Eligible 102
Participant’s tax liabilities.

          4.3 Each 102 Trustee Grant (whether a 102 Capital Gains Track Grant or a 102 Ordinary Income
Track Grant, as applicable) shall be subject to the relevant terms of Section 102 and the ITO,
which shall be deemed an integral part of the 102 Trustee Option and shall prevail over any term
contained in the Plan, this Appendix or any agreement that is not consistent therewith. Any
provision of the ITO and any approvals by the Income Tax Commissioner not expressly specified in
this ISOP or Option Agreement which are necessary to receive or maintain any tax benefit pursuant
to the Section 102 shall be binding on the Eligible 102 Participant. The Trustee and the Eligible
102 Participant granted a 102 Trustee Grant shall comply with the ITO, and the terms and conditions
of the Trust Agreement entered into between the Company and the Trustee. For avoidance of doubt, it
is reiterated that compliance with the ITO specifically includes compliance with the Rules.
Further, the Eligible 102 Participant agrees to execute any and all documents which the Company or
the Trustee may reasonably determine to be necessary in order to comply with the provision of any
applicable law, and, particularly, Section 102.

          4.4 During the Required Holding Period, the Eligible 102 Participant shall not require the
Trustee to release or sell the Options or Shares and other shares received subsequently following
any realization of rights derived from Shares or Options (including stock dividends) to the
Eligible 102 Participant or to a third party, unless permitted to do so by applicable law.
Notwithstanding the foregoing, the Trustee may, pursuant to a written request and subject to
applicable law, release and transfer such Shares to a designated third party, provided that both of
the following conditions have been fulfilled prior to such transfer: (i) all taxes required to be
paid upon the release and transfer of the shares have been withheld for Transfer to the tax
authorities and (ii) the Trustee has received written confirmation from the Company that all
requirements for such release and transfer have been fulfilled according to the terms of the
Company’s corporate documents, the Plan, any applicable agreement and any applicable law. To
avoid doubt such sale or release during the Required Holding Period will result in different tax
ramifications to the

4

 

Eligible 102 Participant under Section 102 of the ITO and the Rules and/or any other
regulations or orders or procedures promulgated thereunder, which shall apply to and shall be borne
solely by such Eligible 102 Participant.

          4.5 In the event a stock dividend is declared on Shares which derive from Awards granted as
102 Trustee Grants, such dividend shall also be subject to the provisions of this Section 4 and the
Required Holding Period for such dividend shares shall be measured from the commencement of the
Required Holding Period for the Options or Shares with respect to which the dividend was declared.
In the event of a cash dividend on Shares, the Trustee shall transfer the dividend proceeds to the
Eligible 102 Participant after deduction of taxes and mandatory payments in compliance with
applicable withholding requirements.

          4.6 If an Option granted as a 102 Trustee Grant is exercised during the Required Holding
Period, the Shares issued upon such exercise shall be issued in the name of the Trustee for the
benefit of the Eligible 102 Participant. If such an Option is exercised after the Required Holding
Period ends, the Shares issued upon such exercise shall, at the election of the Eligible 102
Participant, either (i) be issued in the name of the Trustee, or (ii) be transferred to the
Eligible 102 Participant directly, provided that the Participant first complies with all applicable
provisions of the Plan.

          4.7 For as long as Shares are registered in the name of the Trustee for the benefit of a
Participant, the Trustee shall provide to the Participant prompt written notice of all shareholder
meetings or other communications to shareholders of the Company received by the Trustee, and if so
requested in writing by the Participant, the Trustee shall execute a proxy in a form acceptable to
the Company to enable the Participant to vote such Shares.

     5. Assignability

     As long as Options or Shares are held by the Trustee on behalf of the Eligible 102
Participant, all rights of the Eligible 102 Participant over the shares are personal, can not be
transferred, assigned, pledged or mortgaged, other than by will or laws of descent and
distribution.

     6. Tax Consequences

          6.1 Any tax consequences arising from the grant, vesting or exercise of any Award, from the
payment for Shares covered thereby, or from any other event or act (of the Company, and/or its
affiliates and/or the Trustee or the Participant), hereunder shall be borne solely by the
Participant. The Company and/or its affiliates and/or the Trustee shall withhold taxes according to
the requirements under the applicable laws, rules, and regulations, including withholding taxes at
source. Furthermore, the Participant shall agree to indemnify the Company and/or its affiliates
and/or the Trustee and hold them harmless against and from any and all liability for any such tax
or interest or penalty thereon, including without limitation, liabilities relating to the necessity
to withhold, or to have withheld, any such tax from any payment made to the Participant. The
Company an/or any of its affiliates and/or the Trustee may make such provisions and take such steps
as it may deem necessary

5

 

or appropriate for the withholding of all taxes required by law to be withheld with respect to
Awards granted under the Plan and the exercise thereof, including, but not limited, to (i)
deducting the amount so required to be withheld from any other amount (or Shares issuable) then or
thereafter to be provided to the Participant, including by deducting any such amount from a
Participant’s salary or other amounts payable to the Participant, to the maximum extent permitted
under law and/or (ii) requiring the Participant to pay to the Company or any of its affiliates the
amount so required to be withheld as a condition of the issuance, delivery, distribution or release
of any Shares and/or (iii) by causing the exercise and sale of any Options or Shares held by on
behalf of the Participant to cover such liability, up to the amount required to satisfy minimum
statutory withholding requirements. In addition, the Participant will be required to pay any amount
due in excess of the tax withheld and transferred to the tax authorities, pursuant to applicable
tax laws, regulations and rules.

          6.2 With respect to Non-Trustee Grants, if the Participant ceases to be employed by the
Company or any Affiliate, the Eligible 102 Participant shall extend to the Company and/or its
Affiliate a security or guarantee for the payment of tax due at the time of sale of Shares to the
satisfaction of the Company, all in accordance with the provisions of Section 102 of the ITO and
the Rules.

     7. Governing Law and Jurisdiction

     Notwithstanding any other provision of the Plan, with respect to Participants subject to this
Appendix, the Plan and all instruments issued thereunder or in connection therewith shall be
governed by, and interpreted in accordance with, the laws of the State of Israel applicable to
contracts made and to be performed therein.

*   *   *

6

 

MELLANOX TECHNOLOGIES, LTD.

GLOBAL SHARE INCENTIVE PLAN (2006)

APPENDIX – ISRAELI TAXPAYERS

OPTION GRANT NOTICE AND OPTION AGREEMENT

Mellanox Technologies, Ltd., a corporation organized under the laws of the State of Israel (the
“Company”), pursuant to its Global Share Incentive Plan (2006) and the Appendix thereto setting
forth the additional terms applicable to Participants who are Israeli Taxpayers (collectively
referred to as the “Plan,” except where the context otherwise requires), hereby grants to the
holder listed below (“Participant”), an option to purchase the number of ordinary shares of the
Company (“Shares”), set forth below (the “Option”). This Option is subject to all of the terms and
conditions set forth herein and in the Option Agreement attached hereto as Exhibit A (the
“Option Agreement”), and the Plan, which are incorporated herein by reference. Unless otherwise
defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant
Notice and the Option Agreement.

	 	 	 	 	 
	Participant:
	 	 	 	 
	 

	 	 

	 	 
	Grant Date:
	 	 	 	 
	 

	 	 

	 	 
	Vesting Commencement Date:
	 	 	 	 
	 

	 	 

	 	 
	Total Exercise Price:

	 	$	 	 
	 
	Total Number of
Shares Subject to
the Option:

	 	
Shares	 	 
	 
	Expiration Date:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 
	Type of Option:

	 	102 Capital Gains Track Option
	 
	 	 
	Vesting Schedule:

	 	The Option shall vest with respect to
twenty-five percent (25%) of the total number of
Shares subject to the Option on the first anniversary of
the Vesting Commencement Date, and with respect to an
additional 1/48th of the total number of Shares subject
to the Option on the corresponding day of each
consecutive month measured from the first anniversary of
the Vesting Commencement Date (or on the last day of a
month, to the extent such month does not have the
corresponding day), subject to Participant’s continued
status as a Service Provider on each applicable vesting
date, such that all Shares subject to the Option shall
be fully vested on the fourth anniversary of the Vesting
Commencement Date.
	 
	 	 
	 

	 	 

 

 

By his or her signature, the Participant agrees to be bound by the terms and conditions of the Plan
(including the Appendix for Israeli Taxpayers), the Option Agreement and this Grant Notice. The
Participant has reviewed the Option Agreement, the Plan, and this Grant Notice in their entirety,
has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and
fully understands all provisions of this Grant Notice, the Option Agreement, and the Plan.
Participant hereby agrees to accept as binding, conclusive and final all decisions or
interpretations of the Administrator upon any questions arising under the Plan, or relating to the
Option.

Participant and the Company further agree that the Options are granted under and governed by
Section 102(b)(2) of the Income Tax Ordinance (New Version) – 1961 and the Rules promulgated in
connection therewith and the Trust Agreement, a copy of which has been provided to Participant or
made available for his/her review. Furthermore, by Participant’s signature below, Participant
agrees that the Options will be issued to the Trustee to hold on Participant’s behalf, pursuant to
the terms of the ITO, the Rules and the Trust Agreement. Participant confirms that he is familiar
with the terms and provisions of Section 102 of the ITO, particularly the Capital Gains Track
described in subsection (b)(2) thereof, and agrees that he will not require the Trustee to release
the Options or Shares to him, or to sell the Options or Shares to a third party, during the
Required Holding Period, unless permitted to do so by applicable law.

	 	 	 	 	 	 	 	 	 
	MELLANOX TECHNOLOGIES, LTD.

