Document:

Third Amendment Credit Agreement between City National Bank and Registrant

 EXHIBIT 10.19 
 

 
  
 THIRD AMENDMENT TO CREDIT
AGREEMENT 
  
 This Third Amendment to Credit Agreement is
entered into as of January 26, 2005, by and between Digital Insight Corporation, a Delaware corporation (“Borrower”), and City National Bank, a national banking association (“CNB”). 
  
 RECITALS 
  
 A. Borrower and CNB are parties to that certain Credit Agreement, dated as of October 25, 2002, as amended by that certain
First Amendment to Credit Agreement dated as of October 31, 2003 and that certain Second Amendment to Credit Agreement dated as of October 29, 2004, (the Credit Agreement, as herein amended, hereinafter the “Credit Agreement”). 

 
 B. Borrower and CNB desire to supplement and amend the Credit Agreement as
hereinafter set forth. 
  
 NOW, THEREFORE, the parties
agree as follows: 
  

	1.	 	Definitions. Capitalized terms used in this Amendment without definition shall have the meanings set forth in the Credit Agreement. 

  

	2.	 	Amendments. The Credit Agreement is amended as follows: 

  

	 	2.1	 	Paragraph 5.2.1 is amended as follows: 60 days changed to 45 days. 

  

	 	2.2	 	Paragraph 5.2.2 is amended as follows: 120 days changed to 90 days 

  

	 	2.3	 	Paragraph 5.2.4 is replaced in its entirety as follows: 

  

	 	    	 	A Covenant Compliance Certificate concurrently with the reports required under Paragraphs 5.2.1 and 5.2.2. 

  

	3.	 	Existing Agreement. Except as expressly amended herein, the Credit Agreement shall remain in full force and effect, and in all other respects is affirmed.

  

	4.	 	Conditions Precedent. This Amendment shall become effective upon the receipt by CNB of this Amendment duly executed by Borrower. 

  

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	5.	 	Counterparts. This Amendment may be executed in any number of counterparts, and all such counterparts taken together shall be deemed to constitute one and the same
instrument. 

  

	6.	 	Governing Law. This Amendment and the rights and obligations of the parties hereto shall be construed in accordance with, and governed by the laws of the State of
California. 

  
 IN WITNESS WHEREOF, the
parties have executed this Amendment as of the day and year first above written. 
  

					
	“Borrower”	 	 Digital Insight Corporation, a
 Delaware corporation

			
	 	 	By:	 	 /s/ Tae J. Rhee

	 	 	Name/Title: Tae J. Rhee, Secretary
		
	 “CNB”
	 	City National Bank, a national banking association
			
	 	 	By:	 	 /s/ Sajeda Simjee

	 	 	 	 	Sajeda Simjee, Vice President

  

 2Third Amended and Restated 2000 Employee and Consultant Equity Incentive Plan

 Exhibit 10.1 
  
 VYYO INC. 
  
 THIRD AMENDED AND RESTATED 
 2000
EMPLOYEE AND CONSULTANT EQUITY INCENTIVE PLAN 
  
 Section 1. General
Purpose of Plan; Definitions. 
  
 The name of this plan is
the Vyyo Inc. Amended and Restated 2000 Employee and Consultant Equity Incentive Plan (the “Plan”). The Plan was adopted by the Board (defined below) and approved by the stockholders of the Company (defined below) on November 22, 1999. The
Board subsequently amended and restated the Plan in its entirety on February 2, 2000 (the “First Amendment”), again amended and restated the Plan on January 17, 2001 (the “Second Amendment”), and again amended and restated the
Plan on January 20, 2005 (the “Third Amendment”, and together with the First Amendment and the Second Amendment, the “Amendments”). The First Amendment was approved by the stockholders of the Company on February 2, 2000. The
Second Amendment was approved by the stockholders of the Company on May 8, 2001. The Third Amendment was approved by the stockholders of the Company on March 14, 2005. The purpose of the Plan is to enable the Company to attract and retain highly
qualified personnel who will contribute to the Company’s success and to provide incentives to Participants (defined below) that are linked directly to increases in stockholder value and will therefore inure to the benefit of all stockholders of
the Company. The Company wishes the issuance of Awards (defined below) to its employees in Israel to conform with the requirements of the Israeli Income Tax Ordinance, and for this purpose the appended document Appendix A amends this Plan to so
conform. 
  
 For purposes of the Plan, the following terms shall
be defined as set forth below: 
  
 (a)
“Administrator” means the Board, or if and to the extent the Board does not administer the Plan, the Committee in accordance with Section 2 below. 
  
 (b) “Affiliate” means any corporation that directly, or indirectly through one or more intermediaries,
controls or is controlled by, or is under common control with, another corporation, where “control” (including the terms “controlled by” and “under common control with”) means the possession, direct or indirect, of the
power to cause the direction of the management and policies of the corporation, whether through the ownership of voting securities, by contract or otherwise. 
  
 (c) “Award” means any award under the Plan. 
  
 (d) “Award Agreement” means, with respect to each Award, the signed written agreement between the Company and the Participant setting
forth the terms and conditions of the Award. 
  
 (e)
“Board” means the Board of Directors of the Company. 
  
 (f) “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto. 
  

 (g) “Committee” means any committee the Board may appoint to administer the Plan. To the
extent necessary and desirable, the Committee shall be composed entirely of individuals who meet the qualifications referred to in Section 162(m) of the Code and Rule 16b-3 under the Exchange Act. If at any time or to any extent the Board shall not
administer the Plan, then the functions of the Board specified in the Plan shall be exercised by the Committee. 
  
 (h) “Common Stock” means the common stock, par value $0.0001 per share, of the Company. 
  
 (i) “Company” means Vyyo Inc., a Delaware corporation (or
any successor corporation). 
  
 (j) “Deferred
Stock” means the right to receive Shares at the end of a specified deferral period granted pursuant to Section 8 below. 
  
 (k) “Disability” means the inability of a Participant to perform substantially his or her duties and responsibilities to the Company or
to any Parent or Subsidiary by reason of a physical or mental disability or infirmity (i) for a continuous period of six months, or (ii) at such earlier time as the Participant submits medical evidence satisfactory to the Administrator that the
Participant has a physical or mental disability or infirmity that will likely prevent the Participant from returning to the performance of the Participant’s work duties for six months or longer. The date of such Disability shall be the last day
of such six-month period or the day on which the Participant submits such satisfactory medical evidence, as the case may be. 
  
 (l) “Eligible Recipient” means an officer, director, employee, consultant or advisor of the Company or of any Parent or Subsidiary.

  
 (m) “Employee Director” means any director of
the Company who is also an employee of the Company or of any Parent or Subsidiary. 
  
 (n) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time. 
  
 (o) “Exercise Price” means the per share price at which a holder of an Award may purchase the Shares issuable upon exercise of the Award.

  
 (p) “Fair Market Value” as of a particular
date shall mean the fair market value of a share of Common Stock as determined by the Administrator in its sole discretion; provided, however, that (i) if the Common Stock is admitted to trading on a national securities exchange, fair
market value of a share of Common Stock on any date shall be the closing sale price reported for such share on such exchange on such date or, if no sale was reported on such date, on the last date preceding such date on which a sale was reported,
(ii) if the Common Stock is admitted to quotation on the National Association of Securities Dealers Automated Quotation (“Nasdaq”) System or other comparable quotation system and has been designated as a National Market System
(“NMS”) security, fair market value of a share of Common Stock on any date shall be the closing sale price reported for such share on such system on such date or, if no sale was reported on such date, on the last date preceding such date
on which a sale was reported, (iii) if the Common Stock is admitted to quotation on the Nasdaq System but has not been designated as an NMS security, fair market value of a share of Common Stock 

  

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on any date shall be the average of the highest bid and lowest asked prices of such share on such system on such date or, if no bid and ask prices were
reported on such date, on the last date preceding such date on which both bid and ask prices were reported; (iv) in the case of a Limited Stock Appreciation Right, the fair market value of a share of Common Stock shall be the “Change in Control
Price” (as defined in the Award Agreement evidencing such Limited Stock Appreciation Right) of a share of Common Stock as of the date of exercise. 
  
