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WWW.EXFILE.COM -- 888-775-4789 -- MEDIS TECHNOLOGIES -- EXHIBIT 10.3 TO FORM 8-K -- 16592

    EXHIBIT 10.3

     

    
 

    SECURITY
AGREEMENT

     

    This
SECURITY AGREEMENT, dated as of September 16, 2009 (the “Agreement”) is by and
among Medis Technologies Ltd., a Delaware corporation (“Medis”), Medis El
Ltd., a corporation formed under the laws of the State of Israel (“Medis El”), More
Energy Ltd., a corporation formed under the laws of the State of Israel (“More”), and Iroquois
Master Fund Ltd. (“Purchaser”).

     

    Medis and
Purchaser are parties to a Subscription Agreement dated as of September 16, 2009
(as modified and supplemented and in effect from time to time, the “Subscription
Agreement”), that provides, subject to the terms and conditions thereof,
for the issuance and sale by Medis to Purchaser of Notes and Warrants as more
fully described in the Subscription Agreement.

     

    To induce
Purchaser to enter into the Subscription Agreement, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Debtor has agreed to pledge and grant a security interest in the
Collateral (as hereinafter defined) as security for the Secured Obligations (as
hereinafter defined).  Accordingly, the parties hereto agree as
follows:

     

    Section
1. Definitions.  Each
capitalized term used herein and not otherwise defined shall have the meaning
assigned to such term in the Subscription Agreement.  In addition, as
used herein:

     

    “Accounts” shall have
the meaning ascribed thereto in Section 3(d) hereof.

     

    “Business” shall mean
the businesses from time to time, now or hereafter, conducted by Debtor and its
Subsidiaries.

     

    “Collateral” shall
have the meaning ascribed thereto in Section 3 hereof.

     

    “Copyright Collateral”
shall mean all Copyrights, whether now owned or hereafter acquired by Debtor,
that are associated with the Business.

     

    “Copyrights” shall
mean all copyrights, copyright registrations and applications for copyright
registrations, including those shown on Annex
3 hereto, and, without limitation, all renewals and extensions thereof,
the right to recover for all past, present and future infringements thereof, and
all other rights whatsoever accruing thereunder or pertaining
thereto.

     

    “Debtor” shall mean
each of Medis, Medis El and More.

     

    “Documents” shall have
the meaning ascribed thereto in Section 3(j) hereof.

     

    “Equipment” shall have
the meaning ascribed thereto in Section 3(h) hereof.

     

    “Event of Default”
shall have the meaning ascribed thereto in Article IV of the Notes.

     

    “Excluded Collateral”
shall mean the assets of Debtor which secure the Permitted Indebtedness and the
assets listed on Annex
2 hereto.

     

    “Guaranty” shall mean
the Guaranty provided by each of Medis El and More as described in Section 3 of
the Subscription Agreement.

     

    “Instruments” shall
have the meaning ascribed thereto in Section 3(e) hereof.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Intellectual
Property” shall mean, collectively, all Copyright Collateral, all Patent
Collateral and all Trademark Collateral, together with (a) all inventions,
processes, production methods, proprietary information, know-how and trade
secrets used or useful in the Business; (b) all licenses or user or other
agreements granted to Debtor with respect to any of the foregoing, in each case
whether now or hereafter owned or used including, without limitation, the
licenses or other agreements with respect to the Copyright Collateral, the
Patent Collateral or the Trademark Collateral; (c) all customer lists,
identification of suppliers, data, plans, blueprints, specifications, designs,
drawings, recorded knowledge, surveys, manuals, materials standards, processing
standards, catalogs, computer and automatic machinery software and programs, and
the like pertaining to the operation by Debtor of the Business; (d) all sales
data and other information relating to sales now or hereafter collected and/or
maintained by Debtor that pertain to the Business; (e) all accounting
information which pertains to the Business and all media in which or on which
any of the information or knowledge or data or records which pertain to the
Business may be recorded or stored and all computer programs used for the
compilation or printout of such information, knowledge, records or data; (f) all
licenses, consents, permits, variances, certifications and approvals of
governmental agencies now or hereafter held by Debtor pertaining to the
operation by Debtor and its Subsidiaries of the Business; and (g) all causes of
action, claims and warranties now or hereafter owned or acquired by Debtor in
respect of any of the items listed above.

     

    “Inventory” shall have
the meaning ascribed thereto in Section 3(f) hereof.

     

    “Issuers” shall mean,
collectively, the respective entities identified on Annex
1 hereto, and all other entities formed by Debtor or entities in which
Debtor owns or acquires any capital stock or similar interest.

     

    “Motor Vehicles” shall
mean motor vehicles, tractors, trailers and other like property, whether or not
the title thereto is governed by a certificate of title or
ownership.

     

    “Patent Collateral”
shall mean all Patents, whether now owned or hereafter acquired by Debtor that
are associated with the Business.

     

    “Patents” shall mean
all patents and patent applications, including those shown on Annex
3 hereto, and without limitation, the inventions and improvements
described and claimed therein together with the reissues, divisions,
continuations, renewals, extensions and continuations-in-part thereof, all
income, royalties, damages and payments now or hereafter due and/or payable
under and with respect thereto, including, without limitation, damages and
payments for past or future infringements thereof, the right to sue for past,
present and future infringements thereof, and all rights corresponding thereto
throughout the world.

     

    “Payment in Full”
shall mean the indefeasible payment in full in cash or any other form of
consideration that is expressly acceptable to Purchaser (provided that the
acceptance in any one instance by a Purchaser of such other form of
consideration shall not be deemed to be a waiver or relinquishment of such
Purchaser’s right to decline such other form of consideration at any other time)
of the Secured Obligations.  If after receipt of any payment of, or
Proceeds applied to the payment of the Secured Obligations, Purchaser is
required to surrender or return such payment or Proceeds for any reason, then
the Secured Obligations intended to be satisfied by such payment or Proceeds
shall be reinstated and continue and this Agreement shall continue in full force
and effect as if such payment or Proceeds had not been received by Purchaser or
any Purchaser, as the case may be, and no Payment in Full shall be deemed to
have occurred.

     

    “Permitted
Indebtedness” shall mean Debtor’s existing indebtedness, liabilities and
obligations as disclosed on Annex
5 hereto and any future capitalized leases, purchase money indebtedness
and the Notes.

     

    “Permitted Liens”
shall have the meaning ascribed thereto in Section 9(p) of the Subscription
Agreement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Pledged Stock” shall
have the meaning ascribed thereto in Section 3(a) hereof.

     

    “Real Estate” shall
have the meaning ascribed thereto in Section 3(l) hereof.

     

    “Secured Obligations”
shall mean, collectively, the principal of and interest on the Notes issued or
issuable (as applicable) by Debtor and held by the Purchaser and all other
amounts from time to time owing to Purchaser by Debtor under the Subscription
Agreement, each Guaranty and the Note.

     

    “Stock Collateral”
shall mean, collectively, the Collateral described in clauses (a) through (c) of
Section 3 hereof and the proceeds of and to any such property and, to the extent
related to any such property or such proceeds, all books, correspondence, credit
files, records, invoices and other papers.

     

    “Trademark Collateral”
shall mean all Trademarks, whether now owned or hereafter acquired by Debtor,
that are associated with the Business.  Notwithstanding the foregoing,
the Trademark Collateral does not and shall not include any Trademark which
would be rendered invalid, abandoned, void or unenforceable by reason of its
being included as part of the Trademark Collateral.

     

    “Trademarks” shall
mean all trade names, trademarks and service marks, logos, trademark and service
mark registrations, and applications for trademark and service mark
registrations, including those shown on Annex
3 hereto and without limitation, all renewals of trademark and service
mark registrations, all rights corresponding thereto throughout the world, the
right to recover for all past, present and future infringements thereof, all
other rights of any kind whatsoever accruing thereunder or pertaining thereto,
together, in each case, with the product lines and goodwill of the business
connected with the use of, and symbolized by, each such trade name, trademark
and service mark.

     

    “Uniform Commercial
Code” shall mean the Uniform Commercial Code as in effect in the State of
New York from time to time.

     

    Section
2. Representations and
Warranties.  Each Debtor represents and warrants to Purchaser
that:

     

    
      	
              a.  

            	
              Debtor
      is the sole beneficial owner of the Collateral and no Lien exists or will
      exist upon any Collateral at any time (and, with respect to the Stock
      Collateral, no right or option to acquire the same exists in favor of any
      other Person), except for Permitted Liens and the pledge and security
      interest in favor of the Purchaser created or provided for herein which
      pledge and security interest will constitute a first priority perfected
      pledge and security interest in and to all of the Collateral (other than
      Intellectual Property registered outside of the United States of America)
      upon the filing of the applicable financing statements or delivery of
      stock certificates required
hereunder;

            

    

     

    
      	
              b.  

            	
              the
      Pledged Stock directly or indirectly owned by Debtor in the entities
      identified in Annex
      1 hereto is, and all other Pledged Stock, whether issued now or in
      the future, will be, duly authorized, validly issued, fully paid and
      nonassessable, free and clear of all Liens other than Permitted Liens and
      none of such Pledged Stock is or will be subject to any contractual
      restriction, preemptive and similar rights, or any restriction under the
      charter or by-laws of the respective Issuers of such Pledged Stock, upon
      the transfer of such Pledged Stock (except for any such restriction
      contained herein);

            

    

     

    
      	
              c.  

            	
              the
      Pledged Stock directly or indirectly owned by Debtor in the entities
      identified in Annex
      1 hereto constitutes all of the issued and outstanding shares of
      capital stock of any class of such Issuers beneficially owned by Debtor on
      the date hereof (whether or not registered in the name of Debtor) and said
      Annex
      1 correctly identifies, as at the date hereof, the respective
      Issuers of such Pledged Stock;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              d.  

            	
              except
      as may be set forth in said Annex
      3, Debtor owns and possesses the right to use, and has done nothing
      to authorize or enable any other Person to use, all of its Copyrights,
      Patents and Trademarks necessary for the operation of the Business, and
      all registrations of its material Copyrights, Patents and Trademarks are
      valid and in full force and effect;

            

    

     

    
      	
              e.  

            	
              to
      Debtor’s knowledge, (i) except as set forth in Annex
      3 hereto, there is no violation by others of any right of Debtor
      with respect to any material Copyrights, Patents or Trademarks,
      respectively, and (ii) Debtor is not, in connection with the Business,
      infringing in any respect upon any Copyrights, Patents or Trademarks of
      any other Person; and no proceedings have been instituted or are pending
      against Debtor or, to Debtor’s knowledge, threatened, and no claim against
      Debtor has been received by Debtor, alleging any such violation, except as
      may be set forth in said Annex
      3;

            

    

     

    
      	
              f.  

            	
              Debtor
      does not own any material Trademarks registered in the United States of
      America to which the last sentence of the definition of Trademark
      Collateral applies.

            

    

     

    Section
3. Collateral.  As
collateral security for the prompt Payment in Full when due (whether at stated
maturity, by acceleration or otherwise) of the Secured Obligations, Debtor
hereby pledges, grants, assigns, hypothecates and transfers to the Purchaser as
hereinafter provided, a security interest in and Lien upon all of Debtor’s
right, title and interest in, to and under all personal property and other
assets of Debtor, whether now owned or hereafter acquired by or arising in favor
of Debtor, whether now existing or hereafter coming into existence, whether
owned or consigned by or to, or leased from or to Debtor and regardless of where
located, except for the Excluded Collateral, (all being collectively referred to
herein as “Collateral”)
including:

     

    
      	
              a.  

            	
              Debtor’s
      direct or indirect ownership interest in the respective shares of capital
      stock of the Issuers and all other shares of capital stock of whatever
      class of the Issuers, now or hereafter owned by Debtor, together with in
      each case the certificates evidencing the same (collectively, the “Pledged
      Stock”);

            

    

     

    
      	
              b.  

            	
              all
      shares, securities, moneys or property representing a dividend on any of
      the Pledged Stock, or representing a distribution or return of capital
      upon or in respect of the Pledged Stock, or resulting from a split-up,
      revision, reclassification or other like change of the Pledged Stock or
      otherwise received in exchange therefor, and any subscription warrants,
      rights or options issued to the holders of, or otherwise in respect of,
      the Pledged Stock;

            

    

     

    
      	
              c.  

            	
              without
      affecting the obligations of Debtor under any provision prohibiting such
      action hereunder or under the Subscription Agreement or the Notes, in the
      event of any consolidation or merger in which any Issuer is not the
      surviving corporation, all shares of each class of the capital stock of
      the successor corporation (unless such successor corporation is Debtor
      itself) formed by or resulting from such consolidation or merger (the
      Pledged Stock, together with all other certificates, shares, securities,
      properties or moneys as may from time to time be pledged hereunder
      pursuant to clause (a) or (b) above and this clause (c) being herein
      collectively called the “Stock
      Collateral”);

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              d.  

            	
              all
      accounts and general intangibles (each as defined in the Uniform
      Commercial Code) of Debtor constituting any right to the payment of money,
      including (but not limited to) all moneys due and to become due to Debtor
      in respect of any loans or advances for the purchase price of Inventory or
      Equipment or other goods sold or leased or for services rendered, all
      moneys due and to become due to Debtor under any guarantee (including a
      letter of credit) of the purchase price of Inventory or Equipment sold by
      Debtor and all tax refunds (such accounts, general intangibles and moneys
      due and to become due being herein called collectively “Accounts”);

            

    

     

    
      	
              e.  

            	
              all
      instruments, chattel paper or letters of credit (each as defined in the
      Uniform Commercial Code) of Debtor evidencing, representing, arising from
      or existing in respect of, relating to, securing or otherwise supporting
      the payment of, any of the Accounts, including (but not limited to)
      promissory notes, drafts, bills of exchange and trade acceptances (herein
      collectively called “Instruments”);

            

    

     

    
      	
              f.  

            	
              all
      inventory (as defined in the Uniform Commercial Code) of Debtor and all
      goods obtained by Debtor in exchange for such inventory (herein
      collectively called “Inventory”);

            

    

     

    
      	
              g.  

            	
              all
      Intellectual Property and all other accounts or general intangibles of
      Debtor not constituting Intellectual Property or
  Accounts;

            

    

     

    
      	
              h.  

            	
              all
      equipment (as defined in the Uniform Commercial Code) of Debtor (herein
      collectively called “Equipment”);

            

    

     

    
      	
              i.  

            	
              each
      contract and other agreement of Debtor relating to the sale or other
      disposition of Inventory or
Equipment;

            

    

     

    
      	
              j.  

            	
              all
      documents of title (as defined in the Uniform Commercial Code) or other
      receipts of Debtor covering, evidencing or representing Inventory or
      Equipment (herein collectively called “Documents”);

            

    

     

    
      	
              k.  

            	
              all
      rights, claims and benefits of Debtor against any Person arising out of,
      relating to or in connection with Inventory or Equipment purchased by
      Debtor, including, without limitation, any such rights, claims or benefits
      against any Person storing or transporting such Inventory or
      Equipment;

            

    

     

    
      	
              l.  

            	
              all
      estates in land together with all improvements and other structures now or
      hereafter situated thereon, together with all rights, privileges,
      tenements, hereditaments, appurtenances, easements, including, but not
      limited to, rights and easements for access and egress and utility
      connections, and other rights now or hereafter appurtenant thereto ("Real
      Estate");

            

    

     

    
      	
              m.  

            	
              all
      other tangible or intangible property of Debtor, including, without
      limitation, all proceeds, products and accessions of and to any of the
      property of Debtor described in clauses (a) through (l) above in this
      Section 3 (including, without limitation, any proceeds of insurance
      thereon), and, to the extent related to any property described in said
      clauses or such proceeds, products and accessions, all books,
      correspondence, credit files, records, invoices and other papers,
      including without limitation all tapes, cards, computer runs and other
      papers and documents in the possession or under the control of Debtor or
      any computer bureau or service company from time to time acting for
      Debtor.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
4. Further Assurances;
Remedies.  In furtherance of the grant of the pledge and
security interest pursuant to Section 3 hereof, Debtor hereby agrees with the
Purchaser as follows:

     

    4.01 Delivery and Other
Perfection.  Debtor shall:

     

    
      	
              a.  

            	
              if
      any of the above-described shares, securities, monies or property required
      to be pledged by Debtor under clauses (a), (b) and (c) of Section 3 hereof
      are received by Debtor, forthwith either (x) transfer and deliver to the
      Purchaser such shares or securities so received by Debtor (together with
      the certificates for any such shares and securities duly endorsed in blank
      or accompanied by undated stock powers duly executed in blank) all of
      which thereafter shall be held by the Purchaser, pursuant to the terms of
      this Agreement, as part of the Collateral or (y) take such other action as
      the Purchaser shall reasonably deem necessary or appropriate to duly
      record the Lien created hereunder in such shares, securities, monies or
      property referred to in said clauses (a), (b) and (c) of Section
      3;

            

    

     

    
      	
              b.  

            	
              deliver
      the certificates representing ownership of the capital stock of Medis El
      and More together with undated stock powers duly executed in blank to the
      Purchaser within three business days of the execution of this
      Agreement.  Failure to deliver the certificates within three business days
      following the Closing Date, shall be a material default under this
      Agreement and the Note.

            

    

     

    
      	
              c.  

            	
              deliver
      and pledge to the Purchaser, at the Purchaser's request, any and all
      Instruments, endorsed and/or accompanied by such instruments of assignment
      and transfer in such form and substance as the Purchaser may request;
      provided, that so long as no Event of Default shall have occurred and be
      continuing, Debtor may retain for collection in the ordinary course any
      Instruments received by it in the ordinary course of business and the
      Purchaser shall, promptly upon request of Debtor, make appropriate
      arrangements for making any other Instrument pledged by Debtor available
      to it for purposes of presentation, collection or renewal (any such
      arrangement to be effected, to the extent deemed appropriate by the
      Purchaser, against trust receipt or like
  document);

            

    

     

    
      	
              d.  

            	
              give,
      execute, deliver, file and/or record any financing statement, notice,
      instrument, document, agreement or other papers that may be necessary (in
      the reasonable judgment of the Purchaser) to create, preserve, perfect or
      validate any security interest granted pursuant hereto or to enable the
      Purchaser to exercise and enforce their rights hereunder with respect to
      such security interest, including, without limitation, causing any or all
      of the Stock Collateral to be transferred of record into the name of the
      Purchaser or its nominee (and the Purchaser agrees that if any Stock
      Collateral is transferred into its name or the name of its nominee, the
      Purchaser will thereafter promptly give to Debtor copies of any notices
      and communications received by it with respect to the Stock
      Collateral);

            

    

     

    
      	
              e.  

            	
              upon
      the acquisition after the date hereof by Debtor of any Equipment covered
      by a certificate of title or ownership cause the Purchaser to be listed as
      the lienholder on such certificate of title and within 120 days of the
      acquisition thereof deliver evidence of the same to the
      Purchaser;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              f.  

            	
              keep
      accurate books and records relating to the Collateral, and stamp or
      otherwise mark such books and records in such manner as the Purchaser may
      reasonably require in order to reflect the security interests granted by
      this Agreement;

            

    

     

    
      	
              g.  

            	
              furnish
      to the Purchaser from time to time (but, unless an Event of Default shall
      have occurred and be continuing, no more frequently than quarterly)
      statements and schedules further identifying and describing the Copyright
      Collateral, the Patent Collateral and the Trademark Collateral,
      respectively, and such other reports in connection with the Copyright
      Collateral, the Patent Collateral and the Trademark Collateral, as the
      Purchaser may reasonably request, all in reasonable
  detail;

            

    

     

    
      	
              h.  

            	
              permit
      representatives of the Purchaser, upon reasonable notice, at any time
      during normal business hours to inspect and make abstracts from its books
      and records pertaining to the Collateral, and permit representatives of
      the Purchaser to be present at Debtor’s place of business to receive
      copies of all communications and remittances relating to the Collateral,
      and forward copies of any notices or communications by Debtor with respect
      to the Collateral, all in such manner as the Purchaser may reasonably
      require; and

            

    

     

    
      	
              i.  

            	
              upon
      the occurrence and during the continuance of any Event of Default, upon
      request of the Purchaser, promptly notify each account debtor in respect
      of any Accounts or Instruments that such Collateral has been assigned to
      the Purchaser hereunder, and that any payments due or to become due in
      respect of such Collateral are to be made directly to the
      Purchaser.

            

    

     

    4.02 Other Financing Statements
and Liens.  Except with respect to Permitted Indebtedness,
without the prior written consent of the Purchaser, Debtor shall not file or
suffer to be on file, or authorize or permit to be filed or to be on file, in
any jurisdiction, any financing statement or like instrument with respect to the
Collateral in which the Purchaser is not named as the sole secured
party.

     

    4.03 Preservation of
Rights.  The Purchaser shall not be required to take steps
necessary to preserve any rights against prior parties to any of the
Collateral.

     

    4.04 Special Provisions Relating
to Certain Collateral.

     

    
      	
              a.  

            	
              Stock
      Collateral.

            

    

     

    
      	
              (1)  

            	
              Debtor
      will cause the Stock Collateral to constitute at all times 100% of the
      total number of shares of each class of capital stock of each Issuer then
      outstanding that is owned directly or indirectly by
  Debtor.

            

    

     

    
      	
              (2)  

            	
              So
      long as no Event of Default shall have occurred and be continuing, Debtor
      shall have the right to exercise all voting, consensual and other powers
      of ownership pertaining to the Stock Collateral for all purposes not
      inconsistent with the terms of this Agreement, the Subscription Agreement,
      the Notes or any other instrument or agreement referred to herein or
      therein, provided that Debtor agrees that it will not vote the Stock
      Collateral in any manner that is inconsistent with the terms of this
      Agreement, the Subscription Agreement, the Notes or any such other
      instrument or agreement; and the Purchaser shall execute and deliver to
      Debtor or cause to be executed and delivered to Debtor all such proxies,
      powers of attorney, dividend and other orders, and all such instruments,
      without recourse, as Debtor may reasonably request for the purpose of
      enabling Debtor to exercise the rights and powers which it is entitled to
      exercise pursuant to this Section
4.04(a)(2).

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              (3)  

            	
              Unless
      and until an Event of Default has occurred and is continuing, Debtor shall
      be entitled to receive and retain any dividends on the Stock Collateral
      paid in cash out of earned surplus.