	 	PARTICIPANT	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	Print Name:

	 	 	 	Print Name:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	Title:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
	Address:

	 	 	 	Address:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	 
	 

	 	 

	 	 	 	 

	 	 

 

 

EXHIBIT A

TO OPTION GRANT NOTICE

OPTION AGREEMENT

FOR OPTIONS GRANTED UNDER SECTION 102(b)(2)

OF THE ISRAELI INCOME TAX ORDINANCE

TO EMPLOYEES, OFFICERS OR DIRECTORS

AS 102 CAPITAL GAINS TRACK OPTIONS

     Pursuant to the Option Grant Notice (the “Grant Notice”) to which this Option Agreement (this
“Agreement”) is attached, Mellanox Technologies, Ltd., a corporation organized under the laws of
the State of Israel (the “Company”), has granted to the Participant an option under the Company’s
Global Share Incentive Plan (2006) and the Appendix thereto setting forth the additional terms
applicable to Participants who are Israeli Taxpayers (collectively referred to herein as the
“Plan,” unless context otherwise requires) to purchase the number of Shares indicated in the Grant
Notice.

     Unless otherwise defined herein, capitalized terms used in this Agreement shall have the same
meanings as ascribed to them in the Plan.

1. Grant of Options.

     The Board of Directors hereby grants to the Participant, Options to purchase the number of
Shares set forth in the Grant Notice, at the exercise price per Share set forth in the Grant Notice
(the “Exercise Price”), and subject to the terms and conditions of Section 102(b)(2) of the Income
Tax Ordinance (New Version) — 1961, the Plan, which is incorporated herein by reference, and the
Trust Agreement, entered into between the Company and ESOP Trust Company (the “Trustee”). The
Options are granted as a 102 Capital Gains Track Grant. In the event of a conflict between the
terms and conditions of the Plan and this Agreement, the terms and conditions of the Plan shall
prevail. However, the Grant Notice sets out specific terms for the Participant hereunder, and will
prevail over more general terms in the Plan and/or this Agreement, if any, or in the event of a
conflict between them.

2. Issuance of Options.

          2.1 The Options will be registered in the name of the Trustee as required by law to qualify
under Section 102, for the benefit of the Participant. Participant shall comply with the ITO, the
Rules, and the terms and conditions of the Trust Agreement entered into between the Company and the
Trustee.

          2.2 The Trustee will hold the Options or the Shares to be issued upon exercise of the Options
for the Required Holding Period, as set forth in the Plan.

          2.3 The Participant hereby undertakes to release the Trustee from any liability in respect of
any action or decision duly taken and bona fide executed in relation to the Plan, or any Option or
Share granted to him thereunder.

A-1

 

          2.4 The Participant hereby confirms that he shall execute any and all documents which the
Company or the Trustee may reasonably determine to be necessary in order to comply with the ITO and
particularly the Rules.

3. Non-Transferability of Options.

     The Options may not be transferred in any manner other than by will or the laws of descent or
distribution and may be exercised during the lifetime of the Participant, by the Participant only.
The transfer of the Options is further limited as set forth in the Plan.

4. Period of Exercise.

          4.1 Term of Options. The Options may be exercised in whole or in part once vested at any time
for a period of ten (10) years from the Grant Date, as set forth in the Grant Notice (the “Grant
Date”), subject to Section 4.2 below. The Grant Date, the dates at which the Options vest and the
dates at which they are exercisable are set out in the Grant Notice.

          4.2 Termination of Options. Options shall terminate as set forth in the Plan. Options may be
exercised following termination of Participant’s relation as a Service Provider solely in
accordance with the provisions of Section 10 of the Plan, unless otherwise explicitly stated in the
Grant Notice.

5. Exercise of Option.

          5.1 Manner of Exercise. The Option, or any exercisable portion thereof, may be exercised
solely by delivery to the Secretary of the Company (or any third party administrator or other
person or entity designated by the Company) of all of the following prior to the time when the
Option or such portion thereof becomes unexercisable in accordance with the terms of the Plan:

               (a) A “Notice of Exercise,” in the form attached hereto as Annex A, or in such other form as
the Administrator and /or the Trustee may from time to time prescribe, stating that the Option or
portion thereof is thereby exercised, such notice complying with all applicable rules established
by the Administrator;

               (b) The receipt by the Company of full payment for the Shares with respect to which the Option
or portion thereof is exercised, including payment of any applicable withholding tax, which may be
in one or more of the forms of consideration permitted under Section 5.3 hereof;

               (c) Any other written representations as may be required in the Administrator’s reasonable
discretion to evidence compliance with the U.S. Securities Act of 1933, as amended (the “Securities
Act”), or any other applicable law rule, or regulation; and

A-2

 

               (d) In the event the Option or portion thereof shall be exercised by any person or persons
other than the Participant, appropriate proof of the right of such person or persons to exercise
the Option.

     Notwithstanding any of the foregoing, the Company shall have the right to specify all
conditions of the manner of exercise, which conditions may vary by country and which may be subject
to change from time to time.

          5.2 Partial Exercise. Any exercisable portion of the Option or the entire Option, if then
wholly exercisable, may be exercised in whole or in part at any time prior to the time when the
Option or portion thereof becomes unexercisable in accordance with its terms.

          5.3 Method of Payment. Payment of the exercise price shall be by any of the following, or a
combination thereof, at the election of the Participant:

               (a) Cash;

               (b) Check;

               (c) With the consent of the Administrator, delivery of a notice that the Participant has
placed a market sell order with a broker with respect to Shares then issuable upon exercise of the
Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of
the sale to the Company in satisfaction of the aggregate exercise price; provided, that payment of
such proceeds is then made to the Company upon settlement of such sale; or

               (d) With the consent of the Administrator, property of any kind which constitutes good and
valuable consideration.

          5.4 Execution of Additional Documents. In order to issue Shares upon the exercise of any of
the Options, the Participant hereby agrees to sign any and all documents required by law and/or the
Company’s Corporate Charter and/or the Trustee.

          5.5 No Recision. After a Notice of Exercise has been delivered to the Company it may not be
rescinded or revised by the Participant.

          5.6 Notice to Trustee. The Company will notify the Trustee of any exercise of Options as set
forth in the Notice of Exercise. If such notification is delivered during the Required Holding
Period, the Shares issued upon the exercise of the Options shall be issued in the name of the
Trustee, and held in trust on the Participant’s behalf by the Trustee. In the event that such
notification is delivered after the end of the Required Holding Period, the Shares issued upon the
exercise of the Options shall either (i) be issued in the name of the Trustee, subject to the
Trustee’s prior written consent, or (ii) be transferred to the Participant directly, provided that
the Participant first complies with the provisions of Section 7 below. In the event that the
Participant elects to have the Shares transferred to the Participant without selling such Shares,
the Participant shall become liable to pay taxes immediately in accordance with the provisions of
the ITO.

A-3

 

          5.7 Conditions to Issuance of Share Certificates. The Shares deliverable upon the exercise of
the Option, or any portion thereof, may be either previously authorized but unissued Shares or
issued Shares which have then been reacquired by the Company. Such Shares shall be fully paid and
nonassessable. The Company shall not be required to issue or deliver any Shares purchased upon the
exercise of the Option or portion thereof prior to fulfillment of all of the following conditions:

          (a) The admission of such Shares to listing on all stock exchanges on which such Shares are
then listed;

          (b) The completion of any registration or other qualification of such Shares under any state
or federal law or under rulings or regulations of the U.S. Securities and Exchange Commission or of
any other governmental regulatory body, which the Administrator shall, in its absolute discretion,
deem necessary or advisable;

          (c) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Administrator shall, in its absolute discretion, determine to be necessary or
advisable;

          (d) The receipt by the Company of full payment for such Shares, including payment of any
applicable withholding tax, which may be in one or more of the forms of consideration permitted
under Section 5.3 hereof; and

          (e) The lapse of such reasonable period of time following the exercise of the Option as the
Administrator may from time to time establish for reasons of administrative convenience.

          5.8 Rights as Shareholder. The holder of the Option shall not be, nor have any of the rights
or privileges of, a shareholder of the Company in respect of any Shares purchasable upon the
exercise of any part of the Option unless and until such Shares shall have been issued by the
Company to such holder (as evidenced by the appropriate entry on the books of the Company or of a
duly authorized transfer agent of the Company). No adjustment will be made for a dividend or other
right for which the record date is prior to the date the Shares are issued, except as provided in
Section 12.1 of the Plan.

6. Taxes.

          6.1 Any tax consequences arising from the grant or exercise of any Option, from the payment
for Shares covered thereby, or from any other event or act (of the Company, and/or its Affiliates,
and the Trustee or the Participant) relating to the Options or Shares issued upon exercise thereof,
shall be borne solely by the Participant, with the exception of taxes imposed upon the Company or
its Affiliate by law, such as the employer’s component of payments to the National Insurance
Institute. The Company and/or its Affiliates, and/or the Trustee shall withhold taxes according to
the requirements under the applicable laws, rules, and regulations, including withholding taxes at
source. Furthermore, the Participant agrees to indemnify the Company and/or its Affiliates and/or

A-4

 

the Trustee and hold them harmless against and from any and all liability for any such tax or
interest or penalty thereon, including without limitation, liabilities relating to the necessity to
withhold, or to have withheld, any such tax from any payment made to the Participant for which the
Participant is responsible. The Company or any of its Affiliates and the Trustee may make such
provisions and take such steps as it/they may deem necessary or appropriate for the withholding of
all taxes required by law to be withheld with respect to Options granted under the Plan and the
exercise thereof, including, but not limited, to (i) deducting the amount so required to be
withheld from any other amount then or thereafter payable to a Participant, including by deducting
any such amount from a Participant’s salary or other amounts payable to the Participant, to the
maximum extent permitted under law and/or (ii) requiring a Participant to pay to the Company or any
of its Affiliates the amount so required to be withheld as a condition of the issuance, delivery,
distribution or release of any Shares and/or (iii) by causing the exercise and sale of any Options
or Shares held by on behalf of the Participant to cover such liability up to the amount required to
satisfy minimum statutory withholding requirements. In addition, the Participant will be required
to pay any amount that exceeds the tax to be withheld and transferred to the tax authorities,
pursuant to applicable Israeli tax regulations.