 (q) “Incentive Stock Option” means any Option intended to be designated as an “incentive stock option” within the meaning of
Section 422 of the Code. 
  
 (r) “Limited Stock
Appreciation Right” means a Stock Appreciation Right that can be exercised only in the event of a “Change in Control” (as defined in the Award Agreement evidencing such Limited Stock Appreciation Right). 
  
 (s) “Non-Employee Director” means a director of the Company
who is not an employee of the Company or of any Parent or Subsidiary. 
  
 (t) “Non-Qualified Stock Option” means any Option that is not an Incentive Stock Option, including any Option that provides (as of the time such Option is granted) that it will not be treated as an Incentive Stock Option.

  
 (u) “Option” means an option to purchase
Shares granted pursuant to Section 6 below. 
  
 (v)
“Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations in the chain (other than the Company) owns stock possessing 50% or more of the
combined voting power of all classes of stock in one of the other corporations in the chain. 
  
 (w) “Participant” means (i) any Eligible Recipient selected by the Administrator, pursuant to the Administrator’s authority in Section 2 below, to receive grants of Options, Stock Appreciation
Rights, Limited Stock Appreciation Rights, awards of Restricted Stock, Deferred Stock, or Performance Shares or any combination of the foregoing, or (ii) any Non-Employee Director who is eligible to receive grants of Options pursuant to Section 6(i)
below. 
  
 (x) “Performance Shares” means Shares
that are subject to restrictions based upon the attainment of specified performance objectives granted pursuant to Section 8 below. 
  
 (y) “Registration Statement” means the registration statement on Form S-1 filed with the Securities and Exchange Commission for the
initial underwritten public offering of the Common Stock. 
  
 (z)
“Restricted Stock” means Shares subject to certain restrictions granted pursuant to Section 8 below. 
  
 (aa) “Shares” means shares of Common Stock reserved for issuance under the Plan, as adjusted pursuant to Sections 3 and 4, and any
successor security. 
  

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 (bb) “Stock Appreciation Right” means the right pursuant to an Award granted under
Section 7 below to receive an amount equal to the excess, if any, of (i) the Fair Market Value, as of the date such Stock Appreciation Right or portion thereof is surrendered, of the Shares covered by such right or such portion thereof, over (ii)
the aggregate Exercise Price of such right or such portion thereof. 
  
 (cc) “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations (other than the last corporation) in the unbroken chain owns
stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in the chain. 
  
 Section 2. Administration. 
  
 The Plan shall be administered in accordance with the requirements of Section 162(m) of the Code (but only to the extent necessary and desirable to
maintain qualification of Awards under the Plan under Section 162(m) of the Code) and, to the extent applicable, Rule 16b-3 under the Exchange Act (“Rule 16b-3”), by the Board or, at the Board’s sole discretion, by the Committee,
which shall be appointed by the Board, and which shall serve at the pleasure of the Board. 
  
 Pursuant to the terms of the Plan, the Administrator shall have the power and authority to grant to Eligible Recipients Options, Stock Appreciation Rights or Limited Stock Appreciation Rights, Awards of Restricted
Stock, Deferred Stock or Performance Shares or any combination of the foregoing; provided, however, that automatic, nondiscretionary grants of Options shall be made to Non-Employee Directors pursuant to and in accordance with the terms
of Section 6(i) below. Except as otherwise provided in Section 6(i) below, the Administrator shall have the authority: 
  
 (a) to select those Eligible Recipients who shall be Participants; 
  
 (b) to determine whether and to what extent Options, Stock Appreciation Rights, Limited Stock Appreciation Rights, Awards of
Restricted Stock, Deferred Stock or Performance Shares or a combination of any of the foregoing, are to be granted hereunder to Participants; 
  
 (c) to determine the number of Shares to be covered by each Award granted hereunder; 
  
 (d) to determine the terms and conditions, not inconsistent with the terms of the Plan, of each Award granted hereunder
(including, but not limited to, (i) the restrictions applicable to Awards of Restricted Stock or Deferred Stock and the conditions under which restrictions applicable to such Awards of Restricted Stock or Deferred Stock shall lapse, and (ii) the
performance goals and periods applicable to Awards of Performance Shares); 
  
 (e) to determine the terms and conditions, not inconsistent with the terms of the Plan, which shall govern all written instruments evidencing Options, Stock Appreciation Rights, Limited Stock Appreciation Rights,
Awards of Restricted Stock, Deferred Stock or Performance Shares or any combination of the foregoing granted hereunder; 
  

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 (f) to reduce the Exercise Price of any Option to the then current Fair Market Value if the Fair Market
Value of the Shares covered by such Option has declined since the date such Option was granted; and 
  
 (g) the Committee may, at any time or from time to time, authorize the Company, with the consent of the respective Participants, to issue new Awards in
exchange for the surrender and cancellation of any or all outstanding Awards. The Committee may at any time buy from a Participant an Award previously granted with payment in cash, Shares (including Restricted Stock) or other consideration, based on
such terms and conditions as the Committee and the Participant shall agree. 
  
 The Administrator shall have the authority, in its sole discretion, to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall from time to time deem advisable; to
interpret the terms and provisions of the Plan and any Award issued under the Plan (and any Award Agreement relating thereto); and to otherwise supervise the administration of the Plan. 
  
 All decisions made by the Administrator pursuant to the provisions of the Plan shall be final, conclusive and binding on all
persons, including the Company and the Participants. 
  
 Section 3. Shares
Subject to Plan. 
  
 The total number of shares of Common
Stock reserved and available for issuance under the Plan shall be 8,340,088 shares, plus an annual increase to be added on the first day of the Company’s fiscal year (beginning 2006) equal to the lesser of (i) 1,000,000 shares or (ii)
ten percent (10%) of the number of outstanding shares of Common Stock on the last day of the immediately preceding fiscal year. Such shares may consist, in whole or in part, of authorized and unissued shares or treasury shares. The aggregate number
of Shares as to which Options, Stock Appreciation Rights, and Awards of Restricted Stock, Deferred Stock and Performance Shares may be granted to any Participant during any calendar year may not, subject to adjustment as provided in this Section 3,
exceed 80% of the Shares reserved for the purposes of the Plan. 
  
 Consistent with the provisions of Section 162(m) of the Code, as from time to time applicable, to the extent that (i) an Option expires or is otherwise terminated without being exercised, or (ii) any Shares subject to any Award of
Restricted Stock, Deferred Stock or Performance Shares granted hereunder are forfeited, such Shares shall again be available for issuance in connection with future Awards granted under the Plan. If any Shares have been pledged as collateral for
indebtedness incurred by a Participant in connection with the exercise of an Option and such Shares are returned to the Company in satisfaction of such indebtedness, such Shares shall again be available for issuance in connection with future Awards
granted under the Plan. 
  
 In the event of any stock dividend,
recapitalization, stock split, reverse stock split, subdivision, combination, reclassification or similar change in the capital structure of the Company without consideration, an equitable substitution or proportionate adjustment shall be made in
(i) the aggregate number of Shares reserved for issuance under the Plan, (ii) the kind, number and Exercise Prices of Shares subject to outstanding Options, and (iii) the kind, number and Exercise Prices of Shares subject to outstanding Awards of
Restricted Stock, Deferred Stock and Performance Shares, in each case as may be determined by the Administrator, in its sole discretion, subject to any required action by the Board or the stockholders of the Company and in compliance with applicable
securities 

  

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laws; provided, however, that fractions of a Share shall not be issued but shall either be paid in cash at Fair Market Value or shall be
rounded up to the nearest whole share, as determined by the Committee. An adjusted Exercise Price shall also be used to determine the amount payable by the Company upon the exercise of any Stock Appreciation Right or Limited Stock Appreciation Right
related to any Option. 
  
