Document:

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                        Agreement of Unprotected Tenancy
  According to Law for Tenant Protection (Miscellaneous Instructions) 5728-1968
  As Integrated into Law for Tenant Protection (Consolidated Version) 5732-1972
             As drawn an signed in Holon on the 30th of August 2000
             ------------------------------------------------------

                                     Between

Sadav (1988) Building and Investment Ltd. P.C. no. 51-129680-8
of 43 Aliya HaShniya St., Azor
Tel: 03-6500808
Hereinafter called "the Landlord"

                                       and

C3D Israel Ltd. P.C. no. 51-240389
By way of its authorized managers
Ronen Yaffe id. no. 24914384
Leonardo Brazovsky id. no._________ Tel: 054-408342
Eugene Levitz id. no. ____________
of 2 Professor Bergman, Rabin Park, Rehovot,
 Tel: 08-9366417, Fax: 08-9366419
Hereinafter called: "the Tenant"

                                                            - of the other part-
                                                              -----------------

Whereas:          The landlord occupies and is the owners of the hall marked in
                  plan no. 253 temporary and the kitchenette and 2 bathrooms and
                  reinforced room inside of the rented premises, total area of
                  239 square meters gross that includes a 10% relative
                  partnership in the community areas. Following is a list of the
                  community areas: a) the place where the trash containers stand
                  according to the Authority Plans. b) The entrance rooms
                  (lobbies) of the stair wells. c) The elevator shafts. d)
                  Shafts for air and pipes). e) Elevator machinery rooms. f)
                  Entrance lobby for the rented premises from the elevators. g)
                  The place of the closets for electricity and telephone (water
                  meters). The hall is located on the fifth floor (above the
                  ground floor) in a southwest direction - as it appears on the
                  attached scheme marked in yellow and marked with the letter
                  'a' and represents an inseparable part of this Agreement of
                  Tenancy, and that is located in the new building wing #2 for
                  the high technology industry of 6 floors and halls for the
                  high technology industries (ground floor and 5 typical floors)
                  of 2 stair wells and 2 passenger elevators beginning at ground
                  level and up to the top floor, that is located in the Rabin
                  Industrial Park in Rehovot in lot 1006 temporary previously
                  parcel 70 block 3695 and 4 for roofless parking places marked
                  in the scheme in numbers 128, 129, 130, 131 (hereinafter the
                  parking places) attached and marked in yellow and marked with
                  the letter 'a' (1) and represents an inseparable part of this
                  contract.

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And               whereas: The Landlord wished to lease the premises to the
                  Tenant AS IS at rent that is unprotected by the Law for Tenant
                  Protection (Consolidated Version) 5732-1972 and/or any law
                  that will come in its place or will be added to it on the same
                  subject (hereinafter "Law for Tenant Protection").

And whereas:      The Tenant is set in his opinion to rent the premises for rent
                  that is unprotected by the Law for Tenant Protection

             Accordingly it is agreed, declared and made conditional
                         upon the two sides as follows:
                         ------------------------------

1) The introduction to this contract is an and inseparable part of the body of
this contract.

                 ( - )                                            ( - )
Stamp:   Sadav (1988) Building                       Stamp:   C3D Israel Ltd.
         and Investment Ltd.                                  P.C. no. 51-240389
         P.C. no. 51-129680-8

2) The parties declare as following:

    a) On August 20, 1968, there was no occupant in the premises as per its
       meaning in the Law for Tenant Protection entitled to hold the premises.

    b) The premises are a new building that's building was completed after
       August 20, 1968.

    c) The premises are not rented for key money and the Tenant did not pay to
       the Landlord any moneys and did not commit himself to pay to the Landlord
       any moneys whatsoever except for the monetary obligations that are
       detailed in this contract.

    d) The rent subject of this contract is not protected by the Law for Tenant
       Protection.

    e) The Tenant declares and knows that the Landlord notified him explicitly
       that according to a building permit held by the contractor Pearl Dar -
       Eli Demaz and according to the Rehovot local authority's plan the
       designation of the building in which the premises are located if for a
       high technology building only and/or uses permitted by a building permit
       and/or the competent authorities. It is also emphasized explicitly that
       the basic condition of the tenancy contract between the Tenant and the
       Landlord is that he will not make in the building where the premises are
       located any use as a workshop, welding shop, carpentry shop, garage or
       other businesses and workshops that cause noise or dirt and that the
       designation of the units is the building where the premises are located
       as it is registered in the Co-operative House Regulations is for high
       technology industries - except for those that can be used opposing the
       Law for Allotment of Nuisances 5721-1961 and its regulations, an also
       according to objects and extensions of the Rehovot local building and
       planning committee and/or change of designation as will be permitted by
       the Rehovot local committee. Also the Tenant declares the he was notified
       that the halls on the ground floor might be used for display halls, bank
       branches, and for commercial and services halls etc., and that he will be
       prevented from complaining that the aforementioned use represents a
       nuisance or causes him any damages whatsoever.

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            He was also notified that wing c' of the building that is located
            facing wing a' would be used for an exclusive restaurant and/or
            coffee house and/or any other use that will be approved by competent
            authorities.

    3) This contract cancels previous contracts and agreements whose subject was
       renting the premises if there are any these existing.

    4) The Tenant confirms that he has checked all the facts mentioned in
       paragraph 2 above, and found them to be correct.

    5)
           a. The Landlord commits himself subject to the stated in this
           contract to lease the premises beginning on September 1, 2000 and
           until August 31, 2004 (midnight) (hereinafter "the period of the
           lease").

           Two.   Notwithstanding the aforesaid in clause 5 a' above regarding
                  the period of the lease, an option is granted to the tenant to
                  extentd the period of the lease for 48 additional months (4
                  full years only) that will begin from September 1, 2004 and
                  until August 31, 2008 (midnight).