            

    

     

    
      	
              (4)  

            	
              If
      any Event of Default shall have occurred, then so long as such Event of
      Default shall continue, and whether or not the Purchaser exercises any
      available right to declare any Secured Obligations due and payable or
      seeks or pursues any other relief or remedy available to it under
      applicable law or under this Agreement, the Subscription Agreement, the
      Notes or any other agreement relating to such Secured Obligations, all
      dividends and other distributions on the Stock Collateral shall be paid
      directly to the Purchaser and retained by it as part of the Stock
      Collateral, subject to the terms of this Agreement, and, if the Purchaser
      shall so request in writing, Debtor agrees to execute and deliver to the
      Purchaser appropriate additional dividend, distribution and other orders
      and documents to that end, provided that if such Event of Default is
      cured, any such dividend or distribution theretofore paid to the Purchaser
      shall, upon request of Debtor (except to the extent theretofore applied to
      the Secured Obligations) be returned by the Purchaser to
      Debtor.

            

    

     

    4.05 Events of Default,
etc.  During the period during which an Event of Default shall
have occurred and be continuing:

     

    
      	
              a.  

            	
              Debtor
      shall, at the request of the Purchaser, assemble the Collateral owned by
      it at such place or places, reasonably convenient to both the Purchaser
      and Debtor, designated in its
request;

            

    

     

    
      	
              b.  

            	
              the
      Purchaser may make any reasonable compromise or settlement deemed
      desirable with respect to any of the Collateral and may extend the time of
      payment, arrange for payment in installments, or otherwise modify the
      terms of, any of the Collateral;

            

    

     

    
      	
              c.  

            	
              the
      Purchaser shall have all of the rights and remedies with respect to the
      Collateral of a secured party under the Uniform Commercial Code (whether
      or not said Code is in effect in the jurisdiction where the rights and
      remedies are asserted) and such additional rights and remedies to which a
      secured party is entitled under the laws in effect in any jurisdiction
      where any rights and remedies hereunder may be asserted, including,
      without limitation, the right, to the maximum extent permitted by law, to
      exercise all voting, consensual and other powers of ownership pertaining
      to the Collateral as if the Purchaser were the sole and absolute owner
      thereof (and Debtor agrees to take all such action as may be appropriate
      to give effect to such right);

            

    

     

    
      	
              d.  

            	
              the
      Purchaser in its discretion may, in its name or in the name of Debtor or
      otherwise, demand, sue for, collect or receive any money or property at
      any time payable or receivable on account of or in exchange for any of the
      Collateral, but shall be under no obligation to do so;
  and

            

    

     

    
      	
              e.  

            	
              the
      Purchaser may, upon 10 Business Days, prior written notice to Debtor of
      the time and place, with respect to the Collateral or any part thereof
      which shall then be or shall 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	
                  

              	
                thereafter
      come into the possession, custody or control of the Purchaser, or any of
      its respective agents, sell, lease, assign or otherwise dispose of all or
      any of such Collateral, at such place or places as the Purchaser deems
      best, and for cash or on credit or for future delivery (without thereby
      assuming any credit risk), at public or private sale, without demand of
      performance or notice of intention to effect any such disposition or of
      time or place thereof (except such notice as is required above or by
      applicable statute and cannot be waived) and the Purchaser or anyone else
      may be the purchaser, lessee, assignee or recipient of any or all of the
      Collateral so disposed of at any public sale (or, to the extent permitted
      by law, at any private sale), and thereafter hold the same absolutely,
      free from any claim or right of whatsoever kind, including any right or
      equity of redemption (statutory or otherwise), of Debtor, any such demand,
      notice or right and equity being hereby expressly waived and
      released.  In the event of any sale, assignment, or other
      disposition of any of the Trademark Collateral, the goodwill of the
      Business connected with and symbolized by the Trademark Collateral subject
      to such disposition shall be included, and Debtor shall supply to the
      Purchaser or its designee, for inclusion in such sale, assignment or other
      disposition, all Intellectual Property relating to such Trademark
      Collateral.  The Purchaser may, without notice or publication,
      adjourn any public or private sale or cause the same to be adjourned from
      time to time by announcement at the time and place fixed for the sale, and
      such sale may be made at any time or place to which the same may be so
      adjourned.

              

      

       

    

    The
proceeds of each collection, sale or other disposition under this Section 4.05
shall be applied in accordance with Section 4.09 hereof.

     

    Debtor
recognizes that, by reason of certain prohibitions contained in the Securities
Act of 1933, as amended, and applicable state securities laws, the Purchaser may
be compelled, with respect to any sale of all or any part of the Collateral, to
limit purchasers to those who will agree, among other things, to acquire the
Collateral for their own account, for investment and not with a view to the
distribution or resale thereof.  Debtor acknowledges that any such
private sales to an unrelated third party in an arm’s length transaction may be
at prices and on terms less favorable to the Purchaser than those obtainable
through a public sale without such restrictions, and, notwithstanding such
circumstances, agrees that any such private sale shall be deemed to have been
made in a commercially reasonable manner and that the Purchaser shall have no
obligation to engage in public sales and no obligation to delay the sale of any
Collateral for the period of time necessary to permit the respective Issuer
thereof to register it for public sale.

     

    4.06 Deficiency.  If
the proceeds of sale, collection or other realization of or upon the Collateral
pursuant to Section 4.05 hereof are insufficient to cover the costs and expenses
of such realization and the Payment in Full of the Secured Obligations, Debtor
shall remain liable for any deficiency.

     

    4.07 Removals,
etc.  Without at least 30 days’ prior written notice to the
Purchaser or unless otherwise required by law, Debtor shall not (i) maintain any
of its books or records with respect to the Collateral at any office or maintain
its chief executive office or its principal place of business at any place, or
permit any Inventory or Equipment to be located anywhere other than at the
address indicated for Debtor in Section 5.03 hereof or at one of the locations
identified in Annex
4 hereto or in transit from one of such locations to another or (ii)
change its corporate name, or the name under which it does business, from the
name shown on the signature page hereto.

     

    4.08 Private
Sale.  The Purchaser shall incur no liability as a result of
the sale of the Collateral, or any part thereof, at any private sale to an
unrelated third party in an arm’s length transaction pursuant to Section 4.05
hereof conducted in a commercially reasonable manner.  Debtor hereby
waives any 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    claims
against the Purchaser arising by reason of the fact that the price at which the
Collateral may have been sold at such a private sale was less than the price
which might have been obtained at a public sale or was less than the aggregate
amount of the Secured Obligations, even if the Purchaser accepts the first offer
received and does not offer the Collateral to more than one
offeree.

     

    4.09 Application of
Proceeds.  Except as otherwise herein expressly provided, the
proceeds of any collection, sale or other realization of all or any part of the
Collateral pursuant hereto, and any other cash at the time held by the Purchaser
under this Section 4, shall be applied by the Purchaser:

     

    First, to the payment
of the costs and expenses of such collection, sale or other realization,
including reasonable out-of-pocket costs and expenses of the Purchaser and the
fees and expenses of its agents and counsel, and all expenses, and advances made
or incurred by the Purchaser in connection therewith;

     

    Next, to the Payment
in Full of the Secured Obligations then due and owing to Purchaser;
and

     

    Finally, to the
payment to Debtor, or its successors or assigns, or as a court of competent
jurisdiction may direct, of any surplus then remaining.

     

    As used
in this Section 4, “proceeds” of
Collateral shall mean cash, securities and other property realized in respect
of, and distributions in kind of, Collateral, including any thereof received
under any reorganization, liquidation or adjustment of debt of Debtor or any
issuer of or obligor on any of the Collateral.

     

    4.10 Attorney-in-Fact.  Without
limiting any rights or powers granted by this Agreement to the Purchaser while
no Event of Default has occurred and is continuing, upon the occurrence and
during the continuance of any Event of Default, the Purchaser is hereby
appointed the attorney-in-fact of Debtor for the purpose of carrying out the
provisions of this Section 4 and taking any action and executing any instruments
which the Purchaser may deem necessary or advisable to accomplish the purposes
hereof, which appointment as attorney-in-fact is irrevocable and coupled with an
interest.  Without limiting the generality of the foregoing, so long
as the Purchaser shall be entitled under this Section 4 to make collections in
respect of the Collateral, the Purchaser shall have the right and power to
receive, endorse and collect all checks made payable to the order of Debtor
representing any dividend, payment, or other distribution in respect of the
Collateral or any part thereof and to give full discharge for the
same.

     

    4.11 Perfection.  (i)
Prior to or concurrently with the execution and delivery of this Agreement,
Debtor shall, and the Purchaser may, file such financing statements and other
documents in such offices as the Purchaser may request or elect, to perfect the
security interests granted by Section 3 of this Agreement, and (ii) at any time
requested by the Purchaser, Debtor shall deliver to the Purchaser all share
certificates of capital stock directly or indirectly owned by Debtor in the
entities identified in Annex
1 hereto, accompanied by undated stock powers duly executed in
blank.

     

    4.12 Termination.  When
Payment in Full of all Secured Obligations shall have been made under the
Subscription Agreement, this Agreement shall terminate, and the Purchaser shall
forthwith cause to be assigned, transferred and delivered, against receipt but
without any recourse, warranty or representation whatsoever, any remaining
Collateral and money received in respect thereof, to or on the order of
Debtor.  The Purchaser shall also execute and deliver to Debtor upon
such termination such Uniform Commercial Code termination statements,
certificates for terminating the Liens on the Motor Vehicles and such other
documentation as shall be reasonably requested by Debtor to effect the
termination and release of the Liens on the Collateral.

     

    4.13 Expenses.  Debtor
agrees to pay to the Purchaser all out-of-pocket expenses (including reasonable
expenses for legal services of every kind) of, or incident to, the enforcement
of any of the provisions 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    of this
Section 4, or performance by the Purchaser of any obligations of Debtor in
respect of the Collateral which Debtor has failed or refused to perform upon
reasonable notice, or any actual or attempted sale, or any exchange,
enforcement, collection, compromise or settlement in respect of any of the
Collateral, and for the care of the Collateral and defending or asserting rights
and claims of the Purchaser in respect thereof, by litigation or otherwise,
including expenses of insurance, and all such expenses shall be Secured
Obligations to the Purchaser secured under Section 3 hereof.

     

    4.14 Further
Assurances.  Debtor agrees that, from time to time upon the
written request of the Purchaser, Debtor will execute and deliver such further
documents and do such other acts and things as the Purchaser may reasonably
request in order fully to effect the purposes of this Agreement.

     

    4.15 Rights of Purchaser to Appoint
Receiver.   Without limiting, and in addition to, any
other rights, options and remedies Purchaser has under this Agreement, the Note,
the UCC, at law or in equity, or otherwise, upon the occurrence and continuation
of an Event of Default, Purchaser shall have the right to apply for and have
a receiver appointed with respect to Debtor by a court of competent
jurisdiction, its business or properties.  Debtor expressly agrees
that such a receiver will be able to manage, protect and preserve the Collateral
and continue the operation of the Business of Debtor to the extent necessary to
collect all revenues and profits thereof and to apply the same to the payment of
all expenses and other charges of such receivership, including the compensation
of the receiver, until a sale or other disposition of such Collateral shall be
finally made and consummated.  Debtor waives any right to require a
bond to be posted by or on behalf of any such receiver.

     

    Section
5. Miscellaneous.

     

    5.01 No
Waiver.  No failure on the part of the Purchaser or any of its
agents to exercise, and no course of dealing with respect to, and no delay in
exercising, any right, power or remedy hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise by the Purchaser or any of its
agents of any right, power or remedy hereunder preclude any other or further
exercise thereof or the exercise of any other right, power or
remedy.  The remedies herein are cumulative and are not exclusive of
any remedies provided by law.

     

    5.02 Governing Law; Venue;
Severability.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York without regard to
conflicts of laws principles that would result in the application of the
substantive laws of another jurisdiction, except to the extent that the
perfection of the security interest granted hereby in respect of any item of
Collateral may be governed by the law of another jurisdiction.  Any
legal action or proceeding against Debtor with respect to this Agreement may be
brought in the courts in the State of New York or of the United States for the
Southern District of New York, and, by execution and delivery of this Agreement,
Debtor hereby irrevocably accepts for itself and in respect of its property,
generally and unconditionally, the jurisdiction of the aforesaid
courts.  The parties executing this Agreement and other agreements
referred to herein or delivered in connection herewith agree to submit to the
exclusive jurisdiction of such courts and hereby irrevocably waive trial by
jury.  Debtor hereby irrevocably waives any objection which it may now
or hereafter have to the laying of venue of any of the aforesaid actions or
proceedings arising out of or in connection with this Agreement brought in the
aforesaid courts and hereby further irrevocably waives and agrees not to plead
or claim in any such court that any such action or proceeding brought in any
such court has been brought in an inconvenient forum.  If any
provision of this Agreement, or the application thereof to any person or
circumstance, is held invalid, such invalidity shall not affect any other
provisions which can be given effect without the invalid provision or
application, and to this end the provisions hereof shall be severable and the
remaining, valid provisions shall remain of full force and
effect.  Each party hereby irrevocably waives personal service of
process and consents to process being served in any suit, action or proceeding
in connection with this Agreement by mailing a copy thereof via registered or
certified mail or overnight delivery (with evidence of delivery) to such party
at the address in effect for notices to it under this 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Agreement
and agrees that such service shall constitute good and sufficient service of
process and notice thereof.  Nothing contained herein shall be deemed
to limit in any way any right to serve process in any other manner permitted by
law.

     

    5.03 Notices.  All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (a) personally served, (b) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (c)
delivered by a reputable overnight courier service with charges prepaid, or (d)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice.  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective upon hand delivery or
delivery by facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated below (if delivered on a
business day during normal business hours, or the first business day following
such delivery (if delivered other than on a business day during normal business
hours), (ii) on the first business day following the date deposited with an
overnight courier service with charges prepaid, or (iii) on the fifth business
day following the date of mailing pursuant to subpart (b) above, or upon actual
receipt of such mailing, whichever shall first occur.  The addresses
for such communications shall be:

     

    To
Debtor:                                        
    c/o Medis Technologies Ltd.

    805 Third Avenue

    New York, NY 10022

    Attn: Jose A. Mejia, CEO and
President

    Fax: (212) 935-9216

    

    With a copy by facsimile

    only
to:                                       
          Sonnenschein Nath &
Rosenthal LLP

    1221 Avenue of the
Americas

    New York, NY 10020

    Attn: Ira I. Roxland,
Esq.

    Fax: (212) 768-6800

    

    
      	
               
      

            	
              To
      Purchaser:

            	
              Iroquois
      Master Fund Ltd.

            

    

    
      	
               
      

            	
              641
      Lexington Ave., 26th Floor

            

    

    New York
NY 10022

    Attn:
Mitch Kulick, Esq., General Counsel

    Fax:
(212) 207-3452

    

    If to
Debtor or Lender,

    with a
copy by telecopier only to:

    

    Grushko
& Mittman, P.C.

    551 Fifth
Avenue, Suite 1601

    New York,
New York 10176

                                                                                             
      Fax: (212) 697-3575

     

    5.04 Waivers,
etc.  The terms of this Agreement may be waived, altered or
amended only by an instrument in writing duly executed by Debtor and the
Purchaser.  Any such amendment or waiver shall be binding upon
Purchaser and Debtor.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.05 Successors and
Assigns.  This Agreement shall be binding upon and inure to the
benefit of the respective successors and assigns of Debtor and Purchaser
(provided, however, that Debtor shall not assign or transfer its rights
hereunder without the prior written consent of the Purchaser).

     

    5.06 Counterparts/Execution.  This
Agreement may be executed in any number of counterparts and by the different
signatories hereto on separate counterparts, each of which, when so executed,
shall be deemed an original, but all such counterparts shall constitute but one
and the same instrument.  This Agreement may be executed by facsimile
signature and delivered by electronic transmission.

     

    5.07 Severability.  If
any provision hereof is invalid and unenforceable in any jurisdiction, then, to
the fullest extent permitted by law, (i) the other provisions hereof shall
remain in full force and effect in such jurisdiction and shall be liberally
construed in favor of the Purchasers in order to carry out the intentions of the
parties hereto as nearly as may be possible and (ii) the invalidity or
unenforceability of any provision hereof in any jurisdiction shall not affect
the validity or enforceability of such provision in any other
jurisdiction.

     

    

     

    [THIS
SPACE INTENTIONALLY LEFT BLANK]

     

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be
duly executed as of the day and year first above written.

     

     

    
    

     

    
      	“DEBTOR” 	 	“PURCHASER” 
	MEDIS TECHNOLOGIES
      LTD. 	 	IR OQUOIS
      MASTER FUND LTD. 
	a Delaware
      corporation 	 	 
	 	 	 
	By: /s/ Jose
      Meija                  
       	 	By: /s/ Joshua
      Silverman          
	 	 	 
	Its: CEO                                 
       	 	Its: Authorized
      Signatory          
	 	 	 
	 	 	 
	“DEBTOR” 	 	“DEBTOR” 
	MEDIS EL
      LTD. 	 	MORE ENERGY
      LTD. 
	an Israel
      corporation 	 	an Israel
      corporation 
	 	 	 
	By: /s/ Stephen
      Crea               
       	 	By: /s/ Stephen
      Crea                 
	 	 	 
	Its: CFO                                  
       	 	Its: CFO                                     
	 	 	 
	 	 	 

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    DISCLOSURE
ANNEXES

     

    Reference
is made to the Security Agreement (the “Agreement”), dated as
of September 16, 2009, by and among Medis Technologies Ltd., a Delaware
corporation (the “Company”), Medis El
Ltd., a corporation formed under the laws of the State of Israel (“Medis El”), More
Energy Ltd., a corporation formed under the laws of the State of Israel (“More”), and Iroquois
Master Fund Ltd. (“Investor”). All
capitalized terms used herein but not otherwise defined shall have the meanings
given to them in the Agreement.

     

    The
specific disclosures set forth in the following Disclosure Annexes (the “Annexes”) have been
organized to correspond to the Annex references in the Agreement to which the
disclosure may be most likely to relate, together with appropriate cross
references when disclosure is applicable to other Annexes of the
Agreement.

     

    Certain
matters set forth in the Annexes are included solely for informational purposes
for the convenience of the parties to the Agreement.  The inclusion of
any information in the Annexes shall not be deemed to be an admission or
acknowledgement, in and of itself, that such information (i) is required by the
terms of the Agreement to be disclosed, (ii) is material to the Company or (iii)
has had or would reasonably be expected to have a Material Adverse Effect (as
such term is defined in that certain Subscription Agreement, dated as of
September 16, 2009, by and between the Company and the
Investor).

     

    The
headings contained in these Annexes are for convenience of reference only and
shall not be deemed to modify or influence the interpretation of the information
contained in these Annexes or the Agreement.

     

    
 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
1

    Issuers

    

    
      	
              1.  

            	
              Medis,
      Inc., a Delaware corporation. 100% owned by the Company (Active
      Shell).

            

    

     

    
      	
              2.  

            	
              Medis
      El Ltd., an Israeli corporation. 100% owned by Medis,
  Inc.

            

    

     

    
      	
              3.  

            	
              More
      Energy Ltd., an Israeli corporation. 7% owned by the Company (remaining
      93% owned by Medis El Ltd.).

            

    

     

    
      	
              4.  

            	
              Cell
      Kinetics Ltd., an Israeli corporation. 82.5% owned by Medis El
      Ltd.

            

    

     

    
      	
              5.  

            	
              Toroidal
      Products Inc., a Delaware corporation. 100% owned by the Company (dormant
      and does not hold any assets).

            

    

     

     

     

    
 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
2

    Excluded
Collateral

    

    
      	
              1.  

            	
              The
      assets of Debtor which secure the Permitted
  Indebtedness.

            

    

     

    
      	
              2.  

            	
              The
      assets of More listed on Schedule A
      attached hereto, which assets are located at More’s production facility at
      Celestica, Parkmore Business Park, Ballybrit, Galway, Ireland and which
      are comprised primarily of manufacturing
  equipment.

            

    

     

    
      	
              3.  

            	
              The
      assets of More listed on Schedule B
      attached hereto, which assets were manufactured by two of More’s vendors,
      KRAMSKI GmbH (“Kramski”) and
      A.J Englander Ltd. (“Englander”), to
      whom More has substantial payment obligations.  More has entered
      into settlement agreements with each of Kramski and Englander, pursuant to
      which More is contractually obligated to, among other things, return the
      assets listed on Schedule B
      attached hereto to its respective manufacturer for which More will receive
      a substantial credit against the amounts owed to such
      manufacturer.

            

    

     

    
      	
              4.  

