Document:

F-4/A

Exhibit 10.16  

SERIES A1 PREFERRED
SHARE PURCHASE AGREEMENT 

This Series A1 Preferred Share
Purchase Agreement (this “Agreement”) is entered into as of the 20th day
of July, 2007 by and between Negevtech Ltd., a private company organized
under the laws of the State of Israel, with registered office at 12 Hamada Street,
Rehovot, 76703 Israel, and corporate registration number 51-163426-3 (hereinafter the
“Company”), and the Investors listed in Schedule A
attached hereto (hereinafter each an “Investor” and collectively the
“Investors”). 

WITNESSETH 

        
WHEREAS the Investors desire to purchase Series A1 Preferred Shares in the Company and
the Company desires to sell and issue Series A1 Preferred Shares in the Company, with such
rights, preferences and privileges as set forth in the Amended Articles (as such term is
defined below) (“Series A1 Preferred Shares”) pursuant to the terms and
conditions set forth in this Agreement; and 

        
WHEREAS, immediately prior to the Closing (as defined below), the Company shall effect
a Recapitalization (as defined and described in Section 1.1 below); and 

        WHEREAS,
as an inducement to the Company’ shareholders holding Series AA Preferred Shares
and/or Series BB-1, BB-2, BB-3 and BB-4 Preferred Shares of the Company (the
“Preferred Shareholders”) to exercise fully the rights offered to them to
purchase the Company’s Series A1 Preferred Shares under this Agreement, at the
Closing the Company shall convert the Recap Ordinary Shares (as defined below) held by
each Participating Investor (as defined below) into the Company’s Ordinary Preferred
A Shares and/or Ordinary Preferred B Shares, as the case may be, on a one-to-one basis,
all as provided hereinafter; and 

        WHEREAS,
the Company and the Investors desire to set forth the terms and conditions of the sale and
purchase of the Company’s Series A1 Preferred Shares; 

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

	1.  	Recapitalization;
Purchase and Sale of Shares  

	 	
At
or immediately prior to (as set forth below), and in any event contingent upon the
Closing (as defined below), the following transactions shall occur simultaneously (no
transaction shall be deemed to have been completed until all such transactions have been
completed, all subject to the terms and conditions of this Agreement:  

	1.1  	Recapitalization  

	 	
A
recapitalization shall take place as reflected in the Capitalization Table attached
hereinafter as Schedule 2.2(b) (respectively, the “Recapitalization” and
the “Capitalization Table”), such that:  

	 	
(i)
            all of the Company’s issued and outstanding and registered and unissued
          Series AA Preferred Shares and Series BB-1, BB-2, BB-3 and BB-4 Preferred
Shares           (the “Original Preferred AA  Shares”, “Original
          Preferred BB Shares”, respectively) shall automatically be converted
          into Ordinary Shares of the Company on a one-to-one basis (the           “Converted
Ordinary Shares”); and  

	 	
(ii)
            an additional number of Ordinary Shares shall be issued to the holders of
such           Original Preferred AA Shares and Original Preferred BB Shares so as to
bring the           total number of the Converted Ordinary Shares and the additional
Ordinary Shares           so issued to 99% of the fully diluted share capital of the
Company (the fully           diluted share capital shall exclude for such purpose any
warrants to purchase           Preferred AA Shares, as adjusted pursuant to the
Recapitalization), to be           allocated among the holders of Original Preferred AA
Shares and Original           Preferred BB Shares in proportion to the total cash amounts
previously paid to           the Company for the purchase of all such Original Preferred
AA Shares and           Original Preferred BB Shares, as set forth in the Reallocation
Table attached           hereto as Schedule 1.1(ii) (the “Reallocation
          Ordinary Shares”) ;and  

	 	
(iii)
            a 100:1 consolidation of the entire share capital of the Company shall be
          affected (with any resulting fractions rounded to the nearest whole number)
(the           “Consolidation”); and  

	 	
(iv)
            an additional number of Ordinary Shares shall be issued to each holder of
          Original Preferred BB Shares who is a Participating Investor, in consideration
          of the waiver by the holders of Original Preferred BB Shares of the existing
          full-ratchet anti-dilution protection attached to the Original Preferred BB
          Shares, such number resulting from applying 85% of the full-ratchet protection
          such holders of Original Preferred BB Shares would have been entitled to
receive           upon the Closing had the Ordinary Preferred B Shares been entitled to
such           anti-dilution rights and assuming a price per Ordinary Preferred B Share
that is           equal to US$20,000,000 divided by the aggregate number of Converted
Ordinary           Shares and Reallocation Ordinary Shares (the “Anti-Dilution
Ordinary           Shares”); and  

	 	
(v)
            All outstanding warrants issued by the Company to purchase Original Preferred
          AA Shares (to the extent not cancelled) and warrants to purchase Original
          Preferred BB Shares shall be adjusted into warrants to purchase the same number
          of Ordinary Shares of the Company, followed by an adjustment of the number of
          purchasable shares and exercise price as a result of the Consolidation;  

	 	
The
Converted Ordinary Shares, the Reallocation Ordinary Shares and the Anti-Dilution
Ordinary Shares shall together be referred as the “Recap Ordinary Shares”.  

	 	
For
avoidance of doubt, the holdings of each shareholder of the Company following the
Recapitalization shall be as reflected and set forth in the Capitalization Table.  

	1.2  	Sale
and Issuance of Series A1 Preferred Shares  

	 	
At
the Closing, subject to the terms and conditions of this Agreement, the Investors shall
purchase, severally and not jointly, and the Company shall sell and issue to the
Investors, severally and not jointly, an aggregate amount of 11,333,583 (Eleven Million
Three Hundred and Thirty Three Thousand Five Hundred and Eighty Three) Series A1 Preferred
Shares of the Company, par value NIS 1 each (the “Issued A1 Preferred
Shares” or the “Issued Shares”), at US$ 1.3235 per share (the
“Price Per Share”), representing a pre-money valuation of the Company of
US$20,000,000 on a fully diluted basis following the Recapitalization (excluding from the
fully diluted basis for such purpose all warrants to purchase Series AA Preferred Shares,
which shall be cancelled prior to the Closing, but including the ESOP Pool (as defined
below)), for an aggregate investment of US$15,000,000 (Fifteen Million US Dollars) (the
“A1 Purchase Price”) convertible into Ordinary Shares of the Company
(Ordinary Shares issuable upon the conversion of the Issued Shares or upon conversion of
Ordinary Preferred A Shares or the Ordinary Preferred B Shares shall be referred to as
“Conversion Shares”), to be purchased by, and issued to each of the
Investors as set forth in Schedule A, in consideration for the amount
indicated opposite such Investor’s name. 

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	1.3  	Conversion
of Recap Ordinary Shares  

	 	
At
the Closing, subject to the terms and conditions of this Agreement, the Company shall
convert all Recap Ordinary Shares held by each Participating Investor into Ordinary
Preferred A Shares of the Company (the “Ordinary Preferred A Shares”)
and/or Ordinary Preferred B Shares of the Company (the “Ordinary Preferred B
Shares”), as the case may be, on a one to one basis, such that following such
conversion, (i) each Participating Investor who was a holder of Original Preferred AA
Shares shall hold one Ordinary Preferred A Share for approximately every $11.1 (Eleven US
Dollars and Ten Cents) previously paid to the Company for the purchase of the Original
Preferred AA Shares previously held by such holder; (ii) and each Participating Investor
who was a holder of Original Preferred BB Shares, shall hold one Ordinary Preferred B
Share for approximately every $11.1 (Eleven US Dollars and Ten Cents) previously paid to
the Company for the purchase of the Original Preferred BB Shares previously held by such
holder, and (iii) all Anti-Dilution Ordinary Shares shall be converted into Ordinary
Preferred B Shares on a one-to-one basis, all as set in the Conversion Table attached
hereto as Schedule 1.3(a). 

	 	
A
“Participating Investor” shall mean a Preferred Shareholder of the
Company that held Original Preferred AA Shares and/or Original Preferred BB Shares
immediately prior to the Recapitalization and who participates in the purchase of the
Preferred A1 Shares hereunder in at least its Pro-Rata Portion (as such term is defined
below). 

	 	
A
“Pro Rata Portion” shall mean an amount resulting from the multiplication
of the total amount of Series A1 Preferred Shares offered hereinunder, by a fraction:
(i) the numerator of which shall be the total number of Recap Ordinary Shares held by
a Preferred Shareholder immediately prior to the Closing and following the
Recapitalization, and (ii) the denominator of which is the total number of Recap
Ordinary Shares outstanding immediately prior to the Closing and following the
Recapitalization held by all Preferred Shareholders, assuming, for the purpose of such
calculation, that all Preferred Shareholders of the Company participate in the investment
hereunder, all as set forth in the Pro-Rata Portion Table attached hereto as
Schedule 1.3(b); provided that all Preferred A1 Shares purchased by
persons and/or entities that are Permitted Transferees of each other (as defined in the
existing Articles of Association of the Company) shall be aggregated together for the
purpose of determining whether an Preferred Shareholder purchases its full Pro-Rata
Portion; and provided further that, an Preferred Shareholder that purchases at least 80%
of its Pro-Rata Portion shall be deemed to have purchased its full Pro-Rata Portion, if
other Preferred Shareholders of the Company purchase in excess of their Pro-Rata Portions,
such that the total number of Series A1 Preferred Shares indicated in Section 1.2 above
shall be purchased under this Agreement. 

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	1.4 	The
rights, preferences and privileges of the Series A1 Preferred Shares, the Ordinary
Preferred A shares and the Ordinary Preferred B Shares are as set forth in the Amended
Articles of Association of the Company attached hereto as Exhibit A (hereinafter
referred to as the “Amended Articles”) and in the Shareholders
Rights Agreement as amended and restated upon the Closing, in the form attached hereto as
Exhibit B (hereinafter referred to as the “Shareholders Rights Agreement”).

	1.5  	Closing.  

	 	
The
closing of the purchase and sale of the Issued Shares to the Investors (the
“Closing”) shall take place on July 20, 2007 or at such other time and
place as may be agreed upon orally or in writing by the Company and the Investors
investing at least 60% of the A1 Purchase Price invested by all Investors (together, the
“Majority Investors”). At the Closing, the following actions shall occur
simultaneously (no action shall be deemed to have been completed or any document delivered
until all such actions have been completed and all required documents delivered): 

	 	(a) 	the
Company shall deliver to the Investors (unless waived by the Majority
               Investors): 

	 	(i) 	copies
of resolutions of the Company’s shareholders, in the form attached
               hereto as Schedule 1.5(a)(i), by
               which, inter alia: (i) the Articles of Association of the Company were
replaced                by the Amended Articles; (ii) the authorized share capital of the
Company was                increased, the ESOP pool has been increased in accordance with
Section 1.7 below                and the Issued Shares, the Ordinary Preferred A Shares
and the Ordinary                Preferred B Shares have been created; (iii) all actions
and resolutions required                in connection with the Recapitalization and the
conversion of the Recap Ordinary                Shares into Ordinary Preferred A Shares
and Ordinary Preferred B Shares under                Sections 1.1 and 1.3 above, have
been authorized and approved; and (iv) this                Agreement and all ancillary
documents thereto were approved;  

	 	(ii) 	validly
executed share certificates covering the Issued Shares, the Ordinary
               Preferred A Shares and the Ordinary Preferred B Shares, issued in the name
of                each Investor, in the form attached hereto as Schedule
1.5(a)(ii)(a), provided that the share certificates of the Ordinary Preferred A
Shares and                the Ordinary Preferred B Shares shall be delivered only against
delivering to                the Company by each Participating Investor of the share
certificates covering                the Original Preferred AA Shares and/or the Original
Preferred BB Shares                originally held by it (or a written statement signed
by such Participating                Investor that such certificate(s) have been lost,
stolen or destroyed, in the                form attached hereto as Schedule 1.5(a)(ii)(b); 

	 	(iii) 	a
copy of a resolution of the Company’s Board of Directors (the                “Board”),
inter alia: (i) approving the execution, delivery and                performance of this
Agreement and the ancillary documents thereto, (iii) issuing                and allotting
the Issued Shares, the Ordinary Preferred A Shares and the                Ordinary
Preferred B Shares, and (iii) approving all relevant acts and adopting                all
relevant resolutions in connection with the Recapitalization, all in the
               form attached hereto as Schedule 1.5(a)(iii);  

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	 	(iv) 	a
copy of the Company’s share register registering the Issued Shares, the
               Ordinary Preferred A Shares and the Ordinary Preferred B Shares in the
               Investors’ names and reflecting the shareholding in the Company
following                all actions and resolutions in connection with the
Recapitalization and the                conversion of shares under Sections 1.1 and 1.3
above;  

	 	(v) 	a
copy of the notices to be provided by the Company to the Israeli Registrar of
               Companies immediately after the Closing as required under the law
(including                with respect to the issuance of the Issued Shares and to the
Recapitalization);  

	 	(vi) 	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 (“OCS”); (ii) the Investment Center; and
(iii) any                other third party the consent of which is required;  

	 	(vii) 	To
the extent requested, Indemnity and Release Agreements to the members of the
               Company’s Board of Directors in the forms attached hereto as Schedule
               1.5(a)(vii), duly executed by the Company.  

	 	
(b)
               The Company shall notify the Israeli Registrar of Companies of the
issuance of                the Issued Shares and the other transactions hereunder
promptly after the                Closing and shall deliver a copy of such filed stamped
notices to the                Investors’ counsel.  

	 	
(c)
                      The non-Israeli Investors shall deliver to the Company a duly
executed                     undertaking to the OCS in the form substantially attached
hereto as Schedule 1.5(c), to the extent required by the OCS and if
                    they have not already delivered such undertaking in the past.  

	1.6  	Payment
&Conversion of Bridge Loans  

		(a)         
$10
Million out of the total A1 Purchase Price shall be due and payable at the
                    Closing, such that each Investor shall pay at the Closing the
applicable amount                     specified opposite such Investor’s name in
column I of Schedule A.                     The remaining proceeds out of the A1
Purchase Price (the “Remainder                     Amount”) shall be due
and payable by each Investor, in the applicable                     amount specified
opposite such investor’s name in column II of Schedule A,                     within
14 (Fourteen) days following receipt of a written notice from the Company
                    of a call made by the Board.  

	 	(b)        
Payments
shall be made by the Investors to the Company in U.S. dollars by way
                    of a bank transfer to the Company’s account (Bank Leumi Le’Israel
BM,                     Rehovot Business Branch (978), account No. 222200/29), by
cancellation of such                     Investor’s respective portion of the Loan
Amount (as defined in subsection                     (c) below) or by such other form of
payment as is mutually agreed by the Company                     and each Investor.  

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	 	(c)        
The
parties acknowledge that the Investors identified on Schedule
                    1.6(c) hereto (collectively, the
                    “Lenders”, and individually, a
                    “Lender”) have extended to the Company
bridge                     loans in the original aggregate principal amount of $5,000,000
(the                     “Loan Amount”) pursuant to the
terms and                     conditions of that certain Convertible Loan Agreement dated
as of May 7, 2007                     and that certain Convertible Loan Agreement dated
as of June 1, 2007                     (collectively, the “Loan Agreements”)
between the Company, on one hand, and the                     Lenders (or part of them),
on the other hand. At the Closing, the respective                     unpaid portion of
the Loan Amount plus all interest accrued until July 1, 2007,                     owed to
each Lender (without taking into account any accrued interest following
                    July 1, 2007, or discounts, which are waived by the Lenders as of the
Closing),                     as set forth on Schedule A, shall
become immediately due                     and payable and shall be applied against the
applicable amount of the A1                     Purchase Price to be transferred to the
Company by such Lender in consideration                     for the Series A1 Preferred
Shares purchased by it at the Closing.                     Notwithstanding anything to
the contrary in the Loan Agreements, each Lender                     hereby waives its
rights for any accrued but not paid interest accrued after                     July 1,
2007, discount, any conversion rights and/or any other rights granted to
                    it under the terms of the Loans Agreements. Each Lender hereby
acknowledges that                     upon the issuance of the Issued Shares to such
Lender as contemplated hereunder,                     the Loan Amount owing to such
Lender (including any interest accrued after July                     1, 2007, or any
discount) shall be deemed fully paid and extinguished, and the
                    Company shall have no further obligations to such Lender under the
Loan                     Agreements or any document or instrument in connection
therewith.  

	1.7  	ESOP  

	 	
Immediately
prior to the Closing, the number of Ordinary Shares reserved for allocation under the
Company’s Employees Share Option Plan (“ESOP”) shall be increased so
as to equal 10% of the Company’s share capital on an as converted and fully diluted
basis immediately after the Closing, excluding from the fully diluted basis for such
purpose all existing warrants to purchase Series AA Preferred Shares, to the extent not
cancelled prior to the Closing (the “ESOP Pool”). 

	2.  	Representations
and Warranties of the Company  

The Company hereby represents and
warrants to the Investors that, except as set forth in this Agreement, the Exhibits and
Schedules hereto and the Schedule of Exceptions attached hereto, which exceptions
shall be deemed to be representations and warranties as if made hereunder, the following
representations are true and correct on the date of this Agreement and shall be true and
correct on the date of Closing as if made on such date: 

	2.1  	Organization,
Good Standing and Qualification. 

The Company is a private company duly
organized and validly existing under the laws of the State of Israel and incorporated on
December 22, 1991. The Company has all requisite corporate power and authority to carry on
its business as now conducted and as proposed to be conducted in: (i) the Operation
Plan approved by the Board on May 17, 2007; (ii) the Marketing Penetration Plan (as
defined below); and (iii) the 2007 Budget approved by the Board on May 17, 2007 (the
“2007 Budget”)(subsections (i), (ii) and (iii) are collectively referred
to herein as the “Updated Work Plan”), copies of which have been
delivered to the lead counsel for the Investors. The Company is duly qualified to transact
business in each jurisdiction in which the failure so to qualify is reasonably likely to
have a material adverse effect on its assets, financial condition, operating results,
prospects or business of the Company as presently conducted and as proposed to be
conducted in the Updated Work Plan (“Material Adverse Effect”). The
Memorandum of Association and Articles of Association of the Company, all as currently in
effect, are attached hereto as Schedule 2.1. 

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	2.2  	Capitalization
and Voting Rights.  

On the date hereof, the authorized
share capital of the Company consists of NIS 964,500 divided into: 

     (i)
          53,000,060 Ordinary Shares, par value NIS 0.01 each, of which 624,949 Ordinary
          Shares are issued and outstanding and 5,636,003 of which are reserved for
          issuance to employees, consultants, officers, or directors of the Company and/or
          subsidiary thereof pursuant to the Share Option Plans (such number not including
          393,500 Ordinary Shares issued upon exercise of options granted to employees of
          the Company), of which 5,487,976 have been allocated and the remaining are
          available for future issuance, (ii) 15,000,000 Preferred AA Shares, par value
          NIS 0.01 each, of which 13,144,070 are issued and outstanding, (iii) 12,137,708
          Preferred BB-1 Shares, par value NIS 0.01 each, of which 8,152,256 are issued
          and outstanding and (iv) 4,000,000 Preferred BB-2 Shares, par value NIS 0.01
          each, of which 3,597,106 are issued and outstanding, (v) 5,862,292 Preferred
          BB-3 Shares, par value NIS 0.01 each, of which 5,859,274 are issued and
          outstanding, and (vi) 6,449,940 Preferred BB-4 Shares, par value NIS 0.01 each,
          of which 4,338,096 are issued and outstanding. 

Following the Recapitalization and
the Closing, the authorized share capital of the Company will be NIS 56,000,000 divided
into (i) 30,000,000 Ordinary Shares, par value NIS 1 each, of which 1,067,013 Ordinary
Shares are issued and outstanding and of which 2,640,571 are reserved for issuance to
employees, consultants, officers, or directors of the Company and/or subsidiaries thereof
pursuant to the Share Option Plans (such number not including 3,935 Ordinary Shares
already issued upon past exercise of options granted to employees of the Company), of
which 54,880 have been allocated and the remaining are available for future issuance, (ii)
3,500,000 Ordinary Preferred A Shares, par value NIS 1 each, of which 2,386,991 are issued
and outstanding, (iii) 10,000,000 Ordinary Preferred B Shares, par value NIS 1 each, of
which 9,000,062 are issued and outstanding, and (iv) 12,500,000 Series A1 Preferred
Shares, par value NIS 1 each, of which 11,333,583 are issued and outstanding. 

The Ordinary Shares and Preferred
Shares outstanding prior to the Closing and the Recapitalization, are all duly and validly
authorized and issued, fully paid and nonassessable, were issued free of any lien, pledge,
claim, charge, restriction, encumbrance or third party rights of any kind
(“Security Interest”), and were issued in compliance with all applicable
laws, including the relevant securities laws of the State of Israel. 

A complete and correct list of the
security holders of the Company (including, all warrants and options of the Company’s
capital stock) immediately prior to the Closing and the Recapitalization is set forth in
Schedule 2.2(a) attached hereto. The individuals and entities
identified in Schedule 2.2(a) as the shareholders of the Company
immediately prior to the Closing are the registered owners, and to the Company’s best
knowledge, the lawful owners, beneficially and of record, of all of the issued and
outstanding share capital of the Company, free and clear of any Security Interest,
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. 

Immediately following the
Recapitalization and the Closing, the complete and correct list of the shareholdings
(including all warrants and options) of the Company’s share capital will be as set
forth in the Capitalization Table attached hereto as Schedule 2.2(b). 

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Except for (i) the options, warrants
and rights detailed in Schedule 2.2(b), (ii) the Issued Shares
to be issued under this Agreement and the conversion privileges of such Issued Shares,
(iii) the Recapitalization, (iv) the rights provided in Sections 2, 3 & 4 of
the Shareholders Rights Agreement, and (v) rights pursuant to the Company’s Articles
of Association, there are no outstanding or authorized subscriptions, options, warrants,
calls, rights (including conversion or preemptive rights), commitments, anti-dilution
rights, exchange rights, or other rights or securities, of any nature whatsoever, or any
other agreements, undertakings, promises or commitments of any character for the purchase
of or acquisition from the Company of any shares of its share capital or any security
convertible into, or exchangeable for, or evidencing the right to subscribe for, any
shares. 

The Company is not a party or subject
to any agreement or understanding, and, to the best of the Company’s knowledge, there
is no agreement or understanding between any persons and/or entities, which affects or
relates to the voting or giving of written consents with respect to any security or by a
director of the Company. 

	2.3  	Officers
and Directors.  

	 	(a) 	The
Company and the Subsidiary’s current officers and directors are the
               individuals appearing in Schedule 2.3 hereto. Except
as set                forth in the Company’s Articles of Association and the
Shareholders Rights                Agreement, the Company has no agreement, obligation or
commitment with respect                to the election of any individual or individuals
to the Company’s Board of                Directors. To the Company’s best
knowledge, there is no voting agreement or                other arrangement among the
Company’s shareholders, and there is no                agreement or understanding
between any persons and/or entities, which affects or                relates to the
voting or giving written consents with respect to any security or                by a
director and/or officer of the Company. 

	 	(b) 	There
are no agreements, commitments and understandings, whether written or
               oral, with respect to any compensation to be provided by the Company or
the                Subsidiary to any of their directors or officers except as set forth
in the Schedule of Exceptions. 

	2.4  	Subsidiaries.  

The Company owns, beneficially and of
record, all of the issued and outstanding share capital of its subsidiaries in Delaware
USA, Singapore, Japan and Germany (jointly, the “Subsidiary”) and all the
rights thereto, free and clear of liens, claims, charges, encumbrances, restrictions,
rights, options to purchase, proxies, voting trust or other voting agreements. Except for
the Subsidiary, 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, joint venture or other
business association. There are no other share capital, preemptive rights, convertible
securities, outstanding warrants, options or other rights to subscribe for, purchase or
acquire from any Subsidiary or from the Company, any share capital of such Subsidiary and
there are no contracts or binding commitments providing for the issuance of, or the
granting of rights to acquire, any share capital of any Subsidiary. All issued and
outstanding share capital of the Subsidiary was duly authorized, and is validly issued and
outstanding and fully paid and nonassessable. The Subsidiary is duly organized, validly
existing and in good standing under the laws under which it is incorporated 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. Neither the
nature of any Subsidiary’s business as now conducted or as presently proposed to be
conducted nor its ownership or leasing of property require that such Subsidiary be
qualified to do business or be in good standing in any jurisdiction other than the
jurisdiction in which such Subsidiary is organized. 

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	2.5  	Authorization
and Approvals.  

	 	(a) 	The
Company has all requisite corporate power and authority to execute and
               deliver this Agreement and any other agreements contemplated hereby or
which are                ancillary hereto and to consummate the transactions contemplated
hereby and                thereby. All corporate action on the part of the Company and
its officers,                directors and shareholders necessary for the authorization,
execution and                delivery of this Agreement and any other agreements
contemplated hereby or which                are ancillary hereto, the performance of all
obligations of the Company                hereunder and the authorization, issuance and
delivery of the Issued Shares, has                been taken or will be taken prior to
the Closing, and this Agreement, any other                agreements contemplated hereby
or which are ancillary hereto and any obligations                contemplated herein
constitute valid and legally binding obligations of the                Company,
enforceable in accordance with its terms subject only to laws affecting
               the rights and remedies of creditors. 

	 	(b) 	Except
for OCS approval, the Investment Center approval, and the notices to be
               provided to the Israeli Registrar of Companies with respect to the
adoption of                the Amended Articles, the increase and change in the
composition and structure                of its share capital for effecting the
Recapitalization including the issuance                of the Recap Ordinary Shares, the
conversion of the Recap Ordinary Shares held                by Participating Investors
into Ordinary Preferred A Shares and Ordinary                Preferred B Shares and the
allocation of the Issued Shares in accordance with                this Agreement, no
approvals, permits or consents of, or filing with any state                or local
governmental body, official authority, or any other third party is
               required under any applicable law or instrument in connection with the
execution                and delivery of this Agreement or the consummation of the
transactions                contemplated hereby. 

	2.6  	Valid
Issuance of Issued Shares.  

The Issued Shares, the Ordinary
Preferred A Shares and the Ordinary Preferred B Shares, to be issued to each Investor
pursuant to this Agreement shall, when issued as provided for herein, be duly authorized,
validly issued, and issued in compliance with all applicable laws, including Israeli
securities laws and free of any pre-emptive rights or similar rights
(“Participation Rights”) and any restrictions on transfer, will have the
rights, preferences, privileges, and restrictions set forth in the Shareholders Rights
Agreement and the Amended Articles (as shall be in force from time to time), and will be
free and clear of any taxes, liens, claims, encumbrances or third party rights of any kind
(except as specified in this Agreement, the Amended Articles, the Shareholders Rights
Agreement and applicable law) and duly registered in the Investor’s name in the
Company’s share register and, once the applicable A1 Purchase Price therefor is fully
paid for by such Investor as provided for herein, shall be fully paid and non-assessable
(provided that until such time as the Remainder Amount is due, all Issued Shares shall be
deemed fully paid and as of the time the Remainder Amount becomes due only a portion of
the Issued Shares held by an Investor that equal to the Remainder Amount due from such
Investor divided by the Price Per Share shall be deemed not fully paid). The Conversion
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 this Agreement and
the Company’s Articles of Association, will be duly and validly issued, will have the
rights, preferences, privileges and restrictions set forth in the Company’s Articles
of Association (as shall be in force from time to time) and will be free and clear of any
liens, encumbrances, claims, or third party rights of any kind (except as specified in
this Agreement, the Amended Articles, the Shareholders Rights Agreement, and applicable
law) and duly registered in the Investor’s name in the Company’s share register
and, once fully paid for by such Investor as provided for herein, shall be fully paid and
non assessable. 

- 9 -

	2.7  	Litigation.  

There is no claim, action, suit,
proceeding or, to the best knowledge, information or belief of the Company, investigation
pending or currently threatened against the Company, the Subsidiary and there is no claim,
action, suit, proceeding or, to the best knowledge, information or belief of the Company,
investigation which questions the validity of this Agreement, the Shareholders Rights
Agreement, or the right of any of them to enter into it, or to consummate the transactions
contemplated hereby, or which is reasonably likely to result, either individually or in
the aggregate, in any Material Adverse Effect or any change in the current equity
ownership of the Company, nor, to the best knowledge, information or belief of the
Company, is there any basis for such claim, action, suit, proceeding or investigation. The
foregoing includes, without limitation: (i) actions pending or threatened involving the
prior employment of any of the Company’s or the Subsidiary’s employees; (ii) use
by employees of the Company or the Subsidiary, in connection with the business of the
Company, of any information or techniques allegedly proprietary to any of their former
employers or their obligations under any agreements with any such prior employers. Neither
the Company nor the Subsidiary is a party to, or subject to the provisions of any order,
writ, injunction, judgment or decree of any court or government agency or instrumentality
nor are any of them aware of any pending or threatened action, suit, proceeding or
investigation (or of any basis for same) against any of them by any government agency or
instrumentality. There is no action, suit, proceeding or investigation by the Company
and/or the Subsidiary currently pending or that the Company and/or the Subsidiary intends
to initiate. 

	2.8  	Proprietary
Information; Patents and Trademarks. 

	 	(a) 	The
Company and the Subsidiary own or have the unrestricted right to use
               pursuant to written license, sublicense, agreement, or permission, free
and                clear of any Security Interest, third party rights and royalties, all
patents,                trademarks, service marks, trade names, mask works, and
copyrights and all trade                secrets, including know-how, invention, designs,
processes, computer programs,                algorithms, firmware and technical data,
concepts, techniques, methods, systems,                drawings, photographs, models,
prototypes, research materials, formulas,                development or experimental
work, work in progress, mask work, cost data,                marketing plans, product
plans, business strategies, financial information,                forecasts, personnel
information and customer or supplier lists currently used                and/or necessary
for the operation of the businesses of the Company as presently                conducted
and as presently proposed to be conducted in the Updated Work Plan
               (collectively: “Intellectual Property”). 

- 10 -

	 	(b) 	Schedule
2.8 identifies each: (a) patent, trade mark,                domain name or
registration which has been issued to the Company or the                Subsidiary with
respect to any of the Intellectual Property; (b) pending patent                or trade
mark application or application for registration which the Company or                the
Subsidiary has made with respect to any of the Intellectual Property; (c)
               each trade name or unregistered trademark used by the Company or the
Subsidiary;                and (d) license, agreement, or other permission which the
Company or the                Subsidiary has received from or granted to any third party
with respect to any                of the Intellectual Property (together with any
exceptions). With respect to                each item of Intellectual Property required
to be identified as set forth in                this Section 2.8: (i) the Company or the
Subsidiary possess all right, title,                and interest in and to the item, free
and clear of any Security Interest,                license, royalty, commission or
similar arrangements or other restriction and                free and clear of any right
of any academic or research institution, government,                previous employer of
any of the Founders (as defined below) or any other third                party; (ii) the
item is not subject to any outstanding injunction, judgment,                order,
decree, ruling, or charge; (iii) no action, suit, proceeding, hearing,
               investigation, charge, complaint, claim, or demand is pending or is
threatened                which challenges in a material manner the legality, validity,
enforceability,                use, or ownership of the item; (iv) neither the Company
nor the Subsidiary has                ever agreed to indemnify any person for or against
any interference,                infringement, misappropriation, or other conflict with
respect to the item; and                (v) neither the Company nor the Subsidiary has
granted, and there are not                outstanding, any options, licenses or
agreements of any kind relating to the                Intellectual Property, nor is the
Company or the Subsidiary bound by or a party                to any option, license or
agreement of any kind with respect to any of the                Intellectual Property. 

	 	(c) 	Each
item of Intellectual Property owned or used by the Company or the
               Subsidiary immediately prior to the Closing hereunder will be owned or
available                for use by them on substantially the same terms and conditions
immediately                subsequent to the Closing hereunder. Except for readily and
commercially                available off-the-shelf software, no other Intellectual
Property of any kind                required by the Company or the Subsidiary to conduct
their business, as                currently conducted and as presently proposed to be
conducted, is owned by a                third party or would require the payment of any
fee or royalty. The Company and                the Subsidiary have complied in all
material respects with the requirements of,                and has filed all material
documentation required in dealing with, any patent or                trademark registry
agency in which their patent and/or trademarks applications                were filed. 

	 	(d) 	To
the best knowledge of the Company, (i) neither the Company nor the Subsidiary
               has interfered with, infringed upon, misappropriated, or otherwise come
into                conflict with any intellectual property rights of any third party nor
will the                conducting by them of their business, or use of the Intellectual
Property, as                presently conducted and as presently proposed to be conducted
interfere,                infringe upon, misappropriate or otherwise come into conflict
with any                intellectual property rights of any third party; (ii) neither the
Company nor                the Subsidiary has received any charge, complaint, claim,
demand, or notice                alleging any such interference, infringement,
misappropriation, or violation                (including any claim that the Company or
the Subsidiary must license or refrain                from using any intellectual
property rights of any third party) and to the                Company’s knowledge
there is no basis for such; and (iii) to the best                knowledge of the
Company, no third party has interfered with, infringed upon,
               misappropriated, or otherwise come into conflict with any Intellectual
Property                of the Company or the Subsidiary. 

- 11 -

	 	(e) 	Neither
the Company nor the Subsidiary is obligated nor is the Company aware                that
any of the Company’s or the Subsidiary’s employees 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 its, his or
her best                efforts to promote the interests of the Company or that would
conflict with the                Company’s or the Subsidiary’s business as now
conducted and as                presently proposed to be conducted in the Updated Work
Plan. Neither the                execution nor the delivery of this Agreement, the
Shareholders Rights Agreement,                the carrying on of the Company’s and
the Subsidiary’s business by any                of their respective employees, nor
the conduct of the Company’s and the                Subsidiary’s business as
proposed to be conducted, will: either (i) to the                best of the Company’s
knowledge, information or belief, 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 any such                employee is now
obligated, or (ii) 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 Company or the Subsidiary is now
               obligated. To the best of the Company’s knowledge information or
belief,                for the conduct of its and the Subsidiary’s business as now
conducted and                as presently proposed to be conducted in the Updated Work
Plan, it will not be                necessary to utilize any inventions of people the
Company currently intends to                hire, owned by their prior employer. 

	 	
All
Intellectual Property related to the Company, the Subsidiary and their business,
developed by the founders of the Company listed in Schedule 2.8(e) (the “Founders”)
prior to the incorporation of the Company (“Founders IP”) was duly
assigned to the Company by the Founders at the time of, or following, the incorporation
of the Company, free and clear of any Security Interest, and to the Company’s best
knowledge, all declarations and documents required by the various authorities around the
world in order to register such assignments have been duly submitted; and neither the
Founders nor, to the Company’s best knowledge, any other party has any interest in
or rights to any of the Founders IP. During the period in which the Founders were
developing the Founders IP, the Founders to the Company’s best knowledge were not
employed by any third party or involved in any consulting relationship with any third
party. The Founders, to the Company’s best knowledge, are the sole inventors and
developers of the Founders IP (including the inventions, methods and devices described
and claimed in the patents which are part of such IP) without any contribution,
assistance or participation of any third party. 

	 	(f) 	Each
employee, officer and consultant of the Company or Subsidiary has executed
               a Proprietary Information and Inventions Agreement and/or an Employment
               Agreement and/or any similar agreement, containing confidentiality, non
compete                and assignment of invention provisions in the form provided to
lead counsel for                the Investors, and to the Company’s best knowledge
none of the                Company’s or the Subsidiary’s employees, Founders,
officers or                consultants are in violation thereof, and the Company will use
its best efforts                to prevent any such violation. 

	 	(g) 	The
Company and the Subsidiary have taken measures to protect the secrecy,
               confidentiality and value of all their intellectual property, which
measures are                reasonable and customary in the industry in which they
operate. 

- 12 -

	 	(h) 	There
are no outstanding options, licenses, or agreements of any kind relating
               to the foregoing, and neither the Company nor the Subsidiary is bound by
or is a                party to any options, licenses or agreements of any kind with
respect to the                patents, trademarks, service marks, trade names,
copyrights, trade secrets,                licenses, information, proprietary rights and
processes of any other person or                entity other than licenses arising from
the purchase or use of                “off-the-shelf” or other standard
products. 

	2.9.  	Compliance
with Law and Other Instruments.

Neither the Company nor the
Subsidiary is in violation or default of any provisions of their Memorandum or Articles of
Association or applicable charter documents, or of any instrument, judgment, order, writ,
decree or contract to which it is a party or by which it is bound or, of any provision of
law applicable to it, which violation or default is reasonably likely to have a Material
Adverse Effect. The execution, delivery and performance by the Company of this Agreement,
the Shareholders Rights Agreement and the consummation of the transactions contemplated
hereby and thereby will not result in any such violation or be in conflict with or
constitute, with or without the passage of time and/or giving of notice, either a default
under any such material provision, instrument, judgment, order, writ, decree or contract
or an event which is reasonably likely to result in the creation of any material lien,
charge or encumbrance upon any assets of the Company or the Subsidiary, suspension,
revocation, impairment, forfeiture or non-renewal of any material permit, license,
authorization, or approval applicable to the Company or the Subsidiary, their business or
operations or any of their assets or properties. 

	2.10  	Agreements;
Action.  

	 	(a) 	Except
for the agreements explicitly contemplated hereby and by the Shareholders
               Rights Agreement there are no agreements, understandings or proposed
               transactions between the Company or the Subsidiary and any of their
officers,                directors or shareholders or their affiliates. 

	 	(b) 	There
are no Material Agreements, judgments, orders, writs or decrees to which
               the Company or the Subsidiary is a party or by which either is bound. 

	 	(c) 	For
purposes of Section 2.10(a) and (b), “Material Agreements”               shall
mean (i) any agreement or proposed transaction with respect to any
               transaction to which the Company or the Subsidiary is a party and in which
the                amount involved exceeds US$250,000, (ii) any agreement or
proposed                transaction which relates to the Company’s or the Subsidiary’s
               intellectual property and any agreement or proposed transaction which
relates to                intellectual property rights of any third party, (iii)
distribution agreements,                (iv) non-disclosure agreements (other than with
employees and distributors of                the Company or he Subsidiary), (v) any
agreement or proposed transaction between                the Company or the Subsidiary
and shareholder of the Company or other Interested                Party (as such a term
is defined under the Israeli Securities Act 1968) of the                Company, (vi) any
written agreement between the shareholders of the Company of                which the
Company has actual knowledge, (vii) any agreement or proposed                transaction
restricting or affecting the development, manufacture or                distribution of
the Company’s products or services, and (viii) any                agreement or
proposed transaction which materially restricts or limits the                Company’s
or the Subsidiary’s right to do business or compete in any                area or
any field with any person, firm or company. All Material Agreements are                in
full force and effect and the Company has no knowledge of the invalidity of
               or grounds for rescission on any of these agreements, or of any intention
to                terminate any such agreements. Neither the Company nor the Subsidiary
is a                guarantor or indemnitor of any indebtedness of any other person, firm
or                corporation nor is any person, firm or corporation a guarantor of any
               indebtedness of the Company or the Subsidiary. 

- 13 -

	 	
For
the purpose of this subsection 2.10(c) all indebtedness, liabilities, agreements,
understandings, instruments, contracts and proposed transactions involving the same
person or entity (including persons or entities the Company or the Subsidiary has reason
to believe are affiliated therewith) shall be aggregated for the purpose of meeting the
individual minimum dollar amounts of this subsection. 

	 	(d) 	Other
than as set forth in the Financial Statements, since their incorporation,
               neither the Company nor the Subsidiary has (i) declared or paid any
dividends,                or authorized or made any distribution upon or with respect to
any class or                series of its capital stock, (ii) incurred any indebtedness
for money borrowed                or any other liabilities, (iii) made any loans or
advances to any person, or                given a guarantee or created any charge, lien
or other encumbrance on any of its                assets and/or its unissued and unpaid
share capital for any obligation of any                person, or (iv) sold, exchanged or
otherwise disposed of any of its assets or                rights, and in respect of (ii),
(iii) and (iv) other than in the ordinary course                of business. 

	 	(e) 	Neither
the Company nor the Subsidiary are parties to nor are they bound by any
               contract, agreement or instrument, or subject to any restriction under its
               Memorandum or Articles of Association, which is reasonably likely to have
a                Material Adverse Effect. 

	2.11  	Related-Party
Transactions.  

No employee, officer, or director of
the Company or the Subsidiary or member of his or her immediate family is indebted to the
Company or the Subsidiary, and neither the Company nor the Subsidiary are indebted (or
committed to make loans or extend or guarantee credit) to any of them. To the best of the
Company’s knowledge, none of such persons has any direct or indirect ownership
interest in any firm or corporation with which either the Company or the Subsidiary are
affiliated or with which the Company or the Subsidiary have a business relationship, or
any firm or corporation that competes with the Company. To the best of the Company’s
knowledge, no member of the immediate family of any officer or director of the Company or
the Subsidiary is directly or indirectly interested in any material contract with the
Company. 

	2.12  	Permits.  

The Company and the Subsidiary have
all franchises, permits, licenses, and any similar authority necessary for the conduct of
their business as now being conducted by it, the lack of which is reasonably likely to
have a Material Adverse Effect, and the Company believes that the Company and the
Subsidiary can obtain, without undue burden or expense, any similar authority for the
conduct of their respective business as proposed to be conducted in the Updated Work Plan.
The Company and the Subsidiary are not in default in any material respect under any of
such franchises, permits, licenses, or other similar authority. 

- 14 -

	2.13  	Environmental
and Safety Laws.  

To the best knowledge, information or
belief of the Company, neither the Company nor the Subsidiary is in violation of any
applicable statute, law or regulation relating to the environment or occupational health
and safety, and to the best knowledge information and belief of the Company, no material
expenditures are or will be required in order to comply with any such existing statute,
law or regulation. 

	2.14  	Manufacturing
and Marketing Rights.  

Neither the Company nor the Subsidiary
has granted rights to manufacture, produce, assemble, license, market, or sell its
respective products to any other person and is not bound by any agreement that affects the
Company’s exclusive right to develop, manufacture, assemble, distribute, market or
sell its respective products. 

	2.15  	Disclosure.  

The Company has fully provided the
Investors with all the information that the Investors have requested for deciding whether
to purchase the Issued Shares and to make the transactions contemplated in this Agreement
and in the Shareholders Rights Agreement, and all information which the Company believes
is necessary to enable the Investors to make such decisions. Neither this Agreement, the
Shareholders Rights Agreement, nor any other statements or certificates made or delivered
in connection herewith or therewith 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. 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 Investors in writing by the Company. 

	2.16  	Updated
Work Plan.  

The Updated Work Plan as defined
above, has been prepared in good faith by the Company and to the best knowledge,
information or belief of the Company do not contain any untrue statement of a material
fact, nor are there any other material facts or matters of which the Company is aware
which are reasonably likely to make the statements made therein misleading, except that
with respect to projections and assumptions contained in the Updated Work Plan, the
Company represents only that such projections and assumptions were prepared and/or made in
good faith. The parties agree that such estimates and projections are not purely factual
in nature, that the business of the Company is subject to certain risk factors and no
assurance can be or is given that the assumptions are correct or that any of the
forecasts, projections, expectations or transactions contemplated therein will be
attained. 

	2.17  	Registration
Rights.  

Except as provided in the
Shareholders Rights Agreement, the Company has not granted or agreed to grant any
registration rights, including piggyback rights and F-3 registration rights, to any person
or entity. 

	2.18  	Title
to Property and Assets.  

Full and accurate details of the
Company’s and the Subsidiary’s material tangible properties and assets are
contained in Schedule 2.18 to this Agreement. The Company and the
Subsidiary own their respective property and assets free and clear of all mortgages,
liens, loans and encumbrances. With respect to the property and assets that the Company
and the Subsidiary lease, the Company and the Subsidiary are in compliance with their
respective leases, except for such non-compliance which is not reasonably likely to have a
Material Adverse Effect and the Company and the Subsidiary hold valid leasehold interests
free of any material liens, claims or encumbrances. No tangible assets owned by the
Company are shared by the Company with any other person. 

- 15 -

	2.19  	Financial
Statements  

Attached as Schedule
2.19 is the Company’s audited consolidated annual financial statements
for the year ended December 31, 2006 and reviewed but unaudited financial statements for
the period ending March 31, 2007 (the “Financial Statements”). The
Financial Statements have been prepared in accordance with US generally accepted
accounting principles applied on a consistent basis throughout the periods indicated and
with each other. The Financial Statements accurately present, in all material respects,
the financial condition and operating results of the Company and the Subsidiary as of the
dates, and for the periods, indicated therein. All proper and necessary books of account
and accounting records have been maintained by the Company, are in its possession and
contain accurate information in accordance with generally accepted principles consistently
applied relating to all transactions to which the Company has been a party. 

	2.20  	Financial
Issues.  

	 	(a) 	The
Company and the Subsidiary maintain and will continue to maintain a standard
               system of accounting established and administered in accordance with US
GAAP                with reconciliation to Israeli GAAP. 

	 	(b) 	Except
as stated in the Financial Statements, neither the Company nor the
               Subsidiary has any liabilities, debts or obligations, whether accrued,
absolute                or contingent, incurred, since its incorporation, except in the
ordinary and                usual course of business. Since its incorporation, the
Company has been                operating in the ordinary and usual course of business. 

	2.21  	Changes.  

	 	
Since
March 31, 2007, there has not been:  

	 	(i) 	any
change in the assets, liabilities, financial condition or operating results
               of the Company or the Subsidiary from that reflected in the Financial
               Statements, except changes in the ordinary course of business that have
not                been, in the aggregate, materially adverse; 

	 	(ii) 	any
damage, destruction or loss, whether or not covered by insurance, having a
               Material Adverse Effect; 

	 	(iii) 	any
waiver by the Company or the Subsidiary of a valuable right or of a material
               debt owed to it; 

	 	(iv) 	any
satisfaction or discharge of any lien, claim or encumbrance or payment of
               any obligation by the Company or the Subsidiary, except in the ordinary
course                of business and that is not material to the assets, properties,
financial                condition, operating results, prospects or business of the
Company (as such                business is presently conducted and as presently proposed
to be conducted in the                Updated Work Plan). 

- 16 -

	 	(v) 	any
change or amendment to a material contract or arrangement by which the
               Company or the Subsidiary or any of their respective assets or properties
are                bound or subject; 

	 	(vi) 	any
material change in any compensation arrangement or agreement with any
               employee of the Company; 

	 	(vii) 	any
sale, assignment or transfer of any patents, trademarks, copyrights, trade
               secrets or other intangible assets of the Company or the Subsidiary; 

	 	(viii) 	any
resignation or termination of employment of any key officer of the Company,
               and to the best knowledge of the Company there is no impending resignation
or                termination of employment of any such officer; 

	 	(ix) 	receipt
of notice that there has been a loss of, or material order cancellation
               by, any major customer of the Company; 

	 	(x) 	any
mortgage, pledge, transfer of a security interest in, or lien, created by
               the Company or the Subsidiary, with respect to any of their respective
material                properties or assets, except liens for taxes not yet due or
payable; 

	 	(xi) 	any
loans or guarantees made by the Company or the Subsidiary to or for the
               benefit of its respective employees, officers or directors, or any members
of                their immediate families, other than travel advances and other advances
made in                the ordinary course of its business; 

	 	(xii) 	any
declaration, setting aside or payment or other distribution in respect of
               any of the Company’s capital stock, or any direct or indirect
redemption,                purchase or other acquisition of any of such stock by the
Company; 

	 	(xiii) 	to
the best knowledge of the Company, any other event or condition of any
               character that is reasonably likely to have a Material Adverse Effect; or 

	 	(xiv) 	any
agreement or commitment by the Company or the Subsidiary to do any of the
               things described in this Section 2.21. 

	2.22  	Tax
Returns, Payments and Elections.  

The Company and the Subsidiary have
filed all tax returns and reports (including information returns and reports) as required
by law. These returns and reports are true and correct in all material respects. The
Company hereby represents and warrants that the provision for taxes of the Company and the
Subsidiary as shown in the Financial Statements is adequate for taxes due or accrued as of
the date thereof. To the best of their knowledge, the Company and the Subsidiary have not
elected pursuant to any applicable tax law any election that would have a material effect
on the Company, its respective financial condition, its respective business as presently
conducted or presently proposed to be conducted or any of its respective properties and/or
its respective material assets. The Company and the Subsidiary have never had any tax
deficiency proposed or assessed against them and have not executed any waiver of any
statute of limitations on the assessment or collection of any tax or governmental charge.
None of the Company’s or the Subsidiary’s income tax returns have ever been
audited by governmental authorities or, if audited no material comments or claims by
governmental authorities were made with respect to such audits. Since the date of the
Financial Statements, the Company and the Subsidiary have not incurred any taxes,
assessments or governmental charges other than in the ordinary course of business and the
Company and the Subsidiary have made adequate provisions on their respective books of
account for all taxes, assessments and governmental charges with respect to their
respective business, properties and operations for such period. The Company hereby
represents and warrants that the Company and the Subsidiary have withheld or collected
from each payment made to each of their respective employees, the amount of all taxes
(including, but not limited to, Israeli income taxes) required to be withheld or collected
therefrom, and has paid the same to the proper tax receiving officers or authorized
depositories. 

- 17 -

	2.23  	Minute
Books.  

The minute books of the Company and
the Subsidiary contain a complete summary of all meetings of directors and shareholders
since the time of their incorporation and reflect all transactions referred to in such
minutes accurately in all material respects. 

	2.24  	Labor
Agreements and Actions; Employee Compensation. 

	 	(a) 	Neither
the Company nor the Subsidiary is bound by or subject to (and none of                its
assets or properties is bound by or subject to) any written or oral, express
               or implied, contract, commitment or arrangement with any labor union other
than                those provisions of general agreements between the Federation of
Labor Unions                (the “Histadrut”) and the Coordination Bureau of
Economic                Organizations which may be applicable to certain classes of
employees by virtue                of extension orders, and no labor union has
requested or has sought to                represent any of the employees, representatives
or agents of the Company or the                Subsidiary. There is no strike or other
labor dispute involving the Company or                the Subsidiary pending, or to the
best knowledge of the Company, that is likely                to have a Material Adverse
Effect, nor is the Company aware of any labor                organization activity
involving the Company or the Subsidiary. The Company is                not aware that any
officer or key employee, or that any group of key employees,                intends to
terminate their employment with the Company or the Subsidiary, nor                does
the Company or the Subsidiary have a present intention to terminate the
               employment of any of the foregoing. Schedule 2.24,
which                was previously delivered to lead counsel of the Investors, sets
forth the names                of each of the Company’s and the Subsidiary’s
employees and                consultants. The Company and the Subsidiary are or at the
Closing will be a                party to an employment agreement with each employee of
the Company and the                Subsidiary, as applicable. The employment of each
officer and employee of the                Company or the Subsidiary is terminable at the
will of the Company or the                Subsidiary, subject to the payment of severance
and other payments as provided                by law and/or pursuant to any applicable
employment agreements. The Company and                the Subsidiary have complied in all
material respects with all applicable laws                related to employment. Except
as set forth in Schedule 2.24, the Company and the                Subsidiary are not
parties to or bound by any currently effective employment                deferred
compensation agreement, bonus plan, incentive plan, profit sharing                plan,
retirement agreement, or other employee compensation agreement. 

- 18 -

	 	
Schedule
2.24  contains a list of all written and material oral promises, agreements,
arrangements and understandings, with officers, directors, employees and consultants
(other than attorneys and accountants) of the Company and the Subsidiary, which are
presently in effect, detailing the name, title or position, annual salary/compensation
(including bonuses, commissions, and deferred compensation), pensions (including those
required by all applicable laws), retirement benefits, company cars, profit sharing, and
any interests in any incentive compensation plan.  

	 	
The
severance pay to the employees of the Company and the Subsidiary is fully funded or
provided for in the Financial Statements in accordance with US generally accepted
accounting principals. All liabilities of the Company in connection with its employees
(excluding illness pay and advance notice of termination) were adequately accrued in the
Financial Statements and the Company is not aware of any circumstance whereby any
employee might demand any claim for compensation on termination of employment beyond the
amount of statutory or contractual severance pay to which such employee may be entitled.
All obligations of the Company and the Subsidiary with respect to statutorily required
severance payments have been fully satisfied or have been funded by contributions to
appropriate insurance funds.  

	 	(b) 	All
grantees under the Share Option Plans have provided the trustees nominated
               under the plans with a proxy for the exercise of all rights granted to
them with                respect to their shares and options, including voting rights,
until the                consummation of an IPO. 

	2.25  	Government
Sponsored Programs.  

Schedule 2.25
attached hereto contains an accurate and complete list of all grants and other benefits,
including tax benefits, received or applied for by the Company or the Subsidiary from any
governmental authority. The Company has received certain grants in support of its research
and development through the OCS. The Company is in compliance in all respects with all of
the terms and provisions of its grants from the OCS and any other grants or benefits
listed as received in Schedule 2.25 and applicable laws and
regulations in order to continue to qualify for such grants and in order not to give rise
to any obligation to prepay the amount of such grants nor to require the Company to repay
to the OCS any amount in excess of such grants before due. 

	2.26  	Brokers.  

The Company has no contract,
arrangement or understanding with any broker, finder or similar agent with respect to the
transactions contemplated by this Agreement. 

	2.27  	Significant
Customers and Suppliers.  

No customer, sub-contractor or
supplier that is significant to the Company or the Subsidiary, has terminated, materially
reduced or threatened to terminate or materially reduce or limit (i) its relationship with
the Company or the Subsidiary, or (ii) its purchases from or provision of products or
services to the Company or the Subsidiary, as the case may be. 

- 19 -

	2.28  	Insurance.  

The Company and the Subsidiary have
in full force and effect insurance policies of financially sound and reputable insurers,
as to their respective properties and business, in scope and amount customary and
reasonable for the businesses in which the Company and the Subsidiary are engaged or
presently propose to engage, with coverage sufficient in amount to allow them to replace
any of their material properties that might be damaged or destroyed or compensation by or
for the Company and the Subsidiary. The Company and the Subsidiary have not done or
suffered anything to be done that has rendered or might render any policies of insurance
void or voidable and the Company and the Subsidiary have complied in all material respects
with all conditions contained in such policies. Schedule 2.28 sets
forth a list of insurance policies currently maintained by the Company and the Subsidiary
and the coverage thereunder. 

	2.29  	Effectiveness;
Survival; Indemnification  

	 	(a) 	Closing:
Each representation and warranty of the Company is deemed to be                made
on the date of this Agreement and at the Closing, and shall survive and
               remain in full force and effect after the Closing for a period until the
earlier                of forty eight (48) months thereafter or the initial public
offering of the                Company’s securities, except for each of the
representations and warranties                made in Sections 2.2 and 2.6 that shall be
in effect indefinitely, and the                representations and warranties made in
Sections 2.7, 2.8 and 2.22 which shall                remain in full force and effect
after the Closing for a period of 7 (seven)                years or the initial public
offering of the Company’s securities, whichever                is the earlier. In
the event of any breach or misrepresentation of any covenant,                warranty or
representation made by the Company under this Agreement, the Company                shall
indemnify the Investors and hold them harmless from any and all loss,
               damage, liability and expense sustained or incurred by the Investors as a
result                of or in connection with said breach or misrepresentationfor
an amount                not exceeding the sum of the A1 Purchase Price actually paid by
such Investor to                the Company pursuant to this Agreement. 

	 	(b) 	Notwithstanding
the foregoing, any limitations set forth in subsection 2.29                shall not
apply to any claim for indemnification that is based on a willful or
               intentional breach or misrepresentation of any covenant, warranty or
               representation made by the Company under this Section 2, and the
representations                and warranties made by the Company under this Section 2 in
respect of any such                claim shall be unlimited by time. 

	 	(c) 	Any
amount due to any Investor as a result of a claim for indemnification shall
               be determined after deducting or setting off, as the case may be, all
monetary                recovery from insurers and other third parties and any savings of
taxes or other                governmental or administrative levies. For the avoidance of
doubt, the                limitation under this Section 2.29(c), shall not restrict any
such insurer or                other third parties from claiming back from the Company
any moneys paid to the                Investors pursuant to this Section 2.29(c) subject,
however, to the restrictions                and limitations set forth in Section 2.29(a)
and (b) above. 

	2.30  	Indemnity
Procedure.  

Promptly after receipt by an Investor
of notice of the commencement of any action, proceeding, or investigation of any third
party in respect of which indemnity may be sought as provided in subsection 2.29 above, it
shall accordingly notify the Company (the “Indemnitor”). The Company
shall promptly assume the defense of the Investor with counsel reasonably satisfactory to
the Investor, and the fees and expenses of such counsel shall be at the sole cost and
expense of the Company. The Investor will cooperate with the Indemnitor in the defense of
any action, proceeding, or investigation for which the Company assumes the defense. The
Indemnitor shall not be liable for the settlement of any action, proceeding, or
investigation effected without its consent, which consent shall not be unreasonably
withheld. 

- 20 -

	3.  	Representations
and Warranties of the Investors  

Each Investor hereby represents and
warrants that: 

	3.1  	Authorization:
Ownership of Shares.  

        All
action on the part of the Investor, its officers, directors and shareholders necessary for
the authorization, execution and delivery of this Agreement and the Shareholders Rights
Agreement, and the performance of all obligations hereunder has been taken or will be
taken prior to the Closing, and this Agreement and the Shareholders Rights Agreement
constitutes a valid and legally binding obligation of the Investor, enforceable in
accordance with its terms, subject only to laws affecting the rights and remedies of
creditors. The Investor is duly organized and properly registered in the jurisdiction of
its organization. The execution, delivery and performance of this Agreement and the
Shareholders Rights Agreement, will not violate any provision of the corporate documents
of the Investor, or of any instrument, judgment, order, writ, decree or contract to which
it is a party or by which it is bound or, to its best knowledge, of any provision of law,
rule or regulation applicable to the Investor. 

	3.2  	Purchase
Entirely for Own Account.  

        This
Agreement is made with the Investor in reliance upon the Investor’s representation to
the Company, which by the Investor’s execution of this Agreement the Investor hereby
confirms, that the Issued Shares (for the purposes of this Section 3, collectively, the
“Securities”) will be acquired for investment for the Investor’s own
account, not as a nominee or agent, and not with a view to the resale or distribution of
any part thereof, and that the Investor has no present intention of selling, granting any
participation in, or otherwise distributing the same. By executing this Agreement, the
Investor further represents that it does not have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participation to such person or to
any third person, with respect to any of the Securities. 

	3.3  	Disclosure
of Information.  

        The
Investor represents that it is a sophisticated investor with the experience in making
venture capital investments, including in high-tech companies and projects. It was not
organized for the specific purpose of acquiring the Issued Shares. It is able financially
to bear the risks involved in such investment and it has received all the information it
considers necessary or appropriate for deciding whether to purchase the Issued Shares. The
Investor further represents that it has had an opportunity to ask questions and receive
answers from the Company regarding the Company, its business, management, financial
affairs and the terms and conditions of the offering of the Issued Shares. The foregoing,
however, does not limit or modify the representations and warranties in Section 2 of this
Agreement or the right of the Investor to rely thereon. 

- 21 -

	3.4  	Office
of the Chief Scientist  

        It
is aware that the Company has received financing for certain research and development
projects through the OCS and it is aware, and agrees to the application, of the provisions
of the Law for the Encouragement of Industrial Research and Development, 5744-1984 and of
Regulations promulgated thereunder, to the Company, including, inter alia: 

	 	(a) 	the
Company’s obligation to pay royalties to the State of Israel; 

	 	(b) 	that
the manufacture of any product developed as a result of any project so
               funded take place in the State of Israel unless the Research Committee of
the                OCS pursuant to the above law otherwise determines, subject to and
pursuant to                the above law; and 

	 	(c) 	that
know-how derived from any project so funded may not be transferred to third
               parties without the approval of the Research Committee of the OCS subject
to and                pursuant to the above law. 

	3.5  	Israeli
Securities Law  

	 	
If
listed in Schedule 3.5 A it is a “Venture Capital Fund” as
defined in the Appendix to the Israeli Securities Law, 5768-1968 and if listed in
Schedule 3.5 B it confirms that it is not a resident of Israel and
that no offer to purchase securities of the Company was made to it in Israel. 

	4.  	Conditions
of Investor’s Obligations at Closing.  

        The
obligations of the Investors under Section 1 of this Agreement are subject to the
fulfillment on or before the Closing, of each of the following conditions (any or all of
which may be waived, in whole or in part, by the Majority Investors. 

	4.1  	Representations
and Warranties.  

        The
representations and warranties contained in Section 2 shall be true on and as of the
Closing as though such representations and warranties had been made on and as of the date
of the Closing. 

	4.2  	Performance.  

        The
Company shall have performed and complied with all agreements, obligations and conditions
contained in this Agreement that are required to be performed or complied with by it on or
before the Closing. 

	4.3  	Proceedings
and Documents.  

        All
corporate and other proceedings in connection with the transactions contemplated at the
Closing, and all documents incident thereto shall be reasonably satisfactory in form and
substance to the Investors’ counsel, and the Investors shall have received all such
counterpart original and certified or other copies of such documents as they may
reasonably request. 

	4.4  	Consents
and Approvals, Delivery of Documents  

        The
Company shall have received and shall have provided the Investors with copies,
satisfactory to the Investors’ counsel, of all permits, consents, approvals and
authorizations which shall be necessary or required to consummate this Agreement, the
Shareholders Rights Agreement and to issue and sell the Issued Shares, including without
limitation the waivers, consents and approvals set forth in Section 1.3 hereof, for the
Recapitalization and OCS and Investments Center’s approval for the transactions
contemplated hereby and for the issuance of the Issued Shares, the Ordinary Preferred A
Shares and the Ordinary Preferred B Shares. All the actions to be taken as set forth in
Section 1.3 above shall have been completed to the satisfaction of the Investors.
Documents to be delivered by the Company, as set forth in Section 1.3 above, shall be
delivered. All such documents shall be satisfactory in form and substance to the
Investors. 

- 22 -

	4.5  	Opinion
of Company Counsel.  

        On
or prior to the Closing, the Investors shall have received from Tulchinsky Stern Marciano,
Ben-Zur, Cohen, & Co. Law Offices, counsel for the Company, an opinion, dated as of
Closing, in form and substance acceptable to Investors’ lead counsel attached hereto
as Schedule 4.5. 

	4.6  	Shareholders
Rights Agreement  

        On
or prior to the Closing, the Shareholders Rights Agreement shall have been amended and
shall be in the form attached hereto as Exhibit B . 

	4.7  	Absence
of Adverse Changes  

        From
the date hereof until the Closing, there will have been no material adverse change in the
financial or business condition or prospects of the Company, in the sole judgment of the
Majority Investors. 

	4.8  	No
Action.

No action, suit, or proceeding shall
be pending or threatened before any court or quasi-judicial or administrative agency of
any state, municipal, or foreign jurisdiction or before any arbitrator wherein an
unfavorable injunction, judgment, order, decree, ruling, or charge would: (i) prevent
consummation of any of the transactions contemplated by this Agreement; (ii) cause any of
the transactions contemplated by this Agreement to be rescinded following consummation. 

	4.9  	Amended
Articles of Association.  

        Prior
to the Closing, the Amended Articles shall have been adopted by the Company’s
shareholders. 

	4.10  	Officer’s
Certificate.  

        On
or prior to the Closing, a certificate from the chief financial officer of the Company,
certifying as to the matters set forth in Section 4.1, 4.2, 4.7 and 4.8 in the form
attached hereto as Schedule 4.10, shall have been delivered to the
Investors. 

	4.11  	Due
Diligence Review  

        The
Investor’s legal, business and financial due diligence review of the Company and the
Subsidiary shall have been completed to the sole and complete satisfaction of the
Investors and their counsel. 

- 23 -

	4.12  	Management
Rights Letter  

        The
Company shall have executed and delivered to each Investor who so requested a Management
Rights Letter in the form attached hereto as Schedule B. 

	4.13  	ESOP  

        The
number of Ordinary Shares reserved for allocation under the Company’s ESOP shall be
increased as described in Section 1.7 above. 

	4.14  	Consents
and Approvals  

        The
Company shall have received all permits, consents, approvals and authorizations which
shall be necessary or required to consummate this Agreement and to issue and sell the
Issued Shares, the Ordinary Preferred A Shares and the Ordinary Preferred B Shares, and
shall have received the Board and shareholders approval for the Recapitalization and the
conversion of the Recap Ordinary Shares into Ordinary Preferred A Shares or Ordinary
Preferred B Shares, as applicable as contemplated under this Agreement. 

	5.  	Conditions
of the Company’s Obligations at Closing.  

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

	5.1  	Representations
and Warranties.  

        The
representations and warranties of the Investors contained in Section 3 shall be true on
and as of the Closing with the same effect as though such representations and warranties
had been made on and as of the Closing. 

	5.2  	Payment
of Consideration.  

        The
Investors shall have delivered the consideration specified in Section 1.2 above. 

	5.3  	Shareholders
Rights Agreement  

        On
or prior to the Closing, the Shareholders Rights Agreement shall have been amended and
shall be in the form attached hereto as Exhibit B. 

	5.4  	Amended
Articles of Association.  

        Prior
to the Closing, the Amended Articles shall have been adopted by the Company’s
shareholders. 

	5.5  	Consents
and Approvals  

        The
Company shall have received all permits, consents, approvals and authorizations which
shall be necessary or required to consummate this Agreement and to issue and sell the
Issued Shares, the Ordinary Preferred A Shares and the Ordinary Preferred B Shares, and
shall have received the Board and shareholders approval for the Recapitalization and the
conversion of the Recap Ordinary Shares into Ordinary Preferred A Shares and Ordinary
Preferred B Shares, as applicable as contemplated under this Agreement. 

- 24 -

	5.6  	No
Judgment or Order.  

        There
shall not be on the Closing, any judgment or order of a court of competent jurisdiction or
any ruling, regulation or order of any agency of the Israeli government which would
prohibit or have the effect of preventing consummation of the sale of the Issued Shares. 

	6.  	Covenants
of the Company. 

	6.1  	Use
of Proceeds.  

        The
Company shall utilize the funds received from the Investors under this Agreement in
accordance with the 2007 Budget, as updated from time to time in by the Board of Directors
of the Company. 

	6.2  	Amended
Articles of Association.  

        Within
14 days of the Closing, the Company shall file the Amended Articles with the Israeli
Registrar of Companies.  

	7.  	Press
Release.  

        No
party, shall issue any public statement or release concerning this Agreement and the
transactions contemplated hereby without the prior written approval of the Company and
the Majority Investors.  

	8.  	Miscellaneous.  

	8.1  	Survival
of Representations.  

        The
warranties, representations and covenants of the Company and the Investors contained in or
made pursuant to this Agreement shall survive the execution and delivery of this Agreement
and the Closing and shall in no way be affected by any investigation of the subject matter
thereof made by or on behalf of the Investors or the Company. 

	8.2  	Successors
and Assigns.  

        Except
as otherwise provided herein, the terms and conditions of this Agreement shall inure to
the benefit of and be binding upon the respective successors and assigns of the parties
(including Permitted Transferees, as such term is defined in the Company’s Amended
Articles, of any Issued Shares and Conversion Shares). Nothing in this Agreement, express
or implied, is intended to confer upon any party other than the parties hereto or their
respective successors and assigns any rights, obligations, or liabilities under or by
reason of this Agreement, except as expressly provided in this Agreement. 

	8.3  	Finders
Fee  

        Each
of the Company and the Investors represent as to themselves, that no person or entity
shall be entitled to any broker’s or finder’s fees or any other commission or
similar fee in connection with this Agreement. The Company agrees to indemnify and to hold
harmless the Investors and the Investors agree to indemnify and hold harmless the Company
and the Founders from any liability for any commission or compensation in the nature of a
finders’ fee (and the costs and expenses of defending against such liability or
asserted liability) for which the Investors or the Company, or any of their respective
officers, partners, employees, or representatives are respectively responsible. 

- 25 -

	8.4  	Governing
Law.  

        The
Company and the Investors agree that this Agreement shall be governed by and construed
under the laws of the State of Israel and that the exclusive place of jurisdiction in any
matter arising out of or in connection with this Agreement shall be the applicable Tel
Aviv Court. 

	8.5  	Counterparts.  

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

	8.6  	Titles
and Subtitles.  

        The
titles and subtitles used in this Agreement are used for convenience only and are not to
be considered in construing or interpreting this Agreement. 

	8.7  	Notices.  

        Unless
otherwise provided, any notice required or permitted under this Agreement shall be given
in writing, shall be effective when given, and shall in any event be deemed to be given
upon receipt or, if earlier, (a) five (5) days after the day of deposit with a National
Post Office, if delivered by first class mail, postage prepaid, if addressed to a party in
the same country or fourteen (14) after deposit with a National Post Office, if delivered
by first class mail, postage prepaid, if addressed to a party in a different country, (b)
upon delivery, if delivered by hand (c) five (5) days after the day of deposit with
recognized overnight courier service freight prepaid or (d) one (1) business days after
the business day of facsimile transmission, if delivered by facsimile transmission with a
copy by first class mail, postage prepaid, and each notice shall be addressed to the party
to be notified at the address set forth in this section as follows: 

For the Company.  

		
		
		
		
		
	Negevtech Ltd.
	attn:	CEO
	address:	Beit Tamar
	 	12 Hamada St.
	 	Rehovot 76122
	 
	tel:	08-9366050
	fax:	08-9366051

For the Investors:  

As set out on Schedule
A. 

or at such other address as such
party may designate by fourteen (14) days’ advance written notice to the other
parties. 

- 26 -

	8.8  	Expenses.  

        Upon
Closing, the Company will pay from the proceeds of the A1 Purchase Price the legal fees
and expenses of the lead counsel appointed by the Investors, Ori Rosen & Co., Law
Offices, actually incurred by the Investors in connection with the transactions
contemplated under this Agreement, up to a total of $25,000 plus VAT. 

	8.9  	Entire
Agreement; Amendments and Waivers.  

        This
Agreement (together with the schedules and exhibits attached hereto) contains the entire
understanding of the parties with respect to its subject matter and all prior
negotiations, discussions, commitments, and understandings heretofore between them with
respect thereto are merged herein. Any term of this Agreement may be amended, directly or
indirectly, and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively), only
with the written consent of the Company and the Majority Investors, excluding, however,
the number of shares issued to each Investor and the Price Per Share, that may not be
changed with respect to such Investor unless such Investor has consented thereto in
writing. 

	8.10  	Severability.  

        If
one or more provisions of this Agreement are held to be unenforceable under applicable
law, such provision shall be excluded from this Agreement and the balance of the Agreement
shall be interpreted as if such provision were so excluded and shall be enforceable in
accordance with its terms. 

[Remainder of Page
Intentionally Left Blank] 

- 27 -

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

THE COMPANY:

         Negevtech Ltd. 

		
		
		
		
		
	By:	_______________________________________
	  	 
	Name:	_______________________________________
	  	 
	Title:	_______________________________________
	  	 
	Date:	_______________________________________

- 28 -

IN WITNESS WHEREOF, we affix our
signatures hereto as of the date set forth above. 

INVESTORS:

	Investor 	Address 
	Pitango Venture Capital Fund III (Israeli Sub) L.P.	11 HaManofim Street Bldg. B 
Herzliya 46725, Israel
	Pitango Venture Capital Fund III (Israeli Sub.) Non-Q L.P.
	Pitango Venture Capital Fund III (Israeli Investors) L.P.
	Pitango Parallel Investor Fund III (Israel), L.P.
	Pitango Principles Fund III (Israel) L.P.
	Pitango Venture Capital Fund III Trusts 2000 Ltd.
	Shrem, Fudim, Kelner Founders Group II L.P.	21 Ha'arbaa Street 
Tel Aviv 64739, Israel
	Shrem Fudim Kelner & Co. Ltd.
	Shrem Fudim Kelner Founders Group II Annex Fund L.P.
	SVE Star Ventures Enterprises GmbH & Co. No. IX KG.	Star Ventures Management 
  Possartstrasse 9      
     D-81679 Munich    
         Germany  
               Contact: Nicolas Sammartino
	Star Growth Enterprise, a German Civil Law Partnership (with limitation of liability  
	SVM Star Ventures Managementgesellschaft mbH Nr. 3
	Star Management of Investments No. II (2000) L.P.	
SVM Star Venture Capital  Management Ltd.

11 Galgaley Haplada St.,

P.O. Box 12600,

Herzelia Pituach, 46733, Israel.

Contact: Tami Gilboa-Arbel

	Genesis Partners II, L.D.C.	
Ackerstein Towers B

11 HaMenofim St

Herzliya, 46733

Israel

	Genesis Partners II (Israel), L.P.
	Poalim Ventures Ltd.	
Alrov Tower, 46 Rothschild Blvd,

Tel Aviv 66883, Israel

Facsimile: 03-5675760

	Poalim Ventures I Ltd.
	Poalim Ventures II L.P. 
	Wellington Partners Venture III Technology Fund L.P.	Theresienstrasse 6, 80333 
Muenchen, Germany
	Amadeus III	
Mount Pleasant House

2 Mount Pleasant

Cambridge

CB3 0RN

	Amadeus III Affiliates Fund L.P. 	
2711 Centerville Road

Suite 400, Wilmington,

New Castle County,

Delaware 19808

[See separate
signature pages for each Investor] 

- 29 -

Schedule A  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Bridge
  Loan Interest

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
7.77%

	
 

	
 

	
1-Jul-07

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name

	
 

	
Date

	
 

	
Bridge Loan $2M

	
 

	
Interest

	
 

	
Total

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pitango Venture Capital Fund III (Israeli Sub) L.P.

	
 

	
 

	
9-May-07

	
 

	
 

	
393,593

	
 

	
 

	
4,441

	
 

	
 

	
398,034

	
 

	
Pitango Venture Capital Fund III (Israeli Sub.) Non-Q L.P.

	
 

	
 

	
9-May-07

	
 

	
 

	
36,386

	
 

	
 

	
411

	
 

	
 

	
36,797

	
 

	
Pitango Venture Capital Fund III (Israeli Investors) L.P.

	
 

	
 

	
9-May-07

	
 

	
 

	
106,429

	
 

	
 

	
1,201

	
 

	
 

	
107,630

	
 

	
Pitango Parallel Investor Fund III (Israel), L.P

	
 

	
 

	
9-May-07

	
 

	
 

	
33,089

	
 

	
 

	
373

	
 

	
 

	
33,462

	
 

	
Pitango Principles Fund III (Israel) L.P.

	
 

	
 

	
9-May-07

	
 

	
 

	
13,855

	
 

	
 

	
156

	
 

	
 

	
14,011

	
 

	
Pitango Venture Capital Fund Trusts 2000 Ltd.

	
 

	
 

	
9-May-07

	
 

	
 

	
27,709

	
 

	
 

	
313

	
 

	
 

	
28,022

	
 

	
Shrem, Fudim, Kelner Founders Group II L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
Shrem Fudim Kelner Founders Group II Annex Fund L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
Shrem, Fudim Kelner & Co Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
SVE Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
 

	
 

	
9-May-07

	
 

	
 

	
276,287

	
 

	
 

	
3,117

	
 

	
 

	
279,404

	
 

	
Star Management of Investments No. II (2000) L.P.

	
 

	
 

	
8-May-07

	
 

	
 

	
36,298

	
 

	
 

	
417

	
 

	
 

	
36,715

	
 

	
Star Growth Enterprise, a German Civil Law Partnership (with
  limitation of Liability)

	
 

	
 

	
9-May-07

	
 

	
 

	
277,423

	
 

	
 

	
3,130

	
 

	
 

	
280,553

	
 

	
SVM Star Ventures Managmenttgesellschaft mbH Nr. 3

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
Genesis Partners II, L.D.C.

	
 

	
 

	
4-May-07

	
 

	
 

	
304,032

	
 

	
 

	
3,754

	
 

	
 

	
307,786

	
 

	
Genesis Partners II (Israel) L.P.

	
 

	
 

	
4-May-07

	
 

	
 

	
44,922

	
 

	
 

	
555

	
 

	
 

	
45,477

	
 

	
Poalim Ventures Ltd.

	
 

	
 

	
10-May-07

	
 

	
 

	
31,815

	
 

	
 

	
352

	
 

	
 

	
32,167

	
 

	
Poalim Ventures I Ltd.

	
 

	
 

	
10-May-07

	
 

	
 

	
48,947

	
 

	
 

	
542

	
 

	
 

	
49,489

	
 

	
Poalim Ventures II L.P.

	
 

	
 

	
17-May-07

	
 

	
 

	
99,238

	
 

	
 

	
951

	
 

	
 

	
100,189

	
 

	
Wellington Partners Venture III Technology Fund L.P.

	
 

	
 

	
7-May-07

	
 

	
 

	
262,635

	
 

	
 

	
3,075

	
 

	
 

	
265,710

	
 

	
Amadeus III

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
Amadeus III Affiliates Fund LP

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
 

	
  
	
 
	
 

	

	

	
 

	

	

	
 

	

	

	
 

	
Total

	
 

	
 

	
 

	
 

	
 

	
1,992,658

	
 

	
 

	
22,788

	
 

	
 

	
2,015,446

	
 

	
 

	
 

	
 
	
 
	
 

	

	

	
 

	

	

	
 

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name

	
 

	
Date

	
 

	
Bridge Loan $3M

	
 

	
Interest

	
 

	
Total

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pitango Venture Capital Fund III (Israeli Sub) L.P.

	
 

	
 

	
7-Jun-07

	
 

	
 

	
521,085

	
 

	
 

	
2,662

	
 

	
 

	
523,747

	
 

	
Pitango Venture Capital Fund III (Israeli Sub.) Non-Q L.P.

	
 

	
 

	
7-Jun-07

	
 

	
 

	
48,172

	
 

	
 

	
246

	
 

	
 

	
48,418

	
 

	
Pitango Venture Capital Fund III (Israeli Investors) L.P.

	
 

	
 

	
7-Jun-07

	
 

	
 

	
140,904

	
 

	
 

	
720

	
 

	
 

	
141,624

	
 

	
Pitango Parallel Investor Fund III (Israel), L.P

	
 

	
 

	
7-Jun-07

	
 

	
 

	
43,807

	
 

	
 

	
224

	
 

	
 

	
44,031

	
 

	
Pitango Principles Fund III (Israel) L.P.

	
 

	
 

	
7-Jun-07

	
 

	
 

	
18,343

	
 

	
 

	
94

	
 

	
 

	
18,437

	
 

	
Pitango Venture Capital Fund Trusts 2000 Ltd.

	
 

	
 

	
7-Jun-07

	
 

	
 

	
36,685

	
 

	
 

	
187

	
 

	
 

	
36,872

	
 

	
Shrem, Fudim, Kelner Founders Group II L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
Shrem Fudim Kelner Founders Group II Annex Fund L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
Shrem, Fudim Kelner & Co Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
SVE Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
 

	
 

	
7-Jun-07

	
 

	
 

	
365,782

	
 

	
 

	
1,869

	
 

	
 

	
367,651

	
 

	
Star Management of Investments No. II (2000) L.P.

	
 

	
 

	
6-Jun-07

	
 

	
 

	
48,055

	
 

	
 

	
256

	
 

	
 

	
48,311

	
 

	
Star Growth Enterprise, a German Civil Law Partnership (with
  limitation of Liability)

	
 

	
 

	
7-Jun-07

	
 

	
 

	
367,286

	
 

	
 

	
1,876

	
 

	
 

	
369,162

	
 

	
SVM Star Ventures Managmenttgesellschaft mbH Nr. 3

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
Genesis Partners II, L.D.C.