           Three. To avoid any doubt it is agreed between the parties that the
                  option for extending the period of the lease will be realized
                  automatically for 48 full months of renting except if the
                  Tenant notifies the Landlord in writing at least 120 days
                  before the end of the period of the lease that it is not his
                  intention to realize the option that was given to him by the
                  Landlord as noted in the terms of this contract, that is
                  extending the period of the lease as detailed in clause 5 c'
                  above. And the additional condition that the Tenant fulfilled
                  meticulously all the instruction of this lease contract in
                  such a way as not make a basic breach of the lease contract
                  and also made all the payments to all the different
                  authorities as he agrees to commit himself to in this
                  contract.
                 ( - )                                             ( - )
Stamp: Sadav (1988) Building and                       Stamp: C3D Israel Ltd.
       Investment Ltd.                                        P.C. no. 51-240389
       P.C. no. 51-129680-8

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           Four.  The Landlord will be authorized to cancel this lease contract
                  and to bring it to its end and only if he gave an advance
                  notification in writing 60 days from the day from any
                  verification that the Tenant breached or did not perform on
                  time a basic condition of this lease contract (hereinafter:
                  "the basic breach"). In spite of what is stated in this
                  clause, the Tenant is given the opportunity to repair the
                  breach within 30 days of the dispatch of the letter by the
                  Landlord. If the breach is not repaired then the aforesaid in
                  this clause will apply in full.

       6.
           a.     It is agreed by the parties that the monthly lease fees for
                  the use of the premises includes the 4 unspecified parking
                  places aforementioned in the introduction as follows:

                           1.  For the first two years the Tenant will pay 12
                               dollars for one gross sq. meter including the use
                               of the 4 above-mentioned parking spaces, that is
                               an amount of 2,868 U.S. dollars and VAT in
                               shekels plus linkage differentials of the
                               consumers' price index prices according to the
                               instruction of the contract and against the
                               receipt of an appropriate invoice.

                           2.  At the end of the period of two full years an
                               addition of 5% will be added to the monthly rent
                               subject to the linkage differential according to
                               the contract instructions and with the addition
                               of VAT as per law. To avoid doubt in the case of
                               this topic, beginning from the third year there
                               will be added as stated an additional 5%, and if
                               the option is exercised for four full years in
                               accordance with clause 5 (b) above, then in the
                               fourth year the monthly rent will be as it was at
                               the end of the third rental year and subject to
                               linkage differential in according to the
                               directives of this contract with the addition of
                               VAT as per law and in the fifth and sixth rental
                               year and if the option is exercised as stated
                               beginning from the fifth rental year and until
                               the end of the sixth rental year an additional 5%
                               monthly rental will be added with the addition of
                               VAT as per law and subject to linkage
                               differential, and also beginning in the seventh
                               rental year and until the of the eighth rental
                               year an additional 5% monthly rental will be
                               added with the addition of VAT as per law and
                               subject to linkage differential as per the
                               directives of this contract.

           Two.   It is agreed between the parties that monthly rental fees will
                  be paid once in 3 months in advance until the end of the
                  period of the lease i.e. August 31,2004 (midnight) and/or the
                  extended period of the lease until August 31, 2008 while it is
                  linked to the cost-of-living index and the addition noted in
                  clause 6 (a) 2 above.

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                  To avoid any doubt the aforesaid rental fee is in US dollars
                  translated at the time of the signing of the contract into New
                  Shekels according to the known representative exchange rate on
                  the day of signing the contract, that is August 30, 2000 on
                  which the representative rate of the dollar was 4.028 New
                  Shekels to one US Dollar and the total monthly rental fee in
                  the amount to 11,522 New Shekels, this sum will be linked to
                  the consumer's cost-of-living index with the addition of VAT
                  as per law.

                  1.        It is agreed between the parties that the
                            above-mentioned monthly rental fees will be linked
                            to the cost-of-living index as detailed in the
                            detailed definitions following, and will be adjusted
                            according to the payment terms. The Tenant commits
                            himself to pay the linkage differential of the
                            consumer's price index immediately with the demand
                            that will be received from the Landlord with the
                            addition of VAT as per law as will apply at the time
                            of the demand for payment.

                  2.        In the matter of this agreement the following terms
                            will have these meanings as follows:

                            "Payment linked to the Consumer's Price Index" - if
                            it becomes known from the Consumer's Price Index
                            that will be announced from time-to-time before the
                            actual payment of all the payment that applies to
                            the Tenant according to this agreement (hereinafter:
                            "the new index"), that the new index rose as opposed
                            to the index that was announced on August 15, 2000
                            (index for July, 2000), (hereinafter, "the base
                            index"), the payment that will paid applying to the
                            Tenant according to this agreement, will be
                            increased by the same rate as the new index grew in
                            relation to the base index, and not less than the
                            base index, i.e. 107.3 points.

                 ( - )                                           ( - )
Stamp: Sadav (1988) Building and                       Stamp: C3D Israel Ltd.
       Investment Ltd.                                        P.C. no. 51-240389
       P.C. no. 51-129680-8

                  3.        "Consumer's Price Index" - Consumer's Price Index,
                            including fruits and vegetables, as set by the
                            Central Statistics Bureau and Economic Research, or
                            by any other government agency, or any official
                            index that will come in its place, whether it is
                            built from the same data of which the existing index
                            is built or not, if another index will be used, the
                            index will be adjusted to the rate that will be set
                            by the above-mentioned bureau between it and the
                            index that is replaced. If the above-mentioned
                            bureau does

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                            not set the above rate for 3 months from the
                            announcement of the other index - the aforesaid rate
                            will be set in consultation with economic experts,
                            in such a way that each party to this agreement will
                            nominate an economic experts of his choosing. If the
                            two aforementioned experts do not arrive to an
                            agreed up decision, a third expert will be nominated
                            and his decision will obligate the parties in all
                            subjects and matters.

                            The dates of the aforementioned payments in this
                            contract are a basic and fundamental condition in
                            the contract and breach of one of these conditions
                            will be considered as a basic breach of the
                            contract. Notwithstanding what is stated in this
                            clause, it is agreed between the parties that a
                            delay of up to 7 days in the payment of the rental
                            fee by the Tenant to the Landlord will not be
                            considered as a basic breach of the terms of the
                            contract.

