Document:

Exhibit 10.1

                       MEMORANDUM OF UNDERSTANDING ("MOU")

     Made and entered in ______________ on _____July 2003 ("Effective Date")

Between:

Netafim (A.C.S.) Ltd., a cooperative society incorporated under the laws of the
State of Israel and having its registered address at 161 Arlozorov Street,
Tel-Aviv, Israel ("Netafim"); and between:

OrganiTECH U.S.A. Inc., a public company incorporated under the laws of Deleware
and having its registered address at P.O.Box 133, Nesher 36601 ("OTUS"); and
between:

Organitech Ltd., a private limited company incorporated under the laws of the
State of Israel, and having its registered address at P.O.Box 133, Nesher 36601
("OTI");

Preamble

Whereas     Netafim is engaged in the business of manufacturing, developing,
            marketing, distributing and selling worldwide irrigation products
            and advanced agricultural solutions inter alia for greenhouses; and

Whereas     OTUS is an American Company, duly registered in the state of
            Delaware, U.S.A., that fully owns Organitech Ltd. (the "OTI"), and

Whereas     OTI is an Israeli private limited company that holds and possesses
            IP and know how in a range of agricultural technologies, including
            automated machines for growing leafy vegetables and other growths
            using hydrophonics method; and

Whereas     OTUS, OTI and Netafim wish to collaborate together in relation to
            their respective greenhouse technologies and to that end OTUS and
            OTI are interested that Netafim will provide OTI certain products
            and services, including without limitation, R&D, agronomic support,
            manufacturing, marketing and distribution services ("Services"), and
            Netafim is willing to provide such Services to OTI, all in
            accordance with the terms and conditions of this MOU; and

Whereas     OTI has encountered financial difficulties and require intermediate
            funding, and Netafim wishes to provide OTI with such funding against
            receipt of shares in OTI, all in accordance with the provisions of
            this MOU.

<PAGE>

                  Now therefore, the parties agree as follows:

First Period - from execution of Agreement(s) and not later than 31 December
2003

      Funding

      1.    Netafim will finance the activities of OTI in the amount of $100,000
            by not later than 31 December 2003, according to an agreed business
            plan, detailed working plan and budget (the "Netafim's Capital"),
            which shall be annexed to this MOU as Annex A, within 30 days from
            the Effective Date. Netafim's Capital will be used only for OTI's
            operations and will not serve to pay any debts or liabilities of
            OTUS.

      Services

      2.    Upon execution of this MOU and until 31 December 2003, Netafim will
            also provide the Services to OTI at an agreed upon cost based on
            Fair Market Value to be determined in accordance with Netafim's
            prices to other affiliates.

      Consideration

      3.    In consideration for Netafim's Capital as well as the cost of the
            Services, OTI shall issue shares to Netafim, at a price per share
            based on the post-money valuation of $1,176,471 ("Share Price") by
            not later than December 31, 2003 ("First Period Shares"). Netafim
            will have full-ratchet anti-dilution protection if OTI issues any
            shares or convertible securities at a price lower than the Share
            Price.

      Loan

      4.    Notwithstanding any other provisions set forth herein, it is hereby
            agreed between the Parties that in the event that: (i) this MOU
            terminates pursuant to the provisions of Section 16 hereto prior to
            the execution of the Agreement(s); or (ii) Netafim chooses not to
            exercise its right with respect to the Second Period Shares, any and
            all Netafim's Capital as well as Services invested in OTI up to such
            time shall be considered to constitute a shareholder's loan to be
            returned by OTI to Netafim (the "Loan"), as follows:

            (a)   The Loan shall be repaid to Netafim in six monthly equal
                  installments, the first of which shall be paid within 30 days
                  from the date of occurrence of any of the foregoing. Each
                  payment shall include principal + corresponding portion of
                  interest.

            (b)   The Loan, or any part thereof, shall bear interest at an
                  annual rate of 5%.

<PAGE>

            (c)   The Loan shall be linked to the exchange rate of US Dollar.

Second Period - from end of First Period and until holding by Netafim of 51% of
issued and outstanding shares of OTI

      Controlling Interest

      5.    At the election of Netafim, OTI shall issue shares to Netafim such
            that after such transfer or issue respectively, together with the
            shares received or issued in the First Period as specified in
            paragraph 3 above, Netafim shall hold 51% of the issued and
            outstanding shares of OTI, on a fully diluted basis, all subject to
            the provisions specified in paragraph 5 below ("Second Period
            Shares"). Netafim's said right may be exercised at any time prior to
            December 31, 2003 at a price per Second Period Share(s) equal to the
            Share Price. The Share Price will be subject to anti-dilution
            adjustment so that the price to be paid (cost of the Services) by
            Netafim will not exceed the share price of the most recent
            investment in OTI.