	
 

	
 

	
5-Jun-07

	
 

	
 

	
402,514

	
 

	
 

	
2,228

	
 

	
 

	
404,742

	
 

	
Genesis Partners II (Israel) L.P.

	
 

	
 

	
5-Jun-07

	
 

	
 

	
59,473

	
 

	
 

	
329

	
 

	
 

	
59,802

	
 

	
Poalim Ventures Ltd.

	
 

	
 

	
3-Jun-07

	
 

	
 

	
43,839

	
 

	
 

	
261

	
 

	
 

	
44,100

	
 

	
Poalim Ventures I Ltd.

	
 

	
 

	
3-Jun-07

	
 

	
 

	
67,444

	
 

	
 

	
402

	
 

	
 

	
67,846

	
 

	
Poalim Ventures II L.P.

	
 

	
 

	
3-Jun-07

	
 

	
 

	
136,743

	
 

	
 

	
815

	
 

	
 

	
137,558

	
 

	
Wellington Partners Venture III Technology Fund L.P.

	
 

	
 

	
5-Jun-07

	
 

	
 

	
371,770

	
 

	
 

	
2,058

	
 

	
 

	
373,828

	
 

	
Amadeus III

	
 

	
 

	
5-Jun-07

	
 

	
 

	
318,256

	
 

	
 

	
1,761

	
 

	
 

	
320,017

	
 

	
Amadeus III Affiliates Fund LP

	
 

	
 

	
5-Jun-07

	
 

	
 

	
9,843

	
 

	
 

	
54

	
 

	
 

	
9,897

	
 

	
 

	
 

	
 
	
 
	
 

	

	

	
 

	

	

	
 

	

	

	
 

	
Total

	
 

	
 

	
 

	
 

	
 

	
3,000,001

	
 

	
 

	
16,042

	
 

	
 

	
3,016,043

	
 

	
 

	
 

	
 
	
 
	
 

	

	

	
 

	

	

	
 

	

	

	
 

Schedule A

List of Investors and Amount of
Investment

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Investment At Closing

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Name

	
 

	
Total

  Investment

	
 

	
# Preferred A-1

	
 

	
Investment

  Amount at

  closing

	
 

	
Bridge Loan

  $2M+ Interest

	
 

	
Bridge Loan

  $3M+ Interest

	
 

	
Paymeny Due

  at Closing

	
 

	
Remainder

  Amount*

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pitango Venture Capital
  Fund III (Israeli Sub) L.P.

	
 

	
$

	
2,221,057

	
 

	
 

	
1,678,169
  

	
 

	
$

	
1,480,704

	
 

	
$

	
398,034

	
 

	
$

	
523,747

	
 

	
$

	
558,923

	
 

	
$

	
740,353

	
 

	
Pitango Venture Capital
  Fund III (Israeli Sub.) Non-Q L.P.

	
 

	
$

	
205,327

	
 

	
 

	
155,139
  

	
 

	
$

	
136,884

	
 

	
$

	
36,797

	
 

	
$

	
48,418

	
 

	
$

	
51,669

	
 

	
$

	
68,443

	
 

	
Pitango Venture Capital
  Fund III (Israeli Investors) L.P.

	
 

	
$

	
600,572

	
 

	
 

	
453,776

	
 

	
$

	
400,382

	
 

	
$

	
107,630

	
 

	
$

	
141,624

	
 

	
$

	
151,128

	
 

	
$

	
200,190

	
 

	
Pitango Parallel Investor
  Fund III (Israel), L.P

	
 

	
$

	
186,721

	
 

	
 

	
141,081

	
 

	
$

	
124,480

	
 

	
$

	
33,462

	
 

	
$

	
44,031

	
 

	
$

	
46,987

	
 

	
$

	
62,241

	
 

	
Pitango Principles Fund III
  (Israel) L.P.

	
 

	
$

	
78,181

	
 

	
 

	
59,071

	
 

	
$

	
52,120

	
 

	
$

	
14,011

	
 

	
$

	
18,437

	
 

	
$

	
19,672

	
 

	
$

	
26,061

	
 

	
Pitango Venture Capital
  Fund Trusts 2000 Ltd.

	
 

	
$

	
156,362

	
 

	
 

	
118,143

	
 

	
$

	
104,242

	
 

	
$

	
28,022

	
 

	
$

	
36,872

	
 

	
$

	
39,348

	
 

	
$

	
52,120

	
 

	
Canada Israel Opportunity
  Fund III, L.P.

	
 

	
$

	
30,000

	
 

	
 

	
22,667

	
 

	
$

	
20,000

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
20,000

	
 

	
$

	
10,000

	
 

	
Shrem Fudim Kelner Founders
  Group II Annex Fund L.P.

	
 

	
$

	
30,000

	
 

	
 

	
22,667

	
 

	
$

	
20,000

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
20,000

	
 

	
$

	
10,000

	
 

	
Shrem, Fudim Kelner &
  Co Ltd.

	
 

	
$

	
30,000

	
 

	
 

	
22,667

	
 

	
$

	
20,000

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
20,000

	
 

	
$

	
10,000

	
 

	
SVE Star Ventures
  Enterprises Gmbh & Co. No. IX KG.

	
 

	
$

	
1,685,854.79

	
 

	
 

	
1,273,785
  

	
 

	
$

	
1,123,903

	
 

	
$

	
279,404

	
 

	
$

	
367,651

	
 

	
$

	
476,848

	
 

	
$

	
561,952

	
 

	
Star Management of
  Investments No. II (2000) L.P.

	
 

	
$

	
221,484.03

	
 

	
 

	
167,347
  

	
 

	
$

	
147,656

	
 

	
$

	
36,715

	
 

	
$

	
48,311

	
 

	
$

	
62,630

	
 

	
$

	
73,828

	
 

	
Star Growth Enterprise, a
  German Civil Law Partnership

	
 

	
$

	
1,692,786.46

	
 

	
 

	
1,279,023

	
 

	
$

	
1,128,525

	
 

	
$

	
280,553

	
 

	
$

	
369,162

	
 

	
$

	
478,810

	
 

	
$

	
564,261

	
 

	
SVM Star Ventures
  Managmenttgesellschaft mbH

	
 

	
$

	
146,380.72

	
 

	
 

	
110,601
  

	
 

	
$

	
97,587

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
97,587

	
 

	
$

	
48,794

	
 

	
Genesis Partners II, L.D.C.

	
 

	
$

	
1,868,977

	
 

	
 

	
1,412,147

	
 

	
$

	
1,245,984

	
 

	
$

	
307,786

	
 

	
$

	
404,742

	
 

	
$

	
533,456

	
 

	
$

	
622,993

	
 

	
Genesis Partners II
  (Israel) L.P.

	
 

	
$

	
275,826

	
 

	
 

	
208,406
  

	
 

	
$

	
183,884

	
 

	
$

	
45,477

	
 

	
$

	
59,802

	
 

	
$

	
78,605

	
 

	
$

	
91,942

	
 

	
Poalim Ventures Ltd.

	
 

	
$

	
251,949

	
 

	
 

	
190,366

	
 

	
$

	
167,966

	
 

	
$

	
32,167

	
 

	
$

	
44,100

	
 

	
$

	
91,699

	
 

	
$

	
83,983

	
 

	
Poalim Ventures I Ltd.

	
 

	
$

	
387,613

	
 

	
 

	
292,870

	
 

	
$

	
258,409

	
 

	
$

	
49,489

	
 

	
$

	
67,846

	
 

	
$

	
141,074

	
 

	
$

	
129,204

	
 

	
Poalim Ventures II L.P.

	
 

	
$

	
785,885

	
 

	
 

	
593,793

	
 

	
$

	
523,923

	
 

	
$

	
100,189

	
 

	
$

	
137,558

	
 

	
$

	
286,176

	
 

	
$

	
261,962

	
 

	
Wellington Partners Venture
  III Technology Fund L.P.

	
 

	
$

	
2,142,511

	
 

	
 

	
1,618,822

	
 

	
$

	
1,428,341

	
 

	
$

	
265,710

	
 

	
$

	
373,828

	
 

	
$

	
788,803

	
 

	
$

	
714,170

	
 

	
Amadeus III

	
 

	
$

	
1,942,438

	
 

	
 

	
1,467,652

	
 

	
$

	
1,294,958

	
 

	
$

	
0

	
 

	
$

	
320,017

	
 

	
$

	
974,941

	
 

	
$

	
647,480

	
 

	
Amadeus III Affiliates Fund
  LP

	
 

	
$

	
60,075

	
 

	
 

	
45,391

	
 

	
$

	
40,050

	
 

	
$

	
0

	
 

	
$

	
9,897

	
 

	
$

	
30,153

	
 

	
$

	
20,025

	
 

	
 

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	
Total

	
 

	
$

	
15,000,000

	
 

	
 

	
11,333,583

	
 

	
$

	
9,999,998

	
 

	
$

	
2,015,446

	
 

	
$

	
3,016,043

	
 

	
$

	
4,968,509

	
 

	
$

	
5,000,002

	
 

	
 

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

*Remainder
Amoumt: To be paid by each Investor within 14 (Fourteen) days following receipt
of a written notice from the Company of a call made by the Board

Schedule B  

[Negevtech,
Ltd. Letterhead]

Date: July 20, 2007 

To: [please fill in]

_________

_________

_________

(the "Investors") 

Re: Management Rights  

Dear Ms./ Sirs, 

This letter will confirm our
agreement that pursuant to and effective as of your purchase of Series A1 Preferred Shares
of Negevtech Ltd. (hereinafter the “Company”), pursuant to that certain
Series A1 Preferred Share Purchase Agreement, dated July 20, 2007 (the “Share
Purchase Agreement”) by and between the Investors, the other entities set forth
therein and the Company, the Investors will be entitled to the following contractual
management rights, in addition to rights to non-public financial information, inspection
rights, and other rights specifically provided to all investors in the Share Purchase
Agreement and its ancillary documents: 

	 	(1)	The
Investors shall be entitled to consult with and advise the management of the
          Company on significant business issues, including management’s proposed
          annual operating plans, and management will meet with Investors regularly
during           each year at the Company’s facilities at mutually agreeable times
for such           consultation and advice and to review progress in achieving said
plans. 

	 	(2)	The
Investors may examine the books and records of the Company and inspect its
          facilities and may request information at reasonable times and intervals
          concerning the general status of the Company’s financial conditions and
          operations, provided that access to highly confidential proprietary information
          and facilities need not be provided to the Investors. 

	 	(3)	If
and for so long as the Investors are not represented on the Company’s
          Board of Directors (whether through a director or an observer), the Company
          shall give a representative of the Investors (as will be designated in writing
          by the Investors) (the “Representative”) copies of all
notices,           minutes, consents, and other material that the Company provides to its
          directors; provided, however, that the Company reserves the right to
          exclude the Representative from access to any material the Company believes
upon           advice of counsel that such exclusion is reasonably necessary to preserve
the           attorney-client privilege, to protect highly confidential proprietary
          information or for other similar reasons. Upon reasonable notice and at a
          scheduled meeting of the Board or such other time, if any, as the Board may
          determine in its sole discretion, such Representative may address the Board of
          Directors with respect to the Investor’s concerns regarding significant
          business issues facing the Company. 

	 	(4)	The
Investors hereby agree on their behalf and on behalf of the Representative           to
hold in strict confidence and not to use or otherwise disclose any           confidential
information provided to the Investors and/or to the Representative,           or learned
by any of them as a consequence of exercising the rights and           privileges
afforded to them under the terms of this letter agreement. The           provisions of
this paragraph 4 shall remain in effect notwithstanding any           termination of this
letter agreement. 

	 	(5)	The
rights described herein shall terminate and be of no further force or effect
          upon the date of the closing of the sale of the Company’s securities
          pursuant to a registration statement filed by the Company under the Securities
          Act of 1933, as amended, in connection with the firm commitment underwritten
          offering of its securities to the general public, or equivalent law of another
          jurisdiction 

Very truly yours, 

	——————————————

Rivi Sherman, President
Negevtech, Ltd.		

Exhibit A  

THE COMPANIES LAW 

A COMPANY LIMITED BY
SHARES 

AMENDED AND RESTATED ARTICLES
OF ASSOCIATION OF 

NEGEVTECH LTD. 

PRELIMINARY 

	1.  	Reserved. 

	2.  	In
these Articles, unless the context otherwise requires: 

	 	
The
“2007 Investment Agreement” – shall mean the Series A1 Preferred
Share Purchase Agreement dated July 20, 2007, between the Company and certain investors. 

	 	
These
“Articles” – shall mean the Articles of Association of the Company
as shall be in force from time to time. 

	 	
“Amadeus”
– shall mean Amadeus III and Amadeus III Affiliates Fund LP and their Permitted
Transferees to which they transfer shares. 

	 	
“as
converted basis” – shall mean assuming the theoretical conversion of all
outstanding Preferred Shares into Ordinary Shares, at the then applicable conversion
ratio. 

	 	
“Board” or “Board of Directors” – shall mean the Board of Directors of
the Company.  

	 	
“Bonus
Shares” – shall mean shares issued by the Company for no consideration to
shareholders entitled to receive them on a pro rata basis. 

	 	
“Business
Day” – shall mean a day on which commercial banks in Israel are open for
business (including, for the avoidance of doubt, Fridays). 

	 	
The
“Company” – shall mean NEGEVTECH LTD.  

	 	
The
“Companies Law” – shall mean the Companies Law, 5759-1999 as shall
be in effect from time to time and any other law that shall be in effect from time to time
with respect to companies and that shall apply to the Company. 

	 	
“Dividend”
– shall mean any asset transferred by the Company to a shareholder in respect of such
shareholder’s shares, whether in cash or in any other way, including a transfer
without valuable consideration, but excluding Bonus Shares. 

	 	
“Genesis”
– shall mean Genesis Partners II, L.D.C., Genesis Partners II (Israel) L.P. and their
Permitted Transferees to which they transfer shares. 

	 	
“Intel”
shall mean Intel Atlantic, Inc., a corporation established and existing under the laws of
the State of Delaware, USA. 

	 	
The
“Office” – shall mean the registered office of the Company as it
shall be from time to time. 

	 	
The
term “Major Holder” shall mean a holder of at least 2.5% of the issued
and outstanding shares of the Company, on an as converted basis and with respect solely to
Article 14 – a holder of at least 2% of the issued and outstanding shares of the
Company, on an as converted basis. 

	 	
“Majority
Preferred Shareholders” – shall mean the holders of at least 60% (sixty
percent) of the issued and outstanding Preferred Shares (calculated on an as converted
basis). 

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

	 	
“Original
Issue Price” – shall mean: (i) with respect to the Series A1 Preferred
Shares, $1.3235 per share; (ii) with respect to the Ordinary Preferred A Shares, $1.3406
per share; (iii) with respect to the Ordinary Preferred B Shares, $1.86665 per share, as
such prices may be adjusted, for certain purposes set forth in these Articles, upon the
occurrence of a Recapitalization Event. 

	 	
“Orbotech”
– shall mean Orbotech Technology Ventures L.P. and its Permitted Transferees to which
it transfers shares. 

	 	
“Permitted
Transferee” – shall mean: (i) a person or entity that controls or is
controlled by or is under common control with the respective shareholder; (ii) spouse,
brothers, sisters, parents and children of the transferor or a trust for the benefit of
the transferor and/or any of the foregoing, in the event the shares are held by
individuals; (iii) in the case of any shareholder which is a limited or general
partnership or a trust, to its partners (whether general or limited, including retired
partners) or beneficiaries and to affiliated partnerships managed by the same management
company or managing (general) partner or by an entity which directly or indirectly
controls, is controlled by, or is under common control with, such management company or
managing or general partner; (iv) a trustee of the Company’s incentive plans may
transfer to a beneficiary and vice versa; (v) in the case of Plenus Technologies Ltd.,
Plenus II, L.P., Plenus II (D.C.M.), Limited Partnership, Golden Gate Bridge Fund, L.P.,
Bank Leumi Le-Israel B.M. and the Participants (listed in Schedule 1 of the Loan Agreement
between the Company, Plenus II, L.P. and Plenus II (D.C.M.), Limited Partnership dated
October 11, 2005), each shall be considered a Permitted Transferee of each other, as long
as such Permitted Transferee is not a competitor of the Company; (vi) an acquirer that
acquires in one transaction the entire outstanding share capital of the Company from its
shareholders, whether pursuant to Article 29B or Section 341 of the Companies Law or
otherwise, including by way of a merger shall be deemed a Permitted Transferee for
purposes of such transfer ;and (vii) Bank Leumi Le-Israel BM (“BLL”)
shall be a Permitted Transferee of Pitango Principals Fund III (Israel) LP
(“Pitango Principals”), who may freely pledge and subject any of its
shares and other securities in the Company to a charge in favor of BLL, without being
subject to any restrictions hereunder with respect to the creation or imposition of such
pledge or charge, including, without limitation, the requirement for Board approval or any
other approval, any right of first refusal, co-sale offer or otherwise. However, the sale
of the said securities on behalf of Bank Leumi Le-Israel BM pursuant to a realization of
the said charge shall be subject to the right of first refusal and any other
restrictions on the transfer of shares contained herein. 

- 2 -

	 	
The
term “control” shall have the same meaning as designated to it under the
Companies Law and shall also mean the possession, directly or indirectly, of more than 50%
of the voting power or the right to appoint more than 50% of the members of the Board of
Directors or the right to receive more than 50% of the distributed profit. 

	 	
“Pitango”
– shall mean Pitango Venture Capital Fund III (Israeli Sub) L.P., Pitango Venture
Capital Fund III (Israeli Sub.) Non-Q L.P., Pitango Venture Capital Fund III (Israeli
Investors) L.P., Pitango Parallel Investor Fund III (Israel), L.P., Pitango Principles
Fund III (Israel) L.P., Pitango Venture Capital Fund III Trusts 2000 L.P., all of which
shall be deemed Permitted Transferees of each other, and their Permitted Transferees to
which they transfer shares. 

	 	
“Poalim
Ventures” means Poalim Ventures Ltd., Poalim Ventures I Ltd. and Poalim Ventures
II L.P., who shall be deemed Permitted Transferees of each other, and their Permitted
Transferees to which they transfer shares. 

	 	
“Preferred
Shares” – shall mean Series A1 Preferred Shares, Ordinary Preferred A Shares
and Ordinary Preferred B Shares. 

	 	
“Qualified
IPO” or “QIPO” – shall mean the consummation of a firm
commitment underwritten public offering of the Company’s shares, with aggregate gross
proceeds for the Company of at least US$ 30,000,000 (Thirty Million), at an offering price
per share representing a Company valuation of at least US$ 130,000,000 (One Hundred and
Thirty Million). 

	 	
“Recapitalization
Event” – shall mean any event of share combination or subdivision,
distribution of Bonus Shares or any other similar reclassification, reorganization or
recapitalization of the Company’s share where the shareholders retain their
proportionate holdings in the Company on an as converted basis. 

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

	 	
“Ordinary
Preferred A Shares” – shall mean Ordinary Preferred A Shares of the
Company, par value NIS 1 each. 

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

	 	
“Star”
– shall mean SVE Star Ventures Enterprises GmbH & Co. No. IX KG., Star Management
of Investments No. II (2000) L.P., SVM Star Ventures Management gesellschaft mbH No. 3,
Star Growth Enterprise, a German Civil Law Partnership (with limitation of liability) and
their Permitted Transferees to which they transfer shares. 

	 	
"Wellington"
- shall mean Wellington Partners Ventures III Technology Fund L.P. and its
Permitted Transferees to which it transfers shares.  

- 3 -

	 	
In
these Articles, subject to this Article 2 and unless the context otherwise requires,
expressions defined in the Companies Law, or any modification thereof in force at the date
at which these Articles become binding on the Company, shall have the meanings so defined;
and words importing the singular shall include the plural, and vice versa, and words
importing the masculine gender shall include the female, and words importing persons shall
include bodies corporate. The titles of the articles are not part of the articles. 

	 	
For
purposes of determining the availability of any right, the computation of any
shareholdings or the applicability of any limitation under these Articles, all Ordinary
Shares and Preferred Shares entitled to such right or the application of such limitation
held or acquired by entities or persons constituting Permitted Transferees of each other,
shall be aggregated and such entities or persons shall be viewed as a single Shareholder. 

	 	
In
the event that an article that has been added to these Articles contradicts an original
article found in these Articles – the article added shall take precedence. 

	3.  	PRIVATE
COMPANY 

	 	(a) 	The
Company is a private Company. 

	 	(b) 	The
right to transfer the shares of the Company shall be restricted in the
                    manner hereinafter appearing; 

	 	(c) 	The
number of the shareholders of the Company (not including persons who are in
                    the employment of the Company, and persons who, having been formerly
in the                     employment of the Company were while in that employment and
have continued after                     the termination of that employment to be
shareholders of the Company) shall be                     limited to fifty, provided
that, for the purposes of this provision, where two                     or more persons
hold one or more shares in the Company jointly they shall be                     treated
as a single shareholder; and 

	 	(d) 	No
invitation shall be issued to the public to subscribe for any shares or
                    debentures or debenture stocks of the Company. 

	3A  	CHARITABLE
CONTRIBUTIONS

	 	
The
Company may donate reasonable sums of money and/or issue securities of the Company
representing up to tenth of one percent (0.1%) of its issued and outstanding share
capital, to any worthy purpose or entity approved by the Board of Directors of the Company
even if such donation is not made for business consideration. 

	4.  	OFFICE 

	 	
The
Office of the Company shall be at such place as the Board shall from time to time
designate. 

	5.  	THE
CAPITAL 

	 	
The
authorized capital of the Company is comprised of NIS 56,000,000 divided into: 30,000,000
Ordinary Shares, par value 1 NIS per share, 12,500,000 Series A1 Preferred Shares, par
value 1 NIS per share, 3,500,000 Ordinary Preferred A Shares, par value 1 NIS per share
and 10,000,000 Ordinary Preferred B Shares, par value 1 NIS per share. 

- 4 -

	6.  	RIGHTS,
PREFERENCES AND RESTRICTIONS OF PREFERRED SHARES 

	 	
The
rights, preferences, privileges, and restrictions granted to and imposed on the Preferred
Shares are as set forth in these Articles. 

	7.  	DIVIDEND
PROVISIONS 

	 	
Subject
to Article 8 below, any dividends declared by the Company shall be distributed, subject to
Article 30 below, between all holders of shares of the Company, pari passu, based upon the
number of Ordinary Shares (on an as converted basis) held by any such holder. 

	8.  	DIVIDEND
AND LIQUIDATION PREFERENCE 

	 	(a) 	Upon
the happening of any of the following events: 

	 	(1) 	any
liquidation, dissolution or winding up of the Company, either voluntary or
          involuntary; or  

	 	(2) 	any
consolidation, or merger of the Company with or into another corporation
          following which the shareholders of the Company prior to such transaction do
not           hold following such transaction more than 50% of the outstanding shares and
the           voting power of the surviving corporation by virtue of their holdings in
the           Company prior to such transaction (“Merger”); or  

	 	(3) 	any
sale or Transfer to another corporation of all or substantially all of the
assets of the Company, or all or substantially all of the shares in the Company
(other than to a wholly owned subsidiary of the Company or to a corporation in
which the shareholders of the Company prior to the transaction hold more than
50% of the outstanding voting rights by virtue of their holdings in the Company
prior to such transaction) (“Acquisition”); or  

	 	(4) 	any
distribution of Dividends;  

	 	
(any
of the events described in sections (1) to (4) above shall be hereinafter referred to as
a “Liquidation Event”)  

	 	
then
the amount of declared Dividends or any assets of the Company available for distribution
in connection with, or the consideration received in, such Liquidation Event (hereinafter
referred to as “Distribution Assets”) shall be distributed pursuant to
the following order of preference:  

	 	(b) 	The
holders of the Series A1 Preferred Shares shall be entitled to receive,
                    prior and in preference to any distribution of any of the assets of
the Company                     to the holders of all other equity securities of the
Company by reason of their                     ownership thereof, an amount per each
Series A1 Preferred Share equal to: (i)                     Two time (2X) of the
applicable Original Issue Price for each such share, less                     (ii) the
aggregate amount previously paid in respect of such share pursuant to
                    this Article 8(b), if any (the “A1 Preference Amount”).
In the                     event that the Distribution Assets are not sufficient for a
full payment of the                     A1 Preference Amount to the holders of the Series
A1 Preferred Shares pursuant                     to this subarticle (b), such
Distribution Assets as are available for                     distribution, shall be
distributed among the holders of the Series A1 Preferred                     Shares
pro-rata in proportion to the preferential amount each such holder would
                    otherwise be entitled to receive had the A1 Preference Amount been
paid in full. 

- 5 -

	 	(c) 	Following
the payment in full of the A1 Preference Amount, the holders of the
                    Ordinary Preferred A Shares and the holders of the Ordinary Preferred
B Shares                     shall be entitled to receive, prior and in preference to any
distribution of any                     of the assets of the Company to the holders of
all other equity securities of                     the Company by reason of their
ownership thereof, an amount per each Ordinary                     Preferred A Share and
per each Ordinary Preferred B Share equal to: (i) the                     applicable
Original Issue Price of such share, less (ii) the aggregate amount
                    previously paid in respect of such share pursuant to this Article
8(c), if any                     (the “Ordinary A/BPreference Amount”).
In the event                     that the Distribution Assets are not sufficient for a
full payment of the                     Ordinary A/B Preference Amount to the holders of
the Ordinary Preferred A Shares                     and the holders of the Ordinary
Preferred B Shares pursuant to this subarticle                     (c), such Distribution
Assets as are available for distribution, shall be                     distributed among
the holders of the Ordinary Preferred A Shares and the holders                     of the
Ordinary Preferred B Shares pro-rata in proportion to the preferential
                    amount each such holder would otherwise be entitled to receive in
respect of                     such shares had the Ordinary A/B Preference Amount been
paid in full. 

	 	
Notwithstanding
anything to the contrary in these Articles, any change or amendment to the rights
attached to the Ordinary Preferred B Shares under this subarticle 8(c) shall require the
approval of holders of at least 75% (Seventy Five Percent) of the Ordinary Preferred B
Shares, provided that the authorization or issuance of a new class of shares with
preferential rights (including preferential rights of dividend and liquidation
preferences) or issuance of additional shares of an existing class shall not be deemed a
change or amendment in the rights of the Ordinary Preferred B Shares under this
subarticle 8(c).  

	 	(d) 	Following
the payment in full of the A1 Preference Amount and the Ordinary A/B
                    Preference Amount, the holders of the Preferred Shares and the
holders of the                     Ordinary Shares shall receive any remaining
Distribution Assets available for                     distribution pro rata based on the
number of Ordinary Shares (on an as converted                     basis) held by any such
holder. 

	 	(e) 	In
the event of a Merger or an Acquisition in which the shareholders (and not
                    the Company) are the intended recipients of the proceeds resulting
therefrom                     (such as with a sale of shares transaction), no transfer of
securities in                     accordance thereto will be considered valid and the
Company will not register or                     otherwise give effect to such transfer,
unless the provisions of the                     distribution preferences under this
Article 8 shall apply. 

	 	(f) 	Whenever
the Distribution Assets are in securities or property other than cash,
                    the value of such assets shall be the fair market value of such
securities or                     other property as shall be determined by the Board, or
by the liquidator in case                     of winding up. Such proceeds shall be made
payable in US dollars unless any                     holder of fully paid share elects to
receive such distributions in NIS. The NIS                     equivalent of the dollar
value of any distribution shall be determined in                     accordance with the
Representative Rate last published by the Bank of Israel                     prior to the
date of the making of the distribution. 

- 6 -

	9.  	CONVERSION
OF PREFERRED SHARES 

	 	
The
holders of the Preferred Shares shall have conversion rights as follows (the
“Conversion Rights”): 

	 	(a) 	Right
to Convert. 

	 	(1) 	Subject
to Article 9(c), each fully paid Preferred Share shall be convertible,           at the
option of the holder thereof, at any time after the date of issuance of           such
Preferred Share at the Office or any transfer agent for the Preferred           Shares,
into one fully paid and non-assessable Ordinary Share nominal value NIS           1 and
the Company shall, at such time, issue to the holders thereof, for no
          additional charge (a portion of the premium paid for such Preferred Shares
being           attributed as payment on account of the nominal value of such additional
          Ordinary Shares – in the event that the then applicable law requires that
          shares are issued for no less than their nominal value and to the extent no
          other source available pursuant to the provisions of the then applicable law
may           be used for such purpose), such number of fully-paid and non-assessable
Ordinary           Shares as required so that the total number of Ordinary Shares so
issued (i.e.           including the Ordinary Share into which the Preferred Share was
converted) will           be equal to the number determined by dividing the Original
Issue Price           applicable to such Preferred Share by the Conversion Price (as
defined below) at           the time in effect for such share. In the event that the then
applicable law           requires that shares are issued for not less than their nominal
value, and the           aggregate nominal value of all such Ordinary Shares shall exceed
the           consideration paid to the Company with respect to such Preferred Share, the
          holder thereof shall pay the Company such excess nominal value to the extent no
          other source available pursuant to the provisions of the then applicable law
          (such as premiums paid for other shares of the Company) may be used for such
          purpose. The initial Conversion Price per each Preferred Share shall be its
          Original Issue Price, provided, however, that the Conversion Price for the
          Series A1 Preferred Shares shall be subject to adjustment as set forth in
          subarticles 9(c), 9(d) and 9(e) and the Conversion Price for the Ordinary
          Preferred A Shares and Ordinary Preferred B Shares shall be subject to
          adjustment as set forth in subarticles 9(d) and 9(e).  

	 	(2) 	All
Preferred Shares shall automatically be converted into Ordinary Shares at           the
Conversion Price at the time in effect for such Preferred Shares upon the
          earlier of: (A) a Qualified IPO, or (B) the written consent of the Majority
          Preferred Shareholders.  

- 7 -

	 	(b) 	Mechanics
of Conversion. 

	 	(1) 	Before
any holder of Preferred Shares shall be entitled to convert the same into
          Ordinary Shares such holder shall surrender the certificate or certificates
          therefor at the Office and shall give written notice to the Company of the
          election to convert the same (or any part thereof) and shall state therein the
          name or names of any nominee for such holder in which the certificate or
          certificates for shares of Ordinary Shares are to be issued. The Company shall,
          as soon as practicable thereafter unless such notice states that conversion is
          to be effective on any later date or when any conditions specified in the
notice           have been fulfilled in which case conversion shall take effect on such
other           date or when such conditions have been fulfilled, issue and deliver at
such           office to such holder of Preferred Shares, or subject to the transfer
          restrictions contained in these Articles to the nominee or nominees of such
          holder, a certificate or certificates for the number of shares of Ordinary
          Shares to which such holder shall be entitled as aforesaid. Such conversion
          shall be deemed to have been made immediately prior to the close of business on
          the date of such surrender of the shares of Preferred Shares to be converted,
or           on any later date or when any conditions specified in the notice have been
          fulfilled and the person or persons entitled to receive the Ordinary Shares
          issuable upon such conversion shall be treated for all purposes as the record
          holder or holders of such Ordinary Shares as of such date. If the conversion is
          in connection with a QIPO, the conversion may, at the option of any holder
          tendering Preferred Shares for conversion, be conditioned upon the closing with
          the underwriter of the sale of securities pursuant to such offering, in which
          event the person(s) entitled to receive the Ordinary Shares issuable upon such
          conversion of the Preferred Shares shall not be deemed to have converted such
          Preferred Shares until immediately prior to the closing of such sale of
          securities. In the event that the certificate(s) representing the Preferred
          Shares to be converted as aforesaid are not delivered to the Company, then the
          Company shall not be obligated to issue any certificate(s) representing the
          Ordinary Shares issued upon such conversion, unless the holder of such
Preferred           Shares notifies the Company in writing that such certificate(s) have
been lost,           stolen or destroyed and executes an agreement satisfactory to the
Company to           indemnify the Company from any loss incurred by it in connection
with such           certificates.  

	 	(2) 	A
conversion of Preferred Shares pursuant to one of the events described in
          Article 9(a)(2) shall be deemed to have taken place automatically regardless of
          whether the certificates representing such shares have been tendered to the
          Company but from and after such conversion any such certificates not tendered
to           the Company shall be deemed to evidence solely the Ordinary Shares received
upon           such conversion and the right to receive a certificate for such Ordinary
Shares.  

- 8 -

	 	(c) 	Conversion
Price Adjustments of Preferred Shares 

	 	
Until
the QIPO, the applicable Conversion Price of the Series A1 Preferred Shares shall be
subject to adjustment from time to time as follows:  

	 	(1) 	Upon
each issuance by the Company of any “Additional Securities” (as
               defined below), without consideration or for a price per share less than
the                applicable Conversion Price for any issued and outstanding Series A1
Preferred                Shares, in effect immediately prior to the issuance of such
Additional                Securities, the applicable Conversion Price for any such issued
and outstanding                Series A1 Preferred Shares in effect immediately prior to
each such issuance                shall be adjusted to a price (calculated to the nearest
cent ($0.01)) determined                by dividing (1) the sum of (A) the total number
of Ordinary Shares issued and                outstanding prior to the issuance of such
Additional Securities multiplied by                the applicable Conversion Price of the
Series A1 Preferred Shares in effect                prior to the issuance of such
Additional Securities, plus (B) the total amount                of the consideration
received by the Company for such Additional Securities by                (2) the sum of
the total number of Ordinary Shares issued and outstanding                immediately
prior to the issuance of such Additional Securities plus the number                of
such Additional Securities issued. For the purpose of the above calculation,
               the number of shares of Ordinary Shares issued and outstanding immediately
prior                to such issue shall be calculated on an as converted and fully
diluted basis, as                if all outstanding warrants, options or other rights for
the purchase of shares                or convertible securities had been fully exercised
(and the resulting securities                fully converted into Ordinary Shares, if so
convertible) as of such date, but                excluding the warrants to purchase
Series AA Preferred Shares outstanding prior                to the execution of the 2007
Investment Agreement, unless cancelled).  

	 	(2) 	 (A) 	
No adjustments of any applicable Conversion Price shall be made in an amount
               less than one US cent ($0.01). No adjustment of any applicable Conversion
Price                pursuant to subarticle 9(c)(1) shall be made if it has the effect of
increasing                the applicable Conversion Price above the applicable Conversion
Price in effect                immediately prior to such adjustment.  

	 	(B) 	In
the case of the issuance of Additional Securities (as defined below) for           cash,
the consideration, for the purpose of subarticles 9(c)(1) shall be deemed           to be
the amount of cash received therefore before any payment of commissions,
          expenses and the like.  

	 	(C) 	In
the case of the issuance of Additional Securities (defined below) for a
          consideration, in whole or in part other than cash, the consideration other
than           cash shall, for the purpose of subarticle 9(c)(1) be deemed to be the fair
value           thereof as determined, in good faith, by the Board of Directors.  

- 9 -

	 	(D) 	In
the case of the issuance of options to purchase or rights to subscribe for
          Ordinary Shares, or securities by their terms convertible into or exchangeable
          for Ordinary Shares or options to purchase or rights to subscribe for such
          convertible or exchangeable securities, the aggregate maximum number of
Ordinary           Shares deliverable upon exercise (assuming the satisfaction of any
conditions to           exercise, including without limitation, the passing of time, but
without taking           into account potential anti-dilution adjustments) of such
options to purchase or           rights to subscribe for Ordinary Shares or upon
conversion or an exchange of           such convertible or exchangeable security shall be
deemed to have been issued at           the time of the issuance of such options, rights,
or securities at a           consideration equal to the consideration (determined in the
manner provided in           subarticle 9(c)(2)(B) and 9(c)(2)(C)), if any, received by
the Company upon the           issuance of such options or rights or securities plus any
additional           consideration payable to the Company pursuant to the term of such
options or           rights or securities (without taking into account potential
anti-dilution           adjustments) for the Ordinary Shares covered thereby, and the
applicable           Conversion Price shall be adjusted accordingly. Upon the expiration
of any such           options or rights, the termination of any such rights to convert or
exchange or           the expiration of any options or rights related to such convertible
or           exchangeable securities, the applicable Conversion Price to the extent in
any           way affected by or computed using such options, rights or securities or
options           or rights related to such securities (unless such options or rights
were merely           to be included in the numerator and denominator for purposes of
determining the           number of Ordinary Shares outstanding for purposes of Article
9(c)(1)) shall be           recomputed to reflect the issuance of only the number
Ordinary Shares (and           convertible or exchangeable securities that remain in
effect) actually issued           upon the exercise of such options or rights, or upon
the conversion or exchange           of such securities or upon the exercise of the
options or rights related to such           securities. The number of Ordinary Shares
deemed issued and the consideration           deemed paid therefor shall be appropriately
adjusted to reflect any change,           termination or expiration of the type described
in this Article 9(c)(2)(D).  

	 	(E) 	For
purpose of subarticle 9(c)(1) hereof, the consideration for any Additional
          Securities shall be taken into account at the U.S. dollar equivalent thereof,
on           the day such Additional Securities are issued or deemed to be issued
pursuant to           subarticle 9(c)(2)(D).  

	 	(3) 	“Additional
Securities” shall mean any Ordinary Shares, options to           purchase or rights
to subscribe for Ordinary Shares, or securities which by           their terms are
convertible into or exchangeable for Ordinary Shares, or any           securities
convertible into or exercisable for any securities of the foregoing.
          Notwithstanding the foregoing, “Additional Securities” does
not           include:  

	 	(A) 	Securities
issued pursuant to a transaction described in subarticles 9(d) or                9(e)
hereof;  

	 	(B) 	The
issuance, pursuant to the approval of the Board, of Ordinary Shares or
               Options to purchase Ordinary Shares to employees, directors and bona-fide
               consultants;  

	 	(C) 	Securities
issued pursuant to options, warrants or other rights outstanding                prior to
the issuance of the Series A1 Preferred Shares;  

	 	(D) 	Ordinary
Shares issued upon conversion of Preferred Shares;  

- 10 -

	 	(E) 	Issuance
of Bonus Shares, providing such Bonus Shares are issued to all the then
               existing shareholders, or shares issued pursuant to a rights offering in
which                all such shares are offered exclusively to existing shareholders;  

	 	(F) 	Shares
issued in the acquisition of another company provided that the issuance                of
such shares is approved by the Board of Directors;  

	 	(G) 	Shares
issued in connection with equipment leases, bank loans or secured debt
               financings approved by the Board of Directors provided the number of such
shares                issued shall not exceed, in the aggregate, together with all
previous issuances                made pursuant to this paragraph, 1% of the then issued
and outstanding share                capital of the Company on a fully diluted, as
converted basis;  

	 	(H) 	Securities
issued or issuable following written approval of Majority Preferred
               Shareholders in which they agree to waive their anti-dilution or
pre-emptive                rights (as the case may be) with respect to such specific
issuance; and  

	 	(I) 	Securities
issued as a charitable donation pursuant to Article 3A.  

	 	(d) 	Other
Distributions 

	 	
Subject
to the liquidation preference of the Preferred Shares as set forth in Article 8
above, in the event the Company shall declare a distribution payable in securities of
other persons, evidences of indebtedness issued by the Company or other persons, assets
(excluding cash dividends) or options or rights not referred to in subarticle 9(c)(3) or
if the Company at any time shall pay a dividend payable in additional Ordinary Shares or
other securities or rights convertible into, or entitling the holder thereof to receive
directly or indirectly, additional Ordinary Shares then, in each such case for the
purpose of this subarticle 9(d), the holders of the Preferred Shares shall be entitled to
receive such distribution, in respect of their holdings on an as-converted basis as of
the record date for such distribution.  

	 	
Subject
to the liquidation preference of the Preferred Shares as set forth in Article 8
above, if the Company at any time shall make a distribution of its assets to the holders
of its Ordinary Shares as a dividend in liquidation or partial liquidation or by way of
return of capital or other than as a dividend payable out of earnings or surplus legally
available for dividends, each holder of Preferred Shares shall be entitled to receive
without payment of any additional consideration, a sum equal to the amount of such assets
as would have been payable to such holder as owner of that number of Ordinary Shares
receivable by exercise of the conversion rights had such holder been the holder of record
of such Ordinary Shares on the record date for such distribution; and an appropriate
provision therefor shall be made a part of any such distribution.  

- 11 -

	 	(e) 	Recapitalization 

	 	
If
at any time or from time to time there shall be a Recapitalization Event (other than a
subdivision, combination or merger or sale of assets transaction provided for elsewhere
in this Article 9 or Article 8) provisions shall be made so that the holders of
the Preferred Shares shall thereafter be entitled to receive upon conversion of the
Preferred Shares the number of Ordinary Shares or other securities or property of the
Company or otherwise, to which a holder of Ordinary Shares deliverable upon conversion
would have been entitled immediately prior to such Recapitalization Event. In any such
case, appropriate adjustment shall be made in the application of the provisions of this
Article 9 with respect to the rights of the holders of the Preferred Shares after such
Recapitalization Event to the end that the provisions of this Article (including
adjustment of the Conversion Price then in effect and the number of shares issuable upon
conversion of the Preferred Shares) shall be applicable after that event in a manner as
nearly equivalent as may be practicable.  

	 	
If
the Company shall subdivide or combine its Ordinary Shares, the applicable Conversion
Price shall be proportionately reduced, in case of subdivision of shares, as at the
effective date of such subdivision, or if the Company shall fix a record date for the
purpose of so subdividing, as at such record date, whichever is earlier, or shall be
proportionately increased, in the case of combination of shares, as at the effective date
of such combination, or, if the Company shall fix a record date for the purpose of so
combining, as at such record date, whichever is earlier.  

	 	(f) 	No
Impairment 

	 	
The
Company will not, by amendment of these Articles or through any reorganization,
recapitalization, transfer of assets, consideration, merger, dissolution, issue or sale
of securities or any other voluntary action, avoid or seek to avoid the observance or
performance of the Conversion Rights of the holders of Preferred Shares, but will at all
times in good faith assist in the carrying out of all the provisions of this Article 9
and in the taking of all such action as may be necessary or appropriate in order to
protect the Conversion Rights of the holders of the Preferred Shares against impairment.  

	 	(g) 	No
Fractional Shares and Certificate as to Adjustments 

	 	(1) 	No
fractional shares shall be issued upon conversion of the Preferred Shares,           and
the number of Ordinary Shares to be issued shall be rounded to the nearest
          whole share. Whether or not fractional shares are issuable upon such conversion
          shall be determined on the basis of the total number of Preferred Shares held
by           the holder and the number of Ordinary Shares issuable upon such aggregate
          conversion.  

	 	(2) 	Upon
the occurrence of each adjustment or readjustment of any applicable           Conversion
Price pursuant to this Article 9, the Company, at its expense,           shall
promptly compute such adjustment or readjustment in accordance with the           terms
hereof and prepare and furnish to each holder of Preferred Shares a           certificate
setting forth each adjustment or readjustment and showing in detail           the facts
upon which such adjustment or readjustment is based. The Company shall           furnish
or cause to be furnished to such holder a like certificate setting forth           (A) such
adjustment and readjustment, (B) the applicable Conversion           Price at the
time in effect, and (C) the number of Ordinary Shares and the           amount, if
any, of other property which at the time would be received upon the           conversion
of a Preferred Share.  

- 12 -

	 	(h) 	Notices
of Record Date 

	 	
In
the event of any taking by the Company of a record of the holders of any class of
securities for the purpose of determining the holders thereof who are entitled to receive
any dividend (including a cash dividend) or other distribution, any right to subscribe
for, purchase or otherwise acquire any shares of any class or any other securities or
property, or to receive any other right, the Company shall provide to each holder of
Preferred Shares, at least 20 days prior to the date specified therein, a notice
specifying the date on which any such record is to be taken for the purpose of such
dividend, distribution or right, and the amount and character of such dividend,
distribution or right.  

	 	(i) 	Reservation
of Shares Issuable Upon Conversion 

	 	
The
Company shall at all times reserve and keep available out of its authorized but unissued
shares of Ordinary Shares solely for the purpose of effecting the conversion of the
Preferred Shares such number of its Ordinary Shares as shall from time to time be
sufficient to effect the conversion of all outstanding Preferred Shares; and if at any
time the number of authorized but unissued Ordinary Shares shall not be sufficient to
effect the conversion of all then outstanding Preferred Shares, in addition to such other
remedies as shall be available to the holder of such Preferred Shares, the Company will
take such corporate action as may, in the opinion of its counsel, be necessary to
increase its authorized but unissued Ordinary Shares to such number of shares as shall be
sufficient for such purposes.  

	10.  	RESERVED 

	11.  	VOTING
RIGHTS 

	 	
Subject
to Article 58 below, each holder of Ordinary Shares and Preferred Shares shall be entitled
to one (1) vote per Ordinary Share or Ordinary Share into which such Preferred Share is
convertible at the time of voting, whether in a vote by show of hands, secret ballot or
written consent. Each holder of Preferred Shares shall vote together with the Ordinary
Shares as a single class (except as otherwise expressly provided in these Articles or as
required by law) and shall be entitled to notice of any general meeting of shareholders in
accordance with these Articles. Fractional votes shall not be permitted and any fractional
vote resulting from the conversion mechanism described above in these Articles shall be
rounded up or down to the nearest whole number (with one-half (1/2) being rounded upward). 

	12.  	PROTECTIVE
PROVISIONS 

	 	(a) 	Until
a QIPO, the Company shall not take any of the following actions without
                    approval of the Majority Preferred Shareholders (which may be
obtained by way of                     a written consent and shall not require the
convening of a shareholders meeting                     for such purpose, unless required
by applicable law): 

- 13 -

	 	(1) 	any
amendment to or modification of these Articles and/or the Memorandum of
                    Association of the Company or any other action which would amend,
change or                     modify the rights, preferences or privileges of the
Preferred Shares.  

	 	(2) 	declaration
of any Dividend;  

	 	(3) 	the
authorization of any share capital, or other rights or securities
                    convertible into or exchangeable for share capital, or the conversion
of any                     existing shares into shares, in each case with rights equal to
or superior to                     the rights of the Preferred Shares;  

	 	(4) 	any
action or transaction which is outside the business of the Company as
                    contemplated in the Updated Work Plan of the Company (as defined in
the 2007                     Investment Agreement);  

	 	(5) 	any
action which effects a merger, reorganization, liquidation, disposition,
                    acquisition or sale of the Company or of any subsidiary thereof, or
any transfer                     of a material asset of the Company or of any subsidiary
thereof, or the creation                     of or purchase of or into any entity;  

	 	(6) 	any
action which may alter or change the capital structure of the Company or of
                    any subsidiary thereof, any action which effects a reclassification
or                     recapitalization of the outstanding capital shares of the Company,
and any                     increase in the registered share capital of the Company or of
any subsidiary                     thereof;  

	 	(7) 	the
creation of any guarantee, mortgage, pledge or security interest in a
                    material asset, or in all or substantially all of the assets of the
Company or a                     subsidiary;  

	 	(8) 	the
replacement of the independent auditors to the Company, which in any event
                    shall be one of the “big four”; and  

	 	(9) 	the
incurrence by the Company or by any subsidiary thereof of any indebtedness
                    that shall exceed the sum of $250,000 (Two Hundred Fifty Thousand US
Dollars),                     calculated on a cumulative basis in respect of any one
transaction or in respect                     of a series of connected transactions;  

	 	(b) 	Until
a QIPO, the Company shall not issue any securities of any kind or options
                    to purchase securities of any kind without the approval of the
majority of the                     directors appointed by the holders of the Preferred
Shares, provided however                     that shares issued upon the exercise of
warrants, options, or other rights                     outstanding prior to the 2007
Investment Agreement or the grant of options (and                     shares issued upon
exercise of such options) under the Company’s incentive                     plans,
are not subject to such approval. 

	 	(c) 	Any
amendment or modification of the rights and obligations of Intel set forth
                    in Article 29(e) (Right of First Refusal), Article 29A (Co-Sale) and
Article                     29(B)(b) (Bring Along) and 65(c) (Directors) shall require
the consent of Intel. 

- 14 -

	 	(d) 	The
required consents as set forth in Articles 12(a) – (b) above shall also
                    apply to any action taken by any wholly owned subsidiary of the
Company. 

	13.  	ALLOTMENT
OF SHARES 

	 	
Subject
to the provisions of Articles 12 and 14, the authorized but unissued shares shall be
under the control of the Board of Directors, who shall have the power to allot shares or
otherwise dispose of them to such persons, on such terms and conditions (including,
inter-alia, terms relating to calls as set forth in Article 31 hereof), and either at
par or at a premium, or, subject to the provisions of the Companies Law, at a discount,
and at such times, as the Board of Directors may think fit, and the power to give any
person the option to acquire from the Company any shares, either at par or at premium, or
subject as aforesaid, at a discount, during such time and for such consideration as the
Board of Directors may think fit. 

	14.  	PREEMPTIVE
RIGHTS 

	 	(a) 	Until
a QIPO, the provisions of this Article 14 shall apply: 

	 	(1) 	Any
Additional Securities (as defined in Article 9 above) to be issued by           the
Company (the “Offered Securities”) shall first be offered           by
the Board of Directors by written notice to each Major Holder (for purposes           of
this Article 14, the “Offerees”). The number of Offered
          Securities offered to each Offeree shall be the result of the multiplication of
          the Offered Securities by a fraction: (i) the numerator of which shall be
          the total number of outstanding Ordinary Shares of the Company (on an
          as-converted basis) held by such Offeree as determined prior to the offer made
          pursuant to this Article 14, and (ii) the denominator of which is the
          total number of outstanding Ordinary Shares of the Company (on an as-converted
          basis), as determined prior to the offer made pursuant to this Article 14.  

	 	(2) 	The
Company shall provide each Offeree with a Notice (the “Notice of           Offer”)
specifying the number of Offered Securities he is entitled to           purchase and
which shall state the terms of the proposed issuance, and any such           Offeree may
accept such offer, as to all or any part of the Offered Securities           so offered
to him, by giving the Company written notice of acceptance within           fourteen (14)
days after being served with such Notice of Offer; provided          that if the
purchase by such Offeree is being effected prior to, or concurrently           with such
issuance of Offered Securities (rather than subsequent thereto) then           such
Offeree shall be obligated to consummate the purchase of such Offered
          Securities only if the Company consummates the sale of the balance of the
          Offered Securities pursuant to the terms described in such Notice of Offer  

	 	(3) 	Any
and all preemption rights set forth in this Article 14, may be exercised by           a
Permitted Transferee of a Major Holder instead of by such Major Holder if such
          Major Holder so notifies the Company in writing.  

	 	(b) 	Any
Offered Securities not subscribed for by the Offeree as aforesaid, shall be
                    under the control of the Board of Directors and may be issued without
regard to                     this Article 14, except to the extent that said
Offered Securities may not                     be allotted on terms more favorable to the
purchaser than those offered pursuant                     to this Article 14. In the
event the Offered Securities are not acquired by                     the expiration of
120 days from the date of expiration of the [fourteen (14)]                     day
period referred to in Article 14(a)(2), they may not be issued except
                    by compliance with the provisions of Article 14. 

- 15 -

	15.  	REGISTERED
HOLDER 

	 	(a) 	If
two or more persons are registered as joint holders of a share they shall be
                    jointly and severally liable for any calls or any other liability
with respect                     to such share. However, with respect to voting, power of
attorney and furnishing                     notices, the one registered first in the
register of shareholders, insofar as                     all the registered joint holders
shall not notify the Company in writing to                     relate to another one of
them as the sole owner of the share, as aforesaid,                     shall be deemed to
be the sole owner of the share. 

	 	(b) 	In
the case that two or more persons are registered together as holders of a
                    share, each one of them shall be permitted to give receipts binding
all the                     joint holders for dividends or other monies in connection
with the share and the                     Company shall be permitted to pay all the
dividends or other monies due with                     respect to the share to one or
more of the joint holders, as it shall choose. 

	 	(c) 	Except
as otherwise provided in these Articles, the Company shall be entitled to
                    treat the registered holder of any share as the absolute owner
thereof, and,                     accordingly, shall not, except as ordered by a court of
competent jurisdiction,                     or as required by statute, be bound to
recognize any equitable or other claim                     to, or interest in, such
share, on the part of any other person. 

	16.  	SHARE
CERTIFICATES 

	 	(a) 	A
shareholder shall be entitled to receive from the Company without payment, one
                    certificate that shall contain that number of shares registered in
the name of                     such shareholder, their class and serial numbering.
However, in the event of                     joint holders holding a share, the Company
shall not be obligated to issue more                     than one certificate to all of
the joint holders, and the delivery of such a                     certificate to one of
the joint holders shall be deemed to be a delivery to all                     of the
joint holders. 

	 	(b) 	Each
certificate shall carry the signature or signatures of a director or such
                    other person(s) appointed by the Board of Directors for this purpose
and the                     rubber stamp or the seal of the Company. 

	 	(c) 	If
a share certificate is defaced, lost or destroyed, it may be replaced upon
                    payment of such fee, if any, and on such terms, if any, as to
evidence and                     indemnity as the Board of Directors may think fit. 

- 16 -

	17.  	MODIFICATIONS
OF SHARE RIGHTS 

	 	
If
at any time the share capital is divided into different classes of shares (unless
otherwise provided for by the terms of issue of the shares of that class) it shall be
permitted, subject to the provisions of Article 12 above, to change, convert,
broaden, add or vary in any other manner the rights, advantages, restrictions and
provisions attached at that time to one or more of the classes by a resolution of the
general meeting of the shareholders of the Company, without the need for any separate
class vote or class meeting. It is hereby clarified that any resolution required to be
adopted pursuant to these Articles by the consent of a separate class of shares, whether
by way of a separate general meeting of such class or by way of written consent, shall be
given by the holders of shares of such class entitled to vote or give consent thereon and
no holder of shares of a certain class shall be banned from voting or consenting by virtue
of being a holder of more than one class of shares of the Company, irrespective of any
conflicting interests that may exist between such different classes of shares. A
shareholder shall not be required to refrain from participating in the discussion, voting
and/or consenting on any resolution concerning an amendment to any class of shares held by
such shareholder, due to the fact that such shareholder may benefit in one way or another
from the outcome of such resolution. 

	 	
Without
derogating from the need to receive any consents or approvals required pursuant to Article
12, it is hereby clarified and agreed that the enlargement of an existing class of shares,
or the issuance or allotment of additional shares thereof, or the creation of additional
shares of that class as a result of conversion of shares from another class or unification
with another class, shall not be deemed, for purposes of these Articles, to amend, change,
vary, modify or abrogate the rights attached to the previously issued shares of such class
or of any other class. 

PLEDGE 

	18. 	The
Company shall have a lien and first pledge on all the shares, not fully           paid,
registered in the name of any shareholder (whether registered in his name           only
or together with another or others) and on the proceeds from the sale           thereof,
for any amount still outstanding with respect to that share, whether           presently
payable or not. Such a pledge shall exist whether the dates of payment           or
fulfillment or execution of the obligations, debts or commitments have become
          due or not, and shall apply to all dividends that shall be decided upon from
          time to time in connection with these shares. No benefit shall be created with
          respect to this share based upon the rules of equity which shall frustrate this
          pledge, however the Board may declare at any time with respect to any share,
          that it is released, wholly or in part, temporarily or permanently, from the
          provisions of this article. 

	19. 	The
Company may sell, in such manner and at such time as the Board thinks fit,           any
of the pledged shares, but no sale shall be made unless the date of payment           of
the monies or a part thereof has arrived, or the date of fulfillment and
          performance of the obligations and commitments in consideration of which the
          pledge exists has arrived, and after a written request has been furnished to
the           shareholder or person who has acquired a right in the shares, which sets
out the           amount or obligation or commitment due from him and which demands their
payment,           fulfillment or execution, and which informs the person of the Board’s
          desire to sell the shares in the event of non-fulfillment of the notice, and
the           person has not fulfilled his obligation pursuant to the notice within seven
days           after the notice has been sent to him. 

	20. 	The
net proceeds of such sale after payment of the costs thereof, shall be           applied
in payment of such sum due to the Company or to the fulfillment of the
          obligation or commitment (including debts, liabilities and engagements which
          have not yet fallen due for payment or satisfaction), and the remainder (if
          there shall be any) shall be paid to the shareholder or to the person who has
          acquired a right in the share sold pursuant to the above. 

- 17 -

     	21.	
          After execution of a sale as aforesaid, the Board shall be permitted to sign or
          to appoint someone to sign a deed of transfer of the sold shares and to register
          the buyer’s name in the register of shareholders as the owner of the sold
          shares and it shall not be the obligation of the buyer to supervise the
          application of monies nor will his right in the shares be affected by a defect
          or illegality in the sale proceedings after his name has been registered in the
          register of shareholders with respect to those shares. The sole remedy of any
          person aggrieved by the sale shall be in damages only and against the Company
          exclusively. 

          

TRANSFER OF SHARES AND
THE MANAGEMENT THEREOF 

	22. 	Each
transfer of shares shall be made in writing in the form appearing herein           below,
or in a similar form, or in any form as to be determined upon by the           Board from
time to time, such form shall be delivered to the Office together           with the
transferred share certificates and any other proof the Board shall           require, if
it shall so require, in order to prove the title of the transferor.           The
instruments and documents notifying the Company with respect to the transfer
          are a prerequisite to the effectuation of such transfer. Notwithstanding the
          above, any transfer of shares to any person or entity that is not at the time
of           transfer a shareholder of the Company and that competes with the Company,
          directly or indirectly, in the field of optical inspection or metrology for
          semiconductors or the transfer of shares which have not been fully paid up will
          require the consent and approval of the Board of Directors, except if such
          transfer is to a Permitted Transferee. 

Deed of Transfer of
Shares 

I, ____________ of _____________ in
consideration of the sum of NIS ________ (New Israeli Shekels) paid to me by
______________, of ____________ (hereinafter called “the said transferee”) do
hereby transfer to the said transferee ___________ share (or shares) having par value of
NIS ________ each one numbered ____ until ____ inclusive in Negevtech Ltd., to hold
unto the said transferee, his executors, administrators, and assigns, subject to the
conditions on which I held the same at the time of the execution hereof; and I, the said
transferee, do hereby agree to accept the said share (or shares) subject to the conditions
aforesaid. As witness we have hereunder set out hands the ______ day of _________ 20__. 

		
		
		
		
		
	____________________________	____________________________
	Transferee	Transferor
	 
	____________________________	____________________________
	Address	Address

	23.  	The
deed of share transfer shall be executed both by the transferor and
                    transferee, and the transferor shall be deemed to remain a holder of
the share                     until the name of the transferee is entered into the
register of shareholders in                     respect thereof. 

	24.  	The
Company shall be permitted to demand a fee for registration of transfer, in
                    a reasonable rate as to be determined by the Board from time to time,
with the                     exception of transfers to Permitted Transferees. 

- 18 -

	25.  	RESERVED. 

	26.  	Upon
the death of a shareholder, the remaining holders (in the event that the
                    deceased was a joint holder in a share) or the administrators or
executors or                     heirs of the deceased (in the event the deceased was the
sole holder of the                     share or was the only one of the joint holders of
the share to remain alive)                     shall be recognized by the Company as the
sole holders of any title to the                     shares of the deceased. However,
nothing aforesaid shall release the estate of a                     joint holder of a
share from any obligation with respect to the share that he                     held
jointly with any other holder. 

	27.  	Any
person becoming entitled to a share in consequence of the death or
                    bankruptcy or liquidation of a shareholder shall, upon such evidence
being                     produced as may from time to time be required by the Board,
have the right,                     either to be registered as a shareholder in respect
of the share upon the                     consent of the Board or, instead of being
registered himself, to transfer such                     share to another person, subject
to the provisions contained in these Articles                     with respect to
transfers. 

	28.  	A
person becoming entitled to a share because of the death of a shareholder
                    shall be entitled to receive, and to give receipts for, dividends or
other                     payments paid with respect to the share, but he shall not be
entitled to receive                     notices with respect to Company meetings or to
participate or vote therein with                     respect to that share, or aside from
the aforesaid, to use any right of a                     shareholder, until he has been
accepted as a shareholder with respect to that                     share. 

	29.  	RIGHT
OF FIRST REFUSAL 

	 	(a) 	Until
a QIPO, a shareholder of the Company shall not be permitted to make any
                    Transfer (as hereinafter defined) of his shares in the Company, other
than to a                     Permitted Transferee, except pursuant to the following
provisions set forth                     below. 

	 	
For
the purposes of this Agreement, the term “Transfer” shall mean any sale,
assignment, transfer, hypothecation or other encumbrance or disposition of in any way.  

	 	(b) 	A
shareholder, desirous of making any Transfer of the shares held by him to
                    others, in whole or in part (hereinafter the “Transferor”)
                    shall be obligated to offer them first to the Offerees (as defined in
                    Article 14 above), by giving notice in writing to the Company
and the                     Company shall forward such notice to such Offerees within 3
(three) business                     days following receipt of such notice (hereinafter
“Sale Notice”). 

	 	(c) 	In
the Sale Notice the Transferor shall mention the number of shares he wishes
                    to Transfer (hereinafter the “Offered Shares”), the
price                     forming the consideration for the Offered Shares, the name of
the transferee                     (the “Transferee”) and the other
conditions of the sales. 

	 	(d) 	The
Sale Notice shall be irrevocable unless all of the Offerees agree otherwise. 

- 19 -

	 	(e) 	Each
of the Offerees may inform the Transferor and the Company in writing within
                    21 Business Days from the date of receipt of the Sale Notice as to
his/her                     intention to purchase that number of Offered Shares, in whole
or in part, which                     is the result of the multiplication of the Offered
Shares by a fraction:                     (i) the numerator of which is the number
of Ordinary Shares (on an                     as-converted basis) of the Company held by
such Offeree and (ii) the                     denominator of which is the total
number of outstanding Ordinary Shares (on an                     as-converted basis) held
by all Offerees (hereinafter the                     “Offerees’ Offered
Shares”), the purchase of which shall                     be at the purchase
price and in accordance with the payment conditions as                     provided for
in the Sale Notice (hereinafter the “Purchase                     Notice”).
An Offeree who has submitted a Purchase Notice shall be                     referred to
hereinafter as “Buyer”. Notwithstanding the
                    foregoing, Intel (to the extent it is a Major Holder) shall be
required to                     provide the Transferor with a Purchase Notice within 10
days of receipt of the                     Sale Notice and, in the event Intel is the
Transferor, the Offerees will be                     required to provide Intel with a
Purchase Notice within 10 days of receipt of                     the Sale Notice. 

	 	(f) 	Thereafter,
the Company shall give each Buyer who has fully exercised his rights
                    pursuant to Article 29(e) a written notice, with a copy to the
Transferor                     (the “Excess Notice”) stating the
amount of Offered                     Shares with respect to which no Purchase Notice was
submitted (hereinafter                     referred to as “Excess Offered Shares”)
and each such Buyer                     shall be entitled, subject to Article 29(j)
below, provided he so notifies the                     Transferor and the Company in
writing (the “Excess Reply                     Notice”), such Excess
Reply Notice to be received by the Transferor                     within 7 Business Days
following the delivery to such Buyer of the Excess                     Notice, to
purchase any or all of such Excess Offered Shares. 

	 	(g) 	If
by the end of the time referred to in Articles 29(e) and 29(f) above no
                    Purchase Notices have been received by the Company or the Company has
received                     Purchase Notices with respect to a total number of shares
that is less than the                     number of Offered Shares, the Transferor may,
within 30 days from the expiration                     of the time for submission of the
Purchase Notices or, in the event that Article                     29(f) applies, the
Excess Reply Notice, sell all (but not less than all) of the                     Offered
Shares to the Transferee and/or to any Buyer that submitted a Purchase
                    Notice and, if applicable, an Excess Notice, up to the number of
shares                     requested to be purchased by such Buyer (though he shall be
under no obligation                     to do so) at a price not less than the price
mentioned in the Sale Notice (as                     linked to the representative rate of
the U.S. dollar from the day of the                     furnishing of the notice to the
date of sale in fact) and upon all other                     conditions not less
favorable to the Transferor than those provided for in the                     Sales
Notice. 

	 	(h) 	If
the Transferor shall not transfer the Offered Shares as aforesaid, within the
                    period of time specified in Articles 29(e), (f) and (g) above,
he shall be                     obligated, before selling the Offered Shares to another,
to offer them again to                     the Offerees in accordance with the
aforementioned procedure, and such procedure                     shall apply to any
further offer. 

	 	(i) 	If
there have been received Purchase Notices and, if applicable, Excess Reply
                    Notices, for a total number of shares equal to the number of Offered
Shares,                     then every Buyer shall buy the number of shares as mentioned
in the Purchase                     Notice and, if applicable, the Excess Reply Notices,
he has submitted. 

- 20 -

	 	(j) 	If
Purchase Notices and Excess Reply Notices shall have been received for a
                    total number of shares greater than the number of Offered Shares, the
Buyers may                     acquire shares in a manner proportionate to the share
capital of the Company                     held by them at that time, as determined in
accordance with Article 29(e)                     above. However, no Buyer shall be
required to buy a greater number of shares                     than the number provided
for in the Purchase Notice and, if applicable, the                     Excess Reply
Notice, submitted by him and upon the allocation to him of the full
                    number of Offered Shares so requested by him in the Purchase Notice,
such Buyer                     shall be disregarded for the purpose of any further
allocation of the remaining                     Excess Offered Shares. 

	 	(k) 	In
every one of the events referred to in Articles 29(e), 29(f), 29(g),
                    29(h), 29(j) and 29(i) the Company shall send within five (5) days
after the                     last date for the submission of each of the Purchase
Notices and the Excess                     Reply Notices to each of the Buyers (with a
copy to the Transferor), a notice                     accompanied by the copies of all
Purchase Notices received by the Company of                     either non-acceptance of
the offer pursuant to the Sale Notice or the acceptance                     thereof
(hereinafter the “Acquisition Notice”). 

	 	(l) 	After
receipt of the Acquisition Notice notifying acceptance, each Buyer shall
                    purchase from the Transferor, and the Transferor shall sell and
transfer to such                     Buyer the number of shares referred to in such
notice according to the terms of                     the Sale Notice (other than in
circumstances set forth in Article 29(g)                     above, in which case
the provisions of said Article 29(g) will apply). Upon                     the
transfer to Buyer such shares must be free and clear of any liens or
                    encumbrances unless otherwise specified in the Sale Notice. The
Transferor and                     such Buyer shall each have all remedies for breach of
contract available under                     applicable laws in connection with the
transactions set forth in this                     Article 29. 

	 	(m) 	Any
Transfer of shares by any Offeree pursuant to the exercise of its co-sale
                    rights under Article 29A shall not give the other Offerees additional
rights of                     first refusal and shall be deemed to have been part of the
Offered Shares and                     included in the Sale Notice to the extent that the
number of the shares being                     Transferred has not changed as a result of
the exercise of co-sale rights. To                     the extent such number has
changed, the provisions hereof shall apply to the                     transaction again,
ab initio, and the Transferor shall give a new Sale Notice                     hereunder. 

	29A  	CO
SALE

	 	(a) 	Should
any holder of Preferred Shares (other than Intel) (“Selling
               Shareholder”) wish to make a Transfer, other than to a Permitted
               Transferee, then each of the holders of Preferred Shares other than Intel
(the                “Entitled Shareholders”) shall have the right to
participate in                the Selling Shareholder’s Transfer of such Offered
Shares, in accordance                with this Article 29A, pursuant to the
specified terms and conditions                stated in the Sale Notice, provided that an
Entitled Shareholder who is also an                Offeree for purposes of Article 29
above shall be entitled to elect whether to                exercise its rights under
either Article 29 or Article 29A and shall not be                entitled to contingently
exercise its rights under both such articles. Each of                the Entitled
Shareholders shall be entitled, upon written notice to the Company                and the
Selling Shareholder within twenty-one (21) Business Days after receipt                of
the Sales Notice (“Participating Preferred  Shareholders”),
               to sell to the Transferee up to that number of the Shares in the Company
owned                by such Participating Preferred Shareholder (the “Equity
               Shares”) determined by multiplying the total number of Offered
Shares                times a fraction the numerator of which is the number of Ordinary
Shares owned                by such Participating Preferred Shareholders (on an
as-converted basis) and the                denominator of which is the total number of
Ordinary Shares owned by all                Participating Preferred Shareholders (on an
as-converted basis) and the Selling                Shareholder. Such written notice shall
indicate, subject to the terms of this                Article 29A, the number of Shares
that the Participating Preferred Shareholder                intends to transfer to the
Transferee. At the closing of the sale of the Offered                Shares to the
Transferee, the Selling Shareholder shall transfer his shares to                the
Transferee only if the Transferee concurrently therewith purchases, on the
               same terms and conditions specified in the Article 29A Notice, all of the
Shares                as to which participation notices have been delivered. 

- 21 -

	 	(b) 	Notwithstanding
the provisions of Article 29A(a), no Transfer in one transaction                or in a
series of related transactions, of shares representing more than 50% of
               the issued and outstanding shares of the Company (on an as converted
basis) may                be made, other than to a Permitted Transferee, unless the
proposed Transferee of                such shares offers to purchase the remaining issued
and outstanding shares of                the Company upon the same terms and conditions.
In such event, the consideration                payable by the Transferee shall be
distributed among all selling shareholders                participating in such Transfer
in accordance with the terms of Article 8. 

	29B  	BRING
ALONG

	 	(a) 	At
any time prior to a QIPO, in the event that: 

	 	
Shareholders
holding 60% (sixty percent) or more (the “Threshold Percent”) of the
Company’s issued and outstanding shares, on an as converted basis (the “Proposing
Shareholders”) accept an offer to affect a Merger or Acquisition (the
“Offer”); and  

	 	
Such
Merger or Acquisition is conditioned upon the consent and/or sale of all of the remaining
issued shares of the Company; then all remaining shareholders (the “Non Proposing
Shareholders”) will be required, if so demanded by the Proposing Shareholders,
to vote in favor of, execute the relevant documents, and otherwise take all necessary and
reasonable actions relating to such Offer, including to sell their shares upon the same
terms and conditions as in the Offer made to the Proposing Shareholders and the proceeds
shall be allocated in accordance with the provisions of Article 8. In the event that the
Threshold Percent is met, any sale, assignment, transfer, pledge, hypothecation,
mortgage, disposal or encumbrance of the Shares by the Non Proposing Shareholders other
than in connection with the Offer, shall be absolutely prohibited.  

	 	(a)(1) 	Without
derogating from the aforesaid and in addition to it, the majority
                    required for a forced sale pursuant to Section 341 of the Companies
Law shall be                     60% of the issued and outstanding share capital of the
Company, on an as                     converted basis (with no need for a separate
consent of each class). The                     distribution of the consideration in such
transaction shall be in accordance                     with the provisions of Article 8. 

	 	(b) 	Notwithstanding
the foregoing, the obligation of Intel to sell its shares (the                     “Transaction”)
pursuant to this Article 29B shall be subject to the                     satisfaction of
each of the following conditions: 

- 22 -

	 	(i) 	Form
of Consideration. Intel shall not be required to accept any
               consideration for its shares other than cash or freely tradeable equity
               securities (subject to a lock-up period of no more than 90 days following
the                issuance of such securities to Intel) which have been admitted to or
listed upon                (i) the Official List of the UK Listing Authority or (ii) the
New York or                American Stock Exchange or the NASDAQ National Market in the
United States of                America or (iii) the Geregelter Markt or (iv) Euronext
Paris S.A. or (v) such                other stock exchange as Intel may agree.  

	 	(ii) 	Equal
Consideration. Subject to section (iii) below, upon the                consummation
of the Transaction, all of the holders of Preferred Shares will                receive
the same form and amount of consideration per Preferred Share,
               respectively, taking into account any liquidation preference to which the
               holders of Preferred Shares are entitled, and if any holders of Preferred
Shares                are given an option as to the form and amount of consideration to
be received,                all holders will be given the same option.  

	 	(iii) 	Costs/Expenses.
Intel shall not be required to incur any costs or                expenses (without
limitation whether by way of out of pocket expenses or by way                of set off)
in connection with the Transaction except its pro rata share of any                costs
incurred for the benefit of all of the Company’s shareholders and for
               which Intel has agreed in writing to be responsible in advance of such
costs                being incurred. For the avoidance of doubt Intel shall be solely
responsible for                any costs that it decides to incur including the costs of
its own counsel.  

	 	(iv) 	Representations,
Warranties and Indemnities. The only representations,                warranties or
indemnities that Intel shall be required to make in connection                with the
Transaction are representations, warranties and indemnities concerning                (i)
legal ownership of the Company’s securities to be sold by Intel (the
               “Intel Securities”), and (ii) the corporate authority of
Intel                to convey title to the Intel Securities, and the ability to do so
free and clear                of liens, encumbrances or adverse claims (the “Intel
Required                Obligations”). The Intel Required Obligations shall be
in the same form                as those to be given by each of the other shareholders of
the Company and shall                be given by Intel on a several (but not joint) basis
only.  

	 	(v) 	Liability.
Intel shall not accept, assume or be deemed to have assumed                any joint, or
joint and several, liability with any other shareholder(s), the                Company or
any other party, with respect to any representation, warranty,                indemnity,
covenant or combination thereof made by such other shareholder(s),                the
Company or other party in connection with the Transaction. Intel’s
               liability shall in any event be limited to the amount of consideration
actually                received by Intel in cleared funds.  

	 	(vi) 	Escrow
and Liability upon Escrow. In the event that consideration for any                of
the shares in the Company is to be placed in escrow (the “Escrow Amount”),
such Escrow Amount will not exceed 15% of the total                consideration payable
to all shareholders of the Company and that the Escrow                Amount, to the
extent that no claim has been made against it and for such amount                as might
remain following such claim, will be released to the shareholders at                the
latest three (3) months following the end of the acquiring company’s
               first accounting period after the consummation of the transfer of Intel’s
               shares or eighteen (18) months after the consummation of such transfer
(the                later of the two). Intel’s liability shall be limited to its pro
rata share                of the Escrow Amount (Intel’s pro rata share to be
calculated on the basis                of the consideration due to Intel as a proportion
of the aggregate consideration                due to all shareholders in the Company).
For the avoidance of doubt, the Escrow                Amount may be used to satisfy
claims arising out of breaches by the Company of                representations and
warranties given by the Company in connection with a                Transaction, all
subject to the foregoing terms and conditions.  

- 23 -

	 	(vii) 	US
Securities. If the consideration proposed for Intel’s shares is
               in the form of securities of an issuer incorporated in the United States,
Intel                shall not be obligated to participate in the Transaction unless it
is provided                an opinion of counsel to the effect that the sale in
connection with such                Transaction is not in violation of the registration
or qualification                requirements of federal or applicable state securities
laws in the United                States, or, if Intel is not provided with such an
opinion, the Company shall                indemnify Intel for any violation.  

	 	(vii) 	Other
Agreements. Intel shall not be required to amend, extend or                terminate
any contractual or other relationship with the Company, the acquirer                or
their respective affiliates.  

	 	(viii) 	Covenant
Not to Compete. Intel shall not be required to agree to any                covenants
including without limitation any covenant not to compete or any                covenant
not to solicit any of the customers, employees or suppliers of any                party
to the Transaction.  

	 	
Furthermore,
notwithstanding the foregoing, the obligation of Orbotech to sell its shares (the “OrbotechTransaction”)
pursuant to this Article 29B shall be subject to the condition that the only
representations, warranties or indemnities that Orbotech shall be required to make in
connection with the Orbotech Transaction are representations, warranties and indemnities
concerning (i) legal ownership of the Company’s securities to be sold by Orbotech
(the “Orbotech Securities”), and (ii) the corporate authority of
Orbotech to convey title to the Orbotech Securities, and the ability to do so free and
clear of liens, encumbrances or adverse claims (the “Orbotech Required Obligations”).
The Orbotech Required Obligations shall be in the same form as those to be given by each
of the other shareholders of the Company and shall be given by Orbotech on a several (but
not joint) basis only.  

	29C.  	STAND
STILL 

	 	
Notwithstanding
anything to the contrary in these Articles, any issuance of securities by the Company, and
any sale, transfer, pledge, encumbrance or other disposal of any of the securities of the
Company (by the Company or any shareholder), or any other action (including repurchase of
any shares of the Company by the Company or by any subsidiary thereof), other than any
action in which the provisions of Article 29B (Bring Along) shall apply, which results in
a Strategic Investor (as defined below) whether or not a shareholder of the Company,
holding (together with affiliates, Permitted Transferees, or other parties acting in
concert with it) more than 20% of the voting rights in the Company, is prohibited unless
approved in writing in advance by the Majority Preferred Shareholders (excluding, for the
purposes of such majority, any Strategic Investors and their affiliates and Permitted
Transferees or other parties acting in concert with them) and on terms and conditions
approved by them. Any of the transactions set forth in the forgoing sentence not so
approved shall be null and void and shall not be registered in the Company’s
Shareholders Register. For purpose hereof a “Strategic Investor” shall mean a
corporation or other business entity whose business is related to the Company’s
business and who is likely to have a business or technologic interest in the
Company’s business, as distinguished from an interest for the sole purpose of a
financial investment. 

- 24 -

CALLS 

	30. 	A
shareholder shall not be entitled to receive dividends nor to use any right a
          shareholder has, or receive any benefit or entitlement stated in these Articles
          (including without limitation, the rights set forth in Articles 7, 8, 11, 12,
          14, 29, 29A, 65 and 86 hereof), unless he has paid all the calls that shall be
          made from time to time prior to or on the date appointed for payment thereof,
          with respect of money unpaid on all of his shares, whether he is the sole
holder           or holds the shares together with another person, in addition to
interest and           expenses if there shall be any. 

	31. 	The
Board may, subject to the provisions of these Articles or any agreement with
          the applicable shareholders, make calls upon the shareholders from time to time
          in respect of any moneys unpaid on their shares, as they shall determine
proper,           upon the condition that there shall be given prior notice of fourteen
(14) days           on every call and each shareholder shall be obligated to pay the
total amount           requested from him, or the installment on account of the call (if
there shall so           be) at the times and places to be determined by the Board. 

	32. 	The
calls for payment shall be deemed to have been requested from the date the
          Board shall have decided upon the calls for payment. 

	33. 	The
joint holders of a share shall be jointly and severally liable to pay the           calls
for payment in full and the installment on account, in connection with           such
calls. 

	34. 	If
a sum called in respect of a share is not paid the holders of the share or           the
person to whom it has been issued shall be liable to pay interest and           linkage
differentials upon the amount of the call or the payments on account, as
          determined by the Board of Directors commencing from the day appointed for the
          payment thereof to the time of actual payment, but the Board shall be at
liberty           to waiver payment of that interest, wholly or in part. 

	35. 	Any
amount that according to the condition of issuance of a share must be paid           at
the time of issuance or at a fixed date, whether on account of the sum of the
          share or premium, shall be deemed for the purposes of these Articles to be a
          call of payment that was made duly and the date of payment shall be the date
          appointed for payment. In the event of non-payment of this amount all of the
          Articles herein dealing with payment of interest, expenses, forfeiture, pledge
          and the like and all the other Articles connected therewith, shall apply, as if
          this sum had been duly requested and notice had been given, as aforesaid. 

- 25 -

	36. 	The
Board may make arrangements at the time of issue of shares for a difference
          between the holders with respect to the amount of calls to be paid and the
times           of payment, and the rate of interest. 

