Document:

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                                                                   Exhibit 10.41
                                                                   -------------

                           ELECTRIC FUEL CORPORATION

                        COMMON STOCK PURCHASE AGREEMENT

March 15, 2000

To: Koor Industries Limited

Ladies and Gentlemen:

     Electric Fuel Corporation, a Delaware corporation (the "Company"), proposes
to sell (the "Offering") to Koor Industries Ltd. (the "Purchaser") 613,139
shares (the "Shares") of EFC Common Stock at a purchase price per share of
$17.125, for an aggregate investment amount of $10,500,000 (the "Purchase
Price"). In connection with and in consideration for the sale and purchase of
the Shares, the Company and the Purchaser agree to abide by the mutual covenants
contained herein.

     1.   Sale and Purchase of the Shares.  On the basis of the representations,
          -------------------------------
warranties and agreements contained in, and subject to the terms and conditions
of this Share Purchase Agreement (the "Agreement"), the Company agrees to sell
to the Purchaser, and the Purchaser agree to purchase from the Company, the
Shares.  The purchase price per share shall be $17.125.

     In the event that within the 90 days immediately following the Closing
hereunder (the "Investment Adjustment Period"), the Company issues shares of its
Common Stock or securities convertible into its Common Stock at a price per
share below $17.125, other than to its employees and consultants under its Stock
option Plan (the "Investment Adjustment Price"), then it shall issue to the
Purchaser, for no additional consideration, either (a) additional shares of the
Company Common Stock such that the total number of shares of the Company Common
Stock issued in consideration for the Purchase Price multiplied by the
Investment Adjustment Price shall equal the Purchase Price, or, at the
Purchaser's discretion, (b) warrants to purchase two times the number of shares
of the Company Common Stock that the Company would be obligated to issue
pursuant to the preceding clause (a) (the "Investment Adjustment Warrants"). The
Investment Adjustment Warrants shall have an exercise price per share equal to
the Investment Adjustment Price. The Investment Adjustment Warrants will be
exercisable immediately upon issuance and shall expire if unexercised on the
first anniversary of the conclusion of the Investment Adjustment Period.

     2.   Delivery and Payment. On the Closing Date, the Purchaser will pay to
          --------------------
the Company the Purchase Price and the Company shall deliver the Shares to the
Purchaser. Payment of the Purchase Price shall be made by wire transfer in
immediately available funds in U.S. dollars to account number ________ in the
name of __________, at _________,  provided, however, that the Purchaser may, at
                                   --------  -------
their option wire New Israeli Shekels in lieu of U.S. dollars at the Bank
HaPoalim U.S. dollar cash sell rate (i.e. the rate at which the bank sells to
buyers) as of the Closing of the Offering.  The Closing of the Offering shall
take place at the offices of Meitar, Liquornik, Geva & Co.
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                                     - 2 -

concurrently with the Closing of the transactions under the Share and Assets
Purchase Agreement among the Company, the Purchaser, Tadiran Batteries Ltd. and
Tadiran Electric Industries Corporation dated March 15, 2000 (the "Tadiran
Agreement"). The day on which the Closing takes place shall be referred to
herein as the "Closing Date."

     3.   Offering of Shares.  The Shares will be offered and sold to the
          ------------------
Purchaser without being registered under the Securities Act of 1933, as amended
(the "Securities Act"), in reliance on the exemption therefrom provided by
Section 4(2) of the Securities Act.

     4.   Representations and Warranties of the Company.  The Company hereby
          ---------------------------------------------
represents and warrants to the Purchaser as follows:

          (a)  The Company has been duly incorporated and is validly existing as
     a corporation in good standing under the laws of the state of Delaware. The
     Company's wholly-owned Israeli subsidiary, Electric Fuel (E.F.L.) Limited
     ("EFL"), is duly incorporated and is validly existing. Each of the Company
     and EFL is qualified and in good standing as a foreign corporation in each
     jurisdiction in which the character or location of its assets or properties
     (owned, leased or licensed) or the nature of its business makes such
     qualification necessary, except for such jurisdictions where the failure to
     so qualify, individually or in the aggregate, would not have a material
     adverse effect on the assets or properties, business, results of operations
     or financial condition, taken as a whole, of the Company and EFL.

