Document:

EXHIBIT 10.3

AGREEMENT
FOR COMPLETE RELEASE

AND
WAIVER OF ALL CLAIMS

THIS
AGREEMENT FOR COMPLETE RELEASE AND WAIVER OF ALL CLAIMS
(hereinafter the “Agreement”) is entered into this January 4, 2007, by and
between IOMED, Inc., a Utah corporation (hereinafter “Employer”), and Mary A.
Crowther (hereinafter “Employee”).

WHEREAS,  Employee has been employed by Employer and
Employee’s employment with Employer is being terminated effective January 5,
2007, and

WHEREAS,
Employee and Employer wish to resolve any and all claims between them, and

WHEREAS, Employee
has had an opportunity to consult with counsel about her termination and this
Agreement.

NOW
THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1.                                       Termination of Employment.  Employee’s employment with Employer is terminated,
effective January 5, 2007 (the “Effective Date”).

2.                                       Payment of Amounts Owed.  Employer acknowledges that Employee is
entitled to the following amounts, which Employer either has paid or will pay
to Employee:

a)                                      Employee’s
wages for hours worked through the Effective Date of 80 hours totaling
$5,288.46, less required withholdings and deductions.

b)                                     Upon
receipt of satisfactory documentation, Employer agrees to pay Employee for all
normal and reasonable reimbursable business expenses incurred in connection
with her employment but not yet reimbursed, net of any advances made
thereon.  In the event Employee does not
have expenses equal to advances made, any outstanding advance amount will be
deducted from Employee’s final payroll check.

3.                                       Additional Amounts or Other Benefits to which
Employee is Entitled. 
Employee is also entitled to the following:

a)                                      Employee
may exercise vested stock options, if any, at any time within ninety (90) days
from the Effective Date.

b)                                     Employer
will provide Employee with disability and life insurance through January 31,
2007.  Medical and dental insurance
benefits will be in force through January 31, 2007.

c)                                      COBRA
benefits will be available to Employee effective February 1, 2007.  Employee has sixty (60) days from the Effective
Date in which to consider and make this election.

d)                                     If
applicable, Employee will be eligible to withdraw or roll over her vested
401(k) plan balance into another qualified plan.

e)                                      Pursuant
to Company policy, Employee is entitled to twenty (20) weeks severance pay in
the amount of $52,885.00.  Such amount is
based upon Employee’s years of service from April 28, 1979 and Employee’s
current annual base salary of $137,500.00, and is payable in bi-weekly
installments through salary continuation.

4.                                       Consideration for Releases and Waivers.  In consideration for the covenants,
agreements, releases and waivers contained herein, and in full and complete
settlement of all claims that Employee has or

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may have against Employer
arising out of or in connection with Employee’s employment with Employer or the
termination of such employment, Employer agrees as follows:

a)                                      To
pay Employee the sum of $42,308.00 which amount approximates four (4) months
compensation, payable in bi-weekly installments.

b)                                     Upon
Employee’s election of COBRA benefits, Employer agrees to pay, on Employee’s
behalf, the premiums for COBRA benefits (medical and dental insurance) through
October 31, 2007.  Thereafter, Employee
will be required to pay all premiums for COBRA benefits.

c)                                      In
order to facilitate the development of Employee’s future career plans, Employer
agrees to provide Employee with up to $5,500.00 for external out-placement
services and support, which shall be payable to the provider of such
out-placement services and support.

d)                                     Subject
to approval, in its sole discretion, by the Compensation Committee of the Board
of Directors, Employer agrees to amend the Employees stock option grants set
forth below so as to extend the option exercise period so that Employee may
retain the right to exercise such options at any time during the twelve (12)
month period immediately following the Effective Date of this agreement, but
only to the extent that such options were vested and exercisable as of the
Effective Date.  All other exercisable stock
options must be exercised within 90 days of the Effective Date.

	
  Date of Grant

  	
   

  	
  Number of Options

  	
   

  	
  Exercise Price

  	
   

  
	
  2/20/1998

  	
   

  	
  2,000

  	
   

  	
  $

  	
  9.00

  	
   

  
	
  5/20/1999

  	
   

  	
  10,000

  	
   

  	
  $

  	
  2.31

  	
   

  
	
  2/22/2001

  	
   

  	
  10,000

  	
   

  	
  $

  	
  4.80

  	
   

  
	
  8/29/2001

  	
   

  	
  14,000

  	
   

  	
  $

  	
  3.24

  	
   

  

 

All payments made
pursuant to paragraphs 4(a), shall be made net of withholding taxes and other
necessary and usual deductions.  Employee
acknowledges and agrees that the benefits to be provided pursuant to Paragraphs
4(a), 4(b), 4(c), and 4(d) above are benefits to which Employee would not be
entitled to receive without signing this Agreement.

5.                                       Release.  In return for the consideration set forth in
paragraph 4 above, which Employee acknowledges as being adequate, Employee
hereby unconditionally releases and forever discharges Employer and Employer’s
stockholders, subsidiaries, employees, agents, officers, directors, successors
and assigns (hereinafter collectively the “Releasees”) from, and hereby waives,
any and all causes of action, suits, damages, 
claims and demands whatsoever which Employee ever had or now has against
them, directly or indirectly, whether known or unknown, relating to or arising
out of the Employee’s employment with Employer and/or the termination of such
employment, and specifically including but not limited to any and all claims
arising under or in connection with Title VII of the Civil Rights Act of 1964;
the Fair Labor Standards Act, 42 U.S.C. Sections 1981, 1985, 1986, 1988; the
Elliot-Larsen Civil Rights Act; all amendments to such statutes; all other
federal, state and local laws; the common law of the State of Utah; any actions
based upon tort, breach of contract, defamation or any other nature relating in
any manner to Employee’s employment with Employer and/or the termination of
such employment.

Except for claims
of age discrimination, which are treated separately in paragraph 6 below,
Employee understands and agrees that this is a total and complete release and
waiver of all claims which Employee has against Employer, based upon facts
existing as of the date hereof, both known and unknown, even though there may
be facts and consequences of facts that are unknown to Employee and/or
Employer.

6.                                       Age Discrimination Release.  In addition to the releases contained in
paragraph 5 above, the parties further agree:

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a)                                      In
consideration of the benefits set forth in Paragragh 4 above, Employee
specifically releases Employer and the other Releasees from any and all
liabilities, claims, causes of action, demands for damages or remedies of any
kind or character, including claims for attorney’s fees and legal costs,
arising under or from the Age Discrimination in Employment Act of 1967 as
amended, and which are related to or arise out of Employee’s employment with
Employer or the termination of such employment, up to and including the date of
this Agreement.

b)                                     Employee
understands and acknowledges that by this Agreement she does not waive any
right or claims relating to age discrimination that may arise after the date of
this Agreement.

c)                                      Employee
is advised to consult with an attorney regarding this Agreement prior to
agreeing to and signing it.

d)                                     Employee
acknowledges that pursuant to paragraphs 18 and 19 of this Agreement she has a
period of twenty-one (21) days during which to consider it and, upon execution
of this Agreement, she has seven (7) days within which to revoke the
Agreement.                         
(Initials)

e)                                      Employee
acknowledges that she has read this Agreement, that the language and meaning of
this Agreement are sufficiently clear, and that she has understood it.                           
(Initials)

7.                                       Upon
the termination of Employee’s employment with Employer, Employee agrees not to
represent or hold herself out as an officer, agent, manager or employee of
IOMED to prospective or former clients or seek to exercise any of her former
rights or authority as a former employee of IOMED.

8.                                       No
promises have been made by Employer to Employee other than those specified in
this Agreement.

9.                                       Employee
agrees that in the event she brings suit or makes a claim or charge against
Employer or any of the Releasees, or otherwise joins any of the Releasees as a
party in any such proceeding or lawsuit based upon, relating to, or arising out
of Employee’s former employment with Employer or any of the claims, counts,
causes of action, or demands for damages or other relief that are released
under this Agreement, then Employee expressly agrees to indemnify Employer and
the other Releasees for any and all attorney’s fees, costs and/or other related
expenses that Employer or the other Releasees incur as a result of such
proceeding or lawsuit (other than a claim under the Age Discrimination in
Employment Act).

10.                                 Employee
agrees that she will promptly return to Employer any Company property and materials
in her possession or under her control, including but not limited to all
confidential and related business documents, notebooks, drawings, papers,
plans, designs, computer equipment, computer storage media, records, files, and
other communications, as well as all other IOMED property, including but not
limited to, keys, badges and credit cards.

