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**Exhibit
  2.17**

CONVERTIBLE
  LOAN AND WARRANT AGREEMENT

THIS CONVERTIBLE LOAN AND WARRANT AGREEMENT (the Agreement) made as of the____ day of July 2003, by and between NUR Macroprinters Ltd., an Israeli company (the Company), and the persons and entities identified in Schedule 1 attached hereto (the  Investors).

WITNESSETH:

WHEREAS the Company wishes to receive an irrevocable undertaking from the Investors to provide the Company
with a loan for an amount between US$2,000,000 and US $4,000,000 (the Principal Amount); and

WHEREAS the Investors desire to undertake to provide the Company with their portion of the Principal Amount (the Loan Undertaking); and

WHEREAS
  in consideration for the Loan Undertaking the Company shall issue to the Investors
  warrants exercisable into Ordinary Shares of the Company (Ordinary
  Shares) and pay to the Investors a commitment fee, on the terms and
  conditions set forth herein; and

WHEREAS the Company and the Investors wish to set forth the terms and conditions regarding the exercise of
the Loan Undertaking by the Company.

NOW,
THEREFORE, in the consideration of the mutual promises and covenants set forth herein, the parties
agree as follows:

1.             Advance of Loan and issue of Warrants

| | 1.1 | Undertaking
      to provide Loan. Subject to the terms and conditions of this Agreement
      at the Closing (as defined below) the Investors shall undertake to lend
      to the Company up to the Principal Amount as set forth opposite each Investors
      name in Schedule 1 attached hereto in consideration of
      (i) the issuance by the Company of a warrant (the Warrant)
      in the form attached hereto as Schedule 2 for the purchase
      of Ordinary Shares equal to 15% of the amount of each Investors Loan
      Undertaking divided by $0.52 exercisable at $0.52 per share for a period
      of five years from the Closing and subject to the conditions set forth therein
      and (ii) a cash commitment fee  in an amount equal to 2% of each
      Investors respective Loan Undertaking (the Cash Commitment).
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

| | 1.2 | Drawdown
      of Loan.The Company may call upon the Loan Undertaking (the Draw
      Down) at any time within 1 year from the Closing provided that
      the Company is not in a state of insolvency or bankruptcy, at such time
      Prior to the Company exercising any Draw Downs, the Company may on ten days
      notice cancel the Loan Undertaking and release the Investors commitments
      (the Investors will retain the Loan Undertaking Warrants and the Cash Commitment)..
      The Company may draw down the Principal Amount (Draw Down Amount)
      in units of one million dollar ($1,000,000) increments. To effect a Draw
      Down the Company shall serve written notice to the Escrow Agent  (as
      defined in Section 2.2.3 below) which notice shall state the exact amount
      which the Company wishes to receive and the date on which such amount is
      required to be made available (Draw Down Date) such date
      to be no less than seven (7) business days following the date on which the
      Escrow Agent receives notice of a Draw Down from the Company.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1.3 | Draw
      Down Closing. On the Draw Down Date the Escrow Agent shall release to
      the Company the pro rata share of the Draw Down Amount for each Investor
      whereupon the Company shall (i) issue to each Investor a convertible loan
      note bearing interest at a rate of 12% per annum and with a term of 42 months
      from Closing (the Loan Note) in the form attached hereto
      as Schedule 3. . Any portion of the outstanding principal
      of the Loan Note and accrued but unpaid interest may be converted (subject
      to shareholder approval pursuant to The Nasdaq Stock Market Inc. Marketplace
      Rule (4350(i))) at any time at the option of the Investors at the Conversion
      Price as defined below. (ii) issue to that Investor a Warrant to purchase
      Ordinary Shares (the Draw Down Warrant)in the form attached
      hereto as Schedule 4. The number of Draw Down Warrants to
      be issued to each Investor shall be equal to 15% of the amount of the Draw
      Down Amount divided by Draw Down Warrant Exercise Price which will be the
      lesser of (a) the average closing bid price of the Companys shares
      on NASDAQ during the ten (10) days preceding the Draw Down Date or (b)$0.52
      (as such term is defined in the Draw Down Warrant), exercisable Draw Down
      Warrant Exercise Price for a period of five years from the Draw Down Date
      and subject to the conditions set forth therein.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | 1.4 | Security.
      The Company agrees to secure the repayment of the Principal Amount and any
      accrued and unpaid interest on the Loan Notes by creating at Closing a first
      priority floating charge on the Companys assets for the benefit of
      the Investors which shall be subordinated to the Companys current
      charges and encumbrances on the Companys assets, as well as to any
      charges created by the Company in favor of banking institutions(the Floating
      Charge). Following repayment to the Investors of their Loan Undertaking
      and any accrued interest the Investors shall execute such documents as are
      necessary to release the Floating Charge. In the event of a default by the
      Company of payments of interest and/or principal the Investors may not unilaterally
      exercise their right to foreclose without the prior consent of Bank Hapoalim
      B.M., Bank Leumi Le-Israel Ltd, Israel Discount Bank Ltd. (the Banking
      Institutions), for as long as one or all of the Banking Institutions
      have not commenced a foreclosure procedure of the Company.                                                                                                                                                                                                                                                                                                                                            
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | 1.5 | Repayment. The
      Company undertakes to pay to the Investors the Principal Amount, together
      with interest thereon (denominated in United States dollars) at a rate of
      interest of 12% per annum, payable quarterly in arrears. There shall be
      no repayment of the Principal Amount by the Company for twenty-four (24)
      months following the Closing. Thereafter, and provided that the Company
      has paid any sums due to its banks at the date of such repayment the Company
      shall pay one sixth (1/6) of the Principal Amount, not to exceed $500,000,
      at the end of each quarter for five quarters, with the balance due and payable
      at the end of the sixth quarter (that is, 42 months from the Closing). Notwithstanding
      the above, the Company may prepay all amounts owed to the Investors, at
      any time, subject to the Company providing the Investor with a ten (10)
      day prior written notice informing the Investors of such intention to prepay.
      In the event that the Company is unable to comply with the payment schedule
      set out herein, any sums unpaid by the Company to the Investors shall be
      deferred to the following quarter.                                                                                                                                                                                                                                                          



