**DEVELOPMENT      AGREEMENT**

| 1. | INTRODUCTION |
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|  | 1.1. | PowerHouse                is engaged in the development of mobile computing                software; |
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|  | 1.2. | M-Systems                has developed and sells a “flash based” key chain storage device known as                the DiskOnKey®                (“DiskOnKey”); |
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|  | 1.3. | M-Systems                desires PowerHouse to perform certain development work to modify                technologies of PowerHouse to operate in and in conjunction with                M-Systems                USB Drives (as such term is defined below);                and |
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|  | 1.4. | M-Systems                further desires to receive and PowerHouse desires to grant to MSystems                the                right to use and distribute the Migo Products (as such term is defined                below) to be used in, together and in conjunction with M-Systems                USB                Drives subject to the terms and conditions of this                Agreement. |
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**ACCORDINGLY,      **

| 2. | DEFINITIONS |
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|  | 2.1. | **Associated                Company**means                any corporation, company or other legal entity, where more than fifty                percent (50%) of the voting power of which is, now or hereafter,                owned or                controlled, directly or indirectly by a Party hereto, or jointly                by the                Parties hereto; provided, however, that any corporation, company                or other                legal entity shall be an Associated Company of a Party only for as                long as                such ownership or control exists. |
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|  | 2.2. | **Intellectual                Property Rights**means                rights in patents (including reissues, divisions, continuations,                continuation-in-part, and extensions thereof), utility models, and                registered and unregistered designs including copyrights, trade secrets                and any other form of protection afforded by law to inventions, models,                designs or other Information, and applications therefor including                without                limitation, patents, trademarks, copyrights and trade secrets relating                to                the Development Projects and that are: (i) owned or controlled by                a Party                or an Associated Company, and (ii) exist prior to the beginning of                the                Development hereunder or result from activities that are independent                from                said Development, and (iii) developed by each party pursuant to this                Agreement in the course and as part of the Development Project.                PowerHouse’s Intellectual Property Rights includes without limitation all                PowerHouse Technology. M-Systems’ Intellectual Property Rights includes                without limitation all M-Systems                Technology. |
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| PowerHouse-M-Systems                Agreement 30.3.05 | ** **Page                1 |
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|  | 2.3. | **Business                Day**means                any day other than a Saturday, a Sunday or any day,  which                is otherwise an official bank holiday in the United States of America. |
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|  | 2.4. | **Confidential                Information**                means all Information disclosed to one Party by  the                other Party that is marked or designated Confidential or Proprietary                or,                in the case of verbal disclosures, which are summarized in a writing,                marked or designated Confidential or Proprietary and furnished within                thirty days to the  Party                receiving such Confidential Information; provided that the lack of                such                summary in writing shall not derogate from the qualification of oral                information as a Confidential Information hereunder. |
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|  | 2.5. | **Development                Projects**                means the development work to be performed by each Party in accordance                with the work allocation and time schedule as set forth in a Statement                of                Work, and any mutually agreed modifications or extensions thereof,                with                the aim to develop Software Applications, as defined below. |
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|  | 2.6. | **Escrow                Agent**                shall mean such party as agreed upon between the parties. |
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|  | 2.7. | **Escrow                Agreement**                shall mean a separate agreement to be executed by PowerHouse, M-Systems                and the Escrow Agent in the form attached hereto as **Exhibit                E**,                which agreement shall embody the appropriate escrow terms for deposit                of                the Source Code. |
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|  | 2.8. | **Information**means                circuits, protocols, drawings, specifications, samples, models, processes,                procedures, instructions, technology, applied development engineering                data, reports, and all other technical or commercial information,                data and                documents excluding any Intellectual Property Rights related to such                Information, which is (i) owned or controlled by a Party, and existing                prior to the beginning of the Development under this Agreement, or                (ii)                resulting from activities of a Party that are independent from the                Development under this Agreement or (iii) developed as part of and                in the                course of the Development Projects. |
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|  | 2.9. | **Migo                Personal**                shall mean the Migo USB Drive software product offered by PowerHouse                as of                the Agreement Date for all currently supported platforms and all                currently                provided functionality, with the exception of the Outlook synchronization                feature. The Migo Personal shall contain an upgrade mechanism which                shall                be defined by both parties and fully managed and operated by PowerHouse;                provided, however, that the upgrade mechanism will permit upgrade                only to                the same Migo software and functionality as Migo Professional. |
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|  | 2.10. | **Migo                  Products**                  shall mean the Migo Personal, the Migo Professional and/or the                  Migo                  Upgrade. |
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|  | 2.11. | **Migo                  Professional**                  shall mean the Migo USB Drive software product offered by PowerHouse                  as of                  the Agreement Date for all currently supported software platforms                  and all                  currently provided functionality, including the Outlook synchronization                  feature. |
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|  | 2.12. | **Migo                  Upgrade**                  shall have such meaning as described in Section 3.3. |
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|  | 2.13. | **M-Systems                  Customers**                  shall mean purchasers or licensees of M-Systems USB Drives and/or                  technology, as relevant, whether labeled under M- System’s name or under                  M-Systems partners’, resellers’ or OEM’s names. |
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| PowerHouse-M-Systems                Agreement 30.3.05 |  Page                2 |
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|  | 2.14. | **M-Systems                  Technology**                  shall mean, without limitation, DiskOnKey designs and technology                  (as more                  fully described in **Exhibit                  A**). |
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|  | 2.15. | **M-Systems                USB Drives**shall                mean USB Drives manufactured by or on behalf of M-Systems or by its                Associated Companies, partners, resellers or OEM’s utilizing the M-Systems                Technology. |
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|  | 2.16. | **PowerHouse                Technology**                shall mean the technology described in **Exhibit                B**. |
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|  | 2.17. | **Statement                of Work**                means a plan for the Development Projects under this Agreement as                set out                in the Product Development Plan and includes product specifications,                a                development schedule, deliverables, acceptance criteria. |
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|  | 2.18. | **U3**                shall mean U3 LLC, a Delaware limited liability company under                authorization of the members of U3 Group, which includes M-Systems                and                SanDisk Corporation, and has developed a next generation USB flash                drive                technology. |
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|  | 2.19. | **U3**** ****Drives**                shall mean a USB Drive which complies fully with the U3 specifications. |
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|  | 2.20. | **U3**** ****Software**                shall mean software products, solely to the extent such software                products                run on a U3 Drive, where such software products comply with all portions                of the Software and U3 Related Products Agreement to be entered into                by a                software provider and U3. |