11.                                 Covenant Not to Compete, Confidentiality
Agreement, and Agreement Not to Make Adverse Comments About Employer.  In further consideration for the benefits set
forth in paragraph 4 above, Employee agrees as follows:

a)                                      For
the period of twelve (12) months immediately following the execution of this
agreement, Employee covenants and agrees that she will not engage, directly or
indirectly, either alone or as an employee, partner, officer, director,
manager, member, consultant, agent, independent contractor or stockholder of
any company or business, in any iontophoretic business activity that is
directly or indirectly in competition with any of the products or services
being developed, sold or otherwise provided by Employer.   Employee acknowledges and agrees that the
time period and scope of activity covered by this Non-Competition Agreement are
reasonable and necessary to protect the goodwill, trade secrets and other
confidential and proprietary information of Employer.

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b)                                      Employee
agrees that she will not at any time on or after the date of signing this
Agreement, directly or indirectly, disclose or make accessible to any person or
entity under any circumstances or use in any way for her own benefit or for the
benefit of any person or entity other than Employer, or to Employer’s detriment
(i) any confidential documents and/or information evidencing, referring or
relating to the price, costs, discounts or profit margins of any goods or
services sold, purchased, or handled by the Employer or, (ii) any documents or
information evidencing, referring or relating to Employer’s or Employer’s
customer’s business plans, strategies, financial structure, designs, procedures,
information systems, administration or operations; and/or (iii) any documents
or information evidencing, referring or relating to Employer’s research and
development, processes, formulas, designs, unpatented ideas and/or inventions
and/or other trade secrets of any type; and

c)                                      Employee
agrees that she will not at any time on or after the date of signing this
Agreement will not make, directly or indirectly, orally, in writing, and/or
through any other medium, any negative, disparaging or derogatory statements to
others about Employer, Employer’s business or the other Releasees.

d)                                     The
restrictions set forth in (b) above shall not apply to information generally
available to the public or to disclosures Employee is required by law or
expressly authorized by Employer to make.

e)                                      Subparagraphs
(a), (b) and (c) above relate to matters which are of a special and unique
character and their violation may cause irreparable injury to Employer, the
amount of which will be extremely difficult, if not impossible, to determine
and which cannot be adequately compensated by monetary damages alone.  Therefore, if Employee breaches or threatens
to breach any of these paragraphs, then in addition to all other rights and
remedies, Employer shall be entitled to obtain an injunction, restraining order
or other equitable relief against Employee and such other persons and/or
entities as appropriate.

12.                                 In
the event that any action or proceeding is brought by either Employee or
Employer against the other party either to enforce this Agreement or to resolve
any dispute arising under this Agreement, the party that prevails in that
action or proceeding shall be entitled to recover from the other party all of
her/its costs and expenses, including reasonable attorney’s fees, incurred in seeking
to enforce this Agreement or otherwise incurred in connection with such action
or proceeding.

13.                                 This
Agreement shall be interpreted and enforced under the laws of the State of
Utah.

14.                                 The
parties further agree that if any part of this Agreement is determined or
adjudged by a court of competent jurisdiction to be invalid for any reason,
such judgment or determination shall not affect, impair or invalidate the
remainder of this Agreement.

15.                                 Employee
agrees for twelve (12) months after the Effective Date of her employment with
Employer, Employee will not, directly or indirectly, solicit, encourage or
induce, or attempt to solicit, encourage or induce, any other employee of
Employer to leave the employment of Employer, and will not, directly or indirectly,
recruit, solicit or hire, or attempt to recruit, solicit or hire, any other
employee of Employer to work for any other person or entity.

16.                                 It
is agreed that in the event of an inquiry or request from a prospective
employer regarding Employee’s employment with Employer, Employer will disclose
the dates of employment, the positions held with Employer, the nature of
Employee’s responsibilities and that these responsibilities were carried out in
a satisfactory and efficient manner.

17.                                 Employee
agrees she will not disclose this Agreement or its terms to any other person
except her immediate family members or her legal counsel and tax/financial
advisors.

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18.                                 The
offer set forth in this Agreement shall remain open for a period of twenty-one
(21) days from the date of receipt of this Agreement by the Employee.  During such time Employee may consider and
evaluate it and consult with an attorney of her choice regarding it.

19.                                 Upon
signing this Agreement, Employee has seven (7) days within which to revoke the
Agreement.  In order to be effective,
Employee’s written notice of revocation must be received by Employer at the
following address no later than the seventh day following the signing of this
Agreement by Employee:

Patricia Denning

IOMED, Inc.

3850 West 2441 South,
Suite A

Salt Lake City,
Utah 84120

If Employee
revokes this Agreement, she will not be entitled to the consideration set forth
in paragraph 4 above and this entire Agreement shall be null and void.

20.                                 Employee
expressly agrees and acknowledges that this Agreement cannot be construed as an
admission or evidence of any wrongdoing by Employer with respect to the
termination of Employee’s employment with Employer, and that it is not and
cannot be construed as an admission or evidence that Employee was other than an
at-will employee.

21.                                 Except
for any “Intellectual Property and Invention Agreement and Agreement Not to
Compete,” that was executed by Employee and Employer (hereinafter the “Intellectual
Property Agreement”), which shall remain in effect and be interpreted and
construed in conjunction with this Agreement, this Agreement constitutes the
entire agreement between the parties and cannot be amended except in writing
executed by both parties.  To the extent
that there are any actual or apparent inconsistencies between the Intellectual
Property Agreement and this Agreement, the terms of this Agreement shall
govern.

THIS AGREEMENT IS FREELY AND
VOLUNTARILY ENTERED INTO BY AND BETWEEN THE PARTIES WITHOUT ANY DURESS OR
COERCION WHATSOEVER, AND AFTER BOTH PARTIES HAVE HAD AN OPPORTUNITY TO CONSULT
WITH COUNSEL, AND AFTER BOTH PARTIES HAVE CAREFULLY AND COMPLETELY READ ALL OF
THE TERMS AND PROVISIONS OF THIS AGREEMENT.

THIS IS A RELEASE

	
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  Employee:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
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  Employer:

  
	
   

  	
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 5Exhibit 10.1

REF: F:/CMS/10.5.07

[TRANSLATED FROM THE HEBREW]

Unprotected Lease Agreement

Made in Rehovot on the 11th day of
May 2006

Between:

1.                                       Niber Promotions and Investments Ltd., Private
Company 511472607

37
Ben Yisrael Street, Kfar Gibton 76910

2.                                       Atido Holding Ltd, Private Company 512613902

16
Dizenchuk Street, Tel Aviv 69395

3.                                       Roller Electric Works Ltd., 512616434

P.O.
Box 827, Kfar Shmaryahu

Jointly
and Severally

(hereinafter,
the “Lessor”)

and

Kailight
Photonics Ltd., Private Company 513014332

By
its permitted signatories acting in its name:

Sagi Tzedaka, Identification Number 59225128 and Iris Sherman-Barr

Identification
Number 57097016

2
Bergman Street, Rehovot

Telephone
08-9470070; Facsimile: 08-9470771

(hereinafter,
the “Lessee”)

WHEREAS,                                The Lessor, in unequal parts divided among its
individuals, is the owner of a total area of approximately 668 square meters
(gross) on the fourth floor of the Lev Hanitzan building in the Nes Ziona
scientific park, which is built upon Block 18, Lot 3850 (hereinafter, the “Building”) as marked in yellow on the
sketch attached to this Agreement as Annex A
(hereinafter, the “Area”), and of
three underground parking spaces as will be marked by the Lessor after the
parking spaces are divided among all of the Building’s owners, and after they
are divided and

              /S/                                       /S/                                                             
/S/                                                      
/S/

ROLLER
ELECTRIC WORKS  ATIDO HOLDINGS LTD.  NIBER PROMOTIONS & INVESTMENTS LTD.  KAILIGHT PHOTONICS LTD.

WORD
POWER LTD, THE PROFESSIONAL LEGAL TRANSLATORS, TEL. 09-7444041; FAX. 09-7455327

determined
as aforesaid, they will be marked in yellow on a sketch that will be attached
to this Agreement as Annex B, and
thirteen above ground parking spaces as will be marked by the Lessor after the
parking spaces are divided among all of the Building’s owners, and after they
are divided and determined as aforesaid, they will be marked in yellow on a
sketch that will be attached to this Agreement as Annex C, (the underground parking spaces and the above ground
parking spaces will hereinafter be referred to as the “Parking Spaces”), (the
Area and the Parking Spaces will hereinafter be referred to as the “Premises”); and

WHEREAS,                                all of the Lessors are interested in leasing
the entire Premises to the Lessee by an unprotected lease, and the Lessee
wishes to lease the Premises by an unprotected lease for the period, during the
time and on the conditions that are detailed below in this Agreement; and

WHEREAS,                                in order to make the process of executing this
Lease Agreement more efficient, the Lessors appointed Mr. Joseph Barr (of Niber
Promotion and Investments Ltd.) as the sole representative on their behalf,
including for purposes of collecting lease payments, for dealing with all
matters that arise as a result of the Lease Agreement, and all without
derogating from the Lessor’s responsibility to fulfill its obligations under
this Agreement; and

WHEREAS,                                the parties wish to define their mutual
relations, rights and obligations, all in accordance with and as detailed in
this Agreement.

