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WWW.EXFILE.COM, INC. -- CELL KINETICS LTD. -- EXHIBIT 10.4 TO FORM F-1/A

    EXHIBIT
      10.4

    

    CELL
      KINETICS LTD.

    

    

    

    

    

    

    

    

    

    

    

    

    _________________________________________________

    

    2007
      EQUITY INCENTIVE PLAN

    _________________________________________________

    

    

    

    

    

    

    

     

    

     

    

     

    

     

    

    

    

    

     

    

     

    __________________________________

    

    Adopted:  July
      29, 2007

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              CELL
                KINETICS LTD.

            
	
              2007
                EQUITY INCENTIVE PLAN

            
	 

    

    

     

    
      	
              1.            

            	
              PURPOSE;
                TYPES OF AWARDS; CONSTRUCTION.

            

    

     

    
      	
              1.1.  

            	
              Purpose.  The
                purpose of this 2007 Equity Incentive Plan (the “Plan”)
                is to afford an incentive to employees, directors, officers, consultants,
                advisors, suppliers and any other person or entity whose services
                are
                considered valuable (collectively, the “Service
                Providers”) to Cell Kinetics Ltd., an Israeli company (the
                “Company”), or any Affiliate of the Company, which now
                exists or hereafter is organized or acquired by the Company, to continue
                as Service Providers, to increase their efforts on behalf of the
                Company
                or Affiliate and/or to promote the success of the Company's business,
                by
                providing such Service Providers with opportunities to acquire a
                proprietary interest in the Company by the issuance of Ordinary Shares
                of
                the Company or the shares of Common Stock of any
                U.S. successor entity of the Company (the “Shares’), and
                the grant of options to purchase Shares, restricted Shares awards
                (“Restricted Shares”), restricted Share units and other
                Share-based Awards pursuant to the
                Plan.

            

    

     

    
      	
              1.2.  

            	
              Types
                of Awards. The Plan is intended to enable the Company to issue Awards
                under varying tax regimes, including, without
                limitation:

            

    

     

    
      	
              (i)  

            	
              pursuant
                and subject to the provisions of Section 102 of the Ordinance, including
                without limitation the Income Tax Rules (Tax Benefits in Stock Issuance
                to
                Employees) 5763-2003 (the “Rules”) or such other rules,
                regulations, orders or procedures promulgated thereunder, published
                by the
                Israeli Income Tax Authorities (the “ITA”) (such Awards,
                “102 Awards”). 102 Awards may either be granted to a
                Trustee or without a Trustee;

            

    

     

    
      	
              (ii)  

            	
              pursuant
                to Section 3(9) of the Ordinance (such Awards, “3(9)
                Awards”);

            

    

     

    
      	
              (iii)  

            	
              Restricted
                Shares;

            

    

     

    
      	
              (iv)  

            	
              Incentive
                Stock Options within the meaning of Section 422 of the Code, or the
                corresponding provision of any subsequently enacted
                successor United States federal tax statute, as
                amended from time to time, to be granted to Service Providers who
                are
                citizens of the U.S. or deemed to be residents of the U.S. for purposes
                of
                taxation;

            

    

     

    
      	
              (v)  

            	
              Nonqualified
                Stock Options;

            

    

     

    
      	
              (vi)  

            	
              Stock
                Appreciation Rights; and

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              (vii)  

            	
              other
                stock-based Awards pursuant to Section 12
                hereof.

            

    

     

    
      	
            	
               

            	
              In
                addition to the issuance of Awards under the relevant tax regimes
                in the
                United States of America and the State of Israel, the Plan contemplates
                issuances to Grantees in other jurisdictions with respect to which
                the
                Committee is empowered to make the requisite adjustments in the Plan
                and
                set forth the relevant conditions in the Company’s agreement with the
                Grantee in order to comply with the requirements of the tax regimes
                in any
                such jurisdictions.

            

    

     

     

    
      	
              2.         
                  

            	
              DEFINITIONS.

            

    

     

    
      	
              2.1.  

            	
              Terms
                Generally.  The definitions of terms herein shall apply
                equally to the singular and plural forms of the terms defined. Whenever
                the context may require, any pronoun shall include the corresponding
                masculine, feminine and neuter forms.  The words “include”,
                “includes” and “including” shall be deemed to be followed by the phrase
                “without limitation”.  Unless the context requires otherwise (i)
                any definition of or reference to any agreement, instrument or other
                document herein shall be construed as referring to such agreement,
                instrument or other document as from time to time amended, restated,
                supplemented or otherwise modified (subject to any restrictions on
                such
                amendments, restatements, supplements or modifications set forth
                therein
                or herein),  (ii) references to any law, constitution, statute,
                treaty, regulation, rule or ordinance, including any section or other
                part
                thereof shall refer to it as amended from time to time and shall
                include
                any successor law,  (iii) reference to a person shall means an
                individual, partnership, corporation, limited liability company,
                association, trust, unincorporated organization, or a government
                or agency
                or political subdivision thereof,  (iv) the words “herein”,
                “hereof” and “hereunder”, and words of similar import, shall be construed
                to refer to this Plan in its entirety and not to any particular provision
                hereof and  (v) all references herein to Sections shall be
                construed to refer to Sections to this
                Plan.

            

    

     

    
      	
              2.2.  

            	
              Defined
                Terms. The following terms shall have the meanings ascribed to them
                in
                this Section 2:

            

    

     

    
      	
              2.2.1.  

            	
              “Affiliate”
                shall mean an affiliate of, or person affiliated with, a specified
                person
                or company or other trade or business that directly, or indirectly
                through
                one or more intermediaries, controls, is controlled by or is under
                common
                control with such person within the meaning of Rule 405 of Regulation
                C
                under the Securities Act, including, without limitation, any
                Subsidiary.  For the purpose of Awards granted pursuant to
                Section 102, “Affiliate” shall mean also an “employing company” within the
                meaning of Section 102(a) of the
                Ordinance.

            

    

     

    
      	
              2.2.2.  

            	
              “Applicable
                Law” shall mean any applicable law, rule, regulation, statute,
                pronouncement, policy, interpretation, judgment, order or decree
                of any
                federal, provincial, state or local governmental, regulatory or
                adjudicative authority or agency, of any jurisdiction, and the rules
                and
                regulations of any stock exchange or trading system on which the
                Shares
                are then traded or listed.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              2.2.3.  

            	
              “Award”
                shall mean any Option, Restricted Share, RSU, Stock Appreciation
                Right or
                any other Share-based award, granted to a Grantee under the Plan
                and any
                Share issued pursuant to the exercise
                thereof.

            

    

     

    
      	
              2.2.4.  

            	
              “Board”
                shall mean the Board of Directors of the
                Company.

            

    

     

    
      	
              2.2.5.  

            	
              “Bonus
                Shares” shall mean any shares of capital stock of the Company
                distributed to existing stockholders of the Company as a result of
                a
                dividend, stock split or other similar
                distribution.

            

    

     

    
      	
              2.2.6.  

            	
              “Code”
                shall mean the United States Internal Revenue Code of 1986, as
                amended.

            

    

     

    
      	
              2.2.7.  

            	
              “Committee”
                shall mean a committee established or designated by the Board to
                administer the Plan, subject to Section
                3.1.

            

    

     

    
      	
              2.2.8.  

            	
               “Companies
                Law” shall mean the Israel Companies Law–1999 and the regulations
                promulgated thereunder, all as amended from time to
                time.

            

    

     

    
      	
              2.2.9.  

            	
              “Controlling
                Shareholder” shall have the meaning set forth in Section 32(9) of
                the Ordinance.

            

    

     

    
      	
               2.2.10. 

            	
              “Disability”
                shall mean (i) the inability of a Grantee to engage in any substantial
                gainful activity on behalf of the Company by reason of any medically
                determinable physical or mental impairment which has lasted or can
                be
                expected to last for a continuous period of not less than 6 months,
                as
                determined by a medical doctor satisfactory to the Committee or,
                if
                applicable,  (ii) a “permanent and total disability” as defined
                in Section 22(e)(3) of the Code.

            

    

     

    
      	
              2.2.11. 

            	
              “Employee”
                shall mean a person who is employed by the Company or any of its
                Affiliates, including, for the purpose of Section 102, an individual
                who
                is serving as an office holder (as defined under the Companies Law),
                but
                excluding any Controlling
                Shareholder.

            

    

     

    
      	
              2.2.12. 

            	
              “Exercise
                Period” shall mean the period, commencing on the date of grant of
                an Option, during which an Option shall be exercisable, subject to
                any
                vesting provisions thereof and the termination provisions hereof
                or as set
                forth in the individual Option Agreement evidencing such
                Option.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              2.2.13. 

            	
              “Exercise
                Price” shall mean the exercise price for each Share covered by
                an
                Option.

            

    

     

    
      	
              2.2.14. 

            	
              “Fair
                Market Value” per share as of a particular date shall mean (i)
                the closing sales price per Share on the securities exchange on which
                the
                Shares are principally traded for the last preceding date on which
                there
                was a sale of such Shares on such exchange; or (ii) if the Shares
                are
                listed on The Nasdaq Global Market, the closing sales price per Share
                on
                The Nasdaq Global Market on the last preceding date on which there
                was a
                sale of such Share on The Nasdaq Global Market; or (iii) if the Shares
                are
                then traded in another over-the-counter market, the closing sales
                price
                per Share in such over-the-counter market for the last preceding
                date on
                which there was a sale of such Shares in such market; (iv) if the
                Shares
                are not then listed on a securities exchange or market or traded
                in an
                over-the-counter market, such value as the Committee, in its sole
                discretion, shall determine which determination shall be conclusive
                and
                binding on all parties, and shall be made after such consultations
                with
                outside legal, accounting and other experts as the Committee may
                deem
                advisable.  The Committee shall maintain a written record of its
                method of determining such value.  If the Shares are listed or
                quoted on more than one established stock exchange or national market
                system, the Committee shall determine the appropriate exchange or
                system
                for the purpose of determination of Fair Market
                Value.

            

    

     

    
      	
              2.2.15.  

            	
              “Grantee”
                shall mean a person who receives a grant of Award under the Plan,
                and who
                at the time of grant is a Service Provider of the Company or any
                Affiliate
                thereof.

            

    

     

    
      	
              2.2.16.  

            	
              “Non-Employee”
                shall mean a consultant, adviser, director, Controlling Shareholder
                or any
                other Service Provider who is not an
                Employee.

            

    

     

    
      	
              2.2.17.  

            	
              “Nonqualified
                Stock Option” shall mean any Option granted to a Service Provider
                who is a citizen of the U.S. or deemed to be a resident of the U.S.
                for
                purposes of taxation or who is subject to U.S. taxation, which Option
                is
                not designated as, or does not meet the conditions for, an Incentive
                Stock
                Option.

            

    

     

    
      	
              2.2.18.  

            	
              “Options”
                shall mean all options to purchase Shares granted as 102 Awards,
                3(9)
                Awards, Incentive Stock Options and Non-Qualified Stock Options,
                as well
                as options to purchase Shares issued under other tax regimes as may
                be set
                forth in the Company’s agreement with the applicable
                Grantee.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              2.2.19.  

            	
              “Ordinance”
                shall mean the Israeli Income Tax Ordinance (New Version) 1961, and
                the
                regulations promulgated thereunder, all as amended from time to
                time.

            

    

     

    
      	
              2.2.20.  

            	
              “Parent”
                shall mean any company (other than the Company), which now exists
                or is
                hereafter organized, (i) in an unbroken chain of companies ending
                with the
                Company if, at the time of granting an Award, each of the companies
                (other
                than the Company) owns stock possessing fifty percent (50%) or more
                of the
                total combined voting power of all classes of stock in one of the
                other
                companies in such chain, or, if applicable, (ii) as defined in Section
                424(e) of the Code.

            

    

     

    
      	
              2.2.21.  

            	
              “Qualifying
                Performance Criteria” shall mean any one or more of the following
                performance criteria applied to either the Company as a whole or
                to a
                business unit or Subsidiary, and measured either annually or cumulatively
                over a period of years, on an absolute basis or relative to a
                pre-established target, to previous years’ results or to a designated
                comparison group, in each case as specified by the Committee in the
                Award:
                (a) cash flow, (b) earnings per share, (c) earnings before interest,
                taxes
                and amortization, (d) return on equity, (e) total stockholder return,
                (f)
                share price performance, (g) return on capital, (h) return on assets
                or
                net assets, (i) revenue, (j) income or net income, (k) operating
                income or
                net operating income, (l) operating profit, (m) operating margin
                or profit
                margin, (n) return on operating revenue, (o) return on invested capital,
                (p) market segment share, (q) product cost reduction, (r) book value,
                (s)
                debt/capital ratio, (t) capital expenditures, (u) price/earnings
                growth,
                (v) production milestones, (w) research and development milestones
                or (x)
                any combination of the foregoing. The Committee may appropriately
                adjust
                any evaluation of performance under a Qualifying Performance Criteria
                to
                exclude any of the following events that occurs during a performance
                period: (i) asset write-downs, (ii) litigation or claim judgments
                or
                settlements, (iii) the effect of changes in tax laws, accounting
                principles or such other laws or provisions affecting reported results,
                (iv) accruals for reorganization or restructuring, and (v) other
                extraordinary or unusual non-recurring items, events or
                circumstances.

            

    

     

    
      	
              2.2.22.  

            	
              “Retirement”
                shall mean a Grantee's retirement pursuant to Applicable Law or in
                accordance with the terms of any tax-qualified retirement plan maintained
                by the Company or any of its Affiliates in which the Grantee
                participates.

            

    

     

    
      	
              2.2.23.  

            	
              “Securities
                Act” shall mean United States Securities Act of 1933, as
                amended.

            

    

     

    
      	
              2.2.24.  

            	
               “Subsidiary”
                shall mean any company (other than the Company), which now exists
                or is
                hereafter organized or acquired by the Company, (i) in an unbroken
                chain
                of companies beginning with the Company if, at the time of granting
                an
                Award, each of the companies other than the last company in the unbroken
                chain owns stock possessing fifty percent (50%) or more of the total
                combined voting power of all classes of stock in one of the other
                companies in such chain, or, if applicable, (ii) as defined in Section
                424(f) of the Code.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              2.2.25.  

            	
              “Stock
                Appreciation Right” or “SAR” shall mean a right to receive, in
                cash or shares (as determined by the Committee), value with respect
                to a
                specific number of shares equal to or otherwise based on the excess
                of (i)
                the Fair Market Value of a share at the time of exercise over (ii)
                the
                exercise price of the right (which shall be no less than the Fair
                Market
                Value of a share on the date of grant of the right), subject to such
                terms
                and conditions as are expressed in the document(s) evidencing the
                Award
                (the “SAR
                Agreement”).

            

    

     

    
      	
              2.2.26.  

            	
              “Ten
                Percent Shareholder” shall mean a Grantee who, at the time an
                Incentive Stock Option is granted, owns shares possessing more than
                ten
                percent (10%) of the total combined voting power of all classes of
                shares
                of the Company or any Parent or
                Subsidiary.

            

    

     

    
      	
              2.2.27.  

            	
              “Trustee”
                shall mean the trustee appointed by the Committee or the Board, as
                the
                case may be, to hold the respective Options, Restricted Shares, RSU’s,
                Shares and any other Share-based Awards pursuant to the Plan (and,
                in
                relation with 102 Awards, approved by the Israeli tax authorities
                pursuant
                to Section 102 and the Rules), if so
                appointed.

            

    

     

    
      	
              2.3.  

            	
              Other
                Defined Terms. The following terms shall have the meanings ascribed to
                them in the Sections set forth
                below:

            

    

     

    
      	
              Term

            	
              Section

            
	
              102
                Awards

            	
              1.2(i)

            
	
              102
                Capital Gains Track Options

            	
              9.1

            
	
              102
                Non-Trustee Options

            	
              9.2

            
	
              102
                Ordinary Income Track Options

            	
              9.1

            
	
              102
                Trustee Options

            	
              9.1

            
	
              3(9)
                Awards

            	
              1.2(ii)

            
	
              Cause

            	
              6.6.3

            
	
              Company

            	
              1.1

            
	
              Effective
                Date

            	
              25.1

            
	
              Election

            	
              9.2

            
	
              Eligible
                102 Grantees

            	
              4.2

            
	
              ISO
                Shares

            	
              8.4

            

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              ITA

            	
              1.2(i)

            
	
              Market
                Stand-Off

              Merger/Sale

            	
              14.2

            
	
              Option
                Agreement

            	
              6

            
	
              Plan

            	
              1.1

            
	
              Required
                Holding Period

            	
              9.4

            
	
              Restricted
                Period

            	
              11.4

            
	
              Restricted
                Share Agreement

            	
              11

            
	
              Restricted
                Share Unit Agreement

            	
              12.1

            
	
              Restricted
                Shares

            	
              1.1

            
	
              RSU

            	
              12.1

            
	
              Rules

            	
              1.2(i)

            
	
              Service
                Provider(s)

            	
              1.1

            
	
              Share

            	
              1.1

            
	
              Successor
                Corporation

            	
              14.2.1

            
	
              Withholding
                Obligations

            	
              18.3

            
	 	 

    

     

     

    
      	
              3.            