          6.2 THE PARTICIPANT IS ADVISED TO CONSULT WITH A TAX ADVISOR WITH RESPECT TO THE TAX
CONSEQUENCES OF RECEIVING OR EXERCISING THE OPTIONS.

7. Adjustments upon Certain Transactions 

In the event of a Transaction, the provisions of Section 12.2 of the Plan will apply, unless
otherwise explicitly provided in the Grant Notice.

8. Miscellaneous.

          8.1 Continuance of Employment. Participant acknowledges and agrees that the vesting of Shares
pursuant to the vesting schedule hereof is earned only by continuing as a Service Provider at the
will of the Company (or its Affiliate) (not through the act of being hired, being granted this
Option or acquiring Shares hereunder). Participant further acknowledges and agrees that in the
event that Participant ceases to be a Service Provider, the unvested portion of his Options shall
not vest and shall not become exercisable. Participant further acknowledges and agrees that this
Agreement, the transactions contemplated hereunder and the vesting schedule set forth herein do not
constitute an express or implied promise of continued engagement as a Service Provider for the
vesting period, for any period, or at all, shall not interfere in any way with Participant’s right
or the right of the Company or its Affiliate to terminate Participant’s relationship as a Service
Provider at any time, with or without cause, and shall not constitute an express or implied promise
or obligation of the Company to grant additional Options to Participant in the future.

          8.2 Governing Law. The laws of the State of Israel shall govern the interpretation, validity,
administration, enforcement and performance of the terms of this

A-5

 

Agreement regardless of the law that might be applied under principles of conflicts of laws.

          8.3 Entire Agreement. This Agreement, together with the Grant Notice, the Plan and the Trust
Agreement, constitutes the entire agreement between the parties hereto and supersedes all prior
agreements, understandings and arrangements, oral or written, between the parties hereto with
respect to the subject matter hereof. No agreement or representations, oral or otherwise, express
or implied, with respect to the subject matter hereof have been made by either party which are not
expressly set forth in this Agreement, the Grant Notice or the Plan.

          8.4 Successors and Assigns. The Company may assign any of its rights under this Agreement to
single or multiple assignees, and this Agreement shall inure to the benefit of the successors and
assigns of the Company. Subject to the restrictions on transfer herein set forth in Section 3
hereof, this Agreement shall be binding upon Participant and his or her heirs, executors,
administrators, successors and assigns.

          8.5 Administration. The Administrator shall have the power to interpret the Plan and this
Agreement and to adopt such rules for the administration, interpretation and application of the
Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions
taken and all interpretations and determinations made by the Administrator in good faith shall be
final and binding upon Participant, the Company and all other interested persons. No member of the
Committee or the Board of Directors shall be personally liable for any action, determination or
interpretation made in good faith with respect to the Plan, this Agreement or the Option.

          8.6 Adjustments. The Participant acknowledges that the Option is subject to modification and
termination in certain events as provided in this Agreement and Section 12 of the Plan.

          8.7 Notices. Any notice to be given under the terms of this Agreement to the Company shall be
addressed to the Company in care of the Secretary of the Company at the address given beneath the
signature of the Company’s authorized officer on the Grant Notice, and any notice to be given to
Participant shall be addressed to Participant at the address given beneath Participant’s signature
on the Grant Notice. By a notice given pursuant to this Section 8.7, either party may hereafter
designate a different address for notices to be given to that party. Any notice which is required
to be given to Participant shall, if Participant is then deceased, be given to the person entitled
to exercise his or her Option by written notice under this Section 8.7. Any notice shall be deemed
duly given when sent via e-mail or when sent by certified mail (return receipt requested) and
deposited (with postage prepaid) in a post office or branch post
office regularly maintained by The Israel Post Authority.

          8.8 Titles. Titles are provided herein for convenience only and are not to serve as a basis
for interpretation or construction of this Agreement.

A-6

 

          8.9 Conformity to Securities Laws. The Participant acknowledges that the Plan and this
Agreement are intended to conform to the extent necessary with all provisions of the Securities Act
and the Exchange Act and any and all regulations and rules promulgated by the U.S. Securities and
Exchange Commission thereunder, Israel and state securities laws and regulations. Notwithstanding
anything herein to the contrary, and the Plan shall be administered, and the Option is granted and
may be exercised, only in such a manner as to conform to such laws, rules and regulations. To the
extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the
extent necessary to conform to such laws, rules and regulations.

          8.10 Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of the
Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the
Option and this Agreement shall be subject to any additional limitations set forth in any
applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule
16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To
the extent permitted by applicable law, this Agreement shall be deemed amended to the extent
necessary to conform to such applicable exemptive rule.

          8.11 Amendments, Suspension and Termination. To the extent permitted by the Plan, this
Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any
time or from time to time by the Administrator, provided, that, except as may otherwise be provided
by the Plan, no amendment, modification, suspension or termination of this Agreement shall reduce
the rights of a Participant with respect to the Option without the prior written consent of the
Participant.

*   *   *

A-7

 

By the signature of the Participant and the signature of the Company’s representative below,
Participant and the Company agree that the Options are granted under and governed by (i) this
Agreement, (ii) the Plan (including the Appendix for Israeli Taxpayers), a copy of which has been
provided to Participant or made available for his/her review, (iii) Section 102(b)(2) of the Income
Tax Ordinance (New Version) – 1961 and the Rules promulgated in connection therewith, and (iv) the
Trust Agreement, a copy of which has been provided to Participant or made available for his/her
review. Furthermore, by Participant’s signature below, Participant agrees that the Options will be
issued to the Trustee to hold on Participant’s behalf, pursuant to the terms of the ITO, the Rules
and the Trust Agreement.

In addition, by his signature below, Participant confirms that he is familiar with the terms and
provisions of Section 102 of the ITO, particularly the Capital Gains Track described in subsection
(b)(2) thereof, and agrees that he will not require the Trustee to release the Options or Shares
to him, or to sell the Options or Shares to a third party, during the Required Holding Period,
unless permitted to do so by applicable law.

     In Witness Whereof, the Company has caused this Agreement to be executed by its duly
authorized officer and the Participant has executed this Agreement as of the Grant Date.

	 	 	 	 	 	 	 	 	 
	Mellanox Technologies, Ltd. 	 	 	 	Participant	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 
	Name:
	 	 	 	 	 	 	 	 
	Title:

	 	 

	 	 
	 	 

	 	 
	 

	 	 

	 	 
	 	 

	 	 

A-8

 

ANNEX A

EXERCISE NOTICE

Mellanox Technologies Ltd.

Attention: [Chief Financial Officer]

     1. Option. I have been granted options (the “Option”) to purchase ordinary shares
(the “Shares”) of Mellanox Technologies Ltd. (the “Company”) pursuant to the Company’s Global Share
Incentive Plan (2006) and the Appendix thereto for Israeli Taxpayers (the “Plan”), the Grant Notice
(the “Notice”) and Option Agreement (the “Option Agreement”), as follows:

	 	 	 	 	 
	 

	 	Date of Option Grant:	 	 
	 
	 	 	 	 
	 

	 	Number of Option Shares:	 	 
	 
	 	 	 	 
	 

	 	Exercise Price Per Share:
	 	US$

     2. Exercise of Option. I hereby elect to exercise the Option to purchase the
following number of Shares, all of which are Vested Shares in accordance with the Notice and the
Option Agreement:

	 	 	 	 	 
	 

	 	Total Shares Purchased:	 	 
	 
	 	 	 	 
	 

	 	Total Exercise Price (Total Shares X Price Per Share):
	 	US$

     3. Payments. Enclosed is the payment in full of the total exercise price for the
Shares in the following form(s), as authorized by my Option Agreement:

	 	 	 	 	 
	 

	 	Cash:
	 	US$/NIS
	 
	 	 	 	 
	 

	 	Check:
	 	US$/NIS
	 

	 	 	 	Circle the appropriate currency of actual payment

     4. Tax Withholding. The Participant explicitly acknowledges Section 6 of the
Option Agreement, with respect to its bearing of any tax consequences in connection to the Option,
and the exercise thereof, and without limitation hereby authorizes payroll withholding and
otherwise will make adequate provision for all appliable tax withholding

ANNEX-1

 

obligations of the Company, if any, in connection with the Option, all as more completely
described in the Plan and the Option Agreement.

     5. Participant Information.

     Participant’s address is:

     Participant’s ID Number is:

     6. Binding Effect. I agree that the Shares are being acquired in accordance with and
subject to the terms, provisions and conditions of the Plan and the Option Agreement and the Trust
Agreement between the Company and the Trustee, to all of which I hereby expressly assent. This
Agreement shall inure to the benefit of and be binding upon my heirs, executors, administrators,
successors and assigns.

I ACKNOWLEDGE THAT THE TRANSFER OF THE SHARES IS ALSO SUBJECT TO THE APPLICABLE RESTRICTIONS
PROVIDED BY THE PLAN, AND PARTICULARLY THOSE RESTRICTIONS IMPOSED IN THE FRAMEWORK OF AMENDED
SECTION 102(B)(2) OF THE ISRAELI TAX ORDINANCE.