	37. 	The
Board may, if it thinks fit, receive from any shareholder willing to pay in
          advance all of the monies or a part thereof that shall be due on account of his
          shares, in addition to any amounts or a part thereof that shall be due on
          account of his shares, in addition to any amounts that the payment in fact has
          been requested and they shall be permitted to pay him interest at the rate the
          Board and shareholders shall agree upon, for the amounts paid in advance as
          aforesaid, or upon the part thereof which is in excess of the amounts whose
          payment was at the time requested on account of his shares in connection with
          which the payments have been made in advance, in addition to paying dividends
          that will be paid for that part of the share which has been paid in advance.
The           Board of Directors may at any time repay any amount so advanced without
premium           or penalty by giving such shareholder seven days’ prior notice in
writing.           Nothing in this Article 37 shall derogate from the right of the Board
of           Directors to make any call before or after receipt by the Company of any
such           advance. 

FORFEITURE OF SHARES 

	38. 	If
a shareholder fails to pay any call or installment of a call on the day
          appointed for payment thereof, the Board may, at any time thereafter during
such           time as any part of such call or installment remains unpaid, serve a
notice on           him requiring payment of so much of the call or installment as is
unpaid,           together with any interest which may have accrued and any expenses that
were           incurred as a result of such non-payment. 

	39. 	The
notice shall name a further day, not earlier than the expiration of seven           days
from the date of the notice, on or before which the amount of the call or
          installment or a part thereof is to be made together with interest and any
          expenses incurred as a result of such non-payment. The notice shall also state
          the place the payment is to be made and that in the event of non-payment, at or
          before the time appointed, the shares in respect of which the call was made
will           be liable to be forfeited. 

	40. 	If
the requirements of any such notice as aforesaid are not complied with, any
          share in respect of which the notice has been given may at any time thereafter,
          before the payment required by the notice has been made, be forfeited by a
          resolution of the Board to that effect. In such event, the provisions of
Section           181 of the Companies Law shall apply, and the shares so forfeited shall
be           “dormant shares” as provided for therein. The forfeiture shall
include           those dividends that were declared but not yet distributed, with
respect to the           forfeited shares. 

	41. 	A
share so forfeited shall be deemed to be the property of the Company and can           be
sold or otherwise disposed of, on such terms and in such manner as the Board
          thinks fit, subject to applicable law. Such shares shall not be deemed, for the
          purposes of these Articles, to comprise part of the issued and outstanding
share           capital of the Company, and shall be disregarded for the purposes of
          calculations based thereon. At any time before a sale or disposition the
          forfeiture may be canceled on such terms as the Board thinks fit. 

	42. 	A
person whose shares have been forfeited shall cease to be a shareholder in
          respect of the forfeited shares, but shall notwithstanding remain liable to pay
          to the Company all monies which, at the date of forfeiture, were presently
          payable by him to the Company in respect of the shares, but his liability shall
          cease if and when the Company receives payment in full of all moneys that, at
          the date of forfeiture, were presently payable by him to the Company in respect
          of the shares (including interest and expenses). 

- 26 -

	43. 	Without
derogating from Article 30 above, the forfeiture of a share shall cause,           at the
time of forfeiture, the cancellation of all rights in the Company or any           claim
or demand against it with respect to that share and the other rights and
          obligations between the share owner and the Company accompanying the share,
          except for those rights and obligations not included in such a cancellation
          according to these Articles or that the Companies Law imposes upon former
          shareholders. 

     	44.	
          The provisions of these Articles as to forfeiture shall apply in the case of
          non-payment of any sum which, by the terms of issue of a share, becomes payable
          at a fixed time, whether on account of the nominal value amount of the share, or
          by way of premium, as if the same had been payable by virtue of a call duly made
          and notified. 

          

MODIFICATION OF CAPITAL 

	45.  	Subject
to the provisions of Article 12 above and to any applicable law, the
                    Company may, from time to time, by resolution duly adopted according
to these                     Articles: 

	 	(a) 	consolidate
and divide all or any of its issued or unissued share capital into
                    shares of larger nominal value than its existing shares; 

	 	(b) 	cancel
any shares which have not been taken or agreed to be taken by any person; 

	 	(c) 	by
subdivision of its existing shares, or any of them, divide the whole, or any
                    part, of its share capital into shares of smaller amounts than is
fixed by the                     Memorandum of Association in a manner that with respect
to the shares created as                     a result of the division it will be possible
within the resolution of division                     to grant to one or more shares a
preferable right or advantage with respect to                     dividend, capital,
voting or otherwise over the remaining share or other similar                     shares; 

	 	(d) 	reduce
its share capital and any fund reserved for capital redemption in the
                    manner that it shall deem to be correct. 

INCREASE OF SHARE CAPITAL 

	46. 	Subject
to the provisions of Article 12 above and to any applicable law, the           Company
shall be permitted from time to time, by resolution duly adopted           according to
these Articles, to increase its share capital – whether or not           all its
shares have been issued, or whether the shares issued have been paid in           full
– by creation of new shares. This new capital shall be in such an           amount,
divided into shares in such amounts and have such preferable or deferred           or
other special rights (subject always to the special rights conferred upon an
          existing class of share), subject to any condition and restrictions with
respect           to dividends, return of capital, voting or otherwise, all as shall be
directed           by the general meeting in its resolution sanctioning the increase of
the share           capital. 

- 27 -

	47. 	Subject
to any decision to the contrary in the resolution sanctioning the           increase in
share capital, pursuant to these Articles, the new share capital           shall be
deemed to be part of the original share capital of the Company and           shall be
subject to the same provisions with reference to payment of calls,           liens,
title, forfeiture, transfer and otherwise as apply to the original share
          capital. 

GENERAL MEETINGS 

	48. 	A
general meeting shall be held once in every calendar year at such time, being
          not more than fifteen months after the holding of the last preceding general
          meeting, and place as may be prescribed by the Board. The above mentioned
          general meetings shall be called “Annual General Meetings”. All other
          general meetings shall be called “Special General Meetings”. 

	49. 	Subject
to the provisions of these Articles the function of the Annual General           Meeting
shall be to receive and to deliberate with respect to the profit and           loss
statements, the balance sheets, the ordinary reports and accounts of the           Board
and auditors; to declare dividends, to appoint auditors and to fix their
          salaries. Every other matter shall be deemed to be special and shall be
          discussed at a Special General Meeting. 

	50. 	The
directors or anyone of them may, whenever they think fit, and upon a
          requisition in writing as provided for in the Companies Law, convene a Special
          General Meeting. Every such requisition shall include the objects for which a
          meeting should be convened, shall be signed by the requisitioners and shall be
          sent to the registered Office of the Company. If the Board of Directors does
not           convene a meeting within 21 days from the date of the submission of the
          requisition as aforesaid, the requisitioners may convene by themselves a
          meeting. However, the meeting which was so convened shall not be held after
          three months have passed since the date of the submission of the requisition. 

NOTICE OF GENERAL MEETINGS 

	51. 	A
prior notice of 14 (fourteen) days at least shall be sufficient for any           general
meeting, including any meeting at which it is being proposed to amend           the
Memorandum of Association and/or Articles of Association and, accordingly,
          prior notice of at least 14 days shall be given with respect to the place, date
          and hour of the meeting, and in the event that a special matter shall be
          discussed, a general description of the nature of that matter. The notice shall
          be given, as herein below provided for, to the shareholders entitled pursuant
to           these Articles to vote at the meeting. The notice shall be sufficient for
any           meeting of shareholders including a meeting at which it is proposed to
amend the           Memorandum of Association and/or Articles of Association. If, by
chance, a           notice as aforesaid was not given or not received by a shareholder,
this shall           not amount to a disqualification of the resolution passed or
disqualification of           the proceedings held at that meeting. With the consent of
all the shareholders           who are entitled, at that time, to vote, it shall be
permitted to convene all           meetings and to resolve all types of resolutions, upon
a shorter advance notice           or without any notice and in such manner, generally,
as such be approved by the           shareholders. 

QUORUM 

	52. 	No
deliberation shall be commenced with respect to any matter at the general or
          special meeting unless there shall be present a quorum at the time when the
          general meeting proceeds to deliberate. In any meeting a quorum shall be formed
          when there are present personally or by proxy not less than two shareholders
who           hold or represent together the majority of the voting rights of the issued
share           capital of the Company, providing that one of such two shareholders
present           shall be a holder of Preferred Share(s) of the Company. 

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	53. 	If
within half an hour from the time appointed for the meeting a quorum is not
          present, the meeting, if convened by the Board upon the demand of shareholders
          or upon the demand of less than 50% of the directors then in office or directly
          by such shareholders or directors, shall be cancelled. Otherwise, if within
half           an hour from the time appointed for the meeting a quorum is not present,
the           meeting shall stand adjourned to the same day in the next week at the same
place           and time, or any other day and/or any other hour and/or any other place
as the           Board shall notify the shareholders, and, if at the second meeting a
quorum is           not present within half an hour from the time appointed for the
meeting any two           shareholders present personally or by proxy shall be a quorum,
and shall be           entitled to deliberate and to resolve in respect of the matters
for which the           meeting was convened. Shareholders may participate by means of
conference           telephone or similar communications equipment by means of which all
persons           participating in the meeting can hear each other, and such
participation in a           meeting shall constitute attendance in person at the
meeting. The secretary of           the meeting shall confirm attendance by telephone to
the Chairman. 

CHAIRMAN 

	54. 	The
Chairman of the Board of Directors shall preside as chairman at all general
          meetings. If there is no Chairman or he is not present within 15 minutes from
          the time appointed for the meeting or if he shall refuse to preside at the
          meeting, the shareholders present shall elect one of the directors to act as
          Chairman, and if only one director is present he shall act as Chairman. If no
          directors are present or if they all refuse to preside at the meeting the
          shareholders present shall elect one of the shareholders present to preside at
          the meeting. The Chairman shall have no special rights or privileges and no
          second or casting vote. 

POWER TO ADJOURN 

	55. 	The
Chairman may, with the consent of any meeting at which a quorum is present,           and
shall if so directed by the meeting, adjourn the meeting from time to time           and
from place to place, as the meeting shall decide. At an adjourned meeting no
          matters shall be discussed except for those permissible to be discussed at that
          meeting which decided upon the adjournment. 

ADOPTION OF RESOLUTIONS 

	56. 	At
every meeting a resolution put to the vote of the meeting shall be decided           upon
by a show of hands, unless before or upon the declaration of the result of           the
show of hands a secret ballot in writing be demanded by the Chairman (if he           is
entitled to vote) or by any shareholder present, in person or by proxy, and
          entitled to vote at the meeting. Except if a secret vote is demanded as
          aforesaid, the declaration of the Chairman that the resolution has been carried
          or carried unanimously or by a particular majority, or lost, or not carried by
a           particular majority, shall be final, and an entry to that effect in the
minute           book of the Company, shall be conclusive evidence of the fact without
the           necessity of proving the number or proportion of the votes recorded in
favor or           against such a resolution. Subject to any provision in this regard in
the           Companies Law, or in these Articles, all resolutions of the shareholders
          including without limitation with respect to a merger, a change of the
          Company’s name, modification or alterations of the Company’s share
          capital and the amendment of the Company’s Memorandum of Association in
          accordance with such resolution and the amendment or replacement of the
          Company’s Articles of Association shall be deemed adopted at a General
          Meeting at which a quorum is present if approved by a simple majority of the
          voting rights of the Company represented personally or by proxy and voting
          thereon (excluding abstentions). 

- 29 -

	57. 	If
a secret ballot is duly demanded, it shall be taken in such manner as the
          Chairman directs, whether immediately or after an adjournment or in a postponed
          manner or otherwise, and the results of the ballot shall be deemed to be a
          resolution of the meeting wherein the secret ballot was demanded. Those
          requesting a secret ballot can withdraw their request at any time before the
          secret ballot is held. A secret ballot demanded on the election of a Chairman,
          or on a question of adjournment shall be taken forthwith. A secret ballot
          demanded on any other question shall be taken at such time as the Chairman of
          the meeting directs. A demand for a secret ballot shall not prevent the
          continuation of the meeting with respect to the transaction of any other
          business, except for the manner with respect to which the secret ballot was
          demanded. All demands or notices hereunder may be submitted by facsimile. 

VOTES OF SHAREHOLDERS 

	58.  	Subject
to and without derogating from the right or preference rights or
                    restrictions existing at that time with respect to a certain class of
shares                     forming of the capital of the Company, each shareholder
present at a meeting,                     personally or by proxy, shall be entitled,
whether at a vote by show of hands or                     by secret ballot, to one vote
for each Ordinary Share held by him calculated,                     with respect to the
Preferred Shares, on an as-converted basis, provided that no
                    shareholder shall be permitted to vote any shares at a general
meeting or                     appoint a proxy to vote therein except if he has paid all
calls for payment                     prior to or on the day appointed for payment
thereof and all monies due to the                     Company from him prior to or on the
day appointed for payment thereof with                     respect to such shares. 

	59.  	In
the case of joint holders the vote of the senior who tenders a vote, whether
                    in person or by proxy, shall be accepted to the exclusion of the
votes of the                     other joint holders; and for the purpose of this article
seniority shall be                     determined by the order in which the names stand
in the register of                     shareholders. Joint holders of a share of which
one of them is present at a                     meeting shall not vote by proxy. The
appointment of a proxy to vote on behalf of                     a share held by joint
holders shall be executed by the signature of the senior                     of the joint
holders. 

	60.  	PROXIES 

	 	(a) 	In
every vote a shareholder shall be entitled to vote either personally or by
                    proxy. A proxy present at a meeting shall also be entitled to request
a secret                     ballot. A proxy need not be a shareholder of the Company. 

	 	(b) 	A
shareholder of the Company that is a corporation or partnership shall be
                    entitled by decision of its Board of Directors or by a decision of a
person or                     other duly authorized body, to appoint a person who it
shall deem fit to be its                     representative at every meeting of the
Company. The representative, appointed as                     aforesaid, shall be
entitled to perform on behalf of the corporation he                     represents all
the powers that the corporation itself may use just as if it was                     a
person. 

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	61.  	 (a) 	
A vote pursuant to an instruction appointing a proxy shall be valid
                    notwithstanding the death of the appointor or the appointor becoming
of unsound                     mind or the cancellation of the proxy or its expiration in
accordance with any                     law, or the transfer of the shares with respect
to which the proxy was given,                     unless a notice in writing was given of
the death, becoming of unsound mind,                     cancellation or transfer and was
received at the Office before the meeting took                     place. 

	 	(b) 	A
shareholder is entitled to vote by a separate proxy with respect to each share
                    held by him provided that each proxy as aforesaid shall have a
separate letter                     of appointment containing the serial number of the
shares with respect to which                     the proxy is entitled to vote. If a
specific share is included by the holder in                     more than one letter of
appointment, that share shall not entitle any of the                     holders of such
instrument to a vote. 

INSTRUMENT OF APPOINTMENT 

	62. 	A
letter of appointment of a proxy or power of attorney or other certificate (if
          there shall be such) pursuant to which the appointee is acting, shall be in
          writing and such instrument or a copy thereof shall be deposited in the Office,
          or in another place in Israel or abroad – as the Board shall direct from
          time to time generally or with respect to a particular case, no later than upon
          the commencement of the meeting or adjourned meeting wherein the person
referred           to in the instrument is appointed to vote, otherwise that person shall
not be           entitled to vote that share. An instrument appointing a proxy and which
is not           limited in time or by the occurrence of an event (such as an IPO) shall
not be           valid 12 months after the date of its execution. If the appointment
shall be for           a limited period or until the occurrence of an event (such as an
IPO), the           instrument shall be valid for the period or until the occurrence of
the event           contained therein. 

	63. 	An
instrument appointing a proxy (whether for a specific meeting or otherwise)           may
be in the following form or in any other similar form which the           circumstances
shall permit: 

“I, ______________, of
______________, a shareholder holding shares in ____________ and entitled to _______
votes hereby appoint ________________, of ____________, or in his place ______________,
of _______________, to vote in my name and in my place at the general meeting (annual,
special, adjourned – as the case may be) of the Company to be held on the ____ day
of __________, 2___ and at any adjournment thereof.  

In witness whereof, I have hereby
affixed my signature the ___ day of __________, 2___. 

Appointor’s Signature 

	64.  	RESERVED. 

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	65.  	DIRECTORS 

	 	(a) 	The
Board of Directors shall consist of up to eight (8) members who shall be
                    appointed as follows: 

	 	(1) 	each
of Pitango, Star, Genesis, Poalim Ventures and Wellington shall be           entitled to
appoint one (1) director to the Board of Directors of the Company           for so long
as it holds Preferred Shares constituting more than 5% of the issued           and
outstanding share capital of the Company, on an as converted basis;  

	 	(2) 	the
majority of the directors appointed pursuant to Article 65(a)(1) above           shall be
entitled to appoint up to three (3) directors, who shall be industry           experts
(andmay include the Chief Executive Officer (“CEO”) of           the
Company); and  

	 	(b) 	Amadeus
shall be entitled to appoint one (1) observer to the Board for so long
                    as it holds Preferred Shares constituting more than 5% of the issued
and                     outstanding share capital of the Company, on as converted basis. 

	 	(c) 	Observers
to the Board of Directors shall be entitled to attend all Board of
                    Directors meetings and in this capacity, to receive all notices of
meetings and                     any documentation the Company provides to the Company’s
directors before,                     during or after such meetings, subject to
restrictions relating to                     attorney-client privilege or conflict of
interests, and shall be subject (other                     than an observer appointed by
Intel) (if any) to the same fiduciary duties that                     apply to members of
the Board of Directors. 

	 	(d) 	The
provisions of this Article 65 shall be in force until a QIPO. 

	66.  	(a)  	
The directors and observers shall be appointed as set forth in                     Article 65
and may be removed and vacancies filled by those entitled to                     appoint,
as specified in Article 65. Notice of appointment or removal shall
                    become effective on the date fixed in the notice of appointment or
removal, or                     upon delivery thereof to the Company, whichever is later.
For avoidance of                     doubt, in the event that a seat of the Board of
Directors is vacated, and no one                     is entitled to replace such vacated
seat, then such vacated seat shall remain                     vacant and the number of
directors shall be reduced accordingly. 

	 	(b) 	If
the office of any member of the Board of Directors is vacated, the other
                    members of the Board of Directors may act in every way and manner so
long as                     their number does not fall below two, at least one of which
was appointed by the                     holders of the Preferred Shares. If their number
falls below two, or if there                     are only two directors but none of them
were appointed by the holder of the                     Preferred Shares, they may act
only in an emergency, for convening General                     Meetings and for
providing written notice to those shareholders or groups of
                    shareholders who are entitled to fill the vacancies, of such
vacancies. In the                     event that within 10 days following mailing of such
written notices the                     vacancies are not filled, the directors in
office, whatever their number or by                     whom appointed, may act in every
way and manner. 

	67. 	Subject
to the provisions of these Articles or to the provisions of an existing
          contract, the tenure of office or the director shall automatically be
          terminated: 

	 	(1) 	if
he becomes bankrupt; 

- 32 -

	 	(2) 	if
he is declared lunatic or becomes of unsound mind; 

	 	(3) 	if
he has resigned by an instrument in writing to the Company; 

	 	(4) 	if
he is removed from office pursuant to Articles 65 and 66 above; 

	 	(5) 	with
his death; 

	 	(6) 	if
he is the CEO, upon termination of his position as CEO (or earlier, if
                    removed pursuant to Articles 65 and 66 above, as aforesaid); or 

	 	(7) 	if
a company, with its liquidation. 

	68.  	ALTERNATIVE
DIRECTOR 

	 	(a) 	Any
person who is qualified to be appointed as a Director may serve as a
                    substitute director even if he is a member of the Board of Directors
or a                     substitute Director, (hereinafter “substitute”). 

	 	(b) 	A
substitute shall have one vote. 

	 	(c) 	A
substitute shall have, subject to the provisions of the instrument by which he
                    was appointed, all the powers and authorities that the director for
which he is                     serving as director, has. 

	 	(d) 	The
provision of this Article with respect to the appointment of a director
                    shall apply with respect to an appointment of a substitute. 

	 	(e) 	The
office of a substitute director shall be automatically vacated if his
                    appointment is terminated by the director who appointed him in
accordance with                     these regulations, or upon the occurrence of one of
the events described in                     Articles (1), (2), (3), (5), (6) or (7) of
Article 67 or, if the office of                     the member of the Board of
Directors with respect to whom he serves as a                     substitute shall be
vacated for any reason whatsoever. 

	 	(f) 	The
substitute director has the right to receive notice of convening of a Board
                    of Directors meeting and may participate or vote at such meeting only
if the                     director appointing said substitute is absent from said
meeting. 

	69.  	REMUNERATION
OF DIRECTOR 

	 	
Members
of the Board of Directors, not being employees of the Company or professionals providing
special professional services for consideration to its members, shall not receive a salary
from funds of the Company unless the general meeting has so decided and in the amount that
the general meeting shall decide upon. The directors, and their substitutes, shall be
entitled to receive expenses, in an acceptable rate, for travel expenses, board and
lodging that have been expended for or during the performance of their duties as
directors, and including travel expenses to the Board meetings and return. If pursuant to
a decision of the Board, one of the directors shall perform services or tasks aside from
his regular duties as a director, whether as a result of his particular profession or by a
trip or stay abroad or otherwise, the Board may decide to pay him a preferred wage in
addition to his regular salary, and such a wage shall be paid by way of salary,
commission, participation in profits or otherwise and this wage shall be in addition to
his regular salary, if there shall be any, or will be in place thereof, as shall be
decided. 

- 33 -

	70.  	POWER
AND DUTIES 

	 	
The
management of the business of the Company shall be vested in the Board of Directors. They
shall be entitled to exercise all the powers and authorities that the Company has and to
perform in its name all the acts that it is entitled to do according to its memorandum of
association and/or Articles and/or the Companies Law except for those which are pursuant
to the Companies Law or the Articles vested in the general meeting of the Company, subject
to any provisions in the Companies Law or in these Articles or the regulations that the
Company shall adopt in its general meeting (insofar as they do not contradict the
Companies Law or these Articles). However any article adopted by the Company in its
general meeting shall not affect the legality of any prior act of the Board that would be
legal and valid, if not for such an article. 

	71.  	A
director shall not be required to hold qualifying shares. 

CONFLICT OF INTEREST 

	72. 	A
director shall not be prohibited from fulfilling his rights and duties under
          these Articles or from entering into contracts with the Company whether as a
          seller, buyer or otherwise, and no such contract or arrangement which shall be
          made on behalf of the Company or in its name wherein the director is or will be
          an interested party, either directly or indirectly, shall be void provided,
          however that: 

	 	(a)	any
transaction between a director and the Company must be approved both by the
          Board of Directors and the Audit Committee of the Company, or, if no Audit
          Committee has been created, by the General Meeting; 

	 	(b)	the
interested director may not participate or vote at the Board of Directors at
          which approval is sought unless all other directors are interested directors,
          but shall be counted toward the quorum necessary for commencing deliberations
at           such meeting; and 

	 	(c)	the
interested director must, in addition to disclosing the substance of his
          interest in the transaction for which approval is sought, also disclose any
          material facts and documents relating thereto. The provisions of this article
          shall apply also to a substitute or alternate director, if it is appropriate. 

	73. 	A
director may hold another paid position or function in the Company or in any
          other company that the Company is a shareholder of or that it has some other
          interest in, together with his position as a director (except an auditor) upon
          those conditions with respect to salary and other matters as decided by the
          Board. 

	74. 	FUNCTIONS
OF THE DIRECTORS 

	 	
The
Board may meet in order to transact business, to adjourn its meetings or to organize them
otherwise as it shall deem fit and to determine the legal quorum necessary to conduct
business, provided that the quorum for a meeting of the Board of Directors shall consist
of at least a majority of the directors then in office. A director whose presence is
required for purposes of a quorum as aforesaid may by written notice to the Company waive
the requirement for his presence in order to constitute a quorum. If within half an hour
from the time appointed for the meeting a quorum is not present, the meeting shall stand
adjourned to the second business day following the day originally scheduled, and at such
adjourned meeting 4 directors shall constitute a quorum notwithstanding that a director
appointed by any specific shareholder or class of shareholders is not present. 

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	75.  	CHAIRMAN 

	 	
The
Board may from time to time elect, by a simple majority, a Chairman, and decide the period
of time he shall hold such an office, and he shall preside at the meetings of the Board of
Directors. However, if such a Chairman is not elected or if he is not present at any
meeting, the Board may, by a simple majority, choose one of its members to serve as
Chairman of that meeting. 

	 	
The
Chairman shall have no rights or privileges other than those granted to directors and
shall not have a second or casting vote. 

MEETINGS 

	76. 	A
member of the Board of Directors may at any time call a Board of           Directors’ meeting,
and the secretary shall be required on the request of           such member to convene a
Board of Directors’ meeting. 

	 	(a) 	Any
notice of a Board of Directors’ meeting can be given, in writing, or by
                    fax or email provided that the notice is given seven (7) days before
the time                     appointed for the meeting, unless all the members of the
Board of Directors                     having received a shorter notice, shall agree to
such a shorter notice,                     provided, however, that a four (4) days notice
will be sufficient if the                     majority of the directors then in office
agree to such shorter notice. 

	 	(b) 	Unless
otherwise provided by these Articles, all acts and determinations of the
                    Board of Directors shall be determined by a simple majority of those
attending                     and voting. 

	 	(c) 	Members
of the Board of Directors, or any committee designated by the Board of
                    Directors, may participate in a meeting of the Board of Directors, or
any                     committee, by means of conference telephone or similar
communications equipment                     by means of which all persons participating
in the meeting can hear each other,                     and such participation in a
meeting shall constitute attendance in person at the                     meeting. 

	77.  	DELEGATION
OF POWER 

	 	(a) 	Subject
to applicable law, the Board of Directors may delegate any of their
                    powers to committees consisting of such member or members of their
body as they                     deem fit and may, from time to time, revoke such
delegation. No committee of the                     Board of Directors shall be
established except by unanimous consent of all                     directors. 

	 	(b) 	In
the exercise of any power delegated to it by the Board of Directors all
                    committees shall conform to any regulations that may be imposed upon
them by the                     Board of Directors, if there shall be any such
regulation. If no such                     regulations are adopted by the Board of
Directors or if there are no complete                     and encompassing regulations,
the committees shall act pursuant to these                     Articles dealing with
organization of meetings, meetings and functions of the                     Board of
Directors, mutatis mutandis, and insofar as no provision of the Board
                    of Directors shall replace it pursuant to this article. 

- 35 -

	 	(c) 	All
actions performed in a bona fide fashion by the Board of Directors or by a
                    committee of the Board of Directors, or by any person acting as a
director or as                     a substitute shall be as valid, even if at a later
date a flaw shall be                     discovered in the appointment of such a director
or such a person acting as                     aforesaid, or that all or some of them
were unfit as if each and every one of                     those persons shall have been
duly appointed and fit to serve as a director or                     substitute as the
case may be. 

	78.  	RESERVED. 

	79.  	RESERVED. 

	80.  	GENERAL
MANAGER 

	 	(a) 	The
Board may from time to time appoint one or more persons, whether or not he
                    is a member of the Board of Directors, as the CEO of the Company,
either for a                     fixed period of time or without limiting the time that
he or they will stay in                     office, and the Board may from time to time
(subject to any provision in any                     contract between him or them and the
Company) release him or them from their                     office and appoint another or
others in his or their place. 

	 	(b) 	The
Board of Directors may from time to time grant and bestow upon the general
                    manager, at that time, those powers and authorities that it exercises
pursuant                     to these Articles, as it shall deem fit, and may grant those
powers and                     authorities for such period, and to be exercised for such
objectives and                     purposes and in such time and conditions, and on such
restrictions, as it shall                     decide; and it may grant such authorities
whether concurrently with the Board of                     Directors’ authorities in
that area, or in excess of them, or in place                     thereof or any one of
them, and it can from time to time revoke, repeal, or                     change any one
or all of those authorities. 

	 	(c) 	Notwithstanding
the aforesaid in Article 69 the wages of the general manager                     shall be
determined from time to time by the Board of Directors (subject to any
                    provision in any contract between him and the Company) and it may be
paid by way                     of a fixed salary or commission or dividends, or a
percentage of profits or the                     Company profit turnover or of any other
Company that the Company has an interest                     in, or by participation in
such profits, or in one or more of the aforementioned                     methods. 

	81.  	MINUTES 

	 	(a) 	The
Board shall cause minutes to be taken of all general meetings of the
                    Company, of the appointments of officials of the Company, of Board of
                    Directors’ meetings and of committee meetings that shall include
the                     following items, if applicable: 

	 	(1) 	the
names of the members present;  

- 36 -

	 	(2) 	the
matters discussed at the meeting;  

	 	(3) 	the
results of the vote;  

	 	(4) 	resolutions
adopted at the meeting;  

	 	(5) 	directives
given by the meeting to the committees;  

	 	(6) 	if
requested, any reservation of a shareholder or director with regard to a
                    matter discussed or resolution passed.  

	 	(b) 	The
minutes of any meeting shall serve as prima facie proof as to the facts in
                    the minutes if the minutes are reviewed and approved at the next
succeeding                     meeting and are signed by the Chairman of that next
succeeding meeting. 

	82.  	RESOLUTION
IN WRITING 

	 	
A
resolution in writing signed by all shareholders of the Company or by all the members of
the Board of Directors, or of a committee, or such a resolution that all the shareholders
of the Company then entitled to vote at General Meetings, the members of the Board of
Directors or a committee have agreed to in writing or by fax shall be valid for every
purpose as a resolution adopted at a General Meeting, Board of Directors’ or
committee meeting, as the case may be, that was duly convened and held. In place of a
shareholder or director, as the case may be, any such aforesaid resolution may be signed
and delivered by his substitute. 

	83.  	SEAL,
STAMP AND SIGNATURES 

	 	(a) 	The
Board shall cause the seal (if the Company shall have a seal) to be kept in
                    safekeeping and it shall be forbidden to use the seal unless prior
permission of                     the Board of Directors is given. If such permission was
given, the seal shall be                     affixed in the presence of whoever has been
so appointed by the Board of                     Directors, and he shall sign any
document upon which the seal has been affixed. 

	 	(b) 	The
Company shall have at least one rubber stamp. The Board shall ensure that
                    such a stamp is kept in a safe place. 

	 	(c) 	The
Board of Directors may designate and authorize any person or persons (even
                    if they are not members of the Board of Directors) to act and to sign
in the                     name of the Company, and the acts and signatures of such a
person or persons                     shall bind the Company, insofar as such persons
have acted and signed within the                     limits of their aforesaid authority. 

	 	(d) 	The
printing of the name of the Company by a typewriter or by hand next to the
                    signatures of the authorized signatories of the Company, pursuant to
sub-article                     (c) above, shall be valid as if the rubber stamp of the
Company was affixed. 

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	84.  	BRANCH
REGISTERS 

	 	
The
Company may, subject to the provisions of the Companies Law or any other applicable law
that may substitute such provisions, keep in every other country where those provisions
shall apply, a register or registers of shareholders living in that other country as
aforesaid, and to exercise any other powers referred to in the laws with respect to such
branch registers. 

	85.  	THE
SECRETARY, OFFICERS AND ATTORNEYS 

	 	(a) 	The
Board of Directors may appoint a secretary of the Company upon the
                    conditions that it deems fit. The Board may as well, from time to
time, appoint                     an associate secretary who shall be deemed to be the
secretary for the period of                     his appointment. 

	 	(b) 	The
Board of Directors may, from time to time appoint to the Company, officers,
                    workers, agents and functionaries to permanent, temporary or special
positions,                     as it shall, from time to time, see fit and set
compensation for them. 

	 	(c) 	The
Board may, at any time and from time to time, authorize any Company, firm,
                    person or group of people, whether this authorization is done by the
Board                     directly or indirectly, to be the attorneys in fact of the
Company for those                     purposes and with those powers and discretion which
shall not exceed those                     conferred upon the Board of Directors or that
the Board of Directors can                     exercise pursuant to these Articles – and
for such a period of time and                     upon such conditions as the Board deems
proper, and every such authorization may                     contain such directives as
the Board of Directors deems proper for the                     protection and benefit of
the persons dealing with such attorneys. 

	86.  	DIVIDEND 

	 	
Subject
to the provisions of the Companies Law and these Articles, including without limitation
the provisions of Articles 7, 8 and 12 and subject to any rights or conditions of
Preferred Shares and other rights and conditions attached at that time to any share in the
capital of the Company granting preferential, special or deferred rights or not granting
any rights with respect to dividends, the profits of the Company shall be distributable to
the shareholders of the Company according to the proportion of the nominal value paid up
or credited as paid up on account of the shares held by them at the date so appointed by
the Company, without regard to the premium paid in excess of the nominal value. A
distribution, setting aside or declaration of dividend requires a decision of the Board of
Directors. 

	 	
The
Board of Directors may issue any share upon the condition that a dividend shall be paid at
a certain date or that a portion of the declared dividend for a certain period shall be
paid, or that the period for which a dividend shall be paid shall commence at a certain
date, or a similar condition, all as decided by the Board of Directors. In every such case
– subject to the provision mentioned in the beginning of this article – the
dividend shall be paid in respect of such a share in accordance with such a condition. 

	87.  	Subject
to the provisions of the Companies Law, at the time of declaration of a
               dividend the Board of Directors may decide that such a dividend shall be
paid in                part or in whole, by way of distribution of certain properties,
especially by                way of distribution of fully paid up shares or debentures or
debenture stock of                the Company, or by way of distribution of fully paid up
shares or debentures or                debenture stock of any other Company or in one or
more of the aforesaid ways.                For purposes of any such distribution, the
outstanding Preferred Shares shall be                deemed to have been converted into
Ordinary Shares as of the time appointed by                the Board of Directors for the
purpose of determining entitlement to participate                in such distribution. 

- 38 -

	88.  	Any
dividends payable on shares which are not fully paid up, will be first
               applied to any unpaid amount on such shares even if such payments are not
yet                due, pursuant to the terms of issuance or as provided in these
Articles, and any                excess will be distributed to the holder of such shares
as set forth herein. 

	89.  	The
Board of Directors may put a lien on any dividend on which the Company has a
               charge, and it may use it to pay any debts, obligations or commitments
with                respect to which the charge exists. 

	90.  	A
transfer of shares shall not transfer the right to a dividend which has been
               declared after the transfer but before the registration of the transfer.
The                person registered in the register as a shareholder on the date
appointed by the                company for that purpose shall be the one entitled to
receive a dividend. 

	91.  	RESERVED. 

	92.  	A
notice of the declaration of a dividend, whether an interim dividend or
               otherwise, shall be given to the shareholders registered in the register,
in the                manner provided for in these Articles. 

	93.  	If
no other provision is given, the dividend may be paid by check or payment
               order to be mailed to the registered address of a shareholder or person
entitled                thereto in the register or, in the case of registered joint
owners, to the                addresses of one of the joint owners as registered in the
register. Every such                check shall be made out to the person it is sent to.
The receipt of the person                who, on the date of declaration of dividend, is
registered as the holder of any                share or, in the case of joint holders, of
one of the joint holders, shall serve                as a release with respect to
payments made in connection with that share. 

	94.  	 (a) 	
Subject to Article 12 above, if at any time the share capital shall be
               divided into different classes of shares, the distribution of fully paid
up                shares, from funds pursuant to Article 95 below, shall be made in one
of the two                following manners as to be decided upon by the Board: 

	 	(i) 	In
such a manner so that all the holders of a share entitled to fully paid up
                    shares shall receive one uniform class of shares; or  

	 	(ii) 	In
 such manner so that each holder of shares entitled to fully paid up shares as aforesaid
shall receive shares of the class of shares held by him and entitling him to fully paid
up shares, as aforesaid.  

	 	(b) 	In
order to give effect to any resolution in connection with the distribution of
               dividends, or distribution of property, fully paid-up shares or
debentures, the                Board of Directors may resolve any difficulty that shall
arise with distribution                as it shall deem necessary, especially to issue
certificates for fractional                shares and to determine the value of certain
property for purposes of                distribution, and to decide that payment in cash
shall be made to the                shareholder on the basis of the value decided for
that purpose, or that                fractions the value of which is less than one New
Israeli Shekel shall not be                taken into account for the purpose of
coordinating the rights of all the                parties. The Board of Directors shall
be permitted, in this regard, to grant                cash or property to trustees in
escrow for the benefit of persons entitled                thereto, as the Board shall see
beneficial. Wherever required, an agreement                shall be submitted to the
registrar of companies and the Board may appoint a                person to execute such
an agreement in the name of the persons entitled to a                dividend, property,
fully paid up shares or debentures as shares or debentures                as aforesaid,
and such an appointment shall be valid. 

- 39 -

	 	(c) 	The
Company shall not be obligated to pay interest on a dividend. 

	 	(d) 	The
Board of Directors may, with respect to all dividends not collected within
               one year after their declaration, invest or use them in another way for
the                benefit of the Company, until they shall be demanded. The Company
shall not pay                interest for dividends or interest not collected. 

	95.  	FUNDS 

	 	
The
Board may set aside from the profits of the Company the sums it deems proper, as a reserve
fund or reserve funds for extraordinary uses, or for preferred dividends or equalization
of dividends or other funds or for the purpose of correcting, bettering or retaining any
property of the Company and for those other purposes which shall, in the absolute
discretion of the Board of Directors, be beneficial to the Company and it may invest the
various sums so invested in such investments as it finds proper, and from time to time
deal with such investments, change or transfer them, in part or in whole, for the benefit
of the Company. The Board of Directors may, as well, divide any reserve liability fund to
preferred funds as it shall deem proper, transfer moneys from fund to fund and use every
fund or any part thereof in the business of the Company, without being required to keep
such sums separate from the rest of the Company’s property. The Board of Directors
may, from time to time, also transfer, to the next year, profits out of such sums which
are, in its absolute discretion, beneficial to the Company. Generally the Board of
Directors may create funds as it deems necessary, either those resulting from profits of
the Company or from re-evaluation of property, or from premiums paid for shares or from
any other source, and to use them in its discretion as it deems fit insofar as that in the
creation of such funds, the changes or uses do not exceed the provisions of the Companies
Law or accepted accounting principles. 

	96. 	All
premiums received from the issue of shares shall be capital funds and they
          shall be treated for every purpose as capital and not as profits distributable
          as dividends. The Board of Directors may organize a reserve capital liability
          account and transfer, from time to time, all such premiums to the reserve
          capital liability account or use such premiums and monies to cover depreciation
          or doubtful loss. All losses from sale of investments or other property of the
          Company shall be debited from other funds of the Company. The Board of
Directors           may use any monies credited to the capital reserve liability account
in any           manner that these Articles or the Companies Law permits. 

	97. 	Any
amounts transferred and credited to the account of income and expense fund           or
general reserve liability account or capital liability reserve account, may,
          until otherwise used in accordance with these Articles, be invested together
          with such other monies of the Company in the day to day business of the
Company,           without having to differentiate between these investments and the
investment of           the monies of the Company. 

- 40 -

	98. 	ACCOUNTS
AND AUDIT 

	 	
The
Board shall cause correct accounts to be kept:  

	 	(a) 	of
the assets and liabilities; 

	 	(b) 	of
any amount of money received or expended by the Company and the mattes for
                    which such sum of money is expended or received; and 

	 	(c) 	of
all purchases and sales made by the Company. 

	99. 	The
account books shall be kept in the Office or at such other place as the           Board
deems fit and they shall also be open for inspection by the directors. 

	100. 	The
Board of Directors shall determine from time to time, in any specific case           or
type of case, or generally, whether and to what extent and at what times and
          places and under what conditions or regulations the accounts and books of the
          Company, or any of them, shall be open for inspection by the shareholders, and
          no shareholder, not being a director, shall have any right of inspecting any
          account book or document of the Company except as conferred by law or
authorized           by the Board of Directors or by the Company in a general meeting. 

	101. 	Not
less than once a year, the Board shall submit before the Company at the           Annual
General Meeting a profit and loss account for the period after the           previous
account, and if it is the first account for the period after           registration of
the Company, it shall be prepared as of a date not more than           nine months before
the date of the meeting and in accordance with the relevant           provisions of the
Companies Law, and the Board shall submit a balance sheet that           is correct as of
the date of the profit and loss account. To the balance sheet           shall be attached
a report of the auditor and it shall be accompanied by a           report from the Board
with respect to the situation of the Company business and           the amount they
propose as a dividend and the amount (if any) that they propose           be set aside
for the fund accounts. 

	102. 	Auditors
shall be appointed and their function shall be set out in accordance           with the
Companies Law. 

NOTICES 

	102A. 	A
notice or any other document may be served by the Company upon any shareholder
          either personally or by sending it by prepaid letter, fax or e-mail addressed
to           such shareholder at his address, wherever situated, as appearing in the
register           of shareholders, provided, however that a shareholder may notify the
Company in           writing of its objection to the use of e-mail as the sole means of
notice in           which event the Company shall provide notice to such shareholder by
e-mail and           one of the other means permitted by this Article 102A. 

	103. 	All
notices directed to be given to the shareholders shall, with respect to any
          shares to which persons are jointly entitled, be given to one of the joint
          holders, and any notice so given shall be sufficient notice to the holders of
          such share. 

	104. 	Prior
and timely notice of the convening of a shareholders meeting shall be           given to
each shareholder, wherever situated, at the last address provided by           the
shareholder. Any shareholder registered in the register who shall, from time           to
time, furnish the Company with an address at which notices may be served,           shall
be entitled to receive all notices he is entitled to receive according to           these
Articles at that address. 

- 41 -

	105. 	A
notice may be given by the Company to the persons entitled to a share in
          consequence of the death or bankruptcy of a shareholder by sending it through
          the post in a prepaid letter or fax or e-mail addressed to them by name, at the
          address furnished for the purpose by the persons claiming to be so entitled or,
          until such an address has been so furnished, by giving the notice in any manner
          in which the same might have been given if the death or bankruptcy had not
          occurred. 

	106. 	Any
notice or other document, (i) if delivered personally, shall be deemed to           have
been served upon delivery, (ii) if sent by post, shall be deemed to have           been
served five (5) days after the time when the letter was delivered to the           post,
if sent by airmail, and two (2) days after the letter was delivered to the
          post, if sent by domestic post, and (iii) if sent by facsimile or electronic
          mail, shall be confirmed by appropriate answer back and shall be effective upon
          actual receipt if received during the recipient’s normal business hours,
or           beginning the recipient’s next business day after receipt if not
received           during recipient’s normal business hours. In proving such service
it shall           be sufficient to prove that the letter, facsimile, or electronic mail
containing           the notice was properly addressed and delivered at the post office
or sent by           facsimile or electronic mail, as the case may be. Any list kept in
the ordinary           manner in any mail list of the company or any copy of any fax in
the           Company’s possession shall be prima facie proof of the delivery. 

	107. 	(a) 	
In any case where it is necessary to give prior notice of a certain number           of
days or a notice valid for a certain period, the date of delivery shall be
          taken into account in the number of days or period. 

	 	(b) 	In
addition to the furnishing of a notice pursuant to the above article, the
                    Company may furnish a notice to the shareholders entitled to receive
notice, or                     to part of them, by publication of a notice in a newspaper
distributed in the                     area wherein the Office is located, or any other
place, in Israel or abroad, as                     the Board shall determine from time to
time. 

	108.  	RESERVED 

	109.  	INDEMNITY;
INSURANCE AND EXEMPTION 

	 	(a) 	Subject
to the provisions of the Companies Law, the Company may indemnify its
               Office Holders (as such term is defined in the Companies Law) to the
fullest                extent permitted by the Companies Law. Subject to the provisions
of the                Companies Law including the receipt of all approvals as required
therein or                under any applicable law, the Company may resolve retroactively
to indemnify an                Office Holder with respect to the following liabilities
and expenses, provided                that such liabilities or expenses were incurred by
such Officer Holder in such                Officer Holder’s capacity as an Officer
Holder of the Company: 

	 	(1) 	a
monetary liability imposed on him/her in favor of a third party in any
               judgment, including any settlement confirmed as judgment and an
               arbitrator’s award which has been confirmed by the court, in respect
of an                act performed by the Office Holder by virtue of the Office Holder
being an                Office Holder of the Company;  

- 42 -

	 	(2) 	reasonable
litigation expenses, including legal fees, paid for by the Office                Holder,
in an investigation or proceeding conducted against such Office Holder                by
an agency authorized to conduct such investigation or proceeding, and which
               investigation or proceeding (i) concluded without the filing of an
indictment                against such Office Holder and without there having been a
financial obligation                imposed against such Office Holder in lieu of a
criminal proceeding, or (ii)                concluded without the filing of an indictment
against such Office Holder but                with there having been a financial
obligation imposed against such Office Holder                in lieu of a criminal
proceeding for an offense that does not require proof of                criminal intent;
all in respect of an act performed by the Office Holder by                virtue of the
Office Holder being an Office Holder of the Company; or  

	 	(3) 	reasonable
litigation expenses, including legal fees, paid for by the Office                Holder,
or which the Office Holder is obligated to pay under a court order, in a
               proceeding brought against the Office Holder by the Company, or on its
behalf,                or by a third party, or in a criminal proceeding in which the
Office Holder is                found innocent, or in a criminal proceeding in which the
Office Holder was                convicted of an offense that does not require proof of
criminal intent, all in                respect of an act performed by the Office Holder
by virtue of the Office Holder                being an Office Holder of the Company.  

	 	(4) 	For
purposes of Article 109(a)(2) above:  

	 	a) 	the
“conclusion of a proceeding without the filing of an indictment”               regarding
a matter in which a criminal proceeding was initiated, means the                closing
of a file pursuant to Section 62 of the Criminal Procedure Law
               [Consolidated Version], 5742-1982 (the “Criminal Procedure Law”)
or a                stay of process by the Attorney General pursuant to Section 231 of
the Criminal                Procedure Law; and  

	 	b) 	a
“financial obligation imposed in lieu of a criminal proceeding”               means
a financial obligation imposed by law as an alternative to a criminal
               proceeding, including an administrative fine pursuant to the
Administrative                Offenses Law, 5746-1982, a fine for committing an offense
categorized as a                finable offense pursuant to the provisions of the
Criminal Procedure Law or a                penalty.  

	 	(5) 	The
Company may undertake to indemnify an Office Holder as aforesaid: (i)
               prospectively, provided that, in respect of Article 109(a)(1), the
undertaking                is limited to categories of events which in the opinion of the
Board of                Directors can be foreseen when the undertaking to indemnify is
given, and to an                amount set by the Board of Directors as reasonable under
the circumstances, and                (ii) retroactively.  

	 	(b)	Subject
to the provisions of any law, the Company may procure, for the benefit           of any
of its Office Holders, office holders’ liability insurance with           respect to
any of the following: 

	 	(1)	a
breach of the duty of care owed to the Company or any other person;  

- 43 -

	 	(2)	a
breach of the fiduciary duty owed to the Company, provided that the Office
          Holder acted in good faith and had reasonable grounds to assume that the action
          would not injure the Company; or  

	 	(3)	a
monetary liability imposed on an Office Holder in favor of a third party, in
          respect of an act performed by the Office Holder by virtue of the Office Holder
          being an Office Holder of the Company.  

	 	(c)	Subject
to the provisions of any law, the Company may exempt in advance, by a           Board of
Directors’ resolution, Office Holders from all or part of their
          responsibilities for damages due to their violation of their duty of care to
the           Company. Notwithstanding the foregoing, the Company may not exempt Office
          Holders in advance from their responsibilities for damages due to their
          violation of their duty of care to the Company with respect to Distributions. 

	 	(d)	The
provisions of Articles 109(a), 109(b) and 109(c) above are not intended, and
          shall not be interpreted, to restrict the Company in any manner in respect of
          the procurement of insurance and/or in respect of indemnification (i) in
          connection with any person who is not an Office Holder, including, without
          limitation, any employee, agent, consultant or contractor of the Company who is
          not an Office Holder, and/or (ii) in connection with any Office Holder to the
          extent that such insurance and/or indemnification is not specifically
prohibited           under law; provided that the procurement of any such insurance
and/or the           provision of any such indemnification shall be approved by the Board
of           Directors. 

- 44 -

Exhibit B  

AMENDED AND RESTATED
SHAREHOLDERS RIGHTS AGREEMENT 

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

W I T N E S S E T H: 

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

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

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

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

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

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

	1. 	Definitions. For
purposes of this Section: 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

	  	1.14       
The
terms “register”, “registered”, and “registration” refer
to a registration effected by preparing and filing a registration statement or similar
document in compliance with the United States Securities Act of 1933, as amended, or
similar securities act in a jurisdiction other than the U.S. (the “Act”),
and the declaration or ordering of effectiveness of such registration statement or
document.  

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

2

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

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

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

	2.  	Demand
Registrations  

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

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

3

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

	3.  	Incidental
Registration  

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

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

4

	4. 	Form
F-3 Registration. 

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

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

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

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

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

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

	5.  	Obligations
of the Company.  

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

5

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

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

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

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

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

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

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

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

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

6

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

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

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

7

	6.  	Expenses
of Registration  

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

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

          

	  	7.1       
To
the extent permitted by law the Company will indemnify and hold harmless each of the
Holders, any underwriter (as defined in the Act) for the Holders, each of their
directors, shareholders, partners and officers, and legal counsel and independent
accountants, and each person, if any, who controls such Holder within the meaning of the
Act or the 1934 Act (collectively and individually referred to as the “Indemnified
Party”) against all claims, losses, damages and liabilities (joint or several)
(or actions in respect thereof) arising out of or based on any of the following
statements, omissions or violations: (i) untrue statement (or alleged untrue statement)
of a material fact contained in any such registration statement, prospectus or any
amendments or supplements thereto, offering circular or other document; or (ii) any
omission (or alleged omission) to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading; or (iii) any
violation (or alleged violation) by the Company of the Act or any other securities laws,
and will reimburse such Indemnified Party for any legal or any other expenses reasonably
incurred by them in connection with investigating, preparing or defending any such loss,
claim, damage, liability, or action as such expenses are incurred; provided, however, (i)
that the Company will not be liable to an Indemnified Party in any such case to the
extent that any such loss, damage, liability, cost or expense arises out of or is based
upon an untrue statement or omission in such registration statement, prospectus, offering
circular or other document in reliance upon and in conformity with written information
furnished to the Company by an instrument duly executed by such Indemnified Party, and
stated to be specifically for use therein; and (ii) that the indemnity agreement
contained in this subsection 7.1 shall not apply to amounts paid in settlement of any
such loss, claim, damage, liability or action if such settlement is effected without the
consent of the Company, which consent shall not be unreasonably withheld.  

8

	 	7.2       
To
the extent permitted by law, each Holder , in the event that his Registrable Securities
are included in such registration, will indemnify the Company, each of its directors and
officers and its legal counsel and independent accountants, each underwriter, if any, of
the Company’s securities covered by such registration statement, each other Holder
selling Registrable Securities in such registration and each person who controls the
Company, such underwriter or such other Holder within the meaning of the Act, against all
claims, losses, damages and liabilities (or actions in respect thereof) arising out of or
based on any untrue statement (or alleged untrue statement) of a material fact contained
in any such registration statement, prospectus, offering circular or other document, or
any omission (or alleged omission) to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and will reimburse
the Company, such directors, officers, persons, underwriters, Holders, or control persons
for any legal or any other expenses reasonably incurred in connection with investigating
or defending any such claim, loss, damage, liability or action, in each case to the
extent, but only to the extent, that such untrue statement (or alleged untrue statement)
or omission (or alleged omission) is made in such registration statement, prospectus,
offering circular or other document in reliance upon and in strict conformity with
written information furnished to the Company by an instrument duly executed by such
Holderand stated to be specifically for use therein; provided, however, that the
obligations of such Holder hereunder shall be limited to an amount equal to the proceeds
(net of underwriters discounts, fees and commissions) to such Holder from the sale of
Registrable Securities sold by such Holder pursuant to such registration and provided
further that the indemnity agreement contained in this subsection 7.2 shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of such Holder, which consent shall not be
unreasonably withheld.  

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

	  	7.4       
Promptly
after receipt by an indemnified party under this Section 7 of notice of the commencement
of any action (including any governmental action), such indemnified party will, if a
claim in respect thereof is to be made against any indemnifying party under this Section
7, deliver to the indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent the
indemnifying party so desires, jointly with any other indemnifying party similarly
noticed, to assume the defense thereof with counsel mutually satisfactory to the parties;
provided, however, that an indemnified party (together with all other indemnified parties
which may be represented without conflict by one counsel) shall have the right to retain
one separate counsel, with the fees and expenses to be paid by indemnifying party, if
representation of such indemnified party by the counsel retained by the indemnifying
party would be inappropriate due to actual or potential differing interests between such
indemnified party and any other party represented by such counsel in such proceeding. The
failure to deliver written notice to the indemnifying party within a reasonable time of
the commencement of any such action, shall not relieve the indemnifying party of its
obligations hereunder except to the extent such failure results in a lack of timely
actual knowledge by the indemnifying party and the indemnifying party suffers actual
damage as a result thereof or actual prejudices to its ability to defend such action.  

9

	  	7.4       
The
obligations of the Company and the Holders under this Section 7 shall survive the
completion of any offering of Registrable Securities in a registration statement under
this Agreement, and otherwise.  

	8.  	Reports
Under the 1933 Act.  

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

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

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

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

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

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

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

10

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

	9A.  	Termination
of Registration Rights  

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

	10.  	Covenants
of the Company.  

	   	10.1       
Delivery
of Financial Statements.  

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

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

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

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

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

11

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

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

	   	10.2       
Delivery
of Work Plan and Annual Budget  

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

	   	10.3       
Visitation
Rights  

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

	  	10.4        
Patents.  

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

	  	10.5       
Auditors
and Internal Auditor.  

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

12

	11.  	Confidentiality.  

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

	12.  	Miscellaneous  

	  	12.1       
Further
Assurances. Each of the parties hereto shall perform such further acts and execute
such further documents as may reasonably be necessary to carry out and give full effect
to the provisions of this Agreement and the intentions of the parties as reflected
thereby.  

	  	12.2       
Governing
Law; Jurisdiction. This Agreement shall be governed by and construed according to the
laws of the State of Israel, without regard to the conflict of laws provisions thereof,
and the parties hereto irrevocably submit solely to the jurisdiction of the Courts of Tel
Aviv, in respect of any dispute or matter arising out of or connected with this
Agreement.  

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

13

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

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

	 	
For
the Company.  

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

	 		
	 	tel:	08-9312222
	 	fax:	08-9366051

	 	
For
the Investors:  

	 	
as
set forth on Schedule A hereto:  

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

14

	  	12.6       
Delays
or Omissions. No delay or omission to exercise any right, power, or remedy accruing
to any party upon any breach or default under this Agreement, shall be deemed a waiver of
any other breach or default theretofore or thereafter occurring. Any waiver, permit,
consent, or approval of any kind or character on the part of any party of any breach or
default under this Agreement, or any waiver on the part of any party of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to the
extent specifically set forth in such writing. All remedies, either under this Agreement
or by law or otherwise afforded to any of the parties, shall be cumulative and not
alternative.  

	  	12.7       
Severability.
If any provision of this Agreement is held by a court of competent jurisdiction to be
unenforceable under applicable law, then such provision shall be excluded from this
Agreement and the remainder of this Agreement shall be interpreted as if such provision
were so excluded and shall be enforceable in accordance with its terms; provided,
however, that in such event this Agreement shall be interpreted so as to give effect, to
the greatest extent consistent with and permitted by applicable law, to the meaning and
intention of the excluded provision as determined by such court of competent
jurisdiction.  

	  	12.8       
Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original and enforceable against the parties actually executing such
counterpart, and all of which together shall constitute one and the same instrument.  

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

[Remainder
of Page Intentionally Left Blank] 

15

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

Negevtech Ltd. 

	By:	1)
——————————————

                            
 title	

	 	
2) 

	 	——————————————

                            
 title	

[SIGNATURE PAGE TO SHAREHOLDERS RIGHTS AGREEMENT DATED JULY 2007]

16

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

INVESTORS:

[SEE SEPARATE SIGNATURE PAGES] 

[SIGNATURE PAGE TO SHAREHOLDERS RIGHTS AGREEMENT DATED JULY 2007]

17

SCHEDULE A 

Investors and Addresses 

	Investor 	Address 
	Pitango Venture Capital Fund III (Israeli Sub) L.P.	11 HaManofim Street Bldg. B Herzliya 46725, Israel
	Pitango Venture Capital Fund III (Israeli Sub.) Non-Q L.P.
	Pitango Venture Capital Fund III (Israeli Investors) L.P.
	Pitango Parallel Investor Fund III (Israel), L.P.
	Pitango Principles Fund III (Israel) L.P.
	Pitango Venture Capital Fund III Trusts 2000 Ltd.
	Shrem, Fudim, Kelner Founders Group II L.P.	21 Ha'arbaa Street Tel Aviv 64739, Israel
	Shrem Fudim Kelner & Co. Ltd.
	Shrem Fudim Kelner Founders Group II Annex Fund L.P.
	SVE Star Ventures Enterprises GmbH & Co. No. IX KG.	Star Ventures Management 

Possartstrasse 9 
D-81679 Munich 
Germany 
Contact: Nicolas Sammartino
	Star Growth Enterprise, a German Civil Law Partnership (with limitation of liability
	SVM Star Ventures Managementgesellschaft mbH Nr. 3
	Star Management of Investments No. II (2000) L.P.	SVM Star Venture Capital Management Ltd.

 11 Galgaley Haplada St., 
P.O. Box 12600,
 Herzelia Pituach, 46733, Israel. 
Contact: Tami Gilboa-Arbel
	Genesis Partners II, L.D.C.	Ackerstein Towers B 

11 HaMenofim St
 Herzliya, 46733
 Israel
	Genesis Partners II (Israel), L.P.
	Poalim Ventures Ltd.	Alrov Tower, 46 Rothschild Blvd, Tel Aviv 66883, Israel

 Number for notices being delivered by facsimile: 03-5675760
	Poalim Ventures I Ltd.
	Poalim Ventures II L.P.
	Wellington Partners Venture III Technology Fund L.P.	Theresienstrasse 6, 80333 Muenchen, Germany
	Amadeus III	Mount Pleasant House
 2 Mount Pleasant 

Cambridge
 CB3 0RN
	Amadeus III Affiliates Fund L.P.	2711 Centerville Road

 Suite 400, Wilmington,
 New Castle County,
 Delaware 19808

18

Schedule of Exceptions

Corresponding to the

PREFERRED SHARE
PURCHASE AGREEMENT 

Dated as of July 20, 2007

By and Among

Negevtech Ltd.

And

Several Investors

 The following information in any of
the sections is provided for the purposes of disclosure pursuant to the Series A1
Preferred Share Purchase Agreement dated July 20, 2007 (the “Series A1
SPA”) only, and does not grant, and should not be interpreted as granting, any
rights to any third parties. Each Section is intended to relate to the corresponding
Section of the Series A1 SPA. Certain disclosure information may be categorized in one
section and not another. When the same disclosure information would be required in more
than one section of these Disclosure Schedules, the Company has included the disclosure
information in each section or provided an appropriate cross-reference to the section in
which the disclosure is contained, except where the relevancy of such disclosure would be
readily apparent. 

 All capitalized terms used in any of
the Sections and not otherwise defined shall have the meanings assigned to them in the
Series A1 SPA. 

 Unless otherwise indicated, all
information included is provided as of the date of the Series A1 SPA. 

	 Section 2.1: 	
 The Company does not have a business license ("Rishayon Esek"). The
Company believes that the lack of such license is not
reasonably likely to have a Material Adverse Effect on its
business.  

 Section 2.2: 

	 	
The
Company’s outstanding shares confer upon their holders certain pre-emptive rights,
anti-dilution rights and registration rights as set forth in the Company’s Articles
of Association in effect prior to Closing (the “Current Articles”), and
the Shareholders Rights Agreement dated September 13, 2005 as amended on March 22, 2006
and on September 26, 2006 (the “Current SRA”). Following the Closing, any
pre-emptive rights, anti-dilution rights and registration rights attached to the
Company’s shares or granted to holders of such shares shall be set forth in the
restated and amended Shareholders Rights Agreement and the Amended Articles (both as
defined in the Series A1 SPA). 

	 	
Pursuant
to the terms of the Employment Agreement and the Option Agreement entered into by the
Company and Arnon Gat, the Company’s former CEO and former director of the Company,
in December 2004 (collectively, “Arnon’s Agreements”), Arnon Gat is
entitled to certain acceleration rights as set forth therein. Mr. Gat has resigned on June
11, 2007 and the Company has yet to settle with him his compensation package following his
resignation. . 

	 	
The
Company is negotiating a new employment agreement with Rivi Sherman following her
appointment as the Company’s president, according to which, among other things, the
Company shall grant to Rivi Sherman an option to purchase Ordinary Shares representing
2.5% of the Company’s Ordinary Shares on a fully diluted and as-converted basis
immediately following the Closing, all under the terms of said draft of agreement. 

	 	
The
Company is negotiating a Consulting Agreement with Jaron Lotan, the Company’s new
chairman of the Board, according to which, among other things, the Company shall issueto
Jaron Lotan options to purchase Ordinary Shares representing 2% of the Company’s
Ordinary Shares on a fully diluted and as-converted basis immediately following the
Closing, all under the terms of said draft of agreement. 

	 	
Pursuant
to the terms of Warrants issued on January 14, 2005, July 18, 2005 and November 6, 2005 to
Plenus Technologies Ltd., exercisable, in accordance with their terms, into 1,556,437
Series BB-1 Preferred Shares (“Plenus” and the “Plenus
Warrants”, respectively), the shares issuable upon exercise of the Plenus Warrants
confer upon the holders thereof certain pre-emptive rights and registration rights. 

- 2 -

	 	
Proxies
were executed in favor of the trustees under the Company’s Option Plans by all
grantees under such Plans. 

	 	
The
32,769 warrants to service providers are comprised of the following warrants:

 Irit Cohen
– a warrant to purchase 7,015 Ordinary Shares; 
Doron Cohen – a warrant to
purchase 7,015 Ordinary Shares; 
Giora Lentz – a warrant to purchase 10,923 Ordinary
Shares; 
Yuval Horn – a warrant to purchase 3,507 Ordinary Shares;
 Doron Cohen –
David Cohen, Law Offices – a warrant to purchase 4,309 Ordinary Shares. 

	 	
The
382,250 Ordinary Shares held by Eli Lerner, CPA (trustee under the Company’s IL Share
Option Plan) are a result of the exercise by the following ex-employees of the Company:

Doron Schlumm – exercised 2,500 options;

Hava Shapira – exercised 1,000 options;

Shai Silberstein – exercised 20,000 options;

Shula Mazor – exercised 5,000 options;

Offer Saig – exercised 1,000 options;

Ran Yam – exercised 5,000 options;

Mark Wagner – exercised 160,000 options;

Tidhar Mor – exercised 3,000 options.

Silvi Levi – exercised 18,750 options.

Shiri Bloom – exercised 8,250 options.

Miri Ofir – exercised 3,000 options.

Ran Zaslavski – exercised 3,000 options.

Shay Cohen – exercised 7,500 options.

Noam Dotan – exercised 90,000 options.

Merav Artzi – exercised 3,000 options.

Samuels Gidon – exercised 1,500 options.

Dalya Harel – exercised 4,750 options.

Ilan Moshe – exercised 9,000 options.

Gilad Cohen – exercised 12,000 options.

Uri Baruch – exercised 2,000 options.

Ronen Gvili – exercised 2,500 options.

Marina Mihaelov – exercised 1,000 options.

Shmuel Roth – exercised 5,000 options.

Jeremy Topaz – exercised 5,000 options.

Tzipi Korman – exercised 1,500 options.

Daniel Cohen – exercised 2,000 options.

Haim Russo – exercised 5,000 options (see also section 2.3, subsection (b)) 

	 	
Uri
Yulevitch has exercised on June 27 2007, 10,000 options. Such exercise and the issuance of
Ordinary Shares in connection therewith has not yet reported to the Companies Registrar
and are not reflected in Eli Lerner’s holdings indicated above. 

	 	
The
1,250 Ordinary Shares held by the Company’s president (trustee under the
Company’s US Share Option Plan) are a result of the exercise by the following
ex-employee of the Company: 

	 	
Singh
Gurminder – exercised 1,250 options. The share certificate evidencing such Ordinary
Shares has been issued on the name of the former US trustee the Company’s US Share
Option Plan and will be replaced following the Closing as necessary from the nomination of
the Company’s president as the new trustee. 

	 	
Negevtech
 Ltd.  allocated  150,000 of its Share Options to M.B.  Choi, the chairmen of Negevtech
Korea.  

- 3 -

	 Section 2.3: 	 
Subsection (a)  

	 	
All
grantees under the Company’s Share Ownership and Option Plan (2001, as amended 2003
& 2004 & 2005 & 2006) (the “IL Plan”) have provided Mr.
Eliahu Lerner and/or Mr. Yehuda Zviel with a proxy for the exercise of all rights granted
to them with respect to their shares and options, including voting rights, until the
consummation of an IPO. All grantees under the Company’s Employee Share Option Plan
(2002, as amended 2003 & & 2004 & 2005 & 2006) (the “US Plan”)
have provided the Company’s President with a proxy for the exercise of all rights
granted to them with respect to their shares and options, including voting rights, until
the consummation of an IPO.  

	 	
See
also the Current Articles, the Series BB-1/2 SPA, the Series BB-3 SPA, the Series BB-4
SPA and the Current SRA, with respect to appointment of directors and observers.  

	 	
During
the Term of the Plenus Loan Agreement, Plenus is entitled to nominate a non-voting
observer to the Board of Directors of the Company.  

	 	
Pursuant
to the Intel Side Agreement dated July 31, 2002, Intel is entitled to appoint a
non-voting observer to the Board of Directors of the Company and all committees thereof.  

	 	 
Subsection
(b)  

	 	
TheCompany
has contracted to provide its directors and the directors of its wholly-owned subsidiary,
Negevtech, Inc. (the “Subsidiary”), with Directors and Officers
liability insurance with a coverage limit of US$5 million.  

	 	
TheCompany
provided certain of its directors with Indemnification and Release Letters (whereby,
inter alia, the Company released them from any liability due to a breach of their duty of
care to the Company) with respect to acts or omissions taken or not taken in their
capacity as directors and officers of the Company. As of Closing, the Company shall enter
into Indemnification and Release Letters with additional three of its directors, subject
to the approval of the shareholders of the Company for such engagement. In addition, the
Founders and Arnon Gat received complementary Indemnification and Release Letters as
Service Providers of the Company.  

	 	
Haim Russo
(previously a director of the Company) and Rafi Yizhar, (currently a director of the
Company), were granted options to purchase Ordinary Shares of the Company, according to
Option Agreements dated December 31, 2002 (Haim Russo – 10,000 options and Rafi
Yizhar – 20,000 options). The Option Agreement with Haim Russo was amended on
December 2004 and again on May 2006 in order to extend the exercise period of his
options. In June 2006, the Company granted Rafi Yizhar an additional option to purchase
40,000 Ordinary Shares.  

- 4 -

	 	
Arnon’s employment
agreement with the Company has been terminated effective as of June 11, 2007 and the
Company’s US Subsidiary has terminated on June 11, 2007 the Services Agreement with
AGS Associates LLC, a limited liability company registered under the laws of
Delaware (wholly-owned by Arnon Gat) .  

	 	
In addition
to the foregoing, the Company entered into employment agreements with each of the
following officers of the Company (and with respect to Glyn, Roi, Markus and Yanki –of
a subsidiary of the Company):  

	   	 u 	 Rivi
Sherman, dated September 23, 2003 as amended on November 1, 2003 and February 18, 2005;
The Company is negotiating a new agreement with Rivi Sherman following her appointment as
the Company’s president.  

	   	                          u 	 Michal
Rozenkrantz, dated December 15, 2004; 

	   	 u 	 Moti
Gatenio, dated June 7, 2001, as amended on August 1, 2003, on January 1, 2005 and on
January 1, 2006; 

	   	 u 	 Oz
Desheh, dated April 5, 2004, as amended on January 1, 2005, on April 1, 2005 and on
January 1, 2006; 

	   	 u 	 Yuval
Levin, dated September 9, 2002, as amended effective as of April 1, 2005;  

	   	              u 	 Dvir
Harmelech, dated August 2, 2005; 

	   	                           u 	 Shmuel
Gov, dated February 15, 2006; 

	   	                              u 	 Ehud
Tirosh, dated March 01, 2007 

	   	 u 	 The
Company is negotiating a Consulting Agreement with Jaron Lotan for his services as the
chairman of the Company’s board of directors. 

	   	 u 	 The
Company’s US Subsidiary entered into an agreement with its officer Glyn Davies,
dated November 15, 2004; 

	   	 u 	 The
Company’s Japan Subsidiary entered into an agreement with its officer Roi Shefts,
dated January 6, 2005; 

	   	 u 	 The
Company’s German Subsidiary entered into an agreement with its officer Markus
Kindler, dated May 17, 2005; 

	   	 u 	 The
Company’s Taiwan branch entered into an agreement with its officer Yanki Avni, dated
October 31, 2005, effective as of March 1, 2006. 

	   	 u 	 Negevtech
Ltd. entered into an agreement with Mr. M.B Choi in Korea as the chairmen of Negevtech
Korea, dated August 11, 2006 

	 	
In
addition, the abovementioned officers received options to purchase Ordinary Shares of the
Company pursuant to Option Agreement with each such officer. 

- 5 -

	 Section 2.4: 	
            The Company's Singapore subsidiary registered a branch in Taiwan. 

	 	
The
Company's Singapore  subsidiary  registered a subsidiary in Korea,  Negevtech Korea Co.,
Ltd.  

	 	
The
Company is not a participant in any registered partnership or joint venture. The Company
is not participating in any other partnership, joint venture or business association,
other than those listed on the List of Material Agreements hereof. 

	 Section 2.5:   	
 The approval and/or confirmation in principle provided by the Office of
the Chief Scientist of the Ministry of Industry, Trade and
Labor ("OCS") and the Investment Center of the Ministry of
Industry, Trade and Labor (the "Investment Center") for the
current investment of the Investors.  

- 6 -

	 Section  2.7: 	 (a)  	
               In July and August 2004 and in March  2005,  the Company  received
 letters  from                                KLA-Tencor  asserting  that  its 302
 inspection  system  makes  use of five  KLA                                patents  and
 requesting  technical  information  regarding  the 302  system.  In
                               response to these letters,  the Company has identified
certain limitations of the                                KLA  patents  that are absent
from the 302 system.  The  Company  also  requested
                               further clarification of KLA's claims. 

	 	
The
Company disputes KLA’s claims and is attempting to resolve these issues without
resorting to litigation, although these assertions by KLA-Tencor could lead to patent
litigation. On January 30, 2006 the Company provided KLA with Mr. Gadi Nuemann’s
declaration that the Company’s tools do not include particular claim limitations
from KLA’s patents (the content of such declaration was agreed between KLA and the
Company). There have been no further communications from KLA since February 2006. 

	   	 (b) 	 On
August 27, 2004, Applied Materials, Inc. filed suit in the U.S. District Court for the
Northern District of California alleging that the Company’s 302 inspection system
infringes an Applied Materials’ patent (U.S. Patent No. 5,982,921) and seeking an
injunction and unspecified damages. On October 12,           2004, the Company filed an
amended answer to Applied Materials’ complaint           and also filed
counterclaims for declaratory judgment of non-infringement and           invalidity. The
Company disputes Applied Materials’ claims and further           believes that some
or all of the claims of the ‘921 patent are invalid.  

	 	
On
June 3, 2005, Applied Materials, Inc. and Applied Materials Israel (collectively, “Applied
Materials”) filed an amended complaint against the Company. On June 23, 2005,
the Company filed an answer to the amended complaint and again filed counterclaims for
declaratory judgment of non-infringement and invalidity. On July 14, 2005, the Court
issued an order under the legal doctrine of assignor estoppel that prevents the Company
from challenging the validity of the ‘921 patent in this lawsuit. The Company is not
barred, however, from seeking reexamination of the ‘921 patent in the United States
Patent and Trademark Office (“PTO”). 

	 	
On
June 3, 2005, the Company filed with the PTO a request for reexamination of the ‘921
patent seeking reexamination of certain claims of the ‘921 patent. On June 10, 2005,
Applied Materials asserted against the Company additional claims of the ‘921 patent
that were not specifically addressed in the Company’s request for reexamination. On
August 22, 2005, the Company filed with the PTO a second request for reexamination
addressing the additional asserted claims. In September 2005, the PTO granted the Company’s
first and second request for reexamination, finding a “substantial new question of
patentability” regarding seven of the asserted claims in the ‘921 patent. In
October 2005, the Court stayed the California litigation on the ‘921 patent pending
the PTO’s decision on the Company’s second request for reexamination, which
addresses the four asserted claims that were not specifically addressed by the Company’s
first request. In January 2007, the PTO agreed with the Company’s arguments in its
first request and rejected each of the claims at issue in that request (6, 9, 10,
12, 16, 24, 25 and 26) as invalid over the prior art.  Applied Materials responded
to those rejections in March 2007.  The Company is awaiting the PTO’s follow-up
action. The PTO has not yet submitted an initial office action on the Company’s
second request. The process of the reexaminations on the ‘921 patent is open to the
public and can be monitored online at www.uspto.gov. 

- 7 -

	 	
Following
the Court’s stay of litigation on the ‘921 patent, Applied Materials asserted
two additional patents against the Company, U.S. Patent Nos. 6,256,093 and 6,924,891. In
December 2005, Applied Materials withdrew its claims on the ‘093 patent, which have
been dismissed with prejudice. Also in December 2005, Applied Materials filed a motion
for a preliminary injunction on the ‘891 patent. The parties stipulated to the terms
of a preliminary injunction that terminates any prospective exposure under this patent
and are now engaged in settlement discussions concerning Applied Material’s claim
for past demages. The Company disputes Applied Material’s claim of infringement and
if settlement discussions are unsuccesful, intends to defend the claim.  

	 	
In
July 2006 an employee of the Company (at that time, later he resigned) complained that
his eyes were injured during his work in Negevtech’s clean room. The employee went
through medical examinations which identified that he suffers from sore eyes but did not
reveal any major damage. To the Company’s knowledge, the employee filed forms with
request to an industrial accident with the National Insurance Agency (áè”ì)
but the Company has not received any notice with respect thereto.  

- 8 -

	 Section 2.8: 	 
Subsections (a), (b), (c) and (h)  

	 	
On
January 2, 2000 TICI Software Products Ltd. (“TICI”) and the Company
entered into a Non-Disclosure and Non-Use Agreement (the “TICI NDA”).
Under the Cooperation Agreement the Company entered into with TICI on February 15, 2000
(the “TICI Cooperation  Agreement”), it was agreed that TICI would
not be precluded from working for and with any other entity in the semi conductor
industry, so long as the TICI NDA is not breached. 

	 	
Under
the TICI Cooperation Agreement the Company was granted a perpetual, worldwide,
nonexclusive free license to use for any purpose and in any way the TICI Legacy Code,
which shall remain the sole property of TICI. 

	 	
The
Company has received and may in the future receive participations through the OCS and is
therefore subject to the provisions of the Law for the Encouragement of Industrial
Research and Development, 5744-1984 and of Regulations promulgated thereunder (the
“Research Law”). 

	 	
The
Company is a party to several Evaluation Agreements and Joint Development Agreements with
respect to the evaluation by existing and potential customers of the Company’s
products, which include provisions with respect to IP rights created in the course of such
evaluation and with respect to the possible purchase of the Company’s products
pending the results of the evaluation. 

	 	
Please
see Section 2.7 for patent litigation.  

	 	
Please
see Section 2.18 with respect to Liens over the Company’s IP.  

 [***] 

	 	 
Subsection
(b)  

 [***] 

 *** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

- 9 -

	 	 
Subsection
(e)  

	 	
6
employees of the Company, who terminated their employment with Applied Materials
(“AMAT”) and began working for the Company, informed the Company that
AMAT claimed that they breached their non-competition undertaking. Neither the Company
nor, to the Company’s best knowledge, any of such employees have received any written
claim or demand from AMAT. 

	 Section 2.9: 	
The Company does not have a business license (“Rishayon Esek”). The
Company believes that the lack of such license is not reasonably likely to have a
Material Adverse Effect on its business.  

	 	
See
Section 2.5 for OCS and Investment Center approvals.  

- 10 -

	 Section 2.10: 	 
Subsection (a)  

	 	
Please
see Sections 2.2 and 2.3 for certain agreements listed therein.  

	 	 
Subsection
(a), (b), (c) and (d)  

	 	 
General:  

	   	 (1) 	 Please
see reference to Sections 2.2 and 2.3 for certain agreements listed
               therein.  

	   	 (2) 	 The
Company signed numerous Non-Disclosure Agreements.  

	   	 (3) 	 The
Company signed undertakings and related documents with the OCS and the
               Investment Center.  

	   	 (4) 	 The
Company entered into Recruitment Service Agreements with several companies.  

	   	 (5) 	 See
reference to agreements with Plenus in Section 2.2 and 2.18 and in the list
               of Material Agreements below.  

	   	 (6) 	 The
Company entered into various agreements with Citibank in connection with the
               opening of a global account with Citibank.  

	   	 (7) 	 The
Company was party to several SPAs in connection with the issuance of the
               outstanding Preferred Shares of the Company.  

	   	 (8) 	 The
Company signed in March 2006 an understating for the benefit of Wellington
               Partners Ventures III Technology Fund L.P. for the grant of certain audit
               rights.  

	   	 (9) 	 The
Company signed in March 2006 a confidentiality undertaking for the benefit
               of Intel Atlantic, Inc.  

	 	
Material
Agreements: please refer to the list of Material Agreements below.  

	 	 
Pending
Purchase Orders:  

 [***] 

 *** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

	 	
Please
see reference to Section 2.7 for patent litigation.  

- 11 -

	 Section 2.11: 	
Please see reference to Sections 2.2, 2.3 and the list of Material Agreements in Section
2.10 for related-party transactions/Agreements.  

	 	
Star
has appointed Ms. Yaffa Krindel, Pitango has appointed Mr. Aaron Mankovsky, Orbotech has
appointed Mr. Amichai Steinberg, Genesis has appointed Mr. Eddy Shalev, Poalim has
appointed Mr. Eran Gersht and Wellington has appointed Mr. Bart Markus as directors of the
Company. Rafi Yizhar was appointed as an industry expert director. Jaron Lotan has been
appointed as an industry expert director and the chairman of the Company’s board of
directors. Rivi Sheman has been appointed as the Company’s president. The Company has
not undertaken any independent investigation to determine the existence or absence of any
interests of such directors or their familiy members. 

	 Section 2.12: 	
The Company does not have a business license (“Rishayon Esek”). The
Company believes that the lack of such license is not reasonably likely to have a
Material Adverse Effect on its business.  

	 	
See
reference to Section 2.5 with regards to the OCS and Investment Center approvals.  

	 Section 2.17: 	
Pursuant to the terms of the Plenus Warrants, the shares issuable upon exercise of the
Plenus Warrants confer upon the holders thereof certain registration rights.  

	 Section  2.18: 	
The Company’s respective property and assets may be subject to liens for current
taxes and assessments not yet due (and which the Company is not aware of), minor
imperfections of title and encumbrances and minor liens that may exist by operation of
law; and liens, loans and encumbrances shown in the Company’s Audited Financial
Statements.  