          (b)  All necessary corporate action has been duly and validly taken to
     authorize the execution, delivery and performance of this Agreement by the
     Company. This Agreement has been duly and validly authorized, executed and
     delivered by the Company and constitutes the legal, valid and binding
     obligation of the Company enforceable against the Company in accordance
     with its terms, except as the enforceability thereof may be limited by
     bankruptcy, insolvency, reorganization, moratorium or other similar laws
     affecting the enforcement of creditors' rights generally and by general
     equitable principles.
<PAGE>

          (c)  Neither the execution, delivery and performance of this Agreement
     by the Company nor the consummation of any of the transactions contemplated
     hereby or thereby (including, without limitation, the issuance and sale by
     the Company of the Shares) will give rise to a right to terminate or
     accelerate the due date of any payment due under, or conflict with or
     result in the breach of any term or provision of, or constitute a default
     (or an event which with notice or lapse of time or both would constitute a
     default) under, or require any consent or waiver under, or result in the
     execution or imposition of any material lien, charge or encumbrance upon
     any properties or assets of the Company pursuant to the terms of, any
     material indenture, mortgage, deed of trust or other agreement or
     instrument to which the Company is a party or by which the Company or any
     of its properties or businesses is bound, or any franchise, license,
     permit, judgment, decree, order, statute, rule or regulation applicable to
     the Company, or violate any provision of the charter or by-laws of the
     Company or EFL, except for such consents or waivers that have already been
     obtained and are in full force and effect, or such consents or waivers the
     failure to so obtain would not individually or in the aggregate, have a
     material adverse effect upon the assets or properties, business, results of
     operations or financial condition, taken as a whole, of the Company and
     EFL.

          (d)  The Company's Annual Reports on Form 10-K for the fiscal year
     ended December 31, 1998 and December 31, 1999, the Company's Form 10-Qs for
     the fiscal periods ended March 31, 1999, June 30, 1999 and September 30,
     1999 and all documents filed with the Securities and Exchange Commission
     (the "Commission") pursuant to the Securities Exchange Act of 1934, as
     amended (the "Exchange Act") (such documents are hereinafter referred to as
     the "Exchange Act Documents") were filed in a timely manner and, when they
     were filed (or, if any amendment with respect to any such document was
     filed, when such amendment was filed), conformed in all material respects
     to the requirements of the Exchange Act, and the rules and regulations
     thereunder, and did not contain any untrue statement of a material fact or
     omit to state a material fact required to be stated therein or necessary to
     make the statements therein not misleading. Subsequent to the respective
     dates as of which information was given in the Exchange Act Documents,
     except as described therein, there has not been any material adverse change
     in the Company's operations, and, to the Company's knowledge, no event has
     occurred which with notice or lapse of time or both, that would constitute
     such a material adverse change, in the assets or properties, business,
     results of operations or financial condition of the Company taken as a
     whole.

          (e)  Other than as previously disclosed to the Purchaser, there are no
     claims for brokerage commissions or finder's fees on similar compensation
     in connection with the transactions by this Agreement based on any
     arrangement or agreement made by or on behalf of the Company other than as
     previously disclosed to the Purchaser, and the Company agrees to indemnify
     and hold the Purchaser harmless against any damages incurred as a result of
     any such claims.

     5.   Representations and Warranties of the Purchaser.  The Purchaser
          -----------------------------------------------
represents and warrants to Company that:

          (a)  It has full power and authority to execute, deliver and perform
     this Agreement. This Agreement constitutes a valid and legally binding
     obligation of the Purchaser, enforceable against the Purchaser in
     accordance with its terms, except as the enforceability thereof may be
     limited by bankruptcy, insolvency, reorganization, moratorium or other
     similar laws affecting the enforcement of creditors' rights generally and
     by general equitable principles.
<PAGE>

          (b)  The Shares, to be received by the Purchaser will be acquired for
     investment for the Purchaser's own account, and not with a view to the
     distribution of any part thereof. Other then in context of "Hedging"
     transactions, the Purchaser has no present intention of selling, granting
     any participation in, or otherwise distributing the same. The Purchaser
     does not have any contract, undertaking, agreement or arrangement with any
     person to sell, transfer, or grant participation to such person or to any
     third person, with respect to any of the Shares.

