Document:

F-4/A

Exhibit 4.2  

NEGEVTECH LTD. 

(the
“Company”)  

SHARE OWNERSHIP 

AND OPTION PLAN (2001, as amended 2003 & 2004 & 
2005 & 2006 & 2007)

TABLE OF CONTENTS 

	1.  	Preamble.  

	2.  	Administration
of the Plan.  

	3.  	Shares
Subject to the Plan.

	4.  	Option
Exercise Prices.

	5.  	Exclusivity
of the Plan.

	6.  	Grant
of the Options and Issuance of the Shares to the Trustee.

	7.  	Option
or Share Purchase Agreement; Termination of Employment.

	8.  	Acceleration
of an Option.

	9.  	Term
of Options; Exercise.

	10.  	Additional
Documents.

	11.  	Taxation.

	12.  	Dividends.

	13.  	Rights
and/or Benefits  arising out of the  Employee/Employer  Relationship and the Absence of
an Obligation        to Employ.

	14.  	Adjustments
Upon Changes in Capitalization.

	15.  	Term,
Termination and Amendment.

	16.  	Effectiveness
of the Plan.

	17.  	Release
of the Trustee and the Attorney from Liability and Indemnification.

	18.  	Governing
Law.

APPENDICES  

	Appendix A: 	
                Employee's Notice to the Trustee as to Exercise of the Option (Section
9.2). 

	Appendix B: 	
                Notice to the Company of Exercise of the Option by the Trustee (Section
9.2). 

	Appendix C:  	
                Proxy and Power of Attorney (Section 10.2). 

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	1.  	PREAMBLE  

	 	1.1 	Purpose;
Eligibility. This plan, as amended from time to time, shall be known as the “Negevtech
Ltd. Share Ownership and Option Plan (2001, as amended 2003 & 2004 & 2005 & 2006
& 2007)” (the “Plan”). The purpose and intent of the Plan is to
provide incentives to employees, directors and/or service providers including advisors of
the Company and/or of subsidiaries (each a “Related  Company” and
collectively, “Related Companies”) by providing them with the
opportunity to purchase shares of the Company. In addition the Company may provide
individual grantees that are employed by advisors or service providers and approved by
the Board of Directors of the Company (the “Board”) the opportunity to
purchase shares of the Company under the Plan. 

	 	1.2 	Types
of Awards; Tax Regimes. The Plan is intended to enable the Company to grant options
and issue shares under various and different tax regimes, including, without limitation:
(i) pursuant and subject to Section 102 of the Israeli Income Tax Ordinance (New
Version), 1961 (the “Income Tax Ordinance”) or any provision
which may amend or replace it and any regulations, rules, orders or procedures
promulgated thereunder (collectively, “Section 102”) and to designate
them as either grants made through a trustee or not through a trustee and (ii) outside
the context of Section 102. 

	 	
The
Company, however, does not warrant that the Plan will be recognized by the income tax
authorities or that future changes will not be made to the provisions of applicable laws,
or rules or regulations which are promulgated from time to time thereunder, or that any
exemption or benefit currently available, whether pursuant to Section 102 or otherwise,
will not be abolished.  

	 	1.3 	Adjustments
and Compliance with Tax Laws. The Board shall have the authority to make any
requisite adjustments in the Plan and determine the relevant terms in any Agreement (as
defined in Section 7 below) in order to comply with the requirements of any of the
relevant tax regimes. Furthermore, should any provision of Section 102 be amended, such
amendment shall be deemed included in the Plan with respect to options granted or shares
issued in the context of Section 102. Where a conflict arises between any section of the
Plan, the Agreement or their application, and the provisions of any relevant tax law,
rule or regulation, whether relied upon for tax relief or otherwise, the Board in its
sole discretion shall determine the necessary changes to be made to the Plan and its
determination regarding this matter shall be final and binding. 

	 	1.4 	In
the event the Company’s shares should be registered for trading on the Tel-Aviv
Stock Exchange Ltd., or on any other stock exchange, whether in Israel or abroad, the
options and/or shares allotted in accordance with the Plan may be made conditional to any
requirement or instruction of the stock exchange authorities or of any other relevant
authority acting pursuant to applicable law as shall exist from time to time. In such
case, by means of a Board resolution, the Plan and the agreements prepared pursuant
hereto, may be amended as necessary to meet such requirements. In the event of a
contradiction between any such amendment and the Plan’s provisions, the amendment
shall prevail. 

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	2.  	ADMINISTRATION
OF THE PLAN  

	 	2.1 	The
Plan shall be administered by the Board and/or by any committee of the Board so
designated by the Board. Any subsequent references herein to the Board shall also mean
any such committee if appointed and, unless the powers of the committee have been
specifically limited by law or otherwise, such committee shall have all of the powers of
the Board granted herein. Without derogating from the generality of the foregoing, the
Board shall have the authority to designate grants made pursuant to Section 102 as either
grants made through a trustee or not through a trustee and to determine (and from time to
time, change, subject to Section 102) the tax route applicable to options granted through
a trustee pursuant to Section 102 (e.g., the capital gains route or the employment income
route) and to make any other elections with respect to the Plan pursuant to applicable
law. Subject to Sections 4 and 15, the Board shall have plenary authority to determine
the terms and conditions of all options (which need not be identical), including, without
limitation, the purchase price of the shares covered by each option, the individuals to
whom, and the time or times at which, options shall be granted, the number of shares to
be subject to each option, whether an option shall be granted pursuant to Section 102 or
otherwise and when an option can be exercised and whether in whole or in installments.
Subject to Section 15, the Board shall have plenary authority to construe and interpret
the Plan, to prescribe, amend and rescind the rules and regulations relating to it and to
make all other determinations deemed necessary or advisable for the administration of the
Plan. All determinations and decisions of the Board pursuant to the provisions of the
Plan and all related orders and resolutions of the Board shall be final, conclusive and
binding on all persons, including the Company, its shareholders, grantees and their
estates and beneficiaries. 

	 	2.2 	Any
directive or notice signed by two members of the Board shall constitute conclusive proof
and authority for every act or decision of the Company. 

	 	2.3 	No
director or officer of the Company shall be personally liable or obligated to any grantee
as a result of any decision made and/or action taken with respect to the Plan or its
execution. 

	3.  	SHARES
SUBJECT TO THE PLAN  

	 	
The
shares subject to the Plan shall be Ordinary Shares of the Company. The maximum number of
shares that may be issued under the Plan is 3,896,930 Ordinary Shares of NIS 1.00 nominal
value each, as such number of shares may be adjusted in accordance with Section 14. Such
shares may be in whole or in part, as the Board shall from time to time determine and
subject to applicable law, authorized and unissued Ordinary Shares or issued and fully
paid Ordinary Shares which shall have been purchased by the Company or the Trustee (as
hereinafter defined) hereunder with funds provided by the Company. If any option granted
under the Plan shall expire, terminate or be canceled for any reason without having been
exercised in full, such shares subject thereto shall again be available for the purposes
of the Plan. Any increase in the maximum number of shares shall be recommended by the
Board and shall require the approval of a general meeting of the shareholders of the
Company. 

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	4.  	OPTION
EXERCISE PRICES  

	 	
The
consideration to be paid by a grantee for each share purchased by exercising an option
(the “Option  Exercise Price”) shall be as determined by the Board
on the date of grant (including, subject to the Companies Law 5759-1999, at an exercise
price lower than the nominal value of the underlying shares). 

	5.  	EXCLUSIVITY
OF THE PLAN  

	 	
Unless
otherwise determined by the Board in any particular instance as part of the Agreement,
each grantee hereunder will be required to declare and agree that all prior agreements,
arrangements and/or understandings with respect to shares of the Company or options to
purchase shares of the Company which have not actually been issued or granted prior to
execution of the Agreement shall be null and void and that only the provisions of the Plan
and/or the Agreement shall apply. 

	 	
Notwithstanding
the above, the adoption of this Plan, by itself, shall not be construed as amending,
modifying or rescinding any incentive arrangement previously approved by the Board or as
creating any limitations on the power of the Board to adopt such other incentive
arrangements as it may deem desirable, including, without limitation, the granting of
options otherwise than under this Plan, and such arrangements may be either applicable
generally or only in specific cases. 

	6.  	GRANT
OF THE OPTIONS AND ISSUANCE OF THE SHARES TO THE TRUSTEE

	 	6.1 	The
Board shall appoint a trustee for the purposes of this Plan, which trustee shall be
approved, with respect to grants designated as grants made through a trustee pursuant to
Section 102, in accordance with Section 102 (the “Trustee”). The Trustee
shall have all the powers provided by law, Section 102 and the Plan and shall act
pursuant to the provisions thereof, as they shall apply from time to time. The Company
shall pay the Trustee a fee as shall be agreed between the Trustee and the Company. 

	 	6.2 	Unless
otherwise determined by the Board, all option awards shall be issued by the Company in
the name of the Trustee and the share certificates representing any shares issued
pursuant to options exercised hereunder, and all rights deriving from or in connection
therewith including, without limitation, any bonus shares (stock dividends) issued in
connection therewith, shall be issued by the Company in the name of the Trustee in trust
for the designated grantee and shall be deposited with the Trustee, held by him and
registered in his name in the register of members of the Company for such period as
determined by the Board but, in the case of grants designated as grants made through a
trustee pursuant to Section 102, not less than the period required, or approved, with
respect thereto pursuant to Israeli law, regulations promulgated thereunder or Section
102, as shall be in effect from time to time (the “Lock-Up Period”). 

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Furthermore,
options granted or shares issued which were designated as made through a trustee pursuant
to Section 102 may not be sold until the end of the Lock-Up Period, unless otherwise
allowed or determined by the Israeli tax authorities.  

