| By                and between:   | Marconi                Communications Israel Ltd'(hereinafter:                the " Company") |
|----------------------------------|-----------------------------------------------------------------------------------------------|
| of                the first part |                                                                                          |   |
|                             |                                                                                          |   |
| and                              | Uzi                Shalev                                                                     |
|                             | of                -19 Rotem St, Reut                                                          |
|                             | (hereinafter:                " Employee ")                                                    |

| Whereas | the                company engages in the field of designing, developing, marketing                and                supplying communications devices; and                                                                                                                                                                    |
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|    |                                                                                                                                                                                                                                                                                                                           |
| Whereas | the                company wishes to engage Employee in the position of Vice President,                Research & Development, on the terms and conditions set forth herein;                and                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                           |
| Whereas | Employee                declares that he has the requisite qualifications, expertise and                experience in order to fulfill the position and he hereby accepts                employment by the Company to serve in the above position, on the                terms and                conditions set forth herein' |

| **1.** | **Interpretation                and Preamble** |
|--------|------------------------------------------------|

| 1.1 | The                preamble, and any schedule attached hereto, is incorporated into                the                body                of this Agreement and shall be an integral part of this Agreement.                In                the                event of a conflict between the Schedule and this agreement the                Schedule                shall govern. |
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| 1.2 | Captions                and headings are for convenience of reference only and shall notbe                deemed relevant to any interpretation of this                Agreement. |
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| **2.** | **Employee’s                Warranties and                Undertakings** |
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| 2.1 | Employee                warrants that there is no legal or other impediment to his entering                into                this Agreement and that he is not a party to any agreement or undertaking                that is or shall in the future be contrary to this Agreement and                the                Employee's obligations to the                Company. |
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| 2.2 | the                parties agree that the Company shall not be liable and responsible                for                any                claims, demands, actions, cause of action, damages, losses, costs,                liability                or expenses (including legal fees) which are made or brought in                respect                of, as a result of, or arising out of any third party claim regarding                Employee’s                former employment. |
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| **3.** | **Employment** |
|--------|----------------|

| 3.1. | Employee's                position shall be Vice President, Research & Development and                this                shall include al1the responsibilities involved in this position,                as                defined by                the Company's Chief Executive Officer ("CEO") and the Board of                Directors. |
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| **4.** | **Scope                of the Position** |
|--------|------------------------------------------|

| 4.1. | The                Employee undertakes to fulfill his position with devotion and fidelity                and                to invest all his business time, talents, knowledge, ability, experience                and                energy to fulfilling the position and advancing the Company's                interests. |
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| 4.2 | During                the Term of the Agreement, Employee shall be available for work at                all                reasonable times, according to the Company's needs and requirements                and                shall not engage in any other employment, directly and/or indirectly                and/or                through companies with or without payment, of any nature, or in any                work                or other employment, unless he has obtained prior written consent                from                the company's CEO or the Board of                Directors. |
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| 4.3 | The                duties and responsibilities of the Employee hereunder are of an                administrative                nature and/or require a special degree of personal confidence,                within                the meaning of the Hours of Work and Rest Law, 5711-1951.                (hereinafterter:                the "Work Hours Law"). As such, the provisions of the Work Hours                Law shall not apply to this Agreement and the Employee shall not                be                entitled                to any additional remuneration on account of his work for the company,                including overtime, apart from the remuneration detailed in this                Agreement. |
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| 4.4 | Employee                shall at all times during the term of this Agreement be subject to                the                supervision and direction of the CEO and the Board of Directors,                and                shall                obey and carry out all lawful instructions, directions, rules and                policies                adopted                by the CEO and the Board of Directors, pertaining, inter alia, to                the                manner                of executing the work, work procedures, discipline, conduct,                etc. |
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| 4.5 | Employee's                usual place of work shall be at the company's offices, but it is                clear                to Employee and agreed by him that: |
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|  | 4.5.1 | The                Company's requirements and specific projects may require him                to leave his usual place of work from time to time and also to                work outside the borders of Israel for limited periods of                time; |
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|  | 4.5.2. | Employee                shall not be entitled to additional consideration or any Other                right from the Company inconsequence of his leaving his usual                place of work within the context of his                employment. |
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|  | 4.5.3. | Employee                shall be entitled to a reimbursement of expenses Incurred                for purpose of performing his position including expenses                incurred when on business on behalf of the Company in                lsrael and abroad, in accordance with the Company’s                instructions. |
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| **5.** | **The                Salary and Incentive                Arrangements** |
|--------|-------------------------------------------------------------------------|

