Document:

Exhibit 4.11

SHARE PURCHASE AGREEMENT

This Share Purchase Agreement (this
“Agreement”) is made and entered into effective as of November 16, 2004 by and
between Nexus Telocation Systems Ltd.,
(hereinafter “Nexus”), a company
organized under the laws of the State of Israel, with offices at 1 Korazin
Street, Givatayim, Israel, and Egged Holdings
Ltd. , a company organized under the laws of the State of Israel,
with offices at 142 Menachem Begin St. Tel Aviv Israel (hereinafter the “Purchaser”) (each a “Party”
and, together, the “Parties”).

W I T N E S S E T H

WHEREAS  Nexus wishes that the Purchaser
shall make an investment in Nexus, upon the terms and conditions set forth
herein; and 

WHEREAS The Purchaser wishes to make an
investment in Nexus upon the terms and conditions set forth herein;  

NOW THEREFORE, in consideration of the
covenants and conditions hereinafter set forth, the parties hereto agree as
follows:

	
   

  	
   

  	
   

  
	
  1.

  	
  Agreement to
  Purchase and Sell

  
	
   

  	
   

  
	
   

  	
  1.1

  	
  Shares. 
  Subject to and in accordance with the terms and conditions of this
  Agreement, Nexus shall sell and issue, and the Purchaser shall purchase,
  28,571,429 Ordinary Shares of Nexus, nominal value NIS 0.03 each (such shares
  “Initial Shares”, 
  all shares to be issued to Purchaser under this Agreement, “Shares”), at a price per share of 8.4 US
  cents (US$0.084 (hereinafter, the “Price
  Per Share”), and a total consideration of 2,400,000 US dollars
  (US$ two million four hundred thousand) (hereinafter, the “Purchase Price”).  It is hereby agreed that within
two months
  after the Closing Nexus may raise up to an additional 3,000,000 US dollars;
  of which DBSI Investments Ltd. may invest up to 1,000,000 US dollars and
  additional investors  may invest up to
  an additional 2,000,000 US dollars (“Additional
  Investors”).  It is hereby
  clarified that Egged may be part of the Additional Investors.  The Additional Investors will become a
  party to this Agreement by executing a Joinder Agreement in the form attached
  hereto as Exhibit 1.1.

  
	
   

  	
   

  	
   

  
	
   

  	
  1.2

  	
  Warrant. Subject to and in accordance with
  the terms and conditions of this Agreement, at the Closing Nexus shall issue
  to the Purchaser a warrant to purchase such number of Ordinary Shares equal
  to the number of Initial Shares multiplied by 22% (the “Warrant Shares”).  The exercise price per Warrant Share shall
  be 8.4 US cents (US$0.084) (the “Warrant”). A form of the Warrant is attached
  hereto as Exhibit 1.2.

  

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Closing

  
	
   

  	
   

  
	
   

  	
  2.1

  	
  Closing Date.  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Subject to the conditions set forth in Section 7 below, the
  consummation of the transaction contemplated hereby (hereinafter, the “Closing”) shall take place  at the
offices of Yigal Arnon & Co., 1
  Azrieli Center, Round Building, 46th Floor, Tel Aviv, Israel, upon
  fulfillment of all conditions to Closing (“hereinafter, the Closing Date”).  

  
	
   

  	
   

  	
   

  
	
   

  	
  2.2

  	
  Transfer of
  Funds and Issuance of Certificate.  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The following instruments, agreements and documents shall be executed
  and delivered at the Closing and all such documents shall be deemed delivered
  simultaneously and all transactions contemplated hereby and thereby shall be
  deemed to take place simultaneously, and no such document shall be deemed
  delivered until all such transactions are completed and all such documents
  are delivered.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.2.1

  	
  The
  following deliveries will be made by Nexus to Purchaser at the Closing:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  2.2.1.1

  	
  a certificate duly issued by Nexus substantially in the form attached
  hereto as Exhibit 2.2.1.1  to the
  effect that all conditions to Closing have been fulfilled and attaching any
  authorization required as a condition to Closing;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  2.2.1.2

  	
  Nexus’ Board of Directors and Special meeting of Shareholders
  resolutions substantially in the form attached hereto as Exhibit 2.2.1.2a and Exhibit 2.2.1.2b;
  including issuance of the Shares to the name of the Purchaser adoption of
  amended Articles of Association, as set forth in Section 7.1 below and
  election of directors as set forth in 7.1 below;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  2.2.1.3

  	
  a certificate duly issued by Nexus substantially in the form attached
  hereto as Exhibit 2.2.1.3, dated
  as of the Closing Date, with respect to the existing organization and
  registration of Nexus and attaching and certifying as to the accuracy of
  copies of Nexus’ Articles of Association, as amended to date, and resolutions
  of the Board of Directors and shareholders of Nexus authorizing the execution
  and delivery of this Agreement, and the completion of the transactions
  contemplated hereby and thereby;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  2.2.1.4

  	
  a legal opinion of Yigal Arnon & Co., counsel for Nexus,
  substantially in the form attached hereto as Exhibit 2.2.1.4, dated as of the Closing Date; 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  2.2.1.5

  	
  Shares certificates for the Shares.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.2.2

  	
  The
  following deliveries will be made by Purchaser to Nexus at the Closing:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  2.2.2.1

  	
  Subject to the provisions of Section 7 below, the Purchase Price
  shall be transferred to Nexus, by wire transfer into the account of Nexus at
  Bank Ha’Poalim, Branch 615, Account # 543210 or to any other bank account if
  Nexus shall instruct the Purchaser so in writing; 

  

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  3.

  	
  Representations
  and Warranties of Nexus.

  
	
   

  	
   

  
	
   

  	
  Nexus hereby represents and warrants to the Purchaser as at the date
  of this Agreement and as at the Closing Date as follows, and acknowledges
  that the Purchaser is entering into this Agreement based on such
  representations and warranties:

  
	
   

  	
   

  
	
   

  	
  3.1

  	
  Organization;
  Power; etc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (a)

  	
  Nexus is a public company duly organized and validly existing under
  the laws of the State of Israel.  The
  updated correct Certificate of Incorporation, Memorandum of Incorporation and
  Articles of Association of Nexus are attached hereto as Exhibit 3.1a.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (b)

  	
  The Subsidiaries (as such term is defined in Section 3.3 below), are
  duly organized private companies, as set forth in Exhibit 3.1b.  The
  updated correct certificate of Incorporation, Memorandum of Incorporation and
  Articles of Association of such Subsidiaries are attached hereto in Exhibit 3.1b.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (c)

  	
  Subject to the provisions of Section 7 below, Nexus has all requisite
  power and authority to execute, deliver and perform this Agreement and to
  consummate the transactions contemplated hereby.  Subject to the provisions of Section 7 below, the execution,
  delivery and performance by Nexus of this Agreement and consummation of the
  transactions contemplated hereby have been duly authorized by all necessary
  corporate actions of Nexus.  Subject
  to the provisions of Section 7 below and following the execution of this
  Agreement, this Agreement will constitute a valid and binding obligation of
  Nexus, enforceable in accordance with its terms.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (d)

  	
  Nexus and its Subsidiaries (as defined below) materially complied
  with their material obligations and have not undergone an act of bankruptcy
  and to Nexus’ knowledge there is no current basis for an act of bankruptcy.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.2

  	
  Capitalization/Share
  Capital.  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.2.1

  	
  As of the date hereof, the authorized share capital of Nexus consists
  of 12,000,000 New Israeli Shekel divided into 400,000,000 Ordinary Shares,
  par value NIS 0.03 each, of which 170,450,517 Ordinary Shares are issued and
  outstanding on the date hereof. At the Closing
  the authorized share capital of Nexus shall consist of 24,000,000 New Israeli
  Shekel divided into 800,000,000 Ordinary Shares, par value NIS 0.03
  each.  All of the issued and
  outstanding Ordinary Shares have been duly and validly authorized and issued,
  and are fully paid and non-assessable. Other than the outstanding options and
  warrants set forth in Exhibit 3.2
  attached hereto, there are no outstanding or enforceable subscriptions,
  options, warrants, calls, rights (including preemptive rights), convertible
  securities, commitments, or any other agreements of any character for the
  purchase of or acquisition from Nexus of any securities including instruments
  convertible into, or exchangeable for, or evidencing the right to subscribe
  for, any Nexus Shares or securities.