 Section 4. Corporate Transactions 
  
 (a) Assumption or Replacement of Awards by Successor. In the event of
(i) a merger or consolidation in which the Company is not the surviving corporation (other than a merger or consolidation with a wholly-owned subsidiary, a reincorporation of the Company in a different jurisdiction, or other transaction in which
there is no substantial change in the stockholders of the Company and the Awards granted under the Plan are assumed or replaced by the successor corporation, which assumption shall be binding on all Participants); (ii) a dissolution or liquidation
of the Company; (iii) the sale of substantially all of the assets of the Company; or (iv) any other transaction which qualifies as a “corporate transaction” under Section 424(a) of the Code wherein the stockholders of the Company give up
all of their equity interest in the Company (except for the acquisition, sale or transfer of all or substantially all of the outstanding shares of the Company), any or all outstanding Awards may be assumed or replaced by the successor
corporation (if any) or Parent thereof, which assumption or replacement shall be binding on all Participants. In the alternative, the successor corporation or Parent thereof may substitute equivalent awards or provide substantially similar
consideration to Participants as was provided to stockholders of the Company (after taking into account the existing provisions of the Awards). The successor corporation or Parent thereof may also issue, in place of outstanding shares of the Company
held by the Participant, substantially similar shares or other property subject to repurchase restrictions no less favorable to the Participant. In the event such successor corporation (if any) or Parent thereof does not assume or substitute awards,
as provided above, pursuant to a transaction described in this Section 4(a), such Awards shall automatically become fully vested and exercisable and be released from any restrictions on transfer and repurchase or forfeiture rights, immediately prior
to the specified effective date of such transaction, for all the Shares at the time represented by such Awards. In such event, effective upon the consummation of the transaction, or at such other time and on such conditions as the Board shall
determine, all outstanding Awards under the Plan shall terminate and cease to remain outstanding, except to the extent assumed by the successor corporation or its Parent. 
  
 (b) Other Treatment of Awards. Subject to any greater rights granted to Participants under the foregoing provisions
of this Section 4, in the event of the occurrence of any transaction described in Section 4(a), any outstanding Awards shall be treated as provided in the applicable Award Agreement or plan of merger, consolidation, dissolution, liquidation, sale of
assets or other “corporate transaction.” 
  
 (c)
Assumption of Awards by the Company. The Company, from time to time, also may substitute or assume outstanding awards granted by another company, whether in connection with an acquisition of such other company or otherwise, by either (i)
granting an Award under the Plan in substitution of such other company’s award; or (ii) assuming such award as if it had been granted under the Plan if the terms of such assumed award could be applied to an award granted under the Plan. Such
substitution or assumption shall be permissible if the holder of the substituted or assumed award would have been eligible to be granted an Award under the Plan if the other company had applied the rules of the Plan to such grant. In the event the
Company assumes an award granted by another company, the 

  

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terms and conditions of such award shall remain unchanged (except that the exercise price and the number and nature of Shares issuable upon exercise
of any such option will be adjusted approximately pursuant to Section 424(a) of the Code). In the event the Company elects to grant a new Option rather than assuming an existing option, such new Option may be granted with a similarly adjusted
Exercise Price. 
  
 Section 5. Eligibility. 
  
 Eligible Recipients shall be eligible to be granted Options, Stock
Appreciation Rights, Limited Stock Appreciation Rights, Awards of Restricted Stock, Deferred Stock or Performance Shares or any combination of the foregoing hereunder. The Participants under the Plan shall be selected from time to time by the
Administrator, in its sole discretion, from among the Eligible Recipients, and the Administrator shall determine, in its sole discretion, the number of Shares covered by each such Award. 
  
 Section 6. Options. 
  
 Options may be granted alone or in addition to other Awards granted under the Plan. Any Option granted under the Plan shall be in such form as the
Administrator may from time to time approve, and the provisions of each Option need not be the same with respect to each Participant. Participants who are granted Options shall enter into an Award Agreement with the Company, in such form as the
Administrator shall determine, which Award Agreement shall set forth, among other things, the Exercise Price of the Option, the term of the Option and provisions regarding exercisability of the Option granted thereunder. 
  
 The Options granted under the Plan may be of two types: (i) Incentive Stock
Options and (ii) Non-Qualified Stock Options. 
  
 The
Administrator shall have the authority to grant to any officer or employee of the Company or of any Parent or Subsidiary (including directors who are also officers of the Company) Incentive Stock Options, Non-Qualified Stock Options, or both types
of Options (in each case with or without Stock Appreciation Rights or Limited Stock Appreciation Rights). Directors who are not also officers of the Company or of any Parent or Subsidiary, consultants or advisors to the Company or to any Parent or
Subsidiary may only be granted Non-Qualified Stock Options (with or without Stock Appreciation Rights or Limited Stock Appreciation Rights). To the extent that any Option does not qualify as an Incentive Stock Option, it shall constitute a separate
Non-Qualified Stock Option. More than one Option may be granted to the same Participant and be outstanding concurrently hereunder. 
  
 Options granted under the Plan shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of the Plan, as the Administrator shall deem desirable: 
  
 (a) Option Exercise Price. The per share Exercise Price of Shares purchasable under an Option shall be determined by the Administrator in its sole discretion at the time of grant but shall not, (i) in the case
of Incentive Stock Options, be less than 100% of the Fair Market Value of the Common Stock on such date, (ii) in the case of Non-Qualified Stock Options intended to qualify as “performance-based compensation” within the meaning of Section
162(m) of the Code, be less than 100% of the Fair Market Value of the Common Stock on such date and (iii) in any event, be less than 

  

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the par value (if any) of the Common Stock. If a Participant owns or is deemed to own (by reason of the attribution rules applicable under Section 424(d) of
the Code) more than 10% of the combined voting power of all classes of stock of the Company or of any Parent or Subsidiary and an Incentive Stock Option is granted to such Participant, the per share Exercise Price of such Incentive Stock Option (to
the extent required at the time of grant by the Code shall be no less than 110% of the Fair Market Value of the Common Stock on the date such Incentive Stock Option is granted. 
  
 (b) Option Term. The term of each Option shall be fixed by the Administrator, but no Option shall be exercisable more
than ten years after the date such Option is granted; provided, however, that if an employee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10% of the combined voting power of all
classes of stock of the Company or of any Parent or Subsidiary and an Incentive Stock Option is granted to such employee, the term of such Incentive Stock Option (to the extent required by the Code at the time of grant) shall be no more than five
years from the date of grant. 
  
 (c) Exercisability.
Options shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Administrator at or after the time of grant. The Administrator may provide at the time of grant, in its sole discretion, that
any Option shall be exercisable only in installments, and the Administrator may waive such installment exercise provisions at any time, in whole or in part, based on such factors as the Administrator may determine, in its sole discretion, including
but not limited to in connection with any “change in control” of the Company (as defined in the Award Agreement evidencing such Option). 
  
 (d) Method of Exercise. Subject to Section 6(c), Options may be exercised in whole or in part at any time during the Option period, by giving
written notice of exercise to the Company specifying the number of Shares to be purchased, accompanied by payment in full of the aggregate Exercise Price of the Shares so purchased in cash or its equivalent, as determined by the Administrator. In
addition, payment for Shares purchased pursuant to the Plan may be made, where expressly approved for the Participant by the Committee and where permitted by law: 
  
 (i) by cancellation of indebtedness of the Company to the Participant; 
  
 (ii) by surrender of shares of Common Stock that either (1)
have been owned by Participant for more than six (6) months and have been paid for within the meaning of SEC Rule 144 (and, if such shares were purchased from the Company by use of a promissory note, such note has been fully paid with respect to
such Shares); or (2) were obtained by Participant in the public market; 
  
 (iii) by waiver of compensation due or accrued to Participant for services rendered; 
  
 (iv) by tender of property; 
  
 (v) with respect only to purchases upon exercise of an Option, and provided that a public market for the Common Stock exists: (i) through
a “same day sale” commitment from Participant and a broker-dealer that is a member of the National Association of Securities Dealers (an “NASD Dealer”) whereby the Participant irrevocably elects to exercise the Option and to sell
a portion of the Shares so purchased 

  