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|  | 2.21. | **USB                Drive**means                any removable data storage products comprised of a nondetachable                fixed USB                connector (i.e., not connected via a cable of any length) and embedded                flash, or other, memory for data storage, contained within a single                integrated shell package. |
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|  | 2.22. | **Migo                EULA**                means the End User License Agreement included with each Migo Product. |
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| 3. | BUSINESS                COLLABORATION |
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|  | 3.1. | PowerHouse                will develop the Migo Products and will adapt them to run as U3 Software                in accordance with U3 guidelines and pursuant to the terms of the                Software                and U3 Related Products Agreement to be entered into by PowerHouse                and U3. |
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|  | 3.2. | PowerHouse                hereby grants M-Systems and its Associated Companies a worldwide,                transferable license to market, distribute, promote, offer for sale,                offer                for re-sale and sell the Migo Products as an integrated part of M-Systems                USB Drives only, and to use and display the trademarks, names, service                marks, and logos of PowerHouse related to the Migo Products or in                connection with such M-Systems USB Drives only. In consideration                for such                license, PowerHouse shall be entitled to receive and M-Systems shall                pay                to PowerHouse a fee of [ * * * ] per unit of Migo Professional                bundled with an M-Systems USB Drive sold to an M-Systems Customer.                For the                avoidance of doubt, the right and license for the Migo Personal and                Migo                Upgrade as provided in this Agreement shall be at no cost to M-Systems. |
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| PowerHouse-M-Systems                  Agreement 30.3.05 |  Page                  3 |
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|  | 3.3. | M-Systems                shall offer Migo Products to M-Systems Customers. The Migo Professional                may be offered to M-Systems Customers in the initial form of the                Migo                Upgrade. The Migo Upgrade shall contain full functionality of the                Migo                Professional; however, the version will degrade to the Migo Personal                version at the end of a 45-day period. During such 45-day period,                the                end-user shall have the option to purchase a license directly from                PowerHouse in order to maintain the full functionality of the Migo                Professional. Such upgrade mechanism shall be fully managed and operated                by PowerHouse. The purchase by end-users may be made by way of a                link to                designated web site owned or hosted by PowerHouse (“Custom Landing Page”).                Such Custom Landing Page shall not be available to the general public                or                to other PowerHouse customers or potential customers and shall be                designated solely to M-Systems Customers.  |
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|  | 3.4. | M-Systems,                to the extent commercially practicable, will promote the Migo Upgrade                as                the primary Migo Product to M-Systems Customers. Furthermore, M-Systems                will actively                promote PowerHouse’s interests with M-Systems’ Customers, aiming at                allowing PowerHouse                to market its Migo Product upgrades directly to M-Systems’                Customers                end-user base. PowerHouse will provide M-Systems with its recommended                marketing messages in order to promote the bundling of the Migo Products                with the M-Systems USB Drives. |
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|  | 3.5. | PowerHouse                  will make such changes to the trademark labeling included in the                  Migo                  Products as an M-Systems Customer reasonably deems necessary for                  such                  M-Systems Customer to promote the Migo Products. M-Systems Customers’                  promotional and packaging materials which include the Migo brand                  name must                  be submitted to PowerHouse for approval, which approval shall not                  be                  unreasonably withheld. |
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|  | 3.6. | PowerHouse                will provide first level support for all Migo Products directly to                M-Systems and M-Systems Customers and their end-users, for 30 days                from                the date of the first use of the software by the end user. With respect                to                any M-Systems Customer who chooses to provide first level support                itself                to its end-users, PowerHouse will provide training and second level                support as may be required by such M-Systems Customer and accepted                by                PowerHouse. PowerHouse will provide training 3 times per year at                PowerHouse’s location. If the training is requested at other locations,                there will be charges associated with the training in amounts determined                by PowerHouse and which will be borne by the M-Systems Customer.                In the                case where PowerHouse is providing the level-1 support, if it is                determined that the problem is not related to Migo Products, M-Systems                will pay PowerHouse for providing such first line of support. A process                and the fee structure will be established prior to the product launch.                Without derogating from the preceding sentence, PowerHouse shall                provide                M-Systems and M-Systems Customers with such upgrades, features, technical                support and maintenance services as it provides to its other customers                generally and without special negotiation of terms and conditions.                Upgrades for this purpose shall be considered fixes and enhancements                to                the existing product and will not include new features or functionality                that may be marketed and sold by PowerHouse as value added products. |
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|  | 3.7. | Exclusivity. |
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| PowerHouse-M-Systems                  Agreement 30.3.05 |  Page                  4 |
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|  |   | 3.7.1.                Other                than for those customers and with respect to those products listed                next to                their names in Exhibit F, during the Term of this Agreement, PowerHouse                shall not provide any other party and any other party’s customers with                services or applications for USB Drives provided or similar to those                provided to M-Systems Customers as set forth in this Agreement, and                shall                not bundle, or allow to be bundled. The Migo Products (or variations                thereof) with any other USB Drive other than M-Systems’ USB Drives.                Exhibit F may be amended upon the mutual written agreement of the                parties. |
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|  |   | Notwithstanding                  anything to the contrary contained elsewhere in this Agreement                  or any                  exhibit or schedule hereto, the exclusivity set forth above shall                  not be                  deemed to restrict or limit in any manner the full and complete                  right of                  PowerHouse to market, sell, license and distribute Migo                  Products: |
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|  | (a) | for                use in connection with (1) MP3 players, (2) Cell/smart phones, (3)                PDAs,                (4) SIM cards, (5) USB watches and/or (6) memory cards in devices                marketed                by PowerHouse or others (other than standalone USB Drives), if PowerHouse                offers M-Systems a 30-day right of first refusal to acquire the rights                for                any such device on the terms offered to the first third party acquiring                rights for any such device from PowerHouse and M-Systems does not                exercise                such right; and |
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|  | (b) | to                PowerHouse customers who or which acquire Migo Products (including                USB                Drives on which Migo Products are installed) directly from PowerHouse. |
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|  |   | 3.7.2.                    For the avoidance of any doubt M-Systems shall be entitled in                    its sole and                    absolute discretion to market and sell the M-Systems USB Drives,                    either                    directly or indirectly, without the Migo Products, and, except                    as                    expressly provided herein, PowerHouse shall have no right or                    claim under                    this Agreement or otherwise for loss of profit, loss of revenues                    or the                    like. |
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|  | 3.8. | Beginning                  on the date (the “English Language Start Date”) which is two months after                  the Migo Products have been approved for English Language Gold                  Release                  pursuant to section 4.5, M-Systems shall bundle with M-Systems                  USB Drives,                  a minimum of [ * * * ] Migo Products (without regard to product mix)                  per month. |
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|   |   | Beginning                  on the date (the “International Start Date”) which is the date on which                  Migo Products have been approved for International Gold Release                  pursuant                  to section 4.5 (a) the schedule in the preceding sentence shall                  no longer                  be applicable and the following schedule shall                  apply: |