           Three. At the signing of the contract the Tenant will pay to the
                  Landlord and amount of 34,657 New Shekels that is equal to
                  8,604 US Dollars according to the known representative
                  exchange rate of the day of the signing of the contract with
                  the addition of VAT as accepted in the Law on account of the
                  rental fee for the period of September 1, 2000 and until
                  November 30, 2000 (midnight) and the signature of the Landlord
                  on this lease contract is a confirmation of his acceptance of
                  the above-mentioned sum as balance of the payment of the
                  rental fee. For the lease period that begins on December 1,
                  2000, it will be paid to the Landlord as explained in clause 6
                  (b) above.

           Four.  It is agreed by the parties that non payment of a check(s) or
                  bills that were submitted to the Landlord by the Tenant as
                  rental fees as said above will be seen additionally as a
                  breach of any other law as not meeting the payment terms of
                  the lease contract on all its meanings from the clauses of
                  this contract, and then it will be within the authority of the
                  Landlord to enter the premises, to change the locks and take
                  possession to remove the properties belonging to the Tenant
                  and to store them on the account of the Tenant, and that the
                  Tenant will have no claim against the Landlord for this action
                  and this is only after a written notice sent by registered
                  mail by the Landlord to the Tenant that the Tenant does not
                  meet the terms of the contract and that 30 days have passed
                  from the day of mailing the letter.

           Five.  It is agreed by this that non payment of a check and/or bill
                  that was submitted by the Tenant on time will cause such that
                  the Tenant will bear the charges for non-honoring of the check
                  and/or bill for extraordinary bank interest at the accepted
                  rate at Igud Bank of Israel Ltd.

     7.    The Tenant declares by this that it is known to him that in addition
           to the rental fees, he is to pay VAT as required by the law.

           To avoid doubt it is agreed between the parties that the payment of
           VAT for each and every payment will be done by postdated check to the
           date of the VAT report to authorities according to the law.

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     8.    a.
                  1.       The Tenant will make use of the premises only for the
                           purposes of his business as a manufacturing company
                           for the high technology industry and that his
                           business activity in this industry and all that is
                           involved in it and that he will receive a license for
                           it from the authorities, in connection with managing
                           a business on the premises.
                  2.       To avoid doubt, the Landlord does not object if the
                           Tenant if the Tenants is able to operator the
                           premises on all days of the year including Sabbaths,
                           Holidays, and nights on condition that the Tenant
                           will not be a nuisance and the explicit condition
                           that the activity will not be against the qualified
                           authorities' demands.

           Two.   Any advertising that the Tenant will order for himself or
                  signs by him will be paid by the Tenant and will be ordered
                  collectively by the Tenant, the placement, the size, that
                  shape and the color will be determined only by the Landlord
                  and or the building architect or engineer.

                 ( - )                                            ( - )
  Stamp: Sadav (1988) Building and                     Stamp: C3D Israel Ltd.
         Investment Ltd.                                      P.C. no. 51-240389
         P.C. no. 51-129680-8

         Three.   The Tenant declares by this that he is knowledgeable in his
                  business and the licensing terms and that before placing his
                  signature on this contract he was given opportunity to check
                  and that he actually checked the suitability of the premises
                  for the purpose of the renting and the possibility to receive
                  a license or licenses required for the operation of the
                  purpose of the renting the premises as is, and that he found
                  the premises suitable for the purposes of the lease and the
                  matter of receiving a license as stated.

                  The Tenant commits himself to manage his business on the
                  premises within the framework of the purpose of the lease
                  according to the licenses and required permits by any law from
                  the authorities and or other government or municipal bodies,
                  for the business license and to obtain at his expense and on
                  his responsibility any license or permit as stated before the
                  operation of the business in the premises.

     9.
           a.     The Tenant checked the premises in the condition AS IS and
                  found it suitable to the purpose of his lease and declares
                  that he did not find any non-suitability whatsoever, and if
                  some were discovered he surrenders any assistance to himself

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                  that he is entitled to for them and that any choice of claim
                  and/or after proof. As well, it is also known to the Tenant
                  that the load on the roof area - usable weight is 300 kg. per
                  sq. meter and that before the entrance of equipment to the
                  premises, he is to receive professional consultation and
                  directives of the building site engineer Yaakov Chai.

         Two.     The Landlord commits himself upon transfer of holding in the
                  premises, the premises in AS IS condition as detailed in the
                  appendix and attached to this lease contract that is an
                  inseparable part of of it and is marked with the letter 'b'.

         Three.   It is agreed by the parties that the possibility is given to
                  the Tenant to make light changes in the construction of the
                  premises (adding gypsum walls, carpets) and this is all
                  subject to the submission of the program for changes that the
                  Tenant is interested in carrying out in the premises to the
                  Landlord for advance approval.

10.      The Landlord and/or his representative is authorized to enter the
         building of the premises at any reasonable time and with advance
         arrangement with the Tenant and in the presence of the Tenant or
         whoever is acting in his name in order to ascertain if the directives
         of this contract are being done by the Tenant, but an examination like
         this and/or the right for examination do not acquire for the Tenant the
         right to breach and/or continue to breach this contract.

11.
         a.       It is explicitly emphasized that the lease period is four
                  years only, that begins on September 1, 2000 and until the day
                  August 8, 2004 (midnight) inclusive.

12.      The Landlord declares that the premises will pass to the Tenant when it
         will be connected to the electric grid and to the water network when he
         has made all the arrangements for connections regarding electric meter
         and to the water system and to the local authorities at his expense
         alone.

13.      In addition to the above-mentioned rental fees, the Tenant will bear
         payments for the following matters that will be paid by him beginning
         on the day of the entrance of the Tenant to the premises.

         a.       General city taxes levied by the city and Business tax if he
                  is deemed liable.

         Two.     Water supply and water usage and electric bills, trash fees
                  and all municipal fees that are levied on a resident in a
                  rented premises.