Therefore, it is Agreed and Conditioned among the Parties as
Follows

1.                                       Introduction

a.                                       The parties’ declarations, the preamble and the
annexes constitute an integral part of this Agreement.

b.                                      The headings of this Agreement’s sections are
for location and convenience only, and shall not serve for purposes of
interpreting this Agreement.

2.                                       The Lease and its Goals

a.                                       The Lessor hereby leases the Premises to the
Lessee and the Lessee hereby leases the Premises from the Lessor subject to and
in accordance with the provisions of this Agreement.

b.                                      The goal of the Lease is for offices and
laboratories.

 2
 

c.                                       The Lessee declares that the foregoing goal is
the only goal for which it is leasing the Premises and it hereby undertakes not
to use the Premises or any part thereof for any other purpose without the
Lessor’s prior written consent, which may be refused in the Lessor’s sole discretion
without the Lessee having any complaint or claim against the Lessor as a result
thereof.

d.                                      The Lessee represents that it is expert in the
conditions necessary for obtaining any license and/or approval and/or permit
for purposes of its operation and the work therein that are required by law,
and before executing this Agreement, the Lessee actually checked the
appropriateness of the Premises for its needs and for the Lease’s purpose, and
the possibility of obtaining licenses, permits and approvals that are required
to operate the Premises for the Lease’s purposes based upon the City Planning
Scheme and under any law, and the Lessee found the Premises appropriate for the
Lease’s purpose and therefore it hereby waives any claim of inappropriateness
of the Premises for its purpose.

e.                                       The Lessee shall be solely liable to obtain all
the required licenses and permits, to the extent required, from any local
and/or municipal and/or government and/or other authority for purposes of
managing its business and shall bear all of the payments, impositions and fees
that derive therefrom. The Lessee represents that the Lessor is not liable to
it to obtain any such license or permit.

f.                                         The Lessee undertakes to fulfill the conditions
of any such license during the course of the Lease period, and undertakes to
obey all of the laws, regulations and auxiliary statutes and all of the
conditions that are included in the operating licenses and/or operating permits
and/or operating approvals that apply to the Premises, to its use, and to the
business and activities that will take place therein during the Lease period.

g.                                      During the entire Lease period, the Lessee will
see to the renewal of any license and/or permit and/or approval that are
required for its business in the Premises such that during the entire Lease
period and during any part thereof, work in the Premises and its operation
shall be conducted as required under any law and pursuant to the City Planning
Scheme and to the conditions of any license, permit, approval, instruction,
regulation and order that are issued from time to time by any competent
authority in connection with its business that is carried out in the Premises.

 3
 

h.                                      It is agreed that the failure to obtain, the
cancellation or the suspension of any license as aforesaid shall not constitute
a justification for the Lessee canceling this Agreement, and shall not derogate
from the Lessee’s undertakings under this Agreement including the full payment
of all Rent payments.

i.                                          It is agreed among the parties that if for any
reason any legal prohibition or restraint prevents the Lessee from using the
Premises for the Lease’s purpose, the Lessee shall not be entitled to void this
Agreement, and shall not be released from the obligation to carry out — in a
full and timely manner — all of its obligations, including the payment of the
Rent during the entire Lease period.

3.                                       Inapplicability of Tenant
Protection Law

The
Lessee represents and warrants that:

a.                                       It did not invest, did not pay and did not
undertake to pay any amount of money or any other payment of any kind for or in
connection with changes, renovations, repairs, additions, improvements and
installations of any kind to the Premises that grant it any rights against the
Lessor. To the extent that the Lessee paid any amount whatsoever, or any other
payment of any type, or if it undertook to make any such payment as stated
above, or if it makes any investment in the Premises, including equipment and
apparatus, it shall not be entitled to claim that the payment and/or investment
constitutes key money or a payment under Section 82 of the Tenant Protection
Law (Consolidated Version) — 1972, and such payment and/or investment shall be
considered a voluntary act of the Lessee that does not grant it any right of
any type against the Lessor.

b.                                      It did not pay or undertake to pay in any form
or manner, and the Lessor did not receive and did not undertake to receive in
any manner, any key money and/or payment for and/or in connection with the
Premises’ lease other than Rent under this Agreement, and the Lessee agrees
that it shall not be entitled to any key money and/or payment and/or
consideration and/or compensation of any kind or type when and/or as a result
of vacating the Premises.

c.                                       That the provisions of the Tenant Protection
Law (Consolidated Version), 5732-1972, including any regulations thereunder in
the past or in the future, and any other law or regulation to protect tenants
shall not apply to the Lease of the Premises by the Lessee under this
Agreement,

 4
 

                                                and the Lessee is not and shall not be a
protected tenant and/or entitled to any rights thereunder, and without
derogating from the generality of the foregoing, under the provisions of any
law that limit the Lessor’s right to eject the Lessee from the Premises whether
during the Lease period or after its conclusion, even if the Tenant Protection
Law and/or any other law or regulation is amended, and the Lessee shall be
required to vacate the Premises at the end of the Lease period and under this
Agreement and/or upon its termination under this Agreement without the Lessee
being entitled to any payment and/or right whatsoever from the Lessor and/or
from any third party whatsoever in consideration of and/or following its
vacating the Premises.

4.                                       Lessee’s Representations

a.                                       The Lessee represents that:

1)                                      Before executing this Agreement, it saw,
inspected and tested the legal, planning and physical condition of the Building
and the Premises, including its approaches and surroundings and the City
Planning Schemes applicable to it and every other detail connected to it;

2)                                      That it found the Building and the Premises in
good condition AS IS, in good repair and fit for use, and appropriate in every
respect for its goals, subject to the Lessor’s undertaking to carry out the
work pursuant to the change detail that is Annex
D to this Agreement, and based upon the division of costs for
performing the work, all as detailed in Section 13 below, and subject to a Form
4 being granted for the Premises at the delivery of possession and to the two
Building elevators working (one freight elevator and one passenger elevator)
and to the Premises being connected to three-phase electricity (subject to the
Lessee signing the required Electric Company documents for purposes of
receiving an electric meter for the Premises). The Lessee hereby waives any
claim of any type or kind regarding the Premises and/or the Building, including
any claim of choice due to blemish and/or defect and/or inappropriateness
and/or failure to obtain a license and/or the possibilities for its use.

3)                                      It is legally authorized to enter into this
Agreement, and there is no legal or [other] impediment to its entering into the
provisions of this Agreement, or to using the Premises for the purpose of this
Agreement.

 5
 

4)                                      That it knows that the Lessor is authorized to
perform work on the project, in the Building and around it, including
development work, changes, renovations, additional construction, etc. during
the entire Lease period, and the Lessee is not entitled to object and to
disturb the performance of such work and shall not have any complaint and/or
claim against the Lessor therefor, provided that it is not prevented from
reasonable and appropriate use of the Premises themselves and of the access
thereto due to any of the foregoing.

5)                                      That it was notified by the Lessor that the
Lessor shall be entitled to operate and/or sell and/or lease its rights to the
other units in the Building and/or the project to any third party for any
purpose, even if this purpose is identical to the Lease’s purpose under this
Agreement, and the Lessee shall not have any complaint and/or claim against the
Lessor therefor.