	 	6.3 	Without
derogating from the provisions of Sections 6.2 above or 6.7 below, and unless otherwise
determined by the Board generally or in any particular instance, the shares issued with
respect to any options granted hereunder and all rights deriving from or in connection
therewith including, without limitation, any bonus shares (stock dividends) issued in
connection therewith, will be held by the Trustee and registered in his name until the
earlier of consummation of the initial public offering of the Company’s shares,
pursuant to an effective registration statement, prospectus or similar document in Israel
or such other jurisdiction as is determined by the Board (the “IPO”) or
10 years from the date of their issue, after which time the grantee for whom they are
being held may request their registration in his name and transfer to him subject to the
provisions of Section 102, applicable laws and the Plan all as shall be in effect from
time to time (e.g., payment of taxes, etc.). After the consummation of the IPO, options
granted and designated as grants made through a trustee pursuant to Section 102 will be
held by the Trustee and registered in his name in trust for the designated grantee, for
not less than the Lock-Up Period. 

	 	6.4 	Options
granted hereunder shall not confer upon the holder thereof any of the rights of a
shareholder of the Company with respect to the shares subject to such options until such
shares are issued and registered in the name of the holder upon the exercise of the
options. 

	 	6.5 	For
as long as any shares are held by the Trustee or registered in his name or for as long as
the certificates representing any shares are held by the Trustee, the Trustee alone shall
be entitled to receive every notice to which a shareholder is entitled, or to demand any
information, and any financial and/or other report to which a shareholder is entitled
from the Company, and only he or whomever he shall designate pursuant to the Proxy and
Power of Attorney referred to and as defined in Section 10.2 below (the “Attorney”),
shall be entitled to exercise every other right of the shareholders vis-a-vis the Company
including the right to participate in and to vote at all shareholders’ meetings. No
grantee shall be entitled to exercise any of these rights as shareholder nor make any
demand or request of the Trustee and/or of the Attorney in this regard. 

	 	6.6 	Shares
registered in the Trustee’s name shall be represented at all meetings of
shareholders of the Company and, until consummation of the IPO, shall be voted by the
Trustee or the Attorney at their discretion and subsequent thereto shall be voted by the
Trustee or the Attorney in accordance with the instructions of the grantees on whose
behalf they are held and in the absence of such instructions they shall abstain. 

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	 	6.7 	Nothing
in the aforegoing provisions shall derogate from the power of the Board to grant options
or to allot shares to the Trustee otherwise than under the provisions of Section 102 or
to allot shares or grant options to grantees directly otherwise than through the Trustee
or on terms which differ from those specified above or to approve the transfer of shares
from the Trustee to the name of any grantee(s) upon such conditions as shall be
determined by the Board. 

	7.  	OPTION
OR SHARE PURCHASE AGREEMENT; TERMINATION OF EMPLOYMENT  

	 	
Unless
otherwise determined by the Board, every grantee shall be required to sign an option or
share purchase agreement or other document as shall be determined by the Board, in the
form approved by the Board (the “Agreement”). 

	 	
The
Agreement shall specify the type of option award granted and whether it constitutes an
option pursuant to Section 102, and if so, under which regime, or otherwise. The Agreement
need not be identical with respect to each grantee. The following terms, however, shall
apply to all options, and, mutatis mutandis, shares, unless expressly otherwise decided in
respect of a particular option: 

	 	7.1 	Unless
otherwise determined by the Board or in the Agreement, the Option Exercise Price shall be
paid by the grantee to the Company no later than the date of exercise of the option
unless otherwise determined in the Agreement. 

	 	7.2 	The
grantee shall have no right of first refusal to purchase shares of the Company which may
be offered for sale by shareholders of the Company, and shall have no pre-emptive rights
to purchase shares which are being allotted or shall in the future be allotted by the
Company, to the extent any such rights otherwise exist. 

	 	7.3 	The
option and/or the right to the option and/or the shares are personal and except insofar
as is specified in this Plan, and, where applicable, subject to Section 102, may not be
transferred, assigned, pledged, withheld, attached or otherwise charged either
voluntarily or pursuant to any law, except by way of transfer pursuant to the laws of
inheritance, and no power of attorney or deed of transfer, whether the same has immediate
effect or shall take effect on a future date, shall be given with respect thereto. During
the lifetime of the grantee the option may only be exercised by the designated grantee
or, if granted to the Trustee, by the Trustee on behalf of the designated grantee. A note
as to the provisions of this sub-section or a legend may appear on any document which
grants the option and in particular in the Agreement, and also on any share certificate. 

	 	7.4 	The
right to exercise the option is granted to the Trustee on behalf of the grantee. Vesting
shall be in installments, gradually over a period of 4 (four) years from the date of
grant of the option or such other period or periods as determined by the Board. Unless
otherwise determined, at the conclusion of each period for the exercise of the option as
determined in the Agreement (“Vesting Periods”), the option may, from
time to time, be exercised in relation to all the shares allocated for that period in
such manner that at the end of the 2 (two) years from the granting of the option the
Trustee shall, in the absence of a contrary determination in the Agreement, be entitled
to exercise on behalf of the grantee and at his request 1⁄2 (half) of the options
and at the end of each of the remaining 2 (two) years another 1⁄4 (quarter). 

7

	 	
In
addition, during each of the Vesting Periods, the option may be exercised in relation to
all or part of the shares allocated for any previous Vesting Period in which the option
was not fully exercised, provided, subject to the provisions of Section 7.6 hereof, that
at the time of the exercise of the option the grantee has continued to be employed by or
to serve as a director of or provide services to, the Company or a Related Company on a
continual basis from the date of the grant thereof until the date of their exercise.
After the end of the Vesting Periods and during the balance of the option period, the
option may be exercised, from time to time, in relation to all or part of the shares
which have not at that time been exercised and which remain subject to the option,
subject to the provisions of Section 7.6 hereof and to any condition in the Agreement, if
such exists, which provides a minimum number of shares with respect to which the option
may be exercised and any provision which determines the number of times that the Trustee
may send the Company notice of exercise on behalf of the grantee in respect of the
option. The Board shall be entitled at any time to shorten the vesting schedule or any
Vesting Period.  

	 	7.5 	The
Board may determine at its sole discretion, that any grantee shall be entitled to receive
the options or the shares, through the Trustee, pursuant to the provisions of this Plan
or, subject to the provisions of Section 102 as relevant, directly in the name of the
grantee, immediately upon execution of the Agreement or on such other date or dates as
the Company has undertaken towards such grantee. In the event that a grantee is exempt
from the Vesting Periods (pursuant to the provisions of Section 7.4), the Board shall be
entitled to determine that where the grantee does not comply with the conditions
determined by the Board or ceases to be an employee of the Company or a Related Company,
the Trustee, the Company or a Related Company shall have the right to repurchase the
shares from the grantee for nominal or any other consideration paid by the grantee. The
Board may set additional conditions to this right of repurchase, including the provision
of appropriate arrangements for the monies which shall be available to the Trustee or a
Related Company or others for the purpose of the repurchase and may set conditions with
respect to the voting rights of the grantee, rights of first refusal or pre-emptive
rights to purchase shares in the Company, to the extent such rights exist, the grantees
right to receive reports or information from the Company, and the grantee’s right to
a dividend in respect of shares which are subject to a right of reacquisition as
aforesaid. For as long as the aforegoing conditions of the Board (including a minimum
period of employment as a condition for the lapse of the right to reacquisition) have not
been complied with, the grantee shall not be entitled to sell or charge or transfer in
any other manner the shares which are subject to the right of reacquisition. As security
for the compliance with this undertaking the share certificate will be deposited with the
Trustee who will release the same to the grantee only after the grantee becomes entitled
to the shares and the same are not subject to any other restrictive condition. 

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	 	7.6 	Termination
of Employment 

	 	7.6.1	If
a grantee ceases to be an employee, director or service provider (or, if relevant, an
employee of a service provider) of the Company or a Related Company, prior to the
complete exercise of an option, (a) by reason of death, disability (as determined by the
Board in its absolute discretion) or retirement after age 60 with the approval of the
Board, the option shall remain exercisable for a period of one year following such
termination (but only to the extent exercisable at termination of employment and not
beyond the scheduled expiration date); (b) for any other reason other than for Cause, the
option shall remain exercisable for a period of ninety (90) days following the earlier of
such termination or notice of termination (but only to the extent exercisable at the
earlier of termination or notice of termination of employment and not beyond the
scheduled expiration date) (unless the Agreement provides otherwise); or (c) for Cause,
as such term is defined below, all options held by or on behalf of such grantee shall
immediately expire upon the earlier of such termination or notice of termination (unless
the Agreement provides otherwise).  

	 	
For
purposes hereof, the term “Cause” shall mean any of (i) a material
breach by the grantee of the grantee’s obligations under any agreement with the
Company or any Related Company; (ii) the commission by the grantee of an act of fraud or
embezzlement against the Company or any Related Company or the willful taking of action
injurious to the business or prospects of the Company or any Related Company; (iii) the
conviction of the grantee of a felony; and (iv) the grantee’s involvement with an
act which constitutes breach of trust between the grantee and the Company or any Related
Company. 

	 	7.6.3	The
Board may determine whether any given leave of absence constitutes a termination of
employment. Options awarded under this Plan shall not be affected by any change of
employment so long as the grantee continues to be an employee, director or
service-provider, as applicable, of the Company or a Related Company.  

	 	7.6.4	In
such case as Section 102 and the Commissioner’s Rules shall apply to any option,
where the grantee ceases to be an employee of the Company prior to the expiration of such
period as may be prescribed by applicable law, regulations or the Commissioner’s
Rules, the exemption provided by Section 102 may not, pursuant to applicable law, apply
with respect to that grantee. In such case, the grantee shall be obliged to make
arrangements with the tax authorities at his expense for all matters to do with the
taxation of the options and/or the shares.  

	 	7.6.5	Notwithstanding
the foregoing, the Board may in its absolute discretion, extend the period of exercise of
the option by a grantee or grantees for such time as it shall determine either with or
without conditions.  

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	8.  	ACCELERATION
OF AN OPTION  

	 	
In
the event the Board (or, if approval of the shareholders is required, the shareholders of
the Company) shall approve the adoption of any plan or proposal for the liquidation or
dissolution of the Company then, notwithstanding any contrary Vesting Periods in any
Agreement or in this Plan, and unless in each case the applicable Agreement provides
otherwise, one-half of the outstanding options held by or for the benefit of any grantee
and which have not yet vested shall be accelerated and become immediately vested and
exercisable.  