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         Three.   Payment of expenses for insuring service and maintenance for
                  air conditioners and fire and smoke detectors that are in the
                  premises.

         Four.    Payments that will levied by the house committee or by
                  building representation in which the premises is located
                  and/or expenses for daily maintenance and cleaning in the
                  stairwells and the areas around the building. To avoid doubt,
                  participation of the Tenant in the expenses detailed in clause
                  13 d' will be in proportion or the area in use to the overall
                  area of all the building residents.

                 ( - )                                             ( - )
Stamp: Sadav (1988) Building and                       Stamp: C3D Israel Ltd.
       Investment Ltd.                                        P.C. no. 51-240389
       P.C. no. 51-129680-8

       Five.      The Tenant was notified that the building where the premises
                  is located, will be managed by the joint building
                  representation or by a maintenance company or management
                  company that will sign a contract with the joint building
                  representation and that the Tenant commits itself towards the
                  Landlord to bear all the maintenance expenses of the premises
                  and common area adjacent to it and all that will be determined
                  by all the residents and unit owners in the building where the
                  premises is located if by way of the building representation
                  or by way of the maintenance company or management company
                  that will be determined by the building representation or all
                  the building residents and owners of units in the building. It
                  is agreed by the parties that on the day of signing of the
                  contract the Tenant was notified that he pays $1 for each
                  square meter of gross area of the premises but if the majority
                  of the residents in the building in which the premises is
                  located will change the management company or alternatively
                  the management company will come to an agreement with the
                  joint building representation or the majority of the residents
                  on a rate different from the building management fee per one
                  square meter (gross) then the Tenant commits himself to pay
                  according the agreed upon new price per one square meter
                  (gross) of the area of the premises with the addition of VAT
                  as required by the law.

14.    Any invoice submitted because of the because of the aforementioned in
       paragraph 13 above by a body to which needs to be paid will serve as
       prima facie proof in the matter of origin of the debt in relation to the
       invoices for periods that only partially relate to the periods in which
       the Tenant leased the premises, and the Tenant will redeem a proportional
       part only.

       Notwithstanding what is stated in this paragraph it is agreed between the
       parties that the Tenant will be given a 30-day extension after the
       receipt of the demand from the authorities to check the debt for the
       reason of the payment. After that he will be obligated to pay.

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15.    The Tenant will be responsible for any penalty, collection fees, interest
       and payment that will be levied on him for delay in making the payments
       stated in paragraph 13 above, and will be paid within 7 days of demand of
       payment for such.

16.    The Landlord is authorized to pay and payment notice for the matters
       named in paragraph 13 above in a case like this and the Tenant will need
       to pay to Landlord any amount paid by him as stated within 7 days from
       receipt of the notification of such from the Landlord and against
       presentation of the lawful payment certificate that was paid, and the
       Tenant is not authorized to appeal on the size of the amount as stated in
       paragraph 13 above. And this is after as mentioned above that the Tenant
       was given a delay of 30 days to check the amount of his debt to the
       various authorities.

17.
       a.         The Tenant commits himself to make use of the premises
                  cautiously and that he is responsible for all harm to the
                  premises and/or damages and/or spoilage that happens and/or is
                  caused to it, except for damages that are caused to the
                  premises from deterioration or age or normal wear.

       Two.       The Tenant is not authorized to make any changes whatsoever or
                  investment whatsoever in the premises. If in spite of the
                  directives of this clause the Tenant carries out changes and
                  additions in the premises, he will not be entitled to any
                  payment for them and the expenses of restoring it to its prior
                  condition will fall on the Tenant and will be paid by him
                  within 7 days from the day they are demanded by the Landlord.
                  If the Tenant wished to carry out minor changes for the sake
                  of the lease by plan of changes as mentioned on clause 9 (c)
                  above he will request from the Landlord to receive his
                  agreement in advance under the explicit condition that it is
                  known to him that any additions that will be added by the
                  Tenant to the leased building will belong to the Landlord
                  including electrical installations installed in the premises.

       Three.     Subject to what is stated in clause b' above the Landlord
                  agrees to allow the Tenant to make internal changes in the
                  premises for the sake of the lease including building
                  additional partitions and/or moving or canceling existing
                  partitions and also to invest investments in the premises but
                  not to destroy the outside walls and not to harm the
                  foundations of the building. And this is all under the
                  explicit condition that the Tenant confirms explicitly to the
                  Landlord that at the time of the evacuation of the premises,
                  the condition of the premises will remain as it is on the
                  evening of the evacuation except if the Landlord agreed that
                  these investments will remain in the premises - in this case
                  the additions that the Tenant leaves will belong to the
                  Landlord without any consideration on his part.

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                 ( - )                                            ( - )
Stamp: Sadav (1988) Building and                       Stamp: C3D Israel Ltd.
       Investment Ltd.                                        P.C. no. 51-240389
       P.C. no. 51-129680-8

                  It is also agree that if there is need for whitewashing the
                  walls as a result of use in the premises, the Tenant commits
                  himself to whitewash before he evacuates the premises. This
                  statement does not apply to normal wear.

       Four.      Any waiver or agreement on a matter in which a party will
                  waive or will agree to for the other party will be valid only
                  if given in writing and signed.

18.    At the end of the period of the lease, if needed, the Tenant will
       evacuate the premises of any person and/or items not belonging to the
       Landlord and will return the holding of the premises to the Landlord when
       the premises is in working condition and without any defect and/or harm,
       except for reasonable deterioration (the evacuation as stated in this
       paragraph will be called hereinafter "evacuation of the premises").

       a.         If the Tenant breaches one of the fundamental conditions of
                  the contract the Landlord will be permitted after the dispatch
                  of a written warning of 30 days to vacate the premises
                  immediately. If the Tenant does not vacate the premises as
                  demanded the Landlord will be permitted to remove the Tenant
                  by force by his agreement in advance as is given in this
                  clause and all the expenses due to this evacuation will fall
                  on the Tenant only such that the Tenant is responsible for all
                  damage that will be caused as a result of the evacuation by
                  force by the Landlord, and this is subject to the
                  aforementioned in clause 5 (d) above.

