Document:

EXHIBIT 10.10

                               INCUBATE THIS! INC.

                               RETAINER AGREEMENT

     RETAINER  AGREEMENT  made as of this  3rd day of May,  2000 by and  between
INCUBATE  THIS!  INC., a Colorado  corporation,  having an office at 265 Sunrise
Avenue,  Suite 204,  Palm  Beach,  Florida  33480  (hereinafter  referred  to as
"INCUBATE") and DONALD F. MINTMIRE,  ESQ. an individual,  with an address at 265
Sunrise  Avenue,  Suite 204, Palm Beach,  FL 33480  (hereinafter  referred to as
"MINTMIRE").

                              W I T N E S S E T H:

         WHEREAS, Incubate desires to retain MINTMIRE as its legal advisor; and

         WHEREAS, MINTMIRE is willing to serve as legal advisor of Incubate upon
the terms and conditions herein set forth;

         NOW,  THEREFORE,  in consideration of the promises and mutual covenants
herein set forth it is agreed as follows:

     1. Retain MINTMIRE as Legal Advisor.  Incubate  hereby retains  MINTMIRE to
serve as its legal advisor until removed by the Board or until MINTMIRE resigns.

     2. Duties.  MINTMIRE shall perform those functions  generally  performed by
persons of such title and position.

     3. Compensation.  MINTMIRE shall receive annual nonrefundable  compensation
of 25,000  shares of the  Restricted  Common Stock of the Company in addition to
payment for firm legal services under separate agreement.

     4. Secrecy.  At no time shall MINTMIRE  disclose to anyone any confidential
or secret  information (not already  constituting  information  available to the
public)  concerning (a) internal affairs or proprietary  business  operations of
Incubate or its affiliates or (b) any trade secrets,  new product  developments,
patents, programs or programming, especially unique processes or methods.

     5. Termination.

          a. Termination by Incubate

              (i)  Incubate may terminate this Agreement immediately for  Cause.
For purposes  hereof,  "Cause" shall mean (A) the conviction of MINTMIRE for the
commission of a felony  against the Incubate;  and/or (B) the habitual  abuse of
alcohol or  controlled  substances.  In no event shall alleged  incompetence  of
MINTMIRE  in  the  performance  of  MINTMIRE's  duties  be  deemed  grounds  for
termination for Cause.

              (ii)  This  agreement automatically shall terminate upon the death
of  MINTMIRE,  except that  MINTMIRE's  estate  shall be entitled to receive any
amount accrued under Section 3 for the period prior to MINTMIRE's  death and any
other amount to which MINTMIRE was entitled of the time at his death.

<PAGE>

     6. Arbitration.  Any controversies  between Incubate and MINTMIRE involving
the construction or application of any of the terms, provisions or conditions of
this Agreement  shall on the written request of either party served on the other
be submitted to arbitration.  Such arbitration shall comply with and be governed
by the rules of the American Arbitration Association. An arbitration demand must
be made within one (1) year of the date on which the party demanding arbitration
first had notice of the existence of the claim to be arbitrated, or the right to
arbitration  along with such claim shall be considered  to have been waived.  An
arbitrator  shall  be  selected  according  to the  procedures  of the  American
Arbitration  Association.  The cost of arbitration  shall be borne by the losing
party unless the arbitrator shall determine otherwise. The arbitrator shall have
no authority to add to, subtract from or otherwise modify the provisions of this
Agreement, or to award punitive damages to either party.

     7.  Attorneys'  Fees  and  Costs.  If any  action  at law or in  equity  is
necessary to enforce or interpret the terms of this  Agreement,  the  prevailing
party shall be entitled  to  reasonable  attorney's  fees,  costs and  necessary
disbursements in addition to any other relief to which he may be entitled.

     8. Entire Agreement; Survival. This Agreement contains the entire agreement
between the parties with  respect to the  transactions  contemplated  herein and
supersedes, effective as of the date hereof any prior agreement or understanding
between Incubate and MINTMIRE with respect to MINTMIRE's employment by Incubate.
The  unenforceability  of any provision of this  Agreement  shall not effect the
enforceability of any other provision.  This Agreement may not be amended except
by an agreement  in writing  signed by the  MINTMIRE  and the  Incubate,  or any
waiver,  change,  discharge or modification  as sought.  Waiver of or failure to
exercise any rights  provided by this  Agreement and in any respect shall not be
deemed  a waiver  of any  further  or  future  rights.  The  provisions  of this
Agreement shall survive the termination of this Agreement.

     9. Assignment. This Agreement shall not be assigned to other parties.

     10. Governing Law. This Agreement and all the amendments hereof, an waivers
and consents with respect  thereto shall be governed by the internal laws of the
State of Florida, without regard to the conflicts of laws principles thereof.

     11. Notices. All notices,  responses,  demands or other communication under
this Agreement shall be in writing and shall be deemed to have been given when

          a.  delivered  by  hand;

          b.  sent  be  telex  or  telefax,  (with  receipt confirmed), provided
that a copy is mailed by registered or certified mail, return receipt requested;
or

          c.  received by the addressee  as  sent  by  express  delivery service
(receipt requested) in each case to the appropriate addresses, telex numbers and
telefax  numbers  as the  party may  designate  to itself by notice to the other
parties:

<TABLE>
<S>                 <C>                         <C>      <C>
(i) if to Incubate: INCUBATE THIS! INC.         Copy to: Donald F. Mintmire,Esq.
                    Attn: Sharone Perlstein              Mintmire & Associates
                    265 Sunrise Avenue, Suite 204        265 Sunrise Avenue, Suite 204
                    Palm Beach, Florida 33480            Palm Beach, FL 33480
                    Telefax: (561) 659-5371              Telefax: (561) 659-5371
                    Telephone:(561) 832-5696             Telephone: (561) 832-5696

(ii)if to MINTMIRE: Donald F. Mintmire, Esq.
                    265 Sunrise Avenue, Suite 204
                    Palm Beach, FL 33480
                    Telefax: (561) 659-5371
                    Telephone: (561) 832-5696
</TABLE>

<PAGE>

     12.  Severability  of Agreement.  Should any part of this Agreement for any
reason be declared invalid by a court of competent  jurisdiction,  such decision
shall  not  affect  the  validity  of any  remaining  portion,  which  remaining
provisions  shall remain in full force and effect as if this  Agreement had been
executed with the invalid portion thereof eliminated,  and it is hereby declared
the  intention  of the  parties  that they would  have  executed  the  remaining
portions of this Agreement  without  including any such part,  parts or portions
which may, for any reason, be hereafter declared invalid.

     IN WITNESS WHEREOF,  the undersigned have executed this agreement as of the
day and year first above written.

WITNESS:                                 INCUBATE THIS! INC.

By:                                      By: /s/ Sharone Perlstein
--------------------------------         --------------------------
                                         Sharone Perlstein

WITNESS:

                                         By: /s/ Donald F.  Mintmire
--------------------------------         --------------------------
                                         Donald F. Mintmire, Esq.EXHIBIT 10.11

                              Investment Agreement

                          (hereinafter the "Agreement")

              Made and entered into this ________ day of May, 2000

                                    Between

Organitech  Ltd, an Israeli  private  company  existing under the laws of Israel
Address: P.O.Box 212 Nesher 36601, Israel (The "Company")

And

Incubate This, Inc., a company duly incorporated  under the laws of the State of
Colorado Address: 265 Sunrise Ave Palm Beach, Florida 33480 (The"Investor")

WHEREAS the Company was formed  according to the Founders  Agreement  dated June
27, 1999,  attached hereto as Exhibit A and was duly registered on July 4, 1999,
under the laws of the State of Israel; and

WHEREAS the  Company is engaged in a project for  research  and  development  of
"Machines for Automatic Growing of Lettuce", approved by the Office of the Chief
Scientist  of the  Ministry of Industry  and Trade (the "OCS") as more fully set
forth in Exhibit B; and

WHEREAS the Company desires to receive an equity investment; and

WHEREAS the Investor desires to make an equity investment in the Company against
the issuance to the Investor of Series A Preferred Shares of the Company;

NOW THEREFORE THE PARTIES HAVE AGREED AS FOLLOWS:

1. Preamble and Exhibits

The preamble and all Exhibits to this Agreement form an integral part hereof.

2. Purchase of Preferred Shares; Closing

     2.1 In consideration  for the issuance by the Company to the Investor of an
aggregate of twelve  thousand  four hundred  sixty  (12,460)  Series A Preferred
Shares  of the  Company  of a nominal  value of NIS 0.01  each  (the  "Preferred
Shares") at a price per Preferred Share of  approximately  eighty US Dollars and
twenty  five US Cents  (US$80.25)  or an  aggregate  of One  Million  Dollars US
(US$1,000,000)  (hereinafter the "Original  Purchase Price" or the "Investment")
based  on a  pre-investment  Company  value of Ten  Million  Dollars  US  (US$10
Million),  on a fully diluted basis  immediately  following such issuance giving
effect to the ninety-seven thousand one-hundred  forty-three (97,143) issued and
outstanding  ordinary shares and the fifteen thousand  (15,000)  ordinary shares
reserved for issuance  pursuant to an employee share incentive plan (hereinafter
the "Employee Share Incentive Plan"),  the Investors shall invest in the Company
and pay to it the  Investment,  upon the receipt by the Company of all necessary
authorizations,  approvals,  consents or waivers, as provided in this Agreement,
to be paid as follows:

<PAGE>

          2.1.1 One Million US Dollars  (US$1,000,000)  (which sum shall include
     the US100,000  previously paid by the Investor to the Company) at a closing
     (the  "Closing") to be held at the offices of NATHAN MEIR & CO.,  ADVOCATES
     SHAUL MAHELECH BLVD & TEL.AVIV at   p.m. on __________________(the "Closing
     Date"), or such other time as shall be mutually agreed upon by the parties,
     against the issuance to the Investor of twelve  thousand four hundred sixty
     (12,460) Preferred Shares.

          2.2 At the Closing,  the  following  transactions  shall occur,  which
     transactions   shall  be  deemed  to  take  place   simultaneously  and  no
     transaction  shall  be  deemed  to  have  been  completed  or any  document
     delivered until all such  transactions have been completed and all required
     documents delivered:

          2.2.1  The  Company  shall  deliver  to  the  Investor  the  following
     documents:

               (4)  Resolutions  of  the  Company's  shareholders  in  the  form
          attached  hereto  as  Schedule  2.2.1(a)A  by which  the  Articles  of
          Association of the Company were replaced with the Amended and Restated
          Articles of  Association  attached  hereto as Schedule  2.2.1(a)B (the
          "Amended Articles"), by which 500,000 authorized but unissued Ordinary
          Shares  have been  converted  into  Preferred  Shares and by which the
          Memorandum of  Association  of the Company was amended as set forth in
          such  resolutions,  together  with a duly  completed  notice  of  such
          changes to the Israeli Registrar of Companies;

               (5) True and correct copies of resolutions of the Company's Board
          of  Directors  issuing  and  allotting  the  Preferred  Shares  to the
          Investor  against payment of the purchase price therefor,  in the form
          attached hereto as Schedule  2.2.1(b),  together with a duly completed
          notice of such  issuance to the Israeli  Registrar of Companies  and a
          copy of check in full payment of the stamp duty on the issuance of the
          Preferred Shares;

               (6) Validly  executed share  certificates  covering the Preferred
          Shares,  issued  in the name of the  Investor,  in the  form  attached
          hereto as Schedules 2.2.1(c);

               (7) A certificate  duly  executed by an executive  officer of the
          Company,  dated as of the date of the  Closing,  in the form  attached
          hereto as Schedule 2.2.1(d) (the "Compliance Certificate").

               (8)  An  Opinion  of  Avi  Goldsobel,  Advocate,  counsel  to the
          Company,  in the  form  attached  hereto  as  Schedule  2.2.1(e)  (the
          "Opinion"), dated as of the date of the Closing.

               (9) Warrants to the Investor to purchase  ____________  Preferred
          Shares (the  "Preferred  Shares  Warrants")  pursuant to the terms and
          conditions  of Section __ below,  and  warrant  certificates  attached
          hereto as Schedules 22.1through 22.5(the "Warrants").

          2.2.2 As soon as practicable  following the Closing, and no later than
     21 days  thereafter,  the Company shall register the issuance and allotment
     of the Preferred Shares to the Investor in the Shareholders Register of the
     Company which shall be in the form of Schedule 2.2.2.

          2.2.3 The  Investor  shall  cause the  transfer  to the Company of the
     Investment  for the Shares  being issued to it by wire  transfer,  banker's
     check,  or such other form of payment as is mutually  agreed by the Company
     and the Investor.

<PAGE>

          2.2.4 Report of the issuance of the  Preferred  Shares shall be timely
     and accurately  made to the Registrar of Companies.  The Company shall bear
     all stamp tax due in connection with the issuance of shares to the Investor
     hereunder.

3. Rights to Certain Future Adjustments.

     3.1 Until an IPO, in the event that,  following  the  Closing,  the Company
shall issue Additional  Shares at a price per share (the "Lower Price") which is
lower  than  the  Original  Purchase  Price  per  share  paid  by the  Investors
hereunder,  adjusted for share splits,  share combinations,  share dividends and
other  recapitalization  events,  then the Investor shall be entitled to receive
additional  Preferred  Shares in an amount  such that the  Investor  shall  have
received a total number of  Preferred  Shares  equivalent  to what it would have
received by investing the same dollar amount in such later offering  rather then
his  Investment,  all as more fully set forth in the Amended  Articles.  For the
purposes hereof "Additional Shares" shall mean any shares of the Company whether
now authorized or not, and rights,  options or warrants to purchase such shares,
and shares of any type whatsoever that are, or may become, convertible into such
shares; provided that the term "Additional Shares" shall not include: (i) shares
issued upon conversion of Preferred Shares;  (ii) shares issued upon exercise of
any  currently  outstanding  warrants  and options;  and (iii) shares  issued to
employees,  officers or directors of the Company pursuant to any stock option or
incentive  plan  approved by the  Company's  board of  directors  and subject to
Section 17.1.10.

     3.2 The rights  granted in Section 3.1 above shall apply to the  Investment
and to Warrants A-D set forth in Section 22 below.

     3.3 To avoid  doubt,  the  rightsd  granted in Section  3.1 above shall not
apply to Warrant E.

4. Preemptive Rights

Should the Company, at any time prior to an IPO, wish to issue Additional Shares
to a third party (other than shares issued pursuant to the Employee Option Plan,
the Warrants and Ordinary  Shares  issuable  upon  conversion  of the  Preferred
Shares),  the holders of the Preferred  Shares,  the Ordinary  Shares and/or the
holder's  transferees  shall  each have the  preemptive  right to  purchase  its
pro-rata share of such Additional  Shares on a fully diluted basis,  all as more
fully set forth in the Amended Articles.

5. Transfer of Shares

     5.1  Right of  First  Refusal.  In every  sale or  transfer,  voluntary  or
involuntary,  of securities in the Company by any shareholder  (hereinafter  the
"Offeror"),  the  Offeror  shall be  obligated  to offer them first to the other
shareholders  under  identical  terms to which the proposed  sale or transfer is
subject,  all as more fully set forth in the Amended  Articles.  This obligation
shall not apply to the transfer of shares to Permitted  Transferees as that term
is defined in the Amended Articles.

     5.2 Co-Sale.  Until an IPO, if the right of first  refusal  pursuant to 5.1
above is not  exercised  and if at any time Mr.  Lior  Hessel  (hereinafter  the
"Founder") or his transferees  (hereinafter the "Selling Shareholder"),  intends
to sell shares equal to or  exceeding  in the  aggregate of 10% of the shares of
the Company,  the Selling  Shareholder  shall so notify the Investor in writing.
The Investor shall have

<PAGE>

the right to participate in such sale by the Selling  Shareholder  such that the
purchaser  thereof  shall  purchase  shares  from the  Investor  pro-rata to its
percentage of ownership of shares in the Company, as more fully set forth in the
Amended Articles.

     5.3 Prior to the  earlier  of (a) an  initial  firmly  underwritten  public
offering of the Company's Ordinary Shares pursuant to an effective  registration
statement  under the  United  States  Securities  Act of 1933,  as  amended,  or
equivalent  law  of  another  jurisdiction  (the  "IPO");  or  (b) a  merger  or
consolidation  of the Company  with or into  another  corporation,  or a sale of
substantially  all of the  Company's  shares  (collectively,  including  an IPO,
referred  to as an  "Exit") ; or (c) the date which is 18 months  following  the
date of the Closing;  the Founder shall not sell,  transfer,  assign,  pledge or
otherwise  dispose  of  ("Transfer")  any of his shares in the  Company  without
written approval of the Investor.

6. Bring Along Enforcement

In the event that,  prior to an IPO, an offer is made to the  shareholders  by a
third party to purchase  75% or more of the issued  share  capital  (hereinafter
"Acquisition  Offer") and  shareholders  (hereinafter  "Agreeing  Shareholders")
holding 75% or more of the issued  share  capital  agree to and approve the said
Acquisition  Offer, and such Acquisition Offer is conditional upon the sale of a
number of shares  of the  Company  exceeding  the  number of shares  held by the
Agreeing Shareholders,  the other shareholders of the Company shall be obligated
to participate and sell to such offeror an amount of their shares  sufficient to
cover such difference, on a pro-rata basis between them.

7. Conversion of Preferred Shares

The  holders  of the  Preferred  Shares  shall  have the  right to  convert  the
Preferred Shares,  at any time, into Ordinary Shares.  The conversion rate shall
be 1:1 subject to adjustments as provided in this Agreement.