| 5.1 | In                consideration for Employee's work at the company, the company shall                pay                the Employee a gross ("brutto") monthly salary in the amount of 50,000                New                Israeli Shekels ("NIS") which amount includes any remuneration for                overtime                work, and from which the company shall deduct any income tax, national                insurance and medical insurance, and any other deductions customarily                payable by employees or as required by law (hereinafter the "Salary"). |
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| 5.2 | The                salary shall be subject to adjustment by the company in accordance                with                the Consumer Price Index ("CPl')' The parties agree that such adjustment                constitutes sufficient compensation for an erosion of theEmployee's                salary and accordingly the Employee shall not be entitled to any                other                increment or compensation in respect of an erosion of his salary.                The                basic                CPI is the CPI which is published and known at the date of the                commencement                of this Agreement' |
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| 5.3 | The                Salary shall be paid each month, by no later than 7 days after the                end of                the                calendar month, into such account as the Employee shall inform the                Company. |
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| 5.4 | Employee                shall only be entitled to 12 salaries each                year. |
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| 5.5 | Once                a year, on 1st July, or such other date as the Company shall consider                appropriate,                the Company will review Employee's performance and salary. Any                Salary increase shall be in the sole discretion of the company, with                reference                to both the Company's performance and Employee's personal achievements. |
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| 5.6 | In                addition the Employee shall be entitled to participate in the Marconi                Annual                Executive Incentive Plan. |
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| **6.** | **Executive                Insurance Program** |
|--------|------------------------------------------------|

| 6.1 | The                Company and the Employee intend that the current executive Insurance                shall                be continued. For such purposes, the company shall make provisions                each                month of 13.33% of the Salary amount according to the following                apportionment: |
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|  | 6.1.1. | 5%                the saving component. |
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|  | 6.1.2. | 8.33%                for the severance pay component. |
|--|--------|-------------------------------------------------------|

|  | 6.1.3 | In                addition the company shall make provision of the amount of up                to 2.5% of the Salary for the loss of earnings capacity component                (all together: the "Employer's                Payments") |
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| 6.2. | In                addition, the company shall deduct 5% savings component from the                Employee’s salary,                which it shall remit to the Executive Insurance Policy together                with the Employer's Payments. |
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| 6.3 | Upon                the termination of the Agreement for whatever reason, save for                termination                as provided in Section 10.4 below, the Company shall arrange that                the funds deposited by the Company pursuant to the Executive Insurance                policy shall be transferred to Employee together with any interest                or                linkage difference earned hereto. Such transfer shall be deemed payment                of                the full severance pay in respect of the period of the Employee's                employment                with the Company, pursuant to section 14of the Severance Pay Law.5723-1963. |
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| **7.** | **Continuing                Study Fund** |
|--------|------------------------------------------|

| **8.** | **Annual                Leave. Sickness and Military Reserve                Service** |
|--------|---------------------------------------------------------------------------------------|

| 8.1 | Employee                shall be entitled to paid annual leave of 21days net (not including                Fridays,                Sabbaths and holidays) for each year of the Employee’s Employment                ((“Normal Leave Days”). The Employee's leave dates shall be coordinated                with Employee’s supervisor. |
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| 8.2 | Employee                shall be entitled to redeem his leave, or part thereof, with money                from                time to time, subject to Company                approval. |
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| 8.3 | Employee                shall only be entitled to accrue Normal Leave Days over a 2 year                period. |
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| 8.4 | Employee                shall be entitled to receive consideration in respect of an actual                period                of sickness up to 14 calendar sickness days a year, and they shall                not                be                deemed as leave days as defined in Section 8'1                above. |
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| 8.5 | The                Employee shall be entitled to receive the full consideration for                the                period                during which he is on military reserve service, subject to him giving                the                company all the necessary documents to obtain the maximum possible                amount                from the National Insurance Institute in respect of the military                reserve                service period. |
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| **9.** | **Motor                Vehicle** |
|--------|----------------------------------|