          (c)  The Purchaser understands that the Shares may not be sold,
     transferred, or otherwise disposed of without registration under the
     Securities Act, or an exemption therefrom, and that in the absence of an
     effective registration statement covering the Shares or an available
     exemption from registration under the Securities Act, the Shares must be
     held indefinitely. In the absence of an effective registration statement
     covering the Shares, the Purchaser will sell, transfer, or otherwise
     dispose of the Shares only in a manner consistent with its representations
     and agreements set forth herein.

          (d)  The Purchaser understands that until the Shares are registered
     under the Securities Act, the certificates evidencing the Shares may bear
     substantially the following legends:

               (i)  "THE SECURITIES EVIDENCED HEREBY WERE ORIGINALLY
                    ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION
                    UNDER SECTION 5 OF THE SECURITIES ACT OF 1933 (THE
                    "SECURITIES ACT") AND APPLICABLE STATE LAW, AND
                    MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED
                    IN THE ABSENCE OF SUCH REGISTRATION OR AN
                    APPLICABLE EXEMPTION THEREFROM (IN EACH CASE BASED
                    UPON DOCUMENTATION SATISFACTORY TO THE COMPANY,
                    INCLUDING AN OPINION OF COUNSEL SATISFACTORY TO IT
                    THAT REGISTRATION UNDER THE SECURITIES ACT AND ANY
                    APPLICABLE STATE LAWS IS NOT REQUIRED) OR PURSUANT
                    TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
                    SECURITIES ACT."

               (ii) Any legend required by any applicable law.

          (e)  The Purchaser is an "accredited investor" as such term is defined
     in Rule 501(a)(1) promulgated pursuant to the Securities Act.

          (f)  The Purchaser's financial condition is such that it is able to
     bear the risk of holding the Shares for an indefinite period of time.

          (g)  The Purchaser has such knowledge and experience in financial and
     business matters and in making high risk investments of this type and is
     capable of evaluating the merits and risks of the purchase of the Shares.
<PAGE>

                                     - 3 -

     (h)  There are no claims for brokerage commissions or finder's fees or
similar compensation in connection with the transactions contemplated by this
Agreement based on any arrangement or agreement made by or on behalf of the
Purchaser, and the Purchaser agrees to indemnify and hold the Company harmless
against any damages incurred as a result of any such claims.

               (i) The Purchaser acknowledges that the Company will rely upon
     the truth and accuracy of the foregoing acknowledgments, representations
     and agreements and agrees that, if any of the acknowledgments,
     representations and agreements are no longer accurate, it shall promptly
     notify the Company, and the Company acknowledges that the representations
     and the agreements of the Purchaser herein are without prejudice to the
     representations and warranties of the Company contained in Section 4 above.

     6.   Conditions of the Purchaser's Obligations.  The obligation of the
          -----------------------------------------
Purchaser to purchase the Shares is subject to each of the following terms and
conditions:

     (a)  The representations and warranties of the Company contained in this
          Agreement shall be true and correct when made and on and as of the
          Closing Date as if made on such date and the Company shall have
          performed all covenants and agreements and satisfied all the
          conditions contained in this Agreement required to be performed or
          satisfied by it at or before the Closing Date.

     (b)  the Closing of the Tadiran Agreement.

7.   Conditions of the Company's Obligations.  The obligation of the Company to
     ---------------------------------------
sell the Shares is subject to each of the following terms and conditions:

(a)  The representations and warranties of the Purchaser contained in this
Agreement shall be true and correct when made and on and as of the Closing Date
as if made on such date and the Purchaser shall have performed all covenants and
agreements and satisfied all the conditions contained in this Agreement required
to be performed or satisfied by it at or before the Closing Date.

(b)  the Closing of the Tadiran Agreement.

     8.   Registration Rights.  The Purchaser shall have registration rights
          -------------------
with respect to the Shares as detailed in the Registration Right Agreement which
is attached as a schedule of the Tadiran Agreement.

     9.   Covenant of the Company.  The Company covenants and agrees as follows:
          -----------------------

     The Company shall use its reasonable best efforts to do and perform all
things required or necessary to be done and performed under this Agreement by
the Company prior to the Closing Date, and to satisfy all conditions precedent
to the delivery of the Purchase Price.

