SHARE PURCHASE
AGREEMENT

This Share Purchase Agreement (this Agreement) is made and entered
into effective as of March 13, 2003 by and betweenNexus Telocation Systems Ltd. (hereinafter Nexus), a
company organized under the laws of the State of Israel, with offices at 1
Korazin Street, Givatayim, Israel, and each of the persons and entities whose
names and addresses are set forth in Exhibit A attached hereto and who
are signatories hereto (each of them, a Purchaser, and, severally and not
jointly, the Purchasers). Additional purchasers may join this Share Purchase
Agreement during a period of six (6) months following the Closing (as defined
below) subject to the approval of the Lead Purchaser (as defined below) by
executing a joinder letter in the form attached hereto as Exhibit B
(each an Additional Purchaser and collectively, the Additional Purchasers)
and upon execution thereof each Additional Purchaser shall be deemed a
Purchaser hereunder; and the names and details of the Additional Purchasers,
as well as the number of Shares purchased by them, shall be added to Exhibit
A.

W I T N E S S E T H

WHEREASThe Purchasers desire to
purchase shares in Nexus and Nexus wishes to sell and issue shares to the
Purchasers on the terms as set forth herein.

NOW THEREFORE, in consideration of the
covenants and conditions hereinafter set forth, the parties hereto agree as
follows:

|1. | Agreement to Purchase and Sell
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|   | 1.1.                          
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|   | 1.2.                          
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|   | 1.3.                          

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|2. | Closing
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|   | 2.1.   
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|   | 2.2.   
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|   |                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
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|   |                                                                                                                                                                                                                                                                                                      | (viii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | an opinion
  of Yigal
  Arnon & Co. Law Offices, counsel to Nexus, in the form attached
  hereto as Exhibit 2.2(viii) addressed to the Purchasers and dated as
  of the date of Closing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                      | (ix)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Nexus shall
  deliver written consents of each shareholder of Nexus who has pre-emptive
  rights with respect to issuance of securities in Nexus, by which such
  shareholders agree to the termination of their pre-emptive rights in the form
  attached as Exhibit 2.2(ix)A; and a confirmation of Nexus in the form
  attached hereto as Exhibit 2.2(ix)B that all previously granted
  pre-emptive rights in Nexus have been terminated.                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                      | (x)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Nexus shall
  deliver to DBSI Investments Ltd. (the Lead Purchaser) a proxy in the form
  attached hereto as Exhibit 2.2(x) executed by A.M.S. Electronics Ltd. (hereinafter AMS).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                      | (xi)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Nexus shall deliver a written
  agreement with Bank Hapoalim in the form attached hereto as Exhibit
  2.2(xi).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | 2.3.                                                                                                                                                                                                                                                                                                 | Nexus hereby
  agrees, undertakes and covenants that it shall promptly after the Closing,
  but in no event later than within 30 days thereafter, (i) issue validly
  executed share certificates covering the Ordinary Shares issued in the name
  of the Purchasers and deliver it to the Purchasers; and (ii) Nexus shall pay
  the stamp duty required, and any other taxes, expenses and fees on the
  issuance of the Shares, and shall notify the Israeli Registrar of Companies
  of the issuance of the Shares promptly after the Closing and shall deliver a
  copy of such notice duly stamped by the tax authorities and by the Israeli
  Registrar of Companies to the counsel of the Lead Purchaser.
|   |                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|3. | Representations and Warranties of Nexus.                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                     
|   | Nexus hereby
  represents and warrants to the Purchasers that, as of the date hereof and as
  of date of Closing, the following representations and warranties are true and
  accurate in all respects, and acknowledges that the Purchasers are entering
  into this Agreement in reliance thereon:
|   |                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | 3.1.                                                                                                                                                                                                                                                                                                 | Organization;
  Power; etc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                      | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Nexus is a
  public company duly organized and validly existing under the laws of the
  State of Israel. Tracsat S.A., which is a Subsidiary (as
  defined below) of Nexus, is a company duly organized and validly existing
  under the laws of the State of Argentina (Tracsat). Attached hereto in Exhibit
  3.1(a) are true and correct copies of the Certificate of Incorporation of
  Nexus and Tracsat and their Articles of Association and other organizational
  documents as in effect on the date hereof (the Corporate Documents).                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                      | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Nexus has
  all requisite power and authority to execute, deliver and perform this
  Agreement, to issue to the Purchasers the Shares, the Warrants and the
  Ordinary Shares upon exercise of the Warrants and to consummate the
  transactions contemplated hereby, subject to the approval of this Agreement
  and the transactions contemplated hereby by the shareholders meeting of Nexus
  and any other approvals as detailed in this Agreement.  The execution, delivery and performance by
  Nexus of this Agreement and consummation of the transactions contemplated
  hereby have been duly authorized by all necessary corporate actions of
  Nexus.  Following the execution of
  this Agreement, this Agreement will constitute a valid and binding obligation
  of Nexus, enforceable in accordance with its terms.

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| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                              
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| |      | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Nexus and
  the Subsidiaries have all requisite corporate power and authority to carry on
  their business as now conducted and as proposed to be conducted; and  to own and operate its property and
  assets, to perform all its obligations under all agreements and instruments
  to which it is a party or by which they are bound.                     
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                              
| |      | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Nexus and
  the Subsidiaries are duly qualified to transact business in each jurisdiction
  in which the failure so to qualify is reasonably likely to have a material
  adverse effect on their assets, financial condition, operating results,
  prospects or business of Nexus or its Subsidiary as presently conducted and
  as proposed to be conducted.
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                              
| | 3.2. | Capitalization.  At the Closing the authorized
  capitalization of Nexus shall consist of 3,300,000 New Israeli Shekel divided
  into 110,000,000 Ordinary Shares, par value NIS 0.03 each, of which
  27,725,432 Ordinary Shares are issued and outstanding on the date hereof,
  (including 16,435,500 Ordinary Shares to be granted at the Closing as a result of the conversion of a convertible
  debenture dated January 15, 2002 to AMS). All of the outstanding
  Ordinary Shares have been duly and validly authorized and issued, and are
  fully paid and non-assessable, with no personal liability attaching to the
  ownership thereof. Other than the outstanding options of Nexus share capital
  issued, which are set forth in Exhibit 3.2A attached hereto, there are
  no outstanding or enforceable subscriptions, options, warrants, calls, rights
  (including preemptive rights), convertible securities, commitments, or any
  other agreements of any character for the purchase of or acquisition from
  Nexus of any shares of its capital stock or any security convertible into, or
  exchangeable for, or evidencing the right to subscribe for, any of its shares
  or securities. The rights, privileges and obligations of all outstanding
  shares are as set forth in the Corporate Documents and the relevant share
  purchase agreements as in effect at the Closing listed in Exhibit 3.2A
  attached hereto, and there are no additional or other rights, privileges or
  obligations applying to such shares. At the Closing, the outstanding share
  capital of Tracsat is as set forth in Exhibit 3.2B attached hereto,
  and other that as set forth therein, there are no outstanding or enforceable
  subscriptions, options, warrants, calls, rights (including preemptive
  rights), convertible securities, commitments, or any other agreements of any
  character for the purchase of or acquisition from Tracsat of any shares of
  its capital stock or any security convertible into, or exchangeable for, or
  evidencing the right to subscribe for, any of its shares or securities.
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | 3.3. | Voting Rights; Directors.Nexus is not a party
  or subject to any agreement, obligation, commitment or understanding, and, to
  the best of the Nexus knowledge, there is no agreement, obligation,
  commitment or understanding between any persons and/or entities, or among its
  shareholders, which affects or relates to the voting or giving of written
  consents with respect to any security or by which any individual or
  individuals may be elected to the Board of Directors of Nexus or its
  Subsidiaries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