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|  | (a) | During                  the first 90-day period following the International Start Date,                  M-Systems                  shall bundle with M-Systems USB Drives an average of at least [                  * * *                  ] Migo Products (without regard to product mix) per                  month. |
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|   | (b) | During                  the second 90-day period following the International Start Date,                  M-Systems                  shall bundle with M-Systems USB |
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| PowerHouse-M-Systems                Agreement 30.3.05 |  Page                5 |
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|  | (c) | During                the third 90-day period following the International Start Date and                during                each subsequent 90-day period, M-Systems shall bundle with M-Systems                USB                Drives an average of at least [ * * * ] Migo Products (without regard                to product mix) per month. |
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|  | 3.9. | Notwithstanding                anything else to the contrary in this Agreement (other than the last                paragraph of this Section), and without derogating from Section 3.7                above,                in no event shall PowerHouse sell any Migo Product to any third party                or                any third party’s customers (collectively, a “PowerHouse Customer”) at                price lower than M-Systems’ price under this Agreement, regardless of                sales volume, use or application, including without limitation those                customers listed on Exhibit F. If the price that PowerHouse                charges/charged a PowerHouse Customer is less than the prices charged                to                M-Systems pursuant to the terms herein, then PowerHouse will make                those                prices available to M-Systems, after the time of availability of                those                prices to the PowerHouse Customer PowerHouse will inform M-Systems                in                writing within ten (10) working days after the end of each month                whether                any PowerHouse Customer has purchased any Migo Product from PowerHouse                at                a price lower than the price for the same Migo Product acquired by                M-Systems during the relevant month M-Systems shall be entitled to                a price                adjustment equal to the difference between the price of Migo Product                sold                to M-Systems minus the price Migo Product sold to the other PowerHouse                Customer multiplied by number of units purchased by M-Systems during                the                relevant month. Such price adjustment by PowerHouse due to M-Systems                shall                be made in the form of a credit against future purchases of Migo                Product                to be made at any time Buyer’s                discretion. |
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|  | (a) | for                use in connection with (1) MP3 players, (2) Cell/smart phones, (3)                PDAs,                (4) SIM cards, (5) USB watches and/or (6) memory cards in devices                marketed                by PowerHouse or others (other than standalone USB Drives), if PowerHouse                offers M-Systems a 30-day right of first refusal to acquire the rights                for                any such device on the terms offered to the first third party acquiring                rights for any such device from PowerHouse and M-Systems does not                exercise                such right; and |
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| PowerHouse-M-Systems Agreement              30.3.05 | Page                6  |
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|  | (b) | to                PowerHouse customers who or which acquire Migo Products (including                USB                Drives on which Migo Products are installed) directly from PowerHouse. |
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| 4. | DEVELOPMENT |
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|  | 4.1. | The                parties will appoint technical representatives to coordinate technological                cooperation between the parties (the “Technical Team”). The Technical Team                will be responsible for discussing and overseeing the integration                between                Migo Products and M-Systems USB                Drives. |
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|  | 4.2. | PowerHouse                and M-Systems will disclose to each other Information to the extent                necessary for implementing Development Projects in accordance with                a                Product Development Plan. The Product Development Plan and any amendments                thereof, once mutually agreed upon by the Parties will be incorporated                by                reference into this Agreement as an Addendum and shall constitute                a part                hereto. The initial Product Development Plans is attached as **Exhibit                C**                of                this Agreement. |
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|  | 4.3. | The                specific goal of the Development Project is to develop software                applications required to bundle the Migo Products with M-Systems                USB                Drives and to provide M-Systems Customers with the Migo Products                as set                forth herein (the “Software                Applications”). |
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|  | 4.4. | In                implementing Development Projects, PowerHouse and M-Systems will                cooperate                fully to accomplish the work allocated to each party within the time                schedule as set forth in the Product Development Plan. The parties                acknowledge that the time schedules of a Statement of Work in a Product                Development Plan are best estimates as of the time of its preparation                and,                unless otherwise agreed in writing, neither Party shall be liable                for any                delays in accomplishing the development work therein. Each of PowerHouse                and M-Systems will be responsible for their respective development                responsibilities and bear its own development costs, in accordance                with a                Product Development Plan. Each Party will complete its development                responsibilities and achieve its milestones in accordance with the                schedule. For each day a Party is late in achieving a milestone,                then the                deadlines for the other Party’s outstanding milestones will be extended                one day. If for any reason the development does not proceed in accordance                with the schedule, either Party may request a meeting to discuss                the                delay. If such a meeting is requested, the Parties shall meet and                discuss                in good faith mechanisms to expedite development and avoid further                delays,                and will make necessary adjustments to the Product Development schedule. |
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|  | 4.5. | Without                derogating from the preceding section, it is the intent of the parties                that PowerHouse shall deliver a final (post QA) U3 compliant version                of                each of the Migo Products by no later than 3 weeks following release                of                final U3 LaunchPad software. M-Systems shall confirm to PowerHouse                when                each Migo Product has passed M-Systems’ internal acceptance tests and is                U3 compliant. Versions M-Systems approves for release shall be known                as                “Gold Releases”. Initially, the Migo Products will be prepared for release                in the English Language (the “English Language Gold Release”). The English                Language Gold Release shall be completed by no later than 3 weeks                following release of final U3 LaunchPad software. Subsequently, a                version |
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| PowerHouse-M-Systems Agreement              30.3.05 | Page 7  |
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|  | 4.6. | Each                  Party shall be responsible for its respective expenses and liabilities                  arising in connection with the Development Project(s) including                  any travel                  or other expenses incurred by employees of that Party in connection                  therewith. |
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| 5. | REFERRAL                FEE |
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|  | 5.1. | For                any upgrade purchased by an end-user of M-Systems or an M-Systems                Customers                through the Custom Landing Page as described in Section 3.3, M-Systems                shall be entitled to [ * * * ] of all fees collected by PowerHouse                net of expenses from the e-commerce provider and taxes charged and                passed                through. |
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| 6. | AUDIT                RIGHTS |
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|  | 6.1. | Exchange                of Report; Audit Rights. Within no later than 30 days after the end of                each month, each party shall provide the other with a written report                in                the form attached as **Exhibit                D**                of                this Agreement and which will include the calculation of all Referral                and                License Fees due to the other, as applicable. PowerHouse’s written report                shall include a breakdown of upgrades per M-Systems Customer. Based                on the                report each party shall invoice the other for the Referral or License                Fees,                as applicable (“Invoice”). If the Parties do not agree with any of the                reports, the Parties will use all reasonable efforts to settle disputes                by                mutual agreement. If any dispute is not so settled, the disputing                party                may exercise its right to audit as set forth in sub-section 6.5 below.                In                the event such audit verifies an underpayment error, the audited                party                shall promptly pay the auditing party for the full amount of any                underpayment verified in the audit. Any such discrepancy discovered                as a                result of such audit, will be reflected in the following report and                rectified and payment shall be made net within 30 days from receipt                of                audit report. |