     10.  Covenants of the Purchaser.  The Purchaser covenants and agrees as
          --------------------------
follows:

          (a)  The Purchaser shall use its reasonable best efforts to do and
     perform all things required or necessary to be done and performed under
     this Agreement by it prior to the Closing Date, and to satisfy all
     conditions precedent to the delivery of the Shares.
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                                     - 4 -

     (b)  The Purchaser agrees that from the date hereof until the fifth
     anniversary of the Closing Date, it will not, and will not permit any of
     its Affiliates, as defined in the Securities Act, to directly or indirectly
     or in conjunction with or through any Associate (as defined in Rule 12b-2
     of the Exchange Act), (i) solicit proxies with respect to any capital stock
     or other voting securities of the Company under any circumstances, or
     become a "participant" in any "election contest" relating to the election
     of directors of the Company (as such terms are used in Rule 14a-11 of
     Regulation 14A of the Exchange Act) or (ii) make an offer for the
     acquisition of substantially all of the assets or capital stock of the
     Company or induce or assist any other person to make such an offer or (iii)
     form or join any "group" within the meaning of Section 13(d)(3) of the
     Exchange Act with respect to any capital stock or other voting securities
     of the Company for the purpose of accomplishing the actions referred to in
     clauses (i) and (ii). The covenant contained in this section 10(b) shall
     expire in relation to the Purchaser upon the sale by the Purchaser of the
     Shares issued to it hereunder.

          11.  Miscellaneous.  This Agreement has been and is made for the
               -------------
benefit of the Purchaser and the Company, and their respective successors and
assigns, and no other person shall acquire or have any right under or by virtue
of this Agreement. The term "successors and assigns" shall not include any
purchaser of Shares from the Purchaser merely because of such purchase.

          All notices and communications hereunder shall be in writing and
mailed or delivered or by telephone or telegraph if subsequently confirmed in
writing, (a) if to the Purchaser to Koor Industries Limited, Beit Platinum,
Ha'arbaah Street, Tel Aviv, attention: Yosef Ben Shalom, with a copy to Alan
Sacks, Herzog, Fox and Neeman, 4 Weismann Street, Tel Aviv and (b) if to the
Company, to Yehuda Harats, Electric Fuel Ltd., Western Industrial Zone, P.O. Box
641, Bet Shemesh 99000, Israel, with a copy to Dan Geva or Raanan Lerner, Adv.,
Meitar, Liquornik, Geva & Co., 16 Abba Hillel Silver Road, Ramat Gan 52506,
Israel.

          This Agreement shall be governed by and construed in accordance with
the laws of the State of Israel, without regard to any conflicts or choice of
law principles which would cause the application of the internal laws of any
jurisdiction other than the State of Israel.

          This Agreement may be signed in any number of counterparts, each of
which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument.

[THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]
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                                     - 5 -

     Please confirm that the foregoing correctly sets forth the agreement among
us.

                                        Very truly yours,

                                        ELECTRIC FUEL CORPORATION

                                        By /s/
                                           -------------------------------
                                           Title:

Agreed and accepted:

KOOR INDUSTRIES LTD.

/s/                          .
-----------------------------<PAGE>

                                                                   Exhibit 10.42
                                                                   -------------

                         REGISTRATION RIGHTS AGREEMENT
                         -----------------------------

     THIS REGISTRATION RIGHTS AGREEMENT (the" Agreement") is made as of the 15
day of March, 2000, by and between Electric Fuel Corporation ("EFC"), Tadiran
Limited ("Tadiran") and Koor Industries Limited ("Koor").

RECITALS
--------

     WHEREAS, Tadiran has purchased certain Common Stock of EFC, $0.01 per share
("Common Stock") in accordance with a Share and Assets Purchase Agreement (the
"Acquisition Agreement"), dated as of March, 15, 2000, made by and among EFC,
Tadiran, Tadiran Batteries Limited and Tadiran Electric Industries Corporation.

     WHEREAS, Koor has purchased certain Common Stock of EFC in accordance with
a Share Purchase and Agreement (the "Investment Agreement"), dated as of March,
15 2000, made by and among EFC and Koor.

     WHEREAS, EFC would like to grant Tadiran and Koor certain registration
rights with respect to their Common Stock in accordance with the terms hereof.

     NOW, THEREFORE, in consideration of the mutual promises and covenants set
forth herein, the parties hereto agree as follows:

Certain definitions:

The term "Act" means the Securities Act of 1933, as amended.