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| | 3.4. | Subsidiaries.  The subsidiaries of Nexus are listed in Exhibit
  3.4 attached hereto (the Subsidiaries). Except as detailed in Exhibit
  3.4, there are no other share capital, preemptive rights, convertible
  securities, outstanding warrants, options or other rights to subscribe for,
  purchase or acquire from any Subsidiaries or from Nexus, any share capital of
  such Subsidiaries and there are no contracts or binding commitments providing
  for the issuance of, or the granting of rights to acquire, any share capital
  of any Subsidiaries. All issued and outstanding share capital of the
  Subsidiaries was duly authorized, and is validly issued and outstanding and
  fully paid and nonassessable.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | 3.5. | Patents and
  other Intellectual Property.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |      | 3.5.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

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| |  | 3.5.2. | Rights to
  Intellectual Property.  Except as set forth in Exhibit 3.5.2 attached hereto and
  other than with respect to off-the-shelf software products, Nexus fully owns
  and/or has the good, valid, unexpired, full right to use, free and clear of
  all liens, claims, restrictions and any kind of payment liability or
  undertaking, all Registered Intellectual Property, patents, copyrights,
  trademarks, service marks, trade names, mask design rights, URLs, and
  applications, licenses and/or rights with respect to the foregoing, and all
  trade secrets and know-how, technology, moral rights, including but not
  limited, to inventions, designs, processes, works of authorship, proprietary
  rights and process, computer programs and technical data and information and
  other intangible assets (collectively herein Intellectual Property) used
  and sufficient for use in the conduct of their business as currently
  conducted and as proposed to be conducted. Without derogating from the
  aforementioned the use of the Intellectual Property by Nexus and/or the
  Subsidiaries has not been in conflict with, infringed upon or violated, nor
  does it, to Nexus best knowledge conflict with, infringe upon or violate any
  right, lien or claim of others including without limitation all of the Nexus
  past and present employees.                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | 3.5.3. | Non-Infringement/Conflicting
  Engagement. 
  Neither Nexus nor the Subsidiaries nor to the best knowledge of Nexus
  any of their employees, officers, directors have received any communications
  alleging that they have violated or, by conducting the business of Nexus as
  currently conducted and as proposed to be conducted, are violating or would
  violate the intellectual property rights or other proprietary rights of any
  other person or entity. Neither Nexus nor the Subsidiaries are obligated
  under any contract (including licenses, covenants or commitments of any
  nature) or other agreement, or subject to any judgment, decree or order of
  any court or administrative agency, that would interfere with the use of its
  best efforts to promote the interests of Nexus and/or the Subsidiaries or
  that would conflict with Nexus business or the business of the Subsidiaries
  as conducted and as proposed to be conducted. None of Nexus or the
  Subsidiaries employees, officers, directors or consultants is obligated
  under any contract, or subject to any judgment, decree or order of any court
  or administrative agency, that would interfere with the use by any such
  person of his/her best efforts to promote the interests of Nexus or the
  Subsidiaries.  Neither the execution
  nor delivery of this Agreement or the Exhibits hereto, nor the carrying on of
  Nexus business by its employees, officers and/or directors, nor the conduct
  of Nexus and the Subsidiaries business as conducted and as proposed to be
  conducted, will conflict with or result in a breach of the terms, conditions
  or provisions of, or constitute a default under, any covenant, or material
  agreement under which Nexus and/or the Subsidiaries are now obligated.

- - 6 - -

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| |  | 3.5.4. | Treatment of
  Intellectual Property by Employees.  Any and all Intellectual Property of any
  kind that has been developed, or is currently being developed by any employee
  of Nexus during or in connection with his/her employment by Nexus, or similar
  form of engagement, has been assigned and is solely the property of Nexus,
  nor is such Intellectual Property the prior property of any employee or any
  of such employees prior employers and/or academic or research institution.
  It is not, and will not become, necessary to utilize any inventions and/or
  other Intellectual Property of any of the Nexus employees, consultants,
  officers, and/or directors made prior to or during their employment and/or
  engagement by Nexus, other than those that have been assigned to Nexus
  pursuant to the employment agreement signed by such employee including
  provisions governing confidential information, assignment of Intellectual
  Property and non-competition.                                                                                                                                                                      
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| |  |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |  | 3.5.5. | Treatment of
  Intellectual Property of Third Parties.  To the extent that any part of the
  Intellectual Property has been developed outside Nexus, whether by
  consultants, sub-contractors, contract manufacturers, research arrangements,
  or similar form of engagements with other third parties, or whether on any
  third partys property, all rights in such Intellectual Property, needed for
  its use by Nexus or its Subsidiaries in the conduct of their business as now
  conducted and as is proposed to be conducted have been lawfully assigned to
  Nexus or the Subsidiaries, as the case may be. Neither Nexus nor any of its
  Subsidiaries is a party to any licenses and/or royalty agreements excluding
  off-the-shelf software and hardware products other than as disclosed in Exhibit
  3.5.5 attached hereto.                                                                                                                                                                                                                                                                                                                                
| |  |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |  | 3.5.6. | Conflicting
  Rights to Intellectual Property.  Except as disclosed in Exhibit 3.5.6
  attached hereto, at no time during the conception of or reduction of any of
  the Intellectual Property to practice was Nexus operating under any grants
  from any governmental entity or agency, performing research sponsored by any
  governmental entity or agency or private source, or subject to any obligation
  with any third party that could adversely affect Nexus rights in such
  Intellectual Property. Except as disclosed in Exhibit 3.5.6 attached
  hereto, at no time during the conception of or reduction of any of the
  Intellectual Property to practice was any inventor or any developer or other
  contributor to such Intellectual Property developed by or for Nexus,
  operating under any grants from any governmental entity or agency, performing
  research sponsored by any governmental entity or agency or private source, or
  subject to any employment agreement, or invention assignment or nondisclosure
  agreement, or other obligation with any third party that could adversely
  affect Nexus rights in such Intellectual Property.