            	
              The
      funds in More’s account with Bank Leumi.  All funds in this
      account are subject to one or more judgment liens or are otherwise
      restricted as funds reserved against outstanding letters of
      credit.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      SCHEDULE A

      
        

        More
Energy Ltd. Assets

        

        
          
            
              	
                      Equipment
      Description

                    	
                      Brand

                    	
                      Model
      Number/Key Specifications

                    
	
                      Material
      drier

                    	
                      Branson

                    	
                      M203
      with enlarged sound enclosure and a 3 position index table. Parts presence
      detection system

                    
	
                      Vibration
      Friction Welder

                    	
                      Branson

                    	
                      M203
      with enlarged sound enclosure and a 3 position index table. Parts presence
      detection system

                    
	
                      Vibration
      Friction Welder

                    	
                      Branson

                    	
                      M203
      with enlarged sound enclosure and a 3 position index table. Parts presence
      detection system

                    
	
                      Vibration
      Friction Welder

                    	
                      Branson

                    	
                      M203
      with enlarged sound enclosure and a 3 position index table. Parts presence
      detection system

                    
	
                      Vibration
      Friction Welder

                    	
                      Branson

                    	
                      M203
      with enlarged sound enclosure and a 3 position index table. Parts presence
      detection system

                    
	
                      Vibration
      Friction Welder

                    	
                      Branson

                    	
                      M203
      with enlarged sound enclosure and a 3 position index table. Parts presence
      detection system

                    
	
                      Vibration
      Friction Welder

                    	
                      Branson

                    	
                      M203
      with enlarged sound enclosure and a 3 position index table. Parts presence
      detection system

                    
	
                      Magazine
      type parts feeder

                    	
                      Komax

                    	
                      Magazine
      type parts feeder with twin index table (20 position each) parts presence
      and orientation detection system, with Allen Bradley Versa View CE 1250H
      plc controls

                    
	
                      Magazine
      type parts feeder

                    	
                      Komax

                    	
                      Magazine
      type parts feeder with twin index table (20 position each) parts presence
      and orientation detection system, with Allen Bradley Versa View CE 1250H
      plc controls

                    
	
                      Magazine
      type parts feeder

                    	
                      Komax

                    	
                      Magazine
      type parts feeder with twin index table (20 position each) parts presence
      and orientation detection system, with Allen Bradley Versa View CE 1250H
      plc controls

                    
	
                      Magazine
      type parts feeder

                    	
                      Komax

                    	
                      Magazine
      type parts feeder with twin index table (20 position each) parts presence
      and orientation detection system, with Allen Bradley Versa View CE 1250H
      plc controls

                    
	
                      Automated
      assemblies leak tester

                    	
                      Komax

                    	
                      32
      positions index table automated leak test units, Simultaneous load, test
      and off load of 8 parts/cycle, with Allen Bradley Versa View CE 1250H plc
      controls

                    
	
                      Automated
      assemblies leak tester

                    	
                      Komax

                    	
                      32
      positions index table automated leak test units, Simultaneous load, test
      and off load of 8 parts/cycle, with Allen Bradley Versa View CE 1250H plc
      controls

                    
	
                      Automated
      assemblies leak tester

                    	
                      Komax

                    	
                      32
      positions index table automated leak test units, Simultaneous load, test
      and off load of 8 parts/cycle, with Allen Bradley Versa View CE 1250H plc
      controls

                    

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

              
                
                  
                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

               

              	
                      Automated
      assemblies leak tester

                    	
                      Komax

                    	
                      32
      positions index table automated leak test units, Simultaneous load, test
      and off load of 8 parts/cycle, with Allen Bradley Versa View CE 1250H plc
      controls

                    
	
                      Industrilized
      leak testing system

                    	
                      Sciemetric

                    	
                      Sciemetric
      test & Analysis system 332-16

                    
	
                      Industrilized
      leak testing system

                    	
                      Sciemetric

                    	
                      Sciemetric
      test & Analysis system 332-16

                    
	
                      Industrilized
      leak testing system

                    	
                      Sciemetric

                    	
                      Sciemetric
      test & Analysis system 332-16

                    
	
                      Industrilized
      leak testing system

                    	
                      Sciemetric

                    	
                      Sciemetric
      test & Analysis system 332-16

                    
	
                      Industrilized
      leak testing system

                    	
                      Sciemetric

                    	
                      Sciemetric
      test & Analysis system 332-16

                    
	
                      Industrilized
      leak testing system

                    	
                      Sciemetric

                    	
                      Sciemetric
      test & Analysis system 332-16

                    
	
                      Industrilized
      leak testing system

                    	
                      Sciemetric

                    	
                      Sciemetric
      test & Analysis system 332-16

                    
	
                      Industrilized
      leak testing system

                    	
                      Sciemetric

                    	
                      Sciemetric
      test & Analysis system 332-16

                    
	
                      Industrilized
      leak testing system

                    	
                      Sciemetric

                    	
                      Sciemetric
      test & Analysis system 332-16

                    
	
                      Industrilized
      leak testing system

                    	
                      Sciemetric

                    	
                      Sciemetric
      test & Analysis system 332-16

                    
	
                      Ultrasonic
      welder

                    	
                      Branson

                    	
                      20
      khz welder controller 2000dt+ 20 khz welder actuators AED
    AOD

                    
	
                      Ultrasonic
      welder

                    	
                      Branson

                    	
                      20
      khz welder controller 2000dt+ 20 khz welder actuators AED
    AOD

                    
	
                      Ultrasonic
      welder

                    	
                      Branson

                    	
                      20
      khz welder controller 2000dt+ 20 khz welder actuators AED
    AOD

                    
	
                      Ultrasonic
      welder

                    	
                      Branson

                    	
                      20
      khz welder controller 2000dt+ 20 khz welder actuators AED
    AOD

                    
	
                      Ultrasonic
      welder

                    	
                      Branson

                    	
                      20
      khz welder controller 2000dt+ 20 khz welder actuators AED
    AOD

                    
	
                      Ultrasonic
      welder

                    	
                      Branson

                    	
                      20
      khz welder controller 2000dt+ 20 khz welder actuators AED
    AOD

                    
	
                      Ultrasonic
      welder

                    	
                      Branson

                    	
                      20
      khz welder controller 2000dt+ 20 khz welder actuators AED
    AOD

                    
	
                      Ultrasonic
      welder

                    	
                      Branson

                    	
                      40
      khz welder controller 2000dt+ 40 khz welder actuators AODM
    AOD

                    
	
                      Ultrasonic
      welder

                    	
                      Branson

                    	
                      40
      khz welder controller 2000dt+ 40 khz welder actuators AODM
    AOD

                    

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

              
                
                  
                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

               

              	
                      Ultrasonic
      welder

                    	
                      Branson

                    	
                      40
      khz welder controller 2000dt+ 40 khz welder actuators AODM
    AOD

                    
	
                      Ultrasonic
      welder

                    	
                      Branson

                    	
                      40
      khz welder controller 2000dt+ 40 khz welder actuators AODM
    AOD

                    
	
                      Ultrasonic
      welder

                    	
                      Branson

                    	
                      40
      khz welder controller 2000dt+ 40 khz welder actuators AODM
    AOD

                    
	
                      Laser
      welding system

                    	
                      Branson

                    	
                      Laser
      controller+ 3 laser banks+  actuators aedX

                    
	
                      Laser
      welding system

                    	
                      Branson

                    	
                      Laser
      controller+ 3 laser banks+  actuators aedX

                    
	
                      Laser
      welding system

                    	
                      Branson

                    	
                      Laser
      controller+ 3 laser banks+  actuators aedX

                    
	
                      Laser
      welding system

                    	
                      Branson

                    	
                      Laser
      controller+ 3 laser banks+  actuators aedX

                    
	
                      Fully
      automated parts assembly machine

                    	
                      Komax

                    	
                      16
      station Rotary Transfer Machine on standard Ismica base ) with A-B Versa
      View CE 1250-H PLC controls

                    
	
                      LCR
      Meter

                    	
                      Chroma

                    	
                      11021

                    
	
                      LCR
      Meter

                    	
                      Chroma

                    	
                      11021

                    
	
                      Electropress

                    	
                      Janone

                    	
                       JPU
      -204

                    
	
                      Electropress

                    	
                      Janone

                    	
                       JPU
      -204

                    
	
                      Vision
      System and screen

                    	
                      Cognex

                    	 
      
	
                      4
      axes scara robot

                    	
                      Janone

                    	
                      JSC
      350 FC

                    
	
                      4
      axes scara robot

                    	
                      Janone

                    	
                      JSC
      350 FC

                    
	
                      4
      axes scara robot

                    	
                      Janone

                    	
                      JSC
      350 FC

                    
	
                      4
      axes scara robot

                    	
                      Janone

                    	
                      JSC
      350 FC

                    
	
                      4
      axes scara robot

                    	
                      Janone

                    	
                      JSC
      350 FC

                    
	
                      4
      axes scara robot

                    	
                      Janone

                    	
                      JSC
      350 FC

                    
	
                      4
      axes scara robot

                    	
                      Janone

                    	
                      JSC
      350 FC

                    
	
                      4
      axes scara robot

                    	
                      Janone

                    	
                      JSC
      350 FC

                    
	
                      4
      axes scara robot

                    	
                      Janone

                    	
                      JSC
      350 FC

                    
	
                      4
      axes scara robot

                    	
                      Janone

                    	
                      JSC
      350 FC

                    
	
                      4
      axes scara robot

                    	
                      Janone

                    	
                      JSC
      350 FC

                    
	
                      4
      axes scara robot

                    	
                      Janone

                    	
                      JSC
      350 FC

                    

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

              
                
                  
                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

               

              	
                      4
      axes scara robot

                    	
                      Janone

                    	
                      JSC
      350 FC

                    
	
                      Parts
      feeding unit

                    	
                      Komax

                    	
                      Fill
      Hopper with vertical conveyor and Cermac ISM -113

                    
	
                      Fully
      automated parts assembly machine

                    	
                      Komax

                    	
                      16
      station Rotary Transfer Machine on standard Ismica base ) with A-B Versa
      View CE 1250-H PLC controls

                    
	
                      Parts
      accumulator

                    	
                      Komax

                    	
                      Automated
      LIFO parts accumulator with tray lift and cartesian picking
      arm

                    
	
                      Parts
      accumulator

                    	
                      Komax

                    	
                      Automated
      LIFO parts accumulator with tray lift and cartesian picking
      arm

                    
	
                      4
      axes scara robot

                    	
                      Janone

                    	
                      JS
      250

                    
	
                      4
      axes scara robot

                    	
                      Janone

                    	
                      JS
      250

                    
	
                      Fully
      automated parts assembly machine

                    	
                      Komax

                    	
                      24
      station Rotary Transfer Machine on standard Ismica base ) with A-B Versa
      View CE 1250-H PLC controls

                    
	
                      Automated
      Soldering units

                    	
                      Sepatech

                    	
                      Wave
      soldering unit

                    
	
                      Visual
      inspection system

                    	
                      Cognex

                    	
                      Inspecting
      soldering quality, 4 cameras+ process unit with integrated touch
      screen

                    
	
                      Fully
      automated parts assembly machine

                    	
                      Komax

                    	
                      42
      station linear Transfer Machine on standard Ismica base with A-B Versa
      View CE 1250-H PLC controls

                    
	
                      Servo
      press

                    	
                      Janone

                    	
                      JPU-504
      electric press station,

                    
	
                      Visual
      inspection system

                    	
                      Cognex

                    	
                      Inspection
      of label placement quality

                    
	
                      Labeling
      machine

                    	 
      	
                      Labelling
      Machine

                    
	
                      Fully
      automated parts assembly machine

                    	
                      Komax

                    	
                      20
      station Rotary Transfer Machine on standard Ismica base with A-B Versa
      View CE 1250-H PLC controls

                    
	
                      Laser
      engraving system

                    	
                      Altech

                    	
                      DN50A

                    
	
                      Tray
      Handler and parts picker

                    	
                      RoboMat

                    	 
      
	
                      Vibratory
      bowl feeder

                    	
                      Socaut

                    	
                      Bowl
      feeder with sound enclousure and vertical hopper

                    
	
                      Vibratory
      bowl feeder

                    	
                      Socaut

                    	
                      Bowl
      feeder with sound enclousure and vertical hopper

                    
	
                      Vibratory
      bowl feeder

                    	
                      Socaut

                    	
                      Bowl
      feeder with sound enclousure and vertical hopper

                    
	
                      Vibratory
      bowl feeder

                    	
                      Socaut

                    	
                      Bowl
      feeder

                    
	
                      Fully
      automated parts assembly machine

                    	
                      Komax

                    	
                      20
      station Rotary Transfer Machine on standard Ismica base with A-B Versa
      View CE 1250-H PLC controls

                    
	
                      Vibratory
      bowl feeder

                    	
                      Socaut

                    	
                      Mini
      vibrator bowl feeder

                    
	
                      Vibratory
      bowl feeder

                    	
                      Socaut

                    	
                      Mini
      vibrator bowl feeder

                    

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

              
                
                  
                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

               

              	
                      Vibratory
      bowl feeder

                    	
                      Socaut

                    	
                      Mini
      vibrator bowl feeder

                    
	
                      Vibratory
      bowl feeder

                    	
                      Socaut

                    	
                      Bowl
      feeder with sound enclousure and vertical hopper

                    
	
                      Ink
      jet printer

                    	
                      Imaje

                    	
                       9040
      Ink Jet Printer for white ink

                    
	
                      Fully
      automated parts assembly machine

                    	
                      Komax

                    	
                      42
      station linear Transfer Machine on standard Ismica base with A-B Versa
      View CE 1250-H PLC controls

                    
	
                      Vibratory
      bowl feeder

                    	
                      Socaut

                    	
                      Bowl
      feeder

                    
	
                      Vibratory
      bowl feeder

                    	
                      Socaut

                    	
                      Bowl
      feeder

                    
	
                      Roll
      to Roll Vacuum Thermoforming Machine

                    	
                      Hamer

                    	
                      FV-35

                    
	
                      Ink
      jet printer

                    	
                      Imaje

                    	
                       9040
      Ink Jet Printer for white ink

                    
	
                      Fully
      automated 3 solutions filling machine

                    	
                      Komax

                    	
                      16
      station Rotary Transfer Machine on standard Ismica base ) with A-B Versa
      View CE 1250-H PLC controls

                    
	
                      DI
      Water Plant

                    	
                      Winter
      Engineering

                    	 
      
	
                      Non
      contact 3 axis Coordinate Measuring Machine

                    	
                      Vertex

                    	
                      110

                    
	
                      Shaker

                    	
                      Bibby

                    	
                      Sterilin

                    
	
                      Tensile
      Tester

                    	
                      Cometech

                    	 
      
	
                      Multimeter

                    	
                      Fluke

                    	
                      8845A

                    
	
                      Single
      Pan Balance,220grammes x 0.1 mg

                    	
                      Radway

                    	
                      X220

                    

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

              
                
                  
                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

               

              	
                      Environmental
      Chamber

                    	
                      Welltech

                    	
                      YTH
      63

                    
	
                      Viscometer

                    	
                      Broyles

                    	 
      
	
                      Drum
      Tip Section with KBH 4 and bin tipper VH-4

                    	
                      Flexicon

                    	
                      Pharmax
      NH4

                    
	
                      1,000
      litre Mixing Vessel,stainless steel, jacketted

                    	
                      S
      & A Pharmax

                    	 
      
	
                      1,000
      litre Mixing Vessel,stainless steel , jacketted

                    	
                      S
      & A Pharmax

                    	 
      
	
                      KOH
      Storage Tank

                    	
                      S
      & H Pharmax

                    	 
      
	
                      Mixing
      vessel

                    	
                      S
      & H Pharmax

                    	
                      1,000
      litre Mixing Vessel, stainless steel,with 30kw Light Shear Mixer; (2) Slow
      speed Agitators; Thermal oil cooled Jacket; Volkmann Vacuum; Operator
      Platform and stairs

                    
	
                      1,000
      litre Storage Vessels each with slow speed stirrer

                    	
                      S
      & H Pharmax

                    	
                      FDM-1000

                    
	
                      1,000
      litre Storage Vessels each with slow speed stirrer

                    	
                      S
      & H Pharmax

                    	
                      FDM-1000

                    
	
                      1,000
      litre Storage Vessels each with slow speed stirrer

                    	
                      S
      & H Pharmax

                    	
                      FDM-1000

                    
	
                      500
      litre Transfer Vessels each with pump

                    	
                      S
      & H Pharmax

                    	
                      500
      litre Transfer Vessels each with pump

                    
	
                      500
      litre Transfer Vessels each with pump

                    	
                      S
      & H Pharmax

                    	
                      500
      litre Transfer Vessels each with pump

                    
	
                      Storage
      tank

                    	 
      	
                      Waste
      Storage Tank, stainless steel,with diagphram

                    
	
                      Chiller
      Unit

                    	
                      Carrier

                    	
                      30RA-120-BO650-PEE-407C

                    
	
                      Heat
      Exchanger

                    	
                      S
      & H Pharmax

                    	
                      Heat
      Exchanger

                    

            

          

        

        

        

         

        
          
             

          

          
            6

            
              

            

          

          
             

          

        

         

         

         

         

         

         

         

         

         

         

         

         

         

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        
          SCHEDULE B

        

         

        
          
            
              	 
      	
                      MEDIS
      TECHNOLOGIES LTD.

                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                      Valuation
      of Certain Personal Property Assets for More Energy Ltd., Medis El Ltd.,
      and Cell Kinetics Ltd.

                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                      Valuation
      Date

                    	
                      12/31/2008

                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                      Asset
      Detail

                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                      client

                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                      Original

                    	
                      Original

                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                      client

                    	 
      	
                      Placed
      In

                    	
                      Placed
      In

                    	
                      Original

                    	
                      Net
      Book

                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                      M&S

                    	 
      	
                      M&S

                    	 
      	
                      Property

                    	
                      Line

                    	 
      	 
      	
                      Group

                    	
                      M&S

                    	
                      M&S
      Class

                    	 
      	 
      	 
      	
                      Purchase

                    	
                      Purchase

                    	
                      Service

                    	
                      Service

                    	
                      Cost

                    	
                      Value

                    	
                      OLV

                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                      M&S
      Class Total

                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                      identification
      no.

                    	
                      Order

                    	
                      Location

                    	
                      Location

                    	
                      Group

                    	
                      Number

                    	
                      Number

                    	
                      id.
      No.

                    	
                      Place

                    	
                      Class

                    	
                      Class

                    	
                      Description

                    	
                      Qty.

                    	
                      Asset
      Decription

                    	
                      Asset
      Description

                    	
                      Date

                    	
                      Date

                    	
                      Date

                    	
                      Date

                    	
                      ($
      USD)

                    	
                      ($
      USD)

                    	
                      (USD)

                    	
                      Service
      Date

                    	
                      depreciation
      percentage

                    	
                      12/31/2008

                    	
                      original
      useful life

                    	
                      remaining
      usefull life

                    	
                      Yearly
      dep.

                    	
                      dep
      q1

                    	
                      dep
      q2

                    	
                      Net

                    
	
                      24381

                    	
                      3182

                    	
                      More
      Energy Ltd.

                    	
                      1

                    	
                      79

                    	
                      2438

                    	
                      1

                    	
                      24381

                    	
                      0
      -

                    	
                      79
      - KRAMSKI.

                    	
                      201

                    	
                      Storage
      Battery Manufacturing

                    	
                      1

                    	
                      Current
      collector samples for conductivity test

                    	
                      Current
      collector samples for conductivity test

                    	
                      30/05/08

                    	
                      05/30/08

                    	
                      01/01/09

                    	
                      01/01/09

                    	
                       $          15,016

                    	
                       $              15,016

                    	
                       $             9,460

                    	
                      01/01/09

                    	
                      15

                    	
                      -0.002739726

                    	
                      6.6667

                    	
                      6.6694

                    	
                      1418.417

                    	
                      354.60427

                    	
                      354.6042722

                    	
                       $          8,751

                    
	
                      18308

                    	
                      3179

                    	
                      More
      Energy Ltd.

                    	
                      1

                    	
                      79

                    	
                      1830

                    	
                      8

                    	
                      18308

                    	
                      0
      -

                    	
                      79
      - KRAMSKI.

                    	
                      207

                    	
                      Tooling

                    	
                      1

                    	
                      TOOLS
      FOR SAMPLING PHASE

                    	
                      TOOLS
      FOR SAMPLING PHASE

                    	
                      04/06/07

                    	
                      06/04/07

                    	
                      01/01/09

                    	
                      01/01/09

                    	
                       $          51,893

                    	
                       $              51,893

                    	
                       $           32,690

                    	
                      01/01/09

                    	
                      15

                    	
                      -0.002739726

                    	
                      6.6667

                    	
                      6.6694

                    	
                      4901.486

                    	
                      1225.3714

                    	
                      1225.371423

                    	
                       $        30,239

                    
	
                      18301

                    	
                      3172

                    	
                      More
      Energy Ltd.

                    	
                      1

                    	
                      79

                    	
                      1830

                    	
                      1

                    	
                      18301

                    	
                      0
      -

                    	
                      79
      - KRAMSKI.

                    	
                      207

                    	
                      Tooling

                    	
                      1

                    	
                      TOOLS
      FOR SAMPLING PHASE

                    	
                      TOOLS
      FOR SAMPLING PHASE

                    	
                      01/04/07

                    	
                      04/01/07

                    	
                      01/01/09

                    	
                      01/01/09

                    	
                       $          21,977

                    	
                       $              21,977

                    	
                       $           13,850

                    	
                      01/01/09

                    	
                      15

                    	
                      -0.002739726

                    	
                      6.6667

                    	
                      6.6694

                    	
                      2076.647

                    	
                      519.16165

                    	
                      519.1616459

                    	
                       $        12,812

                    
	
                      18307

                    	
                      3176

                    	
                      More
      Energy Ltd.

                    	
                      1

                    	
                      79

                    	
                      1830

                    	
                      7

                    	
                      18307

                    	
                      0
      -

                    	
                      79
      - KRAMSKI.

                    	
                      207

                    	
                      Tooling

                    	
                      1

                    	
                      TOOLS
      FOR SAMPLING PHASE

                    	
                      TOOLS
      FOR SAMPLING PHASE

                    	
                      04/06/07

                    	
                      06/04/07

                    	
                      01/01/09

                    	
                      01/01/09

                    	
                       $            7,548

                    	
                       $                7,548

                    	
                       $             4,760

                    	
                      01/01/09

                    	
                      15

                    	
                      -0.002739726

                    	
                      6.6667

                    	
                      6.6694

                    	
                      713.7067

                    	
                      178.42667

                    	
                      178.426674

                    	
                       $          4,403

                    
	
                      18305

                    	
                      3175

                    	
                      More
      Energy Ltd.

                    	
                      1

                    	
                      79

                    	
                      1830

                    	
                      5

                    	
                      18305

                    	
                      0
      -

                    	
                      79
      - KRAMSKI.

                    	
                      207

                    	
                      Tooling

                    	
                      1

                    	
                      TOOLS
      FOR SAMPLING PHASE

                    	
                      TOOLS
      FOR SAMPLING PHASE

                    	
                      04/06/07

                    	
                      06/04/07

                    	
                      01/01/09

                    	
                      01/01/09

                    	
                       $            6,605

                    	
                       $                6,605

                    	
                       $             4,170

                    	
                      01/01/09

                    	
                      15

                    	
                      -0.002739726

                    	
                      6.6667

                    	
                      6.6694

                    	
                      625.2431

                    	
                      156.31076

                    	
                      156.3107627

                    	
                       $          3,857

                    
	
                      18306

                    	
                      3178

                    	
                      More
      Energy Ltd.

                    	
                      1

                    	
                      79

                    	
                      1830

                    	
                      6

                    	
                      18306

                    	
                      0
      -

                    	
                      79
      - KRAMSKI.

                    	
                      207

                    	
                      Tooling

                    	
                      1

                    	
                      TOOLS
      FOR SAMPLING PHASE

                    	
                      TOOLS
      FOR SAMPLING PHASE

                    	
                      04/06/07

                    	
                      06/04/07

                    	
                      01/01/09

                    	
                      01/01/09

                    	
                       $            6,605

                    	
                       $                6,605

                    	
                       $             4,170

                    	
                      01/01/09

                    	
                      15

                    	
                      -0.002739726

                    	
                      6.6667

                    	
                      6.6694

                    	
                      625.2431

                    	
                      156.31076

                    	
                      156.3107627

                    	
                       $          3,857

                    
	
                      18302

                    	
                      3173

                    	
                      More
      Energy Ltd.

                    	
                      1

                    	
                      79

                    	
                      1830

                    	
                      2

                    	
                      18302

                    	
                      0
      -

                    	
                      79
      - KRAMSKI.

                    	
                      207

                    	
                      Tooling

                    	
                      1

                    	
                      TOOLS
      FOR SAMPLING PHASE

                    	
                      TOOLS
      FOR SAMPLING PHASE

                    	
                      01/04/07

                    	
                      04/01/07

                    	
                      01/01/09

                    	
                      01/01/09

                    	
                       $            3,197

                    	
                       $                3,197

                    	
                       $             2,020

                    	
                      01/01/09

                    	
                      15

                    	
                      -0.002739726

                    	
                      6.6667

                    	
                      6.6694

                    	
                      302.8755

                    	
                      75.718883

                    	
                      75.71888265

                    	
                       $          1,869

                    
	
                      18303

                    	
                      3174

                    	
                      More
      Energy Ltd.