            	
              ADMINISTRATION.

            

    

     

    
      	
              3.1.  

            	
              To
                the extent permitted under Applicable Law and the Memorandum of
                Association, Articles of Association and any other governing document
                of
                the Company, the Plan shall be administered by the Committee. In
                the event
                that the Board does not create a committee to administer the Plan,
                the
                Plan shall be administered by the Board in its entirety. In the event
                that
                an action necessary for the administration of the Plan is required
                under
                law to be taken by the Board, then such action shall be so taken
                by the
                Board. In any such event, all references herein to the Committee
                shall be
                construed as references to the
                Board.

            

    

     

    
      	
              3.2.  

            	
              The
                Committee shall consist of two or more directors of the Company,
                as
                determined by the Board, who are “outside directors” within the meaning of
                Section 162(m) of the Code and who are “non-employee directors” within the
                meaning of Rule 16b-3(b)(3) of the United States Securities Exchange
                Act
                of 1934, as amended. The Board shall appoint or shall have appointed
                the
                members of the Committee, may from time to time remove members from,
                or
                add members to, the Committee, and shall fill vacancies in the Committee
                however caused, provided that the composition of the Committee shall
                at
                all times be in compliance with any mandatory requirements of Applicable
                Law.  The Committee may select one of its members as its
                Chairman and shall hold its meetings at such times and places as
                it shall
                determine.  The Committee may appoint a Secretary, who shall
                keep records of its meetings and shall make such rules and regulations
                for
                the conduct of its business, as it shall deem advisable and subject
                to
                requirements of Applicable Law.  Notwithstanding the foregoing,
                the Committee shall be the standing Compensation Committee of the
                Company
                provided that such Compensation Committee satisfies the requirements
                of a
                “Committee” set forth herein.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              3.3.  

            	
              Subject
                to the terms and conditions of this Plan and any mandatory provisions
                of
                Applicable Law, and in addition to the Committee's powers contained
                elsewhere in this Plan, the Committee shall have full authority in
                its
                discretion, from time to time and at any time, to determine any of
                the
                following, or to recommend to the Board any of the following if it
                is not
                authorized to take such action according to Applicable
                Law:

            

    

     

    
      	
              (i)  

            	
              eligible
                Grantees,

            

    

     

    
      	
              (ii)  

            	
              grants
                of Awards and setting the terms and provisions of Option Agreements,
                Restricted Share Agreements, Restricted Share Unit Agreements (none
                of
                which need be identical) and any other agreements or instruments
                under
                which Awards are made, including, but not limited to, the number
                of Shares
                underlying each Award,

            

    

     

    
      	
              (iii)  

            	
              the
                time or times at which Awards shall be
                granted,

            

    

     

    
      	
              (iv)  

            	
              the
                schedule and conditions on which Awards may be
                exercised,

            

    

     

    
      	
              (v)  

            	
              the
                Exercise Price,

            

    

     

    
      	
              (vi)  

            	
              to
                interpret the Plan,

            

    

     

    
      	
              (vii)  

            	
              prescribe,
                amend and rescind rules and regulations relating to and for carrying
                out
                the Plan, as it may deem
                appropriate,

            

    

     

    
      	
              (viii)  

            	
              the
                Fair Market Value of the Shares,

            

    

     

    
      	
              (ix)  

            	
              the
                tax track (capital gains, ordinary income track or any other track
                available under the Section 102 of the Ordinance) for the purpose
                of 102
                Awards, and

            

    

     

    
      	
              (x)  

            	
              any
                other matter which is necessary or desirable for, or incidental to,
                the
                administration of the Plan and any Award
                thereunder.

            

    

     

    
      	
              3.4.  

            	
              Grants
                of Awards shall be made pursuant to written notice to Grantees setting
                forth the terms of the Award. Such notice shall designate the type
                of
                Award as one of the following: (i) a 102 Award granted to a Trustee
                (either as a 102 Award (capital gain track) with Trustee or a 102
                Award
                (ordinary income track) with Trustee), (ii) a 102 Award without a
                Trustee,
                (iii) a 3(9) Award, (iv) Incentive Stock Option, (v) Nonqualified
                Stock
                Option, (vi) Restricted Shares, (vii) Restricted Share Units, (vii)
                Stock
                Appreciation Rights, or (viii) any other type of
                Award.  Notwithstanding the foregoing, written notice may be
                substituted by delivery of the applicable written Award agreement
                evidencing the Award.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              3.5.  

            	
              Subject
                to the mandatory provisions of Applicable Law, the grant of any Award,
                whether by the Committee or the Board,  shall be deemed to
                include an authorization of the issuance of shares upon the due exercise
                thereof.

            

    

     

    
      	
              3.6.  

            	
              The
                authority granted hereunder includes the authority to modify Awards
                to
                eligible individuals who are foreign nationals or
                are individuals who are employed outside Israel, to recognize differences
                in local law, tax policy or custom, in order to effectuate the purposes
                of
                the Plan but without amending the Plan.  To the extent permitted
                by Applicable Law, the Committee shall have the authority to grant,
                in its
                discretion, to the holders of an outstanding Award, in exchange for
                the
                surrender and cancellation of such Award, a new Award having an Exercise
                Price lower than provided in the Award so surrendered and cancelled
                and
                containing such other terms and conditions as the Committee may prescribe
                in accordance with the provisions of the Plan or to set a new Exercise
                Price for the same Award lower than that previously provided in the
                Award.

            

    

     

    
      	
              3.7.  

            	
              All
                decisions, determination and interpretations of the Committee shall
                be
                final and binding on all Grantees of any Awards under this Plan,
                unless
                otherwise determined by the Board.  No member of the Committee
                shall be liable for any action taken or determination made in good
                faith
                with respect to the Plan or any Award granted
                hereunder.

            

    

     

     

    
      	
              4.            

            	
              ELIGIBILITY.

            

    

     

    
      	
              4.1.  

            	
              Awards
                may be granted to Service Providers of the Company and any Affiliate
                of
                the Company, taking into account the qualification under each tax
                regime
                pursuant to which such Awards are granted.  A person who has
                been granted an Award hereunder may be granted additional Awards,
                if the
                Committee shall so determine, subject to the limitations
                herein.  In determining the persons to whom Awards shall be
                granted and the number of Shares to be covered by each Award, the
                Committee shall take into account the duties of the respective persons,
                their present and potential contributions to the success of the Company
                and such other factors as the Committee shall deem relevant in connection
                with accomplishing the purpose of the
                Plan.

            

    

     

    
      	
              4.2.  

            	
              Subject
                to Applicable Law, 102 Awards may not be granted to Controlling
                Shareholders and may only be granted to Employees, including officers,
                and
                Non-Employee directors, of the Company or any Affiliate thereof,
                who are
                Israeli residents (“Eligible 102
                Grantees”).  Awards to Eligible 102 Grantees in Israel
                shall be 102 Awards.  Eligible 102 Grantees may receive only 102
                Awards, which may either be grants to a Trustee or grants under Section
                102 without a Trustee.  Unless otherwise permitted by the
                Ordinance and the Rules, no 102 Awards to a Trustee may be granted
                until
                the expiration of thirty (30) days after the requisite filings under
                the
                Ordinance and the Rules have been appropriately made with the
                ITA.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              4.3.  

            	
              Subject
                to Applicable Law, Non-Employees who are Israeli residents and are
                not
                Eligible 102 Grantees may only be granted 3(9) Awards under this
                Plan.

            

    

     

     

    
      	
              5.            

            	
              SHARES.

            

    

     

    
      	
               

            	
              The
                initial number of Shares reserved for the grant of Awards under the
                Plan
                shall be 1,400,000 Shares.  The aggregate number of Shares
                granted under Awards under the Plan to any one Grantee during any
                calendar
                year shall not exceed the number of Shares authorized for issuance
                under
                the Plan and available for grant.  Any Share underlying an Award
                granted hereunder which has expired, or was cancelled or terminated
                or
                forfeited for any reason without having been exercised, shall be
                automatically, and without any further action on the part of the
                Company
                or any Grantee, returned to the “pool” of reserved Shares hereunder and
                shall again be available for grant for the purposes of this Plan
                (unless
                this Plan shall have been terminated) or unless the Board determines
                otherwise.  The Board may, subject to any other approvals
                required under any Applicable Law, increase or decrease the number
                of
                Shares to be reserved under the Plan.  Such Shares may, in whole
                or in part, be authorized but unissued Shares, or Shares that shall
                have
                been or may be reacquired by the Company (to the extent permitted
                pursuant
                to the Companies’ Law) or by a trustee appointed by the Board under the
                relevant provisions of the Ordinance, the Companies Law or any equivalent
                provision.  Any Shares which are not subject to outstanding
                Awards at the termination of the Plan shall cease to be reserved
                for the
                purpose of the Plan, but until termination of the Plan, the Company
                shall
                at all times reserve a sufficient number of Shares to meet the
                requirements of the Plan.

            

    

     

     

    
      	
              6.            

            	
              TERMS
                AND CONDITIONS OF
                OPTIONS.

            

    

     

    
      	
                 
                

            	
              Each
                Option granted pursuant to the Plan shall be evidenced by a written
                agreement between the Company and the Grantee or a written notice
                delivered by the Company and accepted by the Grantee (the
                “OptionAgreement”), in such form and
                containing such terms and conditions as the Committee shall from
                time to
                time approve, which Option Agreement shall comply with and be subject
                to
                the following terms and conditions, unless otherwise specifically
                provided
                in such Option Agreement or the terms referred to in Sections 9 and
                10
                below.  Notwithstanding the foregoing, such Options shall be
                subject to all applicable terms of the Plan and may be subject to
                any
                other terms that are not inconsistent with the Plan. The provisions
                of the
                various Option Agreements entered into under the Plan need not be
                identical.

            

    

     

    
      	
              6.1.  

            	
              Number
                of Shares. Each Option Agreement shall state the number of Shares
                covered by the Option.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              6.2.  

            	
              Type
                of Option. Each Option Agreement shall specifically state the type of
                Option granted thereunder and whether it constitutes an Incentive
                Stock
                Option, Nonqualified Stock Option, 102 Option Award and the relevant
                track, 3(9) Option Award, or
                otherwise.

            

    

     

    
      	
              6.3.  

            	
              Exercise
                Price. Each Option Agreement shall state the Exercise Price, which
                in
                the case of an Incentive Stock Option, shall  not be less than
                one hundred percent (100%) of the Fair Market Value of the Shares
                covered
                by the Option on the date of grant or such other amount as may be
                required
                pursuant to the Code. In the case of any other Option, the per share
                Exercise Price shall be equal to the amount determined by the Committee.
                In the case of an Incentive Stock Option granted to any Ten-Percent
                Shareholder, the Exercise Price shall not be less than 110% of the
                Fair
                Market Value of the Shares covered by the Option on the date of
                grant.  In no event shall the Exercise Price of an Option be
                less than the par value of the Shares for which such Option is
                exercisable.  Subject to Section 0
                and to the foregoing, to the extent permitted by Applicable Law,
                the
                Committee may reduce the Exercise Price of any outstanding Option..
                The
                Exercise Price shall also be subject to adjustment as provided in
                Section
                14 hereof.

            

    

     

    
      	
              6.4.  

            	
              Manner
                of Exercise. An Option may be exercised, as to any or all Shares as to
                which the Option has become exercisable, by written notice delivered
                in
                person or by mail to the Secretary of the Company or to such other
                person
                as determined by the Company, specifying the number of Shares with
                respect
                to which the Option is being exercised, accompanied by payment of
                the
                Exercise Price for such Shares in the manner specified in the following
                sentence.  The Exercise Price shall be paid in full with respect
                to each Share, at the time of exercise, either in (i) cash, (ii)
                if the
                Company’s Shares are publicly traded, all or part of
                the Exercise Price and any withholding taxes may be paid by the delivery
                (on a form prescribed by the Company) of an irrevocable direction
                to a
                securities broker approved by the Company to sell Shares and to deliver
                all or part of the sales proceeds to the Company or the Trustee,
                (iii) if
                the Company’s shares are publicly traded, all or part of the Exercise
                Price and any withholding taxes may be paid by the delivery (on a
                form
                prescribed by the Company) of an irrevocable direction to pledge
                Shares to
                a securities broker or lender approved by the Company, as security
                for a
                loan, and to deliver all or part of the loan proceeds to the Company
                or
                the Trustee, or (iv) in such other manner as the Company shall implement
                from time to time, which may include procedures for cashless exercise.
                

            

    

     

    
      	
              6.5.  

            	
              Term
                and Vesting of Options. Each Option Agreement shall provide the
                vesting schedule for the Option as determined by the Committee. To
                the
                extent permitted under Applicable Law, the Committee shall have the
                authority to determine the vesting schedule and accelerate the vesting
                of
                any outstanding Option at such time and under such circumstances
                as it, in
                its sole discretion, deems appropriate. The Option Agreement may
                contain
                performance goals and

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
         

        
          	
                    

                	
                  
                    measurements,
                      and the provisions with respect to any Option need not be the
                      same as the
                      provisions with respect to any other Option. The Exercise Period
                      of an
                      Option will be specified in the Option Agreement but in no
                      event shall the
                      Exercise Period exceed ten (10) years from the date of grant
                      of the
                      Option; provided, however, that in the case of an Incentive Stock
                      Option granted to a Ten Percent Shareholder, such Exercise
                      Period shall
                      not exceed five (5) years from the date of grant of such Option
                      (as
                      further described in Section 8.2 of this Plan). At the expiration
                      of the
                      Exercise Period, all unexercised Options shall become null
                      and
                      void.

                  

                

        

         

      

    

    
      	
              6.6.  

            	
              Termination.

            

    

     

    
      	
              6.6.1.  

            	
              Except
                as provided in this Section 6.6 and in Section 6.7 hereof, an Option
                may
                not be exercised unless the Grantee is then in the employ of or
                maintaining a director, officer, consultant, advisor or supplier
                relationship with the Company or a Subsidiary or Affiliate thereof
                or, in
                the case of an Incentive Stock Option, a company or a parent or subsidiary
                company of such company issuing or assuming the Option in a transaction
                to
                which Section 424(a) of the Code applies, and unless the Grantee
                has
                remained continuously so employed or in the director, officer, supplier,
                consultant, or advisor relationship since the date of grant of the
                Option.  In the event that the employment or director, officer
                or consultant, advisor or supplier relationship of a Grantee shall
                terminate (other than by reason of death, Disability or Retirement),
                (a)
                in the event that the Grantee has been continuously employed by the
                Company or a Subsidiary thereof for six (6) years or more as of such
                termination, all Options of such Grantee that are vested and exercisable
                at the time of such termination may, unless earlier terminated in
                accordance with their terms, be exercised until the termination date
                of
                each such Option in accordance with its terms (or such different
                period as
                the Committee shall prescribe), and (b) in the event that the Grantee
                has
                been continuously employed by the Company or a Subsidiary thereof
                for less
                than six (6) years as of such termination, all Options of such Grantee
                that are vested and exercisable at the time of such termination may,
                unless earlier terminated in accordance with their terms, be exercised
                within up to ninety (90) days after the date of such termination
                (or such
                different period as the Committee shall prescribe); provided,
                however, with respect to clauses (a) and (b) above, that if the
                Company (or the Subsidiary or Affiliate, when applicable) shall terminate
                the Grantee’s employment or service for Cause (as defined below) or if
                following the Grantee’s termination of employment or service,
                circumstances arise or are discovered with respect to the Grantee
                that
                would have constituted Cause for termination of his or her employment
                or
                service, all Options theretofore granted to such Grantee (whether
                vested
                or not) shall, to the extent not theretofore exercised, terminate
                on the
                date of such termination (or on which such circumstance arise or
                are
                discovered, as the case may be) unless otherwise determined by the
                Committee.  Notwithstanding the foregoing, an Option may be
                exercised by a Grantee subsequent to their employment or other
                relationship with the Company or a Subsidiary if so determined by
                the
                Committee in its sole discretion.