5.                                       Lease Period

a.                                       The Lessor hereby leases the Premises to the
Lessee and the Lessee hereby lease the Premises from the Lessor for a period of
forty-eight months beginning on 1 July 2006 until 30 June 2010 (hereinafter,
the “Lease Period”).

b.                                      The Lessee is hereby granted the right to
extend the Lease Period for two option periods, as follows: the first option —
to extend the Leaser Period for an additional twenty-four month period
beginning on 1 July 2010 and ending on 30 June 2012 (hereinafter, the “First Option Period”), the second option —
for an additional period of twenty-four [months] beginning on 1 July 2012 and
ending on 30 June 2014 (hereinafter the “Second
Option Period”) (the two option periods shall be referred to below
as the “Option Period”), provided
that all of the following conditions are fulfilled:

1)                                      The Lessee shall deliver prior written notice
to the Lessor at least ninety days before the conclusion of the Lease Period
and ninety days before the end of the First Option Period, respectively, that
it wishes to exercise the option;

2)                                      The Lessee shall have fulfilled all of its
undertakings under the Lease Agreement to that point totally and completely
during the entire Lease Period;

 6
 

3)                                      The Lessee shall have attached security to the
foregoing notice as detailed in Section 14 below;

4)                                      The Lessee shall have attached to the foregoing
notice a confirmation from the insurance company regarding the extension of the
effectiveness of the insurance policies cited in Section 8 below.

c.                                       Subject to the provisions of Section 5b above,
if the Lessee exercises the option, all of the provisions of this Agreement
shall apply to the Option Period mutatis mutandis, except for the Lessee not
having the right to extend the Lease Period at the end of the Option Period,
and in any place where this Agreement says “Lease Period,” that period shall
also be deemed to include the Option Period.

d.                                      The Lessee shall not be authorized to truncate
the Lease Period and/or the Option Period, and it shall be required to make the
Lease payments during the entire Lease Period or Option Period (if it exercised
the Option) whether or not it used the Premises. Notwithstanding the foregoing,
the Lessee shall have the right to terminate the Lease under this Agreement
before the end of the Lease Period if all of the following conditions occur:
(a) the Lessee gave written notice thereof to the Lessor six months before the
end of the third year of the Lease Period only (hereinafter, the “Notice”) then the Lease Period will end six
months from the date of the Notice’s receipt which shall be called the exit
date; (2) the Lessee fulfilled all of its undertakings under this Agreement and
made all of the payments it was required to make until the exit date; (3) the
Lessee shall attach a check to the Notice that shall constitute payment for the
relative portion of the Work and changes that were made to the Premises under
Annex D to this Agreement for the Lease Period that was not used pursuant to
the parties’ agreement and that has been determined to be $20,000 plus value
added tax as required law.

e.                                       The Lessee undertakes to appear at the Premises
on the date of delivery of possession, that is 1 July 2006, in order to accept
possession of the Premises and to verify its acceptance in writing. For the
avoidance of doubt, it is hereby clarified that whether or not the Lessee
appears on the date of delivery of possession in order to accept the keys to
the Premises and/or certifies its acceptance of the Premises in writing, all of
its undertakings and obligations under this Agreement will apply to the Lessee,
including, without limitation, the payment of Rent and 

 7
 

                                                management fees, and the Lessee shall be deemed
to have accepted possession of the Premises on that date.

6.                                       Rent

a.                                       The monthly rent for each month of the Premises’
Lease during the first year is an amount in New Israeli Shekels equal to $7171
(seven thousand one hundred and seventy-one dollars) plus value added tax at
the rate that is in effect from time to time pursuant to any law that is in
effect at the date fixed for paying the Rent (hereinafter, the “Rent”). The
Rent is pursuant to the division detailed below: a. For the Premises as defined
in the first recital: an amount equal to $9.50 plus value added tax for each
square meter, and in total $9.50 x 668 square meters = $6346 plus value added
tax; b. $80 for each underground parking space and in total $80 x 3 underground
parking spaces = $240 plus value added tax; c. $45 for each above ground
parking space and in total $45 x 13 above ground parking spaces = $585 plus
value added tax.

b.                                      In the second and third years of the Lease
Period, Rent for each month under the Lease of the Premises will be an amount
in New Israeli Shekels equal to $7505 plus value added tax.

c.                                       In the fourth year of the Lease Period, Rent
for each month under the Lease of the Premises will be an amount in New Israeli
Shekels equal to $7839 plus value added tax.

d.                                      In each year of the Option Period, the Rent
will rise by an additional 5% compared with the Rent that was paid in the last
month of the previous year.

e.                                       Rent for the first three months of the Lease
shall be paid upon this Agreement’s execution. The Rent for three additional
months, that is the fourth, fifth and sixth months, shall be paid upon this
Agreement’s execution by a check post-dated to the date of delivery of
possession of the Premises, that is to the beginning of the Lease Period. The
Rent for the remaining Lease months shall be paid every three months in advance
beginning from the seventh month from the beginning of the Lease Period on the
first day of each quarter as aforesaid. In the event that the payment date
falls on the Sabbath or on a Holiday, then the payment date shall be postponed
to the next succeeding business day.

f.                                         All of the Rent without exception shall be paid
by the Lessee to the three individuals of the Lessor based upon the following
division: 12.87% to Lessor number 1, 22.38% to Lessor number 2 and 64.75% to

 8
 

                                                Lessor number 3, against the receipt of
separate invoices from each of the individual Lessors pursuant to its
percentage interest in the Premises.

g.                                      The Rent shall only be paid on a date that a new
representative rate of exchange for the United States dollar is published by
the Bank of Israel, on which trading takes place in foreign currency at the
commercial banks in Israel, and that is published no later than 11:00 AM.
Payment shall be calculated based upon the representative rate that is
published by the Bank of Israel on the payment date. Any payment that is made
after 11:00 AM and/or on a date on which a representative rate of exchange is
not published by the Bank of Israel and/or on which no such trading in foreign
currency takes place shall be calculated based upon the higher of the first
representative rate that is published after payment is made or based upon the
representative rate that was known at 11:00 AM on the date fixed by this Agreement
for payment.

h.                                      Payment of Rent or any other payment that falls
upon the Lessee under this Agreement in a full and timely manner is a principle
condition of this Agreement, and the failure to timely make any payment where
the delay exceeds fourteen days shall be considered a fundamental breach of
this Agreement by the Lessee and shall grant to the Lessor all of the remedies
under this Agreement and/or under any law, including the right to seek to eject
the Lessee from the Premises immediately after the delay in payment. Without
derogating from the Lessor’s right to demand that the Lessee vacate the
Premises and any other remedy, if the Lessee is late in paying the Rent or any
other payment to the Lessor under this Agreement, such amount shall be paid based
upon the higher of the following dollar exchange rates: the known exchange rate
on the date of actual payment or the exchange rate at which the payment should
have been made to the Lessor under this Agreement. Similarly, the amount that
is late shall be paid with default interest at the highest rate then in effect
at Bank Leumi for Shekel-denominated current loan accounts beginning on the
first day of lateness and until the actual payment date. Similarly, in this
case, the entire Rent payment for the entire Lease Period may be accelerated.

7.                                       Taxes and Expenses

a.                                       All of the following payments shall apply and
shall be paid by the Lessee to the extent that they relate to the period from
the beginning of the Lease Period until the later of the end of the Lease
Period and/or 

 9
 

                                                until the date on which the Lessee vacates the
Premises and actually returns them to the Lessor.

1)                                      City taxes (Arnona), fees, impositions,
required payments and all governmental or municipal taxes that apply and/or
that may apply in the future to the Lessee and/or the Premises and/or that are
for services that are delivered to the Lessee and/or on its behalf, and
including business taxes, billboard taxes and any tax or fee or imposition that
applies to the Lessee under any legal provisions.

2)                                      Payment of the ongoing expenses including, and
without derogating from the generality of the foregoing, payments of management
fees to the management company, electricity, water, air conditioner
maintenance, etc. In any event, the Lessee shall not be required to pay more
than its share in these expenses if the rest of the building is not populated.

3)                                      Management fees at a rate to be fixed by the
management company. Management fees shall be paid directly to the management
company on the dates set forth in the management agreement.

b.                                      The Lessee undertakes to notify the city of Nes
Ziona, the Electric Company, and the Bezeq Company immediately upon this
Agreement’s execution that it is obligated to pay the municipal taxes, the
electricity and the telephone to them. The Lessee shall deliver to the Lessor a
power of attorney to carry out these acts on its behalf.

c.                                       The Lessee undertakes to produce to the Lessor
from time to time upon the Lessor’s demand copies of all of the receipts and
certifications to prove payment of all of the payments that apply to it under
this Agreement’s terms.

8.                                       Insurance

a.                                       Without derogating from the Lessee’s
undertakings under this Agreement, under any law, and under the terms of the
management agreement, the Lessee undertakes that before it takes possession of
the Premises, it will arrange and keep the insurances detailed below
(hereinafter, the “Lessee’s Insurances”)
in effect during the entire Lease Period with a legally licensed insurance
company of good repute, that it shall timely pay the premiums therefor, and
that it shall fully and exactly carry out all of the provisions of the
insurance policies:

 10
 

1)                                      Expanded fire insurance with a rider to include
the premises’ contents, including equipment, inventory, furniture and fixtures
that were installed by the Lessee, and anything that serves the Premises and is
located therein, near it and/or attached to it, and any change, improvement or
addition to the Premises that was made and/or may be made in the future by the
Lessee and/or on its behalf, at their full replacement value, against loss or
damage as a result of the customary risks; “expanded fire” to include as a
result of fire, smoke, lightning, explosion, earthquake, riots, strikes,
deliberate damage, storm, downpour, flood, damage from leaks and collapses,
damage from motor vehicles, damage from airplanes, theft and robbery.