	 	
Furthermore,
if a “Significant Event”, as defined below, shall occur, and either (i) the
employment of a grantee with the Company or a Related Company is terminated by the
Company or a Related Company within twelve (12) months thereafter, (ii) a grantee resigns
his employment with the Company or with a Related Company within such period due to an
adverse change in his position with the Company or a Related Company (as defined in his
employment agreement) or in circumstances which would result in such resignation being
deemed termination by the Company or a Related Company pursuant to Section 11(a) of the
Severance Pay Law, 1963; or (iii) the surviving corporation in a consolidation or merger,
referred to in (a) below under Significant Event, does not assume the option or
substitute it with an appropriate option in the surviving corporation; all outstanding
options held by or for the benefit of any such grantee and which have not yet vested
shall be accelerated and become immediately fully vested and exercisable in full
(notwithstanding any contrary vesting schedule previously agreed).  

	 	
Each
of the following shall be a “Significant Event”: approval by the Board or
(if approval of the shareholders is required) shareholder approval of: (a) any
consolidation or merger of the Company in which the Company is not the continuing or
surviving corporation or pursuant to which Ordinary Shares would be converted into cash,
securities or other property, other than a merger of the Company in which the holders of
Ordinary Shares immediately prior to the merger have the same proportionate ownership of
Ordinary Shares of the surviving corporation immediately after the merger; or (b) any
sale, lease, exchange or other transfer (in one transaction or a series of related
transactions) of all or substantially all the assets or all the outstanding shares of the
Company; In addition effective from consummation of the IPO, each of the following shall
also be considered a “Significant Event”: any person or group other than
the Company making a tender offer or exchange offer to acquire any Ordinary Shares (or
securities convertible into Ordinary Shares) for cash, securities or any other
consideration, provided that : (y) at least a portion of such securities sought pursuant
to the offer in question is acquired; and (z) after consummation of such offer, the person
in question is the beneficial owner, directly or indirectly, of 20% or more of the
outstanding Ordinary Shares; or during any period of two consecutive years, individuals
who at the beginning of such period constituted the entire Board ceasing for any reason to
constitute a majority thereof unless the election, or the nomination for election by the
Company’s shareholders, of each new director was approved by a vote of at least
two-thirds of the directors then still in office who were directors at the beginning of
the period. 

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	9.  	TERM
OF OPTIONS; EXERCISE  

	 	9.1 	The
term of each option shall be for such period as the Board shall determine, but not more
than 10 (ten) years from the date of grant thereof or such shorter period as is
prescribed in Section 7.6 or 8.3 hereof. 

	 	9.2 	A
grantee who desires that the Trustee exercise an option granted to the Trustee on his
behalf shall so instruct the Trustee in writing in the form annexed hereto as Appendix
A or in such other form as shall be approved by the Board from time to time. The
notice shall be accompanied by, or specify the arrangements for, payment of the full
Option Exercise Price of such shares as provided in the Agreement. The Company may
require as a condition to the exercise of an option that the grantee pay or otherwise
make arrangements to the Company’s satisfaction, for the payment of the tax and
other obligatory payments applicable to him (including all sums payable arising out of or
in connection with the Company’s obligation to deduct tax and other obligatory
payments at source) pursuant to applicable law and the provisions of the Plan. Upon
receipt of all the requisite documents, approvals and payments from the grantee,
including sufficient proof of payment or other arrangement with respect to the payment of
any applicable taxes in form satisfactory to the Company and the Trustee, the Trustee
shall deliver a notice to the Company in the form annexed hereto as Appendix B or
in such other form as shall be approved by the Board, whereupon the Company shall allot
the shares in the name of the Trustee. 

	 	9.3 	A
grantee who desires to exercise an option granted directly to him (and not through the
Trustee) shall so notify the Company in writing in such form as shall be prescribed by
the Board from time to time. As a condition for the exercise of the option, the grantee
shall pay or otherwise make arrangements, to the Company’s satisfaction, for the
payment of the tax and other obligatory payments applicable to him (including all sums
payable by the Company arising out of its obligation to deduct tax and other obligatory
payments at source) pursuant to applicable law and the provisions of the Plan. Upon
receipt of all the requisite documents, approvals and payments from the grantee,
including sufficient proof of payment or other arrangement with respect to the payment of
any applicable taxes in form satisfactory to the Company, the Company shall allot the
shares in the name of the grantee. 

	10.  	ADDITIONAL
DOCUMENTS  

	 	10.1 	Until
the consummation of the IPO, the grantee shall provide, any certificate, declaration or
other document which the Company or the Trustee shall consider to be necessary or
desirable pursuant to any law, whether local or foreign, including any undertaking on the
part of the grantee not to sell his or her shares during any period which shall be
required by an underwriter or investment bank or advisor of the Company for the purpose
of any share issue whether private or public and including any certificate or agreement
which the Company shall require, if any, from the grantees as members of a class of
shareholders, or any certificate, declaration or other document the obtaining of which
shall be deemed by the Board or the Trustee to be appropriate or necessary for the
purpose of raising capital for the Company, of merging the Company with another company
(whether the Company is the surviving entity or not), or of reorganization of the
Company, including, in the event of a consolidation or merger of the Company or any sale,
lease, exchange or other transfer of all or substantially all of the assets or shares of
the Company, for the sale or exchange, as the case may be, of any shares the grantee (or
the Trustee on his behalf) may have purchased hereunder all as shall be deemed necessary
or desirable by the Board or the Trustee. 

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	 	10.2 	In
order to guarantee the aforesaid, and because the rights of the Company and the other
shareholders are dependent thereon, the grantee shall, upon signing the Agreement and as
a condition to the grant of any options hereunder, execute the Proxy and Power of
Attorney attached hereto as Appendix C, or in such other form as shall be approved
by the Board from time to time (the “Proxy and Power of Attorney”),
irrevocably empowering the Trustee and/or the Attorney, until consummation of the IPO, to
sign any document and take any action in his name as aforesaid, and the grantee shall
have no complaint or claim against the Trustee and/or the Attorney in respect of any such
signature or action, or in respect of any determination of the Trustee pursuant hereto,
including pursuant to Section 6.6 or 10.1 above. The grantee will authenticate his
signature in the presence of a notary if he shall be asked to do so by the Company, in
order to give full validity to the Proxy and Power of Attorney. 

	11.  	TAXATION  

	 	11.1 	General 

	 	
The
grantee shall be liable for all taxes, duties, fines and other payments which may be
imposed by the tax authorities (whether in Israel or abroad) and for every obligatory
payment of whatever source (including, but not limited to, social security, health tax,
etc., as may be applicable) in respect of the options, the shares (including, without
limitation, upon the grant of the options, the exercise of the options, the sale of the
shares or the registration of the shares in the grantee’s name) or dividends or any
other benefit in respect thereof and/or for all charges which shall accrue to the
grantee, the Company, any Related Company and/or to the Trustee in connection with the
Plan, the options and/or the shares, or any act or omission by the grantee or the Company
in connection therewith or pursuant to any determination by the applicable tax or other
authorities, including, without limitation, any such payments required to be made by the
Company as the result of any sale by the grantee of shares which were designated as made
through a trustee pursuant to Section 102 prior to the end of the Lock-Up Period.
Notwithstanding the foregoing, if the Company elects the “employment income”route
for options granted through a trustee pursuant to Section 102, the Company or the Related
Company, as applicable, shall pay, at its expense, any social security payments payable
by the employer with respect to options so granted to the extent required as a result of
such choice.  

12

	 	11.2 	Deduction
at Source 

	 	
The
Company (including any Related Company) and/or the Trustee shall have the right to
withhold or to require the grantee to pay an amount in cash or to retain or sell without
notice Ordinary Shares in value sufficient to cover any tax or obligatory payment
required by any governmental or administrative authority to be withheld or otherwise
deducted and paid with respect to the options or the Ordinary Shares subject thereto
(including, without limitation, upon their grant, exercise or sale or the registration of
the Ordinary Shares in the grantee’s name) or with respect to dividends or any other
benefits in respect thereof (“Withholding Tax”), and to make payment (or to
reimburse itself or himself for payment made) to the appropriate tax or other authority
of an amount in cash equal to the amount of such Withholding Tax. Notwithstanding the
foregoing, the grantee shall be entitled to satisfy the obligation to pay any Withholding
Tax, in whole or in part, by providing the Company and/or the Trustee with funds
sufficient to enable the Company and/or the Trustee to pay such Withholding Tax.  

	 	11.3 	Certificate
of Authorization of Assessing Officer 

	 	
The
Company (including any Related Company) or the Trustee shall at any time be entitled to
apply to the Assessing Officer, and in the case of a grantee abroad, to any foreign tax
authority, for receipt of their certificate of authorization as to the amount of tax
which the Company or any Related Company or the grantee or the Trustee is to pay to the
tax authorities resulting from granting the options or allotting the shares, or regarding
any other question with respect to the application of the Plan.  

	 	11.4 	Security
for Payment of Taxes  

	 	
Without
derogating from the above, the Company (including any Related Company) and/or the Trustee
shall have the right to require that any grantee provide guarantees or other security to
the Company’s satisfaction to guarantee the payment of any taxes or other obligatory
payments which may be payable as a result of or in connection with the grant of an
option, the exercise thereof, the sale or transfer of any shares and/or the registration
of any options or shares in the grantee’s name (including any sum payable arising
out of or in connection with the Company’s obligations to deduct tax and other
obligatory payments at source); and, with respect to options granted pursuant to Section
102 which were not designated as made through a trustee, if the grantee’s employment
with the Company or any Related Company is terminated for any reason, the grantee will be
obligated to provide the Company with a guarantee or other security to its satisfaction
and at its discretion, to cover any tax obligations which may arise thereafter in
connection with the disposition of the shares.  