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| **10.** | **Term                and Termination of the                Agreement** |
|---------|-------------------------------------------------------------------------|

| 10.1 | The                Company undertakes to engage the Employee for an indefinite term                commencing                from the Effective Date and until a Termination event as set out                in this Paragraph (hereinafter: the "Term of the                Agreement"). |
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| 10.2 | The                parties agree that each party may bring this Agreement to an end,                with                or                without cause, on the terms and conditions contained                herein. |
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| 10.3 | In                the event that the Company elects to terminate this Agreement without                cause,                it shall give Employee advance notice in writing of a period of 6                (six)                months.                The company may, in lieu thereof, pay Employee a sum equal to the                salary for the notice period, less the amount of salary actually                paid to                Employee                for the period between the date of the notice of termination and                the                date the termination takes effect (hereinafter: the "Termination                Date").                Any                amount paid to the Employee hereunder in lieu of advance notice shall                be                in addition to moneys received, if any, under the Executive Insurance                Program                or other severance pay that maybe payable. In the event that the                Company                terminates Employee's employment, it may order him not to report                for work, with immediate effect or effective from any other date                as                shall                be decided upon during the period of the prior notice, without                derogating                from the company's obligation to pay his salary during the period                of the prior notice. |
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| 10.4 | In                the event that the Company elects to terminate this Agreement for                cause,                it                may do so immediately without advance notice. The Company may . terminate                Employee's employment for ''cause” 'upon the occurrence of one                or                more of the following: |
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|  | 10.4.1. | Employee                has committed any act of moral turpitude or dishonesty,                including but not limited to theft, fraud, embezzlement,                breach of trust or fiduciary duty, in connection with                the Company or any of its Affiliates, customers, suppliers and/or                service Providers; |
|--|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.4.2. | Employee                is found by the company to have been in willful neglect                of his duty hereunder or Employee commits any material breach                of this Agreement other than a breach which is capable of                remedy and is remedied forthwith by the Employee at the Company's                request; |
|--|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.4.3. | Employee                is arrested or convicted for the commission of any crime                involving an act of moral turpitude or dishonesty;                or |
|--|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.4.4. | Employee                has violated the restrictions set out in this Agreement herein                regarding confidentiality, inventions, work product, and/or                non-competition                (Sections12,13,14). |
|--|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 10.5 | In                the event that Employee elects to terminate this Agreement, he shall                give                advance                written notice to the Company of a period of 6 (six)                months. |
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| 10.6 | Upon                termination of this Agreement for any reason, on or before the                Termination                Date the Employee shall immediately return to the company Any                equipment, documentation materials, Confidential Information or any                other                items furnished to him by the Company, any Affiliate, customer or                supplier,                as well as all other items, documents and materials as required in                Section                12.3.2 hereunder. The Employee shall also confirm in writing that                he                does not possess or hold any equipment, documentation, materials,                confidential                Information or any other items advanced to him by the Company                or its Affiliates, customers or suppliers. In the event the Employee                fails                to do so, the company shall be entitled to withhold any monies owed                including                but not limited to Salary, distribution of the Executive Insurance                Program,                or other Severance benefit, until such time as Employee shall have                complied                with the provisions of this Subparagraph                10.6. |
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| 10.7 | In                the event that Employee owes the Company or its Affiliates money                at the                Termination                Date, due to loans or other payments which have been advanced                to him, the Company shall be entitled to offset the amount owed                from                Employee’s last salary payment prior to termination or from any                legitimate                business expense owing to Employee by the Company to which employee                is entitled. |
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| **11.** | **Handing                Over of Position** |
|---------|---------------------------------------------|