  

- 3 -

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.2.2

  	
  Exhibit 3.2 also
  contains a correct list of all material Shareholders of Nexus, including any
  holder of 5% or more of Nexus issued and outstanding Share Capital.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.2.3

  	
  The exercise price of each option and/or warrant granted by Nexus, as
  set forth in Exhibit 3.2, is 4.4
  US cents (US$ 0.044) or higher, it being understood that each option and/or
  warrant is exercisable into 1 (one) Ordinary Share par value NIS 0.03 of
  Nexus.  Some of such options and/or
  warrants have a cashless exercise mechanism.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.3

  	
  Subsidiaries.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attached hereto as Exhibit 3.3
  is a correct list of all the Subsidiaries of Nexus (hereinafter, the “Subsidiaries”) and the description of
  equity holdings of each Subsidiary.

  
	
   

  	
   

  	
   

  
	
   

  	
  3.4

  	
  The Shares

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.4.1

  	
  Each of the Shares and shares resulting from the exercise of the Warrant which will be issued to the
Purchaser
  according to this Agreement, when issued as provided for herein, will be duly
  authorized, validly issued, fully paid, and non assessable, and free and
  clear of liens, security interests, pledges, charges, claims, encumbrances,
  pre-emptive rights, or any other third party rights of any kind.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.4.2

  	
  As of the date hereof, the Initial Shares shall constitute 14.36% of
  the issued and outstanding share capital of Nexus.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.4.3

  	
  The Shares will be freely transferable, subject to limitations under applicable law and, upon effectiveness
of the
  registration pursuant to §5 below, fully tradable without any limitation on
  their transferability subject to limitations under applicable law.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.5

  	
  Public
  Reports

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.5.1

  	
  Nexus’ shares are traded on the OTC Bulletin Board under the symbol NXUS.OB.;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.5.2

  	
  Nexus has fulfilled all material obligations imposed on it as a
  public company under Israeli and US law, including obligations imposed on it
  as being listed on the OTC Bulletin
  Board as aforesaid, including but not limited to filing of all required reports
  and disclosures to its shareholders and the Securities and Exchange
  Commission (“SEC”) and is not
  aware of any grounds for removing it from trade on the OTC Bulletin
  Board.  

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.5.3

  	
  A correct copy of Nexus’ financial reports and each of the Subsidiaries for June 30, 2004, are attached
  hereto as Exhibit 3.5.3.

  

- 4 -

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.5.4

  	
  Any and all of Nexus’ reports and all filings issued or published by
  Nexus including the financial reports set forth in Section 3.5.3 above, have
  been true and complete, as of the date of filing, and there has been no event
  since such reports and since the last report or disclosure to the SEC which
  constitutes a material adverse change in the business, financial condition,
  operations, results of operations of Nexus or its Subsidiaries or that makes
  such reports untrue or incomplete;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.5.5

  	
  None of the
  Subsidiaries are publicly traded. 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.5.6

  	
  Since the financial reports of June 30, 2004, (Exhibit 3.5.3), there has not been any material adverse
change in
  the business, assets, condition (financial or otherwise), or operations of
  Nexus and/or its Subsidiaries, taken by each of them, or as a whole, except
  as disclosed in Exhibit 3.5.6.  

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.6

  	
  Authorizations

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Except for the authorizations specifically listed in Section 7 below,
  no authorization, approval, order, license, permit or consent of, or filing
  or registration with,  any national,
  municipal or local government, governmental or regulatory body, regulatory or
  administrative agency, governmental commission, department, board, bureau,
  agency or instrumentality, political subdivision, commission, court,
  tribunal, official, arbitrator or arbitral body, all
  whether domestic or non-Israeli (hereinafter: “Governmental Body”),
  or consent of any other person, is required in connection with the execution,
  delivery and performance by Nexus of this Agreement and consummation of the
  transactions contemplated hereby.

  
	
   

  	
   

  	
   

  
	
   

  	
  3.7

  	
  The registration rights under Section 5 hereto are identical to the
  registration  rights granted by Nexus
  to its Shareholders: Pelephone Communications Ltd., Clal Information
  Technologies Ltd., Polar Communications Ltd., M. Vertheim (Holdings) Ltd.,
  Erdinast – Ben Nathan Trustees Ltd., Dror Goldman Ltd., Gadi Aviram Ltd. and
  I. Brandes Ltd. (hereinafter: the “Pointer
  Shareholders”), except for the period in which the Form F-3 of the
  Pointer Shareholders is to be filed with the SEC and the priority in
  registration granted to the Pointer Shareholders
  over any shares to be issued after the date of a Share Exchange Agreement
  executed on April 25, 2004, with the Pointer Shareholders. 

  
	
   

  	
   

  	
   

  
	
   

  	
  3.8

  	
  Litigation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Except as detailed in Exhibit 3.8,
  there is no claim, action, suit, proceeding, investigation or criminal
  proceeding, at law or in equity, before any national, state or provincial,
  local or other Governmental Body or other forum pending against Nexus and/or
  any of the Subsidiaries (any such, a “Claim”
   or “Claims”) and Nexus has no knowledge of any such threatened
  Claims.

  
	
   

  	
   

  	
   

  
	
   

  	
  3.9

  	
  Intellectual
  Property Rights

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To the knowledge of Nexus, Nexus and its Subsidiaries own, or has the
  right to use pursuant to a valid, legal, binding and enforceable license
  (which is in full force and effect and has not been breached by Nexus or its Subsidiaries or, to the knowledge of
  Nexus, by any other party thereto), all intellectual property rights
  necessary for or used in the operation of the business as currently conducted
  and as presently contemplated to be conducted by Nexus’ and/or its Subsidiaries
  present management.

  

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  3.10 

  	
  Contracts

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.10.1

  	
  Neither
  Nexus nor any of the Subsidiaries is a party to any material contract or
  arrangement (written or oral), other than those listed in the list attached
  hereto as Exhibit 3.10. Without derogating from the generality of the previous
  sentence, the following shall be deemed material contracts:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3.10.1.1

  	
  any
  agreement (or group of related agreements), including for lease, purchase or
  sale of supplies, products, or for the furnishing or receipt of services, the
  performance of which will extend over a period of more than one year, result
  in a material loss to Nexus and/or its Subsidiaries;, or involve
  consideration in excess of $100,000;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3.10.1.2

  	
  any
  agreement concerning a partnership or joint venture;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3.10.1.3

  	
  any
  agreement (or group of related agreements) under which it has created,
  incurred, assumed, or guaranteed any indebtedness for borrowed money, or any
  capitalized lease obligation, in excess of $100,000 or under which it has
  imposed a lien or any encumbrance on any of its assets, tangible or
  intangible;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3.10.1.4

  	
  any
  agreement concerning noncompetition, 
  not including employment agreements;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3.10.1.5

  	
  any
  agreement with any interested party in Nexus and/or its Subsidiaries;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3.10.1.6

  	
  any
  agreement with any key employee including the agreement with Nexus’ Chief
  Executive Officer;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3.10.1.7

  	
  any profit
  sharing, stock option, stock purchase, stock appreciation, deferred
  compensation, severance, or other material plan or arrangement for the
  benefit of its current or former directors, officers, and employees;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3.10.1.8

  	
  any
  collective bargaining agreement; if any.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3.10.1.9

  	
  any
  agreement for the employment of any individual on a full-time, part-time,
  consulting, or other basis providing annual compensation in excess of
  $100,000 or providing severance or retirement benefits in excess of $100,000.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3.10.1.10 

  	
  any
  agreement under which it has advanced or loaned any amount to any of its directors,
  officers, and employees outside the Ordinary Course of Business in excess of
  $100,000;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3.10.1.11 

  	
  any
  agreement under which the consequences of a default or termination could have
  a material adverse effect on the business, financial condition, operations,
  results of operations, or future prospects of any of Nexus or its
  Subsidiaries; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3.10.1.12 

  	
  any other
  agreement (or group of related agreements) the performance of which involves
  consideration in excess of $200,000.