- 12 -

	 	
The
Company is under a general restriction of the OCS – Please see reference to Section
2.8 and the Research Law for more details. 

	 	 
Plenus
Technologies Ltd.  

	 	
The
Company received a loan in the amount of US$10 million from Plenus II ($4.5 million of
which were used to repay a previous loan granted to the Company by Plenus). To secure this
loan (and any interest thereon) the Company created: 

	 	
(a)
                     a first degree fixed charge over the Company’s intellectual
property in                     favor of Plenus II L.P, and Plenus II (D.C.M) L.P.,
Plenus Technologies Ltd.,                     Golden Gate Bridge Fund L.P. and Bank Leumi
Le-Israel B.M. as co-lenders to                     Plenus II (collectively: “the Co-Lenders”)
and (b) a general                     first-degree floating charge over the Company’s
assets in favor of Plenus                     II and its Co-Lenders, all subject to the
terms of the Loan Agreement between                     the Company and Plenus dated
October 11, 2005 and consummated November 6, 2005.                     Bank Leumi gave
its confirmation that the said charges are pari passu with Bank                     Leumi’s
floating charge, the Microscope Agreement and the IP pledge in the
                    Bank’s favor (such IP pledge will be cancelled upon and together
with the                     full and final repayment of the said loan and the release of
the pledges above                     – (a) + (b)), all in accordance with the
November 1, 2005, letter to Bank                     Leumi.  

- 13 -

	 Section 2.21: 	  

	 	
See
amendments to employment agreements with officers, set forth in reference to Section 2.3
above. 

	 	
See
list of open orders in reference to Section 2.10.  

	 	
See
list of Material Agreements below for agreements executed following December 31, 2005 

	 	
Arnon’s
employment agreement with the Company has been terminated, effective as of June 11, 2007
and the Company’s US Subsidiary has terminated on June 11, 2007 the Services
Agreement with AGS Associates LLC, a limited liability company registered under the
laws of Delaware (wholly-owned by Arnon Gat). 

	 	
The
Company is negotiating a new employment agreement with Rivi Sherman following her
appointment as the Company’s president, according to which, among other things, the
Company shall grant to Rivi Sherman an option to purchase Ordinary Shares representing
2.5% of the Company’s Ordinary Shares on a fully diluted and as-converted basis
immediately following the Closing, all under the terms of said draft of agreement. 

	 	
The
Company is negotiating a Consulting Agreement with Jaron Lotan, the Company’s new
chairman of the Board, according to which, among other things, the Company shall issueto
Jaron Lotan options to purchase Ordinary Shares representing 2% of the Company’s
Ordinary Shares on a fully diluted and as-converted basis immediately following the
Closing, all under the terms of said draft of agreement. 

	 	
The
Company has received on May 7, 2007 and on June 1, 2007 convertible bridge loans in the
aggregate amount of $5,000,000, which shall be converted (including interest incurred as
of July 1, 2007) upon Closing into payment on account of the applicable Issued Shares, all
as set forth under Section 1.6 of the Series A1 SPA. 

The Company issued to Tmura –
the Israeli Public Service Venture Fund a warrant to purchase up to 5,000 Ordinary Shares
of the Company at an exercise price of $0.63 each, as a charitable contribution (reflected
in the Cap Table Schedule 2.2). 

	 Section 2.24: 	
           (a) Certain of the Company's employment compensation  arrangements are fixed
and do not                          differentiate between compensation for regular hours
and overtime work. 

	 	
(b)
                     All grantees under the US Plan have provided the trustee under the
US Plan)                     with a proxy for the exercise of all rights granted to them
with respect to                     their shares and options, including voting rights,
until the consummation of an                     IPO.  

	 	
The
Company agreed with two of its former employees, Jeremy Topaz and Shmuel Roth, that they
will be able to exercise the options granted to them under the Company’s Share Option
Plan (5,000 options each) following termination of their employment. No specific time
limit was agreed with respect to such right to exercise. 

- 14 -

 Material Agreements: 

	 Number 	 The Company 
or
its 
Subsidiary 	 Name of the other

party 	 Title of Agreement 	 Effective Date 	 Comments 
	 1. 	 Company 	 Rami Sher, employee 	 Loan Agreement 	 July 31, 2005 	 Loan amount of NIS 20,000. 
	 2. 	 Company 	 Oren Kashi, employee 	 Loan Agreement 	 February 08, 2006 	 Loan amount of NIS 20,000 
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 5. 	 Company 	 Applied Materials, Inc. 	 Full Service Contract 	 May 31, 2005 	 Shall be paid US$100,000 in monthly payments of US$8,333 each for maintenance services in respect to W206 machine 
	 6. 	 Company 	 Plenus Technologies Ltd. 	 Loan Agreement 	 October 11, 2005 	 Loan in the amount of $10 million, $4.5 of which were used to return a previous loan. 
	 7. 	 Company 	 CIBC 	 Engagment Letter 	 June 13, 2007 	 Finder's services for M&A and Privet Placement 
	 8. 	 Company 	 Phoenix contacts 	 Statement of work 	 March 9, 2006 	 Spatial Filter Module Printer 
	 9. 	 Company 	 Big Sky 	 Statement of work 	 June 13, 2006 	 Development & Supply Flash Lamp Pumped. 

 *** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

- 15 -

	 [***] 	   	   	   	   	   
	 11. 	 Company 	 Hermes-Epitek Corp. 	 Sales Representative Agreement 	 December 1, 2004 	 On May 29, 2007 the Company received termenation notice from Hermes 
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 17. 	 Company 	 Canon Sales Co., Inc. 	 Distribution and Sales Agreement 	 November 30, 2005 	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 20. 	 Company 	 Morrison & Foerster L.L.P 	   	 October 20, 2004. 	 IP litigation legal counsels; US corporate counsel 
	 21. 	 Company 	 Shai Silberstein 	 Consulting Agreement 	 October 11, 2004 	   
	 22. 	 Company 	 Taiwan Branch 	 Services Agreement 	 September 1, 2004 	   
	 23. 	 Company 	 Negevtech GmbH 	 Service Agreement 	 September 01, 2005 	   

 *** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

- 16 -

	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 27. 	 Company 	 JNC Co. Ltd. 	 Cooperation Agreement 	 July 1, 2003 	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   

 *** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

- 17 -

	 31. 	 Company 	 Negevtech Inc. 	 Inter Company Loan Agreement 	 January 1, 2003 	   
	 32. 	 Company 	 Eldan Car Rent (1965) Ltd. 	 Car Lease Agreement 	 April 17, 2000 	   
	 33. 	 Company 	 Dorban Investments Ltd. 	 Lease Agreement 	 February 22, 2000 (as extended).

 A new agreement was signed on June 26, 2006. 	 Regarding the Company's offices at 12 Hamada Street, Rehovot.

 The Company has provided the lessor a bank guarantee in the amount of NIS 531,388 dated February 06, 2007 
	 34. 	 Company 	 TICI Software Products Ltd. 	 Cooperation Agreement 	 February 15, 2000 	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   

 *** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

- 18 -

	 43. 	 Company 	 Kesselman Corporate Finance Ltd. / Kesselman and Kesselman, CPA 	 Power of Attorney 	   	 Appointed to transact all business with respect to the application to the Investment Center for an approved enterprise status 
	 44. 	 US Subsidiary 	 Devane Realty LLC 	 Lease Agreement 	 June 20, 2005 	 Offices in Alvin Devane, Austin, Texas. The US Subsidiary provided the landlord a security deposit in the amount of US$ 1,318.18. 
	 45. 	 German Subsidiary 	 TechnologieZentrum Dresden 	 Lease Agreement 	 August 18, 2005 	 Offices in Dresden, Germany 
	 46. 	 US Subsidiary 	 T.M Norris Company LLC 	 Lease Agreement 	 March 2006 	 Offices in Southwind Center, Boise 
	 47. 	 US Subsidiary 	 VLSI Research Inc. 	 Subscription Agreement 	 April 25, 2005 	   
	 48. 	 US Subsidiary 	 Bet-Israel 101 Ltd. 	 Engagement Agreement 	 April 19, 2005 	 Relocation. 
	 49. 	 US Subsidiary 	 Palmborg Associates, Inc. 	 Representation Agreement 	 June 14, 2004 	   
	 50. 	 US Subsidiary 	 Lakeside Drive Inc. 	 Lease Agreement 	 May 1, 2002 	 Offices in Lakeside Drive, Santa Clara, California. The US Subsidiary provided the landlord a letter of credit in the amount of US$ 50,000. 
	 51. 	 Company 	 Alta 	 Sales agreement 	 May 23, 2006 	 NTW waffers project 
	 52. 	 Company 	 Aerotech 	 Statement of work 	 April 06, 2006 	 3500 XY Stage system Project 
	 53. 	 Company 	 Physik Instrument 	 Statement of work 	 March 19, 2006 	 3500 Z-Stage system Project 
	 [***] 	   	   	   	   	   

 *** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

- 19 -

	 55. 	 Company 	 Shacham Benzion 	 Statement of work 	 June 14, 2006 	 IPX- Thermal Analysis 
	 56. 	 Company 	 LITRON 	 Statement of work 	 June 3, 2006 	 For Supply of flash lamp pumped: YAG third harmonic 120 Hz laser system 
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 [***] 	   	   	   	   	   
	 66. 	 Company 	 Methodical Engineering Cad. 	 Outsourcing agreement 	 March 01, 2007 	   
	 67. 	 Company 	 Ravid 	 Outsourcing agreement 	 November 26, 2006 	   
	 68. 	 Company 	 Sela 	 Outsourcing agreement 	 December 19, 2006 	   
	 69. 	 Company 	 Taldor 	 Outsourcing agreement 	 November 06, 2006 	   
	 70. 	 Company 	 Tech-Tav 	 Outsourcing agreement 	 October 26, 2006 	   
	 71. 	 Company 	 HumaNet 	 HR software 	 August 14, 2006 	   

 *** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

- 20 -

Schedule 1.1(ii)  

Registered Share Capital:  NIS 8,000,000 divided into 800,000,000
Ordinary Shares, nominal value NIS 0.01 each

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Post Automatic Conversion

	
 

	
Reallocation by Money

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
 

	
 

	
Name

	
 

	
# Ordinary

	
 

	
# Options/Warrants to Purchase Ordinary

	
 

	
1% Ordinary

	
 

	
99% Ordinary

	
 

	
Warrants to purchase Ordinary (Originally Preferred
  AA)  

	
 

	
# Additional Ordinary for Money Reallocation

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pitango Venture Capital Fund III (Israeli
  Sub) L.P.

	
 

	
 

	
5,324,638

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
121,535,914

	
 

	
 

	
201,465

	
 

	
 

	
116,211,276

	
 

	
Pitango Venture Capital Fund III (Israeli Sub.)
Non-Q L.P.

	
 

	
 

	
492,239

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
11,235,452

	
 

	
 

	
18,624

	
 

	
 

	
10,743,213

	
 

	
Pitango Venture Capital Fund III (Israeli
Investors) L.P.

	
 

	
 

	
1,439,805

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
32,863,684

	
 

	
 

	
54,475

	
 

	
 

	
31,423,879

	
 

	
Pitango Parallel Investor Fund III (Israel),
L.P

	
 

	
 

	
447,636

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
11,351,950

	
 

	
 

	
36,734

	
 

	
 

	
10,904,314

	
 

	
Pitango Principles Fund III (Israel) L.P.

	
 

	
 

	
187,431

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
4,278,147

	
 

	
 

	
7,092

	
 

	
 

	
4,090,716

	
 

	
Pitango Venture Capital Fund II Trusts 2000
L.P.

	
 

	
 

	
374,857

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
8,556,162

	
 

	
 

	
14,184

	
 

	
 

	
8,181,305

	
 

	
Canada Israel Opportunity Fund III, L.P.

	
 

	
 

	
62,160

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
1,478,388

	
 

	
 

	
2,520

	
 

	
 

	
1,416,228

	
 

	
Shrem, Fudim, Kelner Founders Group II
L.P.

	
 

	
 

	
45,308

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
1,149,037

	
 

	
 

	
2,520

	
 

	
 

	
1,103,729

	
 

	
Shrem Fudim Kelner Founders Group II Annex Fund
L.P.

	
 

	
 

	
16,753

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
327,592

	
 

	
 

	
0

	
 

	
 

	
310,839

	
 

	
Shrem, Fudim Kelner & Co Ltd.

	
 

	
 

	
35,119

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
853,192

	
 

	
 

	
1,679

	
 

	
 

	
818,073

	
 

	
Qualitau Ltd.

	
 

	
 

	
355,522

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
9,016,252

	
 

	
 

	
26,879

	
 

	
 

	
8,660,730

	
 

	
SVE Star Ventures Enterprises Gmbh & Co. No. IX
KG.

	
 

	
 

	
3,581,174

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
82,905,150

	
 

	
 

	
318,075

	
 

	
 

	
79,323,976

	
 

	
Star Management of Investments No. II (2000)
L.P.

	
 

	
 

	
470,493

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
11,068,374

	
 

	
 

	
45,943

	
 

	
 

	
10,597,881

	
 

	
Star Growth Enterprise, a German Civil Law
Partnership (with
  limitation of Liability)

	
 

	
 

	
3,595,901

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
72,016,603

	
 

	
 

	
0

	
 

	
 

	
68,420,702

	
 

	
SVM Star Ventures Managmenttgesellschaft mbH Nr.
3

	
 

	
 

	
334,236

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
6,986,689

	
 

	
 

	
0

	
 

	
 

	
6,652,453

	
 

	
Genesis Partners II, L.D.C.

	
 

	
 

	
4,113,040

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
92,519,033

	
 

	
 

	
253,679

	
 

	
 

	
88,405,993

	
 

	
Genesis Partners II (Israel) L.P.

	
 

	
 

	
607,717

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
13,672,074

	
 

	
 

	
37,535

	
 

	
 

	
13,064,357

	
 

	
Lehman Brothers European Venture Capital
L.P.

	
 

	
 

	
222,108

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
5,632,789

	
 

	
 

	
41,998

	
 

	
 

	
5,410,681

	
 

	
Lehman Brothers Holdings plc (on behalf of pre-tax
plan)

	
 

	
 

	
425,109

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
10,781,014

	
 

	
 

	
80,384

	
 

	
 

	
10,355,905

	
 

	
Lehman Brothers Partnership Account 2000/2001,
L.P.

	
 

	
 

	
191,536

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
4,857,465

	
 

	
 

	
36,217

	
 

	
 

	
4,665,929

	
 

	
Lehman Brothers Offshore Partnership Account
2000/2001, L.P.

	
 

	
 

	
49,677

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
1,259,838

	
 

	
 

	
9,393

	
 

	
 

	
1,210,161

	
 

	
Orbotech

	
 

	
 

	
1,776,860

	
 

	
 

	
0

	
 

	
 

	
 

	
 

	
 

	
45,062,231

	
 

	
 

	
335,988

	
 

	
 

	
43,285,371

	
 

	
Intel

	
 

	
 

	
1,255,074

	
 

	
 

	
0

	
 

	
 

	
 

	
 

	
 

	
29,466,788

	
 

	
 

	
134,395

	
 

	
 

	
28,211,714

	
 

	
Poalim Ventures Ltd.

	
 

	
 

	
447,960

	
 

	
 

	
0

	
 

	
 

	
 

	
 

	
 

	
9,384,098

	
 

	
 

	
0

	
 

	
 

	
8,936,138

	
 

	
Poalim Ventures I Ltd.

	
 

	
 

	
689,168

	
 

	
 

	
0

	
 

	
 

	
 

	
 

	
 

	
14,437,049

	
 

	
 

	
0

	
 

	
 

	
13,747,881

	
 

	
Poalim Ventures II  L.P.

	
 

	
 

	
1,397,290

	
 

	
 

	
0

	
 

	
 

	
 

	
 

	
 

	
29,271,156

	
 

	
 

	
0

	
 

	
 

	
27,873,866

	
 

	
Wellington Partners Venture III Technology Fund
L.P.

	
 

	
 

	
3,799,359

	
 

	
 

	
0

	
 

	
 

	
 

	
 

	
 

	
79,800,110

	
 

	
 

	
0

	
 

	
 

	
76,000,751

	
 

	
Amadeus III

	
 

	
 

	
3,285,579

	
 

	
 

	
0

	
 

	
 

	
 

	
 

	
 

	
73,094,003

	
 

	
 

	
0

	
 

	
 

	
69,808,424

	
 

	
Amadeus III Affiliates Fund LP

	
 

	
 

	
67,053

	
 

	
 

	
0

	
 

	
 

	
 

	
 

	
 

	
1,491,723

	
 

	
 

	
0

	
 

	
 

	
1,424,670

	
 

	
Financiere Seso S.A

	
 

	
 

	
159,620

	
 

	
 

	
0

	
 

	
 

	
159,620

	
 

	
 

	
 

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
Inter Hightech (1982) Ltd.

	
 

	
 

	
71,829

	
 

	
 

	
0

	
 

	
 

	
71,829

	
 

	
 

	
 

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
Service Providers

	
 

	
 

	
0

	
 

	
 

	
32,769

	
 

	
 

	
32,769

	
 

	
 

	
 

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
TICI

	
 

	
 

	
0

	
 

	
 

	
87,791

	
 

	
 

	
87,791

	
 

	
 

	
 

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
Tmura Fund

	
 

	
 

	
0

	
 

	
 

	
5,000

	
 

	
 

	
5,000

	
 

	
 

	
 

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
ESOP IL Plan(1)(2) (exercise)

	
 

	
 

	
393,500

	
 

	
 

	
 

	
 

	
 

	
393,500

	
 

	
 

	
 

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
ESOP IL Plan

	
 

	
 

	
0

	
 

	
 

	
5,031,003

	
 

	
 

	
5,031,003

	
 

	
 

	
 

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
ESOP US Plan

	
 

	
 

	
0

	
 

	
 

	
605,000

	
 

	
 

	
605,000

	
 

	
 

	
 

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
New ESOP

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
0

	
 

	
 

	
 

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
Plenus Technologies Ltd

	
 

	
 

	
 

	
 

	
 

	
1,556,437

	
 

	
 

	
1,556,437

	
 

	
 

	
 

	
 

	
 

	
0

	
 

	
 

	
0

	
 

	
 

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	
Total

	
 

	
 

	
35,715,751 

	
 

	
 

	
7,318,000 

	
 

	
 

	
7,942,949 

	
 

	
 

	
786,351,957 

	
 

	
 

	
1,659,779 

	
 

	
 

	
751,261,155 

	
 

	
 

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

Schedule 1.3(a)  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Post Consolidation & Before Closing

	
 

	
Conversion into Ordinary Preferred A/B Shares

	
 

	
 

	
 

	

	
 

	

	
 

	
Name

	
 

	
# Warrants to

  purchase Ordinary

  (Originally

  Preferred AA)

	
 

	
# Ordinary

	
 

	
Ordinary

	
 

	
# Warrants to

  purchase

  Ordinary

  (Originally

  Preferred AA)

	
 

	
# Options to

  Purchase

  Ordinary

	
 

	
# Warrants to

  Purchase

  Ordinary

	
 

	
Ordinary

  Preferred A

	
 

	
Ordinary

  Preferred B

	
 

	
Ordinary

  Preferred

  B 85% Anti-

  Dilution

	
 

	
Total

  Ordinary

  Preferred B

	
 

	
Total holdings

	
 

	
% Fully

  Diluted on an as converted basis

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pitango Venture Capital Fund III (Israeli
  Sub) L.P.

	
 

	
2,015

	
 

	
1,215,360

	
 

	
 

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
736,047

	
 

	
479,313

	
 

	
497,606

	
 

	
976,919

	
 

	
1,712,966

	
 

	
11.34

	
%

	
Pitango Venture Capital Fund III (Israeli
  Sub.) Non-Q L.P.

	
 

	
186

	
 

	
112,354

	
 

	
 

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
68,044

	
 

	
44,310

	
 

	
46,001

	
 

	
90,311

	
 

	
158,355

	
 

	
1.05

	
%

	
Pitango Venture Capital Fund III (Israeli
  Investors) L.P.

	
 

	
545

	
 

	
328,637

	
 

	
 

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
199,026

	
 

	
129,611

	
 

	
134,558

	
 

	
264,169

	
 

	
463,195

	
 

	
3.07

	
%

	
Pitango Parallel Investor Fund III
  (Israel), L P

	
 

	
367

	
 

	
113,519

	
 

	
 

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
113,519

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
113,519

	
 

	
0.75

	
%

	
Pitango Principles Fund III (Israel) L.P.

	
 

	
71

	
 

	
42,781

	
 

	
 

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
25,909

	
 

	
16,872

	
 

	
17,516

	
 

	
34,388

	
 

	
60,297

	
 

	
0.40

	
%

	
Pitango Venture Capital Fund II Trusts 2000
  L.P.

	
 

	
142

	
 

	
85,562

	
 

	
 

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
51,818

	
 

	
33,744

	
 

	
35,032

	
 

	
68,776

	
 

	
120,594

	
 

	
0.80

	
%

	
Canada Israel Opportunity Fund III, L.P.

	
 

	
25

	
 

	
14,784

	
 

	
 

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
11,490

	
 

	
3,294

	
 

	
3,420

	
 

	
6,714

	
 

	
18,204

	
 

	
0.12

	
%

	
Shrem, Fudim, Kelner Founders Group II L.P.

	
 

	
25

	
 

	
11,490

	
 

	
 

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
11,490

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
11,490

	
 

	
0.08

	
%

	
Shrem Fudim Kelner Founders Group II Annex
  Fund L.P.

	
 

	
 

	
 

	
3,276

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
3,276

	
 

	
3,401

	
 

	
6,677

	
 

	
6,677

	
 

	
0.04

	
%

	
Shrem, Fudim Kelner & Co Ltd.

	
 

	
17

	
 

	
8,532

	
 

	
 

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
7,656

	
 

	
876

	
 

	
909

	
 

	
1,785

	
 

	
9,441

	
 

	
0.06

	
%

	
Qualitau Ltd.

	
 

	
269

	
 

	
90,163

	
 

	
90,163

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
-

	
 

	
90,163

	
 

	
0.60

	
%

	
SVE Star Ventures Enterprises Gmbh &
  Co. No. IX KG.

	
 

	
3,181

	
 

	
829,051

	
 

	
 

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
564,076

	
 

	
264,975

	
 

	
270,620

	
 

	
551,568

	
 

	
1,109,999

	
 

	
7.35

	
%

	
Star Management of Investments No. II
  (2000) L.P.

	
 

	
459

	
 

	
110,684

	
 

	
 

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
81,475

	
 

	
29,209

	
 

	
29,760

	
 

	
60,657

	
 

	
141,581

	
 

	
0.94

	
%

	
Star Growth Enterprise, a German Civil Law
  Partnership (with limitation of Liability)

	
 

	
 

	
 

	
720,166

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
720,166

	
 

	
717,176

	
 

	
1,461,726

	
 

	
1,464,716

	
 

	
9.69

	
%

	
SVM Star Ventures Managmenttgesellschaft
  mbH Nr. 3

	
 

	
 

	
 

	
69,867

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
69,867

	
 

	
66,661

	
 

	
135,866

	
 

	
139,072

	
 

	
0.92

	
%

	
Genesis Partners II, L.D.C.

	
 

	
2,537

	
 

	
925,191

	
 

	
 

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
449,869

	
 

	
475,322

	
 

	
493,463

	
 

	
968,785

	
 

	
1,418,654

	
 

	
9.39

	
%

	
Genesis Partners II (Israel) L.P.

	
 

	
375

	
 

	
136,720

	
 

	
 

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
66,572

	
 

	
70,148

	
 

	
72,825

	
 

	
142,973

	
 

	
209,545

	
 

	
1.39

	
%

	
Lehman Brothers European Venture Capital
  L.P.

	
 

	
420

	
 

	
56,328

	
 

	
56,328

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
56,328

	
 

	
0.37

	
%

	
Lehman Brothers Holdings plc (on behalf of
  pre-tax plan)

	
 

	
804

	
 

	
107,810

	
 

	
107,810

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
107,810

	
 

	
0.71

	
%

	
Lehman Brothers Partnership Account
  2000/2001, L.P.

	
 

	
362

	
 

	
48,575

	
 

	
48,575

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
48,575

	
 

	
0.32

	
%

	
Lehman Brothers Offshore Partnership
  Account 2000/2001, L.P.

	
 

	
94

	
 

	
12,598

	
 

	
12,598

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
12,598

	
 

	
0.08

	
%

	
Orbotech

	
 

	
3,360

	
 

	
450,622

	
 

	
450,622

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
450,622

	
 

	
2.98

	
%

	
Intel

	
 

	
1,344

	
 

	
294,668

	
 

	
294,668

	
 

	
canceled

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
-

	
 

	
294,668

	
 

	
1.95

	
%

	
Poalim Ventures Ltd.

	
 

	
 

	
 

	
93,841

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
93,841

	
 

	
97,423

	
 

	
191,264

	
 

	
191,264

	
 

	
1.27

	
%

	
Poalim Ventures I Ltd.

	
 

	
 

	
 

	
144,370

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
144,370

	
 

	
149,880

	
 

	
294,250

	
 

	
294,250

	
 

	
1.95

	
%

	
Poalim Ventures II L.P.

	
 

	
 

	
 

	
292,712

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
292,712

	
 

	
303,884

	
 

	
596,596

	
 

	
596,596

	
 

	
3.95

	
%

	
Wellington Partners Venture III Technology
  Fund L.P.

	
 

	
 

	
 

	
798,001

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
798,001

	
 

	
828,457

	
 

	
1,626,458

	
 

	
1,626,458

	
 

	
10.76

	
%

	
Amadeus III

	
 

	
 

	
 

	
730,940

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
730,940

	
 

	
758,837

	
 

	
1,489,777

	
 

	
1,489,777

	
 

	
9.86

	
%

	
Amadeus III Affiliates Fund LP

	
 

	
 

	
 

	
14,917

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
14,917

	
 

	
15,486

	
 

	
30,403

	
 

	
30,403

	
 

	
0.20

	
%

	
Financiere Seso S.A

	
 

	
 

	
 

	
1,596

	
 

	
1,596

	
 

	
-

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
1,596

	
 

	
0.01

	
%

	
Inter Hightech (1982) Ltd.

	
 

	
 

	
 

	
718

	
 

	
718

	
 

	
-

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
718

	
 

	
0.00

	
%

	
Service Providers

	
 

	
 

	
 

	
328

	
 

	
-

	
 

	
-

	
 

	
 

	
 

	
328

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
328

	
 

	
0.00

	
%

	
TICI

	
 

	
 

	
 

	
878

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
878

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
878

	
 

	
0.01

	
%

	
Tmura Fund

	
 

	
 

	
 

	
50

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
50

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
50

	
 

	
0.00

	
%

	
ESOP IL Plan(1)(2) (exercise)

	
 

	
 

	
 

	
3,935

	
 

	
3,935

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
3,935

	
 

	
0.03

	
%

	
ESOP IL Plan

	
 

	
 

	
 

	
50,310

	
 

	
 

	
 

	
 

	
 

	
50,310

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
50,310

	
 

	
0.33

	
%

	
ESOP US Plan

	
 

	
 

	
 

	
6,050

	
 

	
-

	
 

	
 

	
 

	
6,050

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
6,050

	
 

	
0.04

	
%

	
New ESOP

	
 

	
 

	
 

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
2,584,209

	
 

	
17.10

	
%

	
Plenus Technologies Ltd

	
 

	
 

	
 

	
15,564

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
15,564

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
15,564

	
 

	
0.10

	
%

	
 

	
 

	

	
 

	
 

	
 

	

	
 

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
Total

	
 

	
16,598

	
 

	
 

	
 

	
1,067,013

	
 

	
 

	
 

	
56,360

	
 

	
16,820

	
 

	
2,386,991

	
 

	
4,415,764

	
 

	
4,584,298

	
 

	
9,000,062

	
 

	
15,111,455

	
 

	
100.00

	
%

	
 

	
 

	

	
 

	
 

	
 

	

	
 

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

Schedule 1.3(b)  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pro-Rata Assuming Full Participation

	
 

	
 

	
 

	

	
 

	
Name

	
 

	
# Total Shares 

  on an as
 converted basis

	
 

	
% Issued &
 Outstanding on
 an as converted
 basis

	
 

	
Pro Rata $

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pitango Venture Capital Fund III (Israeli
  Sub) L.P.

	
 

	
 

	
1,430,947

	
 

	
 

	
14.44

	
%

	
$

	
2,167,856.92 

	
 

	
Pitango Venture Capital Fund III (Israeli
  Sub.) Non-Q L.P.

	
 

	
 

	
132,284

	
 

	
 

	
1.34

	
%

	
$

	
200,407.69 

	
 

	
Pitango Venture Capital Fund III (Israeli
  Investors) L.P.

	
 

	
 

	
386,934

	
 

	
 

	
3.91

	
%

	
$

	
586,197.50 

	
 

	
Pitango Parallel Investor Fund III
  (Israel), L.P

	
 

	
 

	
113,519

	
 

	
 

	
1.15

	
%

	
$

	
171,979.08 

	
 

	
Pitango Principles Fund III (Israel) L.P.

	
 

	
 

	
50,370

	
 

	
 

	
0.51

	
%

	
$

	
76,309.57 

	
 

	
Pitango Venture Capital Fund II Trusts 2000
  L.P.

	
 

	
 

	
100,739

	
 

	
 

	
1.02

	
%

	
$

	
152,617.63 

	
 

	
Canada Israel Opportunity Fund III, L.P.

	
 

	
 

	
16,266

	
 

	
 

	
0.16

	
%

	
$

	
24,642.67 

	
 

	
Shrem, Fudim, Kelner Founders Group II L.P.

	
 

	
 

	
11,490

	
 

	
 

	
0.12

	
%

	
$

	
17,407.13 

	
 

	
Shrem Fudim Kelner Founders Group II Annex
  Fund L.P.

	
 

	
 

	
4,749

	
 

	
 

	
0.05

	
%

	
$

	
7,194.64 

	
 

	
Shrem, Fudim Kelner & Co Ltd.

	
 

	
 

	
8,926

	
 

	
 

	
0.09

	
%

	
$

	
13,522.72 

	
 

	
Qualitau Ltd.

	
 

	
 

	
90,163

	
 

	
 

	
0.91

	
%

	
$

	
136,595.19 

	
 

	
SVE Star Ventures Enterprises Gmbh &
  Co. No. IX KG.

	
 

	
 

	
948,232

	
 

	
 

	
9.57

	
%

	
$

	
1,436,553.07 

	
 

	
Star Management of Investments No. II
  (2000) L.P.

	
 

	
 

	
123,822

	
 

	
 

	
1.25

	
%

	
$

	
187,587.93 

	
 

	
Star Growth Enterprise, a German Civil Law
  Partnership (with limitation of Liability)

	
 

	
 

	
1,044,084

	
 

	
 

	
10.54

	
%

	
$

	
1,581,766.99 

	
 

	
SVM Star Ventures Managmenttgesellschaft
  mbH Nr. 3

	
 

	
 

	
101,292

	
 

	
 

	
1.02

	
%

	
$

	
153,455.41 

	
 

	
Genesis Partners II, L.D.C.

	
 

	
 

	
1,138,983

	
 

	
 

	
11.50

	
%

	
$

	
1,725,537.13 

	
 

	
Genesis Partners II (Israel) L.P.

	
 

	
 

	
168,271

	
 

	
 

	
1.70

	
%

	
$

	
254,927.30 

	
 

	
Lehman Brothers European Venture Capital
  L.P.

	
 

	
 

	
56,328

	
 

	
 

	
0.57

	
%

	
$

	
85,335.83 

	
 

	
Lehman Brothers Holdings plc (on behalf of
  pre-tax plan)

	
 

	
 

	
107,810

	
 

	
 

	
1.09

	
%

	
$

	
163,330.06 

	
 

	
Lehman Brothers Partnership Account
  2000/2001, L.P.

	
 

	
 

	
48,575

	
 

	
 

	
0.49

	
%

	
$

	
73,590.18 

	
 

	
Lehman Brothers Offshore Partnership
  Account 2000/2001, L.P.

	
 

	
 

	
12,598

	
 

	
 

	
0.13

	
%

	
$

	
19,085.73 

	
 

	
Orbotech

	
 

	
 

	
450,622

	
 

	
 

	
4.55

	
%

	
$

	
682,683.58 

	
 

	
Intel

	
 

	
 

	
346,132

	
 

	
 

	
3.49

	
%

	
$

	
524,383.26 

	
 

	
Poalim Ventures Ltd.

	
 

	
 

	
136,049

	
 

	
 

	
1.37

	
%

	
$

	
206,111.59 

	
 

	
Poalim Ventures I Ltd.

	
 

	
 

	
209,305

	
 

	
 

	
2.11

	
%

	
$

	
317,093.01 

	
 

	
Poalim Ventures II  L.P.

	
 

	
 

	
424,369

	
 

	
 

	
4.28

	
%

	
$

	
642,910.79 

	
 

	
Wellington Partners Venture III Technology
  Fund L.P.

	
 

	
 

	
1,156,928

	
 

	
 

	
11.68

	
%

	
$

	
1,752,723.46 

	
 

	
Amadeus III

	
 

	
 

	
1,059,704

	
 

	
 

	
10.70

	
%

	
$

	
1,605,430.98 

	
 

	
Amadeus III Affiliates Fund LP

	
 

	
 

	
21,626

	
 

	
 

	
0.22

	
%

	
$

	
32,762.97 

	
 

	
 

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	
Total

	
 

	
 

	
9,907,366

	
 

	
 

	
99.94

	
%

	
$

	
15,000,000.00 

	
 

	
 

	
 

	

	

	
 

	

	

	
 

	

	

	
 

Schedule 1.5(a)(i)  

MINUTES
OF AN EXTRAORDINARY GENERAL MEETING

AND CLASS MEETINGS 

OF THE SHAREHOLDERS

OF NEGEVTECH LTD. 

(the  “Company”)

	
   
	
   
	
   

	
  

	
   
	
   
	
   

	
  PLACE:
	
  The
  Company’s offices at 12 Hamada St., Rehovot, ISRAEL

	
   
	
   
	
   

	
  DATE:
	
  July
  6, 2007

	
   
	
   
	
   

	
  TIME:
	
  1.
	
  16:00 - A meeting of holders of Series AA Preferred Shares.

	
   
	
  2.
	
  16:10
  - A meeting of holders of Series BB Preferred Shares.

	
   
	
  3.
	
  16:20 - A meeting of
  holders of Series BB-1 Preferred Shares.

	
   
	
  4.
	
  16:30 - A meeting of
  holders of Series BB-2 Preferred Shares.

	
   
	
  5.
	
  16:40 - A meeting of
  holders of Series BB-3 Preferred Shares.

	
   
	
  6.
	
  16:50 - A meeting of
  holders of Series BB-4 Preferred Shares.

	
   
	
  7.
	
  17:00 - A meeting of
  holders of all Preferred Shares.

	
   
	
  8.
	
  17:10 -
  An Extraordinary General Meeting of all Shareholders.

	
   
	
   

	
  SHAREHOLDERS 

  PRESENT:
	
  By
  Proxy granted to the Company’s CFO, Oz Desheh, the following shareholders of the Company,
  holding 98.898% of the voting power in the Company on an as converted basis:

	
   
	
   

	
   
	
  Pitango
  entities, Star entities, Shrem Fudim Kelner entities, Genesis entities,
  Lehman Brothers entities, Orbotech Technology Ventures L.P., Intel Atlantic, Inc.,
  Poalim entities, Qualitau Ltd., Wellington Partners Venture III Technology Fund L.P., Amadeus
  entities, Financiere Seso S.A, Inter Hightech (1982) Ltd.; Rivi Sherman (as a trustee under US ESOP)

	
   
	
   

	
  SHAREHOLDERS

  ABSENT:
	
  Eli
  Lerner, Employees’ trustee under IL ESOP (holding 1.102% of the voting power in the Company on an
  as converted basis)

	
   
	
   

	
  CHAIRMAN:
	
  Aaron Mankovsky

	
   
	
   
	
   

	
  AGENDA:
	
  1.
	
  Increase of Share Capital

	
   
	
   
	
   

	
   
	
  2.
	
  Recapitalization

	
   
	
   
	
   

	
   
	
  3.
	
  Adoption of New Articles

	
   
	
   
	
   

	
   
	
  4.
	
  I.
  Series A1 Preferred Share Financing

	
   
	
   
	
   

	
   
	
   
	
  II. Increase of Option
  Pool

	
   
	
   
	
   

	
   
	
  5.
	
  Approval
  of “Interested Party” Transactions

	
   
	
   
	
   

	
   
	
  6.
	
  Waiver
  of rights

	
   
	
   
	
   

	
   
	
   
	
       I.             Anti-dilution
Rights

	
   
	
   
	
   

	
   
	
   
	
       II.            Pre-emptive
Rights

	
   
	
   
	
   

	
   
	
   
	
       III.          Change of
Rights

	
   
	
   
	
   

	
   
	
  7.
	
  Omnibus
  Resolutions

Call to Order

Oz Desheh, presiding as
secretary of the meetings, called the meetings to order and announced that a
quorum of shareholders was present and that each of the meetings, having been
duly convened, were ready to proceed with their business.

	
   
	
   

	
  I.
	
  INCREASE OF SHARE CAPITAL

          VOTE
AGAINST: Qualitau Ltd., holding 1% of the voting power of shareholders present;

          VOTE
FOR: All other Shareholders present, holding 99% of the voting power of the shareholders presented.

          RESOLVED,
by the aforementioned majority, to increase the Company’s registered share
capital such that following the Recapitalization and the Closing (as such terms defined
below), the registered share capital of the Company shall consist of NIS 56,000,000,
divided into 30,000,000 Ordinary Shares of par value NIS 1.00 per share, 12,500,000
Series A1 Preferred Shares, of par value NIS 1.00 per share, 3,500,000 Ordinary
Preferred A Shares, of par value NIS 1.00 NIS per share and 10,000,000 Ordinary Preferred B Shares, of
par value NIS 1.00 per share;

          FURTHER
RESOLVED, by the aforementioned majority, that the Board shall be authorized to make
such adjustments to the numbers of shares of the aforementioned registered share capital of the Company, as it shall
deem necessary to ensure that the Company’s
registered share capital shall include sufficient number of the shares that should be issued and outstanding
immediately following the Closing in accordance
with the terms of this Shareholders’ Written Consent

	
   
	
   

	
  II.
	
  RECAPITALIZATION

	
   
	
   

	
  1.
	
  Conversion of Preferred Shares

          VOTE
AGAINST: Qualitau Ltd., holding 1.013% of the voting power of Preferred Shareholders
present and 2.705% of the voting power of Series AA Preferred Shareholders present;

          VOTE
FOR: All other Preferred Shareholders present, holding 98.987% of the voting power of the Preferred
Shareholders present, 97.275% of the voting power of Series AA Preferred Shareholders present and 100% of the voting power
of the holders of each of the
Company’s Series BB-1, BB-2, BB-3 and BB-4 Preferred shares.

          RESOLVED
AS FOLLOWS, by the aforementioned majority of (i) the holders of the
Company’s Preferred Shares, (ii) the holders of the Company’s Series AA Preferred Shares and unanimously
by (iii) the BB Preferred Shareholders, and (iv) the holders of each of the Company’s Series BB-1, BB-2, BB-3 and
BB-4 Preferred Shares, each of them voting as a separate class;

          RESOLVED,
to elect, in accordance with Article 9(a)(2) of the Company’s articles of association (the “Current Articles”) to convert all
outstanding Preferred Shares of the Company
into Ordinary Shares of the Company (the “Ordinary Shares”), on a one to one basis, to be effective subject to
and immediately prior to the closing of the
Company’s proposed Series A1 Preferred Shares financing under the proposed
Series A1 Purchase Agreement substantially in the form attached hereto as Exhibit
Al (the “Closing”, the “A1 Purchase Agreement”, respectively);

          FURTHER
RESOLVED, subject to and immediately prior to the Closing, all of the issued and outstanding Series AA
Preferred Shares and Series BB-1, BB-2, BB-3
and BB-4 Preferred Shares of the Company, nominal value NIS 0.01 each,
currently held by all holders of
Preferred Shares (the “Original Preferred AA
Shares”, “Original
Preferred BB Shares”, respectively) shall automatically be converted
into the same number of fully paid and non-assessable shares of Ordinary Shares
of the Company, nominal value 0.01 NIS each
(the “Converted Ordinary Shares”),
in accordance with the terms and
conditions of the Current Articles and all of the registered (authorized) and unissued Series AA
Preferred Shares and Series BB-1, BB-2,
BB-3 and BB-4 Preferred Shares of the Company shall automatically be converted into the same number of registered
(authorized) and unissued Ordinary Shares
of the Company, nominal value NIS 0.01 each.

	
   
	
   

	
  2.
	
  Reallocation, Consolidation &
  Anti-Dilution Protection

          VOTE
AGAINST: Qualitau
Ltd., holding 1% of the voting power of the Shareholders
present, 1.013% of the voting power of Preferred Shareholders present and
2.705% of the voting power of Series AA Preferred Shareholders present;

          VOTE
FOR: All other
Shareholders present, holding 99% of the voting power of the Shareholders present, 98.987% of the voting power of the
Preferred Shareholders
present, 97.275% of the voting power of Series AA Preferred Shareholders present, 100% of the voting
power of the holders of each of the Company’s
Series BB-1, BB-2, BB-3 and BB-4 Preferred shares and 100% of the voting
power of the Ordinary Shareholders present.

          RESOLVED
AS FOLLOWS, by aforementioned majority of (i) all the Shareholders present,
(ii) the Preferred Shareholders and (iii) the Series AA Preferred Shareholders, and unanimously by (i)
the Ordinary Shareholders present, (ii) the BB Preferred Shareholders and (iii)
holders of series of BB1, BB2, BB3 and BB4 Preferred Shares, each voting as a
separate class;

          RESOLVED
that it is advisable to authorize and approve a recapitalization of the Company’s registered and issued share capital
as reflected in the Capitalization Table
attached hereto as Exhibit A2 (the “Capitalization
Table”), to be effective subject
to and immediately prior to the Closing (the “Recapitalization”);

          FURTHER
RESOLVED, that the Recapitalization shall be authorized and approved, subject to and effective immediately
prior to the Closing, such that the following
actions shall be executed immediately prior to the Closing, all as reflected in the Capitalization Table:

(a) an additional number of Ordinary Shares shall
be issued to each holder of Original Preferred AA Shares and Original Preferred
BB Shares so as to bring the total number of the Converted Ordinary Shares and
the additional Ordinary Shares so issued to 99%
of the fully diluted share capital of the Company (the fully diluted share
capital shall exclude for such
purpose any warrants to purchase Preferred AA Shares, as adjusted pursuant to the Recapitalization, to the
extent not cancelled), to be allocated among the holders of Original
Preferred AA Shares and Original Preferred BB Shares in proportion to the total cash amounts previously paid to the Company
for the purchase of all such Original
Preferred AA Shares and Original Preferred BB Shares held by them, as set forth
in the Reallocation Table attached hereto as Exhibit C (the “Reallocation
Ordinary Shares”); and

(b) a 100:1 consolidation of
the entire share capital of the Company shall be affected, and immediately prior to such consolidation
an additional number of Ordinary Shares shall
be issued to each holder, as may be necessary in order to round to the nearest whole number any fractions of shares which
otherwise would have been resulted from such consolidation (the “Consolidation”);
and

(c) an additional number of Ordinary Shares shall
be issued to each holder of Original Preferred
BB Shares who is a Participating Investor (as defined in the A1 Purchase Agreement), in consideration of the waiver by the
holders of Original Preferred BB Shares of the existing full-ratchet
anti-dilution protection attached to the Original Preferred BB Shares, such additional number of Ordinary Shares resulting
from applying 85% of the full-ratchet protection such holders of
Original Preferred BB Shares would have been entitled to receive upon the
Closing, had such protection been applied to
the Ordinary Preferred B Shares (as defined below) received by such holders, assuming a price per Ordinary Preferred
B Share that is equal to US$20,000,000
divided by the aggregate number of Converted Ordinary Shares and Reallocation
Ordinary Shares (the “Anti-Dilution Ordinary
Shares”);

(d)
All outstanding warrants in the Company to purchase Original Preferred AA Shares (to the extent not cancelled) and
warrants to purchase Original Preferred BB Shares
shall be automatically adjusted into warrants to purchase Ordinary Shares of the
Company, followed by an adjustment of the number of purchasable shares and
exercise price as a result of the Consolidation.

The
Converted Ordinary Shares, the Reallocation Ordinary Shares and the Anti-Dilution Ordinary Shares
shall together be referred to as the “Recap
Ordinary Shares”.

	
   
	
   

	
  III.
	
  ADOPTION OF NEW ARTICLES

          VOTE
AGAINST: Qualitau
Ltd., holding 1% of the voting power of the Shareholders
present, 1.013% of the voting power of Preferred Shareholders present and
2.705% of the voting power of Series AA Preferred Shareholders present;

          VOTE
FOR: All other
Shareholders present, holding 99% of the voting power of the Shareholders
presented, 98.987% of the voting power of the Preferred Shareholders present, 97.275% of the voting power of Series AA Preferred
Shareholders
present, 100% of the voting power of the holders of each of the Company’s Series BB-1, BB-2, BB-3 and BB-4
Preferred shares and 100% of the voting power of the Ordinary
Shareholders present.

          RESOLVED
AS FOLLOWS, by aforementioned majority of (i) all the Shareholders present, (ii) the Preferred
Shareholders and (iii) the Series AA preferred Shareholders, and unanimously
by (i) the Ordinary Shareholders present, (ii) the BB Preferred Shareholders (iii) holders of series of BB1, BB2, BB3 and BB4
Preferred Shares, each voting as a separate class;

          WHEREAS,
in connection with the Closing and as a result of the Recapitalization, it is necessary to adopt
certain changes to the Current Articles; and

          WHEREAS,
without limitation from the generality of the above, it is necessary to increase
the Company’s registered share capital in effect following the Recapitalization
and to create (i) the Company’s Series A1 Preferred Shares proposed to be sold upon the
Closing, (ii) the Ordinary Preferred A Shares and (iii) the Ordinary Preferred B Shares;

          BE
IT RESOLVED to approve and adopt, subject to and effective immediately prior to
the Closing, the New Articles of Association substantially in the form attached
hereto
as Exhibit A4 (the “New Articles”), as the Articles of Association
of the Company,
such New Articles to be filed by the Company with the Registrar of Companies, in place of the Current Articles;

	
   
	
   

	
  IV.
	
   APPROVAL OF SERIES A1 PREFERRED SHARES FINANCING

	
   

	
  1.
	
  Sale & Issuance of Series Al
  Preferred Shares

          VOTE
AGAINST: Qualitau Ltd., holding 1% of the voting power of the Shareholders present, 1.013% of the voting
power of Preferred Shareholders present and 2.705% of the voting power of
Series AA Preferred Shareholders present;

          VOTE
FOR: All other Shareholders present, holding 99% of the voting power of the Shareholders present, 98.987% of
the voting power of the Preferred Shareholders
present, 97.275% of the voting power of Series AA Preferred Shareholders
present and 100% of the voting power of the holders of each of the Company’s
Series BB-1, BB-2, BB-3 and BB-4 Preferred shares.

          RESOLVED
AS FOLLOWS, by aforementioned majority of (i) all the Shareholders present, (ii) the Preferred
Shareholders and (iii) the Series AA preferred Shareholders, and unanimously by (i) the BB Preferred
Shareholders and (ii) holders of
series of BB1, BB2, BB3 and BB4 Preferred Shares, each voting as a separate class;

          RESOLVED
that it is advisable to approve and authorize the proposed financing under the
A1 Purchase Agreement (as defined above) and that the consummation of the transactions provided for therein do not prejudice
the best interests of the Company;

          FURTHER
RESOLVED to authorize and approve, all subject to and effective immediately prior to the
Closing, the execution, delivery and performance of the A1 Purchase Agreement and
the consummation of the transactions provided for therein and the performance
by the Company of its obligations thereunder, including, inter alia, (i) the issuance
and sale of Series A1 Preferred Shares, (ii) the conversion of the Recap
Ordinary Shares (as defined above) held by Participating Investors (as defined in the A1 Purchase
Agreement) into Ordinary Preferred A Shares and Ordinary Preferred B Shares as provided in Section 1.3
of the A1 Purchase Agreement, (iii) the issuance
of any shares issuable upon the conversion thereof, and (iv) the payment and conversion of the Loan Amounts (as defined in
Section 1.6(c) of the A1 Purchase Agreement),
all of the above without need for any further act, approval or authority of the Company’s Board of Directors or of the
Shareholders of the Company, and all ancillary transactions, documents,
schedules and exhibits contemplated by and/or associated
with the A1 Purchase Agreement (whether or not approved separately herein);

          FURTHER
RESOLVED, to authorize and approve, all subject to and effective immediately prior to the
Closing, that certain Amended and Restated Shareholders Rights Agreement, between the Company and the
parties thereto, as defined therein, substantially
in the form attached hereto as Exhibit A3 (the “Amended Shareholders Rights Agreement”), including, inter alia, the
execution, delivery and performance of the Amended Shareholders Rights
Agreement;

          FURTHER
RESOLVED to authorize any two of the directors of the Company to execute and deliver
the A1 Purchase Agreement, the Amended Shareholders rights Agreement
and all ancillary documents and instruments (the “Transaction Documents”) on behalf
of the Company, with such changes therein or additions thereto as such directors executing the
Transaction Documents shall deem advisable; and
finally

          RESOLVED
to authorize and approve, all subject to and effective immediately prior to the
Closing, any other matter described or set forth in the Transaction Documents which requires the
authorization or approval of the Board of Directors
or of the Shareholders of the Company and to authorize any two of the directors
of the Company to take such acts and to execute such documents on behalf of
the Company as may be required to implement the Transaction Documents and the
transactions contemplated therein.

	
   
	
   

	
  2.
	
  Increase of Pool under Company’s Employee
  Share Option Plans

          VOTE
AGAINST: Qualitau Ltd., holding 1% of the voting power of the Shareholders present, 1.013% of the voting
power of Preferred Shareholders present;

          VOTE
FOR: All other Shareholders presented, holding 99% of the voting power of the Shareholders present and 98.987%
of the voting power of the Preferred Shareholders
present.

          RESOLVED,
by the aforementioned majority, that immediately prior to the Closing, the
number of Ordinary Shares reserved for allocation under the Company’s Employees Share Option Plans shall be increased so
as to equal 10% of the Company’s
share capital on an as converted and fully diluted basis, immediately following the Closing (excluding for the purpose
of such fully diluted basis calculation the warrants to purchase Series
AA Preferred Shares).

	
   
	
   

	
  V.
	
  APPROVAL
  OF INTERESTED PARTY TRANSACTION

          VOTE
AGAINST: Qualitau Ltd., holding 1% of the voting power of shareholders present;

          VOTE
FOR: All other
Shareholders presented, holding 99% of the voting power of the shareholders
present.

          RESOLVED,
by the aforementioned majority, that the shareholders of the Company are aware that it may be alleged that
certain of the directors of the Company have personal interests in the above
matters and the transactions contemplated
under the Transaction Documents, either as direct parties thereto or due
to their interests in parties thereto.

          FURTHER
RESOLVED, to approve the above matters and the transactions contemplated under the Transaction Documents,
as if it was deemed an “Interested Party Transaction” pursuant to the Companies
law, 5759-1999, due to the nature of the relationship existing between certain
parties to the Transaction Documents and their officers and directors and the
Company and its officers and directors;

	
   
	
   

	
  VI.
	
  WAIVER OF RIGHTS

	
   
	
   

	
  1.
	
  Waiver of Anti-Dilution Rights

          VOTE
AGAINST: Qualitau Ltd., holding 1.013% of the voting power of Preferred Shareholders
present and 2.705% of the voting power of Series AA Preferred Shareholders present;

          VOTE
FOR: All other
Preferred Shareholders presented, holding 98.987% of the voting power of the
Preferred Shareholders present, 97.275% of the voting power of Series AA Preferred Shareholders present and
100% of the voting power of the holders
of each of the Company’s Series BB-1, BB-2, BB-3 and BB-4 Preferred shares.

          RESOLVED
AS FOLLOWS, by the aforementioned majority of (i) the holders of the Company’s
Preferred Shares, (ii) the holders of the Company’s Series AA Preferred Shares and unanimously
by (iii) the holders of the Company’s Series BB Preferred Shareholders and (iv) holders of each
BB-1, BB-2, BB-3 and BB-4 Preferred
Shares, each of them voting as a separate class;

          WHEREAS,
upon the consummation of the transactions contemplated under the Transaction Documents, the holders
of Series AA Preferred Shares shall not
receive that certain anti-dilution protection such holders would have been entitled
to receive upon the Closing under Article 9(c) of the Current Articles; and

          WHEREAS,
upon the consummation of the transactions contemplated under the Transaction
Documents, the holders of Series BB-1, BB-2, BB-3 and BB-4 Preferred Shares (the “BB Preferred Holders”) shall not
receive
the full anti-dilution protection such BB
Preferred Holders would have been entitled to receive upon the Closing under Article 9(c)(l) of the Current Articles,
but rather only BB Preferred Holders
who become Participating Investors (as such term is defined in the A1 Purchase Agreement) shall
receive, immediately prior to the Closing only a partial protection;

          BE
IT RESOLVED, in accordance with Article 9(c)(5)(H) of the Current Articles, to
irrevocably waive their rights of anti-dilution protection under Article
9(c)(2) of the Current Articles with respect to the Closing and the
transactions contemplated under the Transaction Documents; and

          FURTHER
RESOLVED, in accordance with Article 9(c)(5)(H) of the Current Articles, to irrevocably waive,
subject to the issuance of the Anti-Dilution Ordinary
Shares (as defined above) their full rights of anti-dilution protection under Article 9(c)(l) of the Current Articles with
respect to the Closing and the transactions
contemplated under the Transaction Documents, such that only BB Preferred
Holders who become Participating Investors (as such term is defined in the A1 Purchase Agreement) shall receive,
immediately prior to the Closing only a partial
anti-dilution protection all as set forth in Section l.l(iv) of the A1 Purchase
Agreement.

	
   
	
   

	
  2.
	
  Waiver of pre-Emptive Rights and other
  Rights

          VOTE
AGAINST: None

          VOTE
FOR: All Shareholders present.

          RESOLVED
UNANIMOUSLY AS FOLLOWS, by vote of the shareholders of the Company, the
Preferred Shareholders and the shareholders who are Major Holders (as defined in the Current Articles):

          WHEREAS,
the Company’s Board of Directors has previously decided to offer all the Preferred
Shareholders of the Company to participate in the proposed financing contemplated
under the A1 Purchase Agreement, each in its Pro Rata Portion, as such term is
defined in Section 1.3 of the A1 Purchase Agreement;

          BE
IT RESOLVED, to irrevocably waive the rights of pre-emptive under Article 14 of the Current Articles with
respect to the Closing and the transactions contemplated
under the Transaction Documents;

	
   
	
   

	
  3.
	
  Change of Rights

          VOTE
AGAINST: Qualitau Ltd., holding 1% of the voting power of the Shareholders
present, 1.013% of the voting power of Preferred Shareholders present and 2.705% of the voting power of Series AA
Preferred Shareholders present;

          VOTE
FOR: All other Shareholders presented, holding 99% of the voting power of the Shareholders present, 98.987% of
the voting power of the Preferred Shareholders
present, 97.275% of the voting power of Series AA Preferred Shareholders
present, 100% of the voting power of the holders of each of the Company’s Series BB-1, BB-2, BB-3 and BB-4
Preferred shares and 100% of the voting power of the Ordinary
Shareholders present.

          RESOLVED
AS FOLLOWS, by aforementioned majority of (i) all the Shareholders present,
(ii) the Preferred Shareholders and (iii) the Series AA preferred Shareholders,
and unanimously by (i) the Ordinary Shareholders, (ii) the BB Preferred Shareholders, and (iii)
holders of series of BB-1, BB-2, BB-3 and BB-4 Preferred Shares, each voting as a separate class;

          RESOLVED,
to approve the changes in rights and privileges attached to the Company’s Ordinary Shares, Series AA Preferred
Shares, Series BB-1 Preferred Shares,
Series BB-2 Preferred Shares, Series BB-3 Preferred and Shares Series BB-4 Preferred Shares, respectively, resulting from
the consummation of the transactions contemplated
under the Transaction Documents, the Recapitalization, the terms of the A1 Purchase Agreement
and the New Articles

	
   
	
   

	
  VII.
	
  OMNIBUS RESOLUTIONS

          VOTE
AGAINST: Qualitau Ltd., holding 1% of the voting power of shareholders present;

          VOTE
FOR: All other Shareholders presented, holding 99% of the voting power of the shareholders present.

          RESOLVED
AS FOLLOWS, by the aforementioned majority:

          RESOLVED,
that the shareholders of the Company deem the actions sanctioned by the foregoing resolutions to be
advisable and in the best interests of the Company
and its shareholders.

          RESOLVED,
that any of the officers and directors of the Company be, and each of them
hereby is, authorized to prepare, execute, deliver and perform, as the case may be, such
agreements, amendments, applications, approvals, certificates, communications,
consents, demands, directions, documents, further assurances, instruments, notices,
orders, requests resolutions, supplements or undertakings, as each such officer, in
his discretion, shall deem necessary or advisable to carry out the intent and
purposes of the foregoing resolutions; and that the preparation, execution, delivery and performance of any such
agreements, amendments, applications, approvals,
certificates, communications, consents, demands, directions, documents, further
assurances, instruments, notices, orders, requests, resolutions, supplements or
undertakings shall be conclusive evidence of the approval of the
Company’s Board of Directors thereof and all matters relating thereto.

          RESOLVED,
that any and all actions heretofore taken by the officers of the Company in the name and on behalf of the
Company in furtherance of the preceding resolutions, are hereby ratified,
approved and adopted.

[THE REMAINDER OF THIS PAGE IS INTETIONALLY LEFT
BLANK]

Adjournment

There have been no further matters to come before the meetings, upon
motion duly made, each of the meetings were adjourned.

	
   
	
   

	
  Secretary of the Meeting Approved:
	
   

	
  
	
   

	
  

	
   

	
  Oz  Desheh
	
   

	
   
	
   

	
  Chairman of the Meeting Approved
	
   

	
  
	
   

	
  

	
   

	
  Aaron Mankovsky
	
   

Schedule 1.5(a)(ii)(a)  

			
			
			
	SHARES XXX 	 	NUMBER O1-XXX 
	 	 	 
		NEGEVTECH LTD. 	
	 	 	 
	Share Certificate  	 
	 	 	 
	
    [Shareholder]

This is to certify that

Is the Registered Holder of                XXX

[class] Shares of par value NIS 1.00 each,

Numbered                                   XXX - XXX

Inclusive, fully paid up in the above named Company, subject to

The Memorandum and Articles of Association of the Company.  	 
	 	 Given under the Company's Stamp

This __th day of ___, 2007 	 
	 	 	 
	——————————————

DIRECTOR	COMPANY STAMP	——————————————

 DIRECTOR
	 	 	 

Schedule 1.5(a)(ii)(b)  

Affidavit of Loss  

The undersigned states and undertakes
as follows: 

	 	1.       
The
undersigned is the true, lawful, present and sole holder of Share           Certificate
No. ______ (the “Share Certificate”), issued on           _________
evidencing ownership by the undersigned of ___________ Shares, par           value NIS
_______ per share, of Negevtech Ltd. (“Negevtech”). A
          photocopy of the Share Certificate is annexed hereto.  

	 	2.       
The
undersigned hereby certifies that the Share Certificate has in some manner
          become lost or destroyed and cannot be located. The undersigned believes that
          the Share Certificate has been lost or destroyed because the undersigned has
          diligently searched for it and has been unable to locate it. In the event that
          it is found, the undersigned will forthwith deliver it to Negevtech.  

	 	3.       
The
undersigned declares, represents and warrants that neither the Share
          Certificate nor the shares it represents nor any rights or interests therein
          were endorsed, and have not been pledged, charged, mortgaged, sold, delivered,
          transferred, assigned or otherwise encumbered in any way and no other party has
          any rights therein.  

	 	4.       
The
undersigned hereby agrees to indemnify and hold Negevtech and its respective
          successors and assigns harmless from and against any loss, damage, cost,
expense           (including reasonable attorneys’ fees) or liability that Negevtech
or any           of the aforesaid may suffer, sustain or become subject to, resulting
from or           relating to the Share Certificate, its loss and/or the issuance and
delivery of           a replacement certificate or certificates.  

	 	5.       
The
undersigned hereby further undertakes to promptly take all such actions and           to
execute such documents as may be required pursuant to applicable law or
          reasonably requested by Negevtech in connection with the above and agrees to
          bear all legal fees and other costs and expenses with respect thereto.  

	 	6.       
The
undersigned hereby represents that this Affidavit of Loss is made for the
          purpose of inducing Negevtech and its respective transfer agents, registrars
and           trustees, if any to refuse to recognize any person or entity other than the
          undersigned as the owner of the Share Certificate and to refuse to make any
          payment, transfer, registration, delivery or exchange called for by reliance on
          the Share Certificate to any person or entity other than the undersigned and to
          refuse to take any other action with respect to the Share Certificate pursuant
          to the request or demand of any person or entity other than the undersigned.  

Signed and delivered on this __ day of _______, 2007.

                                                                                  ____________________

Schedule 1.5(a)(iii)  

ACTION BY UNANIMOUS WRITTEN CONSENT

OF THE DIRECTORS OF

NEGEVTECH LTD. (THE "COMPANY")

DATED JULY __, 2007 

The undersigned, constituting all of
the members of the Board of Directors of the Company (the “Board”), hereby adopt
the following resolutions by way of unanimous written consent in lieu of holding a formal
meeting, effective as of the date first written above, and hereby waive any notice
whatsoever in connection therewith.  

	I.  	INTERESTED
PARTY TRANSACTIONS  

        WHEREAS,
it is hereby disclosed or made known to the Board that the majority of the Company’s
directors are officers or directors or partners in, or have a financial interest in
certain of the Company’s shareholders and therefore each of them may be considered as
an “Interested Party”, as such term is defined under the Companies Law 1999 with
respect to the approval and authorization of the Recapitalization, the A1 Purchase
Agreement and the Closing, (as such terms are defined below); and 

        WHEREAS,
all the members of the Board are aware of the material facts related to Recapitalization,
the A1 Purchase Agreement and the Closing and have had an adequate opportunity to ask
questions regarding, and investigate the nature of, the relationships and/or interests of
each Interested Party in connection with thereto; and 

        WHEREAS,
after careful consideration, the Board has determined that the terms and conditions of the
proposed Recapitalization, the A1 Purchase Agreement and the Closing are just and
equitable and fair as to the Company and that it is in the best interests of the Company
and the shareholders of the Company to perform and execute the Recapitalization, the A1
Purchase Agreement and the Closing; and 

        WHEREAS,
the shareholders of the Company have previously decided the Recapitalization, the
A1 Purchase Agreement, the Closing and the transactions contemplated under the Transaction
Documents (as defined below), to be advisable and in the best interests of the Company and
its shareholders and further approved such transactions and matters as if they were deemed
an “Interested Party Transaction” pursuant to the Companies law, 5759-1999, due
to the nature of the relationships existing between certain parties to the Transaction
Documents and their officers and directors and the Company and its officers and directors; 

        NOW
THEREFORE, the following resolutions have been adopted and approved by the Board; 

	II.  	CONVERSION
OF PREFERRED SHARES  

        WHEREAS,
(i) the holders of the Company’s Preferred Shares, (ii) the holders of the
Company’s Series AA Preferred Shares and (iii) the holders of the Company’s
Series BB-1, BB-2, BB-3 and BB-4 Preferred Shares, have previously elected, in accordance
with Article 9(a)(2) of the Company’s articles of association (the “Current
Articles”) to convert all outstanding Preferred Shares of the Company into
Ordinary Shares of the Company (the “Ordinary Shares”), on a one to one
basis, to be effective subject to and immediately prior to the closing of the
Company’s proposed Series A1 Preferred Shares financing under the proposed Series A1
Purchase Agreement substantially in the form attached hereto as Exhibit
A (the “Closing”, the “A1 Purchase
Agreement”, respectively); 

        BE
IT RESOLVED, to approve the aforementioned conversion authorized by the Company’s
shareholders, by the following actions to be effective immediately prior to and
conditioned upon the Closing; 

         (a)       
          the conversion of all of the issued and outstanding Series AA Preferred Shares
          and Series BB-1, BB-2, BB-3 and BB-4 Preferred Shares of the Company, nominal
          value NIS 0.01 each, currently held by all holders of Preferred Shares (the
          “Original Preferred AA Shares”, “Original Preferred BB
          Shares”, respectively) into the same number, on a one to one basis, of
          fully paid and non-assessable Ordinary Share of the Company, nominal value 0.01
          NIS (the “Converted Ordinary Shares”); 

        Pursuant
to Article 9(b)(2) of the Current Articles, such conversion shall be deemed to have taken
place automatically regardless of whether the certificates representing the Original
Preferred AA Shares and the Original Preferred BB Shares have been tendered to the Company
but from and after such conversion any such certificates not tendered to the Company shall
be deemed to evidence solely the Ordinary Shares received upon such conversion and the
right to receive a certificate for such Ordinary Shares; 

         (b)       
          the change of the Company’s registered share capital by converting all of
          the registered (authorized) and unissued Series AA Preferred Shares and Series
          BB-1, BB-2, BB-3 and BB-4 Preferred Shares of the Company into the same number
          of authorized and unissued Ordinary Shares of the Company, nominal value NIS
          0.01 each. 

         (c)       
          the automatic adjustment of all outstanding warrants issued by the Company to
          purchase Original Preferred AA Shares (to the extent not cancelled) and warrants
          to purchase Original Preferred BB Shares, into warrants to purchase the same
          number of Ordinary Shares of the Company, nominal value NIS 0.01. 

        The
Company’s share capital following the foregoing actions shall be as described in the
capitalization table attached hereto as Exhibit B1. 

	III.  	RECAPITALIZATION  

        WHEREAS,
the shareholders of the Company and each series of Preferred Shares voting as a single
class (and all holders of series of BB1, BB2, BB3 and BB4 Preferred Shares also voting
together as a single class), have previously approved a recapitalization of the
Company’s registered and issued share capital as proposed under the A1 Purchase
Agreement, to be effective subject to and immediately prior to the Closing (the
“Recapitalization”); 

        BE
IT RESOLVED, that the Recapitalization shall be authorized and approved, effective
immediately prior to and conditioned upon the Closing, such that the following actions
shall be executed immediately prior to the Closing and immediately after the issuance of
the Converted Ordinary Shares under the foregoing resolution: 

	1.  	Reallocation  

        RESOLVED,
to approve, as part and for the purposes of effecting the Recapitalization previously
approved and authorized by the shareholders of the Company, an increase in the
Company’s share capital, from NIS 964,500 to NIS 8,000,000, by registering additional
703,550,000 Ordinary Shares of the Company, nominal value NIS 0.01 each, such that
following such increase the Company’s registered share capital shall consist of NIS
8,000,000 divided into 800,000,000 Ordinary Shares of the Company, nominal value NIS 0.01
each; 

        FURTHER
RESOLVED, to issue an additional number of fully paid and non-assessable Ordinary Shares
to each holder of Original Preferred AA Shares and Original Preferred BB Shares, as set
forth in Column I of the Reallocation Table attached hereto as
Exhibit B2 (the “Reallocation Ordinary Shares”), so
as to bring the total number of the Converted Ordinary Shares and the additional Ordinary
Shares so issued to 99% of the fully diluted share capital of the Company (the fully
diluted share capital shall exclude for such purpose any warrants to purchase Preferred AA
Shares, as adjusted pursuant to the foregoing resolution, to be allocated among the
holders of Original Preferred AA Shares and Original Preferred BB Shares in proportion to
the total cash amounts previously paid to the Company for the purchase of all such
Original Preferred AA Shares and Original Preferred BB Shares held by them; 

	2.  	Consolidation  

        BE
IT RESOLVED, to issue to certain shareholders of the Company immediately after the
issuance of Ordinary Shares under the foregoing resolution and prior to the c
Consolidation (as defined below), an additional number of Ordinary Shares, as indicated in
Column G of the Consolidation Table attached hereto as
Exhibit B3, reflecting the number of shares necessary in order to
round to the nearest whole number fractions of shares which otherwise would have been
resulted from such Consolidation; Any other fractions of shares resulted from such
Consolidation shall be rounded down to the nearest whole number (as reflected in the
Consolidation Table attached hereto as Exhibit B). The
Ordinary Shares so issued shall be considered part of the Reallocation Ordinary Shares. 

        FURTHER
RESOLVED, to consolidate, immediately after the foregoing issuance of Ordinary Shares, the
entire share capital of the Company by a ratio of 100:1 (the
“Consolidation”). 

	3.  	Anti-Dilution
Protection  

RESOLVED, to issue, immediately after
the completion of the Consolidation, to each holder of Original Preferred BB Shares who is
a Participating Investor (as defined in the A1 Purchase Agreement), in consideration of
the waiver by the holders of Original Preferred BB Shares of the existing full-ratchet
anti-dilution protection attached to the Original Preferred BB Shares, such additional
number of Ordinary Shares as indicated in Column I  of the
Anti-Dilution Protection Table attached hereto as Exhibit B4,
 reflecting an effect of 85% of the full-ratchet protection such holders of Original
Preferred BB Shares would have been entitled to receive upon the Closing, had such
protection been applied to the Ordinary Preferred B Shares (as defined below) received by
such holders, assuming a price per Ordinary Preferred B Share that is equal to
US$20,000,000 divided by the aggregate number of Converted Ordinary Shares and
Reallocation Ordinary Shares (the “Anti-Dilution Ordinary Shares”); 

The Converted Ordinary Shares, the
Reallocation Ordinary Shares and the Anti-Dilution Ordinary Shares shall together be
referred to as the “Recap Ordinary Shares”. 

	4.  	Adjustment
of Warrants  

        RESOLVED,
to approve the automatic adjustment, as resulting from the Consolidation, of the number of
Ordinary Shares purchasable under, and the exercise price of, all outstanding warrants
issued by the Company to purchase Original Preferred AA Shares (to the extent not
cancelled) and warrants to purchase Original Preferred BB Shares, previously adjusted
under the foregoing resolution of Section II(c) above, into warrants to purchase Ordinary
Shares of the Company. 

	IV.  	ADOPTION
OF NEW ARTICLES & INCREASE OF SHARE CAPITAL  

        WHEREAS,
in connection with the Closing and as a result of the Recapitalization, it is necessary to
adopt certain changes to the Current Articles; and 

        WHEREAS,
without limitation from the generality of the above, it is necessary to increase the
Company’s registered share capital in effect following the Recapitalization and to
create (i) the Company’s Series A1 Preferred Shares proposed to be sold upon the
Closing, (ii) the Ordinary Preferred A Shares and (iii) the Ordinary Preferred B Shares; 

        BE
IT RESOLVED, to approve the adoption by the Company’s shareholders, subject to and
effective immediately prior to the Closing, of the New Articles of Association
substantially in the form attached hereto as Exhibit C (the
“New Articles”), as the Articles of Association of the Company, such New
Articles to be filed by the Company with the Registrar of Companies, in place of the
Current Articles; 

        FURTHER
RESOLVED, as part of the adoption of the New Articles, to approve the increase of the
Company’s registered share capital such that following the Recapitalization and the
Closing (as such terms defined above), the registered share capital of the Company shall
consist of 56,000,000 NIS, divided into 30,000,000 Ordinary Shares of par value NIS 1.00
per share, 12,500,000 Series A1 Preferred Shares, of par value NIS 1.00 per share,
3,500,000 Ordinary Preferred A Shares, of par value NIS 1.00 NIS per share and 10,000,000
Ordinary Preferred B Shares, of par value NIS 1.00 per share; 

	V.  	APPROVAL
OF SERIES A1 PREFERRED SHARES FINANCING  

	1.  	Sale
& Issuance of Series A1 Preferred Shares and Approval of Additional Transactions  

        WHEREAS
the Board deems it advisable to approve and authorize the proposed financing under the A1
Purchase Agreement (as defined above) and believes that the consummation of the
transactions provided for therein do not prejudice the best interests of the Company; 

        BE
IT RESOLVED to authorize and approve the execution, delivery and performance of the A1
Purchase Agreement and the consummation of the transactions provided for therein and the
performance by the Company of its obligations thereunder, including, inter alia, (i) the
issuance and sale of such number of the Company’s Series A1 Preferred Shares to each
of the Participating Investors (as defined in the A1 Purchase Agreement), as indicated
opposite such Participating Investor’s name in the Post-Closing Capitalization Table
attached hereto as Exhibit D, (ii) the conversion of the Recap
Ordinary Shares (as defined above) held by each Participating Investor into Ordinary
Preferred A Shares and/or Ordinary Preferred B Shares, as indicated opposite such
Participating Investor’s name in the Post-Closing Capitalization Table attached
hereto as Exhibit D, (iii) the issuance of any shares issuable upon
the conversion of the Series A1 Preferred Shares, the Ordinary Preferred A Shares and the
Ordinary Preferred B Shares, and (iv) the payment and conversion of the Loan Amounts (as
defined in and subject to the terms of Section 1.6(c) of the A1 Purchase Agreement), all
of the above without need for any further act, approval or authority of the Board, and all
ancillary transactions, documents, schedules and exhibits contemplated by and/or
associated with the A1 Purchase Agreement (whether or not approved separately herein); 

        FURTHER
RESOLVED to reserve at all times a sufficient number of unissued Ordinary Shares to allow
for the conversion of the Company’s Preferred Shares (including Ordinary Preferred
Shares) of all classes, as set forth in the New Articles, and to authorize the issuance of
such Ordinary Shares upon the occurrence of such future conversion, all in accordance with
the terms and conditions applicable to the conversion of such Preferred Shares in the New
Articles; 

        FURTHER
RESOLVED, that such Series A1 Preferred Shares, Ordinary Preferred A Shares, Ordinary
Preferred B Shares and Ordinary Shares into which such shares may be converted and any
additional Ordinary Shares issued in connection with such conversion, when issued and paid
for in accordance with the provisions of the A1 Purchase Agreement and the New Articles,
will be duly authorized, validly issued, fully paid and non-assessable (provided that
until such time as the Remainder Amount (as defined in the A1 Purchase Agreement) is due,
all Series A1 Preferred Shares shall be deemed fully paid and as of the time the Remainder
Amount becomes due only a portion of the Series A1 Preferred Shares held by a
Participating Investor that equal to the Remainder Amount due from such Participating
Investor but not paid by it, divided by the Price Per Share (as defined in the A1 Purchase
Agreement) shall be deemed not fully paid); 

        FURTHER
RESOLVED, to authorize and approve that certain Amended and Restated Shareholders Rights
Agreement, between the Company and the parties thereto, as defined therein, substantially
in the form attached hereto as Exhibit E (the “Amended
Shareholders Rights Agreement”), including, inter alia, the execution,
delivery and performance of the Amended Shareholders Rights Agreement; 

        FURTHER
RESOLVED, to authorize and approve the execution, delivery and performance of Indemnity
and Release Agreements, substantially in the form attached hereto as Exhibit
F, between the Company and Albert Joseph Markus, Amichai Steinberg and Rafi
Yizhar, all subject to the approval of the Company’s shareholders 

        FURTHER
RESOLVED to authorize any two of the directors of the Company to execute and deliver the
A1 Purchase Agreement, the Amended Shareholders rights Agreement and all ancillary
documents and instruments (the “Transaction Documents”) on behalf of the
Company, with such changes therein or additions thereto as such directors executing the
Transaction Documents shall deem advisable; and finally 

        FURTHER
RESOLVED to authorize and approve any other matter described or set forth in the
Transaction Documents which requires the authorization or approval of the Board and to
authorize any two of the directors of the Company to take such acts and to execute such
documents on behalf of the Company as may be required to implement the Transaction
Documents and the transactions contemplated therein. 

	2.  	Increase
of Pool under Company’s Employee Share Option Plans  

        RESOLVED,
that immediately prior to the Closing, the number of Ordinary Shares reserved for
allocation under the Company’s Employees Share Option Plans shall be increased so as
to equal 10% of the Company’s share capital on an as converted and fully diluted
basis, immediately following the Closing, (excluding from the fully diluted basis for such
purpose all existing warrants to purchase Series AA Preferred Shares, as adjusted under
the foregoing resolutions, to the extent not cancelled). 

	3.  	Change
of Director’s Position  

        RESOLVED,
that conditioned upon the occurrence of the Closing, Mr. Amichai Steinberg, the director
previously designated to the Company’s Board of Directors by Orbotech Technology
Ventures L.P., in accordance with Article 65(a)(1) of the Current Articles, is hereby
appointed to serve as an industry expert in the Company’s Board of Director in
accordance with Article 65(a)(2) of the New Articles. 

	 VI.  	OMNIBUS
RESOLUTIONS 

        RESOLVED,
that the undersigned deem the actions sanctioned by the foregoing resolutions to be
advisable and in the best interests of the Company and its shareholders. 

        RESOLVED,
that any of the officers and directors of the Company[ be, and each of them hereby is,
authorized to prepare, execute, deliver and perform, as the case may be, such agreements,
amendments, applications, approvals, certificates, communications, consents, demands,
directions, documents, further assurances, instruments, notices, orders, requests
resolutions, supplements or undertakings, as each such officer, in his discretion, shall
deem necessary or advisable to carry out the intent and purposes of the foregoing
resolutions; and that the preparation, execution, delivery and performance of any such
agreements, amendments, applications, approvals, certificates, communications, consents,
demands, directions, documents, further assurances, instruments, notices, orders,
requests, resolutions, supplements or undertakings shall be conclusive evidence of the
approval of the Board thereof and all matters relating thereto. 

        RESOLVED,
that any and all actions heretofore taken by the officers of the Company in the name and
on behalf of the Company in furtherance of the preceding resolutions, are hereby ratified,
approved and adopted. 

[THE REMAINDER OF THIS
PAGE IS INTETIONALLY LEFT BLANK] 

[Signature Page –
Board Written Consent of July 2007]  

In Witness Whereof, we have affixed
our signatures, effective as of the date first written above; 

			
	______________________	______________________	______________________
	Aaron Mankovsky	Bart Markus	Eddy Shalev
	 
	______________________	______________________	______________________
	Rafi Yizhar	Eran Gersht	Yaffa Krindel
	 
	______________________	______________________	 
	Amichai Steimberg	Jaron Lotan	 

Schedule 1.5(a)(vii)  

To

[_____________]

Dear Sir, 

Re: Indemnification
and Release  

This letter is being issued to you
pursuant to the resolutions adopted by the Board of Directors of Negevtech Ltd. (the
“Company”) on ___________, 2007, (and shall be presented to the approval of the
shareholders as soon as possible). 