      6.    The Second Period Shares will be held in escrow by Netafim's
            independent lawyer(s) ("Escrow Agent") to secure full payment of the
            price, which will not bear interest. The price will not be paid in
            cash but rather Netafim will provide Services to OTI in an aggregate
            amount of $500,000 (including the cost of the Services provided by
            Netafim during the First Period) by no later than 31 December 2006,
            all as described in Annex B to this MOU. Each month, a corresponding
            proportion of the Second Period Shares will be released to Netafim
            by the Escrow Agent. Notwithstanding the foregoing, Netafim will
            have full voting control of the Second Period Shares, as long as
            Netafim does not default on the supply of the Services.

      Management Fees

      7.    Upon the approval of the financial reports of OTI for year 2004, OTI
            shall pay OTUS management fees in a conclusive and final amount
            representing 10% of the net revenues received in effect by OTI for
            the sale of OTI Products only as shall be determined in the
            Agreement.

<PAGE>

Special Provisions

      8.    Netafim will at all times have a right of first refusal to purchase
            any shares of OTI sold or otherwise transferred by OTUS. OTI shares
            shall have "tag-along" and/or "bring-along" rights attached to them,
            and said may be exercised in the event that Netafim chooses not to
            exercise its right of first refusal.

      9.    After exercise of Netafim's right with respect to the Second Period
            Shares, Netafim shall have the right to appoint a majority of the
            directors of OTI as well as the management of OTI and its auditors
            and legal counsel.

      10.   In the event that the operations of OTI will require funding
            additional to Netafim's Capital ("Working Capital"), the Parties
            will contribute the Working Capital pro-rata to their holdings, and
            any such contribution shall constitute a shareholders loan. A Party
            that fails to provide its pro-rata additional contribution within 6
            months from the call date, shall have its holdings diluted.

      11.   From the date of the Agreement until December 31, 2003 OTI will
            operate in the ordinary course of business and any material action
            or resolution will require the prior written consent of Netafim.

      12.   From the date of the Agreement until December 31, 2003, OTI will
            allow Netafim to conduct an extensive due diligence of all aspects
            of OTI and will allow Netafim and its representatives full access to
            its premises, employees, suppliers and customers for this purpose.
            Furthermore, during this period Netafim will have the right to
            receive all documents and information provided to directors of OTI
            and OTUS.

      13.   Following exercise of Netafim's right with respect to the Second
            Period Shares, Netafim will have the right to continue to supply
            Services to OTI at a pre-determined cost as set out in the
            Agreement.

      14.   Netafim will continue to employ the senior personnel of OTI (CEO,
            Marketing Manager and Secretary) for a period of at least 12 months
            from the date of the Agreement.

Prerequisite Conditions

      15.   It is agreed that this MOU and Netafim's obligations hereunder,
            shall come into force subject to and provided that all the following
            prerequisites were met by OTUS and OTI:

            (a)   That OTUS and/or OTI shall immediately upon the execution of
                  this MOU terminate the following agreements: (i) the
                  distribution agreement with Agronaut Pte Ltd. of 27 August
                  2002; and (ii) the services agreement with Bio-B S'de Eliyahu
                  Ltd. of 3 December 2002; and (iii) the securities

<PAGE>

                  purchase agreement with B.L.M. N.V. of 16 June 2002, and
                  provide Netafim with written confirmations from all concerned
                  parties to the effect that said do not have any claims and/or
                  demands and/or actions against OTUS and/or OTI.

            (b)   That OTUS and/or OTI terminate the foundation agreement with
                  Zion Levy and Ziv Electronics Systems Ltd. of 5 December 2002,
                  and take all necessary actions required for the dissolution of
                  the joint company formed thereunder (Nahar Hayarden Spices
                  Ltd.), and provide Netafim with written confirmation from all
                  concerned parties to the effect that said do not have any
                  claims and/or demands and/or actions against OTUS and/or OTI.

            (c)   That OTUS and/or OTI cause and take all actions required in
                  order to allow Netafim to fully enjoy all its rights as
                  provided hereunder.

            (d)   That no changes of material effect shall be made in the
                  operation of OTI from the date of execution of this MOU and
                  until the date of execution of the Agreement(s), without
                  Netafim's prior consent.

Term

      16.   This MOU shall expire after 2 (two) months from the date of
            execution or any other extended date as mutually agreed in writing
            between the parties ("Expiration Date"), all subject to the
            fulfillment of the Prerequisite Conditions specified herein,.