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| |      | 3.5.7.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Protection
  of Intellectual Property.  Nexus has taken security measures to protect the secrecy and
  confidentiality of all the Intellectual Property, which measures are
  reasonable and customary in the industry in which they respectively operate.
  It is the practice of Nexus to contract employees and/or consultants by
  written agreements which include provisions regarding non-disclosure of
  confidential information, non-solicitation and non-competition with Nexus,
  and under which said employees and/or consultants assign to Nexus all rights
  in the Intellectual Property developed in the course of their employment by,
  or engagement with Nexus
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |      | 3.5.8.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Subsidiaries
  Intellectual Property.  None of the Subsidiaries has any right to any Intellectual
  Property.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | 3.6. | Title of
  Shares.  
  Each of the Shares of Nexus which will be issued to the Purchasers
  according to this Agreement (including Ordinary Shares issuable upon the
  exercise of the Warrants), when issued as provided for herein or in
  accordance to the Warrants, will be duly authorized, validly issued, fully
  paid, and non assessable, and free and clear of liens, security interests,
  pledges, charges, claims, encumbrances, pre-emptive rights, or any other
  third party rights of any kind, and such Shares will have the rights,
  preferences, privileges set forth in this Agreement, and shall be subject
  only to the restrictions and obligations set forth in this Agreement or in
  the Articles of Association of Nexus, there being no other restrictions or
  obligations applying to the Purchasers or their holdings in Nexus; shall be
  issued in full compliance with the requirements of the US Securities Act of
  1933, as amended (the Securities Act) and the Exchange Act (as defined
  below) and any applicable state securities law and the exemptions from
  registration therefrom, and otherwise with no violation of any applicable
  law.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | 3.7. | Due
  Authorization; No Conflicts.  The execution and delivery by Nexus of
  this Agreement and each other certificate or document executed or to be
  executed by it, the performance by Nexus of all its obligations hereunder and
  the issuance and delivery of the Shares, the Warrants and Ordinary Shares
  upon exercise of the Warrants by Nexus pursuant to this Agreement (A) shall
  be, prior to the Closing, duly authorized by all necessary corporate proceedings
  on part of Nexus (and no other corporate proceedings or actions on the part
  of Nexus or its board of directors or shareholders are necessary thereof),
  (B) subject to the approval of this Agreement and consummation of the
  transactions contemplated hereby by the shareholders of Nexus, do not require
  any approval or consent which has not been obtained, except for the approval
  of the OCS and the Investment Center as well as the approval of the
  Anti-Trust Controller which shall be received by the Closing, (C) do not and
  will not conflict with, result in any violation of, or constitute any default
  under, any provision of the Memorandum and Articles of Association of Nexus
  or other governing documents of Nexus, any provision of any instrument,
  agreement or indenture of Nexus or any of its assets, properties or
  operations and will not result in or require the creation or imposition of
  any security interest on any of the properties of Nexus or any Subsidiary
  pursuant to any instrument or result in the acceleration of any indebtedness
  of Nexus or any of its Subsidiaries, (D) do not require approvals, permits or
  consents of, or filing with any state or local governmental body, official
  authority, or any other third party, under any applicable law or instrument in
  connection with the execution and delivery of this Agreement, or the
  consummation of the transactions contemplated hereby, nor shall it
  contravene, conflict with, or result in a violation of any of the existing
  terms or requirements of, or give any governmental body the right to revoke,
  withdraw, suspend, cancel, terminate or modify, any permit, authorization,
  license or consent that is held by Nexus or by the Subsidiaries, or that
  otherwise relates to the business of, or any of the assets owned or used by
  them, (E) violate any law, rule, administrative regulation, order or decree
  of any court, or any governmental agency or body having jurisdiction over
  Nexus or the Subsidiaries or applicable to them or to any of Nexus or the
  Subsidiaries properties, and (F) will not give to others any rights,
  including rights of termination, cancellation or acceleration, in or with
  respect to any agreement, contract or commitment referred to this Agreement,
  or to any of the properties of Nexus or of the Subsidiaries, and (G) will not
  contravene, conflict with, or result in a violation of, or give any
  governmental body or other person or entity the right to challenge any of the
  transactions contemplated under this Agreement or to exercise any remedy or
  obtain any relief under, any existing applicable laws or any order to which
  Nexus, the Subsidiaries or any of their assets may be subject.

- - 8 - -

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| | 3.8. | Validity,
  Etc. This Agreement, including all Exhibits attached
  hereto, constitutes on the due execution and delivery thereof, the legal,
  valid and binding obligations of Nexus enforceable in accordance with their
  respective terms.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                               
| | 3.9. | Financial
  Statements; Books and Records.                                                                                                                                                                                                    
| |      |                                                                                                                                                                                                                                               
| |      | 3.9.1.                                                                                                                                                                                                                                        

- - 9 - -

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| |       | 3.9.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Except as
  set forth in Exhibit 3.9.2 attached hereto, neither Nexus nor any of
  the Subsidiaries is a guarantor of any debt, non performance or obligation of
  another, nor has any of them given any indemnification, loan, security or
  otherwise agreed to become liable for any obligation of any other person or
  entity, and no other person or entity has given any guarantee of or security
  for any obligation of Nexus or any of the Subsidiaries, as the case may be.
  Neither Nexus nor any Subsidiary have liability unrelated to the business or
  operations conducted by them.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |       | 3.9.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | The books of
  account, minute books, share record books, and other records of each of Nexus
  and the Subsidiaries are complete and correct.                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | 3.10. | Filing and
  Reports.  As
  of  the date of Closing, all
  documents, reports and/or press releases which Nexus is required to file or submit
  under any applicable securities and/or stock exchange law, rule or
  regulation, as amended or supplemented, if applicable (including the Exchange
  Act and the Securities Act)   have
  been filed  in a duly manner and have
  (a) complied in all material respects with the applicable requirements of any
  such law, rule or regulation, and (b) did not contain any untrue statements
  of a material fact or omit to state any material fact necessary in order to
  make the statements made therein, in the light of the circumstances under
  which they were made, not misleading. Nexus has delivered or made available
  to the Purchasers true and complete copies of: (i) its annual report on Form
  20-F for the 2001 fiscal year, and (ii) any other reports filed under cover
  of Form 6-K filed with the SEC since January 1, 2002. A list of all such
  documents is attached hereto in Exhibit 3.10A. Nexus has delivered or
  made available to the Purchasers true and complete copies of all
  correspondence between the SEC and Nexus or its legal counsel, accountants or
  other advisors since January 1, 2002, if any. A list of all such
  correspondence is attached hereto in Exhibit 3.10B. Nexus has timely
  filed all forms, reports, statements and other documents required to be filed
  with the SEC since the date of its initial public offering.
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | 3.11. | Absence of
  Certain Developments; Material Adverse Change.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |       | 3.11.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Since the
  date of the Quarterly Financials, there have been material adverse change in
  the business or financial condition of Nexus, the material adverse changes
  are as set forth in Exhibit 3.11.1. 
  Since the date of the Quarterly Financials, there have been no
  material adverse change in the business, operations, properties, assets or
  financial condition of the Subsidiaries, except as set out in Exhibit
  3.11.1.                                                                                                                                                          

- - 10 - -

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| |       | 3.11.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Except as
  set out in Exhibit 3.11.2 attached hereto, since  September 30, 2002, (A) Nexus and its
  Subsidiaries have conducted their business in the ordinary course consistent
  with past practice and have not incurred any material liability, guarantee or
  obligation (indirect, direct or contingent), or entered into any material
  oral or written agreement or other transaction, that is not in the ordinary
  course of business or that could reasonably be expected to result in a
  material adverse change or effect to the assets, liabilities, financial
  condition or operating results of Nexus or its Subsidiaries and no dividend
  or distribution of any kind declared, paid or made by Nexus or any of the
  Subsidiaries; (B) Nexus and its Subsidiaries have not sustained any material
  loss, damage, distraction or interference 
  to their business or properties which is not in the ordinary course of
  business (whether or not covered by insurance); (C) neither Nexus nor any of
  its Subsidiaries has made (nor does it propose to make) (i) any material
  change in its accounting methods or practices or (ii) any material change in
  the depreciation or amortization policies or rates adopted by in, in either
  case, except as may be required by law or applicable accounting standards;
  and (D) there are no material agreements, judgments, orders, writs or decrees
  to which Nexus or the Subsidiaries are a party or by which Nexus or its
  Subsidiaries are bound; and (E) neither Nexus nor any Subsidiary have made
  any payment or increased any bonuses, salaries, or other compensation to any
  shareholder or, except in the ordinary course of business, director, officer,
  employee or consultant, or entered into any employment, severance, or similar
  agreement with any director, officer, employee or consultant; and (F) neither
  Nexus nor any Subsidiary have terminated, entered into, or received any
  notice of termination of any Material Agreement (as defined below) or other
  instrument; and  (G) any material
  change in the assets, liabilities, condition (financial or otherwise) or
  business of Nexus or the Subsidiaries from that reflected in the Quarterly
  Financials.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |       | 3.11.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Except as
  set forth in the 2001 Financial Statements and the Quarterly Financials,
  neither Nexus nor the Subsidiaries have material liabilities or obligations
  of any type or nature whatsoever, whether absolute, accrued, or otherwise.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |       | 3.11.4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | A list of
  all amounts due to suppliers, lenders or other creditors of Nexus or any of
  the Subsidiaries is attached hereto as Exhibit 3.11.4. Nexus and the
  Subsidiaries have not paid all amounts due to their respective suppliers,
  lenders or other creditors, as fully detailed in Exhibit 3.11.4
  attached hereto.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | 3.12. | Litigation.
  Except as set out in Exhibit 3.12, there is no claim, action, suit,
  proceeding, arbitration or investigation pending or threatened against or
  affecting Nexus or any of its Subsidiaries or any of their respective
  properties, assets or operations, or with respect to which Nexus or any such
  Subsidiaries is responsible by way of indemnity or otherwise that questions
  the validity of this Agreement or that would individually, or in the
  aggregate with all other such claims, actions, suits, investigations or
  proceedings, reasonably be expected to have, a material adverse effect on
  Nexus or its Subsidiaries or the validity of this Agreement or on the ability
  of Nexus to perform its obligations under this Agreement and consummate the
  transactions contemplated hereby; and, to the best knowledge, information or
  belief of Nexus no such claims, actions, suits, proceedings or investigations
  are threatened or contemplated nor is there any basis for any of the
  aforementioned. Neither Nexus nor the Subsidiaries are a party to, or subject
  to the provisions of any order, writ, injunction, judgment or decree of any
  court or government agency or instrumentality nor are there any pending or
  threatened action, suit, proceeding or investigation (or of any basis for
  same) against any of them by any government agency or instrumentality. There
  is no action, suit, proceeding or investigation by Nexus and/or by any of its
  Subsidiaries currently pending or that Nexus and/or that any of its
  Subsidiaries intends to initiate.

