**Company**

**Letter      Agreement**

| (1) | As                of _December 1st                2005 (the "**Effective                Date**")                and for a period of twelve (12) months thereafter (the "**Reduction                Period**"),                your monthly Base Salary, [illegiable] or Gross Salary, as                applicable, (as such applicable term is defined in the employment                agreement entered into by yourself and the Company dated December                1st                2005) (the "**Gross                Salary**"                and the "**Employment                Agreement**",                respectively) shall be reduced by US $5,250 and shall consists of                US $                9,750 (the "**Reduced                Salary**") |
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| (2) | You                further agree that, subject to Section 3 below, as of the Effective                Date                and during the Reduction Period (as may be extended pursuant to Section                6                of this Letter Agreement) all social and other benefits payable to                you                pursuant to your Employment Agreement (including, without limitation,                your                rights for paid vacation, sick leave, prior notice, managers insurance,                pension plan or study fund, if and to the extent applicable) shall                be                calculated based on the Reduced                Salary. |
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| (3) | Notwithstanding                Section 2 above, upon termination of your employment with the Company                in                circumstances entitling you (either by law or by virtue of your Employment                Agreement) to receive severance payment from the Company, the calculation                of the amount of severance due to you by the Company shall be calculated                on the Gross Salary and not on the Reduced Salary. |
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| (4) | In                the event that during the defined                term of employment set forth in the employee’s "**Employment                Agreement**",                the "**Employment                Agreement**"                is                terminated (i) by you for "just cause", or (ii) by the Company without                "cause", as those terms are defined in your **Employment                Agreement**",                the                Company shall continue to pay you, commencing upon such termination                and                until the lapse of the Term, the Gross                Base Salary, [illegiable] or Gross Salary or Gross                Base Fee,                as applicable and                not on the Reduced Salary                which you would have been entitled to receive had the "**Employment                Agreement**"                not been terminated by you for a just cause or by the Company without                "cause", as applicable. |
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| (5) | In                consideration of your agreement to the reduction of salary you will                be                94,500 options pursuant SecureLogic Corporation’s ("the Parent Company")                2005 Incentive Stock Option Plan at an exercise price of $1.5 (one                dollar                and a fifty cents). The Options shall vest, solely during the Employment                Term, at a rate of one twelfth of the options every month for a year,                commencing upon the Effective Date. If the gross salary will be restored                in less than one year, at the point any unvested options will be                canceled.                The term during which vested options may be exercised is three years                from                the vesting date, or within two months of the end of a grantee’s                employment. |
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| (6) | In                the event the financial status of the Company does not improve by                the end                of the Reduction Period, as determined by the Board of Directors                of the                Company in good faith, the Company may, with your prior written consent,                elect to extend the Reduction Period by up to an additional (6) month                period (the "Extended Period"), provided that the terms and provisions                of                this Letter Agreement shall continue to apply, mutatis mutandis,                during                the Extended Period. In such case the Parent Company will grant you                an                additional option to purchase shares in the amount of 50% of the                original                Options under the same terms. |
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| (7) | At                the end of the Reduction Period (as may be extended pursuant to Section                7                of this Letter Agreement), your Reduced Salary shall be increased                back to                your Gross Salary and as of such date, your consent to the reduction                of                your Gross Salary shall terminate. |
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| (8) | It                is hereby being agreed and clarified that nothing herein shall be                construed as amending the terms and provisions of your Employment                Agreement other than with respect to the reduction in your Gross                Salary as                expressly specified herein. |
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| (9) | Nothing                herein shall impose any obligation on the Company to continue your                employment with the Company or shall confer upon you any right to                continue                in the employ of the Company and/or or restrict the right of the                Company                or yourself to terminate such employment at any time, in accordance                with                the terms of your Employment                Agreement. |
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| (10) | The                grant and acceptance of the Options imposes on you no obligation                to                exercise such Options. |
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| (11) | Subject                to the provisions of the Parent Company's Option Plan and the Option                Agreement to be executed by you and the Parent Company, this Letter                Agreement constitute the entire agreement between you and the Company                with                respect to issues specified hereunder, and supersedes all prior                agreements, understandings and arrangements, oral or written, between                you                and the Company with respect to the subject matter                hereof |
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| (12) | The                Options provided for herein are granted pursuant to the Parent Company                Option Plan and the Option Agreement to be executed by you and the                Parent                Company and said Options are in all respects governed by such plan                and                agreement and subject to all of the terms and provisions thereof                whether                such terms and provisions are incorporated herein solely by reference                or                are expressly cited herein. |
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| (13) | No                modification of this Letter Agreement shall be valid unless made                in                writing and signed by the parties                hereto |
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| (14) | This                Letter Agreement may be executed by any of the parties hereto in                counterparts, each of which shall be deemed to be an original, but                all                such counterparts shall together constitute one and the same                instrument. |
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| (15) | This                Letter Agreement shall be governed by, and construed and interpreted                in                accordance with, the laws of the State of Israel, and the sole and                exclusive place of jurisdiction in any matter arising out of or in                connection with this Agreement shall be applicable courts in                Tel-Aviv. |
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