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| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1.6 | Default.
      Notwithstanding anything herein to the contrary, in the event of a default
      by the Company on payments of interest and/or principal, the exercise price
      of the Warrants and Draw Down Warrants shall be reduced to the dollar equivalent
      of NIS1.0 and the interest rate of the Loan Notes will increase to 18% per
      annum if the default remains uncured for a period exceeding 45 days.             
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | 1.7 | Conversion.
      The Investors may at any time during the period that the Loan Undertaking
      is outstanding at their option,convert the Loan Undertaking into Ordinary
      Shares of the Company at the conversion price of $0.62 per Ordinary Share.
      Upon conversion, Investors shall have such rights as granted to them in
      the Registration Rights Agreement, a copy of which is attached hereto as
      Schedule 5.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | 1.8 | In no event
      shall the Loan Note be convertible into Ordinary Shares unless and until
      the Company obtains shareholder approval as provided in NASD Rule 4350 (i)(D);
      provided, however, that prior to obtaining shareholder approval, the Company
      shall only be able to Draw Down that amount that would not necessitate the
      Company getting shareholder approval under such rule.                            
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                            

2.            
  Closing

| | 2.1 | The closing
      (the Closing) of transactions contemplated herein shall
      take place at the offices of Barnea & Co, legal counsel to the Company,
      at 3A Jabotinsky St., Ramat Gan, Israel, as soon as possible, but in any
      event no later than, July th 2003, or at such other time and
      place as shall be mutually agreed upon between the Company and the Investors.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                
| | 2.2 | At the
      Closing, the following transactions shall occur simultaneously (no transaction
      shall be deemed to have been completed or any document delivered until all
      such transactions have been completed and all required documents delivered):                                                                                                                                
| |     |                                                                                                                                                                                                                                                                                                                                                                                                

| | 2.2.1 | The Company
      shall issue to each of the Investors the Warrants in the form attached as
      Schedule 2.                                                                                                                                                  
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                
| | 2.2.2 | the Company
      shall pay each Investor the Cash Commitment (as set forth opposite each
      Investors name in Schedule 1).                                                                                                                                
| |       |                                                                                                                                                                                                                                                                
| | 2.2.3 | Each Investor
      shall pay to the Escrow Agent an amount equal to the Loan Undertaking, to
      hold in Escrow in accordance with the terms of the Escrow Agreement attached
      hereto as Schedule 7 with each Investor executing such Escrow Agreement.
| |       |                                                                                                                                                                                                                                                                
| | 2.2.4 | The Company
      and the Investors shall execute and deliver the Registration Rights Agreement,
      a copy of which is attached hereto as Schedule 5                                                                                                        