     I understand that I am purchasing the Shares pursuant to the terms of the Plan, the Grant
Notice and the Option Agreement, copies of which I have received and carefully read and understand.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Signature)	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Print Name	 	 
	 
	 	 	 	 	 	 
	 

	 	Dated:	 	 	 	 

	 	 	 	 	 
	Receipt of the above is hereby acknowledged.

MELLANOX TECHNOLOGIES LTD.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 

ANNEX-2

 

APPENDIX – U.S. TAXPAYERS

MELLANOX TECHNOLOGIES, LTD.

GLOBAL SHARE INCENTIVE PLAN (2006)

     1. Special Provisions for Persons who are U.S. Taxpayers.

          1.1 This Appendix (the “Appendix”) to the Mellanox Technologies, Ltd. Global Share Incentive
Plan (2006) (the “Plan”) is effective as of the date that the Plan becomes effective (the
“Effective Date”).

          1.2 The provisions specified hereunder apply only to persons who are subject to U.S. federal
income tax (any such person, a “U.S. Taxpayer”).

          1.3 This Appendix applies with respect to Awards granted under the Plan. The purpose of this
Appendix is to establish certain rules and limitations applicable to Awards that may be granted or
issued under the Plan from time to time, in compliance with applicable tax, securities and other
applicable laws currently in force. Except as otherwise provided by this Appendix, all grants made
pursuant to this Appendix shall be governed by the terms of the Plan (including, without
limitation, its provisions regarding adjustments). This Appendix is applicable only to grants made
after the Effective Date.

          1.4 The Plan and this Appendix shall be read together. In any case of an irreconcilable
contradiction (as determined by the Administrator) between the provisions of this Appendix and the
Plan, the provisions of the Plan shall govern unless expressly stated otherwise in this Appendix.

          1.5 The Plan and this Appendix shall be submitted to the Company’s shareholders for approval
within twelve (12) months after the Effective Date.

     2. Definitions.

     Capitalized terms not otherwise defined herein shall have the meaning assigned to them in the
Plan. The following additional definitions will apply to grants made pursuant to this Appendix:

          “Award” means an Option, a Restricted Stock award, a Restricted Stock Unit award or other
equity-based awards granted to a Participant pursuant to this Appendix and the Plan, or other
allotment of Shares under the Plan and this Appendix.

          “Disability” means, with respect to Incentive Stock Options, a “permanent and total
disability” within the meaning of Section 22(e)(3) of the Code.

          “Fair Market Value” means, for purposes of this Appendix, unless otherwise required by any
applicable provision of the Code or any regulations issued thereunder, as of any date and except as
provided below, (a) if the Shares are listed on any established stock exchange or a national market
system, the closing sales price for such Shares (or the closing bid, if no sales were reported) as
quoted on such exchange or

 

 

system for such date, or if no bids or sales were reported for such date, then the closing
sales price (or the closing bid, if no sales were reported) on the trading date immediately prior
to such date during which a bid or sale occurred, in each case, as reported in The Wall Street
Journal or such other source as the Administrator deems reliable; (b) if the Shares are regularly
quoted by a recognized securities dealer but selling prices are not reported, the mean of the
closing bid and asked prices for the Shares on such date, or if no closing bid and asked prices
were reported for such date, the date immediately prior to such date during which closing bid and
asked prices were quoted for the Shares, in each case, as reported in The Wall Street Journal or
such other source as the Administrator deems reliable; or (c) in the absence of an established
market for the Shares, the Fair Market Value shall be determined in good faith by the
Administrator. Notwithstanding any provision herein to the contrary, with respect to Non-Qualified
Stock Options, the “Fair Market Value” of the Shares shall be determined in a manner that satisfies
the applicable requirements of Code Section 409A, and with respect to Incentive Stock Options, such
Fair Market Value shall be determined in a manner that satisfies the applicable requirements of
Code Section 422, and subject to Code Section 422(c)(7).

          “Family Member” means any child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person
sharing the employee’s household (other than a tenant or employee), a trust in which these persons
have more than 50% of the beneficial interest, a foundation in which these persons (or the
employee) control the management of assets, and any other entity in which these persons (or the
employee) own more than 50% of the voting interests or in Section A(1)(a)(5) of the general
instructions of Form S-8, as applicable.

          “Incentive Stock Option” means any Option awarded to an eligible Participant under the Plan
and this Appendix intended to be and designated in the Award Agreement as an “incentive stock
option” within the meaning of Section 422 of the Code.

          “Non-Qualified Stock Option” means any Option awarded under this Plan that is not an Incentive
Stock Option.

          “Parent” means any parent corporation of the Company within the meaning of Section 424(e) of
the Code.

          “Restricted Stock” means Shares awarded to a Participant pursuant to Section 6 hereof that is
subject to certain restrictions and may be subject to risk of forfeiture.

          “Restricted Stock Unit” means an Award granted pursuant to Section 7 hereof.

          “Securities Act” means the U.S. Securities Act of 1933, as amended, and all rules and
regulations promulgated thereunder. Any reference to any section of the Securities Act shall also
be a reference to any successor provision.

2

 

          “Subsidiary” means any subsidiary corporation of the Company within the meaning of Section
424(f) of the Code.

          “Ten Percent Shareholder” means a person owning stock possessing more than 10% of the total
combined voting power of all classes of shares of the Company, its Subsidiaries or its Parent.

     3. Shares Reserved under Appendix for Incentive Stock Options.

     The maximum aggregate number of Shares that may be issued pursuant to Incentive Stock Options
is 27,079,533 Shares, and such reserve of Shares for grants of Incentive Stock Options shall not be
increased without the approval of the shareholders of the Company as required pursuant to Section
421 et seq. of the Code. The number of Shares stated in this Section 3 shall be subject to
adjustment as provided in Section 12.1 of the Plan. To the extent that an Incentive Stock Option
terminates, expires, or lapses for any reason, any Shares subject to the Award shall again be
available for the grant of an Incentive Stock Option pursuant to the Plan and this Appendix.
Additionally, any Shares tendered or withheld to satisfy the grant or exercise price or tax
withholding obligation pursuant to any Incentive Stock shall again be available for the grant of an
Incentive Stock Option pursuant to the Plan and this Appendix. To the extent permitted by
applicable law or any exchange rule, Shares issued in assumption of, or in substitution for, any
outstanding awards of any entity acquired in any form of combination by the Company or any
affiliate shall not be counted against Shares available for grant as Incentive Stock Options
pursuant to the Plan and this Appendix. Notwithstanding the provisions of this Section 3 hereof,
no Shares may again be optioned, granted or awarded if such action would cause an Incentive Stock
Option to fail to qualify as an incentive stock option under Section 422 of the Code.

     4. Grants of Options.

          4.1 Generally. The Administrator shall have full authority to grant Options to Service
Providers pursuant to the terms of this Appendix and the Plan. All Options shall be granted by,
confirmed by, and subject to the terms of, an Award Agreement to be executed by the Company and the
Participant. In particular, the Administrator shall have the authority to determine whether an
Option is an Incentive Stock Option or a Non-Qualified Stock Option.

          4.2 Eligibility. All Service Providers are eligible to be granted Non-Qualified Stock Options
under this Appendix, and only employees of the Company, a Subsidiary or a Parent are eligible to be
granted Incentive Stock Options under this Appendix, if so employed on the grant date of such
Incentive Stock Option, although it is anticipated that grants hereunder will be granted solely or
primarily to U.S. Taxpayers. Eligibility for the grant of an Option and actual participation in
this Appendix and the Plan shall be determined by the Administrator in its sole discretion.
Notwithstanding anything in this Section 4.2 to the contrary, Consultants who are not natural
persons that provide bona fide services to the Company, a Subsidiary or a Parent, and Consultants

3

 

who provide services in connection with the offer or sale of securities in a capital raising
transaction shall not be eligible to be granted Options under this Appendix.

     5. Special Terms for Incentive Stock Options.

          5.1 Disqualification. To the extent that any Option does not qualify as an Incentive Stock
Option (whether because of its provisions or the time or manner of its exercise or otherwise), such
Option or the portion thereof that does not qualify shall constitute a separate Non-Qualified Stock
Option.

          5.2 Exercise Price. The exercise price per Share subject to an Incentive Stock Option shall
be determined by the Administrator at the time of grant of such Incentive Stock Option; provided
that the per share exercise price of an Option shall not be less than 100% of the Fair Market Value
of the Share at the time of grant of such Incentive Stock Option; and provided, further, that if an
Incentive Stock Option is granted to a Ten Percent Shareholder, the exercise price per Share shall
be no less than 110% of the Fair Market Value of the Share at the time of the grant of such
Incentive Stock Option.

          5.3 Option Term. The term of each Incentive Stock Option shall be fixed by the Administrator;
provided, however, that no Incentive Stock Option shall be exercisable more than 10 years after the
date such Incentive Stock Option is granted; and further provided that the term of an Incentive
Stock Option granted to a Ten Percent Shareholder shall not exceed five years.

          5.4 Incentive Stock Option Limitations. To the extent that the aggregate Fair Market Value
(determined as of the time of grant) of Shares with respect to which Incentive Stock Options are
exercisable for the first time by an employee during any calendar year under this Plan and/or any
other stock option plan of the Company, any Subsidiary or any Parent exceeds $100,000, such
Incentive Stock Options shall be treated as Non-Qualified Stock Options. In addition, if an
employee does not remain employed by the Company, any Subsidiary or any Parent at all times from
the time an Incentive Stock Option is granted until three months prior to the date of exercise
thereof (or such other period as required by Section 422 of the Code), such Incentive Stock Option
shall be treated as a Non-Qualified Stock Option. Should any provision of this Appendix not be
necessary in order for the Options to qualify as Incentive Stock Options, or should any additional
provisions be required, the Administrator may amend this Appendix accordingly, without the
necessity of obtaining the approval of the shareholders of the Company, unless required by
applicable law.