19.    The Tenant will carry out the evacuation of the premises immediately, in
       one of the following happens:

       a.         The Tenant carried performed a basic breach of this contract
                  and received a detailed notification in writing from the
                  Landlord for repairing the breach within 30 days in a
                  registered letter and did not repair the breach and as stated
                  in clause 5 (d) above.

       Two.       A receiving order was made against the Tenant or a receiver
                  was named over the assets of the Tenant or a winding-up order
                  was given against the Tenant and the order was not canceled
                  within 60 days of the order being given or the Tenant notified
                  of its decision to voluntarily wind-up.

       Three.     Without harming the aforementioned above, if the Tenant does
                  not pay of the payments levied on him by this contract, for
                  example, rental fees, municipal taxes, payments for
                  electricity etc., for a period of three months.

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       Four.      Without harming the aforementioned above, if the Tenant uses
                  the premises for a purpose not explicitly agreed upon above.

       Five.      Notwithstanding what is stated in this agreement between the
                  parties that this action will not be done by the Tenant except
                  if he was given advance notice of 30 days in writing for
                  repairing the breach and the breach was not repaired by him
                  and all as stated subject to 5 (d) above.

20.    a.         If the obligation to vacate the premises falls on the
                  Tenant for any reason at all, the Tenant will pay to the
                  Landlord for ever day of delay in the evacuation of the
                  premises in this way, damages agreed in advance at the rate of
                  US$200 for each day of delay. The amount will be converted to
                  Shekels according to the representative rate of the dollar on
                  the date of the payment of the damages agreed upon according
                  to this clause. The above-mentioned agreed upon damages are as
                  per their meaning in the Contracts Law (Remedies for Breach of
                  Contract) 5731-1971.

       Two.       There is nothing in the above-stated to harm the rights of the
                  Landlord to sue for rejection of responsibility and/or
                  immediate evacuation of the Tenant from the premises and
                  return of the exclusive use and holding in the premises to
                  itself or any other remedy coming to it according to this
                  contract or according to the law. And all is explicitly
                  conditional that the Landlord succeeds in his suit against the
                  Tenant.

       Three.     It is agreed and declared by this between the parties that the
                  Tenant will not be authorized to deduct and/or set-off from
                  the monthly rental fees due to the Landlord and/or that will
                  be due to the Landlord in accordance with the instructions of
                  this contract regardless of the reason for the set-off.

                 ( - )                                             ( - )
Stamp: Sadav (1988) Building and                       Stamp: C3D Israel Ltd.
       Investment Ltd.                                        P.C. no. 51-240389
       P.C. no. 51-129680-8

21.    If the Tenant is a corporation as such that notwithstanding all that was
       done to show in this contract that they will be authorized to make use of
       the premises in the name of the Tenant by and only by the shareholders
       listed in the memorandum and the regulations of the corporation and no
       other person excepting company employees and/or a subsidiary that is
       under the control of the Tenant.

22.
       a.         The Tenant commits himself to use cautionary devices in order
                  to avoid damages and/or harm towards people and/or any
                  property and to prevent the loss of property form the building
                  premises.

                                       12
<PAGE>

         Two.     The Tenant agrees to indemnify the Landlord for any amount
                  that will be decided against him for the Landlord whose cause
                  was a wrong of damages or injury to a person and/or for
                  property connected to the premises during the period of the
                  lease that stems from and/or is connected indirectly to his
                  deeds or oversights except for an event that happens in the
                  public areas.
                  It is agreed between the parties that the stated
                  indemnification will apply on events that will be transmitted
                  to the Tenant by written notice of the above-mentioned suit
                  and allowing the Tenant to defend himself against it.

23.      In any event that the Tenant vacates and/or abandons the premises
         within the period of the lease, by his own initiative or for any other
         reason, the Tenant will be committed to pay to the Landlord the rental
         fees and all other payments due to him according to this contract,
         until the end of the period of the lease.

24.      The Tenant commits himself to insure at his expense the premises with
         extended fire insurance including terror risks, flood and earthquake
         risks for the period of the use in the amount of - US$150,000 and he
         commits himself to present to the Landlord within 30 days of the
         beginning of the lease, a valid insurance policy as stated by the
         Tenant or a copy of the temporary coverage certificate within 10 days.
         There is nothing in the above stated to lessen the responsibility of
         the Tenant for any damage that will be caused to the premises. It is
         the responsibility of the Tenant that the insurance policy include a
         condition that the insurer does not have right of right of revocation
         against the Landlord and that the Tenant commits himself to insure for
         third party liability including fire, explosion, natural damages and
         panic damages to a limited responsibility of US$ 150,000 per claim and
         - US$ 200,000 for the period.

         The Tenant will be solely responsible for any action against the
         landlord corporeal damages which will arise out of use of the leased
         asset. Likewise, the tenant undertakes to hold the landlord harmless
         against such action, should such action be brought and such judgement
         be entered against him.

         It is agreed between the parties that at the time of ordering the
         insurance policy by the Tenant from his insurance agent he will
         instruct him to add the name of the Landlord as an additional
         beneficiary in the name of the insured and will include in the policy a
         clause for mutual liability, that is according to this clause each of
         the parties for the needs of this policy will be considered as a third
         party each unto the other.

25.      It is agreed explicitly that the Tenant is not authorized to rent the
         premises and/or transfer the holding to others except if it receives
         for it agreement in writing from the Landlord and as well the Tenant
         commits himself to transfer this contract or any right or any benefit
         deriving from it to another or to allow use of the premises or part of
         it in any fashion whatsoever, except for the Tenant's workers and/or
         the subsidiary of the Tenant or another company under the control of
         the Tenant.