	1.  	The
Company hereby undertakes to indemnify you to the maximum extent permitted
               by applicable law in respect of: 

	 	1.1 	Any
financial oligation imposed on you in favor of any other person and/or entity pursuant to
any judgment including any judgment by way of compromise or any judgment of an arbitrator
certified by a competent court within the framework of any legal proceedings taken
against you, if any, due to any act or omission (collectively hereinafter referred to as
an “Action”) taken or not taken, or made or not made, by you in your capacity
as an Office Holder of the Company (as such term is defined in the Israeli Companies Law,
1999, as amended (the “Companies Law”); 

	 	1.2 	All
reasonable litigation expenses, including, but not limited to, attorney’s fees and
the fees and expenses of investigators, accountants and other experts, which you may pay,
or be obligated to pay by the court, (i) in relation to the opposing by you of any legal
proceedings, which are instituted against you by the Company or in its name or by any
other person; or (ii) in any criminal proceedings in which you are acquitted; or (iii) in
any criminal proceedings regarding a crime which does not require proof of mens rea (criminal
intent) in which you are convicted; or (iv) in any administrative or investigative
proceedings that do not result in criminal proceedings against you and without any
monetary liability being imposed on you in lieu of criminal proceedings or that result in
criminal proceedings in which you are acquitted, or (v) in any administrative or
investigative proceedings that do not result in criminal proceedings against you but
result in the imposition of a monetary liability in lieu of criminal proceedings provided
it is in respect of a criminal action that does not require proof of criminal intent; or
(vi) in preparation or defense with respect to any threatened or pending proceedings as
aforesaid; all to the extent permitted pursuant to the Companies Law and in respect of
actions taken by you in your capacity as an Office Holder of the Company 

	 	
The
above indemnification will also apply to any action taken by you in your capacity as an
Office Holder of any other company controlled, directly or indirectly, by the Company or
in fulfilling the position of an Office Holder and/or and observer at the board of
directors’ meetings of any other entity at the request of the Company (each of the
aforesaid entities shall be referred to hereinafter as an “Affiliate”). 

	2.  	The
Company will not indemnify you for any amount you may be obligated to pay in
          respect of: 

	 	2.1 	A
breach of your duty of loyalty to the Company; provided, that the Company will
indemnify you for a breach of your duty of loyalty if in committing such breach you acted
in good faith and had reasonable grounds to assume that your action would not harm the
Company. 

	 	2.2 	A
breach of your duty of care to the Company committed intentionally or recklessly. 

	 	2.3 	An
action taken with the intent of unlawfully realizing personal gain. 

	 	       2.4 	A
fine or penalty imposed upon you.

	 	2.5 	A
counterclaim made by the Company or in its name in connection with a claim against the
Company filed by you, other than for indemnification hereunder. 

	3.  	The
Company will make available all amounts needed in accordance with paragraph
               1 above on the date on which such amounts are first payable by you
               (“Time of Indebtedness”), and with respect to items
referred to                in paragraph 1.2 above, on an ongoing basis, as and when
payable by you, even                prior to a court decision, and in any event within
five (5) business days from                your first written request. Advances given to
cover legal expenses in criminal                proceedings or in administrative or
investigative proceedings that result in                criminal proceedings will be
repaid by you to the Company if you are found                guilty (other than with
respect to criminal proceedings regarding a crime which                does not require
proof of criminal intent). 

	 	
As
part of the aforementioned undertaking, the Company will make available to you any
security or guarantee that you may be required to post in accordance with an interim
decision given by a court or an arbitrator, including for the purpose of substituting
liens imposed on your assets.  

	 	
All
amounts paid as indemnification pursuant hereto will be grossed-up to cover any tax
payments you may be required to make if the indemnification payments are taxable to you.  

	4.  	The
Company will indemnify you even if at the relevant Time of Indebtedness you
               are no longer an Office Holder of the Company or of an Affiliate or board
               observer of an Affiliate, provided that the obligations are in respect of
               actions taken by you while you were an Office Holder and/or board
observer, as                aforesaid, and in such capacity, including if taken prior to
the above                resolutions, and the indemnity will extend to your heirs,
executors,                administrators and legal representatives. 

- 2 -

	5.  	The
indemnification is limited to the following categories of events relating
               to: 

	 	5.1	The
offering of securities by the Company and/or by a shareholder to the public and/or to
private investors or the offer by the Company to purchase securities from the public
and/or from private investors or other holders pursuant to a prospectus, agreements,
notices, reports, tenders and/or other proceedings. 

	 	5.2	Occurrences
resulting from the Company’s becoming or its status as a public company, and/or from
the fact that the Company’s securities were offered to the public and/or are traded
on a stock exchange, whether in Israel or abroad. 

	 	5.3	Occurrences
in connection with investments the Company and/or Affiliates make in other corporations
whether before and/or after the investment is made, entering into the transaction, the
execution, development and monitoring thereof, including actions taken by you in the name
of the Company and/or an Affiliate as an Office Holder and/or board observer of the
corporation the subject of the transaction and the like. 

	 	5.4	The
sale, purchase and holding of negotiable securities or other investments for or in the
name of the Company and/or an Affiliate. 

	 	5.5	Actions
in connection with the merger of the Company and/or an Affiliate with or into another
entity, the sale of any, including all, or substantially all, of the Company’s
and/or an Affiliate’s assets (which inlcude, inter-alia, operations and/or
business), a Tender Offer, a Forced Sale of Shares, Arrangement and Compromise (as such
capitalized terms are defined in the Companies Law) or any reorganization, merger or
consolidation of whatever kind or nature within the meaning of any law applicable to such
claim or demand. 

	 	5.6	Without
derogating from the generality of the above, actions in connection with the purchase,
lease or sale of companies, legal entities, business, securities or assets, and the
division or consolidation thereof. 

	 	5.7	Actions
taken in connection with labor relations and/or employment matters in the Company and/or
in Affiliates and trade relations of the Company and/or Affiliates, including with
employees, independent contractors, customers, suppliers and various service providers. 

- 3 -

	 	5.8	Actions
in connection with the testing of products developed by the Company and/or by Affiliates
or in connection with the certification, distribution, sale, license or use of such
products. 

	 	5.9	Actions
taken in connection with the intellectual property of the Company and/or an Affiliate and
its protection, including the registration or assertion of rights to intellectual
property and the defense of claims related to intellectual property. 

	 	5.10	Actions
taken pursuant to or in accordance with the policies and procedures of the Company and/or
its Affiliates, whether such policies and procedures are published or not. 

	 	5.11 	The
obligation to disclose information to shareholders of the Company (whether past, current
or prospective). 

	 	5.12 	Dealings
by the Company and/or an Affiliate with third parties, including agents, employees,
customers, suppliers, creditors or others. 

	 	5.13 	Presentations
or reports submitted or delivered to shareholders (whether current or prospective),
customers or creditors of the Company. 

	 	5.14 	Any
matter relating to financial reports, accounting or book-keeping of the Company and/or an
Affiliate or failure to pay, report or keep any foreign, federal, state, county, local,
municipal or city taxes or other mandatory payment. 

	 	5.15 	Any
claim or demand made by any third party suffering any personal injury or damage to
business or personal property through any action attributed to the Company and/or an
Affiliate, or their respective employees, agents or other persons acting or allegedly
acting on their behalf. 

	 	5.16 	Any
administrative, regulatory or judicial actions, orders, decrees, suits, demands, demand
letters, directives, claims, liens, investigations, proceedings or notices of
noncompliance or violation by any governmental entity, including the Office of the Chief
Scientist or the Investments Center of the Israeli Ministry of Industry, Trade and Labor,
the Israeli Antitrust Authority or the Israel Securities Authority, or other person
alleging the failure to comply with any statute, law, ordinance, rule, regulation, order
or decree of any governmental entity applicable to the Company or any of its Affiliates,
or any of their respective businesses or operations. 

	6.  	The
total amount of indemnification that the Company undertakes towards all           persons
whom it has resolved to indemnify for the matters and in the           circumstances
described herein, jointly and in the aggregate, shall not exceed           the greater
of: 

- 4 -

	 	(a) 	An
amount equal to $10 Million US Dollars, according to the representative rate
               of exchange, or any other official rate of exchange that may replace it,
at the                Time of Indebtedness; or 

	 	(b) 	The
amount adjudicated against you jointly and severally with others. 

	 	(c) 	The
amount adjudicated against you subject to the limitations in paragraphs 6(a)
               and 6(b) above (the greater of the two) plus the amount adjudicated
against                others if their portion is not collected for any reason. 

	7.  	The
Company will not indemnify you for any liability with respect to which you
               have received payment by virtue of an insurance policy or another
               indemnification agreement other than for amounts which are in excess of
the                amounts actually paid to you pursuant to any such insurance policy or
other                indemnity agreement (including deductible amounts not covered by
insurance                policies), within the limits set forth in paragraph 6 above. 

	8.  	Subject
to the provisions of paragraphs 6 and 7 above, the indemnification will,
               in each case, cover all sums of money (100%) that you will be obligated to
pay,                in those circumstances for which indemnification is permitted under
the law. 

	9.  	The
Company will be entitled to any amount collected from a third party in
               connection with liabilities indemnified hereunder and which are in excess
of the                amount, if any, not indemnified by the Company. 

	10.  	In
all indemnifiable circumstances indemnification will be subject to the
               following: 

	 	10.1 	You
shall notify the Company of any legal proceedings initiated against you and of all
possible or threatened legal proceedings within seven (7) days from the day that you are
dully and lawfully first aware thereof, and that you transfer to the Company, or to such
person as it shall advise you, without delay all documents you receive in connection with
these proceedings. 

	 	
Similarly,
you must advise the Company on an ongoing and current basis concerning all events which
you suspect may give rise to the initiation of legal proceedings against you. 

	 	
Failure
to notify the Company as aforesaid will not relieve the Company of its indemnification
obligations pursuant hereto except to the extent that it has been actually prejudiced as
a result of such failure. 

	 	10.2 	Other
than with respect to proceedings that have been initiated against you by the Company or
in its name, the Company shall be entitled to undertake the conduct of your defense in
respect of such legal proceedings and/or to hand over the conduct thereof to any attorney
which the Company may choose for that purpose. 

- 5 -

	 	
In
the event that: (i) such attorney is not, upon reasonable grounds, acceptable to you,
(ii) the Company shall have not assumed the defense of the legal proceedings or has not
pursued the defense diligently, or (iii) the named parties to any such legal proceeding
include both you and the Company, and it is reasonably concluded that joint
representation is inappropriate under applicable standards of professional conduct due to
a conflict of interest between yourself and the Company, you will be entitled to appoint
an attorney of your own that shall accompany you in such procedure. Your attorney shall
be fully updated on the defense procedure, and the Company and the attorney conducting
the legal defense on behalf of the Company shall fully cooperate with your attorney,
including regularly consulting with your attorney on the measures taken in the course of
the defense. The Company shall indemnify you for all reasonable expenses incurred by you
in connection with engaging such attorney. 

	 	
The
Company and/or the attorney as aforesaid shall be entitled, within the context of the
conduct as aforesaid, to conclude such proceedings, all as it shall see fit, including by
way of compromise. At the request of the Company, you shall execute all documents
required to enable the Company and/or its attorney as aforesaid to conduct your defense
in your name, and to represent you in all matters connected therewith, in accordance with
the aforesaid. 

	 	
For
the avoidance of doubt, in the case of criminal proceedings the Company and/or the
attorneys as aforesaid will not have the right to plead guilty in your name or to agree
to a plea-bargain in your name without your consent. Furthermore, in a civil proceeding
(whether before a court or as a part of a compromise arrangement), the Company and/or its
attorneys will not have the right to admit to any occurrences that are not indemnifiable
pursuant to this Letter of Indemnification and Release and/or pursuant to law, or to
enter into any settlement, or compromise or consent to any judgement unless such
settlement, compromise or consent includes an unconditional release of you from all
liability arising out of the proceeding, without your consent. However, the aforesaid
will not prevent the Company and/or its attorneys as aforesaid, with the approval of the
Company, to come to a financial arrangement with a plaintiff in a civil proceeding
without your consent so long as such arrangement will not be an admittance of an
occurrence not indemnifiable pursuant to this Letter of Indemnification and Release
and/or pursuant to law and so long as it includes an unconditional release as aforesaid. 

- 6 -

	 	10.3 	You
will cooperate with the Company and/or any attorney as aforesaid in every reasonable way
as may be required of you within the context of their conduct of such legal proceedings,
provided that the Company shall cover all costs incidental thereto such that you will not
be required to pay the same or to finance the same yourself. 

	 	10.4 	If,
in accordance to paragraph 10.2, the Company has taken upon itself the conduct of your
defense, the Company will have no liability or obligation pursuant to this Letter of
Indemnification and Release or the above resolutions to indemnify you for any legal
expenses, including any legal fees, that you may expend in connection with your defense,
except as provided for in paragraph 10.2 above. 

	 	10.5 	The
Company will have no liability or obligation pursuant to this Letter of Indemnification
and Release or the above resolutions to indemnify you for any amount expended by you
pursuant to any compromise or settlement agreement reached in any suit, demand or other
proceeding as aforesaid if the Company’s consent to such compromise or settlement
was not given in advance, such consent not to be unreasonably withheld. 

	11.  	The
Company hereby exempts you and releases, to the fullest extent permitted by
                    law, from and against any liability for monetary or other damages due
to, or                     arising or resulting from a breach of your duty of care to the
Company, provided                     that in no event shall you be exempt with respect
to any actions listed in                     paragraph 2 above. 

	12.  	If
for the validation of any of the undertakings in this Letter of
                    Indemnification and Release any act, resolution, approval or other
procedure is                     required the Company undertakes to cause them to be done
or adopted in a manner                     which will enable the Company to fulfill all
its undertakings as aforesaid. 

	13.  	For
the avoidance of doubt, it is hereby clarified that nothing contained in
                    this Letter of Indemnification and Release or in the above
resolutions derogate                     from the Company’s right to indemnify you
post factum for any amounts which                     you may be obligated to pay as set
forth in paragraph 1 above without the                     limitations set forth in
paragraphs 5 and 6 above. 

	14.  	If
any undertaking or release included in this Letter of Indemnification and
                    Release is held invalid or unenforceable, such invalidity or
unenforceability                     will not affect any of the other undertakings or
releases which will remain in                     full force and effect. Furthermore, if
such invalid or unenforceable undertaking                     or release may be modified
or amended so as to be valid and enforceable as a                     matter of law, such
undertakings or releases will be deemed to have been                     modified or
amended, and any competent court or arbitrator are hereby authorized
                    to modify or amend such undertaking or release, so as to be valid and
                    enforceable to the maximum extent permitted by law. 

- 7 -

	15.  	This
Agreement shall be construed in accordance with and governed by the laws of
                    the State of Israel, without giving effect to rules of conflicts of
laws. The                     exclusive jurisdiction concerning any legal proceeding
arising between the                     parties concerning this agreement shall vest in
the competent court in the                     district of Tel Aviv. 

	16.  	The
Company shall bear all of your costs, including legal expenses, in enforcing
                    this Letter of Indemnification and Release against the Company. 

	17.  	This
Letter of Indemnification and Release contains the entire agreement and
                    understanding between the Company and yourself in respect of the
subject matter                     hereof and terminates and replaces any previous
agreement in such respect,                     provided however, that no previous
exemption or release (as opposed to indemnity                     undertakings) given to
you from and against any liability for monetary or other                     damages due
to, or arising or resulting from a breach of your duty of care to                     the
Company shall be affected. 

	 	
Sincerely,

Negevtech Ltd. 

- 8 -

Schedule 1.5(c)  

			Date: July 20, 2007 

	To:  	The
Research Committee

	 	
The
Office of the Chief Scientist 

	 	
PO
Box 2197 

	 	
Jerusalem,
91021  

Relating to projects that have been
financed by or are currently being financed by the Office of the Chief Scientist of the
Ministry of Industry, Trade and Labor (the “OCS”) and to projects of the
Company (as this term is defined below) that may be financed by the OCS in the future (the
“Projects”).  

UNDERTAKING  

The undersigned, [________________],
a [company/partnership] incorporated, organized and existing under the laws of
[______________] and whose registered offices is at [____________________________],
having, by an agreement dated July 20, 2007, committed to invest in Negevtech Ltd., an
Israeli company (the “Company”), in exchange for ___________ Shares par
value NIS 0.01 each of the Company; 

Recognizing that the Company’s
research and development Projects are currently, have been or will be financially
supported by the Government of the State of Israel through the OCS under and subject to
the provisions of The Encouragement of Research and Development in Industry Law 5744-1984
(the “R&D Law”) and the regulations, rules and procedures promulgated
thereunder; and 

Recognizing that the R&D Law
places strict constraints on the transfer of know-how and/or production rights, making all
such transfers subject to the absolute discretion of the OCS’ research committee (the
“Research Committee”), acting in accordance with the aims of the R&D
Law and requiring that any such transfer receive the prior written approval of the
Research Committee; 

HEREBY UNDERTAKE, 

To observe strictly all the
requirements of the R&D Law and the regulations, rules and procedures promulgated
thereunder, as applied to the Company and as directed by the Research Committee, in
particular those requirements stipulated under Section 19, 19A and 19B of the R&D Law
relating to the prohibitions on the transfer of know-how and/or production rights. 

As a shareholder of the Company, to
make all reasonable efforts that the Company shall not be in breach of the requirements of
the R&D Law and the regulations, rules and procedures promulgated thereunder, as
applied to the Company and as directed by the Research Committee, in particular those
requirements stipulated under Sections 19, 19A and 19B of the R&D Law relating to the
prohibitions on the transfer of know-how and/or production rights. 

Nothing herein shall be deemed as an
assumption by the undersigned of any of the obligations of the Company. 

By: ______________________ 

Name:
______________________ 

Title:
______________________ 

Schedule 1.6(c)  

List of Lenders

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name

	
 

	
Bridge Loan 

  $2M

	
 

	
Bridge Loan
 $3M

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pitango Venture Capital Fund III (Israeli Sub) L.P.

	
 

	
 

	
393,593

	
 

	
 

	
521,085
  

	
 

	
Pitango Venture Capital Fund III (Israeli Sub.) Non-Q L.P.

	
 

	
 

	
36,386

	
 

	
 

	
48,172
  

	
 

	
Pitango Venture Capital Fund III (Israeli Investors) L.P.

	
 

	
 

	
106,429

	
 

	
 

	
140,904
  

	
 

	
Pitango Parallel Investor Fund III (Israel), L.P

	
 

	
 

	
33,089

	
 

	
 

	
43,807
  

	
 

	
Pitango Principles Fund III (Israel) L.P.

	
 

	
 

	
13,855

	
 

	
 

	
18,343
  

	
 

	
Pitango Venture Capital Fund Trusts 2000 Ltd.

	
 

	
 

	
27,709

	
 

	
 

	
36,685
  

	
 

	
SVE Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
 

	
 

	
276,287

	
 

	
 

	
365,782
  

	
 

	
Star Management of Investments No. II (2000) L.P.

	
 

	
 

	
36,298

	
 

	
 

	
48,055
  

	
 

	
Star Growth Enterprise, a German Civil Law Partnership (with
  limitation of Liability)

	
 

	
 

	
277,423

	
 

	
 

	
367,286
  

	
 

	
Genesis Partners II, L.D.C.

	
 

	
 

	
304,032

	
 

	
 

	
402,514
  

	
 

	
Genesis Partners II (Israel) L.P.

	
 

	
 

	
44,922

	
 

	
 

	
59,473
  

	
 

	
Poalim Ventures Ltd.

	
 

	
 

	
31,815

	
 

	
 

	
43,839
  

	
 

	
Poalim Ventures I Ltd.

	
 

	
 

	
48,947

	
 

	
 

	
67,444
  

	
 

	
Poalim Ventures II  L.P.

	
 

	
 

	
99,238

	
 

	
 

	
136,743
  

	
 

	
Wellington Partners Venture III Technology Fund L.P.

	
 

	
 

	
262,635

	
 

	
 

	
371,770
  

	
 

	
Amadeus III

	
 

	
 

	
 

	
 

	
 

	
318,256
  

	
 

	
Amadeus III Affiliates Fund LP

	
 

	
 

	
 

	
 

	
 

	
9,843
  

	
 

	
 

	
 

	

	

	
 

	

	

	
 

	
Total 

	
 

	
 

	
1,992,658 

	
 

	
 

	
3,000,001 

	
 

	
 

	
 

	

	

	
 

	

	

	
 

Schedule 2.1(a)  

THE COMPANIES LAW 

A COMPANY LIMITED BY
SHARES 

AMENDED AND RESTATED ARTICLES
OF ASSOCIATION OF 

NEGEVTECH LTD. 

PRELIMINARY 

	1.  	Reserved. 

	2.  	In
these Articles, unless the context otherwise requires: 

	 	
These
“Articles” – shall mean the Articles of Association of the Company
as shall be in force from time to time. 

	 	
“Amadeus”
– shall mean Amadeus III and Amadeus III Affiliates Fund LP and their Permitted
Transferees to which they transfer shares. 

	 	
The
“Amadeus Agreement” shall mean the Series BB-4 Preferred Share Purchase
Agreement dated September 26, 2006 between the Company and certain investors. 

	 	
“as
converted basis” – shall mean assuming the theoretical conversion of all
outstanding Preferred Shares into Ordinary Shares, at the then applicable conversion
ratio. 

	 	
“Board” or
“Board of Directors”– shall mean the Board of Directors of
the Company.  

	 	
“Business
Day” – shall mean a day on which commercial banks in Israel are open for
business (including, for the avoidance of doubt, Fridays). 

	 	
The
“Company” – shall mean NEGEVTECH LTD.  

	 	
The
“Companies Law” – shall mean the Companies Law, 5759-1999 as shall
be in effect from time to time and any other law that shall be in effect from time to time
with respect to companies and that shall apply to the Company. 

	 	
“Genesis”
– shall mean Genesis Partners II, L.D.C., Genesis Partners II (Israel) L.P. and their
Permitted Transferees to which they transfer shares. 

	 	
“Intel”
shall mean Intel Atlantic, Inc., a corporation established and existing under the laws of
the State of Delaware, USA. 

	 	
The
“Office” – shall mean the registered office of the Company as it
shall be from time to time.  

	 	
The
term “Major Holder” shall mean a holder of at least 2.5% of the issued
and outstanding shares of the Company, on an as converted basis and with respect solely to
Article 14 – a holder of at least 2% of the issued and outstanding shares of the
Company, on an as converted basis. 

	 	
“Majority
Preferred Shareholders” – shall mean the holders of the majority of the
issued and outstanding Preferred Shares (calculated on an as converted basis). 

	 	
“Ordinary
Shares” – shall mean Ordinary Shares of the Company, par value NIS 0.01
each.  

	 	
“Original
Issue Price” – shall mean: (i) with respect to the Series AA Preferred
Shares, $2.4385 per share, provided, that with respect to any Series AA Preferred Share
issued upon the exercise of warrants outstanding as of the closing of the Poalim
Agreement, the Original Issue Price shall be $3.4885and provided further that with respect
solely to Article 9 the Original Issue Price per each Series AA Preferred Share shall be
the same as the Original Issue Price of the Series BB-1 Preferred Shares; (ii) with
respect to the Series BB-1 Preferred Shares and the Series BB-3 Preferred Shares, $2.3194
per share; (iii) with respect to the Series BB-2 Preferred Shares, $1.97149 per share; and
(iv) with respect to the Series BB-4 Preferred Shares, $2.4354 per share, as such prices
may be adjusted, for certain purposes set forth in these Articles, upon the occurrence of
a Recapitalization Event. 

	 	
“Orbotech”
– shall mean Orbotech Technology Ventures L.P. and its Permitted Transferees to which
it transfers shares. 

	 	
“Permitted
Transferee” – shall mean: (i) a person or entity that controls or is
controlled by or is under common control with the respective shareholder; (ii) spouse,
brothers, sisters, parents and children of the transferor or a trust for the benefit of
the transferor and/or any of the foregoing, in the event the shares are held by
individuals; (iii) in the case of any shareholder which is a limited or general
partnership or a trust, to its partners (including retired partners) or beneficiaries and
to affiliated partnerships managed by the same management company or managing (general)
partner or by an entity which directly or indirectly controls, is controlled by, or is
under common control with, such management company or managing or general partner; (iv) a
trustee of the Company’s incentive plans may transfer to a beneficiary and vice
versa; (v) in the case of Plenus Technologies Ltd., Plenus II, L.P., Plenus II (D.C.M.),
Limited Partnership, Golden Gate Bridge Fund, L.P., Bank Leumi Le-Israel B.M. and the
Participants (listed in Schedule 1 of the Loan Agreement between the Company, Plenus II,
L.P. and Plenus II (D.C.M.), Limited Partnership dated October 11, 2005), each shall be
considered a Permitted Transferee of each other, as long as such Permitted Transferee is
not a competitor of the Company; and (vi) Bank Leumi Le-Israel BM (“BLL”)
shall be a Permitted Transferee of Pitango Principals Fund III (Israel) LP
(“Pitango Principals”), who may freely pledge and subject any of its
shares and other securities in the Company to a charge in favor of BLL, without being
subject to any restrictions hereunder with respect to the creation or imposition of such
pledge or charge, including, without limitation, the requirement for Board approval or any
other approval, any right of first refusal, co-sale offer or otherwise. However, the sale
of the said securities on behalf of Bank Leumi Le-Israel BM pursuant to a realization of
the said charge shall be subject to the right of first refusal and any other
restrictions on the transfer of shares contained herein. 

	 	
The
term “control” shall have the same meaning as designated to it under the
Companies Law and shall also mean the possession, directly or indirectly, of more than 50%
of the voting power or the right to appoint more than 50% of the members of the Board of
Directors or the right to receive more than 50% of the distributed profit. 

- 2 -

	 	
“Pitango”
– shall mean Pitango Venture Capital Fund III (Israeli Sub) L.P., Pitango Venture
Capital Fund III (Israeli Sub.) Non-Q L.P., Pitango Venture Capital Fund III (Israeli
Investors) L.P., Pitango JP Morgan Fund III (Israel), L.P., Pitango Principles Fund III
(Israel) L.P., Pitango Venture Capital Fund III Trusts 2000 L.P., all of which shall be
deemed Permitted Transferees of each other, and their Permitted Transferees to which they
transfer shares 

	 	
The
“Poalim Agreement” shall mean the Series BB Preferred Share Purchase
Agreement dated September 13, 2005 between the Company and certain investors. 

	 	
“Poalim
Ventures” means Poalim Ventures Ltd., Poalim Ventures I Ltd. and Poalim Ventures
II L.P., who shall be deemed Permitted Transferees of each other, and their Permitted
Transferees to which they transfer shares. 

	 	
“Preferred
Shares” – shall mean Series AA Preferred Shares and Series BB Preferred
Shares.  

	 	
“Qualified
IPO” or “QIPO” – shall mean the consummation of a firm
commitment underwritten public offering of the Company’s shares, netting to the
Company at least US$ 30,000,000 (Thirty Million), at an offering price per share in excess
of 3 (three) times the Original Issue Price of the Series BB-1 Preferred Shares. 

	 	
“Recapitalization
Event” – shall mean any event of share combination or subdivision,
distribution of bonus shares or any other similar reclassification, reorganization or
recapitalization of the Company’s share where the shareholders retain their
proportionate holdings in the Company. 

	 	
“Series
AA Preferred Shares” – shall mean Series AA Preferred Shares of the Company,
par value NIS 0.01 each. 

	 	
“Series
BB Preferred Shares” – shall mean Series BB-1 Preferred Shares, Series
BB-2 Preferred Shares, Series BB-3 Preferred Shares and Series BB-4 Preferred Shares. 

	 	
“Series
BB-1 Preferred Shares” – shall mean Series BB-1 Preferred Shares of the
Company, par value NIS 0.01 each. 

	 	
“Series
BB-2 Preferred Shares” – shall mean Series BB-2 Preferred Shares of the
Company, par value NIS 0.01 each. 

	 	
“Series
BB-3 Preferred Shares” – shall mean Series BB-3 Preferred Shares of the
Company, par value NIS 0.01 each. 

	 	
“Series
BB-4 Preferred Shares” – shall mean Series BB-4 Preferred Shares of the
Company, par value NIS 0.01 each. 

	 	
“Star”
– shall mean SVE Star Ventures Enterprises Gmbh & Co. No. IX KG., Star Management
of Investments No. II (2000) L.P., SVM Star Ventures Managementgesellschaft mbH No. 3,
Star Growth Enterprise, a German Civil Law Partnership (with limitation of liability) and
their Permitted Transferees to which they transfer shares. 

- 3 -

	 	
“Wellington”
- shall mean Wellington Partners Ventures III Technology Fund L.P. and its Permitted
Transferees to which it transfers shares.  

	 	
The
“Wellington Agreement” – shall mean the Series BB Preferred Share
Purchase Agreement dated March 22, 2006. 

	 	
In
these Articles, subject to this Article 2 and unless the context otherwise requires,
expressions defined in the Companies Law, or any modification thereof in force at the date
at which these Articles become binding on the Company, shall have the meanings so defined;
and words importing the singular shall include the plural, and vice versa, and words
importing the masculine gender shall include the female, and words importing persons shall
include bodies corporate. The titles of the articles are not part of the articles. 

	 	
For
purposes of determining the availability of any right or the applicability of any
limitation under these Articles, all Ordinary Shares and Preferred Shares entitled to such
right or the application of such limitation held or acquired by affiliated entities or
persons constituting Permitted Transferees of each other, shall be aggregated and such
entities or persons shall be viewed as a single Shareholder. 

	 	
In
the event that an article that has been added to these Articles contradicts an original
article found in these Articles – the article added shall take precedence. 

	3.  	PRIVATE
COMPANY 

	 	(a) 	The
Company is a private Company. 

	 	(b) 	The
right to transfer the shares of the Company shall be restricted in the           manner
hereinafter appearing; 

	 	(c) 	The
number of the shareholders of the Company (not including persons who are in           the
employment of the Company, and persons who, having been formerly in the
          employment of the Company were while in that employment and have continued
after           the termination of that employment to be shareholders of the Company)
shall be           limited to fifty, provided that, for the purposes of this provision,
where two           or more persons hold one or more shares in the Company jointly they
shall be           treated as a single shareholder; and 

	 	(d) 	No
invitation shall be issued to the public to subscribe for any shares or
          debentures or debenture stocks of the Company. 

	3A  	CHARITABLE
CONTRIBUTIONS

	 	
The
Company may donate reasonable sums of money and/or issue securities of the Company
representing up to tenth of one percent (0.1%) of its issued and outstanding share
capital, to any worthy purpose or entity approved by the Board of Directors of the Company
even if such donation is not made for business consideration. 

- 4 -

	4.  	OFFICE 

	 	
The
Office of the Company shall be at such place as the Board shall from time to time
designate.  

	5.  	THE
CAPITAL 

	 	
The
authorized capital of the Company is comprised of NIS 964,500 divided into: 53,000,060
Ordinary Shares, par value 0.01 NIS per share, 15,000,000 Series AA Preferred Shares, par
value 0.01 NIS per share, 12,137,708 Series BB-1 Preferred Shares, par value 0.01 NIS per
share, 4,000,000 Series BB-2 Preferred Shares, par value 0.01 NIS per share, 5,862,292
Series BB-3 Preferred Shares, par value 0.01 NIS per share and 6,449,940 Series BB-4
Preferred Shares, par value 0.01 NIS per share. 

	6.  	RIGHTS,
PREFERENCES AND RESTRICTIONS OF PREFERRED SHARES 

	 	
The
rights, preferences, privileges, and restrictions granted to and imposed on the Preferred
Shares are as set forth in these Articles. 

	7.  	DIVIDEND
PROVISIONS 

	 	
Subject
to Article 8 below, any dividends declared by the Company shall be distributed, subject to
Article 30 below, between all holders of shares of the Company, pari passu, based upon the
number of Ordinary Shares (on an as converted basis) held by any such holder. 

	8.  	DIVIDEND
AND LIQUIDATION PREFERENCE 

	 	(a) 	Upon
the happening of any of the following events: 

	 	(1) 	any
liquidation, dissolution or winding up of the Company, either voluntary or
               involuntary; or  

	 	(2) 	any
consolidation, or merger of the Company with or into another corporation
               following which the shareholders of the Company prior to such transaction
do not                hold following such transaction more than 50% of the outstanding
shares and the                voting power of the surviving corporation by virtue of
their holdings in the                Company prior to such transaction (“Merger”);
or  

	 	(3) 	any
sale or transfer to another corporation of all or substantially all of the
               assets of the Company, or all or substantially all of the shares in the
Company                (other than to a wholly owned subsidiary of the Company or to a
corporation in                which the shareholders of the Company prior to the
transaction hold more than                50% of the outstanding voting rights) (“Acquisition”);
or  

	 	(4) 	any
distribution of dividends;  

	 	
(any
of the events described in sections (1) to (4) above shall be hereinafter referred to as
a “Liquidation Event”) 

	 	
then
the amount of declared dividends or any assets of the Company available for distribution
in connection with, or the consideration received in, such Liquidation Event (hereinafter
referred to as “Distribution Assets”) shall be distributed pursuant to
the following order of preference: 

- 5 -

	 	(b) 	The
holders of the Series BB-3 Preferred Shares and the holders of the Series           BB-4
Preferred Shares shall be entitled to receive, prior and in preference to           any
distribution of any of the assets of the Company to the holders of all other
          equity securities of the Company by reason of their ownership thereof, an
amount           per each Series BB-3 Preferred Share and per each Series BB-4 Preferred
Share           equal to: (i) the applicable Original Issue Price for each such share,
plus (ii)           an amount equal to declared but unpaid dividends on each such share,
plus (iii)           an amount equal to 8% return per annum, compounded annually, on the
applicable           Original Issue Price, for each such share to be calculated from the
date of           payment to the Company on account of such share, and with respect to
the Series           BB-4 Preferred Shares resulting from the conversion provided for in
the Amadeus           Agreement, from the date of payment of the Conversion Consideration
by Amadeus           to the Company, until such distribution, less (iv) any amount of
dividend           preference paid on account of such share until such distribution (the
          “BB-3/4 Preference Amount”). In the event that the
Distribution           Assets are not sufficient for a full payment of the BB-3/4
Preference Amount to           the holders of the Series BB-3 Preferred Shares and the
holders of the Series           BB-4 Preferred Shares pursuant to this subarticle (b),
such Distribution Assets           as are available for distribution, shall be
distributed among the holders of the           Series BB-3 Preferred Shares and the
holders of the Series BB-4 Preferred Shares           pro-rata in proportion to the
preferential amount each such holder is otherwise           entitled to receive. 

	 	(c) 	Following
the payment in full of the BB-3/4 Preference Amount, the holders of           the Series
BB-1 Preferred Shares and the holders of the Series BB-2 Preferred           Shares shall
be entitled to receive, prior and in preference to any distribution           of any of
the assets of the Company to the holders of all other equity           securities of the
Company by reason of their ownership thereof, an amount per           each Series BB-1
Preferred Share and per each Series BB-2 Preferred Share equal           to: (i) the
applicable Original Issue Price for each such share, plus           (ii) an amount
equal to declared but unpaid dividends on each such share,           plus (iii) an amount
equal to 8% return per annum, compounded annually, on the           applicable Original
Issue Price, for each such share to be calculated from the           date of payment to
the Company on account of such share until such distribution,           less (iv) any
amount of dividend preference paid on account of such share until           such
distribution (the “BB-1/2 Preference Amount”). In the           event
that the Distribution Assets are not sufficient for a full payment of the
          BB-1/2 Preference Amount to the holders of the Series BB-1 Preferred Shares and
          the holders of the Series BB-2 Preferred Shares pursuant to this subarticle
(c),           such Distribution Assets as are available for distribution, shall be
distributed           among the holders of the Series BB-1 Preferred Shares and the
holders of the           Series BB-2 Preferred Shares pro-rata in proportion to the
preferential amount           each such holder is otherwise entitled to receive. 

- 6 -

	 	(d) 	Following
the payment in full of the BB-3/4 Preference Amount and the BB-1/2           Preference
Amount, the holders of the Series AA Preferred Shares shall be           entitled to
receive prior and in preference to any distribution of any of the           assets of the
Company to the holders of all other equity securities of the           Company by reason
of their ownership thereof, an amount per each Series AA           Preferred Share equal
to: (i) the Original Issue Price for each Series AA           Preferred Share, plus (ii)
an amount equal to declared but unpaid dividends on           each such Series AA
Preferred Share, plus (iii) an amount equal to 8% return per           annum, compounded
annually, on the Original Issue Price for each outstanding           Series AA Preferred
Share to be calculated from the later of the date of payment           to the Company on
account of such Series AA Preferred Share or May 23, 2002 and           until such
distribution, less (iv) any amount of dividend preference paid on           account of
such Series AA Preferred Share until such distribution (the           “AA
Preference Amount”). 

	 	
In
the event that, following the payment in full of the BB-3/4 Preference Amount and the
BB-1/2 Preference Amount, the remaining Distribution Assets are not sufficient for a full
payment of the AA Preference Amount pursuant to this sub-article (d), then such remaining
Distribution Assets shall be distributed among the holders of Series AA Preferred Shares
pro-rata in proportion to the preferential amount each such holder is otherwise entitled
to receive. 

	 	(e) 	Thereafter,
the holders of the Preferred Shares and the holders of the Ordinary           Shares
shall be entitled to receive any remaining Distribution Assets available           for
distribution pro rata based on the number of Ordinary Shares (on an as
          converted basis) held by any such holder. 

	 	(f) 	Notwithstanding
the foregoing, if distribution of the Distribution Assets among           all
shareholders of the Company, pro-rata to the number of shares they hold on           an
as converted basis, will result in the holders of Series BB-3 Preferred           Shares
receiving in respect of each Series BB-3 Preferred Share they hold an           amount of
at least three (3) times the Original Issue Price of the Series BB-3           Preferred
Shares, then the provisions of sub-articles (b)-(e) above shall not           apply and
the Distribution Assets shall be distributed among all shareholders of           the
Company, pro-rata to the number of share they hold, on an as converted           basis. 

	 	(g) 	In
the event of a Merger or an Acquisition in which the shareholders (and not           the
Company) are the intended recipients of the proceeds resulting therefrom           (such
as with a sale of shares transaction), no transfer of securities in           accordance
thereto will be considered valid, unless the provisions of the           distribution
preferences under this Article 8 shall apply. 

	 	(h) 	Whenever
the Distribution Assets are in securities or property other than cash,           the
value of such assets shall be the fair market value of such securities or           other
property as shall be determined by the Board, or by the liquidator in case           of
winding up. Such proceeds shall be made payable in US dollars unless any           holder
of fully paid share elects to receive such distributions in NIS. The NIS
          equivalent of the dollar value of any distribution shall be determined in
          accordance with the Representative Rate last published by the Bank of Israel
          prior to the date of the making of the distribution. 

	9.  	CONVERSION
OF PREFERRED SHARES 

	 	
The
holders of the Preferred Shares shall have conversion rights as follows (the
“Conversion  Rights”): 

- 7 -

	 	(a) 	Right
to Convert. 

	 	(1) 	Subject
to Article 9(c), each fully paid Preferred Share shall be convertible,                at
the option of the holder thereof, at any time after the date of issuance of
               such Preferred Share at the Office or any transfer agent for the Preferred
               Shares, into one fully paid and non-assessable Ordinary Share nominal
value NIS                0.01 and the Company shall, at such time, issue to the holders
thereof, for no                additional charge (a portion of the premium paid for such
Preferred Shares being                attributed as payment on account of the nominal
value of such additional                Ordinary Shares – in the event that the then
applicable law requires that                shares are issued for no less than their
nominal value and to the extent no                other source available pursuant to the
provisions of the then applicable law may                be used for such purpose), such
number of fully-paid and non-assessable Ordinary                Shares as required so
that the total number of Ordinary Shares so issued (i.e.                including the
Ordinary Share into which the Preferred Share was converted) will                be equal
to the number determined by dividing the Original Issue Price                applicable
to such Preferred Share by the Conversion Price (as defined below) at                the
time in effect for such share. In the event that the then applicable law
               requires that shares are issued for not less than their nominal value, and
the                aggregate nominal value of all such Ordinary Shares shall exceed the
               consideration paid to the Company with respect to such Preferred Share,
the                holder thereof shall pay the Company such excess nominal value to the
extent no                other source available pursuant to the provisions of the then
applicable law                (such as premiums paid for other shares of the Company) may
be used for such                purpose. The initial Conversion Price per each Preferred
Share shall be its                Original Issue Price, provided, however, that the
Conversion Price for the                Preferred Shares shall be subject to adjustment
as set forth in subarticles                9(c), 9(d) and 9(e).  

	 	(2) 	Each
Preferred Share shall automatically be converted into Ordinary Shares at
               the Conversion Price at the time in effect for such Preferred Share upon
the                earlier of: (A) a Qualified IPO, or (B) the written consent of the
Majority                Preferred Shareholders, provided however that if such conversion
is not part of,                or conditioned upon the closing of, a Qualified
Transaction (as defined in                Article (12)(e) below), such conversion shall
be subject to the Special BB                Consent as set forth in Article 12(e) below.
The Series AA Preferred Shares                shall also automatically be converted into
Ordinary Shares as aforesaid upon the                consent of the holders of at least
sixty six percent (66%) of the issued and                then outstanding Series AA
Preferred Shares.  

- 8 -

	 	(b) 	Mechanics
of Conversion. 

	 	(1) 	Before
any holder of Preferred Shares shall be entitled to convert the same into
               Ordinary Shares such holder shall surrender the certificate or
certificates                therefor at the Office and shall give written notice to the
Company of the                election to convert the same (or any part thereof) and
shall state therein the                name or names of any nominee for such holder in
which the certificate or                certificates for shares of Ordinary Shares are to
be issued. The Company shall,                as soon as practicable thereafter unless
such notice states that conversion is                to be effective on any later date or
when any conditions specified in the notice                have been fulfilled in which
case conversion shall take effect on such other                date or when such
conditions have been fulfilled, issue and deliver at such                office to such
holder of Preferred Shares, or subject to the transfer                restrictions
contained in these Articles to the nominee or nominees of such                holder, a
certificate or certificates for the number of shares of Ordinary                Shares to
which such holder shall be entitled as aforesaid. Such conversion                shall be
deemed to have been made immediately prior to the close of business on                the
date of such surrender of the shares of Preferred Shares to be converted, or
               on any later date or when any conditions specified in the notice have been
               fulfilled and the person or persons entitled to receive the Ordinary
Shares                issuable upon such conversion shall be treated for all purposes as
the record                holder or holders of such Ordinary Shares as of such date. If
the conversion is                in connection with a QIPO, the conversion may, at the
option of any holder                tendering Preferred Shares for conversion, be
conditioned upon the closing with                the underwriter of the sale of
securities pursuant to such offering, in which                event the person(s)
entitled to receive the Ordinary Shares issuable upon such                conversion of
the Preferred Shares shall not be deemed to have converted such                Preferred
Shares until immediately prior to the closing of such sale of                securities.
In the event that the certificate(s) representing the Preferred                Shares to
be converted as aforesaid are not delivered to the Company, then the
               Company shall not be obligated to issue any certificate(s) representing
the                Ordinary Shares issued upon such conversion, unless the holder of such
Preferred                Shares notifies the Company in writing that such certificate(s)
have been lost,                stolen or destroyed and executes an agreement satisfactory
to the Company to                indemnify the Company from any loss incurred by it in
connection with such                certificates.  

	 	(2) 	A
conversion of Preferred Shares pursuant to one of the events described in
               Article 9(a)(2) shall be deemed to have taken place automatically
regardless of                whether the certificates representing such shares have been
tendered to the                Company but from and after such conversion any such
certificates not tendered to                the Company shall be deemed to evidence
solely the Ordinary Shares received upon                such conversion and the right to
receive a certificate for such Ordinary Shares.  

	 	(c) 	Conversion
Price Adjustments of Preferred Shares 

	 	
Until
the QIPO, the applicable Conversion Price of the Preferred Shares shall be subject to
adjustment from time to time as follows: 

	 	(1) 	During
the period commencing on the closing of the Poalim Agreement, and ending
               on the earlier of (x) the QIPO or (y) 24 months following such date (the
               “Initial Period”), upon each issuance by the Company of
any                “Additional Securities” (as defined below) without
consideration or                for a price per share less than the applicable Conversion
Price for any issued                and outstanding Series BB Preferred Shares in effect
immediately prior to the                issuance of such Additional Securities, the
applicable Conversion Price for any                such issued and outstanding Series BB
Preferred Share in effect immediately                prior to each such issuance shall be
adjusted to the price per share paid at                such issuance.  

- 9 -

	 	(2) 	With
respect to the Series BB Preferred Shares during the period after the
               Initial Period and until the QIPO and with respect to the Series AA
Preferred                Shares during the Initial Period and thereafter until the QIPO,
upon each                issuance by the Company of any “Additional Securities” (as
defined                below), without consideration or for a price per share less than
the applicable                Conversion Price for any issued and outstanding applicable
series of Preferred                Shares in effect immediately prior to the issuance of
such Additional                Securities, the applicable Conversion Price for any such
issued and outstanding                series of Preferred Shares in effect immediately
prior to each such issuance                shall be adjusted to a price (calculated to
the nearest ten thousandth of a US                Dollar ($0.0001)) determined by
dividing (1) the sum of (A) the total number of                Ordinary Shares issued and
outstanding prior to the issuance of such Additional                Securities multiplied
by the applicable Conversion Price of such series, as the                case may be, in
effect prior to the issuance of such Additional Securities, plus                (B) the
total amount of the consideration received by the Company for such
               Additional Securities by (2) the sum of the total number of Ordinary
Shares                issued and outstanding immediately prior to the issuance of such
Additional                Securities plus the number of such Additional Securities
issued. For the purpose                of the above calculation, the number of shares of
Ordinary Shares issued and                outstanding immediately prior to such issue
shall be calculated on an as                converted and fully diluted basis, as if all
outstanding warrants, options or                other rights for the purchase of shares
or convertible securities had been fully                exercised (and the resulting
securities fully converted into Ordinary Shares, if                so convertible) as of
such date.  

	 	(3) 	In
the event that the full application of the anti dilution protection in
               subarticles 9(c)(1) and 9(c)(2) cannot be implemented mathematically, then
the                Series BB Preferred Shares shall have absolute priority over the
Series AA                Preferred Shares in implementation of the above, such that only
the Series BB                Preferred Shares shall be provided with the anti-dilution
protection.  

	 	(4) 	(A) 	
No adjustments of any applicable Conversion Price shall be made in an amount
               less than ten thousandth of a US Dollar ($0.0001). No adjustment of any
               applicable Conversion Price pursuant to subarticles 9(c)(1) and (2) shall
be                made if it has the effect of increasing the applicable Conversion Price
above                the applicable Conversion Price in effect immediately prior to such
adjustment.  

	 	(B) 	In
the case of the issuance of Additional Securities (as defined below) for           cash,
the consideration, for the purpose of subarticles 9(c)(1) and (2), shall           be
deemed to be the amount of cash received therefore before any payment of
          commissions, expenses and the like.  

	 	(C) 	In
the case of the issuance of Additional Securities (defined below) for a
          consideration, in whole or in part other than cash, the consideration other
than           cash shall, for the purpose of subarticles 9(c)(1) and (2), be deemed to
be the           fair value thereof as determined, in good faith, by the Board of
Directors.  

- 10 -

	 	(D) 	In
the case of the issuance of options to purchase or rights to subscribe for
          Ordinary Shares, or securities by their terms convertible into or exchangeable
          for Ordinary Shares or options to purchase or rights to subscribe for such
          convertible or exchangeable securities, the aggregate maximum number of
Ordinary           Shares deliverable upon exercise (assuming the satisfaction of any
conditions to           exercise, including without limitation, the passing of time, but
without taking           into account potential antidilution adjustments) of such options
to purchase or           rights to subscribe for Ordinary Shares or upon conversion or an
exchange of           such convertible or exchangeable security shall be deemed to have
been issued at           the time of the issuance of such options, rights, or securities
at a           consideration equal to the consideration (determined in the manner
provided in           subarticle 9(c)(4)(B) and (c)(4)(C)), if any, received by the
Company upon the           issuance of such options or rights or securities plus any
additional           consideration payable to the Company pursuant to the term of such
options or           rights or securities (without taking into account potential
antidilution           adjustments) for the Ordinary Shares covered thereby, and the
applicable           Conversion Price shall be adjusted accordingly. Upon the expiration
of any such           options or rights, the termination of any such rights to convert or
exchange or           the expiration of any options or rights related to such convertible
or           exchangeable securities, the Conversion Price for such series of Preferred
          Shares to the extent in any way affected by or computed using such options,
          rights or securities or options or rights related to such securities (unless
          such options or rights were merely to be included in the numerator and
          denominator for purposes of determining the number of Ordinary Shares
          outstanding for purposes of Article 9(c)(2)) shall be recomputed to reflect the
          issuance of only the number Ordinary Shares (and convertible or exchangeable
          securities that remain in effect) actually issued upon the exercise of such
          options or rights, or upon the conversion or exchange of such securities or
upon           the exercise of the options or rights related to such securities. The
number of           Ordinary Shares deemed issued and the consideration deemed paid
therefor shall           be appropriately adjusted to reflect any change, termination or
expiration of           the type described in this Article 9(c)(4)(D).  

	 	(E) 	For
purpose of subarticles 9(c)(1) and (2) hereof, the consideration for any
          Additional Securities shall be taken into account at the U.S. dollar equivalent
          thereof, on the day such Additional Securities are issued or deemed to be
issued           pursuant to subarticle 9(c)(4)(D).  

	 	(5) 	“Additional
Securities” shall mean any Ordinary Shares, options to                purchase or
rights to subscribe for Ordinary Shares, or securities which by                their
terms are convertible into or exchangeable for Ordinary Shares, or any
               securities convertible into or exercisable for any securities of the
foregoing.                Notwithstanding the foregoing, “Additional Securities” does
not                include:  

- 11 -

	 	(A) 	Securities
issued pursuant to a transaction described in subarticle 9(c)(6)                hereof;  

	 	(B) 	The
issuance, pursuant to the approval of the Board, of Ordinary Shares or
               Options to purchase Ordinary Shares to employees, directors and bona-fide
               consultants;  

	 	(C) 	Securities
issued pursuant to options, warrants or other rights outstanding on                the
closing of the Poalim Agreement or on the closing of the Wellington
               Agreement or on the closing of the Amadeus Agreement, provided that such
               options, warrants or other rights are reflected in the respective
Capitalization                Table attached to any of such agreements;  

	 	(D) 	Ordinary
Shares issued upon conversion of Preferred Shares;  

	 	(E) 	Issuance
of bonus shares, providing such bonus shares are issued to all the then
               existing shareholders, or shares issued pursuant to a rights offering in
which                all such shares are offered exclusively to existing shareholders;  

	 	(F) 	Shares
issued in the acquisition of another company provided that the issuance                of
such shares is approved by the Board of Directors;  

	 	(G) 	Shares
issued in connection with equipment leases, bank loans or secured debt
               financings approved by the Board of Directors provided the number of such
shares                issued shall not exceed 1% of the then issued and outstanding share
capital of                the Company on a fully diluted, as converted basis;  

	 	(H) 	Securities
issued or issuable following written approval of Majority Preferred
               Shareholders in which they agree to waive their anti-dilution or
pre-emptive                rights (as the case may be) with respect to such specific
issuance; and  

	 	(I) 	Securities
issued as a charitable donation pursuant to Article 3A.  

	 	(6) 	If
the Company shall subdivide or combine its Ordinary Shares, the applicable
               Conversion Price shall be proportionately reduced, in case of subdivision
of                shares, as at the effective date of such subdivision, or if the Company
shall                fix a record date for the purpose of so subdividing, as at such
record date,                whichever is earlier, or shall be proportionately increased,
in the case of                combination of shares, as at the effective date of such
combination, or, if the                Company shall fix a record date for the purpose of
so combining, as at such                record date, whichever is earlier.  

- 12 -

	 	(7) 	Subject
to the liquidation preference of the Preferred Shares as set forth in
               Article 8 above, if the Company at any time shall make a distribution
of                its assets to the holders of its Ordinary Shares as a dividend in
liquidation or                partial liquidation or by way of return of capital or other
than as a dividend                payable out of earnings or surplus legally available
for dividends, each holder                of Preferred Shares shall be entitled to
receive without payment of any                additional consideration, a sum equal to
the amount of such assets as would have                been payable to such holder as
owner of that number of Ordinary Shares                receivable by exercise of the
conversion rights had such holder been the holder                of record of such
Ordinary Shares on the record date for such distribution; and                an
appropriate provision therefor shall be made a part of any such distribution.  

	 	(d) 	Other
Distributions 

	 	
Subject
to the liquidation preference of the Preferred Shares as set forth in Article 8
above, in the event the Company shall declare a distribution payable in securities of
other persons, evidences of indebtedness issued by the Company or other persons, assets
(excluding cash dividends) or options or rights not referred to in subarticle 9(c)(5) or
if the Company at any time shall pay a dividend payable in additional Ordinary Shares or
other securities or rights convertible into, or entitling the holder thereof to receive
directly or indirectly, additional Ordinary Shares then, in each such case for the
purpose of this subarticle 9(d), the holders of the Preferred Shares shall be entitled to
receive such distribution, in respect of their holdings on an as-converted basis as of
the record date for such distribution. 

	 	(e) 	Recapitalizations 

	 	
If
at any time or from time to time there shall be a Recapitalization Event (other than a
subdivision, combination or merger or sale of assets transaction provided for elsewhere
in this Article 9 or Article 8) provisions shall be made so that the holders of
the Preferred Shares shall thereafter be entitled to receive upon conversion of the
Preferred Shares the number of Ordinary Shares or other securities or property of the
Company or otherwise, to which a holder of Ordinary Shares deliverable upon conversion
would have been entitled immediately prior to such Recapitalization Event. In any such
case, appropriate adjustment shall be made in the application of the provisions of this
Article 9 with respect to the rights of the holders of the Preferred Shares after such
Recapitalization Event to the end that the provisions of this Article (including
adjustment of the Conversion Price then in effect and the number of shares issuable upon
conversion of the Preferred Shares) shall be applicable after that event in a manner as
nearly equivalent as may be practicable. 

	 	(f) 	No
Impairment 

	 	
The
Company will not, by amendment of these Articles or through any reorganization,
recapitalization, transfer of assets, consideration, merger, dissolution, issue or sale
of securities or any other voluntary action, avoid or seek to avoid the observance or
performance of the Conversion Rights of the holders of Preferred Shares, but will at all
times in good faith assist in the carrying out of all the provisions of this Article 9
and in the taking of all such action as may be necessary or appropriate in order to
protect the Conversion Rights of the holders of the Preferred Shares against impairment. 

- 13 -

	 	(g) 	No
Fractional Shares and Certificate as to Adjustments 

	 	(1) 	No
fractional shares shall be issued upon conversion of the Preferred Shares,
               and the number of Ordinary Shares to be issued shall be rounded to the
nearest                whole share. Whether or not fractional shares are issuable upon
such conversion                shall be determined on the basis of the total number of
Preferred Shares held by                the holder and the number of Ordinary Shares
issuable upon such aggregate                conversion.  

	 	(2) 	Upon
the occurrence of each adjustment or readjustment of any applicable
               Conversion Price pursuant to this Article 9, the Company, at its
expense,                shall promptly compute such adjustment or readjustment in
accordance with the                terms hereof and prepare and furnish to each holder of
Preferred Shares a                certificate setting forth each adjustment or
readjustment and showing in detail                the facts upon which such adjustment or
readjustment is based. The Company shall                furnish or cause to be furnished
to such holder a like certificate setting forth                (A) such adjustment
and readjustment, (B) the applicable Conversion                Price at the time in
effect, and (C) the number of Ordinary Shares and the                amount, if any,
of other property which at the time would be received upon the                conversion
of a Preferred Share.  

	 	(h) 	Notices
of Record Date 

	 	
In
the event of any taking by the Company of a record of the holders of any class of
securities for the purpose of determining the holders thereof who are entitled to receive
any dividend (including a cash dividend) or other distribution, any right to subscribe
for, purchase or otherwise acquire any shares of any class or any other securities or
property, or to receive any other right, the Company shall provide to each holder of
Preferred Shares, at least 20 days prior to the date specified therein, a notice
specifying the date on which any such record is to be taken for the purpose of such
dividend, distribution or right, and the amount and character of such dividend,
distribution or right. 

	 	(i) 	Reservation
of Shares Issuable Upon Conversion 

	 	
The
Company shall at all times reserve and keep available out of its authorized but unissued
shares of Ordinary Shares solely for the purpose of effecting the conversion of the
Preferred Shares such number of its Ordinary Shares as shall from time to time be
sufficient to effect the conversion of all outstanding Preferred Shares; and if at any
time the number of authorized but unissued Ordinary Shares shall not be sufficient to
effect the conversion of all then outstanding Preferred Shares, in addition to such other
remedies as shall be available to the holder of such Preferred Shares, the Company will
take such corporate action as may, in the opinion of its counsel, be necessary to
increase its authorized but unissued Ordinary Shares to such number of shares as shall be
sufficient for such purposes. 

	10.  	RESERVED 

- 14 -

	11.  	VOTING
RIGHTS 

	 	
Subject
to Article 58 below, each holder of Ordinary Shares and Preferred Shares shall be entitled
to one (1) vote per Ordinary Share or Ordinary Share into which such Preferred Share is
convertible at the time of voting, whether in a vote by show of hands, secret ballot or
written consent. Each holder of Preferred Shares shall vote together with the Ordinary
Shares as a single class (except as otherwise expressly provided in these Articles or as
required by law) and shall be entitled to notice of any general meeting of shareholders in
accordance with these Articles. Fractional votes shall not be permitted and any fractional
vote resulting from the conversion mechanism described above in these Articles shall be
rounded up or down to the nearest whole number (with one-half (1/2) being rounded upward). 

	12.  	PROTECTIVE
PROVISIONS 

	 	(a) 	Until
the QIPO, the Company shall not take any of the following actions without
          approval of the Majority Preferred Shareholders (which may be obtained by way
of           a written consent and shall not require the convening of a shareholders
meeting           for such purpose, unless required by applicable law): 

	 	(1) 	any
amendment to or modification of these Articles and/or the Memorandum of
          Association of the Company or any other action which would amend, change or
          modify the rights, preferences or privileges of the Preferred Shares.  

	 	(2) 	declaration
of any dividend;  

	 	(3) 	the
authorization of any share capital, or other rights or securities           convertible
into or exchangeable for share capital, or the conversion of any           existing
shares into shares, in each case with rights equal to or superior to           the rights
of the Preferred Shares;  

	 	(4) 	any
action or transaction which is outside the business of the Company as
          contemplated in the Updated Work Plan of the Company (as defined in the Amadeus
          Agreement);  

	 	(5) 	any
action which effects a merger, reorganization, liquidation, disposition,
          acquisition or sale of the Company or of any subsidiary thereof, or any
transfer           of a material asset of the Company or of any subsidiary thereof, or
the creation           of or purchase of or into any entity;  

	 	(6) 	any
action which may alter or change the capital structure of the Company or of           any
subsidiary thereof, any action which effects a reclassification or
          recapitalization of the outstanding capital shares of the Company, and any
          increase in the registered share capital of the Company or of any subsidiary
          thereof;  

- 15 -

	 	(7) 	the
creation of any guarantee, mortgage, pledge or security interest in a           material
asset, or in all or substantially all of the assets of the Company or a
          subsidiary;  

	 	(8) 	the
replacement of the independent auditors to the Company, which in any event
          shall be one of the “big four”; and  

	 	(9) 	the
incurrence by the Company or by any subsidiary thereof of any indebtedness           that
shall exceed the sum of $250,000 (Two Hundred Fifty Thousand US Dollars),
          calculated on a cumulative basis in respect of any one transaction or in
respect           of a series of connected transactions;  

	 	(b) 	Until
the QIPO, the Company shall not issue any securities of any kind or           options to
purchase securities of any kind without the approval of the majority           of the
directors appointed by the holders of the Preferred Shares, provided           however
that shares issued upon the exercise of warrants, options, or other           rights
outstanding as of the closing of the Poalim Agreement, the closing of the
          Wellington Agreement or the closing of the Amadeus Agreement or the grant of
          options (and shares issued upon exercise of such options) under the
          Company’s incentive plans are not subject to such approval. 

	 	(c) 	Any
amendment or modification of the rights and obligations of Intel set forth           in
Article 29(e) (Right of First Refusal), Article 29A (Co-Sale) and Article
          29(B)(b) (Bring Along) and 65(c) (Directors) shall require the consent of
Intel. 

	 	(d) 	Until
the QIPO, the Company shall not take, without the consent of the holders           of at
least a majority of the issued and outstanding Preferred Shares of the           affected
class, an action that amends or modifies the rights attached to such           class of
Preferred Shares, provided however that (a) the authorization or           issuance of a
new class of shares with preferential rights, or (b) a change,           waiver of other
modification that applies to the rights of the Preferred Shares           in the same
proportional manner and without treating a certain series           proportionally
different from the other series, in each case – that was           approved by
holders of a majority of the issued and outstanding Preferred           Shares, shall not
be deemed a change hereunder. 

	 	(e) 	Until
the QIPO, the Company shall not take, without the consent of the holders           of at
least a majority of the issued and outstanding Series BB Preferred Shares
          (which must include also the affirmative consent of the holders of the majority
          of the Series BB-1 Preferred Shares, Series BB-3 Preferred Shares and Series
          BB-4 Preferred Shares (voting together as one group) that were issued at the
          closing of the Poalim Agreement, at the closing of the Wellington Agreement and
          at the closing of the Amadeus Agreement to investors who were not shareholders
          of the Company immediately prior to the closing of the Poalim Agreement or
          affiliates or Permitted Transferees of such shareholders (the “Special
          BB Consent”)) an action that effects (i) any change or waiver of
rights           of the Series BB Preferred Shares that does not apply to the rights of
all           Preferred Shares in the same proportional manner and that treats a certain
          series proportionally differently from the other series; (ii) any waiver of
          liquidation preferences, anti-dilution, board representation or information
          rights of the Series BB Preferred Shares, (iii) an IPO, merger or the sale of
          all or substantially all of the Company’s shares or assets, unless, in
each           such case, the applicable IPO or transaction reflects a price per share of
more           than two times the Original Issue Price of the Series BB-1 Preferred
Shares (a           “Qualified Transaction”), or (iv) conversion of the
Series BB           Preferred Shares, other than as part of, and conditioned upon the
closing of, a           Qualified Transaction. 

- 16 -

	 	(f) 	The
required consents as set forth in Articles 12(a) – (e) above shall also
          apply to any action taken by any wholly owned subsidiary of the Company. 

	13.  	ALLOTMENT
OF SHARES 

	 	
Subject
to the provisions of Articles 12 and 14, the authorized but unissued shares shall be
under the control of the Board of Directors, who shall have the power to allot shares or
otherwise dispose of them to such persons, on such terms and conditions (including,
inter-alia, terms relating to calls as set forth in Article 31 hereof), and either at
par or at a premium, or, subject to the provisions of the Companies Law, at a discount,
and at such times, as the Board of Directors may think fit, and the power to give any
person the option to acquire from the Company any shares, either at par or at premium, or
subject as aforesaid, at a discount, during such time and for such consideration as the
Board of Directors may think fit. 

	14.  	PREEMPTIVE
RIGHTS 

	 	(g) 	Until
the QIPO, the provisions of this Article 14 shall apply: 

	 	(1) 	Any
Additional Securities (as defined in Article 9 above) to be issued by           the
Company (the “Offered Securities”) shall first be
          offered by the Board of Directors by written notice to each Major Holder (for
          purposes of this Article 14, the “Offerees”). The number of
          Offered Securities offered to each Offeree shall be the result of the
          multiplication of the Offered Securities by a fraction: (i) the numerator
          of which shall be the total number of outstanding Ordinary Shares of the
Company           (on an as-converted basis) held by such Offeree as determined prior to
the offer           made pursuant to this Article 14, and (ii) the denominator
of which is           the total number of outstanding Ordinary Shares of the Company (on
an           as-converted basis), as determined prior to the offer made pursuant to this
          Article 14.  

	 	(2) 	The
Company shall provide each Offeree with a Notice (the “Notice of           Offer”)
specifying the number of Offered Securities he is entitled to           purchase and
which shall state the terms of the proposed issuance, and any such           Offeree may
accept such offer, as to all or any part of the Offered Securities           so offered
to him, by giving the Company written notice of acceptance within           twenty (20)
days after being served with such Notice of Offer; provided          that if the
purchase by such Offeree is being effected prior to, or concurrently           with such
issuance of Offered Securities (rather than subsequent thereto) then           such
Offeree shall be obligated to consummate the purchase of such Offered
          Securities only if the Company consummates the sale of the balance of the
          Offered Securities pursuant to the terms described in such Notice of Offer  

- 17 -

	 	(3) 	Any
and all preemption rights set forth in this Article 14, may be exercised by           a
Permitted Transferee of a Major Holder instead of by such Major Holder if such
          Major Holder so notifies the Company in writing.  

	 	(h) 	Any
Offered Securities not subscribed for by the Offeree as aforesaid, shall be
          under the control of the Board of Directors and may be issued without regard to
          this Article 14, except to the extent that said Offered Securities may not
          be allotted on terms more favorable to the purchaser than those offered
pursuant           to this Article 14. In the event the Offered Securities are not
acquired by           the expiration of 120 days from the date of expiration of the
twenty (20) day           period referred to in Article 14(a)(2), they may not be
issued except by           compliance with the provisions of Article 14. 

	15.  	REGISTERED
HOLDER 

	 	(a) 	If
two or more persons are registered as joint holders of a share they shall be
          jointly and severally liable for any calls or any other liability with respect
          to such share. However, with respect to voting, power of attorney and
furnishing           notices, the one registered first in the register of shareholders,
insofar as           all the registered joint holders shall not notify the Company in
writing to           relate to another one of them as the sole owner of the share, as
aforesaid,           shall be deemed to be the sole owner of the share. 

	 	(b) 	In
the case that two or more persons are registered together as holders of a
          share, each one of them shall be permitted to give receipts binding all the
          joint holders for dividends or other monies in connection with the share and
the           Company shall be permitted to pay all the dividends or other monies due
with           respect to the share to one or more of the joint holders, as it shall
choose. 

	 	(c) 	Except
as otherwise provided in these Articles, the Company shall be entitled to           treat
the registered holder of any share as the absolute owner thereof, and,
          accordingly, shall not, except as ordered by a court of competent jurisdiction,
          or as required by statute, be bound to recognize any equitable or other claim
          to, or interest in, such share, on the part of any other person. 

	16.  	SHARE
CERTIFICATES 

	 	(a) 	A
shareholder shall be entitled to receive from the Company without payment, one
          certificate that shall contain that number of shares registered in the name of
          such shareholder, their class and serial numbering. However, in the event of
          joint holders holding a share, the Company shall not be obligated to issue more
          than one certificate to all of the joint holders, and the delivery of such a
          certificate to one of the joint holders shall be deemed to be a delivery to all
          of the joint holders. 

	 	(b) 	Each
certificate shall carry the signature or signatures of a director or such           other
persons appointed by the Board of Directors for this purpose and the           rubber
stamp or the seal of the Company. 

- 18 -

	 	(c) 	If
a share certificate is defaced, lost or destroyed, it may be replaced upon
          payment of such fee, if any, and on such terms, if any, as to evidence and
          indemnity as the Board of Directors may think fit. 

	17.  	MODIFICATIONS
OF SHARE RIGHTS 

	 	
If
at any time the share capital is divided into different classes of shares (unless
otherwise provided for by the terms of issue of the shares of that class) it shall be
permitted, subject to the provisions of Article 12 above, to change, convert,
broaden, add or vary in any other manner the rights, advantages, restrictions and
provisions attached at that time to one or more of the classes by a resolution of the
general meeting of the shareholders of the Company, without the need for any separate
class vote or class meeting. 

	 	
It
is hereby clarified that any resolution required to be adopted pursuant to these Articles
by the consent of a separate class of shares, whether by way of a separate general meeting
of such class or by way of written consent, shall be given by the holders of shares of
such class entitled to vote or give consent thereon and no holder of shares of a certain
class shall be banned from voting or consenting by virtue of being a holder of more than
one class of shares of the Company, irrespective of any conflicting interests that may
exist between such different classes of shares. A shareholder shall not be required to
refrain from participating in the discussion, voting and/or consenting on any resolution
concerning an amendment to any class of shares held by such shareholder, due to the fact
that such shareholder may benefit in one way or another from the outcome of such
resolution. 

	 	
Without
derogating from the need to receive any consents or approvals required pursuant to Article
12, it is hereby clarified and agreed that the enlargement of an existing class of shares,
or the issuance or allotment of additional shares thereof, or the creation of additional
shares of that class as a result of conversion of shares from another class or unification
with another class, shall not be deemed, for purposes of these Articles, to amend, change,
vary, modify or abrogate the rights attached to the previously issued shares of such class
or of any other class. 

PLEDGE 

     	18.	
          The Company shall have a lien and first pledge on all the shares, not fully
          paid, registered in the name of any shareholder (whether registered in his name
          only or together with another or others) and on the proceeds from the sale
          thereof, for any amount still outstanding with respect to that share, whether
          presently payable or not. Such a pledge shall exist whether the dates of payment
          or fulfillment or execution of the obligations, debts or commitments have become
          due or not, and shall apply to all dividends that shall be decided upon from
          time to time in connection with these shares. No benefit shall be created with
          respect to this share based upon the rules of equity which shall frustrate this
          pledge, however the Board may declare at any time with respect to any share,
          that it is released, wholly or in part, temporarily or permanently, from the
          provisions of this article. 

          

     	19.	
          The Company may sell, in such manner and at such time as the Board thinks fit,
          any of the pledged shares, but no sale shall be made unless the date of payment
          of the monies or a part thereof has arrived, or the date of fulfillment and
          performance of the obligations and commitments in consideration of which the
          pledge exists has arrived, and after a written request has been furnished to the
          shareholder or person who has acquired a right in the shares, which sets out the
          amount or obligation or commitment due from him and which demands their payment,
          fulfillment or execution, and which informs the person of the Board’s
          desire to sell the shares in the event of non-fulfillment of the notice, and the
          person has not fulfilled his obligation pursuant to the notice within seven days
          after the notice has been sent to him. 

          

- 19 -

     	20.	
          The net proceeds of such sale after payment of the costs thereof, shall be
          applied in payment of such sum due to the Company or to the fulfillment of the
          obligation or commitment (including debts, liabilities and engagements which
          have not yet fallen due for payment or satisfaction), and the remainder (if
          there shall be any) shall be paid to the shareholder or to the person who has
          acquired a right in the share sold pursuant to the above. 

          

     	21.	
          After execution of a sale as aforesaid, the Board shall be permitted to sign or
          to appoint someone to sign a deed of transfer of the sold shares and to register
          the buyer’s name in the register of shareholders as the owner of the sold
          shares and it shall not be the obligation of the buyer to supervise the
          application of monies nor will his right in the shares be affected by a defect
          or illegality in the sale proceedings after his name has been registered in the
          register of shareholders with respect to those shares. The sole remedy of any
          person aggrieved by the sale shall be in damages only and against the Company
          exclusively. 

          

TRANSFER OF SHARES AND
THE MANAGEMENT THEREOF 

     	22.	
          Each transfer of shares shall be made in writing in the form appearing herein
          below, or in a similar form, or in any form as to be determined upon by the
          Board from time to time, such form shall be delivered to the Office together
          with the transferred share certificates and any other proof the Board shall
          require, if it shall so require, in order to prove the title of the transferor.
          The instruments and documents notifying the Company with respect to the transfer
          are a prerequisite to the effectuation of such transfer. Notwithstanding the
          above, any transfer of shares to any person or entity that is not at the time of
          transfer a shareholder of the Company and that competes with the Company,
          directly or indirectly, in the field of optical inspection or metrology for
          semiconductors or the transfer of shares which have not been fully paid up will
          require the consent and approval of the Board of Directors, except if such
          transfer is to a Permitted Transferee. 

          

Deed of Transfer of
Shares 

I, ____________ of _____________ in
consideration of the sum of NIS ________ (New Israeli Shekels) paid to me by
______________, of ____________ (hereinafter called “the said transferee”) do
hereby transfer to the said transferee ___________ share (or shares) having par value of
NIS ________ each one numbered ____ until ____ inclusive in Negevtech Ltd., to hold
unto the said transferee, his executors, administrators, and assigns, subject to the
conditions on which I held the same at the time of the execution hereof; and I, the said
transferee, do hereby agree to accept the said share (or shares) subject to the conditions
aforesaid. As witness we have hereunder set out hands the ______ day of _________ 20__. 

		
	_________________________	_________________________
	Transferee	Transferor
	 
	_________________________	_________________________
	Address	Address

- 20 -

	23.  	The
deed of share transfer shall be executed both by the transferor and           transferee,
and the transferor shall be deemed to remain a holder of the share           until the
name of the transferee is entered into the register of shareholders in           respect
thereof. 

	24.  	The
Company shall be permitted to demand a fee for registration of transfer, in           a
reasonable rate as to be determined by the Board from time to time, with the
          exception of transfers to Permitted Transferees. 

	25.  	The
Register shall be closed for a period of seven (7) days before every           ordinary
general meeting of the Company. 

	26.  	Upon
the death of a shareholder, the remaining holders (in the event that the
          deceased was a joint holder in a share) or the administrators or executors or
          heirs of the deceased (in the event the deceased was the sole holder of the
          share or was the only one of the joint holders of the share to remain alive)
          shall be recognized by the Company as the sole holders of any title to the
          shares of the deceased. However, nothing aforesaid shall release the estate of
a           joint holder of a share from any obligation with respect to the share that he
          held jointly with any other holder. 

	27.  	Any
person becoming entitled to a share in consequence of the death or           bankruptcy
or liquidation of a shareholder shall, upon such evidence being           produced as may
from time to time be required by the Board, have the right,           either to be
registered as a shareholder in respect of the share upon the           consent of the
Board or, instead of being registered himself, to transfer such           share to
another person, subject to the provisions contained in these Articles           with
respect to transfers. 

	28.  	A
person becoming entitled to a share because of the death of a shareholder           shall
be entitled to receive, and to give receipts for, dividends or other           payments
paid with respect to the share, but he shall not be entitled to receive           notices
with respect to Company meetings or to participate or vote therein with           respect
to that share, or aside from the aforesaid, to use any right of a           shareholder,
until he has been accepted as a shareholder with respect to that           share. 

	29.  	RIGHT
OF FIRST REFUSAL 

	 	(a) 	Until
the QIPO, a shareholder in the Company shall not be permitted to make any
          Transfer (as hereinafter defined) of his shares in the Company, other than to a
          Permitted Transferee, except pursuant to the following provisions set forth
          below. 

	 	
For
the purposes of this Agreement, the term “Transfer” shall mean any sale,
assignment, transfer, hypothecation or other encumbrance or disposition of in any way. 

	 	(b) 	A
shareholder, desirous of making any Transfer of the shares held by him to
          others, in whole or in part (hereinafter the “Transferor”)
          shall be obligated to offer them first to the Offerees (as defined in
          Article 14 above), by giving notice in writing to such Offerees
          (hereinafter “Sale Notice”). 

- 21 -

	 	(c) 	In
the Sale Notice the Transferor shall mention the number of shares he wishes           to
Transfer (hereinafter the “Offered Shares”), the price           forming
the consideration for the Offered Shares, the name of the transferee           (the “Transferee”)
and the other conditions of the sales. 

	 	(d) 	The
Sale Notice shall be irrevocable unless all of the Offerees agree otherwise. 

	 	(e) 	Each
of the Offerees may inform the Transferor in writing within 21 Business           Days
from the date of receipt of the Sale Notice as to his/her intention to           purchase
that number of Offered Shares, in whole or in part, which is the result           of the
multiplication of the Offered Shares by a fraction: (i) the           numerator of
which is the number of Ordinary Shares (on an as-converted basis)           of the
Company held by such Offeree and (ii) the denominator of which is           the
total number of outstanding Ordinary Shares (on an as-converted basis) held           by
all Offerees (hereinafter the “Offerees’ Offered           Shares”),
the purchase of which shall be at the purchase price and in           accordance with the
payment conditions as provided for in the Sale Notice           (hereinafter the “Purchase
Notice”). An Offeree who has           submitted a Purchase Notice shall be
referred to hereinafter as           “Buyer”. Notwithstanding the
foregoing, Intel (to the extent it           is a Major Holder) shall be required to
provide the Transferor with a Purchase           Notice within 10 days of receipt of the
Sale Notice and, in the event Intel is           the Transferor, the Offerees will be
required to provide Intel with a Purchase           Notice within 10 days of receipt of
the Sale Notice. 

	 	(f) 	Thereafter,
the Transferor shall give each Buyer who has fully exercised his           rights
pursuant to Article 29(e) a written notice (the “Excess           Notice”)
stating the amount of Offered Shares with respect to which no           Purchase Notice
was submitted (hereinafter referred to as “Excess Offered Shares”)
and each such Buyer shall be entitled, subject to           Article 29(j) below, provided
he so notifies the Transferor in writing (the           “Excess Reply Notice”),
such Excess Reply Notice to be received           by the Transferor within 7 Business
Days following the delivery by the           Transferor to such Buyer of the Excess
Notice, to purchase any or all of such           Excess Offered Shares. 

	 	(g) 	If
by the end of the time referred to in Articles 29(e) and 29(f) above no
          Purchase Notices have been received by the Transferor or the Transferor has
          received Purchase Notices with respect to a total number of shares that is less
          than the number of Offered Shares, the Transferor may, within 30 days from the
          expiration of the time for submission of the Purchase Notices or, in the event
          that Article 29(f) applies, the Excess Reply Notice, sell all (but not less
than           all) of the Offered Shares to the Transferee and/or to any Buyer that
submitted           a Purchase Notice and, if applicable, an Excess Notice, up to the
number of           shares requested to be purchased by such Buyer (though he shall be
under no           obligation to do so) at a price not less than the price mentioned in
the Sale           Notice (as linked to the representative rate of the U.S. dollar from
the day of           the furnishing of the notice to the date of sale in fact) and upon
all other           conditions not less favorable to the Transferor than those provided
for in the           Sales Notice. 

	 	(h) 	If
the Transferor shall not transfer the Offered Shares as aforesaid, within the
          period of time specified in Articles 29(e), (f) and (g) above, he shall be
          obligated, before selling the Offered Shares to another, to offer them again to
          the Offeree in accordance with the aforementioned procedure, and such procedure
          shall apply to any further offer. 

- 22 -

	 	(i) 	If
there have been received Purchase Notices and, if applicable, Excess Reply
          Notices, for a total number of shares equal to the number of Offered Shares,
          then every Buyer shall buy the number of shares as mentioned in the Purchase
          Notice and, if applicable, the Excess Reply Notices, he has submitted. 

	 	(j) 	If
Purchase Notices and Excess Reply Notices shall have been received for a           total
number of shares greater than the number of Offered Shares, the Buyers may
          acquire shares in a manner proportionate to the share capital of the Company
          held by them at that time, as determined in accordance with Article 29(e)
          above. However, no Buyer shall be required to buy a greater number of shares
          than the number provided for in the Purchase Notice and, if applicable, the
          Excess Reply Notice, submitted by him and upon the allocation to him of the
full           number of Offered Shares so requested by him in the Purchase Notice, such
Buyer           shall be disregarded for the purpose of any further allocation of the
remaining           Excess Offered Shares. 

	 	(k) 	In
every one of the events referred to in Articles 29(e), 29(f), 29(g),
          29(h), 29(j) and 29(i) the Transferor shall send within five (5) days after the
          last date for the submission of each of the Purchase Notices and the Excess
          Reply Notices to each of the Buyers, a notice accompanied by the copies of all
          Purchase Notices received by the Transferor of either non-acceptance of the
          offer pursuant to the Sale Notice or the acceptance thereof (hereinafter the
          “Acquisition Notice”). 