          5.5 Effect of Termination. Notwithstanding anything to the contrary in the Plan or this
Appendix, and in the absence of a provision specifying otherwise in the relevant Award Agreement,
then with respect to Incentive Stock Options, the following provisions must be met on order for the
Award to qualify as an Incentive Stock Option under the Code:

4

 

               (a) in the event that the Participant ceases to be an employee of the Company or any
Subsidiary or Parent for any reason other than the Participant’s death or Disability, the vested
Options must be exercised within three (3) months from the effective date of termination of the
Participant’s employment with the Company, any Subsidiary or Parent;

               (b) in the event that the Participant’s employment with the Company, a Subsidiary or Parent
terminates as a result of the Participant’s death or Disability, the Option must be exercised
within twelve (12) months following the Participant’s date of termination for death or Disability.

To avoid doubt, the provisions of Section 11 of the Plan shall remain in full force and effect and
apply to Awards granted as Incentive Stock Options. The restrictions set forth above represent
special additional limitations that apply to qualify as Incentive Stock Options under the
provisions of the Code. To avoid doubt, a Participant may choose to exercise Options in accordance
with the terms of Section 11 of the Plan and the relevant Award Agreement, and not in compliance
with the provisions of the Code relating to “incentive stock options”. In that case such Option
will not qualify as an Incentive Stock Option and will be treated as a Non- Qualified Stock Option.

          5.6 Notice of Disposition. The Participant shall give the Company prompt notice of any
disposition of Shares acquired by exercise of an Incentive Stock Option within (i) two years from
the date of grant of such Incentive Stock Option or (ii) one year after the transfer of such Shares
to the Participant.

          5.7 Right to Exercise. During a Participant’s lifetime, an Incentive Stock Option may be
exercised only by the Participant.

     6. Special Terms for Restricted Stock.

          6.1 Grant of Restricted Stock. The Administrator is authorized to make Awards of Restricted
Stock to any Participant selected by the Administrator in such amounts and subject to such terms
and conditions as determined by the Administrator. All Awards of Restricted Stock shall be
evidenced by an Award Agreement.

          6.2 Issuance and Restrictions. Restricted Stock shall be subject to such restrictions on
transferability and other restrictions as the Administrator may impose (including, without
limitation, limitations on the right to vote Restricted Stock or the right to receive dividends on
the Restricted Stock). These restrictions may lapse separately or in combination at such times,
pursuant to such circumstances, in such installments, or otherwise, as the Administrator determines
at the time of the grant of the Award or thereafter.

          6.3 Forfeiture. Except as otherwise determined by the Administrator at the time of the grant
of the Award or thereafter, upon termination of employment or status of Service Provider during the
applicable restriction period, Restricted Stock that is at that time subject to restrictions shall
be forfeited; provided, however, that the Administrator may (a) provide in any Restricted Stock
Award Agreement that restrictions

5

 

or forfeiture conditions relating to Restricted Stock will be waived in whole or in part in
the event of terminations resulting from specified causes, and (b) in other cases waive in whole or
in part restrictions or forfeiture conditions relating to Restricted Stock.

          6.4 Certificates for Restricted Stock. Restricted Stock granted pursuant to the Plan may be
evidenced in such manner as the Administrator shall determine. If certificates representing shares
of Restricted Stock are registered in the name of the Participant, certificates must bear an
appropriate legend referring to the terms, conditions, and restrictions applicable to such
Restricted Stock, and the Company may, at its discretion, retain physical possession of the
certificate until such time as all applicable restrictions lapse.

          6.5 Taxes. In accordance with the terms of the Code, a Participant shall be responsible for
payment of all taxes incurred in connection with the grant of Restricted Stock. Accordingly, upon
the vesting of Restricted Stock, a Participant shall make provision for the payment of all required
withholding to the Company in accordance with Section 19.1 of the Plan.

     7. Restricted Stock Units.

     The Administrator is authorized to make Awards of Restricted Stock Units to any Participant
selected by the Administrator in such amounts and subject to such terms and conditions as
determined by the Administrator. At the time of grant, the Administrator shall specify the date or
dates on which the Restricted Stock Units shall become fully vested and nonforfeitable, and may
specify such conditions to vesting as it deems appropriate. At the time of grant, the
Administrator shall specify the maturity date applicable to each grant of Restricted Stock Units
which shall be no earlier than the vesting date or dates of the Award and may be determined at the
election of the grantee. On the maturity date, the Company shall transfer to the Participant or
record as issued to the Participant in the books of the Company (or, if applicable, its transfer
agent or stock plan administrator) one unrestricted, fully transferable Share for each Restricted
Stock Unit scheduled to be paid out on such date and not previously forfeited.

     8. Amendment of Appendix and Individual Awards.

          8.1 This Appendix may be amended or terminated in accordance with the terms governing the
amendment or termination of the Plan; provided, however, that without the approval of the
shareholders of the Company entitled to vote in accordance with applicable law, no amendment may be
made that would: (i) increase the aggregate number of Shares that may be issued under this
Appendix; (ii) change the classification of individuals eligible to receive Incentive Stock Options
under this Appendix; (iii) decrease the minimum exercise price of any Option below the amounts
specified herein; (iv) extend the term of the Plan under Section 14.1 of the Plan or the maximum
Option period under Section 5.3 of this Appendix; or (v) require shareholder approval in order for
the Appendix to continue to comply with Section 422 of the Code to the extent applicable to
Incentive Stock Options or require shareholder approval to the extent necessary and desirable to
comply with applicable law, regulations or under the rules of

6

 

any exchange or system on which the Company’s securities are listed or traded at the request
of the Company.

          8.2 The Administrator may, to the extent permitted by the Plan and this Appendix, amend the
terms of any Award theretofore granted, prospectively or retroactively, but, subject to the Plan or
as otherwise specifically provided herein, no such amendment or other action by the Administrator
shall materially impair the previously accrued rights of any holder of such Award without the
holder’s consent.

          8.3 Notwithstanding any other provisions of the Plan or this Appendix to the contrary, (a) the
Administrator may amend the Plan, this Appendix or any Award without the consent of the holder
thereof if the Administrator determines that such amendment is required or advisable for the
Company, the Plan, this Appendix or any Award to satisfy, comply with or meet the requirements of
any law, regulation, rule or accounting standard, and (b) neither the Company nor the Administrator
shall take any action pursuant to Section 8 or Section 10 of this Appendix or Section 14.2 of the
Plan, or otherwise, that would cause an Award that is otherwise exempt under Code Section 409A to
become subject to Code Section 409A, or that would cause an Award that is subject to Code Section
409A to fail to satisfy the requirements of Code Section 409A.

     9. Limits on Transfer.

     No Award shall be assigned, transferred or otherwise disposed of by a Participant otherwise
than by will or by the laws of descent and distribution, and all Awards shall be exercisable,
during the Participant’s lifetime, only by the Participant. Notwithstanding the foregoing, the
Administrator may determine, in its sole discretion, at the time of grant or thereafter that an
Award (other than an Incentive Stock Option) granted under this Appendix that is otherwise not
transferable pursuant to this Section 9 is transferable to a Family Member in whole or in part and
in such circumstances, and under such conditions, as specified by the Administrator. An Award that
is transferred to a Family Member pursuant to the preceding sentence (i) may not be subsequently
transferred otherwise than by will or by the laws of descent and distribution and (ii) remains
subject to the terms of the Plan, the Appendix and the applicable Award Agreement. Any Shares
acquired upon the exercise of an Award by a permissible transferee of an Award or a permissible
transferee pursuant to a transfer after the exercise of, or issuance of Shares under, an Award
shall be subject to the terms of the Plan, the Appendix and the applicable Award Agreement.

     10. Deferred Compensation.

     To the extent that the Administrator determines that any Award granted under the Plan and this
Appendix is subject to Section 409A of the Code, the Award Agreement evidencing such Award shall
incorporate the terms and conditions required by Section 409A of the Code. To the extent
applicable, the Plan, this Appendix and the Award Agreements shall be interpreted in accordance
with Section 409A of the Code and Department of Treasury regulations and other interpretive
guidance issued thereunder, including without limitation any such regulations or other guidance
that may be issued

7

 

after the Effective Date. Notwithstanding any provision of the Plan or this Appendix to the
contrary, in the event that following the Effective Date the Administrator determines that any
Award may be subject to Section 409A of the Code and related Department of Treasury guidance
(including such Department of Treasury guidance as may be issued after the Effective Date), the
Administrator may adopt such amendments to the Plan or the Appendix and the applicable Award
Agreement or adopt other policies and procedures (including amendments, policies and procedures
with retroactive effect), or take any other actions, that the Administrator determines are
necessary or appropriate to (a) exempt the Award from Section 409A of the Code and/or preserve the
intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the
requirements of Section 409A of the Code and related Department of Treasury guidance. The
Administrator may permit deferrals of compensation pursuant to the terms of a Participant’s Award
Agreement, a separate plan, or an Appendix that (in each case) meets the requirements of Code
Section 409A.

* * *

8

 

MELLANOX TECHNOLOGIES, LTD.