                                       13
<PAGE>

         To avoid doubt, it is agreed by the parties that the Landlord will not
         prevent its agreement to the entrance of an alternate resident to the
         premises in place of the Tenant but this is subject to the alternate
         Tenant being suitable to the characteristics of the other residents of
         the building in which the premises is located and will be suitable for
         the purpose of the lease according to the building permit and will
         adopt the conditions of the agreement between the Tenant and the
         Landlord including the collaterals in their entirety only in a case
         like this. After the contract is signed with the alternative resident,
         then the Tenant will be released from his liabilities subject to the
         fulfilling of the directives of the evacuation of premises by him.

                 ( - )                                            ( - )
Stamp:   Sadav (1988) Building and                     Stamp: C3D Israel Ltd.
         Investment Ltd.                                      P.C. no. 51-240389
         P.C. no. 51-129680-8

26.      The Landlord will be authorized to sell the premises without the
         agreement of the Tenant to any third party and on condition that the
         third party know that he is acquiring the premises with a resident
         according to the contract between the Tenant and the Landlord and that
         in a case like this the conditions of the contract will apply even on
         the third party until its conclusion including the option for extending
         the lease period if there will be a extended period of the lease as
         specified in the conditions of this lease contract.

27.      Any payment whatsoever that one party needs to pay it according to this
         contract and the other party paid it for any reason whatsoever, then
         the other side undertakes to return the payment immediately to the
         party that paid it and that didn't have to pay it all this against the
         presentation of a suitable receipt, with the addition of linkage
         differential and interest according to the Law of Interest and Linkage
         Differential Assessment.

28.      It is agreed between the parties that the Tenant is not authorized to
         bring this contract to a conclusion before the end of the period of the
         usage except if the two parties will come to an explicit agreement in
         writing for another agreement as specified in this paragraph, and even
         if the Tenant ceases the use or benefit of the premises for any reason
         whatsoever before the conclusion of the period of usage, he obligates
         himself to continue and pay the usage fee until the conclusion of the
         period of the lease according to this contract. There is nothing in the
         above stated to harm the rights of the Landlord to sue from the Tenant
         all the balance of the usage fees until the conclusion of the period of
         usage according to the contract and to sue from the Tenant for any
         damage that was caused or that will be caused to the Landlord and as
         well to sue from the Tenant any payment that the Tenant will owe
         according to this contract and did not pay.

                                       14
<PAGE>

29.      a. To ensure all the liabilities of the Tenant according to this
         contract and without harming the remainder of the obligations of the
         Tenant including the evacuation of the premises on time, payment of any
         damage caused to the premises, and payment of rental fees, and payment
         assessed on the Tenant by this contract, the Tenant will deposit with a
         representative of the Landlord as a trustee Attorney Ilan Shein:

            1.             An unconditional autonomic bank guarantee to the
                           order of the Landlord that will be in the value in
                           New Shekels of US$ 25,000 and linked to the
                           Consumer's Price Index without signing a personal
                           guarantee of two of the Tenant's managers.

            2.             The guarantee will be for a period of a year with an
                           extension of 30 days every year until the conclusion
                           of the contractual relationship between the Landlord
                           and the Tenant.

            3.             This guarantee will be presented to representative
                           for the Landlord Attorney Ilan Shein 48 hours before
                           the Tenant enters the premises.

            4.             It is agreed between the parties that any guarantee
                           like this that is given to the order of the Landlord
                           will be deposited in trust with Attorney Ilan Shein
                           representative for the Landlord and that no steps
                           will be taken to use it except if an advance notice
                           in writing is sent form him to the Tenant of the
                           breaches that were executed against the Landlord.
                           After 14 days have passed from the warning to the
                           Tenant for the repair of the breach and the breach
                           was not repaired, alternatively, Attorney Ilan Shein
                           representative of the Landlord (hereinafter: "the
                           trustee") will return the letter of bank guarantee of
                           the Tenant upon fulfilling the following conditions:

                           1.       The Tenant pays all his debts to the
                                    Landlord, authorities or all other
                                    institutions according to the directives of
                                    this contract, and presents the appropriate
                                    receipts in connection with it.
                           2.       The premises are returned according to the
                                    directives of this contract to the Landlord
                                    to his satisfaction and subject to normal
                                    wear.

         Two.     In addition to the stated in clause a', the Tenant will
                  deposit with the representative of the Landlord as trustee
                  Attorney Ilan Shein (hereinafter "the lawyer") 2 nonnegotiable
                  and undated checks to the order of the Electric Company and to
                  the joint house representation at the Rabin Park at the Pearl
                  Building in the Science building.

                                       15
<PAGE>

                 ( - )                                            ( - )
Stamp:   Sadav (1988) Building and                     Stamp: C3D Israel Ltd.
         Investment Ltd.                                      P.C. no. 51-240389
         P.C. no. 51-129680-8

         Three.   It is agreed between the parties that with the acceptance of
                  the bank guarantee and/or nonnegotiable checks according to
                  the terms of this contract, there is no waiver from the side
                  of the Landlord on his rights for other remedies against the
                  Tenant whether they are the detailed remedies in the body of
                  the contract or they are remedies at his disposal because of
                  the law existing at the time of the signing of the contract or
                  they will be in existence at the time of the breach.

         Four.    The non transferal of the collateral on time that stems from
                  the failure of the Tenant will be considered a basic breach of
                  the contract by the Tenant and the Landlord will be entitled
                  without harming his other rights to cancel the contract and/or
                  to delay the holding of the premises to the Tenant according
                  to his consideration.

30.      It is conditional and explicitly agreed that the parties see this
         contract that allows the Tenant the use of the premises for the period
         stated in this contract alone or any extended period as detailed in the
         contract and that at the conclusion of the period of the said usage,
         all authority for any use whatsoever in the premises will expire from
         the Tenant and no person or entity whatever except for the Landlord
         will be authorized to use any more the premises or to be in it.

31.       It is agreed that in any case that the Landlord and/or the Tenant do
          not exercise their rights that stem from this agreement, any presence
          or extension will not be considered as a waiver and/or agreement
          and/or admission of any kind from their sides.