8. Automatic Conversion of Preferred Shares

The Preferred Shares shall be automatically  converted into Ordinary Shares,  at
the then  applicable  conversion  prices (i) in the event that the holders of at
least seventy five percent (75%) of the outstanding  Preferred Shares consent to
such conversion,  or (ii) upon the closing of an Exit as that term is defined in
Section 5.3 above.

9. Board of Directors

     9.1 Until an IPO,  the Board of  Directors  shall  consist of not more than
seven (7) members.

     9.2 As of the Closing,  the holders of a majority of the  Preferred  Shares
shall have the right to  appoint,  remove and  replace  one (1)  director to the
Board of Directors of the  Company.  The holders of a majority of the  Preferred
shares shall have the right to appoint,  remove and replace two (2) directors to
the Board of Directors of the Company upon their investment of an additional two
million US Dollars (US$2,000,000) into the Company.

     9.3 D.G.  Pizza Ltd.  shall be entitled to appoint,  remove and replace one
(1) director to the Board of Directors of the Company.

<PAGE>

     9.4 Technion  Entrepreneurial  Incubator Co. Ltd ("TEIC") shall be entitled
to appoint, remove and replace one (1) director to the Board of Directors of the
Company.

     9.5 Lior Hessel  shall be  entitled to appoint,  remove and replace one (1)
director to the Board of Directors of the Company.

     9.6 Arie Heller,  shall be entitled to appoint,  remove and replace one (1)
non voting observer to the Board of Directors of the Company as long as he holds
at least 4% of the issued and outstanding shares of the Company.

     9.7 The Directors may  participate in Board meetings by means of conference
telephone or videos.  The meeting and proceeding of the Board of Directors shall
be governed by the Company's Articles of Association. The quorum at a meeting of
the  Board  of  Directors  shall be  constituted  (by  presence,  in  person  or
represented by an Alternate  Director) of at least one Director appointed by the
holders of the Preferred Shares. In the event that the meeting is postponed then
at the second  meeting any number of directors will be sufficient to resolve all
the resolutions that were listed for the first meeting.

10 Use of Proceeds

The Company  will use the  proceeds of the  issuance  and the sale of  Preferred
Shares for the mission as set forth in the  Company's  Business Plan dated March
1, 2000. The use of the proceeds for any other purpose is subject to approval or
changes of the Board,  which shall not be taken against the negative vote of the
Directors designated by the Preferred Shares.

11. Liquidation Preference

     11.1 The  Preferred  Shares  shall have a  preference  to all other  equity
securities  of  the  Company  in  the  event  of a  merger,  acquisition,  sale,
liquidation or bankruptcy of the Company (a "Preference  Triggering  Event").  A
merger, acquisition or the sale of all or substantially all of the assets of the
Company shall be deemed to be a liquidation.

     11.2 In an actual or deemed  liquidation  which is a Preference  Triggering
Event,  each  holder of the  Preferred  Shares  shall be  entitled to receive in
preference  to the  holders  of the  Ordinary  Shares,  an  amount  equal to the
Original Purchase Price plus interest calculated in US Dollars at the Libor plus
three percent (3%) per annum.  Following  said  distribution  the holders of the
Ordinary Shares will be entitled to an amount per share equal to the amount paid
per share to the holders of the Preferred Shares excluding interest. Thereafter,
the holders of the  Preferred  Shares will  participate  with the holders of all
other shares pro rata and on an as-converted basis in any remaining proceeds.

12. Voting Rights

The Preferred  Shares will vote  together with the Ordinary  Shares and not as a
separate class except as provided  herein or as otherwise  required by law. Each
share of  Preferred  Shares  shall have a number of votes equal to the number of
Ordinary Shares then issuable upon conversion of such share.

13. Confidentiality

     13.1  The  Investors  agree  that any  information  regarding  the  Company
obtained  from  the  Company  pursuant  to the  provisions  hereof  will  not be
disclosed  without the prior written  consent of the Company  provided  that, in
connection with periodic

<PAGE>

reports to their  shareholders  or partners,  the Investors  may,  without first
obtaining  such  written  consent,  make  general  statements,   not  containing
technical or other confidential  information,  regarding the nature and progress
of the  Company's  business,  and provided that the  confidentiality  obligation
under this Section 13 shall not apply to any information  which is or has become
public domain,  or which any of the Investors shall be obliged to disclose under
the law.  Any transfer of shares in the future by the  Investors  shall be valid
only if the  transferee  has agreed in writing to be bound by the  provisions of
this Section.

     13.2 The Company,  the Founder and any other person  acting on their behalf
shall  keep the  Investment  Agreement  and  related  correspondence  in  strict
confidence, and shall not issue any public statement or press release concerning
this transaction  without the Investor's prior written approval of the substance
and form of any such statement or release.

14. Information Rights

     14.1 As soon as practicable,  but in any event within  forty-five (45) days
after the end of each fiscal year of the Company,  the Company  shall deliver to
the Investor a  consolidated  balance sheet of the Company as of the end of such
year,  and  statements of income and  statements of cash flow of the Company for
such year,  setting forth in each case in  comparative  form the figures for the
previous    fiscal   year,   all   in   reasonable    detail,    United   States
dollar-denominated,  prepared in  accordance  with  Israeli  generally  accepted
accounting  principles  ("GAAP"),  audited  by a firm of  Independent  Certified
Public  Accountants  in the  State of  Israel  who are  members  of the  Israeli
Institute of Certified Public Accountants, and accompanied by an opinion of such
firm which opinion shall state that such balance sheet and  statements of income
and cash flow have been  prepared  in  accordance  with GAAP  applied on a basis
consistent  with that of the  preceding  fiscal  year,  and  present  fairly and
accurately the financial  position of the Company as of their date, and that the
audit by such accountants in connection with such financial  statements has been
made in accordance with generally accepted auditing standards.

     14.2 As soon as practicable, but in any event within thirty (30) days after
the end of each  quarter of each fiscal year of the Company,  the Company  shall
deliver to the Investor an unaudited  consolidated  balance sheet of the Company
as of the end of each such period and unaudited  consolidated  statements of (i)
income and (ii) cash flow of the Company for such period and, in the case of the
first, second and third quarterly periods,  for the period from the beginning of
the current  fiscal year to the end of such quarterly  period,  setting forth in
each case in comparative  form the figures for the  corresponding  period of the
previous fiscal year, all in reasonable detail, United States dollar-denominated
and  certified,  by the  chief  financial  officer  (or if  none,  by the  chief
executive  officer) of the Company (the "CFO"),  that such financial  statements
were prepared in accordance with GAAP applied on a basis consistent with that of
preceding  periods and, except as otherwise  stated therein,  fairly present the
financial  position  of the  Company as of their date  subject to there being no
footnotes   contained   therein  and  changes   resulting  from  year-end  audit
adjustments,  and  all  reviewed  by a  firm  of  Independent  Certified  Public
Accountants  in the State of Israel who are members of the Israeli  Institute of
Certified Public Accountants; and

     14.3 As soon as practicable, but in any event within thirty (30) days after
the end of each month,  the Company  shall deliver to the Investor a report in a
form agreed from time to time by the Company's Board of Directors,  which report
shall  include  an  unaudited  consolidated  balance  sheet of the  Company  and
unaudited  estimated  consolidated  statements of income and  statements of cash
flow (including,  opening cash, income, expenses and closing cash) as at the end
of such month.

<PAGE>

     14.4 The Company will permit the authorized representatives of the Investor
full and free access,  at all reasonable  times, and upon reasonable  notice, to
any of the  properties of the Company,  including its books and records,  and to
discuss its  affairs,  finances  and accounts  with the  Company's  officers and
auditor,  for  any  purpose  whatsoever.  This  Section  14.4  shall  not  be in
limitation  of any rights which the Investor or the director  designated  by the
Investor may have under applicable law. In addition,  and not as a limitation on
any of the foregoing, the Company covenants that it will provide full disclosure
and  information  regarding  all of the  Company's  affairs at  meetings  of the
Company's Board of Directors,  annual general meetings of the shareholders,  and
extraordinary general meetings of the shareholders.

     14.5 The Company's obligation to deliver the financial statements and other
information  under this  Section  14 above  shall  terminate  and shall be of no
further force or effect upon the earlier of (a) closing of the Company's IPO; or
(b) such time as the  Investor  holds an aggregate of less than 2% of the issued
and  outstanding  share  capital of the Company.  Thereafter,  the Company shall
deliver to the  Investor,  and its  assignees  or  transferees,  such  financial
information  as the Company from time to time  provides to other  holders of its
shares.

     14.6 The  Company's  CFO will be  approved  by the owners of the  Preferred
Shares.

(15) Proprietary Information and Non-Competition Agreements.

The  Company  will not employ,  or continue to employ,  any person who will have
access  to  confidential  information  with  respect  to  the  Company  and  its
operations  unless such person has executed and delivered a Proprietary  Rights,
Non-Disclosure  and  Non-Competition   Agreement  to  the  satisfaction  (as  to
substance  and form) of the  Company's  board of  directors  and reviewed by the
legal counsel.

(16) Annual Plan and Monthly Reports.

The  management of the Company shall  establish  annually an operating  plan and
budget for the Company (the "Annual Plan"),  in consultation with the Board. The
Annual  Plan for the  following  year  shall be  submitted  to the Board for its
approval.(30)  days prior to the first day of the year  covered  by such  Annual
Plan.  In addition,  the  management of the Company shall submit to the Board of
Directors  monthly  and  other  reports,  in such  format  and  containing  such
information, as the Board of Directors shall require.

(17) Negative Covenants

     17.1  (1)From the date of Closing  and for a period of 100 days  thereafter
provided  that the  Investor's  ownership,  taken  together,  shall  continue to
constitute  at least 5% of the  Company's  issued  capital and (2) from 101 days
after the Closing up until an IPO and provided  that the  Investor's  ownership,
taken  together,  shall  continue to  constitute  at least 17% of the  Company's
issued capital,  the Company will not take any of the following  actions against
the negative vote of a least 2/3 of the Holders of record of the majority of the
outstanding  Preferred  Shares voting as a separate  class,  or against (if such
decision  may be taken by the  Company's  Board of  Directors  or any  committee
thereof) the negative vote of at least one director designated by the Holders of
the Preferred Shares after consultation:

          17.1.1  recommend or adopt any amendment of the Memorandum or Articles
     of  Association  of the  Company,  or any other action which would have the
     effect of amending, altering or repealing

<PAGE>

     preferences, rights, powers or other terms of the Preferred Shares so as to
     affect adversely the Preferred Shares.  For this purpose,  without limiting
     the  generality  of the  foregoing,  the  authorization  or issuance of any
     securities  which have preference or priority over the Preferred Shares (A)
     as to the right to receive either dividends or amounts  distributable  upon
     liquidation,  dissolution or winding up of the Company, (B) as to the right
     to participate in the issuance of new securities by the Company,  or (C) as
     to the right of first refusal with respect to the transfer of shares by any
     shareholder  of the  Company,  shall be  deemed  to  affect  adversely  the
     Preferred Shares;

          17.1.2 recommend or approve any material change or modification in the
     line of  business  of the  Company,  from the  Company's  current  field of
     business;

          17.1.3 authorize or issue any equity  securities of Preferred  Shares,
     or other securities  convertible into such securities,  or other securities
     of the Company  ranking senior to the Preferred  Shares,  or enter into any
     contract  or  grant  any  option  or  warrant  for the  issue  of any  such
     securities  (except for the  issuance of Ordinary  Shares to  employees  in
     transactions with  non-financing  purposes)  pursuant to an incentive share
     option plan approved by the  Company's  Board of Directors and the issuance
     of securities to any investor.

          17.1.4 merge with or consolidate into any corporation,  firm or entity
     or sell, or otherwise  dispose of all or substantially all of its assets at
     a Company  valuation of less than $21,000,000 USD unless the Company causes
     the  Investor  to be  paid  for  their  shares  as  if  the  valuation  was
     $21,000,000 USD.

          17.1.5  increase  the  number  of  directors  to more  than  seven (7)
     directors;

          17.1.6  declare or pay any  dividend  or other  distribution  of cash,
     shares, or other assets;

          17.1.7 appoint or remove from office the Company's  auditors who shall
     be from one of the Big Five;

          17.1.8  recommend  or  approve  a  liquidation  (other  than a  deemed
     liquidation), dissolution or winding-up of the Company; or

          17.1.9 entering into any transaction  with an Interested Party as such
     term is defined in the Companies Law 1999.

          17.1.10  approving or adopting  any stock option plan,  in addition to
     the existing  Employee Share  Incentive  Plan,  which will be granted at an
     exercise price reflecting less than a Company valuation of $10,000,000.

18. Conditions of Closing of the Investors.

The obligations of the Investor to purchase  Preferred Shares and transfer funds
pursuant  to  Section 2 above are  subject to the  fulfillment  at or before the
Closing of the following conditions  precedent,  any one or more of which may be
waived in whole or in part by the  Investor,  which  waiver shall be at the sole
discretion of the Investor:

     18.1 The representations and warranties made by the Company and the Founder
in this Agreement  shall have been true and correct when made, and shall be true
and correct as of the Closing as if made on the date of the Closing.

<PAGE>

     18.2 All covenants,  agreements, and conditions contained in this Agreement
to be  performed  or complied  with by the  Company or the Founder  prior to the
Closing  shall  have been  performed  or  complied  with by the  Company  or the
Founder, as the case may be, prior to or at the Closing.

     18.3  The  Company   shall  have   secured  all   permits,   consents   and
authorizations  that shall be necessary or required  lawfully to consummate this
Agreement and to issue the Preferred Shares to be purchased by the Investor, and
the Amended  Articles  shall have been duly filed with the Israeli  Registrar of
Companies.

     18.4 All of the  documents to be delivered by the Company  pursuant to this
Agreement  prior  to  or  at  the  Closing  shall  be in a  form  and  substance
satisfactory  to the  Investor,  in its sole  discretion,  and  shall  have been
delivered to the Investor.

     18.5  All  corporate  and  other   proceedings   in  connection   with  the
transactions  contemplated  by this Agreement and all documents and  instruments
incident to such transactions shall be satisfactory in substance and form to the
Investor, and the Investor shall have received all such counterpart originals or
certified  or other copies of such  documents  as the  Investor  may  reasonably
request.

     18.6 The Investor's legal,  financial and technical due diligence review of
the Company shall have been completed to the sole and complete  satisfaction  of
the Investor.

     18.7  From the date  hereof  until  the  Closing,  there  will have been no
adverse change in the financial or business condition of the Company.

     18.8 Absence of  Proceeding.  From the date hereof until the Closing  there
will have been no effective injunction,  writ, preliminary  restraining order or
action, suit, proceeding or investigation by or before any court, administrative
agency or other governmental authority directing or instituting the restraining,
prohibition or invalidation of the  transactions  contemplated by this Agreement
or which materially  adversely affect the right of the Investor to own after the
Closing all of the Shares contemplated in this Agreement.

19. Conditions of Closing of the Company.

The Company's  obligations to sell and issue the Preferred  Shares hereunder are
subject to the  fulfillment at or before the Closing of the conditions  that (a)
all  covenants,  agreements  and  conditions  contained in this  Agreement to be
performed,  or complied  with, by the Investor  prior to or at the Closing shall
have been performed or complied with by the Investor prior to or at the Closing,
and  (b)  the  representations  and  warranties  made  by the  Investor  in this
Agreement  shall have been true and  correct  when  made,  and shall be true and
correct as of the date of the Closing,  which  conditions may be waived in whole
or in part by the Company,  and which waiver shall be at the sole  discretion of
the Company.

20. Representations and Warranties of the Company and the Founder

     20.1 Organization.  The Company is duly organized,  validly existing and in
good  standing  under the laws of the State of  Israel,  and has full  corporate
power and authority to own,  lease and operate its  properties and assets and to
conduct its  business  as now being  conducted  and as proposed to be  conducted
under the Business  Plan.  The Company has all requisite  power and authority to
execute and deliver this Agreement and other agreements  contemplated  hereby or
which are  ancillary  hereto and to  consummate  the  transactions  contemplated
hereby and thereby. Neither the nature of the

<PAGE>

Company's  business as now  conducted  or as proposed  to be  conducted  nor its
ownership  or leasing of property  require  that the Company be  qualified to do
business or in good standing in any jurisdiction other than the State of Israel.
The  Memorandum  and  Articles  of  Association  of  the  Company  as in  effect
immediately  prior to the Closing are  attached  hereto as  Schedule  20.1.  The
Company has not taken any action or failed to take any action,  which  action or
failure would  preclude or prevent the Company or from  conducting  its business
after the  Closing in the  manner  heretofore  conducted.  The  Company  has all
franchises,  permits,  licenses,  and any similar  authority  necessary  for the
conduct of its business as now being  conducted  and as proposed to be conducted
under the Company's  Business Plan, the lack of which could adversely affect the
business, properties,  prospects, or financial condition of the Company, and the
Company  believes  that it can obtain,  without  undue  burden or  expense,  any
similar  authority  for the conduct of its business as planned to be  conducted.
The Company is not in default under any of such franchises,  permits,  licenses,
or other similar authority.