                    	
                      1

                    	
                      79

                    	
                      1830

                    	
                      3

                    	
                      18303

                    	
                      0
      -

                    	
                      79
      - KRAMSKI.

                    	
                      207

                    	
                      Tooling

                    	
                      1

                    	
                      TOOLS
      FOR SAMPLING PHASE

                    	
                      TOOLS
      FOR SAMPLING PHASE

                    	
                      01/04/07

                    	
                      04/01/07

                    	
                      01/01/09

                    	
                      01/01/09

                    	
                       $            2,797

                    	
                       $                2,797

                    	
                       $             1,760

                    	
                      01/01/09

                    	
                      15

                    	
                      -0.002739726

                    	
                      6.6667

                    	
                      6.6694

                    	
                      263.8916

                    	
                      65.972888

                    	
                      65.97288785

                    	
                       $          1,628

                    
	
                      18304

                    	
                      3177

                    	
                      More
      Energy Ltd.

                    	
                      1

                    	
                      79

                    	
                      1830

                    	
                      4

                    	
                      18304

                    	
                      0
      -

                    	
                      79
      - KRAMSKI.

                    	
                      207

                    	
                      Tooling

                    	
                      1

                    	
                      TOOLS
      FOR SAMPLING PHASE

                    	
                      TOOLS
      FOR SAMPLING PHASE

                    	
                      01/04/07

                    	
                      04/01/07

                    	
                      01/01/09

                    	
                      01/01/09

                    	
                       $            2,797

                    	
                       $                2,797

                    	
                       $             1,760

                    	
                      01/01/09

                    	
                      15

                    	
                      -0.002739726

                    	
                      6.6667

                    	
                      6.6694

                    	
                      263.8916

                    	
                      65.972888

                    	
                      65.97288785

                    	
                       $          1,628

                    
	
                      22491

                    	
                      3188

                    	
                      More
      Energy Ltd.

                    	
                      1

                    	
                      79

                    	
                      2249

                    	
                      1

                    	
                      22491

                    	
                      37
      - PS THIRD LINE KRAMSKI

                    	
                      79
      - KRAMSKI.

                    	
                      171

                    	
                      Machinery
      & Equipment

                    	
                      1

                    	
                      Machine-Vertical
      machine for Cathode OM

                    	
                      Machine-Vertical
      machine for Cathode OM

                    	
                      01/10/07

                    	
                      10/01/07

                    	
                      01/01/09

                    	
                      01/01/09

                    	
                       $        216,605

                    	
                       $            216,605

                    	
                       $         136,470

                    	
                      01/01/09

                    	
                      8

                    	
                      -0.002739726

                    	
                      12.5

                    	
                      12.503

                    	
                      10915.21

                    	
                      2728.8019

                    	
                      2728.801906

                    	
                       $     131,012

                    
	
                      22501

                    	
                      3189

                    	
                      More
      Energy Ltd.

                    	
                      1

                    	
                      79

                    	
                      2250

                    	
                      1

                    	
                      22501

                    	
                      37
      - PS THIRD LINE KRAMSKI

                    	
                      79
      - KRAMSKI.

                    	
                      171

                    	
                      Machinery
      & Equipment

                    	
                      1

                    	
                      Machine-Vertical
      machine for Anode OM

                    	
                      Machine-Vertical
      machine for Anode OM

                    	
                      01/10/07

                    	
                      10/01/07

                    	
                      01/01/09

                    	
                      01/01/09

                    	
                       $        216,605

                    	
                       $            216,605

                    	
                       $         136,470

                    	
                      01/01/09

                    	
                      8

                    	
                      -0.002739726

                    	
                      12.5

                    	
                      12.503

                    	
                      10915.21

                    	
                      2728.8019

                    	
                      2728.801906

                    	
                       $     131,012

                    
	
                      23821

                    	
                      3196

                    	
                      More
      Energy Ltd.

                    	
                      1

                    	
                      79

                    	
                      2382

                    	
                      1

                    	
                      23821

                    	
                      37
      - PS THIRD LINE KRAMSKI

                    	
                      79
      - KRAMSKI.

                    	
                      171

                    	
                      Machinery
      & Equipment

                    	
                      1

                    	
                      INJEC
      MACHINE ENG VC 200/80

                    	
                      INJEC
      MACHINE ENG VC 200/80

                    	
                      26/02/08

                    	
                      02/26/08

                    	
                      01/01/09

                    	
                      01/01/09

                    	
                       $        204,913

                    	
                       $            204,913

                    	
                       $         129,090

                    	
                      01/01/09

                    	
                      20

                    	
                      -0.002739726

                    	
                      5

                    	
                      5.0027

                    	
                      25803.86

                    	
                      6450.9652

                    	
                      6450.965225

                    	
                       $     116,188

                    
	
                      24181

                    	
                      3197

                    	
                      More
      Energy Ltd.

                    	
                      1

                    	
                      79

                    	
                      2418

                    	
                      1

                    	
                      24181

                    	
                      37
      - PS THIRD LINE KRAMSKI

                    	
                      79
      - KRAMSKI.

                    	
                      206

                    	
                      Plastic
      Machinery

                    	
                      1

                    	
                      Injection
      molding machines shipment to kramski

                    	
                      Injection
      molding machines shipment to kramski

                    	
                      05/03/08

                    	
                      03/05/08

                    	
                      01/01/09

                    	
                      01/01/09

                    	
                       $          18,657

                    	
                       $              18,657

                    	
                       $           11,750

                    	
                      01/01/09

                    	
                      20

                    	
                      -0.002739726

                    	
                      5

                    	
                      5.0027

                    	
                      2348.713

                    	
                      587.17826

                    	
                      587.1782585

                    	
                       $        10,576

                    
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                      Grand
      Total

                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                               457,833

                    

            

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

             

            
              
                	 
      	
                        MEDIS
      TECHNOLOGIES LTD.

                      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                        Valuation
      of Certain Personal Property Assets for More Energy Ltd.

                      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                        Valuation
      Date

                      	
                        12/31/2008

                      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                        Asset
      Detail

                      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                        client

                      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                        Original

                      	
                        Original

                      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                        client

                      	 
      	
                        Placed
      In

                      	
                        Placed
      In

                      	
                        Original

                      	
                        Net
      Book

                      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                        M&S

                      	 
      	
                        M&S

                      	 
      	
                        Property

                      	
                        Line

                      	 
      	 
      	
                        Group

                      	
                        M&S

                      	
                        M&S
      Class

                      	 
      	 
      	 
      	
                        Purchase

                      	
                        Purchase

                      	
                        Service

                      	
                        Service

                      	
                        Cost

                      	
                        Value

                      	
                        OLV

                      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                        M&S
      Class Total

                      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                        identification
      no.

                      	
                        Order

                      	
                        Location

                      	
                        Location

                      	
                        Group

                      	
                        Number

                      	
                        Number

                      	
                        id.
      No.

                      	
                        Place

                      	
                        Class

                      	
                        Class

                      	
                        Description

                      	
                        Qty.

                      	
                        Asset
      Decription

                      	
                        Asset
      Description

                      	
                        Date

                      	
                        Date

                      	
                        Date

                      	
                        Date

                      	
                        ($
      USD)

                      	
                        ($
      USD)

                      	
                        (USD)

                      	
                        Service
      Date

                      	
                        depreciation
      percentage

                      	
                        12/31/2008

                      	
                        original
      useful life

                      	
                        remaining
      usefull life

                      	
                        Yearly
      dep.

                      	
                        dep
      q1

                      	
                        dep
      q2

                      	
                        Net

                      
	
                        22053

                      	
                        2447

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2205

                      	
                        3

                      	
                        22053

                      	
                        32
      - Anode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        מ.
      רובוטית לפריקה וטעינת(מערכת אוטומציה)

                      	
                        Robotic
      system to unloading and loading(automation system)

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $        277,920

                      	
                         $            217,704

                      	
                         $         183,880

                      	
                        11/01/07

                      	
                        20

                      	
                        1.167123288

                      	
                        5

                      	
                        3.8329

                      	
                        47974.41

                      	
                        11993.603

                      	
                        11993.60257

                      	
                         $     159,893

                      
	
                        220510

                      	
                        2440

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2205

                      	
                        10

                      	
                        220510

                      	
                        32
      - Anode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        תוספת
      מערכת החתמת לייזר 2D

                      	
                        Additional
      laser sealing system 2D

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $        191,800

                      	
                         $            147,047

                      	
                         $         126,900

                      	
                        11/01/07

                      	
                        20

                      	
                        1.167123288

                      	
                        5

                      	
                        3.8329

                      	
                        33108.29

                      	
                        8277.0729

                      	
                        8277.072909

                      	
                         $     110,346

                      
	
                        22057

                      	
                        2441

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2205

                      	
                        7

                      	
                        22057

                      	
                        32
      - Anode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        מערכת
      אוטומטית להרכבת אנודה

                      	
                        Automatic
      system to assembly Anode

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $        147,000

                      	
                         $            112,700

                      	
                         $           97,260

                      	
                        11/01/07

                      	
                        20

                      	
                        1.167123288

                      	
                        5

                      	
                        3.8329

                      	
                        25375.2

                      	
                        6343.7991

                      	
                        6343.799142

                      	
                         $        84,572

                      
	
                        22054

                      	
                        2448

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2205

                      	
                        4

                      	
                        22054

                      	
                        32
      - Anode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        ראשי
      חיתוך חוט

                      	
                        Wire
      cutting heads

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $          84,789

                      	
                         $              66,418

                      	
                         $           56,100

                      	
                        11/01/07

                      	
                        20

                      	
                        1.167123288

                      	
                        5

                      	
                        3.8329

                      	
                        14636.53

                      	
                        3659.1315

                      	
                        3659.131523

                      	
                         $        48,782

                      
	
                        22051

                      	
                        2445

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2205

                      	
                        1

                      	
                        22051

                      	
                        32
      - Anode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        מכבש
      הידראולי יעודי

                      	
                        Hydraulic
      press to a mission

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $          47,105

                      	
                         $              39,593

                      	
                         $           31,170

                      	
                        11/01/07

                      	
                        14

                      	
                        1.167123288

                      	
                        7.1429

                      	
                        5.9757

                      	
                        5216.096

                      	
                        1304.0239

                      	
                        1304.023939

                      	
                         $        28,562

                      
	
                        22055

                      	
                        2442

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2205

                      	
                        5

                      	
                        22055

                      	
                        32
      - Anode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        נושאי
      גליל + מזין

                      	
                        Roll
      carrier + nutritive

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $          31,734

                      	
                         $              24,858

                      	
                         $           21,000

                      	
                        11/01/07

                      	
                        20

                      	
                        1.167123288

                      	
                        5

                      	
                        3.8329

                      	
                        5478.914

                      	
                        1369.7284

                      	
                        1369.728377

                      	
                         $        18,261

                      
	
                        22058

                      	
                        2443

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2205

                      	
                        8

                      	
                        22058

                      	
                        32
      - Anode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        מערכת
      אוטומטית להרכבת אנודה

                      	
                        Automatic
      system to assembly Anode

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $          31,500

                      	
                         $              24,150

                      	
                         $           20,840

                      	
                        11/01/07

                      	
                        20

                      	
                        1.167123288

                      	
                        5

                      	
                        3.8329

                      	
                        5437.169

                      	
                        1359.2924

                      	
                        1359.292352

                      	
                         $        18,121

                      
	
                        22059

                      	
                        2444

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2205

                      	
                        9

                      	
                        22059

                      	
                        32
      - Anode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        מערכת
      אוטומטית להרכבת אנודה

                      	
                        Automatic
      system to assembly Anode

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $          31,500

                      	
                         $              24,150

                      	
                         $           20,840

                      	
                        11/01/07

                      	
                        20

                      	
                        1.167123288

                      	
                        5

                      	
                        3.8329

                      	
                        5437.169

                      	
                        1359.2924

                      	
                        1359.292352

                      	
                         $        18,121

                      
	
                        220513

                      	
                        2437

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2205

                      	
                        13

                      	
                        220513

                      	
                        32
      - Anode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        תוספת
      מערכת החתמת לייזר 2D

                      	
                        Additional
      laser sealing system 2D

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $          27,400

                      	
                         $              21,007

                      	
                         $           18,130

                      	
                        11/01/07

                      	
                        20

                      	
                        1.167123288

                      	
                        5

                      	
                        3.8329

                      	
                        4730.129

                      	
                        1182.5322

                      	
                        1182.532166

                      	
                         $        15,765

                      
	
                        220512

                      	
                        2449

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2205

                      	
                        12

                      	
                        220512

                      	
                        32
      - Anode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        תוספת
      מערכת החתמת לייזר 2D

                      	
                        Additional
      laser sealing system 2D

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $          27,400

                      	
                         $              21,007

                      	
                         $           18,130

                      	
                        11/01/07

                      	
                        20

                      	
                        1.167123288

                      	
                        5

                      	
                        3.8329

                      	
                        4730.129

                      	
                        1182.5322

                      	
                        1182.532166

                      	
                         $        15,765

                      
	
                        220511

                      	
                        2450

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2205

                      	
                        11

                      	
                        220511

                      	
                        32
      - Anode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        תוספת
      מערכת החתמת לייזר 2D

                      	
                        Additional
      laser sealing system 2D

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $          27,400

                      	
                         $              21,007

                      	
                         $           18,130

                      	
                        11/01/07

                      	
                        20

                      	
                        1.167123288

                      	
                        5

                      	
                        3.8329

                      	
                        4730.129

                      	
                        1182.5322

                      	
                        1182.532166

                      	
                         $        15,765

                      
	
                        220514

                      	
                        2439

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2205

                      	
                        14

                      	
                        220514

                      	
                        32
      - Anode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        תחנת
      עבודה לייזר ידנית

                      	
                        Manual
      Laser working Station

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $          14,500

                      	
                         $              11,117

                      	
                         $             9,590

                      	
                        11/01/07

                      	
                        20

                      	
                        1.167123288

                      	
                        5

                      	
                        3.8329

                      	
                        2502.037

                      	
                        625.50929

                      	
                        625.5092924

                      	
                         $          8,339

                      
	
                        25451

                      	
                        2468

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2545

                      	
                        1

                      	
                        25451

                      	
                        33
      - Cathode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        177

                      	
                        Office
      Equipment

                      	
                        1

                      	
                        Camera
      Sensors

                      	
                        Camera
      Sensors

                      	
                        27/10/08

                      	
                        10/27/08

                      	
                        27/10/08

                      	
                        10/27/08

                      	
                         $               567

                      	
                         $                   547

                      	
                         $                360

                      	
                        10/27/08

                      	
                        20

                      	
                        0.178082192

                      	
                        5

                      	
                        4.8219

                      	
                        74.65909

                      	
                        18.664773

                      	
                        18.66477273

                      	
                         $             323

                      
	
                        22063

                      	
                        2453

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2206

                      	
                        3

                      	
                        22063

                      	
                        33
      - Cathode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        מ.
      רובוטית לפריקה וטעינת(מערכת אוטומציה)

                      	
                        Robotic
      system to unloading and loading(automation system)

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $        295,000

                      	
                         $            231,083

                      	
                         $         195,170

                      	
                        11/01/07

                      	
                        20

                      	
                        1.167123288

                      	
                        5

                      	
                        3.8329

                      	
                        50919.98

                      	
                        12729.995

                      	
                        12729.99464

                      	
                         $     169,710

                      
	
                        22068

                      	
                        2461

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2206

                      	
                        8

                      	
                        22068

                      	
                        33
      - Cathode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        תוספת
      מערכת החתמת לייזר 2D

                      	
                        Additional
      laser sealing system 2D

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $        191,800

                      	
                         $            147,047

                      	
                         $         126,900

                      	
                        11/01/07

                      	
                        20

                      	
                        1.167123288

                      	
                        5

                      	
                        3.8329

                      	
                        33108.29

                      	
                        8277.0729

                      	
                        8277.072909

                      	
                         $     110,346

                      
	
                        22064

                      	
                        2457

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2206

                      	
                        4

                      	
                        22064

                      	
                        33
      - Cathode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        ראשי
      חיתוך חוט

                      	
                        Wire
      cutting heads

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $          90,000

                      	
                         $              70,500

                      	
                         $           59,550

                      	
                        11/01/07

                      	
                        20

                      	
                        1.167123288

                      	
                        5

                      	
                        3.8329

                      	
                        15536.63

                      	
                        3884.1583

                      	
                        3884.158327

                      	
                         $        51,782

                      
	
                        22061

                      	
                        2466

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2206

                      	
                        1

                      	
                        22061

                      	
                        33
      - Cathode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        מכבש
      הידראולי יעודי

                      	
                        Hydraulic
      press to a mission

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $          50,000

                      	
                         $              42,027

                      	
                         $           33,080

                      	
                        11/01/07

                      	
                        14

                      	
                        1.167123288

                      	
                        7.1429

                      	
                        5.9757

                      	
                        5535.722

                      	
                        1383.9304

                      	
                        1383.930443

                      	
                         $        30,312

                      
	
                        220611

                      	
                        2464

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2206

                      	
                        11

                      	
                        220611

                      	
                        33
      - Cathode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        תוספת
      מערכת החתמת לייזר 2D

                      	
                        Additional
      laser sealing system 2D

                      	
                        01/04/08

                      	
                        04/01/08

                      	
                        01/04/08

                      	
                        04/01/08

                      	
                         $          42,976

                      	
                         $              36,530

                      	
                         $           27,080

                      	
                        04/01/08

                      	
                        20

                      	
                        0.750684932

                      	
                        5

                      	
                        4.2493

                      	
                        6372.792

                      	
                        1593.1979

                      	
                        1593.197937

                      	
                         $        23,894

                      
	
                        22069

                      	
                        2465

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2206

                      	
                        9

                      	
                        22069

                      	
                        33
      - Cathode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        תוספת
      מערכת החתמת לייזר 2D

                      	
                        Additional
      laser sealing system 2D

                      	
                        01/04/08

                      	
                        04/01/08

                      	
                        01/04/08

                      	
                        04/01/08

                      	
                         $          42,976

                      	
                         $              36,530

                      	
                         $           27,080

                      	
                        04/01/08

                      	
                        20

                      	
                        0.750684932

                      	
                        5

                      	
                        4.2493

                      	
                        6372.792

                      	
                        1593.1979

                      	
                        1593.197937

                      	
                         $        23,894

                      
	
                        220610

                      	
                        2467

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2206

                      	
                        10

                      	
                        220610

                      	
                        33
      - Cathode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        תוספת
      מערכת החתמת לייזר 2D

                      	
                        Additional
      laser sealing system 2D

                      	
                        01/04/08

                      	
                        04/01/08

                      	
                        01/04/08

                      	
                        04/01/08

                      	
                         $          42,976

                      	
                         $              36,530

                      	
                         $           27,080

                      	
                        04/01/08

                      	
                        20

                      	
                        0.750684932

                      	
                        5

                      	
                        4.2493

                      	
                        6372.792

                      	
                        1593.1979

                      	
                        1593.197937

                      	
                         $        23,894

                      
	
                        22065

                      	
                        2458

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2206

                      	
                        5

                      	
                        22065

                      	
                        33
      - Cathode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        נושאי
      גליל + מזין

                      	
                        Roll
      carrier + nutritive

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $          36,000

                      	
                         $              28,200

                      	
                         $           23,810

                      	
                        11/01/07

                      	
                        20

                      	
                        1.167123288

                      	
                        5

                      	
                        3.8329

                      	
                        6212.044

                      	
                        1553.0111

                      	
                        1553.011079

                      	
                         $        20,704

                      
	
                        220614

                      	
                        2455

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2206

                      	
                        14

                      	
                        220614

                      	
                        33
      - Cathode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        מערכת
      אוטומטית להרכבת אנודה

                      	
                        Automatic
      system to assembly Anode

                      	
                        30/09/08

                      	
                        09/30/08

                      	
                        01/10/08

                      	
                        10/01/08

                      	
                         $          31,008

                      	
                         $              29,458

                      	
                         $           19,540

                      	
                        10/01/08

                      	
                        20

                      	
                        0.249315068

                      	
                        5

                      	
                        4.7507

                      	
                        4113.091

                      	
                        1028.2728

                      	
                        1028.27278

                      	
                         $        17,483

                      
	
                        220615

                      	
                        2454

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2206

                      	
                        15

                      	
                        220615

                      	
                        33
      - Cathode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        מערכת
      אוטומטית להרכבת אנודה

                      	
                        Automatic
      system to assembly Anode

                      	
                        30/09/08

                      	
                        09/30/08

                      	
                        01/10/08

                      	
                        10/01/08

                      	
                         $            3,674

                      	
                         $                3,490

                      	
                         $             2,310

                      	
                        10/01/08

                      	
                        20

                      	
                        0.249315068

                      	
                        5

                      	
                        4.7507

                      	
                        486.2457

                      	
                        121.56142

                      	
                        121.5614187

                      	
                         $          2,067

                      
	
                        220612

                      	
                        2463

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2206

                      	
                        12

                      	
                        220612

                      	
                        33
      - Cathode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        תיקון
      גובה פין קטודה HV

                      	
                        Fixing
      Hight pin Cathode HV

                      	
                        01/04/08

                      	
                        04/01/08

                      	
                        01/04/08

                      	
                        04/01/08

                      	
                         $            1,805

                      	
                         $                1,534

                      	
                         $             1,140

                      	
                        04/01/08

                      	
                        20

                      	
                        0.750684932

                      	
                        5

                      	
                        4.2493

                      	
                        268.2785

                      	
                        67.069632

                      	
                        67.0696325

                      	
                         $          1,006

                      
	
                        22067

                      	
                        2460

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2206

                      	
                        7

                      	
                        22067

                      	
                        33
      - Cathode Production Line

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        מערכת
      אוטומטית להרכבת אנודה

                      	
                        Automatic
      system to assembly Anode

                      	
                        01/10/07

                      	
                        10/01/07

                      	
                        01/11/07

                      	
                        11/01/07

                      	
                         $               492

                      	
                         $                   377

                      	
                         $                320

                      	
                        11/01/07

                      	
                        20

                      	
                        1.167123288

                      	
                        5

                      	
                        3.8329

                      	
                        83.48821

                      	
                        20.872051

                      	
                        20.87205147

                      	
                         $             278

                      
	
                        24401

                      	
                        2500

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        2440

                      	
                        1

                      	
                        24401

                      	
                        63
      - Shared Fixed Assets Production Line Anode-Cathode
    ENGLANDER

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        קורא
      לייזר SICK

                      	
                        Laser
      Reader SICK

                      	
                        01/04/08

                      	
                        04/01/08

                      	
                        01/04/08

                      	
                        04/01/08

                      	
                         $          11,617

                      	
                         $                9,875

                      	
                         $             7,320

                      	
                        04/01/08

                      	
                        20

                      	
                        0.750684932

                      	
                        5

                      	
                        4.2493

                      	
                        1722.631

                      	
                        430.65764

                      	
                        430.6576402

                      	
                         $          6,459

                      
	
                        14671

                      	
                        2483

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        1467

                      	
                        1

                      	
                        14671

                      	
                        ENGLANDER-LV
      - 34

                      	
                        ENGLANDER
      - 69

                      	
                        201

                      	
                        Storage
      Battery Manufacturing

                      	
                        1

                      	
                        מתקן
      סמרור אלקטרודה למסגרת

                      	
                        Shuddering
      device electrode to frame

                      	
                        31/07/06

                      	
                        07/31/06

                      	
                        31/07/06

                      	
                        07/31/06

                      	
                         $            5,897

                      	
                         $                3,757

                      	
                         $             4,170

                      	
                        07/31/06

                      	
                        15

                      	
                        2.421917808

                      	
                        6.6667

                      	
                        4.2447

                      	
                        982.3903

                      	
                        245.59757

                      	
                        245.5975688

                      	
                         $          3,679

                      
	
                        16471

                      	
                        2492

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        1647

                      	
                        1

                      	
                        16471

                      	
                        ENGLANDER-LV
      - 34

                      	
                        ENGLANDER
      - 69

                      	
                        202

                      	
                        Welding
      Equipment

                      	
                        1

                      	
                        מכונת
      ריתוך לייזר לאלקטרודות

                      	
                        Lase
      welding machine to electrodes

                      	
                        31/12/06

                      	
                        12/31/06

                      	
                        31/12/06

                      	
                        12/31/06

                      	
                         $          79,659

                      	
                         $              55,729

                      	
                         $           44,720

                      	
                        12/31/06

                      	
                        15

                      	
                        2.002739726

                      	
                        6.6667

                      	
                        4.6639

                      	
                        9588.486

                      	
                        2397.1216

                      	
                        2397.121598

                      	
                         $        39,926

                      
	
                        16121

                      	
                        2484

                      	
                        More
      Energy Ltd.