	12.  	DIVIDENDS  

	 	
The
Ordinary Shares issued as a result of the exercise of the options shall participate
equally with the Company’s other Ordinary Shares in every cash dividend which shall
be declared and distributed subject to the following provisions: 

13

	 	12.1 	A
cash dividend shall be distributed only to persons registered in the register of members
as shareholders on the record date fixed for the distribution of the dividend. 

	 	12.2 	A
dividend with regard to shares which are registered in the name of the Trustee shall be
paid to the Trustee, subject to any lawful deduction of tax, whether such rate is at the
usual rate applicable to a dividend or at a higher rate. The Trustee shall transfer the
dividend to the grantees in accordance with instructions that he shall receive from the
Company. Alternatively, the Company shall be entitled to pay the dividend directly to the
grantee subject to the deduction of the applicable tax. 

	 	12.3 	Without
derogating from the provisions of Sections 11.2 and 12.2 hereof, the Company or the
Trustee shall be entitled to set off and deduct at source from any dividend any sum that
the grantee owes to the Company (including any Related Company) or the Trustee, whether
under the Plan or otherwise, and/or any sum that the grantee owes to the tax or other
authorities. 

	13. 	RIGHTS
AND/OR BENEFITS ARISING OUT OF THE EMPLOYEE/ EMPLOYER RELATIONSHIP           AND THE
ABSENCE OF AN OBLIGATION TO EMPLOY

	 	13.1 	No
income or gain which shall be credited to or which purports to be credited to the grantee
as a result of the Plan, shall in any manner be taken into account in the calculation of
the basis of the grantee’s entitlements from the Company or any Related Company or
in the calculation of any social welfare right or other rights or benefits arising out of
the employee/employer relationship. If, pursuant to any law, the Company or any Related
Company, shall be obliged for the purposes of calculation of the said items to take into
account income or gain actually or theoretically credited to the grantee, the grantee
shall indemnify the Company or any Related Company, against any expense caused to it in
this regard. 

	 	13.2 	Nothing
in the Plan shall be interpreted as obliging the Company or any Related Company to employ
the grantee and nothing in the Plan or any option granted pursuant thereto shall confer
upon any grantee any right to continue in the employment of the Company or any Related
Company or restrict the right of the Company or any Related Company to terminate such
employment at any time. The grantee shall have no claim whatsoever against the Company or
any Related Company as a result of the termination of his employment, including, without
limitation, any claim that such termination causes any options to expire and/or prevents
the grantee from exercising the options and/or from receiving or retaining any shares
pursuant to any agreement between him and the Company, or results in any loss due to an
imposition, or earlier than anticipated imposition, of tax or other liability pursuant to
applicable law. 

14

	14.  	ADJUSTMENTS
UPON CHANGES IN CAPITALIZATION  

	 	14.1 	In
the event of changes in the outstanding share capital of the Company by reason of any
stock dividend (bonus shares), stock split, recapitalization, combination or
consolidation, the number of shares subject to each unexercised or unvested option and in
the Option Exercise Price of such options, shall be automatically adjusted to reflect
such changes. 

	 	14.2 	Notwithstanding
any other provisions of the Plan, the Board shall take such actions, if any, as it deems
appropriate for the adjustment of the number and class of shares subject to each
unexercised or unvested option and in the Option Exercise Prices in the event of an IPO,
exchange of shares, merger, liquidation, split-up, split-off, spin-off or other similar
occurrences or changes in capitalization, other than changes as specified in Section 14.1
above. In the event of any such event, the Board may make any adjustments it deems
appropriate, including in the aggregate number and class of shares available under the
Plan, and the Board’s determination in this regard shall be conclusive. 

	15.  	TERM,
TERMINATION AND AMENDMENT  

	 	
Unless
the Plan shall theretofore have been terminated as hereinafter provided, the Plan shall
terminate on, and no option shall be granted after, the tenth anniversary of the date the
Plan is adopted by the Board. The Plan may be terminated, modified or amended by the
shareholders of the Company. The Board may at any time terminate, modify or amend the Plan
in such respects as it shall deem advisable; provided,  however, that the
Board may not, without approval of a general meeting of the shareholders of the Company,
increase the maximum number of Ordinary Shares as to which options may be granted under
the Plan (except by adjustment pursuant to Section 14) or extend the termination date of
the Plan. Options granted prior to termination of the Plan may, subject to the terms of
the Plan and any Agreement, be exercised thereafter. No amendment or modification of the
Plan may, without the consent of the grantee to whom any option shall theretofore have
been granted, adversely affect the rights of such grantee under such option. 

	16.  	EFFECTIVENESS
OF THE PLAN  

	 	
The
Plan shall become effective as of the date determined by the Board.  

	17.  	RELEASE
OF THE TRUSTEE AND THE ATTORNEY FROM LIABILITY AND INDEMNIFICATION

	 	
In
no event shall the Trustee or the Attorney be liable to the Company and/or any grantee
under the Plan and/or any third party (including without prejudice to the generality of
the aforegoing, to the income tax authorities and any other governmental or administrative
authority), or to a purchaser of shares from any grantee with respect to any act which has
been or will be carried out in relation to the Plan, its execution and any matter
connected thereto or arising therefrom. The Company will not, and the grantee will be
required to covenant upon signing the Agreement that he will not, make any claim against
the Trustee or the Attorney in any manner whatsoever and on any ground whatsoever and they
expressly agree that if the Trustee or the Attorney are sued by them, then the Trustee or
the Attorney shall be entitled by virtue of this Section alone to apply to the court for
dismissal of the action against them with costs. The Company covenants and agrees that if
an action is commenced by any third party against the Trustee or the Attorney they shall
be entitled, without any objection on the Company’s part, to join the Company as a
third party to any action and a judgment against them will be paid by the Company. 

15

	 	
The
Company covenants and the grantee will be required to covenant to indemnify the Trustee
and/or the Attorney against any liability in relation to any claim and/or demand made
against the Trustee and/or the Attorney by any person whatsoever, including the tax
authorities, in relation to their acts or omissions in connection with the Plan. 

	18.  	GOVERNING
LAW  

	 	
The
Plan and all instruments issued thereunder shall be governed by and construed in
accordance with the laws of the State of Israel. 

16

 NEGEVTECH LTD.  

 Appendix A 

  to Negevtech Ltd.'s Employee Share Ownership

 and Option Plan 

 (Section 9.2) 

 NOTICE OF EXERCISE 

 Date:
______________ 

 The Trustee under the Negevtech Ltd.

Employee Share Ownership

and Option Plan (the "Plan") 

 Dear Sirs, 

 Re: Notice of Exercise  

 I hereby wish to inform you that it
is my desire that of the Option which was granted to you on ________ to acquire ______
(________) Ordinary Shares of Negevtech Ltd. (the “Company”) on my behalf, you
exercise and acquire on my behalf ______ (________) of the Ordinary Shares subject to the
said Option at a price of NIS ____ per share, all in accordance with the Plan. 

 Attached to this Notice is a check in
the amount of NIS ________ (NIS ________) as payment for the abovementioned shares. 

 I am aware that all the shares shall
be allotted to you, registered in your name and that you shall hold all the share
certificates representing such shares. 

 Likewise, I am aware of and agree to
all the other provisions of the Plan and applicable law. 

	 	 	 Yours sincerely,

_______________

                                                           Employee's name 

 NEGEVTECH LTD.  

 APPENDIX B 

 (Section 9.2 of the
Plan) 

 EXERCISE NOTICE 

 Date: ____________ 

 Negevtech Ltd.

Rechovot

 Dear Sirs, 

 By this notice I hereby exercise the
option granted to me for an employee of the company on ____________ to purchase _____
ordinary shares of Negevtech Ltd. on behalf of ____________ with respect to _____
ordinary shares in accordance with the said option at a price of NIS ____________
per share.  

 Enclosed herewith is a cheque in the
sum of NIS ____________ in payment for the said shares.  

 Yours faithfully, 

 _____________

The Trustee

2

 NEGEVTECH LTD.  

 
                                                      APPENDIX C

                                              (Section 10.2 of the Plan)
 

 IRREVOCABLE PROXY AND
POWER OF ATTORNEY 

 I, the undersigned, ___________,
hereby appoint Eli Lerner, CPA, or whomever shall replace him as trustee pursuant to
Negevtech Ltd.‘s Employee Share Ownership and Option Plan (2001), as amended 2003
& 2004 & 2005, or whomever they shall designate (the “Trustee” and the
“Plan”, respectively) as my proxy to participate and vote (or abstain) for me
and on my behalf as he at his sole discretion shall deem appropriate, on all matters at
all meetings of shareholders (whether ordinary, extraordinary or otherwise), of Negevtech
Ltd. (the “Company”), on behalf of all the shares and/or options of the Company
held by the Trustee on my behalf and hereby authorize and grant a power of attorney to
the Trustee as follows:  

 I hereby authorize and grant
power of attorney to the Trustee for as long as any shares and/or options which were
allotted or granted on my behalf are held by the Trustee or registered in his name, or
for as long as the certificates representing any shares are held by the Trustee, to
exercise every right, power and authority with respect to the shares and/or options and
to sign in my name and on my behalf any document (including any agreement, including a
merger agreement of the Company or an agreement for the purchase or sale of assets or
shares (including the shares of the Company held on my behalf) and any and all
documentation accompanying any such agreements, such as, but not limited to, resolutions,
decisions, requests, instruments, receipts and the like), and any affidavit or approval
with respect to the shares and/or options or to the rights which they represent in the
Company in as much as the Trustee shall deem it necessary or desirable to do so. In
addition and without derogating from the generality of the foregoing, I hereby authorize
and grant power of attorney to the Trustee to sign any document as aforesaid and any
affidavit or approval (such as any waiver of rights of first refusal to acquire shares
which are offered for sale by other shareholders of the Company and/or any waiver of any
preemptive rights to acquire any shares being allotted by the Company, in as much as such
rights shall exist pursuant to the Company’s Articles of Association as shall be in
existence from time to time) and/or to make and execute any undertaking in my name and on
my behalf if the Trustee shall, at his sole discretion, deem that the document, affidavit
or approval is necessary or desirable for purposes of any placement of securities of the
Company, whether private or public (including lock-up and/or market stand-off
arrangements and undertakings), whether in Israel or abroad, for purposes of a merger of
the Company with or into another entity, whether the Company is the surviving entity or
not, for purposes of any reorganization or recapitalization of the Company or for
purposes of any purchase or sale of assets or shares of the Company.  