The term "Form S-3" means such form under the Act as in effect on the date
hereof or any registration form under the Act subsequently adopted by the SEC as
a successor thereto which permits inclusion or incorporation of substantial
information by reference to other documents filed by the Company with the SEC.

The terms "register", "registered" and "registration" refer to a registration
effected by preparing and filing a registration statement or similar document in
compliance with the Act, and the declaration or ordering of effectiveness of
such registration statement or document.

The term "Holder" refers to a holder of Registrable Securities.

The term "Registrable Securities" means (1) all EFC Common Stock purchased by
Tadiran under the Acquisition Agreement, and (ii) all EFC Common Stock purchased
by Koor under the Investment Agreement; provided, however, that any Common Stock
                                        --------  -------
that could be distributed by the holder thereof (in accordance with applicable
law) within three (3) months without the registration of such shares, shall not
be deemed to be Registrable Securities.

The term "SEC" shall mean the Securities and Exchange Commission.

Registration Rights
<PAGE>

                                      -2-

Following the Closing of the Acquisition Agreement, EFC shall file as soon as
possible with the SEC a registration statement on Form S-3 (the "Registration
Statement") and shall use its best reasonable efforts to have such Registration
Statement to be declared effective as soon as possible with the SEC, which shall
include all of the Common Stock issued to Koor under the Investment Agreement as
well as all of the Common Stock issued to Tadiran under the Acquisition
Agreement;

Following the completion of the Effectiveness Period (as defined in Section 5
below), Koor and Tadiran shall have collectively two demand registration rights,
provided that Koor is an affiliate (as such a term is defined in the Act) of EFC
at such time that Koor or Tadiran request such demand registration.

If Koor or Tadiran intend to distribute the Registrable Securities covered by
their request under Section 2.2 by means of an underwriting, they shall so
advise EFC as a part of their request made pursuant to such Section and EFC
shall have the right to designate the managing underwriter(s) in any
underwritten offer.

The provisions of this Agreement with respect to the Registration Statement
shall also apply, mutatis mutandis, to a registration statement of EFC filed in
connection with a demand registration under Section 2.2.

Lock Up by Koor and Tadiran

Koor undertakes not to sell under the Registration Statement any of the Common
Stock issued to it under the Investment Agreement prior to the completion of 6
months as of the date hereof.

Tadiran undertakes not to sell under the Registration Statement (i) half of the
Common Stock issued to it under the Acquisition Agreement until the completion
of 9 months as of the date hereof, and (ii) the remaining Common Stock issued to
it under the Acquisition Agreement until the completion of 12 months as of the
date hereof.

Nothing herein shall prevent Koor or Tadiran to enter into private Hedging
transactions with respect to the Registrable Securities.

None of the information supplied or to be supplied by EFC for inclusion or
incorporation by reference in the Registration Statement will, at the time the
Registration Statement are filed with the SEC and at the time they become
effective under the Act, contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make
the statement therein not misleading.

EFC will pay all expenses in connection with the filing of the Registration
Statement, other than expenses of Tadiran's and Koor's counsel, and shall keep
the Registration Statement effective and current until the completion of a
period of 18 months as of the date the completion of the lock up on the Common
Stock held by Koor as detailed in Section 3.1 above. plus any applicable
Disclosure Blackout Period, Non-Disclosure Blackout Period and Primary Offering
Black Out Period (collectively, the "Effectiveness Period").

With a view to making available to the Holders the benefits of Rule 144
promulgated under the Securities Act and any other rule or regulation of the SEC
that may at any time permit a Holder to sell securities of EFC to the public
without registration or pursuant to the registration statements on Form S-3, EFC
agrees to:

     (a)  make and keep public information available, as those terms are
          understood and defined in SEC Rule 144, at all times;
<PAGE>

                                      -3-

     (b)  file with the SEC in a timely manner all reports and other documents
          required of EFC under the Securities Act and the 1934 Act; and

     (c)  furnish to any Holder, so long as the Holder owns any Registrable
          Securities, forthwith upon request a written statement by EFC that it
          has complied with the foregoing subsections 6(a) and 6(b).

In the event that any of Koor or Tadiran shall unreasonably delay any action
required to be taken by it in order for EFC to be able to file a Registration
Statement in compliance with the foregoing provisions, EFC shall not be deemed
to be in breach of these provisions in respect of non-registration of the
pertinent shares of Tadiran or Koor under such Registration Statement.