            

    

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              6.6.2.  

            	
              In
                the case of a Grantee whose principal employer is a Subsidiary or
                an
                Affiliate, the Grantee’s employment shall also be deemed terminated for
                purposes of this Section 6.6 as of the date on which such principal
                employer ceases to be a Subsidiary or
                Affiliate.  Notwithstanding anything to the contrary, the
                Committee, in its absolute discretion may, on such terms and conditions
                as
                it may determine appropriate, extend the periods for which the Options
                held by any individual may continue to vest and be exercisable;
                provided, that such Options may lose their status as Incentive
                Stock Options under applicable law and be deemed Nonqualified Stock
                Options in the event that the period of vesting and/or exercisability
                of
                any option is extended beyond the later of: (i) one hundred and eighty
                (180) days after the date of cessation of employment or performance
                of
                services; or (ii) the applicable period under Section 6.7
                below.

            

    

     

    
      	
              6.6.3.  

            	
              For
                purposes of this Plan, the term “Cause” shall mean any of
                the following: (a) fraud, embezzlement or felony or similar act by
                the
                Grantee; (b) an act of moral turpitude by the Grantee, or any similar
                act,
                to the extent that such act causes significant injury to the reputation,
                business or business relationship of the Company (or a Subsidiary
                or
                Affiliate thereof); (c) any breach by the Grantee of an agreement
                between
                the Company or any Subsidiary or Affiliate thereof and the Grantee
                (including breach of confidentiality, non-competition or non-solicitation
                covenants); or (d) any circumstances that constitute grounds for
                termination for cause under the Grantee’s employment, consulting or
                service agreement with the Company or Subsidiary or Affiliate, to
                the
                extent applicable, or under any policies in effect relating to employment
                by the Company or any of its Subsidiaries or Affiliates known by
                or that
                should have been known by the Grantee.

            

    

     

    
      	
              6.7.  

            	
              Death,
                Disability or Retirement of Grantee. If a Grantee shall die while
                employed by, or performing service for, the Company or an Affiliate,
                or
                die within the one (1) year period after the date of termination
                of such
                Grantee's employment or service (or within such different period
                as the
                Committee may have provided pursuant to Section 6.6 hereof), or if
                the
                Grantee's employment or service shall terminate by reason of Disability,
                (a) in the event that the Grantee has been
                continuously

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

      
        	
              	
                employed
                  by the Company or a Subsidiary thereof for six (6) years or more
                  as of
                  such termination, all Options theretofore granted to such Grantee
                  may (to
                  the extent otherwise vested and exercisable and unless earlier
                  terminated
                  in accordance with their terms), be exercised by the Grantee or
                  by the
                  Grantee’s estate or by a person who acquired the right to exercise such
                  Options by bequest or inheritance or otherwise by result of death
                  or
                  disability of the Grantee, at any time until the termination date
                  of each
                  such Option in accordance with its terms (or such different period
                  as the
                  Committee shall prescribe), and (b) in the event that the Grantee
                  has been
                  continuously employed by the Company or a Subsidiary thereof for
                  less than
                  six (6) years as of such termination, all Options theretofore granted
                  to
                  such Grantee may (to the extent otherwise vested and exercisable
                  and
                  unless earlier terminated in accordance with their terms), be exercised
                  by
                  the Grantee or by the Grantee's estate or by a person who acquired
                  the
                  right to exercise such Options by bequest or inheritance or otherwise
                  by
                  result of death or Disability of the Grantee, at any time within
                  one (1)
                  year after the death or Disability of the Grantee (or such different
                  period as the Committee shall prescribe).  In the event that an
                  Option granted hereunder shall be exercised by the legal representatives
                  of a deceased or Disabled Grantee, written notice of such exercise
                  shall
                  be accompanied by a certified copy of letters testamentary or equivalent
                  proof of the right of such legal representative to exercise such
                  Option.  In the event that the employment or service of a
                  Grantee shall terminate on account of such Grantee's Retirement,
                  (a) in
                  the event that the Grantee has been continuously employed by the
                  Company
                  or a Subsidiary thereof for six (6) years or more as of such termination,
                  all Options of such Grantee that are vested and exercisable at
                  the time of
                  such termination may, unless earlier terminated in accordance with
                  their
                  terms, be exercised until the termination date of each such Option
                  in
                  accordance with its terms (or such different period as the Committee
                  shall
                  prescribe), and (b) in the event that the Grantee has been continuously
                  employed by the Company or a Subsidiary thereof for less than six
                  (6)
                  years as of such termination, all Options of such Grantee that
                  are
                  exercisable at the time of such Retirement may, unless earlier
                  terminated
                  in accordance with their terms, be exercised at any time within
                  the three
                  (3) month period after the date of such Retirement (or such different
                  period as the Committee shall
                  prescribe).

              

      

       

    

    
      	
              6.8.  

            	
              Suspension
                of Vesting. Unless the Board of Directors or the Committee provides
                otherwise, vesting of Options granted hereunder shall be suspended
                during
                any unpaid leave of absence, other than in the case of any (a) leave
                of
                absence which was pre-approved by the Company, (b) maternity leave
                in
                accordance with Company policy in effect from time to time or (c)
                transfers between locations of the Company or between the Company,
                any
                Affiliate, or any respective successor
                thereof.

            

    

     

    
      	
              6.9.  

            	
              INTENTIONALLY
                OMITTED 

            

    

     

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              6.10.  

            	
              Other
                Provisions. The Option Agreement evidencing Awards under the Plan
                shall contain such other terms and conditions not inconsistent with
                the
                Plan as the Committee may determine, at or after the date of grant,
                including without limitation, provisions in connection with the
                restrictions on transferring the Awards, which shall be binding upon
                the
                Grantees, and other terms and conditions as the Committee shall deem
                appropriate.

            

    

     

     

    
      	
              7. 
                          

            	
              NONQUALIFIED
                STOCK OPTIONS.

            

    

     

    
      	
               

            	
              Options
                granted pursuant to this Section 7 are intended to constitute Nonqualified
                Stock Options and shall be subject to the general terms and conditions
                specified in Section 6 hereof and other applicable provisions of
                the Plan,
                except for any provisions of the Plan applying to Options under different
                tax laws or regulations.

            

    

     

     

    
      	
              8. 
                          

            	
              INCENTIVE
                STOCK OPTIONS.

            

    

     

    
      	
               

            	
              Options
                granted pursuant to this Section 8 are intended to constitute Incentive
                Stock Options and shall be granted subject to the following special
                terms
                and conditions, the general terms and conditions specified in Section
                6
                hereof and other applicable provisions of the Plan, except for any
                provisions of the Plan applying to Options under different tax laws
                or
                regulations:

            

    

     

    
      	
              8.1.  

            	
              Value
                of Shares. The aggregate Fair Market Value (determined as of the date
                the Incentive Stock Option is granted) of the Shares with respect
                to which
                all Incentive Stock Options granted under this Plan and all other
                option
                plans of any Subsidiary or Affiliate become exercisable for the first
                time
                by each Grantee during any calendar year shall not exceed one hundred
                thousand United States dollars ($100,000) with respect to such
                Grantee.  To the extent that the aggregate Fair Market Value of
                Shares with respect to which the Incentive Stock Options are exercisable
                for the first time by any Grantee during any calendar years exceeds
                one
                hundred thousand United States dollars ($100,000), such Options shall
                be
                treated as Nonqualified Stock Options.  The foregoing shall be
                applied by taking options into account in the order in which they
                were
                granted, with the Fair Market Value of any Share to be determined
                at the
                time of the grant of the Option.  In the event the foregoing
                results in the portion of an Incentive Stock Option exceeding the
                one
                hundred thousand United States dollars ($100,000) limitation, only
                such
                excess shall be treated as a Nonqualified Stock
                Option.

            

    

     

    
      	
              8.2.  

            	
              Ten
                Percent Shareholder. In the case of an Incentive Stock Option granted
                to a Ten Percent Shareholder, (i) the Exercise Price shall not be
                less
                than one hundred and ten percent (110%) of the Fair Market Value
                of the
                Shares on the date of grant of such Incentive Stock Option, and (ii)
                the
                Exercise Period shall not exceed five (5) years from the date of
                grant of
                such Incentive Stock Option.

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              8.3.  

            	
              Incentive
                Stock Option Lock-Up Period. No disposition of Shares received
                pursuant to the exercise of Incentive Stock Options (“ISO
                Shares”), shall be made by the Grantee within 2 years from the
                date of grant, nor within 1 year after the transfer of such ISO Shares
                to
                him. To the extent that the Grantee violates the aforementioned
                limitations, the Incentive Stock Options shall be deemed to be
                Nonqualified Stock Options.

            

    

     

    
      	
              8.4.  

            	
              Approval.
                The status of any ISO Shares shall be subject to approval of the
                Plan by
                the Company’s shareholders, such approval to be provided 12 months before
                or after the date of adoption of the Plan by the Board of
                Directors.

            

    

     

    
      	
              8.5.  

            	
              Exercise
                Following Termination. Notwithstanding anything else in this Plan to
                the contrary, Incentive Stock Options that are not exercised within
                ninety
                (90) days following termination of Grantee’s employment in the Company or
                its Affiliates and Subsidiaries, or within one year in case of termination
                of Grantee’s employment in the Company or its Affiliates and Subsidiaries
                due to a disability (within the meaning of section 22(e)(3) of the
                Code),
                shall be deemed to be Nonqualified Stock
                Options.

            

    

     

    
      	
              8.6.  

            	
              Adjustments
                to Incentive Stock Options. Any Option Agreement
                providing for the grant of Incentive Stock Options shall indicate
                that
                adjustments made pursuant to the Plan with respect to Incentive Stock
                Options could constitute a “modification” of such Incentive Stock Options
                (as that term is defined in Section 424(h) of the Code) or could
                cause
                adverse tax consequences for the holder of such Incentive Stock Options
                and that the holder should consult with his or her tax advisor regarding
                the consequences of such “modification” on his or
                her income tax treatment with respect to the Incentive Stock
                Option.

            

    

     

    
      	
              8.7.  

            	
              Notice
                to Company of Disqualifying Disposition. Each Grantee who receives an
                Incentive Stock Option must agree to notify the Company in writing
                immediately after the Grantee makes a Disqualifying Disposition of
                any
                Shares acquired upon exercise of an Incentive Stock Option (“ISO
                Shares”). A “Disqualifying Disposition” is any disposition
                (including any sale) of such Shares before the later of (i) two years
                after the date the Grantee was granted the Incentive Stock Option,
                or (ii)
                one year after the date the Grantee acquired Shares by exercising
                the
                Incentive Stock Option.  If the Grantee dies before such ISO
                Shares are sold, these holding period requirements do not apply and
                no
                disposition of the Shares acquired upon exercise of the Incentive
                Stock
                Option will be deemed a Disqualifying
                Disposition.

            

    

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              9. 
                          

            	
              102
                OPTION AWARDS.

            

    

     

    
      	
              9.1.  

            	
              Options
                granted pursuant to this Section 9 are intended to be granted pursuant
                to
                Section 102 of the Ordinance pursuant to either (a) Section 102(b)(2)
                thereof as capital gains track options (“102 Capital Gains Track
                Options”), or  (b) Section 102(b)(1) thereof as
                ordinary income track options (“102 Ordinary Income Track
                Options”; together with 102 Capital Gains Track Options,
                “102 Trustee Options”).  102 Trustee Options
                shall be granted subject to the following special terms and conditions
                contained in this Section 9, the general terms and conditions specified
                in
                Section 6 hereof and other applicable provisions of the
                Plan.

            

    

     

    
      	
              9.2.  

            	
              The
                Company may grant only one type of 102 Trustee Option at any given
                time to
                all Grantees who are to be granted 102 Trustee Options pursuant to
                this
                Plan, and shall file an election with the ITA regarding the type
                of 102
                Trustee Option it elects to grant before the first date of grant
                of any
                102 Trustee Options (the “Election”).  Such
                Election shall also apply to any Bonus Shares received by any Grantee
                as a
                result of holding the 102 Trustee Options.  The Company may
                change the type of 102 Trustee Option that it elects to grant only
                after
                the passage of at least 12 months from the end of the year in which
                the
                first grant was made in accordance with the previous Election, or
                as
                otherwise provided by Applicable Law.  Any Election shall not
                prevent the Company from granting Options pursuant to Section 102(c)
                of
                the Ordinance without a Trustee (“102 Non-Trustee
                Options”).

            

    

     

    
      	
              9.3.  

            	
              Each
                102 Trustee Option will be deemed granted on the date stated in a
                written
                notice to be provided by the Company or in the Option Agreement,
                provided that on or before such date all actions required to be
                taken under Applicable Law shall have been taken, including, without
                limitation, (i) the Company has provided such notice to the Trustee
                and
                (ii) the Grantee has signed all documents required pursuant to Applicable
                Law and under the Plan.

            

    

     

    
      	
              9.4.  

            	
              Each
                102 Trustee Option, each Share issued pursuant to the exercise of
                any 102
                Trustee Option, and any rights granted thereunder, including, without
                limitation, Bonus Shares, shall be allotted and issued to and registered
                in the name of the Trustee and shall be held in trust for the benefit
                of
                the Grantee for a period of not less than the requisite period prescribed
                by the Ordinance and the Rules or such longer period as set by the
                Committee (the “Required Holding Period”).  In
                the event that the requirements under Section 102 to qualify an Option
                as
                a 102 Trustee Option are not met, then the Option may be treated
                as a 102 Non-Trustee Option, all in accordance with the provisions
                of
                Section 102 and the Rules.  After termination of the Required
                Holding Period, the Trustee may release such 102 Trustee Option and
                any
                such Shares, provided that (i) the Trustee has received an
                acknowledgment from the ITA that the Grantee has paid any applicable
                taxes
                due pursuant to the Ordinance or  (ii) the Trustee and/or the
                Company and/or its Affiliate withholds any applicable taxes due pursuant
                to the Ordinance arising from the 102 Trustee Options and/or any
                Shares
                allotted or issued upon exercise of such 102 Trustee
                Options.  The Trustee shall not release any 102 Trustee Options
                or Shares issued upon exercise thereof prior to the payment in full
                of the
                Grantee’s tax liabilities arising from such 102 Trustee Options and/or
                Shares or the withholding referred to in (ii)
                above.

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              9.5.  

            	
              Each
                102 Trustee Option shall be subject to the relevant terms of the
                Ordinance
                and the Rules, which shall be deemed an integral part of the 102
                Trustee
                Option and shall prevail over any term contained in the Plan or Option
                Agreement which is not consistent therewith.  Any provision of
                the Ordinance, the Rules and any approvals by the Income Tax Commissioner
                not expressly specified in this Plan or Option Agreement which, as
                determined by the Committee, are necessary to receive or maintain
                any tax
                benefit pursuant to Section 102 shall be binding on the
                Grantee.  The Grantee granted a 102 Trustee Option shall comply
                with the Ordinance and the terms and conditions of the Trust Agreement
                entered into between the Company and the Trustee.  The Grantee
                agrees to execute any and all documents, which the Company and/or
                its
                Affiliates and/or the Trustee may reasonably determine to be necessary
                in
                order to comply with the Ordinance and the
                Rules.

            

    

     

    
      	
              9.6.  

            	
              During
                the Required Holding Period, the Grantee shall not release from trust
                or
                sell, assign, transfer or give as collateral, the Shares issuable
                upon the
                exercise of a 102 Trustee Option and/or any securities issued or
                distributed with respect thereto, until the expiration of the Required
                Holding Period.  Notwithstanding the above, if any such sale or
                release occurs during the Required Holding Period, it may result
                in
                adverse tax consequences to the Grantee under Section 102 of the
                Ordinance
                and the Rules, which shall apply to and shall be borne solely by
                such
                Grantee.  Subject to the foregoing, the Trustee may, pursuant to
                a written request from the Grantee, release and transfer such Shares
                to a
                designated third party, provided that both of the following
                conditions have been fulfilled prior to such release or transfer:
                (i)
                payment has been made to the ITA of all taxes required to be paid
                upon the
                release and transfer of the Shares, and confirmation of such payment
                has
                been received by the Trustee and (ii) the Trustee has received written
                confirmation from the Company that all requirements for such release
                and
                transfer have been fulfilled according to the terms of the Company’s
                corporate documents, the Plan, the applicable Option Agreement and
                any
                Applicable Law.

