| 1. | Preamble and      Headings |
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|   | 1.1 | The      preamble and exhibits to this Agreement and the statements of the Parties      contained herein, constitute an inseparable part  hereof. |
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|   | 1.2 | The      headings in this Agreement are for purposes of reference only, are not a      material part hereof and shall not be used in its      interpretation. |
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| 2. | Engagement |
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| 3. | Services |
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|   | 3.1 | DL      shall provide Company the Services during the term of this      Agreement. |
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|   | 3.2 | The      Services will be performed by DL through persons, having appropriate      experience and capabilities, to be designated by DL for such purpose as DL      in its sole discretion will determine from time to time (the “Staff”). The employment      or other engagement by DL of such Staff shall be on terms to be determined      by DL at its sole discretion and shall be at DL’s  expense. |
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|   | 3.3 | Subject      to the terms and conditions hereof and as may be agreed upon in writing      from time to time, DL will render to Company’s affiliates Services as may      from time to time be agreed upon by theParties. |
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|   | 3.4 | DL      undertakes, and Company agrees, that in performing the      Services: |
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|   | 3.4.1 | DL      will act faithfully to and for the benefit of Company. DL will be the sole      responsible that the Staff will actlikewise. |
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|   | 3.4.2 | DL      will comply and act in accordance with, and will cause the Staff to comply      and act in accordance with, all the resolutions of Company’s Board of      Directors and committees thereof adopted from time to time, resolutions of      the general meeting of the Company and in accordance with Company's      statutory documents and/or any applicablelaw. |
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|   | 3.4.3 | DL      will have no obligation under this Agreement to provide to Company any      financing, which may be required for any of Company’s operations and      activities. |
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|   | 3.4.4 | Throughout      the duration of this Agreement DL shall deem to be the sole employer of DL      Indemnified Persons which may be considered as it employees. DL      undertakes, solely and exclusively, to comply with all of its employment      obligations in respect of such DL Indemnified Persons under any law or      agreement, including but not limited to wages, national insurance, pension      funds, annual vacation, sick pay, recuperation, travel expenses, and      severance pay. |
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| 4. | Access and      Information. |
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|   | 4.1 | Company      shall provide DL with reasonable access to all information DL reasonably      deems necessary to provide its Services hereunder, including without      limitation, will make available to DL all the files, documents and records      of Company, in whatever form (including in any electronic or digital      form). |
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|   | 4.2 | Company      shall make available to DL reasonable office facilities (including office      space, furniture, equipment and supply, information systems, communication      systems, book-keeping and accounting software and control systems), which      are and may be from time to time at Company's disposal. DL may use the      same solely for the purpose of performing the  Services. |
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|   | 4.3 | Subject      to applicable law, each Party hereto covenants and agrees to provide the      other Party with, and where required under applicable law to the      disclosure to third parties of, all information regarding itself and      transactions under this Agreement (including the Agreement itself) that      the other Party reasonably believes are required to comply with all      applicable federal, state, county and local laws, ordinances, regulations      and codes, including, but not limited to, securities laws and      regulations. |
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| 5. | Consideration. |
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|   | 5.1 | In      consideration for the Services, Company will pay to DL a monthly fee in      the amount of NIS 50,000 (Fifty thousand New Israeli Shekels) per month      (the “Fee”) and a      pro rata portion thereof for part of a month. The Fee will be paid to DL      by no later than at the end of each month for the same    month. |
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|   | 5.2 | Value      added tax and any similar service tax due under applicable law in respect      of any payment to be made by Company to DL pursuant to this Agreement will      be paid by Company to DL in addition to and together with the payment of      the Fees against a tax invoice to be issued by  DL. |
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|   | 5.3 | In      addition to the Fee payable to DL pursuant to Section 5.1 hereof and      without derogating from the provisions of Section 5.2 above, Company      shall, reimburse DL for, its reasonable Out-of-Pocket Expenses, in a      yearly amount which shall not exceed US$12,000. For the purposes of this      Agreement, the term "Out-of-Pocket Expenses" shall mean the amounts      actually paid by DL in connection with its performance of the Services,      including, without limitation, reasonable (i) fees and disbursements of      any independent auditors, outside legal counsel, consultants, investment      bankers, financial advisors and other independent professionals and      organizations, (ii) costs of any outside services or independent      contractors such as financial printers, couriers, business publications or      similar services and (iii) transportation, car expenses, per diem,      telephone calls, cellular phone expenses, and/or any similar expense not      associated with its ordinary operations. All reimbursements for      Out-of-Pocket Expenses shall be made promptly upon or as soon as      practicable after presentation by DL to Company of the statement in      connection therewith. |