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|  | 6.2. | Payment                of Referral and License Fees. Referral Fees based on upgrades through                the Custom Landing Page shall accrue upon each successful download                of the                upgrade. Such Referral Fee shall be non-refundable regardless of                the                length of subscription to such upgrade. Payment of Referral and License                Fees shall be made by the relevant party net within thirty (30) days                of                the Invoice. If there is any discrepancy in the report for any month,                as                described in Section 6.1, any required reconciliation in payments                shall be                made within 15 Business Days of the resolution of any disputes. |
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|  | 6.3. | Late                Payments. Payments not received in accordance with this Section 6                shall be subject to a late payment charge of one and one-half percent                (1.5%) per month or the highest amount permitted by law, whichever                is                less, commencing on the date such payment became                due. |
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|  | 6.4. | Taxes.                All fees payable by one party to the other under this Agreement are                on an                exclusive basis and do not include all current and future applicable                taxes                and duties, including, but not limited to, Value Added Tax, sales                tax, if                applicable to such payments, which shall be added to such fees, or                paid                directly by the party paying such fees, as applicable. Notwithstanding                the                aforesaid, any income or other tax which a party is required by law                to pay                or withhold on behalf of the other party with respect to any amounts                payable to such other party under this Agreement may be deducted                from the                amount of |
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|  | 6.5. | Each                party shall keep complete and accurate records pertaining to any                license                fee pursuant to Section 3.2 or upgrade purchased pursuant to Section                3.3,                as relevant, which will be sufficient to verify full compliance with                this                Agreement. Each party shall be entitled to have the books and records                of                the other party audited by one of the “nationally recognized independent                public accountants qualified under PCAOB guidelines”. Any such audit shall                be conducted during normal business hours and shall include the right                to                review and copy all records that contain information bearing upon                the                audited party’s compliance with the terms of this Agreement. Such records                shall be maintained for at least five years after their date of creation.                The cost of such audit shall be paid by the auditing party provided                that                if the audit shows an underpayment of more than 5% by the audited                party,                the audited party shall bear the costs of such audit. |
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| 7. | INTELLECTUAL                PROPERTY RIGHTS |
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|  | 7.1. | Ownership.                PowerHouse owns the PowerHouse Technology and the PowerHouse                Intellectual Party Rights. M-Systems owns the M-Systems Technology                and the                M-Systems Intellectual Property Rights. Without derogating from the                preceding sentences, to the extent that any improvements are made                in the                course of development of the Software Applications to either M-Systems                Technology or PowerHouse Technology, such improvements shall be owned                solely by the party who owns the relevant                Technology. |
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|  | 7.2. | No                Implied Licenses. No license or right is granted by either Party to                the other, by implication or by estoppel, or otherwise to any patents,                inventions, or other property right, other than the licenses and                rights                expressly granted in this Section. |
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| 8. | CONFIDENTIAL                INFORMATION |
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|  | 8.1. | Each                Party agrees not to use Confidential Information disclosed to it                by the                other Party for its own use or for any purpose except the Development                Projects as set forth in this Agreement. Confidential Information                shall                not be disclosed to third parties or to either Party’s employees or                consultants except employees or consultants who are required to have                the                Confidential                Information in order to carry out the Development Projects, management                associated with the employees carrying out the Development Projects,                attorneys and accountants, and senior management of the Parties,                provided                that such parties are subject to written confidentiality obligations.                Each                Party agrees that it will take all reasonable steps which are customary                in                the industry in which the Parties operate to protect the secrecy                of and                avoid disclosure or use of Confidential Information in order to prevent                the Confidential Information from falling into the public domain                or the                possession of unauthorized persons. Each Party agrees to notify the                other |
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| PowerHouse-M-Systems Agreement              30.3.05 | Page 9  |
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|  | 8.2. | The                confidentiality obligations imposed under Section 8.1 shall not apply                to                Information which: |
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|  | 8.2.1. | is                generally available to the public prior to disclosure under this                Agreement; or |
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|  | 8.2.2. | is                generally known to the receiving Party prior to the disclosure under                this                Agreement as evidenced by written and dated material;                or |
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|  | 8.2.3. | through                no fault of the receiving Party becomes part of the public domain                after                disclosure under this Agreement; or |
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|  | 8.2.4. | is                disclosed to the receiving Party by any third party having a bona                fide                right to do so; or |
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|  | 8.2.5. | is                  approved for release by the written authorization of the disclosing                  Party;                  or |
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|  | 8.2.6. | is                disclosed pursuant to the requirement of a government agency or by                operation of law after the disclosing Party has been given at least                thirty                (30) days notice and an opportunity to object to such                disclosures. |
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|  | 8.2.7. | is                independently developed by the receiving Party without use of the                disclosing Party’s Confidential                Information. |
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|  | 8.3. | Each                Party shall immediately notify the other Party of any private or                governmental request for the Confidential Information or any other                information or documents relating to this Agreement. |
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|  | 8.4. | Each                Party shall have the right to participate in any other Party’s response to                any such request. In the event that a Party receives any subpoena                or other                legal process requiring the production of information, documents,                data,                work papers, reports, or other materials relating to Confidential                Information or to this Agreement, then the Party                shall: |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 8.4.1. | give                the other Party, if possible, the opportunity to participate in quashing,                modifying, or otherwise responding to any compulsory process in an                appropriate and timely manner; and |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 8.4.2. | cooperate                fully with the other Party’s efforts to narrow the scope of any such                compulsory process, to obtain a protective order limiting the use                or                disclosure of the information sought, or in any other lawful way                to obtain                continued protection of the Confidential                Information. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 8.5. | If                either Party becomes aware of the loss, theft, or misappropriation                of the                other Party’s Confidential Information which is in its possession, such                Party shall notify the other Party in writing within ten (10) Business                Days of its discovery of the loss, theft, or misappropriation of                such                Confidential Information. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | TERM                    AND TERMINATION |
|----|-----------------------------------------|