                      	
                        1

                      	
                        69

                      	
                        1612

                      	
                        1

                      	
                        16121

                      	
                        ENGLANDER-LV
      - 34

                      	
                        ENGLANDER
      - 69

                      	
                        202

                      	
                        Welding
      Equipment

                      	
                        1

                      	
                        ערכות
      הלחמה + ציוד נלווה

                      	
                        Welding
      kits + additional equipment

                      	
                        01/10/06

                      	
                        10/01/06

                      	
                        01/10/06

                      	
                        10/01/06

                      	
                         $            1,507

                      	
                         $                   998

                      	
                         $                850

                      	
                        10/01/06

                      	
                        15

                      	
                        2.252054795

                      	
                        6.6667

                      	
                        4.4146

                      	
                        192.5424

                      	
                        48.135602

                      	
                        48.13560199

                      	
                         $             754

                      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                        Grand
      Total

                      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                             1,068,800

                      

              

            

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

        

      

    

    Annex
3

    Intellectual
Property

    

    
      	
              1.  

            	
              Patents

            

    

     

    The
Patents of Debtor listed on Schedule C attached
hereto.

     

    
      	
              2.  

            	
              Trademarks

            

    

     

    The
Company, Medis El and More do not have any registered Trademarks, although each
may have common law rights to its name and logo.

     

    
      	
              3.  

            	
              Copyrights

            

    

     

    The
Company, Medis El and More do not have any registered Copyrights, but each may
have common law rights in certain of its assets, including website contents,
technical reports, supplier visit reports, written quality procedures, written
standard operating procedures, written research and/or laboratory results and
other know how.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        
          
            SCHEDULE C

          

           

          Case Overview for
More Energy/May 2009

        

        
 

        
          	
                  Reference
      #

                	
                  Application
      #

                	
                  Filing
      Date

                	
                  Title

                	
                  Status

                	
                  Abstract

                
	
                   

                  NON-PROVISIONAL
      APPLICATIONS

                   

                
	
                  P24712

                  (filed
      PCT

                  P26797)

                	
                  10/757,849

                   

                	
                  January
      16, 2004

                	
                  Storage-Stable
      Fuel Concentrate

                	
                  (second)
      appeal pending

                   

                  Waiting
      for decision by Board of Appeal

                	
                  A
      storage-stable liquid concentrate for use with a fuel cell. The
      concentrate comprises at least one metal hydride compound, a solvent
      comprising one or more polar solvent components, and at least one
      hydroxide ion providing compound. Following a storage of the concentrate
      for 4 weeks at about 25 oC
      not more than about 2 % of the at least one metal hydride compound have
      decomposed.

                
	
                  P24727

                  (filed
      PCT P27610)

                	
                  10/758,081

                	
                  January
      16, 2004

                	
                  Refilling
      System for Fuel Cell and Method of Refilling a Fuel Cell

                	
                  Issued
      as U.S. Patent No. 7,004,207

                  on
      September 14, 2005

                   

                   

                	
                  System
      for refilling a fuel cell wherein the system includes a main container
      having at least one movable fuel container, at least one movable
      electrolyte container, and at least one spent fuel chamber.  A
      valve which regulates or controls fluid flow between the main container
      and a fuel cell and vice versa.  A method of refilling a fuel
      cell provides for moving the at one movable fuel container and the at
      least one movable electrolyte container to cause spent fuel from fuel cell
      to enter the at least one spent fuel chamber.

                
	
                  P24757

                  (filed
      PCT P27611)

                	
                  10/758,080

                	
                  January
      16, 2004

                	
                  Hydride-Based
      Fuel Cell Designed For the Elimination of Hydrogen Formed
      Therein

                	
                  Filed
      formal Notice of Appeal 4/15/09

                  Appeal
      Brief must be filed by 11/15/09 at the latest

                	
                  A
      fuel cell for use with a hydride-based fuel, which fuel cell is designed
      for being sealed in a liquid-tight manner when in operation. The fuel cell
      comprises means for eliminating hydrogen formed inside the fuel
      cell.

                
	
                  P24775

                   

                	
                  10/803,900

                	
                  March
      19, 2004

                	
                  Integrated
      Fuel Cell Controller for Devices

                	
                   

                  Issued
      as U.S. Patent No. 7,446,501

                  on
      November 4, 2008

                   

                   

                	
                  Power
      unit for an electronic device and process for control and regulation of an
      electronic device powered by a fuel cell.  Power unit includes a
      fuel cell having a low output voltage between 0.3 and 1 V, and a
      conversion device coupled to the fuel cell to convert an input voltage as
      low as 0.3 V to a higher output voltage to operate the electronic
      device.

                

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

             

          

          
            	 	 	 	 	 	 
	
                    P24786

                  	
                    10/824,443

                  	
                    April
      15, 2004

                  	
                    Fuel
      Cell with Removable/Replaceable Cartridge and Method of Making and Using
      the Fuel Cell and Cartridge

                  	
                    Filed
      response to first Office Action on 3/18/09

                  	
                    System
      for refilling a fuel cell wherein the system includes a fuel cell having
      at least one variable volume chamber, a cartridge having at least one
      variable volume chamber, and a valve system which regulates or controls
      fluid flow between the cartridge and fuel cell and vice
      versa.  A method of refilling a fuel cell provides for
      connecting the cartridge to the fuel cell and transferring fuel and
      electrolyte from the cartridge to the fuel cell.

                  
	
                    P24942

                  	
                    10/858,401

                    (based
      on V23668)

                  	
                    June
      2, 2004

                    (June
      3, 2003)

                  	
                    Electrode
      for Electrochemical Capacitor

                  	
                    Issued
      as U.S. Patent No. 7,508,650

                    on
      March 24, 2009

                     

                     

                  	
                    An
      electrode for an electrochemical capacitor which comprises a porous carbon
      substrate having thereon at least a first or innermost layer comprising a
      first inherently conductive polymer and a second or outermost layer
      comprising a second inherently conductive polymer.

                  
	
                    P25032

                  	
                    10/796,305

                    (based
      on V23234)

                  	
                    March
      10, 2004

                    (March
      11, 2003)

                  	
                    Self
      Contained Fuel Cell and Cartridge Therefor

                  	
                    Issued
      as U.S. Patent No. 7,507,491

                    on
      March 24, 2009

                     

                    filed
      divisional application on 2/13/09  (P36018)

                  	
                    Fuel
      cell including a casing, a cathode having a first surface and a second
      surface, at least part of the second surface being exposed to the
      atmosphere, an anode having a first surface and a second surface, a first
      chamber configured to retain liquid fuel, wherein the first chamber is
      defined at least partially by the first surface of the anode, and a second
      chamber configured to retain liquid electrolyte, wherein the second
      chamber is defined at least partially by the second surface of the anode
      and the first surface of the cathode, wherein the fuel cell is configured
      to be sealed in a substantially liquid-tight manner during at least a
      portion of its service life.  A cartridge can be connected to
      the fuel cell.

                  
	
                    P25226

                    (filed
      PCT P26806)

                  	
                    10/849,503

                  	
                    May
      20, 2004

                  	
                    Disposable
      Fuel Cell with and without Cartridge and Method of Making and Using the
      Fuel Cell and Cartridge

                  	
                    Filed
      response to first Office Action on 3/2/09

                  	
                    Disposable
      fuel cell and a system for filling a disposable fuel cell.  The
      system includes a fuel cell having at least one chamber, a cartridge
      having at least one chamber, and a valve system which regulates or
      controls fluid flow between the cartridge and fuel cell.  A
      method of refilling a fuel cell provides for connecting the cartridge to
      the fuel cell and transferring fuel and electrolyte from the cartridge to
      the fuel cell.

                  
	
                     

                    P25428

                  	
                     

                    11/132,203

                    (based
      on V25291)

                  	
                     

                    May
      19, 2005

                    (May
      19, 2004)

                  	
                     

                    Multi
      Source to Multi Device-Power Solution

                  	
                     

                    Appeal
      pending;

                     

                    Filed
      Reply Brief and Request for Oral Hearing on 3/18/08

                  	
                     

                    Apparatus
      and process to couple a power source to a powered device.  The
      apparatus includes a power manager structured and arranged to adjust at
      least one of voltage, current and power supplied from the power source to
      the powered device based upon consumption requirements of the powered
      device, and a device coordinator structured and arranged to identify the
      powered device and to forward the identified device’s consumption
      requirements for at least one of voltage, current and power to the power
      manager.

                  

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

             

            
              	 	 	 	 	 	 
	
                      P25680

                      (filed
      PCT P28058)

                    	
                      10/959,763

                    	
                      October
      7, 2004

                    	
                      Gas
      Blocking Anode For a Direct Liquid Fuel Cell

                    	
                      Final
      Office Action issued 4/20/09

                       

                      Action
      due by 10/20/09 at the latest

                    	
                      An
      anode for a direct liquid fuel cell in which hydrogen gas is generated as
      a result of a fuel oxidation or decomposition reaction. The surface of the
      anode which is intended to face the electrolyte chamber of the fuel cell
      is substantially completely covered with a polymeric material which
      prevents at least about 80 % of the generated hydrogen gas to pass through
      the polymeric material into the electrolyte chamber.

                    
	
                      P25843

                      (filed
      PCT 26805)

                    	
                      10/941,020

                    	
                      September
      15, 2004

                    	
                      Method
      and Apparatus for Preventing Fuel Decomposition in a Direct Liquid Fuel
      Cell

                    	
                      filed
      Request for Continued Examination on 3/18/09

                    	
                      A
      fuel cell includes a cathode, an anode, a fuel chamber, and a membrane
      arranged between the anode and the fuel chamber. The membrane is
      structured and arranged to allow gas to accumulate adjacent the anode at
      least to a point where the gas limits or substantially prevents a contact
      between the anode and a fuel.  The method includes generating
      electrical energy with the fuel cell, preventing further generation of
      electrical energy of the fuel cell, and facilitating, with the membrane,
      an accumulation of the gas adjacent the anode at least to a point where
      the gas substantially prevents a contact between the anode and the fuel.
      Another method includes using a gas which is formed by an initial
      decomposition of the fuel to restrict or substantially prevent any further
      contact between the fuel and the anode.

                    
	
                      P26804

                      (filed
      PCT P26805)

                    	
                      11/226,222

                      (CIP
      of P25843)

                    	
                      September
      15, 2005

                      (September
      15, 2004)

                    	
                      Direct
      Liquid Fuel Cell and Method of preventing Fuel Decomposition in a direct
      Liquid Fuel Cell

                    	
                      Office
      Action issued 3/10/09

                       

                      Response
      due by 9/10/09 at the latest

                    	
                      A
      fuel cell includes a cathode, an anode, a fuel chamber, and at least one
      membrane arranged between the anode and the fuel chamber. The gas is
      allowed to accumulate adjacent the anode at least to a point where the gas
      limits or substantially prevents a contact between the anode and a
      fuel.  The method includes generating electrical energy with the
      fuel cell, preventing further generation of electrical energy of the fuel
      cell, and facilitating an accumulation of the gas adjacent the anode at
      least to a point where the gas substantially prevents a contact between
      the anode and the liquid fuel.

                    

               

              
                
                  
                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

               

              
                	 	 	 	 	 	 
	
                        P28299

                      	
                        11/476,571

                      	
                        June
      29, 2006

                      	
                        Controller
      For Fuel Cell in Standby Mode Or No Load Condition

                      	
                        No
      Office Action yet

                      	
                        Process
      and apparatus for controlling a fuel cell. The process includes drawing a
      pulse from a fuel cell in one of a standby mode or no load
      condition.  The pulse is one of a power, current, and voltage
      pulse.  The apparatus includes a field effect transistor
      arranged to selectively couple a resistance to fuel cell to draw current
      from the fuel cell, and a timer defining a pulse, during which the field
      effect transistor couples the resistance to the fuel cell to draw current
      from the fuel cell.

                      
	
                        P28300

                      	
                        11/434,795

                      	
                        May
      17, 2006

                      	
                        Oxidation
      Catalyst For Liquid Fuel Cell

                      	
                        Office
      Action issued 3/18/09

                         

                        Response
      due by 9/18/09 at the latest

                      	
                        An
      oxidation catalyst for use in an anode of a liquid fuel cell. The catalyst
      comprises at least two metals selected from Pt, Pd, Rh, Ru, Re, Ir and Au
      supported on a carbon having a specific surface area of at least about 50
      m2/g
      and (i) a total pore volume of at least about 0.3 cm3/g
      and/or (ii) pores having a diameter in the range of from about 2 nm to
      about 50 nm which account for at least about 20 % of the total pore
      volume.

                      
	
                        P28301

                      	
                        11/476,568

                      	
                        June
      29, 2006

                      	
                        Digital
      Logic Control DC-To-DC Converter With Controlled Input Voltage And
      Controlled Power Output

                      	
                        Filed
      response to 1st  Office
      Action on 2/3/09

                      	
                        Process
      and apparatus for powering a powered device with a fuel
      cell.  The process includes maintaining an input voltage,
      supplied by the fuel cell, to a converter device, and controlling an
      output power of the converter device, which is coupled to the powered
      device.  The process also includes varying the current drawn
      from the fuel cell to compensate for fluctuations in the voltage required
      during operation of the powered device.

                      
	
                        P28865

                        (filed
      PCT P31423)

                      	
                        11/325,466

                      	
                        January
      5, 2006

                      	
                        Hydrophilized
      Anode For A Direct Liquid Fuel Cell

                      	
                        Final
      Office Action issued 3/6/09

                         

                        Action
      due by 9/6/09 at the latest

                      	
                        An
      anode for a liquid fuel cell which has been subjected to a
      hydrophilization treatment in at least a part of a side thereof that is
      intended to contact the liquid fuel.

                      
	
                        P28866

                         

                      	
                        11/384,365

                      	
                        March
      21, 2006

                        (filed
      provisional March 22, 2005)

                      	
                        Method
      Of Producing Fuel Dispersion For A Fuel Cell

                      	
                        Filed
      formal Notice of Appeal 2/17/09

                        Appeal
      Brief must be filed by 9/17/09 at the latest

                      	
                        A
      method of producing a fuel or concentrate thereof for a fuel cell. The
      method comprises providing a solution of at least one hydroxide ion
      providing compound in a liquid medium and combining and mixing one or more
      hydride compounds with this solution to provide a colloidal dispersion of
      the hydride compound(s) in the alkaline
medium.

                      

                 

                
                  
                    
                    

                  

                  
                    
                    

                    
                      

                    

                  

                  
                    
                    

                  

                

                
                   

                

                
                  	 	 	 	 	 	 
	
                          P28867
      (filed PCT P28059)

                        	
                          11/384,364

                        	
                          March
      21, 2006

                          (filed
      provisional March 22, 2005)

                        	
                          Fuel
      Composition For Fuel Cells

                        	
                          Received
      Advisory Action

                           

                          Action
      must be taken by 7/23/09 at the latest

                        	
                          A
      hydride containing fuel composition for a liquid fuel cell. The
      composition comprises an alkaline liquid phase and at least two hydride
      compounds. The solubility of the first hydride compound in the liquid
      phase is higher than the solubility of a second hydride compound in the
      liquid phase and the opposite is true for the anodic oxidation products
      thereof.

                        
	
                          P28868

                        	
                          11/452,199

                        	
                          June
      14, 2006

                        	
                          Process
      For Making Framed Electrode

                        	
                          Filed
      response to Restriction Requirement on 3/6/09

                        	
                          A
      process for making a framed electrode by injection molding. The process
      comprises placing a flat piece of electrode material on a shrinkage-free
      under mold frame and attaching it thereto in a manner which substantially
      prevents the piece and the frame from moving relative to each other, over
      molding the resultant assembly by injecting a molten resin into an over
      molding cavity which contains the assembly, and allowing the resin to
      solidify.

                        
	
                          P29025

                           

                        	
                          11/325,326

                        	
                          January
      5, 2006

                        	
                          Gas-Blocking
      Anode For A Direct Liquid Fuel Cell

                        	
                          Received
      Restriction Requirement on 3/23/09

                           

                          Election
      must be filed by 9/23/09 at the latest

                        	
                          An
      anode for a direct liquid fuel cell in which hydrogen gas is generated as
      a result of a fuel oxidation or decomposition reaction. The surface of the
      anode which is intended to face the electrolyte chamber of the fuel cell
      is substantially completely covered with a polymeric material which
      prevents at least about 80 % of the

                          generated
      hydrogen gas to pass through the anode into the electrolyte
      chamber.

                        
	
                          P30002

                        	
                          11/475,063

                        	
                          June
      27, 2006

                        	
                          Stationary
      Cartridge Based Fuel Cell System, Fuel Cell Power Supply System, And
      Method of Activating The Fuel Cell

                        	
                          No
      Office Action issued yet

                        	
                          A
      power supply system, in particular for use during emergencies and/or power
      outages, that includes at least one liquid fuel cell, at least one
      cartridge, and a system or device for transferring the contents of the
      cartridge to the fuel cell. A cartridge-free power supply system is also
      disclosed.

                        
	
                          P31313

                        	
                          11/668,761

                        	
                          January
      30, 2007

                        	
                          Supported
      Platinum And Palladium Catalysts And Preparation Method
      Thereof

                        	
                          Filed
      response to Restriction Requirement on 4/27/09

                        	
                          A
      method of preparing a supported platinum and/or palladium electrocatalyst
      and the electrocatalyst produced thereby. The method comprises the
      contacting of an electrically conductive particulate support which
      comprises adsorbed polynuclear hydroxo complexes of platinum and/or
      palladium with a reducing agent.

                        

                   

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                   

                  
                    	 	 	 	 	 	 
	
                            P31582

                             

                          	
                            11/684,328

                          	
                            March
      9, 2007

                             

                          	
                            Direct
      Liquid Fuel Cell Comprising A Hydride Fuel And A Gel
      Electrolyte

                          	
                            Final
      Office Action issued 3/12/09

                             

                            Action
      due by 9/12/09 at the latest

                          	
                            A
      direct liquid fuel cell which comprises a gel electrolyte and a liquid
      fuel. The liquid fuel comprises a metal hydride compound and/or a
      borohydride compound.

                          
	
                            P31583

                          	
                            11/742,801

                          	
                            May
      1, 2007

                          	
                            Self-Regulating
      Hydrogen Generator For Use With A

                             Fuel
      Cell

                             

                          	
                            No
      Office Action issued yet

                          	
                            A
      hydrogen generation device includes a liquid fuel chamber, a catalytic
      hydrogen generation chamber, a hydrogen collection chamber and separation
      elements between these chambers. Once a certain hydrogen pressure in the
      device is reached liquid fuel is substantially prevented from being
      catalytically converted into hydrogen, whereby the production of hydrogen
      is stopped until hydrogen is allowed to exit the device to lower the
      pressure therein.

                          
	
                            P31760

                             

                          	
                            11/684,497

                          	
                            March
      9, 2007

                          	
                            Leak-Proof
      Liquid Fuel Cell

                          	
                            No
      Office Action issued yet

                          	
                            A
      leak-proof fuel cell which comprises at least one liquid within a casing
      that comprises at least one opening which is sealed by a first structure
      that is gas-pervious and substantially impervious to the at least one
      liquid. At least that portion of the casing which comprises the at least
      one opening is enclosed by a second structure which allows gas to pass
      therethrough. A space defined by the casing and the second structure
      comprising therein at least one material that is capable of binding the at
      least one liquid.

                          
	
                            P32035

                             

                          	
                            11/819,542

                          	
                            June
      28, 2007

                          	
                            Portable
      Liquid Fuel Cell

                          	
                            Filed
      formal Notice of Appeal 3/17/09

                             

                            Appeal
      Brief must be filed by 10/17/09 at the latest

                             

                             

                            Filed
      Divisional (P35568) on 12/23/08

                             

                             

                          	
                            Fuel
      cell system including a fuel cell assembly having an anode and a
      cathode.  A fuel/electrolyte module includes a liquid fuel
      and/or a liquid electrolyte and/or components of the liquid fuel and/or
      the liquid electrolyte.  A housing arrangement houses the fuel
      cell assembly and the fuel/electrolyte module.  A system is used
      for transferring at least a part of the contents of the fuel/electrolyte
      module into the fuel cell assembly.  A method is also disclosed
      of generating electrical power using a power system including at least one
      fuel cell unit having a fuel cell assembly and a fuel/electrolyte module
      arranged within a housing arrangement.