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|   | 5.4 | Company      shall withhold all taxes and compulsory payments on Fees or any other      payments to the extent that such taxes and compulsory payments are      required by any applicable law to be withheld at source, unless DL has      provided Company with tax exemptioncertificate. |
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|   | 5.5 | DL      shall be responsible for all payments applicable to DL required to be made      to the Israeli National Insurance Institute (or such other similar      authority under any applicable law), any taxation body or other third      party in consequence of the provision of the Services hereunder or the      Fees provided in connectiontherewith. |
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|  | 5.6 | DL or any of DL      Indemnified Parties shall not be entitled to any further compensation or      payment in connection with the Services except as otherwise stated in this      Agreement. |
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| 6. | Liability |
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|   | 6.1 | Company      agrees that neither DL nor its directors, officers, agents, employees      and/or consultants, including any Staff members (each, a "DL Indemnified Person")      shall have any liability, whether direct or indirect, in contract or tort      or otherwise, to Company and/or its subsidiaries for or in connection with      the Services rendered or to be rendered by any DL Indemnified Person      pursuant to this Agreement. The foregoing limitation of liability shall      not apply, in any way whatsoever, to damages, which have resulted from:      (i) a gross negligent act or omission by DL and/or any DL Indemnified      Person; (ii) willful misconduct by DL and/or any DL Indemnified Person; or      (iii) a breach of any of the confidentiality undertakings set out under      Section 10. |
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|   | 6.2 | Notwithstanding      the provisions of Section 6.1, DL shall not be liable for any special,      indirect, incidental, or consequential damages of any kind whatsoever      (including, without limitation, damages for loss of goodwill, work      stoppage,  lost or corrupted data, lost profits, lost business,      lost opportunity or attorneys' fees) in any way due to, resulting from or      arising in connection with any of the Services or the performance of or      failure to perform DL's obligations under this Agreement. This disclaimer      applies without limitation (i) to claims arising from the provision of the      Services or any failure or delay in connection therewith; (ii) to claims      for lost profits; (iii) regardless of the form of action, whether in      contract, tort (including negligence), strict liability, or otherwise; and      (iv) regardless of whether such damages are foreseeable or whether DL has      been advised of the possibility of such damages. For the avoidance of      doubt the above limitation of liability shall not apply with respect to      the exclusions set in section 6.1above. |
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|   | 6.3 | DL      shall have no liability to Company or its subsidiaries for failure to      perform DL's obligations under this Agreement or otherwise, provided      however that any such failure is not caused due to any of exclusions set      in section 6.1 above. |
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|   | 6.4 | Company      agrees that it shall, in all circumstances, use commercially reasonable      efforts to mitigate and otherwise minimize its damages, whether direct or      indirect, due to, resulting from or arising in connection with any failure      by DL to comply fully with its obligations under this      Agreement. |
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|   | 6.5 | Notwithstanding      the foregoing provisions of this Section 6, in the event of a substantial      and continuing failure on the part of DL to provide or procure any      Services, where such failure is reasonably expected to have a material      adverse effect on Company, Company shall be entitled to seek specific      performance to cause DL to provide or procure such    Services. |
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| 7. | Indemnification      of Company by DL. DL shall indemnify and hold Company harmless from      and against any and all damages and/or losses and shall reimburse Company      for all reasonable expenses (including reasonable attorneys' fees)      actually incurred as a result of: (i) a gross negligent act or omission by      DL and/or any DL Indemnified Person; (ii) a willful misconduct by DL      and/or any DL Indemnified Person; and/or (iii) a breach of any of the      confidentiality undertakings set out under Section 10    below. |
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| 8. | Term. |
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|   | 8.1 | This      Agreement is conditional upon approval thereof by the corporate bodies of      Company and DL respectively, as required by any applicable law, within 30      days following the date hereof. Company shall use its best efforts to hold      within 14 days following the date hereof a General Meeting of its      shareholders that will be requested to approve this Agreement as required      by applicable law. |
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|   | 8.2 | This      Agreement shall enter into force and effect on the third business day      after all such approvals will have been obtained (the “Effective Date”), and      shall remain in effect for two years thereafter (the "Initial Period"), unless      otherwise terminated in accordance with the terms and conditions set out      in this Agreement. |
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|   | 8.3 | Following      the Initial Period, this Agreement shall automatically renew for      successive one (1) year terms unless: (i) terminated by Company by      giving14 days prior written notice of termination in the event DL's      holding in Lapis shall be less than fifty one (51) per cent of the issued      and outstanding share capital of Lapis on a fully diluted basis; or (ii)      terminated by either Party by giving a written notice of termination to      the other Party at least ninety (90) days prior to any automatic renewal      date without incurring any liabilitythereby. |