            

    

     

    
      	
              9.7.  

            	
              If
                a 102 Trustee Option is exercised during the Required Holding Period,
                the
                Shares issued upon such exercise shall be issued in the name of the
                Trustee for the benefit of the Grantee.  If such 102 Trustee
                Option is exercised after the expiration of the Required Holding
                Period,
                the Shares issued upon such exercise shall, at the election of the
                Grantee, either (i) be issued in the name of the Trustee, or (ii)
                be
                issued to the Grantee, provided that the Grantee first complies
                with all applicable provisions of the Plan and all taxes with respect
                thereto shall have been fully paid to the
                ITA.

            

    

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              9.8.  

            	
              The
                foregoing provisions of this Section 9 relating to 102 Trustee Options
                shall not apply with respect to 102 Non-Trustee Options, which shall,
                however, be subject to the relevant provisions of Section 102 and
                the
                Rules.

            

    

     

    
      	
              9.9.  

            	
              Upon
                receipt of a 102 Trustee Option, the Grantee shall sign an undertaking
                to
                release the Trustee from any liability with respect to any action
                or
                decision duly taken and executed in good faith by the Trustee in
                relation
                to the Plan, or any 102 Trustee Option or Share granted to such Grantee
                thereunder.

            

    

     

    
      	
              9.10.  

            	
              With
                respect to 102 Non-Trustee Options, if the Grantee ceases to be employed
                by the Company or any Affiliate, the Grantee shall extend to the
                Company
                and/or its Affiliate a security or guarantee for the payment of tax
                due at
                the time of sale of Shares, all in accordance with the provisions
                of
                Section 102 and the Rules, regulation or orders promulgated
                thereunder.

            

    

     

     

    
      	
              10.          

            	
              3(9)
                OPTION AWARD.

            

    

     

    
      	
              10.1.  

            	
              Options
                granted pursuant to this Section 10 are intended to constitute 3(9)
                Option
                Awards and shall be granted subject to the general terms and conditions
                specified in Section 6 hereof and other applicable provisions of
                the Plan,
                except for any provisions of the Plan applying to Options under different
                tax laws or regulations..

            

    

     

    
      	
              10.2.  

            	
              To
                the extent required by the Ordinance or the ITA or otherwise deemed
                by the
                Committee prudent or advisable in its sole discretion, the 3(9) Option
                Awards granted pursuant to the Plan shall be issued to a Trustee
                nominated
                by the Committee in accordance with the provisions of the
                Ordinance.  In such event, the Trustee shall hold such Options
                in trust, until exercised by the Grantee, pursuant to the Company's
                instructions from time to time as set forth in a trust agreement,
                which
                will be entered into between the Company and the Trustee.  If
                determined by the Board or the Committee, and subject to such trust
                agreement, the Trustee shall be responsible for withholding any taxes
                to
                which a Grantee may become liable upon the exercise of
                Options.

            

    

     

     

    
      	
              11.          

            	
              RESTRICTED
                SHARES.

            

    

     

    
      	
                
                

            	
              The
                Committee may award Restricted Shares to any eligible Grantee, including
                under Section 102 of the Ordinance. In case of Restricted Shares
                granted
                under Section 102 of the Ordinance, all of the provisions
                under

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

      
        	
                  
                  

              	
                Section
                  9 above shall apply mutatis mutandis, with respect to the grant
                  of
                  Restricted Shares (other than with respect to Section 9.10 which
                  shall not
                  apply), all as determined under Section 102 of the Ordinance, the
                  Rules or
                  any such other rules, regulations, orders or procedures promulgated
                  thereunder, including without limitation the Required Holding Period.
                  Each
                  Award of Restricted Shares under the Plan shall be evidenced by
                  a written
                  agreement between the Company and the Grantee (the “Restricted
                  Share Agreement”), in such form as the Committee shall from time
                  to time approve. Such Restricted Shares shall be subject to all
                  applicable
                  terms of the Plan and may be subject to any other terms that are
                  not
                  inconsistent with the Plan. The provisions of the various Restricted
                  Share
                  Agreements entered into under the Plan need not be identical. The
                  Restricted Share Agreement shall comply with and be subject to
                  the
                  following terms and conditions, unless otherwise specifically provided
                  in
                  such Restricted Share Agreement:

              

      

       

    

    
      	
              11.1.  

            	
              Number
                of Shares. Each Restricted Share Agreement shall state the number of
                Shares covered by an Award.

            

    

     

    
      	
              11.2.  

            	
              Purchase
                Price. Each Restricted Share Agreement may state an amount of purchase
                price, if any, to be paid by the Grantee in consideration for the
                issuance
                of the Restricted Shares and the terms of payment thereof, which
                may
                include payment by issuance of promissory notes or other evidence
                of
                indebtedness on such terms and conditions as determined by the Committee;
                provided that in no event shall payment be made by issuance of
                any evidence of indebtedness if such issuance would be a violation
                of
                Applicable Law.

            

    

     

    
      	
              11.3.  

            	
              Vesting.
                Each Restricted Share Agreement shall provide the vesting schedule
                for the
                Restricted Shares as determined by the Committee, provided that
                (to the extent permitted under Applicable Law) the Committee shall
                have
                the authority to determine the vesting schedule based on the passage
                of
                time and/or such performance criteria as deemed appropriate by the
                Committee. Notwithstanding anything to the contrary herein, the
                performance criteria for any Restricted Shares that is intended to
                satisfy
                the requirements for “performance-based compensation” under Section 162(m)
                of the Code shall be a measure based on one or more Qualifying Performance
                Criteria selected by the Committee and specified at the time the
                Restricted Shares Award is granted.

            

    

     

    
      	
              11.4.  

            	
              Restrictions.
                Except as otherwise provided in Section 15.1 hereof, Restricted Shares
                may
                not be sold, assigned, transferred, pledged, hypothecated or otherwise
                disposed of, except by will or the laws of descent and distribution,
                for
                such period as the Committee shall determine from the date on which
                the
                Award is granted (the “Restricted Period”). The Committee
                may also impose such additional or alternative restrictions and conditions
                on the Restricted Shares, as it deems appropriate, including the
                satisfaction of performance criteria. Such performance criteria may
                include, but are not limited to, sales, earnings before interest
                and
                taxes, return on investment, earnings per share, any combination
                of the
                foregoing or

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        	
              	
                rate
                  of growth of any of the foregoing, as determined by the
                  Committee.  Certificates for shares issued pursuant to
                  Restricted Share Awards shall bear an appropriate legend referring
                  to such
                  restrictions, and any attempt to dispose of any such shares in
                  contravention of such restrictions shall be null and void and without
                  effect.  Such certificates may, if so determined by the
                  Committee, be held in escrow by an escrow agent appointed by the
                  Committee, or, if a Restricted Share Award is made pursuant to
                  Section
                  102, by the Trustee.  In determining the Restricted Period of an
                  Award the Committee may provide that the foregoing restrictions
                  shall
                  lapse with respect to specified percentages of the awarded Restricted
                  Shares on successive anniversaries of the date of such
                  Award.  To the extent required by the Ordinance or the ITA, the
                  Restricted Shares issued pursuant to Section 102 of the Ordinance
                  shall be
                  issued to the Trustee in accordance with the provisions of the
                  Ordinance
                  and the Restricted Shares shall be held for the benefit of the
                  Grantee for
                  such period as may be required by the
                  Ordinance.

              

      

       

    

    
      	
              11.5.  

            	
              Adjustment
                of Performance Goals. The Committee may adjust performance goals to
                take into account changes in law and accounting and tax rules and
                to make
                such adjustments as the Committee deems necessary or appropriate
                to
                reflect the inclusion or the exclusion of the impact of extraordinary
                or
                unusual items, events or circumstances.  The Committee also may
                adjust the performance goals by reducing the amount to be received
                by any
                Grantee pursuant to an Award if and to the extent that the Committee
                deems
                it appropriate.  Notwithstanding the foregoing, no adjustment
                shall be made to any Qualifying Performance Criteria if such adjustment
                would cause the compensation to cease to qualify as “performance-based
                compensation” under Section 162(m) of the
                Code.

            

    

     

    
      	
              11.6.  

            	
              Forfeiture.
                Subject to such exceptions as may be determined by the Committee
                from time
                to time in its sole discretion, if the Grantee's continuous employment
                with the Company or any Subsidiary shall terminate for any reason
                prior to
                the vesting date or expiration of the Restricted Period of an Award
                or, if
                applicable, prior to the payment in full of the purchase price of
                any
                Restricted Shares with respect to which the vesting date or the Restricted
                Period has expired, any shares remaining subject to vesting or
                restrictions or with respect to which the purchase price has not
                been paid
                in full, shall thereupon be forfeited and shall be deemed transferred
                to,
                and reacquired by, or cancelled by, as the case may be, the Company
                at no
                cost to the Company, subject to all Applicable Laws.  Upon
                forfeiture of Restricted Shares, the Grantee shall have no further
                rights
                with respect to such Restricted
                Shares.

            

    

     

    
      	
              11.7.  

            	
              Ownership.
                During the Restricted Period the Grantee shall possess all incidents
                of
                ownership of such Restricted Shares, subject to Section 11.4, including
                the right to vote and receive dividends with respect to such
                shares.  All distributions, if any, received by a Grantee with
                respect to Restricted Shares as a result of any stock split, stock
                dividend, combination of shares, or other similar transaction shall
                be
                subject to the restrictions applicable to the original
                Award.

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              12.          

            	
              RESTRICTED
                SHARE UNITS.

            

    

     

    
      	
              12.1.  

            	
              A
                restricted Share unit (an “RSU”) is an Award covering a
                number of Shares that is settled by issuance of those Shares or cash
                equal
                to the Fair Market Value of those Shares.  An RSU may be awarded
                to any eligible Grantee, including under Section 102 of the
                Ordinance.  In the event an RSU is awarded to an eligible
                Grantee under Section 102 of the Ordinance, all of the provisions
                under
                Section 9 above shall apply, mutatis mutandis, with respect to the
                grant
                of an RSU award (other than with respect to Section 9.10, which shall
                not
                apply), all as determined under Section 102 of the Ordinance, the
                Rules or
                any such other rules, regulations, orders or procedures promulgated
                thereunder, including without limitation the Required Holding Period.
                Each
                grant of RSUs under the Plan shall be evidenced by a written agreement
                between the Company and the Grantee (the “Restricted Share Unit
                Agreement”), in such form as the Committee shall from time to
                time approve.  Such RSUs shall be subject to all applicable
                terms of the Plan and may be subject to any other terms that are
                not
                inconsistent with the Plan.  The provisions of the various
                Restricted Share Unit Agreements entered into under the Plan need
                not be
                identical. RSUs may be granted in consideration of a reduction in
                the
                recipient’s other
                compensation.

            

    

     

    
      	
              12.2.  

            	
              Other
                than the par value of the Shares, no payment of cash shall be required
                as
                consideration for RSUs.  RSUs may or may not be subject to
                vesting as determined by the Committee which may be based on the
                passage
                of time and/or such performance criteria as deemed appropriate by
                the
                Committee.  Vesting shall occur, in full or in installments,
                upon satisfaction of the conditions specified in the Restricted Share
                Unit
                Agreement. Notwithstanding anything to the contrary herein, the
                performance criteria for any RSUs that is intended to satisfy the
                requirements for “performance-based compensation” under Section 162(m) of
                the Code shall be a measure based on one or more Qualifying Performance
                Criteria selected by the Committee and specified in the Restricted
                Share
                Unit Agreement.

            

    

     

    
      	
              12.3.  

            	
              No voting
                or dividend rights as a shareholder shall exist prior to the actual
                issuance of Shares in the name of the Grantee.  Each Restricted
                Share Unit Agreement shall specify its term and any conditions on
                the time
                or times for settlement, and provide for expiration prior to the
                end of
                its term in the event of termination of employment or service providing
                to
                the Company, and may provide for earlier settlement in the event
                of the
                Grantee’s death, Disability or other
                events.

            

    

     

    
      	
              12.4.  

            	
              Settlement
                of vested RSUs shall be made in the form of Shares. Distribution
                to a
                Grantee of an amount (or amounts) from settlement of vested RSUs
                can be
                deferred to a date after settlement as determined by the Committee.
                The
                amount of a deferred distribution may be increased by an interest
                factor
                or by dividend equivalents. Until the grant of RSUs is settled, the
                number
                of such RSUs shall be subject to adjustment pursuant
                hereto.

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              13.          

            	
              OTHER
                SHARE OR SHARE-BASED
                AWARDS.

            

    

     

    
      	
               

            	
              The
                Committee may grant other Awards under the Plan pursuant to which
                Shares
                (which may, but need not, be Restricted Shares pursuant to Section
                11
                hereof), cash or a combination thereof, are or may in the future
                be
                acquired or received, or Awards denominated in stock units, including
                units valued on the basis of measures other than market value. The
                Committee may also grant stock appreciation rights without the grant
                of an
                accompanying option, which rights shall permit the Grantees to receive,
                at
                the time of any exercise of such rights, cash equal to the amount
                by which
                the Fair Market Value of all Shares in respect to which the right
                was
                granted exceeds the exercise price thereof.  The Committee may,
                and it is hereby deemed to be an Award under the terms of the Plan,
                grant
                to Grantees (including employees) the opportunity to purchase Shares
                of
                the Company in connection with any public offerings of the Company’s
                securities. Such other Share-based Awards may be granted alone, in
                addition to, or in tandem with any Award of any type granted under
                the
                plan and must be consistent with the purposes of the
                Plan.

            

    

     

     

    
      	
              14.          

            	
              EFFECT
                OF CERTAIN CHANGES.

            

    

     

    
      	
              14.1.  

            	
              General.
                In the event of a subdivision of the outstanding share capital of
                the
                Company, any payment of a stock dividend (distribution of Bonus Shares),
                a
                recapitalization, a reorganization (which may include a combination
                or
                exchange of shares), a consolidation, a stock split, a reverse stock
                split, a spin-off or other corporate divestiture or division, a
                reclassification or other similar occurrence, the Committee shall
                make
                such adjustments as determined by the Committee to be appropriate
                in order
                to adjust (i) the number of Shares available for grants of Awards,
                (ii)
                the number of Shares covered by outstanding Awards, and (iii) the
                exercise
                price per Share covered by any Award; provided, however, that any
                fractional shares resulting from such adjustment shall be rounded
                down to
                the nearest whole share and that the Company shall have no obligation
                to
                make any cash or other payment with respect to such fractional
                shares.

            

    

     

    
      	
              14.2.  

            	
              Merger
                and Sale of Company.  In the event of (i) a sale of all or
                substantially all of the assets of the Company; or (ii) a sale (including
                an exchange) of all or substantially all of the Shares of the Company;
                (iii) a merger, consolidation, amalgamation or like transaction of
                the
                Company with or into another corporation; (iv) a scheme of arrangement
                for
                the purpose of effecting such sale, merger or amalgamation; or (v)
                such
                other transaction that is determined by the Committee to be a transaction
                having a similar effect (all such transactions being herein referred
                to as
                a “Merger/Sale”), then, without the Grantee’s
                consent and action:

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              14.2.1.  

            	
              The
                Committee in its sole and absolute discretion may cause that any
                Award
                then outstanding shall be assumed or an equivalent Award shall be
                substituted by such successor corporation of the Merger/Sale or any
                parent
                or Affiliate thereof as determined by the Board is its discretion
                (the
                “Successor Corporation”), under substantially the same
                terms as the Award;

            

    

     

    For
      the
      purposes of this Section 14.2.1, the Award shall be considered assumed if,
      following a Merger/Sale, the Award confers on the holder thereof the right
      to
      purchase or receive, for each Share underlying an Award immediately prior to
      the
      Merger/Sale, either (i) the consideration (whether stock, cash, or other
      securities or property) distributed to or received by holders of Shares in
      the
      Merger/Sale for each Share held on the effective date of the Merger/Sale (and
      if
      holders were offered a choice of consideration, the type of consideration chosen
      by the holders of a majority of the outstanding Shares), which may be subject
      to
      vesting and other terms as determined by the Committee in its sole discretion,
      or (ii) regardless of the consideration received by the holders of Shares in
      the
      Merger/Sale, solely shares (or their equivalent) of the Successor Corporation
      at
      a value to be determined by the Committee in its discretion, which may be
      subject to vesting and other terms as determined by the Committee in its
      discretion. The foregoing shall not limit the Committee authority to determine,
      in its sole discretion, that in lieu of such assumption or substitution of
      Awards for Awards of the Successor Corporation, such Award will be substituted
      for any other type of asset or property, including under Section 14.2.2
      hereunder.