     20.2 Share Capital.  The registered  share capital of the Company as of the
Closing  shall be NIS 35,000,  divided into (1)  3,000,000  authorized  Ordinary
Shares  of a  nominal  value of 0.01  N.I.S.  each,  of which  (a)  ninety-seven
thousand  one  hundred  forty-three  (97,143)  shares  are,  on the date of this
Agreement,  issued to the shareholders (the  "Shareholders")  listed in Schedule
20.2(A);  (b) an additional  fifteen  thousand  (15,000) shares are reserved for
issuance to the  Employee  Share  Incentive  Plan;  and (2)  500,000  authorized
Preferred  Shares of a nominal  value of 0.01 N.I.S.  each,  of which (a) twelve
thousand four hundred sixty  (12,460) are issued to the Investor;  and (b) fifty
three  thousand  six hundred two  (53,602)  are reserved for the issuance to the
Investor  in  accordance  with  Section 22 hereof.  Except for the  transactions
contemplated  by this  Agreement,  there are no other share capital,  preemptive
rights, convertible securities, outstanding warrants, options or other rights to
subscribe  for,  purchase or acquire  from the Company any share  capital of the
Company and there are not any contracts or binding commitments providing for the
issuance  of, or the  granting  of rights to acquire,  any share  capital of the
Company or under which the Company is, or may become,  obligated to issue any of
its securities. All issued and outstanding share capital of the Company has been
duly  authorized,  and is  validly  issued  and  outstanding  and fully paid and
nonassessable. The Preferred Shares, when issued and allotted in accordance with
this  Agreement,   will  be  duly  authorized,   validly  issued,   fully  paid,
nonassessable,  and free of any  preemptive  rights,  and will have the  rights,
preferences, privileges, and restrictions set forth in the Amended Articles, and
will be free and clear of any liens, claims,  encumbrances or third party rights
of any kind (except as specified in the Amended Articles) and duly registered in
the name of each Investor in the Company's  Shareholders  Register. The Ordinary
Shares  issuable  upon  conversion of the Shares have been duly  authorized  and
reserved for issuance by all  necessary  corporate  action and,  when issued and
allotted in accordance with the terms of the Amended Articles,  will be duly and
validly issued, fully paid,  non-assessable,  and free of any preemptive rights,
will have the rights, preferences,  privileges and restrictions set forth in the
Amended Articles, and will be free and clear of any liens, encumbrances, claims,
or third party rights of any kind  (except as specified in the Amended  Articles
of  Association)  and  duly  registered  in the  name  of each  Investor  in the
Company's Shareholders Register. The Ordinary Shares issuable upon conversion of
the Shares have been duly  authorized and reserved for issuance by all necessary
corporate  action and, when issued and allotted in accordance  with the terms of
the  Amended   Articles,   will  be  duly  and  validly   issued,   fully  paid,
non-assessable,  and  free of any  preemptive  rights,  will  have  the  rights,
preferences,  privileges and restrictions set forth in the Amended Articles, and
will be free and clear of any liens, encumbrances, claims, or third party rights
of any kind  (except as specified in the Amended  Articles of  Association)  and
duly  registered  in the name of each  Investor  in the  Company's  Shareholders
Register. The Company is not under any obligation to register for trading on any
securities  exchange any of its currently  outstanding  securities or any of its
securities which may hereafter be issued. Since its incorporation, there has

<PAGE>

been no declaration or payment by the Company of dividends,  or any distribution
by the  Company  of  any  assets  of any  kind  to  any of its  shareholders  in
redemption  of or as the  purchase  price for any of the  Company's  securities.
Immediately  after the Closing and the exercise of the  Warrants the  authorized
share  capital of the Company  shall be as all  specified in the  capitalization
table attached hereto as Schedule 20.1(B).

     20.3 Ownership of Shares. Prior to the Closing, the shareholders identified
in Schedule 20.3 are the lawful owners,  beneficially  and of record,  of all of
the issued and outstanding shares as set forth therein,  and all rights thereto,
free and  clear  of all  liens,  claims,  charges,  encumbrances,  restrictions,
rights, options to purchase,  proxies, voting trust and other voting agreements,
calls or commitments of every kind,  and none of the said  individuals  owns any
other shares,  options or other rights to subscribe for, purchase or acquire any
capital stock of the Company from the Company or from each other.

     20.4  Subsidiaries.  The  Company  does  not  own  any  of the  issued  and
outstanding share capital of any other company,  and is not a participant in any
partnership or joint venture.

     20.5  Directors,  Officers.  All the directors of the Company are listed in
Schedule  20.5.  Other than is set forth in Section 9 above,  the Company has no
agreement,  obligation  or  commitment  with  respect  to  the  election  of any
individual or individuals to the Board and there is no voting agreement or other
arrangement among the Company's  shareholders.  The sole officers of the Company
are Mr. Lior  Hessel,  Mr. Ohad Hessel and Mr.  Erez  Goldman.  All  agreements,
commitments  and  understandings,  whether  written or oral, with respect to any
compensation  to be provided to any of the Company's  directors or officers have
been fully disclosed in writing to the Investor.

     20.6 Financial Statements.  The Company has furnished the Investor with its
(i) audited financial  statements as of and for the year ended December 31, 1999
and (ii)  trial  balance  for March  31,  2000,  ((i) and (ii) are  collectively
referred to as the "Financial  Statements"  and are attached  hereto as Schedule
20.6)  (the  "Financial  Statements").  The  Financial  Statements  are true and
correct in all material  respects,  are in accordance with the books and records
of the Company and have en prepared in accordance with Israeli GAAP consistently
applied,  and  fairly  and  accurately  present  in all  material  respects  the
financial  position  of the  Company  as of such  dates and the  results  of its
operations for the periods then ended. The Company has no liabilities,  debts or
obligations,  whether  accrued,  absolute or contingent  other than  liabilities
reflected  or  reserved  against in the  Financial  Statements.  The Company was
established in July 4, 1999,  and since its inception,  the Company has operated
only in the ordinary course of business. There has not been:

          20.6.1  any  material  change in the  assets,  liabilities,  condition
     (financial or otherwise) or business of the Company from that  reflected in
     the Financial Statements;

          20.6.2 any  damage,  destruction  or loss,  whether or not  covered by
     insurance,  materially  and  adversely  affecting  the assets,  properties,
     conditions  (financial or otherwise),  operating results or business of the
     Company;

          20.6.3 any waiver by the Company of a valuable  right or of a material
     debt owed to it;

          20.6.4 any  satisfaction  or discharge of any material lien,  material
     claim or material  encumbrance or payment of any material obligation by the
     Company,  except  in the  ordinary  course  of  business  and  that  is not
     individually  or in  the  aggregate  adverse  to  the  assets,  properties,
     condition  (financial or otherwise),  operating  results or business of the
     Company;

<PAGE>

          20.6.5 any  material  change or  amendment  to a material  contract or
     material  arrangement  by  which  the  Company  or any of their  assets  or
     properties is bound or subject;

          20.6.6  any  material  change  in  any  compensation   arrangement  or
     agreement with any employee of the Company;

          20.6.7 any loans made by the Company to its  employees,  officers,  or
     directors  other  than  travel  advances  made in the  ordinary  course  of
     business;

          20.6.8 any sale,  transfer or lease of, except in the ordinary  course
     of  business,  or mortgage or pledge or  imposition  of lien on, any of the
     Company's assets;

          20.6.9 any change in the accounting  methods or accounting  principles
     or practices employed by the Company; or

          20.6.10  any other  event or  condition  of any  character  that would
     materially adversely affect the assets, properties, condition (financial or
     otherwise), operating results or business of the Company.

     20.7  Authorization;  Approvals.  All  corporate  action on the part of the
Company necessary for the authorization, execution, delivery, and performance of
all the of Company's obligations under this Agreement and for the authorization,
issuance,  and allotment of the Preferred Shares being sold under this Agreement
and of the Ordinary Shares issuable upon conversion of the Preferred  Shares has
been (or will be) taken prior to the Closing. This Agreement,  when executed and
delivered by or on behalf of the Company, shall constitute the valid and legally
binding  obligations of the Company,  legally enforceable against the Company in
accordance with their respective terms. No consent,  approval,  order,  license,
permit,  action by, or authorization of or designation,  declaration,  or filing
with any governmental  authority on the part of the Company is required that has
not been, or will not have been, obtained by the Company prior to the Closing in
connection with the valid execution,  delivery and performance of this Agreement
or the offer, sale, or issuance of the Preferred Shares.

     20.8 Compliance with Other  Instruments.  The Company is not in default (a)
under its Memorandum or Articles of Association or other formative documents, or
under any note, indenture,  mortgage, lease, agreement, contract, purchase order
or other instrument, document or agreement to which the Company is a party or by
which it or any of its  property is bound or affected or (b) with respect to any
law, statute, ordinace, regulaton, order, writ, injunction,  decree, or judgment
of any court or any governmental department,  commission,  board, bureau, agency
or instrumentality,  domestic or foreign, which default, in any such case, would
adversely  affect or in the future is reasonably  likely to adversely affect the
Company's  business,  prospects,  condition  (financial or  otherwise,  affairs,
operations or assets. No third party is in default under any agreement, contract
or other instrument, document or agreement to which the Company is a party or by
whichit or any of its  property  is  affected.  The Company is not a party to or
bound by any order,  judgment,  decree or award of any  governmental  authority,
agency, court, tribunal or arbitrator.

     20.9 No Breach.  Neither the execution  and delivery of this  Agreement nor
compliance by the Company with the terms and provisions hereof or thereof,  will
conflict  with,  or  result  in a breach  or  violation  of,  any of the  terms,
conditions and provisions of: (i) the Company's Memorandum of Association or the
Articles of Association, or other governing instruments of the Company, (ii) any
judgment,  order,  injunction,  decree,  or ruling of any court or  governmental
authority, domestic or

<PAGE>

foreign,  (iii) any agreement,  contract,  lease, license or commitment to which
the Company or any  Subsidiary  is a party and which would impair the ability of
the Company to execute or deliver or perform any of the  Agreement  transactions
or (iv)  applicable  law. Such  execution,  delivery and compliance will not (a)
give to others any rights,  including  rights of  termination,  cancellation  or
acceleration,  in or with  respect  to any  agreement,  contract  or  commitment
referred to in this paragraph, or to any of the properties of the Company or (b)
otherwise  require the consent or  approval  of any  person,  which,  consent or
approval has not heretofore been obtained.

     20.10 Records.  The minute books of the Company which have been provided to
the  Investor  contain  accurate  and  complete  copies of the  minutes of every
meeting of the Company's  shareholders and Board of Directors (and any committee
thereof). No resolutions have been passed,  enacted,  consented to or adopted by
the directors (or any committee thereof) or shareholders of the Company,  except
for those contained in such minute books.  The corporate  records of the Company
have been  maintained in accordance with all applicable  statutory  requirements
and are complete and accurate in all respects.

     20.11 Ownership of Assets.  The Company does not currently lease or license
any property with the exception of the Company's office space located at Science
Park, Nesher,  Israel, true and correct copies of the leases for which have been
provided to the  Investor.  The Company does not own any assets other than those
set forth in Schedule 20.11 hereto.

     20.12 Intellectual Property and Other Intangible Assets.

          20.12.1 Other than components and sub-systems  which have been legally
     acquired, the Company owns and has developed,  free and clear of all liens,
     claims and  restrictions,  all patents,  trademarks,  service marks,  trade
     names and  copyrights,  and  applications  and rights  with  respect to the
     foregoing, and all trade secrets, including know-how,  inventions,  designs
     processes,  works of authorship,  computer  programs and technical data and
     information   (collectively  herein   "Intellectual   Property")  used  and
     sufficient  for use in the conduct of its business as now  conducted and as
     proposed to be conducted under the Business Plan,  without  infringing upon
     or  violating  any  right,  lien,  or claim of  others,  including  without
     limitation  the Founder,  past and present  employees  and employers of the
     Founder,  and past and  present  employees  and  employers  of the past and
     present employees of the Company. The Company is not obligated or under any
     liability  whatsoever  to make any  payments by way of  royalties,  fees or
     otherwise  to any owner or licensee  of, or other  claimant to, any patent,
     trademark,  service mark, trade name,  copyright or other intangible asset,
     with  respect to the use thereof or in  connection  with the conduct of its
     business as now conducted or as proposed to be conducted or otherwise.

          20.12.2 Any and all  Intellectual  Property of any kind which has been
     developed,  is  currently  being  developed,  or will be  developed  in the
     future,  by any employee of the Company shall be the property solely of the
     Company.  The Company has taken  security  measures to protect the secrecy,
     confidentiality and value of all the Intellectual Property,  which measures
     are reasonable and customary in the industry in which the Company operates.
     The Founder and each of the Company's  employees  have entered into written
     agreements  with  the  Company  assigning  to the  Company  all  rights  in
     Intellectual  Property  developed in the course of their  employment by the
     Company and each of the Company's  employees and other persons who,  either
     alone or in concert with others, developed, invented, discovered,  derived,
     programmed or designed the Intellectual  Property,  or who has knowledge of
     or  access  to  information  about  the  Intellectual  Property,  including
     (without  limitation)  the Founder,  have entered into a written  agreement
     with the Company which has been provided to the Investor.

<PAGE>

          20.12.3 The Company has not received any communications  alleging that
     the Company has violated or by conducting  its business as proposed,  would
     violate,  any of the  patents,  trademarks,  service  marks,  trade  names,
     copyrights or trade secrets or other proprietary rights of any other person
     or entity.  Neither  the  Founder  nor any of the  Company's  employees  is
     obligated under any contract (including licenses,  covenants or commitments
     of any nature) or other  agreement,  or subject to any judgment,  decree or
     order of any court or administrative  agency, that would interfere with the
     use of the  Founder's  or such  employee's  best  efforts  to  promote  the
     interests of the Company,  as the case may be, or that would  conflict with
     the  Company's  business as  conducted  and as  proposed  to be  conducted.
     Neither the execution nor delivery of the Agreement, nor the carrying on of
     the Company's business by the employees of the Company, as the case may be,
     nor the conduct of the Company's business as proposed to be conducted, will
     conflict with or result in a breach of the terms,  conditions or provisions
     of, or constitute a default  under,  any  contract,  covenant or instrument
     under which the Founder or any of s uch  employees  are now  obligated.  It
     isnot,  and will not  become,  necessary  to utilize any  invention  of the
     Founder or the Company's employees (or people the Company or any Subsidiary
     currently  intends to hire) made prior to their  employment  by the Company
     other than those that have been  assigned  to the  Company  pursuant to the
     Proprietary Information and Non-Competition Agreement signed by the Founder
     or such employee.

          20.13 Taxes.  The Company has not made any elections under  applicable
     laws or regulations (other than elections that related solely to methods of
     accounting, depreciation or amortization) that would have an adverse effect
     on  the  Company,  its  financial  condition,  its  business  as  presently
     conducted or proposed to be conducted or any of its  properties  or assets.
     The company has accurately prepared and timely filed all income and payroll
     tax  returns and  filings  that are  required to be filed by them (the "Tax
     Returns")  and have paid or made  provision  for the payment of all amounts
     due pursuant to such  returns.  None of the Tax Returns has been audited by
     any taxing authority, the Company has not been advised that any of such Tax
     Returns  will be so  audited,  and  there are no  waivers  in effect of the
     applicable statute of limitations for any period. No deficiency  assessment
     or proposed adjustment of income or payroll taxes of the Company is pending
     and the  Company  has no  knowledge,  after due  inquiry,  of any  proposed
     liability  for any  tax to be  imposed  on the  Company  other  than in the
     ordinary course of business.

          20.14  Contracts.  Schedule 20.14 contains a true and complete list of
     all  contracts  and  agreements to which the Company is a party or by which
     its property is bound.  Each of such  contracts  and  agreements is in full
     force and effect, and neither the Company nor any other party thereto is in
     breach  thereof.  True and correct  copies of all such  contracts have been
     delivered to the  Investor.  Except as set forth on Schedule  20.14 hereto,
     the Company does not have any employment or consulting contracts,  deferred
     compensation  agreements or bonus,  incentive,  profit-sharing,  or pension
     plans currently in force and effect, or any  understanding  with respect to
     any of the foregoing.

          20.15  Litigation.  No action,  proceeding or governmental  inquiry or
     investigation  is pending or  threatened  against the Company or any of its
     officers,  directors,  or employees (in their capacity as such), or against
     the  Founder,  or against any of the  Company's or  properties,  before any
     court,   arbitration   board  or  tribunal  or   administrative   or  other
     governmental agency, nor is there is any basis for the foregoing.  There is
     no action, suit,  proceeding or investigation by the Company or the Founder
     currently pending or that the Company or the Founder intends to initiate.

          20.16  Interested  Party   Transactions.   No  officer,   director  or
     shareholder  of the Company,  or any affiliate of any such person or entity
     or of the Company,  has or has had, either  directly or indirectly,  (a) an
     interest in any person or entity which (i)  furnishes or sells  services or
     products  which are  furnished  or sold or are  proposed to be furnished or
     sold by the Company, or (ii) purchases from or

<PAGE>

     sells  or  furnishes  to  the  Company  any  goods  or  services,  or (b) a
     beneficial  interest in any contract or agreement to which the Company is a
     party  or by  which it may be bound  or  affected.  There  are no  existing
     arrangements or proposed  transactions between the Company and any officer,
     director,  or shareholder of the Company,  or any affiliate or associate of
     any such person.  No  employee,  shareholder,  officer,  or director of the
     Company  is  indebted  to the  Company,  nor is the  Company  indebted  (or
     committed to make loans or extend or guarantee credit) to any of them.