 8 

 
to pay for the aggregate Exercise Price of the Shares so purchased, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward
such Exercise Price directly to the Company; or (ii) through a “margin” commitment from Participant and an NASD Dealer whereby Participant irrevocably elects to exercise the Option and to pledge the Shares so purchased to the NASD Dealer
in a margin account as security for a loan from the NASD Dealer in the amount of the aggregate Exercise Price of the Shares so purchased, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward such Exercise Price
directly to the Company; 
  
 (vi) in the case of
the exercise of a Non-Qualified Stock Option, in the form of Restricted Stock or Performance Shares subject to an Award hereunder (based, in each case, on the Fair Market Value of the Common Stock on the date the Option is exercised);
provided, however, that in the case of an Incentive Stock Option, the right to make payment in the form of already owned shares of Common Stock may be authorized only at the time of grant. If payment of the Exercise Price of a
Non-Qualified Stock Option is made in whole or in part in the form of Restricted Stock or Performance Shares, the Shares received upon the exercise of such Option shall be restricted in accordance with the original terms of the Restricted Stock
Award or Performance Shares Award in question, except that the Administrator may direct that such restrictions shall apply only to that number of Shares equal to the number of shares surrendered upon the exercise of such Option. 
  
 (vii) by any combination of the foregoing or 
  
 (viii) by any other form of consideration permitted by
applicable law. 
  
 A Participant shall generally have the rights
to dividends and any other rights of a stockholder with respect to the Shares subject to the Option only after the Participant has given written notice of exercise, has paid in full for such Shares, and, if requested, has given the representation
described in Section 11(b). 
  
 The Administrator may require the
surrender of all or a portion of any Option granted under the Plan as a condition precedent to the grant of a new Option. Subject to the provisions of the Plan, such new Option shall be exercisable at the Exercise Price, during such period and on
such other terms and conditions as are specified by the Administrator at the time the new Option is granted. Consistent with the provisions of Section 162(m), to the extent applicable, upon their surrender, Options shall be canceled and the Shares
previously subject to such canceled Options shall again be available for future grants of Options and other Awards hereunder. 
  
 (e) Loans. The Company or any Parent or Subsidiary may make loans available to Option holders in connection with the exercise of outstanding
Options, as the Administrator, in its sole discretion, may determine. Such loans shall (i) be evidenced by promissory notes entered into by the Option holders in favor of the Company or any Parent or Subsidiary, (ii) be subject to the terms and
conditions set forth in this Section 6(e) and such other terms and conditions, not inconsistent with the Plan, as the Administrator shall determine, (iii) bear interest at the applicable Federal interest rate or such other rate as the Administrator
shall determine, and (iv) be subject to Board approval (or to approval by the Administrator to the extent the Board may delegate such authority). In no event may the principal amount of any such loan exceed the sum of (x) the aggregate Exercise
Price less the par value (if any) of the Shares covered by the Option, or portion thereof, exercised by the holder, and (y) 

  

 9 

 
any Federal, state, and local income tax attributable to such exercise. The initial term of the loan, the schedule of payments of principal and interest
under the loan, the extent to which the loan is to be with or without recourse against the holder with respect to principal and/or interest and the conditions upon which the loan will become payable in the event of the holder’s termination of
service to the Company or to any Parent or Subsidiary shall be determined by the Administrator. Unless the Administrator determines otherwise, when a loan is made, Shares having an aggregate Fair Market Value at least equal to the principal amount
of the loan shall be pledged by the holder to the Company as security for payment of the unpaid balance of the loan, and such pledge shall be evidenced by a pledge agreement, the terms of which shall be determined by the Administrator, in its sole
discretion; provided, however, that each loan shall comply with all applicable laws, regulations and rules of the Board of Governors of the Federal Reserve System and any other governmental agency having jurisdiction. 
  
 (f) Non-Transferability of Options. Except under the laws of descent
and distribution, the Participant shall not be permitted to sell, transfer, pledge or assign any Option, and all Options shall be exercisable, during the Participant’s lifetime, only by the Participant; provided, however, that the
Participant shall be permitted to transfer one or more Non-Qualified Stock Options to a trust controlled by the Participant during the Participant’s lifetime for estate planning purposes. 
  
 (g) Termination of Employment or Service. If a Participant’s
employment with or service as a director, consultant or advisor to the Company or to any Parent or Subsidiary terminates by reason of his or her death, Disability or for any other reason, the Option may thereafter be exercised to the extent provided
in the Award Agreement evidencing such Option, or as otherwise determined by the Administrator. 
  
 (h) Annual Limit on Incentive Stock Options. To the extent that the aggregate Fair Market Value (determined as of the date the Incentive Stock
Option is granted) of Shares with respect to which Incentive Stock Options granted to a Participant under this Plan and all other option plans of the Company or of any Parent or Subsidiary become exercisable for the first time by the Participant
during any calendar year exceeds $100,000 (as determined in accordance with Section 422(d) of the Code), the portion of such Incentive Stock Options in excess of $100,000 shall be treated as Non-Qualified Stock Options. 
  
 (i) Automatic Grants of Options to Non-Employee Directors. The Company
shall grant Non-Qualified Stock Options to Non-Employee Directors pursuant to this Section 6(i), which grants shall be automatic and nondiscretionary and otherwise subject to the terms and conditions set forth in this subsection (i) and the terms of
the Plan (the “Automatic Non-Employee Director Options”). Each Non-Employee Director who first becomes a director of the Company following the Effective Date (as defined in Section 12) shall be automatically granted a Non-Qualified Stock
Option to purchase 25,000 Shares (an “Initial Option”). Each Non-Employee Director shall be automatically granted a Non-Qualified Stock Option to purchase 7,500 Shares (the “Annual Options”) on the date immediately following the
Company’s annual meeting of stockholders; provided, however, that he or she is then a director of the Company and, provided, further, that as of such date, such director shall have served on the Board for at least
the preceding six (6) months. 
  
 The term of each Automatic
Non-Employee Director Option shall be ten (10) years, and the Exercise Price purchasable under an Automatic Non-Employee Director Option shall be no less than 100% of the Fair Market Value of the Common Stock on the date of grant, provided,
however, in no event shall the Exercise Price purchasable under an Automatic Non-Employee Director Option be 

  

 10 

 
less than the par value (if any) of the Common Stock. The Initial Options shall vest and become exercisable in four equal annual installments on each of the
first four anniversaries of the date of grant. The Annual Options shall be 100% vested and fully exercisable as of the date of grant. 
  
 In the event that the number of Shares available for grant under the Plan is not sufficient to accommodate the Automatic Non-Employee Director Options,
then the remaining Shares available for Automatic Non-Employee Director Options shall be granted to Non-Employee Directors on a pro-rata basis. No further grants shall be made until such time, if any, as additional Shares become available for grant
under the Plan through action of the Board and/or the stockholders of the Company to increase the number of Shares that may be issued under the Plan or through cancellation or expiration of Awards previously granted hereunder. 
  
 Section 7. Stock Appreciation Rights and Limited Stock Appreciation Rights.

  
 Stock Appreciation Rights and Limited Stock Appreciation
Rights may be granted either alone (“Free Standing Rights”) or in conjunction with all or part of any Option granted under the Plan (“Related Rights”). In the case of a Non-Qualified Stock Option, Related Rights may be granted
either at or after the time of the grant of such Option. In the case of an Incentive Stock Option, Related Rights may be granted only at the time of the grant of the Incentive Stock Option. The Administrator shall determine the Eligible Recipients
to whom, and the time or times at which, grants of Stock Appreciation Rights or Limited Stock Appreciation Rights shall be made; the number of Shares to be awarded, the Exercise Price (or, in the case of a Limited Stock Appreciation Right, the
“Change in Control” price), and all other conditions of Stock Appreciation Rights and Limited Stock Appreciation Rights. The provisions of Stock Appreciation Rights and Limited Stock Appreciation Rights need not be the same with respect to
each Participant. 
  