     

    
      	
              14.2.2.  

            	
              In
                the event that the Awards are not assumed or substituted by an equivalent
                Award, then the Committee may (but shall not be obligated to), in
                lieu of
                such assumption or substitution of the Award and in its sole discretion,
                (i) provide for the Grantee to have the right to exercise the Award,
                or
                otherwise for the acceleration of vesting of such Award, as to all
                or part
                of the Shares, including Shares covered by the Award which would
                not
                otherwise be exercisable or vested, under such terms and conditions
                as the
                Committee shall determine, including the cancellation of all unexercised
                Awards upon closing of the Merger/Sale; and/or (ii) provide for the
                cancellation of each outstanding Award at the closing of such Merger/Sale,
                and payment to the Grantee of an amount in cash as determined by
                the
                Committee to be fair in the circumstances, subject to such terms
                and
                conditions as determined by the
                Committee.

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
               

            	
              Notwithstanding
                the foregoing, in the event of a Merger/Sale, the Committee may determine,
                in its sole discretion, that upon completion of such Merger/Sale,
                the
                terms of any Award be otherwise amended, modified or terminated,
                as the
                Committee shall deem in good faith to be appropriate, and if an Option
                Award, that the Option Award shall confer the right to purchase or
                receive
                any other security or asset, or any combination thereof, or that
                its terms
                be otherwise amended, modified or terminated, as the Committee shall
                deem
                in good faith to be appropriate. Neither the authorities and powers
                of the
                Committee under this Section 14.2.2, nor the exercise or implementation
                thereof, shall (i) be restricted or limited in any way by any adverse
                consequences (tax or otherwise) that may result to any holder of
                an Award,
                and (ii) as, inter alia, being a feature of the Award upon its grant,
                be
                deemed to constitute a change or an amendment of the rights of such
                holder
                under this Plan, nor shall any such adverse consequences (as well
                as any
                adverse tax consequences that may result from any tax ruling or other
                approval or determination of any relevant tax authority) be deemed
                to
                constitute a change or an amendment of the rights of such holder
                under
                this Plan.

            

    

     

    
      	
              14.1.  

            	
              Reservation
                of Rights. Except as expressly provided in this Section
                14.3, the Grantee of an Award hereunder shall have
                no rights by reason of any subdivision or consolidation of shares
                of any
                class or the payment of any stock dividend (bonus shares), any other
                increase or decrease in the number of shares of any class or by reason
                of
                any dissolution, liquidation, Merger/Sale, or consolidation, divestiture
                or spin-off of assets or shares of another company.  Any issue
                by the Company of shares of any class, or securities convertible
                into
                shares of stock of any class, shall not affect, and no adjustment
                by
                reason thereof shall be made with respect to, the number, type or
                price of
                shares subject to an Award.  The grant of an Award pursuant to
                the Plan shall not affect in any way the right of power of the Company
                to
                make adjustments, reclassifications, reorganizations or changes of
                its
                capital or business structures or to merge or to consolidate or to
                dissolve, liquidate or sell, or transfer all or part of its business
                or
                assets or engage in any similar
                transactions.

            

    

     

     

    
      	
              15.          

            	
              NON-TRANSFERABILITY
                OF AWARDS; SURVIVING
                BENEFICIARY.

            

    

     

    
      	
              15.1.  

            	
              All
                Awards granted under the Plan shall not be transferable otherwise
                than by
                will or by the laws of descent and distribution.  Awards may be
                exercised or otherwise realized, during the lifetime of the
                Grantee,

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

      
        	
              	
                only
                  by the Grantee or by his guardian or legal representative, to the
                  extent
                  provided for herein.  Any transfer of an Award not permitted
                  hereunder (including transfers pursuant to any decree of divorce,
                  dissolution or separate maintenance, any property settlement, any
                  separation agreement or any other agreement with a spouse) and
                  any grant
                  of any interest in any Award to, or creation in any way of any
                  interest in
                  any Award by, any party other than the Grantee shall be null and
                  void and
                  shall not confer upon any party or person, other than the Grantee,
                  any
                  rights.  A Grantee may file with the Committee a written
                  designation of a beneficiary on such form as may be prescribed
                  by the
                  Committee and may, from time to time, amend or revoke such designation.
                  If
                  no designated beneficiary survives the Grantee, the executor or
                  administrator of the Grantee's estate shall be deemed to be the
                  Grantee's
                  beneficiary.  Notwithstanding anything to the contrary herein,
                  upon the request of the Grantee and subject to Applicable Law the
                  Committee, at its sole discretion, may permit to transfer the Award
                  to a
                  “family member” as defined in the General Instructions to Form S-8 (or
                  equivalent or successor form) under the Securities
                  Act.

              

      

       

    

    
      	
              15.2.  

            	
              Subject
                to the last sentence of Section 15.1, as long as the Shares are held
                by
                the Trustee in favor of the Grantee, all rights possessed by the
                Grantee
                over the Shares are personal, and may not be transferred, assigned,
                pledged or mortgaged, other than by will or laws of descent and
                distribution.

            

    

     

     

    
      	
              16.          

            	
              CONDITIONS
                UPON ISSUANCE OF
                SHARES

            

    

     

    
      	
              16.1.  

            	
              Legal
                Compliance.  Shares shall not be issued pursuant to the
                exercise of an Award, unless the exercise of such Award and the issuance
                and delivery of such Shares shall comply with Applicable Laws as
                determined by counsel to the Company.  The inability of the
                Company to obtain authority from any regulatory body having jurisdiction,
                which authority is deemed by the Company’s counsel to be necessary to the
                lawful issuance and sale of any Shares hereunder, shall relieve the
                Company of any liability in respect of the failure to issue or sell
                such
                Shares as to which such requisite authority shall not have been
                obtained.

            

    

     

    
      	
              16.2.  

            	
              Investment
                Representations.  As a condition to the exercise of an
                Award, the Company may require the person exercising such Award to
                represent and warrant at the time of any such exercise that the Shares
                are
                being purchased only for investment and without any present intention
                to
                sell or distribute such Shares, and make other representations as
                may be
                required under applicable securities laws if, in the opinion of counsel
                for the Company, such representations are required, all in form and
                content specified by the Company.

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              17.          

            	
              INTENTIONALLY
                OMITTED

            

    

     

     

    
      	
              18.          

            	
              AGREEMENT
                BY GRANTEE REGARDING
                TAXES.

            

    

     

    
      	
              18.1.  

            	
              As
                a condition of exercise of an Award, the release of Shares by the
                Trustee
                or the expiration of the Restricted Period, a Grantee shall agree
                that, no
                later than the date of such occurrence, he will pay to the Company
                or make
                arrangements satisfactory to the Committee and the Trustee (if applicable)
                regarding payment of any applicable taxes of any kind required by
                Applicable Law to be withheld or
                paid.

            

    

     

    
      	
              18.2.  

            	
              ALL
                TAX CONSEQUENCES UNDER ANY APPLICABLE LAW WHICH MAY ARISE FROM THE
                GRANT
                OF ANY AWARDS OR THE EXERCISE THEREOF, THE SALE OR DISPOSITION OF
                ANY
                SHARES GRANTED HEREUNDER OR ISSUED UPON EXERCISE OF ANY AWARD OR
                FROM ANY
                OTHER ACTION OF THE GRANTEE IN CONNECTION WITH THE FOREGOING SHALL
                BE
                BORNE AND PAID SOLELY BY THE GRANTEE, AND THE GRANTEE SHALL INDEMNIFY
                THE
                COMPANY, ITS SUBSIDIARIES AND AFFILIATES AND THE TRUSTEE, AND SHALL
                HOLD
                THEM HARMLESS AGAINST AND FROM ANY LIABILITY FOR ANY SUCH TAX OR
                PENALTY,
                INTEREST OR INDEXATION THEREON. EACH GRANTEE AGREES TO, AND UNDERTAKES
                TO
                COMPLY WITH, ANY RULING, SETTLEMENT, CLOSING AGREEMENT OR OTHER SIMILAR
                AGREEMENT OR ARRANGEMENT WITH ANY TAX AUTHORITY IN CONNECTION WITH
                THE FOREGOING WHICH IS APPROVED BY THE
                COMPANY.

            

    

     

    THE
      GRANTEE IS ADVISED TO CONSULT WITH A TAX ADVISOR WITH RESPECT TO THE TAX
      CONSEQUENCES OF RECEIVING OR EXERCISING AWARDS HEREUNDER. THE COMPANY DOES
      NOT
      ASSUME ANY RESPONSIBILITY TO ADVISE THE GRANTEE ON SUCH MATTERS, WHICH SHALL
      REMAIN SOLELY THE RESPONSIBILITY OF THE GRANTEE.

     

    
      	
              18.3.  

            	
              The
                Company or any Subsidiary or Affiliate may take such action as it
                may deem
                necessary or appropriate, in its discretion, for the purpose of or
                in
                connection with withholding of any taxes which the Company or any
                Subsidiary or Affiliate is required by any Applicable Law to withhold
                in
                connection with any Awards (collectively, “Withholding
                Obligations”).  Such actions may include, without
                limitation, (i) requiring a Grantees to remit to the Company in cash
                an
                amount sufficient to satisfy such Withholding Obligations; (ii) subject
                to
                Applicable Law, allowing the Grantees to provide Shares to the Company,
                in
                an amount that at such time, reflects a value that the Committee
                determines to be sufficient to satisfy such Withholding Obligations;
                (iii)
                withholding Shares otherwise issuable upon the exercise of an Award
                at a
                value which is determined by the Committee to be sufficient to satisfy
                such Withholding Obligations; or (iv) any combination of the
                foregoing.  The Company shall not be obligated to allow the
                exercise of any Award by or on behalf of a Grantee until all tax
                consequences arising from the exercise of such Award are resolved
                in a
                manner acceptable to the Company.

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              18.4.  

            	
              Each
                Grantee shall notify the Company in writing promptly and in any event
                within ten (10) days after the date on which such Grantee first obtains
                knowledge of any tax bureau inquiry, audit, assertion, determination,
                investigation, or question relating in any manner to the Awards granted
                or
                received hereunder or Shares issued thereunder and shall continuously
                inform the Company of any developments, proceedings, discussions
                and
                negotiations relating to such matter, and shall allow the Company
                and its
                representatives to participate in any proceedings and discussions
                concerning such matters.  Upon request, a Grantee shall provide
                to the Company any information or document relating to any matter
                described in the preceding sentence, which the Company, in its discretion,
                requires.

            

    

     

     

    
      	
              19.          

            	
              RIGHTS
                AS A STOCKHOLDER; VOTING AND
                DIVIDENDS.

            

    

     

    
      	
              19.1.  

            	
              Subject
                to Section 11.7, a Grantee shall have no rights as a shareholder
                of the
                Company with respect to any Shares covered by the Award until the
                date of
                the issuance of a share certificate to the Grantee for such Shares.
                The
                Grantee shall not have any of the rights or privileges of shareholders
                of
                the Company in respect of any Shares purchasable upon the exercise
                of any
                Award, nor shall they be deemed to be a class of shareholders, until
                registration of the Grantee as the holder of such Shares in the Company’s
                register of shareholders upon exercise of the Award in accordance
                with the
                provisions of the Plan. In the case of 102 Option Awards or 3(9)
                Option
                Awards (if such Share Options are being held by a Trustee), a Trustee
                shall have no rights as a shareholder of the Company with respect
                to any
                Shares covered by such Award until the date of the issuance of a
                share
                certificate to the Grantee for such Shares for the Grantee’s benefit, and
                the Grantee shall have no rights as a shareholder of the Company
                with
                respect to any Shares covered by the Award until the date of the
                release
                of such Shares from the Trustee to the Grantee and the issuance of
                a share
                certificate to the Grantee for such Shares.. No
                adjustment shall be made for dividends (ordinary or extraordinary,
                whether
                in cash, securities or other property) or distribution of other rights
                for
                which the record date is prior to the date such share certificate
                is
                issued, except as provided in Section 14
                hereof.

            

    

     

    
      	
              19.2.  

            	
              The
                Company may, but shall not be obligated to, register or qualify the
                sale
                of Shares under any applicable securities law or any other applicable
                law.

            

    

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              19.3.  

            	
              With
                respect to all Shares (but excluding, for avoidance of any doubt,
                any
                unexercised Options) allocated or issued upon the exercise or realization
                of Awards purchased by the Grantee and held by the Grantee or by
                the
                Trustee, as the case may be, the Grantee shall be entitled to receive
                dividends in accordance with the quantity of such Shares, subject
                to the
                provisions of the Company’s charter documents (and all amendments thereto)
                and subject to any applicable taxation on distribution of dividends,
                and
                when applicable subject to the provisions of Section 102 and the
                rules,
                regulations or orders promulgated
                thereunder.

            

    

     

     

    
      	
              20.          

            	
              NO
                REPRESENTATION BY
                COMPANY.

            

    

     

    
      	
               

            	
              By
                granting the Awards, the Company is not, and shall not be deemed
                as,
                granting any representation or warranties to the Grantee regarding
                the
                Company, its business affairs, its prospects or the future value
                of its
                Shares.

            

    

     

     

    
      	
              21.          

            	
              NO
                RETENTION RIGHTS.

            

    

     

    
      	
               

            	
              Nothing
                in the Plan or in any Award granted or agreement entered into pursuant
                hereto shall confer upon any Grantee the right to continue in the
                employ
                of, or be in a consultant, advisor, director, officer or supplier
                relationship with, the Company or any Subsidiary or Affiliate or
                to be
                entitled to any remuneration or benefits not set forth in the Plan
                or such
                agreement or to interfere with or limit in any way the right of the
                Company or any such Subsidiary or Affiliate to terminate such Grantee's
                employment or service. Awards granted under the Plan shall not be
                affected
                by any change in duties or position of a Grantee as long as such
                Grantee
                continues to be employed by, or be in a consultant, advisor, director,
                officer or supplier relationship with, the Company or any Subsidiary
                or
                Affiliate.

            

    

     

     

    
      	
              22.          

            	
              PERIOD
                DURING WHICH AWARDS MAY BE
                GRANTED.

            

    

     

    
      	
               

            	
              Awards
                may be granted pursuant to the Plan from time to time within a period
                of
                ten (10) years from the Effective Date.  From the tenth (10th)
                anniversary
                of the Effective Date no grants of Awards may be made and the Plan
                shall
                continue to be in full force and effect solely with respect to such
                Awards
                that remain outstanding. The Plan shall terminate at such time after
                the
                tenth (10th)
                anniversary
                of the Effective Date that no Awards remain
                outstanding.

            

    

     

     

    
      	
              23.          

            	
              TERM
                OF AWARD

            

    

     

    
      	
               

            	
              Anything
                herein to the contrary notwithstanding, but without derogating from
                

            

    

     

    
       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                 

              	
                the
                  provisions of Sections 6.6, 6.7 or 8.2 hereof, if any Award,
                  or any
                  part thereof, has not been exercised and the Shares covered thereby
                  not
                  paid for within the term of the Award as determined by the Committee,
                  which in any event shall not exceed ten (10) years after the date
                  on which
                  the Award was granted, as set forth in the Award Agreement in the
                  Grantee’s Award, such Award, or such part thereof, and the right to
                  acquire such Shares shall terminate, and all interests and rights
                  of the
                  Grantee in and to the same shall expire.  In the case of Shares
                  held by a Trustee, the Grantee shall elect whether to release such
                  Shares
                  from trust or sell the Shares and upon such release or sale such
                  trust
                  shall expire.

              

      

       

    

     

     

    
      	
              24.          

            	
              AMENDMENT
                AND TERMINATION OF THE
                PLAN.

            

    

     

    
      	
               

            	
              The
                Board at any time and from time to time may suspend, terminate, modify
                or
                amend the Plan, whether retroactively or prospectively; provided,
                however, that, unless otherwise determined by the Board, an amendment
                which requires shareholder approval in order for the Plan to continue
                to
                comply with any Applicable Law shall not be effective unless and
                until
                approved by the requisite vote of shareholders, and provided further
                that
                except as provided herein, no suspension, termination, modification
                or
                amendment of the Plan may adversely affect any Award previously granted,
                unless the written consent of the respective Grantee is
                obtained.

            

    

     

     

    
      	
              25.          

            	
              APPROVAL.