32.       Any performance of extension or waiver authorization for receiving
          moneys or change will not be enough to indicate the intention of
          either party to surrender any of its rights according to this contract
          and will not have judicial validity for any change except if the
          change was done explicitly in writing and signed by the parties in
          writing.

33.       It is agreed between the parties that within 21 days from the signing
          of this lease contract the parties will report to the municipality,
          the electric company, the telephone company and to the other
          authorities on his being an unprotected tenant on the premises.

34.       The parties determined that breach of any directive and/or one of the
          terms in clauses 5, 4, 28, 19, 17, 13, 9, 8 above constitute a
          fundamental breach in the terms of this contract.

                                       16
<PAGE>

35.      The parties are choosing for themselves for the purpose of this
         agreement and all connected in it the following addresses:

         The Landlord:              as detailed above (in the introduction).

         The Tenant:                as detailed above (in the introduction). -

         All notices that will be dispatched by registered mail from one of the
         branches of the Israel Mail by one of the parties to the other
         according to one of the addresses above will be considered as if it was
         received as documented not later than 72 hours after having been sent
         as above.

36.      The parties read well the contents of this lease agreement and signed
         it of their own free will.

37.      In the case that the terms of the Landlord and/or the Tenant refer to
         more than one person (or entity), each individual of the Landlord
         and/or of the Tenant, relating to the matter, is responsible according
         to this agreement individually and collectively. Any proof that one of
         the individuals of the Landlord and/or of the Tenant will sign on all
         document, note, letter or approval on any matter and subject connected
         to this agreement, its execution or what stems from it, requires the
         signature of all the remainder of the Landlord's or Tenant's
         individuals, according to the matter and the signature of this
         agreement by the individuals of the Landlord and the Tenant will be
         considered for every matter and subject as having been given the
         authorization by the individuals of the Landlord and/or Tenant
         according to the matter, between themselves, to obligate the remainder
         of the individuals of the Landlord and/or Tenant according to the
         matter, in every matter and subject connected to this agreement.

                 ( - )                                             ( - )
Stamp:   Sadav (1988) Building and                     Stamp: C3D Israel Ltd.
         Investment Ltd.                                      P.C. no. 51-240389
         P.C. no. 51-129680-8

38.      It is agreed between the parties that for the purpose of composing this
         agreement and signatures, Attorney Ilan Shein of 95 Hankin St. in Holon
         is representing the parties.

         To avoid doubt, the Tenant will pay to Attorney Ilan Shein for the care
         of this lease contract the amount of US$ 850 in New Shekels at the
         representative dollar exchange rate with the addition of VAT as per
         law. This amount will be paid to Attorney Ilan Shein on the date of the
         signing of the lease agreement. To avoid doubt, it is known to the
         Tenant and the Tenant declares and agrees that notwithstanding the
         above mentioned payment in the case of suits from the side of the
         Landlord against the Tenant, Attorney Ilan Shein will be authorized to
         represent him in the future in any matter in connection with this

                                       17
<PAGE>

         contract and the Tenant will not have any claims whatever in this
         subject toward Attorney Ilan Shein.

39.      Expenses of lease contract stamps if it applies, will be paid by the
         parties in equal parts.

40.      Judicial authority:

         The parties agree by this that the courts of Tel-Aviv-Yaffo will have
         singular judicial authority in all the matters stemming from this
         contract.

41.      General:

         It is agreed by the parties that a basic condition to validate this
         lease contract is to vacate the premises subject of this contract by
         the unprotected resident by the name of Placa Ltd. according to the
         letter from July 31, 2000 attached and which is an inseparable part of
         this contract. To avoid any doubts, so long as Placa Ltd. does not
         vacate the place, the Tenant will have no claim or demand against the
         Landlord until the evacuation of the premises by Placa Ltd. and
         cancellation of the contract with Placa Ltd. between the Landlord and
         Placa Ltd.

                 And in witness whereof the parties have signed:

              ( - )                                               ( - )
--------------------------------                       -------------------------
              The Landlord                                      The Tenant
Stamp:   Sadav (1968) Building                         Stamp: C3D Israel Ltd.
         and Investment Ltd.                                  P.C. no. 51-240389
         P.C. no. 51-129680-8

                                       18
<PAGE>

                                    ANNEX B'

              Which form an integral part of the Tenancy Agreement
              ----------------------------------------------------

            Drawn and signed in Holon on the 30th day of August, 2000

                                     Between

Sadav (1968) Building and Investment Ltd. P.C. no. 51-129680-8
of 43 Aliya HaShniya St., Azor
Tel: 03-6500808
Hereinafter called "the Landlord"

                                       and

C3D Israel Ltd. id. no. 51-240389
By way of its authorized managers
Ronen Yaffe id. no. 24914384
Leonardo Brazovsky id. no._________ Tel: 054-408342
Eugene Levitz id. no. ____________
of 2 Professor Bergman, Rabin Park, Rehovot,
 Tel: 08-9366417,  fax: 08-9366419
Hereinafter called: "the Tenant"

                                                            - of the other part-
                                                              -----------------

1.       According to the aforesaid in the Tenancy Agreement's conditions on
         par. 9 the premises was delivered to the Tenant detailed as follows:

         a.       Decorative ceiling of "Random Fisher" type 1.22x0.61 at the
                  price of $17 US dollars per sq.m.

         b.       Internal cast wall division according to the lessee's plan,
                  straight standard type with 18 cm thickness, with 2" isolation
                  + putty + "Emulkir" paint.

         c.       Every Room has a plywood door with beehive filling, the Frame
                  painted, Formica covering coating or door painted with oil
                  paint, or white painted "Decoral" door.

                                       19
<PAGE>

         d.       "Logo" wall to wall carpet as is on a considerable area of the
                  leased and parquet floor as well.