 Stock Appreciation Rights and Limited Stock
Appreciation Rights granted under the Plan shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable:

  
 (a) Awards. The prospective recipient of a Stock
Appreciation Right or Limited Stock Appreciation Right shall not have any rights with respect to such Award, unless and until such recipient has executed an Award Agreement evidencing the Award (a “Stock Appreciation Right Agreement” or
“Limited Stock Appreciation Right Agreement,” as appropriate) and delivered a fully executed copy thereof to the Company, within a period of sixty days (or such other period as the Administrator may specify) after the award date.
Participants who are granted Stock Appreciation Rights or Limited Stock Appreciation Rights shall have no rights as stockholders of the Company with respect to the grant or exercise of such rights. 
  
 (b) Exercisability. 
  
 (i) Stock Appreciation Rights that are Free Standing Rights
(“Free Standing Stock Appreciation Rights”) shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Administrator at or after grant; provided, however, that no Free
Standing Stock Appreciation Right shall be exercisable during the first six months of its term, except that this additional limitation shall not apply in the event of a Participant’s death or Disability prior to the expiration of such six-month
period. 
  

 11 

 (ii) Stock Appreciation Rights that are Related Rights (“Related Stock Appreciation
Rights”) shall be exercisable only at such time or times and to the extent that the Options to which they relate shall be exercisable in accordance with the provisions of Section 6 above and this Section 7 of the Plan; provided,
however, that a Related Stock Appreciation Right granted in connection with an Incentive Stock Option shall be exercisable only if and when the Fair Market Value of the Common Stock subject to the Incentive Stock Option exceeds the Exercise
Price of such Option; provided, further, that no Related Stock Appreciation Right shall be exercisable during the first six months of its term, except that this additional limitation shall not apply in the event of a Participant’s
death or Disability prior to the expiration of such six-month period. 
  
 (iii) Limited Stock Appreciation Rights shall only be exercised within the 30-day period following a “Change in Control” (as defined by the Administrator in the Limited Stock Appreciation Right Agreement
evidencing such right) and, with respect to Limited Stock Appreciation Rights that are Related Rights (“Related Limited Stock Appreciation Rights”), only to the extent that the Options to which they relate shall be exercisable in
accordance with the provisions of Section 6 above and this Section 7 of the Plan. 
  
 (c) Payment Upon Exercise. 
  
 (i) Upon the exercise of a Free Standing Stock Appreciation Right, the Participant shall be entitled to receive up to, but not more than, an amount in cash or that number of Shares (or any combination of cash and
Shares) equal in value to the excess of the Fair Market Value as of the date of exercise over the per share Exercise Price specified in the Free Standing Stock Appreciation Right (which Exercise Price shall be no less than 100% of the Fair Market
Value of the Common Stock on the date of grant) multiplied by the number of Shares in respect of which the Free Standing Stock Appreciation Right is being exercised, with the Administrator having the right to determine the form of payment.

  
 (ii) A Related Right may be exercised by a
Participant by surrendering the applicable portion of the related Option. Upon such exercise and surrender, the Participant shall be entitled to receive up to, but not more than, an amount in cash or that number of Shares (or any combination of cash
and Shares) equal in value to the excess of the Fair Market Value as of the date of exercise over the per share Exercise Price specified in the related Option multiplied by the number of Shares in respect of which the Related Stock Appreciation
Right is being exercised, with the Administrator having the right to determine the form of payment. Options which have been so surrendered, in whole or in part, shall no longer be exercisable to the extent the Related Rights have been so exercised.

  
 (iii) Upon the exercise of a Limited Stock
Appreciation Right, the Participant shall be entitled to receive an amount in cash equal in value to the excess of the “Change in Control Price” (as defined in the Award Agreement evidencing such Limited Stock Appreciation Right) of a
share of Common Stock Share as of the date of exercise over (A) the per share Exercise Price specified in the related Option, or (B) in 

  

 12 

 
the case of a Limited Stock Appreciation Right which is a Free Standing Stock Appreciation Right, the per share Exercise Price specified in the Free Standing
Stock Appreciation Right, such excess to be multiplied by the number of Shares in respect of which the Limited Stock Appreciation Right shall have been exercised. 
  
 (d) Non-Transferability. 
  
 (i) Free Standing Stock Appreciation Rights shall be transferable only when and to the extent that an Option would be transferable under
Section 6(f) of the Plan. 
  
 (ii) Related Stock
Appreciation Rights shall be transferable only when and to the extent that the underlying Option would be transferable under Section 6(f) of the Plan. 
  
 (iii) Limited Stock Appreciation Rights shall be transferable only when and to the extent that an Option would be transferable under
Section 6(f) of the Plan. 
  
 (e) Termination of Employment or
Service 
  
 (i) In the event of the
termination of employment or service of a Participant who has been granted one or more Free Standing Stock Appreciation Rights, such rights shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by
the Administrator at or after grant. 
  
 (ii) In
the event of the termination of employment or service of a Participant who has been granted one or more Related Stock Appreciation Rights, such rights shall be exercisable at such time or times and subject to such terms and conditions as set forth
in the related Options. 
  
 (iii) In the event of
the termination of employment or service of a Participant who has been granted one or more Limited Stock Appreciation Rights, such rights shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by
the Administrator at or after grant. 
  
 (f) Term.

  
 (i) The term of each Free Standing Stock
Appreciation Right shall be fixed by the Administrator, but no Free Standing Stock Appreciation Right shall be exercisable more than ten years after the date such right is granted. 
  
 (ii) The term of each Related Stock Appreciation Right shall be the term of the Option to which it relates,
but no Related Stock Appreciation Right shall be exercisable more than ten years after the date such right is granted. 
  
 (iii) The term of each Limited Stock Appreciation Right shall be fixed by the Administrator, but no Limited Stock Appreciation Right shall
be exercisable more than ten years after the date such right is granted. 
  

 13 

  
 Section 8. Restricted Stock, Deferred
Stock and Performance Shares. 
  
 Awards of Restricted Stock,
Deferred Stock or Performance Shares may be issued either alone or in addition to other Awards granted under the Plan. The Administrator shall determine the Eligible Recipients to whom, and the time or times at which, Awards of Restricted Stock,
Deferred Stock or Performance Shares shall be made; the number of Shares to be awarded; the Exercise Price, if any, to be paid by the Participant for the acquisition of Restricted Stock, Deferred Stock or Performance Shares; the Restricted Period
(as defined in Section 8(b)) applicable to Awards of Restricted Stock or Deferred Stock; the performance objectives applicable to Awards of Deferred Stock or Performance Shares; and all other conditions of the Awards of Restricted Stock, Deferred
Stock and Performance Shares. Subject to the requirements of Section 162(m) of the Code, as applicable, the Administrator may also condition the grant of the Award of Restricted Stock, Deferred Stock or Performance Shares upon the exercise of
Options, or upon such other criteria as the Administrator may determine, in its sole discretion. The provisions of the Awards of Restricted Stock, Deferred Stock or Performance Shares need not be the same with respect to each Participant. In the
sole discretion of the Administrator, loans may be made to Participants in connection with the purchase of Restricted Stock under substantially the same terms and conditions as provided in Section 6(e) of the Plan with respect to the exercise of
Options. 
  
 (a) Awards and Certificates. The prospective
recipient of Awards of Restricted Stock, Deferred Stock or Performance Shares shall not have any rights with respect to any such Award, unless and until such recipient has executed an Award Agreement evidencing the Award (a “Restricted Stock
Award Agreement,” “Deferred Stock Award Agreement” or “Performance Shares Award Agreement,” as appropriate) and delivered a fully executed copy thereof to the Company, within a period of sixty days (or such other period as
the Administrator may specify) after the award date. Except as otherwise provided below in Section 8(b), (i) each Participant who is granted an Award of Restricted Stock or Performance Shares shall be issued a stock certificate in respect of such
shares of Restricted Stock or Performance Shares; and (ii) such certificate shall be registered in the name of the Participant, and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to any such Award.