  

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  3.10.2 

  	
  Nexus has
  delivered to Purchaser a correct and complete copy of each agreement listed
  in Exhibit 3.10 hereto (as amended to date). With respect to each such
  agreement:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3.10.2.1

  	
  the
  agreement is legal, valid, binding, enforceable, and in full force and
  effect, except as disclosed in Exhibit 3.10;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3.10.2.2

  	
  to the
  knowledge of Nexus after due inquiry being made there will be no change in
  any term of the agreements as a result of the consummation of the
  transactions contemplated hereby;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3.10.2.3

  	
  to the
  knowledge of Nexus after due inquiry being made no party is in breach or
  default, and no event has occurred which with notice or lapse of time would
  constitute a breach or default, or permit termination, modification, or
  acceleration, under the agreement; and 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3.10.2.4

  	
  to the
  knowledge of Nexus after due inquiry being made no party has repudiated any
  material provision of the agreement.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.11

  	
  Permits;
  Compliance with Law

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Nexus and
  all of the Subsidiaries have complied in all material respects with the terms
  of, all consents, licenses, certificates, registrations, approvals,
  authorizations or permits issued, granted, given or otherwise made available
  by or under the authority of any Governmental Body or pursuant to any law
  (each, a “Permit”) required under any applicable law. Neither Nexus nor any
  of the Subsidiaries has received any Claim arising out of the failure to
  obtain any Permit. The business of Nexus or any of its Subsidiaries has not
  been, and is not being, conducted in material violation of any applicable law
  including any such laws relating to protection of the environment or the use
  or disposal of hazardous materials. None of the Permits will terminate, fail
  or lose effect as a consequence of the transactions contemplated by this
  Agreement, including the transactions described in § 6.5 and 7.6 below.

  
	
   

  	
   

  	
   

  
	
   

  	
  3.12

  	
  Taxes

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.12.1

  	
  Nexus and
  each of the Subsidiaries have filed or caused to be filed all Tax Returns (as
  defined below) which were required to be filed prior to the date hereof in
  respect of all Taxes (as defined below). Each such Tax Return is complete and
  accurate in all material respects, and Nexus has paid or made suitable
  provision in its financial statements for the payment of (i) all Taxes shown
  to be due on such Tax Returns, (ii) assessments received with respect
  thereto, and (iii) any Taxes which otherwise may be due with respect to
  periods ending on or prior to the date hereof.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  “Tax Returns” shall mean all federal, state,
  foreign, provincial and local tax (including income tax, value added tax and
  stamp tax) returns, notices, reports and computations.

  

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  “Taxes” shall mean all forms of taxation,
  whether direct or indirect and whether levied by reference to income,
  profits, gains (capital or otherwise), withholding, payroll, property,
  value-added, sales, use, supplies, net wealth, net worth, asset value,
  turnover, added value, benefits provided or deemed by applicable law to be
  provided to employees or any other matter, and statutory, franchise,
  governmental, state, provincial, local governmental or municipal impositions,
  duties, contributions and levies (including social security contributions),
  customs, import and excise taxes, duties and assessments in each case,
  applicable to Nexus or its Subsidiaries whenever imposed and in respect of
  any person (including an obligation to contribute to the payment of such on a
  consolidated, combined or unitary basis) and any other tax of any kind
  whatsoever, including any interest, penalty, or addition thereto, whether
  disputed or not.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.12.2

  	
  Nexus and
  its Subsidiaries have not received notice of any Claims or assessments
  pending or threatened for Taxes against Nexus and its Subsidiaries for
  periods ending on or before the date hereof. The last tax report filed by
  Nexus is in connection with the fiscal year 2002.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.12.3

  	
  No Tax
  Return of Nexus and its Subsidiaries is currently under audit or examination
  by any Governmental Body, or, to the knowledge of Nexus, proposed to be
  audited or examined, and neither Nexus nor any of the stockholders thereof
  knows of any threatened Tax related Claims or assessments against Nexus and
  its Subsidiaries. Nexus and its Subsidiaries have not received notice of any
  proposed deficiency in respect of any Taxes or raising any other questions
  with respect to any of its Tax Returns.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.13

  	
  Grants,
  Incentives and Subsidies

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.13.1

  	
  Attached
  hereto as Exhibit 3.13 is a correct and complete list describing all pending
  and outstanding Grants (as defined below) to Nexus and its Subsidiaries (a
  grant to a subsidiary of Nexus shall be deemed a grant to Nexus and the
  representations and warranties herein shall apply mutatis mutandis),
  including the aggregate amounts of each Grant, and the aggregate outstanding
  obligations thereunder of Nexus with respect to royalties, or the
  outstanding amounts to be paid to the Office of the Chief Scientist, Israeli
  Ministry of Industry and Trade, by Nexus and the composition of such
  obligations or amount by the product or product family that it relates to;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  “Grant”
  shall mean any grant, tax benefit, incentive or subsidy from any Israeli or
  other Governmental Body, including (a) “Approved Enterprise Status” from the
  Investment Center of the Israeli Ministry of Industry and Trade; and (b)
  grants from the Office of the Chief Scientist, Israeli Ministry of Industry
  and Trade;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.13.2

  	
  Nexus has
  made available to Purchaser, prior to the date hereof, correct copies of all
  applications for Grants submitted by Nexus and its Subsidiaries and of all
  letters of approval, and supplements thereto, granted to Nexus, including
  those approved and appearing in the Grants Schedule.

  

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  3.13.3

  	
  Nexus and
  its Subsidiaries are in material compliance with the terms and conditions of
  the Grants and have duly fulfilled all the undertakings relating thereto in
  all material respects. To Nexus’ knowledge, after due inquiry being made,
  there is no event or other set of circumstances which might lead to the
  revocation or material modification of any of the Grants. 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.14

  	
  Guaranties

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Nexus and
  its Subsidiaries are not a guarantor or are otherwise liable for any
  liability or obligation (including indebtedness) of any other person, except
  as disclosed in Schedule 3.14.

  
	
   

  	
   

  	
   

  
	
   

  	
  3.15

  	
  Nexus has
  disclosed to Egged all material and pertinent information regarding Shagrir
  Towing Services Ltd. and Shagrir (1985) Ltd. including all findings relating
  to due diligence inspections (financial, legal and others) conducted by, or
  for, Nexus. 

  
	
   

  	
   

  	
   

  
	
   

  	
  3.16

  	
  Disclosure

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  This
  Agreement, together with any Schedule hereto, does not contain an untrue
  statement of a material fact, or omit any statement of a material fact
  required to be stated or necessary in order to make the statements contained
  herein not misleading.

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Representations and Warranties of the Purchaser.

  
	
   

  	
   

  
	
   

  	
  The
  Purchaser (and if the Purchaser is more than one entity, each of the entities
  comprising the Purchaser) hereby represents and warrants to Nexus as to
  itself that as at the date of this Agreement and as at the date of Closing as
  follows and acknowledges that Nexus is entering into this Agreement based on
  such representations and warranties:

  
	
   

  	
   

  
	
   

  	
  4.1

  	
  Organizations; Power.

  

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (a)

  	
  The
  Purchaser is a duly organized, validly existing and in good standing under
  the laws of the State of Israel.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (b)

  	
  Subject to
  the provisions of Section 7 below, the Purchaser has the requisite power and
  authority to execute, deliver and perform this Agreement and to consummate
  the transactions contemplated hereby. Subject to the provisions of Section 7
  below, following the execution of this Agreement, this Agreement will
  constitute a valid and binding obligation of the Purchaser, enforceable in accordance
  with its terms. Subject to the provisions of Section 7 below, no consent or
  other approval is necessary on the part of the Purchaser for the consummation
  of the transaction contemplated hereby or the implementation thereof. Subject
  to the provisions of Section 7 below, the performance by the Purchaser of its
  obligations under this Agreement will not constitute, or result in, a breach
  of any undertaking of the Purchaser.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.2

  	
  Authorization
  of Agreement. Subject to the provisions of Section 7
  below, the execution, delivery and performance by the Purchaser of this
  Agreement and consummation of the transactions contemplated thereby have been
  duly authorized by all necessary corporate action of the Purchaser. It is
  hereby clarified that the Purchaser intends to receive the approval of its
  Board of Directors to the transactions contemplated hereby, within seven days
  from the date hereof. If no notice is received by Nexus it will be deemed
  that such approval has been granted. Nothing herein shall be deemed however
  as an obligation of Purchaser to receive such approval. 