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3.             Representations and Warranties of the Company

| | The Company
      hereby represents and warrants to the Investors, and acknowledges that the
      Investors are entering into this Agreement in reliance thereon, as follows:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                               

| | 3.1 | Organization. The
      Company is duly organized, existing in Israel as a public company limited
      by shares pursuant to the Companies Law 5759-1999 (the Companies Law),
      and registered by the Registrar of Companies as public company, number 52-003986-8.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                           

| | 3.2 | Validly
      Existing. The Company validly exists as a company under the laws of
      the State of Israel. The Company has the full corporate power and authority
      to conduct its business as currently conducted and the Company had at all
      relevant times the full corporate power and authority to conduct its business
      as previously conducted, save that if at any time the Company did not have
      the full corporate power and authority to conduct its business as previously
      conducted, the lack of such corporate power and authority did not have a
      material adverse effect on the Company.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

| | 3.3 | Public
      Listing. As of October 1995 the Ordinary Shares of the Company are registered
      for trading on the Nasdaq National Market (Nasdaq) under the
      symbol NURM.In November 2002, the Company received a compliance
      notice from The Nasdaq Stock Market, Inc., stating that, for a period of
      30 consecutive trading days, its ordinary shares closed below the minimum
      bid price of $1.00 per share as required for continued listing on The Nasdaq
      National Market. In accordance with Nasdaqs Marketplace Rules, we
      had until May 5, 2003 to regain compliance with Nasdaqs continued
      listing requirements. We have been unable to demonstrate compliance with
      the continued listing requirements and, accordingly, have applied to transfer
      our securities to The Nasdaq SmallCap Market and the Company has been notified
      by the NASD that such transfer has been accepted.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | 3.4 | Share
      Capital. The registered share capital of the Company is NIS 50,000,000,
      divided into 50,000,000 Ordinary Shares, of which no more than [17,155,859]
      Ordinary Shares are issued and outstanding as of [December31th,
      2002]. In addition, as of [December 31th, 2002] the Company had
      issued and outstanding options and warrants exercisable into no more than
      [2,188,578Ordinary Shares].                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | 3.5 | Full
      Disclosure. To the best of the Companys knowledge, the Form 20-F
      of the Company of May 15th, 2003 (the 20-F Form)
      that includes the Companys annual report for the year ended December
      31, 2002 does not incorporate or contain any untrue statement of a material
      fact or omit to state any material fact required to be stated therein or
      necessary to make the statements therein not misleading, all as of May 15th,
      2003. Any subsequent filings filed by the Company are attached hereto as
      Schedule 3.5.                                                                                                                                                                                                                                                                                                                                                                                   
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | 3.6 | Due
      Authorization. The Warrants and Draw Down Warrants, when issued
      at the Closing in accordance with the provisions of this Agreement and the
      Ordinary Shares underlying the Warrants and Draw Down Warrants (the Warrant
      Shares) and the Ordinary Shares issued upon the conversion of
      the Loan Notes (the Loan Shares), shall all be duly authorized,
      validly issued, fully paid, non-assessable and clear and free from any lien,
      encumbrance, or any other third party right whatsoever.                                                                                                                                                                                                                                                                                                                                                                                                                
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            