          20.17  Employees.  The Company does not have any  employment  contract
     with any officer or employee or any other consultant or person which is not
     terminable  by it at will  without  liability,  upon thirty (30) days prior
     notice. Except as set forth in Schedule 20.2, the Company does not have any
     deferred  compensation  or stock  option  covering  any of its  officers or
     employees.  The Company has complied with all applicable  employment  laws.
     Schedule   20.17  hereto  lists  all  employees  of  the  Company  and  all
     employment,  non-competition  and  confidentiality  agreements  between the
     Company and any employee or  consultant of the Company or any other entity.
     True and  correct  copies of such  agreements  have been  delivered  to the
     Investors.  To the  best  of the  Company's  and the  Founder's  knowledge,
     neither the  employment by the Company of any of the  Company's  employees,
     nor the engagement by the Company with any of its consultants,  constitutes
     or is likely to constitute a breach of any of such persons  obligations  to
     third parties,  including  non-competition or confidentiality  obligations.
     All  obligations,  commitments  and  liabilities  in  connection  with  the
     employment of the Company's  employees  (including  without  limitation the
     payments to the Income Tax Authority and the National  Security)  have been
     fully paid by the  Company.  In  addition,  the  Company  does not have any
     obligations,  commitments  or  liabilities  to  its  former  employees  who
     resigned or commenced working in the Company.

          20.18  Environment  and Health.  The Company is in  compliance  in all
     material respects with all applicable  Environmental and Health Laws, which
     compliance   includes  the  possession  by  the  Company  of  all  permits,
     approvals,  licenses and other governmental  authorizations  required under
     applicable health and/or  environmental laws, and compliance with the terms
     and  conditions  thereof.  The Company has not received any notice or other
     communication (in writing or otherwise),  whether from a governmental body,
     citizens group, employee or otherwise, that alleges that the Company is not
     in compliance  with any  Environmental  and Health Law, and, to the Company
     and the  Founder's  best  knowledge,  there are no  circumstances  that may
     prevent or interfere with the Company's  compliance with any  Environmental
     and Health Law in the future.  For  purposes  of this  Section  20.18:  (i)
     "Environmental  and Health  Law" means any Israeli ,  regulations,  orders,
     decrees,  standards, and other legal or administrative requirement relating
     to  pollution,  hazardous  materials or  protection  of human wealth or the
     environment  (including  ambient air,  surface  water,  ground water,  land
     surface or subsurface strata),  including any such requirement  relating to
     emissions,  discharges,  releases or  threatened  releases of  Materials of
     Environmental   Concern,   or  otherwise   relating  to  the   manufacture,
     processing,  distribution,  use, treatment, storage, disposal, transport or
     handling of Materials of  Environmental  Concern;  and (ii)  "Materials  of
     Environmental Concern" include chemicals, pollutants, contaminants, wastes,
     toxic substances,  petroleum and petroleum products and any other substance
     that  is now  regulated  by any  Environmental  and  Health  Law or that is
     otherwise a danger to health, reproduction or the environment.)

     20.19 Insurance.  The Company has adequate and customary insurance policies
in force as described in Schedule 20.19.

     20.20 Governmental Authorizations.  Schedule 20.20 identifies each material
governmental  authorization,  license,  permit  approval and consent held by the
Company (the  "Governmental  Authorizations"),  and the Company has delivered to
Investor accurate and complete copies thereof.

<PAGE>

The  Governmental  Authorizations  are valid and in full force and  effect,  and
collectively constitute all Governmental  Authorizations necessary to enable the
Company to conduct its business in the manner in which its business is currently
being  conducted,  and as proposed to be  conducted  under the Company  Business
Plan. The Company is, and at all times has been, in substantial  compliance with
the  terms  and  requirements  of  the  Governmental   Authorizations.   Without
derogating  from the  foregoing,  the Project has been approved by the OCS as an
approved plan as more fully set forth is Schedule 20.20.

     20.21 Full Disclosure.  Neither this Agreement nor any certificates made or
delivered in  connection  herewith  contains any untrue  statement of a material
fact or omits to state a material fact necessary to make the  statements  herein
or therein not misleading, in view of the circumstances in which they were made.
There is no material fact or  information  relating to the business,  prospects,
condition  (financial  or  otherwise),  affairs,  operations,  or  assets of the
Company that has not been disclosed to the Investor in writing by the Company.

     20.22 Financial Liabilities. The Company's liabilities are not in excess of
$US30,000 and is reflected in the Company's latest financial report as exhibited
to  the  Investor.   Additionally,  the  Company  shall  cause  all  outstanding
liabilities towards its shareholders (shareholder loans) which are not repaid to
be converted into equity prior to the Closing of this Agreement.

21. Representations and Warranties of the Investors

The Investor hereby  represents and warrants  severally and not jointly,  to the
Company as follows:

     21.1  Enforceability.  Such  Investor  has been  duly  incorporated  and is
validly existing under the laws of the State of Colorado.  This Agreement,  when
executed and delivered by such Investor,  will constitute the valid, binding and
enforceable obligations of such Investor.

     21.2  Authorization.   The  execution,  delivery  and  performance  of  the
obligations  of  such  Investor  hereunder  have  been  duly  authorized  by all
necessary corporate action.

     21.3  Experience.  The Investor is  experienced  in investments in start-up
companies such as the Company and has reviewed and inspected all of the data and
information  provided  to it by  the  Company  in  response  to its  request  in
connection  wtith this  Agreement.  The  Investor is also basing its decision to
invest  herein on  reliance  of the  Company's  representations  and  warranties
contained  herein..  The  Investor  is aware that that the Company is a start-up
company, that its technology is under development and that there is no guarantee
of success.

22. Warrants to the Investor.

At the Closing,  the Company  shall issue to the  Investor  Warrants to purchase
Preferred  shares of the Company in the form of Schedules  22.1  ("Warrant  A"),
22.2  ("Warrant  B"), 22.3  ("Warrant C"), 22.4 ("Warrant D") and 22.5 ("Warrant
E") subject to the following general provisions:

     22.1 Warrant A. Warrant A shall be  exercisable  in whole  beginning on the
date of the signing of this  Agreement  and  remaining in effect for a period of
seventy (70) days thereafter (the "Warrant A Period").

Warrant A entitles the  Investor to purchase  from the Company  8,900  Preferred
Shares  of  the  Company  par  value  NIS  0.01  (the  "Warrant  A  Shares")  in
consideration for the payment to the

<PAGE>

Company of  US$1,000,000.  Such number of Preferred Shares shall be adjusted for
any   share   combination   or   sub-division,   bonus   shares   or  any  other
recapitalization of the Company's shares (a  "Recapitalization  Event"). For the
removal of doubt,  the  exercise of the  aforementioned  Warrant A Shares  shall
entitle the Investor to hold 5% of the Company's authorized share capital at the
time of exercising  the Warrant A shares based on a Company value of $20,000,000
(Twenty Million USD).

     22.2 Warrant B. Warrant B shall be  exercisable  in whole  beginning on the
date of e signing of this  Agreement and remaining in effect for a period of one
hundred (100) days thereafter (the "Warrant B Period").

Warrant B entitles the  Investor to purchase  from the company  8,900  Preferred
Shares  of  the  Company  par  value  NIS  0.01  (the  "Warrant  B  Shares")  in
consideration  for the  payment to the Company of  US$1,000,000.  Such number of
Preferred  Shares  shall be adjusted  for any  Recapitalization  Event.  For the
removal of doubt,  the  exercise of the  aforementioned  Warrant B Shares  shall
entitle the Investor to hold 5% of the Company's authorized share capital at the
time of exercising  the Warrant B Shares based on a Company vlaue of $20,000,000
(Twenty Million USD).

     22.3 Warrant C. Warrant C shall be  exercisable  in whole  beginning on the
date of the signing of this  Agreement  and  remaining in effect for a period of
one hundred thirty (130) days thereafter (the "Warrant C Period").

Warrant C entitles the  Investor to purchase  from the company  8,901  Preferred
Shares  of  the  Company  par  value  NIS  0.01  (the  "Warrant  C  Shares")  in
consideration  for the  payment to the Company of  US$1,000,000.  Such number of
Preferred  Shares  shall be adjusted  for any  Recapitalization  Event.  For the
removal of doubt,  the  exercise of the  aforementioned  Warrant C Shares  shall
entitle the Investor to hold 5% of the Company's authorized share capital at the
time of exercising  the Warrant C Shares based on a Company value of $20,000,000
(Twenty Milllion USD).

     22.4 Warrant D. Warrant D shall be  exercisable  in whole  beginning on the
date of the signing of this  Agreement  and  remaining in effect for a period of
one hundred sixty (160) days thereafter (the "Warrant D Period").

Warrant D entitles the  Investor to purchase  from the Company  8,901  Preferred
Shares  of  the  Company  par  value  NIS  0.01  (the  "Warrant  D  Shares")  in
consideration  for the  payment to the Company of  US$1,000,000.  Such number of
Preferred  Shares  shall be adjusted  for any  Recapitalization  Event.  For the
removal of doubt,  the  exercise of the  aforementioned  Warrant D Shares  shall
entitle the Investor to hold 5% of the Company's authorized share capital at the
time of exercising  the Warrant D Shares based on a Company value of $20,000,000
(Twenty Million USD).

     22.5 Warrant E. Warrant E shall be exercisable in whole  beginning upon the
exercise of at least three (3) of the above  mentioned  Warrants in this Section
22 and until the  earlier of (i) twenty  four (24)  months  from the date of the
signing of the Agreement, or (ii) the consummation of an IPO or an Exit.

Warrant E entitles the Investor to purchase  from the Company  18,000  Preferred
Shares  of  the  Company  par  value  NIS  0.01  (the  "Warrant  E  Shares")  in
consideration  for the  payment to the Company of  US$5,000,000.  Such number of
Preferred  Shares  shall be adjusted  for any  Recapitalization  Event.  For the
removal of doubt,  the  exercise of the  aforementioned  Warrant E Shares  shall
entitle the Investor to hold 7.07% of the Company's  authorized share capital at
the time

<PAGE>

of  exercising  the  Warrant E Shares  based on a Company  vlaue of  $50,000,000
(Fifty Million USD).

     22.6 The Warrants shall be exercised in the manner set forth in the warrant
certificates.

     22.7 In order for the  Investor to exercise  Warrant C and/or  Warrant D he
must exercise either Warrant A or Warrant B. Failure to exercise  Warrants A and
Warrant B will cause the expiration of Warrants C and D.

     22.8 The  Company  and the  Founder  agrees  that the  Investor at his sole
discretion  and with the  consent  of the  Company  which  consent  shall not be
unreasonably  withheld,  shall have the right to assign his right of  exercising
all of the above  mentioned  Warrants to any other third party provided that the
third party undertakes all rights and obligations  contained herein. The parties
acknowledge  that in any  assignment  a  commission  up to six  percent  (6%) in
shares/cash may be expected by some or all of the assign's agent.

23. Chief Scientist

Schedule 23 includes a complete  list of all grants,  incentives  and  subsidies
("Grants")  from the  Government of the State of Israel or any agency thereof to
the Company, including, without limitation,  grants from the Office of the Chief
Scientist  (hereinafter:  the  "OCS")  Copies of all  letters of  approval,  and
supplements  thereto,  granted  to the  Company  by the OCS (and  copies  of all
applications  with respect to extension of plans which are not  reflected in the
Company  Financial  Statements)  are attached hereto as Schedule 23. The Company
has not received  any Grant in relation to the  building  that they lease within
the  Encouragement  of  Capital  Investments  Law,  1959.  The  Company  has not
approached the  Investment  Center of the Ministry of Industry and Trade for any
purpose.  The Company is in compliance with the material terms and conditions of
the Grants and has fulfilled all the undertakings  relating thereto. The Company
has received funds from the OCS and it is required to repay royalties to the OCS
from its sales  until  full  repayment  of the  funds.  The  Company  shall have
received  approval  from  and  provided  all  notices  to the  OCS  required  to
consummated the Agreement and the transactions contemplated herein.

24. Registration Rights

The registration rights agreement attached as Schedule 24 will allow the current
shareholders  to join any  demand  registration  and  "piggyback"  rights of the
Investor's  shares  at the rate of  twenty  five  percent  (25%) to the  current
shareholders and seventy-five percent (75%) to the Investor.

25. Employee Share Incentive Plan

Options  constituting  fifteen  thousand  (15,000) of the Company's issued share
capital may be granted or sold to the  Company's  employees  under the  Employee
Share  Incentive  Plan to be approved by the Company of which 6,000  shares have
already been committed.

26. Employment Agreements

The  Founder  and the key  employees  shall  enter into  twenty  four (24) month
employment  agreement  with the Company under  reasonable  terms approved by the
Investor including a non-competition  undertaking which will survive termination
of the employment agreements.

<PAGE>

27. Expenses

Each party shall pay their own  expenses,  including but not limited to attorney
fees, in connection with the investment contemplated herein.

28. Stamp Tax.

The Company will pay the stamp duty on the issuance of the Preferred Shares.

29. Governing Law & Jurisdiction

This  Agreement  shall be  interpreted  in  accordance  with and governed in all
aspects by the laws of the State of  Israel.  The  competent  courts in Tel Aviv
shall have the  exclusive  jurisdiction  over all disputes  arising  between the
parties with respect to this Agreement, its implementation or interpretation.

30. General

     30.1 This  Agreement may be executed in several  counterparts  and all such
counterparts together shall be deemed to be the original and will constitute but
one and the same instrument.  To remove any doubt,  facsimile signature shall be
deemed as an original for all purposes.

     30.2 The failure or delay of either party to require the performance of any
term under this  Agreement,  or the waiver by either  party of any breach  under
this Agreement,  shall not prevent subsequent  enforcement of such terms, nor be
deemed a waiver of any subsequent or prolonged breach.

     30.3 Any notice  sent by one party to the other by  registered  mail to the
addresses  heading the Agreement,  or to addresses  provided by one party to the
other  from  time to time - will be deemed  to have  been  delivered  on the 7th
business day after the day of mailing in Israel.  Fax messages will be deemed to
have been delivered one business day after transmission.

     30.4 This  Agreement and the Exhibits and Schedules  hereto  constitute the
full and entire  understanding  and agreement between the parties with regard to
the  subject  matters  hereof and  thereof.  Any term of this  Agreement  may be
amended  and  the   observance  of  any  term  hereof  may  be  waived   (either
prospectively or retroactively and either generally or in a particular instance)
only with the written consent of the parties to this Agreement.

31 Miscellaneous

     31.1 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.

     31.2  Survival of  Representations.  All  representations,  warranties  and
agreements  made by any party to this Agreement or pursuant hereto shall survive
the  Closing,  except that with respect to the Company the  representations  and
warranties set forth in Sections 20.2,  20.13 and 23, for the limitation  period
in accordance with any applicable law.

     31.3  Successors  and Assigns;  Assignment.  Except as otherwise  expressly
limited herein, the  provisions hereof  shall be  binding upon, the  successors,

<PAGE>

assigns, heirs, executors, and administrators of the parties hereto. None of the
rights,  privileges,  or obligations  set forth in, arising under, or created by
this  Agreement  may be assigned  or  transferred  without the prior  consent in
writing of each party to this  Agreement,  with the exception of assignments and
transfers from the Investor to any other entity which controls, is controlled by
or is under common control with, such Investor.  provided, however, that no such
assignment or transfer shall become  effective  unless each such  transferee has
provided  the Company  with a  confirmation  in writing  that it is bound by all
terms and conditions of this Agreement as if it were an original party to it.

For the purposes of this Agreement,  a person shall be deemed to control another
if  the  former  (a)  owns   (directly  or   indirectly   through  one  or  more
intermediaries)  fifty percent (50%) or more of the issued and outstanding share
capital of the latter,  or (b)  possesses  the ability  (directly or  indirectly
through one or more  intermediaries)  to designate or cause the  designation  of
fifty  percent  (50%) or more of the  directors of the latter or of its managing
director,  general  manager or chief  executive  officer  (regardless  of actual
title) or (c)  possess the power  (directly  or  indirectly  through one or more
intermediaries)  to direct or cause the direction of the management and policies
of the latter whether through the ownership of voting securities, by contract or
otherwise.

     31.4 Best Efforts.  Subject to the terms and conditions of this  Agreement,
each of the  parties  hereto will use its best  efforts to take,  or cause to be
taken, all action, and to do, or cause to be done, all things necessary,  proper
or advisable  under  applicable  laws and  regulations  to  consummate  and make
effective the transactions contemplated by this Agreement.

IN WITNESS WHEREOF THE PARTIES HAVE SIGNED AS OF THE DATE SET FORTH ABOVE.

--------------------

ORGANITECH LTD.                              INCUBATE THIS, INC.

By: /s/ Lior Hessell                         By: /s/ Sharone Perlstein
---------------------                        --------------------------

/s/ Prof Dany Volf                           /s/ Zohar Gendler
---------------------                        --------------------------

<PAGE>

Each of the undersigned  hereby: (1) confirms his agreement to the terms of this
Agreement;  and (2) grants any  consent  that may be  required  from him/it as a
shareholders of the Company; and (3) waives y rights, including, but not limited
to,  preemptive  right, the waiver of which may be required for the consummation
of this Agreement and the transactions contemplated herein; and (4) covenants to
vote in favor of any  resolution  which will be needed in order to  perfect  the
Agreement  and/or  to  comply  with  Company's   obligations  pursuant  to  said
Agreement;  and (5) covenants to refrain from voting in favor of any  resolution
which might negate the Company's obligations pursuant to said Agreement; and (6)
confirms  that as of the date  hereof,  he/it  has no  claim or cause of  action
whatsoever against the Company.