  
 The Company may require that the stock certificates evidencing
Restricted Stock or Performance Shares granted hereunder be held in the custody of the Company until the restrictions thereon shall have lapsed, and that, as a condition of any Award of Restricted Stock or Performance Shares, the Participant shall
have delivered a stock power, endorsed in blank, relating to the Shares covered by such Award. 
  
 With respect to Awards of Deferred Stock, at the expiration of the Restricted Period, stock certificates in respect of such Shares of Deferred Stock shall be delivered to the Participant, or his legal representative,
in a number equal to the number of Shares covered by the Deferred Stock Award. 
  

 14 

 (b) Restrictions and Conditions. The Awards of Restricted Stock, Deferred Stock and Performance
Shares granted pursuant to this Section 8 shall be subject to the following restrictions and conditions: 
  
 (i) Subject to the provisions of the Plan and the Restricted Stock Award Agreement, Deferred Stock Award Agreement or Performance Shares
Award Agreement, as appropriate, governing any such Award, during such period as may be set by the Administrator commencing on the date of grant (the “Restricted Period”), the Participant shall not be permitted to sell, transfer, pledge or
assign shares of Restricted Stock, Deferred Stock or Performance Shares awarded under the Plan; provided, however, that the Administrator may, in its sole discretion, provide for the lapse of such restrictions in installments and may
accelerate or waive such restrictions in whole or in part based on such factors and such circumstances as the Administrator may determine, in its sole discretion, including, but not limited to, the attainment of certain performance related goals,
the Participant’s termination of employment or service as a director, consultant or advisor to the Company or any Parent or Subsidiary, the Participant’s death or Disability or the occurrence of a “change in control” as defined
in the Restricted Stock Award Agreement, Deferred Stock Award Agreement or Performance Shares Award Agreement, as appropriate, evidencing such Award. 
  
 (ii) Except as provided in Section 8(c)(i), the Participant shall generally have the rights of a stockholder of the Company with respect
to Restricted Stock or Performance Shares during the Restricted Period. The Participant shall generally not have the rights of a stockholder with respect to Shares subject to Awards of Deferred Stock during the Restricted Period; provided,
however, that dividends declared during the Restricted Period with respect to the number of Shares covered by Awards of Deferred Stock shall be paid to the Participant. Certificates for unrestricted Shares shall be delivered to the
Participant promptly after, and only after, the Restricted Period shall expire without forfeiture in respect of such Awards of Restricted Stock, Deferred Stock or Performance Shares except as the Administrator, in its sole discretion, shall
otherwise determine. 
  
 (iii) The rights of
Participants granted Awards of Restricted Stock, Deferred Stock or Performance Shares upon termination of employment or service as a director, consultant or advisor to the Company or to any Parent or Subsidiary terminates for any reason during the
Restricted Period shall be set forth in the Restricted Stock Award Agreement, Deferred Stock Award Agreement or Performance Shares Award Agreement, as appropriate, governing such Awards. 
  
 Section 9. Amendment and Termination. 
  
 The Board may amend, alter or discontinue the Plan, but no amendment, alteration, or discontinuation shall be made that would impair the rights of a
Participant under any Award theretofore granted without such Participant’s consent, or that, without the approval of the stockholders (as described below), would: 
  
 (a) except as provided in Section 3 of the Plan, increase the total number of Shares reserved for issuance under the Plan;

  
 (b) change the class of officers, directors, employees,
consultants and advisors eligible to participate in the Plan; or 
  

 15 

 (c) extend the maximum Option period under Section 6(b) of the Plan. 
  
 Notwithstanding the foregoing, stockholder approval under this Section 9
shall only be required at such time and under such circumstances as stockholder approval would be required under Section 162(m) of the Code or other applicable law, rule or regulation with respect to any material amendment to an employee benefit
plan of the Company. 
  
 The Administrator may amend the terms of
any Award theretofore granted, prospectively or retroactively, but, subject to Section 3 of Plan, no such amendment shall impair the rights of any Participant without his or her consent. 
  
 Section 10. Unfunded Status of Plan. 
  
 The Plan is intended to constitute an “unfunded” plan for incentive compensation. With respect to any payments not yet made to a Participant by
the Company, nothing contained herein shall give any such Participant any rights that are greater than those of a general creditor of the Company. 
  
 Section 11. General Provisions. 
  
 (a) Shares shall not be issued pursuant to the exercise of any Award granted hereunder unless the exercise of such Award and the issuance and delivery of
such Shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act and the requirements of any stock exchange upon which the Common Stock may then be
listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
  
 (b) The Administrator may require each person acquiring Shares to represent to and agree with the Company in writing that such person is acquiring the
Shares without a view to distribution thereof. The certificates for such Shares may include any legend which the Administrator deems appropriate to reflect any restrictions on transfer. 
  
 All certificates for Shares delivered under the Plan shall be subject to such stock-transfer orders and other restrictions
as the Administrator may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Common Stock is then listed, and any applicable Federal or state securities
law, and the Administrator may cause a legend or legends to be placed on any such certificates to make appropriate reference to such restrictions. 
  
 (c) Nothing contained in the Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to stockholder approval, if
such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases. The adoption of the Plan shall not confer upon any Eligible Recipient any right to continued employment or service with the
Company or any Parent or Subsidiary, as the case may be, nor shall it interfere in any way with the right of the Company or any Parent or Subsidiary to terminate the employment or service of any of its Eligible Recipients at any time. 
  

 16 

 (d) Each Participant shall, no later than the date as of which the value of an Award first becomes
includible in the gross income of the Participant for Federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Administrator regarding payment of, any Federal, state, or local taxes of any kind required by law to be
withheld with respect to such Award. The obligations of the Company under the Plan shall be conditional on the making of such payments or arrangements, and the Company shall, to the extent permitted by law, have the right to deduct any such taxes
from any payment of any kind otherwise due to the Participant. 
  
 (e) No member of the Board or the Administrator, nor any officer or employee of the Company acting on behalf of the Board or the Administrator, shall be personally liable for any action, determination, or interpretation taken or made in
good faith with respect to the Plan, and all members of the Board or the Administrator and each and any officer or employee of the Company acting on their behalf shall, to the extent permitted by law, be fully indemnified and protected by the
Company in respect of any such action, determination or interpretation. 
  
 Section 12. Stockholder Approval; Effective Date of Plan; Effective Date of Amendments. 
  
 (a) The grant of any Award hereunder shall be contingent upon stockholder approval of the Plan being obtained within 12 months before or after the date
the Board adopts the Plan. 
  
 (b) Subject to the approval of the
Plan by the stockholders of the Company within twelve (12) months before or after the date the Plan is adopted by the Board, the Plan shall be effective as of November 22, 1999. 
  
 (c) Subject to the approval of the Amendments by the stockholders of the Company within twelve (12) months before or after
the date the Amendments are adopted by the Board, the Amendments to the Plan shall be effective as of the first trading day on or after the date on which the Securities and Exchange Commission declares the Company’s Registration Statement
effective (the “Effective Date”). 
  
 Section 13. Term of Plan.

  
 No Option, Stock Appreciation Right, Limited Stock
Appreciation Right, or Awards of Restricted Stock, Deferred Stock or Performance Shares shall be granted pursuant to the Plan on or after November 22, 2009, but Awards theretofore granted may extend beyond that date. 
  

 17 

  
 APPENDIX A

  
 VYYO INC. 
  
 THIRD AMENDED AND RESTATED 2000 EMPLOYEE AND CONSULTANT EQUITY

 INCENTIVE PLAN 
  

	1.	General 

  

	 	1.1.	This appendix (the “Appendix”) is intended to enable the Company to issue Awards in compliance with Amendment no. 132 of the Ordinance (as defined below) and in particular
with the provisions of Section 102 and Section 3(i) of the Ordinance, as amended or replaced from time to time. 

  

	 	1.2.	Any capitalized term not specifically defined in this Appendix shall have such meaning as is ascribed to it in the Vyyo Inc. Third Amended ad Restated 2000 Employee And Consultant
Equity Incentive Plan (hereinafter, the “Plan”) and shall be construed according to the interpretation given to it in the Plan. 