	 	(l) 	After
receipt of the Acquisition Notice notifying acceptance, each Buyer shall
          purchase from the Transferor, and the Transferor shall sell and transfer to
such           Buyer the number of shares referred to in such notice according to the
terms of           the Sale Notice (other than in circumstances set forth in Article 29(g)
          above, in which case the provisions of said Article 29(g) will apply).
Upon           the transfer to Buyer such shares must be free and clear of any liens or
          encumbrances unless otherwise specified in the Sale Notice. The Transferor and
          such Buyer shall each have all remedies for breach of contract available under
          applicable laws in connection with the transactions set forth in this
          Article 29. 

	 	(m) 	Any
Transfer of shares by any Offeree pursuant to the exercise of its co-sale
          rights under Article 29A shall not give the other Offerees additional rights of
          first refusal and shall be deemed to have been part of the Offered Shares and
          included in the Sale Notice to the extent that the number of the shares being
          Transferred has not changed as a result of the exercise of co-sale rights. To
          the extent such number has changed, the provisions hereof shall apply to the
          transaction again, ab initio, and the Transferor shall give a new Sale Notice
          hereunder. 

- 23 -

	29A  	CO
SALE

	 	(a) 	Should
any holder of Preferred Shares (other than Intel) (“Selling
                    Shareholder”) wish to make a Transfer, other than to a
Permitted                     Transferee, then each of the holders of Preferred Shares
other than Intel (the                     “Entitled Shareholders”) shall
have the right to participate in                     the Selling Shareholder’s
Transfer of such Offered Shares, in accordance                     with this Article 29A,
pursuant to the specified terms and conditions                     stated in the Sale
Notice, provided that an Entitled Shareholder who is also an                     Offeree
for purposes of Article 29 above shall be entitled to elect whether to
                    exercise its rights under either Article 29 or Article 29A and shall
not be                     entitled to contingently exercise its rights under both such
articles. Each of                     the Entitled Shareholders shall be entitled, upon
written notice to the Selling                     Shareholder within twenty-one (21)
Business Days after receipt of the Sales                     Notice (“Participating
Preferred Shareholders”), to sell to the                     Transferee up to
that number of the Shares in the Company owned by such                     Participating
Preferred Shareholder (the “Equity Shares”)
                    determined by multiplying the total number of Offered Shares times a
fraction                     the numerator of which is the number of Ordinary Shares
owned by such                     Participating Preferred Shareholders (on an
as-converted basis) and the                     denominator of which is the total number
of Ordinary Shares owned by all                     Participating Preferred Shareholders
(on an as-converted basis) and the Selling                     Shareholder. Such written
notice shall indicate, subject to the terms of this                     Article 29A, the
number of Shares that the Participating Preferred Shareholder                     intends
to transfer to the Transferee. At the closing of the sale of the Offered
                    Shares to the Transferee, the Selling Shareholder shall transfer his
shares to                     the Transferee only if the Transferee concurrently
therewith purchases, on the                     same terms and conditions specified in
the Article 29A Notice, all of the Shares                     as to which participation
notices have been delivered. 

	 	(b) 	Notwithstanding
the provisions of Article 29A(a), no Transfer in one transaction                     or
in a series of related transactions, of shares representing more than 50% of
                    the issued and outstanding shares of the Company (on an as converted
basis) may                     be made, other than to a Permitted Transferee, unless the
proposed Transferee of                     such shares offers to purchase the remaining
issued and outstanding shares of                     the Company upon the same terms and
conditions. In such event, the consideration                     payable by the
Transferee shall be distributed among all selling shareholders
                    participating in such Transfer in accordance with the terms of
Article 8. 

	29B  	BRING
ALONG

	 	(a) 	At
any time prior to the Company’s QIPO, in the event that: 

	 	
Shareholders
holding 60% (sixty percent) or more (the “Threshold Percent”) of the
Company’s issued and outstanding shares, on an as converted basis (the “Proposing
Shareholders”) accept an offer to affect a Merger or Acquisition (the “Offer”);
and 

	 	
Such
Merger or Acquisition is conditioned upon the consent and/or sale of all of the remaining
issued shares of the Company; then all remaining shareholders (the “Non Proposing
Shareholders”) will be required, if so demanded by the Proposing
Shareholders, to vote in favor of, execute the relevant documents, and otherwise take all
necessary and reasonable actions relating to such Offer, including to sell their shares
upon the same terms and conditions as in the Offer made to the Proposing Shareholders and
the proceeds shall be allocated in accordance with the provisions of Article 8, provided
however, that absent the written consent of the holders of the majority of the
outstanding Series BB Preferred Shares (which must include also the Special BB Consent),
the holders of the Preferred Shares shall not be forced to take any actions or sell their
shares as aforesaid, if the Merger or the Acquisition does not reflect a Company price
per share of more than two times the Original Issue Price of the Series BB-1 Preferred
Shares. In the event that the Threshold Percent is met, any sale, assignment, transfer,
pledge, hypothecation, mortgage, disposal or encumbrance of the Shares by the Non
Proposing Shareholders other than in connection with the Offer, shall be absolutely
prohibited. 

- 24 -

	 	(b) 	Notwithstanding
the foregoing, the obligation of Intel to sell its shares (the           “Transaction”)
pursuant to this Article 29B shall be subject to the           satisfaction of each of
the following conditions: 

	 	(i) 	Form
of Consideration. Intel shall not be required to accept any
               consideration for its shares other than cash or freely tradeable equity
               securities (subject to a lock-up period of no more than 90 days following
the                issuance of such securities to Intel) which have been admitted to or
listed upon                (i) the Official List of the UK Listing Authority or (ii) the
New York or                American Stock Exchange or the NASDAQ National Market in the
United States of                America or (iii) the Neuer Markt or (iv) Euronext Paris
S.A. or (v) such other                stock exchange as Intel may agree.  

	 	(ii) 	Equal
Consideration. Subject to section (iii) below, upon the                consummation
of the Transaction, all of the holders of Preferred Shares will                receive
the same form and amount of consideration per Preferred Share,
               respectively, taking into account any liquidation preference to which the
               holders of Preferred Shares are entitled, and if any holders of Preferred
Shares                are given an option as to the form and amount of consideration to
be received,                all holders will be given the same option.  

	 	(iii) 	Costs/Expenses.
Intel shall not be required to incur any costs or                expenses (without
limitation whether by way of out of pocket expenses or by way                of set off)
in connection with the Transaction except its pro rata share of any                costs
incurred for the benefit of all of the Company’s shareholders and for
               which Intel has agreed in writing to be responsible in advance of such
costs                being incurred. For the avoidance of doubt Intel shall be solely
responsible for                any costs that it decides to incur including the costs of
its own counsel.  

	 	(iv) 	Representations,
Warranties and Indemnities. The only representations,                warranties or
indemnities that Intel shall be required to make in connection                with the
Transaction are representations, warranties and indemnities concerning                (i)
legal ownership of the Company’s securities to be sold by Intel (the
               “Intel  Securities”), and (ii) the corporate authority of
Intel                to convey title to the Intel Securities, and the ability to do so
free and clear                of liens, encumbrances or adverse claims (the “Intel
Required                Obligations”). The Intel Required Obligations shall be
in the same form                as those to be given by each of the other shareholders of
the Company and shall                be given by Intel on a several (but not joint) basis
only.  

	 	(v) 	Liability.
Intel shall not accept, assume or be deemed to have assumed                any joint, or
joint and several, liability with any other shareholder(s), the                Company or
any other party, with respect to any representation, warranty,                indemnity,
covenant or combination thereof made by such other shareholder(s),                the
Company or other party in connection with the Transaction. Intel’s
               liability shall in any event be limited to the amount of consideration
actually                received by Intel in cleared funds.  

- 25 -

	 	(vi) 	Escrow
and Liability upon Escrow. In the event that consideration for any                of
the shares in the Company is to be placed in escrow (the “Escrow
               Amount”), such Escrow Amount will not exceed 15% of the total
               consideration payable to all shareholders of the Company and that the
Escrow                Amount, to the extent that no claim has been made against it and
for such amount                as might remain following such claim, will be released to
the shareholders at                the latest three (3) months following the end of the
acquiring company’s                first accounting period after the consummation of
the transfer of Intel’s                shares or eighteen (18) months after the
consummation of such transfer (the                later of the two). Intel’s
liability shall be limited to its pro rata share                of the Escrow Amount
(Intel’s pro rata share to be calculated on the basis                of the
consideration due to Intel as a proportion of the aggregate consideration
               due to all shareholders in the Company). For the avoidance of doubt, the
Escrow                Amount may be used to satisfy claims arising out of breaches by the
Company of                representations and warranties given by the Company in
connection with a                Transaction, all subject to the foregoing terms and
conditions.  

	 	(vii) 	US
Securities. If the consideration proposed for Intel’s shares is
               in the form of securities of an issuer incorporated in the United States,
Intel                shall not be obligated to participate in the Transaction unless it
is provided                an opinion of counsel to the effect that the sale in
connection with such                Transaction is not in violation of the registration
or qualification                requirements of federal or applicable state securities
laws in the United                States, or, if Intel is not provided with such an
opinion, the Company shall                indemnify Intel for any violation.  

	 	(vii) 	Other
Agreements. Intel shall not be required to amend, extend or                terminate
any contractual or other relationship with the Company, the acquirer                or
their respective affiliates.  

	 	(viii) 	Covenant
Not to Compete. Intel shall not be required to agree to any                covenants
including without limitation any covenant not to compete or any                covenant
not to solicit any of the customers, employees or suppliers of any                party
to the Transaction.  

	 	
Furthermore,
notwithstanding the foregoing, the obligation of Orbotech to sell its shares (the “OrbotechTransaction”)
pursuant to this Article 29B shall be subject to the condition that the only
representations, warranties or indemnities that Orbotech shall be required to make in
connection with the Orbotech Transaction are representations, warranties and indemnities
concerning (i) legal ownership of the Company’s securities to be sold by Orbotech
(the “Orbotech Securities”), and (ii) the corporate authority of
Orbotech to convey title to the Orbotech Securities, and the ability to do so free and
clear of liens, encumbrances or adverse claims (the “Orbotech Required Obligations”).
The Orbotech Required Obligations shall be in the same form as those to be given by each
of the other shareholders of the Company and shall be given by Orbotech on a several (but
not joint) basis only. 

- 26 -

	29C.  	STAND
STILL 

	 	
Notwithstanding
anything to the contrary in these Articles, any issuance of securities by the Company, and
any sale, transfer, pledge, encumbrance or other disposal of any of the securities of the
Company (by the Company or any shareholder), or any other action (including repurchase of
any shares of the Company by the Company or by any subsidiary thereof), other than any
action in which the provisions of Article 29B (Bring Along) shall apply, which results in
a Strategic Investor (as defined below) whether or not a shareholder of the Company,
holding (together with affiliates, Permitted Transferees, or other parties acting in
concert with it) more than 20% of the voting rights in the Company, is prohibited unless
approved in writing in advance by the Majority Preferred Shareholders (excluding, for the
purposes of such majority, any Strategic Investors and their affiliates and Permitted
Transferees or other parties acting in concert with them) and on terms and conditions
approved by them. Any of the transactions set forth in the forgoing sentence not so
approved shall be null and void and shall not be registered in the Company’s
Shareholders Register. For purpose hereof a “Strategic Investor” shall mean a
corporation or other business entity whose business is related to the Company’s
business and who is likely to have a business or technologic interest in the
Company’s business, as distinguished from an interest for the sole purpose of a
financial investment. 

CALLS 

     	30.	
          A shareholder shall not be entitled to receive dividends nor to use any right a
          shareholder has, or receive any benefit or entitlement stated in these Articles
          (including without limitation, the rights set forth in Articles 7, 8, 11, 12,
          14, 29, 29A, 65 and 86 hereof), unless he has paid all the calls that shall be
          made from time to time prior to or on the date appointed for payment thereof,
          with respect of money unpaid on all of his shares, whether he is the sole holder
          or holds the shares together with another person, in addition to interest and
          expenses if there shall be any. 

          

     	31.	
          The Board may, subject to the provisions of these Articles, make calls upon the
          shareholders from time to time in respect of any moneys unpaid on their shares,
          as they shall determine proper, upon the condition that there shall be given
          prior notice of fourteen (14) days on every call and each shareholder shall be
          obligated to pay the total amount requested from him, or the installment on
          account of the call (if there shall so be) at the times and places to be
          determined by the Board. 

          

     	32.	
          The calls for payment shall be deemed to have been requested from the date the
          Board shall have decided upon the calls for payment. 

          

     	33.	
          The joint holders of a share shall be jointly and severally liable to pay the
          calls for payment in full and the installment on account, in connection with
          such calls. 

          

     	34.	
          If a sum called in respect of a share is not paid the holders of the share or
          the person to whom it has been issued shall be liable to pay interest and
          linkage differentials upon the amount of the call or the payments on account, as
          determined by the Board of Directors commencing from the day appointed for the
          payment thereof to the time of actual payment, but the Board shall be at liberty
          to waiver payment of that interest, wholly or in part. 

          

     	35.	
          Any amount that according to the condition of issuance of a share must be paid
          at the time of issuance or at a fixed date, whether on account of the sum of the
          share or premium, shall be deemed for the purposes of these Articles to be a
          call of payment that was made duly and the date of payment shall be the date
          appointed for payment. In the event of non-payment of this amount all of the
          Articles herein dealing with payment of interest, expenses, forfeiture, pledge
          and the like and all the other Articles connected therewith, shall apply, as if
          this sum had been duly requested and notice had been given, as aforesaid. 

          

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     	36.	
          The Board may make arrangements at the time of issue of shares for a difference
          between the holders with respect to the amount of calls to be paid and the times
          of payment, and the rate of interest. 

          

     	37.	
          The Board may, if it thinks fit, receive from any shareholder willing to pay in
          advance all of the monies or a part thereof that shall be due on account of his
          shares, in addition to any amounts or a part thereof that shall be due on
          account of his shares, in addition to any amounts that the payment in fact has
          been requested and they shall be permitted to pay him interest at the rate the
          Board and shareholders shall agree upon, for the amounts paid in advance as
          aforesaid, or upon the part thereof which is in excess of the amounts whose
          payment was at the time requested on account of his shares in connection with
          which the payments have been made in advance, in addition to paying dividends
          that will be paid for that part of the share which has been paid in advance. The
          Board of Directors may at any time repay any amount so advanced without premium
          or penalty by giving such shareholder seven days’ prior notice in writing.
          Nothing in this Article 37 shall derogate from the right of the Board of
          Directors to make any call before or after receipt by the Company of any such
          advance. 

          

FORFEITURE OF SHARES 

     	38.	
          If a shareholder fails to pay any call or installment of a call on the day
          appointed for payment thereof, the Board may, at any time thereafter during such
          time as any part of such call or installment remains unpaid, serve a notice on
          him requiring payment of so much of the call or installment as is unpaid,
          together with any interest which may have accrued and any expenses that were
          incurred as a result of such non-payment. 

          

     	39.	
          The notice shall name a further day, not earlier than the expiration of seven
          days from the date of the notice, on or before which the amount of the call or
          installment or a part thereof is to be made together with interest and any
          expenses incurred as a result of such non-payment. The notice shall also state
          the place the payment is to be made and that in the event of non-payment, at or
          before the time appointed, the shares in respect of which the call was made will
          be liable to be forfeited. 

          

     	40.	
          If the requirements of any such notice as aforesaid are not complied with, any
          share in respect of which the notice has been given may at any time thereafter,
          before the payment required by the notice has been made, be forfeited by a
          resolution of the Board to that effect. In such event, the provisions of Section
          181 of the Companies Law shall apply, and the shares so forfeited shall be
          “dormant shares” as provided for therein. The forfeiture shall include
          those dividends that were declared but not yet distributed, with respect to the
          forfeited shares. 

          

     	41.	
          A share so forfeited shall be deemed to be the property of the Company and can
          be sold or otherwise disposed of, on such terms and in such manner as the Board
          thinks fit, subject to applicable law. Such shares shall not be deemed, for the
          purposes of these Articles, to comprise part of the issued and outstanding share
          capital of the Company, and shall be disregarded for the purposes of
          calculations based thereon. At any time before a sale or disposition the
          forfeiture may be canceled on such terms as the Board thinks fit. 

          

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     	42.	
          A person whose shares have been forfeited shall cease to be a shareholder in
          respect of the forfeited shares, but shall notwithstanding remain liable to pay
          to the Company all monies which, at the date of forfeiture, were presently
          payable by him to the Company in respect of the shares, but his liability shall
          cease if and when the Company receives payment in full of all moneys that, at
          the date of forfeiture, were presently payable by him to the Company in respect
          of the shares (including interest and expenses). 

          

     	43.	
          Without derogating from Article 30 above, the forfeiture of a share shall cause,
          at the time of forfeiture, the cancellation of all rights in the Company or any
          claim or demand against it with respect to that share and the other rights and
          obligations between the share owner and the Company accompanying the share,
          except for those rights and obligations not included in such a cancellation
          according to these Articles or that the Companies Law imposes upon former
          shareholders. 

          

     	44.	
          The provisions of these Articles as to forfeiture shall apply in the case of
          non-payment of any sum which, by the terms of issue of a share, becomes payable
          at a fixed time, whether on account of the nominal value amount of the share, or
          by way of premium, as if the same had been payable by virtue of a call duly made
          and notified. 

          

MODIFICATION OF CAPITAL 

	45.  	Subject
to the provisions of Article 12 above and to any applicable law, the           Company
may, from time to time, by resolution duly adopted according to these           Articles: 

	 	(a) 	consolidate
and divide all or any of its issued or unissued share capital into           shares of
larger nominal value than its existing shares; 

	 	(b) 	cancel
any shares which have not been taken or agreed to be taken by any person; 

	 	(c) 	by
subdivision of its existing shares, or any of them, divide the whole, or any
          part, of its share capital into shares of smaller amounts than is fixed by the
          Memorandum of Association in a manner that with respect to the shares created
as           a result of the division it will be possible within the resolution of
division           to grant to one or more shares a preferable right or advantage with
respect to           dividend, capital, voting or otherwise over the remaining share or
other similar           shares; 

	 	(d) 	reduce
its share capital and any fund reserved for capital redemption in the           manner
that it shall deem to be correct. 

INCREASE OF SHARE CAPITAL 

     	46.	
          Subject to the provisions of Article 12 above and to any applicable law, the
          Company shall be permitted from time to time, by resolution duly adopted
          according to these Articles, to increase its share capital – whether or not
          all its shares have been issued, or whether the shares issued have been paid in
          full – by creation of new shares. This new capital shall be in such an
          amount, divided into shares in such amounts and have such preferable or deferred
          or other special rights (subject always to the special rights conferred upon an
          existing class of share), subject to any condition and restrictions with respect
          to dividends, return of capital, voting or otherwise, all as shall be directed
          by the general meeting in its resolution sanctioning the increase of the share
          capital. 

          

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     	47.	
          Subject to any decision to the contrary in the resolution sanctioning the
          increase in share capital, pursuant to these Articles, the new share capital
          shall be deemed to be part of the original share capital of the Company and
          shall be subject to the same provisions with reference to payment of calls,
          liens, title, forfeiture, transfer and otherwise as apply to the original share
          capital. 

          

GENERAL MEETINGS 

     	48.	
          A general meeting shall be held once in every calendar year at such time, being
          not more than fifteen months after the holding of the last preceding general
          meeting, and place as may be prescribed by the Board. The above mentioned
          general meetings shall be called “Annual General Meetings”. All other
          general meetings shall be called “Special General Meetings”. 

          

     	49.	
          Subject to the provisions of these Articles the function of the Annual General
          Meeting shall be to receive and to deliberate with respect to the profit and
          loss statements, the balance sheets, the ordinary reports and accounts of the
          Board and auditors; to declare dividends, to appoint auditors and to fix their
          salaries. Every other matter shall be deemed to be special and shall be
          discussed at a Special General Meeting. 

          

     	50.	
          The directors or anyone of them may, whenever they think fit, and upon a
          requisition in writing as provided for in the Companies Law, convene a Special
          General Meeting. Every such requisition shall include the objects for which a
          meeting should be convened, shall be signed by the requisitioners and shall be
          sent to the registered Office of the Company. If the Board of Directors does not
          convene a meeting within 21 days from the date of the submission of the
          requisition as aforesaid, the requisitioners may convene by themselves a
          meeting. However, the meeting which was so convened shall not be held after
          three months have passed since the date of the submission of the requisition. 

          

NOTICE OF GENERAL MEETINGS 

     	51.	
          A prior notice of 14 days at least shall be sufficient for any general meeting,
          including any meeting at which it is being proposed to amend the Memorandum of
          Association and/or Articles of Association and, accordingly, prior notice of at
          least 14 days shall be given with respect to the place, date and hour of the
          meeting, and in the event that a special matter shall be discussed, a general
          description of the nature of that matter. The notice shall be given, as herein
          below provided for, to the shareholders entitled pursuant to these Articles to
          vote at the meeting. The notice shall be sufficient for any meeting of
          shareholders including a meeting at which it is proposed to amend the Memorandum
          of Association and/or Articles of Association. If, by chance, a notice as
          aforesaid was not given or not received by a shareholder, this shall not amount
          to a disqualification of the resolution passed or disqualification of the
          proceedings held at that meeting. With the consent of all the shareholders who
          are entitled, at that time, to vote, it shall be permitted to convene all
          meetings and to resolve all types of resolutions, upon a shorter advance notice
          or without any notice and in such manner, generally, as such be approved by the
          shareholders. 

          

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QUORUM 

     	52.	
          No deliberation shall be commenced with respect to any matter at the general or
          special meeting unless there shall be present a quorum at the time when the
          general meeting proceeds to deliberate. In any meeting a quorum shall be formed
          when there are present personally or by proxy not less than two shareholders who
          hold or represent together the majority of the voting rights of the issued share
          capital of the Company, providing that one of such two shareholders present
          shall be a holder of Preferred Share(s) of the Company. 

          

     	53.	
          If within half an hour from the time appointed for the meeting a quorum is not
          present, the meeting, if convened by the Board upon the demand of shareholders
          or upon the demand of less than 50% of the directors then in office or directly
          by such shareholders or directors, shall be cancelled. Otherwise, if within half
          an hour from the time appointed for the meeting a quorum is not present, the
          meeting shall stand adjourned to the same day in the next week at the same place
          and time, or any other day and/or any other hour and/or any other place as the
          Board shall notify the shareholders, and, if at the second meeting a quorum is
          not present within half an hour from the time appointed for the meeting any two
          shareholders present personally or by proxy shall be a quorum, and shall be
          entitled to deliberate and to resolve in respect of the matters for which the
          meeting was convened. Shareholders may participate by means of conference
          telephone or similar communications equipment by means of which all persons
          participating in the meeting can hear each other, and such participation in a
          meeting shall constitute attendance in person at the meeting. The secretary of
          the meeting shall confirm attendance by telephone to the Chairman. 

          

CHAIRMAN 

     	54.	
          The Chairman of the Board of Directors shall preside as chairman at all general
          meetings. If there is no Chairman or he is not present within 15 minutes from
          the time appointed for the meeting or if he shall refuse to preside at the
          meeting, the shareholders present shall elect one of the directors to act as
          Chairman, and if only one director is present he shall act as Chairman. If no
          directors are present or if they all refuse to preside at the meeting the
          shareholders present shall elect one of the shareholders present to preside at
          the meeting. The Chairman shall have no special rights or privileges and no
          second or casting vote. 

          

POWER TO ADJOURN 

     	55.	
          The Chairman may, with the consent of any meeting at which a quorum is present,
          and shall if so directed by the meeting, adjourn the meeting from time to time
          and from place to place, as the meeting shall decide. At an adjourned meeting no
          matters shall be discussed except for those permissible to be discussed at that
          meeting which decided upon the adjournment. 

          

ADOPTION OF RESOLUTIONS 

     	56.	
          At every meeting a resolution put to the vote of the meeting shall be decided
          upon by a show of hands, unless before or upon the declaration of the result of
          the show of hands a secret ballot in writing be demanded by the Chairman (if he
          is entitled to vote) or by any shareholder present, in person or by proxy, and
          entitled to vote at the meeting. Except if a secret vote is demanded as
          aforesaid, the declaration of the Chairman that the resolution has been carried
          or carried unanimously or by a particular majority, or lost, or not carried by a
          particular majority, shall be final, and an entry to that effect in the minute
          book of the Company, shall be conclusive evidence of the fact without the
          necessity of proving the number or proportion of the votes recorded in favor or
          against such a resolution. Subject to any provision in this regard in the
          Companies Law, or in these Articles, all resolutions of the shareholders
          including without limitation with respect to a merger, a change of the
          Company’s name, modification or alterations of the Company’s share
          capital and the amendment of the Company’s Memorandum of Association in
          accordance with such resolution and the amendment or replacement of the
          Company’s Articles of Association shall be deemed adopted at a General
          Meeting at which a quorum is present if approved by a simple majority of the
          voting rights of the Company represented personally or by proxy and voting
          thereon. 

          

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     	57.	
          If a secret ballot is duly demanded, it shall be taken in such manner as the
          Chairman directs, whether immediately or after an adjournment or in a postponed
          manner or otherwise, and the results of the ballot shall be deemed to be a
          resolution of the meeting wherein the secret ballot was demanded. Those
          requesting a secret ballot can withdraw their request at any time before the
          secret ballot is held. A secret ballot demanded on the election of a Chairman,
          or on a question of adjournment shall be taken forthwith. A secret ballot
          demanded on any other question shall be taken at such time as the Chairman of
          the meeting directs. A demand for a secret ballot shall not prevent the
          continuation of the meeting with respect to the transaction of any other
          business, except for the manner with respect to which the secret ballot was
          demanded. All demands or notices hereunder may be submitted by facsimile. 

          

VOTES OF SHAREHOLDERS 

	58.  	Subject
to and without derogating from the right or preference rights or           restrictions
existing at that time with respect to a certain class of shares           forming of the
capital of the Company, each shareholder present at a meeting,           personally or by
proxy, shall be entitled, whether at a vote by show of hands or           by secret
ballot, to one vote for each Ordinary Share held by him calculated,           with
respect to the Preferred Shares, on an as-converted basis, provided that no
          shareholder shall be permitted to vote any shares at a general meeting or
          appoint a proxy to vote therein except if he has paid all calls for payment
          prior to or on the day appointed for payment thereof and all monies due to the
          Company from him prior to or on the day appointed for payment thereof with
          respect to such shares. 

	59.  	In
the case of joint holders the vote of the senior who tenders a vote, whether           in
person or by proxy, shall be accepted to the exclusion of the votes of the
          other joint holders; and for the purpose of this article seniority shall be
          determined by the order in which the names stand in the register of
          shareholders. Joint holders of a share of which one of them is present at a
          meeting shall not vote by proxy. The appointment of a proxy to vote on behalf
of           a share held by joint holders shall be executed by the signature of the
senior           of the joint holders. 

	60.  	PROXIES 

	 	(a) 	In
every vote a shareholder shall be entitled to vote either personally or by
          proxy. A proxy present at a meeting shall also be entitled to request a secret
          ballot. A proxy need not be a shareholder of the Company. 

	 	(b) 	A
shareholder of the Company that is a corporation or partnership shall be
          entitled by decision of its Board of Directors or by a decision of a person or
          other duly authorized body, to appoint a person who it shall deem fit to be its
          representative at every meeting of the Company. The representative, appointed
as           aforesaid, shall be entitled to perform on behalf of the corporation he
          represents all the powers that the corporation itself may use just as if it was
          a person. 

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	61. 	 (a) 	
A vote pursuant to an instruction appointing a proxy shall be valid
          notwithstanding the death of the appointor or the appointor becoming of unsound
          mind or the cancellation of the proxy or its expiration in accordance with any
          law, or the transfer of the shares with respect to which the proxy was given,
          unless a notice in writing was given of the death, becoming of unsound mind,
          cancellation or transfer and was received at the Office before the meeting took
          place. 

	 	(b) 	A
shareholder is entitled to vote by a separate proxy with respect to each share
          held by him provided that each proxy as aforesaid shall have a separate letter
          of appointment containing the serial number of the shares with respect to which
          the proxy is entitled to vote. If a specific share is included by the holder in
          more than one letter of appointment, that share shall not entitle any of the
          holders of such instrument to a vote. 

INSTRUMENT OF APPOINTMENT 

     	62.	
          A letter of appointment of a proxy or power of attorney or other certificate (if
          there shall be such) pursuant to which the appointee is acting, shall be in
          writing and such instrument or a copy thereof shall be deposited in the Office,
          or in another place in Israel or abroad – as the Board shall direct from
          time to time generally or with respect to a particular case, no later than upon
          the commencement of the meeting or adjourned meeting wherein the person referred
          to in the instrument is appointed to vote, otherwise that person shall not be
          entitled to vote that share. An instrument appointing a proxy and which is not
          limited in time or by the occurrence of an event (such as an IPO) shall not be
          valid 12 months after the date of its execution. If the appointment shall be for
          a limited period or until the occurrence of an event (such as an IPO), the
          instrument shall be valid for the period or until the occurrence of the event
          contained therein. 

          

     	63.	
          An instrument appointing a proxy (whether for a specific meeting or otherwise)
          may be in the following form or in any other similar form which the
          circumstances shall permit: 

          

“I,______________, of
______________, a shareholder holding shares in ____________ and entitled to _______
votes hereby appoint ________________, of ____________, or in his place ______________,
of _______________, to vote in my name and in my place at the general meeting (annual,
special, adjourned – as the case may be) of the Company to be held on the ____ day
of __________, 2___ and at any adjournment thereof.  

In witness whereof, I have hereby
affixed my signature the ___ day of __________, 2___. 

	——————————————

Appointor's Signature		

	64.  	RESERVED 

	65.  	DIRECTORS 

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	 	(a) 	The
Board of Directors shall consist of up to nine (9) members who shall be
          appointed as follows: 

	 	(1) 	each
of Pitango, Star, Genesis and Orbotech shall be entitled to appoint one (1)
               director to the Board of Directors of the Company for so long as it holds
               Preferred Shares constituting more than 5% of the issued and outstanding
share                capital of the Company, on an as converted basis, and thereafter the
               directorship which was vacated shall be held by a director appointed by
the                holders of the majority of the Series AA Preferred Shares not
otherwise entitled                to appoint a director pursuant to this Article
65(a)(1);  

	 	(2) 	each
of Poalim Ventures and Wellington shall be entitled to appoint one (1)
               director for so long as it holds Preferred Shares constituting more than
3% of                the issued and outstanding share capital of the Company, on an as
converted                basis and thereafter the directorship which was vacated shall be
held by a                director appointed by the holders of the majority of the Series
BB Preferred                Shares;  

	 	(3) 	the
majority of the directors appointed pursuant to Articles 65(a)(1) and(2)
               above shall be entitled to appoint up to two (2) directors, who shall be
               independent industry experts; and  

	 	(4) 	the
Chief Executive Officer (“CEO”) of the Company shall be a
               director if he or she is appointed as a director by a majority of the
directors                appointed pursuant to Articles 65(a)(1) and(2) above;  

	 	(b) 	Amadeus
shall be entitled to appoint one (1) observer to the Board for so long           as it
holds Preferred Shares constituting more than 5% of the issued and           outstanding
share capital of the Company, on as converted basis. 

	 	(c) 	Observers
to the Board of Directors shall be entitled to attend all Board of           Directors
meetings and in this capacity, to receive all notices of meetings and           any
documentation the Company provides to the Company’s directors before,
          during or after such meetings, subject to restrictions relating to
          attorney-client privilege, and shall be subject (other than an observer
          appointed by Intel) to the same fiduciary duties that apply to members of the
          Board of Directors. 

	 	(d) 	The
provisions of this Article 65 shall be in force until the QIPO. 

	66. 	 (a) 	
The directors and observers shall be appointed as set forth in           Article 65
and may be removed and vacancies filled by those entitled to           appoint, as
specified in Article 65. Notice of appointment or removal shall           become
effective on the date fixed in the notice of appointment or removal, or           upon
delivery thereof to the Company, whichever is later. For avoidance of           doubt, in
the event that a seat of the Board of Directors is vacated, and no one           is
entitled to replace such vacated seat, then such vacated seat shall remain
          vacant and the number of directors shall be reduced accordingly. 

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	 	(b) 	If
the office of any member of the Board of Directors is vacated, the other
          members of the Board of Directors may act in every way and manner so long as
          their number does not fall below two, at least one of which was appointed by
the           holders of the Preferred Shares. If their number falls below two, or if
there           are only two directors but none of them were appointed by the holder of
the           Preferred Shares, they may act only in an emergency, for convening General
          Meetings and for providing written notice to those shareholders or groups of
          shareholders who are entitled to fill the vacancies, of such vacancies. In the
          event that within 10 days following mailing of such written notices the
          vacancies are not filled, the directors in office, whatever their number or by
          whom appointed, may act in every way and manner. 

     	67.	
          Subject to the provisions of these Articles or to the provisions of an existing
          contract, the tenure of office or the director shall automatically be
          terminated: 

          

	 	(1) 	if
he becomes bankrupt; 

	 	(2) 	if
he is declared lunatic or becomes of unsound mind; 

	 	(3) 	if
he has resigned by an instrument in writing to the Company; 

	 	(4) 	if
he is removed from office pursuant to Articles 65 and 66 above; 

	 	(5) 	with
his death; 

	 	(6) 	if
he is the CEO, upon termination of his position as CEO (or earlier, if           removed
pursuant to Articles 65 and 66 above, as aforesaid); or 

	 	(7) 	if
a company, with its liquidation. 

	68.  	ALTERNATIVE
DIRECTOR 

	 	(a) 	Any
person who is qualified to be appointed as a Director may serve as a substitute
director even if he is a member of the Board of Directors or a substitute
Director, (hereinafter “substitute”).  

	 	(b) 	A
substitute shall have one vote. 

	 	(c) 	A
substitute shall have, subject to the provisions of the instrument by which he
          was appointed, all the powers and authorities that the director for which he is
          serving as director, has. 

	 	(d) 	The
provision of this Article with respect to the appointment of a director           shall
apply with respect to an appointment of a substitute. 

	 	(e) 	The
office of a substitute director shall be automatically vacated if his
          appointment is terminated by the director who appointed him in accordance with
          these regulations, or upon the occurrence of one of the events described in
          Articles (1), (2), (3), (5), (6) or (7) of Article 67 or, if the office of
          the member of the Board of Directors with respect to whom he serves as a
          substitute shall be vacated for any reason whatsoever. 

	 	(f) 	The
substitute director has the right to receive notice of convening of a Board           of
Directors meeting and may participate or vote at such meeting only if the
          director appointing said substitute is absent from said meeting. 

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	69.  	REMUNERATION
OF DIRECTOR 

	 	
Members
of the Board of Directors, not being employees of the Company or professionals providing
special professional services for consideration to its members - shall not receive a
salary from funds of the Company unless the general meeting has so decided and in the
amount that the general meeting shall decide upon. The directors, and their substitutes,
shall be entitled to receive expenses, in an acceptable rate, for travel expenses, board
and lodging that have been expended for or during the performance of their duties as
directors, and including travel expenses to the Board meetings and return. If pursuant to
a decision of the Board, one of the directors shall perform services or tasks aside from
his regular duties as a director, whether as a result of his particular profession or by a
trip or stay abroad or otherwise, the Board may decide to pay him a preferred wage in
addition to his regular salary, and such a wage shall be paid by way of salary,
commission, participation in profits or otherwise and this wage shall be in addition to
his regular salary, if there shall be any, or will be in place thereof, as shall be
decided. 

	70.  	POWER
AND DUTIES 

	 	
The
management of the business of the Company shall be vested in the Board of Directors. They
shall be entitled to exercise all the powers and authorities that the Company has and to
perform in its name all the acts that it is entitled to do according to its memorandum of
association and/or Articles and/or the Companies Law except for those which are pursuant
to the Companies Law or the Articles vested in the general meeting of the Company, subject
to any provisions in the Companies Law or in these Articles or the regulations that the
Company shall adopt in its general meeting (insofar as they do not contradict the
Companies Law or these Articles). However any article adopted by the Company in its
general meeting shall not affect the legality of any prior act of the Board that would be
legal and valid, if not for such an article. 

	71.  	A
director shall not be required to hold qualifying shares. 

CONFLICT OF INTEREST 

     	72.	
          A director shall not be prohibited from fulfilling his rights and duties under
          these Articles or from entering into contracts with the Company whether as a
          seller, buyer or otherwise, and no such contract or arrangement which shall be
          made on behalf of the Company or in its name wherein the director is or will be
          an interested party, either directly or indirectly, shall be void provided,
          however that: 

          

	 	(a)	any
transaction between a director and the Company must be approved both by the
          Board of Directors and the Audit Committee of the Company, or, if no Audit
          Committee has been created, by the General Meeting; 

	 	(b)	the
interested director may not participate or vote at the Board of Directors at
          which approval is sought unless all other directors are interested directors,
          but shall be counted toward the quorum necessary for commencing deliberations
at           such meeting; and 

	 	(c)	the
interested director must, in addition to disclosing the substance of his
          interest in the transaction for which approval is sought, also disclose any
          material facts and documents relating thereto. The provisions of this article
          shall apply also to a substitute or alternate director, if it is appropriate. 

- 36 -

     	73.	
          A director may hold another paid position or function in the Company or in any
          other company that the Company is a shareholder of or that it has some other
          interest in, together with his position as a director (except an auditor) upon
          those conditions with respect to salary and other matters as decided by the
          Board. 

          

     	74.	
          FUNCTIONS OF THE DIRECTORS 

          

	 	
The
Board may meet in order to transact business, to adjourn its meetings or to organize them
otherwise as it shall deem fit and to determine the legal quorum necessary to conduct
business, provided that the quorum for a meeting of the Board of Directors shall consist
of at least a majority of the directors then in office. A director whose presence is
required for purposes of a quorum as aforesaid may by written notice to the Company waive
the requirement for his presence in order to constitute a quorum. If within half an hour
from the time appointed for the meeting a quorum is not present, the meeting shall stand
adjourned to the second business day following the day originally scheduled, and at such
adjourned meeting 4 directors shall constitute a quorum notwithstanding that a director
appointed by any specific shareholder or class of shareholders is not present. 

	75.  	CHAIRMAN 

	 	
The
Board may from time to time elect, by a simple majority, a Chairman, and decide the period
of time he shall hold such an office, and he shall preside at the meetings of the Board of
Directors. However, if such a Chairman is not elected or if he is not present at any
meeting, the Board may, by a simple majority, choose one of its members to serve as
Chairman of that meeting. 

	 	
The
Chairman shall have no rights or privileges other than those granted to directors and
shall not have a second of casting vote. 

MEETINGS 

     	76.	
          A member of the Board of Directors may at any time call a Board of
          Directors’ meeting, and the secretary shall be required on the request of
          such member to convene a Board of Directors’ meeting. 

          

	 	(a) 	Any
notice of a Board of Directors’ meeting can be given, in writing, or by
          fax or email provided that the notice is given seven (7) days before the time
          appointed for the meeting, unless all the members of the Board of Directors
          having received a shorter notice, shall agree to such a shorter notice,
          provided, however, that a four (4) days notice will be sufficient if the
          majority of the directors then in office agree to such shorter notice. 

	 	(b) 	Unless
otherwise provided by these Articles, all acts and determinations of the           Board
of Directors shall be determined by a simple majority of those attending           and
voting. 

	 	(c) 	Members
of the Board of Directors, or any committee designated by the Board of
          Directors, may participate in a meeting of the Board of Directors, or any
          committee, by means of conference telephone or similar communications equipment
          by means of which all persons participating in the meeting can hear each other,
          and such participation in a meeting shall constitute attendance in person at
the           meeting. 

- 37 -

	77.  	DELEGATION
OF POWER 

	 	(a) 	Subject
to applicable law, the Board of Directors may delegate any of their           powers to
committees consisting of such member or members of their body as they           deem fit
and may, from time to time, revoke such delegation. No committee of the           Board
of Directors shall be established except by unanimous consent of all           directors. 

	 	(b) 	In
the exercise of any power delegated to it by the Board of Directors all
          committees shall conform to any regulations that may be imposed upon them by
the           Board of Directors, if there shall be any such regulation. If no such
          regulations are adopted by the Board of Directors or if there are no complete
          and encompassing regulations, the committees shall act pursuant to these
          Articles dealing with organization of meetings, meetings and functions of the
          Board of Directors, mutatis mutandis, and insofar as no provision of the Board
          of Directors shall replace it pursuant to this article. 

	 	(c) 	All
actions performed in a bona fide fashion by the Board of Directors or by a
          committee of the Board of Directors, or by any person acting as a director or
as           a substitute shall be as valid, even if at a later date a flaw shall be
          discovered in the appointment of such a director or such a person acting as
          aforesaid, or that all or some of them were unfit as if each and every one of
          those persons shall have been duly appointed and fit to serve as a director or
          substitute as the case may be. 

	80.  	GENERAL
MANAGER 

	 	(a) 	The
Board may from time to time appoint one or more persons, whether or not he           is a
member of the Board of Directors, as the CEO of the Company, either for a           fixed
period of time or without limiting the time that he or they will stay in
          office, and the Board may from time to time (subject to any provision in any
          contract between him or them and the Company) release him or them from their
          office and appoint another or others in his or their place. 

	 	(b) 	The
Board of Directors may from time to time grant and bestow upon the general
          manager, at that time, those powers and authorities that it exercises pursuant
          to these Articles, as it shall deem fit, and may grant those powers and
          authorities for such period, and to be exercised for such objectives and
          purposes and in such time and conditions, and on such restrictions, as it shall
          decide; and it may grant such authorities whether concurrently with the Board
of           Directors’ authorities in that area, or in excess of them, or in place
          thereof or any one of them, and it can from time to time revoke, repeal, or
          change any one or all of those authorities. 

	 	(c) 	Notwithstanding
the aforesaid in Article 69 the wages of the general manager           shall be
determined from time to time by the Board of Directors (subject to any
          provision in any contract between him and the Company) and it may be paid by
way           of a fixed salary or commission or dividends, or a percentage of profits or
the           Company profit turnover or of any other Company that the Company has an
interest           in, or by participation in such profits, or in one or more of the
aforementioned           methods. 

- 38 -

	81.  	MINUTES 

	 	(a) 	The
Board shall cause minutes to be taken of all general meetings of the           Company,
of the appointments of officials of the Company, of Board of           Directors’ meetings
and of committee meetings that shall include the           following items, if
applicable: 

	 	(1) 	the
names of the members present;  

	 	(2) 	the
matters discussed at the meeting;  

	 	(3) 	the
results of the vote;  

	 	(4) 	resolutions
adopted at the meeting;  

	 	(5) 	directives
given by the meeting to the committees;  

	 	(6) 	if
requested, any reservation of a shareholder or director with regard to a           matter
discussed or resolution passed.  

	 	(b) 	The
minutes of any meeting shall serve as prima facie proof as to the facts in           the
minutes if the minutes are reviewed and approved at the next succeeding           meeting
and are signed by the Chairman of that next succeeding meeting. 

	82.  	RESOLUTION
IN WRITING 

	 	
A
resolution in writing signed by all shareholders of the Company or by all the members of
the Board of Directors, or of a committee, or such a resolution that all the shareholders
of the Company then entitled to vote at General Meetings, the members of the Board of
Directors or a committee have agreed to in writing or by fax shall be valid for every
purpose as a resolution adopted at a General Meeting, Board of Directors’ or
committee meeting, as the case may be, that was duly convened and held. In place of a
shareholder or director, as the case may be, any such aforesaid resolution may be signed
and delivered by his substitute. 

	83.  	SEAL,
STAMP AND SIGNATURES 

	 	(a) 	The
Board shall cause the seal (if the Company shall have a seal) to be kept in
          safekeeping and it shall be forbidden to use the seal unless prior permission
of           the Board of Directors is given. If such permission was given, the seal
shall be           affixed in the presence of whoever has been so appointed by the Board
of           Directors, and he shall sign any document upon which the seal has been
affixed. 

	 	(b) 	The
Company shall have at least one rubber stamp. The Board shall ensure that           such
a stamp is kept in a safe place. 

	 	(c) 	The
Board of Directors may designate and authorize any person or persons (even           if
they are not members of the Board of Directors) to act and to sign in the           name
of the Company, and the acts and signatures of such a person or persons           shall
bind the Company, insofar as such persons have acted and signed within the
          limits of their aforesaid authority. 

- 39 -

	 	(d) 	The
printing of the name of the Company by a typewriter or by hand next to the
          signatures of the authorized signatories of the Company, pursuant to
sub-article           (c) above, shall be valid as if the rubber stamp of the Company was
affixed. 

	84.  	BRANCH
REGISTERS 

	 	
The
Company may, subject to the provisions of the Companies Law or any other applicable law
that may substitute such provisions, keep in every other country where those provisions
shall apply, a register or registers of shareholders living in that other country as
aforesaid, and to exercise any other powers referred to in the laws with respect to such
branch registers. 

	85.  	THE
SECRETARY, OFFICERS AND ATTORNEYS 

	 	(a) 	The
Board of Directors may appoint a secretary of the Company upon the           conditions
that it deems fit. The Board may as well, from time to time, appoint           an
associate secretary who shall be deemed to be the secretary for the period of
          his appointment. 

	 	(b) 	The
Board of Directors may, from time to time appoint to the Company, officers,
          workers, agents and functionaries to permanent, temporary or special positions,
          as it shall, from time to time, see fit and set compensation for them. 

	 	(c) 	The
Board may, at any time and from time to time, authorize any Company, firm,
          person or group of people, whether this authorization is done by the Board
          directly or indirectly, to be the attorneys in fact of the Company for those
          purposes and with those powers and discretion which shall not exceed those
          conferred upon the Board of Directors or that the Board of Directors can
          exercise pursuant to these Articles – and for such a period of time and
          upon such conditions as the Board deems proper, and every such authorization
may           contain such directives as the Board of Directors deems proper for the
          protection and benefit of the persons dealing with such attorneys. 

	86.  	DIVIDEND 

	 	
Subject
to the provisions of the Companies Law and these Articles, including without limitation
the provisions of Articles 7, 8 and 12 and subject to any rights or conditions of
Preferred Shares and other rights and conditions attached at that time to any share in the
capital of the Company granting preferential, special or deferred rights or not granting
any rights with respect to dividends, the profits of the Company shall be distributable to
the shareholders of the Company according to the proportion of the nominal value paid up
or credited as paid up on account of the shares held by them at the date so appointed by
the Company, without regard to the premium paid in excess of the nominal value. A
distribution, setting aside or declaration of dividend requires a decision of the Board of
Directors. 

	 	
The
Board of Directors may issue any share upon the condition that a dividend shall be paid at
a certain date or that a portion of the declared dividend for a certain period shall be
paid, or that the period for which a dividend shall be paid shall commence at a certain
date, or a similar condition, all as decided by the Board of Directors. In every such case
– subject to the provision mentioned in the beginning of this article – the
dividend shall be paid in respect of such a share in accordance with such a condition. 

- 40 -

	87.  	Subject
to the provisions of the Companies Law, at the time of declaration of a
                    dividend the Board of Directors may decide that such a dividend shall
be paid in                     part or in whole, by way of distribution of certain
properties, especially by                     way of distribution of fully paid up shares
or debentures or debenture stock of                     the Company, or by way of
distribution of fully paid up shares or debentures or                     debenture stock
of any other Company or in one or more of the aforesaid ways.                     For
purposes of any such distribution, the outstanding Preferred Shares shall be
                    deemed to have been converted into Ordinary Shares as of the time
appointed by                     the Board of Directors for the purpose of determining
entitlement to participate                     in such distribution. 

	88.  	Any
dividends payable on shares which are not fully paid up, will be first
                    applied to any unpaid amount on such shares even if such payments are
not yet                     due, pursuant to the terms of issuance or as provided in
these Articles, and any                     excess will be distributed to the holder of
such shares as set forth herein. 

	89.  	The
Board of Directors may put a lien on any dividend on which the Company has a
                    charge, and it may use it to pay any debts, obligations or
commitments with                     respect to which the charge exists. 

	90.  	A
transfer of shares shall not transfer the right to a dividend which has been
                    declared after the transfer but before the registration of the
transfer. The                     person registered in the register as a shareholder on
the date appointed by the                     company for that purpose shall be the one
entitled to receive a dividend. 

	91.  	Reserved. 

	92.  	A
notice of the declaration of a dividend, whether an interim dividend or
                    otherwise, shall be given to the shareholders registered in the
register, in the                     manner provided for in these Articles. 

	93.  	If
no other provision is given, the dividend may be paid by check or payment
                    order to be mailed to the registered address of a shareholder or
person entitled                     thereto in the register or, in the case of registered
joint owners, to the                     addresses of one of the joint owners as
registered in the register. Every such                     check shall be made out to the
person it is sent to. The receipt of the person                     who, on the date of
declaration of dividend, is registered as the holder of any                     share or,
in the case of joint holders, of one of the joint holders, shall serve
                    as a release with respect to payments made in connection with that
share. 

	94.  	(a) 	
Subject to Article 12 above, if at any time the share capital shall be
                    divided into different classes of shares, the distribution of fully
paid up                     shares, from funds pursuant to Article 95 below, shall be
made in one of the two                     following manners as to be decided upon by the
Board: 

	 	(i) 	In
such a manner so that all the holders of a share entitled to fully paid up
          shares shall receive one uniform class of shares; or  

- 41 -

	 	(ii) 	such
In manner so that each holder of shares entitled to fully paid up shares as aforesaid shall
receive shares of the class of shares held by him and entitling him to fully paid up
shares, as aforesaid.  

	 	(b) 	In
order to give effect to any resolution in connection with the distribution of
                    dividends, or distribution of property, fully paid-up shares or
debentures, the                     Board of Directors may resolve any difficulty that
shall arise with distribution                     as it shall deem necessary, especially
to issue certificates for fractional                     shares and to determine the
value of certain property for purposes of                     distribution, and to decide
that payment in cash shall be made to the                     shareholder on the basis of
the value decided for that purpose, or that                     fractions the value of
which is less than one New Israeli Shekel shall not be                     taken into
account for the purpose of coordinating the rights of all the
                    parties. The Board of Directors shall be permitted, in this regard,
to grant                     cash or property to trustees in escrow for the benefit of
persons entitled                     thereto, as the Board shall see beneficial. Wherever
required, an agreement                     shall be submitted to the registrar of
companies and the Board may appoint a                     person to execute such an
agreement in the name of the persons entitled to a                     dividend,
property, fully paid up shares or debentures as shares or debentures
                    as aforesaid, and such an appointment shall be valid. 

	 	(c) 	The
Company shall not be obligated to pay interest on a dividend. 

	 	(d) 	The
Board of Directors may, with respect to all dividends not collected within
                    one year after their declaration, invest or use them in another way
for the                     benefit of the Company, until they shall be demanded. The
Company shall not pay                     interest for dividends or interest not
collected. 

	95.  	FUNDS 

	 	
The
Board may set aside from the profits of the Company the sums it deems proper, as a reserve
fund or reserve funds for extraordinary uses, or for preferred dividends or equalization
of dividends or other funds or for the purpose of correcting, bettering or retaining any
property of the Company and for those other purposes which shall, in the absolute
discretion of the Board of Directors, be beneficial to the Company and it may invest the
various sums so invested in such investments as it finds proper, and from time to time
deal with such investments, change or transfer them, in part or in whole, for the benefit
of the Company. The Board of Directors may, as well, divide any reserve liability fund to
preferred funds as it shall deem proper, transfer moneys from fund to fund and use every
fund or any part thereof in the business of the Company, without being required to keep
such sums separate from the rest of the Company’s property. The Board of Directors
may, from time to time, also transfer, to the next year, profits out of such sums which
are, in its absolute discretion, beneficial to the Company. Generally the Board of
Directors may create funds as it deems necessary, either those resulting from profits of
the Company or from re-evaluation of property, or from premiums paid for shares or from
any other source, and to use them in its discretion as it deems fit insofar as that in the
creation of such funds, the changes or uses do not exceed the provisions of the Companies
Law or accepted accounting principles. 

     	96.	
          All premiums received from the issue of shares shall be capital funds and they
          shall be treated for every purpose as capital and not as profits distributable
          as dividends. The Board of Directors may organize a reserve capital liability
          account and transfer, from time to time, all such premiums to the reserve
          capital liability account or use such premiums and monies to cover depreciation
          or doubtful loss. All losses from sale of investments or other property of the
          Company shall be debited from other funds of the Company. The Board of Directors
          may use any monies credited to the capital reserve liability account in any
          manner that these Articles or the Companies Law permits. 

          

- 42 -

     	97.	
          Any amounts transferred and credited to the account of income and expense fund
          or general reserve liability account or capital liability reserve account, may,
          until otherwise used in accordance with these Articles, be invested together
          with such other monies of the Company in the day to day business of the Company,
          without having to differentiate between these investments and the investment of
          the monies of the Company. 

          

     	98.	
          ACCOUNTS AND AUDIT 

          

	 	
The
Board shall cause correct accounts to be kept:  

	 	(a) 	of
the assets and liabilities; 

	 	(b) 	of
any amount of money received or expended by the Company and the mattes for
          which such sum of money is expended or received; and 

	 	(c) 	of
all purchases and sales made by the Company. 

	99. 	The
account books shall be kept in the Office or at such other place as the           Board
deems fit and they shall also be open for inspection by the directors. 

	100. 	The
Board of Directors shall determine from time to time, in any specific case           or
type of case, or generally, whether and to what extent and at what times and
          places and under what conditions or regulations the accounts and books of the
          Company, or any of them, shall be open for inspection by the shareholders, and
          no shareholder, not being a director, shall have any right of inspecting any
          account book or document of the Company except as conferred by law or
authorized           by the Board of Directors or by the Company in a general meeting. 

	101. 	Not
less than once a year, the Board shall submit before the Company at the           Annual
General Meeting a profit and loss account for the period after the           previous
account, and if it is the first account for the period after           registration of
the Company, it shall be prepared as of a date not more than           nine months before
the date of the meeting and in accordance with the relevant           provisions of the
Companies Law, and the Board shall submit a balance sheet that           is correct as of
the date of the profit and loss account. To the balance sheet           shall be attached
a report of the auditor and it shall be accompanied by a           report from the Board
with respect to the situation of the Company business and           the amount they
propose as a dividend and the amount (if any) that they propose           be set aside
for the fund accounts. 

	102. 	Auditors
shall be appointed and their function shall be set out in accordance           with the
Companies Law. 

- 43 -

NOTICES 

	102. 	A
notice or any other document may be served by the Company upon any shareholder
          either personally or by sending it by prepaid letter, fax or e-mail addressed
to           such shareholder at his address, wherever situated, as appearing in the
register           of shareholders, provided, however that a shareholder may notify the
Company in           writing of its objection to the use of e-mail as the sole means of
notice in           which event the Company shall provide notice to such shareholder by
e-mail and           one of the other means permitted by this Article 102. 

     	103.	
          All notices directed to be given to the shareholders shall, with respect to any
          shares to which persons are jointly entitled, be given to one of the joint
          holders, and any notice so given shall be sufficient notice to the holders of
          such share. 

          

     	104.	
          Prior and timely notice of the convening of a shareholders meeting shall be
          given to each shareholder, wherever situated, at the last address provided by
          the shareholder. Any shareholder registered in the register who shall, from time
          to time, furnish the Company with an address at which notices may be served,
          shall be entitled to receive all notices he is entitled to receive according to
          these Articles at that address. 

          

     	105.	
          A notice may be given by the Company to the persons entitled to a share in
          consequence of the death or bankruptcy of a shareholder by sending it through
          the post in a prepaid letter or fax or e-mail addressed to them by name, at the
          address furnished for the purpose by the persons claiming to be so entitled or,
          until such an address has been so furnished, by giving the notice in any manner
          in which the same might have been given if the death or bankruptcy had not
          occurred. 

          

     	106.	
          Any notice or other document, (i) if delivered personally, shall be deemed to
          have been served upon delivery, (ii) if sent by post, shall be deemed to have
          been served five (5) days after the time when the letter was delivered to the
          post, if sent by airmail, and two (2) days after the letter was delivered to the
          post, if sent by domestic post, and (iii) if sent by facsimile or electronic
          mail, shall be confirmed by appropriate answer back and shall be effective upon
          actual receipt if received during the recipient’s normal business hours, or
          beginning the recipient’s next business day after receipt if not received
          during recipient’s normal business hours. In proving such service it shall
          be sufficient to prove that the letter, facsimile, or electronic mail containing
          the notice was properly addressed and delivered at the post office or sent by
          facsimile or electronic mail, as the case may be. Any list kept in the ordinary
          manner in any mail list of the company or any copy of any fax in the
          Company’s possession shall be prima facie proof of the delivery. 

          

     	107.	(a) 	
           In any case where it is necessary to give prior notice of a certain number
          of days or a notice valid for a certain period, the date of delivery shall be
          taken into account in the number of days or period. 

          

	 	(b) 	In
addition to the furnishing of a notice pursuant to the above article, the
                    Company may furnish a notice to the shareholders entitled to receive
notice, or                     to part of them, by publication of a notice in a newspaper
distributed in the                     area wherein the Office is located, or any other
place, in Israel or abroad, as                     the Board shall determine from time to
time. 

     	108.	
          RESERVED 

          

- 44 -

     	109.	
          INDEMNITY 

          

	 	(a)	The
Company shall, subject and pursuant to the provisions of the Companies Law,
          indemnify an “Office Holder” of the Company (as such
          term is defined in the Companies Law) for all liabilities and expenses incurred
          by him arising from or as a result of any act (or omission) carried out by him
          as an Office Holder of the Company and which is indemnifiable pursuant to the
          Companies Law, to the maximum extent permitted by law. The Company may
indemnify           an Office Holder post-factum and may also undertake to indemnify an
Office           Holder in advance, provided that, to the extent required under
applicable law,           such undertaking is limited to types of occurrences which, in
the opinion of the           Board of Directors are, at the time of the undertaking,
foreseeable and to an           amount of the Board of Directors has determined is
reasonable in the           circumstances. 

	 	(b)	The
Company shall, subject and pursuant to the provisions of the Companies Law,
          enter into contracts to insure the liability of Office Holders of the Company
          for any liabilities incurred by him arising from or as a result of any act (or
          omission) carried out by him as an Office Holder of the Company and for which
          the Company may insure Office Holders pursuant to the Companies Law, to the
          maximum extent permitted by law. 

	 	(c)	The
Company may, subject to the provisions of the Companies Law, procure           insurance
for or indemnify any person who is not an Office Holder including,           without
limitation, any employee, agent, consultant or contractor of the Company           who is
not an Office Holder. 

	 	(d)	The
Company may, to the maximum extent permitted by law, exempt and release an
          Office Holder, including in advance, from all or part of his or her liability
          for monetary or other damages due to, arising or resulting from, a breach of
his           or her duty of care to the Company. The Directors of the Company are
released           and exempt from all liability as aforesaid to the maximum extent
permitted by           law with respect to any such breach, which has been or may be
committed. 

- 45 -

Schedule 2.2(a&b)  

	
 

	
 

	
 

	
 

	
Liquidation
Preference 

	
Exit Date 

	
May-07 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
AA

	
 

	
BB1

	
 

	
BB2

	
 

	
 

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
Shares

	
 

	
Money 

  Invested

	
 

	
Interest

	
 

	
Total

	
 

	
Shares

	
 

	
Money

  Invested

	
 

	
Interest

	
 

	
Total

	
 

	
Shares

	
 

	
Money

  Invested

	
 

	
Interest

	
 

	
Total

	
 

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pitango Venture Capital Fund III (Israeli Sub) L.P.

	
 

	
2,902,420

	
 

	
$

	
8,167,004

	
 

	
$

	
3,835,535

	
 

	
$

	
12,002,539

	
 

	
1,377,123

	
 

	
$

	
3,194,099

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
861,590

	
 

	
$

	
1,698,616

	
 

	
$

	
231,927

	
 

	
$

	
1,930,543

	
 

	
Pitango Venture Capital Fund III (Israeli Sub.) Non-Q L.P.

	
 

	
268,316

	
 

	
$

	
755,003

	
 

	
$

	
354,578

	
 

	
$

	
1,109,582

	
 

	
127,309

	
 

	
$

	
295,281

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
79,650

	
 

	
$

	
157,029

	
 

	
$

	
21,441

	
 

	
$

	
178,470

	
 

	
Pitango Venture Capital Fund III (Israeli Investors) L.P.

	
 

	
784,811

	
 

	
$

	
2,208,348

	
 

	
$

	
1,037,124

	
 

	
$

	
3,245,472

	
 

	
372,373

	
 

	
$

	
863,682

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
233,002

	
 

	
$

	
459,361

	
 

	
$

	
62,720

	
 

	
$

	
522,082

	
 

	
Pitango JP Morgan Fund III (Israel), L.P.

	
 

	
447,636

	
 

	
$

	
1,259,586

	
 

	
$

	
591,549

	
 

	
$

	
1,851,135

	
 

	
-

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Pitango Principles Fund III (Israel) L.P.

	
 

	
102,165

	
 

	
$

	
287,480

	
 

	
$

	
135,012

	
 

	
$

	
422,492

	
 

	
48,474

	
 

	
$

	
112,431

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
30,332

	
 

	
$

	
59,799

	
 

	
$

	
8,165

	
 

	
$

	
67,964

	
 

	
Pitango Venture Capital Fund II Trusts 2000 L.P.

	
 

	
204,330

	
 

	
$

	
574,956

	
 

	
$

	
270,021

	
 

	
$

	
844,977

	
 

	
96,949

	
 

	
$

	
224,864

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
60,660

	
 

	
$

	
119,591

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Canada Israel Opportunity Fund III, L.P.

	
 

	
45,308

	
 

	
$

	
127,494

	
 

	
$

	
59,876

	
 

	
$

	
187,371

	
 

	
9,544

	
 

	
$

	
22,136

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
7,308

	
 

	
$

	
14,408

	
 

	
$

	
1,967

	
 

	
$

	
16,375

	
 

	
Shrem, Fudim, Kelner Founders Group II L.P.

	
 

	
45,308

	
 

	
$

	
127,494

	
 

	
$

	
59,876

	
 

	
$

	
187,371

	
 

	
-

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Shrem Fudim Kelner Founders Group II Annex Fund L.P.

	
 

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
9,544

	
 

	
$

	
22,136

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
7,209

	
 

	
$

	
14,212

	
 

	
$

	
1,941

	
 

	
$

	
16,153

	
 

	
Shrem, Fudim Kelner & Co Ltd.

	
 

	
30,187

	
 

	
$

	
84,945

	
 

	
$

	
39,893

	
 

	
$

	
124,838

	
 

	
-

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
4,932

	
 

	
$

	
9,723

	
 

	
$

	
1,328

	
 

	
$

	
11,051

	
 

	
Qualitau Ltd.

	
 

	
355,522

	
 

	
$

	
1,000,422

	
 

	
$

	
469,836

	
 

	
$

	
1,470,259

	
 

	
-

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
-

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
SVE Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
 

	
2,224,297

	
 

	
$

	
6,258,859

	
 

	
$

	
2,939,398

	
 

	
$

	
9,198,257

	
 

	
521,206

	
 

	
$

	
1,208,885

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
635,475

	
 

	
$

	
1,252,833

	
 

	
$

	
171,060

	
 

	
$

	
1,423,893

	
 

	
Star Management of Investments No. II (2000) L.P.

	
 

	
321,275

	
 

	
$

	
904,023

	
 

	
$

	
424,563

	
 

	
$

	
1,328,586

	
 

	
56,238

	
 

	
$

	
130,438

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
68,535

	
 

	
$

	
135,116

	
 

	
$

	
18,449

	
 

	
$

	
153,565

	
 

	
Star Growth Enterprise, a German Civil Law Partnership (with
  limitation of Liability)

	
 

	
0

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2,247,164

	
 

	
$

	
5,212,070

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1,045,227

	
 

	
$

	
2,060,655

	
 

	
$

	
281,359

	
 

	
$

	
2,342,014

	
 

	
SVM Star Ventures Managmentt-
gesellschaft mbH Nr. 3

	
 

	
0

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
334,236

	
 

	
$

	
775,227

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Genesis Partners II, L.D.C.

	
 

	
1,773,948

	
 

	
$

	
4,991,639

	
 

	
$

	
2,344,263

	
 

	
$

	
7,335,902

	
 

	
693,952

	
 

	
$

	
1,609,552

	
 

	
$

	
219,766

	
 

	
$

	
1,829,318

	
 

	
490,760

	
 

	
$

	
967,528

	
 

	
$

	
132,105

	
 

	
$

	
1,099,633

	
 

	
Genesis Partners II (Israel) L.P.

	
 

	
262,512

	
 

	
$

	
738,672

	
 

	
$

	
346,908

	
 

	
$

	
1,085,580

	
 

	
102,414

	
 

	
$

	
237,539

	
 

	
$

	
32,433

	
 

	
$

	
269,972

	
 

	
72,426

	
 

	
$

	
142,787

	
 

	
$

	
19,496

	
 

	
$

	
162,283

	
 

	
Lehman Brothers European Venture Capital L.P.

	
 

	
222,108

	
 

	
 

	
625,001

	
 

	
$

	
293,524

	
 

	
$

	
918,525

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Lehman Brothers Holdings plc (on behalf of pre-tax plan)

	
 

	
425,109

	
 

	
 

	
1,196,236

	
 

	
$

	
561,798

	
 

	
$

	
1,758,034

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Lehman Brothers Partnership Account 2000/2001, L.P.

	
 

	
191,536

	
 

	
 

	
538,973

	
 

	
$

	
253,122

	
 

	
$

	
792,095

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Lehman Brothers Offshore Partnership Account 2000/2001, L.P.

	
 

	
49,677

	
 

	
 

	
139,789

	
 

	
$

	
65,650

	
 

	
$

	
205,439

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Orbotech Technology

	
 

	
1,776,860

	
 

	
$

	
5,000,000

	
 

	
$

	
2,348,190

	
 

	
$

	
7,348,190

	
 

	
-

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
-

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Intel

	
 

	
710,745

	
 

	
$

	
2,000,001

	
 

	
$

	
939,276

	
 

	
$

	
2,939,277

	
 

	
-

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
-

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Poalim Ventures Ltd.

	
 

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
381,027

	
 

	
$

	
883,754

	
 

	
$

	
120,666

	
 

	
$

	
1,004,420

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Poalim Ventures I Ltd.

	
 

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
586,194

	
 

	
$

	
1,359,618

	
 

	
$

	
185,640

	
 

	
$

	
1,545,259

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Poalim Ventures II L.P.

	
 

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1,188,509

	
 

	
$

	
2,756,628

	
 

	
$

	
376,386

	
 

	
$

	
3,133,014

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Wellington

	
 

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
-

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
-

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Amadeus III

	
 

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Amadeus III Affiliates Fund LP

	
 

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	
Total 

	
 

	
13,144,070 

	
 

	
$ 

	
36,985,926 

	
 

	
$ 

	
17,369,993 

	
 

	
$ 

	
54,355,919 

	
 

	
8,152,256 

	
 

	
$ 

	
18,908,340 

	
 

	
$ 

	
934,892 

	
 

	
$ 

	
7,781,983 

	
 

	
3,597,106 

	
 

	
$ 

	
7,091,659 

	
 

	
$ 

	
951,956 

	
 

	
$ 

	
7,924,024 

	
 

	
 

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
BB3

	
 

	
BB4

	
 

	
Total

	
 

	
 

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
Shares

	
 

	
Money

  Invested

	
 

	
Interest

	
 

	
Total

	
 

	
Shares

	
 

	
Money

  Invested

	
 

	
Interest

	
 

	
Total

	
 

	
Shares

	
 

	
Money

  Invested

	
 

	
Interest

	
 

	
Total

	
 

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pitango Venture Capital Fund III (Israeli Sub) L.P.

	
 

	
183,505

	
 

	
$

	
425,622

	
 

	
$

	
40,000

	
 

	
$

	
465,622

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
5,324,638

	
 

	
$

	
13,485,341

	
 

	
$

	
4,107,462

	
 

	
 

	
14,398,704

	
 

	
Pitango Venture Capital Fund III (Israeli Sub.) Non-Q L.P.

	
 

	
16,964

	
 

	
$

	
39,346

	
 

	
$

	
3,698

	
 

	
$

	
43,044

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
492,239

	
 

	
$

	
1,246,659

	
 

	
$

	
379,717

	
 

	
 

	
1,331,096

	
 

	
Pitango Venture Capital Fund III (Israeli Investors) L.P.

	
 

	
49,619

	
 

	
$

	
115,086

	
 

	
$

	
10,816

	
 

	
$

	
125,902

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1,439,805

	
 

	
$

	
3,646,478

	
 

	
$

	
1,110,660

	
 

	
 

	
3,893,456

	
 

	
Pitango JP Morgan Fund III (Israel), L.P.

	
 

	
-

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
447,636

	
 

	
$

	
1,259,586

	
 

	
$

	
591,549

	
 

	
 

	
1,851,135

	
 

	
Pitango Principles Fund III (Israel) L.P.

	
 

	
6,460

	
 

	
$

	
14,983

	
 

	
$

	
1,408

	
 

	
$

	
16,391

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
187,431

	
 

	
$

	
474,693

	
 

	
$

	
144,585

	
 

	
 

	
506,847

	
 

	
Pitango Venture Capital Fund II Trusts 2000 L.P.

	
 

	
12,918

	
 

	
$

	
29,962

	
 

	
$

	
2,816

	
 

	
$

	
32,778

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
374,857

	
 

	
$

	
949,372

	
 

	
$

	
272,837

	
 

	
 

	
877,755

	
 

	
Canada Israel Opportunity Fund III, L.P.

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
62,160

	
 

	
$

	
164,038

	
 

	
$

	
61,843

	
 

	
 

	
203,745

	
 

	
Shrem, Fudim, Kelner Founders Group II L.P.

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
45,308

	
 

	
$

	
127,494

	
 

	
$

	
59,876

	
 

	
 

	
187,371

	
 

	
Shrem Fudim Kelner Founders Group II Annex Fund L.P.

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
16,753

	
 

	
$

	
36,349

	
 

	
$

	
1,941

	
 

	
 

	
16,153

	
 

	
Shrem, Fudim Kelner & Co Ltd.

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
35,119

	
 

	
$

	
94,668

	
 

	
$

	
41,221

	
 

	
 

	
135,889

	
 

	
Qualitau Ltd.

	
 

	
-

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
-

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
355,522

	
 

	
$

	
1,000,422

	
 

	
$

	
469,836

	
 

	
$

	
1,470,259

	
 

	
SVE Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
 

	
79,061

	
 

	
$

	
183,374

	
 

	
$

	
17,234

	
 

	
$

	
200,607

	
 

	
121,135

	
 

	
$

	
295,012

	
 

	
$

	
15,444

	
 

	
$

	
310,456

	
 

	
3,581,174

	
 

	
$

	
9,198,962

	
 

	
$

	
3,143,135

	
 

	
$

	
11,133,212

	
 

	
Star Management of Investments No. II (2000) L.P.

	
 

	
8,530

	
 

	
$

	
19,784

	
 

	
$

	
1,859

	
 

	
$

	
21,644

	
 

	
15,915

	
 

	
$

	
38,759

	
 

	
$

	
2,029

	
 

	
$

	
40,788

	
 

	
470,493

	
 

	
$

	
1,228,121

	
 

	
$

	
446,900

	
 

	
$

	
1,544,583

	
 

	
Star Growth Enterprise, a German Civil Law Partnership (with
  limitation of Liability)

	
 

	
181,876

	
 

	
$

	
421,842

	
 

	
$

	
39,645

	
 

	
$

	
461,487

	
 

	
121,634

	
 

	
$

	
296,227

	
 

	
$

	
15,508

	
 

	
$

	
311,735

	
 

	
3,595,901

	
 

	
$

	
7,990,794

	
 

	
$

	
336,511

	
 

	
$

	
3,115,235

	
 

	
SVM Star Ventures Managmentt-
gesellschaft mbH Nr. 3

	
 

	
-

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
-

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
334,236

	
 

	
$

	
775,227

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Genesis Partners II, L.D.C.

	
 

	
986,212

	
 

	
$

	
2,287,421

	
 

	
$

	
214,973

	
 

	
$

	
2,502,394

	
 

	
168,168

	
 

	
$

	
409,556

	
 

	
$

	
21,440

	
 

	
$

	
430,996

	
 

	
4,113,040

	
 

	
$

	
10,265,696

	
 

	
$

	
2,932,548

	
 

	
$

	
13,198,244

	
 

	
Genesis Partners II (Israel) L.P.

	
 

	
145,546

	
 

	
$

	
337,579

	
 

	
$

	
31,726

	
 

	
$

	
369,305

	
 

	
24,819

	
 

	
$

	
60,444

	
 

	
$

	
3,164

	
 

	
$

	
63,608

	
 

	
607,717

	
 

	
$

	
1,517,021

	
 

	
$

	
433,728

	
 

	
$

	
1,950,749

	
 

	
Lehman Brothers European Venture Capital L.P.

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
222,108

	
 

	
$

	
625,001

	
 

	
$

	
293,524

	
 

	
$

	
918,525

	
 

	
Lehman Brothers Holdings plc (on behalf of pre-tax plan)

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
425,109

	
 

	
$

	
1,196,236

	
 

	
$

	
561,798

	
 

	
$

	
1,758,034

	
 

	
Lehman Brothers Partnership Account 2000/2001, L.P.

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
191,536

	
 

	
$

	
538,973

	
 

	
$

	
253,122

	
 

	
$

	
792,095

	
 

	
Lehman Brothers Offshore Partnership Account 2000/2001, L.P.

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
49,677

	
 

	
$

	
139,789

	
 

	
$

	
65,650

	
 

	
$

	
205,439

	
 

	
Orbotech Technology

	
 

	
-

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
-

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
1,776,860

	
 

	
$

	
5,000,000

	
 

	
$

	
2,348,190

	
 

	
$

	
7,348,190

	
 

	
Intel

	
 

	
483,559

	
 

	
$

	
1,121,566

	
 

	
$

	
105,406

	
 

	
$

	
1,226,972

	
 

	
60,770

	
 

	
$

	
147,999

	
 

	
$

	
7,748

	
 

	
$

	
155,747

	
 

	
1,255,074

	
 

	
$

	
3,269,566

	
 

	
$

	
1,052,430

	
 

	
$

	
4,321,996

	
 

	
Poalim Ventures Ltd.

	
 

	
47,628

	
 

	
$

	
110,468

	
 

	
$

	
10,382

	
 

	
$

	
120,850

	
 

	
19,305

	
 

	
$

	
47,015

	
 

	
$

	
2,461

	
 

	
$

	
49,476

	
 

	
447,960

	
 

	
$

	
1,041,238

	
 

	
$

	
133,510

	
 

	
$

	
1,174,747

	
 

	
Poalim Ventures I Ltd.

	
 

	
73,274

	
 

	
$

	
169,952

	
 

	
$

	
15,972

	
 

	
$

	
185,924

	
 

	
29,700

	
 

	
$

	
72,331

	
 

	
$

	
3,787

	
 

	
$

	
76,118

	
 

	
689,168

	
 

	
$

	
1,601,901

	
 

	
$

	
205,399

	
 

	
$

	
1,807,300

	
 

	
Poalim Ventures II L.P.

	
 

	
148,564

	
 

	
$

	
344,580

	
 

	
$

	
32,384

	
 

	
$

	
376,963

	
 

	
60,217

	
 

	
$

	
146,652

	
 

	
$

	
7,677

	
 

	
$

	
154,329

	
 

	
1,397,290

	
 

	
$

	
3,247,859

	
 

	
$

	
416,447

	
 

	
$

	
3,664,306

	
 

	
Wellington

	
 

	
3,435,558

	
 

	
$

	
7,968,434

	
 

	
$

	
748,879

	
 

	
$

	
8,717,313

	
 

	
363,801

	
 

	
$

	
886,000

	
 

	
$

	
46,383

	
 

	
$

	
932,383

	
 

	
3,799,359

	
 

	
$

	
8,854,434

	
 

	
$

	
795,261

	
 

	
$

	
9,649,695

	
 

	
Amadeus III

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
3,285,579

	
 

	
$

	
8,110,340

	
 

	
$

	
424,580

	
 

	
$

	
8,534,920

	
 

	
3,285,579

	
 

	
$

	
8,110,340

	
 

	
$

	
424,580

	
 

	
$

	
8,534,920

	
 

	
Amadeus III Affiliates Fund LP

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
67,053

	
 

	
$

	
165,518

	
 

	
$

	
8,665

	
 

	
$

	
174,183

	
 

	
67,053

	
 

	
$

	
165,518

	
 

	
$

	
8,665

	
 

	
$

	
174,183

	
 

	
 

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	
Total 

	
 

	
5,859,274 

	
 

	
$ 

	
13,590,000 

	
 

	
$ 

	
1,277,197 

	
 

	
$ 

	
14,867,197 

	
 

	
4,338,096 

	
 

	
$ 

	
10,675,853 

	
 

	
$ 

	
558,886 

	
 

	
$ 

	
11,234,739 

	
 

	
35,090,802 

	
 

	
$ 

	
87,251,777 

	
 

	
$ 

	
21,092,924 

	
 

	
$ 

	
96,163,862 

	
 

	
 

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	
 

	
 

	
 

	
Liquidation Preference 

	
Exit Date

	
May-07

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
AA

	
 

	
BB1

	
 

	
BB2

	
 

	
 

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
Shares

	
 

	
Money
  Invested

	
 

	
Interest

	
 

	
Total

	
 

	
Shares

	
 

	
Money
  Invested

	
 

	
Interest

	
 

	
Total

	
 

	
Shares

	
 

	
Money
  Invested

	
 

	
Interest

	
 

	
Total

	
 

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
Pitango

	
 

	
4,709,678

	
 

	
$

	
13,252,377

	
 

	
$

	
6,223,819

	
 

	
$

	
19,476,196

	
 

	
2,022,228

	
 

	
$

	
4,690,356

	
 

	
$

	
640,414

	
 

	
$

	
5,330,770

	
 

	
1,265,234

	
 

	
$

	
2,494,396

	
 

	
$

	
340,581

	
 

	
$

	
2,834,977

	
 

	
Shrem, Fudim, Kelner

	
 

	
120,803

	
 

	
$

	
339,934

	
 

	
$

	
159,646

	
 

	
$

	
499,579

	
 

	
19,088

	
 

	
$

	
44,273

	
 

	
$

	
6,045

	
 

	
$

	
50,318

	
 

	
19,449

	
 

	
$

	
38,344

	
 

	
$

	
5,235

	
 

	
$

	
43,579

	
 

	
Qualitau Ltd.

