Document:

[TRANSLATION ONLY. ONLY ORIGINAL AGREEMENT IN HEBREW SHALL BE BINDING.]

                         AN UNPROTECTED LEASE AGREEMENT

                DATED THE FIRST DAY OF THE MONTH OF DECEMBER 2004

BETWEEN:

                  1.    KIRYAT HAMEIDA V'TECHNOLOGIA 'A' PETAH TIKVAH BM,
                        PRIVATE COMPANY 2 - 031030 - 51
                        [In English: Petah Tikvah Science and Technology
                        District 'A' Ltd.]

                  2.    KIRYAT HAMEIDA V'TECHNOLOGIA 'B' PETAH TIVKAH BM,
                        PRIVATE COMPANY 4 - 039210 - 51
                        [In English: Petah Tikvah Science and Technology
                        District 'B' Ltd.]

                  3.    ATZMA V'SHUT. L'HASHKAOT MACCABIM BM, PRIVATE COMPANY 4
                        - 638261 - 51
                        [In English: Atzma and Partners Maccabim Investments
                        Ltd.] all three care of K.M.T 'A' and 'B' of Dizengoff
                        Street, 253, Tel Aviv
                        (hereafter, jointly and severally: the "LESSOR")

                                        OF THE FIRST PART;

AND BETWEEN:      1.    BRAINSTORM TERAPIA TA'IT BM, PRIVATE COMPANY 513601021
                        [In English: Brainstorm Cell Theraputics Ltd.] OF ABBA
                        HILLEL STREET 14, RAMAT GAN
                        (hereafter, jointly and severally: the "LESSEE")

                                        OF THE OTHER PART;

WHEREAS  the  Landlord  jointly  owns the rights to the land known at present as
Parcels 5 and 6 in Bloc 6366,  in Kiryat Arieh in Petah Tikvah  (hereafter:  the
"LAND") and is  erecting on the land a district by the name of "The  Science and
Technology District" that contains a number of buildings designated for industry
(hereafter:  the  "PROJECT")  among them a building on 4 floors that is known as
Building '6' (hereafter: the "BUILDING");

AND  WHEREAS  it is the wish of the Lessee to accept  the  rented  premises  (as
defined  below) on a lease  from the  Lessor and it is the wish of the Lessor to
grant a lease on the rented  premises (as defined  below) to the Lessee,  for an
unprotected  tenancy, in pursuance of and subject to the terms and provisions of
the Contract;

IT IS THEREFORE DECLARED, AGREED AND STIPULATED BETWEEN THE PARTIES AS FOLLOWS:

1.    PREAMBLE AND INTERPRETATION

      1.1   The  Preamble to this  Contract and the  appendices  thereto form an
            inseparable part hereof.

      1.2.  The  headings  to the  clauses  of  this  Contract  are  solely  for
            convenience  and no weight should be attributed to them for purposes
            of its interpretation.

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                                       2

2.    DEFINITIONS

      2.1   In this  Contract the following  terms will be  attributed  with the
            meaning given beside them unless expressly stated otherwise.

The "LESSOR", the "LESSEE", the "LAND", the "PROJECT", the "BUILDING" as defined
in the Preamble to this Contract.

"PLAN OF THE RENTED  PREMISES",  the "SPECIAL  TERMS  APPENDIX",  the "TECHNICAL
SPECIFICATION",  the "WORDING OF THE MANAGEMENT AGREEMENT",  the "WORDING OF THE
INSURER'S  CERTIFICATE OF INSURANCE",  the "WORDING OF THE BANK GUARANTEE",  the
"WORDING OF THE PROMISSORY NOTE" - as defined below in clause 2.2.

The "TENANCY" - lease of the Rented  Premises in accordance  with and subject to
the terms of this Contract.

The  "RENTED  PREMISES"  - a unit of the upper floor of Building 6 of the Rented
Premises  that is marked in red on the plan,  with an overall area of 634 square
meters (Appendix I to this Contract) including 5 parking places as marked on the
plan, Appendix I.

The "PERIOD OF THE  TENANCY" - as defined in clause 6 of this  Contract  and the
Special Terms Appendix (Appendix II to this Contract).

The "DATE OF TRANSFER OF  POSSESSION" - the date  specified in the Special Terms
Appendix as the date of transfer of possession of the Rented Premises.

The "DATE OF  INCEPTION  OF THE PERIOD OF THE TENANCY" - the date of transfer of
possession.

The "DATE OF  TERMINATION  OF THE PERIOD OF THE TENANCY" - the end of the Period
of the  Tenancy  as  defined  in clause 6 of this  Contract  or any date that is
earlier  than that date if the Tenancy is brought to an end in  pursuance of the
provisions of this Contract or in accordance with the law.

The "RENT" - the rent as defined in clause 7 of this Contract and in the Special
Terms Appendix (Appendix II to this Contract).

The "INDEX" - means the Consumer Price Index including fruit and vegetables that
is published  from time to time by the Central Bureau of Statistics and Economic
Research,  and if the  aforesaid  Index should cease to be published  and in its
place another index that replaces it is published by another  government body or
institution or in their absence, any price index that presents the increments in
the cost of living in the State of Israel. Should there be another index and the
Bureau,  the body or  institution  as stated  above does not  specify  the ratio
between it and the Index that was  replaced,  this ratio will be  determined  by
consent  between the  Parties  and in the absence of consent - by an  arbitrator
that the Parties will appoint for the purpose of determining the above ratio and
in the lack of agreement as to the identity of the arbitrator,  the President of
the  Accountants  Society on the request of one of the parties  will appoint the
arbitrator and his determination will be final and will bind the Parties.

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                                       3

The "BASE INDEX" - the determining Index in the Special Terms Appendix (Appendix
II to this Contract).

The "KNOWN INDEX" - means the Index known at the date of each payment.

"LINKED" or "LINKAGE  DIFFERENTIALS"  - multiplying  the relevant  amount by the
rate of the ratio  between the Known  Index and the Base Index.  If it should be
evident that the Known Index is lower than the Base Index,  then the calculation
and/or the payment will be payment without any reduction whatsoever that derives
from the reduction of the Known Index.

The "MANAGEMENT  COMPANY" - a management and maintenance  company that will deal
with the provision of services involved in management, maintenance and operation
of the  building as  specified in the  Management  Control  (Appendix IV to this
Contract) and as long as no management  company is appointed,  its  undertakings
will apply to the Lessor.

The "PUBLIC AREAS OF THE BUILDING" - the areas of the Building that are designed
for use of all or part of the  tenants  and/or  owners of areas in the  building
other  than the areas  that are part of the  Rented  Premises  or areas that are
designated solely or mainly for the use of the Lessee.

The "BANK" - Bank Leumi l'Israel Ltd.

      2.2   The  Appendices  specified  below are attached to this  Contract and
            form an inseparable part hereof:

            2.2.1 The Plan in which the Rented  Premises  are  outlined in red -
                  APPENDIX I (hereafter: the "PLAN OF THE RENTED PREMISES");

            2.2.2 The  Special  Terms  Appendix - APPENDIX  II  (hereafter:  the
                  "SPECIAL TERMS APPENDIX");

            2.2.3 The Basic  Technical  Specification - APPENDIX III (hereafter:
                  the "TECHNICAL SPECIFICATION");

            2.2.4 The  Wording  of the  Management  Agreement  - -  APPENDIX  IV
                  (hereafter: the "WORDING OF THE MANAGEMENT CONTRACT");

            2.2.5 The Wording of the Insurer's Certificate of Lessee's Insurance
                  - - APPENDIX  V  (hereafter:  the  "WORDING  OF THE  INSURER'S
                  CERTIFICATE OF THE LESSEE'S INSURANCE");

            2.2.6 The  Wording  of the  Bank  Guarantee  of  Fulfillment  of the
                  Lessee's  Undertakings - APPENDIX VI (hereafter:  the "WORDING
                  OF THE BANK GUARANTEE");

            2.2.7

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                                       4

3.    THE COMMITMENT

      The Lessor hereby  undertakes  to grant a lease on the Rented  Premises to
      the  Lessee  and the  Lessee  hereby  undertakes  to accept a lease on the
      Rented  Premises  from  the  Lessor  on an  unprotected  tenancy  for  the
      consideration  and on the  terms in  accordance  with and  subject  to the
      provisions of this Contract.

4.    THE PURPOSE OF THE TENANCY AND THE NATURE OF THE RENTED PREMISES

      4.1   The  purpose of the  Tenancy in  pursuance  of this  Contract is for
            conduct of a  business  as defined  in the  Special  Terms  Appendix
            (Appendix II to this Contract)  only, and the Lessee may not use the
            Rented Premises or any part thereof for any other purpose other than
            the  aforesaid,  in the absence of the prior written  consent of the
            Lessor.

            The Lessee  declares and confirms that he has visited the Land,  the
            Building and the Rented Premises immediately before the date of this
            Contract,   that  he  has  viewed  and   examined   them  and  their
            surroundings,  that he has viewed and examined the physical state of
            the Rented  Premises,  that the  Rented  Premises  and the  existing
            municipal access road in regard to its physical,  planning and legal
            state, are compatible with the Lessee's needs and the purpose of the
            Tenancy,  and  that  he  has no and  will  not  have  any  claim  of
            unsuitability  or  alternative  claims or claims of  defects  in the
            Rented  Premises other than a concealed  defect,  against the Lessor
            and he will have no claims against the Lessor in connection with the
            future municipal  access roads to the building.  The Lessor declares
            that he is not aware of any  defect  and/or  concealed  fault in the
            Rented Premises.

      4.2   The  Lessor  declares  that  he is not  aware  of any  legal  and/or
            contractual  and/or  other  impediment  to his  commitment  in  this
            Contract, including transfer of possession of the Rented Premises to
            the Lessee and he is not aware of the  imposition of any  demolition
            orders of any sort  whatsoever  in respect  of the  Rented  Premises
            and/or the Building  and/or any orders to prohibit use of the Rented
            Premises  and/or  the  Building  and  that  he is not  aware  of any
            intention on the part of the competent  authorities  to ask for such
            orders.

      4.3   The  Lessee  hereby   confirms  that  he  is  aware  that  extensive
            construction  and  renovation  works  are being  carried  out in the
            Building,  including  on the floor on which the Rented  Premises are
            located,  and the Lessee  undertakes  that he will have no action or
            claim against the Lessor and/or those acting on behalf of the Lessor
            in connection  with the execution of the said works,  as long as, as
            far as is  possible,  it will  not be  detrimental  to the  Lessee's
            reasonable use of the Rented Premises for the purpose of the Tenancy
            and to proper access to the Rented Premises.

      4.4   The Lessee is aware that the  Lessor  has the right to  continue  to
            plan and construct  the Project known as the Science and  Technology
            District of which the Building forms a part, as well as the Building
            itself, as he wishes, including making any change and/or addition to
            the Project and the Building, to carry out additional building, work
            and alterations  including an additional floor /additional floors in
            the  Project  and in the  Building,  to enlarge  and/or to alter the
            areas of the rented areas other than a change to the Rented Premises
            and/or the Public Areas in the Building,  to determine and to change
            the location of rented areas in the  Building,  other than  changing
            the location of the Rented Premises, providing only that it does not
            prejudice the rights of the Lessee to  reasonable  use of the Rented
            Premises  for the  purpose of the  Tenancy,  and does not  prejudice
            reasonable access to the Rented Premises.

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                                       5

      4.5   The Lessee  declares  that he is aware that the Rented  Premises are
            transferred  to him in their  present  state (As Is) at the level of
            finish of the  surfacing  only and the  expenses  of  preparing  the
            Rented Premises will apply to each tenant (subject to that stated in
            clause 9.3) without them conferring any right of a protected  tenant
            on the Lessee and without  conferring on the Lessee any right to the
            alterations  and  additions  that the  Lessee  may  carry out in the
            Rented  Premises,  other than alterations and additions that are not
            permanently affixed to the Rented Premises.

5.    NON-PAYMENT  OF  KEY  MONEY  AND  NON-APPLICATION  OF  THE  LAWS  FOR  THE
      PROTECTION OF TENANTS

      5.1   The Lessee  hereby  declares and confirms  that he is aware that the
            Building  was built  after  August 28,  1968 and that in any case on
            August 20, 1968,  there was no tenant  entitled to occupy the Rented
            Premises  as a  protected  tenant  and since  that  date the  Rented
            Premises  were  not  let to any  tenant  for key  money.  Therefore,
            according to the  provisions of the Tenants  Protection  (Integrated
            Version) Law, 5732 - 1972 (in this clause:  the "LAW"),  neither the
            Law and/or any law that may amend  and/or add to and/or  replace the
            Law shall  apply to the Tenancy of the Rented  Premises  that is the
            subject of this Contract and that the Lessee,  the Rented  Premises,
            this Contract and the Tenancy in pursuance  thereof are not and will
            not be protected in pursuance of the provisions of these laws.

      5.2   The Lessee hereby declares and confirms that he has not paid, is not
            paying  and does not  intend to pay,  has not been asked to make any
            payment and has not undertaken to make any payment whatsoever to the
            Lessor  of any  sum  whatsoever,  whether  directly  or  indirectly,
            neither in cash nor in cash  equivalent,  as key money for the right
            to receive a lease on the Rented  Premises,  and that any alteration
            and/or change that he may make to the Rented  Premises in accordance
            with the provisions of this Contract, if at all, will be made within
            the  context  of  regular   maintenance   and  will  not  constitute
            fundamental changes to the Rented Premises and that, on vacating the
            Rented Premises,  the Lessee will not be entitled to claim and/or to
            receive any sum  whatsoever or any benefit  whatsoever in respect of
            key money or in respect of goodwill.

      5.3   The Lessee  hereby  declares and confirms  that this  Contract,  the
            Tenancy in pursuance thereof, the Lessee and the Rented Premises are
            not and will not be  protected by the  provisions  of the Law and/or
            the  provisions  of any law  that may  amend  and/or  add to  and/or
            replace the Law and/or any other that confers and/or that may confer
            protection of any sort on tenants and/or on tenancies similar to the
            protection  in  pursuance of laws as stated and the Law as it may be
            amended and/or  replaced as stated and any other law as stated above
            and that any  regulation  and/or  provision  and/or statute that has
            been  enacted or that may be enacted in future in  pursuance  of any
            law as aforesaid,  will not apply to the Lessee, the Rented Premises
            and to this Contract.

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                                       6

6.    PERIOD OF THE TENANCY AND THE OPTIONS

      6.1   The Tenancy  that is the subject of this  Contract is for the period
            specified  in  the  Special  Terms  Appendix  (Appendix  II to  this
            Contract)  commencing  on the date of transfer of  possession of the
            Rented Premises (as defined below).

      6.2   The Lessor  hereby  grants the Lessee an option to extend the Period
            of the  Tenancy  for a  further  period  / for  further  periods  as
            specified  in  the  Special  Terms  Appendix  (Appendix  II to  this
            Contract)  (the option  period (as may be relevant)  and each one of
            the option periods will be known hereafter as: the "OPTION PERIOD").

      6.3   Exercise of the Option Period will be  contingent on the  cumulative
            fulfillment of all the following terms:

            6.3.1 During the Option Period or (as relevant) the previous  Period
                  of the Tenancy, the Lessee complied with all the terms of this
                  Contract and did not commit any fundamental  and/or continuous
                  breach of the terms of the Contract that was not repaired even
                  after the date prescribed in the written warning that was sent
                  from the Lessor to the Lessee.

            6.3.2 The Lessee has notified the Lessor, in a registered letter, at
                  least 120 (one  hundred and twenty days) before the end of the
                  Period  of the  Tenancy  or (as is  relevant)  the  end of the
                  Period  of the  current  Option  of his  wish  to  extend  the
                  Tenancy.

            6.3.3 In the  Option  Period,  the basic  rent will be raised at the
                  rate  determined  and agreed in advance  as  specified  in the
                  Special  Terms  Appendix  (Appendix  II to this  Contract)  in
                  relation  to the rent paid for the last month of the Period of
                  the Tenancy or (as is relevant)  the last month of the current
                  Option  Period.  After the  increase has been put into effect,
                  the Rent for the  Period of the  Option  will be linked to the
                  Index as specified in clause 4.4 of the special Terms Appendix
                  below.