GLOBAL SHARE INCENTIVE PLAN(2006)

APPENDIX – U.S. TAXPAYERS

OPTION GRANT NOTICE AND OPTION AGREEMENT 

     Mellanox Technologies, Ltd., a corporation organized under the laws of the State of Israel
(the “Company”), pursuant to its Global Share Incentive Plan (2006) and the Appendix thereto
setting forth the additional terms applicable to Participants who are U.S. Taxpayers (collectively
referred to as the “Plan,” except where the context otherwise requires), hereby grants to the
holder listed below (“Participant”), an option to purchase the number of ordinary shares of the
Company (“Shares”), set forth below (the “Option”). This Option is subject to all of the terms and
conditions set forth herein and in the Option Agreement attached hereto as Exhibit A (the
“Option Agreement”), and the Plan, which are incorporated herein by reference. Unless otherwise
defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant
Notice and the Option Agreement.

	 	 	 	 	 	 	 
	Participant:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Grant Date:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Vesting Commencement Date:

	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Total Exercise Price:

	 	$	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Total Number of
Shares Subject to
the Option:

	 	 	 	Shares	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Expiration Date:
	 	 	 	 	 	 
	 	 	 	 	 

	 	 	 
	Type of Option:

	 	o Incentive Stock Option      o Non-Qualified Stock Option
	 
	 	 
	Vesting Schedule:

	 	The Option shall vest with respect to twenty-five percent (25%) of the total number of
Shares subject to the Option on the first anniversary of the Vesting Commencement Date, and with respect to
an additional 1/48th of the total number of Shares subject to the Option on the corresponding day of each
consecutive month measured from the first anniversary of the Vesting Commencement Date (or on the last day of
a month, to the extent such month does not have the corresponding day), subject to Participant’s continued
status as a Service Provider on each applicable vesting date, such that all Shares subject to the Option
shall be fully vested on the fourth anniversary of the Vesting Commencement Date.
	 
	 	 
	 

	 	 

 

 

     By his or her signature, the Participant agrees to be bound by the terms and conditions of the
Plan, the Option Agreement and this Grant Notice. The Participant has reviewed the Option
Agreement, the Plan, and this Grant Notice in their entirety, has had an opportunity to obtain the
advice of counsel prior to executing this Grant Notice and fully understands all provisions of this
Grant Notice, the Option Agreement, and the Plan. Participant hereby agrees to accept as binding,
conclusive and final all decisions or interpretations of the Administrator upon any questions
arising under the Plan, or relating to the Option.

	 	 	 	 	 	 	 
	MELLANOX TECHNOLOGIES, LTD.	 	PARTICIPANT
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 	 	 	 	 	 	 
	Print Name:

	 	 	 	Print Name:	 	 
	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Address:

	 	 	 	Address:	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT A

TO OPTION GRANT NOTICE

OPTION AGREEMENT

     Pursuant to the Option Grant Notice (the “Grant Notice”) to which this Option Agreement (this
“Agreement”) is attached, Mellanox Technologies, Ltd., a corporation organized under the laws of
the State of Israel (the “Company”), has granted to the Participant an option under the Company’s
Global Share Incentive Plan (2006) and the Appendix thereto setting forth the additional terms
applicable to Participants who are U.S. Taxpayers (collectively referred to herein as the “Plan,”
unless context otherwise requires) to purchase the number of Shares indicated in the Grant Notice.

ARTICLE I.

GENERAL

     1.1 Defined Terms. Wherever the following terms are used in this Agreement they
shall have the meanings specified below, unless the context clearly indicates otherwise.
Capitalized terms not specifically defined herein shall have the meanings specified in the Plan and
the Grant Notice.

          (a) “Termination of Consultancy” shall mean the time when the engagement of the Participant as
a Consultant to the Company or an affiliate thereof is terminated for any reason, with or without
cause, including, but not by way of limitation, by resignation, discharge, death or retirement, but
excluding: (a) terminations where there is a simultaneous employment or continuing employment of
the Participant by the Company or any affiliate thereof, and (b) terminations where there is a
simultaneous re-establishment of a consulting relationship or continuing consulting relationship
between the Participant and the Company or any affiliate thereof. The Administrator, in its
absolute discretion, shall determine the effect of all matters and questions relating to
Termination of Consultancy, including, but not by way of limitation, the question of whether a
particular leave of absence constitutes a Termination of Consultancy. Notwithstanding any other
provision of the Plan, the Company or any affiliate thereof has an absolute and unrestricted right
to terminate a Consultant’s service at any time for any reason whatsoever, with or without cause,
except to the extent expressly provided otherwise in writing.

          (b) “Termination of Directorship” shall mean the time when the Participant, if he or she is or
becomes a Non-Employee Director, ceases to be a member of the Board of Directors for any reason,
including, but not by way of limitation, a termination by resignation, failure to be elected, death
or retirement. The Board of Directors, in its sole and absolute discretion, shall determine the
effect of all matters and questions relating to Termination of Directorship with respect to
Non-Employee Directors.

          (c) “Termination of Employment” shall mean the time when the employee-employer relationship
between the Participant and the Company or any affiliate thereof is terminated for any reason, with
or without cause, including, but not by way of limitation, a termination by resignation, discharge,
death, disability or retirement; but excluding: (a) terminations where there is a simultaneous
reemployment or continuing employment of the Participant by the Company or any affiliate thereof,
and (b) terminations where there is a simultaneous establishment of a consulting relationship or
continuing consulting relationship between the Participant and the Company or any affiliate
thereof. The Administrator, in its absolute discretion, shall determine the effect of all matters
and questions relating to Termination of Employment, including, but not by way of limitation, the
question of whether a particular leave of absence constitutes a Termination of Employment;
provided, however, that, if this Option is an Incentive Stock Option, unless otherwise determined
by the Administrator in its discretion, a leave of absence, change in status from an employee to an
independent contractor or other change in the

A-1

 

employee-employer relationship shall constitute a Termination of Employment if, and to the
extent that, such leave of absence, change in status or other change interrupts employment for the
purposes of Section 422(a)(2) of the Code and the then applicable regulations and revenue rulings
under said Section.

          (d) “Termination of Services” shall mean the Participant’s Termination of Consultancy,
Termination of Directorship or Termination of Employment, as applicable.

     1.2 Incorporation of Terms of Plan. The Option is subject to the terms and conditions
of the Plan, which are incorporated herein by reference. In the event of any inconsistency between
the Plan and this Agreement, the terms of the Plan shall control.

ARTICLE II.

GRANT OF OPTION

     2.1 Grant of Option. In consideration of the Participant’s past and/or continued
employment with or service to the Company or an affiliate thereof and for other good and valuable
consideration, effective as of the Grant Date set forth in the Grant Notice (the “Grant Date”), the
Company irrevocably grants to the Participant the Option to purchase any part or all of an
aggregate of the number of Shares set forth in the Grant Notice, upon the terms and conditions set
forth in the Plan and this Agreement. Unless designated as a Non-Qualified Stock Option in the
Grant Notice, the Option shall be an Incentive Stock Option to the maximum extent permitted by law.

     2.2 Exercise Price. The exercise price of the Shares subject to the Option shall be
as set forth in the Grant Notice, without commission or other charge; provided, however, that the
price per Share of the Shares subject to the Option shall not be less than 100% of the Fair Market
Value of a Share on the Grant Date. Notwithstanding the foregoing, if this Option is designated as
an Incentive Stock Option and the Participant owns (within the meaning of Section 424(d) of the
Code) more than 10% of the total combined voting power of all classes of stock of the Company or
any “subsidiary corporation” of the Company or any “parent corporation” of the Company (each within
the meaning of Section 424 of the Code), the price per Share of the Shares subject to the Option
shall not be less than 110% of the Fair Market Value of a Share on the Grant Date.

     2.3 Consideration to the Company. In consideration of the grant of the Option by the
Company, the Participant agrees to render faithful and efficient services to the Company or any
affiliate thereof. Nothing in the Plan or this Agreement shall confer upon the Participant any
right to continue in the employ or service of the Company or any affiliate thereof or shall
interfere with or restrict in any way the rights of the Company and its affiliates, which rights
are hereby expressly reserved, to discharge or terminate the services of the Participant at any
time for any reason whatsoever, with or without Cause, except to the extent expressly provided
otherwise in a written agreement between the Company or an affiliate thereof and the Participant.

ARTICLE III.

PERIOD OF EXERCISABILITY

     3.1 Commencement of Exercisability.

          (a) Subject to Sections 3.2, 3.3, 5.8 and 5.10 hereof, the Option shall become vested and
exercisable in such amounts and at such times as are set forth in the Grant Notice.

A-2

 

          (b) No portion of the Option which has not become vested and exercisable at the date of the
Participant’s Termination of Employment, Termination of Directorship or Termination of Consultancy
shall thereafter become vested and exercisable, except as may be otherwise provided by the
Administrator or as set forth in a written agreement between the Company and the Participant.

          (c) Notwithstanding Sections 3.1(a) and 3.1(b) hereof, pursuant to Section 11.2 of the Plan,
the Option shall become fully vested and exercisable in the event of a Change in Control, in
connection with which the successor corporation does not assume the Option or substitute an
equivalent right for the Option. Should the successor corporation assume the Option or substitute
an equivalent right, then no such acceleration shall apply.

     3.2 Duration of Exercisability. The installments provided for in the vesting schedule
set forth in the Grant Notice are cumulative. Each such installment which becomes vested and
exercisable pursuant to the vesting schedule set forth in the Grant Notice shall remain vested and
exercisable until it becomes unexercisable under Section 3.3 hereof.

