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Exhibit 4.17

Orckit Communications
Ltd.

Summary Terms and
Conditions of 
Convertible Notes Issued
March 28, 2007

|1. | Type
of Offering
|-- | ----------------

On March 28, 2007, Orckit
Communications Ltd. (the Company ) issued convertible notes (the
Notes) in a private placement pursuant to a Trust Deed, dated March 28, 2007,
with Harmtik Trust (1975) Ltd., as trustee for the holders of Notes. Pursuant to
Regulation S under the Securities Act of 1933, as amended, the offering was made solely to
non-U.S. persons outside the United States and the Company implemented
offering restrictions in respect of a period of 40 days following the closing.
The Company undertook to list the Notes on the Tel Aviv Stock Exchange within six months
following the issuance. If the listing of the Notes is not concluded by such date, the
holders will have the right to request repayment of the Notes. To secure this obligation,
until the Notes are listed, the proceeds will be held in escrow.

|2. | Amount
of Issuance, Denomination and Issuance Price
|-- | ---------------------------------------------------

The Company issued Notes with an
aggregate nominal value of 107,000,000 New Israeli Shekels (NIS)
(approximately $25.8 million). The Notes were issued at a purchase price equal to 100% of
their nominal value.

|3. | Repayment
of Principal
|-- | ----------------------

The principal is repayable in one
installment on March 29, 2017, provided that each holder is entitled to request earlier
repayment on March 29, 2012.

|4. | Interest
|-- | --------

The Notes bear interest at an annual
rate of six percent (6%). The interest is payable semi-annually on September 29 and March
29 of each of the years 2007 through 2017 (inclusive).

|5. | Linkage
|-- | -------

The principal of the Notes, and the
interest that shall accrue thereon, are linked to the Israeli Consumer Price Index.

|6. | Security
|-- | --------

The Notes are unsecured, except as
set forth in Section 1 above.



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|7. | Conversion
at the Option of each Note Holder
|-- | --------------------------------------------

The Notes are convertible into
Ordinary Shares, no par value, of the Company, at the option of the holder thereof, during
the period commencing on May 10, 2007 and ending on March 13, 2017 (inclusive). If the
conversion is performed between May 10, 2007 and March 10, 2010, the conversion price will
be NIS 52.50 (approximately $12.50) per share. If the conversion is performed between
March 11, 2010 and March 13, 2017, the conversion price will be NIS 63.00 (approximately
$15.00) per share.

The Ordinary Shares issued upon
conversion of the Notes will be listed on the Tel Aviv Stock Exchange and the Nasdaq
Global Market.

The conversion price is subject to
adjustment in the event that the Company effects a share split or reverse share split, a
distribution of bonus shares or cash dividend, or performs a rights offering.

|8. | Conversion
at the Option of the Company
|-- | ---------------------------------------

The Company is entitled to force the
conversion of the Notes at any time commencing on May 10, 2007 and ending on March 13,
2017 (inclusive), by notice to the Note holders if, out of 30 consecutive trading days
(prior to the date of the Companys notice of forced conversion), there were 20
trading days in which the price of the Companys Ordinary Shares on the Tel Aviv
Stock Exchange exceeded $30.00 per share.

If the forced conversion is performed
between May 10, 2007 and March 10, 2010, the conversion price will be NIS 52.50
(approximately $12.50) per share. If the forced conversion is performed between March 11,
2010 and March 13, 2017, the conversion price will be NIS 63.00 (approximately $15.00) per
share.

Notice of such forced conversion is
required to be provided to the Tel Aviv Stock Exchange, the Israel Securities Authority
and the trustee for the Notes between 30 and 45 days prior the forced conversion.

|9. | Repurchase
Right of the Company
|-- | -------------------------------

The Company is entitled to repurchase
any Notes, at any time and from time to time, in private transactions or in transactions
on the Tel Aviv Stock Exchange. Any Notes repurchased by the Company will be canceled and
may not be reissued. Notes purchased by a subsidiary of the Company will continue to be
deemed outstanding and subject to transfer.

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