            6.3.4 If the  Option  is  exercised  in  accordance  with the  terms
                  specified,  the  provisions  of this  Contract  will be  fully
                  applicable during the Option Period,  mutatis mutandis,  as is
                  relevant and in such case any term that is linked to this term
                  will include also the Option Period.

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                                       7

            6.3.5 Before the  inception of the Option  Period and as a condition
                  for the Option  Period,  the Lessee will extend the securities
                  as defined  below in clause 21 for the  duration of the Option
                  Period and will deliver them to the Lessor.

      6.4   If the  cumulative  terms are not complied  with as stated in clause
            6.3.1 - 6.3.5  above,  the option  will  expire and the Lessee  will
            vacate the rented  Premises  immediately at the end of the Period of
            the Tenancy. It is agreed that the Lessee's obligation to vacate the
            Rented Premises is an absolute obligation.

      6.5   During  the  Period  of the  Tenancy  as well as during  the  Option
            Period,  the principles of this Contract will apply and no party may
            lessen  them (in the  absence of mutual  consent  and subject to the
            provisions  of  this  Contract)  in  view  of the  expectations  and
            intentions  of the  parties  at  the  time  of  entering  into  this
            Contract.

7.    THE RENT AND MANNER OF PAYMENT

      7.1   In consideration  of the Tenancy in pursuance of this Contract,  the
            Lessee undertakes to pay the Landlord,  or to his order, the Rent in
            the  amounts  in  installments,  on the  dates  and  in  the  manner
            specified  in  the  Special  Terms  Appendix  (Appendix  II to  this
            Contract) with the addition of value added tax as due.

      7.2   The Lessee will be obligated to pay the Rent and the other  payments
            that  apply to him in  pursuance  of this  Contract  for the  entire
            Period of the Tenancy and/or for the Option Period if exercised,  as
            may be  relevant  even if the Lessee  vacates  the  Rented  Premises
            before  the end of the  Period of the  Tenancy  or before the Option
            Period has expired,  as may be relevant,  other than in the event of
            vacating the Rented Premises as a result of a fundamental  breach of
            this  Agreement  by the Lessor  and/or a  fundamental  breach of the
            Management Agreement by the Management Company.

      7.3   On any delay in payment of the Rent,  the Lessee  will also pay,  in
            addition  to the Rent with the  addition  of linkage  differentials,
            interest on arrears at the  interest  rate  collected by the Bank on
            authorized  debit  balances  in  current  debit  accounts  with  the
            addition of 0.05% for each day's arrears  (hereafter:  the "INTEREST
            ON  ARREARS"),  for the entire period of the arrears (from the first
            day).  The  written  authorization  of the Bank of the amount of the
            said  interest  will be deemed as absolute  proof in the matter.  No
            payment of interest as aforesaid  will in any way derogate  from the
            Lessor's right to any other relief specified in this Contract and/or
            in law for breach of the  Contract  for any delay in the payment and
            receipt of the interest as aforesaid and it will not be  interpreted
            as a  waiver  on the  part of the  Lessor  of any  other  relief  as
            aforesaid.

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                                       8

            Despite the aforesaid, a delay of up to 21 business days in making 2
            payments  on account of the Rent in each year of the  Tenancy,  will
            not be deemed to be a delay in pursuance of this clause.

8.    OTHER PAYMENTS

      8.1   In  addition to the Rent and value  added tax as stated  above,  the
            Lessee will be responsible for making all the following  payments on
            their due date and in full and will execute the following operations
            in connection with and/or concerning the Rented Premises  throughout
            the entire Period of the Tenancy.

            8.1.1 General  municipal  rates and/or  business rates and any other
                  taxes,  charges,  levies  and  compulsory  payments,   whether
                  governmental  or municipal,  of any sort whatsoever that apply
                  to and/or that may in future  apply in law, to the user and/or
                  the occupant of the Rented Premises, including business taxes,
                  signboard  tax and/or  charge and payments  for licenses  that
                  apply to the  Lessee,  and they will be paid by the  Lessee on
                  the  legal   date  on  which  they  are  to  be  paid  to  the
                  authorities.

            8.1.2 Any tax, charge or compulsory  payment,  whether  municipal or
                  governmental,  of any sort that  applies to the conduct of the
                  Lessee's business at the Rented Premises.

            8.1.3 All  payments  to the  Lessor  for use of the  parking  lot in
                  accordance  with the  provisions  of  clause 5 of the  Special
                  Terms Appendix (Appendix II to this Contract).

            8.1.4.Payments for water,  electricity and telephone supplied to the
                  Rented  Premises  and/or  for  the  facilities  in the  Rented
                  Premises  and/or for the  Lessee's  use thereof as well as any
                  other  payment  and/or  additional  expenses  for the services
                  supplied to the Rented Premises.

            8.1.5 All the  payments  and debts that apply to the Lessee and that
                  he  is  to  pay  and/or  pay  to  the  Management  Company  in
                  accordance  with  the  provisions  of  this  Contract  and the
                  provisions  of the  Management  Contract  (Appendix IV to this
                  Contract)  that  is to be  signed  by the  Lessee  as a  prior
                  condition for the inception of this Contract for a Lease.

            8.1.6 The Lessee will pay the Lessor or to the Management Company as
                  part of the management  fees, his relative share (according to
                  the area of the  Rented  Premises  pro rata to the area of the
                  Building  and/or  the  Project,  as is  relevant)  the cost of
                  insuring the Building and Third Party  Liability in connection
                  with the Building,  immediately on and in accordance  with the
                  Lessor's demand.

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                                       9

      8.2   Property tax and compensation fund and any other compulsory  payment
            that applies and/or that may apply and/or is imposed and/or that may
            be  imposed  in the  future  on  property  owners as  distinct  from
            occupants  of  property,  will  apply to and be paid by the  Lessor,
            unless otherwise determined in this Contract or in any such law that
            may be published.

      8.3   The Lessee  undertakes to give notice in writing to the Petah Tikvah
            Municipality  and to the  Electric  Corporation  of his lease of the
            Rented Premises and to ensure the transfer of accounts for municipal
            taxes,  water and  electricity and any other payment that applies to
            the Rented  Premises into the name of the Lessee.  At the end of the
            Period of the Tenancy,  the Lessee will return these accounts to the
            name of the Lessor.

      8.4   The Lessee will make all the payments,  on their due date of payment
            that are imposed on him as aforesaid. Without prejudice to the above
            obligation,  in any case of a delay in  payment,  the Lessee will be
            responsible also for all the fines, (including interest on arrears),
            linkage and all the other  expenses that are imposed  because of the
            delay.

      8.5   At the demand of the Lessor,  at any time,  the Lessee will  present
            him with all the  authorizations  and  receipts  that testify to the
            payment  of all the taxes and  payments  that apply to the Lessee in
            pursuance of this Contract,  in full and on the due date. The Lessor
            may,  after  giving  prior  notice  of 7 days,  make  all the  above
            payments or part  thereof  instead of the Lessee and the Lessee will
            be  obligated  to return  their  linked value to the Lessor with the
            addition of interest on arrears as specified above in clause 7.3.

      8.6   In the event that the Lessor makes any payment, for whatever reason,
            that  according to the  provisions of this  Contract  applies to the
            Lessee - the  Lessee  will be bound to repay the Lessor any sum that
            the Lessor has paid as aforesaid,  immediately on the Lessor's first
            demand,  such payment being Index - linked from the date that it was
            paid by the  Lessor  until  the  date of its  return  in full to the
            Lessor.  If the  amount  demanded  is not  paid,  either  in full or
            partially,  within 7 days of the Lessor's  demand as aforesaid,  the
            sum will  bear  interest  on  arrears  in  addition  to the  linkage
            differentials  as stated above,  interest on arrears being as stated
            above in clause 7.3.

9.    DIVISION OF THE RENTED PREMISES

      9.1   The Lessee, by means of contractors and/or professionals  working on
            his behalf, will, at his own expense,  divide the Rented Premises as
            specified below in this clause.

            All  the  work  involved  in the  internal  division  of the  Rented
            Premises  and  adapting  the premises to the purpose of the lease in
            accordance  with the Technical  Specification  (Appendix III to this
            Contract) and the internal  planning that is to be undertaken by the
            Lessee as specified below, will be known hereafter as: the "WORK FOR
            DIVISION OF THE RENTED PREMISES".

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                                       10

      9.2   The Work for  Division  of the Rented  Premises  will be carried out
            according  to the  internal  plans that are to be made by the Lessee
            and at his expense,  by means of an architect  and advisors  that he
            will hire for this  purpose as specified  below in this clause,  and
            that will be approved by the Lessor and the  advisors who were hired
            in the  planning  of the  systems in the  Building  (hereafter:  the
            "INTERIOR  DESIGNS").  The Interior  Designs  will be completed  and
            forwarded for the approval of the Lessor who may give his consent or
            refuse to give his consent,  at his sole  discretion,  on reasonable
            grounds  that will be given in  writing.  The  Lessor  will give his
            answer  within 7 days of the date of  submission  of the designs for
            his approval. If the Lessor should refuse to give his consent to the
            Interior  Design,  he will  notify  the  Lessee of his  reservations
            regarding  the designs that were  presented for his approval and the
            Lessee  will  amend the  designs  in  accordance  with the  Lessor's
            comments  and will  present  them once again for the approval of the
            Lessor.  If the Lessor should  refrain from approving the designs or
            from  giving  notice  of  his  refusal,  the  date  of  transfer  of
            possession will be delayed by the number of additional days required
            for receipt of the Lessor's approval. In the event of a delay in the
            Lessor's demands that the Lessor may raise at the time of receipt of
            previous  designs by the Lessee  (hereafter these will be called the
            "Partial  Comments")  the date of  transfer  of  possession  will be
            delayed  by the  number of days that have  elapsed  from the date on
            which the Lessor communicated his Partial Comments until the date on
            which the Lessor communicates his comments in full.

      9.3   The  Lessor  will  contribute  a sum of NIS  660 per  square  meter,
            inclusive,  to the  Lessee's  expenses for  undertaking  the Work of
            Division of the Rented Premises.  The Lessor's  contribution will be
            against  presentation of receipts for the work that is to be carried
            out in  accordance  with the  designs  approved by the Lessor and it
            will be paid by the Lessor  directly to the  contractors who carried
            out this work.  Payment in  pursuance  of this  clause  will be made
            immediately  on  presentation  of the accounts for 563 square meters
            and payment  for 71 square  meters will be made before 8 months have
            expired  from the  inception  of the  Tenancy  in the event that the
            Option Period is not exercised,  the Lessee will return a sum of NIS
            35,200 to the Lessor as a refund of the Lessor's contribution to the
            Lessee's  expenses  for  fitting  the  Rented  Premises.   The  sums
            prescribed  in this  clause  will be  linked to the  Consumer  Price
            Index.  It is made clear that the day of commencement to all intents
            and purposes, including the payment of the rent will be deemed to be
            the date of de facto  transfer of possession of the Rented  Premises
            to the Lessee or the date on which the  Lessee was to have  received
            possession   and  did  not  accept   possession   contrary   to  his
            undertakings  in  pursuance  of  this  Contract,  whichever  is  the
            earlier,  this  being even if any work has been  carried  out by the
            Lessee  in the  Rented  Premises  and  even if he does  not make use
            and/or it is not possible to make use of the Rented Premises,  inter
            alia, because the work was not completed.

<PAGE>
                                       11

10.   TRANSFER OF POSSESSION OF THE RENTED PREMISES

      10.1  The Lessor will transfer  possession  of the Rented  Premises to the
            Lessee (hereafter: the "DATE OF TRANSFER OF POSSESSION") on the date
            of sending  notice to the Lessee of the  inception  of the Period of
            the Tenancy and no later than April 1, 2005. The date of transfer of
            possession  will also be deemed to be the date of the  inception  of
            the Period of the Tenancy.

      10.2  If, as a result of factors that are  dependent on the Lessor  and/or
            that are under his control, there are interruptions or delays in the
            Work for  Division of the Rented  Premises,  the date of transfer of
            possession  in this  Agreement  will be delayed and will be extended
            for a period of time  that is equal to that for which the  aforesaid
            interruptions or delays continued.

      10.3  In order to carry out the Work for Division of the Rented  Premises,
            the  Lessor may enter the Rented  Premises  to carry out  completion
            works only without this being deemed to be transfer of possession of
            the Rented  Premises  providing  that prior to this,  the Lessee has
            delivered   the  Bank   Guarantee,   Appendix   VI,  the   Insurer's
            Certificate,  Appendix  V and a signed  copy of this  Contract.  The
            status of the Lessee  during the period of carrying out the Work for
            the Division of the Rented Premises will be the status of a licensee
            and the Lessor may cancel this  permission  at any time in the event
            of a violation of the provisions of this Agreement.

      10.4  A delay in the  transfer  of the Rented  Premises  that is caused by
            factors  that are not under the  control of the Lessor as  specified
            below in this  Contract  as well as a delay  of up to 14  (fourteen)
            days in the transfer of the Rented Premises from the date prescribed
            above as the  estimated  date of  transfer of  possession,  will not
            constitute  a breach of the Lessor's  undertakings  to the Lessee in
            pursuance  of this  Contract  and will not entitle the Lessee to any
            remedy.  A delay in excess of 14 days in the  transfer of the Rented
            Premises  because  of  factors   controlled  by  the  Lessee,   will
            constitute a fundamental breach of this Agreement.

11.   THE MANAGEMENT COMPANY

      11.1  The Lessee  declares and confirms that he is aware that the Building
            will be managed and operated by the Management  Company that will be
            charged  with the  management  of the  provision  of services to the
            Building.  On the date and on the occasion of signing this Contract,
            the Lessee will sign the  Management  Contract in the Wording of the
            Management  Contract  (Appendix IV to this  Contract)  and will also
            sign  any  alteration  or  update  or  amendment  of the  Management
            Contract on the instructions of the Management Company.

      11.2  The Lessee  undertakes to pay the management  fees tithe  Management
            Company on the due dates as  specified  in the  Management  Contract
            (Appendix IV to this  Contract) with the addition of value added tax
            as due, on the dates and on the terms  specified  in the  Management
            Contract.

<PAGE>
                                       12

      11.3  All the payments  that the Lessee is bound to pay to the  Management
            Company  will be paid by the  Lessee on the date of payment up until
            11:00 hr. in the  morning,  by delivery of checks  postdated  to the
            start of every  half year (and in such event the  reconciliation  of
            the account will take place  immediate after the de facto payment of
            every check) or by bank transfer as agreed between the Parties.

      11.4  In order to enable the  Management  Company to carry out its duties,
            the Management  Company  and/or those acting on its behalf,  may, on
            agreement  and as  coordinated  in  advance,  and in any  emergency,
            without  coordinating  in advance  and  without  consent)  enter the
            Rented Premises, and inter alia: to open up walls, floors,  ceilings
            and other parts, to replace,  to repair and to assemble plumbing and
            pipes and to connect them, to carry out any work that is required at
            the discretion of the  Management  Company to carry out its work. In
            as far as is possible, the Management Company will inform the Lessee
            in  advance  of the  date of entry of its  employees  to the  Rented
            Premises and will also insure that the disturbance to the Lessee and
            his operations on the Rented  Premises will be as slight as possible
            so that it will be  possible to use the Rented  Premises  and access
            roads to the Rented  Premises and that the Rented  Premises  will be
            restored, as far as is possible,  to their former condition.  Damage
            that may be caused to the Rented  Premises  as a result of this work
            and that is not repaired by the Management  Company will be repaired
            by the Landlord within a reasonable  time.  Damage that prevents use
            of the  Rented  Premises  for the  Purpose  of the  Tenancy  will be
            repaired immediately.

      11.5  A  breach  of any of the  Lessee's  undertakings  to the  Management
            Committee will be deemed as a breach of the Lessee's undertakings to
            the Lessor in pursuance of this Contract and  non-payment on the due
            date of any payment that is due to the  Management  Company from the
            Lessee will be regarded as  non-payment  of the rent on the due date
            and will entitle the Lessor to all the remedies conferred on him for
            a breach as aforesaid.  A breach of any of the Management  Company's
            undertakings  to the  Lessee  will  be  deemed  as a  breach  of the
            Lessor's  undertakings  to the Lessee in pursuance of this  Contract
            and will entitle the Lessee to all the remedies conferred on him for
            a breach as aforesaid.