| **12.** | **Confidentiality** |
|---------|---------------------|

|  | 12.1 | Employee                acknowledges that it is the policy of the Company to maintain as                 secret                and confidential all Confidential Information, as hereinafter defined.                “Confidential                Information” shall mean any information, heretofore or hereafter                (i) acquired, discovered, developed, conceived, originated, used                or                prepared                by the Company or the Company's Affiliates, or by an employee of                the                Company or its Affiliates and (ii) revealed or brought to the                Employee’s knowledge                in connection with his employment with the Company and which                falls within any of the following general                categories: |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.1.1. | Information                relating to secrets of the company, its Affiliates, or of                any customer of the Company' or its                Affiliates; |
|--|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.1.2 | Information                relating to existing or contemplated products, services technology                designs, processes, methods, manuals, formulas, computer systems                and/or software, machines, manufacture, compositions, ideas,                improvements, inventions or any research or development of the                Company,                its Affiliates, any customer of the Company or its                Affiliates. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | 12.1.3 | Information                relating to, or documents embodying, the Company’s or its Affiliates                current and future activity, including any business, professional,                financial                or other information, business plans ,sales, marketing or distribution                methods or results, methods of doing business, customer lists,                mailing lists, statistical data and compilations, contracts,                manuals, customer                usage and/or requirements, and supplier information of the Company,                or its Affiliates |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.1.4. | Information                relating to lnventions or Work Products, both defined hereinafter                in general or as described in Section 13 of this                Agreement; |
|--|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.1.5 | Information                relating to the terms of his employment by the Company, including                and without derogating from the generality Of                the above, information regarding salaries, payments, benefits and                the other terms of his employment by the Company' except for                such information which the Employee revealed to his personal professional                consultants and provided that those people to                whom the information was disclosed undertake to keep such information                confidential. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.1.6 | Any                other confidential information that either the Company, any of its                Affiliates,                or any customer of the Company or its Affiliates may wish to protect                by patent, copyright or by keeping same secret or                confidential. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2 | Notwithstanding                the above, the term Confidential Information shall not include                information                which was or becomes generally available to the public (“Public                Domain") other than as a result of disclosure by Employee or by an                associate,                by are a relative or by anyone on behalf of Employee in breach of |
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| 12.3 | Employee                recognizes that the services to be performed by him hereunder are                special                and unique, and that by reason of his duties, he shall acquire                confidential Information.                As far as the relations between the Employee and the Company are                concerned,                Employee recognizes that all such Confidential lnformation                is the property of the Company. In consideration for the Company's                entering into this Agreement' Employee agrees                that: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.3.1 | Employee                shall never, during the Term of the Agreement or at Any                time thereafter, directly or indirectly, use, publish, disseminate,                divulge or otherwise disclose any Confidential Information                obtained in connection with his employment by the Company                without the prior written consent of the Company, it being                understood that this Section shall survive the termination of                this Agreement; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.3.2 | During                the Term of the Agreement, Employee shall exercise all due                and diligent precautions to protect the integrity and security                of                Confidential Information, and upon termination of the Agreement,                he shall return to the Company all documents and any                copies thereof embodying Confidential Information in his possession                custody or under his control. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | 12.3.3 | For                the purpose of this Agreement an Affiliate of the Company shall                mean - subsidiaries or affiliates of Marconi p.l.c. or any legal                entity which is controlled by Marconi                p.l.c. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **13.** | **Inventions                and Work Product** |
|---------|------------------------------------------------|

|  | 13.1 | Employee                will promptly and fully disclose and deliver to the Company for                the                exclusive use and benefit of the Company any Inventions, Work Product                or                other proprietary information, which relates to or is capable of                being                used in                any business of the Company or its Affiliates, promptly upon the                making                or                discovering of the same. Employee undertakes he will give all information                and data in his possession as to the exact mode of working, producing                and using the same along with all such explanations and instructions                to the Company as may, in the view of the Company, be necessary                to enable the full and effectual working, production or use of the                same.                Employee further undertakes that, at the expense of the Company,                he                shall                furnish the Company with all necessary plans, drawings, formulae,                and                models                of any inventions, Work Product or proprietary                information. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.2 | Employee                will, without charge to, but at the expense of the Company, execute                and do all acts, matters, documents and things necessary to enable                the                Company or its nominee, successor or assign to apply for and obtain                protection                for the Inventions in any or all countries and to vest title thereto                in                the Company or its nominee, successor or assign                absolutely. |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.3 | During                the Term of the Agreement and at all times thereafter Employee will                (whether                by omission or commission) do nothing to affect, imperil or challenge                the validity of the protection for the lnventions, Work product                and/or                proprietary information, obtained or applied for by Company or its                nominee,                Successor or assign pursuant to this Agreement. Furthermore, Employee                covenants to perform his work with all necessary security precaution                to protect the Inventions, Work Product and proprietary information. |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.4 | Employee                will, at the direction and expense of the Company, render any and                all                assistance within his power to obtain and maintain such protection                or                application                or any extension thereof, including in any patent office proceedings                or litigation involving Inventions, Work product and/or proprietary                information in Israel or anywhere in the                world. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.5 | Nothing                in this Agreement shall oblige the Company to seek patent, copyright,                trademark or other protection for any Inventions, Work product                and/or                proprietary information nor to exploit any Inventions, Work product                and/or                proprietary information. |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.6 | For                purposes of this Agreement, the term "Inventions" shall mean all                inventions,                improvements, modifications, processes, formulae, know-how, ideas,                designs, models, prototypes, computer programs, sketches, drawings,                plans,                packaging designs, new product ideas, logos, advertising and marketing                concepts or other original matters (whether or not capable of protection                by patent, registered design, copyright, registered trade mark or                other                rights in the nature of intellectual property) which Employee alone                or                with                any person or persons, may make, conceive, or discover, during the                term                of his employment hereunder. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | 13.7 | Any                work product (herein '”Work Product") of the Employee resulting                from                any research or other development or other activities performed in                connection                with his duties hereunder, together with any and all developments                and know-how made by the Employee or under the Employee's                direction shall be the sole, exclusive and complete property of                the                Company, whether or not subject to registration under any patent,                copyright                or other intellectual property law or regime, and if so registrable,                then                the Company shall have the sole and exclusive right to own and                register                any such patent, copyright, trademark or other intellectual property                right                throughout the world. |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.8 | Employee                covenants that there are no Inventions and/or Work Products that                he                desires to exclude from the operation or effectiveness of this                Agreement. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.9 | Employee                covenants that all Work Product, documentation, and other materials                which relates to his work in the Company or to the Invention shall                always                remain in the place of employment, and shall never be taken out of                the                place of employment, without the prior consent of the                Company. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | **Non-Competition** |
|-----|---------------------|