 This Proxy and Power of Attorney
shall be interpreted in the widest possible sense, in reliance upon the Plan and upon the
goals and intentions thereof.  

3

 This Proxy and Power of Attorney
shall expire and cease to be of force and effect immediately after the consummation of
the initial public offering of the Company’s shares, pursuant to an effective
registration statement, prospectus or similar document in Israel or such other
jurisdiction as is determined by the Board of Directors of the Company and shall be
irrevocable until such time as the rights of the Company and the Company’s
shareholders are dependent hereon. The expiration of this Power of Attorney shall in no
manner affect the validity of any document (as aforesaid), affidavit or approval which
has been signed or given as aforesaid prior to the expiration hereof and in accordance
herewith.  

 This Proxy and Power of Attorney
shall also apply to all shares and/or options in other entities issued or granted to or
on behalf of the undersigned and held by the Trustee in consideration or in exchange for
any shares and/or options of the Company in connection with any consolidation or merger
or like transaction with respect to the Company, and the term “Company” when
used herein shall include any other such entity.  

 IN WITNESS WHEREOF, I have executed
this Proxy and Power of Attorney on     the __ day of ________, ____. 

 _____________________

_________

I.D Number ___________

 CONFIRMATION 

 I, the undersigned, ________, hereby
confirm the signature of _____________which appears above. 

 ___________________

4F-4/A

Exhibit 4.6  

AMENDED AND RESTATED
SHAREHOLDERS RIGHTS AGREEMENT 

THIS AMENDED AND RESTATED
SHAREHOLDERS RIGHTS AGREEMENT (the “Agreement”) is made as of July 20,
2007 by and among NEGEVTECH LTD., an Israeli corporation (the
“Company”), and the individuals and entities identified in
Schedule A annexed hereto, each hereinafter referred to individually as an
“Investor” and, collectively, as the “Investors”. 

W I T N E S S E T H: 

        WHEREAS,
the Company and the Prior Investors (as defined below) are parties to that certain
Shareholders’ Rights Agreement dated as of September 13, 2005, as amended on March
22, 2006 and on September 26, 2006  (the “Prior
Agreement”); and 

        WHEREAS,
the Investors, (which include certain of the Prior Investors) are parties to that certain
Series A1 Share Purchase Agreement of even date herewith between the Company and certain
of its shareholders (the “A1 Share Purchase Agreement”), pursuant to
which the Investors are purchasing Series A1 Preferred Shares of the Company; and 

        WHEREAS,
upon the Recapitalization and the Closing pursuant to the A1 Share Purchase Agreement (as
such terms are defined therein), all the Company’s preferred shares shall
automatically be converted into Ordinary Shares and any Prior Investor who shall become a
Participating Investor (as such term is defined in the A1 Share Purchase Agreement) shall
be issued, in lieu of such Ordinary Shares, Ordinary Preferred A Shares and/or Ordinary
Preferred B Shares, as the case may be and as provided therein; and 

        WHEREAS,
the Company and the Investors desire to amend and restate the Prior Agreement in
accordance with Section 12.4 of the Prior Agreement, to read as set forth herein; and 

        WHEREAS,
the Investors represent holders of at least a majority of the Registrable Securities
pursuant to the Prior Agreement and are therefore eligible, in accordance with Section
12.4 of the Prior Agreement, to amend the Prior Agreement as aforesaid; 

        NOW,
THEREFORE, in consideration of the mutual promises and covenants set forth herein, the
parties hereby agree that the Prior Agreement is hereby amended and restated in its
entirety, as follows: 

     1.    
          Definitions. For purposes of this Section: 

	  	1.1       
The
term “Articles of Association” means the Amended Articles of Association
of the Company in effect as of the date hereof, as may be amended from time to time.  

	  	1.2       
The
term “as-converted basis” means assuming the theoretical conversion of
all outstanding Preferred Shares into Ordinary Shares, at the then applicable conversion
ratio.  

	           	1.3       
The
term "Holder"  means a holder of Registrable Securities who is a party to this Agreement.  

	          	1.4       
The
term "Initiating Holders" means the holders of a majority of the Registrable
Securities then outstanding.  

	  	1.5       
The
term “IPO” shall mean the consummation of the Company’s first sale
of its shares to the public in a bona fide underwriting pursuant to a registration
statement under the Act.  

	  	1.6       
The
term “Major Shareholder” shall mean a holder of Preferred Shares holding
at least 2.5% of the issued and outstanding shares of the Company, on an as-converted
basis.  

	  	1.7       
The
term “Ordinary Shares” shall mean Ordinary Shares of the Company, par
value NIS 1 each.  

	  	1.8       
The
term “Ordinary Preferred A Shares” shall mean Ordinary Preferred A
Shares of the Company, par value NIS 1 each  

	  	1.9       
The
term “Ordinary Preferred B Shares” shall mean Ordinary Preferred B
Shares of the Company, par value NIS 1 each.  

	 	1.10       
The
term “Permitted Transferee” shall have the meaning given to it in the
Articles of Association.  

	  	1.11       
The
term “Preferred A1 Shares” shall mean Series A1 Preferred Shares of the
Company, par value NIS 1 each.  

	  	1.11       
The
term “Preferred Shares” shall mean the Ordinary Preferred A Shares, the
Ordinary Preferred B Shares and the Preferred A1 Shares.  

	  	1.12       
The
term “Prior Investors” shall mean the holders of all of the preferred
shares of the Company issued and outstanding immediately prior to the Closing and the
Recapitalization, as such terms are defined in the A1 Share Purchase agreement.  

	  	1.13       
The
term “Qualified IPO” shall mean the consummation of a firm commitment
underwritten public offering of the Company’s shares, with aggregate gross proceeds
to the Company of at least US$ 30,000,000, at an offering price per share representing a
pre-money valuation of the Company of at least US$130,000,000.  

	  	1.14       
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 United States Securities Act of 1933, as amended, or
similar securities act in a jurisdiction other than the U.S. (the “Act”),
and the declaration or ordering of effectiveness of such registration statement or
document.  

	  	1.15       
The
term “Registrable Securities” means (i) Ordinary Shares of the Company
held by an Investor and/or Plenus Technologies Ltd. (“Plenus”) including
any Ordinary Shares issued or issuable upon conversion of any Preferred Shares currently
held or hereafter acquired by an Investor and/or Plenus and all Ordinary Shares which an
Investor and/or Plenus may hereafter purchase pursuant to preemptive rights, rights of
first refusal, anti-dilution rights, or otherwise; and (ii) any Ordinary Shares issued
upon the conversion or exercise of any warrant, right or other security which is
currently held or hereafter acquired by an Investor; and (iii) any shares of the Company
issued as a dividend or in a share split or in connection with any other distribution
with respect to, or in exchange for or in replacement of, such Ordinary Shares described
in (i) and (ii) above.  

2

	  	1.16       
The
number of shares of “Registrable Securities then outstanding” shall be
determined by the number of shares of Ordinary Shares outstanding, calculated on an
as-converted basis, which are Registrable Securities.  

	  	1.17       
The
term “Form F-3” means such form under the Act as in effect on the date
hereof or substantially similar thereto and available to the Company and/or the Holders
or any registration form under the Act subsequently adopted by the United States
Securities and Exchange Commission (“SEC”) which permits inclusion or
incorporation of substantial information by reference to other documents filed by the
Company with the SEC.  

	  	1.18       
The
term “1934 Act” means the United States Securities and Exchange Act of
1934, as amended.  

	2.  	Demand
Registrations  

	  	2.1       
If
the Company shall receive at any time commencing six (6) months after the effective date
of the IPO, a written request from Initiating Holders, that the Company file a
registration statement under the Act for the registration of all or part of their
Registrable Securities, then the Company shall promptly give written notice of such
request to the other Holders, and the Company shall effect as soon as practicable, and in
any event shall use its best efforts to effect, within sixty (60) days of the receipt of
such request of the Initiating Holders, the registration under the Act of all Registrable
Securities (i) which the Initiating Holders requested to be registered as aforesaid and
(ii) of all Holders who wish to participate in such demand registration and provide the
Company with written requests for inclusion therein within twenty (20) days after the
receipt of the Company’s notice. No more than two (2) requests shall be made
pursuant to this Section 2.1. In no event shall the Company be required to effect more
than one demand registration in each six (6) month period.  

	  	2.2       
If
the Initiating Holders intend to distribute the Registrable Securities covered by their
request by means of an underwriting, they shall so advise the Company as a part of their
request made pursuant to this Section 2 and the Initiating Holders shall have the right
to propose the managing underwriter in any underwritten offering (and such proposal shall
include in general the proposed terms of the underwriting agreement and pricing of the
transaction), subject to the consent of the Company, which consent shall not be
unreasonably withheld, and shall not be withheld if it is the lead or co-lead from the
IPO or other prior registered offering or one of the top twenty underwriters by volume of
deals in the preceding twelve months. In the event that the Initiating Holders do not
propose a managing underwriter or the Company reasonably withholds consent to the
proposed managing underwriter, the Company shall have the right to designate the managing
underwriter(s) in any underwritten offering, subject to the consent of the Initiating
Holders, which consent shall not be unreasonably withheld.  

3

	  	2.3       
If
the underwriter of such offering determines that the number of shares requested by the
Holders is greater than the number of shares that may be underwritten, the number of
Registrable Securities that may be included in such registration shall be reduced
accordingly, and there shall be excluded from such registration to the extent necessary
to satisfy such limitation, first shares held by shareholders other than the Holders,
then shares which the Company may wish to register for its own account, and thereafter,
to the extent necessary, shares held by the Holders (pro rata to the respective number of
Registrable Shares then outstanding held by such Holders) and any Registrable Securities
excluded from such underwriting shall be withdrawn from the registration. A registration
statement shall not be counted as a request for the purpose of this Section 2 if, as a
result of an exercise of the underwriter’s cut-back provisions set forth herein,
less than 30% of the total number of Registrable Securities that Holders have requested
to be included in such registration statement are actually included.  