  

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  4.3

  	
  Purchase for
  Investment. The Purchaser is acquiring all of the
  Shares to be acquired by it hereunder for its own account for investment and
  without a view to the distribution or resale of such Shares, it being
  understood that this Section 4.3 shall not prevent the Purchaser from selling
  or otherwise disposing of any of the Shares, at its sole discretion, in any
  transaction which does not violate the United States Securities Act of 1933,
  as amended (hereinafter the “Securities Act”). 

  
	
   

  	
   

  	
   

  
	
   

  	
  4.4

  	
  U.S. Federal
  Securities Laws. The Purchaser has been made aware
  that none of the Shares acquired hereunder including shares under the
  Warrant, may be sold, transferred or otherwise disposed of (any such sale,
  transfer or other disposition, a “sale”), except in compliance with (i)
  United States Federal Securities laws (which generally provide for a 12 month
  waiting period before resale of restricted securities), (ii) state blue sky laws.
  

  
	
   

  	
   

  	
   

  
	
   

  	
  4.5

  	
  Legend on
  Shares. The Purchaser is aware that the certificate
  representing the Shares shall be stamped or otherwise imprinted on its face
  with a legend in the following form:

  

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  “The shares
  represented by this certificate have not been registered under the Securities
  Act of 1933 (the “Securities Act”) and may not be sold, transferred, pledged,
  hypothecated or otherwise disposed of in the absence of (1) an effective
  Registration Statement under the securities act, (2) to the extent applicable,
  an exemption pursuant to Rule 144 under Securities Act (or similar rule under
  the Securities Act relating to the disposition of securities) or (3) an
  opinion of counsel, if such opinion shall be reasonably satisfactory to
  counsel for issuer, that an exemption from registration under the Securities
  Act is available. The Shares have been acquired for investment and may not be
  sold, transferred or otherwise disposed of except in compliance with the
  Securities Act.”

  

	
   

  	
   

  	
   

  
	
   

  	
  4.6

  	
  Due
  Diligence Review. Without derogating from Nexus’
  obligations under Section 3 above, Purchaser acknowledges and warrants that
  it reached an informed and knowledgeable decision to invest in Nexus as a
  result of careful consideration review and legal, financial and commercial due
  diligence of Nexus, and confirms that to the best of its knowledge it has
  received all information requested by it from Nexus. 

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Registration
  Rights. 

  
	
   

  	
   

  
	
   

  	
  5.1

  	
  Definitions.
  As used in this Agreement, the term (A) “Registrable Securities” means (i) the
  Shares and the Warrant Shares purchased by the Purchaser and any additional
  shares which may be issued by Nexus in the Round of Financing; as defined in
  Section 6.6; (ii) shares to be issued to the Purchaser as a result of the
  exercise of an option granted to the Purchaser under an investment agreement
  entered into between Pointer (Eden Telecom Group) Ltd. the Company and the
  Purchaser, dated as of the date hereof; and (iii) any securities issued or
  issuable with respect to shares acquired by Purchaser by way of bonus shares,
  share splits, share conversions on account of the Shares and/or the Warrant
  Shares; the term “Securities Act” means the U.S. Securities Act of 1933, as
  amended; the term “registration” means registration under the Securities Act;
  and the term “Commission” means the U.S. Securities and Exchange Commission;
  (B) “Underwritten Offering” means a registration in connection with which
  securities are sold to an underwriter for re-offering to the public pursuant
  to an effective Registration Statement; and (C) “Pointer Registrable
  Securities” means the Ordinary Shares and Warrants issued to the shareholders
  of Pointer (Eden Telecom Group) by Nexus pursuant to a certain Share Exchange
  Agreement, dated April 25, 2004. 

  

- 10 -

	
   

  	
   

  	
   

  
	
   

  	
  5.2

  	
  Registrable
  Securities. As to any particular Registrable
  Securities, such securities will cease to be Registrable Securities when they
  have been effectively registered under the Securities Act and/or any other
  applicable securities law, although they will again become Registrable
  Securities if later deregistered. 

  
	
   

  	
   

  	
   

  
	
   

  	
  5.3

  	
  Registration.
  Within 4 months after the Closing Date, Nexus will file a Registration
  Statement on Form F-3 with respect to all of the Registrable Securities (the
  “Registration Statement”) with the Commission. Nexus shall make its best
  efforts to have such registration Statement declared effective by the
  Commission as soon as practicable thereafter. Nexus agrees to use its best
  efforts to keep the Registration Statement continuously effective for a
  period of 36 months following the date on which the Registration Statement is
  initially declared effective or such shorter period when all of the shares
  covered by the Registration Statement have been sold pursuant to the
  Registration Statement. Nexus further agrees, if necessary, to supplement or
  amend the Registration Statement, if required by the rules, regulations or
  instructions applicable to the registration form used by Nexus for such
  Registration Statement or by the Securities Act or by any other rules and
  regulations there under for registration.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Nexus shall
  not be required to keep the Registration Statement effective between March 15
  and June 30 of each year. Nexus shall (i) notify the Purchaser in writing at
  least 30 business days in advance, if the Registration Statement’s
  effectiveness is to be suspended and (ii) immediately notify the Purchaser
  upon the Registration Statement becoming effective again. 

  
	
   

  	
   

  	
   

  
	
   

  	
  5.4.

  	
  The
  Purchaser may not participate in any Underwritten Offering hereunder unless
  the Purchaser (i) agrees to sell its Registrable Securities on the basis
  provided in any underwriting agreements entered into in connection therewith
  and (ii) completes and executes all questionnaires, powers of attorney,
  indemnities, underwriting agreements and other customary documents required
  under the terms of such agreements.

  
	
   

  	
   

  	
   

  
	
   

  	
  5.5

  	
  Registration
  Expenses. Nexus shall bear and be responsible for
  all registration expenses incurred in connection with the transactions
  described herein. Registration expenses include all expenses incident to
  Nexus’ performance of or compliance with this Agreement, including without
  limitation expenses incurred in connection with the preparation of a
  prospectus. Notwithstanding the foregoing, however, all underwriters’
  discounts and commissions in respect of the sale of Registrable Securities
  shall be paid by the Purchaser and the holders of the Pointer Registrable
  Securities, pro rata in accordance with the number of shares sold in the
  offering, and the Purchaser shall bear the expense of its legal counsel, if
  separate from Nexus’ legal counsel.

  
	
   

  	
   

  	
   

  
	
   

  	
  5.6

  	
  Nexus
  undertakes not to register for trade, prior to the registration of the
  Registrable Securities, any shares to be issued after the date of this
  Agreement. Without derogating from the provisions of §5.3 above, the
  Purchaser acknowledges that Nexus has a prior agreement and commitment to the
  holders of the Pointer Registrable Securities to register the Pointer
  Registrable Securities prior to the registration of the Registrable
  Securities.