AGREED AND ACCEPTED:

1. Lior Hessel                Date: June 20, 2000

/s/ Lior Hessel
------------------

2. TEIC                       Date:June 20, 2000

/s/ Dalia Mor
------------------

3. D.G. Pizza, Ltd.           Date: June 20, 2000

/s/D. Gold
------------------

4. Arie Heller                Date: June 20, 2000

/s/ Arie Heller
------------------

5. Anat Heller                Date:June 20, 2000

/s/ Anat Heller
------------------

<PAGE>

                                    EXHIBIT A

                               FOUNDERS AGREEMENT

<PAGE>

                                    EXHIBIT B

                                    PROJECT B

<PAGE>

SCHEDULE 2.2.1(a)(A)

MINUTES OF AN EXTRAORDINARY  GENERAL MEETING OF SHAREHOLDERS OF THE COMPANY DULY
CONVENED AND HELD ON July 10, 2000

ORGANITECH LTD

MINUTES OF AN EXTRAORDINARY  GENERAL MEETING OF SHAREHOLDERS OF THE COMPANY DULY
CONVENED AND HELD ON July 10, 2000

Present

Arie Heller
Anat Heller
Lior Hessel
Technion  Entrepreneurial  Incubator Co. Ltd (Dalia Mor)

Chairman of the Meeting

Lior Hessel

Agenda

1. Special  Resolutions  effecting  amendments to the Company's  Memorandum  and
Articles of Association with respect to:

o Creation of a new class of shares.

1.2 Adopting new Articles of Association.

UNANIMOUSLY RESOLVED:

1. To Waive any and all formal  requirements  relating  to  convening  a general
meeting of shareholders  under the Company's  Articles of Association and/or any
agreement  and/or  any  applicable  law,  including  - but not  limited to - the
requirement for 21 days prior notice for adoption of special resolutions.

+ To adopt the following resolutions as special resolutions:

2.1 To create a new class of shares in the Company's registered share capital to
be  called  Series A  Preferred  Shares  (hereinafter  "Preferred  Shares"),  by
converting an aggregate of five hundred thousand  (500,000) Ordinary Shares, NIS
0.01 nominal  value each,  from the  Company's  registered  and  unissued  share
capital, into five hundred thousand (500,000) Preferred Shares . Each Preferred

<PAGE>

Share shall bear a nominal value of NIS 0.01 and shall have such rights attached
thereto  as  detailed  in the  Company's  Articles  of  Association,  as amended
pursuant to the resolution detailed below.

2.2 To redefine  the rights  attached to the  Ordinary  Shares NIS 0.01  nominal
value each in the Company's registered and unissued, as well as in the Company's
authorized  and issued share capital,  as detailed in the Company's  Articles of
Association, as amended pursuant to the resolution detailed below.

2.3  To  effect   amendments   to  the  Company's   Memorandum  of   Association
corresponding  to the  amendments  effected  pursuant to  resolutions  2.1 - 2.2
above.

2.4 To cancel the existing  Articles of  Association  of the Company and replace
them with the Articles of Association  attached as Schedule 2.2.1(a)(B) to these
minutes.

There being no further business the Chairman adjourned the meeting

/s/ Lior Hessel
----------------------------------------
Lior Hessel

/s/ Arie Heller
----------------------------------------
Arie Heller

/s/ Anat Heller
----------------------------------------
Anat Heller

/s/ Dalia Mor
----------------------------------------
Technion Entrepreneurial Incubator Co. Ltd

/s/ D.Gold
----------------------------------------
D.G. Pizza Ltd

036 organitech 18.7
Schedule 2.2.1(a)B

Amended and Restated Articles of Association

<PAGE>

SCHEDULE 2.2.1(b)

ORGANITECH LTD.

MINUTES OF A MEETING OF THE COMPANY'S  BOARD OF DIRECTORS DULY CONVENED AND HELD
ON July 10, 2000

ORGANITECH LTD.

MINUTES OF A MEETING OF THE COMPANY'S  BOARD OF DIRECTORS DULY CONVENED AND HELD
ON JULY 10, 2000

Present

Shmuel Hessel
Arie Heller
Anat Heller
Technion Entrepreneurial Incubator Co. Ltd (Dalia Mor)
Sharon Perlstein
Ohad Hessel
Lior Hessel

Chairman of the Meeting

---------------

Agenda

1. Approval of Investment Agreement.
2. Issuance of Shares.

UNANIMOUSLY RESOLVED

1. That the Investment Agreement dated June 20, 2000, by and between the Company
and the Incubate  This Inc., a company duly  incorporated  under the laws of the
State of Colorado,  USA ( hereinafter the "Investor"),  including all agreements
and other instruments  attached thereto  (hereinafter the "Agreement"),  and the
transactions contemplated thereunder be and hereby are approved and ratified and
that Lior Hessel has been,  designated and authorized  both on behalf of, and as
an officer of the Company,  to execute the  Agreement and to take or cause to be
taken such action which this Board of Directors  might have authority to take in
connection  with the creation,  issuance and sale of the Preferred  Shares to be
issued to the Purchasers thereunder and for the consummation of the transactions
contemplated thereunder.

2. That the Company be and hereby is,  further to the  Agreement,  authorized to
issue and sell and does hereby issue and sell as follows:

To the Investor,  an aggregate of twelve thousand four hundred sixty (12,460) of
the Company's Preferred Shares, NIS 0.01 nominal value each.

<PAGE>

3. That Lior Hessel is authorized to take any and all action which they may deem
necessary or  desirable  to carry out the  purposes and intent of the  foregoing
resolutions,  including, but not limited to execute, make, verify,  acknowledge,
deliver, file and sign any and all applications,  certificates,  forms, notices,
reports,  instruments,  agreements and documents,  and to take any and all other
action as may be necessary in this regard.

There being no further business the Chairman adjourned the meeting.

/s/Lior Hessel           /s/ Ohad Hessel        /s/Shmuel Hessel
-------------------      ------------------   --------------------
Lior Hessel              Ohad Hessel            Shmuel Hessel

/s/ Dani Gold            /s/ Arie Heller        /s/Zohar Gendler
-------------------      ------------------   --------------------
Dani Gold                Arie Heller            Zohar Gendler

037(vers 3) organitech 18.7

<PAGE>

SCHEDULE 2.2.1(c)

SHARE CERTIFICATES

<PAGE>

SCHEDULE 2.2.1(d)

(ORGANITECH'S LETTERHEAD)

COMPLIANCE CERTIFICATE

For   the   purpose   of  the   Closing   as  per   Section   2.2.1(d)   of  the
InvestmentAgreement   dated  as  of  _____,   2000,  (the  "Agreement")  by  and
betweenOrganitech   Ltd.   (the   "Company")   and  Incubate   This,   Inc  (the
"Investor"),the Company hereby certifies to the Investor as follows:

All  representations and warranties made by the Company in the Agreementare true
and  correct  as of  the  date  of the  Closing.All  covenants,  agreements  and
conditions  contained in the  Agreement  tobe  performed or complied with by the
Company prior to or at the Closinghave  been performed or complied with prior to
or at the Closing.Since the signing of the Agreement, there has been no material
adversechange  in the  financial  and/or  business  condition of the  Company.

IN WITNESS WHEREOF,  the undersigned has signed his name to thiscertificate this
__ day of ________, 2000.

ORGANITECH LTD.

/s/Lior Hessel
--------------
Lior Hessel

<PAGE>

SCHEDULE 2.2.1(e)

OPINION OF COUNSEL

________ , 2000

----------------------

----------------------

----------------------

Re: Opinion of Counsel

This Opinion Letter is provided to you at the request of the  Investorlisted  in
that  certain  Investment   Agreement  dated  _________,   2000,  byand  between
Organitech  Ltd (the  "Company") and Incubate This,  Inc.  (the"Investor")  (the
"Agreement") and pursuant to Section 2.2.1(e) of saidAgreement.

Except as otherwise  indicated  herein,  capitalized  terms used in  thisOpinion
Letter are defined as set forth in the Agreement.This Opinion Letter is governed
by and shall be interpreted  inaccordance  with the laws of the State of Israel.
The law  covered by  theopinions  expressed  herein is limited to the law of the
State of  Israel.Without  limiting the foregoing,  no opinion is rendered hereby
withrespect  to the laws of the United  States of  America.  Any  disputearising
under or in relation to this Opinion Letter shall be  resolvedexclusively in the
competent court of the Haifa district.

In addition to the other  assumptions on which I may rely, I have reliedupon the
factual representations made by the Company in Section 20 ofthe Agreement.

Based upon and subject to the foregoing I am of the opinion that:

1. The Company is a  corporation  duly  organized,  validly  existing and ingood
standing  under the laws of the State of Israel.  The Company  has  allnecessary
corporate power and authority to own or lease its  propertiesand  to conduct its
business as it is now being conducted.

2. The execution,  delivery and performance by the Company of  theAgreement  and
the transactions  contemplated thereby have been dulyauthorized by all requisite
corporate actions that have been taken bythe Company. The Agreement  constitutes
a valid and binding obligation ofthe Company  enforceable against the Company in
accordance with its terms.

3. Neither the  execution,  delivery and  performance  of the  Agreement  northe
consummation of the transactions  contemplated  thereby will (1)violate or be in
conflict  with any  provision  of the  Memorandum  ofAssociation  or Articles of
Association  of the Company;  or (2)  anyjudgment,  decree or order by which the
Company is bound or affected;  or(3) result in a breach or  constitute a default
under  applicable  law orany  contract  known to me, to which the  Company  is a
party.

4. All corporate  actions  necessary for the issuance,  sale and  deliveryof the
Preferred  Shares as per  Sections  2 of the  Agreement  have  beentaken  by the
Company. The Shares have been validly issued,

<PAGE>

fully   paid-upand   are  free  and  clear  of  any  and  all  liens,   pledges,
claims,encumbrances    or   other   third   party    rights.    The    Company's
currentlyauthorized  share  capital  allows  for the  exercise  of the  Warrants
inaccordance  with  their  terms and to be free and  clear of any and  allliens,
ledges, claims, encumbrances or other third party rights.

5. Upon Closing of the transaction  contemplated by the Agreement  (andafter the
issuance of the Preferred Shares to the Investor) theauthorized capital stock of
the Company shall consist of three  million(3,000,000)  Ordinary Shares and five
hundred  thousand  (500,000)  Series  APreferred  Shares of which  ninety  seven
thousand one hundred forty  three(97,143)  Ordinary  Shares and twelve  thousand
four  hundred  sixty  (12,460)Preferred  Shares  are  issued,  fifteen  thousand
(15,000)  Ordinary  Sharesare  reserved  for  employees  and the  balance of the
Ordinary Shares andthe Preferred Shares are duly authorized and unissued.

To the best of my knowledge there are no outstanding preemptiverights,  options,
warrants or rights to subscribe for, or to purchase,  oragreements  with respect
to any such rights, or commitments to issue, anyshares of the Company, except as
set forth in the Agreement.

6. There is no approval, consent, authorization or other action by, ornotice to,
or filing with, any governmental  authority which has not beenexercised prior to
Closing which is necessary or required in connectionwith the execution, delivery
or  performance  by the  Company,  orenforcement  against  the  Company,  of the
Agreement and/or thetransactions contemplated thereby.

7. Except as disclosed in the  Agreement,  to our  knowledge  there is noaction,
proceeding,  governmental inquiry or investigation pendingagainst the Company or
any of the Company's properties before any  court,arbitration  board,  tribunal,
administrative  or other  governmentalagency.  The  Company is not a party to or
subject to the provisions ofany order, writ,  injunction,  judgment or decree of
any  court  orgovernmental  agency  or  instrumentality.  There  is  no  action,
suit,proceeding or investigation currently pending by the Company.

This  Opinion  Letter  speaks only as of its date and may be  reliedupon  by you
alone and only in  connection  with the  Agreement  and may notbe used or relied
upon by you or any other  person  for any other  purposewhatsoever,  without  my
prior written consent in each instance.

Very truly yours,

Avi Goldsobel, Adv.

<PAGE>

SCHEDULE 2.2.2

SHAREHOLDERS REGISTER

<PAGE>

SCHEDULE 20.1

MEMORANDUM AND ARTICLES OF ASSOCIATION

<PAGE>

SCHEDULE 20.2(A)

LIST OF SHAREHOLDERS

Shareholders

1. Mr. Lior Hessel 50,000 ordinary shares

2. D.G. Pizza Ltd. 20,000 ordinary shares

3. Technion Entrepreneurial Incubator Co. Ltd 20,000 ordinary shares

4. Arie and Anat Heller 7,143 ordinary shares

5. Employees (reserved) 15,000 ordinary shares

OPTIONS

There are no option or other security holders other than the employee options..

<PAGE>

                                SCHEDULE 20.2(B)

                              CAPITALIZATION TABLE

<PAGE>

SCHEDULE 20.3

LIST OF SHAREHOLDERS

Shareholders

1. Mr. Lior Hessel 50,000 ordinary shares

2. D.G. Pizza Ltd. 20,000 ordinary shares

3. Technion Entrepreneurial Incubator Co. Ltd 20,000 ordinary shares

4. Arie and Anat Heller 7,143 ordinary shares

<PAGE>

SCHEDULE 20.5

DIRECTORS OF THE COMPANY

List of current Directors:

1. Zohar Gendler
2. Danny Gold
3. Arie Heller
4. Lior Hessel
5. Ohad Hessel
6. Shmuel Hessel

<PAGE>

                                  SCHEDULE 20.6

                              FINANCIAL STATEMENTS

<PAGE>

                                 SCHEDULE 20.11

                                 LIST OF ASSETS

<PAGE>

                                 SCHEDULE 20.14

                        MATERIAL CONTRACTS AND AGREEMENTS

<PAGE>

                                 SCHEDULE 20.17

        EMPLOYEES, EMPLOYEE CONTRACTS, STOCK OPTIONS, NON-COMPETITION AND
                           CONFIDENTIALITY AGREEMENTS

<PAGE>

                                 SCHEDULE 20.19

                               INSURANCE POLICIES

<PAGE>

                                 SCHEDULE 20.20

                           GOVERNMENTAL AUTHORIZATIONS

                                    Attached

<PAGE>

SCHEDULE 22.1

WARRANT "A"

To: Incubate This, Inc.

Date: _______________

Warrant Certificate "A"

To Purchase Series A Preferred Shares of

ORGANITECH LTD.

for such consideration as detailed below

VOID AFTER 17:00 p.m.  (prevailing Tel Aviv time) On the last day of the Warrant
Period (defined below)

This is to certify that the holder  specified  above  ("Holder")  isentitled  to
purchase,  subject to the  provisions of this Warrant,  fromOrganitech  Ltd (the
"Company"),  beginning on ____________  and  remainingin  effect for a period of
seventy (70) days thereafter (the "WarrantPeriod"),  eight thousand nine hundred
(8,900) Series A Preferred Sharesof the Company par value NIS 0.01 (the "Warrant
Shares")  inconsideration  of the payment to the Company of One Million  Dollars
US(US$1,000,000)  (the "Exercise Price"), all subject to the terms andconditions
set forth below.

For the removal of doubt,  the exercise of the  aforementioned  Warrant  AShares
shall entitle the Investor to hold 5% of the Company's  authorizedshare  capital
at the time of  exercising  the  Warrant  A Shares  based on  aCompany  value of
$20,000,000 (Twenty Million USD).

1. Exercise of Warrant

(a) Exercise.  Subject to the provisions hereof, this Warrant may beexercised at
any time, in whole, during the Warrant Period. This Warrantshall be exercised by
notice to the Company,  and presentation  andsurrender  hereof to the Company at
the  principal  office  of the  Company,accompanied  by i) a  written  notice of
exercise and (ii) payment to theCompany,  for the account of the Company, of the
Exercise  Price for  thenumber  of Series A Preferred  Shares  specified in such
notice.  Suchnotice shall become  effective when given (the "Effective  Date")..
TheExercise  Price for the number of Series A Preferred  Shares  specified inthe
notice  shall be  payable  on the  Effective  Date,  in U.S.  dollars  orthe NIS
equivalent  thereof,  based on the Representative  Rate of Exchange published by
the Bank of Israel known as of the time of payment.

(b)  Issuance of the Warrant  Shares.  Upon  presentation  and  surrender of the
notice of  exercise,  accompanied  by the  payment  of the  Exercise  Price made
pursuant to section  1(a),  the Company  shall issue  promptly to the Holder the
shares to which the Holder is entitled thereto.

Upon receipt by the Company of the notice of exercise,  and,  ifapplicable,  the
Exercise Price, the

<PAGE>

Holder  shall be  deemed  to be  theHolder  of the  shares  issuable  upon  such
exercise, notwithstanding thatthe share transfer books of the Company shall then
be  closed  and  thatcertificates  representing  such  shares  shall not then be
actuallydelivered   to  the  Holder.   The  Company  shall  pay  all  taxes  and
othercharges  that may be payable in  connection  with the issuance of theshares
and the preparation and delivery of share certificates pursuantto this Section 1
in the name of the Holder,  but shall not pay any  taxespayable by the Holder by
virtue of the holding, issuance, exercise orsale of this Warrant by the Holder.

(c) No fractions of shares shall be issued in  connection  with  theexercise  of
this  Warrant,  and the number of shares  issued shall  berounded of the nearest
whole number.

(d) The Company covenants that the Series A Preferred Shares  issuablehereunder,
when  issued  and  allotted  in  accordance  with  this   Warrant,will  be  duly
authorized,  validly issued,  fully paid,  non-assessable,free  of preemptive or
similar rights; will have the rights, preferencesand privileges set forth in the
Corporate Documents of the Company;  willbe free and clear of any Liens and duly
registered in the name of theInvestor in the Company's shareholders register.