      11.6  The  Management  Company  will  have a direct  right  to  claim  the
            fulfillment of the Lessee's  undertakings to the Management  Company
            in addition to the Lessor's  rights to sue the Lessee on the grounds
            of a breach of the Lessee's undertakings to the Management Company.

      11.7  This clause is a fundamental  clause of the Contract,  the breach of
            which constitutes a fundamental breach.

12.   PARKING PLACES IN THE BUILDING

      The Lessee will be granted the right to use the underground parking of the
      Building  and/or the parking areas within the  boundaries of the Land, for
      parking vehicles according to and subject to the conditions of the Special
      Terms Appendix (Appendix II to this Contract).

<PAGE>
                                       13

13.   MANNER OF USE OF THE RENTED PREMISES

      13.1  Without  derogating  from the Lessee's  obligation to use the Rented
            Premises  solely for the  operation  of his  business  as  described
            according  to the  Purpose  of the  Tenancy  as  specified  in  this
            Contract and  according to the law, the Lessee  undertakes to comply
            with all the laws,  regulations,  orders and bye-laws  that apply to
            the Rented  Premises,  its  occupation,  the use thereof and all the
            operations that are carried out therein, and also to comply with any
            reasonable  demands or  instructions  of the  Management  Company in
            connection  therewith  in  accordance  with the  provisions  of this
            Contract and the Management Contract (Appendix IV to this Contract),
            as may be applicable from time to time.

      13.2  The Lessee  undertakes to take strict care of the good  condition of
            the Rented  Premises and the  cleanliness of its close  surroundings
            and facilities, other than for reasonable wear and tear, for the use
            and  conduct of his  business  only  within the limits of the Rented
            Premises  and not to cause and not to allow to be  caused  any pest,
            nuisance,  trespass,  noises,  odors,  shocks,  pollution,  smoke or
            unpleasantness  to  visitors  to the  Building  and to  other  users
            thereof,  that exceed reasonable  limits, in paying attention to the
            nature of the  Rented  Premises  and the close  surroundings  of the
            Rented Premises.  The Lessor undertakes to take strict care that the
            Building be kept in a clean state  including its public  areas,  and
            not to cause and not to allow to be caused  any pest,  or  nuisance,
            trespass,   noises,  odors,  shocks,   pollution,   smoke  or  other
            unpleasantness to the Lessee and/or those acting on his behalf, that
            exceed reasonable limits.

      13.3  The Lessee is liable to the Lessor for the fact that  members of the
            public  that visit the Rented  Premises  will not in any way disturb
            the regular and normal operations in the Building and will be liable
            for any damage that may be caused by any person acting on his behalf
            to the  Building  or  the  other  occupants  /  unit  owners  of the
            Building.

      13.4  Without   derogating   from  any   prohibition  or  other  provision
            concerning  the Lessee's  obligation  to use the Rented  Premises in
            accordance with the law and to obtain all the licenses  required for
            the conduct of the  Lessee's  business on the Rented  Premises,  the
            Lessee declares that he is aware of the solemn  prohibition  against
            using sources of energy and fuel in the Rented  Premises  and/or the
            Building (other than electricity) and storage of toxic and dangerous
            materials without a valid license.

14.   PROTECTION OF THE RENTED PREMISES AND THEIR REPAIR

      14.1  The Lessee  undertakes to use the Rented  Premises in a cautious and
            reasonable  manner and to maintain its interior in a clean condition
            and to be  responsible  for all the expenses  that this  involves in
            accordance  with the  provisions of this Contract and the provisions
            of the  Management  Contract  (Appendix  IV to  this  Contract)  and
            without  derogating  from the general nature of the  aforesaid,  the
            Lessee undertakes as follows:

        14.1.1  To hold and maintain the Rented  Premises and its systems,  in a
                regular manner, throughout the entire Period of the Tenancy, and
                to keep them in a good condition and in good repair,  the Lessee
                is liable  for any normal  and  reasonable  wear and tear to the
                Rented Premises but is not liable for normal and reasonable wear
                and tear to the plumbing, electricity systems, etc.

        14.1.2  To use the Rented  Premises in a cautious and reasonable  manner
                that is consistent with the Purpose of the Tenancy.

        14.1.3  Not to perform  any act or  omission  that may injure the Rented
                Premises or its systems.

        14.1.4  To inform the Lessor and the  Management  Company of any defect,
                damage or  deterioration  of the Rented  Premises  and/or to its
                systems, immediately it occurs.

        14.1.5  Not to store and/or to place heavy loads and/or equipment and/or
                any other object  weighing in excess of the permitted  load (750
                kg.  per  square  meter or other  weight  of  which  the  Lessor
                notifies the Lessee in writing) in the Rented Premises and/or in
                the Building. If the Lessee has an object in storage and/or uses
                heavy objects,  he will apply in writing to the Lessor to inform
                him of the fact and to obtain the Lessor's instructions, without
                this placing any undertaking and/or liability  whatsoever in the
                matter on the Lessor as to the manner of the  placing  the loads
                if the Lessor has indeed  given his consent to the  placement of
                heavy objects.

        14.1.6  Not to operate in the Rented Premises any system whatsoever that
                is  operated  by gas  combustion  without a valid  license.  The
                insurance  of the  Lessee's  operations,  as specified in clause
                18.2.3 will include use of gas combustion.

        14.1.7  Not to keep any materials, tools, equipment or other chattels in
                the entrance to or outside the Rented Premises, including in the
                elevator  lobbies on the various floors.  The Lessee may not use
                any other part of the Building for any purpose  whatsoever other
                than use of the Rented Premises only and use of the parking area
                for parking vehicles, all in accordance with that stated in this
                Contract  and its  Appendices,  and other than use of the public
                areas of the  Building  for purposes of erecting a gas depot and
                air  conditioning  units,  all in  the  location  that  is to be
                determined  by the  Lessor  in  accordance  with  the  Technical
                Specification  and the  requirements  for  access to the  Rented
                Premises.

        14.1.8  Without derogating from the aforesaid,  the Lessee undertakes to
                remove refuse from the Rented Premises, whether independently or
                by means of cleaning contractors acting on his behalf,  directly
                to the  refuse  compressors  that will be placed in the  garbage
                room  in the  public  areas  of  the  Building  at a  reasonable
                distance from the Rented Premises and in a suitable quantity and
                to them only,  to keep the  garbage  room clean and not to place
                and/or  store  and/or keep  anything in the garbage  room and/or
                around the refuse compressors.  Similarly, the Lessee undertakes
                that to the extent that in future a garbage  recycling system is
                operated for example,  cardboard  boxes,  glass and the like, to
                carry out all the requirements of the authorities in the matter,
                including  separating and sorting the types of garbage,  to fold
                the  cardboard  boxes before  putting  them into the  collection
                points and to ensure  that there is no other  refuse  other than
                the specific garbage at the collection point designated for that
                garbage.

<PAGE>
                                       15

      14.2  The  Lessee is aware of the fact that a  general  mailbox  system is
            planned for the  Building as well as a general  signboard  system in
            the entrance lobby and in the  elevators.  The cost of the signboard
            and of the  mailboxes  will  be the  responsibility  of the  Lessor.
            External  signboards will not be placed other than if the Lessee has
            obtained the  Lessor's  consent in writing to do so and has obtained
            all the legally required  permits  including a permit from the Petah
            Tikvah  Municipality.  The Lessee will bear the cost of the external
            signboard.

      14.3  The Lessee  undertakes  not to hang signs and/or notices of any sort
            whatsoever  on the  facade of the Rented  Premises  or in the public
            areas of the  Building,  including  in the  elevator  lobbies on the
            various floors and/or on the external  walls of the Rented  Premises
            or on any external or other parts of the Building,  other than if it
            was  intended for that stated and only in the place  designated  for
            that and as is to be  approved  in  advance  and in  writing  by the
            Lessor and the  Management  Company.  Similarly,  the Lessee may not
            install  mail boxes and/or a private  intercom  system other than an
            intercom  system  that  connects  between  the  parts of the  Rented
            Premises.

      14.4  The  Lessee  will not  install  antennae  and/or  dishes of any sort
            whatsoever in the Rented  Premises and/or in the public areas of the
            Building  unless he has obtained the prior consent in writing of the
            Lessor.  The Lessee  undertakes  that any antenna and/or dish of any
            sort  whatsoever  that he may  assemble  in the  Building  will  not
            disturb the transmissions of other users of the Building.

      14.5  In the event that in accordance with the provisions of the Technical
            Specification  (Appendix  III to this  Contract),  should the Lessor
            build a  kitchenette  for the Lessee within the limits of the Rented
            Premises,  the  kitchenette  that the Lessor will  construct for the
            Lessee in the Rented  Premises  (if built)  will be  designated  for
            storage  of  cold  drinks,  preparation  of hot  drinks  (electrical
            heating  only)  sandwiches  and light food only.  The Lessee  hereby
            undertakes not to use gas or an open flame in the kitchenette or any
            part of the Rented Premises.

<PAGE>
                                       16

      14.6  The Lessor  and/or the  Management  Company  and/or  those acting on
            their  behalf  may enter the  Rented  Premises  at any time and at a
            reasonable hour in coordination with the Lessee to inspect the state
            of the Rented Premises and to carry out repairs,  work, technical or
            other  arrangements  for other parts of the  Building and the Lessee
            undertakes to allow the Lessor and/or the Management  Company and/or
            those acting on their  behalf to enter the Rented  Premises for this
            purpose,  providing that it is not detrimental to the reasonable use
            of the Rented  Premises and the access roads thereto.  The aforesaid
            will not place any  obligation  whatsoever  on the Lessor and/or the
            Management  Company  to carry  out any of the  operations  mentioned
            above.

      14.7  The Lessee is aware that the  Management  Company may demand that at
            any time to be in  possession  of a master  key to all floors in the
            Building.  In this event,  the Lessee  undertakes  to give notice of
            changing the lock and to give the  Management  Company a copy of the
            key if the lock to the Rented  Premises  or to the  entrance  of the
            Lessee's floor is changed.  The Management Company undertakes to the
            Lessee  not to use the said key other than in the event of danger to
            the Rented Premises or to other parts of the Building.

      14.8  The Lessee will be liable to repair, at his expense and immediately,
            any damage  and/or  spoilage  and/or  loss that may be caused to the
            Rented  Premises  and/or to its systems  (hereafter  in this clause:
            "DAMAGE")  that is derived from improper use of the Rented  Premises
            and/or  as the  result  of  negligence  or malice on the part of the
            Lessee or his  visitors  and/or his  clients  and/or  his  employees
            and/or anyone who may enter the Rented  Premises and to replace,  at
            his own expense and  immediately,  any fitting  that is installed in
            the Rented  Premises that is lost or destroyed with another  fitting
            that resembles it in nature and in quality.

            The maintenance of the Rented  Premises,  its systems,  ceilings and
            windows will be carried out exclusively by the Management Company in
            accordance  with and  subject  to the  terms and  provisions  of the
            Management Contract (Appendix IV to this Contract).  The contents of
            this clause will not impose any obligation  whatsoever on the Lessor
            in the matter of  maintaining  the Rented  Premises  in good  order,
            other than as specified in this Agreement.

      14.9  The Lessor undertakes to repair any damage that may be caused to the
            Rented  Premises  as a result  of  reasonable  wear and tear that is
            derived  from  normal  use of and/or as a result of  defects  in the
            Rented   Premises   including   the   plumbing,    electricity   and
            air-conditioning  systems,  within seven days of the date of receipt
            of notice of the fact from the  Lessee.  In any event of damage that
            does not allow the  Lessee to  conduct  his  business  on the Rented
            Premises  and disrupts his normal  work,  the Lessor  undertakes  to
            repair the damage soon after  receiving  the notice from the Lessee.
            If the Lessor does not act as aforesaid,  the Lessee may, but is not
            so obligated,  do so at the expense of the Lessor  providing that he
            has  notified  the  Lessor in writing of his intent to do so and the
            Lessor  undertakes  to indemnify and  compensate  the Lessee for any
            payment  and/or  expense  and/or damage that the Lessee suffers as a
            result  thereof on a demand and the amount of the  indemnity  and/or
            the compensation will be linked to the Index and in the event of any
            delay that  exceeds 30 days in making the  payment,  that it will be
            bear interest on arrears as stated in clause 7.3 above.

<PAGE>
                                       17

      14.10 If the  Lessee  does  not  carry  out the  repairs  to  which  he is
            obligated  as  aforesaid,  or has not changed any fitting that he is
            obliged to change as stated,  within 10 days of the date on which he
            was to have repaired or replaced  them (as is relevant),  the Lessor
            may, but is not obligated to, do so at the expense of the Lessee and
            the Lessee undertakes to indemnify and compensate the Lessor for any
            payment  and/or  expense  and/or damage that the Lessor suffers as a
            result thereof on demand and the amount of the indemnity  and/or the
            compensation  will be  linked  to the  Index and in the event of any
            delay that  exceeds 30 days in making the  payment,  that it will be
            bear interest on arrears as stated in clause 7.3 above.

      14.11 The  Lessee  undertakes  to allow the Lessor  and/or the  Management
            Company  and/or  those  acting on their  behalf to repair  damage as
            aforesaid.  In repairing  the damage as  aforesaid,  the Lessor will
            refrain,  as far as  possible in the  circumstances,  from acting in
            detriment  to the  reasonable  use of the  Rented  Premises  and the
            access  roads to the  Premises  and the Lessor will do his utmost to
            ensure that any damage that may be caused to the Lessee,  will be as
            slight as possible, that the duration of carrying out the operations
            will be as short  as  possible,  in  taking  account  of the type of
            damage and its extent.

15.   ALTERATIONS TO THE RENTED PREMISES

      15.1  During the Period of the Tenancy,  the Lessee undertakes not to make
            any  alteration to the Rented  Premises and not to make any addition
            and not to demolish any part without  obtaining the prior consent in
            writing of the  Management  Company and the Lessor.  The  Management
            Company or the Lessor or those  acting on their behalf may refuse to
            grant their  consent on  reasonable  grounds.  If the consent of the
            Lessor is granted as aforesaid,  the alteration  will be carried out
            by the Lessee,  on his  responsibility  and at his  expense.  In the
            absence of the consent of the Management  Company and/or the Lessor,
            these former may prevent the execution of any act as  aforesaid,  at
            any time,  and remove or demolish any alteration or addition that is
            made contrary to that stated in this clause. A breach of this clause
            on the part of the Lessee  will  confer on the Lessor the right,  in
            addition  to  any  other  or  additional  remedy  and/or  relief  in
            accordance  with the  provisions of this Contract  and/or in law, to
            cancel the Contract  and in such case,  the Lessor will be entitled,
            if he  exercises  this  right,  to the fact that all the  additions,
            repairs  and  alterations  that were made in breach of the  Contract
            will be owned by him without him being obligated to make any payment
            for them whatsoever.
<PAGE>
                                       18

      15.2  If the Lessor has not given the Lessee prior  approval in writing in
            accordance  with the Lessee's  request (that is to be in writing) to
            introduce the above  alterations to the Rented Premises and that are
            itemized in that document and approved (if granted) explicitly,  for
            there to be no need to restore the Rented  Premises to their  former
            state on  vacating  by the  Lessee,  the  Lessee,  at the end of the
            Period of the Tenancy  for any reason  whatsoever  will  restore the
            Rented Premises to their former state as before the alterations were
            carried out and so that the Rented  Premises  are in good and proper
            order as they were in on the date that he received  them on the date
            of  inception  of the Tenancy  other than for normal and  reasonable
            wear and tear.

            If it is agreed to leave the  alterations  without  there  being any
            need to restore the Rented  Premises to their  previous  state,  the
            Lessee may not remove  them from the Rented  Premises  or to restore
            the  alterations or any part of them that it was agreed would remain
            in the Rented Premises or make any change  whatsoever  thereto,  and
            they  will  pass  at the end of the  Period  of the  Tenancy  to the
            possession  and  ownership  of the Lessor,  without the Lessee being
            able to demand and/or receive  compensation or any payment for them.
            In order to dispel  any  doubt,  it is hereby  made  clear  that the
            aforesaid  does not apply to the Lessee's  equipment  and  furniture
            that is not  permanently  affixed  to the  Rented  Premises  and the
            removal of which will not cause any  irreparable  physical or visual
            damage to the Rented  Premises and that was in fact installed by the
            Lessee.