                          

                     

                    
                      
                        
                        

                      

                      
                        
                        

                        
                          

                        

                      

                      
                        
                        

                      

                    

                    
                       

                    

                    
                      	 	 	 	 	 	 
	
                              P32117

                            	
                              11/878,842

                            	
                              July
      27, 2007

                            	
                              Dry
      Method of Making a Gas Diffusion Electrode

                            	
                              No
      Office Action issued yet

                            	
                              A
      substantially dry method of making a gas diffusion electrode such as,
      e.g., an air cathode for a fuel cell or a metal-air battery cell. The
      method comprises forming an intimate mixture of catalytically active
      carbon particles and particles of a wet-proofing agent into a web;
      combining under pressure the web of with a current collector to form a
      current collector-web composite; and attaching a porous sheet of a
      fluorinated polymer to one side of the current collector-web composite of
      to form an air cathode.

                            
	
                              P34384

                            	
                              12/333,702

                            	
                              December
      12, 2008

                            	
                              Diluted
      Catalyst for Electrodes

                            	 
      	
                              PCT
      Application must be filed by December 12, 2009

                            
	
                              P35039

                            	
                              12/238,180

                            	
                              September
      25, 2008;

                              continuation
      of (patented) P24775

                            	
                              Integrated
      Fuel Cell Controller for Devices

                            	 
      	
                              Power
      unit for an electronic device and process for control and regulation of an
      electronic device powered by a fuel cell.  Power unit includes a
      fuel cell having a low output voltage between 0.3 and 1 V, and a
      conversion device coupled to the fuel cell to convert an input voltage as
      low as 0.3 V to a higher output voltage to operate the electronic
      device.

                            
	
                              P35532

                            	
                              12/333,747

                               

                              Based
      on provisional application (V34383) filed May 23, 2008

                            	
                              December 12,
      2008

                               

                               

                            	
                              Solid
      Fuel Composition for a Direct Liquid Fuel Cell

                            	 
      	
                              A
      solid fuel composition which is suitable for preparing a liquid fuel for a
      direct liquid fuel cell.  The composition comprises at least one
      solid hydride compound selected from borohydrides, aluminum hydrides, and
      metal hydrides, and at least one alkaline compound selected from
      hydroxides of alkali and alkaline earth metals, Zn, Al, and ammonium. If
      placed in a direct liquid fuel cell and contacted with an aqueous liquid
      the composition dissolves gradually as the at least one hydride compound
      is consumed while the fuel cell is in operation.

                            
	
                              P35568

                            	
                              12/342,286

                            	
                              December
      23, 2008

                            	 
      	 
      	
                              Divisional
      of P32035

                            
	
                              P36018

                            	
                              12/370,884

                            	
                              February
      13, 2009

                            	 
      	 
      	
                              Divisional
      of P25032

                            
	
                              P36190

                            	
                              12/396,901

                            	
                              March
      3, 2009

                            	 
      	 
      	
                              Based
      on provisional  V33077

                            

                       

                       

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                       

                      	
                              PCT
      APPLICATIONS

                               

                            
	
                              P26797

                            	
                              PCT

                              of
      P24712

                            	
                              February
      23, 2005

                            	
                              Storage-Stable
      Fuel Concentrate

                            	
                              Corresponding
      European  and Eurasian regional phase and Canadian, Brazilian,
      Australian, Korean, Philippine, Singaporean, Chinese, Japanese, Mexican,
      Indian and South African national phase applications have been
      filed

                            	 
      
	
                              P26805

                            	
                              PCT
      of P25843

                            	
                              September
      15, 2005

                            	
                              Direct
      Liquid Fuel Cell and Method of preventing Fuel Decomposition in a direct
      Liquid Fuel Cell

                               

                            	
                              Corresponding
      Canadian, Brazilian, Australian, Korean, Philippine, Singaporean, Chinese,
      Japanese, Mexican, Indian, South African and Vietnamese national phase and
      European and Eurasian regional phase applications have been
      filed

                            	 
      
	
                              P26806

                            	
                              PCT
      of P25226

                            	
                              May
      20, 2005

                            	
                              Disposable
      Fuel Cell with and without Cartridge and Method of making and using the
      Fuel Cell and Cartridge

                            	
                              Corresponding
      Canadian, Mexican, Brazilian, Indian, Chinese, Japanese, Korean,
      Singaporean, Vietnamese, Philippine, Indonesian, Israeli, Australian and
      South African national phase and European and Eurasian regional phase
      applications have been filed

                            	 
      
	
                              P28058

                            	
                              PCT
      of  P25680

                            	
                              October
      5, 2005

                            	
                              Gas-Blocking
      Anode for a direct Liquid Fuel Cell

                            	
                              Corresponding
      Japanese, Korean, Chinese national phase and European and Eurasian
      regional phase applications have been filed

                            	 
      

                       

                       

                       

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                       

                      
                        	 	 	 	 	 	 
	
                                P28059

                              	
                                PCT
      corresp. to P28867

                              	
                                March
      21, 2006

                              	
                                Fuel
      Composition For Fuel Cells

                              	
                                European
      and Eurasian regional phase and Canadian, Australian, South Korea,
      Philippine,

                                Singapore,
      Chinese, Japanese, Mexican, Indian, and South African national phase
      applications have been filed

                              	 
      
	
                                P31423

                              	
                                PCT
      based on P28865

                              	
                                January
      5, 2007

                              	
                                Hydrophilized
      Anode For A Direct Liquid Fuel Cell

                              	
                                Corresponding
      Canadian, Mexican, Brazilian, Indian, Chinese, Japanese, Korean,
      Singaporean, Philippine, Australian and South African national phase and
      European and Eurasian regional phase applications have been
      filed

                              	 
      
	
                                P32439

                              	
                                PCT
      based on P28299

                              	
                                July
      2, 2007

                              	
                                Controller
      For Fuel Cell in Standby Mode Or No Load Condition

                              	
                                National
      Stage applications must be filed by January 2, 2010 (no priority
      claimed)

                              	 
      
	
                                P32440

                              	
                                PCT
      based on P28301

                              	
                                July
      2, 2007

                              	
                                Digital
      Logic Control DC-To-DC Converter With Controlled Input Voltage And
      Controlled Power Output

                              	
                                National
      Stage applications must be filed by January 2, 2010 (no priority
      claimed)

                              	 
      
	
                                P33791

                              	
                                PCT
      based on P31313

                              	
                                January
      29, 2008

                              	
                                Supported
      Platinum And Palladium Catalysts And Preparation Method
      Thereof

                              	
                                National
      Stage applications must be filed by July 30, 2009

                              	 
      

                         

                         

                        
                          
                            
                            

                          

                          
                            
                            

                            
                              

                            

                          

                          
                            
                            

                          

                        

                         

                        
                          	 	 	 	 	 	 
	
                                  P34375

                                	
                                  PCT
      based on P31583

                                	
                                  April
      30, 2008

                                	
                                  Self-Regulating
      Hydrogen Generator For Use With A

                                   Fuel
      Cell

                                	
                                  National
      Stage applications must be filed by November 1, 2009

                                	 
      
	
                                  P34881

                                	
                                  PCT
      based on P32117

                                	
                                  July
      23, 2008

                                	
                                  Dry
      Method of Making a Gas Diffusion Electrode

                                	
                                  National
      Stage applications must be filed by January 27, 2010

                                	 
      
	
                                  P36047

                                	
                                  PCT
      based on V33077

                                	
                                  March
      3, 2009

                                	 
      	
                                  Fee
      has not been paid; can probably be revived if action is taken
      soon

                                	 
      
	
                                   

                                   

                                  PROVISIONAL
      APPLICATIONS

                                
	
                                  V33077

                                	
                                  61/033,629

                                	
                                  March
      4, 2008

                                	
                                  Self-Regulating
      Hydrogen Generator for Fuel Cells and Hybrid Vehicle Power System
      Utilizing the Same

                                	
                                  Non-provisional
      (P36190)

                                  and
      PCT (P36047) have been

                                  filed

                                	
                                  A
      self-regulating hydrogen generation device comprising:

                                  (a) at least one first chamber
      for holding a liquid and at least one first substance which is a source of
      hydrogen and is at least partly soluble in the liquid;

                                  (b) a catalytic member capable of
      catalyzing a reaction which involves the at least one first substance and
      results in the formation of hydrogen gas; and

                                  (c) a first separation element
      which is liquid-permeable and capable of allowing liquid to pass from the
      first chamber into a second chamber and a second separation element which
      is substantially liquid-impervious and gas-pervious.

                                   

                                
	
                                  V34382

                                	
                                  61/071,903

                                	
                                  May
      23, 2008

                                	
                                  Fuel
      Cell System and Method of Activating the Fuel Cell

                                	
                                  Non-provisional
      (and PCT) must be filed by May 23, 2009

                                	
                                  A
      fuel cell system comprising:

                                  a
      fuel cell assembly comprising an anode, a cathode and at least one
      of:

                                  a
      solid fuel of the type disclosed in the instant application;
      and

                                  a
      solid fuel of the type disclosed in US patent Application No. __________
      (Attorney Docket No. V34383).

                                
	
                                  V34383

                                	
                                  61/055,677

                                	
                                  May
      23, 2008

                                	
                                  Solid
      Fuel Composition For a Direct Liquid Fuel Cell

                                	
                                  Non-provisional
      (P35532) filed

                                  PCT
      Application

                                   must
      be filed by May 23, 2009

                                	
                                  A
      solid hydride-containing mixture, wherein the mixture is suitable for
      preparing a liquid fuel for a direct liquid fuel cell, is compacted and
      comprises, based on a total weight of the mixture, from about 10 % to
      about 99.8 % by weight of (i) at least one hydride compound selected from
      borohydrides,  aluminum hydrides,  and metal hydrides,
      and from about 0.1 % to about 50 % by weight (ii) of at least one alkaline
      compound selected from hydroxides of alkali and alkaline earth metals, Zn,
      Al, and ammonium, and wherein the mixture, if placed in a direct liquid
      fuel cell and contacted with an aqueous liquid which is capable of
      dissolving the mixture, dissolves gradually as the at least one hydride
      compound is consumed while the fuel cell is in
  operation.

                                

                           

                          
                            
                              
                              

                            

                            
                              
                              

                              
                                

                              

                            

                            
                              
                              

                            

                          

                           

                          
                            	 	 	 	 	 	 
	
                                    V35531

                                  	
                                    61/202,081

                                  	
                                    January
      28, 2009

                                  	
                                    Stackable
      and/or Scalable Module Fuel Cell System Utilizing Solid
    Fuel

                                  	 
      	
                                    A
      fuel cell system comprising:

                                    a
      fuel cell assembly comprising at least one stackable module;

                                    the
      module having at least one of:

                                    a
      solid fuel of the type disclosed in the instant application;
      and

                                    a
      solid fuel of the type disclosed in at least one of US patent Application
      Nos. 61/055,677 filed on May 23, 2008 (Attorney Docket No. V34383) and
      12/333,747 filed on December 12, 2008 (Attorney Docket No.
      P35532)

                                  
	
                                    V35768

                                  	
                                    61/202,240

                                  	
                                    February
      9, 2009

                                  	
                                    Dual
      Side-By-Side Module Fuel Cell Utilizing Solid Fuel

                                  	 
      	
                                    A
      fuel cell system comprising at least one of:

                                    at
      least one module having at least one element shown in at least one of the
      drawing figures;

                                    plural
      modules as shown in at least one of the drawing figures;

                                    plural
      modules having fuel chambers arranged opposite one another;

                                    plural
      modules having fuel chambers separated by a common air
      chamber;

                                    plural
      modules having fuel chambers separated by adjacently arranged
      cathodes;

                                    plural
      modules having cathodes arranged adjacent each other;

                                    plural
      modules having cathodes arranged adjacent each other and sharing a common
      air space;

                                    plural
      modules having cathodes facing one another;

                                    plural
      modules having cathodes protected by a common protection
      system;

                                    facing
      one another;

                                    plural modules having a system
      for equalizing the pressure in the fuel chambers of the plural modules;
      and

                                    plural
      modules having a system for equalizing the pressure between the
      electrolyte and fuel cambers.

                                  

                             

                            
                              
                                
                                

                              

                              
                                
                                

                                
                                  

                                

                              

                              
                                
                                

                              

                            

                             

                            
                              	 	 	 	 	 	 
	
                                      V35770

                                    	
                                      61/202,394

                                    	
                                      February
      25, 2009

                                    	
                                      V-Shaped
      Fuel Cell System Utilizing Solid Fuel

                                    	 
      	
                                      A
      fuel cell system comprising:

                                      a
      fuel cell housing having at least one of:

                                      a
      solid fuel of the type disclosed in the instant application;
      and

                                      a
      solid fuel of the type disclosed in at least one of US patent Application
      Nos. 61/055,677 filed on May 23, 2008 (Attorney Docket No. V34383) and
      12/333,747 filed on December 12, 2008 (Attorney Docket No. P35532);
      and

                                      at
      least one of:

                                      the
      housing having two non-parallel main side surfaces;

                                      the
      housing being generally V-shaped; and

                                      the
      housing having a generally V-shaped chamber sized and configured receive
      therein the solid fuel.

                                    

                               

                               

                               

                               

                               

                               

                               

                               

                               

                               

                               

                               

                               

                               

                               

                               

                               

                               

                               

                              
                                
                                  
                                  

                                

                                
                                  
                                  

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                               

                              	
                                      NATIONAL
      STAGE APPLICATIONS

                                       

                                    
	
                                      P31111

                                    	
                                      2,567,057

                                      National
      Stage in Canada of
      PCT P26806

                                    	
                                      PCT
      filed May 20, 2005

                                    	
                                      Disposable
      Fuel Cell with and without Cartridge and Method of making and using the
      Fuel Cell and Cartridge

                                    	
                                      Filed
      response to 1st
      Office Action

                                    	 
      
	
                                      P31112

                                    	
                                      1-2006-502319
      National Stage in Mexico of PCT
      P26806

                                    	
                                      Waiting
      on 1st
      Office Action

                                    	 
      
	
                                       

                                      P31113

                                    	
                                       

                                      PI
      0511280-0

                                      National
      Stage in Brazil of
      PCT P26806

                                    	
                                       

                                      Waiting
      on 1st
      Office Action

                                    	 
      
	
                                      P31114

                                    	
                                      200602150

                                      Regional
      Stage in Eurasian Patent
      Office of PCT P26806

                                    	
                                      Received
      first 2nd
      Office Action; response due by 5/30/09

                                    	 
      
	
                                      P31115

                                    	
                                      1567/MUMNP/20National
      Stage in India of
      PCT P26806

                                    	
                                      Response
      to 1st
      Office Action

                                      in
      preparation

                                    	 
      
	
                                       

                                      P31116

                                    	
                                       

                                      200580023893.0

                                      National
      Stage in China of
      PCT P26806

                                    	
                                       

                                      No  Office
      Action yet

                                    	 
      
	
                                      P31117

                                    	
                                      2007-517531

                                      National
      Stage in Japan of
      PCT P26806

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                       

                                       

                                      P31118

                                    	
                                       

                                       

                                      7026900/2006National
      Stage in South
      Korea of PCT P26806

                                    	
                                       

                                       

                                      Patent
      No. 10-0800614 issued on 01/28/08

                                    	 
      
	
                                      P31119

                                    	
                                      200607870-3

                                      National
      Stage in Singapore
      of PCT P26806

                                    	
                                      About
      to be granted; granting fee to be paid

                                    	 
      
	
                                      P31121

                                    	
                                      1-2006-02091

                                      National
      Stage in Vietnam
      of PCT P26806

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P31122

                                    	
                                      1-2006-502319

                                      National
      Stage in Philippines of PCT
      P26806

                                    	
                                      Response
      to 1st
      Office Action filed

                                    	 
      
	
                                      P31123

                                    	
                                      W00200603287

                                      National
      Stage in Indonesia
      of PCT P26806

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P31124

                                    	
                                      05803792.0

                                      Regional  Stage
      in European Patent
      Office of PCT P26806

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P31126

                                    	
                                      179283

                                      National
      Stage in Israel of
      PCT P26806

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P31127

                                    	
                                      2005270923

                                      National
      Stage in Australia
      of PCT P26806

                                    	
                                      Acceptance
      fee paid; patent should issue soon

                                    	 
      
	
                                      P31128

                                    	
                                      2006/10402

                                      National
      Stage in South
      Africa of PCT P26806

                                    	
                                      Patent
      2006/10402

                                      Issued
      6/25/08

                                    	 
      

                               

                              
                                
                                  
                                  

                                

                                
                                  
                                  

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                               

                               

                              	
                                      P31459

                                    	
                                      05850784.9
      Regional Stage in European Patent Office
      of PCT P26805

                                    	
                                      PCT
      filed September 15, 2005

                                    	
                                      Direct
      Liquid Fuel Cell and Method of preventing Fuel Decomposition in a direct
      Liquid Fuel Cell

                                       

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                       

                                      P31460

                                    	
                                       

                                      2,580,045

                                      National
      Stage in Canada of
      PCT P26805

                                    	
                                       

                                      No  Office
      Action yet

                                    	 
      
	
                                      P31461

                                    	
                                      PI
      0515310-7

                                       National
      Stage in Brazil of
      PCT P26805

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P31462

                                    	
                                      200700645
      Regional Stage in Eurasian Patent Office
      of PCT P26805

                                    	
                                      2nd
      Office Action issued

                                       

                                      Response
      due by 7/26/09

                                    	 
      
	
                                      P31463

                                    	
                                      2005310973
      National Stage in Australia of PCT
      P26805

                                    	
                                      2nd
      Office Action issued

                                       

                                      Response
      due by 5/20/09

                                    	 
      
	
                                      P31464

                                    	
                                      10-2007-7008547
      National Stage in South

                                      Korea of PCT
      P26805

                                    	
                                      Patent
      No. 10-0853021 issued on 08/12/08

                                    	 
      
	
                                      P31465

                                    	
                                      1-2007-500516
      National Stage in

                                      Philippines of PCT
      P26805

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P31466

                                    	
                                      200701521-7
      National Stage in Singapore of PCT
      P26805

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P31467

                                    	
                                      200580031077.4

                                      National
      Stage in China of
      PCT P26805

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P31468

                                    	
                                      2007-531878

                                      National
      Stage in Japan of
      PCT P26805

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P31469

                                    	
                                      MX/a/07/003028

                                      National
      Stage in

                                      Mexico of PCT
      P26805

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P31470

                                    	
                                      502/MUMNP/2007
      National Stage in India
      of PCT P26805

                                    	
                                      1st
      Office Action issued; response due by 08/05/09;

                                       

                                    	 
      
	
                                      P31471

                                    	
                                      2007/03044
      National Stage in South
      Africa of PCT P26805

                                    	
                                      Application
      allowed

                                    	 
      
	
                                      P31472

                                    	
                                      1-2007-00730
      National Stage in Vietnam of PCT
      P26805

                                    	
                                      No  Office
      Action yet

                                    	 
      

                               

                               

                              
                                
                                  
                                  

                                

                                
                                  
                                  

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                               

                                
                                  

                                

                              

                              	
                                      P31762

                                    	
                                      05850777.3
      Regional Stage in European Patent Office
      of PCT P28058

                                    	
                                      PCT
      filed October 5, 2005

                                    	
                                      Gas-Blocking
      Anode for a Direct Liquid Fuel Cell

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P31763

                                    	
                                      200700801
      Regional Stage in Eurasian Patent Office
      of PCT P28058

                                    	 
      	
                                      Eurasian
      Patent 011221

                                       

                                      Issued
      2/27/09

                                    	 
      
	
                                      P31764

                                    	
                                      7010285/2007

                                      National
      Stage in South Korea
      of PCT P28058

                                    	 
      	
                                      Filed
      response to Office Action

                                    	 
      
	
                                      P31765

                                    	
                                      200580037128.4

                                      National
      Stage in China of
      PCT P28058

                                    	 
      	
                                      Response
      to 1st
      Office Action filed 3/15/09

                                    	 
      
	
                                      P31766

                                    	
                                      2007-535274
      National Stage in Japan
      of PCT P28058

                                    	 
      	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P32222

                                    	
                                      05850777.3
      Regional Stage in European Patent Office
      of PCT P26797

                                    	
                                      PCT
      filed February 23, 2005

                                    	
                                      Storage-Stable
      Fuel Concentrate

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P32223

                                    	
                                      2,595,824

                                      National
      Stage in Canada of
      PCT P26806

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P32224

                                    	
                                      PI
      0519900-0 National Stage in Brazil of PCT
      P26797

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P32225

                                    	
                                      200701789

                                      Regional
      Stage in Eurasian Patent
      Office of PCT P26797

                                    	
                                      Application
      allowed;

                                      Grant
      fee must be paid by 10/8/09 at the latest

                                    	 
      
	
                                      P32226

                                    	
                                      2005328186
      National Stage in Australia of PCT
      P26797

                                    	
                                      Response
      to 1st
      Office Action

                                      due
      by 3/17/10

                                    	 
      
	
                                      P32227

                                    	
                                      7021958/2007

                                      National
      Stage in South Korea
      of PCT P26797

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P32228

                                    	
                                      1-2007-501666

                                      National
      Stage in

                                      Philippines of PCT
      P26797

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P32229

                                    	
                                      200705511-4
      National Stage in Singapore of PCT
      P26797

                                    	
                                      Response
      to 1st
      Office Action due by 8/7/09

                                    	 
      
	
                                      P32230

                                    	
                                      200580048646.6

                                      National
      Stage in China of
      PCT P26797

                                    	
                                      Response
      to 1st
      Office Action due by 7/14/09

                                    	 
      
	
                                      P32231

                                    	
                                      2007-556669

                                      National
      Stage in Japan of
      PCT P26797

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P32232

                                    	
                                      MX/a/2007/009992

                                      National
      Stage in

                                      Mexico of PCT
      P26797

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P32233

                                    	
                                      1388/MUMNP/2007
      National Stage in India
      of PCT P26797

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P32234

                                    	
                                      2007/08046

                                      National
      Stage in South Africa
      of PCT P26797

                                    	
                                      No  Office
      Action yet

                                    	 
      

                               

                              
                                
                                  
                                  

                                

                                
                                  
                                  

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                              	
                                       

                                      P32923

                                    	
                                       

                                      06739107.8
      Regional Stage in European Patent Office
      of PCT P28059

                                    	
                                       

                                      PCT
      filed March 21, 2006

                                    	
                                       

                                      Fuel
      Composition For Fuel Cells

                                    	
                                       

                                      No  Office
      Action yet

                                    	 
      
	
                                       

                                      P32924

                                    	
                                       

                                      2,602,496

                                      National
      Stage in Canada of
      PCT P28059

                                    	
                                       

                                      No  Office
      Action yet

                                    	 
      
	
                                      P32925

                                    	
                                      200702038

                                      Regional
      Stage in Eurasian Patent
      Office of PCT P28059

                                    	
                                      Filed
      response to 1st
      Office Action

                                    	 
      