  

- 11 -

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.7

  	
  Nexus will
  keep the Purchaser advised in writing as to the initiation of such
  registration and as to the completion thereof. At its expense, Nexus will:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.7.1

  	
  Furnish to
  the Purchaser such numbers of copies of the Registration Statement in
  conformity with the requirements of the Securities Act, and such other
  documents as they may reasonably request in order to facilitate the
  disposition of Registrable Securities owned by them.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.7.2

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

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.8

  	
  Indemnification.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.8.1

  	
  Nexus
  Indemnity. Nexus will indemnify the Purchaser and
  the Purchaser’s officers, directors and partners, and each person controlling
  the Purchaser, and each underwriter, if any, and each person who controls any
  underwriter, against all claims, losses, damages and liabilities (or actions
  in respect thereof) arising out of or based on any untrue statement of a
  material fact contained in any prospectus, offering circular or other
  document (including any related Registration Statement, notification or the
  like) incident to any such registration, qualification or compliance, or
  based on any omission to state therein a material fact required to be stated
  therein or necessary to make the statements therein, in light of the
  circumstances in which they were made, not misleading, or any violation by
  Nexus of the Securities Act including any rule or regulation thereunder
  applicable to Nexus relating to action or inaction required of Nexus in
  connection with any such registration, qualification or compliance, and will
  reimburse the Purchaser, its officers, directors and partners, and each
  person controlling the Purchaser, each such underwriter and each person who
  controls any such underwriter, for any legal and any other expenses
  reasonably incurred in connection with investigating and defending any such
  claim, loss, damage, liability or action, provided that Nexus will not be
  liable in any such case to the extent that any such claim, loss, damage,
  liability or expense arises out of or is based on any untrue statement or
  omission so made in strict conformity with written information furnished to
  Nexus by the Purchaser or underwriter, if any, and stated to be specifically
  for use therein, and provided further that Nexus will not be liable in any
  such case if a settlement was effected without the prior written consent of
  Nexus, which consent shall not be unreasonably withheld. Such indemnity shall
  remain in full force and effect regardless of any investigation made by or on
  behalf of the Purchaser, the underwriter, or any controlling person of the
  Purchaser or the underwriter, and regardless of any sale in connection with
  such offering by the Purchaser. Such indemnity shall survive the transfer of
  the securities by the Purchaser.

  

- 12 -

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.8.2

  	
  Purchaser
  Indemnity. The Purchaser shall indemnify and hold
  harmless Nexus, any underwriter for Nexus and each person, if any, who
  controls Nexus or such underwriter, from and against any and all losses,
  damages, claims, liabilities, costs or expenses (including any amounts paid
  in any settlement effected with the selling shareholder’s consent) to which
  Nexus, any such underwriter or any such controlling person may become subject
  under applicable law or otherwise, insofar as such losses, damages, claims,
  liabilities (or actions or proceedings in respect thereof), costs or expenses
  arise out of or are based on (i) Purchaser’s untrue statements of any
  material fact contained in the Registration Statement or included in the
  prospectus, as amended or supplemented, or (ii) Purchaser’s omission to state
  therein a material fact required to be stated therein or necessary to make
  the statements therein, in the light of the circumstances in which they were
  made, not misleading, and the Purchaser will reimburse Nexus, any such
  underwriter and each such controlling person of Nexus or any such
  underwriter, promptly upon demand, for any reasonable legal or other expenses
  incurred by them in connection with investigating, preparing to defend or
  defending against or appearing as a third-party witness in connection with
  such loss, claim, damage, liability, action or proceeding; in each case to
  the extent, that such untrue statement or omission is contained in any
  information so furnished in writing by the Purchaser to Nexus specifically
  for inclusion in the Registration Statement or prospectus and that such
  information was reasonably relied upon by Nexus for use in the Registration
  Statement, prospectus or to the extent that such information related to the
  Purchaser or the Purchaser’s proposed method of distribution of Registrable
  Securities and was reviewed and expressly approved in writing by the
  Purchaser expressly for use in the Registration Statement, form of
  prospectus; provided, however, that the indemnity shall not apply to amounts
  paid in settlement of any losses if such settlement is effected without the
  prior written consent of the Purchaser. In no event shall the liability of
  the Purchaser hereunder be greater in amount than the dollar amount of the
  net proceeds received by the Purchaser upon the sale of the Registrable
  Securities giving rise to such indemnification obligation; and in case that
  no sale of Registrable Securities occurred, then the liability shall not
  exceed the average value of the securities within the first three months
  after the registration.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.9

  	
  Information
  by Purchaser. The Purchaser shall furnish to Nexus
  such information regarding the Purchaser, the Registrable Securities held by
  it and the distribution proposed by the Purchaser as Nexus may reasonably
  request in writing and as shall be required in connection with any
  registration, qualification or compliance referred to in this Agreement.

  
	
   

  	
   

  	
   

  
	
   

  	
  5.10

  	
  Rule 144
  Reporting. With a view to making available the
  benefits of certain rules and regulations of the Commission which may permit
  the sale of the Restricted Securities to the public without registration,
  Nexus agrees to:

  

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  5.10.1

  	
  Make and
  keep public information available as those terms are understood and defined
  in Rule 144 under the Securities Act;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.10.2

  	
  File with
  the Commission in a timely manner all reports and other documents required of
  Nexus under the Securities Act and the Exchange Act;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.10.3

  	
  So long as a
  holder of Registrable Securities owns any Restricted Shares (i.e. shares
  required to bear a legend restricting their transferability), furnish to such
  holder forthwith upon request a written statement by Nexus as to its
  compliance with the reporting requirements of Rule 144, and of the
  Securities Act and the Exchange Act, a copy of the most recent annual or
  quarterly report of Nexus, and such other reports and documents so filed as
  such holder may reasonably request in availing itself of any rule or
  regulation of the Commis­sion allowing a holder to sell any such shares
  without regis­tration.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.11

  	
  Transfer or
  Assignment of Registration Rights.  The Purchaser may assign its rights to
  register Registrable Securities pursuant to this Agreement to a transferee of
  all or any part of its Registrable Securities, on condition that such
  transferee shall fully undertake and comply with all limitations and
  obligations set herein. The transfer shall be effective only if (i) within
  twenty (20) days after such transfer, the transferor or transferee furnishes
  Nexus with written notice of the name and address of such transferee and the
  securities with respect to which such registration rights are being assigned,
  and (ii) the transferee provides Nexus with its written agreement to be bound
  by this Agreement.

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Pre-Closing
  Covenants

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The Parties
  agree as follows with respect to the period between the execution of this
  Agreement and the Closing:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Following
  the execution of this Agreement and prior to the Closing Date, Nexus and the
  Subsidiaries shall, to the extent practicable given Nexus or its Subsidiaries
  cash position, (i) operate the business of Nexus and the Subsidiaries
  only in the ordinary
  course of business consistent with past custom and practice (including with
  respect to quantity and frequency) (“Ordinary
  Course of Business”); and (ii) use their reasonable efforts
  to preserve the business and the goodwill of its employees, suppliers and
  customers generally and to retain its relationships with such parties
  generally. 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.2

  	
  Without
  derogating from the provisions of §6.1 above, prior to the
  Closing Date, Nexus shall not take any material action that might prejudice
  the consummation of the transactions contemplated by this Agreement,
  including any action that may have the following consequences on Nexus or any
  of the Subsidiaries, but not including any action noted below as required to
  be taken for consummation of the Pointer Transaction (as defined in Section
  6.6 below), and the Shagrir Transaction, (as defined in Section 6.6 below): 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6.2.1

  	
  Distribution
  of dividends or other benefit to shareholders (as such terms are defined in
  the Companies Law). 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6.2.2

  	
  Entry into
  or amendment of any shareholders agreement to which Nexus is a party
  (excluding the Recanati Agreement).

  

- 14 -

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6.2.3

  	
  Issuance of
  new shares or any other securities convertible into shares excluding issuance
  of new shares and other securities convertible into shares under the Pointer
  Transaction and the Shagrir Transaction.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6.2.4

  	
  Approval of
  material transactions which are not in the ordinary course of business of
  Nexus and Pointer, including, the sale and/or pledge of a substantial amount
  of the assets, material acquisition of businesses or companies or material
  investments, in other businesses or companies, reorganization, merger,
  amalgamation, spin-off, de-merger, entering into new fields of business,
  cessation of activities, dissolution, material transactions with interested
  parties (as such term is defined in the Companies Law), except for creation
  of pledges and the granting of securities in connection with the Pointer
  Transaction and the Shagrir Transaction. 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6.2.5

  	
  The amendment
  of the Articles of Association of Nexus or Pointer, other than pursuant to
  this Agreement, the Pointer Transaction and the Shagrir Transaction.; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6.2.6

  	
  The entry
  into any agreement or commitment by it to do any of the things described in this
  §6.2.
  