      15.3  If the  Lessor  does not agree to  leaving  the  changes or any part
            thereof,  as may be relevant,  in the Rented Premises,  as aforesaid
            and the Lessee does not  restore the Rented  Premises to their state
            before the alterations  were carried out, the Lessor may, but is not
            obligated to, restore the Rented  Premises to their former state and
            the Lessee will pay the Lessor  within 7 days of the Lessor's  first
            demand,  all the  sums  that the  Lessor  has  spent  in  connection
            therewith,  with the addition of interest on arrears as specified in
            clause 12 above.

16.   LICENSES AND COMPLIANCE WITH ALL PROVISIONS OF THE LAW

      16.1  During the entire  Period of the Tenancy and the Option  Period,  if
            exercised,  the Lessee  undertakes  to conduct  his  business in the
            Rented  Premises within the framework of the Purpose of the Tenancy,
            in accordance  with the  provisions  of any law including  bye-laws,
            orders,  regulations  and urban  planning  schemes and in accordance
            with all the licenses,  permits and  authorizations  required in law
            from the authorities and/or governmental, municipal or other bodies,
            including a permit from the quality of the  environment  unit of the
            Petah Tikvah  Municipality  that are required (if at all) in law for
            the conduct,  management and operation of his business on the Rented
            Premises (hereafter in this clause - the "LICENSES").

            The Lessee will refrain  from any act or omission  that is likely to
            constitute a breach of the said provisions or a violation thereof.

<PAGE>
                                       19

      16.2  The Lessee  undertakes  that from the inception of the Period of the
            Tenancy and  throughout  the Period of the Tenancy and/or the Option
            Period,  if exercised,  he will be in possession of all the licenses
            that he  requires  in law at that  time  and that he will pay at the
            request of each authority,  any tax, levy or charge that constitutes
            a condition for receipt of the licenses as stated. In the event that
            the Lessee,  for any reason whatsoever is not in compliance with any
            undertakings as aforesaid,  this will not constitute cause to cancel
            the  Contract  and the Lessee will be  obligated  to  indemnify  and
            compensate  the Lessor for any damage that the Lessor may incur as a
            result of the Lessee's  failure to comply with his  undertakings  as
            stated, immediately on demand.

      16.3  The   Lessee's   failure  to  obtain  the   licenses   and/or  their
            cancellation  at any time  whatsoever will not in any way reduce the
            Lessee's  undertakings  for payment of rent during the Period of the
            Tenancy  and/or  the  Option  Period,  if  exercised,  all as may be
            relevant.

      16.4  The Lessee undertakes to indemnify the Lessor for any damage that he
            may  suffer  and/or  that he is  forced  to bear and any  obligation
            and/or  payment that he is forced to bear,  including the principal,
            interest  and  linkage   differentials  and  including  but  without
            derogating from the general nature of the aforesaid,  any obligation
            in pursuance of a judicial  ruling,  expenses and lawyers' fees as a
            result of a breach of this  clause on the part of the Lessee and any
            user on the Lessee's  behalf of the Rented  Premises in pursuance of
            the  provisions of this  Contract,  whether the Lessor is sued alone
            and/or jointly with others, within 7 days of the date on which he is
            asked to do so by the Lessor, providing that the Lessee was given an
            opportunity to defend any such claim and/or demand.

      16.5  In order to dispel any doubt,  it is explicitly  emphasized that the
            responsibility  to obtain any  authorization,  permit and license as
            aforesaid,  applies  exclusively  to the  Lessee and in the event of
            failure  to  obtain  an  authorization,  permit  and/or  license  as
            aforesaid or if he is divested of them, the Lessee will not have any
            right to cancel the Lease or to terminate the Tenancy before the end
            of the Period of the  Tenancy in  pursuance  of this  Contract.  The
            Lessor   will   cooperate   with  the   Lessee  to  obtain  all  the
            authorizations  and/or  licenses  that are  required,  providing the
            Lessor  does not  bear any  liability  and/or  additional  financial
            obligation.

      16.6  The   Lessee's   undertakings   in  pursuance  of  this  clause  are
            fundamental  undertakings  and  breach  of any or all of  them  will
            constitute a fundamental breach of this Contract.

17.   THE LESSEE'S LIABILITY

      17.1  The Lessee will be liable for any damage of any sort whatsoever that
            the Lessee and/or the Building and/or the Rented Premises and/or any
            third  party that is present  in the Rented  Premises  and/or in the
            Building  may suffer and that is derived  from acts or  omissions on
            the  part  of  the  Lessee,  including  acts  and  omissions  of his
            employees,  his  invitees,  his clients  and  persons  acting on his
            behalf  and/or as a result of the  conduct  of his  business  on the
            Rented  Premises.  It is hereby  made  clear  that the Lessee is not
            liable  for  damage  that may be  caused  as a result  of a fault or
            defect in the Rented Premises.

<PAGE>
                                       20

      17.2  The Lessor will not bear any liability and/or obligation  whatsoever
            for  damage  of any sort  whatsoever  that  the  Lessee  and/or  his
            employees  and/or his clients  and/or his invitees  and/or any other
            person  that is present on the Rented  Premises or who is on his way
            to or from the Rented  Premises  other than  damage as a result as a
            fault or defect in the Rented  Premises \ and the Lessee accepts all
            the responsibility vis-a-vis the Lessor for damage of this sort.

      17.3  The Lessee undertakes to compensate and indemnify the Lessor for any
            loss and/or damage and/or  expense that the Lessor may incur because
            of a claim  filed by or against  the  Lessor,  whether  criminal  or
            civil,  whether before a Court of Law, a tribunal or other judiciary
            body,  whether by way of a judgment  or in any other way, in as much
            as the said claim is derived from the non-fulfillment or a breach of
            the Lessee's undertakings in this Contract or is derived from damage
            for which the Lessee is liable in accordance  with the provisions of
            this  Contract.  The Lessor will inform the Lessee of any such claim
            and will enable the Lessee to defend it.

      17.4  The Lessee will refrain from  committing  or allowing or  tolerating
            any act or omission on the Rented  Premises  that is liable to place
            any  liability in torts  and/or in law on the Lessor  and/or that is
            liable to increase in any form  whatsoever  the  Lessor's  insurance
            costs or those of the Management Company.

      17.5  If any  damage  should be caused by the  Lessee  that  results  in a
            demand  or claim of any sort  whatsoever,  by any body or  competent
            authority, liability for the damage will be placed on the Lessee and
            solely on him.  Without  derogating  from the general nature of that
            stated above, the Lessee will be liable  vis-a-vis  governmental and
            municipal authorities for the payment of any fines whatsoever as the
            result  of the  failure  to  comply  with  such  provisions  of this
            Contract that apply to the Lessee.

18.   INSURANCE

      18.1  Without  derogating  from the Lessee's  liability as stated above in
            clause 17, and in accordance  with the provisions of law, the Lessee
            undertakes to insure, at his own expense, the contents of the Rented
            Premises, his business, the additions and improvements made and that
            may be  made  to  the  Building  of  the  Rented  Premises  and  its
            facilities  and the activity on the Rented  Premises,  to their full
            value on a  "replacement"  basis and the  insurance  values  will be
            updated from time to time as needed and against all possible  risks,
            that are  recognized,  accepted and  customary,  with a licensed and
            reputable insurance company. Without prejudice to the general nature
            of the  aforesaid,  the  Lessee  hereby  undertakes  to  insure  the
            contents of the Rented Premises against fire, larceny, theft, forced
            entry  or  ordinary  loss,  breakage  of  glass,  flood,  mechanical
            breakdown  and  water  damage of any  sort,  all at the  replacement
            value.

<PAGE>
                                       21

            The Lessee  undertakes  to update the sums insured from time to time
            so that they will  always  reflect  the full  value of the  property
            insured as stated in this clause.

      18.2  The Lessee also undertakes to insure, at his expense, his operations
            in the Rented Premises as follows:

        18.2.1  Liability  insurance  policies  for the Rented  Premises and the
                business  conducted  therein and for the  Lessee's  operations -
                that will  cover the  Lessee's  liability,  the  Lessor  and the
                Management  Company vis-a-vis any person as a result of a bodily
                injury or an injury to property or to financing that occurred in
                connected  with  the  Rented   Premises  and/or  the  operations
                conducted  at  the  Rented  Premises  or  in  the  Building  and
                connected with the Lessee's business. The insurance to cover the
                Lessor's  liability and that of the  Management  Company will be
                solely in  connection  with  injury to the  person,  property or
                financing that occurred to the Lessor or the Management  Company
                because of the Lessee's operations.

        18.2.2  The limits of liability in the Third Party Liability  Policy for
                injury to the  person and to  property  will be no less than the
                limits of liability  prescribed  in the Special  Terms  Appendix
                (Appendix II to this Contract).

        18.2.3  Employers Liability Insurance.

        18.2.4  The limits of liability  in the  Employers  Liability  Insurance
                will be no less than the limits of liability  prescribed  in the
                Special Terms Appendix (Appendix II to this Contract).

        18.2.5  To cover loss of profits and any  consequential  loss because of
                damage caused to the Rented Premises or its contents.

      18.3  The Lessee  hereby  undertakes to add the names of the Lessor and or
            the  Management  Company  as  additional  insureds  in the  policies
            mentioned  above in clause 18.2 and will include a first degree lien
            clause in favor of the Lessor and the Management Company. Other than
            the  aforesaid  lien,  the  Lessee  may  not  pledge  the  insurance
            policies.

      18.4  The Lessee will  ensure that an express  clause will be added to the
            insurance policies that are to be effected as aforesaid in pursuance
            of which the insurer  expressly  waives any right of  subrogation or
            legal other right of  recourse to the Lessor  and/or the  Management
            Company and/or other lessees and/or tenants in the Building (subject
            to the fact that the  provisions  concerning  waiver of the right of
            subrogation is included in the insurance  policies that they effect)
            in a claim of subrogation or recourse or indemnification  for direct
            or indirect damage that may be caused because of the Lessor.

<PAGE>
                                       22

      18.5  The Lessee hereby  undertakes that a cross liability  clause will be
            included in the policies vis-a-vis each of the individuals insured.

      18.6  The Lessee  undertakes to indemnify the Lessor  immediately  against
            any claim of  subrogation  or other claim that may be filed  against
            the Lessor by the National Insurance Institute and/or by an employee
            of  the  Lessee  if  it is  claimed  that  an  employer  -  employee
            relationship exists between them.

      The   indemnification  as aforesaid  will include any expense  incurred by
            the  Lessor or by the  Management  Company  including  legal  costs,
            lawyers' fees and any fine that may be imposed upon them.

      18.7  The Lessee  undertakes to effect the  insurances as aforesaid with a
            first class duly  licensed  insurance  company in  pursuance of that
            stated in the Special  Terms  Appendix for the entire  Period of the
            Tenancy  from the date on which the  Lessee  may  enter  the  Rented
            Premises as a licensee to carry out the work of dividing  the Rented
            Premises.

      18.8  The  insurances  will remain  valid for the Period of the Tenancy in
            pursuance of the Lease Agreement and the Lessee undertakes to extend
            them in  accordance  with that  stated in this clause for the entire
            Period of the Tenancy and Option Periods if exercised and to present
            copies of the  policy to the  Lessor  within 30 days of the  renewal
            date.

      18.9  All the  policies  will  contain  a  clause  in  which  the  insurer
            undertakes not to make any change in the policy and not to cancel it
            unless the insurer has given the Lessor  notice  thereof at least 90
            days before the requested change.

      18.10 The Lessee  undertakes  to deliver to the Lessor,  no later than two
            weeks  from  the  date of  signing  this  Agreement  the  "Insurer's
            Certificate  of the  Lessee's  Insurance"  signed  by  the  Lessee's
            insurances on a form in the wording of the Insurer's  Certificate of
            the  Lessee's  Insurance  (Appendix V to this  Contract)  as a prior
            condition  for him  receiving  possession  of the  Rented  Premises.
            Certified  copies of the  policies and their terms will be delivered
            to the Lessor within 45 days of the date of signing this Agreement.

      18.11 The Lessor may  request an update,  addition or  alternation  in the
            policies  as  required  from  time to time.  The  Lessor's  right of
            inspection  and his use of or abstention  from exercise of his right
            to see the policies and to an update,  addition or  alteration  will
            not  impose  on  him  any  liability  whatsoever  in  regard  to the
            policies, their nature and effect or in regard to their absence.
<PAGE>
                                       23

      18.12.Non-delivery of the certificate  from the insurance  company as well
            as copies of the policies on the dates  prescribed  above as well as
            the failure to pay the premium to the insurer,  will be deemed to be
            a  fundamental  breach of the Lease  Agreement  and the  Lessor  may
            exercise  the  securities  given  to him  in  connection  with  this
            Contract,  either for the  payment of the  insurance  premiums or to
            collect the agreed compensation.

      18.13 The Lessee  undertakes  to comply with all the terms of the policies
            mentioned above in this clause, to pay the premiums for the policies
            on their due dates and to ensure that the  policies  will be renewed
            and will be fully effective  throughout the Period of the Tenancy as
            well any Option Period, if exercised.

      18.14 The Lessee  undertakes  to notify  the  insurance  company  within a
            reasonable  time of the  date on  which  he  becomes  aware,  and in
            accordance with the terms of the policy, of any damage to the Rented
            Premises  and/or  to a person  and/or to his  property.  A notice in
            pursuance  of this  clause  will be by  registered  letter  and will
            indicate the details of the occurrence  and the estimated  amount of
            the damage.

      The   Lessee  will also  notify  the  Lessor of any  damage to the  Rented
            Premises that is likely to affect the Lessor's rights,  to be to the
            detriment  of the value of the  Rented  Premises  or to  expose  the
            Lessor to any claim.

      18.15 Insurance  benefits  that may be  received  will be used  first  and
            foremost to restore the damage in respect of which it was received.

      18.16 The Lessee hereby undertakes not to commit and not to permit another
            to commit  any act or  omission  that is likely to  increase  in any
            manner  whatsoever,  the  Lessor's  insurance  costs as regards  the
            Building.  In the event that the Lessor or the Management Company is
            obligated  to pay  additional  premiums  in excess  of the  accepted
            premium  as a direct  result  of an act or  omission  of the  Lessee
            and/or  because  of the  nature of the  Lessee's  operations  in the
            Rented  Premises,  the Lessee will pay the Lessor or the  Management
            Company, as is relevant, the said addition, immediately on the first
            demand of the Lessor or of the Management Company.

      18.17 In any  instance in which the Lessee  himself  carries out  building
            work at the Rented Premises,  the Lessee undertakes to insure at his
            own expense,  before the date of receipt of possession and/or before
            the date of starting any work at the Rented  Premises - whichever is
            the  earlier,  all the work carried out by him and/or for him at the
            Rented  Premises,  in  accordance  with  this  Contract,   including
            repairs,  renovations,  improvement,  alterations  and  additions to
            their full value (including materials and labor) under a Contractors
            All Risks Policy  (including Third Party Liability that will be to a
            limit of  liability  of no less than $ 500,000 per an event) as well
            as Employers Liability Insurance.

<PAGE>
                                       24

            In order to dispel any doubt,  it is agreed that the insurance  will
            expressly include cover for damage caused to adjoining  property and
            to the  property on which the work is carried out, for a sum insured
            that will be no less than US$ 500,000 on a first loss basis and that
            all the owners property or the Lessor's  property or the property of
            the  Management  Company will be regarded as the property of a third
            party.  The  Contractors All Risks Insurance will contain an express
            clause in  pursuance of which the  insurance  effected by the Lessee
            will take precedence over any other insurance effected by the Lessor
            and/or by the Management Company.

            Similarly,  the name of the insured in the policy  will  include the
            Lessor and the policy will contain a cross liability clause.

            The other provisions in this clause 18 will apply, mutatis mutandis,
            to the Contractors All Risks Policy.