	
                                      P32926

                                    	
                                      2006227217
      National Stage in Australia of PCT
      P26797

                                    	
                                      Response
      to  1st
      Office Action due by 4/9/10

                                    	 
      
	
                                      P32927

                                    	
                                      7024289/2007

                                      National
      Stage in South Korea
      of PCT P28059

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P32928

                                    	
                                      1-2007-502075

                                      National
      Stage in

                                      Philippines of PCT
      P28059

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P32929

                                    	
                                      200708365-2
      National Stage in Singapore of PCT
      P28059

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P32930

                                    	
                                      200680009330.0

                                      National
      Stage in China of
      PCT P28059

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P32931

                                    	
                                      2008-503085

                                      National
      Stage in Japan of
      PCT P28059

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P32932

                                    	
                                      MX/a/2007/011616

                                      National
      Stage in

                                      Mexico of PCT
      P28059

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                       

                                      P32933

                                    	
                                       

                                      1619/MUMNP/2007
      National Stage in India
      of PCT P28059

                                    	
                                       

                                      No  Office
      Action yet

                                    	 
      
	
                                      P32934

                                    	
                                      2007/08731

                                      National
      Stage in South Africa
      of PCT P28059

                                    	
                                      No  Office
      Action yet

                                    	 
      

                               

                              
                                
                                  
                                  

                                

                                
                                  
                                  

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                               

                               

                                
                                  

                                

                              

                              	
                                      P34454

                                    	
                                      07815050.5
      Regional Stage in European Patent Office
      of PCT P31423

                                    	
                                      PCT
      filed January 7, 2007

                                    	
                                      Hydrophilized
      Anode For A Direct Liquid Fuel Cell

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P34455

                                    	
                                      National
      Stage in Canada of
      PCT P31423

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P34456

                                    	
                                      National
      Stage in Brazil of
      PCT P31423

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P34457

                                    	
                                      200870150

                                      Regional
      Stage in Eurasian Patent
      Office of PCT P31423

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P34458

                                    	
                                      2007266791
      National Stage in Australia of PCT
      P31423

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P34459

                                    	
                                      7019216/2008

                                      National
      Stage in South Korea
      of PCT P31423

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P34460

                                    	
                                      1-2008-501465

                                      National
      Stage in

                                      Philippines of PCT
      P31423

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P34461

                                    	
                                      00804465-3
      National Stage in Singapore of PCT
      P31423

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P34462

                                    	
                                      200780001924.2

                                      National
      Stage in China of
      PCT P31423

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P34463

                                    	
                                      National
      Stage in Japan of
      PCT P31423

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P34464

                                    	
                                      MX/a/2008/008049

                                      National
      Stage in

                                      Mexico of PCT
      P31423

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P34465

                                    	
                                      1510/MUMNP/2008
      National Stage in India
      of PCT P31423

                                    	
                                      No  Office
      Action yet

                                    	 
      
	
                                      P34466

                                    	
                                      2008/06347

                                      National
      Stage in South Africa
      of PCT P31423

                                    	
                                      No  Office
      Action yet

                                    	 
      
	 
      	 
      	 
      	 
      	 
      	 
      

                            

                          

                        

                      

                    

                  

                

              

            

          

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
          	
                  US
      Patent or application number (assignee)

                	
                  Title

                	
                  Status

                	
                  Foreign
      Granted

                	
                  Foreign
      Pending

                	
                  Abstract

                
	
                  US
      7,008,565 (More)

                	
                  Flexible
      electroconductive foam and method of preparation thereof

                	
                  granted

                	 
      	 
      	
                  A
      method of preparing an electroconductive foam, and the foam so prepared.
      An electroconductive polymer such as polyaniline is dispersed in a liquid
      medium that includes an aromatic solvent such as xylene and an organic
      dopant/dispersant such as an aromatic sulfonic acid. The electroconductive
      polymer together with the organic dopant/dispersant constitute between 10%
      and 25% of the resulting dispersion. The dispersion is introduced to the
      pores of an electrically insulating foam matrix such as polyurethane.
      Excess dispersion is expelled and the foam is dried actively, to line the
      pores with an electroconductive lining.

                
	
                  US
      6,878,664 (Medisel)

                	
                  Class
      of Electrocatalysts and a gas diffusion electrode based thereon for fuel
      cells

                	
                  granted

                	 
      	 
      	
                  An
      electrocatalyst based on a highly electroconducting polymer and a
      transition metal, in which transition metal atoms are covalently bonded to
      heteroatoms of the backbone monomers of the polymer. The covalently bonded
      transition metal atoms are nucleation sites for catalytically active
      transition metal particles. The complex is prepared by complexing a highly
      electroconducting polymer with transition metal coordination ions and then
      reducing the transition metal ions to neutral atoms. An electrode for a
      fuel cell is made by impregnating an electrically conducting sheet with
      the catalytic complex and drying the impregnated sheet. The scope of the
      present invention includes such electrodes and the fuel cells that
      incorporate these electrodes.

                
	
                  US
      6,773,470 (More)

                	
                  Suspensions
      for use as a fuel for electrochemical fuel cells

                	
                  granted

                	
                  Australia,
      China, Singapore, New Zealand, Israel, South Africa, Mexico, Russia,
      Philippians

                	
                  Canada,
      Japan, Europe, S. Korea, India, Indonesia, Brazil, Poland, Columbia, Costa
      Rica

                	
                  A
      fuel composition for fuel cells includes a polar solvent such as water, a
      first portion of a first fuel dissolved in the solvent at a saturated
      concentration, and a second portion of the first fuel suspended in the
      solvent to serve as a reservoir of fuel as the dissolved portion is
      consumed. Preferably, the first fuel is a hydride such as NaBH.sub.4.
      Optionally, the fuel composition also includes a second fuel such as an
      alcohol that also controls the solubility of the first fuel in the
      solvent, inhibits decomposition of the first fuel and stabilizes the
      suspension. Preferably, the fuel composition also includes an additive
      such as an alkali for stabilizing the first fuel.

                
	
                  US
      6,758,871 (More)

                	
                  Liquid
      fuel compositions for electrochemical fuel cells

                	
                  granted

                	 
      	 
      	
                  A
      new fuel composition useful for catalytic fuel cells is made up of at
      least two components. The primary fuel component is a surface active
      compound, such as methanol, that is a source of and acts to prevent
      unwanted decomposition of the auxiliary fuel. The auxiliary fuel is a
      hydrogen-containing inorganic compound with a high reduction potential,
      such as NaBH.sub.4, which acts as a highly reactive source of energy and
      serves to catalyze the catalytic oxidation of the primary
      fuel.

                
	
                  US
      6,730,350 (Medisel)

                	
                  Class
      of Electrocatalysts and a gas diffusion electrode based thereon for fuel
      cells

                	
                  granted

                	 
      	 
      	
                  An
      electrocatalyst based on a highly electroconducting polymer and a
      transition metal, in which transition metal atoms are covalently bonded to
      heteroatoms of the backbone monomers of the polymer. The covalently bonded
      transition metal atoms are nucleation sites for catalytically active
      transition metal particles. The complex is prepared by complexing a highly
      electroconducting polymer with transition metal coordination ions and then
      reducing the transition metal ions to neutral atoms. An electrode for a
      fuel cell is made by impregnating an electrically conducting sheet with
      the catalytic complex and drying the impregnated sheet. The scope of the
      present invention includes such electrodes and the fuel cells that
      incorporate these electrodes.

                
	
                  US
      6,562,497 (More)

                	
                  Liquid
      fuel compositions for electrochemical fuel cells

                	
                  granted

                	 
      	 
      	
                  A
      new fuel composition useful for catalytic fuel cells is made up of at
      least two components. The primary fuel component is a surface-active
      compound, such as methanol, that is a source of and acts to prevent
      unwanted decomposition of the auxiliary fuel. The auxiliary fuel is a
      hydrogen-containing inorganic compound with a high reduction potential,
      such as NaBH.sub.4, which acts as a highly reactive source of energy and
      serves to catalyze the catalytic oxidation of the primary
      fuel.

                
	
                  US
      6,554,877 (More)

                	
                  Liquid
      fuel compositions for electrochemical fuel cells

                	
                  granted

                	
                  Australia,
      China, Singapore, Israel, South Africa, Mexico, Russia,
      Philippines

                	
                  Canada,
      Japan, India, Brazil, Columbia, Costa Rica, Ecuador

                	
                  A
      new fuel composition useful for catalytic fuel cells is made up of at
      least two components. The primary fuel component is a surface active
      compound, such as methanol, that is a source of and acts to prevent
      unwanted decomposition of the auxiliary fuel. The auxiliary fuel is a
      hydrogen-containing inorganic compound with a high reduction potential,
      such as NaBH.sub.4, which acts as a highly reactive source of energy and
      serves to catalyze the catalytic oxidation of the primary
      fuel.

                
	
                  US
      6,479,181 (Medisel)

                	
                  Class
      of Electrocatalysts and a gas diffusion electrode based thereon for fuel
      cells

                	
                  granted

                	 
      	 
      	
                  An
      electrocatalyst based on a highly electroconducting polymer and a
      transition metal, in which transition metal atoms are covalently bonded to
      heteroatoms of the backbone monomers of the polymer. The covalently bonded
      transition metal atoms are nucleation sites for catalytically active
      transition metal particles. The complex is prepared by complexing a highly
      electroconducting polymer with transition metal coordination ions and then
      reducing the transition metal ions to neutral atoms. An electrode for a
      fuel cell is made by impregnating an electrically conducting sheet with
      the catalytic complex and drying the impregnated sheet. The scope of the
      present invention includes such electrodes and the fuel cells that
      incorporate these electrodes.

                
	
                  US
      6,380,126 (Medisel)

                	
                  Class
      of Electrocatalysts and a gas diffusion electrode based thereon for fuel
      cells

                	
                  granted

                	 
      	 
      	
                  An
      electrocatalyst based on a highly electroconducting polymer and a
      transition metal, in which transition metal atoms are covalently bonded to
      heteroatoms of the backbone monomers of the polymer. The covalently bonded
      transition metal atoms are nucleation sites for catalytically active
      transition metal particles. The complex is prepared by complexing a highly
      electroconducting polymer with transition metal coordination ions and then
      reducing the transition metal ions to neutral atoms. An electrode for a
      fuel cell is made by impregnating an electrically conducting sheet with
      the catalytic complex and drying the impregnated sheet. The scope of the
      present invention includes such electrodes and the fuel cells that
      incorporate these electrodes.

                
	
                  US
      20030207160 (More)

                	
                  Suspensions
      for use as a fuel for electrochemical fuel cells

                	 
      	 
      	
                  A
      fuel composition for fuel cells includes a polar solvent such as water, a
      first portion of a first fuel dissolved in the solvent at a saturated
      concentration, and a second portion of the first fuel suspended in the
      solvent to serve as a reservoir of fuel as the dissolved portion is
      consumed. Preferably, the first fuel is a hydride such as NaBH.sub.4.
      Optionally, the fuel composition also includes a second fuel such as an
      alcohol that also controls the solubility of the first fuel in the
      solvent, inhibits decomposition of the first fuel and stabilizes the
      suspension. Preferably, the fuel composition also includes an additive
      such as an alkali for stabilizing the first fuel.

                
	
                  US
      20030207157 (More)

                	
                  Liquid
      fuel compositions for electrochemical fuel cells

                	 
      	 
      	
                  A
      liquid fuel composition useful for catalytic fuel cells is made up of at
      least two components. The primary fuel component is a surface-active
      compound, such as methanol, that is a source of and acts to prevent
      unwanted decomposition of the auxiliary fuel. The auxiliary fuel is a
      compound having a standard reduction potential more negative than the
      reduction potential of hydrogen gas, which serves as a source of energy
      and serves to catalyze the catalytic oxidation of the primary
      fuel.

                
	
                  US
      20020142196 (More)

                	
                  Liquid
      fuel compositions for electrochemical fuel cells

                	 
      	 
      	
                  A
      liquid fuel composition useful for catalytic fuel cells is made up of at
      least two components. The primary fuel component is a surface-active
      compound, such as methanol, that is a source of and acts to prevent
      unwanted decomposition of the auxiliary fuel. The auxiliary fuel is a
      compound having a standard reduction potential more negative than the
      reduction potential of hydrogen gas, which serves as a source of energy
      and serves to catalyze the catalytic oxidation of the primary
      fuel.

                

        

 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
4

    Debtor
Collateral Addresses

    

    Medis
Technologies Ltd.

    805 Third
Avenue, 15th Floor

    New York,
NY 10022

     

     

    More
Energy Ltd.

    Medis El
Ltd.

    2 Yodafat
Street

    Global
Park

    Lod
71291, Israel

     

     

    Celestica
Ireland Ltd.

    Parkmore
Industrial Esate

    Ballybrit,
Galway, Co Galway, Ireland

    

     

    Englander

    15
Shacham St.

    Caesarea
Industrial Park , Israel 38099

    

     

    Flying
Cargo:  Lod, Israel

    

     

    Flying
Cargo, Hong Kong, China

    

     

    INN
Accostic Innovatin

    Industrial
Area of Huaide

    Cuihai
Fengtand Road, Fuyong Town, Shenzhen, China

    

     

    ITC
Enterprise Corp

    24 Zhen
Shin Rd, Shang Chiao Administration District, Chang, China

    

     

    Sanshing

    Song Gang
Area, Qing Si Town, Dong Guan city, Guang Dong, China

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Filtertek

    Industrial
Estate

    Newcastle
West Co. Limerick, Ireland

    

     

    ASE
International

    360
Moreland Road

    Commack,
NY 11725

    

     

    Xentris
Wireless

    1250A
Greenbriar Dr.

    Addison,
IL 60101

    

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
5

    Permitted
Indebtedness

    

    
      	
              1.  

            	
              All
      trade payables and accrued liabilities listed on Schedule D
      attached hereto.

            

    

     

    
      	
              2.  

            	
              All
      unrecorded liabilities associated with management performance bonuses,
      payments due under management retention plans and board of directors’
      fees.  These expenses have not been accrued into the Company’s
      financial statements because the Company’s ability to pay these expenses
      is, presently, improbable and
unlikely.

            

    

     

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      SCHEDULE D

    

     

     

    
      
        
          
            	
                    Vendor
      Name

                  	 	
                    Liability

                  	 
	 
      	 	 	 
	
                    Confirmed and Accepted

                  	 	 	
                    (1)

                  	 
	
                    IO
      Systems Ltd (2) (4)

                  	 	$	376,536	 
	
                    Greenblum
      & Bernstein, P.L.C. (5)

                  	 	$	234,568	 
	
                    Comsist
      AB

                  	 	$	76,438	 
	
                    Kramski
      (3) (4)

                  	 	$	2,100,000	 
	
                    Celestica
      (2) (3)

                  	 	$	1,373,000	 
	
                     

                     

                    Sicon

                  	 	$	1,430,442	 
	
                    Filtertek
      (8)

                  	 	$	415,903	 
	
                    Africa
      Israel

                  	 	$	557,903	 
	
                    Komax
      Systems LCF SA (2)

                  	 	$	402,432	 
	
                     

                     

                    Englander

                  	 	$	241,197	 
	
                    Prime
      Lease (6)

                  	 	$	500,000	 
	
                    Trend
      Technologies Mullingar Ltd

                  	 	$	314,999	 
	
                    FC
      Flying Cargo (10)

                  	 	$	—	 
	
                     

                     

                    Accoustic
      Innovations

                  	 	$	129,380	 
	
                    Automatica
      (7)

                  	 	$	90,366	 
	
                    ITC

                  	 	$	67,779	 
	
                    TULIP

                  	 	$	37,488	 
	
                    Meadwestvaco

                  	 	$	40,982	 
	
                    Hadany
      Travel

                  	 	$	19,834	 
	
                    Ruth
      Cargo (9)

                  	 	$	13,036	 
	
                    Sonnenschein

                  	 	$	505,308	 
	
                    Herrick
      & Feinstein

                  	 	$	143,552	 
	
                    Other
      More Energy

                  	 	$	1,930,879	 
	
                    Total

                  	 	$	11,002,021	 
	 
      	 	 	 	 

          

        

         

        	
                (1)

              	
                New
      Israeli Shekel (NIS) to US Dollar conversion rate as of close of business
      July 7, 2009:US$ 1:3.918557

              	 
      	 
      	 
      
	
                (2)

              	
                Liability
      already reflects prior negotiated reductions.

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                (3)

              	
                Agreed
      to 25% of equipment sale proceeds to a cap $750,000 in exchange for access
      to and support in Ireland plant to faclitate sale of excess equipment and
      inventory.

              	 
      
	
                (4)

              	
                Settlement
      of 200,000; dollar conversion is estimated at $1.40 per
    Euro.

              	 
      	 
      	 
      	 
      	 
      	 
      
	
                (5)

              	
                Firm
      has been providing pro bono monitoring and maintenance of patents and
      patent applications during prior months.

              	 
      	 
      	 
      
	
                (6)

              	
                To
      mitigate liquidation court proceedings, agreed to payments of $75,000 on
      June 28th and $50,000 on July 15th.

              	 
      	 
      	 
      	 
      
	
                (7)

              	
                Automatica
      to retain excess equipment in lieu of payment.

              	 
      	 
      	 
      	 
      	 
      	 
      
	
                (8)

              	
                To
      maintain patent applications and maintenance, agreed to payments of $8,050
      on July 3rd and $23,300 on August 15th.

              	 
      	 
      	 
      
	
                (9)

              	
                Court
      order to pay 40,000 NIS; restricted cash lien on bank
    account.

              	 
      	 
      	 
      	 
      	 
      	 
      
	
                (10)

              	
                Two
      court orders to pay 120,265 NIS and 134,150 NIS; restricted cash lien on
      bank account.WWW.EXFILE.COM -- 888-775-4789 -- MEDIS TECHNOLOGIES -- EXHIBIT 10.4 TO FORM 8-K -- 16592

     

    EXHIBIT 10.4

    
 

    NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE
SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A FORM REASONABLY
ACCEPTABLE TO THE BORROWER, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
(II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY THE SECURITIES.

     

     

    
    

     

    
      	 	Principal
      Amount: $657,200.00 	
              Issue Date:
      September 16, 2009 

            	 
	 	Purchase
      Price: $620,000.00 	 	 

    

    

    

    SECURED CONVERTIBLE
PROMISSORY NOTE

    

    FOR VALUE
RECEIVED, MEDIS TECHNOLOGIES LTD., a Delaware corporation (hereinafter called
“Borrower”), hereby
promises to pay to the order of IROQUOIS MASTER FUND LTD., 641 Lexington Ave.,
26th Floor, New York NY 10022, (212) 207-3452 (the “Holder”), without demand, the
sum of Six Hundred and Fifty-Seven Thousand Two Hundred Dollars ($657,200.00)
(“Principal Amount”),
with interest accruing thereon, if any, on January 16, 2010 (the “Maturity Date”), if not sooner
paid.

    

    This Note
has been entered into pursuant to the terms of a subscription agreement
between the Borrower and the Holder dated at or about the date hereof (the
“Subscription
Agreement”), and shall be governed by the terms of such Subscription
Agreement.  Unless otherwise separately defined herein, all
capitalized terms used in this Note shall have the same meaning as is set forth
in the Subscription Agreement.  The following terms shall apply to
this Note:

    

    ARTICLE
I

    

    GENERAL
PROVISIONS

    

    1.1           Payment
Grace Period.  The Borrower shall not
have any grace period to pay any monetary amounts due under this
Note.  During the pendency of an Event of Default (as described in
Article III), a default interest rate of eighteen percent (18%) per annum shall
be in effect.

    

    1.2           Conversion
Privileges.  The Conversion Rights set forth in Article IV shall
remain in full force and effect immediately from the date hereof and until the
Note is paid in full regardless of the occurrence of an Event of
Default.  This Note shall be payable in full on the Maturity Date,
unless previously converted into Common Stock in accordance with Article IV
hereof.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    ARTICLE
II

    

    CONVERSION
RIGHTS

    

    The
Holder shall have the right to convert the principal and any interest due under
this Note into Shares of the Borrower's Common Stock, $.01 par value per share
(“Common Stock”) as set
forth below.

    

    2.1.                      Conversion into the
Borrower's Common Stock.

    

    (a)           The
Holder shall have the right from and after the date of the issuance of this Note
and then at any time until this Note is fully paid, to convert any outstanding
and unpaid principal portion of this Note, and accrued interest, at the election
of the Holder (the date of giving of such notice of conversion being a “Conversion Date”) into fully
paid and non-assessable shares of Common Stock as such stock exists on the date
of issuance of this Note, or any shares of capital stock of Borrower into which
such Common Stock shall hereafter be changed or reclassified, at the conversion
price as defined in Section 2.1(b)
hereof, determined as provided herein.  Upon delivery to the Borrower
of a completed Notice of Conversion, a form of which is annexed hereto as Exhibit A, Borrower
shall issue and deliver to the Holder within five (5) business days after the
Conversion Date (such third day being the “Delivery Date”) that number of
shares of Common Stock for the portion of the Note converted in accordance with
the foregoing.  At the election of the Holder, the Borrower will
deliver accrued but unpaid interest on the Note, if any, through the Conversion
Date directly to the Holder on or before the Delivery Date.  The
number of shares of Common Stock to be issued upon each conversion of this Note
shall be determined by dividing that portion of the principal of the Note and
interest, if any, to be converted, by the Conversion Price.

    

    (b)           
Subject
to adjustment as provided in Section 2.1(c)
hereof, the conversion price (“Conversion Price”) per share shall be
$0.20.

    

    (c)           
The Conversion Price and number and kind of shares or other securities to be
issued upon conversion determined pursuant to Section 2.1(a), shall
be subject to adjustment from time to time upon the happening of certain events
while this conversion right remains outstanding, as follows:

    

    A.           Merger, Sale of Assets,
etc.  If (A) the Borrower effects any merger
or  consolidation of the Borrower with or into another entity, (B) the
Borrower effects any sale of all or substantially all of its assets in one or a
series of related transactions,  (C) any tender offer or exchange
offer (whether by the Borrower or another entity) is completed pursuant to which
holders of Common Stock are permitted to tender or exchange their shares for
other securities, cash or property, (D) the Borrower consummates a stock
purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with one
or more persons or entities whereby such other persons or entities acquire more
than the 50% of the outstanding shares of Common Stock (not including any shares
of Common Stock held by such other persons or entities making or party to, or
associated or affiliated with the other persons or entities making or party to,
such stock purchase agreement or other business combination), (E) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of
the 1934 Act) is or shall become the “beneficial owner” (as defined in Rule
13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate
Common Stock of the Borrower, or (F) the Borrower effects any reclassification
of the Common Stock or any compulsory share exchange pursuant to which the
Common Stock is effectively converted into or exchanged for other securities,
cash or property (in any such case, a “Fundamental  Transaction”), this
Note, as to the unpaid principal portion thereof and accrued interest thereon,
if any, shall thereafter be deemed to evidence the 

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    right to
convert into such number and kind of shares or other securities and property as
would have been issuable or distributable on account of such Fundamental
Transaction, upon or with respect to the securities subject to the conversion
right immediately prior to such Fundamental Transaction.  The
foregoing provision shall similarly apply to successive Fundamental Transactions
of a similar nature by any such successor or purchaser.  Without
limiting the generality of the foregoing, the anti-dilution provisions of this
Section shall apply to such securities of such successor or purchaser after any
such Fundamental Transaction.