      17.   Upon execution of this MOU, Netafim shall conduct a due diligence
            investigation, which it deems necessary in order to enter into the
            Agreement(s), including without limitation: Services Supply
            Agreement; and Share Purchase Agreement. Subject to the results of
            this due diligence review to Netafim's satisfaction, the
            Agreement(s) shall be executed no later than the Expiration Date,
            unless such date is extended in writing signed by both parties. In
            the event that the parties do not sign an Agreement(s) as of such
            date or such extended date, the parties shall have no obligations or
            claims vis-a-vis each other, and the expressions of the parties as
            set forth in this MOU shall terminate as of such date, except that
            the provisions of paragraph 4 shall survive the expiration and/or
            termination of this MOU.

Confidentiality

      18.   During the term of this MOU and thereafter, each Party hereto agrees
            to and agrees to cause its directors, its officers, employees and
            consultants or anyone receiving Confidential Information from it to
            undertake in writing to: (i) hold in confidence; and (ii) not
            reveal, report, publish, disclose or transfer, directly or
            indirectly, any of the disclosing party's (the "Disclosing Party")
            Confidential Information to any third party or to use any of the
            Disclosing Party's Confidential Information for any purpose at any
            time except as necessary to further the

<PAGE>

            business transactions contemplated in this MOU. All confidential
            information shall remain the sole property of the Disclosing Party.
            The party receiving the Confidential Information ("the Recipient")
            shall return all confidential information to the Disclosing Party
            within ten (10) days of the termination or expiration of this MOU
            unless such termination is due to the parties having executed and
            delivered the Agreement(s). For purposes of this MOU, "Confidential
            Information" shall mean any information or materials which have been
            previously disclosed or may hereafter be disclosed, whether in
            writing, verbally or by any other means and whether directly or
            indirectly, by the Disclosing Party to the Recipient, relating to
            the financial, technological and business information of the
            Disclosing Party.

            Without derogating from the above, the parties will hold in
            confidence unless required to disclose by judicial or administrative
            process or, in the opinion of its counsel, by applicable securities
            laws or regulations, all documents and information which:

            (a)   any other Party furnished to it or its representatives in
                  connection with the transactions contemplated by this
                  Agreement; or

            (b)   concern the Company, its operations or proposed operations or
                  financial performance (including but not limited to the
                  financial statements of The Company)

      (except in each case to the extent that such information (x) is at the
      time of disclosure known to the Party to which it was furnished as
      evidenced by written documents, (y) is or becomes in the public domain
      through no fault of such Party, or (z) is later lawfully acquired from
      other sources by the Party to which it was furnished (as evidenced by
      written documents), and each Party will not release or disclose such
      information to any other person, except its auditors, attorneys, financial
      advisors and other consultants and advisors in connection with this
      Agreement and shall not use such information other than in connection with
      this Agreement or the transactions contemplated hereby.

Approval

      19.   The Parties agree that this MOU as well as the business plan,
            detailed working plan and budget, are all subject to the approvals
            of: (i) the Board of Directors of Netafim; and (ii) the Board of
            Directors of OTUS, which shall be provided not later than 7 days
            from the Effective Date.

No Shop

      20.   Throughout the duration of this MOU, OTUS and OTI hereby undertake
            to refrain from negotiating and/or discussing any investment in OTI
            with any third party, without the prior consent of Netafim.

<PAGE>

Governing Law

      21.   It is agreed between the parties that this MOU shall be governed by
            and construed in accordance with the laws of the State of Israel
            without giving effect to its provisions regarding conflict of laws.

----------------------                                  ----------------------
 Netafim (A.C.S.) Ltd.                                  OrganiTECH U.S.A. Inc.

----------------------
   Organitech Ltd.EXHIBIT 10-a

                         CITIZENS BANK OF MASSACHUSETTS

                                SECURED TERM NOTE

$700,000.00                                                       July    , 2003
                                                           Boston, Massachusetts

      For value received, the undersigned promises to pay to Citizens Bank of
Massachusetts ("Bank"), or order, at its office at 53 State Street, Boston,
Massachusetts 02109, or at such other place as may be designated in writing by
the holder hereof, the principal sum of Seven Hundred Thousand ($700,000.00)
Dollars in sixty (60) installments, as follows: $11,667.00 on September 1, 2003,
and the same amount (except the last installment which shall be the unpaid
balance) on the first day of each month thereafter until this note is fully
paid, with interest from the date hereof on the said principal sum from time to
time outstanding at a fluctuating rate which is the daily equivalent to a rate
equal to the aggregate of (x) the Prime Rate, and (y) one (1%) percent per
annum. Such interest shall be payable monthly in arrears on the first day of
each month, commencing on the first of such dates next succeeding the date
hereof. Interest shall be calculated on the basis of actual days elapsed and a
360-day year. If this note is not paid in full on the date of maturity or upon
the exercise by the holder of its rights in the event of the undersigned's
default, interest on unpaid balances shall thereafter be payable at a
fluctuating interest rate per annum equal to three (3%) percent greater than the
rate of interest specified herein.