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| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 3.7  | Approvals. The
      execution and delivery of this Agreement and the full performance of all
      other obligations and undertakings of the Company contemplated hereunder
      will have been duly approved by the Board of Directors of the Company. Shareholder
      approval,pursuant to The Nasdaq Stock Market Inc. Marketplace Rule (4350(i)),
      or if required under any other applicable law, will be sought by the Company
      upon completion of Closing. Subject to such shareholders approval, all acts
      required to be taken by the Company to authorize the execution and delivery
      of this Agreement, the performance of each of its obligations hereunder
      and the consummation of the transaction contemplated hereunder have been
      duly taken and are legally valid and in full force and effect.                                                                            
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | 3.8  | No Violation.
      The execution and delivery of this Agreement and the performance of and
      compliance with all other obligations and undertakings of the Company contemplated
      hereunder will not result in a violation of, or conflict with, or constitute
      a default, or give rise to any right of termination, cancellation or acceleration
      or the loss of any benefit under: (i) the Articles of Association of the
      Company; (ii) any note or contract, in any form, to which the Company is
      a party or by which it or any of its property is bound or affected; or (iii)
      any applicable law in any relevant jurisdiction, order, injunction, or judgment
      of any court or governmental bureau or authority, domestic or foreign, or
      any arbitration award applicable to it or any of its properties or assets
      having an adverse material effect on the Company.
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | 3.9  | Binding
      Obligation. This Agreement, when executed and delivered by or on behalf
      of the Company, shall constitute the valid and legally binding obligation
      of the Company, legally enforceable against the Company in accordance with
      its terms. There is no consent, approval, order, license, permit, action
      by, or authorization of, or filing with any governmental authority (including
      any notifications) or any person that is required to be obtained or made
      on the part of the Company prior to the Closing (other than shareholders
      approval as detailed in section 3.7 above) that has not been, or will not
      have been, obtained by the Company prior to the Closing in connection with
      the valid execution, delivery, and performance of this Agreement.                                                                                              
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | 3.10 | Effectiveness. Each
      representation and warranty herein is deemed to be made on the date of this
      Agreement and shall survive and remain in full force and effect at the Closing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

4.            
  Representations and Warranties of the Investors

| | The Investors
      hereby represent and warrant to the Company, and acknowledge that the Company
      is entering into this Agreement in reliance thereon, as follows:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                         

| | 4.1 | This Agreement,
      when executed and delivered by the Investors, will constitute a valid, binding,
      and enforceable obligation of each of the Investors.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                 

| | 4.2 | Each Investors
      is a US accredited investor  (a US person),
      as that term is defined in Regulation §230.501 under Securities Act
      of 1933, as amended; (the Securities Act) and has such
      business and financial experience as is required to protect its own interests
      in connection with its decision to enter this Agreement.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 4.3 | The Investor
      understands, acknowledge and agree that the Warrant Shares and the Loan
      Shares (as defined in Section 3.6)have not been registered under the Securities
      Act and may not be offered or sold in the United States or to U.S. persons
      unless such shares are registered under the Securities Act and applicable
      state securities laws, or an exemption from the registration requirements
      of the Securities Act and such state securities laws is available. The Investors
      understand that the certificate evidencing the Warrant Shares and the Loan
      Shares will be imprinted with a legend in substantially the following form:
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

| | The
      Shares represented by this Certificate have not been registered under the
      United States Securities Act of 1933. The Shares have been acquired for
      investment and may not be sold, transferred or assigned in the absence of
      an effective registration statement for these Shares under the United States
      Securities Act of 1933, or an opinion of NUR Macroprinters Ltds counsel,
      that registration is not required under the said Act.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

| | 4.4 | The execution
      of this Agreement does not, and the consummation of the transactions contemplated
      hereby and compliance by the Investors with the provisions hereof, will
      not (i) result in any conflict with, breach of, or default (or give rise
      to any right of termination, cancellation or acceleration or the loss of
      any benefit) under any of the terms, conditions or provisions of any material
      agreement, permit or other instrument or obligation to which the Investors
      are a party, or by which the Investors or any of their properties or assets
      may be bound or (ii) violate any law or order applicable to them or any
      of their properties or assets having an adverse material effect on the Investors.
      No consent or approval by any governmental authority is required in connection
      with the execution by the Investors of this Agreement or the consummation
      by the Investors of the transactions contemplated hereby except for such
      actions, consents or approvals as will be obtained as of the Closing.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

| | 4.5 | The Investor
      understands and acknowledges that the participation at the Closing by any
      party defined by the Israeli Companies Law, 5759-1999 (the Law)
      as a controlling shareholder of the Company (Controlling Shareholder)
      shall require the approval of the Shareholders of the Company by a special
      majority as more particularly set out in the Law and that without such approval
      a Controlling Shareholder will be prohibited from participating as herein
      set forth.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | 4.6 | Each representation
      and warranty herein is deemed to be made on the date of this Agreement,
      and shall survive and remain in full force and effect at the Closing.                                                                                                                                                                                                                                                                                                                                             

