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                                                                    EXHIBIT 10.7


                                  LOAN CONTRACT


Made and Executed in Migdal Ha'emek this __ day of _______________ 1998.


BETWEEN:    P.C.B. Ltd. Corporate (Pub.) No. 52-003779-7
            Old Industrial Zone, Migdal Ha'emek 10556 (hereinafter: the
            "Lender")

                                                               OF THE FIRST PART

AND:        Camtek Ltd. Pr/51-123543-4
            Old Industrial Zone, Migdal Ha'emek 10556 (hereinafter: the
            "Borrower")

                                                              OF THE SECOND PART

WHEREAS,    The Lender has advanced various sums to the Borrower as a loan; and

WHEREAS,    The parties wish to determine the conditions of the loan and the
            repayment thereof,

                  Therefore, it is declared, agreed and stipulated between the
parties as follows:

1.       PREAMBLE

         The preamble to this Agreement constitutes an integral part thereof.

2.       THE LOAN

         The lender has advanced to the Borrower a loan in an aggregate sum the
         balance of which on the date of the signature of this Agreement amounts
         to NIS ___________ (hereinafter: the "Loan"). The loan will be repaid
         by the Borrower to the Lender in accordance with the provisions and
         terms of this Contract herein contained.

3.       LINKAGE DIFFERENTIALS AND INTEREST

         The Loan will be linked to the Consumer Price Index and be increased
         pursuant to the rate of the increase of the Operative Index compared
         with the Base Index, as those terms are defined below, and the Loan
         will further bear annual linked interest at the rate of 2% (two per
         centum) on a yearly calculation all in respect of the period commencing
         on the date of the signature of this Contract until the maturity date
         of each payment (hereinafter: the "Linkage Differentials and
         Interest").

         In this Contract, the "Consumer Price Index" will be that published by
         the Central Bureau of Statistics;

         Based Index" means the Index published in respect of January 1998;

         "Operative Index" means the last Index published prior to the payment
         date of the Loan and the Linkage Differentials and Interest.


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4.       LOAN PAYMENT

         4.1.     (1)      The Borrower will repay the Lender the Loan and
                           the Linkage Differentials and Interest on the date on
                           which the Borrower's shares are listed for trading on
                           a stock exchange in Israel or abroad.

                  (2)      In any event, if the Borrower's shares will not have
                           been listed for trading on a stock exchange in Israel
                           or abroad by December 31, 1999, the Borrower will
                           repay the Loan, Linkage Differentials and Interest by
                           not later than December 31, 1999.

         4.2      Notwithstanding that stated in clause 4.1 above, the Borrower
                  will be entitled to repay the Loan and the Linkage
                  Differentials and the Interest at any date prior to the
                  payment dates specified in clause 4.1 above.

         4.3      Any amount not repaid by the Borrower on due date will be
                  linked to the Consumer Price Index and bear annual penal
                  interest at the rate of 8% as from the date prescribed for
                  repayment thereof through the date of full actual repayment.

5.       General

         5.1      The borrower will be entitled to deduct withholding tax at
                  source from the Loan repayments as it will be required so to
                  do, according to law.

         5.2      No conduct on the part of either of the parties will be deemed
                  to be a waiver of any of its rights under this Contract or
                  under any law or as a waiver or consent on its part for any
                  breach or non-performance of any condition, unless the waiver,
                  consent, concession, variation, cancellation or addition has
                  been expressly made in writing.

         5.3      This contract embodies and embraces all that which has been
                  agreed between the parties in connection with the grant of the
                  Loan by the Lender to the Borrower and no negotiation,
                  declaration, representation, agreement, assurance, undertaking
                  or contract made, if at all, in writing and/or verbally,
                  expressly and/or impliedly between the parties prior to the
                  signature of this Contract shall be of any effect.

         5.4      No variation of this Contract shall be made otherwise than by
                  written document which will be assigned by both parties.


                      In witness whereof the parties have set their hands:



                          (signed)                        (signed)
                   -----------------------         ----------------------
                         P.C.B. Ltd.                     Camtek Ltd.



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