| PowerHouse-M-Systems Agreement              30.3.05 | Page 10 |
|-----------------------------------------------------|--------------|

----

|  | 9.1. | This                  Agreement shall have a term of three years and may not be terminated                  for                  the convenience of either Party. However, either Party may terminate                  this                  Agreement in the event of a breach or default by the other Party                  (the                  “breaching Party”). The Party alleging a breach or default (the                  “non-breaching Party”) shall provide a written notice of termination to                  the breaching Party specifying the facts and circumstances relating                  to the                  alleged breach or default as set forth above; provided; however,                  that this                  Agreement shall not be terminated if the specified breach or default                  is                  remedied or cured within thirty (30) days after notice of breach                  or                  default is provided. If such specified breach or default is not                  remedied                  or cured within thirty (30) days after notice of breach or default                  is                  provided, and the breaching Party does not dispute that it has                  breached or                  defaulted and that the breach or default is material, then termination                  shall take effect upon expiration of the thirty-day period.                  Notwithstanding anything to the contrary in this Section 9.1, breaches                  for                  non-payment of any fees due and payable must be cured within 10                  days of                  notice of such breach. |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 9.2. | If                  at any time during the term of this Agreement, (i) a Party becomes                  insolvent; or (ii) a Party admits in writing its insolvency or                  inability                  to pay its debts or perform its obligations as they mature; or                  (iii) a                  party becomes subject to any voluntary or involuntary proceedings                  in                  bankruptcy, liquidation, dissolution, receivership, attachment                  or                  composition or general attachment for the benefit of creditors,                  provided                  that if such condition is assumed involuntarily it has not been                  dismissed                  with prejudice within thirty (30) days after it begins; the other                  Party                  may terminate this Agreement upon thirty days advanced written                  notice. |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 9.3. | In                  the event of termination of this Agreement by either Party, each                  Party                  shall immediately discontinue use of the Confidential Information                  received                  from the other Party, and within five (5) days after termination,                  each                  Party shall provide to the other Party a certification that the                  originals                  and all copies of such Confidential Information, regardless of                  form, have                  been returned to the disclosing Party or else destroyed. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 9.4. | Sections                  5, 6, 7, 8, 9.4, 10, 11, 12 and 13 shall survive the termination                  of this                  Agreement for any reason                  whatsoever. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | LIABILITY                  AND INDEMNITY |
|-----|------------------------------------------|

|  | 10.1. | Each                  party shall, at its own expense, indemnify, defend and hold the                  other                  party and its Associated Companies (“**Indemnified                  Parties**”)                  harmless from any and all claims, allegations, demands, liabilities,                  losses, damages, awards, judgments or settlements, including all                  reasonable costs and expenses related thereto including attorney’s fees                  (“**Claims**”),                  that may be asserted, granted, imposed or brought against any Indemnified                  Party directly arising from or in connection with any Claims that                  the                  indemnifying party’s technology or products infringe any copyright,                  patent, trade mark, trade secret or other intellectual property                  right. |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.2. | As                  between M-Systems, PowerHouse and each M-Systems Customer, M-Systems                  will                  not be responsible for anything related to the Migo Products or                  of any                  losses, damages or expenses incurred by M-Systems Customers in |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| PowerHouse-M-Systems                  Agreement 30.3.05 | Page                  11  |
|---------------------------------------------------------|--------------------------------|