            

    

     

    
      	
              25.1.  

            	
              The
                Plan shall be effective as of its adoption by the Board (the
                “Effective Date”), except that solely with respect to
                grants of Incentive Stock Options the Plan shall also be subject
                to
                approval within one year of the Effective Date, by a majority of
                the votes
                cast on the proposal at a meeting or a written consent of
                shareholders.  Failure to obtain approval by the shareholders
                shall not in any way derogate from the valid and binding effect of
                any
                grant of an Award, which is not an Incentive Stock Option. Upon approval
                of the Plan by the shareholders of the Company as set forth above,
                all
                Incentive Stock Options granted under the Plan on or after the Effective
                Date shall be fully effective as if the shareholders of the Company
                had
                approved the Plan on the Effective Date.  Notwithstanding the
                foregoing, in the event that approval of the Plan by the shareholders
                of
                the Company is required under Applicable Law, in connection with
                the
                application of certain tax treatment or pursuant to applicable stock
                exchange rules or regulations or otherwise, such approval shall be
                obtained within the time required under the Applicable
                Law.

            

    

     

    
      	
              25.2.  

            	
              The
                102 Awards are subject to the approval, if required, of the ITA and
                receipt by the Company of all approvals
                thereof.

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              26.          

            	
              RULES
                PARTICULAR TO SPECIFIC
                COUNTRIES

            

    

     

    Notwithstanding
      anything herein to the contrary, the terms and conditions of the Plan may be
      amended with respect to a particular country by means of an appendix to the
      Plan, and to the extent that the terms and conditions set forth in any appendix
      conflict with any provisions of the Plan, the provisions of the appendix shall
      govern.  Terms and conditions set forth in the Appendix shall apply
      only to Awards granted to a Grantee under the jurisdiction of the specific
      country that is the subject of the appendix and shall not apply to Awards issued
      to a Grantee not under the jurisdiction of such country.  The adoption
      of any such appendix shall be subject to the approval of the Board or Committee,
      and if required in connection with the application of Applicable Law, pursuant
      to applicable stock exchange rules or regulations or otherwise, then also the
      approval of the shareholders of the Company at the required
      majority.

     

     

    
      	
              27.          

            	
              GOVERNING
                LAW; JURISDICTION.

            

    

     

    
      	
               

            	
              The
                Plan and all determinations made and actions taken pursuant hereto
                shall
                be governed by the laws of the State of Israel, except with respect
                to
                matters that are subject to tax laws, regulations and rules in any
                specific jurisdiction, which shall be governed by the respective
                laws,
                regulations and rules of such jurisdiction.  Certain
                definitions, which refer to laws other than the laws of such jurisdiction,
                shall be construed in accordance with such other laws.  The
                competent courts located in Tel-Aviv-Jaffa, Israel shall have exclusive
                jurisdiction over any dispute arising out of or in connection with
                this
                Plan and any Award granted hereunder, and by signing any agreement
                relating to an Award hereunder each Grantee irrevocably submits to
                such
                exclusive jurisdiction.

            

    

     

     

    
      	
              28.          

            	
              NON-EXCLUSIVITY
                OF THE PLAN.

            

    

     

    
      	
               

            	
              Neither
                the adoption of the Plan by the Board nor the submission of the Plan
                to
                shareholders of the Company for approval (to the extent required
                under
                Applicable Law), shall be construed as creating any limitations on
                the
                power or authority of the Board to adopt such other or additional
                incentive or other compensation arrangements of whatever nature as
                the
                Board may deem necessary or desirable or preclude or limit the
                continuation of any other plan, practice or arrangement for the payment
                of
                compensation or fringe benefits to employees generally, or to any
                class or
                group of employees, which the Company or any Subsidiary now has lawfully
                put into effect, including, without limitation, any retirement, pension,
                savings and stock purchase plan, insurance, death and disability
                benefits
                and executive short-term or long-term incentive
                plans.

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              29.          

            	
              MISCELLANEOUS.

            

    

     

    
      	
              29.1.  

            	
              Additional
                Terms. Each Award awarded under the Plan may contain such other terms
                and conditions not inconsistent with the Plan as may be determined
                by the
                Committee, in its sole discretion.

            

    

     

    
      	
              29.2.  

            	
              Severability.
                If any provision of the Plan or any Award Agreement shall be determined
                to
                be illegal or unenforceable by any court of law in any jurisdiction,
                the
                remaining provisions hereof and thereof shall be severable and enforceable
                in accordance with their terms, and all provisions shall remain
                enforceable in any other jurisdiction. In addition, if any particular
                provision contained in this Agreement shall for any reason be held
                to be
                excessively broad as to duration, geographic scope, activity or subject,
                it shall be construed by limiting and reducing such provision as
                to such
                characteristic so that the provision is enforceable to fullest extent
                compatible with the applicable law as it shall then
                appear.

            

    

     

    
      	
              29.3.  

            	
              Compliance
                with Section 409A of the Code. To the extent applicable, it is
                intended that this Plan and any grants made hereunder are exempt
                from
                Section 409A of the Code or are structured in a manner that would not
                cause a Grantee to be subject to taxes and interest pursuant to
                Section 409A of the Code. This Plan and any grants made hereunder
                shall be administrated in a manner consistent with this intent, and
                any
                provision that would cause this Plan or any grant made hereunder
                to become
                subject to taxation under Section 409A of the Code shall have no
                force and effect until amended to comply with Section 409A of the
                Code (which amendment may be retroactive to the extent permitted
                by
                Section 409A of the Code and may be made by the Committee without the
                consent of Grantees).

            

    

     

    
      	
              29.4.  

            	
              Captions
                and Titles. The use of captions and titles in this Plan or any Option
                Agreement, Restricted Share Agreement or other Award related agreement
                is
                for the convenience of reference only and shall not affect the meaning
                of
                any provision of the Plan or such
                agreement.

            

    

     

     

     

     

    *           *           *WWW.EXFILE.COM, INC. -- CELL KINETICS LTD. -- EXHIBIT 10.5 TO FORM F-1/A

    EXHIBIT
      10.5

     

    SUPPLEMENTARY
      FUNDING AGREEMENT

     

    This
      Supplementary Funding Agreement
      (the “Agreement”)
      is made as of
      this 26 day of July,  2007, by and between SCORPION SURGICAL
      TECHNOLOGIES
      LTD., an Israeli
      company (company number 51-396950-1) with a business address at D.N. Misgav,
      20179, Israel (the
“Company”),
      and Cell Kinetics
      Ltd., a private
      Israeli company (51-323862-6) from Lod, Israel (the “Investor”).

     

    
      	
              WHEREAS,

            	
              The
                Company is a seed-stage company engaged in research and development
                in the
                field of curved spinal fixation implants (the “Field”),
                and is currently operating within the framework of The Incubator
                For
                Managing Technology Entrepreneurship Misgav Ltd. (the
                “Incubator”); and

            

    

     

    
      	
              WHEREAS,

            	
              The
                Company has received funding from the Office of the Chief Scientist
                in the
                Ministry of Industry, Trade and Labor (“OCS”) to carry
                out a research and development program within the Incubator (the
                “Program”) in accordance with the approved project budget
                attached hereto as Schedule A (the
                “Approved Budget”);
                and

            

    

     

    
      	
              WHEREAS,

            	
              As
                a pre-condition to OCS funding of the Program, the Company must obtain
                additional financing from a supplementary investor covering at least
                15%
                of the Approved Budget (the “Supplementary Funding”);
                and

            

    

     

    
      	
              WHEREAS,

            	
              The
                Investor is willing to provide the Investment Amount to the Company
                on the
                terms and conditions set forth in this Agreement in exchange for
                an
                issuance of shares of the Company as set forth
                below.

            

    

     

    

    NOW,
      THEREFORE, in consideration of their mutual covenants herein contained, the
      parties hereby agree as follows:

     

    
      	
              1.  

            	
              THE
                SUPPLEMENTARY FUNDING
                TRANSACTION

            

    

     

    
      	
              1.1.  

            	
              General.  The
                Investor will invest the aggregate amount of $150,000 (the
                “Investment Amount”) in the Company, subject to certain
                milestones as more fully described below, in consideration for the
                issuance to the Investor of such number of ordinary shares of the
                Company,
                par value NIS 0.1 each (“Ordinary Shares”) as specified
                in Schedule
                C.

            

    

     

    
      	
              1.2.  

            	
              The
                Investment Payment.  The Investment Amount shall be
                paid by the Investor to the Company in 3 (three) equal installments
                (the
                “Milestone Payments”) subject to the fulfillment of
                certain milestones, all as described in Schedule
                C.

            

    

     

    Each
      Milestone Payment shall be made by wire transfer or check deposit  to
      the Company’s bank account, the particulars of which are as follows: Bank Leumi,
      Karmiel Barnch (961) Acct. #191600/48, or by such other form of payment as
      is
      mutually agreed by the Company and the Investor.

     

    
      	
              1.3.  

            	
              Issuance
                of Shares. Upon each Milestone Payment
                and as a condition thereto, the Company shall issue
                and allot to the Investor

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
         

        
          	
                	
                  such
                    number of Ordinary Shares set forth in Schedule C,
                    adding up to a total of 20,000 Ordinary Shares (the “Purchased
                    Shares”), which shall comprise 20% of the issued and outstanding
                    share capital of the Company on a fully-diluted basis, following
                    investment, based on the capitalization table as of this date
                    (Schedule
                    B).

                

        

         

      

    

    
      	
              1.4.  

            	
              Conditions
                Precedent – First Payment.  The transfer of the
                first Milestone Payment shall be subject to the following conditions
                precedents of the Investor:

            

    

     

    
      	
              1.4.1.  

            	
              Board
                of Directors Resolutions and Shareholders Resolutions. The
                Company shall deliver to the Investor the Company’s Board resolutions in
                the form attached hereto as Schedule 1.4.1A,
                (i) approving the Company’s execution and performance of
                this Agreement, and the transactions contemplated hereby, including
                issuing and selling the Purchased Shares to the Investor against
                payment
                of the Investment Amount pursuant to the provisions set forth in
                this
                Agreement, (ii) reserving 10,000 Ordinary Shares for
                issuance to employees, consultants and others under an Employees
                Stock
                Option Plan to be adopted by the Company (the “Plan”),
                which shares shall constitute 10.00% of the Company’s share capital on a
                fully diluted basis, immediately following the issuance of all shares
                issuable hereunder (without taking into account any additional issuances
                between the first payment hereunder and the last payment hereunder)
                and
                (iii) approving the New Articles of Association in
                the
                form attached hereto as Schedule
                1.4.5.

            

    

     

    The
      Company shall deliver to the Investor the Company’s Shareholders resolutions in
      the form attached hereto as Schedule 1.4.1B,
      approving (a) the Company’s execution and performance of this
      Agreement, and the transactions contemplated hereby, including issuing and
      selling the Purchased Shares to the Investor against payment of the Investment
      Amount pursuant to the provisions set forth in this Agreement, and (b) approving
      the New Articles of Association in the form attached hereto as
Schedule 1.4.5.

     

    
      	
              1.4.2.  

            	
              Waivers/Termination
                and Release of any Participation Rights. The Company shall
                deliver to the Investor a letter in the form attached hereto as
                Schedule 1.4.2,
                signed by each
                shareholder of the Company holding preemptive rights or any similar
                rights, by

            

    

     

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

      
         

        
          	
                	
                  virtue
                    of which such shareholder may be entitled to purchase or receive
                    securities of the Company upon the consummation of the transactions
                    contemplated herein, including the rights granted to TIF according
                    to
                    section 6.2 of the Founders Agreement  (collectively,
                    “Participation Rights”), pursuant to which he, she or it
                    has waived such Participation Rights with respect to all of the
                    transactions contemplated by this Agreement, including the Right
                    of First
                    Refusal granted to the Investor according to Section 2.3 below.

                

        

         

      

    

    
      	
              1.4.3.  

            	
              Expandis’
                Waiver. The Company shall deliver to the
                Investor a certificate in the form attached hereto as Schedule
                1.4.3,
                signed by Expandis Ltd. (“Expandis”), pursuant to which
                Expandis waives any rights and/or claim which they may have in connection
                with any proprietary rights  related to the Field and/or
                necessary to enable the Company to carry on its
                business

            

    

     

    
      	
              1.4.4.  

            	
              Addendum
                to  Founders’
                Agreement.   The Company
                shall deliver to the Investor an addendum to the Founders Agreement
                in the
                form attached hereto as Schedule 1.4.4.

            

    

     

    
      	
              1.4.5.  

            	
              Adoption
                of New Articles of Association.  The Company
                shall adopt new Articles of Association in the form attached hereto
                as
                Schedule 1.4.5,
                which will
                reflect the provisions of the Founders Agreement and this
                Agreement.

            

    

     

    
      	
              1.4.6.  

            	
              Share
                Certificates and Registration.  Simultaneously upon
                the payment of first Milestone Payment, the Company shall deliver
                to the
                Investor a duly executed and valid share certificate in the name
                of the
                Investor representing the Ordinary Shares being issued to the Investor
                with respect to the first Milestone, in the form attached hereto
                as
                Schedule 1.4.6.  The
                Company shall register the allotment of all such Ordinary Shares
                issued to
                the Investors upon payment of the first  Milestone Payment in
                the Company’s Shareholders Register and shall deliver a copy of the
                Shareholders Register to the
                Investor.

            

    

     

    
      	
              1.4.7.  

            	
              Compliance
                Certificate. The Company shall deliver to the Investor a
                certificate (substantially in the form attached hereto as
                Schedule 1.4.7)
                duly executed on behalf of the Company by a director of the Company,
                and
                dated as of the first Milestone Payment
                date.

            

    

     

     

     

    
      
        
        

      

      
        -
          3
          -

        
          

        

      

      
        
        

      

    

    
      	
              1.4.8.  

            	
              Notice
                to the Registrar of Companies. The Company shall deliver to
                the Investor a copy of the notice to be sent to the Israeli Registrar
                of
                Companies of the issuance of the Ordinary Shares issueable upon the
                payment of the first Milestone Payment under this
                Agreement.

            

    

     

    
      	
              1.4.9.  

            	
              IP
                Assignment. Asaf Ben Arye and Yuval
                Shazifi shall sign the IP Assignment Undertaking attached hereto
                as
                Schedule 1.4.9,
                to the extant
                that any such Entrepreneur contributed to the Intellectual Property
                of the
                Company.

            

    

     

    
      	
              1.5.  

            	
              Conditions
                Precedent – Second and Third Milestone
                Payments.  The transfer of each of the
                remaining Milestone Payment shall be subject to the following conditions
                precedents of the Investor:

            

    

     

    
      	
              1.5.1.  

            	
              Share
                Certificates and Registration. Simultaneously upon the
                payment of the relevant Milestone Payment, the Company shall deliver
                to
                the Investor a duly executed and valid share certificate in the name
                of
                the Investor representing the Ordinary Shares being issued to the
                Investor
                upon each Milestone Payment, in the form attached hereto as
                Schedule 1.4.6.  The
                Company shall register the allotment of all of the Ordinary Shares
                issued
                to the Investors upon each Milestone Payment in the Company’s Shareholders
                Register and shall deliver a copy of the Shareholders Register to
                the
                Investor.

            

    

     

    
      	
              1.5.2.  

            	
              Compliance
                Certificate. The Company shall deliver to the Investor a
                certificate (substantially in the form attached hereto as
                Schedule 1.4.7)
                duly executed on behalf of the Company by a director of the Company,
                and
                dated as of the relevant Milestone Payment
                date.

            

    

     

    
      	
              1.5.3.  

            	
              Notice
                to the Registrar of Companies. The Company shall deliver to
                the Investor a copy of the notice to be sent to the Israeli Registrar
                of
                Companies of the issuance of the Ordinary Shares issueable upon the
                payment of each additional Milestone Payment under this
                Agreement.

            

    

     

     

     

    
      
        
        

      

      
        -
          4
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              1.5.4.  

            	
              MAC
                Certificate.  A certificate executed by a director
                of the Company dated as of the date of the relevant Milestone Payment,
                certifying that since the date of the Agreement, there has been no
                material adverse change in the business, assets, liabilities, operation
                or
                condition (financial or otherwise) of the Company, other than changes
                in
                the ordinary course of business, which when taken together have a
                material
                adverse effect on the Company’s financial position or results of
                operations.

            

    

     

    
      	
              1.5.5.  