5.             Conditions Precedent

| | 5.1 | The obligations
      of the Investors to proceed with Closing is subject to the fulfillment at
      or before the Closing of each and every of the following conditions precedent,
      any one or more of which may be waived in whole or in part by the Investors,
      which waiver shall be in writing and at the sole discretion of the Investors:
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                            

| | 5.1.1 | Each and
      every representation and warranty made by the Company in this Agreement
      shall have been true and correct in all material respects when made and
      shall be true and correct in all material respects as if originally made
      on and as of the date of the Closing,
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |       |                                                                                                                                                                                                                                                                
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 5.1.2 | All covenants,
      agreements, and conditions contained in this Agreement to be performed or
      complied with by the Company prior to or at the Closing, shall have been
      fully performed or complied with by the Company prior to or at the Closing.
| |       |                                                                                                                                                                                                                                                                

| | 5.1.3 | The Company
      shall have received the consent of its banks to postpone principal repayments
      of the Companys outstanding long-term bank loans for a period twelve
      (12) months and satisfactory renegotiation of the loan covenants.                                                                                                                                                                                                                                                                                                            
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | 5.1.4 | There shall
      not then be in effect any order or judgment enjoining or restraining the
      transactions contemplated by this Agreement and to the Companys best
      knowledge no suit, proceeding or investigation shall have been commenced
      by any governmental authority or private person on any ground, restraining,
      enjoining or hindering, the transaction contemplated herein and the Company
      shall have received any and all consents and approvals required by it to
      consummate the transactions contemplated herein.
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

| | 5.2 | The obligation
      of the Company to proceed with Closing is subject to the fulfillment at
      or before the Closing of the following conditions precedent, any one or
      more of which may be waived in whole or in part by the Company, which waiver
      shall be in writing and at the sole discretion of the Company:
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                   

| | 5.2.1 | The representations
      and warranties made by the Investors in this Agreement shall have been true
      and correct in all material respects when made, and as of the Closing as
      if made on the date of the Closing.                                                                                                                                                                                                                                                                           
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 5.2.2 | All covenants,
      agreements, and conditions contained in this Agreement to be performed or
      complied with by the Investors prior to or at the Closing.                                                                                                                                                                                                                                                                                                                                          
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 5.2.3 | The Investors
      have secured all permits, consents, waivers, and authorizations, if any,
      that shall be required from them under law or contract to lawfully consummate
      this Agreement.                                                                                                                                                                                                                                                                                                   
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 5.2.4 | There shall
      not then be in effect any order enjoining or restraining the transactions
      contemplated by this Agreement.                                                                                                                                                                                                                                                                                                                                                                        
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 5.2.5 | In the
      event that an Investor shall also be a Controlling Shareholder  the
      Company shall require that the Shareholders approve the participation of
      such Controlling Shareholder by a special majority of votes as more particularly
      set out in the Law. For the avoidance of doubt the non-satisfaction of this
      condition shall not prohibit the Company proceeding with a Closing with
      other Investors who, according to the Law, are not Controlling Shareholders.
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          



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6.             Affirmative Covenants

| | 6.1 | Confidentiality
| | --- | ---------------
| |     |                

| | 6.1.1 | The Investors
      agree that any Confidential Information (defined below) obtained pursuant
      to this Agreement, or provided to the Investors prior to or after the Closing,
      will not be disclosed without the prior written consent of the Company;
      provided that, in connection with periodic reports to its shareholder
      or partners, the Investors may, without first obtaining such written consent,
      make general statements, not containing technical or specific business information,
      regarding the nature and progress of the Companys business; and provided
      further, that the Investors may provide summary information regarding the
      Companys financial information in its reports to its respective shareholders
      or partners, but may not annex to such reports the full financial information
      to be provided hereunder by the Company. All of the above shall be subject
      to the explicit reporting requirements pertaining to the Investors under
      all applicable laws, orders and judgments (including the Israeli Securities
      Law 1968).
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

| | 6.1.2 | For the
      purposes of this Section 6.1, Confidential Information
      shall mean all information, including, but not limited to, financial information,
      business plans, budgets, customer lists, computer software, source codes,
      plans, drawings, technical specifications, patents, copyrights, and other
      intellectual property rights, in any form (paper, disk, or other), relating
      to the business of the Company. However, Confidential Information shall
      not include information which (a) was in the Investorss possession
      prior to its disclosure, as shown by prior written records; (b) is or becomes
      available to the public through no fault of the Investors; (c) was disclosed
      to the public by operation of law, (including any court order or judgment);
      or (d) is rightfully received by the Investors from a third party without
      a duty of confidentiality.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