     3.3 Expiration of Option. The Option may not be exercised to any extent by anyone
after the first to occur of the following events:

          (a) The expiration of ten years from the Grant Date;

          (b) If this Option is designated as an Incentive Stock Option and the Participant owned
(within the meaning of Section 424(d) of the Code), at the time the Option was granted, more than
10% of the total combined voting power of all classes of stock of the Company or any “subsidiary
corporation” of the Company or any “parent corporation” of the Company (each within the meaning of
Section 424 of the Code), the expiration of five years from the Grant Date;

          (c) The expiration of three months from the date of the Participant’s Termination of Services,
unless such termination occurs by reason of the Participant’s death or Disability; or

          (d) The expiration of one year from the date of the Participant’s Termination of Services by
reason of the Participant’s death or Disability.

     The Participant acknowledges that an Incentive Stock Option exercised more that three months
after the Participant’s Termination of Employment, other than by reason of death or Disability,
will be taxed as a Non-Qualified Stock Option.

     3.4 Special Tax Consequences. The Participant acknowledges that, to the extent that
the aggregate Fair Market Value (determined as of the time the Option is granted) of all Shares
with respect to which Incentive Stock Options, including the Option, are exercisable for the first
time by the Participant in any calendar year exceeds $100,000, the Option and such other options
shall be Non-Qualified Stock Options to the extent necessary to comply with the limitations imposed
by Section 422(d) of the Code. The Participant further acknowledges that the rule set forth in the
preceding sentence shall be applied by taking the Option and other “incentive stock options” into
account in the order in which they were granted, as determined under Section 422(d) of the Code and
the Treasury Regulations thereunder.

A-3

 

ARTICLE IV.

EXERCISE OF OPTION

     4.1 Person Eligible to Exercise. Except as provided in Sections 5.2(b) and
5.2(c) hereof, during the lifetime of the Participant, only the Participant may exercise the Option
or any portion thereof. After the death of the Participant, any exercisable portion of the Option
may, prior to the time when the Option becomes unexercisable under Section 3.3 hereof, be exercised
by the Participant’s personal representative or by any person empowered to do so under the deceased
the Participant’s will or under the then applicable laws of descent and distribution.

     4.2 Partial Exercise. Any exercisable portion of the Option or the entire Option, if
then wholly exercisable, may be exercised in whole or in part at any time prior to the time when
the Option or portion thereof becomes unexercisable under Section 3.3 hereof.

     4.3 Manner of Exercise. The Option, or any exercisable portion thereof, may be
exercised solely by delivery to the Secretary of the Company (or any third party administrator or
other person or entity designated by the Company) of all of the following prior to the time when
the Option or such portion thereof becomes unexercisable under Section 3.3 hereof:

          (a) An Exercise Notice in a form specified by the Administrator, stating that the Option or
portion thereof is thereby exercised, such notice complying with all applicable rules established
by the Administrator;

          (b) The receipt by the Company of full payment for the Shares with respect to which the Option
or portion thereof is exercised, including payment of any applicable withholding tax, which may be
in one or more of the forms of consideration permitted under Section 4.4 hereof;

          (c) Any other written representations as may be required in the Administrator’s reasonable
discretion to evidence compliance with the Securities Act or any other applicable law rule, or
regulation; and

          (d) In the event the Option or portion thereof shall be exercised pursuant to Section 4.1
hereof by any person or persons other than the Participant, appropriate proof of the right of such
person or persons to exercise the Option.

Notwithstanding any of the foregoing, the Company shall have the right to specify all conditions of
the manner of exercise, which conditions may vary by country and which may be subject to change
from time to time.

     4.4 Method of Payment. Payment of the exercise price shall be by any of the
following, or a combination thereof, at the election of the Participant:

          (a) Cash;

          (b) Check;

          (c) With the consent of the Administrator, delivery of a notice that the Participant has
placed a market sell order with a broker with respect to Shares then issuable upon exercise of the
Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of
the sale to

A-4

 

the Company in satisfaction of the aggregate exercise price; provided, that payment of such
proceeds is then made to the Company upon settlement of such sale;

          (d) With the consent of the Administrator, surrender of other Shares which (A) in the case of
Shares acquired from the Company, have been owned by the Participant for more than six (6) months
on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the
aggregate exercise price of the Shares with respect to which the Option or portion thereof is being
exercised;

          (e) With the consent of the Administrator, surrendered Shares issuable upon the exercise of
the Option having a Fair Market Value on the date of exercise equal to the aggregate exercise price
of the Shares with respect to which the Option or portion thereof is being exercised; or

          (f) With the consent of the Administrator, property of any kind which constitutes good and
valuable consideration.

     4.5 Conditions to Issuance of Share Certificates. The Shares deliverable upon the
exercise of the Option, or any portion thereof, may be either previously authorized but unissued
Shares or issued Shares which have then been reacquired by the Company. Such Shares shall be fully
paid and nonassessable. The Company shall not be required to issue or deliver any Shares purchased
upon the exercise of the Option or portion thereof prior to fulfillment of all of the following
conditions:

          (a) The admission of such Shares to listing on all stock exchanges on which such Shares are
then listed;

          (b) The completion of any registration or other qualification of such Shares under any state
or federal law or under rulings or regulations of the U.S. Securities and Exchange Commission or of
any other governmental regulatory body, which the Administrator shall, in its absolute discretion,
deem necessary or advisable;

          (c) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Administrator shall, in its absolute discretion, determine to be necessary or
advisable;

          (d) The receipt by the Company of full payment for such Shares, including payment of any
applicable withholding tax, which may be in one or more of the forms of consideration permitted
under Section 4.4 hereof; and

          (e) The lapse of such reasonable period of time following the exercise of the Option as the
Administrator may from time to time establish for reasons of administrative convenience.

     4.6 Rights as Shareholder. The holder of the Option shall not be, nor have any of the
rights or privileges of, a shareholder of the Company in respect of any Shares purchasable upon the
exercise of any part of the Option unless and until such Shares shall have been issued by the
Company to such holder (as evidenced by the appropriate entry on the books of the Company or of a
duly authorized transfer agent of the Company). No adjustment will be made for a dividend or other
right for which the record date is prior to the date the Shares are issued, except as provided in
Section 12.1 of the Plan.

A-5

 

ARTICLE V.

OTHER PROVISIONS

     5.1 Administration. The Administrator shall have the power to interpret the Plan
and this Agreement and to adopt such rules for the administration, interpretation and application
of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All
actions taken and all interpretations and determinations made by the Administrator in good faith
shall be final and binding upon Participant, the Company and all other interested persons. No
member of the Committee or the Board of Directors shall be personally liable for any action,
determination or interpretation made in good faith with respect to the Plan, this Agreement or the
Option.

     5.2 Option Not Transferable.

          (a) Subject to Section 5.2(b), the Option may not be sold, pledged, assigned or
transferred in any manner other than by will or the laws of descent and distribution, unless and
until the shares of Stock underlying the Option have been issued, and all restrictions applicable
to such Shares have lapsed. Neither the Option nor any interest or right therein shall be liable
for the debts, contracts or engagements of Participant or his or her successors in interest or
shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance,
assignment or any other means whether such disposition be voluntary or involuntary or by operation
of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings
(including bankruptcy), and any attempted disposition thereof shall be null and void and of no
effect, except to the extent that such disposition is permitted by the preceding sentence.

          (b) Notwithstanding any other provision in this Agreement, with the consent of the
Administrator and to the extent the Option is not intended to qualify as an Incentive Stock Option,
the Participant may transfer the Option (or any portion thereof) to any one or more Permitted
Transferees (as defined below), subject to the following terms and conditions: (i) any portion of
the Option transferred to a Permitted Transferee shall not be assignable or transferable by the
Permitted Transferee other than by will or the laws of descent and distribution; (ii) any portion
of the Option which is transferred to a Permitted Transferee shall continue to be subject to all
the terms and conditions of the Option as applicable to the Participant (other than the ability to
further transfer the Option); and (iii) the Participant and the Permitted Transferee shall execute
any and all documents requested by the Administrator, including, without limitation documents to
(A) confirm the status of the transferee as a Permitted Transferee, (B) satisfy any requirements
for an exemption for the transfer under applicable federal and state securities laws and (C)
evidence the transfer. For purposes of this Section 5.2(b), “Permitted Transferee” shall mean,
with respect to a Participant, any child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person
sharing the Participant’s household (other than a tenant or employee), a trust in which these
persons (or the Participant) control the management of assets, and any other entity in which these
persons (or the Participant) own more than fifty percent of the voting interests, or any other
transferee specifically approved by the Administrator after taking into account any state or
federal tax or securities laws applicable to transferable Options.

          (c) Unless transferred to a Permitted Transferee in accordance with Section 5.2(b), during the
lifetime of Participant, only Participant may exercise the Option or any portion thereof. Subject
to such conditions and procedures as the Administrator may require, a Permitted Transferee may
exercise the Option or any portion thereof during Participant’s lifetime. After the death of
Participant, any exercisable portion of the Option may, prior to the time when the Option becomes
unexercisable

A-6

 

under Section 3.3 hereof, be exercised by Participant’s personal representative or by any
person empowered to do so under the deceased Participant’s will or under the then applicable laws
of descent and distribution.

     5.3 Adjustments. The Participant acknowledges that the Option is subject to
modification and termination in certain events as provided in this Agreement and Section 12 of the
Plan.