- - 11 - -

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| | 3.13. | Compliance
  with Other Instruments. Nexus or its Subsidiaries
  are not in violation or default of any provisions of their respective
  Memorandum or Articles of Association, or of any instrument, judgment, order,
  writ, decree or contract to which Nexus or its Subsidiaries are a party or by
  which they are bound or, of any provision of law applicable to Nexus or its
  Subsidiaries, which violation or default is reasonably likely to have a
  material adverse effect on Nexus or its Subsidiaries, as the case may be, or
  their financial condition. The execution, delivery and performance by Nexus
  of this Agreement and the consummation of the transactions contemplated
  hereby will not result in any such violation or be in conflict with or
  constitute, with or without the passage of time and/or giving of notice,
  either a default under any such provision, instrument, judgment, order, writ,
  decree or contract or an event which is reasonably likely to result in the
  creation of any lien, charge or encumbrance upon any assets of Nexus or the
  Subsidiaries, suspension, revocation, impairment, forfeiture or non-renewal
  of any permit, license, authorization, or approval applicable to Nexus or the
  Subsidiaries, their business or operations or any of their assets or
  properties.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | 3.14. | Agreements;
  No Defaults.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |       | 3.14.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |       | 3.14.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

- - 12 - -

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| | 3.15. | Related-Party
  Transactions. Except as set out in Exhibit
  3.15, no employee, officer, or director of Nexus or its Subsidiaries or
  member of his or her immediate family is indebted to Nexus or to the
  Subsidiaries, and neither Nexus nor its Subsidiaries are indebted (or
  committed to make loans or extend or guarantee credit) to any of them. None
  of such persons has any direct or indirect ownership interest in any firm or
  corporation with which either Nexus or the Subsidiaries are affiliated or
  with which Nexus or the Subsidiaries have a business relationship, or any
  firm or corporation that competes with Nexus. No member of the immediate
  family of any employee, officer or director of Nexus or the Subsidiaries is
  directly or indirectly interested in any Material Agreement with Nexus or the
  Subsidiaries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | 3.16. | Permits.
  Nexus and the Subsidiaries have all franchises, permits, licenses, and any
  similar authority (each, a License and collectively, the Licenses)
  necessary for the conduct of their business as now being conducted and as
  proposed to be conducted, the lack of which is reasonably likely to have a
  material adverse effect, and Nexus believes that it or the Subsidiaries can
  obtain, without undue burden or expense, any similar authority for the
  conduct of their business.  Nexus or
  the Subsidiaries are not in default in any material respect under any of such
  License and each License is valid and in full force and effect, and no event
  has occurred or circumstance exists that may (with or without notice or lapse
  of time) constitute or result directly or indirectly in a material violation
  of or a failure to comply with any material term or requirement of any such
  License, or result directly or indirectly in the revocation, withdrawal,
  suspension, cancellation, or termination of, or any modification to, any such
  License. Neither Nexus nor the Subsidiary have received any notice from any
  person, entity that it is, or claiming that it is, in violation of or
  otherwise not in compliance with, any term or requirement of any License, or
  that any such License may be revoked, withdraw, suspended, canceled,
  terminated or modified.
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | 3.17. | Properties;
  Liens; Condition of Assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |       | 3.17.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |       | 3.17.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

- - 13 - -

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| | 3.18. | Employees.                        
| | ----- | ----------------------------------
| |       |                                   
| |       | 3.18.1.                           
| |       |                                   
| |       | 3.18.2.                           
| |       |                                   
| |       | 3.18.3.                           
| |       |                                   
| |       | 3.18.4.                           
| |       |                                   
| | 3.19. | Compliance
  with Laws and Orders.
| |       |                                   
| |       | 3.19.1.                           

- - 14 - -

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| |       | 3.19.2.                                                                                                                     | Nexus and
  the Subsidiaries are in compliance with all awards, decisions, injunctions,
  judgments, orders, rulings, subpoenas, or verdicts entered, issued, made, or
  rendered by any court, administrative agency, or other governmental body or
  by any arbitrator (collectively, Orders) to which it, or any of the
  properties owned or used by it, are subject.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | ----- | --------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |       | 3.19.3.                                                                                                                     | No event has
  occurred or circumstance exists that (with or without notice or lapse of
  time) can reasonably be expected to constitute or result in a material
  violation by Nexus or the Subsidiaries of, or a failure on the part of Nexus
  or the Subsidiaries to comply, in any all material respect, with, any
  applicable statutes, laws, regulations, executive orders or Orders; and
  except as set out in Exhibit 3.19.3 neither Nexus nor the Subsidiaries
  have received any notice from any administrative agency or other governmental
  body or any arbitrator that it is, or claiming that it is, in violation of or
  otherwise not in compliance with, such applicable statutes, laws,
  regulations, Orders or executive orders.                                                                                                                                                                                    
| |       |                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | 3.20. | Completion
  of Certain Transactions. Without derogating from the
  generality of the representations and warranties above:
| |       |                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |       | 3.20.1.                                                                                                                     | Nexus has
  consummated the sale of all the outstanding share capital of NexusData, Inc.,
  a formerly wholly owned subsidiary of Nexus (NexusData), to STORM
  Consulting Inc. (Storm) pursuant to a certain Offer to Acquire NexusData
  Inc., dated December 24, 2002 copies of which were provided to each Purchaser
  (the ND Sale Agreement). The ND Sale Agreement provides that Storm
  purchased NexusData as is and has waived Nexus and any of its officers and
  directors from any claims and/or demands. In addition, NexusData has executed
  a confirmation letter on _________, 2003 a copy of which is also attached in Exhibit
  3.20.1 pursuant to which NexusData irrevocably waived any and all claims,
  demands or other causes of action of any nature it has or may have against
  Nexus, its shareholders, directors, officers and employees.                                                             
| |       |                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |       | 3.20.2.                                                                                                                     | Nexus has
  assigned and transferred to NexusData a certain bridge loan in the amount of
  five hundred thousand United States dollars (US$500,000) which was made to
  Nexus by certain lenders (the Lenders) pursuant to the Bridge Loan
  Agreement, dated September 20, 2002 copies of which were provided to each
  Purchaser (the Loan Agreement) pursuant to a certain letter agreement, dated
  January 2003 copies of which were provided to each Purchaser (the BL
  Assignment Agreement). The BL Assignment Agreement provides that each Lender has
  irrevocably waived, released and discharged Nexus and any of its
  officers, directors, shareholders and employees from claims, demands, and
  causes of action which such Lender has or will have, whether known or
  unknown, of whatever nature, which exist or may exist on their behalf in
  connection with or related to the Loan Agreement or its assignment.