The
insurance shall include an explicit condition pursuant to which the insurer
waives its subrogation right against the Lessor, the management company and
their employees and against other lessees/purchasers in the project in whose
insurance a similar paragraph regarding the waiver of subrogation against the
Lessee is included, provided that the foregoing regarding the waiver of
subrogation shall not apply to the benefit of a person who deliberately caused
damage.

The
Lessee undertakes to update the insurance amount from time to time so that it
always reflects the full replacement value of the insured property thereunder.

2)                                      Third party liability insurance under the laws
of the State of Israel, which insures the Lessee’s liability or that of anyone
acting on its behalf against loss, injury or damage that occur on the Premises,
in areas that are attached to it that fall under the Lessee’s responsibility
and/or that are in its possession and vicinity, to the person and/or property
of any person and/or entity whatsoever, including, and without derogating from
the generality of the foregoing: its guests, invitees, customers,
subcontractors and their employees, including without limitation as a result of
the activity or business of the Lessee and/or those acting on its behalf, with
liability limits in an amount equal to $3500 per square meter of the Premises,
but the said amount shall not decline and shall not exceed $1,000,000 (one
million United States dollars) per incident and in the aggregate during the
insurance period.

 11
 

This
insurance shall not be subject to any limitation regarding liability resulting
from fire, explosion, riot, lifting, loading or unloading apparatus, damaged
sanitary equipment, poison, anything that damages food or drink, strike and
lockout and also to limitations for subrogation and/or return claims from the
National Insurance Institute.

The
insurance shall be expanded to indemnify the Lessor, the management company
and/or persons acting on their behalf, subject to the cross liability section,
pursuant to which it shall be deemed to have been separately made with each of
the individual Lessors.

3)                                      Employer’s liability insurance that insures the
Lessee’s liability according to all of its employees for bodily, emotional or
mental damage or death as a result of an accident or sickness under the Tort
Ordinance and/or the Defective Products Law in an amount of 5,000,000 United
States dollars and/or in the maximum amount that is customary in Israel at the
date of the insurance’s issuance and/or renewal. This insurance shall not
include any limitation regarding working hours, contractors, subcontractors and
their employees, baits and poisons and also regarding the employments of youths
and work at heights.

The
insurance under this paragraph shall be expanded to indemnify the Lessor, the
management company and/or those acting on their behalf in the event that it is
claimed regarding the occurrence of any work accident and/or illness whatsoever
that they have any obligations of an employer to any of the Lessee’s employees.

4)                                      Consequential damage insurance other than loss
of the management fees due to the risks set forth in paragraph 8a above, at
their full value during an indemnity period that shall not be less than twelve
months. The insurance shall include a paragraph waiving the right of
subrogation against the Lessor, the management company and those that act on
their behalf, and against other lessees/purchasers in the Building in whose
consequential damage insurance there is a similar paragraph regarding waiver of
the subrogation right against the Lessee and provided that any such waiver
shall not apply to the benefit of any person who deliberately caused damage.

 12
 

Notwithstanding
the foregoing, it is hereby agreed that the Lessee is entitled not to take out
consequential damage insurance as aforesaid in this paragraph, in whole or in
part, but in that instance the Lessee waives the right of claim against the
Lessor or the management company for consequential loss, and what is stated in
paragraph 8e regarding an exemption from liability shall apply as if the Lessee
took out consequential damage insurance in full for which the Lessee is considered
to be fully indemnified without any right of return or subrogation against any
of the foregoing.

b.                                      All of the insurances listed in Section 8a
shall include the following explicit conditions:

1)                                      The Lessee’s insurances precede any insurance
that is taken out by the Lessor and/or by the management company and are “first
line insurance” without a participation right of the Lessee’s insurers in the
Lessor’s and/or the management company’s insurance, and without the right to
claim from the Lessor’s and/or the management company’s insurers to divide the
weight of the obligation under Section 59 of the Insurance Contracts Law,
5741-1981.

2)                                      It is an explicit condition that the Lessee’s
insurance coverage shall not be reduced or canceled during the insurance period
unless the insurer gives explicit notice thereof to the Lessor and to the
management company by registered mail at least thirty days in advance.

c.                                       The Lessee undertakes to renew the above
insurances as each insurance period ends and to carry them at all times during
the Lease Period.

d.                                      No later than taking possession of the
Premises, the Lessee shall provide the Lessor and the management company with a
certificate from its insurer regarding the arrangement of the Lessee’s
insurance as detailed in the form attached to this Agreement as Annex E to this Agreement (Certificate of
Insurance Company Arrangements).

e.                                       The Lessee represents that it will have no
complaint and/or demand and/or claim against the Lessor and/or against the
management company and/or against those acting on their behalf and/or against
other lessees/buyers and those having rights in the Building in whose contracts
and/or in any other document that grants them rights in the

 13
 

                                                Building there is a similar paragraph regarding
exculpation from liability to the Lessee for damage for which it is entitled to
be indemnified (or for which it would be entitled to be indemnified but for the
co-payment that is contained in the policy and/or a breach of the policy’s
conditions and/or underinsurance), based upon the Lessee’s insurances that are
in force under Section 8a above, and provided that the foregoing regarding
exculpation from liability shall not apply to the benefit of one who
deliberately caused damage.

f.                                         If in the Lessee’s opinion there is a need to
take out additional and/or complementary insurance beyond the Lessee’s
insurances, then the Lessee undertakes to take out and maintain the additional
and/or complementary insurance as aforesaid. The Lessee undertakes that any
additional and/or complementary insurance to the Lessee’s insurances shall
include a paragraph regarding waiver of subrogation against the Lessor and/or
the management company regarding property insurances and/or the named insured
shall be expanded to include the Lessor and the management company with respect
to liability insurance, subject to the cross-liability section.

g.                                      Without derogating from the Lessee’s
undertakings as stated above, in the event that the Lessee does not take out
any of the insurances that it is obligated to take out under this Section, the
Lessor shall be entitled — but not obligated — to take out the aforesaid
insurance for the Lessee’s account. In such an event, the Lessee undertakes to
immediately return to the Lessor all of the amounts that the Lessor expends on
taking out these insurances, together with default interest at the highest rate
that is customary at Bank Leumi l’Israel for Shekel-denominated current loan
accounts, all from the date of payment of any amount by the Lessor and until
its actual receipt  by the Lessee to the
Lessor.

h.                                      The Lessor shall ensure that the Building is
insured with building insurance, and the Lessee shall participate to the extent
of its pro rata share in the cost of this insurance as part of the management
fee it is required to pay.

9.                                       Liability

a.                                       The Lessee will be liable for all of the
damages of any kind or type that are caused to the Premises and/or the Building
and/or the project and/or the Lessor and/or to any third party who is on the
Premises and/or in the Building and/or the project, and that derive from acts
and/or omissions of the Lessee, including acts [and] omissions of its
employees, invitees, 

 14
 

                                                clients, persons acting on its behalf and/or as
a result of managing its business on the Premises. It is also agreed that the
Lessee shall be liable at its expense for arranging periodic, orderly and
professional maintenance to the air conditioners on the Premises, including
cleaning the filters, locating drips and leaks and the required ongoing
maintenance that is required pursuant to the manufacturer’s instructions. In
the event of defects in the Work, as defined in Section 13 below, which were
not caused as a result of the Lessee’s act or omission, the Lessee shall give
notice thereof in writing to the Lessor and the Lessor shall repair them.

b.                                      The Lessor shall not bear any liability or
obligation whatsoever for any damage that is caused to the Premises and/or the
Building and/or the project and/or bodily harm and/or loss and/or property
damage of any kind that is caused to the Lessee and/or to its visitors and/or
to any other person who is on the Premises or on his way to or from the
Premises, and the Lessee takes upon itself the full liability for any damage of
this sort and undertakes to compensate and indemnify the Lessor against any
tort compensation that it may be obligated to pay or that it may be forced to
pay as a result of such damage and against any expense that the Lessor expends
in connection with any such damage as aforesaid together with default interest
at the highest rate that is customary at Bank Leumi l’Israel for
Shekel-denominated current loan accounts.

c.                                       The Lessee undertakes to compensate the Lessor
and to indemnify it against any damage or expense that is caused to the Lessor
due to any claim whatsoever that is filed against the Lessor, whether criminal
or civil, to the extent that such claim derives from the failure to fulfill any
undertaking by the Lessee under this Agreement or as a result of the Lessee’s
behavior. In the event that fines are imposed on the Lessor as a result of the
Lessee’s actions, the Lessor shall be entitled to indemnification from the
Lessee.