      18.18 The fact of effecting one or all of the aforesaid insurance policies
            will not release the Lessee from liability in pursuance of the other
            clauses of this Contract.  If damage is caused, for which the Lessee
            is liable in pursuance of this  Agreement  that is not insured or is
            higher than the limit of  liability  of the policy as well as damage
            within the limits of the  deductible  - it will be borne only by the
            Lessee. The Lessee hereby undertakes to indemnify the Lessor for any
            claim that may be filed  against the Lessor in  connection  with the
            aforesaid  and for any expense  such as lawyers' fee that the Lessor
            may  suffer as a result  of that  stated  at the  beginning  of this
            clause.

      18.19 A breach of this clause 18  constitutes a fundamental  breach of the
            Contract.

      18.20 In addition to and without  derogating  from the insurance  policies
            that  the  Lessee  undertakes  to  effect  in  accordance  with  the
            provisions of this clause 18, the Management Company will insure the
            Rented Premises together with the other areas of the Building,  with
            comprehensive  insurance  (Building  only) and Third Party Insurance
            for injury to property  and/or to the person,  against the risks, on
            the  terms  and with the  limitations  as may be  determined  by the
            Management  Company,  at its  discretion,  from  time  to  time,  in
            accordance  with and  subject  to the  terms and  provisions  of the
            Management Contract (Appendix II to this Contract).  The Lessee will
            pay the  Management  Company a pro rata share of the said  insurance
            expenses within the framework of the management fees that the Lessee
            pays to the Management Company.

19.   THE LESSOR'S SPECIAL RIGHT TO ENTER THE PREMISES

      Without derogating from the provisions of this Contract, the Lessor and/or
      his  representatives  may enter the Rented Premises at any time during the
      Period  of the  Tenancy  or (as may be the  case)  the  Option  Period  if
      exercised,  with the consent of and on  coordinating  in advance  with the
      Lessee,  to examine the state of the Rented  Premises  and the  compliance
      with the provisions of this Contract and/or to show the Rented Premises to
      potential purchasers and/or lessees and the Lessee undertakes to allow the
      Lessor  and/or  his  representatives  to  enter  the  Rented  Premises  as
      aforesaid.

<PAGE>
                                       25

20.   VACATING THE RENTED PREMISES

      20.1  At the end of the Period of the Tenancy or (as is relevant)  the end
            of the  Option  Period  or  (as is  relevant)  in  any  instance  of
            cancellation   or   termination   of  the  Tenancy  for  any  reason
            whatsoever,  the Lessee  undertakes  to vacate the Rented  Premises,
            without  delay and without  interference,  and to restore the Rented
            Premises to the Lessor the Rented Premises being clear of any person
            or object and in good and proper  condition  as the Lessee  received
            the Rented  Premises  other than for wear and tear that derives from
            normal use and to pay the Lessor all the expenses and repair charges
            that the  Lessor  may  spend to  repair  them and to put the  Rented
            Premises  and  the  equipment  in  good  order  as   aforesaid.   If
            alterations and/or additions were made to the Rented Premises, these
            will be the property of the Lessor,  other than alterations that are
            not  permanently  affixed  to the  Rented  Premises  and that may be
            removed without causing damage to the Rented  Premises,  without the
            Lessor being obligated to make any payment in respect thereof to the
            Lessee or to any other  person  and they will  remain in the  Rented
            Premises  unless the Lessor  demands that the Lessee remove them and
            in such  case,  the  Lessee  will be  obligated  to do so at his own
            expense by the date of vacating  the Rented  Premises  in  pursuance
            with the terms of this Contract. Similarly, the Lessee undertakes on
            that occasion to deliver to the Lessor authorizations  testifying to
            the payment of all the charges that apply to the Lessee in pursuance
            of this Contract until the date determined in this Contract.

      20.2  Without  prejudice  to  and/or  lessening  the  Lessor's  rights  in
            pursuance  of this  Contract,  and in  addition  to all  the  relief
            specified therein, it is hereby agreed that on the occurrence of one
            or  more  of  the  following  events,  the  Lessor  may,  but is not
            obligated,  at his sole  discretion,  to cancel the Lease  Agreement
            immediately and to demand the immediate  eviction of the Lessee from
            the Rented Premises without  prejudice to the Lessee's  undertakings
            as specified  above in this Contract,  and the Lessee  undertakes to
            vacate the Rented  Premises and to return them to the Lessor,  clear
            or any person or object that belongs to the Lessee and in good order
            as they were when he received them, immediately on demand:

        20.2.1  If the Lessee does not pay the rent and the  management  fees in
                the Period of the Tenancy and/or the Option Period if exercised,
                all as relevant, on their due dates.

                It is hereby agreed that a delay in payment that does not exceed
                21 days  will not be deemed  for  purposes  of this  clause as a
                breach that entitles the Lessor to cancel the Lease Agreement.

<PAGE>
                                       26

                20.2.2  If the Lessor  grants use of the Rented  Premises or any
                        part thereof to another/others  other than in accordance
                        with the provisions of this Contract.

                20.2.3  If the Lessee conducts a business on the Rented Premises
                        other  than  in  accordance  with  the  purpose  of  the
                        Tenancy.

                20.2.4  If a resolution  is adopted for the  dissolution  of the
                        Lessee  or  if  a   decision   is  taken  to  appoint  a
                        liquidator, receiver or special administrator, temporary
                        or permanent,  for the Lessee or if a receivership order
                        is  issued  against  the  Lessee  or  if  a  warrant  of
                        attachment is issued against all or part of the Lessee's
                        assets  or if a stay of  proceedings  order  is  awarded
                        against the Lessee in accordance  with the provisions of
                        the  Companies  Law,  5759 - 1999,  and the  decision as
                        aforesaid is not cancelled within 60 (sixty) days of the
                        date of its issue.

                20.2.5  If the Lessee ends his business or if the Lessee is made
                        bankrupt or if the Lessee liquidates or is liquidated or
                        if the Lessee files an application for liquidation or if
                        an  application  to  appoint a  permanent  or  temporary
                        receiver is filed  against the Lessor and/or most of his
                        assets in accordance  with the law or if an  application
                        is  made to  grant  an  order  for  stay of  proceedings
                        against the Lessee in accordance  with the provisions of
                        law or if a lien  is  placed  on  most  of the  Lessee's
                        assets and these are not cancelled within 45 days of the
                        date of  their  issue  or (as is  relevant)  the date of
                        their submission.

                20.2.6  If the  Lessee  has  fundamentally  breached  any of the
                        provisions  of this Contract as defined in this Contract
                        and/or in law.

      20.3  If the Lessee does not clear the Rented Premises of every person and
            object on the due date as  stated  in  sub-clause  20.1  above,  the
            Lessor  may,  without  derogating  from his  right  to any  other or
            additional  relief in law and/or in pursuance of the Contract,  take
            all or some of the  steps  specified  below,  after  giving  advance
            warning  of at least 7 days in  writing  to the Lessee to vacate the
            Rented  Premises  as stated.  In an instance in which the Lessee has
            fundamentally  breached  the  provisions  of this  Contract  and the
            Lessor is of the opinion that 7 days warning is liable to frustrate,
            or to significantly  lessen,  his ability to reduce the damage,  the
            Lessor may take the steps  specified  below on giving written notice
            that will placed in the Rented Premises without any warning:

                20.3.1  All the means required to vacate the Rented  Premises by
                        himself, at the expense of the Lessee, after 7 days have
                        elapsed from the  original  date for vacating the Rented
                        Premises,  and for this  purpose,  to enter  the  Rented
                        Premises,  on exercising  force if this is required,  to
                        remove from the Rented Premises  anything or object that
                        the  Lessee  is  obligated  to  remove  from the  Rented
                        Premises on  vacating  the Rented  Premises.  The Lessor
                        may,  at his  absolute  discretion,  place or store  any
                        object  that  is  removed  as  stated  from  the  Rented
                        Premises in any place and on the conditions  that he may
                        choose. All the expenses involved in entry to the Rented
                        Premises,  removal of objects therefrom, their transport
                        and storage  will apply to the  Lessee.  The Lessor will
                        not be liable for any  damage  that may be caused to the
                        Lessee or to any  other  person as a result of and/or in
                        connection  with  vacating  the Rented  Premises  by the
                        Lessor or the  storage  of the  objects  that were found
                        therein  and the  Lessee  hereby  gives his  consent  to
                        vacating the premises as stated,  The Lessee's signature
                        on  this  Contract  will  be  deemed  to be a  power  of
                        attorney  in the name of the Lessor and any person  that
                        may act on  behalf  of the  Lessor,  to  effect  all the
                        aforesaid  in the name of the  Lessee  and on the  terms
                        described above.

<PAGE>
                                       27

                20.3.2  To apply  for the  appointment  of a  receiver  who will
                        receive the Rented  Premises,  receive all the  Lessee's
                        objects  and remove  them from the Rented  Premises  and
                        will  act in  regard  to them as he  sees  fit and  will
                        deliver possession of the Rented Premises to the Lessor.
                        The expenses for the  appointment  of a receiver as well
                        as the  expenses of the receiver  including  legal costs
                        will apply solely to the Lessee.

                20.3.3  To act in order to disconnect  the Rented  Premises from
                        the electric current and/or from the water supply.

                20.3.4  In order to dispel  any doubt,  it is hereby  made clear
                        that the Lessor  will be entitled to rent out the Rented
                        Premises   immediately  after  the  premises  have  been
                        vacated as specified above in this clause,  20.3, to any
                        body that the Lessor selects and the Lessee will have no
                        claim and/or action in connection therewith.

      20.4  In the event that the Lessee does not vacate the Rented  Premises of
            all persons and objects on the date as stated  above in clause 20.1,
            the Lessee will be obligated to pay the Lessor for each day's delay,
            until the Rented  Premises are de facto  vacated and returned to the
            Lessor as aforesaid,  an amount that is the equivalent of two months
            rent divided by ten. The above payment will be made  immediately  on
            demand  and  will  constitute  agreed  compensation,  specified  and
            estimated  in  advance by the  parties on taking  account of all the
            circumstances. In order to dispel any doubt, it is hereby made clear
            that the said payment does not and will not confer on the Lessee any
            right to remain in the Rented  Premises  and this amount will not be
            deemed  to be  rent  or a user  fee,  of any  sort  whatsoever.  The
            compensation  stated in this clause is intended as a supplement  and
            it will not derogate from and/or prejudice any of the Lessor's other
            rights in pursuance of this  Contract  and/or in law,  including the
            Lessor's right to demand and to obtain the vacated  Rented  Premises
            and possession thereof as stated.

<PAGE>
                                       28

      20.5  If the Lessee does not vacate the Rented Premises of all persons and
            objects on the date specified  above in sub-clause  20.1, the Lessor
            and the  Management  Company  will be  entitled  in  addition to the
            aforesaid,  to  demand  from the  Lessee,  all the  amounts,  taxes,
            payments,  undertakings,  repair costs,  damages,  appropriate  user
            fees,  losses and any other payments without  exception as specified
            in this  Contract  for the period  from the date on which the Lessee
            was  obliged to vacate the Rented  Premises  until the date on which
            the Rented  Premises were de facto vacated,  as though the Period of
            the Tenancy  had  continued,  this being  without  prejudice  to the
            Lessee's   obligation  to  vacate  the  Rented   Premises,   without
            conferring  on the  Lessee  any  right  of any  sort  to the  Rented
            Premises and without prejudice to any other relief that is available
            to the Lessor in accordance with this Contract and/or in law.

      20.6  Receipt  of  appropriate  user fees as  aforesaid  and the  payments
            specified   above  in  clause  20.5,   will  not  create  a  tenancy
            relationship  between  the  Lessee  and the Lessor in respect of the
            period  after the date on which the Lessee was to have  vacated  the
            Rented Premises.

21.   SURETIES

      To guarantee the performance of all the Lessee's undertakings in pursuance
      of this Contract and in pursuance of the Management  Contract (Appendix IV
      to this Contract),  the Lessee will deliver to the Lessor, no later than 7
      days after the date of  signing  this  Contract,  and in any case no later
      than the date of the  Lessee's  entry to the Rented  Premises  for work to
      adapt the Rented  Premises,  the sureties  specified in the Special  Terms
      Appendix.

22.   PROHIBITION ON THE ASSIGNMENT OF THE LESSEE'S RIGHTS -

      22.1  The Lessee  hereby  undertakes  not to assign  and/or  endorse  this
            Contract or any part thereof  and/or any right and/or any obligation
            that  derives  therefrom  to any person or body and not to  transfer
            and/or assign  and/or to grant any person or body,  any right of any
            sort  whatsoever  to the  Rented  Premises  or to any part  thereof,
            including   right  of  use  or  possession,   whether   directly  or
            indirectly,  for  consideration  or without  consideration,  without
            first  obtaining the written  consent of the Lessor.  In this clause
            "ASSIGNMENT"   includes  an  assignment  and/or  sale,  whether  for
            consideration   or  without   consideration,   whether  directly  or
            indirectly of 50% of more of the means of control (as defined in the
            Securities  Law,  5728 - 1968) of the Lessee.  It is made clear that
            transfer in an  association  that controls the Lessee on the date of
            signing this Agreement as well as transfer to an association that is
            controlled by an association that is controlled by the Lessee at the
            date  of  signing  this  Agreement  will  not  be  deemed  to  be an
            assignment and no restrictions will apply thereto.

      22.2  In addition,  and without  derogating  from the provisions of clause
            22.1 above,  the Lessee  hereby  undertakes  not to create and/or to
            impose any attachment and/or lien on the Rented Premises or any part
            thereof  and/or his rights in pursuance of this Contract or any part
            thereof.  In the event  that an  attachment  or lien is  imposed  as
            aforesaid, the Lessee undertakes to notify the Lessor immediately of
            their imposition and to remove them  immediately,  at the expense of
            the Lessee. It is declared that the Lessee may not enter a caveat in
            respect of the transaction that is the subject of this Contract.

<PAGE>
                                       29

      22.3  Despite  the  aforesaid,  the Lessee has the right to let the Rented
            Premises  or  part  thereof  on a  sub-lease  to a  sub-tenant  (the
            "SUB-TENANT") provided that the following are fulfilled:

                22.3.1  The Lessee will present the  Sub-Tenant for the approval
                        of the Lessor and will not let the  Rented  Premises  or
                        part  thereof  to  the   Sub-Tenant   other  than  after
                        obtaining the consent of the Lessor.  The Lessor, on his
                        part, will not refuse to grant his consent other than on
                        reasonable grounds.

                22.3.2  The Lessee will  continue to be  obligated to the Lessor
                        for all his  undertakings in pursuance of the Agreement,
                        including the undertakings that apply to the Sub-Tenant.
                        Without  derogating  from  the  general  nature  of  the
                        aforesaid,  the  sureties  that the  Lessee  gave to the
                        order of the Lessor  will  continue to be  effective  to
                        guarantee the undertakings of the Sub-Tenant.

                22.3.3  The Lessee will not grant the  Sub-Tenant any right that
                        deviates  from the  existing  rights  of the  Lessee  in
                        pursuance of the provisions of this Agreement.

       22.4   The Lessee's undertakings in pursuance of this clause are
              fundamental undertakings and the breach of any or all of them will
              constitute a fundamental breach of this Contract.

23.   ASSIGNMENT OF RIGHTS BY THE LESSOR

      It is made clear and agreed that the Lessee may at any time endorse and/or
      assign  and/or  sell and/or  rent out and/or  mortgage  all or part of his
      rights to the Building and/or the floor and/or the Rented Premises, and to
      take any action therewith,  all at his sole discretion,  without requiring
      the consent of the Lessee  providing that the Lessee's rights in pursuance
      of this Contract are not prejudiced.

      Similarly,  the Lessor may pledge all or part of this Contract, may assign
      his rights to others,  may transfer it all or part thereof in any form and
      manner as the Lessor deems appropriate from time to time, whether with the
      aim of obtaining  financing  or for any other  purpose,  at the  exclusive
      discretion of the Lessor  providing that the Lessee's  rights in pursuance
      of this  Contract  will not be  prejudiced.  The Lessee  hereby  expressly
      agrees  to accept  and to  fulfill  all the  provisions  of this  Contract
      vis-a-vis any other body that may replace the Lessor.