| | 6.2 | Use
      of Proceeds. The Company will use the net proceeds for working
      capital and general corporate purposes, as determined by the Companys
      Board of Directors from time to time.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7.             Registration Rights

| | The  Loan
      Shares shall have registration rights as set forth in the Registration Rights
      Agreement attached hereto as Schedule 5 including an
      entitlement to one demand registration right at the Companys expense
      and one at the Investors expense, and unlimited piggyback registration
      rights. The Warrant Shares shall have unlimited piggyback registration rights
      as set forth in Schedule 5.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8.             Miscellaneous

| | 8.1 | Further
      Assurances. Each of the parties hereto shall perform such further acts
      and execute such further documents as may reasonably be necessary to carry
      out and give full effect to the provisions of this agreement and the intentions
      of the parties as reflected thereby.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 8.2 | Governing
      Law.   This Agreement shall be governed by and construed in
      accordance with the laws of the State of Israel, without giving effect to
      the rules respecting conflict of law. All disputes, controversies, differences
      or questions arising out of or relating to this Agreement, or to the validity,
      interpretation, breach, violation of any term hereof, shall be adjudicated
      by the courts of competent jurisdiction sitting in Tel Aviv. Anything to
      the contrary notwithstanding, the provisions of this Section 8.2 shall not
      apply to the Registration Rights Agreement, which shall be subject to the
      provisions thereof.                                 
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 8.3 | Successors
      and Assigns; Assignment. Except as otherwise expressly stated to the
      contrary herein, the provisions hereof shall inure to the benefit of, and
      be binding upon, the successors, assigns under law, heirs, executors, and
      administrators of the parties hereto.                                                                                                                                                                                                                                                                                                                                                                                                                                
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 8.4 | Entire
      Agreement; Amendment and Waiver.   This Agreement and the
      Schedules hereto constitute the full and entire understanding and agreement
      between the Parties with regard to the subject matters hereof and thereof.
      All prior understandings and agreements among the Parties, including the
      Term Sheet executed by the Parties, are void and of no further effect. Any
      term of this Agreement may be amended, waived, or discharged (either prospectively
      or retroactively, and either generally or in a particular instance), by
      written consent of the parties hereto, other than the Registration Rights
      Agreement which may only be amended as set forth therein).
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 8.5 | Brokers. Except
      as set forth in the Placing Agreement with Rockwood Inc., no agent or broker
      or any person acting in a similar capacity on behalf of or under the authority
      of the Company is or will be entitled to any brokers or finders
      fee or any other similar commission or fee in connection with the transactions
      contemplated hereby.                                                                                                                                                                                                                                                                                                                                                  
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

| | 8.6 | Expenses. At
      the Closing, the Company will pay the legal fees of the Investors up to
      amount of US$15,000.
| | --- | ---------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                      

| | 8.7 | Notices,
      etc. All notices and other communications required or permitted
      hereunder to be given to a party to this Agreement shall be in writing and
      shall be telecopied or mailed by registered or certified mail, postage prepaid,
      or otherwise delivered by hand or by messenger, addressed to such partys
      address as set forth below:
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                        

| | If to the
      Investors: | to
      such address and by facsimile as set forth in Schedule 1
      attached hereto.                       
| | -------------------------- | ---------------------------------------------------------------------------------------------------------------
| |                            |                                                                                                                
| | If to the
      Company:   | Nur Macroprinters
      Ltd.
      Attn: David Amir, CEO 
      12 Abba Hilel Silver Street 
       Lod, Israel
| |                            |                                                                                                                
| | Facsimile:                 | (972) 8
      921-8918                                                                                         
| |                            |                                                                                                                
| | With a
      Copy:         | Michael
      Barnea                                                                                           

| |            | Barnea
      & Co.           
| | ---------- | -----------------------------
| |            | 3A Jabotinsky
      Street,  
| |            | Ramat Gan
      52520, Israel
| |            |                              
| | Facsimile: | (972)
      3 613 3355       
| |            |                              