- - 15 - -

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| |       | 3.20.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Nexus and
  AMS have signed on March __, 2003 a letter agreement in the form attached
  hereto as Exhibit 3.20.3 pursuant to which the Manufacturing and
  Purchase Agreement entered between the Nexus, AMS and NexusData on January
  15, 2002 was amended so that it will continue to apply with respect to Nexus
  and NexusData separately such that each of Nexus and NexusData shall be
  responsible to its liabilities (the AMS Agreement). The AMS Agreement
  provides that AMS
  confirms that Nexus shall not be liable for any liabilities of NexusData, and
  that it in no event shall a claim be made by AMS against Nexus relating to
  NexusData liabilities.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |       | 3.20.4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | The ND Sale
  Agreement, the BL Assignment Agreement and AMS Agreement are completed,
  unconditional and in full force and effect, and are valid and enforceable
  against Nexus, NexusData and the other parties thereto, in accordance with
  their respective terms.                                                                                                                                                                                                                                                                                                                                                                                                          
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | 3.21. | Directors.
  Upon the Closing there shall be no contractual right to any shareholder of
  Nexus to elect any individual or individuals to Nexus Board of Directors,
  except as detailed herein, nor shall there be any valid voting agreement,
  voting trust, or other arrangement among Nexus shareholders. Exhibit 3.21
  attached hereto contains a complete and accurate list of all directors of
  Nexus.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | 3.22. | Disclosure.  No representation or warranty contained in
  this Agreement, the schedules or exhibits hereto, or information appearing in
  any writing furnished by Nexus to the Purchasers or their representatives
  pursuant hereto or in connection herewith contains any untrue statement of a
  material fact or omits to state a material fact necessary to make the
  statements herein or therein not misleading. 
  There is no fact which Nexus has not disclosed to the Purchaser which
  is reasonably likely to have a material adverse effect on Nexus or its
  Subsidiaries, their respective financial condition, their respective business
  as presently conducted or proposed to be conducted or any of their respective
  properties and/or respective material assets, or is reasonably likely to
  adversely affect the ability of Nexus to perform its obligations under this
  Agreement.
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 3.23. | Registration
  Rights. Except as provided in
  section 5 hereunder, Nexus has not granted or agreed to grant any
  registration rights, including piggyback rights and F-3 registration rights,
  to any person or entity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

- - 16 - -

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|   | 3.24.                                                                                                      | Tax Returns,
  Payments and Elections. Nexus has filed all
  tax returns and reports (including information returns and reports) until the
  year 2001 as required by any applicable law. 
  These returns and reports are true and correct in all material respects.
  Nexus hereby represents and warrants that the provision for taxes of Nexus as
  shown in the 2001 Financial Statements and the Quarterly Financials is
  adequate for taxes due or accrued as of the date thereof.  Neither Nexus nor the Subsidiaries have
  elected pursuant to any applicable tax law any election that would have a
  material adverse effect on Nexus or the Subsidiaries, as the case may be,
  their respective financial condition, their respective business as presently
  conducted or proposed to be conducted or any of their respective properties
  and/or their respective material assets. 
  Except as set out in Exhibit 3.24 neither Nexus nor the
  Subsidiaries have had any tax deficiency proposed or assessed against them
  that were not settled and have not executed any waiver of any statute of
  limitations on the assessment or collection of any tax or governmental
  charge. None of Nexus or the Subsidiaries income tax returns have ever been
  audited by governmental authorities. 
  Since the date of the Quarterly Financials, neither Nexus nor any
  Subsidiary have incurred any taxes, assessments or governmental charges other
  than in the ordinary course of business and Nexus and the Subsidiaries have
  made adequate provisions on its books of account for all taxes, assessments
  and governmental charges with respect to their respective business,
  properties and operations for such period. 
  Nexus hereby represents and warrants that Nexus and the Subsidiaries
  have withheld or collected from each payment made to each of its respective
  employees, the amount of all taxes (including, but not limited to, Israeli
  income taxes) required to be withheld or collected therefrom, and have paid
  the same to the proper tax receiving officers or authorized depositories or
  have accrued such amounts for payment.
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|   |                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|4. | Representations and Warranties of the Purchaser.                                                          
|   |                                                                                                           
|   | Each of the
  Purchasers hereby represents and warrants to Nexus, only in respect of
  itself, as follows:
|   |                                                                                                           
|   | 4.1.                                                                                                       | Organizations;
  Power.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                            | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                            | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | 4.2.                                                                                                       | Authorization
  of Agreement. 
  The execution, delivery and performance by the Purchaser of this
  Agreement and consummation of the transactions contemplated thereby have been
  duly authorized by all necessary corporate action of the Purchaser.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | 4.3.                                                                                                       | Purchase for
  Investment. 
  The Purchaser is acquiring all of the Shares to be acquired by it
  hereunder for its own account for investment and without a view to the
  distribution or resale of such Shares, it being understood that this Section
  4.3 shall not prevent the Purchaser from selling or otherwise disposing of
  any of the Shares, at its sole discretion, in any transaction which does not
  violate the Securities Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

- - 17 - -

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|   | 4.4.                 | U.S. Federal
  Securities Laws. Without derogating from Nexuss
  obligations under Section 5 below, the Purchaser has been made aware that
  none of the Shares acquired hereunder may be sold, transferred or otherwise
  disposed of (any such sale, transfer or other disposition, a sale), except
  in compliance with (i) United States Federal Securities laws (which generally
  provide for a 12 month waiting period before resale of restricted
  securities), (ii) state blue sky laws. The Purchasers are aware of the
  provisions of Rule 144 promulgated under the Securities Act and its
  requirements for the resale of the Shares which permits limited resale of
  shares purchased in a private placement subject to the satisfaction of
  certain conditions, including, among other things, the existence of a public
  market for the shares, the availability of certain current public information
  about the Company, the resale occurring not less than one year after a party
  has purchased and paid for the security to be sold, the sale being effected
  through a brokers transaction or in transactions directly with a market
  maker and the number of shares being sold during any three-month period not
  exceeding specified limitations.                                                                                                                                                                                                                                                                                                                                                                                  
|-- | -------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | 4.5.                 | Investment Experience. Each Purchaser has such
  knowledge and experience in financial and business matters that it is capable
  of evaluating the merits and risks of the purchase of the Shares pursuant to
  the terms of this Agreement and of protecting its interests in connection therewith.
  Each Purchaser is able to bear the economic risk of the purchase of the
  Shares pursuant to the terms of this Agreement including an entire loss of
  the value of such investment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | 4.6.                 | Legend on
  Shares. The Purchaser is aware that the certificate
  representing the Shares shall be stamped or otherwise imprinted on its face
  with a legend in the following form:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                      | The shares
  represented by this certificate have not been registered under the Securities
  Act of 1933 (the Securities Act) and may not be sold, transferred, pledged,
  hypothecated or otherwise disposed of in the absence of (1) an effective
  Registration Statement under the securities act, (2) to the extent
  applicable, an exemption pursuant to Rule 144 under Securities Act (or
  similar rule under the Securities Act relating to the disposition of
  securities) or (3) an opinion of counsel, if such opinion shall be reasonably
  satisfactory to counsel for issuer, that an exemption from registration under
  the Securities Act is available.  The
  Shares have been acquired for investment and may not be sold, transferred or
  otherwise disposed of except in compliance with the Securities Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|5. | Registration Rights.
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | 5.1.                 | Definitions.  As used in this Agreement, the term
  Registrable Securities means (i) the Shares and the Ordinary Shares
  resulting from the exercise of the Warrants held by the Purchasers; and (ii)
  any securities issued or issuable with respect to shares acquired or
  exercised by the Purchasers by way of bonus shares, share splits, reverse
  share splits, dividend, share conversions or other distribution with respect
  to, or in exchange for, on account of, or in replacement of, the Shares
  and/or the Ordinary Shares resulting from the exercise of the Warrants; the
  term registration means a registration effected by preparing and filing a
  registration statement or similar document under and in compliance with the
  Securities Act, or similar securities act in a jurisdiction other than the
  United States; the term Form F-3 means such form under the Securities Act
  as in effect on the date hereof or substantially similar thereto and
  available to Nexus or any registration form under the Securities Act
  subsequently adopted by the SEC which permits inclusion or incorporation of
  substantial information by reference to other documents filed by Nexus with
  the SEC; and the term AMS Registrable Securities means the Ordinary Shares
  issued to AMS by the Company pursuant to a certain Share Purchase Agreement,
  dated January 15, 2002 and the Ordinary Shares issuable upon conversion of
  seven hundred thousand United States dollars of a certain debenture issued to
  AMS as set forth in a letter agreement, dated March 2003 a copy of which is
  attached hereto as Exhibit 5.1.