  
	
   

  	
   

  	
   

  
	
   

  	
  6.3

  	
  Following
  the execution of this Agreement and prior to the Closing Date, Egged shall be
  entitled to appoint one representative in a nonvoting observer capacity (“Observer”) to the board of directors of Nexus and any subsidiary of Nexus
  in which Nexus holds at least 51% of the outstanding Share capital on a fully
  diluted basis.  The Observer shall
  receive notice of all official proceedings of the board of directors and
  copies of all other materials sent to members of the Board and shall be
  entitled to participate in any board of directors meetings, but who shall
  have no right to vote on any matters voted upon by the board of
  directors.  The quorum for voting in
  any board of directors meeting shall include the Observer, however if the
  Observer is not present within half an hour an adjourned meeting may be held
  at such time and the presence of the Observer shall not be required. If
  requested, the Observer shall agree to be bound by a reasonable
  confidentiality agreement.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.4

  	
  Notice of
  Certain Events  

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Between the
  date of this Agreement and the Closing, Nexus shall promptly notify Purchaser
  in writing, and shall provide Purchaser with any information the Purchaser
  reasonably request, upon Nexus becoming aware of the occurrence of any of the
  following: (i) the commencement of any material proceeding or litigation at
  law or in equity or before any Governmental Body involving Nexus and/or any
  of its Subsidiaries or the conduct of their Business; (ii) a material
  violation by Nexus and/or any of its Subsidiaries (or notice of potential
  violation) of any law that could have an adverse effect on the business of
  Nexus and/or any of  its Subsidiaries
  or that could impair the ability of the Purchaser or Nexus and/or Pointer to
  consummate the transactions contemplated in this Agreement; (iii) the
  commencement or threat of any Claims, investigations or proceedings against,
  relating to, involving or otherwise affecting any Party, which may impair the
  ability of the Purchaser or Nexus and/or Pointer to consummate the
  transactions contemplated in this Agreement; (iv) any fact or circumstance
  which would make any representation or warranty set forth herein untrue or
  inaccurate in any material respect as of the Closing Date or as of the date
  of this Agreement; (v) ; (v) any notice or other communication from any
  person alleging that the consent of such person is or may be required in
  connection with the transactions contemplated in this Agreement; or (vi) any
  other event which has had or might reasonably be expected to have a material
  adverse effect on Nexus and/or  any of
  its Subsidiaries, including any circumstance, change or effect that, either
  individually or in the aggregate with all other circumstances, changes or
  effects Nexus and/or any of its Subsidiaries.

  

- 15 -

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.5

  	
  Raising
  Additional Funds to Nexus and Pointer (Eden Telecom Group) Ltd.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The
  Purchaser acknowledges that at the Closing Nexus intends to raise from other
  investors additional funds both directly in Nexus and in its subsidiary
  Pointer (Eden Telecom Group) Ltd. by way of issuance of shares and
  convertible debentures, as set forth in
Exhibit 6.5 (“Pointer Transaction”). In the event Nexus shall
  raise money in this round (i.e. prior to the completion of the purchase of the
  assets and activities of Shagrir Towing Services Ltd. and Shagrir (1985) Ltd. (“Shagrir Transaction”) (the “Round of Financing”) in terms and
  conditions more favorable to such investors, than the Purchaser shall be
  immediately entitled to such more favorable terms and conditions.  

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.6

  	
  Consents,
  Waivers and Filings

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Upon the
  terms and subject to the conditions set forth in this Agreement, the Parties
  shall use their respective reasonable best efforts to take, or cause to be
  taken, all actions, and to do, or cause to be done, and to assist and
  cooperate with each other in doing, all things, reasonably necessary or
  desirable to consummate in an expeditious manner the transactions
  contemplated by this Agreement. 
  Without limiting the foregoing, the Parties shall cooperate to obtain
  from all relevant third parties and Governmental Bodies, all consents and
  waivers to, and permits, authorizations and licenses for, the transactions
  contemplated by this Agreement that may be required under any agreement,
  lease, financing arrangement, license, Permit or other instrument or under
  any applicable law and to attempt to remove or vacate any legal prohibition
  or impediment to the consummation of the transactions contemplated hereby.

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Conditions
  to Closing

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The
  obligations of the Purchaser under this Agreement are subject to the
  fulfillment on or before the Closing, of each of the following conditions: 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  The
  transactions contemplated hereby were approved by Nexus’ shareholders,
  including the election of Directors, as set forth in Exhibit 7.1(a) and the amendment of Nexus
  Articles of Association pursuant to Exhibit
  7.1 (b) and the Pointer (Eden Telecom) Ltd. Articles of
  Association pursuant to Exhibit 7.1(c);

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.2

  	
  Nexus shall
  have complied in all material respects with its covenants and agreements set
  forth in this Agreement, except as to those covenants and agreements to be
  performed or observed after the Closing Date, and Purchaser shall have
  received a certificate duly signed by Nexus to such effect;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.3

  	
  The Board of
  Directors of Purchaser approved the transactions contemplated by this
  Agreement as set forth in Section 4.2 above;

  

- 16 -

	
   

  	
   

  	
   

  
	
   

  	
  7.4

  	
  All
  representations and warranties of Nexus set forth herein shall be true and
  correct in all material respects as of the Closing Date, with the same effect
  as if made at and as of the Closing Date, and Purchaser shall have received a
  certificate signed by Nexus to such effect;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.5

  	
  No order,
  injunction or decree shall have been issued and be continuing before a court
  and no action, suit or proceeding by any governmental authority shall have
  been instituted or threatened which questions or attacks the validity or
  legality of the transactions contemplated hereby or seeks to restrain or
  prevent the consummation of the acquisition of its assets pursuant to this
  Agreement or the other transactions contemplated hereby;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.6

  	
  Closing of
  the Shagrir Transaction.  Nexus shall raise, at the Closing, the funds required for the
  closing of the purchase of the activities and assets of Shagrir Towing
  Services Ltd. and Shagrir (1985) Ltd., including the obtaining of the
  required bank finance, as described in Exhibit
  6.5, pursuant to terms and conditions reasonably satisfactory to
  Purchaser.  Nexus shall inform the
  Purchaser seven days prior to such closing. Immediately upon receipt of such
  notice and provided all other pre-closing or closing conditions as applicable
  were met, including receipt of the approval of the Antitrust Commissioner to
  such transaction as detailed in Section 7.8 below, the Purchase Price will be
  deposited by the Purchaser in escrow with Yigal Arnon & Co.  The Purchase Price will be transferred by
  Yigal Arnon & Co. to Nexus upon the Closing of the transactions contemplated
  herein with Nexus.  In the event that
  the Closing does not occur up to 45 days Yigal Arnon & Co. will return
  the Purchase Price to Purchaser.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.7

  	
  Nexus shall deliver to the Purchaser a
  copy of the approvals of the transactions contemplated hereby from: (i) the
  Office of the Chief Scientist of the Ministry of Industry and Trade of the
  State of Israel; and (ii) the Investment Center.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.8

  	
  Approval of
  Anti-Trust Controller. The approval of the
  Anti-Trust Controller shall be obtained by the Parties to the proposed
  transaction.  In the event that the
  approval of the Anti-Trust Controller shall include any material limitations
  and/or conditions on Nexus or any of its Subsidiaries or on Egged, Nexus or
  Egged, as applicable, shall have the right not to consummate the transactions
  hereby contemplated, and the Parties shall have no claims and/or demands to
  each other in such event. 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.9

  	
  Shareholders
  Agreement. Purchaser shall have entered with DBSI
  Investments Ltd. into a shareholders agreement in the form attached hereto as
  Exhibit 7.9.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.10

  	
  Pointer
  Agreement. Purchaser shall have entered with Pointer
  (Eden Telecom) Ltd.  into an
  investment agreement and a convertible loan agreement in the forms attached
  hereto as Exhibit 7.10a and Exhibit 7.10b and the articles of
  association of Pointer were amended as required under such agreements.

  
	
   

  	
   

  	
   

  
	
   

  	
  7.11

  	
  Purchaser
  did not terminate this Agreement pursuant to Section 8 below. 

  
	
   

  	
   

  
	
  8.