<PAGE>
                                       30

24.   BREACHES AND RELIEF

      24.1  Without derogating from the provisions of this Contract,  any breach
            of the  provisions in clauses 4.1, 4.2, 6, 7, 8.1, 10, 11.2, 13, 14,
            14.9,  15.1,  16, 17, 20.1,  20.2,  21 and 22 including  the precise
            dates and amounts determined in this Contract will be deemed to be a
            fundamental  breach of this Contract.  Despite the aforesaid in this
            Agreement,  a delay in the  performance of an undertaking  that does
            not exceed 14 days - other than a delay in making a payment to which
            the  provisions  of  clause 7 above  apply - will not  constitute  a
            breach of this Agreement.

      24.2  Any breach of any of the  provisions  of this Contract that is not a
            fundamental  breach,  will become a fundamental  breach if it is not
            repaired within 30 (thirty) days of the date on which a party to the
            Contract  gave  notice in writing  to the other  party to repair the
            breach.

      24.3  The parties  hereby agree and confirm that this  Contract may not be
            separated  into parts as meant in  Section  17 (c) of the  Contracts
            (Remedies for Breach of Contract) Law, 5739 - 1970.

      24.4  If this Contract has been  fundamentally  breached or breached other
            than fundamentally and not repaired within the dates specified above
            in clause  24.2,  the  Lessor  and/or  the Lessee as is the case may
            cancel the Contract and the provisions of clause 20 above will apply
            to vacating the Rented Premises.  If the Contract was  fundamentally
            breached  by the  Lessor,  the Lessee will be entitled to cancel the
            Contract  immediately  without  being  obligated  to  payment of the
            balance of the rent and the Lessor will return the sureties given to
            him in pursuance of this Agreement, to the Lessee.

      24.5  Any  obligation  that is placed in pursuance of this Contract on any
            of the parties  (hereafter:  the "OBLIGATED  PARTY") and that is not
            fulfilled on the date specified for its fulfillment,  the party that
            is not the Obligated  Party (the  "COMPLYING  PARTY") may but is not
            obliged to  fulfill  all or part of the  obligation,  instead of the
            Obligated  Party,  provided  that the  Complying  Party  first gives
            notice in  writing  of 7 (seven)  days to the  Obligated  Party,  to
            fulfill the obligation. The Obligated Party will refund all expenses
            to the Complying  Party in connection  with the  fulfillment  of the
            obligation   immediately   on   its   demand,    including   linkage
            differentials  and interest on arrears as specified  above in clause
            7.3.

            For purposes of the sub-clause  "Fulfillment of an Obligation" means
            - including taking an action or making a monetary payment.

      24.6  Any relief or right that is conferred on a party to this Contract in
            connection  with  breach  of the  Contract  by the other  party,  is
            intended to  supplement  any other  relief that is conferred on that
            party,  whether in pursuance of this Contract or in law and does not
            derogate therefrom. The parties declare that their intention in this
            Contract is to allow any party to act, in any event of a breach,  to
            exercise in the event of a breach,  the maximum relief  conferred in
            law  or  in  the  Contract  and  correspondingly,   cumulatively  or
            alternatively,  all at the  discretion  of that party and as long as
            not expressly stated otherwise in the Contract.

<PAGE>
                                       31

      24.7  If the Lessee does not keep the Rented  Premises  in good  condition
            and/or does not repair  whatever needs repair in the Rented Premises
            for which the Lessee is liable in pursuance of this Contract  and/or
            does not return the Rented  Premises to the Lessor at the end of the
            Period  of the  Tenancy  in  pursuance  of  this  Contract,  in good
            condition and in good repair as stated in this  Contract  (including
            clause 17.1 ) and/or if any damage is caused to the Rented  Premises
            for which the Lessee is liable during the Period of the Tenancy that
            was not repaired by the Lessee;  then in addition to any other right
            that  the  Lessor  has in any  such  event  in  accordance  with the
            provisions of this Contract  and/or in law, the Lessor may carry out
            any  repair  and/or  take any  action  that the  Lessor  deems to be
            appropriate  to repair  the  damage  and/or to  restore  the  Rented
            Premises  to their  former  condition  at the expense of the Lessee,
            providing that the Lessee is given a warning and/or  notification of
            7 days to repair  the breach  with an  indication  of the  estimated
            amount of the repair or the expense or the damage, if it is possible
            to estimate them in advance.

      24.8  The Lessee hereby  undertakes to pay the Lessor  immediately  on his
            demand and against  presentation of receipts,  all the payments that
            the Lessor has incurred for the actions that he took in pursuance of
            clause 24.7 above. The Lessor's  receipts in the matter of the above
            expenses will  constitute  absolute  proof of their accuracy and the
            Lessee  undertakes  to pay the  Lessor  for the  invoices  that  are
            submitted to him by the Lessor  immediately  they are submitted.  If
            the actions were taken by the  Management  Company,  the Lessee will
            pay  the  amounts  to  the  Management  Company  as  stated  in  the
            Management Contract.

      24.9  In any event of cancellation of this Contract  because of its breach
            by a party thereto, the other party will be entitled to any other or
            additional  remedy  available  to that party in law for the  breach,
            including  relief of  compensation,  restitution,  an injunction,  a
            mandatory injunction and a declarative injunction.

      24.10 The Lessee may not offset any sum  whatsoever  from the amounts that
            he is to pay to the Lessor or to third parties,  in pursuance of the
            provisions of this Agreement or the Management Contract.

25.   MISCELLANEOUS

      25.1  This Contract exhausts all the accords,  stipulations,  declarations
            and legal  relations  between the parties and no proposal,  summary,
            understanding,  representation  or  promise  that  was made or given
            prior to the  signing  of this  Contract  or at the time that it was
            signed,  by either  party to the other,  whether  made in writing or
            orally,  whether explicit or implicit will be valid unless as stated
            in this Contract.

      25.2  No  alteration,  addition or  derogation  from the Contract  will be
            valid  after the date of its  signature  unless  made in writing and
            signed by the parties.

<PAGE>
                                       32

      25.3  The costs of stamping this Contract will be paid by the Lessee.

      25.4  An  omission,  suspension  or waiver by either party to the other in
            the  exercise  of any of that  party's  rights in  pursuance  of the
            provisions of this Contract  and/or in law, will not be deemed to be
            a waiver, hindrance, accord or acknowledgement by that party and the
            party is  empowered  to  exercise  its rights in  pursuance  of this
            Contract and/or in law, whenever the party so wishes,  without being
            prevented from doing so.

      25.5  A waiver or extension  that was granted by one party to another in a
            specific  instance  will  not  constitute  a  precedent  in  another
            instance. For purposes of this Contract, no waiver or extension will
            be valid unless given in writing.

      25.6  In the event that the term "Lessee"  relates to more than one person
            (or body),  all the  individuals of the purchaser are liable jointly
            and severally for the performance stated in this Contract.

      25.7  Exclusive  jurisdiction  in any matter that is  connected  with this
            Contract or that is derived  therefrom  will be vested solely in the
            competent Court in Tel Aviv - Jaffa.

      25.8  The addresses of the parties for the purpose of this Contract are as
            follows:

            The Lessor - c/o Israelom  Assets Ltd. of Dizengoff  Street 253, Tel
            Aviv.  The Lessee - during  the Period of the  Tenancy at the Rented
            Premises  and,  other than  during the  Period of the  Tenancy,  c/o
            Tultzinski  Stern,  Law  Offices at the  address  prescribed  in the
            Preamble to this Agreement.

      25.9  Notices in pursuance of this  Contract  will be given in writing and
            sent by registered  mail or delivered by hand to the address  stated
            in clause 25.9 above. A notice that is sent by registered  mail will
            be deemed to have  reached  its  destination  within 72 hours of the
            time of its delivery for dispatch as stated,  with confirmation from
            the Post  Office  and a notice  that is  delivered  by hand  will be
            deemed to have reached its  destination  at the time of its delivery
            by hand as  aforesaid.  On  transmission  of  notices  by  facsimile
            according  to the above fax  numbers,  the notice  will be deemed to
            have been received as though received on transmission  during normal
            workings  hours  and on  receipt  of  normal  transmission  from the
            transmitting appliance.

            AND IN WITNESS WHEREOF THE PARTIES HAVE SET THEIR HANDS:

/s/ Authorized signatore                       /s/ Yaffa Beck
------------------------------------           ---------------------------------
            The Lessor                                    The Lessee

<PAGE>
                                       33

Lawyer's Verification
I, Michal  Mastay,  Adv. who act as lawyer to BRAINSTORM  CELLULAR  THERAPY LTD.
(hereafter:  the "COMPANY")  hereby  certify that the  signatories to this Lease
Agreement and its  Appendices  are authorized to sign in the name of the Company
and that their  signature  together with the seal of the Company,  obligates the
Company to all intents and purposes.

                                       /s/ Michal Mastay
                                       -----------------------------------------
                                       Michal Mastay, Adv.

<PAGE>
                                       34

                              MANAGEMENT AGREEMENT

                DATED THE FIRST DAY OF THE MONTH OF DECEMBER 2004

BETWEEN:               _________________________ LTD.
                       care of K.M.T. 'A' and 'B'
                       of Dizengoff Street 253, Te; Aviv
                       (hereafter: the "Management Company") of the First Part;
                                                             ------------------

AND BETWEEN:           1.    BRAINSTORM TERAPIA TA'IT BM
                             [In English: Brainstorm Cell Therapeutics Ltd.]

                             (hereafter: the "LESSEE")of the Other Part;

IT IS THEREFORE AGREED, DECLARED AND STIPULATED BETWEEN THE PARTIES AS FOLLOWS:

1.    DEFINITIONS

      In this Contract the following  terms will be attributed  with the meaning
      given beside them unless expressly stated otherwise.

      "THE MANAGEMENT  COMPANY" - means - the management  company or any person,
      company or other legal body as  specified by the  management  company from
      time to time in writing, in pursuance of the provisions of this Agreement.

      "THE BUILDING" means - as defined in the Lease Agreement.

      "THE  LESSEE"  means - whoever has taken a lease or  undertaken  to take a
      lease on a property in the Building  whether he is in de facto  possession
      of the property or whether he has let it to others or permitted  others to
      use it, or whether he is not in de facto possession of the property.

      "THE LEASE  AGREEMENT" means - the Contract dated December 1, 2004 between
      the Lessee and the Lessor in pursuance of which the Lessor  grants a lease
      of the Rented Premises to the Lessee.

      "THE  PROPERTY" OR "THE RENTED  PREMISES"  means - the Rented  Premises as
      defined in the Lease Agreement.

      "THE  PUBLIC  AREAS  OF THE  BUILDING"  means  - as  meant  in  the  Lease
      Agreement.

      "THE  FACILITIES"   means  -   air-conditioning   facilities,   elevators,
      electricity,   plumbing,   lighting,   water,  sewage,  drains  and  other
      facilities  and parts of the  Building  that are  intended  for use of the
      tenants and/or occupants of the Building, whether directly or indirectly.

      "THE  SERVICES" - means - the  operation,  repair and  maintenance  of the
      Public Areas of the Kiryat Arieh Science and Technology  District  project
      and of the Building and of the Facilities,  including the air conditioning
      facilities as well as cleaning  outside the Rented  Premises,  maintenance
      and supervision during the accepted hours of operation (07:00 - 19:00) and
      other services that in the opinion of the Management Company are necessary
      for the proper operation of the Building.

<PAGE>
                                       35

      "MANAGEMENT AND PERFORMANCE OF THE SERVICES" means - any action  performed
      by the  Management  Company  for  the  management  or  performance  of the
      services.

      "YEAR"  means - the year from January 1st.  until the  following  December
      31st.

      "THE LESSOR" means - Kiryat Hameida v'Technologia 'A' Petah Tikvah BM, [In
      English:  Petah Tikvah Science and Technology  District 'A' Ltd.],  Kiryat
      Hameida  v'Technologia  'B' Petah  Tivkah BM, [In  English:  Petah  Tikvah
      Science  and  Technology  District  'B' Ltd.],  Atzma  v'Shut.  L'Hashkaot
      Maccabim BM, [In English: Atzma and Partners Maccabim Investments Ltd.].

2.    MANAGEMENT AND PERFORMANCE OF THE SERVICES

      The  Management  Company  accepts the  responsibility  for  management and
      performance  of the  services  and the Lessee  agrees to this and delivers
      exclusive   management  and  performance  to  the  Management  Company  in
      accordance with the provisions specified in this Contract.  The Management
      Company  declares that there is no legal and/or  contractual  and/or other
      impediment to it entering into this Agreement.

3.    PERIOD

      3.1   The Period of this  Contract  will commence on the date on which the
            Lessee  receives  possession of the Property but no later than April
            1, 2005, whichever date is the earlier.

      3.2   The Contract will remain in force throughout the Period of the Lease
            including the Option Period if this is exercised.

4.    REGULATIONS AND PROVISIONS

      The Management Company may determine,  from time to time,  regulations and
      provisions  in  any  matter  that  is  involved  in  the   management  and
      performance  of the  services  and may  alter  them in as far as it  deems
      appropriate.  These  regulations  and provisions  will not be inconsistent
      with the provisions of this Contract and will not prejudice the reasonable
      use and reasonable options for the Lessee's use of the Property.

5.    THE UNDERTAKINGS OF THE MANAGEMENT COMPANY

      The Management Company hereby undertakes:

      5.1   To perform and manage the services faithfully, to a proper standard,
            efficiently and at reasonable market prices.

<PAGE>
                                       36

      5.2   To set up and  maintain  an office in which the  operations  for the
            management  and  performance  of the services will be organized,  to
            which the Lessee  may apply with  requests  and  inquiries  that are
            derived from the management and  performance of the services and the
            activities of the Management Company.

      5.3   To organize, maintain and hire employees and/or contractors to carry
            out the work  involved  in the  management  and  performance  of the
            services  as  well  as to  manage  and  perform  all or  part of the
            services by means of  contractors,  sub-contractors  or in any other
            manner as determined by the Management Company.

6.    INSURANCE

      6.1   Without derogating from the Lessee's legal liability, the Management
            Company  will insure the  Building  (excluding  the  contents of the
            Property and  excluding any additions to the Property that were made
            by  and/or  for the  Lessee),  as well as the  public  areas  in the
            Building at their full value  against  the  following  risks:  fire,
            earthquake,  explosion,  flood, storm and tempest and any other risk
            as is required in the opinion of the  Management  Company.  The said
            insurance will contain a clause  concerning the insurer's  waiver of
            the right of subrogation vis-a-vis the tenants.

      6.2   The sums  insured  and the  deductibles  will be  determined  by the
            Management  Company in a reasonable  manner and the purchaser agrees
            to these sums and agrees to be responsible  for the premiums for the
            insurance  policies that the Management Company effects in pursuance
            of this  clause pro rata to the area of the  Property in relation to
            the Building.  These sums will be included in the management fees as
            defined in clause 8.1. below.

      6.3   In any event of damage to the Property,  the purchaser undertakes to
            act in accord and in cooperation with the insurance assessor.

      6.4   The Management Company will allow a purchaser to study the aforesaid
            policies within 30 days of the date of inception of the insurance.

      6.5   The  insurance  policies  that are to be effected by the  Management
            Company are in addition to and without derogating from the insurance
            effected by the Lessee in accordance  with the  provisions of clause
            18 of the Lease Agreement.

7.    THE UNDERTAKINGS OF THE LESSEE

      The Lessee hereby undertakes:

      7.1   To be in contact and to act only through the  Management  Company in
            all matters that concern the management and  performance of services
            in pursuance of this Contract.

<PAGE>
                                       37

      7.2   To refrain from taking, whether independently or through others, any
            action or care that has been  delivered  exclusively in pursuance of
            this Contract,  to the Management  Company unless before taking such
            action or care,  the Management  Company given  consented to this in
            writing.

      7.3   That the Lessee and the  persons  subordinate  to the Lessee and his
            successors  or those  acting on his behalf will  cooperate  with the
            Management  Company  and will  assist it in all cases in which  such
            cooperation  or  assistance  is  required,  for the regular and good
            order of the  management and  performance of the services,  and that
            the Lessee will comply with all his undertakings that derive, either
            directly or indirectly, from this Contract.

      7.4   To permit the Management  Company and its  representatives  to enter
            the Property at a reasonable  hour to carry out operations  that are
            connected  with the  management  and  performance  of the  services,
            whether such work is for the Lessee himself or for other lessees.