- - 18 - -

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| | 5.2. | Registrable
  Securities. 
  As to any particular Registrable Securities, such securities will
  cease to be Registrable Securities when they have been effectively registered
  under the Securities Act and/or any other applicable securities law pursuant
  to this Section 5, although they will again become Registrable Securities if
  later deregistered.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | 5.3. | Demand
  Registration.  
  As of the date of Closing majority in interest of the holders of
  Registrable Securities (the Initiating Holders) may request in writing that
  all or part of their Registrable Securities shall be registered for trading
  on any securities exchange on which Nexuss shares are traded. Within twenty
  (20) days after receipt of any such request, Nexus shall give written notice
  of such request to the other holders of Registrable Securities and shall
  include in such registration all Registrable Securities held by all such
  holders of Registrable Securities who wish to participate in such demand
  registration and provide Nexus with written requests for inclusion therein
  within fifteen (15) days after the receipt of the Nexuss notice (the
  Participating Holders). Thereupon, Nexus shall effect the registration of
  all Registrable Securities as to which it has received requests for
  registration (the Participating Registrable Securities) for trading on the
  securities exchange(s) specified in the request for registration. If the
  managing underwriters advise Nexus in writing that in their opinion the
  number of securities requested to be included in such registration exceeds
  the number that can be sold in such offering without adversely affecting such
  underwriters ability to effect an orderly distribution of such securities,
  Nexus will include in such registration the Registrable Securities with
  priority upon any other shares that may be registered under the same
  registration statement, except for the AMS Registrable Securities which shall
  be registered with the Registrable Securities; provided, however, that if the
  a majority in interest of the Participating Holders then disapprove of the
  terms of the underwriting, they may elect to withdraw all Participating
  Registrable Securities therefrom by written notice to Nexus and the
  underwriter, in which case such registration shall not be deemed a
  registration for the purposes of this Section 5.3 and shall not be counted as
  a demand registration. Nexus shall not be required to effect more than two
  (2) registrations under this Section 5.3.
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | 5.4. | Incidental
  Registration. Nexus shall file a registration
  statement on Form F-3 (the Registration Statement) registering the
  Registrable Securities with priority upon any other shares that may be
  registered under the same registration statement the except for the AMS
  Registrable Securities which shall be registered with the Registrable
  Securities, and shall supply all qualifications and compliances as Nexus may
  be so requested, and will endeavor and use its best efforts to have such
  Registration Statement declared effective by the SEC as soon as practicable
  thereafter. Each Purchaser shall be entitled to request only once, in
  addition to the rights of the holders of Registrable Securities right to
  request registrations under Section 5.3 above, from Nexus to effect a
  registration under this Section 5.4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

- - 19 - -

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| | 5.5. | General Obligations.
  Nexus agrees, if necessary in respect to any registration under Section 5.3
  or Section 5.4 above, to supplement or amend the registration statement, if
  required by the rules, regulations or instructions applicable to the
  registration Form F-3 or any other form used by Nexus for such registration
  statement or by the Securities Act or by any other rules and regulations
  thereunder for shelf registration.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | 5.6. | Right to
  Piggyback. 
  Whenever Nexus proposes to register any of its securities under the
  Securities Act (other than pursuant to a registration primarily for sales of
  shares or options to employees of Nexus), and the registration form to be
  used is suitable for the registration of the Registrable Securities (a
  Piggyback Registration) (it being understood that Form S-8 and Form F-4 may
  not be used for such purposes), Nexus will give written notice to the holders
  of Registrable Securities of its intention to effect such a registration and,
  subject to the priority provisions of Section 5.7 below, will include in such
  registration all the Registrable Securities with respect to which Nexus has
  received written requests for inclusions therein within thirty (30) days
  after Nexus gives such notice. Such notice shall be delivered to the holders
  of Registrable Securities at least thirty (30) days prior to the initial
  filing of a registration statement with the SEC. The holders of Registrable
  Securities shall be entitled to participate in an unlimited number of
  Piggyback Registrations under this Section 5.6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | 5.7. | Priority on
  Piggyback Registration.  If a Piggyback Registration is effected in an underwritten
  offering of Nexus Securities (Nexus Securities) and the managing
  underwriters advise Nexus in writing that in their opinion the number of securities
  requested to be included in such registration exceeds the number that can be
  sold in such offering without adversely affecting such underwriters ability
  to effect an orderly distribution of such securities, Nexus will include in
  such registration:  (i) Nexus
  Securities;  (ii) the Registrable
  Securities and the AMS Registrable Securities (allocated among the holders of
  Registrable Securities and AMS pro rata to their respective number of
  Registrable Securities or AMS Registrable Securities, as applicable, required
  by the holders of Registrable Securities or AMS to be included in the
  registration); and (iii) the unregistered securities held by other
  shareholders of Nexus (Unregistered Securities) requested to be included
  that, in the opinion of such underwriters, can be sold pro rata,
  among the holders of such securities on the basis of the number of
  Unregistered Securities then owned by each such holder. In any event that
  under subsection 5.7 (ii) hereto, due to the registration of the AMS Registrable
  Securities, not all of the Registrable Securities are registered Nexus shall
  be obligated to file a registration statement on Form F-3 registering the
  remaining Registrable Securities, with priority upon any other shares that
  may be registered under the same registration statement, within three (3)
  months from the date of such Piggyback Registration.