  	
  Termination

  
	
   

  	
   

  
	
   

  	
  Without
  derogating from any remedy under law, each of the Parties may terminate this
  Agreement by a written notice to the other Party, as the case may be, at any
  time prior to the Closing, as provided below:

  

- 17 -

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  The
  Purchaser and Nexus may terminate this Agreement by mutual written consent;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.2

  	
  The
  Purchaser may terminate this Agreement, by giving written notice to Nexus, in
  any of the following events: 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8.2.1

  	
  If Nexus or any of the Subsidiaries:  (1) is dissolved; (2)
  becomes insolvent or is unable to pay its debts or fails or admits in writing
  its inability generally to pay its debts as they become due; (3) makes a
  general assignment, arrangement or composition with or for the benefit of its
  creditors; (4) institutes or has instituted against it a proceeding seeking a
  judgment of insolvency or bankruptcy or any other relief under any bankruptcy
  or insolvency law or other similar law affecting creditors’ rights, or a
  petition is presented for its winding-up or liquidation, and, in the case of
  any such proceeding or petition instituted or presented against it, such
  proceeding or petition (A) results in a judgment of insolvency or
  bankruptcy  or the entry of an order
  for relief or the making of an order for its winding-up or liquidation or (B)
  is not dismissed, discharged, stayed or restrained in each case within 60
  days of the institution or presentation thereof; (5) has a resolution passed
  for its winding-up, official management or liquidation; (6) seeks or becomes
  subject to the appointment of an administrator, provisional liquidation,
  conservator, receiver, trustee, custodian or other similar official for it or
  for all or substantially all its assets; (7) has a creditor or secured party
  take possession of all or substantially all its assets or has a distress,
  execution, attachment, sequestration or other legal process levied, enforced
  or sued on or against all or substantially all its assets and such creditor
  or secured party maintains possession, or any such process is not dismissed,
  discharged, stayed or restrained, in each case within 60 days thereafter; (8)
  causes or is subject to any event with respect to it which, under the
  applicable laws of any jurisdiction, has an analogous effect to any of the
  events specified in clauses (1) to (7) (inclusive); or (9) takes any action
  in furtherance of, or indicating its consent to, approval of, or acquiescence
  in, any of the foregoing acts;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.3

  	
  The
  Purchaser and Nexus may each terminate this Agreement if the Closing shall
  not have occurred on or before the 120th  day 
  after the date of this Agreement (or such later date as may be
  designated by mutual written agreement of the Parties) by reason of the
  failure of any condition precedent under Section 7 above.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.4

  	
  Nexus and
  the Purchaser may each terminate this Agreement by giving written notice by
  one to the other, as applicable, in the event set forth in Section 7.8 above.
  

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.5

  	
  Effect of
  Termination. 
  

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If any Party
  terminates this Agreement under this Section 8, all rights and obligations of
  the Parties hereunder shall terminate without any liability of any Party to
  the other Party (except for any liability of any Party then in breach) and
  each Party shall restitute to the other Party, no later than 30 Business Days
  following the date of receipt of the notice of termination by all other
  Parties, any funds or rights transferred under this Agreement.  Costs of such return of rights shall be
  equally borne by the Parties.

  

- 18 -

	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  Dispute
  Resolution

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.1

  	
  Governing
  Law

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  This
  Agreement shall be governed by and construed in accordance with the laws
  of the State of Israel, without giving effect to the rules of conflict of
  laws thereof other than when application of Israeli law would render this
  Agreement, or any material provision herein, void or unenforceable.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.2

  	
  Submission
  to Jurisdiction

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each of the
  Parties submits to the exclusive jurisdiction of any court sitting in Tel
  Aviv, Israel, in any action or proceeding arising out of or relating to this
  Agreement.  Each of the Parties waives
  any defense of inconvenient forum to the maintenance of any action or
  proceeding so brought and waives any bond, surety, or other security that
  might be required of any other Party with respect thereto. Each Party agrees
  that a final judgment in any action or proceeding so brought shall be
  conclusive and may be enforced anywhere in the world by suit on the judgment
  or in any other manner provided by law or in equity.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.3

  	
  Arbitration

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Arbitration.
  Notwithstanding Section 9.2 above, any claims in direct or indirect
  connection with this Agreement shall be exclusively resolved by arbitration
  in accordance with this Section 9.3. 
  Any such arbitration shall be conducted in the Hebrew language in Tel
  Aviv, Israel, by a single arbitrator who is an attorney admitted to practice
  in Israel and appointed by the President of the Israeli Bar Association,
  unless the Parties agree on the identity of the arbitrator within 15 days of
  a request for arbitration.  The arbitrator
  shall not be bound by rules of civil procedure or the principals governing
  admissibility of evidence.  The
  arbitrator shall have the right to order discovery.  This Section 9.3 shall be deemed Arbitration agreements.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Interim
  Relief. Notwithstanding anything in this Section 9, each Party may seek
  interim injunctive relief from a court of competent jurisdiction provided
  that such interim injunction relief shall be until an arbitrator is
  appointed.  The continuance of such
  interim relief may be determined by the arbitrator.  No arbitration pursuant to this Agreement shall be stayed or
  delayed pending the outcome of any judicial or other proceedings.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Arbitral
  Award.  The award of the arbitrator
  shall be issued in a written opinion, which shall set forth the arbitrator’s
  finding of facts and conclusions, and shall be conclusive and binding upon
  the Parties.  Judgment upon an
  arbitral award may be entered in any court of competent jurisdiction.  The arbitrator shall have the right to
  order injunctive relief and the payment of attorney’s fees, costs and other
  damages. 

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  Miscellaneous.
  

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.1

  	
  Relationship
  of the Parties  

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  This
  Agreement shall not create an agency, partnership, employer-employee or joint
  venture relationship between the Parties or any employees of the Parties, and
  nothing hereunder shall be deemed to authorize any Party to act for,
  represent or bind the others except as expressly provided in this Agreement.

  

- 19 -

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.2

  	
  No Benefit to Others

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  This
  Agreement is for the sole benefit of the Parties and their successors and
  permitted assigns and shall not be construed as conferring any rights on any
  others.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.3

  	
  Integration of Terms 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  This Agreement
  (including its Exhibits) constitutes the entire agreement and understanding
  between the Parties with respect to the subject matter hereof, and supersedes
  any and all prior drafts, agreements, understandings, promises, representation, warrant and covenant,
  whether written or oral, between the Parties with respect to the subject
  matter hereof. Drafts exchanged
  during the negotiations of this Agreement shall not be used to construe the
  intentions of the Parties.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.4

  	
  Entire
  Agreement. 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Subject to
  the provisions of §10.11 below, this Agreement including its Exhibits
  constitutes the sole understanding of the Parties with respect to the subject
  matter hereof. No amendment,
  modification or alteration of the terms or provisions of this Agreement shall
  be binding unless the same shall be in writing and duly executed by the
  parties hereto.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.5

  	
  Counterparts
  

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  This
  Agreement may be executed in one or more counterparts, each of which shall
  for all purposes be deemed to be an original and all of which shall
  constitute the same instrument.

  
	 
	
   

  	
  10.6

  	
  Construction

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10.6.1

  	
  The recitals
  and schedules hereto consist an integral part hereof. The Exhibits and Schedules identified in
  this Agreement are incorporated herein by reference and made a part
  hereof.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10.6.2

  	
  The headings
  in this Agreement and their associated numbers are included for ease of
  reference only and shall have no legal, constructive or interpretive effect.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10.6.3

  	
  The word “including” shall mean including without
  limitation.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10.6.4

  	
  The word “person” shall mean any legal entity,
  including an individual, a partnership, a corporation, an association, a
  joint stock company, a trust, a joint venture, an unincorporated
  organization, or a Governmental Body;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10.6.5

  	
  This
  Agreement shall be construed as if drafted jointly by the Parties and no
  presumption or burden of proof shall arise favoring or disfavoring any Party
  by virtue of the authorship of any of the provisions of this Agreement. 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10.6.6

  	
  Nothing in
  any of the Exhibits hereto shall be deemed adequate to disclose an exception
  to a representation or warranty made herein unless the Exhibit identifies the
  exception with reasonable particularity and describes the relevant facts in
  reasonable detail. Without limiting
  the generality of the foregoing, the mere listing (or inclusion of a copy) of
  a document or other item shall not be deemed adequate to disclose an
  exception to a representation or warranty made herein (unless the
  representation or warranty has to do with the existence of the document or
  other item itself). 