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| |  | 
| |  | 

| | or such other address with respect to a party as such party shall notify each other party in writing
as above provided.                                                                                                                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                   
| | Any notice sent in accordance with this Section 8.7 shall be effective (i) if mailed, five (5) business
days after mailing, (ii) if sent by messenger, upon delivery, and (iii) if send via telecopier, upon
transmission and telephonic confirmation of receipt. The term business day shall mean
any Monday through Friday on which the banks in Israel are open for business.
| |                                                                                                                                                                                                                                                                                                                                                                                   

| | 8.8  | Delays or Omissions.
      No delay or omission to exercise any right, power, or remedy accruing to
      any party upon any breach or default under this Agreement, shall be deemed
      a waiver of any other breach or default therefore or thereafter occurring.
      Any waiver, permit, consent, or approval of any kind or character on the
      part of any party of any breach or default under this Agreement, or any
      waiver on the part of any party of any provisions or conditions of this
      Agreement, must be in writing and shall be effective only to the extent
      specifically set forth in such writing. Unless otherwise provided by law,
      all remedies, either under this Agreement, or under law, or otherwise afforded
      to any of the parties, shall be cumulative and not alternative.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 8.9  | Counterparts; Facsimiles.
        This Agreement may be executed in any number of counterparts,
      each of whom shall be deemed an original and enforceable against the parties
      actually executing such counterpart and all of which together shall constitute
      one and the same instrument. Each party may rely on the other partys
      facsimile signatures as original binding commitments of such other party.                                                                                                                                                                                                                                                                                                                                                                                                      
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 8.10 | Heading, Preamble,
      and Schedules. The titles and subtitles used in this Agreement are used
      for convenience only and are not to be considered in construing or interpreting
      this Agreement. The Preamble and Schedules are an integral and inseparable
      part of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          



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IN
  WITNESS WHEREOF the parties have signed this Agreement.



Nur Macroprinters Ltd.By:  ______________________                                                     Date:
  _____________________Name:Title:

INVESTOR

_________________________                                                      Date:
  ___________________Name:



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List of Schedules

Schedule 1                             Investorss
  address, Amount of Loan, Amount of Cash Commitment.

Schedule 2                            
Form of Warrant.

Schedule 3                            
  Form of Loan Note.

Schedule 3.5                         
  Filings since the last 20F

Schedule 4                            
  Form of Draw Down Warrant.

Schedule 5                            
Registration Rights Agreement.

Schedule 6                            
  Placing Agent Agreement.

Schedule
  7 Escrow Agreement



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Schedule 1

List of Investors

|**Name/Entity**                      | **Address**    | ******Amount
      of Loan** | ******Cash
      Commitment**
|------------------------------------ | -------------- | ---------------------------- | -----------------------------
|Dan and
      Edna Purjes            | ************** | US$
      1,150,000          | US$
      23,000             
|First Purjes
      Descendants, LP   | ************** | US$
      50,000             | US$
      1,000              
|Second
      Purjes Descendants, LP  | ************** | US$
      50,000             | US$
      1,000              
|Y Securities
      Management, Ltd.  | ************** | US$ 50,000                   | US$
      1,000              
|Myles Wittenstein                    | ************** | US$
      1,000,000          | US$
      20,000             
|Barbara
      Stoller                | ************** | US$
      50,000             | US$
      1,000              
|Mark Wittenstein                     | ************** | US$
      50,000             | US$
      1,000              
|Bridges
      and PIPES, LLC         | ************** | US$
      300,000            | US$
      6,000              
|United
      European Bank and Trust | ************** | US$
      300,000            | US$
      6,000              
|Richard
      Ornstein               | ************** | US$
      100,000            | US$
      2,000              
|Len Knappmiller                      | ************** | US$
      50,000             | US$
      1,000              
|JM Hull
      Associates, L.P.       | ************** | US$
      100,000            | US$
      2,000              
|Drake Investments
      Ltd.         | ************** | US$
      50,000             | US$
      1,000              
|Gary Gelman                          | ************** | US$
      100,000            | US$
      2,000              
|David Amir                           | ************** | US$
      50,000             | US$
      1,000              
|The Purjes
      Foundation          | ************** | US$
      50,000             | US$
      1,000              
|**Total**                            |                | **US$
      3,500,000**      | **US$70,000**                



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