- - 20 - -

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| | 5.8.  | Registration
  Procedures. Whenever the holders of Registrable
  Securities have requested that any Registrable Securities be registered
  pursuant to this Agreement, Nexus will use its best efforts to effect the
  registration with the proper authorities in the United States and Israel and
  the sale of such Registrable Securities in accordance with the intended
  method of disposition thereof and to list such shares on the stock exchange
  (or NASDAQ) on which Nexus shares are then trading.  In connection therewith, Nexus will make
  available for inspection by any seller of Registrable Securities, and any attorney,
  accountant, or any other agent retained by such seller, all pertinent
  financial and other records, other pertinent corporate documents of Nexus,
  and cause Nexus respective officers, directors, and employees to supply all
  information reasonably requested by such seller, attorney, accountant, or
  agent in connection with such Registration Statement.                                                                                                                                                                                                                                                                                                                                                                
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | 5.9.  | Registration
  Expenses. 
  Nexus shall be responsible for all registration expenses incurred in
  connection with the transactions described in this Section 5. Registration
  expenses include all expenses incident or ancillary to Nexus performance of
  or compliance with this Agreement, including without limitation expenses
  incurred in connection with the preparation of a prospectus, filing and
  qualification fees, printers and accountant fees, and the reasonable fees
  and expense of one legal counsel for the Purchasers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | 5.10. | Nexus
  Indemnity. Nexus hereby agrees to indemnify and hold
  harmless the Purchasers, and its directors, officers, employees, agents,
  legal counsel or accountants of such Purchaser, any underwriter (as defined
  in the Securities Act) for such Purchaser and controlling persons (the
  Indemnified Person) (within the meaning of section 15 of the Securities Act
  or Section 20(a) of the Exchange Act), from and against any and all claims,
  liabilities, losses, damages and expenses (including reasonable attorneys
  fees and disbursements) asserted against or incurred by any such Indemnified
  Person which shall be caused by any untrue statement of a material fact
  contained in any registration statement or prospectus relating to the
  Registrable Securities, including any amendment or supplement thereto, or
  shall be caused by any omission to state therein a material fact required to
  be stated therein or necessary to make the statements therein not misleading,
  or caused by any violation by Nexus of the Securities Act, the Exchange Act
  or any other securities law, except insofar as such losses, claims, damages,
  liabilities and expenses shall be caused by any untrue statement or omission based
  upon information furnished in writing to Nexus by the Purchasers or on the
  Purchasers behalf for use therein.

- - 21 - -

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|   | 5.11.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Purchaser
  Indemnity.   Each Purchaser will
  indemnify and hold harmless Nexus, any underwriter for Nexus and each person,
  if any, who controls Nexus or such underwriter, from and against any and all
  losses, damages, claims, liabilities, costs or expenses (including any
  amounts paid in any settlement effected with such Purchasers consent) to
  which Nexus any such underwriter or any such controlling person may become
  subject under applicable law or otherwise, insofar as such losses, damages,
  claims, liabilities (or actions or proceedings in respect thereof), costs or
  expenses arise out of or are based on (i) any untrue statement of any
  material fact contained in the Registration Statement or included in the
  prospectus, as amended or supplemented, or (ii) the omission to state therein
  a material fact required to be stated therein or necessary to make the
  statements therein, in the light of the circumstances in which they were
  made, not misleading, and the Purchaser will reimburse Nexus, any such
  underwriter and each such controlling person of Nexus or any such
  underwriter, promptly upon demand, for any reasonable legal or other expenses
  incurred by them in connection with investigating, preparing to defend or
  defending against or appearing as a third-party witness in connection with
  such loss, claim, damage, liability, action or proceeding; in each case to
  the extent, that such untrue statement or omission is contained in any
  information so furnished in writing by the Purchaser to Nexus specifically
  for inclusion in the Registration Statement or such prospectus and that such
  information was reasonably relied upon by Nexus for use in the Registration
  Statement, such prospectus or such form of prospectus or to the extent that
  such information related to the Purchaser or the Purchasers proposed method
  of distribution of Registrable Securities and was reviewed and expressly
  approved in writing by the Purchaser expressly for use in the Registration
  Statement, such prospectus or such form of prospectus; provided, however,
  that the indemnity agreement contained in this Section 5.11 shall not apply
  to amounts paid in settlement of any losses if such settlement is effected
  without the prior written consent of the Purchaser.  In no event shall the liability of the Purchaser hereunder be
  greater in amount than the dollar amount of the net proceeds received by the
  Purchaser upon the sale of the Registrable Securities giving rise to such
  indemnification obligation.
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | 5.12.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | The
  provisions of this Section 5 shall also apply in connection with any
  registration, listing or public offering of the Nexuss securities outside of
  the U.S., mutatis mutandis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|6. | Board of Directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | Immediately
  after the Closing the Board of Directors of Nexus shall consist of up to
  seven directors, four of which shall be nominated by the Lead Purchaser.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|7. | Survival and Indemnification.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | All representations
  and warranties contained in this Agreement are deemed to be made on the date
  of this Agreement and at the Closing, and shall survive and remain in full
  force and effect for a period of two (2) years thereafter, provided, however,
  that the representations made in Sections 3.1, 3.2, 3.5, 3.9 and 3.10 shall
  remain in full force and effect after Closing indefinitely.  Nexus agrees to indemnify and hold
  harmless the Purchasers and their affiliates and their respective officers,
  directors, agents, employees, subsidiaries, partners and controlling persons
  (each, an indemnified party) to the fullest extent permitted by law from
  and against any and all losses, claims, damages, expenses (including
  reasonable fees and disbursements of counsel) or other liabilities
  (Liabilities) resulting from any breach or misrepresentation of any
  covenant, agreement, representation or warranty made by Nexus under this
  Agreement or any legal, administrative or other actions brought by any person
  or entity, proceedings or investigations (whether formal or informal), or
  written threats thereof, based upon, relating to or arising out of  the Purchasers entering into this
  Agreement; provided, however, that Nexus shall not be liable under this
  Section 7: (i) for any amount paid in settlement of claims without its
  consent (which shall not unreasonably withheld), (ii) to the extent that it
  is finally judicially determined that such Liabilities resulted directly from
  a breach by  the Purchasers of any
  representation, warranty, covenant or agreement of  the Purchasers contained in this Agreement or the gross
  negligence or the willful misconduct of the Purchasers. Each Purchaser
  irrevocably agrees and undertakes that a notice of indemnification to be
  submitted to the Company under this Section 7 requires the prior written
  approval of Purchasers of majority of the Shares under this Agreement (the
  Majority Purchasers) and any indemnification request not signed by the
  Majority Purchasers will be invalid and of no force and effect. Each Purchaser
  further agrees and undertakes that the proceeds received from the Company
  under this Section 7 (the Indemnification Amount) shall be distributed
  among the Purchasers on a pro-rata basis, so that each Purchaser shall be
  entitled to receive an amount equal to the Indemnification Amount multiplied
  by a fraction its numerator being the number of Shares purchased by the
  Purchaser as set forth in Exhibit A, and its denominator being the
  aggregate number of Shares purchased hereunder.

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|8. | Conditions to Closing.                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | The
  obligations of the Purchasers under sections 1 and 2 of this Agreement are
  subject to the fulfillment on or before the Closing, of each of the following
  conditions precedent, any one or more of which may be waived in whole or in
  part by the majority in interest of the Purchasers (based on their amount of
  investment hereunder) with respect to all Purchasers, which waiver shall be
  at the sole discretion of such majority of the Purchasers:
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | 8.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | 8.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | 8.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | 8.4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | 8.5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | 8.6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