----

|   |   | connection with the use of the Migo                Products.                PowerHouse shall be the sole party responsible for such losses damages                or                expenses. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|  | 10.3. | As                  between M-Systems, PowerHouse and each M-Systems Customer, PowerHouse                  will                  not be responsible for anything related to the products or technology                  of                  M-Systems or of any losses, damages or expenses incurred by M-Systems                  Customers in connection with the use of the M-Systems products                  or                  technology. M-Systems shall be the sole party responsible for such                  losses                  damages or expenses. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.4. | PowerHouse                  shall, at its own expense, indemnify, defend and hold M-Systems                  and its                  Associated Companies harmless from any and all Claims, that may                  be                  asserted, granted, imposed or brought against M-Systems and its                  Associated                  Companies arising from or in connection with any Claims brought                  by                  M-Systems Customers in connection with the Migo Products, excluding                  claims                  for loss of data or loss of profits. |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.5. | M-Systems                  shall, at its own expense, indemnify, defend and hold PowerHouse                  and its Associated Companies harmless from any and all Claims,                  that may be                  asserted, granted, imposed or brought against PowerHouse and its                  Associated Companies arising from or in connection with any Claims                  brought                  by third parties in connection with the M-Systems products, excluding                  claims for loss of data or loss of profits. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | REPRESENTATIONS                  AND WARRANTIES |
|-----|-------------------------------------------------|

|  | 11.1. | PowerHouse                  represents and warrants that it has all the rights necessary to                  enter into                  this Agreement and to perform its obligations hereunder. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.2. | PowerHouse                  represents and warrants that to the best of its knowledge it has                  all                  necessary rights in, and to, all copyrights, patents and other                  proprietary                  rights associated with the PowerHouse Technology. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.3. | M-Systems                  represents and warrants that it has all the rights necessary to                  enter into                  this Agreement and to perform its obligations hereunder. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.4. | M-Systems                  represents                  and warrants that to the best of its knowledge it has all necessary                  rights                  in, and to, all copyrights, patents and other proprietary rights                  associated with the M-Systems Technology. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.5. | Warranty                  Disclaimers. EXCEPT AS EXPRESSLY WARRANTED IN THIS AGREEMENT, THE                  PARTIES DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, ORAL                  OR                  WRITTEN, INCLUDING, WITHOUT LIMITATION, (A) ANY WARRANTY THAT THE                  ANY                  TECHNOLOGY IS ERROR-FREE, WILL OPERATE WITHOUT INTERRUPTION, OR                  IS                  COMPATIBLE WITH ALL EQUIPMENT AND SOFTWARE CONFIGURATIONS; (B)                  ANY                  WARRANTY OF MERCHANTABILITY; AND, (C) ANY WARRANTY OF FITNESS FOR                  A                  PARTICULAR PURPOSE. NEITHER PARTY IS LIABLE TO THE OTHER FOR ANY                  INDIRECT,                  INCIDENTAL,                  SPECIAL, OR CONSEQUENTIAL DAMAGES, INCLUDING THE LOSS OF PROFITS,                  REVENUE,                  DATA, OR USE OR COST OF PROCUREMENT OF SUBSTITUTE GOODS INCURRED                  BY ANY                  PARTY OR ANY THIRD PARTY, WHETHER IN AN ACTION IN CONTRACT OR TORT                  OR                  BASED ON A WARRANTY, EVEN IF ANY |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| PowerHouse-M-Systems                    Agreement 30.3.05 | Page                    12  |
|-----------------------------------------------------------|----------------------------------|

----

|  | 11.6. | LIMITATION                  OF LIABILITY. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, IN NO                  EVENT SHALL EITHER PARTY’S LIABILITY TOWARDS THE OTHER PARTY CAUSED BY ANY                  BREACH OF ANY WARRANTY IN THIS AGREEMENT EXCEED THE GREATER OF                  (i) THE                  AGGREGATE CONSIDERATION PAYABLE BY M-SYSTEMS TO POWERHOUSE HEREUNDER;                  OR                  (ii) US$ 1,000,000. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12. | SOURCE                  CODE ESCROW |
|-----|-------------------------------------|

|  | 12.1. | The                  Parties agree to appoint within sixty (60) days of the date the                  software                  applications are delivered                  pursuant to the Statement of Work an Escrow Agent or such other                  escrow                  agent as is a mutually acceptable and to execute the Escrow                  Agreement. |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.2. | The                  parties agree that the Escrow Agent must be independent and located                  outside of the USA and Israel. |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.3. | M-Systems                  and PowerHouse acknowledge and accept the terms of the Escrow Agreement                  and agree on behalf of themselves to be bound by the provisions                  therein. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.4. | Any                  breach                  of                  this Section 12 by the Parties shall be considered a material breach                  of                  this Agreement. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.5. | If                  the Deposit Materials, as defined in the Escrow Agreement, are                  not                  deposited with the Escrow                  Agent according to the terms of the Escrow Agreement within ten                  (10) days                  from the Agreement Date (provided that the Escrow Agreement was                  signed                  during such period), M-Systems shall have the right to terminate                  this                  Agreement forthwith without any liability and without limitation                  to any                  other rights M-Systems may have. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.6. | Without                  limitation to any terms of the Escrow Agreement, PowerHouse shall,                  within                  thirty                  (30) days of the date of signature of the Escrow Agreement, provide                  to the                  Escrow Agent one copy of the Deposit Materials and shall thereafter                  during                  the term of this Agreement, simultaneously with the delivery of                  Updates to                  M-Systems, also provide to the Escrow Agent in source code format                  (1) copy                  of such Update. |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.7. | The                  Escrow Agent will deliver the Deposit Materials to M-Systems only                  under                  the circumstances defined in the Escrow Agreement. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.8. | The                  costs of the Escrow Agent shall be borne by M-Systems. |
|--|-------|-----------------------------------------------------------------------------|