2.  Reservation of shares;  Preservation  of Rights of Holder The Company hereby
agrees  that at all times it will  maintain  andreserve,  free from  pre-emptive
rights, such number of authorized  butunissued Series A Preferred Shares so that
this  Warrant  may be  exercisedwithout  additional  authorization  of  Series A
Preferred Shares aftergiving effect to all other warrants, options,  convertible
securities  andother  rights to  acquire  shares  of the  Company.  The  Company
furtheragrees   that   it  will   not,   by   charter   amendment   or   through
reorganizationconsolidation  merger,  dissolution  or sale of assets,  or by and
othervoluntary  act, avoid or seek to avoid the observance or performance  ofany
of the covenants stipulations or conditions to be observed orperformed hereunder
by  the  Company,  or the  provisions  contained  in  theCompany's  Articles  of
Association  relating  to the rights of the  holdersof  the  Series A  Preferred
Shares.

3. Exchange or Loss of Warrant

Upon  receipt by the Company of  evidence  reasonably  satisfactory  to it ofthe
loss, theft, destruction or mutilation of this Warrant, and (in thecase of loss,
theft  or  destruction)  of  reasonably  satisfactoryindemnification,  and  upon
surrender  and  cancellation  of this  Warrant,  ifmutilated,  the Company  will
execute and deliver a new Warrant of  liketenor  and date.  Any such new Warrant
executed and delivered  shallconstitute and additional contractual obligation on
the part of theCompany,  whether or not the Warrant so lost,  stolen,  destroyed
ormutilated shall be at any time enforceable by anyone.

4. RIGHTS OF THE HOLDER

(a) Without limiting the foregoing or any remedies  available to theHolder,  the
Holder will be entitled to specific performance of theobligations hereunder, and
injunctive relief against actual or threatened  violations of the obligations of
any person subject to thisWarrant.

(b) The Holder  shall not,  by virtue  hereof,  be  entitled  to any rights of a
shareholder in the Company.

5. Termination

This  Warrant  and  the  rights   conferred   hereby  shall   terminate  at  the
aforementioned time on the last day of the Warrant Period.

<PAGE>

6. Governing Law

This Warrant shall be governed by, and  interpreted in accordance  with,the laws
of the State of Israel, without giving effect to the rulesrespecting conflict of
law, and the parties hereto irrevocably  submit tothe exclusive  jurisdiction of
the  Courts of Israel in  respect  of  anydispute  or matter  arising  out of or
connected with this Warrant.

7. Transfer

This Warrant and the rights conferred hereby shall be transferable  bythe Holder
(1) only with the consent of the Company, which consent shallnot be unreasonably
withheld;  and (2) subject to limitations set forthin the Company's  Articles of
Association; and (3) only in whole.

8. Registration Rights

Upon exercise of this Warrant,  the Holder shall have and be entitled toexercise
the rights of registration granted under Schedule 24 of theInvestment  Agreement
between the Holder and the Company dated  ________,with  respect to the Series A
Preferred  Shares  issued on exercise of  thisWarrant  and the  Ordinary  Shares
obtained upon conversion of such SeriesA Preferred Shares.

Date:_________________      By:____________________
     Name:__________________
     Title:___________________

<PAGE>

SCHEDULE 22.2

WARRANT "B"

To: Incubate This, Inc.

Date: _______________

Warrant Certificate "B"

To Purchase Series A Preferred Shares of

ORGANITECH LTD.

for such consideration as detailed below

VOID AFTER 17:00 p.m.  (prevailing Tel Aviv time) On the last day of the Warrant
Period (defined below)

This is to certify that the holder  specified  above  ("Holder")  isentitled  to
purchase,  subject to the  provisions of this Warrant,  fromOrganitech  Ltd (the
"Company"), beginning on ____________ and remainingin effect for a period of one
hundred (100) days thereafter (the"Warrant Period"), eight thousand nine hundred
(8,900)  Series  APreferred  Shares  of the  Company  par  value  NIS 0.01  (the
"WarrantShares")  in  consideration  of  the  payment  to  the  Company  of  One
MillionDollars US (US$1,000,000) (the "Exercise Price"), all subject to theterms
and conditions set forth below.

For the removal of doubt,  the exercise of the  aforementioned  Warrant  BShares
shall entitle the Investor to hold 5% of the Company's  authorizedshare  capital
at the time of  exercising  the  Warrant  B Shares  based on  aCompany  value of
(20,000,000 (Twenty Million USD).

1. Exercise of Warrant

(a) Exercise.  Subject to the provisions hereof, this Warrant may beexercised at
any time in whole during the Warrant Period.  This  Warrantshall be exercised by
notice to the Company,  and presentation  andsurrender  hereof to the Company at
the  principal  office of the  Company,accompanied  by (i) a  written  notice of
exercise and (ii) payment to theCompany,  for the account of the Company, of the
Exercise  Price for  thenumber  of Series A Preferred  Shares  specified in such
notice.  Suchnotice  shall become  effective when given (the "Effective  Date").
TheExercise  Price for the number of Series A Preferred  Shares  specified inthe
notice  shall be  payable  on the  Effective  Date,  in U.S.  dollars  orthe NIS
equivalent  thereof,  based on the Representative  Rate of Exchange published by
the Bank of Israel known as of the time of payment.

(b)  Issuance of the Warrant  Shares.  Upon  presentation  and  surrender of the
notice of  exercise,  accompanied  by the  payment  of the  Exercise  Price made
pursuant to section  1(a),  the Company  shall issue  promptly to the Holder the
shares to which the Holder is entitled thereto.

Upon receipt by the Company of the notice of exercise,  and,  ifapplicable,  the
Exercise Price, the

<PAGE>

Holder  shall be  deemed  to be  theHolder  of the  shares  issuable  upon  such
exercise, notwithstanding thatthe share transfer books of the Company shall then
be  closed  and  thatcertificates  representing  such  shares  shall not then be
actuallydelivered   to  the  Holder.   The  Company  shall  pay  all  taxes  and
othercharges  that may be payable in  connection  with the issuance of theshares
and the preparation and delivery of share certificates pursuantto this Section 1
in the name of the Holder,  but shall not pay any  taxespayable by the Holder by
virtue of the holding, issuance, exercise orsale of this Warrant by the Holder.

(c) No fractions of shares shall be issued in  connection  with  theexercise  of
this  Warrant,  and the number of shares  issued shall  berounded of the nearest
whole number.

(d) The Company covenants that the Series A Preferred Shares  issuablehereunder,
when  issued  and  allotted  in  accordance  with  this   Warrant,will  be  duly
authorized,  validly issued,  fully paid,  non-assessable,free  of preemptive or
similar rights; will have the rights, preferencesand privileges set forth in the
Corporate Documents of the Company;  willbe free and clear of any Liens and duly
registered in the name of theInvestor in the Company's shareholders register.

2. Reservation of shares;

Preservation  of Rights of Holder The Company hereby agrees that at all times it
will  maintain  andreserve,   free  from  pre-emptive  rights,  such  number  of
authorized  butunissued  Series A Preferred  Shares so that this  Warrant may be
exercisedwithout   additional   authorization   of  Series  A  Preferred  Shares
aftergiving  effect  to all  other  warrants,  options,  convertible  securities
andother rights to acquire shares of the Company. The Company furtheragrees that
it will not, by charter amendment or through reorganizationconsolidation merger,
dissolution or sale of assets,  or by and  othervoluntary  act, avoid or seek to
avoid the  observance  or  performance  ofany of the covenants  stipulations  or
conditions  to  be  observed  orperformed  hereunder  by  the  Company,  or  the
provisions  contained in  theCompany's  Articles of Association  relating to the
rights of the holdersof the Series A Preferred Shares.

3. Exchange or Loss of Warrant

Upon  receipt by the Company of  evidence  reasonably  satisfactory  to it ofthe
loss, theft, destruction or mutilation of this Warrant, and (in thecase of loss,
theft  or  destruction)  of  reasonably  satisfactoryindemnification,  and  upon
surrender  and  cancellation  of this  Warrant,  ifmutilated,  the Company  will
execute and deliver a new Warrant of  liketenor  and date.  Any such new Warrant
executed and delivered  shallconstitute and additional contractual obligation on
the part of theCompany,  whether or not the Warrant so lost,  stolen,  destroyed
ormutilated shall be at any time enforceable by anyone.

4. RIGHTS OF THE HOLDER

(a) Without limiting the foregoing or any remedies  available to theHolder,  the
Holder will be entitled to specific performance of theobligations hereunder, and
injunctive relief against actual  orthreatened  violations of the obligations of
any person subject to thisWarrant.

(b) The Holder  shall not,  by virtue  hereof,  be  entitled  to any rights of a
shareholder in the Company.

<PAGE>

5. Termination

This  Warrant  and  the  rights   conferred   hereby  shall   terminate  at  the
aforementioned time on the last day of the Warrant Period.

6. Governing Law

This Warrant shall be governed by, and  interpreted in accordance  with,the laws
of the State of Israel, without giving effect to the rulesrespecting conflict of
law, and the parties hereto irrevocably  submit tothe exclusive  jurisdiction of
the  Courts of Israel in  respect  of  anydispute  or matter  arising  out of or
connected with this Warrant.

7. Transfer

This Warrant and the rights conferred hereby shall be transferable  bythe Holder
(1) only with the consent of the Company, which consent shallnot be unreasonably
withheld;  and (2) subject to limitations set forthin the Company's  Articles of
Association; and (3) only in whole.

8. Registration Rights

Upon exercise of this Warrant,  the Holder shall have and be entitled toexercise
the rights of registration granted under Schedule 24 of theInvestment  Agreement
between the Holder and the Company dated__________, with respect to the Series A
Preferred  Shares  issued  onexercise  of this Warrant and the  Ordinary  Shares
obtained uponconversion of such Series A Preferred Shares.

Date:_________________      By:____________________
     Name:__________________
     Title:___________________

<PAGE>

SCHEDULE 22.3

WARRANT "C"

To: Incubate This, Inc.

Date: _______________

Warrant Certificate "C"

To Purchase Series A Preferred Shares of

ORGANITECH LTD.

for such consideration as detailed below

VOID AFTER 17:00 p.m.  (prevailing Tel Aviv time) On the last day of the Warrant
Period (defined below)

This is to certify that the holder  specified  above  ("Holder")  isentitled  to
purchase,  subject to the  provisions of this Warrant,  fromOrganitech  Ltd (the
"Company"), beginning on ____________ and remainingin effect for a period of one
hundred thirty (130) days thereafter (the"Warrant Period"),  eight thousand nine
hundred one (8,901) Series  APreferred  Shares of the Company par value NIS 0.01
(the  "WarrantShares")  in  consideration  of the  payment to the Company of One
MillionDollars US (US$1,000,000) (the "Exercise Price"), all subject to theterms
and conditions set forth below.

For the removal of doubt,  the exercise of the  aforementioned  Warrant  CShares
shall entitle the Investor to hold 5% of the Company's  authorizedshare  capital
at the time of  exercising  the  Warrant  C Shares  based on  aCompany  vlaue of
$20,000,000 (Twenty Million USD).

1. Exercise of Warrant

(a) Exercise.  Subject to the provisions hereof, this Warrant may beexercised at
any time in whole during the Warrant Period.  This  Warrantshall be exercised by
notice to the Company,  and presentation  andsurrender  hereof to the Company at
the  principal  office of the  Company,accompanied  by (I) a  written  notice of
exercise and (ii) payment to theCompany,  for the account of the Company, of the
Exercise  Price for  thenumber  of Series A Preferred  Shares  specified in such
notice.  Suchnotice shall become  effective when given (the "Effective  Date")..
TheExercise  Price for the number of Series A Preferred  Shares  specified inthe
notice  shall be  payable  on the  Effective  Date,  in U.S.  dollars  orthe NIS
equivalent  thereof,  based on the Representative  Rate of Exchange published by
the Bank of Israel known as of the time of payment.

(b) Issuance of the Warrant Shares. Upon presentation and surrender ofthe notice
of exercise,  accompanied by the payment of the Exercise  Pricemade  pursuant to
section 1(a),  the Company shall issue promptly to theHolder the shares to which
the Holder is entitled thereto.

<PAGE>

Upon receipt by the Company of the notice of exercise,  and,  ifapplicable,  the
Exercise  Price,  the  Holder  shall be deemed  to be  theHolder  of the  shares
issuable upon such exercise, notwithstanding thatthe share transfer books of the
Company shall then be closed and thatcertificates representing such shares shall
not then be actuallydelivered to the Holder. The Company shall pay all taxes and
othercharges  that may be payable in  connection  with the issuance of theshares
and the preparation and delivery of share certificates pursuantto this Section 1
in the name of the Holder,  but shall not pay any  taxespayable by the Holder by
virtue of the holding, issuance, exercise orsale of this Warrant by the Holder.

(c) No fractions of shares shall be issued in  connection  with  theexercise  of
this  Warrant,  and the number of shares  issued shall  berounded of the nearest
whole number.

(d) The Company covenants that the Series A Preferred Shares  issuablehereunder,
when  issued  and  allotted  in  accordance  with  this   Warrant,will  be  duly
authorized,  validly issued,  fully paid,  non-assessable,free  of preemptive or
similar rights; will have the rights, preferencesand privileges set forth in the
Corporate Documents of the Company;  willbe free and clear of any Liens and duly
registered in the name of theInvestor in the Company's shareholders register.

2. Reservation of shares;

Preservation  of Rights of Holder The Company hereby agrees that at all times it
will  maintain  andreserve,   free  from  pre-emptive  rights,  such  number  of
authorized  butunissued  Series A Preferred  Shares so that this  Warrant may be
exercisedwithout   additional   authorization   of  Series  A  Preferred  Shares
aftergiving  effect  to all  other  warrants,  options,  convertible  securities
andother rights to acquire shares of the Company. The Company furtheragrees that
it will not, by charter amendment or through reorganizationconsolidation merger,
dissolution or sale of assets,  or by and  othervoluntary  act, avoid or seek to
avoid the  observance  or  performance  ofany of the covenants  stipulations  or
conditions  to  be  observed  orperformed  hereunder  by  the  Company,  or  the
provisions  contained in  theCompany's  Articles of Association  relating to the
rights of the holdersof the Series A Preferred Shares.

3. Exchange or Loss of Warrant

Upon  receipt by the Company of  evidence  reasonably  satisfactory  to it ofthe
loss, theft, destruction or mutilation of this Warrant, and (in thecase of loss,
theft  or  destruction)  of  reasonably  satisfactoryindemnification,  and  upon
surrender  and  cancellation  of this  Warrant,  ifmutilated,  the Company  will
execute and deliver a new Warrant of  liketenor  and date.  Any such new Warrant
executed and delivered  shallconstitute and additional contractual obligation on
the part of theCompany,  whether or not the Warrant so lost,  stolen,  destroyed
ormutilated shall be at any time enforceable by anyone.

4. RIGHTS OF THE HOLDER

(a) Without limiting the foregoing or any remedies  available to theHolder,  the
Holder will be entitled to specific performance of theobligations hereunder, and
injunctive relief against actual  orthreatened  violations of the obligations of
any person subject to thisWarrant.

(b) The Holder  shall  not,  by virtue  hereof,  be  entitled  to any rights ofa
shareholder in the Company.

<PAGE>

5. Termination

This  Warrant  and  the  rights   conferred   hereby  shall   terminate  at  the
aforementioned time on the last day of the Warrant Period.

6. Governing Law

This Warrant shall be governed by, and  interpreted in accordance  with,the laws
of the State of Israel, without giving effect to the rulesrespecting conflict of
law, and the parties hereto irrevocably  submit tothe exclusive  jurisdiction of
the  Courts of Israel in  respect  of  anydispute  or matter  arising  out of or
connected with this Warrant.

7. Transfer

This Warrant and the rights conferred hereby shall be transferable  bythe Holder
(1) only with the consent of the Company, which consent shallnot be unreasonably
withheld;  and (2) subject to limitations set forthin the Company's  Articles of
Association; and (3) only in whole.

8. Registration Rights

Upon exercise of this Warrant,  the Holder shall have and be entitled toexercise
the rights of registration granted under Schedule 24 of theInvestment  Agreement
between the Holder and the Company dated___________,  with respect to the Series
A Preferred  Shares issued  onexercise  of this Warrant and the Ordinary  Shares
obtained uponconversion of such Series A Preferred Shares.

Date:_________________      By:____________________
     Name:__________________
     Title:___________________

<PAGE>

SCHEDULE 22.4

WARRANT "D"

To: Incubate This, Inc.

Date: _______________

Warrant Certificate "D"

To Purchase Series A Preferred Shares of

ORGANITECH LTD.

for such consideration as detailed below

VOID AFTER 17:00 p.m.  (prevailing Tel Aviv time) On the last day of the Warrant
Period (defined below)

This is to certify that the holder  specified  above  ("Holder")  isentitled  to
purchase,  subject to the  provisions of this Warrant,  fromOrganitech  Ltd (the
"Company"), beginning on ____________ and remainingin effect for a period of one
hundred sixty (160) days thereafter  (the"Warrant Period"),  eight thousand nine
hundred one (8,901) Series  APreferred  Shares of the Company par value NIS 0.01
(the  "WarrantShares")  in  consideration  of the  payment to the Company of One
MillionDollars US (US$1,000,000) (the "Exercise Price"), all subject to theterms
and conditions set forth below.

For the removal of doubt,  the exercise of the  aforementioned  Warrant  DShares
shall entitle the Investor to hold 5% of the Company's  authorizedshare  capital
at the time of  exercising  the  Warrant  D Shares  based on  aCompany  value of
$20,000,000 (Twenty Million USD).