10.                                 Assignment

a.                                       The Lessee undertakes not to deliver and/or
transfer and/or assign and/or give as a gift and/or pledge and/or in any other
way all or any of its rights under this Agreement and not to deliver the
possession and/or use of the Premises and/or to lease the Premises and/or any
part thereof by a sublease and/or otherwise and not to permit any person and/or
entity to use the Premises and/or any part thereof whether with or without
consideration. The Lessee shall not transfer its shares to another without the
Lessor’s prior written consent. By executing this 

 15
 

                                                Agreement, the parties specifically determine
that Section 22 of the Leasing and Borrowing Law, 5731-1971 or similar legal
provisions that are enacted in the future shall not apply to the parties’
relations under this Agreement.

b.                                      Notwithstanding the foregoing in this Section,
the Lessee shall be entitled to lease part of the Premises by sublease provided
that all of the following conditions are fulfilled: (a) Before leasing part of
the Premises by a sublease, the Lessor shall give its prior written consent to
the sublessee’s identity. (b) The Lessee shall produce a signed approval from
the sublessee in the form attached as Annex G.
(c) The goal of the sublease shall be solely in accordance with the permitted
uses under the city Planning Scheme. (d) The sublessee shall undertake to
fulfill all of the Lessee’s undertakings pursuant to this Agreement. (e) The
Lessee shall be solely liable vis à vis the Lessor for any of the sublessee’s
acts and/or omissions and every breach of this Agreement by the sublessee shall
be deemed a breach of the Lessee’s undertakings to the Lessor. (f) The
sublessee shall have no direct rights against the Lessor and the sublease shall
be conditioned upon this Lease Agreement with the Lessee being in effect and it
shall immediately be terminated with this Agreement’s termination and/or with the
completion of the Lease Period under this Agreement.

Notwithstanding
the foregoing in this Section, the Lessee shall be entitled to propose a
substitute lessee to the Lessor, whose identity shall receive the Lessor’s
prior written approval in its sole discretion, and the substitute lessee shall
execute an agreement that is identical to this Agreement’s provisions and shall
provide the security required by this Agreement without the Lessor being
required to make any changes in the Premises, and in such an event of a
substitute lessee, the Lessor shall make the Rent payments and shall fulfill
all of its undertakings under this Agreement until the beginning of the Lease
Period with the substitute lessee.

c.                                       The Lessor shall be entitled to transfer and/or
assign and/or sell the Premises, including its rights in the Premises under
this Agreement, in whole or in part to any person and/or entity, without the
need for the Lessee’s consent, provided that the Lessee’s rights under this
Agreement are not impaired. The Lessee undertakes to execute any document that
is required, if any, in connection with the Lessor’s transfer of its rights in
the Premises.

 16

11.                                 Lessee’s Undertakings

The Lessee undertakes:

a.                                       To permit the Lessor and/or the management
company and/or their agents to enter into the Premises with prior coordination
at any reasonable time in order to inspect the Premises’ condition and/or to
show it to people and/or to other lessees and/or to carry out repairs on the
Premises and this even if the repairs relate to another unit in the Building
and have to be carried out from within the Premises. The Lessee hereby waives
in advance any complaint or claim that is based upon the foregoing activities
or that is based upon disturbance to its convenience. For the avoidance of
doubt, it is clarified that the Lessor and/or the management company are under
no obligation to carry out any repairs on the Premises.

b.                                      To use the Premises in a careful and proper
manner and to prevent any breakage or damage in it, and if at any time there is
any damage or breakage on the Premises or in any area connected therewith, to
immediately repair any such damage or breakage at its expense except for
reasonable wear and tear. In the event that the Lessee does not follow this
paragraph’s conditions, the Lessor shall be entitled, without derogating from
its right to any other cure or remedy to claim the price or estimated price of
the repairs or of the estimated expenses of repairing any damage from the
Lessee, whether during the Lease Period or thereafter, even without the Lessor
actually carrying out the repairs, or the Lessor may repair the damages.

c.                                       Not to store or leave equipment, tools,
materials, scraps, cartons, possessions, garbage, and other portables in the
entrance or outside the Premises, including not making any change of any type
that could change the Building’s outside façade.

d.                                      To conduct its business only within the
Premises and it shall not be entitled to use any other part of the Building.

e.                                       To keep and perform all of the instructions,
laws, auxiliary laws, regulations, orders, and City Planning Schemes of any
competent authority that apply to the Premises and/or regarding the use of the
Premises.

f.                                         To see to it that its employees and any other
person acting on its behalf shall behave properly within the project, Building
and Premises, in a manner that is appropriate to the project’s character.

 17
 

g.                                      To properly obtain any license as is required
to manage its business on the Premises.

h.                                      To maintain the Premises’ and its surroundings’
cleanliness and to use the Premises in a manner that will not cause tremors
and/or pollution and/or smoke and/or noises and/or smells and/or nuisance
and/or unpleasantness to the Building’s tenants and/or the project and/or
visitors to the Building and/or the project.

i.                                          Not to hang signs on the Premises’ outside
walls except in such place and being of such size and shape as shall receive
the prior written approval of the Lessor and the management company and
provided that these signs shall be erected with a license from the competent
authorities and provided that all of the fees and payments for the signs are
paid by the Lessee. It is clarified that the Lessor and the management company
are not obligated to approve every hanging of signs by the Lessee and that such
an approval shall be subject to the sole discretion of the Lessor and the
management company. If signs are erected pursuant to this Agreement’s
provisions, the Lessee undertakes to dismantle and remove them upon the
completion of the Lease Period, and to repair at its expense any damage (if
any) that is caused to the Premises and/or to the Building as a result of the
signs being erected or their removal.

j.                                          Not to park their vehicles and/or other
vehicles that they use except in the spaces that are included in the Premises.

k.                                       In the event that fines are imposed on the
Lessor as a result of the Lessee’s actions, or in the event that the Lessor
incurs expenses as a result of the Lessee’s actions, the Lessee shall
compensate the Lessor for any damage that is caused to the Lessor as a result
thereof.

l.                                          The Lessee shall be entitled to make use of the
floor protected space that is located on the same floor as the Premises,
provided that it also fulfills all of its obligations under this Agreement with
respect to the floor protected space and subject to the provisions of any law
and/or authorities and/or home front command and/or civil guard. Similarly, the
Lessee undertakes to clear out the floor protected space and permit its use if
it is required to do so by the authorities and/or the home front command and/or
the civil guard, within twenty-four hours of the date that it is required to do
so as aforesaid. The foregoing does not derogate from the Lessee’s undertaking
to fulfill all of this Agreement’s provisions regarding the floor protected
space vis à vis the Lessor,

 18
 

                                                including, but not only, regarding vacating it
on the conclusion of the Lease Period in accordance with this Agreement’s
provisions.

12.                                 Repairs to the Premises

a.                                       The Lessee hereby agrees and confirms that the
Lessor or persons acting on its behalf shall be entitled but not obligated to
make any repair and/or other act that the Lessee is required to make under this
Agreement in place of the Lessee, and to claim the expenses that it incurred,
and this without derogating from the Lessor’s other rights under this
Agreement, and the Lessee undertakes to return immediately to the Lessor upon
its first demand all of the expenses that the Lessor incurs as a result
thereof, including default interest at the highest rate in effect at Bank Leumi
l’Israel for Shekel-denominated current loan accounts, all from the date of
payment of any amount by the Lessor until its actual receipt by the Lessee for
the Lessor, and all and this  without
derogating from any other rights that the Lessee has under this Agreement or
any law. For the avoidance of doubt, it is hereby clarified that nothing in
this Section shall release the Lessee from its liability to carry out the said
repairs.