|  | 12.9. | The                  provisions of the Escrow Agreement shall survive the termination                  or                  expiration of this Agreement regardless of the reasons therefor,                  and shall                  terminate upon termination of the Escrow Agreement according to                  its terms. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13. | GENERAL                  PROVISIONS |
|-----|-------------------------------------|

|  | 13.1. | Choice                  of Law. This Agreement shall be construed under, and interpreted                  in                  accordance with, the laws of the State of California and of the                  United                  States of America without giving                  effect to the principles of conflicts laws. In the event of any                  lawsuit or                  other proceeding to enforce the provisions of this Agreement, the                  prevailing Party shall be entitled to recover its reasonable |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| PowerHouse-M-Systems                      Agreement 30.3.05 | Page                      13  |
|-------------------------------------------------------------|------------------------------------|

----

|   |   | attorney’s fees and expenses. Whenever                  possible, each provision of this Agreement will be interpreted                  so as to be                  effective and valid under applicable law, but if any provision                  is held to                  be invalid under applicable law, either in whole or in part, the                  provision                  will be ineffective only to the extent of such invalidity, and                  the                  remaining provision of this Agreement shall remain in full force                  and                  effect. The failure by either Party to enforce any of the terms                  and                  conditions of this Agreement shall not constitute a waiver of such                  Party’s                  right thereafter to enforce that or any other terms and conditions                  of this                  Agreement. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|  | 13.2. | Limitation                  on Liability. Neither Party shall be liable to each other in contract,                  tort or otherwise, whatever                  the cause thereof, for any loss of profit, business or goodwill                  or any                  indirect, special, consequential, incidental or punitive cost,                  damages or                  expense of any kind, howsoever arising under or in connection with                  this                  Agreement. |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.3. | Assignment.                  Neither M-Systems nor PowerHouse shall assign any of its rights                  or                  privileges hereunder                  without the prior written consent of the other party, such consent                  not to                  be unreasonably withheld. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.4. | Independent                  Contractors. The relationship of M-Systems and PowerHouse shall be                  that of independent contractors. There is no relationship of agency,                  partnership, joint venture, employment or                  franchise between the Parties. Neither Party has the authority                  to bind the                  other or to incur any obligation on behalf of the other Party or                  to                  represent itself as the other’s agent or in any way that might result in                  confusion as to the fact that the Parties are separate and distinct                  entities. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.5. | Non-Solicitation.                  Each of PowerHouse and M-Systems agree that during the term of                  this                  Agreement, and for a period of 12 months thereafter, it shall not                  induce                  or solicit any employee of the other or its Associated Companies                  to leave                  his or her employment therewith. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.6. | Notices.                  All communications relating to and notices required under this                  Agreement                  shall be directed as: |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| PowerHouse-M-Systems                      Agreement 30.3.05 | Page                      14  |
|-------------------------------------------------------------|------------------------------------|

----

|   |   | requested. Notices shall be                  deemed                  delivered upon receipt if delivered by hand, overnight courier                  service or                  facsimile, or five Business Days after dispatch if by certified                  mail. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|  | 13.7. | Integration.                  This Agreement contains the entire agreement of the Parties. No                  promise,                  inducement, representation or agreement, other than as expressly                  set forth                  herein, has been made to or by the Parties hereto. All prior agreements                  and understandings related to the subject matter hereof, whether                  written                  or oral, including without limitation the LOI, are expressly superseded                  hereby and are of no further force or effect. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.8. | Binding                  Agreement. This Agreement shall be binding upon and inure to the                  benefit of PowerHouse and M-Systems, and their respective Associated                  Companies. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.9. | Publicity.                  Neither party shall issue any press release relating to this Agreement                  or the transactions contemplated hereby without prior notice to,                  consultation with, and the consent of the other party. Concurrently                  with                  the execution of this Agreement, the Parties shall issue a joint                  press                  release to be mutually agreed upon. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.10. | Amendment.                  This Agreement cannot be altered, amended or modified in any respect,                  except by a writing duly signed by both Parties. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.11. | No                  Strict Construction. The normal rule of construction to the effect                  that any ambiguities are to be resolved against the drafting Party                  shall                  not be employed in the interpretation of this Agreement.                  The headings contained in this Agreement are intended solely for                  ease of                  reference and shall be given no effect in the construction of                  interpretation of this Agreement. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.12. | Execution.                  This Agreement may be executed in counterparts by the Parties,                  each of                  which shall be deemed an original, and which together shall constitute                  one                  and the same instrument, having the same force and effect as if                  a single                  original had been executed by all the Parties. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.13. | Currency.                  All payments required under this Agreement shall be made in the                  currency                  of the United States of America. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.14. | Jurisdiction.                  Any litigation arising out of or relating to this Agreement shall                  be                  conducted                  in                  the Superior Court of the State of California in and for San Mateo                  County                  or the United States District Court for the Northern District of                  California. Each of the parties consents to the exclusive jurisdiction                  of                  such courts and to venue in such courts. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.15. | Export                  Restrictions. M-Systems will not export or re-export the Migo                  Products, any part thereof, or any process or service that is the                  direct                  product of the Migo Products (the foregoing collectively referred                  to as                  the “Restricted Components”) to any country, person or entity                  subject to U.S. export restrictions. M-Systems specifically agrees                  not to                  export or re-export any of the Restricted Components (i) to any                  country to                  which the U.S. has embargoed or restricted the export of goods                  or                  services, which currently include, but are not necessarily limited                  to                  Cuba, Iran, Iraq, Libya, North Korea, Sudan and Syria, or to any                  national                  of any such country, wherever located, who intends to transmit                  or                  transport the Restricted Components back to such country; (ii)                  to any                  person or entity who you know or have reason to |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| PowerHouse-M-Systems                        Agreement 30.3.05 | Page                        15  |
|---------------------------------------------------------------|--------------------------------------|