	3.  	Incidental
Registration  

	  	3.1       
At
any time after the IPO, if the Company proposes to register any of its stock or other
securities under the Act in connection with the public offering of such securities solely
for cash (other than registration statements pursuant to Section 2 above or relating to
employee benefit plans or with respect to corporate reorganization or other transactions
under Rule 145 of the Act), the Company shall, at such time, promptly give the Holders
written notice of such registration. Upon the written request of a Holder given within
twenty (20) days after receipt of such notice from the Company in accordance with the
notice provision of this Agreement, the Company shall use its best efforts to cause to be
registered under the Act all of the Registrable Securities that such Holder has requested
to be registered. In the event the Company shall grant to any shareholder the right to
register securities immediately upon the IPO of the Company, then the rights of the
Holders pursuant to this Section 3 shall be adjusted accordingly, and the Holders shall
be entitled to register Registrable Securities pursuant to this Section 3 immediately
upon IPO.  

	  	3.2       
In
connection with any offering involving an underwriting of shares of the Company’s
capital stock, the Company shall not be required under Section 3 to include any of a
Holder’s securities in such underwriting unless the Holder (i) agrees to the sale of
(including any restriction on the sale of) its securities on the basis provided in any
customary underwriting arrangements, including customary lock-up periods as required by
(x) the underwriters with respect to any shares, provided such period shall not exceed
the period of 180 days in respect of the IPO and 90 days in respect of any other offering
(provided that in such other offering at least 23% of the securities included in such
registration are Registrable Securities requested to be included by the Holders), and
provided that all senior employees, shareholders and management are subject to such
lock-up period unless the Holders of the majority of the Registrable Securities requested
to be registered therein agree in writing to waive such pre-condition or (y) applicable
law, or (z) stock exchanges; and (ii) provides any relevant information reasonably
requested and completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements, all reasonably requested, and other documents reasonably
requested, that are required under the terms of such underwriting arrangements and then
only in such quantity as the underwriters determine, in their sole discretion, will not
materially and adversely effect the success of the offering by the Company. If such
underwriters determine that the total amount of securities, including Registrable
Securities, requested by a Holder to be included in such offering could materially
adversely affect the success of such offering, then the Company shall be required to
include in such offering only that number of such securities, including Registrable
Securities, which the underwriters determine in their sole discretion will not materially
adversely affect the success of the offering, provided the Company will include in such
registration (i) first, the securities the Company proposes to sell, and (ii) second,
the Registrable Securities requested to be included in such registration, pro rata among
the Holders of such Registrable Securities on the basis of the number of Registrable
Securities owned by each holder of Registrable Securities participating in such
offering,; provided that in any event the Holders shall be entitled to register at least
23% of the securities to be included in any such registration.  

4

	4. 	Form
F-3 Registration.  

	 	
In
case the Company shall receive at any time commencing six (6) months (or any longer period
as required by law or regulation) after the effective date of the IPO from a Holder or
Holders of the Registrable Securities then outstanding a request or requests that the
Company effect a registration on Form F-3 and any related qualification or compliance
with respect to all or a part of the Registrable Securities owned by the Holder, the
Company shall promptly give written notice of such request to the other Holders and the
Company shall: 

	 	
Use
best efforts to effect, as soon as practicable, such registration and all such
qualifications and compliances as may be so requested and as would permit or facilitate
the sale and distribution of all of the Holder’s Registrable Securities as are
specified in such request and all Registrable Securities held by such Holders who wish to
participate in such demand registration and provide the Company with written requests for
inclusion therein within fifteen (15) days after the receipt of the Company’s notice;
provided, however, that the Company shall not be obligated to effect any such
registration, qualification or compliance, pursuant to this section 4: 

	 	(i)	       if
Form F-3 is not available for such offering by the Holder; or 

	 	(ii)	       in
any particular jurisdiction in which the Company would be required to qualify
               to do business or to execute a general consent to service of process in
               effecting such registration, qualification or compliance; or 

	 	(iii)	       the
requested registration would have an aggregate offering price of all
               Registrable Shares sought to be registered, net of underwriting discounts
and                commissions, below $1,500,000. 

	 	
Subject
to the foregoing, the Company shall file a registration statement covering the Registrable
Securities as soon as practicable after receipt of the request of a Holder as aforesaid. 

5

	5.  	Obligations
of the Company.  

	 	
Whenever
required under this Agreement to effect the registration of any Registrable Securities,
the Company shall, as expeditiously as reasonably possible: 

	 	5.1        
Prepare
and file with the SEC a registration statement with respect to such Registrable
Securities and use its best efforts to cause such registration statement to become
effective, and, upon the request of the Holders, keep such registration statement
effective for up to one hundred and twenty days or, if sooner, until the distribution
contemplated in the Registration Statement has been completed.  

	  	5.2       
Prepare
and file with the SEC such amendments and supplements to such registration statement and
the prospectus used in connection with such registration statement as may be necessary to
comply with the provisions of the Act with respect to the disposition of all securities
covered by such registration statement.  

	  	5.3       
Furnish
to the Holders and each duly authorized underwriter such number of authorized copies of a
prospectus, including copies of a preliminary prospectus, in conformity with the
requirements of the Act, and such other documents as they may reasonably request in order
to facilitate the disposition of Registrable Securities owned by the Holders.  

	  	5.4       
Use
its best efforts to register and qualify the securities covered by such registration
statement under such other securities or Blue Sky laws of such jurisdictions as shall be
reasonably requested by the Holders of Registrable Securities covered by such
registration statement, provided that the Company shall not be required in connection
therewith or as a condition thereto to qualify to do business or to file a general
consent to service of process in any such states or jurisdictions.  

	  	5.5       
In
the event of any underwritten public offering, enter into and perform its obligations
under an underwriting agreement, including indemnification and other customary
provisions, in usual and customary form, with the managing underwriter of such offering.
If a Holder shall participate in such underwriting he shall also enter into and perform
its obligations under such an agreement.  

	         	  5.6       
Notify
the Holders of Registrable Securities covered by such registration statement: 

	 	(i) 	promptly
after the Company shall receive notice thereof, of the time when such
               registration statement becomes effective or when any amendment or
supplement or                any prospectus forming a part of such registration statement
has been filed; 

	 	(ii) 	promptly
of any request by the SEC for the amending or supplementing of such
               registration statement or prospectus for additional information; 

	 	(iii) 	at
any time when a prospectus relating thereto is required to be delivered under
               the Act, of the happening of any event as a result of which the prospectus
               included in such registration statement, as then in effect, includes an
untrue                statement of a material fact or omits to state a material fact
required to be                stated therein or necessary to make the statements therein
not misleading in the                light of the circumstances then existing. 

6

	  	5.7       
Advise
a Holder if his Registrable Shares are included in such registration statement promptly
after the Company shall receive notice or otherwise obtain knowledge of the issuance of
any order by the SEC suspending the effectiveness of such registration statement or
amendment thereto or of the initiation or threatening of any proceeding for that purpose;
and promptly use its best efforts to prevent the issuance of any stop order or to obtain
its withdrawal promptly if a stop order should be issued;  

	 	5.8       
Use
its best efforts to furnish, at the request of a Holder in the event he is requesting
registration of Registrable Securities pursuant to this Agreement on the date that such
Registrable Securities are delivered to the underwriters for sale in connection with a
registration pursuant to this Agreement, if such securities are being sold through
underwriters, on the date that the registration statement with respect to such securities
becomes effective, (i) an opinion, dated such date, of the counsel representing the
Company for the purposes of such registration, in form and substance as is customarily
given to underwriters in an underwritten public offering, addressed to the underwriters,
if any, and to a Holder in the event he is requesting registration of Registrable
Securities and (ii) a letter dated such date, from the independent certified public
accountants of the Company, in form and substance as is customarily given by independent
certified public accountants to underwriters in an underwritten public offering,
addressed to the underwriters, if any, and to a Holder in the event he is requesting
registration of Registrable Securities.  

	 	
Notwithstanding
anything to the contrary in this Agreement, the Company shall not be obligated to effect
any registration pursuant to this Agreement: (i) within a period of one hundred eighty
(180) days following the effective date of a previous registration of the Company’s
securities and (ii) if the Company shall furnish to the Holders a certificate signed by
the Chairman of the Board of the Company stating that in the good faith judgment of the
Board of Directors of the Company, it would be seriously detrimental to the Company and
its shareholders for such registration to be effected at such time, in which event the
Company shall have the right to defer the filing of the registration statement for a
period of not more than one hundred twenty (120) days after receipt of the request of a
Holder under this Agreement; provided, however, that with respect to a registration
requested pursuant to Sections 2 or 4 above: (A) the Company shall not utilize this right
more than once in any twelve (12) month period; (B) the Company shall not register any
securities for the account of itself or any other stockholder during such one hundred
twenty (120) day period other than S-8 registration or the like, and (C) if the Initiating
Holders disapprove of the deferral of the registration, they may elect to withdraw their
demand by written notice to the Company, in which case such registration, if effected,
shall not be counted for the purpose of Section 2. 

7

	6.  	Expenses
of Registration  

	 	
All
expenses (other than underwriting discounts, fees and commissions) incurred in connection
with registrations, filings or qualifications pursuant to Sections 2, 3 and 4, including
(without limitation) all registration, filing and qualification fees, printers’ and
accounting fees, fees and disbursements of counsel for the Company, and the reasonable
fees and disbursements of one counsel for the selling Holders (the “Registration
Expenses”) shall be borne by the Company; provided, however, that the Company
shall not be required to pay for any expenses of any registration proceeding begun
pursuant to Section 2 if the registration request is subsequently withdrawn at the request
of Holders of the majority of the Registrable Securities to be so registered (in which
case the Holder shall bear such expenses), unless such Holders agree to forfeit their
right to the demand registration pursuant to Section 2; provided further, however that if
at the time of such withdrawal, the Holders have learned of a material adverse change in
the condition, business or prospects of the Company from that known to the Holders at the
time of the request and have withdrawn the request with reasonable promptness following
disclosure by the Company of such material adverse change or in the event that the Holders
have withdrawn their registration request in accordance with the second paragraph of
Section 5.8, then the Holders shall not be required to pay any of such expenses and shall
retain their rights pursuant to Section 2. All underwriting discounts, fees and
commissions applicable to the sale of Registrable Securities and pursuant to this
Agreement shall be borne by the holders of such Registrable Securities, pro rata on the
basis of the number of shares sold in the respective offering. 