      7.5   To agree to the fact that this  Contract  will be  registered at the
            Land Registry Bureau or by entering a caveat as to its existence and
            is binding.

8.    THE CONSIDERATION

      8.1   The Lessee will pay the  Management  Company each  quarter  together
            with the rent, with linkage  differentials to the Index added to the
            base rent as defined in this  Contract  to the date of each de facto
            payment,  the sum of NIS 3,487  (three  thousand,  four  hundred and
            eighty   seven)  for  each  month  with  the   addition  of  linkage
            differentials  to the Index in  pursuance of the  provisions  of the
            Lease Agreement and with the addition of value added tax (hereafter:
            the  "Management  Fees").  It is made clear that the Management Fees
            have been  calculated  after a deduction  that are derived  from the
            fact  that  the  air-conditioning  in the  Rented  Premises  will be
            effected  by the Lessee  and not by the Lessor or by the  Management
            Company.

      8.2   The Management  Company may raise the amount of the Management  Fees
            as stated above, once in every 24 months, on each occasion at a real
            rate  (with the  addition  of  linkage)  of not more than 10% at the
            absolute and sole discretion of the Management Company.

      8.3   The Lessee will be  responsible  for expenses  that are derived from
            the management and  performance of services that are not included in
            the services in pursuance  of this  Agreement  and that are intended
            solely  for the Lessee  and at his  request.  In order to dispel any
            doubt,  it is made  clear  that the  provision  of  air-conditioning
            services  to the  Rented  Premises  beyond  the  accepted  hours  of
            operation  (07:00 - 19:00) is a special service for which the Lessee
            will be responsible separately from the Management Fees.

<PAGE>
                                       38

9.    BREACHES

      9.1   If the Lessee is in arrears in any payment whatsoever,  arrears that
            are in excess of 21 or more business days in respect of two payments
            in any year that are due from the Lessee to the  Management  Company
            in pursuance of this Contract or if the Lessee  breaches a principal
            clause of this  Contract  and does not repair  the  breach  within a
            reasonable  time of the date of notice from the Management  Company,
            the  Management  Company is entitled,  without  derogating  from its
            right to any other legal relief, and as it elects:

            9.1.1 To  completely  or  partially  terminate  the  management  and
                  performance of the services provided to the owner and -

            9.1.2 To collect  interest  ob any sum that is in  arrears  from the
                  date on which the  payment  was to have been made until the de
                  facto  date of  payment,  from the  Lessee,  in the  amount of
                  excess  interest  customary  at the  time on  current  drawing
                  accounts at the Bank Leumi l'Israel Ltd.

      9.2   All the expenses and payments that apply to the  Management  Company
            or that are  expended  by the  Management  Company  as a result of a
            breach  of this  Contract  on the part of the  Lessee or that may be
            required  to take  steps  against  the  Lessee as the result of such
            breach,  will be paid by the Lessee immediately on the demand of the
            Management Company.

      9.3   The  Lessee's  refusal  or  unwillingness  to  receive  any  service
            whatsoever or his wish to discontinue the management and performance
            of the services n respect of the Property, will not release him from
            the  obligation to  participate  in the expenses for  management and
            performance  of the  services  in  pursuance  of the  terms  of this
            Contract,  other than in the event of a  fundamental  breach of this
            Agreement on the part of the Management Company,

      9.4   The  provisions  of this clause will not prejudice the rights of the
            parties to any  relief  whatsoever  in  pursuance  of the  Contracts
            (Remedies  for Breach of Contract)  Law, 5731 - 1970 or in any other
            law.

      9.5   The provisions of clause 5 above in this Agreement are the principal
            and  fundamental  terms of this  Agreement  and their  breach or the
            breach  of any of the  terms on the part of the  Management  Company
            will  constitute a fundamental  breach of this  Agreement  providing
            that the Management Company is given notice in writing of the breach
            and if was not repaired by the Management  Company within 14 days of
            the date of its receipt.

10.   CHARGES IN THE EVENT OF LEASING

      Without  derogating  from the provisions of clauses 19 and 20 of the Lease
      Agreement and without the  aforesaid  being deemed to permit the Lessee to
      transfer  and/or to assign and/or to lease the Rented Premises of any part
      thereof to another,  the following  provisions  will apply in the event of
      leasing and/or transfer of rights to another:

<PAGE>
                                       39

      10.1  Leasing or giving  license to use the business house to another will
            not release the Lessee from his  obligations  in  pursuance  of this
            Contract and the Lessee is obligated to ensure the collection of the
            appropriate amounts from the lessee or from the licensee.

      10.2  Without  derogating  from that  stated in clause  10.1,  the  Lessee
            undertakes  that soon after he leases his business house or any part
            thereof or soon after  granting any other license to use it, he will
            inform the  Management  Company of the fact and will ensure that the
            lessee or the licensee will sign a suitable management contract with
            the Management Company.

      10.3  The Management Company, at its absolute  discretion,  may take steps
            to collect the amounts due to the Management Company in pursuance of
            this  Contract or in pursuance  of the contract  that will be signed
            with the lessee or the licensee or in  pursuance of both,  providing
            only that it does not collect the same amount twice.

11.   TRANSFER OF THE ADMINISTRATION TO ANOTHER COMPANY

      If the Management Company should decide to transfer  administration of the
      management and performance services in the Building and anything connected
      therewith  including all its rights and  obligations  in pursuance of this
      Contract to another management company or to any other legal body, whether
      existing or whether it is founded for this  purpose,  it will be obligated
      to  obtain  from the new  management  company  or from  the  body  that is
      designated for the purpose,  before the transfer,  a letter of undertaking
      to the Lessee  according to which the new  management  company or the said
      body  will  accept  full   responsibility  for  the  undertakings  of  the
      Management Company in pursuance of this Contract. A copy of this letter of
      undertaking  will be forwarded to the Lessee.  The new management  company
      will manage the building in a separate management unit and with a separate
      accounting  system.  The Management  Company will continue to be obligated
      vis-a-vis the Lessee in pursuance of this Agreement.

12.   STAMP DUTY

      The Lessee  undertakes  to be  responsible  for the  legally  due costs of
      stamping this Agreement.

13.   MISCELLANEOUS PROVISIONS

      13.1  This Contract  contains in full all that agreed between the parties,
            all  the  understandings,   accords,  obligations  and  stipulations
            between the parties.

      13.2  Any alteration,  amendment or addition to this Contract will be made
            in writing; otherwise they shall not be valid.

<PAGE>
                                       40

      13.3  All previous contracts,  accords and obligations between the parties
            are hereby made null and void.

      13.4  A waiver by one of the  parties  or a breach or failure to comply of
            the other party, or overlooking any such breach or failure to comply
            will not prevent the subsequent  enforcement of that  stipulation or
            obligation  or a claim in respect  thereof and will not be deemed to
            be a waiver of other breaches.

      13.5  This  Contract  will bind the Lessee and will continue to be binding
            on him if he should lease the Property or license another to use it,
            or if he does not use it,  whether  the  lessee or the user has also
            signed a  management  contract or not.  However the Company will not
            collect any payment  from the lessee or from the  occupant  that has
            been made by the Lessee of that Property.

      13.6  The Lessee may not offset  any amount  whatsoever  from the  amounts
            that the Lessee is obligated to pay to the Management Company.

      13.7  The  headings  of the  clauses in this  Contract  are  intended  for
            convenience  only and no use should be made of them in  interpreting
            the Contract.

14.   ADDRESSES

      14.1  The  parties  hereby  specify  that their  addresses  for receipt of
            notice as a result of this Contract are as follows.

            The Lessor - c/o Israelom  Assets Ltd. of Dizengoff  Street 253, Tel
            Aviv.  The Lessee - during  the Period of the  Tenancy at the Rented
            Premises  and,  other than  during the  Period of the  Tenancy,  c/o
            Tultzinski  Stern,  Law  Offices at the  address  prescribed  in the
            Preamble to this Agreement.

      14.2  At the  property  or at any  other  address  in  Israel of which the
            Management Company will be informed at the address in this clause.

      14.3  Any  notice in  pursuance  or as a result of this  Contract  will be
            delivered  physically to the aforesaid  addresses or will be sent by
            registered mail to that address. If sent by registered mail, it will
            be deemed to have been  received 72 hours after it was  delivered to
            the Post Office, and if delivered  physically,  it will be deemed to
            have been  received at the time that it was  delivered  or placed at
            that address.

              AND IT WITNESS WHEREOF, WE HAVE SET OUR HANDS IN THE
                     PLACE AND ON THE DATE PRESCRIBED ABOVE:

/s/ /s/ Authorized signatore                          /s/ Yaffa Beck
-------------------------------------------          ---------------------------
          The Management Company                             The Lessee

<PAGE>
                                       41

                                   APPENDIX II
                                  SPECIAL TERMS

An Appendix to the Contract  (hereafter:  the  "Contract")  dated the 1st day of
December in the year 2004 between KIRYAT HAMEIDA  V'TECHNOLOGIA 'A' PETAH TIKVAH
BM, [In English:  Petah Tikvah Science and Technology  District 'A' Ltd.],KIRYAT
HAMEIDA V'TECHNOLOGIA 'B' PETAH TIVKAH BM, [In English: Petah Tikvah Science and
Technology  District 'B' Ltd.] ATZMA  V'SHUT.  L'HASHKAOT  MACCABIM [In English:
Atzma and Partners Maccabim Investments Ltd.] (hereafter: jointly and severally:
the "Lessor") and between  BRAINSTORM  TERAPIA TA'IT BM [In English:  Brainstorm
Cellular Therapy Ltd.] (hereafter: the "Lessee")

1.    THE PURPOSES OF THE TENANCY

      The purposes of the tenancy in pursuance of this Contract are to conduct a
      research and development  business, to manufacture and market products and
      services in the field of medical biotechnology only.

2.    THE PERIOD OF THE TENANCY

      The period of the Tenancy in pursuance of this  Contract is for 36 (thirty
      six) months.

3.    THE OPTION PERIOD

      3.1   The Option  Period in pursuance  of this  Contract is for 24 (twenty
            four) months (the "First Option").

      3.2   The Lessee has the right to a further  Option  Period  (the  "Second
            Option")  of 36 months that shall  begin on the  termination  of the
            First Option. The rent and method of payment.

      3.3   The Base Index will be the index  published  on November  15,  2004,
            that is, the index for the month of October  and it is 100.6  points
            according to the base of 2002.

      3.4   The rent for each  month of the  Period of the  Tenancy in the first
            year will be a sum of NIS 17,965 (seventeen  thousand,  nine hundred
            and sixty five new shekels) (hereafter the "BASIC RENT FOR THE FIRST
            Year")and linkage  differentials will be added to the Basic Rent for
            the First Year as defined in the  Contract up until the date of each
            actual  payment (the Basic Rent for the First Year with the addition
            of linkage differentials will be called hereafter: the "RENT FOR THE
            FIRST YEAR").

      3.5   The rent for each month of the  Period of the  Tenancy in the second
            year will be a sum of NIS 19,527  (nineteen  thousand,  five hundred
            and twenty  seven new  shekels)  (hereafter  the "BASIC RENT FOR THE
            SECOND Year")and  linkage  differentials  will be added to the Basic
            Rent for the Second  Year as defined  in the  Contract  up until the
            date of each actual payment (the Basic Rent for the Second Year with
            the addition of linkage differentials will be called hereafter:  the
            "RENT FOR THE SECOND YEAR").

<PAGE>
                                       42

      3.6   The Basic Rent for the period of the First Option will be NIS 22,317
            (twenty two  thousand  three  hundred and  seventeen  new  shekels).
            Linkage  differentials  as defined in the Contract  will be added to
            the Rent for the Option Period.

      3.7   The Basic  Rent for the  period  of the  Second  Option  will be NIS
            23,712 (twenty three thousand seven hundred and twelve new shekels).
            Linkage  differentials  as defined in the Contract  will be added to
            the Rent for the Second Option Period.

      3.8   Every  payment of rent,  parking  fees and  management  fees will be
            fully  linked  to the  Index so that if the  known  Index  has risen
            compared to the Base Index, the amount of the rent will be raised by
            an amount  that is fully  equal to the rise in the  Index.  If it is
            evident that the known Index is lower than the Base Index,  then the
            calculation  and/or the payment will be made  without any  deduction
            whatsoever because of the decrease of the known Index.

      3.9   The rent, the parking fees and management  fees will be paid by bank
            transfer,  by check  drawn to the order of the Lessor or by standing
            order, once every three months (hereafter:  "QUARTER") in advance on
            the first business day at the start of the Quarter for that Quarter,

            "Business  Day" for  purposes of this  sub-clause - any day of which
            most banks are open for business in Israel.

      3.10  Before  December 15, 2004,  the Lessee will pay the Lessor an amount
            that is the  equivalent of four months rent.  The  aforesaid  amount
            will be  deemed to be  payment  for the  first  three  months of the
            Period of the  Tenancy  and for the last  month of the Period of the
            Tenancy.  Payment  of this  amount  before  December  15,  2004 is a
            principal condition of this Contract.

      3.11  In order to dispel any doubt,  it is hereby made clear that delivery
            of any check or the Lessee's  signature  on any standing  order will
            not constitute  payment of the rent and only its de facto redemption
            on  the  date   prescribed  in  the  check   together  with  linkage
            differentials to the Index as stated below in sub-clause 4.4 will be
            deemed to be receipt of the consideration and payment of the rent at
            the rate and in the amount actually paid.

      3.12  In addition to the rent, value added tax in connection with the rent
            and all other  payments in pursuance of this  Contract will apply to
            and be paid by the  Lessor,  at the  rate in force on the date of de
            facto  payment  of the rent,  and will be paid by the  Lessee to the
            Lessor  together  with the  rent  and  will be added to the  payment
            thereof.  The Lessor will issue the Lessee with a legally  valid tax
            invoice for each payment of rent as aforesaid.

<PAGE>
                                       43

      3.13  The Lessor may determine that and the Lessee agrees to the fact that
            the rent or any part thereof in as much as the Lessor so determines,
            will be paid directly to the bank account,  details of which will be
            communicated to the Lessee.  These provisions will be irrevocable in
            as much as the rights of third parties may be dependent thereon.

4.    THE MANAGEMENT FEES

      In addition to the rent,  throughout  the Period of the Tenancy and (as is
      relevant) the Option Period, if exercised,  the Lessee will pay Management
      Fees to the Management Company in accordance with and subject to the terms
      and provisions of the Management Contract (Appendix IV to the Contract).

5.    PARKING

      5.1   Throughout  the entire Period of the Tenancy and the Option  Period,
            if realized,  as may be relevant and subject to compliance  with the
            terms of the  Contract,  the Lessee will be entitled to receive from
            the  Lessor a right to use  parking  places  (in  addition  to the 5
            underground parking places that are included in the Rented Premises)
            in the parking  basement of the Building and/or in the parking areas
            within the  boundaries  of the Land,  subject  to finding  available
            parking  places in the  possession  of the Lessor at the time of the
            Lessee's request,  on the part of the Lessor and in consideration of
            NIS 220 per  month  for each  (one)  parking  place,  together  with
            linkage  differentials  as  defined  in the  Contract  and  with the
            addition of value added tax (hereafter: the "PARKING FEES").

      5.2   The Parking  Fees will be paid to the Lessor each  quarter  together
            with the rent and,  mutatis  mutandis,  all the  provisions  of this
            Contract  that  refer to the  Tenancy  of the  Rented  Premises  and
            payment of the Parking Fees will apply.

      5.3   Parking will be in accordance  with the  instructions to be given by
            the Lessor and/or the  Management  Company and/or the Manager of the
            Parking Area.

      5.4   Entry of a vehicle  to the  Parking  Area will be  regulated  on the
            basis of means of identification such as : parking tags that will be
            attached  to the  windscreen  of the  vehicle  and/or by means of an
            identification  card and/or by means of a magnetic card that will be
            issued to the user and/or in any other  manner  that the  Management
            Company deems to be  appropriate.  The right of use is contingent on
            the use of the  means  of  identification  in  accordance  with  the
            instructions of the Lessor and/or the Management  Company and/or the
            Manager of the Parking Area.