  

- 20 -

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10.6.7

  	
  Any $ amount in this Agreement shall mean the NIS equivalent of such
  U.S $ amount at the value of such amount pursuant to the last Representative
  Rate published by the Bank of Israel
  prior to such date. Any payment made
  after 12:00 AM shall be deemed pursuant to the Representative Rate published
  at the end of such business date. 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.7

  	
  Taxes; Expenses.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10.7.1

  	
  Stamp tax
  shall be borne by the Parties in equal parts.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10.7.2

  	
  All amounts
  herein are VAT inclusive (if applicable) the amount of VAT or any other
  transfer Taxes payable in connection with the transactions contemplated
  hereby.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10.7.3

  	
  Each of the
  parties hereto shall bear its own expenses relating to this Agreement.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.8

  	
  Specific Performance 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each Party
  agrees that the other Party shall be entitled to an injunction or injunctions
  to prevent breaches of the provisions of this Agreement and to enforce
  specifically this Agreement and the terms and provisions hereof, in addition
  to any other remedy to which it may be entitled, at law or in equity.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.9

  	
  No Waiver. No action taken pursuant to this
  Agreement, including any investigation by or on behalf of any party hereto,
  will be deemed to constitute a waiver by the party taking any action of
  compliance with any representation, warranty or agreement contained
  herein. The waiver by any party
  hereto of any condition or of a breach of any other provision of this
  Agreement will not operate or be construed as a waiver of any other condition
  or subsequent breach. The waiver by
  any party of any of the conditions precedent to its obligations under the
  Agreement will not preclude it from seeking redress for breach of this
  Agreement other than with respect to the condition so waived.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.10

  	
  No Broker.
  Each of the parties represents, as to itself, its subsidiaries and its
  affiliates, that no agent, broker, investment banker or other firm or person,
  is or shall be entitled to any broker’s or finder’s fee or any other
  commission or similar fee in connection with this Agreement.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.11

  	
  Integrated
  Obligations

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Parties’
  obligations under this Agreement are integrated obligations. In addition, this Agreement and the
  Pointer Agreement, as defined in Section 7.10 above, and all agreements
  ancillary thereto (other than the Shareholders Agreement entered into on
  November 16, 2004 between Purchaser and DBSI), shall at all times be deemed a
  single agreement. Thus, inter alia, any breach of one of such
  documents shall be deemed also a breach of the other.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.12

  	
  Notices. Any notice, request, instruction or other
  document (each, a “notice”) to be given hereunder by any party hereto to any
  other party hereto shall be in writing and delivered personally or sent by
  registered or certified mail, postage prepaid,

  

- 21 -

	
   

  	
   

  
	
   

  	
  If to Nexus
  to: 

  
	
   

  	
  Nexus Telocation Systems Ltd.

  
	
   

  	
  1 Korazin Street

  
	
   

  	
  Givatyim, Israel

  
	
   

  	
  Fax number: 972-3-5719698

  
	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
  Yigal Arnon & Co.,

  
	
   

  	
  1 Azrieli Center, Tel Aviv

  
	
   

  	
  Fax number: 972-3-6087713

  
	
   

  	
  Attn. Orly Tsioni, Adv.

  
	
   

  	
   

  
	
   

  	
  If to the Purchaser:

  
	
   

  	
  Egged Holdings Ltd.

  
	
   

  	
  142 Menachem Begin Road

  
	
   

  	
  Tel Aviv, Israel

  
	
   

  	
  Fax number: 972-3-6965354

  
	
   

  	
  Attn. Opher Linchevski

  
	
   

  	
   

  
	
   

  	
  With copy (which shall not constitute a
  notice) to:

  
	
   

  	
  Caspi & Co.

  
	
   

  	
  Attention: Ami Gilad, Adv.

  
	
   

  	
  33 Yavetz St., Tel Aviv 65258 Israel

  
	
   

  	
  Fax: +972 (3) 796-1340

  
	
   

  	
   

  
	
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- 22 -

WITNESS WHEREOF, each of the parties hereto has caused this Agreement
to be executed on its behalf as of the date first above written.

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NEXUS
  TELOCATION SYSTEMS LTD.

  	
  EGGED HOLDINGS LTD.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  

  	
   

  	
   

  	
  

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  

  	
   

  	
   

  	
  

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  

  	
   

  	
   

  	
  

  	
   

  

- 23 -20-F

Exhibit 4.12 

ENGLISH SUMMARY OF THE
CONVERTIBLE LOAN AGREEMENT 
(ORIGINAL LANGUAGE – HEBREW) 

BY AND AMONG 

NEXUS TELOCATION
SYSTEMS LTD. 

POINTER (EDEN TELECOM
GROUP) LTD. 

AND 

EGGED HOLDINGS LTD. 

Dated November 16,
2004 

(the
“Agreement”) 

	Description: 

                      

                      

                      

                      

                      

                      

Availability: 

                      

                      

                      

                      

                      

                      

                      

                      

Term and Interest: 

                      

                      

                      

                      

                      

                      

                      

Conversion: 

                      

                      

                      

                      

                      

                      

                      

                      

                      

                      

                      

                      

                      

                      

                      

                      

                      

                      

                      

                      

                      

                      

                       
	Convertible  Loan  Agreement   pursuant  to  which

Egged Holdings Ltd.  ("Egged")  shall loan Pointer

(Eden Telecom  Group) Ltd.  ("Pointer") $2 million

("First   Loan"),   convertible   into  shares  of

Pointer  and/or  Nexus  Telocation   Systems  Ltd.

("Nexus")  and  NIS  7,275,000   ("Second   Loan")

convertible into shares of Pointer and/or Nexus.

The First Loan shall be made  available to Pointer

at the consummation of the Agreement.

The  Second  Loan  shall  be  made   available  to

Pointer on  February  28,  2005 (that is, upon the

consummation of the transaction  pursuant to which

Pointer  shall  purchase  certain  activities  and

assets of Shagrir  Towing  Services  Ltd.  and its

subsidiary,    Shagrir   (1985)   Ltd.   ("Shagrir

Deal")).

Interest  on the First  Loan  shall be at the rate

of LIBOR (3-month) plus 3.5%  compounded  annually

and   accrued   daily.   Interest   payments   and

principal  payments on the First Loan shall become

payable from February 28, 2008.

The  Second  Loan  shall be  repaid  over 10 years

with 4% interest  payable during first 2 years and

7.5% interest payable thereafter.

Egged  shall have an option to  convert  the First

Loan into up to 9,433  ordinary  shares of Pointer

(calculated  at a price per share of $212)  and/or

up  to   15,503,875   ordinary   shares  of  Nexus

(calculated  at a  price  per  share  of  $0.129),

subject to certain conditions.

Egged shall have a 24-month  option to convert the

Second  Loan  into the  ordinary  shares  of Nexus

and/or Pointer,  at its  discretion.  Should Egged

wish to  convert  the Second  Loan into  shares of

Pointer,   60%  of  the   Second   Loan  shall  be

converted  at price per share of NIS 729,  and the

remaining  40% will be  converted  at a price  per

share  ranging from NIS 729 to NIS 937  (according

to  a   sliding   scale,   where   the  later  the

conversion,  the  higher  the  share  price).  The

Second  Loan may also be  converted  by Egged into

up  to   8,888,889   ordinary   shares   of  Nexus

(calculated at a price per our ordinary  shares of

$0.18).  Should  Egged fail to  exercise  at least

60%  of the  option  by  the  end of the  24-month

option  period,  Pointer shall have a "Put" option

to force Egged to  purchase  such number of shares

in Pointer that  represents 60% of the Second Loan

amount.

	Security: 

                    

                    

                    

                    

                    

                    

Investment by Nexus: 
	As  security  on the loans,  Pointer  shall  grant

Egged a third  ranking  floating  charge  over the

assets  of  Pointer  and  a  third  ranking  fixed

charge  over  Pointer's  rights to  proceeds  from

transactions  with Clal Insurance Company Ltd. and

The  Israel   Phoenix   Insurance   Company  Ltd.,

subject to certain conditions.

At the  consummation of the Shagrir Deal (February

28,  2005),  Nexus shall  invest NIS  4,550,000 in

Pointer.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]