  

	 	1.3.	The provisions of this Appendix shall apply only to Participants who are residents of the state of Israel or those who are deemed to be residents of the state of Israel for the
payment of tax. 

  

	 	1.4.	The Plan and this Appendix are complementary to each other and shall be deemed a single integrated document. Except as otherwise set forth herein, the terms and conditions of the
Plan shall remain unchanged and in full force and effect, and shall govern the grant of Awards to Israeli Employees and to Israeli Non-Employees (as such terms are defined below). 

  

	 	1.5.	In the event of any inconsistencies or conflicting provisions between the provisions of the Plan and the provisions of this Appendix, whether explicit or implied, the provisions of
this Appendix shall prevail. 

  

	2.	Definitions 

  

	 	2.1.	“3(i) Award” means an Award granted pursuant to Section 3(i) of the Ordinance to any person who is an Israeli Non-Employee. 

  

	 	2.2.	“102 Award” means an Award granted pursuant to Section 102 of the Ordinance to any person who is an Israeli Employee. 

  

	 	2.3.	“102 Capital Gain Awards (102 CGA)” means a Trustee 102 Award elected and designated by the Employing Company to qualify for capital gain tax treatment in
accordance with the provisions of Section 102(b)(2) of the Ordinance. 

  

 18 

	 	2.4.	“102 Ordinary Income Award (102 OIA)” means a Trustee 102 Award elected and designated by the Employing Company to qualify for ordinary income tax treatment in
accordance with the provisions of Section 102(b)(1) of the Ordinance. 

  

	 	2.5.	“Controlling Shareholder” shall have the meaning ascribed to it in Section 32(i) of the Ordinance. 

  

	 	2.6.	“Employing Company” shall have the meaning ascribed to it in Section 102(a) of the Ordinance. 

  

	 	2.7.	“Israeli Employee” means a person who is a resident of the state of Israel or who is deemed to be a resident of the state of Israel for the payment of tax, and who
is an employee or an Office Holder (“Nose Missra”) of the Company, or any Parent or Subsidiary of the Company, in each case excluding a person who is a Controlling Shareholder prior to the issuance of the relevant Award or as a
result thereof. 

  

	 	2.8.	“Israeli Non-Employee” means a person who is a resident of the state of Israel or who is deemed to be a resident of the state of Israel for the payment of tax, and
who is (i) a consultant, adviser, service provider of the Company, or any Parent or Subsidiary of the Company, who is not an Israeli Employee, or (ii) a Controlling Shareholder (whether or not an employee of the Company or any Parent or Subsidiary
thereof). 

  

	 	2.9.	“ITA” means the Israeli Income Tax Authorities. 

  

	 	2.10.	“Non-Trustee 102 Award” means an Award granted to an Israeli Employee pursuant to Section 102(c) of the Ordinance, which is not required to be held in trust by a
Trustee. 

  

	 	2.11.	“Ordinance” means the 1961 Israeli Income Tax Ordinance [New Version], as now in effect or as amended or replaced from time to time. 

  

	 	2.12.	“Section 102” means section 102 of the Ordinance and any regulations, rules, orders or procedures promulgated thereunder as now in effect or as amended or
replaced from time to time. 

  

	 	2.13.	“Trustee” means any person or entity appointed by the Company, any of its Parents or any of its Subsidiaries, as applicable and approved by the ITA, to serve as a
trustee, all in accordance with the provisions of Section 102(a) of the Ordinance. 

  

 19 

	 	2.14.	“Trustee 102 Award” means an Award granted pursuant to Section 102(b) of the Ordinance and held in trust by a Trustee for the benefit of the Participant.

  

	3.	Issuance of Awards 

  

	 	3.1.	Without derogating from the provisions of the Plan: (i) Israeli Employees may be granted only 102 Awards; and (ii) Israeli Non-Employees may be granted only 3(i) Awards. In each
case, such Awards shall be subject to the terms and conditions of the Ordinance. 

  

	 	3.2.	The Employing Company may designate 102 Awards granted to Israeli Employees pursuant to Section 102 as Non-Trustee 102 Awards or as Trustee 102 Awards. 

  

	4.	Trustee 102 Awards 

  

	 	4.1.	Awards granted pursuant to this Section 4 are intended to constitute Trustee 102 Awards and are subject to the provisions of Section 102 and the general terms and conditions
specified in the Plan, except for such provisions of the Plan applying to Awards under a different tax law or regulation. 

  

	 	4.2.	Trustee 102 Awards may be granted only to Israeli Employees. 

  

	 	4.3.	Trustee 102 Awards shall be classified as either 102 CGA or 102 OIA, subject to the terms and conditions of Section 102 and the provisions of the Plan and this Appendix

  

	 	4.4.	No Trustee 102 Awards may be granted under this Appendix, unless and until the Employing Company’s election of the type of Trustee 102 Awards granted to Israeli Employees, 102
CGA or 102 OIA (the “Election”), is appropriately filed with the ITA. 

  
 After making an Election, the Company may grant only the type of Trustee 102 Awards it has elected (i.e. 102 CGA or 102 OIA), and the Election shall apply to all grants to Participants of Trustee 102 Awards until such
Election is changed pursuant to the provisions of Section 102(g) of the Ordinance. The Employing Company may change such Election only after the passage of at least one year following the end of the year during which the applicable Employing Company
first granted Trustee 102 Awards in accordance with the previous Election. 
  
 For the avoidance of doubt, such Election shall not prevent the Company from granting Non-Trustee 102 Awards or 3(i) Awards simultaneously with the grant of Trustee 102 Awards. 
  

 20 

	 	4.5.	The grant of Trustee 102 Awards shall be conditioned upon the approval (or the deemed approval pursuant to the provisions of section 102(a) of the Ordinance) of the Plan, this
Appendix and the Trustee by the ITA. 

  

	 	4.6.	Trustee 102 Awards may be granted only after the passage of thirty days (or a shorter period as and if approved by the ITA) following the delivery by the appropriate Employing
Company to the ITA of a request for approval of the Plan (including this Appendix) and the Trustee according to Section 102. 

  
 Notwithstanding the foregoing paragraph, if within ninety (90) days of delivery of the abovementioned request, the appropriate ITA officer notifies the
Employing Company of his or her decision not to approve the Plan or the Trustee, the Awards that were intended to be granted as a Trustee 102 Awards shall be deemed to be Non-Trustee 102 Awards, unless otherwise determined by the ITA officer.

  

	 	4.7.	Anything herein to the contrary notwithstanding, all Trustee 102 Awards granted under this Plan shall be granted or issued to a Trustee. The Trustee shall hold each such Trustee 102
Award, all Shares issued upon exercise thereof, and all other securities received following any exercise or realization of rights, including bonus shares, in trust for the benefit of the Participant in respect of whom such Award was granted. All
certificates representing Awards or Shares issued to the Trustee under the Plan shall be deposited with the Trustee, and shall be held by the Trustee until such time that such Awards or Shares are released from the trust. 

 

	 	4.8.	With respect to 102 CGA and 102 OIA, the Awards or Shares issued upon the exercise thereof and all rights related to them, including bonus shares, will be held by the Trustee for
such period of time as required under Section 102 (currently, at least 24 months (in case of a 102 CGA) and 12 months (in case of a 102 OIA), from the end of the tax year in which such Award was deposited with the Trustee) or a shorter period as
approved by the ITA (hereinafter, the “Holding Period”), under the terms set forth in Section 102. 

  

	 	4.9.	 In accordance with Section 102, the Participant shall not sell, cause the release from trust, or otherwise dispose of, any Trustee 102 Award, any Share issued upon
the exercise thereof, or any rights related to them, including bonus shares, until the end of the applicable Holding Period. Notwithstanding the foregoing but without derogating from the provisions of the Plan and the terms and conditions set forth
in the Award Agreement, if any such sale, release, or disposition occurs during the Holding Period, then the provision of Section 102, 

  

 21 

	 	 
relating to non-compliance with the Holding Period, will apply and all sanctions under Section 102 shall be borne by the Participant.