|  | 14.1 | For                the purposes of this Agreement, the Non-Competition Period shall                mean                the                period commencing on the Effective Date and ending one year after                the                Termination                Date. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 14.2 | During                the Non-Competition Period, Employee shall not in any way, except                with                the express written consent of the Company, be engaged, directly                or                indirectly,                as an employee, partner, sole proprietor, officer, director, representative,                consultant, agent or stockholder (other than as the holder of not                more than five percent of the stock of a corporation the shares of                which                are                publicly traded) of any corporation, partnership, proprietorship                or other                form                of business entity, except an Affiliate of the Company, engaged in                any                business                that is competitive with any business in which the company is engaged                and/or compete with any activity and/or in any field of any Affiliate                with respect to which employee has been exposed to Confidential                Information                and/or in any business in which the Company has a plan to become                engaged at the Termination date as well as in any other position                involving                the use of the Company’s professional commercial trade-secrets,                during                the term of Employee's employment hereunder. Without limiting the                foregoing,                during the Non-Competition Period the Employee shall                not: |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 14.2.1. | seek                to persuade, directly or indirectly, any director, officer or employee                of the Company or its Affiliates to discontinue thatindividual's                status or employment with the Company or its                Affiliates. |
|--|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | 14.2.2 | seek                to persuade, directly or indirectly any director, officer or Employee                of the Company or its Affiliates to become employed in                any activity similar to or competitive with the activities of the                Company                or its Affiliates. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 14.2.3 | directly                or indirectly, hire or retain any director, officer or Employee                of the Company or its Affiliates. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|  | 14.2.4 | directly                or indirectly contact the company's or its Affiliates, customers,                including not becoming an employee or consultant of any                customer of the Company or its Affiliates. This restriction shall                apply in areas which relate to any business that is competitive                with any business in which the company is or was during                the Term of the Agreement engaged and/or in any business                in which the company has a plan to become engaged at the                Termination date. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 14.3. | The                Employee acknowledges that the length of the Non Competition period                was                agreed due to (a) the company's engagement in the field of research&                development                where its primary assets are intellectual property, and (b) the                special                benefits which Employee is going to and will receive from the Company                in consideration for his non competition undertaking                herein. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15. | **Disclosure                of Personal Interest and Conflict of                Interest** |
|-----|--------------------------------------------------------------------------------------------|

| 16. | **Remedies                for The Employee’s Breach of Sections 12, 13, 14, 15 of this                Agreement**  |
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| 17. | **Change                or Cancellation** |
|-----|-------------------------------------------|

| 18. | **Notices** |
|-----|-------------|

| The                Company | The                Employee |
|----------------------------|-----------------------------|

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