- - 23 - -

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|   | 8.7.           | Management
  Agreement. 
  Nexus and the Lead Purchaser shall have entered on or before the
  Closing into a Management Agreement in the form attached hereto as Exhibit
  2.2(vii), pursuant to which the Lead Purchaser shall provide management
  services to Nexus in consideration for an annual management fee of $180,000
  and the Management Agreement shall have been approved by the general meeting
  of the shareholders of Nexus.                                                                                                                                                       
|-- | -------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | 8.8.           | Opinion of
  Nexuss Counsel. On or prior to the Closing, the
  Purchaser shall have received from Yigal Arnon & Co., Law Offices,
  counsel for Nexus, an opinion, dated as of Closing, in form and substance
  acceptable to the counsel of the Lead Purchaser attached hereto as Exhibit
  2.2(viii).                                                                                                                                                                                                                                                                                              
|   |                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | 8.9.           | Absence of
  Adverse Changes. With respect to the Closing, there
  will have been no material adverse change in the financial or business
  condition of Nexus or its Subsidiaries from the date hereof until the date of
  Closing in the Purchasers sole and absolute judgment.                                                                                                                                                                                                                                                                                                                    
|   |                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | 8.10.          | No Judgment
  or Order.There shall not be on the Closing, any
  judgment or order of a court of competent jurisdiction or any ruling,
  regulation or order of any agency applicable to Nexus which would prohibit or
  have the effect of preventing consummation of the sale of the Shares, the
  Warrant or the Ordinary Shares issuable upon the execution of the Warrant.                                                                                                                                                                                                                        
|   |                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | 8.11.          | Officers
  Certificate. On or prior to the Closing, a
  certificate from the chief executive officer of Nexus, certifying that the
  conditions for Closing specified in this Agreement have been fulfilled, and
  certifying as to the matters set forth in section 3 and in the form attached
  hereto as  Exhibit 2.2(vi),
  shall have been delivered to the Purchaser.                                                                                                                                                                                                                          
|   |                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | 8.12.          | AMS Proxy.
  On or prior to the Closing, Nexus shall deliver to the Lead Purchaser a proxy
  in the form attached hereto as Exhibit 2.2(x) executed by AMS.                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | 8.13.          | Arrangement with Bank Hapoalim. On or prior to the
  Closing, Nexus shall
  have reached satisfactory agreements with Bank in the form attached hereto as
  Exhibit 2.2(xi).                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | 8.14.          | Receipt of
  Payment from Acelera Puerto Rico. On or prior to the
  Closing, Nexus shall have received the down payment pursuant to Section 3.3.1
  of the License Operation and Supply Agreement between Nexus and Acelera
  Puerto Rico, dated February 21, 2003.                                                                                                                                                                                                                                                                                                                                   
|   |                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|9. | Miscellaneous.
|   |               
|   | 9.1.           | Entire
  Agreement. 
  This Agreement constitutes the sole understanding of the parties with
  respect to the subject matter hereof and it supersedes any previous agreement
  among the parties with respect to such subject matter, including but not
  limited, to the Term Sheet for a Proposed Investment in Nexus Telocation Systems
  Ltd., dated December 25, 2002.  No
  amendment, modification or alteration of the terms or provisions of this
  Agreement shall be binding unless the same shall be in writing and duly
  executed by Nexus and a majority in interest of the Purchasers.

- - 24 - -

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| | 9.2. | Successors
  and Assigns. 
  The terms and conditions of this Agreement shall inure to the benefit
  of and be binding upon the respective successors of the parties hereto;
  provided, however, that this Agreement may not be assigned by any party
  without the prior written consent of the other party hereto, except for
  assignments by the Purchasers to any corporate entity which controls, is
  controlled by, or is under common control with such Purchaser.                                                                                                                                                                                                                                                     
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 9.3. | Counterparts.  This Agreement may be executed in one or
  more counterparts, each of which shall for all purposes be deemed to be an
  original and all of which shall constitute the same instrument.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 9.4. | Headings.  The headings of the Sections and
  paragraphs of this Agreement are inserted for convenience only and shall not
  be deemed to constitute part of this Agreement or to affect the construction
  hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 9.5. | No Waiver.  No action taken pursuant to this
  Agreement, including any investigation by or on behalf of any party hereto,
  will be deemed to constitute a waiver by the party taking any action of
  compliance with any representation, warranty or agreement contained
  herein.  The waiver by any party
  hereto of any condition or of a breach of any other provision of this
  Agreement will not operate or be construed as a waiver of any other condition
  or subsequent breach.  The waiver by
  any party of any of the conditions precedent to its obligations under the
  Agreement will not preclude it from seeking redress for breach of this
  Agreement other than with respect to the condition so waived.
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 9.6. | No Broker.
  Each of the parties represents, as to itself, its subsidiaries and its
  affiliates, that no agent, broker, investment banker or other firm or person,
  is or shall be entitled to any brokers or finders fee or any other
  commission or similar fee in connection with this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                        
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 9.7. | Expenses.  Subject to the consummation of the
  Closing, Nexus shall pay at the Closing reasonable legal and other fees and
  costs incurred by the Purchasers, in connection with the investment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 9.8. | Notices.  Any notice, request, instruction or other document (each, a
  notice) to be given hereunder by any party hereto to any other party hereto
  shall be in writing and delivered personally, faxed or sent by registered or
  certified mail, postage prepaid,                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |      | If to Nexus
  to:Nexus
  Telocation Systems Ltd.
  1 Korazin Street
  Givatyim, Israel
  Fax number: 972-3-5719698                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |      | With a copy to:
  Yigal Arnon & Co.,
  1 Azrieli Center, Tel Aviv
  Fax number: 972-3-6087713
  Attn. Orly Tsioni, Adv.
  If to the Purchasers, as set forth in Exhibit A attached hereto.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

- - 25 - -

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| | 9.9.  | Taxes.
  Nexus shall pay all stamp tax or other taxes or duties which may be due in
  connection with the execution of any of this Agreement and the issuance of
  the Shares or the Ordinary Shares exercisable under the Warrants.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | 9.10. | Remedies;
  Severability. All remedies, either under this
  Agreement or by law or otherwise afforded to any of the parties, shall be
  cumulative and not alternative. If any provision of this Agreement is held by
  a court of competent jurisdiction to be unenforceable under applicable law,
  then such provision shall be excluded from this Agreement and the remainder
  of this Agreement shall be interpreted as if such provision were so excluded
  and shall be enforceable in accordance with its terms; provided, however,
  that in such event this Agreement shall be interpreted so as to give effect,
  to the greatest extent consistent with and permitted by applicable law, to
  the meaning and intention of the excluded provision as determined by such
  court of competent jurisdiction.
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | 9.11. | Governing
  Law. The Laws of the State of Israel shall govern
  the validity, performance and enforcement of this Agreement. The parties
  hereto irrevocably submit to the exclusive jurisdiction of the Courts of
  Tel-Aviv in respect of any dispute or matter arising out of or connected with
  this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

WITNESS WHEREOF, each of the parties hereto has caused this Agreement
to be executed on its behalf as of the date first above written.

|NEXUS
  TELOCATION SYSTEMS LTD.   | DBSI
  INVESTMENTS LTD.    
|--------------------------------- | ---------------------------
|                                  |                            
|By:                               |                            
|                                  |                            
|Title:                            |                            
|                                  |                            
|Name:                             |                            
|                                  |                            
|                                  |                            
|POLAR
  COMMUNICATIONS LTD.       | KOONRAS
  TECHNOLOGIES LTD.
|                                  |                            
|By:                               |                            
|                                  |                            
|Title:                            |                            
|                                  |                            
|Name:                             |                            
|                                  |                            
|                                  |                            
|SHREM,
  FUDIM, KELNER & CO. LTD. | BPW ISRAEL
  VENTURES LLC  
|                                  |                            
|By:                               |                            
|                                  |                            
|Title:                            |                            
|                                  |                            
|Name:                             |                            
|                                  |                            

- - 26 - -

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|EMERGING
  MARKETS VENTURES I LP | JACKTAR
  LIMITED
|-------------------------------- | -----------------
|                                 |                  
|By:                              |                  
|                                 |                  
|Title:                           |                  
|                                 |                  
|Name:                            |                  
|                                 |                  
|                                 |                  
|ZIV GANI                         |                  
|                                 |                  

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- - 27 - -

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