            The Lessee  and/or the user of the Parking  undertakes to return any
            means of identification  that are issued as stated to the Management
            Company  immediately on the conclusion of the Period of the Tenancy.
            Use of the parking  places is intended for  specific  and  specified
            vehicles  details  of which will be  communicated  in advance to the
            Management Company,  before any parking place is used. If the Lessee
            asks to  change  the  identity  of a vehicle  that  uses a  specific
            parking  area, he is obligated to notify the  Management  Company of
            the fact at least 24 hours in  advance,  before  using  the  parking
            place and the  Management  Company will issue the Lessee or the user
            with new means of  identification  for the new vehicle  only against
            cancellation and return of the previous means of  identification  of
            the vehicle that has been replaced.

<PAGE>
                                       44

6.    USE OF THE PATIO

      It is hereby  agreed that despite that stated in the  Contract,  if access
      exists from the Rented Premises to the patio that forms part of the public
      areas of the Building, the following provisions will apply:

      6.1   It is hereby  made  clear  that the patio  serves  as  lighting  and
            decoration only.

      6.2   The  Lessee  may not make any use of the patio and may not place any
            objects whatsoever in the patio.

      6.3   The  design of the patio in the part  close to the  Rented  Premises
            will  be the  responsibility  of and at the  expense  of the  Lessee
            subject to and after  obtaining  the Lessor's  approval of the plans
            and specifications  relating to the manner of design of the patio in
            the part bordering the Rented Premises as aforesaid.

      6.4   The Lessee,  at his own  expense,  will be  responsible  for regular
            cleaning  of the  patio on the part  close  to the  Rented  Premises
            including the windows of the Rented Premises that face the patio.

7.    INSURANCE

      7.1   The limits of liability  in the Third Party  Liability  Policy,  for
            person and property that is to be effected by the Lessee will not be
            less than as specified below:

      7.2   $ 500,000 (five hundred thousand US dollars) for one claimant, event
            and period and the deductible will not exceed $ 5,000 (five thousand
            US dollars).

      7.3   The limits of liability in the Employers Liability Policy that is to
            be effected by the Lessee will not be less than as specified below:

      7.4   $ 1,000,000 (one million US dollars) for one claimant and period. In
            the event that the Lessee employs more than 50 employees, the Lessee
            undertakes  to increase  the limits of  liability to a sum that will
            not been  less  then 2  million  US  dollars  for an event and for a
            period.

8.    SURETIES

<PAGE>
                                       45

      To guarantee the performance of all the Lessee's undertakings in pursuance
      of this Contract and in pursuance of the Management  Contract (Appendix IV
      to this  Contract),  the Lessee will  deliver to the Lessor at the time of
      signing this Agreement, a bank guarantee as specified below:

      8.1   The bank guarantee will be autonomous,  irrevocable, index linked in
            the Wording of the Bank Guarantee  (Appendix VI to this Contract) in
            the sum of NIS 135,000  (one  hundred and thirty five  thousand  new
            shekels  (hereafter:  the "BANK  GUARANTEE").  The Guarantee will be
            deposited with the Lessor.

      8.2   The Bank Guarantee will remain in force until 3 (three) months after
            the end of the Period of the Tenancy or (as is relevant)  the Option
            Period if exercised.

      8.3   The  Lessee  undertakes  to act to  extend  the  force  of the  Bank
            Guarantee from time to time or to ensure its continuous existence as
            stated  above  until the date  prescribed  thereon.  Should the Bank
            Guarantee not be extended as  aforesaid,  the Lessor may realize the
            Guarantee  in  full  or  partially  and  may  do  so  repeatedly  as
            necessary.

      8.4   The Lessee will bear, at his own expense, all the costs in regard to
            and/or that are  connected  with the cost of the Bank  Guarantee and
            stamping it.

      8.5   Should the Lessee  fundamentally  breach this Agreement,  the Lessor
            may realize the Guarantee to fully cover the damage as stated above,
            at the Lessor's  discretion  and without  being obliged to prove his
            demand  providing  that he has given written notice to the Lessor 14
            days before  realizing  the Guarantee and if the breach has not been
            repaired.

      8.6   It is  explicitly  agreed  between the parties that  exercise of the
            bank guarantee will not confer on the Lessee any right to the Rented
            Premises  and will not  prejudice  the  Lessor's  right to claim and
            obtain from the Lessee any other,  additional or alternative  relief
            of any sort whatsoever.

9.    EFFECTING INSURANCE

      Before the Lessee's entry to the Rented  Premises to carry out the work of
      adaptation  - and as a condition  for  execution of this work - the Lessee
      will  deliver  to the  Lessor  a  certificate  of the  relevant  insurance
      policies  for  the  execution  of the  work.  Before  commencement  of the
      Tenancy,  the Lessee  will  deliver a  certificate  for all the  insurance
      policies  prescribed in this  Agreement  according to Appendix V. Requests
      for changes in Appendix V will be forwarded by the Lessee to the Insurance
      Advisor of the Lessor and he will not refuse these requests, other than on
      reasonable grounds.

            AND IN WITNESS WHEREOF THE PARTIES HAVE SET THEIR HANDS:

/s/ Authorized signatore                                      /s/ Yaffa Beck
------------------------------------                         -------------------
            The Lessor                                           The LesseeExhibit
10.1

THIRD
AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

THIS
THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT (the “Third Amendment”), made and
entered into as of the 30th day of August, 2003, by and between Streicher Mobile
Fueling, Inc., a Florida corporation (hereinafter referred to as “Borrower”),
and Congress Financial Corporation (Florida) (hereinafter referred to as
“Lender”).

 

R E C
I T A L S:

 

A. On
September 26, 2002, Borrower and Lender entered into a Loan and Security
Agreement (the “Agreement”), establishing a revolving line of credit (the
“Revolving Loans”) by Lender in favor of Borrower.

 

B. Borrower
and Lender executed a Consent and First Amendment to Loan and Security Agreement
dated as of March 31, 2003 (the “First Amendment”), consenting to certain
subordinated debt of Borrower and modifying certain defined terms in the
Agreement.

 

C. Borrower
and Lender executed a Second Amendment to Loan and Security Agreement dated as
of August 29, 2003 (the “Second Amendment”), (1) permitting Borrower
to incur certain additional secured Indebtedness, and (2) releasing
Lender’s security interest in the patents (including the related trade names
utilized in such patents) constituting a portion of the Collateral, subject to
the terms and conditions stated therein.

 

D. The
amount of the additional secured Indebtedness contemplated by the Second
Amendment exceeds the actual amount thereof, and copies of certain documentation
required pursuant to the conditions precedent specified in the Second Amendment
have not yet been furnished to Lender.

 

E. Borrower
and Obligor (as defined in the Agreement) have requested that Lender
(1) modify certain terms of the Agreement in order to reflect the lower
amount of additional secured Indebtedness, and (2) consent to the
effectiveness of the Second Amendment despite certain conditions precedent
thereto having not yet been complied with, and Lender is agreeable to same,
subject to the terms and conditions hereinafter set forth.

 

NOW
THEREFORE, in consideration of the mutual covenants of the parties hereto, and
for other good and valuable consideration, it is agreed as follows:

 

1.  The
foregoing statements are true and correct and are incorporated herein as if set
forth in full.

 

2.  Unless
otherwise defined herein, all terms used herein shall have the definitions
specified in the Agreement, as modified by the First Amendment and the Second
Amendment; all references hereinafter made to the Agreement to include the
modifications thereto effectuated pursuant to the First Amendment and the Second
Amendment.

 

 

3.  The
Agreement is hereby modified as follows (all references to Sections being the
applicable Sections of the Agreement):

 

	(a)  	
      The
      following defined terms and definitions in Section 1 are amended and
      restated in their entirety to read as follows:

 

“Fixed
Charges” shall mean, for any period, the sum of the following, determined on a
consolidated basis, without duplication, for Borrower and its Subsidiaries in
accordance with GAAP: (a) scheduled principal and interest payments,
(b) capital expenditures, (c) cash income taxes, and (d) cash
dividends. For purposes of this definition, (i) the principal portion of
approximately $3,509,000 in Borrower’s Indebtedness to Borrower’s existing
lenders other than Lender being repaid on or about August 29, 2003 will be
excluded, and (ii) any non-scheduled pre-payments of principal made during
the period from the net proceeds of additional paid in capital during the same
period, will be excluded.

 

1.48 “Net
Income” shall mean for any period, for Borrower and its Subsidiaries on a
consolidated basis, the net income of the Borrower and its Subsidiaries from
continuing operations excluding any interest income and any extraordinary and/or
one time or unusual and non-recurring gains for that period. Notwithstanding
anything to the contrary herein, the $757,000.00 non-recurring gain realized
from the August 29, 2003 extinguishment of Borrower’s Indebtedness to
TransAmerica Equipment Financial Services Corporation will be included as Net
Income.

 

	(b)  	
      Section 9.9(g)
      is amended and restated in its entirety to read as
  follows:

 

(g)
Indebtedness of Borrower evidenced by the 10% Senior Secured Notes dated as of
August 29, 2003 in the aggregate principal amount of $6,925,000.00 (the
“August 2003 Indebtedness”) and secured by a security interest in Borrower’s
Vehicles and related patents, all pursuant to documentation containing terms
satisfactorily subordinating such Indebtedness to the Obligations and otherwise
acceptable to Lender

 

	(c)  	
      The
      minimum Effective Book Net Worth required pursuant to Section 9.17 is
      reduced to $11,925,000.00.

 

4.  Each and
every reference to the Agreement in the other Financing Agreements shall be
deemed to refer to the Agreement, as modified by this Third
Amendment.

 

5.  Lender’s
receipt of the following items shall no longer constitute conditions precedent
to the effectiveness of the Second Amendment, but rather the failure to furnish
each of such items to Lender on or before October 15, 2003 shall constitute
an Event of Default under the Agreement:

 

	(a)  	
      copies
      of the final executed documents evidencing and securing the August 2003
      Indebtedness in form and substance satisfactory to
  Lender;

 

2

 

	(b)  	
      a
      copy of the Amendment to Articles (hereinafter defined), certified by the
      Florida Secretary of State; and

 

	(c)  	
      such
      additional documents, instruments and agreements as are required hereunder
      as well as those which Lender or its counsel may reasonably request in
      writing furnished to Borrower on or before October 2,
      2003.

 

6.  Borrower
represents and warrants to Lender that, except as has been otherwise disclosed
to Lender in writing, the representations and warranties contained in the
Agreement and all related loan documentation are true and correct on and as of
the date hereof (with the same force and effect as if made on and as of the date
hereof, other than representations and warranties made as of a specific date
which shall be deemed made as of such date) and with respect to this Third
Amendment and the related documentation referenced herein, and that no Default
or Event of Default shall have occurred and be continuing. Specifically,
Borrower represents and warrants that its Articles of Incorporation and Bylaws,
certified on September 26, 2002 were not amended on or subsequent to their
aforesaid certification date, other than the July 23, 2003 amendment to
Articles of Incorporation increasing the number of authorized shares of common
stock from 20,000,000 to 50,000,000 shares (the “Amendment to
Articles”).

 

7.  Borrower
acknowledges and confirms that all Collateral furnished in connection with the
Agreement, except patents, continue to secure the Obligations and indebtedness
thereunder, as hereby modified.

 

8.  Borrower
and Obligor each hereby release and forever discharge Lender and each and every
one of its directors, officers, employees, representatives, legal counsel,
agents, parents, subsidiaries and affiliates, and persons employed or engaged by
them, whether past or present (hereinafter collectively referred to as the
“Lender Releasees”), of and from all actions, agreements, damages, judgments,
claims, counterclaims, and demands whatsoever, liquidated or unliquidated,
contingent or fixed, determined or undetermined, at law or in equity, which
Borrower or Obligor, had, now has, or may have against the Lender Releasees, or
any of them, for, upon or by reason of any matter, cause or thing whatsoever to
the date of this Third Amendment, whether arising out of, related to or
pertaining to the Obligations, the Financing Agreements, or otherwise,
including, without limitation, the negotiation, closing, administration, and
funding of the Obligations or the Financing Agreements. Borrower and Obligor
each acknowledges that this provision is a material inducement for Lender
entering into this Third Amendment and this provision shall survive payment in
full of all Obligations and termination of all Financing
Agreements.

 

9.  Borrower
shall pay all out-of-pocket expenses incurred by Lender in connection with the
preparation for and closing of the transaction contemplated under this Third
Amendment, including, without limitation, the fees and expenses of special
counsel for Lender. In addition, Borrower shall pay any and all taxes (together
with interest and penalties, if any, applicable thereto) and fees, including,
without limitation, documentary stamp taxes, now or hereafter required in
connection with the execution and delivery of the Agreement, as hereby amended,
and all related documents, instruments and agreements.

 

3

 

10.  Except as
expressly modified herein, all terms and provisions of the Agreement, and all
other documents, instruments and agreements executed and/or delivered in
connection with the Agreement, shall remain unchanged and in full force and
effect; provided,
however, in the
event of any inconsistency, incongruity or conflict between the terms of the
Agreement and the terms of this Third Amendment, the terms of this Third
Amendment shall govern and control. No consent of Lender hereunder shall operate
as a waiver or continuing consent with respect to any instance or event other
than those specified herein. Neither this Third Amendment nor any earlier waiver
or amendment of the Agreement will constitute a novation or have the effect of
discharging any liability or obligation evidenced by the Agreement or any
related document. This Third Amendment shall not be deemed to prejudice any
rights or remedies which Lender may now have or may have in the future under or
in connection with the Agreement or the Financing Agreements or any of the
instruments or agreements referred to therein, as the same may be amended,
restated or otherwise modified. This Third Amendment is part of the Agreement
and constitutes a Financing Agreement thereunder.

 

11.  All
covenants, agreements, representations and warranties contained herein shall be
binding upon and inure to the benefit of the parties hereto, their respective
successors and assigns, except that Borrower shall not have the right to assign
its rights hereunder or any interest herein without the prior written consent of
Lender.

 

12.  This
Third Amendment may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which, when so executed, shall
be deemed to be an original and shall be binding upon all parties, their
successors and assigns, and all of which taken together shall constitute one and
the same agreement.

 

13.  This
Third Amendment shall be governed by, and construed and interpreted in
accordance with, the laws of the State of Florida, without giving effect to its
conflict of law principles.

 

14.  LENDER,
BORROWER AND OBLIGOR EACH HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE
ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS THIRD AMENDMENT OR
THE AGREEMENT AND ANY AGREEMENT, DOCUMENT OR INSTRUMENT EXECUTED IN CONJUNCTION
HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL
OR WRITTEN) OR ACTIONS OF ANY PARTY HERETO. THIS PROVISION IS A MATERIAL
INDUCEMENT FOR LENDER ENTERING INTO THIS THIRD AMENDMENT.

 

4

IN
WITNESS WHEREOF, the parties hereto have executed this Third Amendment the day
and year first above written.

 

BORROWER:

STREICHER
MOBILE FUELING, INC., a Florida corporation

 

By:/s/Richard
E. Gathright

Name:
Richard E. Gathright

Title:
President & CEO

LENDER:

CONGRESS
FINANCIAL CORPORATION 
(FLORIDA)

 

By:/s/Pat
Cloninger

Name: Pat
Cloninger 

Title:
Vice President

5

JOINDER

 

The
undersigned: (1) acknowledges and confirms that Lender’s loans, advances
and credit to Borrower have been, are and will continue to be of direct economic
benefit to the undersigned, (2) acknowledges that it has previously waived
any right to consent to the foregoing or any future amendment to the Agreement
but, nevertheless, consents to all terms and provisions of the Third Amendment
which are applicable to it, and agrees to be bound by and comply with such terms
and provisions, and (3) acknowledges and confirms that its guarantee in
favor of Lender executed in connection with the Agreement its valid and binding
and remains in full force and effect in accordance with its terms (without
defense, setoff or counterclaim against enforcement thereof), which include,
without limitation, its guarantee in connection with the Agreement, as modified
by the Third Amendment.

 

GUARANTOR:

STREICHER
REALTY, INC., a Florida corporation

 

By:/s/
Richard E. Gathright

Name:
Richard E. Gathright

Title:
President & CEO

	 	 	 	 
	 	 	 	 
	
      6

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