    

    B.           Reclassification,
etc.  If the Borrower at any time shall, by reclassification or
otherwise, change the Common Stock into the same or a different number of
securities of any class or classes that may be issued or outstanding, this Note,
as to the unpaid principal portion thereof and accrued interest thereon, shall
thereafter be deemed to evidence the right to purchase an adjusted number of
such securities and kind of securities as would have been issuable as the result
of such change with respect to the Common Stock immediately prior to such
reclassification or other change.

    

    C.           Stock Splits, Combinations
and Dividends.  If the shares of Common Stock are subdivided or
combined into a greater or smaller number of shares of Common Stock, or if a
dividend is paid on the Common Stock in shares of Common Stock, the Conversion
Price shall be proportionately reduced in case of subdivision of shares or stock
dividend or proportionately increased in the case of combination of shares, in
each such case by the ratio which the total number of shares of Common Stock
outstanding immediately after such event bears to the total number of shares of
Common Stock outstanding immediately prior to such event.

    

                               
 D.           Share
Issuance.   So long as this Note is outstanding, if the
Borrower shall issue any Common Stock except for the Excepted Issuances (as
defined in the Subscription Agreement), prior to the complete conversion or
payment of this Note, for a consideration per share that is less than the Fixed
Conversion Price that would be in effect at the time of such issue, then, and
thereafter successively upon each such issuance, the Fixed Conversion Price
shall be reduced to such other lower issue price.  For purposes of
this adjustment, the issuance of any security or debt instrument of the Borrower
carrying the right to convert such security or debt instrument into Common Stock
or of any warrant, right or option to purchase Common Stock shall result in an
adjustment to the Fixed Conversion Price upon the issuance of the
above-described security, debt instrument, warrant, right, or option and again
upon the issuance of shares of Common Stock upon exercise of such conversion or
purchase rights if such issuance is at a price lower than the then applicable
Fixed Conversion Price. Common Stock issued or issuable by the Borrower for no
consideration will be deemed issuable or to have been issued for $0.01 per share
of Common Stock.  The reduction of the Fixed Conversion Price
described in this paragraph is in addition to the other rights of the Holder
described in the Subscription Agreement.

    

    (d)           Whenever
the Conversion Price is adjusted pursuant to Section 2.1(c) above,
the Borrower shall promptly mail to the Holder a notice setting forth the
Conversion Price after such adjustment and setting forth a statement of the
facts requiring such adjustment.

    

    (e)           During
the period the conversion right exists, Borrower will reserve from its
authorized and unissued Common Stock not less than an amount of Common Stock
equal to 125% of the amount of shares of Common Stock issuable upon the full
conversion of this Note.  Borrower represents that upon issuance, such
shares will be duly and validly issued, fully paid and
non-assessable.  Borrower agrees that its issuance of this Note shall
constitute full authority to its officers, agents, and transfer agents who are
charged with the duty of executing and issuing stock certificates to execute and
issue the necessary certificates for shares of Common Stock upon the conversion
of this Note.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    2.2           Method of
Conversion.  This Note may be converted by the Holder in whole
or in part as described in Section 2.1(a) hereof
and the Subscription Agreement.  Upon partial conversion of this Note,
a new Note containing the same date and provisions of this Note shall, at the
request of the Holder, be issued by the Borrower to the Holder for the principal
balance of this Note and interest which shall not have been converted or
paid.

    

    2.3.          Maximum
Conversion.  The Holder shall not be entitled to convert on a
Conversion Date that amount of the Note in connection with that number of shares
of Common Stock which would be in excess of the sum of (i) the number of shares
of Common Stock beneficially owned by the Holder and its affiliates on a
Conversion Date, (ii) any Common Stock issuable in connection with the
unconverted portion of the Note, and (iii) the number of shares of Common Stock
issuable upon the conversion of the Note with respect to which the determination
of this provision is being made on a Conversion Date, which would result in
beneficial ownership by the Holder and its affiliates of more than 4.99% of the
outstanding shares of Common Stock of the Borrower on such Conversion
Date.  For the purposes of the provision to the immediately preceding
sentence, beneficial ownership shall be determined in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended, and Regulation 13d-3
thereunder.  Subject to the foregoing, the Holder shall not be limited
to aggregate conversions of 4.99%.  The Holder shall have the
authority and obligation to determine whether the restriction contained in this
Section 2.3
will limit any conversion hereunder and to the extent that the Holder determines
that the limitation contained in this Section applies, the determination of
which portion of the Notes are convertible shall be the responsibility and
obligation of the Holder.  The Holder may waive the conversion
limitation described in this Section 2.3, in whole
or in part, upon and effective after 61 days prior written notice to the
Borrower to increase such percentage to up to 9.99%.

    

    ARTICLE
III

    

    REDEMPTION
AND PREPAYMENT

    

    3.1.         
Optional
Redemption.  Provided an Event of Default or an event which
with the passage of time or the giving of notice would become an Event of
Default has not occurred, then the Borrower will have the option to prepay up to
fifty percent (50%) of the initial Principal Amount of this Note that has not
been converted.  The foregoing prepayment right shall be exercisable
during each of the thirty day periods commencing sixty-one (61) and ninety-one
(91) days after the Issue Date and in each case shall entitle the Borrower to
prepay twenty-five percent (25%) of the initial Principal Amount of this Note
that has not been converted (“Optional Redemption”), or the
entire outstanding balance if less than such twenty-five percent (25%) is then
outstanding, at the Borrower’s option, by paying to the Holder a sum of money
equal to the Redemption Amount described below or by delivering to Holder shares
of Common Stock equal to the amount that would be issued had the Holder
converted the Redemption Amount, provided that  the total amount of
shares issued to the Holder will not be in excess of the limits set forth in
Section 2.3 above.  Borrower’s election to exercise its right to
prepay must be by notice in writing (“Notice of
Redemption”).  The “Redemption Amount” shall equal
the entire outstanding Principal Amount being redeemed in connection with such
Optional Redemption together with all interest accrued on this Note, if any, and
all other amounts then payable hereunder or pursuant to the Subscription
Agreement.  The Notice of Redemption shall specify the date for such
Optional Redemption (the “Redemption Payment Date”),
which date shall be not less than twenty days after the date of the Notice of
Redemption.  A Notice of Redemption shall not be effective with
respect to any portion of the principal amount under this Note for which the
Holder has a pending election to convert or for which a Conversion Notice is
given prior to the Redemption Payment Date.  On the Redemption Payment
Date, the Redemption Amount, less any portion of the Redemption Amount against
which the Holder has previously exercised its rights pursuant to Section 2.1,
shall be paid in good funds to the Holder. In the event the Borrower fails to
pay 

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    the
Redemption Amount on the Redemption Payment Date as set forth herein, then (i)
at the Holder’s election, such Notice of Redemption will be null and void or
Holder may enforce the Notice of Redemption, (ii) Borrower will not have the
right to deliver another Notice of Redemption, and (iii) Borrower’s failure may
be deemed by Holder to be a non-curable Event of Default.  A Notice of
Redemption may be cancelled at the option of the Holder, if at any time during
the Redemption Period an Event of Default, or an event which with the passage of
time or giving of notice would become an Event of Default occurs.  A
Notice of Redemption may be given only during the seven trading day period after
which (i) the closing price of the Common Stock as reported by Bloomberg L.P.
for the Principal Market has been equal to or more than two times the Fixed
Conversion Price for twenty (20) consecutive trading days (“Lookback Period”) and (ii) the
trading volume of the Common Stock during each day of the Lookback Period
multiplied by the daily volume weighted average price of the Common Stock as
reported by Bloomberg L.P. for the Principal Market each such trading day is not
less than $200,000.  A Redemption Notice may be given only if all of
the Common Stock issuable upon conversion of this Note are registered for resale
without any restriction or legends pursuant to an effective registration
statement from the first date of the Lookback Period through the Redemption
Payment Date.

    

    3.2.         
Fundamental
Transaction.  Upon the occurrence of a Fundamental Transaction,
then in addition to the Holder’s rights described in Section 2.1(c)(A) until
twenty (20) business days after the Borrower notifies the Holder of the
occurrence of the Fundamental Transaction, the Holder may elect to accelerate
the Maturity Date as of the date of the Fundamental Transaction and receive as
payment for the then outstanding Principal Amount, and at the Holder’s election
any other amount owed to the Holder pursuant to the Transaction Documents, an
amount equal to the Black-Scholes Value of the Note as calculated by Bloomberg
L.P., and if elected, such other amounts.

    

    3.3.         
Prepayment.  At
the election of the Holder, one hundred percent (100%) of all funds derived from
the sale or issuance of any equity or debt or rights to acquire equity or debt
of the Borrower or any Subsidiary, except for sales or issuances to the Holder
or its Affiliates, net of actual and reasonable related costs and expenses shall
be paid to the Holder of this Note in prepayment of the Principal Amount of
Notes held by the Holder on the dates such funds are receivable by the
Borrower.  Borrower must notify the Holder of this Note five business
days prior to the receipt of any such funds by the
Borrower.  Notwithstanding the foregoing, no payment pursuant to this
section shall be made in excess of all sums due the Holder under this Note by
the Borrower.

    

    ARTICLE
IV

    

    EVENT
OF DEFAULT

    

    The
occurrence of any of the following events of default ("Event of Default") shall, at
the option of the Holder hereof, make all sums of principal and interest then
remaining unpaid hereon and all other amounts payable hereunder immediately due
and payable, upon demand, without presentment or grace period, all of which
hereby are expressly waived, except as set forth below:

    

    4.1           Failure to Pay Principal or
Interest.  The Borrower fails to pay any installment of
principal, interest or other sum due under this Note when due.

    

    4.2           Breach of
Covenant.  The Borrower breaches any material covenant or other
term or condition of the Subscription Agreement, Transaction Documents or this
Note in any material respect and such breach, if subject to cure, continues for
a period of five (5) business days after written notice to the Borrower from the
Holder.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    4.3           Breach of Representations
and Warranties.  Any material representation or warranty of the
Borrower made herein, in the Subscription Agreement, Transaction Documents, or
in any agreement, statement or certificate given in writing pursuant hereto or
in connection therewith shall be false or misleading in any material respect as
of the date made and the Closing Date.

    

    4.4           Liquidation.   Any
dissolution, liquidation or winding up of Borrower or any substantial portion of
its business.

     

    4.5           Cessation of
Operations.   Any cessation of operations by
Borrower.

     

    4.6           Maintenance of
Assets.   The failure by Borrower to maintain any material
intellectual property rights, personal, real property or other assets which are
necessary to conduct its business (whether now or in the future).

    

    4.7           Receiver or
Trustee.  The Borrower or any Subsidiary of Borrower shall make
an assignment for the benefit of creditors, or apply for or consent to the
appointment of a receiver or trustee for it or for a substantial part of its
property or business; or such a receiver or trustee shall otherwise be
appointed.

    

    4.8           Judgments.  Any
money judgment, writ or similar final process shall be entered or filed against
Borrower or any of its property or other assets for more than $250,000, unless
stayed vacated or satisfied within thirty (30) days.

    

    4.9           Bankruptcy.  Bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings or
relief under any bankruptcy law or any law, or the issuance of any notice in
relation to such event, for the relief of debtors shall be instituted by or
against the Borrower or any Subsidiary of Borrower.

    

    4.10         Delisting.   Delisting
of the Common Stock from any Principal Market; failure to comply with the
requirements for continued listing on a Principal Market for a period of five
(5) consecutive trading days; or notification from a Principal Market that the
Borrower is not in compliance with the conditions for such continued listing on
such Principal Market.

    

    4.11         Non-Payment.   Left
intentionally blank.

    

    4.12         Stop
Trade.  An SEC or judicial stop trade order or Principal Market
trading suspension that lasts for five or more consecutive trading
days.

    

    4.13         Failure to Deliver Common
Stock or Replacement Note.  Borrower's failures to timely
deliver Common Stock to the Holder pursuant to and in the form required by this
Note and Sections 7 and 11 of the Subscription Agreement, or, if required, a
replacement Note.

    

    4.14         Reservation
Default.   Failure by the Borrower to have reserved for
issuance upon conversion of the Note or upon exercise of the Warrants issued in
connection with the Subscription Agreement, the number of shares of Common Stock
as required in the Subscription Agreement, this Note and the
Warrants.

    

    4.15         Financial Statement
Restatement.  The restatement after the date hereof of any
financial statements filed by the Borrower with the Securities and Exchange
Commission for any date or period from two years prior to the Issue Date of this
Note and until this Note is no longer outstanding, if the result of such
restatement would, by comparison to the unrestated financial statements, have
constituted a Material Adverse Effect.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    4.16  
      Reverse
Splits.   The Borrower effectuates a reverse split of its
Common Stock without twenty (20) days prior written notice to the
Holder.

    

    4.17         Event Described in
Subscription Agreement.  The occurrence of an Event of Default
as described in the Subscription Agreement that, if susceptible to cure, is not
cured during any designated cure period.

    

    4.18         Executive Officers Breach of
Duties.  Any of Borrower’s named executive officers or
directors is convicted of a violation of securities laws, or a settlement in
excess of $250,000 is reached by any such officer or director relating to a
violation of securities laws, breach of fiduciary duties or
self-dealing.

    

    4.19         Cross
Default.  A default by the Borrower of a material term,
covenant, warranty or undertaking of any other agreement to which the Borrower
and Holder are parties, or the occurrence of a material event of default under
any such other agreement to which Borrower and Holder are parties which is not
cured after any required notice and/or cure period.

    

    ARTICLE
V

    

    SECURITY
INTEREST

    

    5.           Security Interest/Waiver of
Automatic Stay.   This Note is secured by a security
interest granted to the Holder pursuant to a Security Agreement, as delivered by
Borrower to Holder.  The Borrower acknowledges and agrees that should
a proceeding under any bankruptcy or insolvency law be commenced by or against
the Borrower, or if any of the Collateral (as defined in the Security Agreement)
should become the subject of any bankruptcy or insolvency proceeding, then the
Holder should be entitled to, among other relief to which the Holder may be
entitled under the Transaction Documents and any other agreement to which the
Borrower and Holder are parties (collectively, "Loan Documents") and/or
applicable law, an order from the court granting immediate relief from the
automatic stay pursuant to 11 U.S.C. Section 362 to permit the Holder to
exercise all of its rights and remedies pursuant to the Loan Documents and/or
applicable law. THE BORROWER EXPRESSLY WAIVES THE BENEFIT OF THE AUTOMATIC STAY
IMPOSED BY 11 U.S.C. SECTION 362.  FURTHERMORE, THE BORROWER EXPRESSLY
ACKNOWLEDGES AND AGREES THAT NEITHER 11 U.S.C. SECTION 362 NOR ANY OTHER SECTION
OF THE BANKRUPTCY CODE OR OTHER STATUTE OR RULE (INCLUDING, WITHOUT LIMITATION,
11 U.S.C. SECTION 105) SHALL STAY, INTERDICT, CONDITION, REDUCE OR INHIBIT IN
ANY WAY THE ABILITY OF THE HOLDER TO ENFORCE ANY OF ITS RIGHTS AND REMEDIES
UNDER THE LOAN DOCUMENTS AND/OR APPLICABLE LAW.  The Borrower hereby
consents to any motion for relief from stay that may be filed by the Holder in
any bankruptcy or insolvency proceeding initiated by or against the Borrower
and, further, agrees not to file any opposition to any motion for relief from
stay filed by the Holder.  The Borrower represents, acknowledges and
agrees that this provision is a specific and material aspect of the Loan
Documents, and that the Holder would not agree to the terms of the Loan
Documents if this waiver were not a part of this Note. The Borrower further
represents, acknowledges and agrees that this waiver is knowingly, intelligently
and voluntarily made, that neither the Holder nor any person acting on behalf of
the Holder has made any representations to induce this waiver, that the Borrower
has been represented (or has had the opportunity to he represented) in the
signing of this Note and the Loan Documents and in the making of this waiver by
independent legal counsel selected by the Borrower and that the Borrower has
discussed this waiver with counsel.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    ARTICLE
VI

    

    MISCELLANEOUS

    

    6.1           Failure or Indulgence Not
Waiver.  No failure or delay on the part of the Holder hereof
in the exercise of any power, right or privilege hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such power,
right or privilege preclude other or further exercise thereof or of any other
right, power or privilege.  All rights and remedies existing hereunder
are cumulative to, and not exclusive of, any rights or remedies otherwise
available.

     

    6.2           Notices.  All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) personally served, (ii) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice.  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is
to be received) or (b) on the first business day following the date of mailing
by express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur.  The
addresses for such communications shall be: (i) if to the Borrower to: Medis
Technologies Ltd., 805 Third Avenue, New York, NY 10022, Attn: Jose A. Mejia,
CEO and President, facsimile: (212) 935-9216, with a copy to: Sonnenschein Nath
& Rosenthal LLP, 1221 Avenue of the Americas, New York, NY 10020, Attn: Ira
I. Roxland, Esq., facsimile: (212) 768-6800, and (ii) if to the Holder, to the
name, address and facsimile number set forth on the front page of this Note,
with a copy by fax only to Grushko & Mittman, P.C., 551 Fifth Avenue, Suite
1601, New York, New York 10176, facsimile: (212) 697-3575.

     

    6.3           Amendment
Provision.  The term “Note” and all reference thereto, as used
throughout this instrument, shall mean this instrument as originally executed,
or if later amended or supplemented, then as so amended or
supplemented.

     

    6.4           Assignability.  This
Note shall be binding upon the Borrower and its successors and assigns, and
shall inure to the benefit of the Holder and its successors and
assigns.  The Borrower may not assign its obligations under this
Note.

     

    6.5           Cost of
Collection.  If default is made in the payment of this Note,
Borrower shall pay the Holder hereof reasonable costs of collection, including
reasonable attorneys’ fees.

     

    6.6           Governing
Law.  This Note shall be governed by and construed in
accordance with the laws of the State of New York without regard to conflicts of
laws principles that would result in the application of the substantive laws of
another jurisdiction.  Any action brought by either party against the
other concerning the transactions contemplated by this Agreement must be brought
only in the civil or state courts of New York or in the federal courts located
in the State and county of New York.  Both parties and the individual
signing this Agreement on behalf of the Borrower agree to submit to the
jurisdiction of such 

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    courts.  The
prevailing party shall be entitled to recover from the other party its
reasonable attorney's fees and costs.  In the event that any provision
of this Note is invalid or unenforceable under any applicable statute or rule of
law, then such provision shall be deemed inoperative to the extent that it may
conflict therewith and shall be deemed modified to conform with such statute or
rule of law. Any such provision which may prove invalid or unenforceable under
any law shall not affect the validity or unenforceability of any other provision
of this Note. Nothing contained herein shall be deemed or operate to preclude
the Holder from bringing suit or taking other legal action against the Borrower
in any other jurisdiction to collect on the Borrower's obligations to Holder, to
realize on any collateral or any other security for such obligations, or to
enforce a judgment or other decision in favor of the Holder.  This Note shall be deemed an
unconditional obligation of Borrower for the payment of money and, without
limitation to any other remedies of Holder, may be enforced against Borrower by
summary proceeding pursuant to New York Civil Procedure Law and Rules Section
3213 or any similar rule or statute in the jurisdiction where enforcement is
sought.  For purposes of such rule or statute, any other document or
agreement to which Holder and Borrower are parties or which Borrower delivered
to Holder, which may be convenient or necessary to determine Holder’s rights
hereunder or Borrower’s obligations to Holder are deemed a part of this Note,
whether or not such other document or agreement was delivered together herewith
or was executed apart from this Note.

     

    6.7           Maximum
Payments.  Nothing contained herein shall be deemed to
establish or require the payment of a rate of interest or other charges in
excess of the maximum rate permitted by applicable law.  In the event
that the rate of interest required to be paid or other charges hereunder exceed
the maximum rate permitted by applicable law, any payments in excess of such
maximum rate shall be credited against amounts owed by the Borrower to the
Holder and thus refunded to the Borrower.

     

    6.8           Non-Business
Days.   Whenever any payment or any action to be made
shall be due on a Saturday, Sunday or a public holiday under the laws of the
State of New York, such payment may be due or action shall be required on the
next succeeding business day and, for such payment, such next succeeding day
shall be included in the calculation of the amount of accrued interest payable
on such date.

     

    6.9           Redemption.  This
Note may not be redeemed or called without the consent of the Holder except as
described in this Note or the Subscription Agreement.

    

    6.10         Shareholder
Status.  The Holder shall not have rights as a shareholder of
the Borrower with respect to unconverted portions of this
Note.  However, the Holder will have the rights of a shareholder of
the Borrower with respect to the Shares of Common Stock to be received after
delivery by the Holder of a Conversion Notice to the Borrower.

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, Borrower
has caused this Note to be signed in its name by an authorized officer as of the
16th
day of September, 2009.

     

     

     

    
      
        	 	MEDIS
      TECHNOLOGIES LTD.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Jose
      A. Mejia	 
	 	 	      
                Name:
      Jose A. Mejia 

              	 
	 	 	Title:
      Chief Executive Officer 	 
	 	 	 	 

      

    

    WITNESS:

     

    
    /s/ Omer
Masud                          

                                                                          

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    NOTICE OF
CONVERSION

    

    (To be
executed by the Registered Holder in order to convert the Note)

    

    

    The
undersigned hereby elects to convert $_________ of the principal and $_________
of the interest due on the Note issued by MEDIS TECHNOLOGIES LTD. on September
16, 2009 into Shares of Common Stock of MEDIS TECHNOLOGIES LTD. (the “Borrower”)
according to the conditions set forth in such Note, as of the date written
below.

    

    

    

    Date of
Conversion:_____________________________________________________________________

    

    

    Conversion
Price:_______________________________________________________________________

    

    

    Number of Shares of Common Stock Beneficially Owned on
the Conversion Date: Less than 5% of the
outstanding Common Stock of MEDIS TECHNOLOGIES LTD.

    

    

    Shares To
Be
Delivered:_________________________________________________________________

    

    

    Signature:_____________________________________________________________________________

    

    

    Print
Name:____________________________________________________________________________

    

    

    Address:______________________________________________________________________________

    

    ______________________________________________________________________________

    

    
      
         

      

      
        11

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