STAMP:            Sadab (1988) Building and Investments Ltd.
                  (   -   )

STAMP:            C-TRI D Israel Ltd
                  51-240389-0
                  (   -   )

         e.       Split air conditioning or mini-central. The air conditioning
                  power shall be according to the manufacturer's standard needs,
                  the air conditioning includes conduit systems, grills for
                  distributing air in all rooms, and 2 system control boxes.

         f.       Smoke and fire detector according to the standard.

         g.       Sheet ceiling for covering the air-conditioner motor.

         h.       20 lightning switches.

         i.       30 wall sockets.

         j.       15 telephone jacks.

         k.       15 flush Perspex light housings, 120x20 cm, at a price of
                  $50.- dollars per unit (including installation). Each housing
                  holds 2 fluorescent tubes.

                                       20
<PAGE>

         l.       In order to prevent any doubt, the bathroom containing two
                  toilets and kitchenette will be according to the standard
                  existing in the premises property today, including water and
                  sewage connections.

         m.       1 post box in the entrance lobby on the ground floor.

         It is agreed between the parties that at the time of leaving the
         premises property, the above detailed property will remain
         the landlord's property.

              in witnesses whereof we have hereunto set our hands:

               (  -  )                                        (    -    )
------------------------------------                 ---------------------------
         The Landlord                                         The Tenant
STAMP:   Sadab (1988)                                STAMP:   C-TRI D Israel Ltd
         Building and Investments Ltd.                        51-240389-0<PAGE>   1

                                                                    EXHIBIT 10.1

                               September 26, 2000

Community Bank, N.A.
5790 Widewaters Parkway
Dewitt, New York 13214

Dear Ladies and Gentlemen:

                  The undersigned is a shareholder of The Citizens National Bank
of Malone ("Citizens") and is the owner of shares of common stock of Citizens
("Citizens Common Stock").

                  Citizens, Community Bank System, Inc. ("CBSI"), and Community
Bank, N.A. ("Community") are considering the adoption and/or execution of an
Agreement and Plan of Merger (the "Merger Agreement"), providing for certain
transactions pursuant to which Citizens would be merged with and into Community
(the "Merger"). The execution of the Merger Agreement is subject in the case of
Community to the execution and delivery of this letter agreement (this
"Agreement"). In consideration of the substantial expenses that Community will
incur in connection with the Merger and in order to induce Community to execute
the Merger Agreement and to proceed to incur such expenses, the undersigned
agrees and undertakes, in his capacity as a shareholder of Citizens as follows:

                  1. Voting of Shares. The undersigned will vote or cause to be
voted for approval and adoption of the Merger Agreement all the shares of
Citizens Common Stock the undersigned is entitled to vote with respect thereto,
unless by a two-thirds vote the Board of Directors of Citizens votes to
terminate the Merger Agreement and accept a superior agreement based upon their
fiduciary duties.

                  2. No Transfer of Shares. The undersigned will not effect any
transfer or other disposition (except by operation of law) of any of the
undersigned's shares of Citizens Common Stock until Citizens' shareholders have
voted to approve and adopt the Merger or until the Merger Agreement has been
terminated pursuant to its terms, except for any transfer mandated by law or
court order. In the case of any transfer of operation of law or otherwise, this
Agreement shall be binding upon and inure to the benefit of the transferee to
the extent permitted by law. Any transfer or other disposition in violation of
the terms of this paragraph 2 shall be null and void.

                  3. Affiliates Obligated. The undersigned acknowledges and
agrees that the provisions of paragraphs 1 and 2 hereof shall also apply to
shares of Citizens Common Stock
<PAGE>   2
owned by (a) his or her spouse, (b) any of his or her relatives or relatives of
his or her spouse occupying his or her home, (c) any trust or estate in which he
or she, his or her spouse, or any such relative owns at least a 10% beneficial
interest or of which any of them serves as trustee, executor or in any similar
capacity, and (d) any corporation or other organization in which the
undersigned, any affiliate of the undersigned, his or her spouse, or any such
relative owns at least 10% of any class of equity securities or of the equity
interest.

                  4. Related Actions. In the capacity described in this
Agreement, the undersigned shall take or cause to be taken all action necessary
or desirable on the undersigned's part so as to permit completion of the Merger
at the earliest possible date and shall not take, or cause or to the best of the
undersigned's ability permit to be taken, any action which would substantially
impair the prospects of completing the Merger pursuant to the Merger Agreement.

                  5. Covenants under Rule 145. The undersigned has been advised
that the issuance of shares of common stock of CBSI ("CBSI Common Shares") to
the undersigned pursuant to the Merger will be registered under the Securities
Act of 1933, as amended (the "Securities Act"), pursuant to a registration
statement on Form S-4 (the "S-4 Registration Statement"). The undersigned has
also been advised that the undersigned will or may be deemed an "affiliate" of
Citizens at the time the Merger is submitted to a vote of the shareholders of
Citizens. Accordingly, the undersigned may not sell or otherwise dispose of any
CBSI Common Shares except in accordance with Rule 145(d) promulgated under the
Securities Act.

                  Generally speaking, this means that, to the extent that the
undersigned is an "affiliate", in any given three month period the undersigned
may not sell or otherwise dispose of a number of shares of CBSI Common Shares
which exceeds the greater of (i) 1% of the outstanding number of CBSI Common
Shares (or approximately 69,900 CBSI Common Shares) or (ii) the average weekly
trading volume during the four weeks preceding the sale. In addition, any CBSI
Common Shares must be sold in a brokers' transaction or in a direct transaction
with a market maker. In other words, there is no limitation on you selling CBSI
Common Shares unless you seek to sell more than 69,900 shares in a three month
period. Further, the restrictions discussed in this paragraph are only
applicable for a one year period following the closing of the Merger.

                  6. Remedies. The undersigned acknowledges and agrees that any
remedy at law for breach of the foregoing provisions shall be inadequate and
that, in addition to any other relief which may be available, Community shall be
entitled to temporary and permanent injunctive relieve without the necessity of
proving monetary damages.

                  IN WITNESS WHEREOF, the undersigned has executed this
Agreement as of the date of first written.

                                    Very truly yours,

                                    ---------------------------

                                       2
<PAGE>   3
Accepted and agreed to as of
the date first above written:

COMMUNITY BANK, N.A.

By:______________________

                                       3

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