	
 

	
355,522

	
 

	
$

	
1,000,422

	
 

	
$

	
469,836

	
 

	
$

	
1,470,259

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Star

	
 

	
2,545,572

	
 

	
$

	
7,162,882

	
 

	
$

	
3,363,961

	
 

	
$

	
10,526,843

	
 

	
3,158,844

	
 

	
$

	
7,326,620

	
 

	
$

	
1,000,366

	
 

	
$

	
8,326,986

	
 

	
1,749,237

	
 

	
$

	
3,448,604

	
 

	
$

	
470,867

	
 

	
$

	
3,919,471

	
 

	
Genesis

	
 

	
2,036,460

	
 

	
$

	
5,730,311

	
 

	
$

	
2,691,171

	
 

	
$

	
8,421,482

	
 

	
796,366

	
 

	
$

	
1,847,091

	
 

	
$

	
252,199

	
 

	
$

	
2,099,290

	
 

	
563,186

	
 

	
$

	
1,110,315

	
 

	
$

	
151,601

	
 

	
$

	
1,261,916

	
 

	
Lehman Brothers

	
 

	
888,430

	
 

	
$

	
2,499,999

	
 

	
$

	
1,174,094

	
 

	
$

	
3,674,093

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Orbotech Technology

	
 

	
1,776,860

	
 

	
$

	
5,000,000

	
 

	
$

	
2,348,190

	
 

	
$

	
7,348,190

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Intel

	
 

	
710,745

	
 

	
$

	
2,000,001

	
 

	
$

	
939,276

	
 

	
$

	
2,939,277

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Poalim

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
2,155,730

	
 

	
$

	
5,000,000

	
 

	
$

	
682,693

	
 

	
$

	
5,682,693

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Wellington

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Amadeus

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	
Total

	
 

	
13,144,070

	
 

	
$

	
36,985,926

	
 

	
$

	
17,369,993

	
 

	
$

	
54,355,919

	
 

	
8,152,256

	
 

	
$

	
18,908,340

	
 

	
$

	
2,581,717

	
 

	
$

	
21,490,057

	
 

	
3,597,106

	
 

	
$

	
7,091,659

	
 

	
$

	
968,285

	
 

	
$

	
8,059,944

	
 

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
BB3

	
 

	
BB4

	
 

	
Total

	
 

	
 

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
Shares

	
 

	
Money
  Invested

	
 

	
Interest

	
 

	
Total

	
 

	
Shares

	
 

	
Money
  Invested

	
 

	
Interest

	
 

	
Total

	
 

	
Shares

	
 

	
Money
  Invested

	
 

	
Interest

	
 

	
Total

	
 

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
Pitango

	
 

	
269,466

	
 

	
$

	
625,000

	
 

	
$

	
58,738

	
 

	
$

	
683,738

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
8,266,606

	
 

	
$

	
21,062,129

	
 

	
$

	
7,263,552

	
 

	
$

	
28,325,681

	
 

	
Shrem, Fudim, Kelner

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
159,340

	
 

	
$

	
422,550

	
 

	
$

	
170,926

	
 

	
$

	
593,476

	
 

	
Qualitau Ltd.

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
355,522

	
 

	
$

	
1,000,422

	
 

	
$

	
469,836

	
 

	
$

	
1,470,259

	
 

	
Star

	
 

	
269,467

	
 

	
$

	
625,000

	
 

	
$

	
58,738

	
 

	
$

	
683,738

	
 

	
258,684

	
 

	
$

	
629,998

	
 

	
$

	
32,981

	
 

	
$

	
662,979

	
 

	
 

	
7,981,804

	
 

	
$

	
19,193,104

	
 

	
$

	
4,926,913

	
 

	
$

	
24,120,016

	
 

	
Genesis

	
 

	
1,131,758

	
 

	
$

	
2,625,000

	
 

	
$

	
246,699

	
 

	
$

	
2,871,699

	
 

	
192,987

	
 

	
$

	
470,000

	
 

	
$

	
24,605

	
 

	
$

	
494,605

	
 

	
 

	
4,720,757

	
 

	
$

	
11,782,717

	
 

	
$

	
3,366,275

	
 

	
$

	
15,148,993

	
 

	
Lehman Brothers

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
888,430

	
 

	
$

	
2,499,999

	
 

	
$

	
1,174,094

	
 

	
$

	
3,674,093

	
 

	
Orbotech Technology

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
1,776,860

	
 

	
$

	
5,000,000

	
 

	
$

	
2,348,190

	
 

	
$

	
7,348,190

	
 

	
Intel

	
 

	
483,559

	
 

	
$

	
1,121,566

	
 

	
$

	
105,406

	
 

	
$

	
1,226,972

	
 

	
60,770

	
 

	
$

	
147,999

	
 

	
$

	
7,748

	
 

	
$

	
155,747

	
 

	
 

	
1,255,074

	
 

	
$

	
3,269,566

	
 

	
$

	
1,052,430

	
 

	
$

	
4,321,996

	
 

	
Poalim

	
 

	
269,466

	
 

	
$

	
625,000

	
 

	
$

	
58,738

	
 

	
$

	
683,738

	
 

	
109,222

	
 

	
$

	
265,998

	
 

	
$

	
13,925

	
 

	
$

	
279,923

	
 

	
 

	
2,534,418

	
 

	
$

	
5,890,998

	
 

	
$

	
755,356

	
 

	
$

	
6,646,354

	
 

	
Wellington

	
 

	
3,435,558

	
 

	
$

	
7,968,434

	
 

	
$

	
748,879

	
 

	
$

	
8,717,313

	
 

	
363,801

	
 

	
$

	
886,000

	
 

	
$

	
46,383

	
 

	
$

	
932,383

	
 

	
 

	
3,799,359

	
 

	
$

	
8,854,434

	
 

	
$

	
795,261

	
 

	
$

	
9,649,695

	
 

	
Amadeus

	
 

	
0

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
3,352,632

	
 

	
$

	
8,275,858

	
 

	
$

	
433,245

	
 

	
$

	
8,709,103

	
 

	
 

	
3,352,632

	
 

	
$

	
8,275,858

	
 

	
$

	
433,245

	
 

	
$

	
8,709,103

	
 

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	
Total

	
 

	
5,859,274

	
 

	
$

	
13,590,000

	
 

	
$

	
1,277,197

	
 

	
$

	
14,867,197

	
 

	
4,338,096

	
 

	
$

	
10,675,853

	
 

	
$

	
558,886

	
 

	
$

	
11,234,739

	
 

	
$

	
35,090,802

	
 

	
$

	
87,251,777

	
 

	
$

	
22,756,078

	
 

	
$

	
110,007,856

	
 

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

Negevtech Ltd. 

Capitalization
Table (on a fully diluted basis) as of March 29, 2007 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name

	
 

	
# Ordinary

	
 

	
# Options/Warrants to Purchase Ordinary

	
 

	
# Preferred AA

	
 

	
# Warrants to purchase Preferred AA

	
 

	
# Preferred BB-2 (including 15% discount)

	
 

	
# Preferred BB-1

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pitango Venture Capital Fund III (Israeli Sub) L.P.

	
 

	
 

	
 

	
 

	
 

	
2,902,420

	
 

	
201,465

	
 

	
861,590

	
 

	
1,377,123

	
Pitango Venture Capital Fund III (Israeli Sub.) Non-Q L.P.

	
 

	
 

	
 

	
 

	
 

	
268,316

	
 

	
18,624

	
 

	
79,650

	
 

	
127,309

	
Pitango Venture Capital Fund III (Israeli Investors) L.P.

	
 

	
 

	
 

	
 

	
 

	
784,811

	
 

	
54,475

	
 

	
233,002

	
 

	
372,373

	
Pitango Parallel investor Fund III (Israel), L.P

	
 

	
 

	
 

	
 

	
 

	
447,636

	
 

	
36,734

	
 

	
 

	
 

	
 

	
Pitango Principles Fund III (Israel) L.P.

	
 

	
 

	
 

	
 

	
 

	
102,165

	
 

	
7,092

	
 

	
30,332

	
 

	
48,474

	
Pitango Venture Capital Fund II Trusts 2000 L.P.

	
 

	
 

	
 

	
 

	
 

	
204,330

	
 

	
14,184

	
 

	
60,660

	
 

	
96,949

	
Canada Israel Opportunity Fund III, L.P.

	
 

	
 

	
 

	
 

	
 

	
45,308

	
 

	
2,520

	
 

	
7,308

	
 

	
9,544

	
Shrem, Fudim, Kelner Founders Group II L.P.

	
 

	
 

	
 

	
 

	
 

	
45,308

	
 

	
2,520

	
 

	
 

	
 

	
 

	
Shrem Fudim Kelner Founders Group II Annex Fund L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
7,209

	
 

	
9,544

	
Shrem, Fudim Kelner & Co Ltd.

	
 

	
 

	
 

	
 

	
 

	
30,187

	
 

	
1,679

	
 

	
4,932

	
 

	
 

	
Qualitau Ltd.

	
 

	
 

	
 

	
 

	
 

	
355,522

	
 

	
26,879

	
 

	
 

	
 

	
 

	
SVE Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
 

	
 

	
 

	
 

	
 

	
2,224,297

	
 

	
318,075

	
 

	
635,475

	
 

	
521,206

	
Star Management of Investments No. II (2000) L.P.

	
 

	
 

	
 

	
 

	
 

	
321,275

	
 

	
45,943

	
 

	
68,535

	
 

	
56,238

	
Star Growth Enterprise, a German Civil Law Partnership (with
  limitation of Liability)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1,045,227

	
 

	
2,247,164

	
SVM Star Ventures Managmenttgesellschaft mbH Nr. 3

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
334,236

	
Genesis Partners II, L.D.C.

	
 

	
 

	
 

	
 

	
 

	
1,773,948

	
 

	
253,679

	
 

	
490,760

	
 

	
693,952

	
Genesis Partners II (Israel) L.P.

	
 

	
 

	
 

	
 

	
 

	
262,512

	
 

	
37,535

	
 

	
72,426

	
 

	
102,414

	
Lehman Brothers European Venture Capital L.P.

	
 

	
 

	
 

	
 

	
 

	
222,108

	
 

	
41,998

	
 

	
 

	
 

	
 

	
Lehman Brothers Holdings plc (on behalf of pre-tax plan)

	
 

	
 

	
 

	
 

	
 

	
425,109

	
 

	
80,384

	
 

	
 

	
 

	
 

	
Lehman Brothers Partnership Account 2000/2001, L.P.

	
 

	
 

	
 

	
 

	
 

	
191,536

	
 

	
36,217

	
 

	
 

	
 

	
 

	
Lehman Brothers Offshore Partnership Account 2000/2001,
L.P.

	
 

	
 

	
 

	
 

	
 

	
49,677

	
 

	
9,393

	
 

	
 

	
 

	
 

	
Orbotech Technology Ventures L.P.

	
 

	
 

	
 

	
 

	
 

	
1,776,860

	
 

	
335,988

	
 

	
 

	
 

	
 

	
Intel Atlantic, Inc.

	
 

	
 

	
 

	
 

	
 

	
710,745

	
 

	
134,395

	
 

	
 

	
 

	
 

	
Poalim Ventures Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
381,027

	
Poalim Ventures I Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
586,194

	
Poalim Ventures II L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1,188,509

	
Wellington Partners Venture III Technology Fund L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Amadeus III

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Amadeus III Affiliates Fund LP

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Financiere Seso S.A

	
 

	
159,620

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Inter Hightech (1982) Ltd.

	
 

	
71,829

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Service Providers

	
 

	
 

	
 

	
32,769

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TICI

	
 

	
 

	
 

	
87,791

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Tmura Fund

	
 

	
 

	
 

	
5,000

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ESOP IL Plan(1)(2)

	
 

	
393,500

	
 

	
5,031,003

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ESOP US Plan

	
 

	
 

	
 

	
605,000

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Plenus Technologies Ltd

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
Total

	
 

	
624,949

	
 

	
5,761,563

	
 

	
13,144,070

	
 

	
1,659,779

	
 

	
3,597,106

	
 

	
8,152,256

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name

	
 

	
# Warrants to purchase Preferred BB-1

	
 

	
# Preferred BB-3

	
 

	
# Preferred BB-4

	
 

	
# Total Shares on an as converted basis

	
 

	
% Issued & Outstanding on an as converted basis

	
 
	
 

	
# Total Fully Diluted on an as converted basis

	
 

	
% Fully Diluted on an as converted basis

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	 	
 

	

	
 

	

	 
	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pitango Venture Capital Fund III (Israeli Sub) L.P.

	
 

	
 

	
 

	
183,505

	
 

	
 

	
 

	
5,324,638

	
 

	
14.91

	
%

	
 

	
5,526,103

	
 

	
12.36

	
%

	
Pitango Venture Capital Fund III (Israeli Sub.) Non-Q L.P.

	
 

	
 

	
 

	
16,964

	
 

	
 

	
 

	
492,239

	
 

	
1.38

	
%

	
 

	
510,863

	
 

	
1.14

	
%

	
Pitango Venture Capital Fund III (Israeli Investors) L.P.

	
 

	
 

	
 

	
49,619

	
 

	
 

	
 

	
1,439,805

	
 

	
4.03

	
%

	
 

	
1,494,280

	
 

	
3.34

	
%

	
Pitango Parallel investor Fund III (Israel), L.P

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
447,636

	
 

	
1.25

	
%

	
 

	
484,370

	
 

	
1.08

	
%

	
Pitango Principles Fund III (Israel) L.P.

	
 

	
 

	
 

	
6,460

	
 

	
 

	
 

	
187,431

	
 

	
0.52

	
%

	
 

	
194,523

	
 

	
0.44

	
%

	
Pitango Venture Capital Fund II Trusts 2000 L.P.

	
 

	
 

	
 

	
12,918

	
 

	
 

	
 

	
374,857

	
 

	
1.05

	
%

	
 

	
389,041

	
 

	
0.87

	
%

	
Canada Israel Opportunity Fund III, L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
62,160

	
 

	
0.17

	
%

	
 

	
64,680

	
 

	
0.14

	
%

	
Shrem, Fudim, Kelner Founders Group II L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
45,308

	
 

	
0.13

	
%

	
 

	
47,828

	
 

	
0.11

	
%

	
Shrem Fudim Kelner Founders Group II Annex Fund L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
16,753

	
 

	
0.05

	
%

	
 

	
16,753

	
 

	
0.04

	
%

	
Shrem, Fudim Kelner & Co Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
35,119

	
 

	
0.10

	
%

	
 

	
36,798

	
 

	
0.08

	
%

	
Qualitau Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
355,522

	
 

	
1.00

	
%

	
 

	
382,401

	
 

	
0.86

	
%

	
SVE Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
 

	
 

	
 

	
79,061

	
 

	
121,135

	
 

	
3,581,174

	
 

	
10.03

	
%

	
 

	
3,899,249

	
 

	
8.72

	
%

	
Star Management of Investments No. II (2000) L.P.

	
 

	
 

	
 

	
8,530

	
 

	
15,915

	
 

	
470,493

	
 

	
1.32

	
%

	
 

	
516,436

	
 

	
1.16

	
%

	
Star Growth Enterprise, a German Civil Law Partnership (with
  limitation of Liability)

	
 

	
 

	
 

	
181,876

	
 

	
121,634

	
 

	
3,595,901

	
 

	
10.07

	
%

	
 

	
3,595,901

	
 

	
8.05

	
%

	
SVM Star Ventures Managmenttgesellschaft mbH Nr. 3

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
334,236

	
 

	
0.94

	
%

	
 

	
334,236

	
 

	
0.75

	
%

	
Genesis Partners II, L.D.C.

	
 

	
 

	
 

	
986,212

	
 

	
168,168

	
 

	
4,113,040

	
 

	
11.52

	
%

	
 

	
4,366,719

	
 

	
9.77

	
%

	
Genesis Partners II (Israel) L.P.

	
 

	
 

	
 

	
145,546

	
 

	
24,819

	
 

	
607,717

	
 

	
1.70

	
%

	
 

	
645,252

	
 

	
1.44

	
%

	
Lehman Brothers European Venture Capital L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
222,108

	
 

	
0.62

	
%

	
 

	
264,106

	
 

	
0.59

	
%

	
Lehman Brothers Holdings plc (on behalf of pre-tax plan)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
425,109

	
 

	
1.19

	
%

	
 

	
505,493

	
 

	
1.13

	
%

	
Lehman Brothers Partnership Account 2000/2001, L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
191,536

	
 

	
0.54

	
%

	
 

	
227,753

	
 

	
0.51

	
%

	
Lehman Brothers Offshore Partnership Account 2000/2001,
L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
49,677

	
 

	
0.14

	
%

	
 

	
59,070

	
 

	
0.13

	
%

	
Orbotech Technology Ventures L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1,776,860

	
 

	
4.98

	
%

	
 

	
2,112,848

	
 

	
4.73

	
%

	
Intel Atlantic, Inc.

	
 

	
 

	
 

	
483,559

	
 

	
60,770

	
 

	
1,255,074

	
 

	
3.51

	
%

	
 

	
1,389,469

	
 

	
3.11

	
%

	
Poalim Ventures Ltd.

	
 

	
 

	
 

	
47,628

	
 

	
19,305

	
 

	
447,960

	
 

	
1.25

	
%

	
 

	
447,960

	
 

	
1.00

	
%

	
Poalim Ventures I Ltd.

	
 

	
 

	
 

	
73,274

	
 

	
29,700

	
 

	
689,168

	
 

	
1.93

	
%

	
 

	
689,168

	
 

	
1.54

	
%

	
Poalim Ventures II L.P.

	
 

	
 

	
 

	
148,564

	
 

	
60,217

	
 

	
1,397,290

	
 

	
3.91

	
%

	
 

	
1,397,290

	
 

	
3.13

	
%

	
Wellington Partners Venture III Technology Fund L.P.

	
 

	
 

	
 

	
3,435,558

	
 

	
363,801

	
 

	
3,799,359

	
 

	
10.64

	
%

	
 

	
3,799,359

	
 

	
8.50

	
%

	
Amadeus III

	
 

	
 

	
 

	
 

	
 

	
3,285,579

	
 

	
3,285,579

	
 

	
9.20

	
%

	
 

	
3,285,579

	
 

	
7.35

	
%

	
Amadeus III Affiliates Fund LP

	
 

	
 

	
 

	
 

	
 

	
67,053

	
 

	
67,053

	
 

	
0.19

	
%

	
 

	
67,053

	
 

	
0.15

	
%

	
Financiere Seso S.A

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
159,620

	
 

	
0.45

	
%

	
 

	
159,620

	
 

	
0.36

	
%

	
Inter Hightech (1982) Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
71,829

	
 

	
0.20

	
%

	
 

	
71,829

	
 

	
0.16

	
%

	
Service Providers

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
–

	
 

	
0.00

	
%

	
 

	
32,769

	
 

	
0.07

	
%

	
TICI

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
–

	
 

	
0.00

	
%

	
 

	
87,791

	
 

	
0.20

	
%

	
Tmura Fund

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
–

	
 

	
0.00

	
%

	
 

	
5,000

	
 

	
0.01

	
%

	
ESOP IL Plan(1)(2)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
393,500

	
 

	
1.10

	
%

	
 

	
5,424,503

	
 

	
12.14

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ESOP US Plan

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
–

	
 

	
0.00

	
%

	
 

	
605,000

	
 

	
1.35

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Plenus Technologies Ltd

	
 

	
1,556,437

	
 

	
 

	
 

	
 

	
 

	
–

	
 

	
0.00

	
%

	
 

	
1,556,437

	
 

	
3.48

	
%

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 
	
 

	

	
 

	

	
 

	
Total

	
 

	
1,556,437

	
 

	
5,859,274

	
 

	
4,338,096

	
 

	
35,715,751

	
 

	
100

	
%

	
 

	
44,693,530

	
 

	
100

	
%

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 
	
 

	

	
 

	

	
 

(1) The 381,500 Ordinary Shares are held by
Eli Lerner, CPA as trustee under the Company’s ESOP 

(2) Includes 1,410,285 options
to purchase Ordinary Shares of the Company granted to Arnon Gat, the Company’s
CEO. Such number of Shares includes an Adjustment (as provided for and defined
in Mr. Gat’s employment agreement with the Company) in connection with an
investment of US$25. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Current Cap-Table

	
   

	
 

	
  

	
 

	
 

	
 

	
 

	

	
   

	
 

	
  

	
 

	
 

	
Name

	
 

	
# Ordinary

	
 

	
# Options/Warrants to Purchase Ordinary

	
 

	
# Preferred AA

	
 

	
# Warrants to purchase Preferred AA

	
 

	
# Preferred BB-2 (including 15% discount)

	
 

	
# Preferred BB-1

	
 

	
# Warrants to purchase Preferred BB-1

	
 

	
# Preferred BB-3

	
 

	
# Preferred BB-4

	
 

	
# Total Shares on an as converted basis

	
 

	
% Issued & Outstanding on an as converted basis

	
 

	
# Total Fully Diluted on an as converted basis

	
 

	
% Fully Diluted on an as converted basis

	
   

	
Holdings According to the Money

	
  

	
Automatic Conversion+ Money Allocation+ 85% BB Anti
  Dilution

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
   

	

	
  

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
 

	
  

	
 

	
 

	
Pitango Venture Capital Fund III (Israeli Sub) L.P.

	
 

	
-

	
 

	
-

	
 

	
2,902,420

	
 

	
201,465

	
 

	
861,590

	
 

	
1,377,123

	
 

	
-

	
 

	
183,505

	
 

	
-

	
 

	
5,324,638

	
 

	
14.91

	
%

	
5,526,103

	
 

	
12.36

	
%  

	
15.46

	
% 

	
1,712,966
  

	
 

	
Pitango Venture Capital Fund III (Israeli Sub.) Non-Q L.P.

	
 

	
-

	
 

	
-

	
 

	
268,316

	
 

	
18,624

	
 

	
79,650

	
 

	
127,309

	
 

	
-

	
 

	
16,964

	
 

	
-

	
 

	
492,239

	
 

	
1.38

	
%

	
510,863

	
 

	
1.14

	
%  

	
1.43

	
% 

	
158,355
  

	
 

	
Pitango Venture Capital Fund III (Israeli Investors) L.P.

	
 

	
-

	
 

	
-

	
 

	
784,811

	
 

	
54,475

	
 

	
233,002

	
 

	
372,373

	
 

	
-

	
 

	
49,619

	
 

	
-

	
 

	
1,439,805

	
 

	
4.03

	
%

	
1,494,280

	
 

	
3.34

	
%  

	
4.18

	
% 

	
463,195
  

	
 

	
Pitango Parallel Investor Fund III (Israel), L.P

	
 

	
-

	
 

	
-

	
 

	
447,636

	
 

	
36,734

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
447,636

	
 

	
1.25

	
%

	
484,370

	
 

	
1.08

	
%  

	
1.44

	
% 

	
113,519
  

	
 

	
Pitango Principles Fund III (Israel) L.P.

	
 

	
-

	
 

	
-

	
 

	
102,165

	
 

	
7,092

	
 

	
30,332

	
 

	
48,474

	
 

	
-

	
 

	
6,460

	
 

	
-

	
 

	
187,431

	
 

	
0.52

	
%

	
194,523

	
 

	
0.44

	
%  

	
0.54

	
% 

	
60,297
  

	
 

	
Pitango Venture Capital Fund II Trusts 2000 L.P.

	
 

	
-

	
 

	
-

	
 

	
204,330

	
 

	
14,184

	
 

	
60,660

	
 

	
96,949

	
 

	
-

	
 

	
12,918

	
 

	
-

	
 

	
374,857

	
 

	
1.05

	
%

	
389,041

	
 

	
0.87

	
%  

	
1.09

	
% 

	
120,594
  

	
 

	
Canada Israel Opportunity Fund III, L.P.

	
 

	
-

	
 

	
-

	
 

	
45,308

	
 

	
2,520

	
 

	
7,308

	
 

	
9,544

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
62,160

	
 

	
0.17

	
%

	
64,680

	
 

	
0.14

	
%  

	
0.19

	
% 

	
18,204
  

	
 

	
Shrem, Fudim, Kelner Founders Group II L.P.

	
 

	
-

	
 

	
-

	
 

	
45,308

	
 

	
2,520

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
45,308

	
 

	
0.13

	
%

	
47,828

	
 

	
0.11

	
%  

	
0.15

	
% 

	
11,490
  

	
 

	
Shrem Fudim Kelner Founders Group II Annex Fund L.P.

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
7,209

	
 

	
9,544

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
16,753

	
 

	
0.05

	
%

	
16,753

	
 

	
0.04

	
%  

	
0.04

	
% 

	
6,677
  

	
 

	
Shrem, Fudim Kelner & Co Ltd.

	
 

	
-

	
 

	
-

	
 

	
30,187

	
 

	
1,679

	
 

	
4,932

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
35,119

	
 

	
0.10

	
%

	
36,798

	
 

	
0.08

	
%  

	
0.11

	
% 

	
9,441
  

	
 

	
Qualitau Ltd.

	
 

	
-

	
 

	
-

	
 

	
355,522

	
 

	
26,879

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
355,522

	
 

	
1.00

	
%

	
382,401

	
 

	
0.86

	
%  

	
1.15

	
% 

	
-

	
 

	
SVE Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
 

	
-

	
 

	
-

	
 

	
2,224,297

	
 

	
318,075

	
 

	
635,475

	
 

	
521,206

	
 

	
-

	
 

	
79,061

	
 

	
121,135

	
 

	
3,581,174

	
 

	
10.03

	
%

	
3,899,249

	
 

	
8.72

	
%  

	
10.54

	
% 

	
1,115,644
  

	
 

	
Star Management of Investments No. II (2000) L.P.

	
 

	
-

	
 

	
-

	
 

	
321,275

	
 

	
45,943

	
 

	
68,535

	
 

	
56,238

	
 

	
-

	
 

	
8,530

	
 

	
15,915

	
 

	
470,493

	
 

	
1.32

	
%

	
516,436

	
 

	
1.16

	
%  

	
1.41

	
% 

	
142,132
  

	
 

	
Star Growth Enterprise, a German Civil Law Partnership (with
  limitation of Liability)

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
1,045,227

	
 

	
2,247,164

	
 

	
-

	
 

	
181,876

	
 

	
121,634

	
 

	
3,595,901

	
 

	
10.07

	
%

	
3,595,901

	
 

	
8.05

	
%  

	
9.16

	
% 

	
1,461,726
  

	
 

	
SVM Star Ventures Managmenttgesellschaft mbH Nr. 3

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
334,236

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
334,236

	
 

	
0.94

	
%

	
334,236

	
 

	
0.75

	
%  

	
0.89

	
% 

	
135,866
  

	
 

	
Genesis Partners II, L.D.C.

	
 

	
-

	
 

	
-

	
 

	
1,773,948

	
 

	
253,679

	
 

	
490,760

	
 

	
693,952

	
 

	
-

	
 

	
986,212

	
 

	
168,168

	
 

	
4,113,040

	
 

	
11.52

	
%

	
4,366,719

	
 

	
9.77

	
%  

	
11.77

	
% 

	
1,418,654
  

	
 

	
Genesis Partners II (Israel) L.P.

	
 

	
-

	
 

	
-

	
 

	
262,512

	
 

	
37,535

	
 

	
72,426

	
 

	
102,414

	
 

	
-

	
 

	
145,546

	
 

	
24,819

	
 

	
607,717

	
 

	
1.70

	
%

	
645,252

	
 

	
1.44

	
%  

	
1.74

	
% 

	
209,545
  

	
 

	
Lehman Brothers European Venture Capital L.P.

	
 

	
-

	
 

	
-

	
 

	
222,108

	
 

	
41,998

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
222,108

	
 

	
0.62

	
%

	
264,106

	
 

	
0.59

	
%  

	
0.72

	
% 

	
-

	
 

	
Lehman Brothers Holdings plc (on behalf of pre-tax plan)

	
 

	
-

	
 

	
-

	
 

	
425,109

	
 

	
80,384

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
425,109

	
 

	
1.19

	
%

	
505,493

	
 

	
1.13

	
%  

	
1.37

	
% 

	
-

	
 

	
Lehman Brothers Partnership Account 2000/2001, L.P.

	
 

	
-

	
 

	
-

	
 

	
191,536

	
 

	
36,217

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
191,536

	
 

	
0.54

	
%

	
227,753

	
 

	
0.51

	
%  

	
0.62

	
% 

	
-

	
 

	
Lehman Brothers Offshore Partnership Account 2000/2001, L.P.

	
 

	
-

	
 

	
-

	
 

	
49,677

	
 

	
9,393

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
49,677

	
 

	
0.14

	
%

	
59,070

	
 

	
0.13

	
%  

	
0.16

	
% 

	
-

	
 

	
Orbotech

	
 

	
-

	
 

	
-

	
 

	
1,776,860

	
 

	
335,988

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
1,776,860

	
 

	
4.98

	
%

	
2,112,848

	
 

	
4.73

	
%  

	
5.73

	
% 

	
-

	
 

	
Intel

	
 

	
-

	
 

	
-

	
 

	
710,745

	
 

	
134,395

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
483,559

	
 

	
60,770

	
 

	
1,255,074

	
 

	
3.51

	
%

	
1,389,469

	
 

	
3.11

	
%  

	
3.75

	
% 

	
-

	
 

	
Poalim Ventures Ltd.

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
381,027

	
 

	
-

	
 

	
47,628

	
 

	
19,305

	
 

	
447,960

	
 

	
1.25

	
%

	
447,960

	
 

	
1.00

	
%  

	
1.19

	
% 

	
191,264
  

	
 

	
Poalim Ventures I Ltd.

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
586,194

	
 

	
-

	
 

	
73,274

	
 

	
29,700

	
 

	
689,168

	
 

	
1.93

	
%

	
689,168

	
 

	
1.54

	
%  

	
1.84

	
% 

	
294,250
  

	
 

	
Poalim Ventures II L.P.

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
1,188,509

	
 

	
-

	
 

	
148,564

	
 

	
60,217

	
 

	
1,397,290

	
 

	
3.91

	
%

	
1,397,290

	
 

	
3.13

	
%  

	
3.72

	
% 

	
596,596
  

	
 

	
Wellington Partners Venture III Technology Fund L.P.

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
3,435,558

	
 

	
363,801

	
 

	
3,799,359

	
 

	
10.64

	
%

	
3,799,359

	
 

	
8.50

	
%  

	
10.15

	
% 

	
1,626,458
  

	
 

	
Amadeus III

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
3,285,579

	
 

	
3,285,579

	
 

	
9.20

	
%

	
3,285,579

	
 

	
7.35

	
%  

	
9.30

	
% 

	
1,489,777
  

	
 

	
Amadeus III Affiliates Fund LP

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
67,053

	
 

	
67,053

	
 

	
0.19

	
%

	
67,053

	
 

	
0.15

	
%  

	
0.19

	
% 

	
30,403
  

	
 

	
Financiere Seso S.A

	
 

	
159,620

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
159,620

	
 

	
0.45

	
%

	
159,620

	
 

	
0.36

	
%  

	
 

	
  

	
1,596
  

	
 

	
Inter Hightech (1982) Ltd.

	
 

	
71,829

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
71,829

	
 

	
0.20

	
%

	
71,829

	
 

	
0.16

	
%  

	
 

	
  

	
718
  

	
 

	
Service Providers

	
 

	
-

	
 

	
32,769

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
0.00

	
%

	
32,769

	
 

	
0.07

	
%  

	
 

	
  

	
-

	
 

	
TICI

	
 

	
-

	
 

	
87,791

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
0.00

	
%

	
87,791

	
 

	
0.20

	
%  

	
 

	
  

	
-

	
 

	
Tmura Fund

	
 

	
-

	
 

	
5,000

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
0.00

	
%

	
5,000

	
 

	
0.01

	
%  

	
 

	
  

	
-

	
 

	
ESOP IL Plan(1)(2) (exercise)

	
 

	
393,500

	
 

	
5,031,003

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
393,500

	
 

	
1.10

	
%

	
5,424,503

	
 

	
12.14

	
%  

	
 

	
  

	
3,935
  

	
 

	
ESOP IL Plan

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
0.00

	
%

	
-

	
 

	
0.00

	
%  

	
 

	
  

	
-

	
 

	
ESOP US Plan

	
 

	
-

	
 

	
605,000

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
0.00

	
%

	
605,000

	
 

	
1.35

	
%  

	
 

	
  

	
-

	
 

	
New ESOP

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
0.00

	
%

	
-

	
 

	
0.00

	
%  

	
 

	
  

	
-

	
 

	
Plenus Technologies Ltd

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
1,556,437

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
0.00

	
%

	
1,556,437

	
 

	
3.48

	
%  

	
 

	
  

	
-

	
 

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
   

	

	
  

	

	
 

	
Total

	
 

	
624,949

	
 

	
5,761,563

	
 

	
13,144,070

	
 

	
1,659,779

	
 

	
3,597,106

	
 

	
8,152,256

	
 

	
1,556,437

	
 

	
5,859,274

	
 

	
4,338,096

	
 

	
35,715,751

	
 

	
100.00

	
%

	
44,693,530

	
 

	
100

	
%  

	
75.86

	
% 

	
8,764,376 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
   

	

	
  

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ReCapitalization & A1 Financing

	
 

	
New Round

	
 

	
 

	
 

	

	
 

	

	
 

	
Name

	
 

	
Ordinary

	
 

	
# Options to Purchase Ordinary

	
 

	
# Warrants to Purchase Ordinary

	
 

	
Ordinary Preferred A

	
 

	
Ordinary Preferred B

	
 

	
Ordinary Preferred B 85% Anti-Dilution

	
 

	
Total Ordinary Preferred B

	
 

	
 

	
Total holdings

	
 

	
% Fully Diluted on an as converted basis

	
 

	
New Round $

	
 

	
Preferred A-1

	
 

	
# Total Fully Diluted on an as converted basis

	
 

	
% Fully Diluted on an as converted basis

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pitango Venture Capital Fund III (Israeli Sub) L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
736,047

	
 

	
479,313

	
 

	
497,606

	
 

	
976,919

	
 

	
 

	
1,712,966

	
 

	
11.34

	
%

	
$

	
2,221,057

	
 

	
1,678,169

	
 

	
3,391,135

	
 

	
12.82

	
%

	
Pitango Venture Capital Fund III (Israeli Sub.) Non-Q L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
68,044

	
 

	
44,310

	
 

	
46,001

	
 

	
90,311

	
 

	
 

	
158,355

	
 

	
1.05

	
%

	
$

	
205,327

	
 

	
155,139

	
 

	
313,494

	
 

	
1.19

	
%

	
Pitango Venture Capital Fund III (Israeli Investors) L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
199,026

	
 

	
129,611

	
 

	
134,558

	
 

	
264,169

	
 

	
 

	
463,195

	
 

	
3.07

	
%

	
$

	
600,572

	
 

	
453,776

	
 

	
916,971

	
 

	
3.47

	
%

	
Pitango Parallel Investor Fund III (Israel), L.P

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
113,519

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
 

	
113,519

	
 

	
0.75

	
%

	
$

	
186,721

	
 

	
141,081

	
 

	
254,600

	
 

	
0.96

	
%

	
Pitango Principles Fund III (Israel) L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
25,909

	
 

	
16,872

	
 

	
17,516

	
 

	
34,388

	
 

	
 

	
60,297

	
 

	
0.40

	
%

	
$

	
78,181

	
 

	
59,071

	
 

	
119,368

	
 

	
0.45

	
%

	
Pitango Venture Capital Fund II Trusts 2000 L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
51,818

	
 

	
33,744

	
 

	
35,032

	
 

	
68,776

	
 

	
 

	
120,594

	
 

	
0.80

	
%

	
$

	
156,362

	
 

	
118,143

	
 

	
238,737

	
 

	
0.90

	
%

	
Canada Israel Opportunity Fund III, L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
11,490

	
 

	
3,294

	
 

	
3,420

	
 

	
6,714

	
 

	
 

	
18,204

	
 

	
0.12

	
%

	
$

	
30,000

	
 

	
22,667

	
 

	
40,871

	
 

	
0.07

	
%

	
Shrem, Fudim, Kelner Founders Group II L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
11,490

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
 

	
11,490

	
 

	
0.08

	
%

	
 

	
 

	
 

	
 

	
 

	
11,490

	
 

	
0.13

	
%

	
Shrem Fudim Kelner Founders Group II Annex Fund L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
3,276

	
 

	
3,401

	
 

	
6,677

	
 

	
 

	
6,677

	
 

	
0.04

	
%

	
$

	
30,000

	
 

	
22,667

	
 

	
29,344

	
 

	
0.11

	
%

	
Shrem, Fudim Kelner & Co Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
7,656

	
 

	
876

	
 

	
909

	
 

	
1,785

	
 

	
 

	
9,441

	
 

	
0.06

	
%

	
$

	
30,000

	
 

	
22,667

	
 

	
32,108

	
 

	
0.12

	
%

	
Qualitau Ltd.

	
 

	
90,163

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
-

	
 

	
 

	
90,163

	
 

	
0.60

	
%

	
 

	
-

	
 

	
-

	
 

	
90,163

	
 

	
0.34

	
%

	
SVE Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
564,076

	
 

	
270,620

	
 

	
280,948

	
 

	
551,568

	
 

	
 

	
1,115,644

	
 

	
7.35

	
%

	
$

	
1,685,855

	
 

	
1,273,785

	
 

	
2,389,429

	
 

	
9.01

	
%

	
Star Management of Investments No. II (2000) L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
81,475

	
 

	
29,760

	
 

	
30,897

	
 

	
60,657

	
 

	
 

	
142,132

	
 

	
0.94

	
%

	
$

	
221,484

	
 

	
167,347

	
 

	
309,479

	
 

	
1.17

	
%

	
Star Growth Enterprise, a German Civil Law Partnership (with
  limitation of Liability)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
717,176

	
 

	
744,550

	
 

	
1,461,726

	
 

	
 

	
1,461,726

	
 

	
9.69

	
%

	
$

	
1,692,786

	
 

	
1,279,023

	
 

	
2,740,749

	
 

	
10.38

	
%

	
SVM Star Ventures Managmenttgesellschaft mbH Nr. 3

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
66,661

	
 

	
69,205

	
 

	
135,866

	
 

	
 

	
135,866

	
 

	
0.92

	
%

	
$

	
146,381

	
 

	
110,601

	
 

	
246,467

	
 

	
0.94

	
%

	
Genesis Partners II, L.D.C.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
449,869

	
 

	
475,322

	
 

	
493,463

	
 

	
968,785

	
 

	
 

	
1,418,654

	
 

	
9.39

	
%

	
$

	
1,868,977

	
 

	
1,412,147

	
 

	
2,830,801

	
 

	
10.70

	
%

	
Genesis Partners II (Israel) L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
66,572

	
 

	
70,148

	
 

	
72,825

	
 

	
142,973

	
 

	
 

	
209,545

	
 

	
1.39

	
%

	
$

	
275,826

	
 

	
208,406

	
 

	
417,951

	
 

	
1.58

	
%

	
Lehman Brothers European Venture Capital L.P.

	
 

	
56,328

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
 

	
56,328

	
 

	
0.37

	
%

	
 

	
 

	
 

	
-

	
 

	
56,328

	
 

	
0.21

	
%

	
Lehman Brothers Holdings plc (on behalf of pre-tax plan)

	
 

	
107,810

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
 

	
107,810

	
 

	
0.71

	
%

	
 

	
 

	
 

	
-

	
 

	
107,810

	
 

	
0.41

	
%

	
Lehman Brothers Partnership Account 2000/2001, L.P.

	
 

	
48,575

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
 

	
48,575

	
 

	
0.32

	
%

	
 

	
 

	
 

	
-

	
 

	
48,575

	
 

	
0.18

	
%

	
Lehman Brothers Offshore Partnership Account 2000/2001, L.P.

	
 

	
12,598

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
 

	
12,598

	
 

	
0.08

	
%

	
 

	
 

	
 

	
-

	
 

	
12,598

	
 

	
0.05

	
%

	
Orbotech

	
 

	
450,622

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
-

	
 

	
-

	
 

	
 

	
450,622

	
 

	
2.98

	
%

	
 

	
 

	
 

	
-

	
 

	
450,622

	
 

	
1.70

	
%

	
Intel

	
 

	
294,668

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
-

	
 

	
 

	
294,668

	
 

	
1.95

	
%

	
 

	
 

	
 

	
-

	
 

	
294,668

	
 

	
1.11

	
%

	
Poalim Ventures Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
93,841

	
 

	
97,423

	
 

	
191,264

	
 

	
 

	
191,264

	
 

	
1.27

	
%

	
$

	
251,949

	
 

	
190,366

	
 

	
381,630

	
 

	
1.44

	
%

	
Poalim Ventures I Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
144,370

	
 

	
149,880

	
 

	
294,250

	
 

	
 

	
294,250

	
 

	
1.95

	
%

	
$

	
387,613

	
 

	
292,870

	
 

	
587,120

	
 

	
2.22

	
%

	
Poalim Ventures II L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
292,712

	
 

	
303,884

	
 

	
596,596

	
 

	
 

	
596,596

	
 

	
3.95

	
%

	
$

	
785,885

	
 

	
593,793

	
 

	
1,190,389

	
 

	
4.50

	
%

	
Wellington Partners Venture III Technology Fund L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
798,001

	
 

	
828,457

	
 

	
1,626,458

	
 

	
 

	
1,626,458

	
 

	
10.76

	
%

	
$

	
2,142,511

	
 

	
1,618,822

	
 

	
3,245,280

	
 

	
12.27

	
%

	
Amadeus III

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
730,940

	
 

	
758,837

	
 

	
1,489,777

	
 

	
 

	
1,489,777

	
 

	
9.86

	
%

	
$

	
1,942,438

	
 

	
1,467,652

	
 

	
2,957,429

	
 

	
11.18

	
%

	
Amadeus III Affiliates Fund LP

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
14,917

	
 

	
15,486

	
 

	
30,403

	
 

	
 

	
30,403

	
 

	
0.20

	
%

	
$

	
60,075

	
 

	
45,391

	
 

	
75,794

	
 

	
0.29

	
%

	
Financiere Seso S.A

	
 

	
1,596

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
1,596

	
 

	
0.01

	
%

	
 

	
 

	
 

	
 

	
 

	
1,596

	
 

	
0.01

	
%

	
Inter Hightech (1982) Ltd.

	
 

	
718

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
718

	
 

	
0.00

	
%

	
 

	
 

	
 

	
 

	
 

	
718

	
 

	
0.00

	
%

	
Service Providers

	
 

	
-

	
 

	
 

	
 

	
328

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
328

	
 

	
0.00

	
%

	
 

	
 

	
 

	
 

	
 

	
328

	
 

	
0.00

	
%

	
TICI

	
 

	
-

	
 

	
 

	
 

	
878

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
878

	
 

	
0.01

	
%

	
 

	
 

	
 

	
 

	
 

	
878

	
 

	
0.00

	
%

	
Tmura Fund

	
 

	
-

	
 

	
 

	
 

	
50

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
50

	
 

	
0.00

	
%

	
 

	
 

	
 

	
 

	
 

	
50

	
 

	
0.00

	
%

	
ESOP IL Plan(1)(2) (exercise)

	
 

	
3,935

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
3,935

	
 

	
0.03

	
%

	
 

	
 

	
 

	
 

	
 

	
3,935

	
 

	
0.0149

	
%

	
ESOP IL Plan

	
 

	
 

	
 

	
50,310

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
50,310

	
 

	
0.33

	
%

	
 

	
 

	
 

	
 

	
 

	
50,310

	
 

	
0.1902

	
%

	
ESOP US Plan

	
 

	
-

	
 

	
6,050

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
6,050

	
 

	
0.04

	
%

	
 

	
 

	
 

	
 

	
 

	
6,050

	
 

	
0.0229

	
%

	
New ESOP

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
2,584,209

	
 

	
17.10

	
%

	
 

	
 

	
 

	
 

	
 

	
2,584,209

	
 

	
9.7720

	
%

	
Plenus Technologies Ltd

	
 

	
-

	
 

	
 

	
 

	
15,564

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
15,564

	
 

	
0.10

	
%

	
 

	
 

	
 

	
 

	
 

	
15,564

	
 

	
0.06

	
%

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	

	
 

	

	
 

	

	

	
 

	

	
 

	

	
 

	

	
 

	
Total

	
 

	
1,067,013

	
 

	
56,360

	
 

	
16,820

	
 

	
2,386,991

	
 

	
4,415,764

	
 

	
4,584,298

	
 

	
9,000,062

	
 

	
 

	
15,111,455

	
 

	
100.00

	
%

	
$

	
15,000,000

	
 

	
11,333,583

	
 

	
26,445,038

	
 

	
100.00

	
%

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	

	
 

	

	
 

	

	

	
 

	

	
 

	

	
 

	

	
 

*Plenus’ Warrant to purchase 15,564 Ordinary shares (following Closing)
are not included 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Current Cap-Table

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
Name

	
 

	
# Ordinary

	
 

	
#
  Options/Warrants
  to Purchase
  Ordinary

	
 

	
# Preferred
  AA

	
 

	
# Warrants to
  purchase
  Preferred AA

	
 

	
# Preferred
  BB-2
  (including
  15% discount)

	
 

	
# Preferred BB-1

	
 

	
# Warrants
  to purchase
  Preferred
  BB-1

	
 

	
# Preferred  BB-3

	
 

	
# Preferred
  BB-4

	
 

	
# Total Shares
on an as converted basis

	
 

	
% Issued &
  Outstanding
  on an as
  converted
  basis

	
 

	
# Total Fully
  Diluted on an as
  converted basis

	
 

	
% Fully
  Diluted on an as
  converted basic

	
 

	
Holdings
  According  to the  Money

	
 

	
Automatic
  Conversion+  Money
  Allocation+
  85% BB Anti  Dilution

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pitango

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
4,709,678

	
 

	
 

	
332,574

	
 

	
 

	
1,265,234

	
 

	
 

	
2,022,228

	
 

	
 

	
-

	
 

	
 

	
269,466

	
 

	
 

	
-

	
 

	
 

	
8,266,606

	
 

	
 

	
23.15

	
%

	
 

	
8,599,180

	
 

	
 

	
19.24

	
%

	
 

	
24.14

	
%  

	
 

	
2,628,927
  

	
 

	
Shrem, Fudim, Kelner

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
120,803

	
 

	
 

	
6,719

	
 

	
 

	
19,449

	
 

	
 

	
19,088

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
159,340

	
 

	
 

	
0.45

	
%

	
 

	
166,059

	
 

	
 

	
0.37

	
%

	
 

	
0.48

	
% 

	
 

	
45,812
  

	
 

	
Qualitau Ltd.

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
355,522

	
 

	
 

	
26,879

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
355,522

	
 

	
 

	
1.00

	
%

	
 

	
382,401

	
 

	
 

	
0.86

	
%

	
 

	
1.15

	
% 

	
 

	
-

	
 

	
 Star

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
2,545,572

	
 

	
 

	
364,018

	
 

	
 

	
1,749,237

	
 

	
 

	
3,158,844

	
 

	
 

	
-

	
 

	
 

	
269,467

	
 

	
 

	
258,684

	
 

	
 

	
7,981,804

	
 

	
 

	
22.35

	
%  

	
 

	
8,345,822

	
 

	
 

	
18.67

	
%

	
 

	
22.00

	
% 

	
 

	
2,855,367
  

	
 

	
Genesis

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
2,036,460

	
 

	
 

	
291,214

	
 

	
 

	
563,186

	
 

	
 

	
796,366

	
 

	
 

	
-

	
 

	
 

	
1,131,758

	
 

	
 

	
192,987

	
 

	
 

	
4,720,757

	
 

	
 

	
13.22

	
%

	
 

	
5,011,971

	
 

	
 

	
11.21

	
%

	
 

	
13.50

	
% 

	
 

	
1,628,200
  

	
 

	
Lehman Brothers

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
888,430

	
 

	
 

	
167,992

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
888,430

	
 

	
 

	
2.49

	
%

	
 

	
1,056,422

	
 

	
 

	
2.36

	
%

	
 

	
2.87

	
% 

	
 

	
-

	
 

	
Orbotech

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
1,776,860

	
 

	
 

	
335,988

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
1,776,860

	
 

	
 

	
4.98

	
%

	
 

	
2,112,848

	
 

	
 

	
4.73

	
%

	
 

	
5.73

	
% 

	
 

	
-

	
 

	
Intel

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
710,745

	
 

	
 

	
134,395

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
483,559

	
 

	
 

	
60,770

	
 

	
 

	
1,255,074

	
 

	
 

	
3.51

	
%

	
 

	
1,389,469

	
 

	
 

	
3.11

	
%

	
 

	
3.75

	
% 

	
 

	
-

	
 

	
Poalim Ventures

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
2,155,730

	
 

	
 

	
-

	
 

	
 

	
269,466

	
 

	
 

	
109,222

	
 

	
 

	
2,534,418

	
 

	
 

	
7.10

	
%

	
 

	
2,534,418

	
 

	
 

	
5.67

	
%

	
 

	
6.75

	
% 

	
 

	
1,082,110
  

	
 

	
Wellington

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
3,435,558

	
 

	
 

	
363,801

	
 

	
 

	
3,799,359

	
 

	
 

	
10.64

	
%

	
 

	
3,799,359

	
 

	
 

	
8.50

	
%

	
 

	
10.15

	
% 

	
 

	
1,626,460
  

	
 

	
Amadeus

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
3,352,632

	
 

	
 

	
3,352,632

	
 

	
 

	
9.39

	
%

	
 

	
3,352,632

	
 

	
 

	
7.50

	
%

	
 

	
9.49

	
% 

	
 

	
1,520,182
  

	
 

	
Financiere Seso S.A

	
 

	
 

	
159,620

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
159,620

	
 

	
 

	
0.45

	
%

	
 

	
159,620

	
 

	
 

	
0.36

	
%

	
 

	
 

	
 

	
 

	
1,596
  

	
 

	
Inter Hightech (1982) Ltd.

	
 

	
 

	
71,829

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
71,829

	
 

	
 

	
0.20

	
%

	
 

	
71,829

	
 

	
 

	
0.16

	
%

	
 

	
 

	
 

	
 

	
718
  

	
 

	
Service Providers

	
 

	
 

	
-

	
 

	
 

	
32,769

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
0.00

	
%

	
 

	
32,769

	
 

	
 

	
0.07

	
%

	
 

	
 

	
 

	
 

	
-

	
 

	
TICI

	
 

	
 

	
-

	
 

	
 

	
87,791

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
0.00

	
%

	
 

	
87,791

	
 

	
 

	
0.20

	
%

	
 

	
 

	
 

	
 

	
-

	
 

	
Tmura Fund

	
 

	
 

	
-

	
 

	
 

	
5,000

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
0.00

	
%

	
 

	
5,000

	
 

	
 

	
0.01

	
%

	
 

	
 

	
 

	
 

	
-

	
 

	
ESOP IL Plan(1)(2) (exercise)

	
 

	
 

	
393,500

	
 

	
 

	
5,031,003

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
393,500

	
 

	
 

	
1.10

	
%

	
 

	
5,424,503

	
 

	
 

	
12.14

	
%

	
 

	
 

	
 

	
 

	
3,935
  

	
 

	
ESOP IL Plan

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ESOP US Plan

	
 

	
 

	
-

	
 

	
 

	
605,000

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
0.00

	
%

	
 

	
605,000

	
 

	
 

	
1.35

	
%

	
 

	
 

	
 

	
 

	
-

	
 

	
New ESOP

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Plenus Technologies Ltd

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
1,556,437

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
0.00

	
%

	
 

	
1,556,437

	
 

	
 

	
3.48

	
%

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	
Total 

	
 

	
 

	
624,949

	
 

	
 

	
5,761,563

	
 

	
 

	
13,144,070

	
 

	
 

	
1,659,779

	
 

	
 

	
3,597,106

	
 

	
 

	
8,152,256

	
 

	
 

	
1,556,437

	
 

	
 

	
5,859,274

	
 

	
 

	
4,338,096

	
 

	
 

	
35,715,751

	
 

	
 

	
100

	
% 

	
 

	
44,693,530

	
 

	
 

	
100

	
% 

	
 

	
100.00

	
% 

	
 

	
11,393,307 

	
 

	
 

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ReCap  

	
 

	
New Round

	
 

	
 

	
 

	

	
 

	

	
 

	
Name

	
 

	
Common

	
 

	
# Warrants to  purchase  Preferred AA  

	
 

	
# Options/Warrants to  Purchase Ordinary

	
 

	
Common A

	
 

	
Common B

	
 

	
Common B
  85% anti-
  dilution shares

	
 

	
Total
  Common B

	
 

	
Total holdings

	
 

	
% Fully
  Diluted on an as  converted
  basis

	
 

	
New Round $

	
 

	
Preferred A-1

	
 

	
# Total  Fully
  Diluted on an
  as converted
  basis

	
 

	
% Fully  Diluted on an
  as converted
  basis

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pitango

	
 

	
 

	
 

	
 

	
 

	
332,574

	
 

	
 

	
 

	
 

	
 

	
1,194,363

	
 

	
 

	
703,850

	
 

	
 

	
730,714

	
 

	
 

	
1,434,564

	
 

	
 

	
2,628,927

	
 

	
 

	
17.40

	
%

	
$

	
3,448,220

	
 

	
 

	
2,605,382

	
 

	
 

	
5,234,309

	
 

	
 

	
19.79

	
%

	
Shrem, Fudim, Kelner

	
 

	
 

	
 

	
 

	
 

	
6,719

	
 

	
 

	
 

	
 

	
 

	
30,636

	
 

	
 

	
7,446

	
 

	
 

	
7,730

	
 

	
 

	
15,176

	
 

	
 

	
45,812

	
 

	
 

	
0.30

	
%

	
$

	
90,000

	
 

	
 

	
68,002

	
 

	
 

	
113,814

	
 

	
 

	
0.43

	
%

	
Qualitau Ltd.

	
 

	
 

	
90,163

	
 

	
 

	
26,879

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
90,163

	
 

	
 

	
0.60

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
90,163

	
 

	
 

	
0.34

	
%

	
 Star

	
 

	
 

	
 

	
 

	
 

	
364,018

	
 

	
 

	
 

	
 

	
 

	
645,551

	
 

	
 

	
1,084,217

	
 

	
 

	
1,125,599

	
 

	
 

	
2,209,816

	
 

	
 

	
2,855,367

	
 

	
 

	
18.90

	
%

	
$

	
3,746,506

	
 

	
 

	
2,830,759

	
 

	
 

	
5,686,126

	
 

	
 

	
21.50

	
%

	
Genesis

	
 

	
 

	
 

	
 

	
 

	
291,214

	
 

	
 

	
 

	
 

	
 

	
516,441

	
 

	
 

	
545,470

	
 

	
 

	
566,289

	
 

	
 

	
1,111,759

	
 

	
 

	
1,628,200

	
 

	
 

	
10.77

	
%

	
$

	
2,144,803

	
 

	
 

	
1,620,555

	
 

	
 

	
3,248,755

	
 

	
 

	
12.28

	
%

	
Lehman Brothers

	
 

	
 

	
225,311

	
 

	
 

	
167,992

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
225,311

	
 

	
 

	
1.49

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
225,311

	
 

	
 

	
0.85

	
%

	
Orbotech

	
 

	
 

	
450,622

	
 

	
 

	
335,988

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
450,622

	
 

	
 

	
2.98

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
450,622

	
 

	
 

	
1.70

	
%

	
Intel

	
 

	
 

	
294,668

	
 

	
 

	
134,395

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
294,668

	
 

	
 

	
1.95

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
294,668

	
 

	
 

	
1.11

	
%

	
Poalim Ventures

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
530,923

	
 

	
 

	
551,187

	
 

	
 

	
1,082,110

	
 

	
 

	
1,082,110

	
 

	
 

	
7.16

	
%

	
$

	
1,425,447

	
 

	
 

	
1,077,029

	
 

	
 

	
2,159,139

	
 

	
 

	
8.16

	
%

	
Wellington

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
798,001

	
 

	
 

	
828,459

	
 

	
 

	
1,626,460

	
 

	
 

	
1,626,460

	
 

	
 

	
10.76

	
%

	
$

	
2,142,511

	
 

	
 

	
1,618,824

	
 

	
 

	
3,245,284

	
 

	
 

	
12.27

	
%

	
Amadeus

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
745,857

	
 

	
 

	
774,325

	
 

	
 

	
1,520,182

	
 

	
 

	
1,520,182

	
 

	
 

	
10.06

	
%

	
$

	
2,002,513

	
 

	
 

	
1,513,045

	
 

	
 

	
3,033,227

	
 

	
 

	
11.47

	
%

	
Financiere Seso S.A

	
 

	
 

	
1,596

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
1,596

	
 

	
 

	
0.01

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1,596

	
 

	
 

	
0.01

	
%

	
Inter Hightech (1982) Ltd.

	
 

	
 

	
718

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
718

	
 

	
 

	
0.00

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
718

	
 

	
 

	
0.00

	
%

	
Service Providers

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
328

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
328

	
 

	
 

	
0.00

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
328

	
 

	
 

	
0.00

	
%

	
TICI

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
878

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
878

	
 

	
 

	
0.01

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
878

	
 

	
 

	
0.00

	
%

	
Tmura Fund

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
50

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
50

	
 

	
 

	
0.00

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
50

	
 

	
 

	
0.00

	
%

	
ESOP IL Plan(1)(2) (exercise)

	
 

	
 

	
3,935

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
3,935

	
 

	
 

	
0.03

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
3,935

	
 

	
 

	
0.01

	
%

	
ESOP IL Plan

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
50,310

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
50,310

	
 

	
 

	
0.33

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
50,310

	
 

	
 

	
0.19

	
%

	
ESOP US Plan

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
6,050

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
6,050

	
 

	
 

	
0.04

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
6,050

	
 

	
 

	
0.02

	
%

	
New ESOP

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2,584,211 

	
 

	
 

	
17.10 

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2,584,211

	
 

	
 

	
9.77

	
%

	
Plenus Technologies Ltd

	
 

	
 

	
-

	
 

	
 

	
-

	
 

	
 

	
15,564

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
 

	
15,564

	
 

	
 

	
0.10

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
15,564

	
 

	
 

	
0.06

	
%

	
 

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	
Total

	
 

	
 

	
1,067,013

	
 

	
 

	
1,659,779

	
 

	
 

	
73,180

	
 

	
 

	
2,386,991

	
 

	
 

	
4,415,764

	
 

	
 

	
4,584,303

	
 

	
 

	
9,000,067

	
 

	
 

	
15,111,462

	
 

	
 

	
100.00

	
% 

	
$

	
15,000,000

	
 

	
 

	
11,333,596

	
 

	
 

	
26,445,058

	
 

	
 

	
100.00

	
% 

	
 

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

	

	

	
 

Schedule 2.3  

Negevtech –
Officers and Directors  

Negevtech - Directors

Eran Gersht

Amichai Steinberg

Yaffa Krindel

Aaron Mankovsky

Bart Markus

Eddy Shalev

Rafi Yizhar

Jaron Lotan 

Negevtech Structure:  

Negevtech Ltd. - Parent Company  

12 Hamada St.

Rehovot, Israel 76703

Tel: 972 89312222

Fax: 972 89366050

		
		
		
		
		
	Dr. Rivi Sherman	President
	Glyn Davies	Corporate VP Marketing
	Oz Desheh	CFO
	Mordechai Gatenio	VP Operations
	Yuval Levin	VP Sales
	Michal Rozenkrantz	VP Human Resources
	Dvir Harmelech	VP R&D
	Shmuel Gov	VP Customer Support
	Ehud Tirosh	VP CTO

Negevtech Inc.

2880 Lakeside Drive, Suite 131

Santa Clara, CA 95054

Phone: 408.486.9831

Fax: 408.486.9832 

Directors:

Oz Desheh

Rivi Sherman

Officers:

Glyn Davies - President

Offices:

Santa Clara: see address above

Boise: Southwind Center

6013 Overland Rd., Ste 102

Boise, ID 83709

USA

Austin: 3019 Alvin Devane, Suite 160,

Austin, TX 78741

Negevtech PTE. Ltd. (Singapore)

8 Cross Street

#11-00 PwC Building

Singapore 048424

Directors:

Oz Desheh

Chen Wen Woam Angela

Officers:

Oz Desheh

Negevtech GmbH Dresden

Manfred-von-Ardenne-Ring 20, Haus E

01099 Dresden

Fon +49 351 89 25 730

Fax + 49 351 89 25 738

Directors:

Oz Desheh

Markus Kindler

Officers:

Markus Kindler  

Negevtech Japan

3-1-1004, Otsuka 2-chome,

Bunkyo-ku, Tokyo

Japan

Tel: +81 (904) 013 5962

Directors:

Oz Desheh

Rivi Sherman

Officers:

Roi Shefts - Business Manager

Negevtech Korea Co., Ltd.

27th FI, Korea Trade Tower Center

159-1 Samsung-Dong

Kangman-ku, Seoul 135-729

Korea

Directors:

Oz Desheh

Rivi Sherman

Internal Auditor:

Michal Levi

Negevtech Taiwan

68F, Taipei 101 Tower,

No. 7, Sec. 5, Xinyi Road, Taipei,

11049, Taiwan, R.O.C.

Tel: (0)886-2-8101-6666

Fax: (0)886-2-8101-6667

Directors:

Oz Desheh

Officers:

Yanki Avni - Business Manager 

Schedule 2.8  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
NT file name

	
 

	
 

	
Family

	
 

	
 

	
Country

	
 

	
 

	
#

	
 

	
 

	
Official No.

	
 

	
 

	
Title

	
 

	
 

	
Prior date

	
 

	
 

	
Filing date

	
 

	
 

	
Issue date

	
 

	
 

	
Status

	
 

	
 

	
Attorney

	
 

	
 

	
Attorney file name

	
 

	
 

	
Inventors

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0001-US-01

	
 

	
 

	
1

	
 

	
 

	
.US

	
 

	
 

	
1

	
 

	
 

	
6,693,664

	
 

	
 

	
Method and system for fast
  on-line electro-optical detection of wafer defects

	
 

	
 

	
30/06/1999

	
 

	
 

	
18/06/2002

	
 

	
 

	
17/02/2004

	
 

	
 

	
Issued

	
 

	
 

	
STC

	
 

	
 

	
44623

	
 

	
 

	
Gad Neumann

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
[***]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0001-EP-01

	
 

	
 

	
1

	
 

	
 

	
EP

	
 

	
 

	
1

	
 

	
 

	
EP1439385

	
 

	
 

	
Method and system for fast
  on-line electro-optical detection of wafer defects

	
 

	
 

	
15/01/2003

	
 

	
 

	
15/01/2003

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
46509

	
 

	
 

	
Gad Neumann

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0001-IL-01

	
 

	
 

	
1

	
 

	
 

	
IL

	
 

	
 

	
1

	
 

	
 

	
153977

	
 

	
 

	
Method and system for fast
  on-line electro-optical detection of wafer defects

	
 

	
 

	
15/01/2003

	
 

	
 

	
15/01/2003

	
 

	
 

	
5/07/2006

	
 

	
 

	
Issued

	
 

	
 

	
STC

	
 

	
 

	
47513

	
 

	
 

	
Gad Neumann

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0001-JP-01

	
 

	
 

	
1

	
 

	
 

	
JP

	
 

	
 

	
1

	
 

	
 

	
2003-7400

	
 

	
 

	
Method and system for fast
  on-line electro-optical detection of wafer defects

	
 

	
 

	
15/01/2003

	
 

	
 

	
15/01/2003

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
47606

	
 

	
 

	
Gad Neumann

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0001-KR-01

	
 

	
 

	
1

	
 

	
 

	
KR

	
 

	
 

	
1

	
 

	
 

	
2003-2671

	
 

	
 

	
Method and system for fast
  on-line electro-optical detection of wafer defects

	
 

	
 

	
15/01/2003

	
 

	
 

	
15/01/2003

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
47607

	
 

	
 

	
Gad Neumann

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0001-TW_01

	
 

	
 

	
1

	
 

	
 

	
TW

	
 

	
 

	
1

	
 

	
 

	
92100777

	
 

	
 

	
Method and system for fast
  on-line electro-optical detection of wafer defects

	
 

	
 

	
15/01/2003

	
 

	
 

	
15/01/2003

	
 

	
 

	
11/11/2006

	
 

	
 

	
Issued

	
 

	
 

	
STC

	
 

	
 

	
46793

	
 

	
 

	
Gad Neumann

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0002-US-01

	
 

	
 

	
2

	
 

	
 

	
.US

	
 

	
 

	
1

	
 

	
 

	
10/345,097

	
 

	
 

	
System for detection of
  wafer defects

	
 

	
 

	
15/01/2003

	
 

	
 

	
15/01/2003

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
44420

	
 

	
 

	
Dov Furman, Gad Neumann,
  Noam Dotan, Ram Segal, Shai Silberstein

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0002-US-02

	
 

	
 

	
2

	
 

	
 

	
.US

	
 

	
 

	
2

	
 

	
 

	
11/476,342

	
 

	
 

	
System for detection of
  wafer defects

	
 

	
 

	
15/01/2003

	
 

	
 

	
28/06/2006

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
55071

	
 

	
 

	
Dov Furman, Gad Neumann,
  Noam Dotan, Ram Segal, Shai Silberstein

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0002-US-03

	
 

	
 

	
2

	
 

	
 

	
.US

	
 

	
 

	
3

	
 

	
 

	
11/476,356

	
 

	
 

	
System for detection of
  wafer defects

	
 

	
 

	
15/01/2003

	
 

	
 

	
28/06/2006

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
55072

	
 

	
 

	
Dov Furman, Gad Neumann,
  Noam Dotan, Ram Segal, Shai Silberstein

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0002-US-04

	
 

	
 

	
2

	
 

	
 

	
.US

	
 

	
 

	
4

	
 

	
 

	
11/476,358

	
 

	
 

	
System for detection of
  wafer defects

	
 

	
 

	
15/01/2003

	
 

	
 

	
28/06/2006

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
55147

	
 

	
 

	
Dov Furman, Gad Neumann,
  Noam Dotan, Ram Segal, Shai Silberstein

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0002-US-05

	
 

	
 

	
2

	
 

	
 

	
.US

	
 

	
 

	
5

	
 

	
 

	
11/476,322

	
 

	
 

	
System for detection of
  wafer defects

	
 

	
 

	
15/01/2003

	
 

	
 

	
28/06/2006

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
55070

	
 

	
 

	
Dov Furman, Gad Neumann,
  Noam Dotan, Ram Segal, Shai Silberstein

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0002-US-06

	
 

	
 

	
2

	
 

	
 

	
.US

	
 

	
 

	
6

	
 

	
 

	
11/524,684

	
 

	
 

	
System for detection of
  wafer defects

	
 

	
 

	
15/01/2003

	
 

	
 

	
21/09/2006

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
55247

	
 

	
 

	
Dov Furman, Gad Neumann,
  Noam Dotan, Ram Segal, Shai Silberstein

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0002-US-07

	
 

	
 

	
2

	
 

	
 

	
.US

	
 

	
 

	
7

	
 

	
 

	
7,180,586

	
 

	
 

	
System for detection of
  wafer defects

	
 

	
 

	
15/01/2003

	
 

	
 

	
23/12/2004

	
 

	
 

	
20/02/2007

	
 

	
 

	
Issued

	
 

	
 

	
STC

	
 

	
 

	
53751

	
 

	
 

	
Gad Neumann & Noam
  Dotan

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

*** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
NT file name

	
 

	
 

	
Family

	
 

	
 

	
Country

	
 

	
 

	
#

	
 

	
 

	
Official No.

	
 

	
 

	
Title

	
 

	
 

	
Prior date

	
 

	
 

	
Filing date

	
 

	
 

	
Issue date

	
 

	
 

	
Status

	
 

	
 

	
Attorney

	
 

	
 

	
Attorney file name

	
 

	
 

	
Inventors

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0002-EP-01

	
 

	
 

	
2

	
 

	
 

	
EP

	
 

	
 

	
1

	
 

	
 

	
EP1606605

	
 

	
 

	
System for detection of
  wafer defects

	
 

	
 

	
15/01/2003

	
 

	
 

	
11/01/2004

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
55062

	
 

	
 

	
Dov Furman, Gad Neumann,
  Noam Dotan, Ram Segal, Shai Silberstein

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0002-KR-01

	
 

	
 

	
2

	
 

	
 

	
KR

	
 

	
 

	
1

	
 

	
 

	
2005-7013165

	
 

	
 

	
System for detection of
  wafer defects

	
 

	
 

	
15/01/2003

	
 

	
 

	
15/07/2005

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
55065

	
 

	
 

	
Gad Neumann

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
[***]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0002-WO-01

	
 

	
 

	
2

	
 

	
 

	
WO

	
 

	
 

	
1

	
 

	
 

	
PCT/IL04/000023

	
 

	
 

	
System for detection of
  wafer defects

	
 

	
 

	
15/01/2003

	
 

	
 

	
11/01/2004

	
 

	
 

	
-

	
 

	
 

	
Filed

	
 

	
 

	
STC

	
 

	
 

	
50446

	
 

	
 

	
Dov Furman, Gad Neumann,
  Noam Dotan, Ram Segal, Shai Silberstein

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0003-US-01

	
 

	
 

	
3

	
 

	
 

	
.US

	
 

	
 

	
1

	
 

	
 

	
6,892,013

	
 

	
 

	
Fiber optical illumination
  system

	
 

	
 

	
15/01/2003

	
 

	
 

	
15/01/2003

	
 

	
 

	
10/05/2005

	
 

	
 

	
Issued

	
 

	
 

	
STC

	
 

	
 

	
47667

	
 

	
 

	
Dov Furman, Gad Neumann,
  Noam Dotan

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0003-US-02

	
 

	
 

	
3

	
 

	
 

	
.US

	
 

	
 

	
2

	
 

	
 

	
11/096,873

	
 

	
 

	
Fiber optical illumination
  system

	
 

	
 

	
15/01/2003

	
 

	
 

	
1/04/2005

	
 

	
 

	
-

	
 

	
 

	
Allowed

	
 

	
 

	
STC

	
 

	
 

	
54590

	
 

	
 

	
Dov Furman

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0003-US-03

	
 

	
 

	
3

	
 

	
 

	
.US

	
 

	
 

	
3

	
 

	
 

	
11/709,019

	
 

	
 

	
Fiber optical illumination
  system

	
 

	
 

	
15/01/2003

	
 

	
 

	
-

	
 

	
 

	
 

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
60473

	
 

	
 

	
Dov Furman

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0003-EP-01

	
 

	
 

	
3

	
 

	
 

	
EP

	
 

	
 

	
1

	
 

	
 

	
EP1588210

	
 

	
 

	
Fiber optical illumination
  system

	
 

	
 

	
15/01/2003

	
 

	
 

	
11/12/2004

	
 

	
 

	
 

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
55106

	
 

	
 

	
Dov Furman, Gad Neumann,
  Noam Dotan

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0003-KR-01

	
 

	
 

	
3

	
 

	
 

	
KR

	
 

	
 

	
1

	
 

	
 

	
2005-7013118

	
 

	
 

	
Fiber optical illumination
  system

	
 

	
 

	
15/01/2003

	
 

	
 

	
15/06/2005

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
55109

	
 

	
 

	
Dov Furman, Gad Neumann,
  Noam Dotan

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0003-TW-01

	
 

	
 

	
3

	
 

	
 

	
TW

	
 

	
 

	
1

	
 

	
 

	
93101034

	
 

	
 

	
Fiber optical illumination
  system

	
 

	
 

	
15/01/2003

	
 

	
 

	
11/12/2004

	
 

	
 

	
12/2005

	
 

	
 

	
Issued

	
 

	
 

	
STC

	
 

	
 

	
50532

	
 

	
 

	
Dov Furman, Gad Neumann,
  Noam Dotan

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0003-WO-01

	
 

	
 

	
3

	
 

	
 

	
WO

	
 

	
 

	
1

	
 

	
 

	
PCT/IL04/000022

	
 

	
 

	
Fiber optical illumination
  system

	
 

	
 

	
15/01/2003

	
 

	
 

	
11/12/2004

	
 

	
 

	
 

	
 

	
 

	
Filed

	
 

	
 

	
STC

	
 

	
 

	
50445

	
 

	
 

	
Dov Furman, Gad Neumann,
  Noam Dotan

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0004-US-01

	
 

	
 

	
4

	
 

	
 

	
US-Prov

	
 

	
 

	
1

	
 

	
 

	
60/587,675

	
 

	
 

	
Multimode inspection method
  and apparatus

	
 

	
 

	
12/07/2004

	
 

	
 

	
12/07/2004

	
 

	
 

	
-

	
 

	
 

	
Filed

	
 

	
 

	
STC

	
 

	
 

	
?

	
 

	
 

	
Dov Furman, Noam Dotan,
  Efraim Miklatzky

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0004-US-02

	
 

	
 

	
4

	
 

	
 

	
.US

	
 

	
 

	
2

	
 

	
 

	
11/176,844

	
 

	
 

	
Multimode inspection method
  and apparatus

	
 

	
 

	
12/07/2004

	
 

	
 

	
6/07/2005

	
 

	
 

	
-

	
 

	
 

	
Allowed

	
 

	
 

	
STC

	
 

	
 

	
53885

	
 

	
 

	
Dov Furman, Noam Dotan,
  Efraim Miklatzky

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0004-EP-01

	
 

	
 

	
4

	
 

	
 

	
EP

	
 

	
 

	
1

	
 

	
 

	
WO2006006148

	
 

	
 

	
Multimode inspection method
  and apparatus

	
 

	
 

	
12/07/2004

	
 

	
 

	
17/01/2007

	
 

	
 

	
 

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
60474

	
 

	
 

	
Dov Furman, Noam Dotan,
  Efraim Miklatzky

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0004-WO-01

	
 

	
 

	
4

	
 

	
 

	
WO

	
 

	
 

	
1

	
 

	
 

	
PCT/IL2005/000708

	
 

	
 

	
Multimode inspection method
  and apparatus

	
 

	
 

	
12/07/2004

	
 

	
 

	
4/06/2005

	
 

	
 

	
 

	
 

	
 

	
Filed

	
 

	
 

	
STC

	
 

	
 

	
53886

	
 

	
 

	
Dov Furman, Noam Dotan,
  Efraim Miklatzky

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

*** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
NT file name

	
 

	
 

	
Family

	
 

	
 

	
Country

	
 

	
 

	
#

	
 

	
 

	
Official No.

	
 

	
 

	
Title

	
 

	
 

	
Prior date

	
 

	
 

	
Filing date

	
 

	
 

	
Issue date

	
 

	
 

	
Status

	
 

	
 

	
Attorney

	
 

	
 

	
Attorney file name

	
 

	
 

	
Inventors

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0006-US-01

	
 

	
 

	
6

	
 

	
 

	
.US

	
 

	
 

	
1

	
 

	
 

	
11/069,712

	
 

	
 

	
Method and apparatus for
  detecting defects in wafer

	
 

	
 

	
28/02/2005

	
 

	
 

	
28/02/2005

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
53603

	
 

	
 

	
Erez Sali, Tomer Yanir,
  Mark Wagner, Noam Dotan, Yuval Dorfan, Ran Zaslavsky

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0006-EP-01

	
 

	
 

	
6

	
 

	
 

	
EP

	
 

	
 

	
1

	
 

	
 

	
EP1696227

	
 

	
 

	
Method and apparatus for
  detecting defects in wafer

	
 

	
 

	
28/02/2005

	
 

	
 

	
28/02/2006

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
57768

	
 

	
 

	
Erez Sali, Tomer Yanir,
  Mark Wagner, Noam Dotan, Yuval Dorfan, Ran Zaslavsky

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
[***]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0007-US-01

	
 

	
 

	
7

	
 

	
 

	
.US

	
 

	
 

	
1

	
 

	
 

	
11/068,711

	
 

	
 

	
Method and apparatus for
  detecting defects in wafers including alignment of the wafer images so as to
  induce the same smear in all images

	
 

	
 

	
28/02/2005

	
 

	
 

	
28/02/2005

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
STC

	
 

	
 

	
53604

	
 

	
 

	
Yuval Dorfan, Ran
  Zaslavsky, Mark Wagner, Dov Furman, Shai Silberstein

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
[***]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0008-US-01

	
 

	
 

	
8

	
 

	
 

	
.US

	
 

	
 

	
1

	
 

	
 

	
11/410,276

	
 

	
 

	
Printed Fourier Filtering
  In Optical Inspection

	
 

	
 

	
24/04/2006

	
 

	
 

	
24/04/2006

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
D&M

	
 

	
 

	
NRI-1

	
 

	
 

	
Dan Fuchs, Shai Silberstein

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0009-US-01

	
 

	
 

	
9

	
 

	
 

	
US-Prov

	
 

	
 

	
1

	
 

	
 

	
60/808,816

	
 

	
 

	
Wafer Inspection Using
  Short-Pulsed Continuous Broadband Illumination

	
 

	
 

	
26/05/2006

	
 

	
 

	
26/05/2006

	
 

	
 

	
-

	
 

	
 

	
Provisional

	
 

	
 

	
D&M

	
 

	
 

	
NRI-2

	
 

	
 

	
Dov Furman, Shai Silbertein

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0009-US-02

	
 

	
 

	
9

	
 

	
 

	
.US

	
 

	
 

	
2

	
 

	
 

	
11/684,191

	
 

	
 

	
Wafer Inspection Using
  Short-Pulsed Continuous Broadband Illumination

	
 

	
 

	
26/05/2006

	
 

	
 

	
9/03/2007

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
D&M

	
 

	
 

	
NRI-2

	
 

	
 

	
Dov Furman, Shai Silbertein

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0009-EP-01

	
 

	
 

	
9

	
 

	
 

	
EP

	
 

	
 

	
1

	
 

	
 

	
N/A

	
 

	
 

	
Wafer Inspection Using
  Short-Pulsed Continuous Broadband Illumination

	
 

	
 

	
26/05/2006

	
 

	
 

	
N/A

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
D&M

	
 

	
 

	
NRI-2-EP

	
 

	
 

	
Dov Furman, Shai Silbertein

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
[***]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0010-US-01

	
 

	
 

	
10

	
 

	
 

	
.US

	
 

	
 

	
1

	
 

	
 

	
11/503,859

	
 

	
 

	
Speckle Reduction Using a
  Fiber Bundle and Light Guide

	
 

	
 

	
14/08/2006

	
 

	
 

	
14/08/2006

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
D&M

	
 

	
 

	
NRI-3

	
 

	
 

	
Dov Furman, Daniel Mandelik

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
0011-US-01

	
 

	
 

	
11

	
 

	
 

	
.US

	
 

	
 

	
1

	
 

	
 

	
11/590,650

	
 

	
 

	
Defect Detection through
  Image Comparison Using Relative Measures

	
 

	
 

	
31/10/2006

	
 

	
 

	
31/10/2006

	
 

	
 

	
-

	
 

	
 

	
Pending

	
 

	
 

	
D&M

	
 

	
 

	
NRI-4

	
 

	
 

	
Erez Sali, Oren Cohen

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 0012-US-01 

	
 

	
 

	
 12 

	
 

	
 

	
 US-Prov  

	
 

	
 

	
 1 

	
 

	
 

	
 60/861,303 

	
 

	
 

	
 Image splitting in Optical Inspection Systems 

	
 

	
 

	
 28/11/2006 

	
 

	
 

	
 28/11/2006 

	
 

	
 

	
 - 

	
 

	
 

	
 Provisional 

	
 

	
 

	
 D&M 

	
 

	
 

	
 NRI-7 

	
 

	
 

	
 Dov Furman, Shai Silbertein 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
[***]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
[***]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
[***]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

*** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

	
 

	
 

	
 

	
 

	
 

	
Attorney

	
 

	
Attorney file name

	
 

	
NT file name

	
 

	
 

	
 

	
 

	
 

	
D&M

	
 

	
NRI-1

	
 

	
0008-US-01

	
D&M

	
 

	
NRI-2 (Provisional)

	
 

	
0009-US-01

	
D&M

	
 

	
NRI-2

	
 

	
0009-US-02

	
D&M

	
 

	
NRI-3

	
 

	
0010-US-01

	
D&M

	
 

	
NRI-4

	
 

	
0011-US-01

	
D&M

	
 

	
NRI-5

	
 

	
0013-US-01

	
D&M

	
 

	
NRI-7

	
 

	
0012-US-01

	
D&M

	
 

	
NRI-8

	
 

	
0014-US-01

	
D&M

	
 

	
NRI-9

	
 

	
0015-US-01

	
STC

	
 

	
44420

	
 

	
0002-US-01

	
STC

	
 

	
44623

	
 

	
0001-US-01

	
STC

	
 

	
46509

	
 

	
0001-EP-01

	
STC

	
 

	
46793

	
 

	
0001-TW_01

	
STC

	
 

	
47513

	
 

	
0001-IL-01

	
STC

	
 

	
47606

	
 

	
0001-JP-01

	
STC

	
 

	
47607

	
 

	
0001-KR-01

	
STC

	
 

	
47667

	
 

	
0003-US-01

	
STC

	
 

	
47776

	
 

	
0001-CN-01

	
STC

	
 

	
50445

	
 

	
0003-WO-01

	
STC

	
 

	
50446

	
 

	
0002-WO-01

	
STC

	
 

	
50532

	
 

	
0003-TW-01

	
STC

	
 

	
50533

	
 

	
0002-TW-01

	
STC

	
 

	
53603

	
 

	
0006-US-01

	
STC

	
 

	
53604

	
 

	
0007-US-01

	
STC

	
 

	
53751

	
 

	
0002-US-07

	
STC

	
 

	
53885

	
 

	
0004-US-02

	
STC

	
 

	
53886

	
 

	
0004-WO-01

	
STC

	
 

	
54590

	
 

	
0003-US-02

	
STC

	
 

	
55062

	
 

	
0002-EP-01

	
STC

	
 

	
55065

	
 

	
0002-KR-01

	
STC

	
 

	
55070

	
 

	
0002-US-05

	
STC

	
 

	
55071

	
 

	
0002-US-02

	
STC

	
 

	
55072

	
 

	
0002-US-03

	
STC

	
 

	
55106

	
 

	
0003-EP-01

	
STC

	
 

	
55109

	
 

	
0003-KR-01

	
STC

	
 

	
55147

	
 

	
0002-US-04

	
STC

	
 

	
55247

	
 

	
0002-US-06

	
STC

	
 

	
57767

	
 

	
0007-IL-01

	
STC

	
 

	
57768

	
 

	
0006-EP-01

	
STC

	
 

	
57769

	
 

	
0006-IL-01

	
STC

	
 

	
60473

	
 

	
0003-US-03

	
STC

	
 

	
60474

	
 

	
0004-EP-01

	
STC

	
 

	
?