	7.  	Indemnification.
In the event any Registrable Securities are included in a registration
statement pursuant to this Agreement:  

	  	7.1       
To
the extent permitted by law the Company will indemnify and hold harmless each of the
Holders, any underwriter (as defined in the Act) for the Holders, each of their
directors, shareholders, partners and officers, and legal counsel and independent
accountants, and each person, if any, who controls such Holder within the meaning of the
Act or the 1934 Act (collectively and individually referred to as the “Indemnified
Party”) against all claims, losses, damages and liabilities (joint or several)
(or actions in respect thereof) arising out of or based on any of the following
statements, omissions or violations: (i) untrue statement (or alleged untrue statement)
of a material fact contained in any such registration statement, prospectus or any
amendments or supplements thereto, offering circular or other document; or (ii) any
omission (or alleged omission) to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading; or (iii) any
violation (or alleged violation) by the Company of the Act or any other securities laws,
and will reimburse such Indemnified Party for any legal or any other expenses reasonably
incurred by them in connection with investigating, preparing or defending any such loss,
claim, damage, liability, or action as such expenses are incurred; provided, however, (i)
that the Company will not be liable to an Indemnified Party in any such case to the
extent that any such loss, damage, liability, cost or expense arises out of or is based
upon an untrue statement or omission in such registration statement, prospectus, offering
circular or other document in reliance upon and in conformity with written information
furnished to the Company by an instrument duly executed by such Indemnified Party, and
stated to be specifically for use therein; and (ii) that the indemnity agreement
contained in this subsection 7.1 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.  

8

	 	7.2       
To
the extent permitted by law, each Holder , in the event that his Registrable Securities
are included in such registration, will indemnify the Company, each of its directors and
officers and its legal counsel and independent accountants, each underwriter, if any, of
the Company’s securities covered by such registration statement, each other Holder
selling Registrable Securities in such registration and each person who controls the
Company, such underwriter or such other Holder within the meaning of the Act, against all
claims, losses, damages and liabilities (or actions in respect thereof) arising out of or
based on any untrue statement (or alleged untrue statement) of a material fact contained
in any such registration statement, prospectus, offering circular or other document, or
any omission (or alleged omission) to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and will reimburse
the Company, such directors, officers, persons, underwriters, Holders, or control persons
for any legal or any other expenses reasonably incurred in connection with investigating
or defending any such claim, loss, damage, liability or action, in each case to the
extent, but only to the extent, that such untrue statement (or alleged untrue statement)
or omission (or alleged omission) is made in such registration statement, prospectus,
offering circular or other document in reliance upon and in strict conformity with
written information furnished to the Company by an instrument duly executed by such
Holderand stated to be specifically for use therein; provided, however, that the
obligations of such Holder hereunder shall be limited to an amount equal to the proceeds
(net of underwriters discounts, fees and commissions) to such Holder from the sale of
Registrable Securities sold by such Holder pursuant to such registration and provided
further that the indemnity agreement contained in this subsection 7.2 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 such Holder, which consent shall not be
unreasonably withheld.  

	 	7.3       
If
recovery is not available under the foregoing indemnification provisions, for any reason
other than as specified therein, the parties entitled to indemnification by the terms
thereof shall be entitled to contribution to liabilities and expenses as more fully set
forth in an underwriting agreement to be executed in connection with such registration.
In determining the amount of contribution to which the respective parties are entitled,
there shall be considered the parties’ relative knowledge and access to information
concerning the matter with respect to which the claim was asserted, the opportunity to
correct and prevent any statement or omission, and any other equitable considerations
appropriate under the circumstances. In no event shall the liability of a Holder exceed
the proceeds (net of underwriters discounts, fees and commissions) from the offering
received by such Holder.  

	  	7.4       
Promptly
after receipt by an indemnified party under this Section 7 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
7, deliver to the indemnifying party a written notice 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
which may be represented without conflict by one counsel) shall have the right to retain
one separate counsel, with the fees and expenses to be paid by 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 deliver written notice to the indemnifying party within a reasonable time of
the commencement of any such action, shall not relieve the indemnifying party of its
obligations hereunder except to the extent such failure results in a lack of timely
actual knowledge by the indemnifying party and the indemnifying party suffers actual
damage as a result thereof or actual prejudices to its ability to defend such action.  

9

	  	7.5       
The
obligations of the Company and the Holders under this Section 7 shall survive the
completion of any offering of Registrable Securities in a registration statement under
this Agreement, and otherwise.  

	8.  	Reports
Under the 1933 Act.  

	 	
In
the event the Company becomes subject to reporting under the 1934 Act, then with a view to
making available to the Holders the benefits of Rule 144 promulgated under the Act and any
other rule or regulation of the SEC that may at any time permit a Holder to sell
securities of the Company to the public without registration or pursuant to a registration
on Form F-3, the Company agrees to: 

	  	8.1       
make
and keep public information available, as those terms are understood and defined in SEC
Rule 144, at all times after ninety (90) days after the effective date of first
registration statement filed by the Company for the offering of its securities to the
general public;  

	  	8.2       
take
such action, including the voluntary registration of its Ordinary Shares under Section 12
of the 1934 Act, as is necessary to enable the Holders to utilize Form F-3 for the sale
of their Registrable Securities.  

	  	8.3       
file
with the SEC in a timely manner all reports and other documents required of the Company
under the Act and the 1934 Act; and  

	 	8.4        
furnish
to each Holder, so long as such Holder owns any Registrable Securities, forthwith upon
request (i) a written statement by the Company that it has complied with the reporting
requirements of SEC Rule 144 (at any time after ninety (90) days after the effective date
of the first registration statement filed by the Company), the Act and the 1934 Act (at
any time after it has become subject to such reporting requirements), or that it
qualifies as a registrant whose securities may be resold pursuant to Form F-3 (at any
time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of
the Company and such other reports and documents so filed by the Company, and (iii) such
other information as may be reasonably requested in availing the Holder of any rule or
regulation of the SEC which permits the selling of any such securities without
registration or pursuant to such form.  

	9.  	Assignment
of Registration Rights and Grant of Additional Rights.  

10

	 	9.1       
The
rights to cause the Company to register Registrable Securities pursuant to this Agreement
may be assigned (but only with all related obligations) by a Holder to a transferee or
assignee of such securities, provided that such transfer or assignment is made pursuant
to the provisions of the Articles of Association and in accordance with any provisions
relating to transfer and/or assignment of such securities appearing in the relevant Share
Purchase Agreement and/or in this Agreement, and provided further that the Company is,
within a reasonable time after such transfer, furnished with written notice of the name
and address of such transferee or assignee and the securities with respect to which such
registration rights are being assigned and such transferee or assignee consents to be
subject to this Agreement.  

	 	9.2       
From
and after the date of this Agreement, the Company shall not, without the prior written
consent of the holders of at least 60% of the Registrable Securities then outstanding
enter into any agreement with any holder or prospective holder of any securities of the
Company that would allow such holder or prospective holder (a) to include such
securities in any registration filed under this Agreement, unless under the terms of such
agreement, such holder or prospective holder may include such securities in any such
registration only to the extent that the inclusion of such securities will not reduce the
amount of the Registrable Securities of the Holders that are included or (b) to
demand registration of their securities, including, without limitation, on Form F-3.  

	9A.  	Termination
of Registration Rights  

	 	
Notwithstanding
anything to the contrary contained in this Agreement or otherwise, the registration rights
granted pursuant to the provisions of Sections 2, 3 and 4 hereunder shall terminate and
shall be of no further force and effect five years following the IPO, regardless of any
Rule 144 availability. 

	10.  	Covenants
of the Company.  

	  	10.1       
Delivery
of Financial Statements. 

	 	
Until
a Qualified IPO, the Company shall deliver to each Major Shareholder the following reports
in English (and with respect to the reports listed in subsections (a) and (b) below also
to Intel Atlantic,  Inc. (“Intel”) for so long as it holds
Preferred Shares of the Company): 

	 	
(a)
as soon as practicable, but in any event within forty-five (45) days after the
                    end of each fiscal year of the Company, consolidated financial
statements                     audited and certified by independent public accountants of
the Company which are                     associated with one of the “Big Four” US
accounting firms, prepared in                     accordance with US generally accepted
accounting principals with reconciliation                     to Israeli GAAP. 

	 	
(b)
 as soon as practicable, but in any event within thirty (30) days of the end of
                    each quarter, consolidated financial quarterly reports, reviewed by
independent                     public accountants of the Company, prepared in US Dollars
in accordance with                     generally accepted accounting principles.  

	 	
(c)
                                        as soon as practicable, but in no event later
than 30 days prior to the                     beginning of each year, revised twelve
month forward prospective budgets,                     including detailed quarterly
financial projections for such twelve months period                     (hereinafter
referred to as “Annual Budget”).  

11

	 	
(d)
                     monthly reports and other reports regarding the Company’s
operation, in                     such format, and containing such information as the
Board of Directors shall                     require (including at least a business
update and overview, profit and loss and                     cash-flow statements) within
reasonable time, not to exceed 30 days, from the                     end of each calendar
month.  

	 	
(e) Such other information as may reasonably be requested by such Major
                    Shareholder.  