1. Exercise of Warrant

(a) Exercise.  Subject to the provisions hereof, this Warrant may beexercised at
any time in whole during the Warrant Period.  This  Warrantshall be exercised by
notice to the Company,  and presentation  andsurrender  hereof to the Company at
the  principal  office of the  Company,accompanied  by (i) a  written  notice of
exercise and (ii) payment to theCompany,  for the account of the Company, of the
Exercise  Price for  thenumber  of Series A Preferred  Shares  specified in such
notice.  Suchnotice shall become  effective when given (the "Effective  Date")..
TheExercise  Price for the number of Series A Preferred  Shares  specified inthe
notice  shall be  payable  on the  Effective  Date,  in U.S.  dollars  orthe NIS
equivalent  thereof,  based on the Representative  Rate of Exchange published by
the Bank of Israel known as of the time of payment.

(b) Issuance of the Warrant Shares. Upon presentation and surrender ofthe notice
of exercise,  accompanied by the payment of the Exercise  Pricemade  pursuant to
section 1(a),  the Company shall issue promptly to theHolder the shares to which
the Holder is entitled thereto.

<PAGE>

Upon receipt by the Company of the notice of exercise,  and,  ifapplicable,  the
Exercise  Price,  the  Holder  shall be deemed  to be  theHolder  of the  shares
issuable upon such exercise, notwithstanding thatthe share transfer books of the
Company shall then be closed and thatcertificates representing such shares shall
not then be actuallydelivered to the Holder. The Company shall pay all taxes and
othercharges  that may be payable in  connection  with the issuance of theshares
and the preparation and delivery of share certificates pursuantto this Section 1
in the name of the Holder,  but shall not pay any  taxespayable by the Holder by
virtue of the holding, issuance, exercise orsale of this Warrant by the Holder.

(c) No fractions of shares shall be issued in  connection  with  theexercise  of
this  Warrant,  and the number of shares  issued shall  berounded of the nearest
whole number.

(d) The Company covenants that the Series A Preferred Shares  issuablehereunder,
when  issued  and  allotted  in  accordance  with  this   Warrant,will  be  duly
authorized,  validly issued,  fully paid,  non-assessable,free  of preemptive or
similar rights; will have the rights, preferencesand privileges set forth in the
Corporate Documents of the Company;  willbe free and clear of any Liens and duly
registered in the name of theInvestor in the Company's shareholders register.

2. Reservation of shares;

Preservation  of Rights of Holder The Company hereby agrees that at all times it
will  maintain  andreserve,   free  from  pre-emptive  rights,  such  number  of
authorized  butunissued  Series A Preferred  Shares so that this  Warrant may be
exercisedwithout   additional   authorization   of  Series  A  Preferred  Shares
aftergiving  effect  to all  other  warrants,  options,  convertible  securities
andother rights to acquire shares of the Company. The Company furtheragrees that
it will not, by charter amendment or through reorganizationconsolidation merger,
dissolution or sale of assets,  or by and  othervoluntary  act, avoid or seek to
avoid the  observance  or  performance  ofany of the covenants  stipulations  or
conditions  to  be  observed  orperformed  hereunder  by  the  Company,  or  the
provisions  contained in  theCompany's  Articles of Association  relating to the
rights of the holdersof the Series A Preferred Shares.

3. Exchange or Loss of Warrant

Upon  receipt by the Company of  evidence  reasonably  satisfactory  to it ofthe
loss, theft, destruction or mutilation of this Warrant, and (in thecase of loss,
theft  or  destruction)  of  reasonably  satisfactoryindemnification,  and  upon
surrender  and  cancellation  of this  Warrant,  ifmutilated,  the Company  will
execute and deliver a new Warrant of  liketenor  and date.  Any such new Warrant
executed and delivered  shallconstitute and additional contractual obligation on
the part of theCompany,  whether or not the Warrant so lost,  stolen,  destroyed
ormutilated shall be at any time enforceable by anyone.

4. RIGHTS OF THE HOLDER

(a) Without limiting the foregoing or any remedies  available to theHolder,  the
Holder will be entitled to specific performance of theobligations hereunder, and
injunctive relief against actual  orthreatened  violations of the obligations of
any person subject to thisWarrant.

(b) The Holder  shall  not,  by virtue  hereof,  be  entitled  to any rights ofa
shareholder in the Company.

<PAGE>

5. Termination

This   Warrant   and  the   rights   conferred   hereby   shall   terminate   at
theaforementioned time on the last day of the Warrant Period.

6. Governing Law

This Warrant shall be governed by, and  interpreted in accordance  with,the laws
of the State of Israel, without giving effect to the rulesrespecting conflict of
law, and the parties hereto irrevocably  submit tothe exclusive  jurisdiction of
the  Courts of Israel in  respect  of  anydispute  or matter  arising  out of or
connected with this Warrant.

8. Transfer

This Warrant and the rights conferred hereby shall be transferable  bythe Holder
(1) only with the consent of the Company, which consent shallnot be unreasonably
withheld;  and (2) subject to limitations set forthin the Company's  Articles of
Association; and (3) only in whole.

9. Registration Rights

Upon exercise of this Warrant,  the Holder shall have and be entitled toexercise
the rights of registration granted under Schedule 24 of theInvestment  Agreement
between the Holder and the Company dated___________,  with respect to the Series
A Preferred  Shares issued  onexercise  of this Warrant and the Ordinary  Shares
obtained uponconversion of such Series A Preferred Shares.

Date:_________________      By:____________________
     Name:__________________
     Title:___________________

<PAGE>

SCHEDULE 22.5

WARRANT "E"

To: Incubate This, Inc.

Date: _______________

Warrant Certificate "E"

To Purchase Series A Preferred Shares of

ORGANITECH LTD

for such consideration as detailed below

VOID AFTER 17:00 p.m.  (prevailing Tel Aviv time) On the last day of the Warrant
Period (defined below)

This is to certify that the holder  specified  above  ("Holder")  isentitled  to
purchase,  subject to the  provisions of this Warrant,  fromOrganitech  Ltd (the
"Company"),  at any time after the Holder invests anaggregate amount of at least
Three  Million  Dollars  US  (US$3,000,000)pursuant  to Warrant  Certificates  A
through D and until the earlier  of(i)  twenty four (24 months) from the date of
the  signing of  theAgreement,  or (ii) the  consummation  of an initial  public
offering of theCompany's  securities ("IPO"),  (the "Warrant Period"),  eighteen
thousand(18,000) Series A Preferred Shares of the Company par value NIS 0.01(the
"Warrant  Shares") in consideration of the payment to the Company ofFive Million
Dollars US (US$5,000,000)  (the "Exercise  Price"),  allsubject to the terms and
conditions set forth below.

For the removal of doubt,  the exercise of the  aforementioned  Warrant  EShares
shall  entitle  the  Investor  to hold  7.07% of the  Company'sauthorized  share
capital at the time of exercising  the Warrant E Sharesbased  on a Company value
of $50,000,000 (Fifty Million USD).

1. Exercise of Warrant

(a) Exercise.  Subject to the provisions hereof, this Warrant may beexercised at
any time in whole during the Warrant Period.  This  Warrantshall be exercised by
notice to the Company,  and presentation  andsurrender  hereof to the Company at
the  principal  office of the  Company,accompanied  by (i) a  written  notice of
exercise and (ii) payment to theCompany,  for the account of the Company, of the
Exercise  Price for  thenumber  of Series A Preferred  Shares  specified in such
notice.   Suchnotice   shall  become   effective  when  given  (the   "Effective
Date"),provided,  however that if this Warrant is being  exercised  prior to the
Company's Exit, such exercise may be conditioned upon the occurrence of the Exit
such that if the Exit does not occur  within 30 days  thereafter  such notice of
exercise  shall be  deemed  null and  void  and the void and the  Warrant  shall
continue in full force and effect.  The Exercise Pricefor the number of Series A
Preferred  Shares specified in the noticeshall be payable on the Effective Date,
in U.S. dollars or the NISequivalent  thereof,  based on the Representative Rate
of Exchangepublished by the Bank of Israel known as of the time of payment.

<PAGE>

(b) Issuance of the Warrant Shares. Upon presentation and surrender ofthe notice
of exercise,  accompanied by the payment of the Exercise  Pricemade  pursuant to
section 1(a),  the Company shall issue promptly to theHolder the shares to which
the Holder is entitled thereto.

Upon receipt by the Company of the notice of exercise,  and,  ifapplicable,  the
Exercise  Price,  the  Holder  shall be deemed  to be  theHolder  of the  shares
issuable upon such exercise, notwithstanding thatthe share transfer books of the
Company shall then be closed and thatcertificates representing such shares shall
not then be actuallydelivered to the Holder. The Company shall pay all taxes and
othercharges  that may be payable in  connection  with the issuance of theshares
and the preparation and delivery of share certificates pursuantto this Section 1
in the name of the Holder,  but shall not pay any  taxespayable by the Holder by
virtue of the holding, issuance, exercise orsale of this Warrant by the Holder.

(c) No fractions of shares shall be issued in  connection  with  theexercise  of
this  Warrant,  and the number of shares  issued shall  berounded of the nearest
whole number.

(d) The Company covenants that the Series A Preferred Shares  issuablehereunder,
when  issued  and  allotted  in  accordance  with  this   Warrant,will  be  duly
authorized,  validly issued, fully paid, non-assessable andfree of preemptive or
similar rights; will have the rights, preferencesand privileges set forth in the
Corporate Documents of the Company;  willbe free and clear of any Liens and duly
registered in the name of theInvestor in the Company's shareholders register.

2. Reservation of shares; Preservation of Rights of Holder

The Company  hereby agrees that at all times it will maintain  andreserve,  free
from  pre-emptive  rights,  such  number  of  authorized  butunissued  Series  A
Preferred  Shares  so  that  this  Warrant  may be  exercisedwithout  additional
authorization  of  Series A  Preferred  Shares  aftergiving  effect to all other
warrants,  options,  convertible securities andother rights to acquire shares of
the Company. The Company furtheragrees that it will not, by charter amendment or
through reorganizationconsolidation merger, dissolution or sale of assets, or by
and  othervoluntary  act,  avoid or seek to avoid the  observance or performance
ofany of the covenants  stipulations  or  conditions to be observed  orperformed
hereunder by the Company, or the provisions  contained in theCompany's  Articles
of  Association  relating to the rights of the  holdersof the Series A Preferred
Shares.

3. Exchange or Loss of Warrant

Upon  receipt by the Company of  evidence  reasonably  satisfactory  to it ofthe
loss, theft, destruction or mutilation of this Warrant, and (in thecase of loss,
theft  or  destruction)  of  reasonably  satisfactoryindemnification,  and  upon
surrender  and  cancellation  of this  Warrant,  ifmutilated,  the Company  will
execute and  deliver a new Warrant of like tenor and date.  Any such new Warrant
executed and delivered shall constitute and additional contractual obligation on
the part of the Company,  whether or not the Warrant so lost, stolen,  destroyed
or mutilated shall be at any time enforceable by anyone.

4, Rights of the Holder

One. Without limiting the foregoing or any remedies available to theHolder,  the
Holder will be entitled to specific performance of theobligations hereunder, and
injunctive relief against actual  orthreatened  violations of the obligations of
any person subject to thisWarrant.

<PAGE>

b. The  Holder  shall  not,  by virtue  hereof,  be  entitled  to any rights ofa
shareholder in the Company.

5. Termination

This  Warrant  and  the  rights   conferred   hereby  shall   terminate  at  the
aforementioned time on the last day of the Warrant Period.

6. Governing Law

This Warrant shall be governed by, and  interpreted in accordance  with,the laws
of the State of Israel, without giving effect to the rulesrespecting conflict of
law, and the parties hereto irrevocably  submit tothe exclusive  jurisdiction of
the  Courts of Israel in  respect  of  anydispute  or matter  arising  out of or
connected with this Warrant.

7. Transfer

This Warrant and the rights conferred hereby shall be transferable  bythe Holder
(1) only with the consent of the Company, which consent shallnot be unreasonably
withheld;  and (2) subject to limitations set forthin the Company's  Articles of
Association; and (3) only in whole.

8. Registration Rights

Upon exercise of this Warrant,  the Holder shall have and be entitled toexercise
the rights of registration granted under Schedule 24 of theInvestment Agreement,
with respect to the Series A Preferred  Sharesissued on exercise of this Warrant
and the  Ordinary  Shares  obtained  uponconversion  of such  Series A Preferred
Shares.

Date:_________________      By:___________________
     Name:__________________
     Title:___________________

<PAGE>

SCHEDULE 23

GRANTS, INCENTIVES, SUBSIDIES & OCS LETTERS OF APPROVAL

<PAGE>

SCHEDULE 24

REGISTRATION RIGHTS AGREEMENT

1. DEFINITIONS

1.1. In this Exhibit, the following expressions shall bear the meaningsset forth
alongside  them,  insofar as such  meaning  does not  contradictthe  contents or
context thereof:

(ONE)  "SHARE  PURCHASE  AGREEMENT"  - THE  INVESTMENT  AGREEMENT  TO WHICH THIS
SCHEDULE  24 IS  ATTACHED;(TWO)  "NEW  ARTICLES" - THE  ARTICLES OF  ASSOCIATION
SUBSTANTIALLY  IN  THEFORM  ATTACHED  AS  SCHEDULE  20.1 TO THE  SHARE  PURCHASE
AGREEMENT;(THREE) "PURCHASERS" - ALL HOLDERS OF SERIES A PREFERRED SHARES;(FOUR)
"OTHER  SHAREHOLDERS"  - ALL  SHAREHOLDERS  OF THE ORDINARY SHARES OFTHE COMPANY
OTHER  THAN  THE  PURCHASERS  AT THE  TIME  OF A  REGISTRATION  OFSHARES  OF THE
COMPANY;(FIVE)   "PURCHASERS'   REGISTRABLE   SECURITIES"   -   ALL   SERIES   A
PREFERREDSHARES,   OR  SHARES   INTO  WHICH  THE  SERIES  A   PREFERRED   SHARES
WERECONVERTED;   AND  (II)  ALL  SHARES   ISSUED   WITH   RESPECT  TO  SERIES  A
PREFERREDSHARES  OR SHARES INTO WHICH THE PREFERRED  SHARES A WERE  CONVERTED BY
WAYOF DIVIDENDS,  DISTRIBUTIONS,  BONUS SHARES,  SHARE SPLIT, SHARE CONVERSIONOR
EXERCISE OF OPTION OR WARRANT;(SIX) "OTHER SHAREHOLDERS' REGISTRABLE SECURITIES"
- (I) SHARES HELD BYTHE OTHER  SHAREHOLDERS OR THEIR  PERMITTED  TRANSFEREES (AS
DEFINED IN THENEW ARTICLES),  OTHER THAN PURCHASERS' REGISTRABLE SECURITIES, AND
(II)ANY  SECURITIES  ISSUED OR  ISSUABLE  WITH  RESPECT  TO ALL  SHARES  HELD BY
THEOTHER   SHAREHOLDERS   OR  ANY  OF   THEIR   PERMITTED   TRANSFEREES,   OTHER
THANPURCHASERS' REGISTRABLE SECURITIES, BY WAY OF DIVIDENDS, DISTRIBUTIONS,BONUS
SHARES,  SHARE SPLIT,  SHARE CONVERSION OR EXERCISE OF OPTION  ORWARRANT;(SEVEN)
"REGISTRABLE   SECURITIES"  -  PURCHASERS'   REGISTRABLE   SECURITIESAND   OTHER
SHAREHOLDERS'  REGISTRABLE  SECURITIES;(EIGHT)  THE TERM  "SECURITIES ACT" - THE
U.S.  SECURITIES  ACT  OF  1933,  ASAMENDED;(NINE)  THE  TERM  "REGISTRATION"  -
REGISTRATION UNDER THE SECURITIES ACT.

1.2.  Any  expression  which is not defined in Section  1.1 above shall  bearthe
meaning set forth in the Share Purchase  Agreement,  insofar as suchmeaning does
not contradict the contents or context thereof

1.3. As to any particular Registrable  Securities,  such securities willcease to
be Registrable  Securities when they have been  effectivelyregistered  under the
Securities Act and/or any other applicablesecurities law.

2. DEMAND REGISTRATION

2.1.  Request for  Registration.  Subject to the terms hereof,  and provided any
securities  of the  Company  are  publicly  traded  over  the  counter  or onany
recognized stock exchange in the United States, the holders of 50%or more of the
Purchasers' Registrable Securities may requestregistration  under the Securities
Act of the Registrable Securities (a"Demand Registration").  Such holders of the
Purchasers'  RegistrableSecurities will be entitled to two Demand Registrations,
commencing on the

<PAGE>

expiry of any "lock-up" period restricting the sale of theRegistrable Securities
as may be required by the Company's  underwriter,which  lock-up period should in
no event be longer than 180  daysfollowing the public offering of any securities
of the Company over thecounter or on any recognized stock exchange in the United
States.  If  theholders  initiating  the  registration  request  hereunder  (the
"InitiatingHolders")  intend to distribute the  Registrable  Securities  covered
bytheir  request by means of an  underwriting,  they shall advise the  Companyas
part of their request. The underwriters shall be selected by majorityin interest
of the Initiating Holders and shall be reasonably acceptableto the Company.

2.2. Whenever required to register any of its securities under theSecurities Act
pursuant to this Section 2.2 the Company will givewritten  notice,  delivered at
least 20 days prior to the initial  filingof a  registration  statement with the
Securities and Exchange Commission,to the holders of Registrable Securities,  of
the  Company's  intention  toeffect  such a  registration  and,  subject  to the
priority  provisions  ofSection 2.3, will include in such  registration  all the
RegistrableSecurities   with   respect  to  which  the  Company   has   received
writtenrequests  for  inclusions  therein  within  20  days  after  the  Company
givessuch notice.

