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                                                                    EXHIBIT 10.8


                                    CONTRACT


                 Made and Executed this ___ Day of January 1988.


Between:            Camtek Ltd.
                             (hereinafter: "Camtek")
                                                           OF THE FIRST PART

AND:                P.C.B. Ltd.
                             (hereinafter: "P.C.B.")

                                                           OF THE SECOND PART


Whereas             Camtek is engaged in the research and development of a
                    computerized system for visually checking printed circuits
                    (hereinafter: the "System"); and

Whereas             Camtek has already invested funds and know-how in, and
                    wishes to continue, the research and development of the
                    System (hereinafter: the "Further Development") and is, for
                    such purpose in need of additional financing, and

Whereas             Camtek has proposed that P.C.B. participate in the Further
                    Development of the System; and

Whereas             P.C.B. has agreed to participate in the research and Further
                    Development of the System, subject to the provisions herein
                    contained.

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

1.       The preamble to this Contract constitutes an integral part thereof.

2.       Camtek hereby declares, confirms and warrants that:

         a.       It has already carried out research and development of the
                  System by investing monies and efforts and that there is a
                  reasonable prospect of the development of the System being
                  completed and being brought to a stage of productions.

         b.       Camtek has files an application with the Industrial Research
                  and Development Administration for approval of the program of
                  research and development which has already been and continues
                  to be carried out by it.

         c.       Camtek undertakes to complete the Further Development until
                  the know-how and technology required to produce the System are
                  obtained.

3.       P.C.B. undertakes to participate and invest in the Further Development
         a sum of up to NIS 1 million (one million New Israel Shekels)
         (hereinafter the "Financing") which will be paid to Camtek pursuant to
         the needs of Camtek, with the sum of 500,000 of the Financing to be
         paid in 1988 and the sum of up to NIS 500,000 to be paid in 1989.

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4.       a.       Camtek undertakes to submit the program/s for implementation
                  of the Further Development for the approval of the competent
                  authorities.

         b.       The grant of the Financing by P.C.B. is subject and
                  conditional to the obtainment of an approval for the program/s
                  for implementation of the Further Development, as required
                  according to Section 20A of the Income Tax Ordinance.

         c.       If P.C.B. remits to Camtek any payment on account of the
                  Financing and the program/s for the Further Development will
                  not have been approved as mentions above, Camtek will repay to
                  P.C.B. the amount transferred to it, linked to the Consumer
                  Price Index published by the Central Bureau of Statistics
                  (including fruit and vegetables).

5.       Camtek undertakes to complete and execute the Further Development
         according to the program/s that will be approved and to execute them
         solely at its own expense and responsibility.

6.       In consideration of the Financing P.C.B. will be entitled to receive
         royalties as set out in Schedule A attached hereto as an integral part
         hereof.

7.       Camtek undertakes to purchase the design of the printed circuits form
         P.C.B. and also the printed circuits required by it to execute the
         Further Development and production of the System, provided that the
         price and conditions of P.C.B.will be no less favourable than the best
         offer (from Camtek's point of view) that Camtek will receive from
         another manufacturer of printed circuits.

8.       P.C.B. will be granted first preference in purchasing the system for
         its own needs in all matters relating to the supply dates, and the
         System will be supplied to it at the price and on the payment
         conditions of a "preferred customer" of Camtek.

9.       Camtek will, upon P.C.B.'s demand, submit to it at the end of each
         quarter a statement setting out the operations and expenses expended by
         Camtek during the quarter. P.C.B. will be entitled to receive
         additional statement upon demand, including a copy of the statements
         filed by Camtek with the Chief Scientist in accordance with the Letter
         of Approval.

         P.C.B. will be entitled to inspect Camtek's books of account at any
         time in connection with all matters concerned with the execution and
         financing of the Further Development.

10.      In order to protect P.C.B.'s rights under this Contract and to enable
         it to supervise and review the execution of the Further Development and
         payment of the expenses, a representative on behalf of P.C.B. will be
         appointed as a director of Camtek, with the right to be a co-signor
         with an additional director.

11.      For the avoidance of any doubt, it is hereby expressly agreed and
         declared that the participation by P.C.B. in the Further Development
         according to the provisions of this



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         Contract is not to be regarded as creating any partnership between
         Camtek and P.C.B., as Camtek will execute the Further Development at
         its sole expense and responsibility.

12.      No variation to this Contract will be effective unless made in writing
         with the consent of both parties.

13.      Neither of the parties will be entitled to assign or transfer its
         rights under this Contract without obtaining the prior written consent
         of the other party.


                    In witness whereof the parties have set their hands:


                            (signed)                         (signed)


                    ---------------------------     ---------------------------
                            P.C.B. Ltd.                     Camtek Ltd.





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                                   SCHEDULE A



1.       P.C.B. will be entitled to royalties based on these principles pursuant
         to a percentage of the cumulative value of the sales of the System
         (including retained models) as follows:

         TURNOVER                                        PERCENTAGE
         --------                                        ----------
         In millions of US$

         Up to 5                                         5.0%
         Above 5 and up to 7.5                           4.5%
         Above 7.5 and up to 10                          4.0%
         Above 10 and up to 12.5                         3.5%
         Above 12.5 and up to 15                         3.0%
         Above 15 and up to 20                           2.5%
         Above 20                                        0.5%

2.       "Value of sales" means the aggregate actual revenues that will be
         received by Camtek from sales of the System, less V.A.T. and other
         taxes (apart from income tax) and under deduction of the cashflow and
         commissions.

         Revenues that will be received in NIS will be calculated according to
         the representative rate of exchange of the U.S. dollar as existing on
         the date of receipt of the revenue.

3.       For the avoidance of doubt it is hereby stated that the calculation of
         the turnover will be made on an accrued basis.

4.       Camtek will pay P.C.B. the royalties at the end of each 3-month period
         in respect of the revenues actually received by it during such period.

5.       The royalties will be paid to P.C.B plus V.A.T. as shall apply at the
         time of payment against a V.A.T. invoice of P.C.B.



         (signed)                   (signed)





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