	 	
(f)
                     In addition, if an Investor reasonably determines, that being a
publicly traded                     company or an affiliate of a publicly traded company,
it requires additional                     financial information in respect of the
Company in order to timely publish the                     reports of the Investor and/or
of such affiliated company(ies), the Company                     shall promptly provide
the Investor with financial information with respect to                     the Company,
and such reports may be attached to the reports published by the
                    Investor or such affiliated companies, to the extent required by law.  

	 	10.2        
Delivery
of Work Plan and Annual Budget  

	 	
No
later than November 30 of each year, the Company shall submit to the Board of Directors
the annual Work Plan and the Annual Budget for the forthcoming calendar year. 

	  	10.3       
Visitation
Rights  

	 	
During
the regular working hours and upon reasonable advance notice, each Major Shareholder shall
have full access to all books and records of the Company, shall be entitled to review and
copy them at their discretion, and shall be entitled to visit and inspect the
Company’s property, inspect its assets and consult with the management of the
Company, providing that in exercising such rights no information shall be disclosed to the
Major Shareholders, the disclosure of which in the discretion of the Board of Directors of
the Company, might cause damage to the business of the Company as contemplated in the
Updated Work Plan (as defined in the A1 Share Purchase Agreement). The provisions of this
Agreement and of the respective Share Purchase Agreements regarding the Investors’
undertakings of confidentiality or any separate non-disclosure agreement executed by any
Investor shall apply, mutatis mutandis, to any information disclosed to the Major
Shareholders pursuant to the rights set out under this Section 10.3. 

	  	10.4       
Patents.  

	 	
Unless
the Board of Directors shall deem otherwise appropriate for the Company, the Company will
take all reasonable steps necessary to initiate/continue the prosecution of its patent
applications and to maintain any patents granted thereon. 

	  	10.5       
Auditors
and Internal Auditor.  

	 	
The
Company shall maintain the services of: (i) one of the “big four” accounting
firms or one of their respective affiliates as independent auditors of the Company, and
(ii) an internal auditor, such appointments and their respective terms to be approved by
the Board of Directors of the Company, subject to applicable law. 

12

	11.  	Confidentiality.  

	 	
From
time to time, the parties may make available to each other, in written form or orally,
information of a confidential and proprietary nature including, but not limited to,
technology, technical, test and analysis data, specifications, prototypes, marketing,
application, financial, bookkeeping, business, and customer information. The parties shall
not disclose such information to others or use such information without the prior written
consent of the disclosing party or as necessary to carry out the terms of this Agreement.
Each party shall treat such information with the same care as it would exercise in the
handling of its own confidential or proprietary information and shall obtain reasonable
assurances that each person to whom such information is disclosed, will hold such
information in confidence. Confidential information as referred to in this Section 11
shall not include information (i) which is or becomes public knowledge through no fault of
the receiving party; (ii) which is known to the receiving party on a non-confidential
basis at the time of disclosure by the disclosing party, as evidenced by the receiving
party’s written records; (iii) which is disclosed to the receiving party on a
non-confidential basis by a third party having no obligation of secrecy to the disclosing
party; or (iv) which is subsequently independently developed by or for the receiving party
without use of confidential information. Notwithstanding the aforesaid: (i) a party shall
be entitled to disclose confidential information which it is required to disclose under
any applicable law or stock exchange regulations, provided, however, that such disclosure
is made to the minimum extent required and provided that a prior notice of disclosure is
given to the disclosing party and sufficient opportunity to limit or contest such
disclosure; (ii) a party shall be entitled to disclose confidential information to any
person or entity to which such party transfers or considers transferring securities in the
Company, subject to a standard undertaking not less strict than the undertaking set out
herein, and (iii) in connection with periodic and financial reports to its shareholders,
investors or partners, each party may make general statements regarding the nature and
progress of the Company’s business, and may provide summary financial information of
the Company. The provisions of this Section 11 shall not apply to Intel. Instead, the
terms of Section 3 (“Confidentiality”) of the Intel Side Agreement by and
between the Company, Intel and additional parties, dated July 2002, shall continue to
apply with respect to Intel (and this Agreement shall be deemed a “Financing
Agreement” for the purpose of said Section 3). 

	12.  	Miscellaneous  

	  	12.1       
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 full effect
to the provisions of this Agreement and the intentions of the parties as reflected
thereby.  

	  	12.2       
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,
and the parties hereto irrevocably submit solely to the jurisdiction of the Courts of Tel
Aviv, in respect of any dispute or matter arising out of or connected with this
Agreement.  

	 	12.3        
Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the
Company, the Investors and the respective successors and permitted assigns of the
Investors. The parties may not assign any of there rights or obligations under this
Agreement without the prior written consent of the other parties unless such rights or
obligations are assigned together with the shares to which they relate and the assignee
undertakes in writing to be bound by the provisions hereof.  

13

	  	12.4       
Entire
Agreement; Amendment and Waiver; Headings; Preamble and Schedules. This Agreement and
the Schedules and Exhibits hereto constitute the full and entire understanding and
agreement between the parties with regard to the subject matters hereof and thereof. The
Prior Agreement (including, for the avoidance of doubt, all amendments thereof) is hereby
terminated in its entirety and shall be of no further force or effect. Any term of this
Agreement may be amended or terminated 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 the Company and the holders of at least 60% of
the Registrable Securities then outstanding. All article and section headings are
inserted for convenience only and shall not modify or affect the construction or
interpretation of any provision of this Agreement. The preamble and schedules to this
Agreement are incorporated herein and form an integral part of this Agreement.  

	  	12.5       
Notices
Unless otherwise provided, any notice required or permitted under this Agreement
shall be given in writing, shall be effective when given, and shall in any event be
deemed to be given upon receipt or, if earlier, (a) five (5) days after the day of
deposit with a National Post Office, if delivered by first class mail, postage prepaid,
if addressed to a party in the same country or fourteen (14) after deposit with a
National Post Office, if delivered by first class mail, postage prepaid, if addressed to
a party in a different country, (b) upon delivery, if delivered by hand (c) five (5) days
after the day of deposit with recognized overnight courier service freight prepaid or (d)
two (2) days after the business day of facsimile transmission, if delivered by facsimile
transmission with a copy by first class mail, postage prepaid, and each notice shall be
addressed to the party to be notified at the address set forth in this section as
follows:  

	 	
For
the Company.  

			
	 	Negevtech Ltd.	 
	 	attn:	CEO
	 	address:	Beit Tamar
	 	 	12 Hamada St.
	 	 	Rehovot 76122

			
	 	tel:	08-9312222
	 	fax:	08-9366051

	 	
For
the Investors: 

	 	
as
set forth on Schedule A hereto:  

	 	
or
at such other address as such party may designate by written notice to the other parties.  

14

	  	12.6       
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 theretofore 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.  

	  	12.7       
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.  

	  	12.8       
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.  

	  	12.9       
Aggregation
of Holdings. For purposes of determining the availability of any right, the
computation of shareholdings or the applicability of any limitation under this Agreement,
each Investor’s holdings in the Company and the holdings of any of its Permitted
Transferees shall be aggregated, and the aggregate holdings shall be considered to be
held by such Investor and its Permitted Transferees as a single shareholder.  

[Remainder of Page Intentionally
Left Blank]  

15

IN WITNESS WHEREOF, the
parties have executed this Shareholders’ Rights Agreement as of the date first above
written. 

Negevtech Ltd. 

		
	By: 	1)  
——————————————
                                    title 

		
	  	2)  
——————————————
                                    title 

[SIGNATURE PAGE TO SHAREHOLDERS
RIGHTS AGREEMENT DATED JULY 2007] 

16

IN WITNESS WHEREOF, the
parties have executed this Shareholders’ Rights Agreement as of the date first above
written. 

INVESTORS:

[SEE SEPARATE SIGNATURE
PAGES]  

[SIGNATURE PAGE TO SHAREHOLDERS
RIGHTS AGREEMENT DATED JULY 2007]

17

SCHEDULE A  

Investors and Addresses  

	Investor	Address
	Pitango Venture Capital Fund III (Israeli Sub) L.P.	11 HaManofim Street Bldg. B Herzliya 46725, Israel
	Pitango Venture Capital Fund III (Israeli Sub.) Non-Q L.P.
	Pitango Venture Capital Fund III (Israeli Investors) L.P.
	Pitango Parallel Investor Fund III (Israel), L.P.
	Pitango Principles Fund III (Israel) L.P.
	Pitango Venture Capital Fund III Trusts 2000 Ltd.
	Shrem, Fudim, Kelner Founders Group II L.P. 	21 Ha'arbaa Street Tel Aviv 64739, Israel
	Shrem Fudim Kelner & Co. Ltd.
	Shrem Fudim Kelner Founders Group II Annex Fund L.P.
	SVE Star Ventures Enterprises GmbH & Co. No. IX KG.	Star Ventures Management
Possartstrasse 9  
D-81679 Munich 
Germany 
Contact: Nicolas Sammartino
	Star  Growth  Enterprise,  a German  Civil Law  Partnership (with limitation of liability
	SVM Star Ventures Managementgesellschaft mbH Nr. 3
	Star Management of Investments No. II (2000) L.P.	SVM Star Venture Capital Management Ltd. 
11 Galgaley Haplada St.,
 P.O. Box 12600, 
Herzelia Pituach, 46733, Israel.
 Contact: Tami Gilboa-Arbel     
	Genesis Partners II, L.D.C.	Ackerstein Towers B
11 HaMenofim St 
Herzliya, 46733 
Israel 
	Genesis Partners II (Israel), L.P.
	Poalim Ventures Ltd.	Alrov Tower, 46 Rothschild Blvd, Tel Aviv 66883, Israel
Number  for  notices   being   delivered  by   facsimile:
03-5675760    
	Poalim Ventures I Ltd.
	Poalim Ventures II L.P.
	Wellington Partners Venture III Technology Fund L.P.	Theresienstrasse 6, 80333 Muenchen, Germany
	Amadeus III  	Mount Pleasant House 
2 Mount Pleasant   
Cambridge 
CB3 0RN
	Amadeus III Affiliates Fund L.P.  	2711 Centerville Road
Suite 400, Wilmington,  
New Castle County,   
 Delaware 19808    

18

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