2.3. If the managing  underwriters in a Demand Registration advise theCompany in
writing that in their opinion the number of  Securitiesrequested  to be included
in such registration exceeds the number thatcan be sold in such offering without
adversely affecting  suchunderwriters' ability to effect an orderly distribution
of   suchSecurities,   the   Company   will   include   in   such   registration
RegistrableSecurities  according to the following  order:  (i) first, the number
ofPurchasers'   Registrable   Securities  requested  to  be  included  that,  in
theopinion   of  such   underwriters,   can  be  sold,   pro  rata   among   the
respectiveholders  on  the  basis  of  the  number  of  Purchasers'  Registrable
Securitiesthen    owned   by   each   such   holder;   (ii)   second,   if   the
managingunderwriters  allow  the  registration  of  additional  securities,  the
numberof   Other   Shareholders'   Registrable   Securities   requested   to  be
includedthat,  in the  opinion  of such  underwriters,  can be  sold,  pro  rata
amongthe   respective   holders   on  the   basis   of  the   number   of  Other
Shareholders'Registrable  Securities  then owned by each such holder;  and (iii)
third,if    the    managing    underwriters    allow   the    registration    of
additionalsecurities,   other   securities   of  the  Company.   In  any  event,
allRegistrable  Securities  must be  included in such  registration  prior toany
other shares of the Company.

2.4. Shelf Registrations.  From such time as the Company becomes eligibleto file
an F-3 "Shelf" Registration,  the Company shall, at the requestof the holders of
a majority of the Purchasers'  Registrable  Securities,file a shelf registration
with the  Securities and Exchange  Commission,and  the Company will maintain the
effectiveness of such  registrationstatement  and will take all necessary action
to  allow  its  continued  useby  the  holders  of the  Registrable  Securities,
including the timelyfiling of all required reports under the Securities Act.

2.5. The Company may not cause any other  registration of securities forsale for
its own account  (other  than a  registration  effected  solely  toimplement  an
employee benefit plan) to be initiated and to becomeeffective less than 120 days
after the effective date of anyregistration requested pursuant to Section 2.1.

3. PIGGYBACK REGISTRATIONS

3.1.  Right to Piggyback.  Whenever the Company  proposes to register  anyof its
securities  under the Securities  Act (other than pursuant to (i)  aregistration
primarily for sales of shares or options to employees  ofthe Company;  or (ii) a
Demand  Registration),  and the registration  formto be used is suitable for the
registration of the RegistrableSecurities (a "Piggyback Registration") (it being

<PAGE>

understood  that  FormS-8 and Form F-4 may not be used for such  purposes),  the
Company  willgive  written  notice,  delivered  at  least  20 days  prior to the
initialfiling   of  a   registration   statement   with   the   Securities   and
ExchangeCommission,   to  the  holders  of   Registrable   Securities,   of  the
Company'sintention   to  effect  such  a  registration   and,   subject  to  the
priorityprovisions  of  Section  3.2,  will  include  in such  registration  all
theRegistrable  Securities with respect to which the Company has receivedwritten
requests  for  inclusions  therein  within 20 days after the  Companygives  such
notice.

3.2.  Priority on  Piggyback  Registrations.  If a Piggyback  Registration  isan
underwritten  offering  of  Company's  Securities  and the  managingunderwriters
advise the Company in writing  that in their  opinion  thenumber  of  Securities
requested to be included in such registrationexceeds the number that can be sold
in such offering without adverselyaffecting such underwriters' ability to effect
an orderly  distributionof  such  Securities,  the Company  will include in such
registrationRegistrable  Securities according to the following order: (i) first,
theCompany's  Securities;  (ii) second,  if the managing  underwriters  allowthe
registration  of  additional  securities,  the number of  Purchasers'Registrable
Securities  requested to be included that, in the opinion  ofsuch  underwriters,
can be sold, pro rata among the respective  holders onthe basis of the number of
Purchasers'  Registrable  Securities  then ownedby  each such holder;  and (iii)
third,  if  the  managing   underwriters  allowthe  registration  of  additional
securities, the number of OtherShareholders' Registrable Securities requested to
be included  that,  inthe opinion of such  underwriters,  can be sold,  pro rata
among   therespective   holders   on  the   basis   of  the   number   of  Other
Shareholders'Registrable  Securities  then  owned by each  such  holder.  In any
event,  allRegistrable  Securities must be included in such  registration  prior
toany  other  shares of the  Company,  except for the shares to be issued  bythe
Company to the public.

4. REGISTRATION PROCEDURES

Whenever   the  holders  of   Registrable   Securities   have   requested   that
anyRegistrable  Securities  be registered  pursuant to this Exhibit,  theCompany
will use its best efforts to effect the registration with theproper  authorities
in the United  States and Israel and the sale of  suchRegistrable  Securities in
accordance  with the  intended  method  ofdisposition  thereof  and to list such
shares on the stock  exchange  orover the counter  market on which the Company's
shares are then trading.In connection therewith, the Company will make available
for  inspectionby  any  seller  of  Registrable  Securities,  and any  attorney,
accountant,or  any other agent retained in connection  with such a registration,
allpertinent financial and other records, other pertinent corporatedocuments and
properties  of  the  Company,  and  cause  the   Company'srespective   officers,
directors, and employees to supply all  informationreasonably  requested by such
seller,  attorney,  accountant,  or agent  inconnection  with such  registration
statement.

5. REGISTRATION EXPENSES

The  Company  shall be  responsible  for all  registration  expenses  incurredin
connection  with the  transactions  described in Sections 2 and  3,including the
reasonable fees of one legal counsel for the holders  ofRegistrable  Securities,
to be  selected  by the  holders  of a  majority  ofthe  Registrable  Securities
participating  in the  registration.Registration  expenses  include all expenses
incident to the  Company'sperformance  of, or compliance with, this Exhibit with
respect  to  anyDemand   Registration  (whether  or  not  the  registration  has
becomeeffective  or such  registration  is  counted  as a  Demand  Registration)
orPiggyback  Registration,  including  without  limitation  expenses  incurredin
connection with the preparation of the prospectus. Notwithstandingthe foregoing,
however,  all  underwriters'  commissions  in respect of thesale of  Registrable
Securities shall be paid by the sellers,  pro rata,in accordance with the number
of shares sold in the offering.

<PAGE>

6. PRECONDITIONS TO PARTICIPATION IN UNDERWRITTEN REGISTRATIONS

No   holder    of    Registrable    Securities    may    participate    in   any
underwrittenregistration  hereunder  unless  such  person  (i)  agrees  to  sell
suchperson's    securities   on   the   basis    provided   in   any   customary
underwritingarrangements;   and  (ii)  provides  any  relevant  information  and
completesand    executes    all    questionnaires,     powers    of    attorney,
indemnities,underwriting  agreements,  and other  documents  required  under the
terms ofsuch underwriting arrangements.

7. RULE 144

With a view to making available the benefits of Rule 144 under theSecurities Act
(or  similar  rule  then  in  effect)  available  to the  holdersof  Registrable
Securities,  after the initial public offering of  anySecurities  of the Company
over the counter or on any recognized  stockexchange  in the United States,  the
Company shall:

7.1. Make and keep available adequate current public information  withrespect to
the  Company  within the  meaning of Rule  144(c)  under  theSecurities  Act (or
similar rule then in effect);

7.2. Furnish to any holder of Registrable Securities forthwith uponrequest (i) a
written  statement  by the Company as to its  compliance  withthe  informational
requirements of Rule 144(c) (or similar rule then ineffect);  (ii) a copy of the
most recent  annual or  quarterly  report  ofthe  Company;  and (iii) such other
information as may be  reasonablyrequested in availing any holder of Registrable
Securities of any ruleor  regulation of the SEC which permits the selling of any
suchsecurities without registration and pursuant to such form.

7.3.  Comply with all other  necessary  filings and other  requirements  soas to
enable the holders of Registrable Securities to sell RegistrableSecurities under
Rule 144 under the Securities Act (or similar rule thenin effect).

7.4.  If in the  opinion of counsel for the  Company,  any holder  ofRegistrable
Securities is able to sell all of the Registrable  Securitiesheld  by it at that
time in a  three-month  period  pursuant to Rule 144 ofthe  Securities  Act, the
Company  will  not  be  required  to  register  suchsecurities,  notwithstanding
anything herein to the contrary.

8. INDEMNIFICATION AND CONTRIBUTION

8.1. Company Indemnity. The Company shall indemnify and hold harmlesseach holder
of  Registrable  Securities  and  each  of  such  holder'sofficers,   directors,
employees,  legal counsel and  accountants,  from andagainst any and all losses,
claims, damages,  liabilities, and charges,joint or several ("Claims"), to which
any of them may be subject underthe Securities Act or any other statute (whether
U.S. or Israeli) or atcommon law, insofar as such Claims arise out of, are based
upon,  or  arein  connection  with  (i) any  untrue  statement  of any  material
factcontained   in  any   registration   statement  or  prospectus  under  which
suchSecurities  were sold, or (ii) any omission to state therein a  materialfact
required to be stated  therein or  necessary to make the  statementstherein  not
misleading,  or (iii) any other violation by the Company ofthe Securities Act or
any state or foreign  jurisdiction  securities  lawsin connection with each such
registration,  and shall reimburse each suchperson  entitled to  indemnification
for any legal or other expensesreasonably  incurred by such person in connection
with  investigating  ordefending  any such Claim,  as and when such  expense are
incurred;provided,  however,  that  the  Company  shall  not  be  liable  to any
suchperson in any such case to the extent that any such claim arises out ofor is
based upon any untrue statement or omission made

<PAGE>

in   suchregistration   statement  or   prospectus   in  reliance  upon  and  in
conformitywith  written  information  furnished  to the  Company by such  person
and/orany person acting on its behalf.

8.2. Other Shareholders  Indemnity.  Each holder of Registrable  Securitiesshall
severally  indemnify  and  hold  harmless  the  Company,  each  of  itsofficers,
directors,  employees,  legal counsel, and accountants,  from andagainst any and
all Claims,  to which any of them may be subject underthe  Securities Act or any
other statute  (whether U.S. or Israeli) or inCommon law,  insofar a such Claims
arise out of, are based upon or are  inconnection  with (i) any untrue statement
of material fact  contained  inany  registration  statement or prospectus  under
which such Securitieswere sold, or (ii) any omission to state therein a material
factrequired to be stated therein or necessary to make the statementstherein not
misleading,  or (iii) any other violation by the Company ofthe Securities Act or
any  state  or  foreign  jurisdiction  securities  lawsin  connection  with  any
registration,  and shall reimburse each suchperson  entitled to  indemnification
for any legal or other expensesreasonably  incurred by such person in connection
with  investigating  ordefending  any such Claim,  as and when such expenses are
incurred;provided,  however,  that the  aforesaid  indemnity  shall  only  apply
wheresuch Claim or violation  results from and/or reliance upon and inconformity
with written  information  furnished to the Company by suchholder of Registrable
Securities  and/or any person acting on its ortheir behalf.  In no event shall a
holders of Registrable  Securities beliable under this section for any amount in
excess  of  the  total  netproceeds  received  by  such  holder  of  Registrable
Securities in  connectionwith  the offering related to the  registration  giving
rise to such claim.

8.3.  Indemnity  Procedure.  Promptly  after  receipt by a holder  ofRegistrable
Securities (the "Indemnitee") or the Company of notice ofthe commencement of any
action,  proceeding, or investigation in respectof which indemnity may be sought
as provided above, such party shallnotify the party from whom indemnification is
claimed  (the"Indemnitor").  The Indemnitor shall promptly assume the defense of
theIndemnitee  with counsel reasonably  satisfactory to such Indemnitee,  andthe
fees and expenses of such counsel  shall be at the sole cost  andexpense  of the
Indemnitor.  The Indemnitee will cooperate with  theIndemnitor in the defense of
any action,  proceeding,  or  investigationfor  which the Indemnitor assumes the
defense.  The Indemnitor shall notbe liable for the settlement by the Indemnitee
of any action,  proceedingor  investigation  effected without its consent, which
consent shall notbe unreasonably  withheld.  The Indemnitor shall not enter into
anysettlement  in any action,  suit, or proceeding to which the  Indemnitee  isa
party,  unless such settlement  includes a general release of theIndemnitee with
no payment  by the  Indemnitee  of  consideration  andwithout  an  admission  of
liability.

8.4. Contribution.  If the indemnification  provided for above is held bya court
of competent  jurisdiction to be unavailable to an Indemniteewith respect to any
loss,  liability,  claim,  damage,  or  expense  referredto  therein,  then  the
Indemnitor, in lieu of indemnifying such  Indemniteehereunder,  shall contribute
to the  amount  paid or  payable  by  suchIndemnitee  as a result of such  loss,
liability,  claim,  damage,  orexpense in such  proportion as is  appropriate to
reflect  the  relativefault  of  the  Indemnitor  on  the  one  hand  and of the
Indemnitee  on theother in  connection  with the  statements  or omissions  that
resulted  insuch  loss,  liability,  claim,  damage,  or  expense as well as any
otherrelevant equitable considerations.  The relative fault of the Indemnitorand
of the  Indemnitee  shall be  determined  by reference  to,  among  otherthings,
whether the untrue or alleged untrue statement of a materialfact or the omission
to state a material fact relates to  informationsupplied by the Indemnitor or by
the  Indemnitee  and  the   parties'relative   intent,   knowledge,   access  to
information,   and   opportunity   tocorrect  or  prevent   such   statement  or
omission.8.5.  Notice.  The  parties  agree  promptly  to notify  each  other of
thecommencement  of any litigation or  proceedings  against the Company or anyof
its  officers  or  directors  in  connection  with  the  sale of  anyRegistrable
Securities or any preliminary  prospectus or  registrationstatement  relating to
any sale of any Registrable

<PAGE>

Securities,  or of anyother litigation or proceedings to which this Section 8 is
applicable ofwhich they became aware.

9. ASSIGNMENT OF REGISTRATION RIGHTS

The  rights to cause the  Company  to  register  Registrable  Securitiespursuant
hereto may be  assigned  (but only with all related  obligations)by  a holder of
Registrable Securities to a transferee or assignee ofsuch securities,  provided:
(a) the Company is, within a reasonable timeafter such transfer,  furnished with
written  notice of the name  andaddress  of such  transferee or assignee and the
securities with respectto which such registration rights are being assigned; (b)
suchtransferee  or assignee  agrees in writing to be bound by and subject  tothe
terms and conditions of this Exhibit;  and (c) such assignment shallbe effective
only if  immediately  following  such  transfer the  furtherdisposition  of such
securities  by the  transferee or assignee  isrestricted  under the Act. For the
purposes of determining the number ofshares of Registrable  Securities held by a
transferee  or  assignee,   theholdings  of  transferees   and  assignees  of  a
partnership who are partnersor  retired partners of such partnership  (including
spouses  andancestors,  lineal  descendants  and  siblings  of such  partners or
spouseswho acquire Registrable Securities by gift, will or  intestatesuccession)
shall be aggregated together and with the partnership.

10. LOCK-UP

In   any    registration   of   the   Company's    shares,    all   holders   of
RegistrableSecurities  agree  that any sales of  Registrable  Securities  may be
subjectto  a  "lock-up"  period  restricting  such  sales for up to one  hundred
andeighty (180) days. All holders will agree to abide by such customary"lock-up"
period  of up to  one  hundred  and  eighty  (180)  days  as  isrequired  by the
underwriter in a registration under Section 3 of thisExhibit. All holders who do
not  participate in a demand  registrationwill  agree to abide by such customary
"lock-up" period of up to onehundred and eighty (180) days as is required by the
underwriter  in  ademand   registration  under  Section  2.1  of  this  Exhibit,
provided,however,  that all  officers  and  directors  of the  Company  agree to
asimilar lock-up with respect to any securities held by them.

11. OTHER REGISTRATION RIGHTS

(One) With regard to any registration of the Company's securitiescovered herein,
the  Company  shall  provide  at  least  15  days'  writtennotice  to the  Other
Shareholders prior to the initial filing of aregistration statement, and subject
to the following conditions, theCompany will include in such registration all of
the Ordinary Shares ofsuch Other  Shareholders with respect to which the Company
has  receivedwritten  requests for  inclusion  therein  within 10 days after the
Companygives  such notice.  The foregoing Other Shareholder  registration  right
issubject to the following:  (i)_the total amount of Other Shareholders'Ordinary
Shares  included in a Company  registration  pursuant to  thisSection  shall not
exceed twenty percent (25%) of the total number ofshares of selling shareholders
of the Company registered in  suchregistration,  and (ii) the provisions of this
Section shall not apply tothe Ordinary Shares of any Other  Shareholder who will
be  entitledpursuant  to Rule 144 to sell  such  shares  within  six  months  of
theinitial filing of such registration statement.

(Two)   Unless    approved   by   the   holders   of   the   majority   of   the
Purchasers'Registrable  Securities,  the  Company  shall not grant  registration
rightswith  respect to any securities of the Company that might derogate fromthe
rights  granted to the holders of the  Registrable  Securities  pursuantto  this
Exhibit.

<PAGE>

12. TERMINATION OF REGISTRATION RIGHTS

Except as otherwise  provided herein, all registration  rights,  containedherein
shall expire after four years following the Company's  initialpublic offering on
any recognized stock exchange in the United States oron NASDAQ.  Notwithstanding
the above,  the provisions of Section 8 hereofshall  survive any  termination of
the registration rights containedherein.

13. SURVIVAL

The  obligations of the Company and holders of Registrable  Securitieshereunder,
including,  without  limitation,  those obligations  underSections 8 and 5 shall
survive the completion of any offering  ofRegistrable  Securities  hereunder and
otherwise.

025(vers 2) Organitech 19.6

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