13.                                 Changes to the Premises

a.                                       The Lessor undertakes to make all of the
changes and to carry out all of the work on the Premises that is detailed in
the annex that is attached to this Agreement as Annex D through a third party no later than the beginning of
the Lease Period (hereinafter, the “Work”).
Notwithstanding any other provisions of this Agreement, it is agreed that a
delay of up to two weeks in performing the Work shall not be deemed a breach of
this Agreement and shall not entitle the Lessee to any cure and/or remedy and
the Lessee shall have no complaint to the Lessor due to such a delay. In the
event of such a delay, the commencement of the Lease Period shall be delayed
accordingly. The Lessor shall bear the cost of the Work up to $240 per square
meter plus value added tax. The entire cost of performing the work beyond the
amount of $240 per square meter plus value added tax (hereinafter, the “Remaining Work”) shall fall upon and be
paid by the Lessee immediately upon demand therefor by the third party and
subject to the third party’s consent to perform the Remaining Work. If the
third party does not consent to perform the Remaining Work, or if the Lessee
does not pay the aforesaid amount to the third party, the third party shall be
exempt from performing the Remaining Work, and the Premises shall be deemed to
have been accepted by the Lessee as it was supposed to be 

 19
 

                                                at the delivery date, and from that time
onwards, the Lessee shall be obligated to keep all of this Agreement’s
provisions that apply from the date that possession is delivered. For the
avoidance of doubt, it is hereby clarified that in any event in which the Work
is not completed when the Lease Period is scheduled to begin, that is on 1 July
2006, due to an act and/or omission of the Lessee, the Premises shall be deemed
to be accepted by the Lessee in the condition in which it was to be on the date
that possession is delivered, that is on 1 July 2006, and from that time
onwards the Lessee shall be obligated to keep all of this Agreement’s
provisions that apply from the date of delivery of possession, that is from 1
July 2006.

b.                                      The Lessee undertakes not to make any changes
and/or additions and/or construction work of any type and kind in the Premises
without receiving prior written permission from the Lessor. The Lessor shall be
entitled to refuse the Lessee permission to carry out the changes on reasonable
grounds, and the Lessee shall not have any complaint and/or claim against the
Lessor as a result thereof.

c.                                       In the event that the Lessor confirmed in
writing to the Lessee that certain changes to the Premises could be made, all
of the expenses that are involved in performing the work and/or changes shall
fall solely upon the Lessee and it shall also be responsible to obtain each
building permit in each event in which there is a need therefor. The Lessee
shall not carry out any change and/or work that is connected with the issuance
of a building permit from any competent authority unless the Lessee legally
obtained a permit and subject to the prior written approval of the Lessor.

d.                                      The Lessee shall pay any fee, tax or imposition
that is involved in obtaining any building permit in any event in which there
is a need for one in order to carry out the work set forth in clauses b and c
above, and shall be solely liable for all of the work that is carried out, and
shall insure its employees and/or agents at its own expense against any damage
and/or loss they may incur during and/or following from and/or as a result of
performing the work, and it shall take out third party insurance against any
damage and/or loss that are liable to occur to the Lessor and/or to the
Premises and/or to any third party. The Lessee shall see to it that the
insurance policies shall include the Lessor as an additional insured without a
right of subrogation and without the Lessor having any obligation to pay
insurance premiums. The Lessee shall not be entitled to perform any work or
changes before the foregoing 

 20
 

                                                insurance in this Section is arranged and
before a copy of this policy is presented to the Lessor.

e.                                       Any change made by the Lessee not in accordance
with this Agreement shall be deemed a fundamental breach of this Agreement that
shall grant to the Lessor all of the remedies that it has under any law and
under the Agreement, including the right to demand the immediate vacating of
the Premises or to instruct the Lessee to demolish the work and changes, and in
that case, the Lessee shall be required to demolish the said work and/or
changes at its expense and to carry out all that is required to return the
Premises to their previous state within seven days of the date that the Lessor
demands that it do so. Without derogating from the Lessee’s obligation to do
so, in the event that the Lessee does not return the Premises to their previous
state, the Lessor shall be entitled — but not obligated — to do so for the
Lessee’s account and in that event the Lessee undertakes to immediately refund
to the Lessor upon its first demand all of the expenses that it incurs in doing
so, together with default interest at the highest rate in effect at Bank Leumi
l’Israel for Shekel-denominated current loan accounts, all from the date of payment
of any amount by the Lessor and until its actual receipt by the Lessee to the
Lessor, and everything and this being without derogating from the other rights
that the Lessee has in its possession under this Agreement and/or any law.

f.                                         Similarly, any change that is made in the
Premises, including a change with respect to which the Lessor has consented,
shall be deemed to be the Lessor’s property without the Lessor being obligated
to pay for it, unless the Lessor demands that the Lessee return the Premises to
its previous state, in which case the Lessee must do so at its expense by the
date fixed for vacating the Premises. The Lessor shall have the right to return
the Premises to their previous state on the Lessee’s account, and the Lessee
undertakes to immediately refund to the Lessor upon its first demand all of the
expenses that it incurs in doing so, together with default interest at the
highest rate in effect at Bank Leumi l’Israel for Shekel-denominated current
loan accounts, all from the date of payment of any amount by the Lessor and
until its actual receipt by the Lessee to the Lessor, and everything and this
being without derogating from the other rights that the Lessee has in its
possession under this Agreement and/or any law.

g.                                      The Lessee shall pay Rent to the Lessor for the
entire period that is fixed in this Agreement even if it is ejected from the
Premises before the end of the said period following a breach of this Section.

 21
 

h.                                      The Lessee shall pay Rent to the Lessor based
upon the calculation set forth in this Agreement even if the Lease Period ends
during the period that is required to return the Premises to their previous
state.

14.                                 Security

To secure all of the Lessee’s obligations under this
Agreement, including and without derogating from any of the Lessee’s other
obligations, timely vacating the Premises, the payment for any damage that is
caused to the Premises, the payment of Rent and the payments that are imposed
upon the Lessee under this Agreement, the following provisions shall apply:

The Lessee hereby delivers to the Lessor upon this
Agreement’s execution an unconditional bank guarantee linked to the dollar in
an amount equal to six months of Rent, which may be realized at any time and
which shall remain in effect for the entire Lease Period and for two additional
months (hereinafter, the “Security”). The Lessor shall be entitled at any time
to extend the expiration of the bank guarantee in order that it shall be in
effect during the entire Lease Period and/or the Option Periods if they are
exercised (plus two additional months).

The Lessor shall realize the aforesaid Security and/or
any part thereof in its sole discretion based upon the value of any breach
and/or damage if the Lessee does not fulfill its undertakings under this Agreement,
including if the Lessee does not timely vacate the Premises and/or does not
make any Rent payment or payment that is imposed upon it by law and under the
Agreement, and if it does not pay for damages that were caused to the Premises.

It is hereby clarified that realizing the said
Security or any part thereof by the Lessor shall not grant the Lessee any
rights in the Premises and such an act shall not constitute a waiver or
conditioning of any of the Lessor’s rights and/or the Lessee’s obligations under
this Agreement’s provisions and/or by law.

For the avoidance of doubt, it is agreed that for
efficiency’s sake only, the Security shall be granted for the benefit of Niber
Promotions and Investments Ltd., that is Lessor number 1, and it shall be entitled
to realize upon it even if the Lessee breaches the Agreement with respect to
the other Lessors.

For the avoidance of doubt, it is hereby clarified
that the delivery of possession is conditioned upon the timely delivery of the
bank guarantee as stated above and upon the arranging of insurance as detailed
in Section 8d above.

 22
 

The Security shall be returned to the Lessee within
thirty days after the Premises is vacated at the end of the Lease Period,
provided that the Lessee fulfilled all of its obligations under this Agreement.

15.                                 Management Company

The Lessee represents that the Lessors notified it
that the house council will conduct negotiations with a management company for
the sake of entering into a management agreement (hereinafter, the “Management
Agreement”), which will provide various services to the building’s residents as
shall be determined in the Management Agreement, which shall be attached to
this Agreement as Annex F after it has been signed by the house council and the
Management Company. The Lessee undertakes to execute the Management Agreement,
and to fulfill all of its undertakings under the Management Agreement,
including, but not only, to pay the management fee in the manner that is
determined at the time that is determined and in addition to the Rent. The
Lessee also undertakes to execute any management agreement that is entered into
between the house council and a management company upon the expiration of the
existing management agreement and to fulfill all of its undertakings under the
management agreement, including, but not only, to pay the management fee in the
manner that is determined at the time that is determined and in addition to the
Rent.

16.                                 Agreement’s Cancellation

a.                                       Without derogating from the Lessee’s
undertakings in this Agreement or from the Lessor’s right to receive any cure
and/or other remedy (such as: specific performance of the Agreement and/or a
claim for compensation for damages, etc.), this Agreement shall be deemed
voided and canceled at the Lessor’s option, and the Lessee’s right to possess
the Premises shall be immediately terminated and the Lessor shall be entitled
to demand the immediate vacating of the Premises by the Lessee in the following
cases:

1)                                      If the Lessee breaches or does not fulfill any
of the conditions or undertakings that are included in this Agreement and does
not cure the breach within fourteen days from the date that it receives written
notice thereof from the Lessor.

2)                                      The Lessee is pronounced a bankrupt and/or a
receiver is appointed for its assets and/or a temporary or permanent liquidator
is appointed or an application for liquidation and/or an 

 23
 

                                                application for an arrangement of creditors
and/or for a suspension of proceedings is filed against it or by it.

For
the avoidance of doubt, it is hereby clarified that even in the event that the
Agreement is canceled by the Lessor as stated above, the Lessee shall not be
released from paying the Rent and other payments under this Agreement during
the entire Lease Period.