If EFC determines in good faith that the Registration Statement includes an
untrue statement of a material fact or omits to state a material fact required
to be stated therein as necessary to make the statements therein not misleading
in light of the circumstances then existing, EFC shall promptly make such
disclosure and amend any such Registration Statement as may be required under
applicable securities laws to keep such Registration Statement effective, and
Tadiran and Koor shall, upon receipt of notice from EFC to that effect, be
prohibited from reselling any EFC Common Stock for a period of 60 days
("Disclosure Blackout Period"), unless EFC notifies them of the earlier
termination of any Disclosure Blackout Period; provided, however, that in no
event shall a cumulative Disclosure Blackout Periods exceed 60 days during any
12-month period.

Notwithstanding the aforesaid, if EFC's Board of Directors  determines that the
registration and distribution of the EFC Common Stock pursuant to a Registration
Statement would interfere with any pending financing, acquisition, public
offering, corporation reorganization or any other material corporate development
involving EFC (or would require premature disclosure thereof), during the
Effectiveness Period, EFC may at any time and from time to time give Tadiran and
Koor written notice of such determination and upon receipt of such notice,
Tadiran and Koor shall be prohibited from reselling any EFC Common Stock for a
period of up to 60 days (a "Non-Disclosure Blackout Period"), unless EFC
notifies Tadiran and Koor of the earlier termination of any Non-Disclosure
Blackout Period; provided, however, that in no event shall the cumulative Non-
Disclosure Blackout Period exceed 120 days during the Effectiveness Period.

In addition, if EFC sells shares of its Common Stock in an underwritten public
offering (the "Primary Offering") pursuant to a registration statement, Tadiran
and Koor shall be prohibited from reselling any EFC Common Stock for a period of
180 days from the effective date of such Primary Offering (a "Primary Offering
Black Out Period"), unless EFC notifies Tadiran and Koor of the earlier
termination of such Primary Offering Black Out Period.

Indemnification relating to the Registration Statement

To the extent permitted by law, EFC will indemnify and hold harmless each one of
the Holders, the partners, officers, directors and shareholders of each one of
the Holders, legal counsel and accountants for each one of the Holders, any
underwriter (as defined in the Securities Act) for such Holder and each person,
if any, who controls Holder or underwriter within the meaning of the Securities
Act or the 1934 Act against any losses, expenses, claims, damages, or
liabilities to which they become subject under the Securities Act, the 1934 Act
or other United States federal or state laws or the securities laws of the State
of Israel or any other jurisdiction in which the Registrable Shares are sold,
insofar as such losses, expenses, claims, damages, or liabilities (or actions in
respect thereof) arise out of or are based upon any of the following statements,
omissions or violations (collectively a "violation"): (i) any untrue statement
of a material fact contained in such registration statement, including
<PAGE>

                                      -4-

any preliminary prospectus or final prospectus contained therein or any
amendments or supplements thereto; (ii) the omission or alleged omission to
state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading in light of the circumstances under
which they were made, or (iii) any violation or alleged violation by the Company
of the Securities Act, the 1934 Act, any Federal or state securities law or any
rule or regulation promulgated under the Securities Act, the 1934 Act or any
federal or state securities law, or any of the securities laws of the State of
Israel or any other jurisdiction in which the Registrable Shares are sold or any
rule or regulation thereunder; and EFC will reimburse each such Holder, officer
or director, underwriter or controlling person for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any
such loss, claim, damage, liability, or action; provided, however, that the
indemnity agreement contained in this Section shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability, or action if such
settlement is effected without the consent of the Company (which consent shall
not be unreasonably withheld), nor shall the Company be liable to the Holders,
underwriter or controlling person in any such case for any such loss, claim,
damage, liability, or action to the extent that it arises out of or is based
upon a Violation which occurs in reliance upon and in conformity with written
information furnished to the Company expressly for use in connection with such
registration by the Holders, underwriter or controlling person provided further,
however, that the foregoing indemnity agreement with respect to any preliminary
prospectus shall not inure to the benefit of any Holder or underwriter, or any
person controlling such Holder or underwriter, from whom the person asserting
any such losses, claims, damages or liabilities purchased shares in the
offering, if a copy of the prospectus (as then amended or supplemented if the
Company shall have furnished any amendments or supplements thereto) was not sent
or given by or on behalf of such Holder or underwriter to such person, if
required by law so to have been delivered, at or prior to the written
confirmation of the sale of the shares to such person, and if the prospectus (as
so amended or supplemented) would have cured the defect giving rise to such
loss, claim, damage or liability.