      The term "Prime Rate" as used herein shall mean the rate of interest
announced by Bank from time to time, at its head office, as its Prime Rate, it
being understood that such rate is a reference rate, and not necessarily the
lowest rate of interest charged by Bank.

      This note may be prepaid in whole or in part at any time and from time to
time without premium or penalty.

      If after the date hereof holder determines that (a) the adoption of any
applicable law, rule, or regulation regarding capital requirements for banks or
bank holding companies or the subsidiaries thereof, (b) any change in the
interpretation or administration of any such law, rule, or regulation by any
governmental authority, central bank, or comparable agency charged with the
interpretation or administration thereof, or (c) compliance by the holder or its
holding company with any request or directive of any such governmental
authority, central bank, or comparable agency regarding capital adequacy
(whether or not having the force of law), has the effect of reducing the return
on holder's capital to a level below that which holder could have achieved
(taking into consideration holder's and its holding company's policies with
respect to capital adequacy immediately before such adoption, change, or
compliance and assuming that holder's capital was fully utilized prior to such
adoption, change, or compliance) but for such adoption, change, or compliance as
a consequence of holder's commitment to make the loans pursuant hereto by any
amount deemed by holder to be material: (1) holder shall promptly, after
holder's determination of such occurrence, give notice thereof to the
undersigned; and (2) the undersigned shall pay to the holder as an additional
fee from time to time, such amount as the holder certifies to be the amount that
will compensate holder for such reduction, such fee shall be payable monthly,
commencing on the first day of the month next succeeding the date that the
holder certifies the amount to the undersigned.

      A certificate of holder claiming entitlement to compensation as set forth
above will be conclusive in the absence of manifest error. Such certificate will
set forth the nature of the occurrence giving rise to such compensation, the
additional amount or amounts to be paid to holder, and the method by which such
amounts were determined. In determining such amount, holder may use any
reasonable averaging and attribution method.

      The undersigned hereby authorizes Bank to charge the amount of all monthly
interest and principal payments, when due and payable hereunder, against the
undersigned's loan account

                                      -1-
<PAGE>

created pursuant to a Demand Loan and Security Agreement (All Assets) of even
date herewith (the "Agreement").

      At the option of the holder, this note shall become immediately due and
payable without notice or demand upon the occurrence at any time of (i) the
failure to pay in full and when due any installment of principal or interest
hereunder; (ii) one or more Events of Default as defined in the Agreement; or
(iii) the termination of the Agreement.

      The undersigned and any guarantor hereby grants to Bank a lien, security
interest and right of setoff as security for all liabilities and Obligations to
Bank, whether now existing or hereafter arising, upon and against all deposits,
credits, collateral and property, now or hereafter in the possession, custody,
safekeeping or control of Bank or any entity in the control of Citizens
Financial Group, Inc., or in transit to any of them. At any time, without demand
or notice, Bank may set off the same or any part thereof and apply the same to
any liability or obligation of the undersigned and any guarantor even though
unmatured and regardless of the adequacy of any other collateral securing this
note. ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH
RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THIS NOTE, PRIOR TO EXERCISING ITS
RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF THE
UNDERSIGNED OR ANY GUARANTOR, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY
WAIVED.

      The undersigned agrees to pay all costs of collection including reasonable
fees of attorney.

      No delay or omission on the part of the holder in exercising any right
hereunder shall operate as a waiver of such right or of any other right of such
holder, nor shall any delay, omission or waiver on any one occasion be deemed a
bar to or waiver of the same or any other right on any future occasion. Every
one of the undersigned and every indorser or guarantor of this note regardless
of the time, order or place of signing waives presentment, demand, protest and
notices of every kind and assents to any one or more extensions or postponements
of the time of payment or any other indulgences, to any substitutions, exchanges
or releases of collateral if at any time there be available to the holder
collateral for this note, and to the additions or releases of any other parties
or persons primarily or secondarily liable.

      This note is secured pursuant to the terms of the Agreement.

      THE UNDERSIGNED AND THE BANK MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED
HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE OR ANY OTHER LOAN
DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH OR ANY COURSE OF
CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS
OF ANY PARTY. THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR THE BANK TO
ACCEPT THIS NOTE AND MAKE THE LOANS CONTEMPLATED HEREBY.

      All rights and obligations hereunder shall be governed by the law of the
Commonwealth of Massachusetts and this note shall be deemed to be under seal.

Witness:                            VULCAN INDUSTRIES, INC.

____________________________        By:_________________________________________
                                    Robert I. Lieberman, President and Treasurer

                                      -2-

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