17.                                 Vacating the Premises

a.                                       The Lessee undertakes to vacate the Premises at
the earlier of the end of the Lease Period or if the Lessee breaches this
Agreement and the Lessor demands that the Premises be vacated, even before the
end of the Lease Period, and to return the Premises to the Lessor free and
clear of any person or possession, in a clean, good, working state, and as
ready for use as it was when the Lessee received it, with all of its apparatus
and accessories working, with the Premises including any renovation or improvement
that is permanently attached to it, even if the same were installed by the
Lessee, unless the Lessor demanded that the Lessee remove the foregoing
improvements and/or additions from the Premises. Similarly, the Lessee
undertakes to return the Premises to the Lessor with the walls newly painted
with the work being done by a professional and being of good quality.

b.                                      If the Lessee does not vacate the Premises at
the end of the Lease Period, or if the Lessee breaches this Agreement and the
Lessor demands that it be vacated before the Lease Period ends (and subject to
the cancellation of the Agreement pursuant to this Agreement’s provisions) and
the Lessee does not do so and/or if the Lessee does not timely pay the Rent
and/or any other payment that falls upon it under this Agreement and/or if it
committed any breach of this Agreement, the Lessor shall be entitled to enter
the Premises and to take possession of all of the equipment that is found
therein and to prevent the Lessee or anyone acting on its behalf from entering
the Premises. The Lessor shall also be entitled to disconnect the air
conditioning system, the electrical current and the water, and all without
derogating from all of the remedies that are granted to it under the Agreement
or by law. In this event, the Lessor shall not be liable in any manner for any
damage of any type that is caused to the Lessee due to these actions.

c.                                       If the Lessee does not vacate the Premises in
the manner and at the time that it is supposed to vacate it under this
Agreement, then without derogating from any other right that the Lessor has by
law and/or under

 24
 

                                                this Agreement, the Lessee shall be required to
pay to the Lessor an amount equal to 300% of the monthly Rent for each month’s
delay or holdup (and a relative portion for each day’s delay) in delivering
possession of the Premises to the Lessor and this as fixed compensation agreed
in advance. Payment of the amount under this paragraph shall not grant the
Lessee any right to continue to possess the Premises.

d.                                      Thirty days before the end of the Lease Period,
the Lessor shall conduct an inspection of the Premises and shall send to the
Lessee a list of the work that it must do in order to bring the Premises to the
state described in clause a above. The Lessee undertakes that it will perform
all repairs before the date for vacating the Premises pursuant to this
Agreement’s provisions.

e.                                       In the event that the Lessee does not return
the Premises to the Lessor in the state described above, the Lessee shall
compensate the Lessor in all of the required amounts in order that the Lessor
shall perform the said work without there being any obligation on the Lessor to
do so.

f.                                         In the event that the Lessor itself carries out
the work that is required to bring the Premises to the state required by clause
a above, the invoices that it presents for the cost of work and/or materials
and/or repairs shall constitute a fixed amount that shall entitle the Lessor to
file a shortened procedure claim against the Lessee in the event that they are
not paid within thirty business days from the date they are presented to the
Lessee. In such an event, the repair period shall be deemed to have begun from
the date that the repairs began and [in the event] that this period extends
beyond the date for vacating the Premises, the Lessee shall be deemed not to
have timely vacated the Premises with all that implies. Similarly, in such an
event, the Lessee undertakes to return all of the expenses that the Lessor
incurred therefor immediately upon the Lessor’s first demand, together with
default interest at the highest rate that is customary at Bank Leumi l’Israel
for Shekel-denominated current loan accounts, all from the date of payment of
any amount by the Lessor until its actual receipt by the Lessee to the Lessor,
and this without derogating from any of the other rights that the Lessee has
under this Agreement and/or by law.

18.                                 Compensation

a.                                       In the event that the Lessee breaches any
provisions of this Agreement, then without derogating from the Lessor’s rights
to any other cure by law and/or under this Agreement, it will be obligated to
compensate the 

 25
 

                                                Lessor for any damage of any type that is
caused to the other side as a result of that breach.

b.                                      Without derogating from everything that is
stated in this Agreement, if the Lessee commits a fundamental breach of this
Agreement’s provisions, then without derogating from the Lessor’s right to
terminate this Agreement and to demand any other cure and/or remedy to which it
is entitled under this Agreement and/or by law, the Lessee shall be required to
compensate the Lessor in an amount in Shekels that is equal to $20,000 based
upon the representative rate of exchange of the United States dollar as
published by the Bank of Israel at the time of actual payment. It is hereby
agreed that the provisions of Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14,
15 and 16 of this Agreement are deemed to be fundamental provisions and the
breach of any of them shall be deemed a fundamental breach of this Agreement,
as that concept is defined in the Contracts Law (Remedies for Breach of
Contract), 5731-1970. This paragraph shall be deemed to have been written
specifically and separately in each Section mentioned in this paragraph.

c.                                       In the event that the Lessee does not make any
payment that it must make under this Agreement, it shall constitute a breach of
this Agreement by the Lessee that will grant the Lessor all of the remedies
that are granted to it under any law, and without derogating therefrom the
Lessor shall be entitled but not obligated to make the payment in the Lessee’s
place and the Lessee shall be obligated to return the payment to the Lessor
together with default interest at the highest rate that is customary at Bank
Leumi l’Israel for Shekel-denominated current loan accounts, all from the date
of payment of any amount by the Lessor until its actual receipt by the Lessee
to the Lessor.

19.                                 General

a.                                       It is agreed that since Lessor number 3 has
rights in the area that are in addition to the Premises, and that are located
on the same floor (hereinafter, the “Additional
Area”), if Lessor number 3 is interested in letting the Additional
Area to a third party, and only in that event, Lessor number 3 shall give
written notice thereof to the Lessee together with the lease conditions. Within
seven days of the date that it receives the notice, the Lessee shall notify
Lessor number 3 whether it is interested in leasing the Additional Area
pursuant to the conditions that were determined by Lessor number 3. If during
the aforesaid seven-day period, the Lessee notifies Lessor number 3 that it is
interested in leasing the Additional Area, the Lessee shall execute a lease
agreement with Lessor number 3 within three days. If the Lessee does not

 26
 

                                                deliver any notice to Lessor number 3, or if it
notifies Lessor number 3 that it is not interested in leasing the Additional
Area, or if the Lessee notifies Lessor number 3 that it is interested in
leasing the Additional Area but the Lessee does not execute a lease agreement
as aforesaid, then Lessor number 3 shall be entitled to lease the Additional
Area or any part thereof to a third party, and the Lessee shall have no
complaint or claim as a result thereof.

b.                                      The provisions of the Contracts (Remedies for
Breach of Contract) Law, 5731-1970 shall apply to a breach of this Agreement.

c.                                       No waiver, extension or failure to act by the
Lessor, whether generally or in a timely manner shall be deemed a waiver of any
of the Lessor’s rights under this Agreement.

d.                                      Any change to this Agreement’s conditions shall
only be effective if it is in writing and executed by the two parties.

e.                                       The parties represent that they read this
Agreement carefully, and that they executed it of their free will and
understanding its content.

f.                                         This Agreement cancels any prior memorandum of
understanding between the parties, if any.

g.                                      The Lessee represents that it is aware that the
attorney who drafted this Agreement represents the Lessor only, and that it is
entitled to be represented by another attorney.

h.                                      The stamp fee for this Agreement shall be borne
by the Lessee.

i.                                          The Lessee shall not be entitled to delay
and/or hold back and/or refrain from paying the Rent and other payments that
are or may be owing from it under this Agreement due to any reason or grounds,
and it shall not enjoy the benefit of any set-off right or repossession right
with respect to the Rent or other payments as aforesaid.

j.                                          Upon this Agreement’s execution, the Lessee
shall provide the Lessor with an opinion of an attorney acting on its behalf
confirming that its board of directors determined to approve the lease of the
Premises as stated in this Agreement, and that those who are signing this
Agreement on behalf of the Lessee are authorized to sign in the Company’s name
and to obligate it.

k.                                       The parties’ addresses for purposes of this
Agreement are as detailed in the Agreement’s preamble. Any notice that is sent
by registered mail by one party to the other shall be deemed as if delivered to
its destination seventy-two hours 

 27
 

                                                from the time that it was sent, and if it is
hand delivered — at the time of delivery. All notices by the Lessee shall be
sent to the Lessor’s representative, Mr. Yossi Barr, at 37 Ben Yisrael Street,
Kfar Gibton, and to fax:                        

In Witness Whereof the Parties Have Executed this
Agreement

	
  Niber Promotions & Investments Ltd.

  	
   

  	
  Kailight Photonics Ltd.

  
	
   

  	
   

  	
   

  
	
  /s/

  	
   

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Atido Holdings Ltd.

  	
   

  	
   

  
	
  /s/

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Roller Electric Works

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/

  	
   

  	
   

  	
   

  	
   

  
						

 

 28

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