     5.4 Notices. Any notice to be given under the terms of this Agreement to the Company
shall be addressed to the Company in care of the Secretary of the Company at the address given
beneath the signature of the Company’s authorized officer on the Grant Notice, and any notice to be
given to Participant shall be addressed to Participant at the address given beneath Participant’s
signature on the Grant Notice. By a notice given pursuant to this Section 5.4, either party may
hereafter designate a different address for notices to be given to that party. Any notice which is
required to be given to Participant shall, if Participant is then deceased, be given to the person
entitled to exercise his or her Option pursuant to Section 4.1 hereof by written notice under this
Section 5.4. Any notice shall be deemed duly given when sent via email or when sent by certified
mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch
post office regularly maintained by the United States Postal Service.

     5.5 Titles. Titles are provided herein for convenience only and are not to serve as a
basis for interpretation or construction of this Agreement.

     5.6 Governing Law. The laws of the State of Israel shall govern the interpretation,
validity, administration, enforcement and performance of the terms of this Agreement regardless of
the law that might be applied under principles of conflicts of laws.

     5.7 Conformity to Securities Laws. The Participant acknowledges that the Plan and
this Agreement are intended to conform to the extent necessary with all provisions of the
Securities Act and the Exchange Act and any and all regulations and rules promulgated by the U.S.
Securities and Exchange Commission thereunder, and state securities laws and regulations.
Notwithstanding anything herein to the contrary, and the Plan shall be administered, and the Option
is granted and may be exercised, only in such a manner as to conform to such laws, rules and
regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be
deemed amended to the extent necessary to conform to such laws, rules and regulations.

     5.8 Amendments, Suspension and Termination. To the extent permitted by the Plan, this
Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any
time or from time to time by the Administrator, provided, that, except as may otherwise be provided
by the Plan, no amendment, modification, suspension or termination of this Agreement shall reduce
the rights of a Participant with respect to the Option without the prior written consent of the
Participant.

     5.9 Successors and Assigns. The Company may assign any of its rights under this
Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the
successors and assigns of the Company. Subject to the restrictions on transfer herein set forth in
Section 5.2 hereof, this Agreement shall be binding upon Participant and his or her heirs,
executors, administrators, successors and assigns.

     5.10 Notification of Disposition. If this Option is designated as an Incentive Stock
Option, Participant shall give prompt notice to the Company of any disposition or other transfer of
any Shares acquired under this Agreement if such disposition or transfer is made (a) within two
years from the Grant Date with respect to such Shares or (b) within one year after the transfer of
such Shares to him. Such

A-7

 

notice shall specify the date of such disposition or other transfer and the amount realized,
in cash, other property, assumption of indebtedness or other consideration, by Participant in such
disposition or other transfer.

     5.11 Limitations Applicable to Section 16 Persons. Notwithstanding any other
provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange
Act, the Plan, the Option and this Agreement shall be subject to any additional limitations set
forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any
amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such
exemptive rule. To the extent permitted by applicable law, this Agreement shall be deemed amended
to the extent necessary to conform to such applicable exemptive rule.

     5.12 Not a Contract of Employment. Nothing in this Agreement or in the Plan shall
confer upon the Participant any right to continue to serve as an employee or other service provider
of the Company or any of its affiliates.

     5.13 Entire Agreement. The Plan, the Grant Notice and this Agreement (including all
Exhibits thereto) constitute the entire agreement of the parties and supersede in their entirety
all prior undertakings and agreements of the Company and Participant with respect to the subject
matter hereof.

     5.14 Section 409A. Notwithstanding any other provision of the Plan, this Agreement or
the Grant Notice, the Plan, this Agreement and the Grant Notice shall be interpreted in accordance
with, and incorporate the terms and conditions required by, Section 409A of the Code (together with
any Department of Treasury regulations and other interpretive guidance issued thereunder, including
without limitation any such regulations or other guidance that may be issued after the date hereof,
“Section 409A”). The Administrator may, in its discretion, adopt such amendments to the Plan, this
Agreement or the Grant Notice or adopt other policies and procedures (including amendments,
policies and procedures with retroactive effect), or take any other actions, as the Administrator
determines are necessary or appropriate to comply with the requirements of Section 409A.

A-8

 

MELLANOX TECHNOLOGIES, LTD.

Non-Employee Director Option Grant Policy

Adopted by the Board of Directors: October 27, 2006

Approved by the shareholders of Mellanox Technologies, Ltd.: [l], 2006

     1. General. This Non-Employee Director Option Grant Policy (the
“Policy”) has been adopted by the Board of Directors of Mellanox Technologies, Ltd., a
company organized under the laws of Israel (the “Company”) and approved by the shareholders
of the Company pursuant to the authority of the Mellanox Technologies, Ltd. Global Share Incentive
Plan (2006) (the “Plan”). Capitalized but undefined terms used herein shall have the
meanings ascribed to them in the Plan This Policy provides for the grant of automatic,
non-discretionary Options to Non-Employee Directors, and specifies the number of Shares subject to
such Options and the conditions on which such Options shall be granted, become exercisable and/or
payable, and expire, and such other terms and conditions as are set forth in this Policy.

     2. Automatic Option Grants.

          (a) Initial Director Options. During the term of the Plan, a person who first becomes
a Non-Employee Director automatically shall be granted an Option to purchase 100,000 Shares (an
“Initial Director Option”).

          (b) Annual Director Options. During the term of the Plan, commencing on the date of
the Company’s annual meeting of shareholders held in 2007, each Non-Employee Director automatically
shall be granted an Option to purchase 20,000 Shares (an “Annual Director Option”),
effective as of the date immediately following each annual meeting of shareholders, provided the
Non-Employee Director continues his status as a Non-Employee Director as of such date.

          For the avoidance of doubt, a Non-Employee Director elected for the first time to the Board of
Directors at an annual meeting of shareholders shall only be granted an Initial Director Option in
connection with such election, and shall not be granted an Annual Director Option on the date
following such meeting as well. Members of the Board of Directors who are employees of the
Company, any subsidiary thereof or any other affiliate of the Company who subsequently retire from
employment with the Company or the applicable employer subsidiary or affiliate and remain on the
Board of Directors shall not be granted an Initial Director Option but to the extent they are
otherwise eligible, shall be granted, at each annual meeting of shareholders after the Non-Employee
Director’s retirement from employment with the Company or the applicable employer subsidiary or
affiliate of the Company.

     3. Terms and Conditions. Except as otherwise provided in this Policy, the Options
granted to Non-Employee Directors pursuant to this Policy shall be subject to the terms and
conditions applicable generally to Options granted under the Plan and to any additional
restrictions set forth in an applicable Appendix.

 

 

          (a) Options granted pursuant to this Policy to Non-Employee Directors who are subject to U.S.
federal income tax shall be Non-Qualified Stock Options (as this term is defined in the Appendix
for U.S.
Taxpayers) and to Non-Employee Directors who are subject to taxation in Israel shall be
Options that qualify in accordance with Section 102 of the Israeli Tax Ordinance, 1961.

          (b) The exercise price per Share subject to each Option granted to a Non-Employee Director
pursuant to this Policy shall be equal to at least 100% of the fair market value of a Share on the
date of grant of the Option.

          (c) Options granted pursuant to this Policy shall become vested and exercisable in
substantially equal monthly installments over the three-year period commencing on the date of
grant.

          (d) The term of each Option granted to a Non-Employee Director granted pursuant to this Policy
shall be 10 years from the date of grant of the Option.

          (e) The vesting of any Options granted under this Policy shall cease effective as of the date
a Non-Employee Director ceases to be a member of the Board of Directors for any reason.

          (f) Upon a Non-Employee Director’s cessation of service on the Board of Directors for any
reason other than for cause or the Non-Employee Director’s death or disability, an Option granted
pursuant to this Policy shall remain exercisable for three months following the date of cessation
of service, and upon a Non-Employee Director’s cessation of service on the Board of Directors as a
result of the Non-Employee’s death or disability, an Option granted pursuant to this Policy shall
remain exercisable for 12 months following cessation of service; provided, however, anything to the
contrary notwithstanding in the Plan or in this Policy, no Option shall be exercisable after the
expiration of the term of the Option.

          (g) Options granted pursuant to this Policy shall automatically vest in full and become
exercisable immediately prior to a Change in Control.

          (h) Notwithstanding anything to the contrary herein, all Option grants to “external directors”
as defined under the Companies Law, 1999, shall be subject to applicable laws, rules and
regulations applying to compensation of “external directors” in effect from time to time.

     4. Capitalization Adjustments. The number of Shares subject to the Options granted
pursuant to this Policy shall be subject to the adjustment provisions of Section 11 of the Plan.

     5. Incorporation of the Plan. All applicable terms of the Plan apply to this Policy
as if fully set forth herein except to the extent such other provisions are inconsistent with this
Policy, and all grants of Option hereunder are subject in all respect to the terms of the Plan.

     6. Written Grant Agreement; Authority. The grant of any Option under this Policy
shall be made solely by and subject to the terms set forth in a written agreement in a form to be
approved by the Administrator and duly executed by the Non-Employee Director and an officer

 

 

of the
Company designated for such purpose by the Administrator from time to time. The officer(s) so
designated by the Administrator shall be authorized to take all actions and execute all documents
as necessary or desirable to implement the provisions of this Policy, without further action or
authorization from the Administrator.

     7. Policy Subject to Amendment, Modification and Termination. This Policy may be
amended, modified or terminated by the Administrator in the future at its sole discretion. No
Non-Employee Director shall have any rights hereunder unless and until an Option is actually
granted. Without limiting the generality
of the foregoing, the Administrator hereby expressly reserves the authority to terminate this
Policy during any plan year up and until the election of members of the Board of Directors at a
given annual meeting of shareholders.

     8. Effectiveness. This Policy shall become effective on the later of the date the
Plan becomes effective and the date the Policy is approved by the shareholders of the Company.

**********

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]