| 1.   | General.      The Holder has provided the Company with funding in an aggregate amount of      $394,938 (Three Hundred Ninety Four Thousand Nine Hundred Thirty Eight      Dollars) (the “Funding      Amount”) in order to finance certain expenses of the Company in      connection with the Company’s rights offering to the stockholders of Medis      Technologies Ltd., of  which the Holder is a wholly owned      subsidiary and the Company is a majority owned  subsidiary. |
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| 2.   | Interest.  The      Funding Amount shall not bear anyinterest. |
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| 3.   | Repayment.   Subject      to Section 5, the Funding Amount shall be repaid to the Holder upon the      earliest to occur of (i) the sale of all or substantially all of the      assets of the Company to a third party, (ii) the merger or other      consolidation of the Company with a third party, or (iii) after the amount      granted to the Company according to Promissory Note No.1 of even date      hereof has been fully repaid - the provision of alternative funding to the      Company (in which case, only an amount equal to such alternative funding      shall be repaid). Notwithstanding the preceding repayment restrictions,      the remaining balance of the note shall be repaid upon the demand of the      Holder, provided that such demand may only be made after January 1, 2010. |
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| 4.   | Unsecured      Obligation.  The Note shall be unsecured in all respects      and shall be subordinated to all commercial indebtedness, whether secured      or unsecured, of the Company, other than any currently outstanding      indebtedness of the Company to the Holder under any capital note or other      instrument similar to this Note that has been issued by the Company to the      Holder prior to the date hereof. |
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| 5.   | Conversion      into Equity.  This Note shall be convertible in whole or      in part at any time, upon the request of the Holder, into additional      premium on account of the price-per-share paid by the Holder with respect      to the Company’s shares currently held by the  Holder. |
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| 6.   | Waiver.  No      act or omission by any of the parties hereof, including specifically any      failure to exercise any right, remedy or recourse, shall be deemed a      waiver or release of the same, such waiver or release to be effective only      as set forth in a written document executed by the parties hereof and then      only to the extent specifically recited therein.  A waiver or      release with reference to one event shall not be construed as continuing      as a bar to or as a waiver or release of any subsequent right, remedy or      recourse as to any subsequentevent. |
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| 7.   | Waiver      of Presentment. The Company hereby waives presentment for payment,      notice of nonpayment, protest, notice of protest and all other notices,      filing of suit and diligence in collecting the amounts due under the Note      and agrees that the Holder shall not be required first to initiate any      suit or exhaust its remedies against any other person or parties in order      to enforce payment under this Note. |
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| 8.   | Governing      Law.  The Note shall be governed by and construed in      accordance with the laws of the State of Israel without regard to conflict      of laws provisions.  The parties agree that the courts in the      city of Tel Aviv, Israel shall have jurisdiction to hear and determine any      suit, action or proceeding, and to settle any dispute, which may arise out      of or in connection with this Note and, for such purposes, irrevocably      submit to the non-exclusive jurisdiction of such  courts. |
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| 9.   | Miscellaneous      Provisions. This Note shall be binding on the successors and      assigns of the Company and inure to the benefit of the Holder, its      successors, endorsees and assigns.  If any terms or provisions      of this Note are deemed invalid, the validity of all other terms and      provisions hereof shall in no way be affected thereby. This Note may not      be assigned or transferred in whole or in part by any party. Any notice      under this Note shall be made in writing by personal delivery, certified      mail (return receipt required), courier or facsimile (with electronic      confirmation of receipt).  Notice delivered in person shall be      deemed to have been received upon delivery; notice delivered by certified      mail shall be deemed to have been received three days after mailing;      notice delivered by facsimile or courier shall be deemed to have been      received one day after delivery to the courier service or after electronic      transmission, as the case may be. |
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| 10.   | No      Voting Rights.  Except as otherwise required by law or      the Articles of Association of the Company, the Note shall not entitle its      holder to vote at any annual, special or extraordinary general meeting of      the Company’ shareholders or to receive any dividends of the Company in      cash or in kind. |
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| /s/      Jacob Weiss |   |   | /s/      Asaf Ben Arye      |   |
|----------------------|--------|--------|-----------------------------|--------|
| MEDIS-EL LTD.        |   |   | CELL KINETICS    LTD.  |   |

| /s/      Michael Resnick |   |   | /s/      Israel Fisher      |   |
|--------------------------|--------|--------|-----------------------------|--------|
| MEDIS-EL LTD.            |   |   | CELL KINETICS    LTD.  |   |