            	
               Legal
                Opinion. Legal opinion to Investor’s reasonable satisfactory
                that there are no patent or other claims that would or may reasonably
                be
                expected to interfere or adversely affect the business of the Company
                as
                concluded or supposed to be concluded as of the date of the
                opinion.

            

    

     

     

    
      	
              2.  

            	
              RIGHTS
                AND OBLIGATIONS OF THE
                INVESTOR

            

    

     

    
      	
              2.1.  

            	
              In
                the event of an inconsistency between the terms of this Agreement
                and the
                Founders Agreement, the terms of this Agreement shall prevail.
                Board of
                Directors.

            

    

     

    
      	
              2.1.1.  

            	
              Composition.  The
                Board of Directors of the Company shall consist of up to six (6)
                directors
                to be appointed as follows:

            

    

     

    
      	
              (a)  

            	
              One
                (1) director shall be appointed by the
                Incubator;

            

    

     

    
      	
              (b)  

            	
              One
                (1) director be appointed by TIF;

            

    

     

    
      	
              (c)  

            	
              Two
                directors shall be appointed by the Entrepreneurs;
                and

            

    

     

    
      	
              (d)  

            	
              The
                Investor will have the right to appoint one (1) director to the Company’s
                Board of Directors until the later of: (a) its shareholding percentage
                in
                the Company falls below 10% or (b) the Company ceases to work within
                the framework of the Incubator.

            

    

     

    
      	
              (e)  

            	
              One
                external director appointed by agreement of the remaining
                directors.

            

    

     

    
      	
              2.1.2.  

            	
              Quorum.  The
                presence of a majority of directors, including at least one director
                appointed by the Incubator or TIF, one director appointed by the
                Entrepreneurs and the director appointed by the Investor, shall constitute
                a quorum for meeting of the Board.

            

    

     

     

     

    
      
        
        

      

      
        -
          5
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              2.2.  

            	
              Negative
                Covenants.  Following the second transfer of a
                Milestone Payment by the Investor to the Company, and until any of
                the
                following occur (i) the Company ceases to work within the framework
                of the
                Incubator, (ii) March 31,2009 or (iii) the Investor’s share of the
                Company, on a fully-diluted basis, falls below 10%;  any Board
                decision regarding one of the following issues, shall require the
                consent
                of the director appointed by the Investor. The New Articles of Association
                shall be amended in accordance with this
                section.

            

    

     

    
      	
              2.2.1.  

            	
              Any
                issuance of shares, options to purchase shares or any other securities
                of
                the Company at a price per share lower than the price per share payable
                by
                the Investor hereunder;

            

    

     

    
      	
              2.2.2.  

            	
              Any
                adoption, amendment or modification of the
                ESOP;

            

    

     

    
      	
              2.2.3.  

            	
              The
                approval of any material transaction of the Company or any transaction
                out
                of the ordinary course of business;

            

    

     

    
      	
              2.2.4.  

            	
              Any
                transaction with an interested party, as defined in the Securities
                Law of
                1968;

            

    

     

    
      	
              2.2.5.  

            	
              Approval
                of the annual budget of the Company and/or effects any deviation
                therefrom;

            

    

     

    
      	
              2.2.6.  

            	
              Incurrence,
                assumption, or creation of any indebtedness for borrowed money in
                excess
                of NIS 50,000 per annum, or guaranteed any indebtedness for borrowed
                money
                of any other person, or capital contribution to or investment in
                any
                person. 

            

    

     

    
      	
              2.3.  

            	
              Right
                of First Refusal with respect to the next round. In the event
                that, during the 24 month period commencing on the Effective Date,
                the
                Company shall decide to raise additional funds through issuance of
                any
                type of securities of the Company, then, it shall give the
                Investor a written notice of its intention to do so (the “Rights
                Notice”), describing the securities, the price and the general
                terms upon which the Company proposes to issue them.  The
                Investor shall have ten (10) business days from delivery of the Rights
                Notice to agree to purchase up to 75% of such securities, for the
                price
                and upon the terms specified in the Rights Notice, except that,
                the price-per-share payable by the Investor shall be calculated according
                to a pre-money valuation which is the lower of: (i) the pre-money
                valuation set forth in a bona fide offer made to the Company by a
                third
                party, as shall be set forth in a certificate signed by the Company’s
                Board of Directors, or (ii) US$3,500,000 (three million five hundred
                United States dollars).

            

    

     

     

     

    
      
        
        

      

      
        -
          6
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              2.4.  

            	
              Information
                Rights.  The Company shall deliver to the Investor,
                

            

    

     

    
      	
              2.4.1.  

            	
              as
                soon as practicable, but in any event within sixty (60) days after
                the end
                of each fiscal year of the Company, a consolidated balance sheet
                of the
                Company as of the end of such year, and statements of income and
                statements of cash flow of the Company for such year, and statements
                of
                shareholders equity, setting forth in each case in comparative form
                the
                figures for the previous fiscal year, all in reasonable detail, United
                States dollar-denominated, prepared in accordance with Israeli generally
                accepted accounting principles (“GAAP”), audited by a
                firm of Independent Certified Public Accountants in the State of
                Israel
                who are members of the Israeli Institute of Certified Public Accountants,
                and accompanied by an opinion of such firm which opinion shall state
                that
                such balance sheet, statements of income and cash flow and statements
                of
                shareholders equity have been prepared in accordance with GAAP applied
                on
                a basis consistent with that of the preceding fiscal year, and present
                fairly and accurately the financial position of the Company as of
                their
                date, and that the audit by such accountants in connection with such
                financial statements has been made in accordance with generally accepted
                auditing standards; In addition, the Company will provide the Investor
                with all information and certifications required in light of Investor’s or
                the Investors’ affiliates’ status as a publicly traded company and in the
                timeframes required as a result of such
                status.

            

    

     

    
      	
              2.4.2.  

            	
              As
                long as the Investor’s share of the Company, on a fully-diluted basis,
                does not fall below 10%, the Company shall deliver to the Investor,
                as
                soon as practicable, but in any event within thirty (30) days after
                the
                end of each quarter of each fiscal year of the Company, an unaudited
                consolidated balance sheet of the Company as at the end of each such
                period and unaudited consolidated statements of (i) income and (ii)
                cash
                flow of the Company for such period and, in the case of the first,
                second
                and third quarterly periods, for the period from the beginning of
                the
                current fiscal year to the end of such quarterly period, setting
                forth in
                each case in comparative form the figures for the corresponding period
                of
                the previous fiscal year, all in reasonable detail, United States
                dollar-denominated. In addition, the Company will provide the Investor
                with all information and certifications required in light of Investor’s or
                the Investors’ affiliates’ status as a publicly traded company and in the
                timeframes required as a result of such
                status.

            

    

     

     

     

     

    
      
        
        

      

      
        -
          7
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              2.4.3.  

            	
              Additional
                Information.  As long as the Investor’s share of
                the Company, on a fully-diluted basis, does not fall below 10%, the
                Company shall deliver to the Investor, the Company will permit the
                authorized representative of the Investor full and free access, at
                all
                reasonable times, and upon reasonable notice, to any of the properties
                of
                the Company, including its books and records, and to discuss its
                affairs,
                finances and accounts with the Company’s officers and auditor, for any
                purpose whatsoever.  In addition, the Company will deliver to
                the Investor with reasonable promptness, such other information and
                data
                with respect to the Company, as the Investor may from time to time
                reasonably request. In addition, the Company will provide the Investor
                with all information and certifications required in light of Investor’s or
                the Investors’ affiliates’ status as a publicly traded company and in the
                timeframes required as a result of such
                status.

            

    

     

    This
      Section 2.4 shall not be in limitation of any
      rights, which the Investor or the director designated by the Investor, may
      have
      under applicable law.

     

    In
      addition, and not as a limitation on any of the foregoing, the Company covenants
      that it will provide full disclosure and information regarding all of the
      Company’s material affairs at meetings of the Company’s Board of Directors and,
      to the extent required under applicable law, at annual general meetings of
      the
      shareholders, and extraordinary general meetings of the
      shareholders.

     

     

    
      	
              3.  

            	
              REPRESENTATIONS
                AND
                WARRANTIES OF THE
                INVESTOR

            

    

     

    
      	
               

            	
              Investor
                hereby represents and warrants to the Company as
                follows:

            

    

     

    
      	
              3.1.  

            	
              Authority.
                The Investor has the full power and authority to execute, deliver
                and
                perform this Agreement and the Schedules hereto, the obligations
                of the
                Investor hereunder have been duly authorized by all necessary corporate
                action, and this Agreement and all Schedules hereto, when executed
                by the
                Investor, will constitute valid and legally binding obligations of
                such
                Investor.

            

    

     

     

    
      
        
        

      

      
        -
          8
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              3.2.  

            	
              Purchase
                Entirely for Own Account. This Agreement is made with the
                Investor in reliance upon such Investor’s representation to the Company,
                which by Investor’s execution of this Agreement such Investor hereby
                confirms, that the Purchased Shares will be acquired for investment
                for
                Investor’s own account, not as a nominee or agent, and not with a view to
                the resale or distribution of any part thereof, and that the Investor
                has
                no present intention of selling, granting any participation in, or
                otherwise distributing the same.

            

    

     

    
      	
              3.3.  

            	
              Investment
                Experience. The Investor is knowledgeable and experienced in
                business and financial matters, and therefore it is capable of evaluating
                the merits and risks of an investment in the Company and has the
                capacity
                to protect its own interests in connection with the transactions
                contemplated by this Agreement. The Investor acknowledges that the
                issuance of Purchased Shares hereunder does not constitute a promise
                or
                guaranty by the Company, its shareholders, officers or directors
                as to the
                financial, technological or commercial success of the Company or
                the
                future value of its shares.

            

    

     

    
      	
              3.4.  

            	
              Consideration
                of Risks. The Investor confirms that it has fully considered
                the risks of the contemplated investment in the Company and understands
                that (i) this investment is suitable only for an investor who is able
                to bear the economic consequences of losing its investment, (ii)
                the
                purchase of the Purchased Shares is a speculative investment which
                involves a high degree of risk, and (iii) there are substantial
                restrictions on the transferability of, and there will be no immediate
                public market for the Purchased Shares, and no guarantee that such
                market
                will exist in the future, and accordingly, it may not be possible
                for the
                Investor to liquidate its investment in case of emergency. Moreover,
                the
                Investor acknowledges that due to the inherent risk involved in such
                investment, the Investor’s investment may be substantially or totally
                lost.  

            

    

     

    
      	
              3.5.  

            	
              Brokers.  No
                agent, broker, investment banker, person or firm acting in a similar
                capacity on behalf of or under the authority of the Investor is or
                will be
                entitled to any broker’s or finder’s fee or any other commission or
                similar fee, directly or indirectly, on account of any action taken
                by the
                Investor in connection with any of the transactions contemplated
                under
                this Agreement.  The Investor agrees to indemnify and hold the
                Company harmless from and against any claim or liability resulting
                from
                any party claiming any such commission or fee, if such claims shall
                be
                contrary to the foregoing
                statement.

            

    

     

     

    
      
        
        

      

      
        -
          9
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              3.6.  

            	
              Disclosure
                of Information.  The Investor represents that it
                has had an opportunity to ask questions and receive answers from
                the
                Company regarding the terms and conditions of the offering of the
                Purchased Shares, and the business, affairs, properties, prospects
                and
                financial condition of the Company.

            

    

    
 

    
      	
              4.  

            	
              Representations
                and Warranties of the Company

            

    

     

    The
      Company hereby represents and warrants to the Investor as follows, and
      acknowledges that the Investor is entering into this Agreement in reliance
      thereon:

     

    
      	
              4.1.  

            	
               Founders
                Agreement. The Company hereby represents and warrants to the
                Investor that the various representations and warranties made by
                it under
                the Founders Agreement shall be incorporated, mutatis mutandis, into
                this
                Agreement, as though such representations and warranties had been
                made
                directly to the Investor pursuant to this
                Agreement.

            

    

     

    
      	
              4.2.  

            	
              Incorporation;
                Authority. The Company is a corporation duly incorporated and
                validly existing under the laws of the State of Israel and has corporate
                power to own or lease its property and to carry on its business as
                now
                conducted and as proposed to be conducted. The Company has obtained
                all
                necessary corporate authorizations and approvals to carry out its
                business
                as now conducted and as currently proposed to be conducted.  The
                Articles of Association of the Company, as currently in effect, are
                attached hereto as Schedule 4.2 (the
                “Corporate
                Documents”).

            

    

     

    
      	
              4.3.  

            	
              Authorization.
                All corporate action on the part of the Company, its officers, directors
                and shareholders necessary for the authorization, execution and delivery
                of this Agreement, the performance of all obligations of the Company
                hereunder and the authorization, issuance, sale and delivery of the
                Purchased Shares has been taken.

            

    

     

    
      	
              4.4.  

            	
              Governmental
                or Third Party Consents. Except as otherwise detailed in
                Schedule 4.4, the Company does not need to give
                any notice to, make any filing with, or obtain any authorization,
                consent,
                qualification, order or approval from any governmental authority
                or
                agency, or any third party, in order to consummate the transactions
                contemplated by this Agreement, including the issuance of the Purchased
                Share.   

            

    

     

    
      	
              4.5.  

            	
              Shares;
                Capitalization. The authorized capital of the Company
                immediately prior to the Closing is NIS 100,000 divided to 1,000,000
                shares nominal value NIS 0.1 per share, of which 64,728 Ordinary
                Shares
                are issued and outstanding, 5,272 are reserved for warrants to be
                granted,
                and 10,000 are reserved for issuance to employees under the Plan,
                of which
                2,000 options have been promised to the Company’s project manager, Mr.
                Arnon Epstein and 2,000 options have been promised to the Company’s
                external director Mr. Chris McAuliffe.  The outstanding shares
                and options of the Company are owned by the shareholders named in
                and in
                the numbers specified in the capitalization table attached hereto
                as   

            

    

     

     

    
      
        
        

      

      
        -
          10
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                Schedule
                  4.5. The Purchased Shares when issued and allotted in accordance
                  with this
                  Agreement will be duly authorized, validly issued, fully paid and
                  non-assessable. Except as described in Schedule
                  4.5, (a) the Company has not issued options, warrants,
                  purchase rights, subscription rights, Participation Rights, rights
                  of
                  first refusal, conversion rights, anti-dilution rights, exchange
                  rights,
                  or other rights or securities, of any nature whatsoever, or other
                  contracts, agreements, undertakings, promises or commitments that
                  could
                  require the Company or, to the Company’s knowledge, a shareholder of the
                  Company, to issue, sell, or otherwise cause to become outstanding
                  any of
                  its share capital; and (b) no rights to purchase shares of the
                  Company were granted by the Company, the Founders, and to the Company’s
                  best knowledge, by other shareholders of the Company and to the
                  Company’s
                  knowledge, there are no claims possessed by any person (other than
                  as
                  specifically set forth in this Section) enforceable against the
                  Company
                  or, to the Company’s best knowledge, against a shareholder of the Company
                  in law or in equity to compel such an issuance, adjustment or transfer
                  of
                  the Company’s shares (or any options, warrants, preemptive rights or other
                  rights or securities, of any nature whatsoever, convertible into
                  or
                  exchangeable for shares of the Company) by reason of the execution,
                  closing or performance of this Agreement or by any other
                  reason.  

              

      

       

    

    
      	
              4.6.  

            	
              Subsidiaries.
                The Company does not own or control, directly or indirectly, any
                interest
                in any other corporation, association, or other business
                entity.  

            

    

     

    
      	
              4.7.  

            	
              No
                prior resolutions. No meeting of the Company’s shareholders
                and no meeting of the Company’s board of directors has taken place since
                the Company’s incorporations, and no resolutions of the Company’s
                shareholders and no resolutions of the Company’s board of directors have
                been adopted since the Company’s incorporation

            

    

     

    
      	
              4.8.  

            	
              Material
                agreements. Except as otherwise detailed in
                Schedule 4.7,
                since it’s
                incorporation, the Company has not entered into any
                agreement.

            

    

     

    
      	
              4.9.  

            	
              Intellectual
                Property.

            

    

     

    
      	
              4.9.1.  