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|   | 8.4 | Either      Party may terminate this Agreement with immediate effect, and without      thereby incurring any liability for damages or other compensation, by      notice in writing to the other Party if the other Party fails to observe      or perform any of its obligations under this Agreement and fails to      correct such failure within thirty (30) days after notice      thereof. |
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| 9. | DL      shall provide the Services as an independent contractor, and nothing in      this Agreement shall create any employer-employee relationship between      Company and DL and/or any DL Indemnified Person. Should any court, or      other competent authority, deem Company, Lapis or any affiliate thereof      the employer of any DL Indemnified Person, and consequently impose any      liability (monetary or otherwise) upon Company, Lapis and/or on any      affiliate thereof, DL will promptly indemnify Company and hold Company,      Lapis and/or on any affiliate thereof harmless with respect to any such      liability (including any reasonable legal costs incurred in connection      therewith). |
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| 10. | DL      shall and procure that any DL Indemnified Person shall keep in strict      confidence and will not use (other than for the purpose of performing of      DL's obligations under this Agreement and for the benefit of the Company)      all information regarding Company, its investments, its business      (including in respect of its clients and suppliers) and its affiliates,      that will come to DL’s and/or any DL Indemnified Person's knowledge as a      result of performing the Services. Except as otherwise required by      applicable law or any competent authority, DL and/or DL Indemnified      Persons will not disclose any such information to any third party without      the prior approval of the Company. For the avoidance of doubt, this      obligation of confidentiality shall remain in effect and survive the      termination of this Agreement for any reason. DL shall be the sole liable      in respect of any loss, damages, claims and costs and expenses incurred to      Company and/or any of its affiliates as a result of a breach by DL or any      DL Indemnified Person of the provisions set out in this Section      10. |
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| 11. | Jurisdiction      and Governing law. This Agreement shall be governed by and      construed in accordance with the laws of the State of Israel without      giving effect to its choice of law rules.  Any action or      proceeding arising out of or relating hereto shall be brought in the State      of Israel. The Parties hereby agree to the exclusive jurisdiction of the      courts of Tel-Aviv, Israel. |
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| 12. | Severability.      If any provision of this Agreement shall be found invalid or      unenforceable, such invalidity or unenforceability shall not render the      entire Agreement invalid. Rather, the Agreement shall be construed as if      not containing the particular invalid or unenforceable provision, and the      rights and obligations of each party shall be construed and enforced      accordingly. |
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| 13. | DL      may assign or transfer this Agreement in whole or in part, and may      delegate or subcontract any of its duties and/or obligations hereunder, to      any person, partnership, corporation, organization or entity ("Entity") that, directly      or indirectly, Controls or is, directly or indirectly, Controlled by or is      under common Control with it, without the consent of the Company, by      giving the Company a writtennotice. |
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| 14. | Amendments;      No      Waivers. Any provision of this Agreement may be amended or waived      if, and only if, such amendment or waiver is in writing and signed, in the      case of an amendment, by DL and Company, or in the case of a waiver, by      the Party against whom the waiver is to be effective. No failure or delay      by any Party in exercising any right, power or privilege hereunder shall      operate as a waiver thereof nor shall any single or partial exercise      thereof preclude any other or further exercise thereof or the exercise of      any other right, power or privilege. The rights and remedies herein      provided shall be cumulative and not exclusive of any rights or remedies      provided by law. |
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| 15. | Entire      Agreement. This Agreement constitutes the entire understanding of      the Parties with respect to the subject matter hereof and supersede all      prior agreements, understandings and negotiations, both written and oral,      between the parties with respect to the subject matter    hereof. |
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| 16. | Notices      and Addresses |
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|   | 16.1 | The      addresses of the Parties to this Agreement for the purpose of notices are      as detailed in the preamble to this Agreement. The Parties are obligated      to inform the other of any change in their address within 7 working days      from the date of change. |
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|   | 16.2 | Any      notice given pursuant to this Agreement shall be in writing and shall be      given (and shall be deemed to have been duly given) on the date of      delivery if by delivery in person, by cable, telecopy, facsimile, telegram      or e-mail or three Business Days following delivery by registered or      certified mail (postage prepaid, return receipt  requested). |
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| D.L      Capital Ltd. |   | Enertec      Systems 2001 Ltd. |
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|                  |   |                           |   |
|                  |   |                           |   |
| By:                   |   |                           | By: |   |
| Title:                |   |                           | Title: |     |

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