----

**IN      WITNESS WHEREOF,**

| **M-Systems                Flask Disk Pioneers Ltd.** |                           | **Power                House Technologies Group Inc**. |
|-------------------------------------------------------|--------------------------------|--------------------------------------------------------|
|                                                  |                           |                                                   |   |   |
|  By:                                        | /s/                  Illegible |                                                   |  By: | /s/                  Jay Elliot |
| Its:                                                  | VP                             |                                                   | Its: | CEO |
| Date:                                                 | 30/03/05                       |                                                   | Date: | 3/29/05 |

**EXHIBITS**

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**EXHIBIT      A - M-SYSTEMS TECHNOLOGY**

**EXHIBIT      B - POWERHOUSE TECHNOLOGY**

| **TRADEMARKS** |
|----------------|
| **Trademark**  |   | **Reg.                Date** |   | **Reg.                No.** |
| MIGO           |   | Filed                on August 18, 2003 |   | Application                No. 78/288,619(applicant:                Forward Solutions,                Inc.) |
| POCKETLOGIN    |   | September                17, 2003 |   | 78/219,213                (applicant:                FirstPerson                Software, Inc.) |

| **PATENTS**                                                                                                                                                                                 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Title**                                                                                                                                                                                   |   | **Date                  Issued** |   | **Patent                  No.** |
| System                  and method                  for transferring                  personalization                  information                  among                  computersystems. |   | Filed                  May 8, 2003 by David Brett Levine andChristopher                  Jason Neumann |   | Serial                  No.10/435,070 |

| **COPYRIGHTS** |
|----------------|
| None.          |   |   |   |   |

**EXHIBIT      B**

**Page      1**

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**EXHIBIT      C - PRODUCT DEVELOPMENT PLAN**

**SEE      MRD**

**EXHIBIT      C **

**Page      1**

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**EXHIBIT      D - LICENSE/REFERRAL FEE REPORT**

**EXHIBIT      D**

**Page      1**

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**EXHIBIT      E - ESCROW AGREEMENT**

**EXHIBIT      E **

**Page      1**

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**SOFTWARE**
** **
**ESCROW      AGREEMENT**
** **

|  | (a) | Escrow                Agent may duplicate the Deposit Materials by any means in order to                comply                with the terms and provisions of this Agreement, provided that Licensee                shall bear the expense of duplication. Alternatively, Escrow Agent,                by                notice to Producer, may reasonably require Producer to promptly duplicate                the Deposit Materials. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | Deposit                Updates. Updates to the Deposit Materials will take place when the                original Deposit Materials are updated with new versions or major                revision                releases which are required to be delivered to Licensee or a customer                or                end-user of Licensee as set forth in the Development Agreement. All                Deposit Updates shall be listed on a new Exhibit B and the new                Exhibit B shall be signed by Producer. Each Exhibit B will                be held and maintained separately within the escrow account. All                references in this Agreement to the Deposit Materials shall include                the                initial Deposit Materials and any updates. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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** **

----

----

----

----

| **Escrow                Agent** |                |                                                                        |   |   |
|---------------------------------|--------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|--------|--------|
|                            |                                                                                 |                                                                        |   |   |
|                            | By:                                                                                  |                                                                        |   | Title: |   |
|                            |                                                                                 |                                                                        |   |   |   |
|                            | Print                Name:                                                           |                                                                        |   |   |   |
|                            |                                                                                 |                                                                        |   |   |   |
|                            | Address:                                                                             |                                                                        |   |   |   |
|                            |                                                                                 |                                                                        |   |   |   |
| **Producer**                    | PowerHouse              Technologies Group, Inc.                                     |                                                                        |   |   |
|                            |                                                                                 |                                                                        |   |   |   |
|                            | By:                                                                                  |                                                                        |   | Title: |   |
|                            |                                                                                 |                                                                        |   |   |   |
|                            | Print                Name:                                                           |                                                                        |   |   |   |
|                            |                                                                                 |                                                                        |   |   |   |
|                            | Address:                                                                             |                                                                        |   |   |   |
|                            |                                                                                 |                                                                        |   |   |   |
| **Licensee**                    | **M-Systems              Flash Disk Pioneer Limited**                                |                                                                        |   |   |
|                            |                                                                                 |                                                                        |   |   |   |
|                            | By:                                                                                  |                                                                        |   | Title: |   |
|                            |                                                                                 |                                                                        |   |   |   |
|                            | Print                Name:                                                           |                                                                        |   |   |   |
|                            |                                                                                 |                                                                        |   |   |   |
|                            | Address:                                                                             | Central                Park 2000, 7 Atir Yeda St., Kfar Saba, 44425, Israel |   |   |   |

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**ESCROW      EXHIBIT A**

**[TO      BE COMPLETED]**

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**ESCROW      EXHIBIT B**

***B1***
**      Product Name**

*Type      of deposit:*

*Items      Deposit:*

|   | **Quantity** |   | **Media                Type** |   | **Description                of Material**     |
|--------|--------------|--------|-------------------------------|--------|------------------------------------------------|
|   |         |   |                          |   |                                           |
| A)     |         |   |                          |   |                                           |
| B)     |         |   |                          |   |                                           |
| C)     |         |   |                          |   |                                           |
| D)     |         |   |                          |   |                                           |
| E)     |         |   |                          |   |                                           |
|   |         |   |                          |   | (please                copy page as necessary) |

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**EXHIBIT      F - EXCLUSIVITY EXCEPTIONS **

**EXHIBIT      F**

| PowerHouse-M-Systems                Agreement 30.3.05 | Page                2 |
|-------------------------------------------------------|-----------------------|

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