            	
              General.  Except
                as otherwise detailed in Schedule 4.9.1
                the Company owns
                or has the right to use pursuant to written license, sublicense,
                agreement, or permission, free and clear of any security interest
                and
                royalties (except as set forth in Schedule 4.9.1)
                all patents,
                trademarks, service marks, trade names, mask works, and copyrights
                and all
                trade secrets, including know-how, invention, designs, methods, drawing,
                computer programs, algorithms, firmware and technical data, as set
                forth
                in Schedule 4.7.1 currently

            

    

     

     

    
      
        
        

      

      
        -
          11
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                  used
                    and/or necessary for the operation of the businesses of the Company
                    as
                    presently conducted and as currently proposed to be conducted
                    (collectively: “Intellectual Property”).  The
                    Company’s registered or registrable Intellectual Property rights,
                    including all patents, trademarks, service marks, trade names,
                    and all
                    applications therefore and all registered copyrights, are listed
                    on
                    Schedule 4.9.1.  With
                    respect to each item of Intellectual Property required to be
                    identified as
                    set forth in this Section 4.9.1
                    (i) the Company possess all right, title, and interest in and to
                    the
                    item, free and clear of any security interest, license, royalty,
                    commission or similar arrangements or other restriction; (ii) the
                    item is not subject to any outstanding injunction, judgment,
                    order,
                    decree, ruling, or charge; (iii) no action, suit, proceeding,
                    hearing, investigation, charge, complaint, claim, or demand is
                    pending or,
                    to the Company’s best knowledge, is threatened, which challenges in a
                    material manner the legality, validity, enforceability, use,
                    or ownership
                    of the item; (iv) the Company has never agreed to indemnify any
                    person for or against any interference, infringement, misappropriation,
                    or
                    other conflict with respect to the item (other than indemnification
                    obligations arising from purchase, sale or license agreements
                    entered into
                    by the Company as set forth in Schedule 4.9.1);
                    and
                    (v) except as set forth in Schedule 4.9.1,
                    the Company has
                    not granted, and there are not outstanding, any options, licenses
                    or
                    agreements of any kind relating to the Intellectual Property,
                    nor is the
                    Company bound by or a party to any option, license or agreement
                    of any
                    kind with respect to any of the Intellectual Property.  The
                    Company is the owner, free and clear of any and all Security
                    Interests, of
                    all the domain names used by or on behalf of the Company, which
                    pertain to
                    its business.

                

        

         

      

    

    
      	
              4.9.2.  

            	
              No
                Need for Other IP.   Each item of Intellectual
                Property owned or used by the Company immediately prior to the Effective
                Date will be owned or available for use by the Company on substantially
                the same terms and conditions immediately subsequent to
                the

            

    

     

    
       

      
        
          
          

        

        
          -
            12
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                Effective
                  Date and each Milestone Payment.  Except for readily and
                  commercially available off-the-shelf software and hardware, to
                  the best of
                  the Company’s knowledge, no other Intellectual Property of any kind is
                  required by the Company to conduct its business, as currently conducted
                  and as currently proposed to be conducted, is owned by a third
                  party or
                  would require the payment of any fee or
                  royalty.

              

      

       

    

    
      	
              4.9.3.  

            	
              No
                Infringement. Except as set forth in Schedule
                4.9.3 (i) To the Company’s best knowledge, the Company
                has not interfered with, infringed upon, misappropriated, or otherwise
                come into conflict with any intellectual property rights of any third
                party, nor, to the Company’s best knowledge, will the conducting by it of
                its business, or use of the Intellectual Property, as presently conducted
                and as currently proposed to be conducted interfere, infringe upon,
                misappropriate or otherwise come into conflict with any intellectual
                property rights of any third party; (ii) the Company has never
                received any charge, complaint, claim, demand, or notice alleging
                any such
                interference, infringement, misappropriation, or violation (including
                any
                claim that the Company must license or refrain from using any intellectual
                property rights of any third party) and to the Company’s best knowledge
                there is no basis for such; and  (iii) to the
                Company’s  knowledge, no third party has interfered with,
                infringed upon, misappropriated, or otherwise come into conflict
                with any
                Intellectual Property of the
                Company.

            

    

     

    
      	
              4.9.4.  

            	
              Assignment
                of Entrepreneurs IP. All Intellectual Property developed by
                the Entrepreneurs prior to the incorporation of the Company which
                relates
                to the Company’s business as currently conducted and as currently proposed
                to be conducted (“Founder IP”) was duly assigned by the
                Entrepreneurs at the time of, or following, the incorporation of
                the
                Company, free and clear of any Security Interest, and neither the
                Entrepreneurs, nor any other person, has any interest in or rights
                to any
                of the Founders IP. The Company undertakes to make its best effort
                to
                protect the

            

    

     

     

    
      
        
        

      

      
        -
          13
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                Founder
                  IP, register it, obtain the consent and signatures of the Entrepreneurs,
                  and to take any further actions which may be required or appropriate
                  in
                  order to assign and protect the Founder IP.   The
                  Entrepreneurs are the sole inventors and developers of the Founder
                  IP
                  (including the inventions, methods and devices described and claimed
                  in
                  the patents which are part of such Founder IP) without any contribution,
                  assistance or participation of any third party. Schedule
                  4.9.4 contains
                  correct and complete copies of all assignment documents of Founder
                  IP to
                  the Company.

              

      

       

    

    
      	
              4.10.  

            	
              Litigation. There
                is no litigation, proceeding or governmental investigation in progress,
                pending, threatened or con­templated against or relating to the
                Company.

            

    

     

    
      	
              4.11.  

            	
              No
                Default.  The Company is not in default or breach
                of any material contracts, agreements, written or oral, indentures
                or
                other instruments to which it is a party, and there exists no state
                of
                facts after which notice or lapse of time or both would constitute
                such a
                default or breach and all such contracts, agreements, indentures
                or other
                instruments are now in good standing and the Company is entitled
                to all
                benefits thereunder.

            

    

     

    
      	
              4.12.  

            	
              No
                Impediment. Neither the execution nor delivery of the
                Agreement, nor the carrying on of the Company’s business as now conducted,
                conflict with or result in a breach of the terms, conditions or provisions
                of, or constitute a default under, any contract, covenant or instrument
                under which the Company is now
                obligated.

            

    

     

    
      	
              4.13.  

            	
              Use
                of Proceeds. The Company undertakes to use the proceeds from
                the Supplementary Funding contemplated hereunder to finance its research
                and development activities, day to day operation and growth of its
                business.

            

    

     

    
      	
              4.14.  

            	
              Restrictions
                by Law. The Company was incorporated under the Incubator
                Program and therefore the Company is subject to certain rules and
                conditions provided under the Program. In addition, due to the receipt
                of
                financing from the OCS by the Company, the Company is subject to
                the
                provisions of the Law for Encouragement of Research and Development
                in the
                Industry, 1984-5744, and the regulations promulgated
                therefore.

            

    

     

    
      	
              4.15.  

            	
              Brokers.  No
                agent, broker, investment banker, person or firm acting in a similar
                capacity on behalf of or under the authority of the Company is or
                will be
                entitled to any broker’s or finder’s fee or any other commission or
                similar fee, directly or indirectly, on account of any action taken
                by the
                Company in connection with any of the transactions contemplated under
                this
                Agreement.  The Company agrees to indemnify and hold the
                Investor harmless from and against any claim or liability resulting
                from
                any party claiming any such commission or fee, if such claims shall
                be
                contrary to the foregoing
                statement.

            

    

     

    
      
        
        

      

      
        -
          14
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              4.16.  

            	
              Full
                Disclosure. The Company has provided the Investor with all
                information that the Investor has requested in connection with its
                evaluation of the transactions contemplated hereunder. There is no
                material fact or information relating to the Company (including without
                limitation to its business, financial conditions or otherwise), which
                reasonable experienced investors (such as the Investor), had it been
                aware
                of such material fact, would have refrained from investing in the
                Company
                on the terms set forth herein, that has not been disclosed to the
                Investor
                in writing by the Company.  The representations and warranties
                of the Company set forth in this Section 4
                are, to the best of the Company’s knowledge, each accurate, correct and
                complete in all material respects. Neither this Agreement nor any
                instrument made or delivered by the Company in connection herewith
                contains any untrue statement of a material fact or omits to state
                a
                material fact necessary to make the statements herein or therein
                not
                misleading, in view of the circumstances in which they were
                made.

            

    

     

     

    
      	
              5.  

            	
              Further
                Covenants of the
                Parties

            

    

     

    
      	
              5.1.  

            	
              Confidentiality. Each
                of the parties hereto acknowledges that such party and/or its
                representative shall have access, in the course of its duties or
                position
                as a shareholder, director, or employee of the Company, to confidential
                and proprietary information of the Company including, without limitation,
                trade secrets, data, know-how, processes, formulas, methods, designs,
                inventions, ideas, experimental work, and all information concerning
                the
                business affairs of the Company (hereinafter, the “Confidential
                Information”). Each party undertakes to maintain in confidence such
                Confidential Information, and not to disclose such Confidential
                Information to any person or organization whatsoever, or to make
                use of
                such Confidential Information for its own purposes or for the benefit
                of
                any person or organization other than the Company. Each party shall
                further ensure that any of its representatives who have access to
                Confidential Information shall abide by the obligation to maintain
                in
                confidence, and not to disclose or use, such Confidential Information
                in
                accordance with the foregoing.  It is further agreed that
                “Confidential Information” shall not include information which (a) is, or
                becomes public domain without fault on the part of the receiving
                party;
                (b) is lawfully obtained from a source other than the disclosing
                party,
                free of any obligation to keep it confidential; (c) was previously
                known
                to the receiving party without an obligation to keep it confidential
                (d)
                is expressly released in writing from such obligations by the party
                that
                owns or has the rights to such information; or (e) is required to
                be
                disclosed pursuant to law, regulation, judicial or administrative
                order,
                or request by a governmental or other entity authorized by law to
                make
                such request.

            

    

     

     

    
      
        
        

      

      
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          15
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              5.2.  

            	
              Information
                Rights.  Immediately upon Investor’s request, the
                Company shall provide Investor with any information required by it
                with
                respect to the Company including but not limited to financial information
                names of shareholders and any other information as required by competent
                authorities and banking institutes. To the extent required, the Investor
                shall be entitled to disclose such information upon the request of
                such
                competent authorities and banking
                institutes.

            

    

     

     

    
      	
              6.  

            	
              Indemnification

            

    

     

    The
      Company agrees to indemnify, defend and hold the Investor, including any
      affiliate, officer, director, shareholder, employee or agent thereof (each
      an
“Indemnified Party”), harmless against any and all damages,
      costs, liabilities, expenses (including reasonable legal fees and expenses)
      or
      losses suffered by such Indemnified Party, as a result of, or in connection
      with, (i) any breach or misrepresentation contained in this Agreement;
      (ii) the failure by the Company to fulfill any  obligation,
      agreement or covenant  pursuant to this Agreement; or (iii) any
      cost or expense, including reasonable legal fees incurred in connection with
      enforcing the rights of the Indemnified Party hereunder, all for a period of
      twelve (12) months following the date of the execution of this
      Agreement.  Except with respect to claims based on fraud and/or
      willful misrepresentation, the Company’s liability under this Section 6 shall be limited to the amount actually paid
      by the
      Investor to the Company hereunder.

     

     

    
      	
              7.  

            	
              Miscellaneous

            

    

     

    
      	
              7.1.  

            	
              Further
                Assurances. Each of the parties hereto shall perform such
                further acts and execute such further documents as may reasonably
                be
                necessary to carry out and give further effect to the provisions
                of this
                Agreement and the intentions of the parties as reflected
                thereby.

            

    

     

    
      	
              7.2.  

            	
              Governing
                Law. This Agreement shall be governed by and be construed
                according to the laws of Israel, without regard to the conflict of
                laws
                provisions thereto. Any dispute arising under or in relation to this
                Agreement shall be resolved in the competent courts of Tel-Aviv
                - Jaffa
                District, and each of the parties hereby, submits irrevocably to
                the jurisdiction of such courts.

            

    

     

    
      	
              7.3.  

            	
              Further
                Assurances.  Each of the parties hereto
                shall perform such further acts and execute such further documents
                as may
                reasonably be necessary to carry out and give full effect to the
                provisions of this Agreement and the intentions of the parties as
                reflected thereby.

            

    

     

    
      	
              7.4.  

            	
              Successors
                and Assigns; Assignment.  Except as
                otherwise expressly limited herein, the provisions hereof shall inure
                to
                the

            

    

     

    
       

      
        
          
          

        

        
          -
            16
            -

          
            

          

        

        
          
          

        

      

      
        	
              	
                benefit
                  of, and be binding upon, the successors, assigns, heirs, executors,
                  and
                  administrators of the parties hereto.  None of the rights,
                  privileges, or obligations set forth in, arising under, or created
                  by this
                  Agreement may be assigned or transferred without the prior consent
                  in
                  writing of each party to this
                  Agreement.

              

      

       

    

    
      	
              7.5.  

            	
              Entire
                Agreement: Amendment and Waiver. This Agreement and the
                Schedules hereto, together with the provisions of the Founders Agreement
                that are incorporated by reference herein, constitute the full and
                entire
                understanding and agreement between the parties with regard to the
                subject
                matters hereof. Any term of this Agreement may be amended and the
                observance of any term hereof may be waived (either prospectively
                or
                retroactively and either generally or in a particular instance) only
                with
                the written consent of all of the parties to this
                Agreement.

            

    

     

    
      	
              7.6.  

            	
              Notices.
                Any notice given under this Agreement must be in writing to the address
                indicated herein below (or such other address as may be indicated
                from
                time to time by the relevant party by giving notice thereof)
                and shall be effective: (i) if mailed by registered mail return receipt
                requested, five (5) business days after mailing; (ii) if sent by
                messenger, upon delivery; and (iii) if sent via telecopier, one (1)
                business day after transmission and electronic confirmation of receipt,
                when followed by a hard copy sent by first class
                post.

            

    

     

    
      	
              7.7.  

            	
              Delays
                or Omissions. No delay or omission to exercise any right,
                power, or remedy accruing
                to any party upon any breach or default under this Agreement, shall
                be
                deemed a waiver of any other breach or default thereto or thereafter
                occurring. Any waiver permit, consent, or approval of any kind or
                character on the part of any party of any breach or default under
                this
                Agreement, or any waiver on the part of any party of any provisions
                or
                conditions of this Agreement, must be in writing and shall be effective
                only to the extent specifically set forth in such writing. All remedies,
                either under this Agreement or by law or otherwise afforded to any
                of the
                parties, shall be cumulative and not
                alternative.

            

    

     

    
      	
              7.8.  

            	
              Severability.
                If any provision of this Agreement is held by a court of competent
                jurisdiction to be unenforceable under applicable law, then such
                provision
                shall be excluded from this Agreement and the remainder of this Agreement
                shall be interpreted as if such provision were so excluded and shall
                be
                enforceable in accordance with its terms; provided, however, that
                in such
                event this Agreement shall be interpreted so as to give effect to
                the
                greatest extent consistent with and permitted by applicable law,
                to the
                meaning and intention of the excluded provision as determined by
                such
                court of competent jurisdiction.

            

    

     

    
      
        
        

      

      
        -
          17
          -

        
          

        

      

      
        
        

      

    

    
      	
              7.9.  

            	
              Counterparts.  This
                Agreement may be executed in any number of counterparts, each of
                which
                shall be deemed an original and enforceable against the parties actually
                executing such counterpart, and all of which together shall constitute
                one
                and the same instrument.

            

    

     

    
      	
              7.10.  

            	
              Recitals,
                Schedules and Headings. The recitals and schedules to this
                Agreement shall constitute an integral part thereof. Headings are
                provided
                for the sake of convenience only, and shall not be used in the
                interpretation of this Agreement.

            

    

     

    

    

     

     

     

     

    
      -
        Signature page follows -

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
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          18
          -

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of
      the day and year first above-written.

     

    
 

    

    
      	
              SCORPION
                SURGICAL TECHNOLOGIES LTD.

            	 	
              CELL
                KINETICS LTD.

            
	 	 	 	 	 
	
              By:

            	/s/
              Steve Rhodes 	 	
              By:

            	/s/
              Jacob Weiss 
	 	 	 	 	 
	
              Name:

            	Steve
              Rhodes 	 	
              Name:

            	Jacob
              Weiss 
	 	 	 	 	 
	
              Title:

            	Director 	 	
              Title:

            	Chairman 

    

    
      
        	
                 

              	 	
                 

              
	 	 	 	 	 
	
                 

              	 	 	
                By:

              	/s/
                Israel Fisher 
	 	 	 	 	 
	
                 

              	 	 	
                Name:

              	Israel
                Fisher 
	 	 	 	 	 
	
                 

              	 	 	
                Title:

              	CFO 

      

    

    

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
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