To the extent permitted by law, each selling Holder will indemnify and hold
harmless EFC, each of its directors, each of its officers who have signed the
Registration Statement, each person, if any, who controls EFC within the meaning
of the Securities Act, any underwriter (within the meaning of the Securities
Act) for EFC, any person who controls such underwriter, and any Holder selling
securities in such registration statement or any directors or officers or any
persons controlling such parties, against any losses, claims, expenses, damages,
or liabilities to which any of the forgoing persons become subject under the
Securities Act, the 1934 Act or other United States federal or state securities
law, or any of the securities laws of the State of Israel or any other
jurisdiction in which the Registrable Shares are sold, insofar as such losses,
expenses, claims, damages, liabilities (or actions in respect thereto) arise out
of or are based upon any Violation (including alleged Violation), in each case
to the extent (and only to the extent) that such Violation occurs in reliance
upon and in conformity with written information furnished to EFC by such Holder
expressly for use in connection with such registration; and each such Holder
will reimburse any persons intended to be indemnified pursuant to this section
for any legal or other expenses reasonably incurred by such person in connection
with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that the indemnity agreement contained in this
Section shall not apply to amounts paid in settlement of any such loss, claim,
damage, liability or action if such settlement is effected without the consent
of the Holders, which consent shall not be unreasonably withheld: provided that
in no event shall any indemnity under this Section exceed the gross proceeds
from the offering received by such Holder.

Promptly after receipt by an indemnified party of notice of the commencement of
any action (including any governmental action), such indemnified party will, if
a claim in respect thereof is to be made against any indemnifying party under
this Section 11, notify the indemnifying party in writing
<PAGE>

                                      -5-

of the commencement thereof and the indemnifying party shall have the right to
participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume the defense
thereof with counsel mutually satisfactory to the parties; provided, however,
that an indemnified party (together with all other indemnified parties that may
be represented without conflict by one counsel) shall have the right to retain
its own counsel, with the fees and expenses to be paid by the indemnifying
party, if representation of such indemnified party by the counsel retained by
the indemnifying party would be inappropriate due to actual or potential
differing interests between such indemnified party and any other party
represented by such counsel in such proceeding. The failure to notify an
indemnifying party in writing within a reasonable time of the commencement of
any such action, if prejudicial to its ability to defend such action, shall
relieve such indemnifying party of any liability to the indemnifying party under
this Section 11, but the omission so to deliver written notice to the
indemnifying party will not relieve it of any liability that it may have to any
indemnified party otherwise than under this Section 11.

if the indemnification provided for in this Section 11 is held by a court of
competent jurisdiction to be unavailable to an indemnified party with respect to
any loss, liability, claim, damage or expense referred to herein, then the
indemnifying party, in lieu of indemnifying such indemnified party hereunder,
shall contribute to the amount paid or payable by such indemnified party as a
result of such loss, liability, claim, damage or expense in such proportion as
is appropriate to reflect the relative fault of the indemnifying party on the
one hand and of the indemnified party on the other in connection with the
statements or omissions that resulted in such loss, liability, claim, damage or
expense, as well as any other relevant equitable considerations. The relative
fault of the indemnifying party and of the indemnified party shall be determined
by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission to state a material fact relates to
information supplied by the indemnifying party or by the indemnified party and
the parties' relative intent, knowledge, access to information, and opportunity
to correct or prevent such statement or omission.

The obligations of EFC and the Holders under this Section 11 shall survive the
completion of any offering of Registrable Securities hereunder.

Miscellaneous.
--------------

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.

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

Successors and Assigns. This Agreement and the rights hereunder shall be deemed
to be solely for the benefit of Tadiran, Koor and their successors, and the
registration rights hereunder may not be assigned or transferred to third
parties.

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.
<PAGE>

                                      -6-

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<PAGE>

                                      -7-

IN WITNESS WHEREOF, the parties have signed this Agreement as of the date first
hereinabove set forth.

  /s/                              /s/                  /s/
----------------------------     ------------------   ------------------------
Electric Fuel Corporation        Tadiran Limited       Koor Industries Limited
By:__________                    By:___________        By:__________

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