  

	 	4.10.	Anything herein to the contrary notwithstanding, the Trustee shall not release any Awards which were not already exercised into Shares by the Participant, nor release any Shares
issued upon exercise of the Trustee 102 Awards or rights related thereto, including bonus shares, prior to the full payment of the Exercise Price and Participant’s tax liability arising from the Trustee 102 Awards which were granted to him or
her. 

  

	 	4.11.	In the event that the requirements for the Trustee 102 Awards are not met, then the Trustee 102 Awards shall be regarded as Non-Trustee 102 Awards. 

  

	 	4.12.	Upon receipt of a Trustee 102 Award, the Participant will sign an Award Agreement under which such Participant will agree to be subject to the trust agreement between the Company
and/or its Subsidiaries and the Trustee, stating, inter alia, that the Trustee will be released from any liability in respect of any action or decision duly taken and executed in good faith in relation to this Appendix, or any Trustee 102 Award or
Share issued to him or her thereunder. 

  

	5.	Non-Trustee 102 Awards 

  

	 	5.1.	Awards granted pursuant to this Section 5 are intended to constitute Non-Trustee 102 Awards and are subject to the provisions of Section 102 and the general terms and conditions
specified in the Plan, except for such provisions of the Plan applying to Awards granted under a different tax law or regulations. 

  

	 	5.2.	Non-Trustee 102 Awards may be granted only to Israeli Employees. 

  

	 	5.3.	Non-Trustee 102 Awards that shall be granted pursuant to the Plan may be issued directly to the Israeli Employee or to a trustee appointed by the administrator in his sole
discretion. In the event that the Administrator determines that Non-Trustee 102 Awards, and Shares issued upon the exercise thereof, shall be deposited with a trustee, the provisions of Sections 4.7 and 4.10 of this Appendix shall apply, mutatis
mutandis. 

  

	 	5.4.	In the event that an Israeli Employee who was granted a Non-Trustee 102 Award is an employee of the Company, or any Parent or Subsidiary thereof, such employee will be obligated to
provide his employer, upon the termination of his employment for any reason, with a security or guarantee to cover any future tax obligation resulting from the grant, exercise or disposition of the Award or the Shares issuable upon the exercise
thereof, in the form satisfactory to such employer in the latter’s sole discretion. 

  

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	6.	3(i) Awards 

  

	 	6.1.	Awards granted pursuant to this Section 6 are intended to constitute 3(i) Awards and are subject to the provisions of Section 3(i) of the Ordinance and the general terms and
conditions specified the Plan, except for provisions of the Plan applying to Awards granted under a different tax law or regulations. 

  

	 	6.2.	3(i) Awards may be granted only to Israeli Non-Employees. 

  

	 	6.3.	3(i) Awards that shall be granted pursuant to the Plan may be issued directly to the Israeli Non-Employee or to a trustee appointed by the administrator in his sole discretion. In
the event that the Administrator determines that 3(i) Awards, and Shares issued upon the exercise thereof, shall be deposited with a trustee, the provisions of Sections 4.7 and 4.10 of this Appendix shall apply, mutatis mutandis.

  

	7.	The Award Agreement 

  
 The terms and conditions upon which the Awards shall be issued and exercised, shall be as specified in the Award Agreement to be executed pursuant to the
Plan and this Appendix. Each Award Agreement shall state, inter alia, the number of Shares to which the Award relates, the type of Award granted thereunder (whether a Trustee 102 Award and if so, whether a 102 CGA or 102 OIA, Non-Trustee 102 Award,
or a 3(i) Award), the vesting provisions, the term of the Award, and the exercise price. Any grant of Awards shall be conditioned upon the Participant’s undertaking to be subject to the provisions of Section 102 or Section 3(i), as applicable.

  

	8.	Fair Market Value For Israeli Tax Purposes 

  
 Without derogating from Section 1(p) of the Plan and solely for the purpose of determining the tax liability pursuant to Section 102(b)(3) of the
Ordinance, if at the date of grant of a 102 CGA the Company’s Shares are listed on any established stock exchange or a national market system, or if the Company’s shares are registered for trading within ninety (90) days following the date
of grant of the 102 CGA, the fair market value of the Shares at the date of grant shall be determined in accordance with 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 applicable. 
  

	9.	Exercise of Awards 

  
 Awards shall be exercised in accordance with the provisions of the Plan and the Award Agreement, and when applicable, in accordance with the requirements
of Section 102. 
  

	10.	Assignability and Sale of Awards 

  

	 	10.1. 	 Notwithstanding any other provision of the Plan to the contrary, no Options, Shares of Restricted Stock, Deferred Stock, Performance Shares, or any right 

  

 23 

	 	 
with respect thereto or purchasable thereunder, whether fully paid or not, shall be assignable, transferable or given as collateral or any right with respect
thereto granted to any third party whatsoever, without the prior written consent of the Administrator, and in any event subject to the provisions of the Ordinance. Any purported assignment, transfer, grant of collateral, or pledge of Options, Shares
of Restricted Stock, Deferred Stock, Performance Shares or any right with respect thereto or purchaseable thereunder, in contradiction to the provisions of this Section, directly or indirectly, for an immediate effect or for a future one, shall be
null and void and cause the applicable Award to immediately expire. 

  
 During the lifetime of the Participant all of such Participant’s rights to purchase Shares or to otherwise exercise an Award hereunder shall be exercisable only by the Participant. 
  

	 	10.2.	Without derogating from Section 10.1 above, for as long as Awards or Shares purchased upon the exercise thereof are held by the Trustee on behalf of the Participant, all rights of
the Participant with respect to such Awards and Shares shall be personal, and may not be transferred, assigned, pledged or mortgaged, other than by will or laws of descent and distribution. 

  
 Any purported assignment, transfer, grant of collateral, or pledge of an
Award or Share in contradiction to the provisions of this Section, directly or indirectly, for an immediate effect or for a future one, shall be null and void and cause the Award to expire immediately. 
  

	11.	Integration of Section 102 And Tax Assessing Officer’s Permit 

  

	 	11.1.	With respect to Trustee 102 Awards, the provisions of the Plan, this Appendix and the Award Agreement shall be subject to the provisions of Section 102 and the Tax Assessing
Officer’s permit (to the extent that such permit is issued) (the “Permit”), and said provisions and Permit shall be deemed an integral part of the Plan, this Appendix and the Award Agreement. 

  

	 	11.2.	Any provision of Section 102 or the Permit which is necessary in order to receive or to keep any tax benefit pursuant to Section 102, which is not expressly specified in the Plan,
this Appendix, or the Award Agreement, shall be deemed to have been automatically incorporated into this Appendix and considered binding upon the Company and the Participants who are Israeli Employees or Israeli Non-Employees.

  

	12.	Dividends 

  
 Without derogating from the provisions of the Plan, a Participant shall be entitled to receive dividends with respect to Shares issued upon the exercise
of his or her Awards (whether such Shares are held by the Participant or by the Trustee for his or her benefit), in accordance with the provisions 

  

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of Vyyo Inc.’s Certificate of Incorporation (including all amendments thereto), subject to any applicable taxation on distribution of dividends and,
when applicable, subject to the provisions of Section 102. 
  

	13.	Tax Consequences 

  

	 	13.1.	Any tax arising with respect to the grant or exercise of any Award, the payment for, or disposition of, Shares covered thereby, or from any other event or act in connection
therewith (of the Company, its Parents or Subsidiaries, the Trustee or the Participant), shall be borne solely by the Participant. The Company, its Parents, Subsidiaries, and the Trustee shall be entitled to withhold taxes according to the
requirements of any applicable laws, rules, and regulations, including withholding taxes at source and particularly regulation 7(b) of the Income Tax Regulations (tax benefits on the issuance of shares to employees) 2003. The Participant shall
indemnify the Company, its Parents, Subsidiaries, and the Trustee, as the case may be, and hold each of 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. 

  

	 	13.2.	The Administrator or, when applicable, the Trustee shall not be required to release any share certificate to a Participant until all required tax payments have been fully made.

  

 25

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