	
 

	
0004-US-01

Schedule 2.8(e)  

Founders  

Gadi Neumann 

David Alumot 

Schedule 2.18  

List of Material Tangible
Properties and Assets  

[***]

*** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

Schedule 2.19  

NEGEVTECH LTD.

INTERIM REPORT 

AS OF MARCH 31, 2007

 (Unaudited)

 TABLE OF CONTENTS 

	
 

	
 

	
 

	
   

	
   

	
 Page 

	
   

	
   

	
   

	
 AUDITORS’ REVIEW REPORT 

	
   

	
 2 

	
 CONDENSED CONSOLIDATED INTERIM FINANCIAL
  STATEMENTS - IN U.S. DOLLARS ($): 

	
   

	
   

	
 Balance sheets 

	
   

	
 3 

	
 Statements of operations 

	
   

	
 4 

	
 Statements of changes in shareholders’
  equity 

	
   

	
 5-6 

	
 Statements of cash flows 

	
   

	
 7 

	
 Notes to financial statements 

	
   

	
 8-9 

	
 

	

	

	

 May __, 2007 

 The Board of
Directors of 

Negevtech Ltd. 

 Dear Sirs, 

	
 

	
 

	
 

	
 Re: 

	
   

	
 Review of
  condensed unaudited interim financial Statements for the three month period
  ended March 31, 2007 

 At your
request, we have reviewed the condensed consolidated interim balance sheet of
Negevtech Ltd. (hereafter - the Company) and its subsidiaries as of March 31,
2007 and the condensed consolidated statements of operations, changes in
shareholders’ equity and cash flows for the three month period ended March 31,
2007. 

 Our review was
performed in accordance with the procedures prescribed by the Institute of
Certified Public Accountants in Israel. Inter alia, these procedures included:
reading of the aforementioned financial statements, reading of minutes of
meetings of shareholders and the board of directors, and making inquiries of
Company officers responsible for financial and accounting matters. 

 Since our
review was limited in scope and did not constitute an audit in accordance with
generally accepted auditing standards, we do not express an opinion on the
abovementioned condensed interim financial statements. 

 During our
review, nothing came to our attention that indicated that significant
adjustments should be made in the said interim condensed financial statements
in order for them to be considered as having been prepared in accordance with
generally accepted accounting principles. 

 Sincerely
yours, 

 Kesselman
& Kesselman

Certified Public Accountants (Isr.) 

2

 NEGEVTECH LTD. 

 CONDENSED CONSOLIDATED BALANCE SHEETS 

 AS OF MARCH 31, 2007 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
 March 31 

	
   

	
 December 31,
2006 

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
 2007 

	
   

	
 2006 

	
   

	
   

	
   

	
   

	

	
   

	

	
   

	

	
   

	
   

	
   

	
 (Unaudited) 

	
   

	
 (Audited) 

	
   

	
   

	
   

	

	
   

	

	
   

	
   

	
   

	
 U.S. dollars in thousands 

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
   

	
 A s s e t s 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 CURRENT ASSETS: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Cash and cash equivalents 

	
   

	
   

	
 334 

	
   

	
   

	
 10,400 

	
   

	
   

	
 5,716 

	
   

	
 Accounts receivable: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Trade 

	
   

	
   

	
 2,969 

	
   

	
   

	
 3,794 

	
   

	
   

	
 6,239 

	
   

	
 Government of Israel 

	
   

	
   

	
 1,060 

	
   

	
   

	
 1,146 

	
   

	
   

	
 777 

	
   

	
 Other 

	
   

	
   

	
 993 

	
   

	
   

	
 1,919 

	
   

	
   

	
 808 

	
   

	
 Inventories 

	
   

	
   

	
 21,754 

	
   

	
   

	
 18,140 

	
   

	
   

	
 21,855 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 T o t a l  current assets 

	
   

	
   

	
 27,110 

	
   

	
   

	
 35,399 

	
   

	
   

	
 35,395 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 NON-CURRENT ASSETS: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Restricted deposits 

	
   

	
   

	
 197 

	
   

	
   

	
 1,200 

	
   

	
   

	
 552 

	
   

	
 Long-term prepaid expenses 

	
   

	
   

	
 362 

	
   

	
   

	
 683 

	
   

	
   

	
 491 

	
   

	
 Severance pay funds 

	
   

	
   

	
 1,397 

	
   

	
   

	
 818 

	
   

	
   

	
 1,215 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 T o t a l  non-current assets 

	
   

	
   

	
 1,956 

	
   

	
   

	
 2,701 

	
   

	
   

	
 2,258 

	
   

	
 FIXED ASSETS: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Cost 

	
   

	
   

	
 17,989 

	
   

	
   

	
 11,534 

	
   

	
   

	
 15,950 

	
   

	
 L e s s - accumulated depreciation 

	
   

	
   

	
 8,107 

	
   

	
   

	
 4,183 

	
   

	
   

	
 7,217 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
   

	
   

	
 9,882 

	
   

	
   

	
 7,351 

	
   

	
   

	
 8,733 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
   

	
   

	
 38,948 

	
   

	
   

	
 45,451 

	
   

	
   

	
 46,386 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 Liabilities
  and shareholders’ equity 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 CURRENT LIABILITIES: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Short term bank credit 

	
   

	
   

	
 468 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Short term loans and current maturities of long-term bank loan 

	
   

	
   

	
 140 

	
   

	
   

	
 833 

	
   

	
   

	
 347 

	
   

	
 Accounts payable and accruals: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Trade 

	
   

	
   

	
 4,196 

	
   

	
   

	
 3,909 

	
   

	
   

	
 5,149 

	
   

	
 Customer’s advances and deferred revenues 

	
   

	
   

	
 1,375 

	
   

	
   

	
 3,125 

	
   

	
   

	
 3,603 

	
   

	
 Other 

	
   

	
   

	
 3,972 

	
   

	
   

	
 2,260 

	
   

	
   

	
 4,810 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 T o t a l  current liabilities 

	
   

	
   

	
 10,151 

	
   

	
   

	
 10,127 

	
   

	
   

	
 13,909 

	
   

	
 LONG-TERM LIABILITIES: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Accrued severance pay liability 

	
   

	
   

	
 1,537 

	
   

	
   

	
 893 

	
   

	
   

	
 1,297 

	
   

	
 Loans and other liabilities, net of current maturities: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Bank loans 

	
   

	
   

	
   

	
   

	
   

	
 139 

	
   

	
   

	
   

	
   

	
 Other liabilities 

	
   

	
   

	
 10,000 

	
   

	
   

	
 10,000 

	
   

	
   

	
 10,000 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 T o t a l  long - term liabilities 

	
   

	
   

	
 11,537 

	
   

	
   

	
 11,032 

	
   

	
   

	
 11,297 

	
   

	
 COMMITMENTS AND CONTINGENT LIABILITIES 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 T o t a l  liabilities 

	
   

	
   

	
 21,688 

	
   

	
   

	
 21,159 

	
   

	
   

	
 25,206 

	
   

	
 SHAREHOLDERS’ EQUITY 

	
   

	
   

	
 17,260 

	
   

	
   

	
 24,292 

	
   

	
   

	
 21,180 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
   

	
   

	
 38,948 

	
   

	
   

	
 45,451 

	
   

	
   

	
 46,386 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 

	
 

	
   

	
 ) 

	
 _____________________________   

	
 ) 

	
   

	
 ) 

	
 _____________________________   

	
 ) 

 The accompanying notes are an integral part
of these condensed financial statements. 

3

 NEGEVTECH LTD. 

 CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS 

 FOR THE THREE MONTH PERIOD ENDED MARCH 31,
2007 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
 Three months

  ended March 31 

	
   

	
 Year ended

  December 31
2006 

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
 2007 

	
   

	
 2006 

	
   

	
   

	
   

	
   

	

	
   

	

	
   

	

	
   

	
   

	
   

	
 (Unaudited) 

	
   

	
 (Audited) 

	
   

	
   

	
   

	

	
   

	

	
   

	
   

	
   

	
 U.S. dollars in thousands 

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
   

	
 Revenues 

	
   

	
   

	
 7,669 

	
   

	
   

	
 4,501 

	
   

	
   

	
 30,862 

	
   

	
   

	
 Cost of revenues 

	
   

	
   

	
 3,856 

	
   

	
   

	
 2,220 

	
   

	
   

	
 14,927 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 Gross profit 

	
   

	
   

	
 3,813 

	
   

	
   

	
 2,281 

	
   

	
   

	
 15,935 

	
   

	
   

	
 Research and development costs: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Research and development expenses 

	
   

	
   

	
 3,785 

	
   

	
   

	
 2,986 

	
   

	
   

	
 13,879 

	
   

	
 L e s s - royalty bearing participation
  from the Government of Israel 

	
   

	
   

	
 466 

	
   

	
   

	
 333 

	
   

	
   

	
 1,529 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 Research and development expenses, net 

	
   

	
   

	
 3,319 

	
   

	
   

	
 2,653 

	
   

	
   

	
 12,350 

	
   

	
   

	
 Marketing, general and administrative
  expenses, net 

	
   

	
   

	
 4,016 

	
   

	
   

	
 3,613 

	
   

	
   

	
 15,944 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
 Operating loss 

	
   

	
   

	
 3,522 

	
   

	
   

	
 3,985 

	
   

	
   

	
 12,359 

	
   

	
   

	
 Financial expenses, net 

	
   

	
   

	
 423 

	
   

	
   

	
 369 

	
   

	
   

	
 1,518 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
 Loss for the period 

	
   

	
   

	
 3,945 

	
   

	
   

	
 4,354 

	
   

	
   

	
 13,877 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

 The accompanying notes are an integral part
of these condensed financial statements. 

4

 (Continued) - 1 

 NEGEVTECH LTD. 

 CONDENSED STATEMENTS OF CHANGES IN
SHAREHOLDERS’ EQUITY 

 FOR THE THREE MONTH PERIOD ENDED MARCH 31,
2007 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
 Share capital 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Ordinary

  shares 

	
   

	
 Ordinary

  preferred

  shares 

	
   

	
 Preferred

  shares 

	
   

	
 Amount 

	
   

	
 Additional

  paid-in

  capital 

	
   

	
 Warrants 

	
   

	
 Accumulated

  deficit 

	
   

	
 Total 

	
   

	
   

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	
   

	
   

	
 Number of shares 

	
   

	
 U. S.   d o l l a r s   i n   t h o u s a n d s 

	
   

	
   

	
   

	

	
   

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 BALANCE AT JANUARY 1, 2007 (audited) 

	
   

	
   

	
 611,449 

	
   

	
   

	
   

	
   

	
   

	
 34,228,511 

	
   

	
   

	
 85 

	
   

	
   

	
 85,355 

	
   

	
   

	
 1,742 

	
   

	
   

	
 (66,002 

	
 ) 

	
   

	
 21,180 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 CHANGES DURING THE THREE MONTH PERIOD ENDED MARCH 31, 2007 (unaudited): 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Exercise of Employee stock options 

	
   

	
   

	
 1,500 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (a 

	
 ) 

	
   

	
 1 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 1 

	
   

	
 Employee stock based compensation 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 24 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 24 

	
   

	
 Loss 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (3,945 

	
 ) 

	
   

	
 (3,945 

	
 ) 

	
   

	
   

	

	

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 BALANCE AT MARCH 31, 2007 (unaudited) 

	
   

	
   

	
 612,949 

	
   

	
   

	
   

	
   

	
   

	
 34,228,511 

	
   

	
   

	
 85 

	
   

	
   

	
 85,380 

	
   

	
   

	
 1,742 

	
   

	
   

	
 (69,947 

	
 ) 

	
   

	
 17,260 

	
   

	
   

	
   

	

	

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 BALANCE AT JANUARY 1, 2006 (audited) 

	
   

	
   

	
 428,949 

	
   

	
   

	
 1,569,004 

	
   

	
   

	
 24,893,433 

	
   

	
   

	
 66 

	
   

	
   

	
 66,447 

	
   

	
   

	
 1,742 

	
   

	
   

	
 (52,125 

	
 ) 

	
   

	
 16,130 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 CHANGES DURING THE THREE MONTH PERIOD ENDED MARCH
  31, 2006
  (unaudited): 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Exercise of Employee stock options 

	
   

	
   

	
 30,000 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (a 

	
 ) 

	
   

	
 12 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 12 

	
   

	
 Employee stock based compensation 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 20 

	
   

	
   

	
 20 

	
   

	
 Issuance of preferred BB3 shares capital (b) 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 4,742,606 

	
   

	
   

	
 12 

	
   

	
   

	
 12,472 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 12,484 

	
   

	
 Loss 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (4,354 

	
 ) 

	
   

	
 (4,354 

	
 ) 

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 BALANCE AT MARCH 31, 2006 (unaudited) 

	
   

	
   

	
 458,949 

	
   

	
   

	
 1,569,004 

	
   

	
   

	
 29,636,039 

	
   

	
   

	
 78 

	
   

	
   

	
 78,931 

	
   

	
   

	
 1,742 

	
   

	
   

	
 (56,469 

	
 ) 

	
   

	
 24,292 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 

	
           (a)
  Represents an amount less than $ 1,000. 

	
           (b)
  Net of Issuance expenses of $ 516 thousands 

5

 (Continued) - 2 

 NEGEVTECH LTD. 

 CONDENSED STATEMENTS OF CHANGES IN
SHAREHOLDERS’ EQUITY 

 FOR THE THREE MONTH PERIOD ENDED MARCH 31,
2007 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
 Share capital 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Ordinary

  shares 

	
   

	
 Ordinary

  Preferred

  Share 

	
   

	
 Preferred

  shares 

	
   

	
 Amount 

	
   

	
 Additional

  paid-in

  capital 

	
   

	
 warrants 

	
   

	
 Accumulated

  deficit 

	
   

	
 Total 

	
   

	
   

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	
   

	
   

	
 Number of shares 

	
   

	
 U. S.  d o l l a r s  i n  t h o u s a n d s 

	
   

	
   

	
   

	

	
   

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 BALANCE AT JANUARY 1, 2006 

	
   

	
   

	
 428,949 

	
   

	
   

	
 1,569,004 

	
   

	
   

	
 24,893,433 

	
   

	
   

	
 66 

	
   

	
   

	
 66,447 

	
   

	
   

	
 1,742 

	
   

	
   

	
 (52,125 

	
 ) 

	
   

	
 16,130 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 CHANGES DURING 2006: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Employee stock based compensation 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 97 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 97 

	
   

	
 Issuance of preferred BB3 shares capital (b) 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 4,996,982 

	
   

	
   

	
 13 

	
   

	
   

	
 13,035 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 13,048 

	
   

	
 Exercise of employee stock options 

	
   

	
   

	
 182,500 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (a 

	
 ) 

	
   

	
 23 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 23 

	
   

	
 Conversion of ordinary preferred shares to ordinary shares 

	
   

	
   

	
 2,436,340 

	
   

	
   

	
 (1,569,004 

	
 ) 

	
   

	
   

	
   

	
   

	
 2 

	
   

	
   

	
 (2 

	
 ) 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 -,- 

	
   

	
 Conversion of ordinary shares to BB4 preferred shares (c) 

	
   

	
   

	
 (2,436,340 

	
 ) 

	
   

	
   

	
   

	
   

	
 2,436,340 

	
   

	
   

	
   

	
   

	
   

	
 1,365 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 1,365 

	
   

	
 Issuance of preferred BB4 shares capital (c) 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 1,901,756 

	
   

	
   

	
 4 

	
   

	
   

	
 4,390 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 4,394 

	
   

	
 Loss 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (13,877 

	
 ) 

	
   

	
 (13,877 

	
 ) 

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 BALANCE AT DECEMBER 31, 2006 

	
   

	
   

	
 611,449 

	
   

	
   

	
 -,- 

	
   

	
   

	
 34,228,511 

	
   

	
   

	
 85 

	
   

	
   

	
 85,355 

	
   

	
   

	
 1,742 

	
   

	
   

	
 (66,002 

	
 ) 

	
   

	
 21,180 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 

	
           (a)
  Represents an amount less than $ 1,000. 

	
           (b)
  Net of Issuance expenses of $ 542 thousands. 

	
           (c)
  Net of Issuance expenses of $ 285 thousands. 

 The accompanying notes are an integral part
of the consolidated financial statements. 

6

 NEGEVTECH LTD. 

 CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS 

 FOR THE THREE MONTH PERIOD ENDED MARCH 31,
2007 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
 Three months

  ended March 31 

	
   

	
 Year ended

  December 31, 

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
 2007 

	
   

	
 2006 

	
   

	
 2006 

	
   

	
   

	
   

	

	
   

	

	
   

	

	
   

	
   

	
   

	
 (Unaudited) 

	
   

	
 (Audited) 

	
   

	
   

	
   

	

	
   

	

	
   

	
   

	
   

	
 U.S. dollars in thousands 

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
   

	
 CASH FLOWS FROM OPERATING ACTIVITIES: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Loss for the period 

	
   

	
   

	
 (3,945 

	
 ) 

	
   

	
 (4,354 

	
 ) 

	
   

	
 (13,877 

	
 ) 

	
 Adjustments required to reconcile loss to net cash used in operating
  activities: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Depreciation and amortization 

	
   

	
   

	
 890 

	
   

	
   

	
 858 

	
   

	
   

	
 3,892 

	
   

	
 Accrued severance pay 

	
   

	
   

	
 240 

	
   

	
   

	
 16 

	
   

	
   

	
 420 

	
   

	
 Amortization of debt issuance cost 

	
   

	
   

	
 100 

	
   

	
   

	
 100 

	
   

	
   

	
 406 

	
   

	
 Employees stock based compensation 

	
   

	
   

	
 24 

	
   

	
   

	
 20 

	
   

	
   

	
 97 

	
   

	
 Changes in operating asset and liability items: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Decrease (increase) in trade accounts receivable 

	
   

	
   

	
 3,270 

	
   

	
   

	
 (575 

	
 ) 

	
   

	
 (3,020 

	
 ) 

	
 Decrease (increase) in other accounts receivable, including (long-term prepaid expenses) 

	
   

	
   

	
 (439 

	
 ) 

	
   

	
 382 

	
   

	
   

	
 648 

	
   

	
 Increase in inventories 

	
   

	
   

	
 (902 

	
 ) 

	
   

	
 (1,819 

	
 ) 

	
   

	
 (7,819 

	
 ) 

	
 Increase (decrease) in trade payables 

	
   

	
   

	
 (953 

	
 ) 

	
   

	
 (821 

	
 ) 

	
   

	
 419 

	
   

	
 Increase (decrease) in other accounts payable and accruals 

	
   

	
   

	
 (838 

	
 ) 

	
   

	
 (237 

	
 ) 

	
   

	
 2,313 

	
   

	
 Increase (decrease) in customer’s advances and deferred revenues 

	
   

	
   

	
 (2,228 

	
 ) 

	
   

	
 2,575 

	
   

	
   

	
 3,053 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 Net cash used in operating activities 

	
   

	
   

	
 (4,781 

	
 ) 

	
   

	
 (3,855 

	
 ) 

	
   

	
 (13,468 

	
 ) 

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 CASH FLOWS FROM INVESTING ACTIVITIES: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Purchase of fixed assets 

	
   

	
   

	
 (1,036 

	
 ) 

	
   

	
 (582 

	
 ) 

	
   

	
 (2,713 

	
 ) 

	
 Long-term deposit 

	
   

	
   

	
   

	
   

	
   

	
 (1 

	
 ) 

	
   

	
   

	
   

	
 Restricted deposits 

	
   

	
   

	
 355 

	
   

	
   

	
   

	
   

	
   

	
 647 

	
   

	
 Severance pay funds 

	
   

	
   

	
 (182 

	
 ) 

	
   

	
 (6 

	
 ) 

	
   

	
 (403 

	
 ) 

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 Net cash used in investing activities 

	
   

	
   

	
 (863 

	
 ) 

	
   

	
 (589 

	
 ) 

	
   

	
 (2,469 

	
 ) 

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 CASH FLOWS FROM FINANCING ACTIVITIES: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Long term loan 

	
   

	
   

	
   

	
   

	
   

	
 2,300 

	
   

	
   

	
 2,300 

	
   

	
 Repayment of long term bank loan 

	
   

	
   

	
 (207 

	
 ) 

	
   

	
 (208 

	
 ) 

	
   

	
 (833 

	
 ) 

	
 Short term bank credit 

	
   

	
   

	
 468 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Exercise of Employee stock options 

	
   

	
   

	
 1 

	
   

	
   

	
 12 

	
   

	
   

	
 23 

	
   

	
 Issuance of share capital, net of share issuance expenses 

	
   

	
   

	
   

	
   

	
   

	
 11,384 

	
   

	
   

	
 18,807 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 Net cash provided by financing activities 

	
   

	
   

	
 262 

	
   

	
   

	
 13,488 

	
   

	
   

	
 20,297 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 

	
   

	
   

	
 (5,382 

	
 ) 

	
   

	
 9,044 

	
   

	
   

	
 4,360 

	
   

	
 BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF
  PERIOD 

	
   

	
   

	
 5,716 

	
   

	
   

	
 1,356 

	
   

	
   

	
 1,356 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 BALANCE OF CASH AND CASH EQUIVALENTS AT END OF
  PERIOD 

	
   

	
   

	
 334 

	
   

	
   

	
 10,400 

	
   

	
   

	
 5,716 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

 Supplementary information on operating and
financing activities not involving cash flows - 

During
the 3 months ended March 31, 2007, an inventory in the amount of $1,003 thousands
was recategorized as fixed assets. 

 The accompanying notes are an integral part
of these condensed financial statements. 

7

 NEGEVTECH LTD. 

 NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS 

 AS OF MARCH 31, 2007 

 (Unaudited) 

 NOTE 1 – GENERAL: 

	
 

	
 

	
 

	
   

	
 a. 

	
 The interim
  financial statements as of March 31, 2007 and for the three month period then
  ended (hereafter - the interim statements) were drawn up in condensed form,
  in accordance with generally accepted accounting principles applicable to
  interim financial statements. 

	
   

	
   

	
   

	
   

	
   

	
 The interim
  statements do not include all the information and explanations required for
  annual financial statements. Operating results for the three month period
  ended March 31, 2007 are not necessarily indicative of the results of operations
  for the full year. 

	
   

	
   

	
   

	
   

	
 b. 

	
 Following
  are the changes in the exchange rate of the U.S. dollar and the Israeli
  consumer price index during the reported periods: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
 Exchange rate

  of one U.S.

  dollar 

	
   

	
 Israeli

  consumer price

  index 

	
   

	
   

	
   

	

	
   

	

	
   

	
   

	
   

	
  % 

	
   

	
 % 

	
   

	
   

	
   

	

	
   

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Three months
  ended March 31: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 2007 

	
   

	
 (0.02 

	
 ) 

	
   

	
 -,- 

	
   

	
   

	
 2006 

	
   

	
 1.3 

	
   

	
   

	
 0.6 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Year ended
  December 31, 2006 

	
   

	
 (8.2 

	
 ) 

	
   

	
 (0.1 

	
 ) 

	
   

 NOTE 2 – CONTINGENTS LIABILITIES: 

	
 

	
 

	
 

	
   

	
 a. 

	
 In July and
  August 2004, the Company received letters from KLA - Tencor Corporation
  (“KLA”) asserting that the Company’s 302-inspection system makes use of three
  KLA patents U.S. Patent No. 4,805,123, U.S. Patent No. 6,288,780 and U.S.
  Patent No. 6,686,995 and requesting technical information regarding the 302
  system. In response to these letters, the Company has identified certain
  limitations of the KLA patents that are absent from the 302 system. The
  Company has also requested further clarification of KLA’s claims. The ‘123’
  patent has been previously litigated by KLA, and has been determined by the
  U.S. District
  Court for the Northern District of California to be invalid. The Company
  disputes KLA’s claims, and is attempting to resolve these issues without
  resorting to litigation. No provision was recorded in the financial
  statements in respect of such claim. 

	
   

	
   

	
   

	
   

	
 b. 

	
 On August
  27, 2004, Applied Materials, Inc. filed suit in the U.S. District Court for
  the Northern District of California alleging that the Company’s
  302-inspection system infringes an Applied Materials’ patent (U.S. Patent No.
  5,982,921), and seeking an injunction and unspecified damages. On October 12,
  2004, the Company filed its amended answer to Applied Materials’ complaint
  and also filed counterclaims for declaratory judgment of no infringement and
  invalidity. On June 3, 2005 Applied Materials, Inc. and Applied Materials
  Israel filed an amended compliant aginst the Company. On June 23, 2005 the
  Company filed an answer to the amended compliant and again filed
  counterclaims for declaratory judgment of non-infringement and invalidity. 

8

 NEGEVTECH LTD. 

 NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued) 

 AS OF MARCH 31, 2007 

 (Unaudited) 

 NOTE 2 – CONTINGENTS LIABILITIES
(continued): 

	
 

	
 

	
   

	
 On July 14,
  2005, the Court issued an order under the legal doctrine of assignor
  estoppels that prevents the Company from challenging the validity of the ‘921
  patent in this lawsuit. That order does not prevent the Company from
  challenging the validity of the ‘921 patent in the United States Patent and
  Trademark Office, however. On June 3, 2005, the Company filed a request for
  the reexamination of the ‘921 patent with the USPTO. 

	
   

	
   

	
   

	
 On September
  2005, the Uspto granted the Company request to reexamine the ‘921 patent. In
  October 2005, the court stayed the litigation on the ‘921 patent pending the
  USPTO reexamination. 

	
   

	
   

	
   

	
 On October
  24, 2005 Applied Materials filed a second amended complaint asserting two
  additional patents against Negevtech U.S. Patent Nos. 6,256,093 and
  6,924,891. On November 10, 2005, the Company filed an answer to the second
  amended complaint and filed counterclaims for declaratory judgment of
  non-infringement of each of Applied Materials patents, and of invalidity for
  ‘093 and 891’ patents. During December 2005 and upon hearing the Company
  arguments Applied Materials withdrew the ‘093 patent and cancelled the claim. 

	
   

	
   

	
   

	
 The Company
  disputes Applied Materials, claims and intends to defend the lawsuit
  vigorously. No provision was recorded in the financial statements in respect
  of such claims. 

 NOTE 3 – INCOME TAXES 

	
 

	
 

	
   

	
 Effective
  January 1, 2007, the Company adopted FIN 48, “Accounting for Uncertainty in
  Income Taxes - an interpretation of FAS 109” (“FIN 48”), which was issued in
  July 2006. FIN 48 clarifies the accounting for uncertainty in income taxes,
  and prescribes a recognition threshold and measurement attributes for the
  financial statement recognition and measurement of a tax position taken or
  expected to be taken in a tax return. 

	
   

	
   

	
   

	
 As of the
  date of adoption, the tax years that remain subject to examination are
  between years 1999 and 2006. 

	
   

	
   

	
   

	
 Due to the
  significant carryforward tax losses of the Company and its subsidiaries, the
  adoption of FIN 48 did not have a material effect on the Company’s financial
  statements. 

9

Schedule 2.24  

List of Agreements with
Employees & Consultants  

[***]

*** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

Schedule 2.25  

Government Sponsored
Programs  

	1.  	Office
of the Chief Scientist  

	 	
On
April 18, 2000 the OCS approved a grant in the amount of NIS 4,262,066 which was fully
provided to the Company. 

	 	
On
April 3, 2001, the OCS approved an additional grant in the amount of NIS 9,972,714 which
was fully provided to the Company. 

	 	
On
July 15, 2002, the OCS approved an additional grant in the amount of NIS 10,217,368 which
was fully provided to the Company. 

	 	
On
June 10, 2003, the OCS approved an additional grant in the amount of NIS 9,499,968 which
was fully provided to the Company. 

	 	
On
June 13, 2004, the OCS approved an additional grant in the amount of NIS 9,000,000 which
was fully provided to the Company. 

	 	
On
May 2, 2005, the OCS approved an additional grant in the amount of NIS 6,800,000 out of
which an amount of NIS 5,069,553 was provided to the Company. 

	 	
On
June 20 ,2006 the OCS approved an additional grant in the amount of NIS 6,208,568 out of
which an amount of NIS 2,736,823 was provided to the Company. 

	2.  	Fund
for the Encouragement of Marketing Activities  

	 	
On
December 15, 2002, the Fund for the Encouragement of Marketing Activities approved a grant
in the amount of $40,000 which was fully provided to the Company. 

	3.  	Investment
Center  

	 	
On
December 20, 2001 the Company applied for an approved enterprise status from the
Investment Center of the Israeli Ministry of Trade and Industry. Approval was granted on
March 24, 2002. 

	 	
On
October 19, 2004 the Investment Center approved an extension of the plan until March 23,
2005.  

	 	
On
July 27, 2005 the Investment Center approved an extension of the plan until March 23,
2006  

Schedule 2.28  

List of Insurance
Policies  

Negevtech maintains the following
valid insurance policies: 

	Medical Insurance Policy	 	The policy covers the medical insurance of Israeli employees during their stay abroad for short periods and for relocation periods
	Professional & Product Liability Insurance Policy	$5,000,000	 
	Directors & Officers Liability Insurance Policy	$5,000,000	 
	Marine Cargo Insurance Policy	$5,000,000 / $7,500,000 (Globus warehouses)	 
	Property in business interruption to cover Negevtech Property	$100,000-$11,000,000	The coverage is for Negevtech Ltd., for more details please see Migdal`s Hi-Tech Business Insurance Policy
	Third Party Liability	$5,000,000	 
	Employer Liability	$5,000,000	 
	Goods in Transit	$65,000	 
	Employees` Loyalty	$100,000	 
	Electronic Equipment	$33,000-$1,812,160	 
	CGL	$1,000,000	Negevtech Inc.
	Commercial Umbrella and Business & Personal Property Insurance policy	$5,000,000	Negevtech Inc. – See The Hartford`s Policy
	Business Auto	$1,000,000	Negevtech Inc.

Schedule 3.5 A  

Venture Capital Funds 

Pitango Venture Capital Fund III
(Israeli Sub) L.P. 

Pitango Venture Capital Fund III (Israeli
Sub.) Non-Q L.P. 

Pitango Venture Capital Fund III
(Israeli Investors) L.P. 

Pitango Parallel Investor Fund III
(Israel), L.P. 

Pitango Principles Fund III (Israel)
L.P. 

Pitango Venture Capital Fund Trusts
2000 Ltd. 

Canada Israel Opportunity Fund III, L.P. 

Shrem, Fudim, Kelner Founders Group II
L.P. 

Shrem Fudim Kelner Founders Group II
Annex Fund L.P. 

Shrem, Fudim Kelner & Co Ltd. 

SVE Star Ventures Enterprises Gmbh & Co. No. IX KG.

Star Management of Investments No. II
(2000) L.P. 

Star Growth Enterprise, a German Civil Law Partnership (with limitation of Liability)

SVM Star Ventures
Managmenttgesellschaft mbH Nr. 3 

Genesis Partners II, L.D.C. 

Genesis Partners II (Israel) L.P. 

Poalim Ventures Ltd. 

Poalim Ventures I Ltd. 

Poalim Ventures II L.P. 

Wellington Partners Venture III
Technology Fund L.P. 

Amadeus III 

Amadeus III Affiliates
Fund LP 

Schedule 3.5 B  

Non Israeli Residents 

Wellington Partners Venture III
Technology Fund L.P. 

Amadeus III 

Amadeus III Affiliates
Fund LP 

Schedule 4.5  

TULCHINSKY
STERN MARCIANO ■ BEN ZUR ■ COHEN & CO.

	
 

	
 

	
 

	
 

	
 

	

	

	
 

	
 

	
L A W

	
O F F I C E S

	
 

	
 

	

	

	
 

	
 

	
 

	
w w w . t s l a w . c o . i l

5 Hafzadi St., (Ofer Bldg) • Jerusalem 95484 • Tel.
(972) 2-6511919 • Fax. (972) 2-6513133

Museum Tower • 4 Berkowitz
St. • Tel Aviv 64238 • Tel. (972) 3-6075000 • Fax. (972) 3-6075050

	
 

	
 

	
 

	
Menachem
  Tulchinsky, Adv.

	
 

	
Shlomi
  Azar, Adv. * †

	
Doron
  Stern, Adv.

	
 

	
Assaf
  Benmelech, Adv.

	
David
  Cohen, Adv.

	
 

	
Lana
  Tavor, Adv.

	
Boaz
  Ben Zur, Adv.

	
 

	
Galia
  Suesskind - Spiegel, Adv.

	
Isaac
  Marciano, Adv. (C.P.A.)

	
 

	
Oren
  Shriqui, Adv.

	
Yossi
  Ratnovsky, Adv. (C.P.A.)

	
 

	
Alon
  Karniel, Adv.

	
Chagit
  Pedael, Adv.

	
 

	
Talya
  Michaelson, Adv.

	
Yaacov
  Michlin, Adv.

	
 

	
Ofer
  Dolinsky, Adv.

	
Alon
  Tabak, Adv. *

	
 

	
Shimrit
  Lifshitz, Adv.

	
Baruch
  Perl, Adv.

	
 

	
Mirit
  Ber - Hoffman, Adv. (C.P.A.)

	
Ariel
  Fuss, Adv.

	
 

	
Michal
  Abramowitz - Levi, Adv.

	
Glenn
  Shalom - Winter, Adv.*

	
 

	
Nir
  Friedman, Adv.

	
Uriel
  Barak, Adv.*

	
 

	
Raz Ben
  - Dor, Adv.

	
Asaf
  Ben - Zeev, Adv.

	
 

	
Inbal
  Laifer, Adv.

	
Hagai
  Halevy, Adv.

	
 

	
Lital
  Helman, Adv.

	
Amit
  Manor, Adv.

	
 

	
Avital
  Mandel, Adv

	
Michal
  Markovitz - Blachar, Adv.

	
 

	
Hemi
  Shmueli, Adv.

	
Hadas
  Poraz, Adv.

	
 

	
Moshe
  Mazor, Adv.

	
Keren
  Shemesh, Adv.

	
 

	
Elad
  Shtief, Adv.

	
 

	
 

	
 

	
*Member
  of the N.Y. Bar Association

  †Qualified Solicitor in England &Wales

	
 

	
 

Jerusalem, July 20 2007

	
 

	
 

	
TO:

	
The Investors Listed on Schedule A of the Share Purchase Agreement (as defined herein)

	
 

	
 

	
Ladies and Gentlemen,

Re: Negevtech Ltd.

          We
have acted as counsel to Negevtech Ltd., a company limited by shares, formed
and existing
under the laws of the State of Israel (the “Company”), in connection with the
Series A1 Preferred Share
Purchase Agreement dated July 20, 2007 (the “Share Purchase Agreement”) between the Company and yourselves and all the
Schedules, Exhibits and ancillary documents related thereto to which the Company is a party (the “Transaction
Documents”). Unless defined herein, capitalized terms have the meaning ascribed
to them in the Transaction Documents.

                    In
rendering this opinion, we have examined such documents and matters of law as
we considered necessary for the purpose of rendering this opinion, including,
without limitations, the Transaction Documents and the current Memorandum of
Association and Articles of Association of the Company. As to matters of fact
material to the opinions expressed herein, we have relied (without independent investigation)
upon the representations by the Company in the Transaction Documents and on
representations or certificates of, or communications with directors, officers, employees or
representatives of the Company and certain public officials. Except as expressly set forth in
this opinion, we have not undertaken any independent investigation to determine the existence
or absence of such facts. Apart from an examination of the public records of the Israeli Registrar
of Companies, we have not examined any records of any court, administrative tribunal
or other similar entity in connection with our opinions expressed herein. Except to the extent
expressly set forth herein, we have not undertaken any independent investigation to determine the existence or
absence of any fact, and no inference as to our knowledge of the existence or absence of any fact should be drawn from
our representation of the Company or the rendering of the opinion set forth
below.

                    In
rendering this opinion, we have examined originals or copies of documents, corporate records and
other writings that we consider relevant for the purposes of this opinion. In such examination, we have
assumed that the signatures on documents and instruments examined by us are authentic, that each is what it
purports to be, and that all documents and instruments submitted to us as copies or facsimiles conform with the originals,
which facts we have not independently
verified.

                    In
making our examination of documents, we have further assumed that (i) each party to such documents
(other than the Company in connection with the Transaction Documents) had the power, legal competence and capacity
to enter into and perform all of such party’s obligations
thereunder, (ii) each party to such documents (other than the Company in
connection with the Transaction
Documents) has duly authorized, executed and delivered such documents, (iii) each of such documents is enforceable against and
binding upon the parties thereto (other than the Transaction Documents against
the Company), and (iv) there is no fact or circumstance relating to you or your
business that might prevent you from enforcing any of the rights provided for
in the Transaction Documents. We have also assumed that there are no
extrinsic agreements or understandings
among the parties to the Share Purchase Agreement, or contractual obligations
that would modify or interpret the
terms of the Transaction Documents or the respective rights or obligations of the parties thereunder.

                    As
used in this opinion, the expression “to our knowledge” or “known to us” with reference to matters of
fact refers to the current actual knowledge of attorneys within the firm principally responsible for handling current
matters for the Company. Except to the extent expressly
set forth herein we have not undertaken any independent investigation to
determine the existence or absence of any other facts, and no inference as to
our knowledge of the existence or absence
of any such facts should be drawn from our representation of the Company or the
rendering of the opinions set forth
below.

                    Where
statements in this opinion are qualified by the term “material” or “materially,” those
statements involve judgments and opinions as to the materiality or lack of materiality of any
matter to the Company’s business, assets, results of operations or financial condition that are
entirely those of the Company and its officers, after having been advised by us
as to the legal effect and consequences of such matters.

                    We
express no opinion as to matters governed by any laws other than the laws of
the State
of Israel. We express no opinion as to whether the laws of any particular
jurisdiction apply, and no opinion to the extent that the laws of any jurisdiction other
than those identified above are applicable to the Transaction Documents or the
transactions contemplated thereby.

                    In
rendering the opinion set forth in paragraph 1 below, we have relied
exclusively upon the Certificate of Incorporation and Registration as a Private
Company issued by the Registrar of Companies dated 22.12.91 and upon documents
filed and held on record with the Registrar of Companies.

                    In
rendering the opinion in paragraph 3 and 4(ii) below, we have relied, inter
alia, on your representations in Section 3 of the Share Purchase Agreement.

                    In
rendering the opinion in paragraph 4 relating to violations of laws, rules or regulations of the State
of Israel applicable to the Company, such opinion is limited to such laws, rules or regulations
that in our experience are typically applicable to a transaction of the nature contemplated by the
Agreement.

                    In
connection with the general enforceability opinion set forth below, this
opinion is qualified by, and we render no opinion with respect to, the
following:

	
 

	
 

	
·

	
We
  express no opinion as to the effect of bankruptcy, insolvency,
  reorganization, moratorium and other similar laws relating to or
  affecting the relief of debtors or the rights and remedies of creditors generally, including
  without limitation the effect of statutory or other law regarding fraudulent conveyances,
  preferential transfers and equitable subordination;

	
 

	
 

	
·

	
Our
  opinions are qualified by the limitations imposed by general principles of
  equity upon the availability of equitable remedies for the enforcement of
  provisions of the Transaction Documents, and by the effect of judicial decisions
  which have held that certain provisions are unenforceable when their enforcement would
  violate the implied covenant of good faith and fair dealing, would be
  commercially unreasonable, may establish claims of depravation of the
  minority or where their breach is not material; without limitation of the
  foregoing, we express no opinion as to potential claims or rights which may be
  raised by shareholders of the Company concerning the validity of the
  Recapitalization and/or the issuance of the Recap Ordinary Shares, the conversion thereto
  into Ordinary Preferred A Shares or Ordinary Preferred B Shares or the issuance of the Issued
  Shares, due to the nature of the Recapitalization and such issuances and conversion and
  their impact on the rights of the shareholders of the Company, provided that the
  aforesaid shall not derogate in any way from our opinion that all necessary corporate actions
  by the board of directors and the shareholders of the Company have been taken in
  order to approve the Recapitalization and such issuances and conversion are in compliance
  with the current Articles of Association and Memorandum of Association of the Company and
  the existing Shareholders Rights Agreement between the parties and do not require any
  consent or agreement of any Israeli government entity that has not been
  obtained.

	
 

	
 

	
·

	
We express no opinion as
  to the enforceability of the indemnification provisions in the Transaction Documents;

	
 

	
 

	
·

	
We
  express no opinion as to the effect of foreign laws, judicial determinations
  or governmental
  actions affecting creditors’ rights or the Company’s performance of its obligations under the
  Transaction Documents.

	
 

	
 

	
·

	
We
  express no opinion as to the effect of any Israeli law or equitable principle
  which provides that a court may refuse to enforce, or may limit the
  application of, a contract or any clause thereof which the court finds to
  have been unconscionable at the time it was made or contrary to public
  policy;

	
 

	
 

	
·

	
We
  express no opinion as to the enforceability of provisions of the Transaction
  Documents expressly or by implication waiving broadly or vaguely stated rights
  or unknown future rights, or waiving rights granted by law where such waivers are
  against public policy;

	
 

	
 

	
·

	
We
  express no opinion as to the enforceability of any provision of any of the
  Transaction Documents purporting to (a) waive rights to service of process or
  objections to the laying of venue or to forum in connection with any
  litigation arising out of or pertaining to the Transaction Documents, (b) exclude conflict of
  law principles under Israeli law, (c) establish particular courts as
  the forum for the adjudication of any controversy relating to the Transaction Documents,
  (d) establish the laws of any particular state or jurisdiction for the adjudication of any
  controversy relating to the Transaction Documents, (e) establish evidentiary standards
  or make determinations conclusive or (f) provide for arbitration of disputes;

	
 

	
 

	
·

	
We
  express no opinion as to the effect of judicial decisions, that may permit
  the introduction of extrinsic evidence to modify the terms or the
  interpretation of the Transaction Documents;

	
 

	
 

	
·

	
We
  express no opinion as to the enforceability of any provisions of the
  Transaction Documents providing that (a) rights or remedies are not exclusive,
  (b) rights or remedies may be exercised without notice, (c) every right or
  remedy is cumulative and may be exercised in addition to or with any other right or
  remedy, (d) the election of a particular remedy or remedies does not preclude recourse
  to one or more other remedies, (e) liquidated damages are to be paid upon the breach of any of the Transaction
  Documents or (f) the failure to exercise,
  or any delay in exercising, rights or remedies available under the Transaction Documents will not operate as a
  waiver of any such right or remedy;

	
 

	
 

	
·

	
We note that a requirement
  that provisions of the Transaction Documents may only be waived in writing may not be binding or
  enforceable if an oral agreement has been created modifying any such provision or an implied
  agreement by trade practice or course of conduct has given rise to a waiver;

                    In
addition to the foregoing, the opinions expressed below are specifically
subject to the following qualifications and assumptions:

	
 

	
 

	
 

	
 

	
·

	
We
  express no opinion as to compliance with any antitrust statutes, rules or
  regulations;

	
 

	
 

	
 

	
 

	
·

	
We
  have assumed and express no opinion with respect to (a) the accuracy and completeness of
  representations and warranties of the Investors set forth in the Transaction Documents, and (b) the
  validity of any wire transfers, drafts or checks tendered by the Investors;

	
 

	
 

	
 

	
 

	
·

	
We express no opinion as
  to whether the members of the Company’s Board of Directors have complied with
  their fiduciary duties or duties of care in connection with the authorization and performance of the
  Recapitalization, the Share Purchase Agreement or any other of the Transaction Documents.

Based
upon and subject to the foregoing and except as set forth in the Transaction
Documents or the Schedule of Exceptions thereto, we are of the opinion
that:

	
 

	
 

	
1.

	
The
  Company is a company limited by shares, duly incorporated and validly
  existing under the laws of the State of Israel. The Company has all requisite
  corporate power and authority to own and operate its properties and assets and
  to carry on its business as, to our knowledge, it is presently conducted.

	
 

	
 

	
2.

	
The
  Company has all the requisite corporate power and authority to execute, deliver
  and perform the Transaction Documents and to perform its obligations set
  forth therein. The Company has the requisite corporate power and authority
  to offer, issue and sell the Issued Shares to be sold to you pursuant to the Share
  Purchase Agreement.

	
 

	
 

	
3.

	
Each
  of the Transaction Documents has been duly authorized by all necessary
  corporate actions on the part of the Company, has been executed and delivered
  by duly authorized officers of the Company and constitutes a legal, valid
  and binding obligation of the Company, enforceable against the Company in
  accordance with its terms. No other corporate act or proceeding on the part of the
  Company is necessary for the execution of the Transaction Documents and/or
  the fulfillment of the Company’s obligations thereunder.

	
 

	
 

	
4.

	
(a)
  The execution and delivery by the Company of the Transaction Documents, the
  issue and sale of the Issued Shares and the performance by the Company of
  its obligations under the Transaction Documents will not conflict with,
  constitute a violation of, result in a breach of any provision of, or constitute a default under any
  applicable statute, rule or regulation to
  which the Company is subject,
  including applicable Israeli securities laws.

          (b)
The execution and delivery by the Company of the Transaction Documents, the issue and sale of the
Issued Shares, the Recapitalization and the conversion of the Recap Ordinary Shares into
Ordinary A Shares and Ordinary B Shares (the “Ordinary A/B Shares”) and the
performance by the Company of its obligations under the Transaction Documents will not conflict with, constitute
a violation of, result in a breach of any provision
of, or constitute a default under, (i) the current Articles of Association of
the Company; (ii) those Material
Agreements (as defined in Section 2.10(c) of the Share Purchase Agreement) listed as numbers 37, 38 and
39 in the list of Material Agreements referenced
to Section 2.10 of the Schedule of Exceptions to the Share Purchase Agreement, and the existing Shareholders Rights Agreement;
or (iii) any judgment, decree or order known
to us to which the Company is a party or by which it is bound, except in
relation to subsections 4(a), 4(b)(ii) and 4(b)(iii) above for such
conflicts, violations, breaches or defaults that
are not reasonably likely to have a material adverse effect on the Company and the ability of the Company to perform its
obligations under the Transaction Documents.
Compliance by the Company with the terms of the Transaction Documents does not require the consent or agreement of any
Israeli government entity (other than the Investment Center and the Office of
the Chief Scientist, both of the Ministry of Industry, Trade and Labor, the
approval in principle of both have been obtained, as set forth in the Schedule of Exceptions), nor does it require a
filing with any Israeli government entity (other than the Registrar of Companies, the Investment Center and the
Office of the Chief Scientist).

	
 

	
 

	
5.

	
The
  Issued Shares being purchased by you once issued and paid for in full in
  accordance with the provisions of the Share Purchase Agreement and the
  Amended Articles, and the Ordinary A/B Shares issued to you upon conversion of
  the Recap Ordinary Shares, will be duly and validly issued, fully paid and
  non-assessable, and, to the best of our knowledge, not issued in
  violation of any pre-emptive rights, and, to the best of our knowledge, you
  will hold
  such shares free and clear of any liens, security interests, pledges or
  charges in favor of the Company, except as set forth in the Transaction Documents. Upon
  conversion in accordance with the Amended Articles of the Issued Shares being
  purchased by you when fully paid, and/or of the Ordinary A/B Shares, the
  Ordinary Shares into which the Issued Shares and/or the Ordinary A/B Shares are convertible will be duly
  authorized, validly issued, fully paid,
  and non assessable, and, to the best of our knowledge, will not be issued in violation of any preemptive rights existing
  as of the date hereof.

	
 

	
 

	
6.

	
As of
  Closing (and following the Recapitalization), the authorized share capital of
  the Company constitutes of NIS 56,000,000 divided into (i) 30,000,000
  Ordinary Shares, nominal value NIS 1 each, (ii) 3,500,000 Ordinary
  Preferred A Shares, nominal value NIS 1 each, (iii) 10,000,000 Ordinary Preferred B
  Shares, par value NIS 1 each, and (iv) 12,500,000 Series A1 Preferred Shares, nominal
  value NIS 1 each.

          Based
on a review of the Company’s records and shareholder register, the issued and outstanding share
capital of the Company immediately prior to the Closing and the Recapitalization is
624,949 Ordinary Shares, nominal value NIS 0.01 each, 13,144,070 Series AA Preferred
Shares, nominal value NIS 0.01 each, 8,152,256 Series BB-1 Preferred Shares, nominal value
NIS 0.01 each, 3,597,106 Series BB-2 Preferred Shares, nominal value NIS 0.01 each,
5,859,274 Series BB-3 Preferred Shares, nominal value NIS 0.01 each and
4,338,096 Series BB-4 Preferred Shares, nominal value NIS 0.01 each. All such
issued and
outstanding shares have been duly authorized, validly issued, and to the best
of our knowledge,
are free of any liens or encumbrances in favor of the Company, except as set forth in the Transaction
Documents.

          To
the best of our knowledge on the basis of our review of the documents provided to us by the Company
(except with respect to options granted pursuant to the Company’s share option plans and
shares issued upon exercise thereof, in respect of which we have relied solely on
representations made by certain officers of the Company), and except as disclosed in the
Transaction Documents, there are not as of the date hereof, any outstanding or authorized
subscriptions, options, warrants, calls, rights, commitments (including conversion or
pre-emptive rights), or any other agreements of any character directly
obligating the Company to issue (a) any additional shares, except that we
express no opinion
as to the number of shares issuable in respect of the anti-dilution rights of
any of the
classes of shares of the Company in connection with the Share Purchase
Agreement or as a result of the
issuance of the Issued Shares, provided that the aforesaid shall not derogate in any way from our opinion that all
necessary corporate actions by the board of directors and the shareholders of the Company have been taken in order
to approve the waiver of
anti-dilution rights under the Share Purchase Agreement, in compliance with the
current Articles of Association; or
(b) any securities convertible into, or exchangeable for, or evidencing the right to subscribe for, any
shares. To the best of our knowledge, except as disclosed in the Transaction Documents, the Company has not adopted
or authorized any plan for the
benefit of its officers, employees, or directors which requires or permits the issuance, sale, purchase, or grant of any shares
of the Company’s share capital or any securities
convertible into, or exercisable or exchangeable for, or evidencing the right
to subscribe for any such shares.

	
 

	
 

	
7.

	
All
  necessary corporate proceedings have been taken to adopt the Amended Articles
  as they appear in Exhibit A of the Share Purchase Agreement, and such Amended
  Articles were validly adopted.

	
 

	
 

	
8.

	
Except
  as set forth in the Transaction Documents, we do not know of any civil,
  criminal or arbitration
  proceedings pending before any court or administrative agency to which the Company is party, nor is there in any
  investigation pending or threatened against the Company being handled by us.

This
opinion is rendered as of the date first written above solely for your benefit
in connection with the Transaction Documents and may not be relied on by, nor
may copies be delivered to, any other person without our prior written consent. Our
opinion is expressly limited to the matters set forth above and we render no
opinion, whether by implication or otherwise, as to any other matters relating to the
Company. We assume no obligation to inform you of any facts, circumstances, events or changes in
the law that may hereafter be brought to our attention that may alter, affect
or modify the opinions expressed herein.

	
 

	
 

	
 

	
 

	
TULCHINSKY STERN MARCIANO, BEN-ZUR, COHEN & CO.,
  LAW OFFICES

	
 

	
 

	
 

	
 

	

Schedule 4.10  

Officer Certificate  

	To:  	The
Investors Listed on Schedule A hereto (the "Investors") 

	From:  	Oz
Desheh, Chief Financial Officer of Negevtech Ltd. (the "Company") 

	Re:  	Officer’s
Certificate Pursuant to Section 4.10 to the Series A1 Preferred SharePurchase Agreement
by and between the Company and the Investors dated July 20,2007 (the “Agreement”) 

I, the undersigned, in my capacity as
Chief Financial Officer of the Company, hereby certify the following: 

	 	1. 	The
representations and warranties contained in Section 2 of the Agreement are
               true as of the date hereof. 

	 	2. 	The
Company has performed and complied with all the agreements, obligations and
               conditions contained in the Agreement that are required to be performed or
               complied with on or before the Closing (as defined in the Agreement). 

	 	3. 	There
has been no material adverse change in the financial or business condition
               or prospects of the Company from the date of the Agreement until the date
               hereof. 

	 	4. 	As
of the date hereof, there is no action, suit, or proceeding pending or
               threatened before any court or quasi-judicial or administrative agency of
any                state, municipal, or foreign jurisdiction or before any arbitrator
wherein an                unfavorable injunction, judgment, order, decree, ruling, or
charge would: (i)                prevent consummation of any of the transactions
contemplated by the Agreement;                (ii) cause any of the transactions
contemplated by the Agreement to be rescinded                following consummation 

IN WITNESS WHEREOF, I have
executed this certificate on this __ day of ____ 2007.  

	 	_______________________________
	 	Chief Financial Officer of Negevtech Ltd.F-4/A

Exhibit 10.17  

SERIES
BB-4 PREFERRED SHARE PURCHASE AGREEMENT

This Preferred Share Purchase
Agreement (this “Agreement”) is
entered into as of the 26 day of
September, 2006 by and between Negevtech
Ltd., a private company organized under the laws of the State of
Israel, with registered office at 12 Hamada Street, Rehovot, 76703 Israel, and corporate registration number 51-163426-3
(hereinafter the “Company”), Amadeus III, a private company
organized under the laws of England, with registered office at Mount Pleasant
House, 2 Mount Pleasant, Cambridge England, and Amadeus III Affiliates Fund LP, a limited partnership
organized under the laws of the state of Delaware, with registered office at 2711 Centerville Road, Suite 400,
Wilmington, New Castle County, Delaware 19808 (both entities shall collectively be referred to as “Amadeus”) and the
Joining Investors identified
in Schedule A attached
hereto (hereinafter each a “Joining Investor”
and collectively the “Joining
Investors”) (Amadeus and the Joining Investors shall collectively be referred to as the
“Investors”).

WITNESSETH

WHEREAS the
Company is engaged in the research and development, manufacturing and marketing of a certain innovative system (the
“System”); and

               WHEREAS
the Investors desire to purchase Series BB-4 Preferred Shares
in the Company and the Company desires to
sell and issue Series BB-4 Preferred Shares in the Company, with such
rights, preferences and privileges as set forth in the Amended Articles (as such term is defined below) (“Series BB-4
Preferred Shares”) pursuant to
the terms and conditions set forth in this Agreement; and

               WHEREAS
Amadeus has entered into
a Share Transfer Agreement of even date hereof with Mr. Gadi Neumann and Mr.
David Alumot (the “Founders”) for
the purchase of 2,436,340 Ordinary Shares of the Company (resulting from the
conversion immediately prior to such
purchase of 1,569,004 Ordinary-Preferred Shares of the Company held by the Founders into Ordinary Shares) (the
“Founders’ Shares”), subject to the conversion of the Founders’ Shares into 2,436,340 Series BB-4
Preferred Shares (the “Amadeus-Founders Agreement”);
and

               WHEREAS
the Company desires to
convert the Founders’ Shares purchased by Amadeus pursuant to the
Amadeus-Founders Agreement, into Series BB-4 Preferred Shares, in consideration for the payment by Amadeus to the
Company of the Conversion Consideration (as defined below), pursuant to
the term and conditions set forth in this Agreement.

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

	
 

	
 

	
 

	
 

	
1.

	
Purchase and
  Sale of Shares

	
 

	
 

	
 

	
1.1

	
Sale and Issuance of Shares by
  the Company; Conversion of Shares by the Company

	
 

	
 

	
 

	
 

	
(a)

	
Subject to the terms and conditions of this
  Agreement, at the Closing (as defined
  below) the Investors shall purchase, severally and not jointly, and the
  Company shall sell and issue to the Investors, severally and not
  jointly, an aggregate amount of 1,901,756 (One Million Nine Hundred and One
  Thousand Seven Hundred and Fifty Six)
  Series BB-4 Preferred Shares of the Company, par value NIS 0.01 each (“Issued BB-4
  Preferred Shares”),
  at US$2.4354 per share (the “Price Per Share”) for an aggregate investment of US$$4,631,537
  (Four Million Six Hundred and Thirty One Thousand Five Hundred and
  Thirty Seven US Dollars) (the “BB-4 Purchase Price”) convertible into Ordinary Shares of the
  Company, par value NIS 0.01 (“Ordinary Shares”), to be allocated among the Investors as
  set forth in Schedule
  A.

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
Subject
  to the terms and conditions of this Agreement, at the Closing (as defined below), the Company shall convert the 2,436,340
  Founders’ Shares held by Amadeus
  into 2,436,340 Series BB-4 Preferred Shares of the Company, par value NIS 0.01 each (the “Converted Founders’
Shares”) held by Amadeus at the
  Closing, in consideration for the payment by Amadeus to the Company of an additional
  aggregate amount of $US 1,412,784 (the “Conversion
  Consideration”).

	
 

	
 

	
 

	
 

	
 

	
The Issued BB-4
  Preferred Shares and the Converted Founders’ Shares shall be collectively referred to as the “Issued Shares”
and shall have equal
  rights and rank pari
  passu in all respects. The BB-4
  Purchase Price and the Conversion Consideration
  shall be collectively referred to as the “Purchase
  Price”. Under the Amended
  Articles, all of the Issued Shares shall be deemed to have an Original Issue Price of US$2.4354 per share. Ordinary
  Shares issuable upon the conversion of
  the Issued Shares shall be referred to herein as the “Conversion Shares”.

	
 

	
 

	
 

	
 

	
(c)

	
The
  Price Per Share is based on a pre-money Company valuation of US$104,215,086 on a fully diluted basis,
  including: (i) all outstanding shares (including also Ordinary Shares issuable upon conversion of
  Ordinary-Preferred Shares),  (ii) all shares, on an as-converted basis,
  resulting from any anti-dilution protection
  afforded to any of the existing shareholders of the Company triggered by the investment hereunder, (iii) 5,791,503
  Ordinary Shares of the Company reserved under all of the Company’s incentive share option plans (the “Share Option Plans”) for issuance of options to employees and
  consultants (such number not including
  238,000 Ordinary Shares issued upon exercise of options granted to employees of the Company), (iv) 120,560 Ordinary
  Shares reserved for issuance to service
  providers of the Company, and (v) all other warrants, options and convertible rights, including convertible notes
  and loans. Immediately after Closing, Amadeus shall hold at least seven and a half percent (7.50%) of the
  Company’s issued and outstanding
  share capital on a fully diluted basis.

	
 

	
 

	
 

	
1.2

	
The
  rights, preferences and privileges of the Issued Shares are as set forth in
  the Amended Articles of Association
  of the Company attached hereto as Exhibit
  A (hereinafter
  referred to as the “Amended Articles”)
  and in the Shareholders Rights Agreement as amended upon the Closing,
  pursuant to the Amendment attached hereto as
  Exhibit B (hereinafter
  referred to as the “Shareholders Rights
  Agreement”).

	
 

	
 

	
 

	
1.3

	
Closing.

	
 

	
 

	
 

	
 

	
The
  closing of the purchase and sale of the Issued Shares to the Investors (the “Closing”) shall take place on
September
  27, 2006 or at such other time and place as may be agreed upon orally or in
  writing by the Company, Amadeus and the Investors (other than Amadeus) investing a majority of the Purchase Price
  invested by all Investors other
  than Amadeus (together, the “Majority
  Investors”). At the
  Closing, the following transactions
  shall occur simultaneously (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):

	
 

	
 

	
 

	
 

	
(a)

	
the Company shall deliver to the
  Investors (unless waived by the Majority Investors):

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
copies
  of resolutions of the Company’s shareholders, in the form attached hereto as Schedule
  1.3(a)(i), by
  which, inter alia: (i) the Articles of Association of the Company were replaced by the Amended Articles; (ii)
  the authorized share capital of
  the Company was increased; (iii) converting 2,436,340 Ordinary Shares of the Company (i.e., the Founders’ Shares)
  into the same number of Series BB-4
  Preferred Shares; and (iv) to the extent required, this Agreement and all ancillary documents thereto were
  approved, together with a duly
  completed notices of such changes to the Israeli Registrar of Companies;

-2-

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
validly executed share
  certificates covering the Issued Shares issued in the name of each Investor, in the form attached hereto as Schedule
1.3(a)(ii);

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
a
  copy of a resolution of the Company’s Board of Directors, inter alia: (i) approving
  the execution, delivery and performance of this Agreement and the ancillary documents thereto, (ii) issuing
  and allotting the Issued Shares, and (iii) converting 2,436,340
  Ordinary Shares of the Company (i.e., the Founders’
  Shares) into the same number of Series BB-4 Preferred Shares; all in
  the form attached hereto as Schedule
  1.3(a)(iii);

	
 

	
 

	
 

	
 

	
 

	
 

	
(iv)

	
a
  copy of the Company’s share register registering the Issued Shares in the Investors’ names in the form attached
hereto as Schedule 1.3(a)(iv);

	
 

	
 

	
 

	
 

	
 

	
 

	
(v)

	
a
  copy of the notice to be provided to the Israeli Registrar of Companies immediately
  after the Closing (provided that all Investors who are not (i) Israeli residents
  or (ii) registered as of the Closing with the Registrar of Companies as shareholders of the Company, have
  provided the Company with such documents and information as are
  reasonably necessary to file and register
  such issuance of shares), in the form attached hereto as Schedule 1.4(a)(v).

	
 

	
 

	
 

	
 

	
 

	
 

	
(vi)

	
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 (‘OCS’); and
  (ii) the Investment Center.

	
 

	
 

	
 

	
 

	
 

	
(b)

	
The
  Company shall notify the Israeli Registrar of Companies of the issuance of
  the Issued Shares promptly after the Closing and shall deliver a copy of such
  notice to the Investors’ counsel.

	
 

	
 

	
 

	
 

	
 

	
(d)

	
Payments
  shall be made by the Investors to the Company in U.S. dollars of the Purchase Price by way of a bank transfer to the
  Company’s account (Bank Leumi Le’Israel
  BM, Rehovot Business Branch (978), account No. 222200/29), or by such other form of payment as is mutually agreed by
  the Company and each Investor.

	
 

	
 

	
 

	
 

	
 

	
(e)

	
The
  non-Israeli Investors shall deliver to the Company a duly executed
  undertaking to the OCS in the form
  substantially attached hereto as Schedule
  1.3(d), to the extent required by the OCS and if they have not
  already delivered such undertaking in
  the past.

-3-

	
 

	
 

	
 

	
 

	
2.

	
Representations
  and Warranties of the Company

	
 

	
 

	
 

	
 

	
The Company hereby
  represents and warrant to the Investors that, except as set forth in this Agreement, the Exhibits and Schedules hereto and
  the Schedule of Exceptions
  attached hereto, which exceptions
  shall be deemed to be representations and warranties as if made hereunder,
  the following representations are true and correct on the date of this
  Agreement and shall be true and
  correct on the date of Closing as if made on such date:

	
 

	
 

	
 

	
 

	
2.1

	
Organization, Good Standing and
  Qualification.

	
 

	
 

	
 

	
 

	
The
  Company is a private company duly organized and validly existing under the
  laws of the State of Israel and
  incorporated on December 22, 1991. The Company has all requisite corporate
  power and authority to carry on its business as now conducted and as proposed
  to be conducted in: (i) the Work Plan
  attached hereto as Schedule 2.1;
  (ii) the Marketing Penetration Plan (as defined below); and (iii) the
  2006 Annual Budget (subsections (i), (ii) and
  (iii) are collectively referred to herein as the “Updated Work Plan”). The Company is duly qualified to transact
business in each
  jurisdiction in which the failure so to qualify is reasonably likely to have a material adverse effect
  on its assets, financial condition, operating results, prospects or
  business of the Company as presently conducted and as proposed to be conducted in the Updated Work Plan (“Material Adverse
Effect”). The
  Memorandum of Association and
  Articles of Association of the Company, all as currently in effect, are attached hereto as Schedule 2.1(a).

	
 

	
 

	
 

	
 

	
2.2

	
Capitalization and Voting
  Rights.

	
 

	
 

	
 

	
 

	
Immediately prior to
  Closing (and prior to the creation of the Series BB-4 Preferred Shares and the conversion of the Ordinary-Preferred
  Shares held by the Founders into Ordinary Shares) the authorized capital of the Company consists of 85,570,000
  divided into (i) 47,000,996 Ordinary Shares, of which 469,449 Ordinary
  Shares are issued and outstanding and of
  which 5,791,503 are reserved for issuance to employees, consultants,
  officers, or directors of the
  Company and/or subsidiary thereof pursuant to the Share Option Plans (such number
  not including 238,000 Ordinary Shares issued upon exercise of options granted
  to employees of the Company), of which
  4,996,976 have been allocated and the remaining 794,527 are available for future issuance, (ii)
  1,569,004 Ordinary-Preferred Shares of which all are issued and
  outstanding, (iii) 15,000,000 Preferred AA Shares, par value NIS 0.01, of which 13,144,070 are issued and outstanding,
  (iv) 12,137,708 Preferred BB-1 Shares, par value NIS 0.01, 8,152,256 of which are issued and outstanding (v)
  4,000,000 Preferred BB-2 Shares,
  par value NIS 0.01, 3,597,106 of which are issued and outstanding, (vi)
  5,862,292 Preferred BB-3 Shares,
  par value NIS 0.01 of which 5,859,274 are issued and outstanding.

-4-

	
 

	
 

	
 

	
 

	
Upon the Closing, the authorized capital of the
  Company will consist of 95,000,100 divided into:

	
 

	
 

	
 

	
 

	
(i)
  53,000,060 Ordinary Shares, par value NIS 0.01 each, of which 469,449
  Ordinary Shares are issued and outstanding and 5,791,503 of which are
  reserved for issuance to employees, consultants,
  officers, or directors of the Company and/or subsidiary thereof pursuant to
  the Share Option Plans (such number
  not including 238,000 Ordinary Shares issued upon exercise of options granted to employees of the
  Company), of which 4,996,976 have been allocated and the
  remaining are available for future issuance, (ii) 15,000,000 Preferred AA Shares, par value NIS 0.01 each, of which
  13,144,070 are issued and outstanding, (iii) 12,137,708 Preferred BB-1
  Shares, par value NIS 0.01 each, of which 8,152,256 are issued and outstanding and (iv) 4,000,000 Preferred
  BB-2 Shares, par value NIS 0.01 each, of which 3,597,106 are issued
  and outstanding, (v) 5,862,292 Preferred BB-3 Shares, par value NIS 0.01 each, of which 5,859,274 are issued and
  outstanding, and (vi) 5,000,040 Preferred BB-4 Shares, par value NIS 0.01 each, of which 4,338,096 are issued and
  outstanding.

	
 

	
 

	
 

	
 

	
The
  outstanding Ordinary Shares, Series AA Preferred Shares, Series BB-1
  Preferred Shares, Series BB-2
  Preferred Shares, Series BB-3 Preferred Shares and Series BB-4 Preferred Shares,
  are all duly and validly authorized and issued, fully paid and nonassessable,
  were issued free of any Hen, pledge,
  claim, charge, restriction, encumbrance or third party rights of any kind (“Security
  Interest”), and were issued in compliance with all applicable
  laws, including the relevant
  securities laws of the State of Israel.

	
 

	
 

	
 

	
 

	
A
  complete and correct list of the security holders of the Company (including,
  all warrants and options of the Company’s capital stock) immediately
  prior to the Closing is set forth in Schedule 2.2 attached hereto. The individuals and entities identified in
Schedule 2.2 as the shareholders of the Company immediately prior
  to the Closing are the registered owners, and to the Company’s best
  knowledge, the lawful owners, beneficially and of record, of all of the
  issued and outstanding share capital of the Company, free and clear of any
  Security Interest, 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.

	
 

	
 

	
 

	
 

	
Immediately
  following the Closing the correct list of the shareholdings (including all
  warrants and options) of the Company’s share capital will be as set forth in Schedule 2.2(a).

	
 

	
 

	
 

	
 

	
Except
  for (i) the options, warrants and rights detailed in Schedule 2.2, (ii) the Issued Shares to
  be issued under this Agreement and the conversion privileges of such Issued
  Shares, (iii) the rights provided in Sections
  2, 3 & 4 of the Shareholders Rights Agreement, and (iv) rights pursuant to the Company’s Articles of
  Association, there are no outstanding or authorized subscriptions,
  options, warrants, calls, rights (including conversion or preemptive rights),
  commitments, anti-dilution rights,
  exchange rights, or other rights or securities, of any nature whatsoever, or any other agreements,
  undertakings, promises or commitments of any character for the purchase of or acquisition from the Company of any
  shares of its capital stock or any
  security convertible into, or exchangeable for, or evidencing the right to subscribe for, any shares.

	
 

	
 

	
 

	
 

	
The
  Company is not a party or subject to any agreement or understanding, and, to
  the best of the Company’s knowledge,
  there is no agreement or understanding between any persons and/or entities, which affects or relates to the
  voting or giving of written consents with respect to any security or by a
  director of the Company.

	
 

	
 

	
 

	
 

	
2.3

	
Officers and Directors.

	
 

	
 

	
 

	
 

	
 

	
(a)

	
The
  Company and the Subsidiary’s current officers and directors are the individuals appearing in Schedule 2.3 hereto.
Except as set
  forth in the Company’s Articles of Association and the Shareholders
  Rights Agreement, the Company has no
  agreement, obligation or commitment with respect to the election of any individual or individuals to the
  Company’s Board of Directors. To the
  Company’s best knowledge, there is no voting agreement or other arrangement among the
  Company’s shareholders, and there is no agreement or understanding between
  any persons and/or entities, which affects or relates to the voting or giving written
  consents with respect to any security or by a director and/or officer of the
  Company.

-5-

	
 

	
 

	
 

	
 

	
(b)

	
There
  are no agreements, commitments and understandings, whether written or oral, with respect to
  any compensation to be provided by the Company or the Subsidiary to any of
  their directors or officers except as set forth in the Schedule of
  Exceptions copies of which have been provided to Amadeus.

	
 

	
 

	
 

	
2.4

	
Subsidiaries.

The
Company owns, beneficially and of record, all of the issued and outstanding
share capital of its subsidiaries in Delaware USA, Singapore, Japan and Germany
(jointly, the “Subsidiary”) and all the rights thereto, free and clear of liens,
claims, charges, encumbrances,
restrictions, rights, options to purchase, proxies, voting trust or other voting
agreements. Except for the Subsidiary, 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, joint venture or other business association. There
are no other share capital, preemptive rights, convertible securities,
outstanding warrants, options or other rights to subscribe for, purchase or acquire from any Subsidiary or from
the Company, any share capital of such Subsidiary
and there are no contracts or binding commitments providing for the issuance
of, or the granting of rights to
acquire, any share capital of any Subsidiary. All issued and outstanding
share capital of the Subsidiary was duly authorized, and is validly issued and outstanding and fully paid and nonassessable. The
Subsidiary is duly organized, validly existing and in good standing under the
laws under which it is incorporated 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. Neither the nature of any Subsidiary’s business as now
conducted or as presently proposed to be conducted nor its ownership or leasing of property require that such
Subsidiary be qualified to do
business or be in good standing in any jurisdiction other than the jurisdiction
in which such Subsidiary is
organized.

	
 

	
 

	
 

	
2.5

	
Authorization
  and Approvals.

	
 

	
 

	
 

	
 

	
(a)

	
The
  Company has all requisite corporate power and authority to execute and deliver this Agreement and any other
  agreements contemplated hereby or which are
  ancillary hereto and to consummate the transactions contemplated hereby and thereby. All corporate action on the part of the
  Company and its officers, directors and
  shareholders necessary for the authorization, execution and delivery of this Agreement and any other agreements contemplated
  hereby or which are ancillary hereto,
  the performance of all obligations of the Company hereunder and the authorization,
  issuance and delivery of the Issued Shares, has been taken or will be taken prior to the Closing, and this
  Agreement, any other agreements contemplated
  hereby or which are ancillary hereto and any obligations contemplated herein constitute valid and legally
  binding obligations of the Company,
  enforceable in accordance with its terms subject only to laws affecting the rights and remedies of creditors.

-6-

	
 

	
 

	
 

	
 

	
(b)

	
Except
  for OCS approval, the Investment Center approval, and the notice to be provided
  to the Israeli Registrar of Companies with respect to the adoption of the Amended Articles, the
  amendment of the Company’s Memorandum of Association, the increase and change in the
  composition of its share capital and the allocation of the Issued Shares in
  accordance with this Agreement, no approvals, permits or consents of, or filing with any state or local
  governmental body, official authority, or
  any other third party is required under any applicable law or instrument in connection with the
  execution and delivery of this Agreement or the consummation of the
  transactions contemplated hereby.

	
 

	
 

	
 

	
2.6

	
Valid
  Issuance of Issued Shares.

The
Issued Shares to be issued to each Investor pursuant to this Agreement shall,
when issued as provided
for herein, be duly authorized, validly issued, and issued in compliance with
all applicable laws, including Israeli
securities laws and free of any pre-emptive rights or similar rights (“Participation Rights”) and any
restrictions on transfer, will have the rights, preferences, privileges,
and restrictions set forth in the Shareholders Rights Agreement and the Amended Articles (as shall be in force from
time to time), and will be free and clear of any taxes, liens, claims, encumbrances or third party rights of any kind
(except as specified in this Agreement, the Amended Articles, the
Shareholders Rights Agreement and applicable law)
and duly registered in the Investor’s name in the Company’s share register and,
once the applicable Purchase Price
therefor is fully paid for by such Investor as provided for herein (that is,
the BB-4 Purchase Price in respect of the Issued BB-4 Preferred Shares and the Conversion
Consideration in respect of the Converted Founders’ Shares), shall be fully
paid and non-assessable. The Conversion
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 this Agreement and the Company’s
Articles of Association, will be duly and validly issued, will have the
rights, preferences, privileges and restrictions set forth in the Company’s Articles of Association (as shall be in
force from time to time) and will be free and clear of any liens, encumbrances,
claims, or third party rights of any kind (except as specified in this Agreement, the Amended Articles,
the Shareholders Rights Agreement, and applicable
law) and duly registered in the Investor’s name in the Company’s share register
and, once fully paid for by such Investor as provided for herein, shall
be fully paid and non assessable.

	
 

	
 

	
2.7

	
Litigation.

There
is no claim, action, suit, proceeding or, to the best knowledge, information or
belief of the Company, investigation pending or currently threatened against the
Company, the Subsidiary,
and/or any of the Founders in their capacity as shareholders or directors of
the Company,
and there is no claim, action, suit, proceeding or, to the best knowledge, information or belief of the Company,
investigation which questions the validity of this Agreement, the Shareholders Rights Agreement, or the right of any of
them to enter into it, or to
consummate the transactions contemplated hereby, or which is reasonably likely
to result, either individually or in the aggregate, in any Material
Adverse Effect or any change in the current
equity ownership of the Company, nor, to the best knowledge, information or
belief of the Company, is there any
basis for such claim, action, suit, proceeding or investigation. The foregoing
includes, without limitation: (i) actions pending or threatened involving the
prior employment of any of the Company’s or
the Subsidiary’s employees, including without limitation, the previous
employment of the Founders with Orbot Instruments Ltd. (“Orbot”) and
the previous employment of David Alumot with Opal Technologies Ltd. (“Opal”) and/or with Applied Materials Israel Ltd. (“Applied Materials”); (ii) use by
employees of the Company
or the Subsidiary, in connection with the business of the Company, of any information or techniques allegedly
proprietary to any of their former employers, including without limitation, Orbot, Opal and Applied Materials, or their
obligations under any agreements with
any such prior employers, and (iii) any actions pending or threatened by Orbot
and/or Opal and/or Applied Materials. Neither the Company nor the Subsidiary is
a party to, or subject to the
provisions of any order, writ, injunction, judgment or decree of any court
or government agency or instrumentality nor are any of them aware of any
pending or threatened action, suit, proceeding or investigation (or of any
basis for same) against any of them by any government agency or
instrumentality. There is no action, suit, proceeding or investigation by the
Company, the Subsidiary and/or by the Founders currently pending or that the Company, the Subsidiary and/or the
Founders intends to initiate.

-7-

	
 

	
 

	
 

	
2.8

	
Proprietary
  Information; Patents and Trademarks.

	
 

	
 

	
 

	
 

	
(a)

	
The
  Company and the Subsidiary own or have the unrestricted right to use pursuant to written
  license, sublicense, agreement, or permission, free and clear of any Security Interest,
  third party rights and royalties, all patents, trademarks, service marks, trade
  names, mask works, and copyrights and all trade secrets, including know-how, invention, designs,
  processes, computer programs, algorithms,
  firmware and technical data, concepts, techniques, methods, systems,
  drawings, photographs, models, prototypes, research materials, formulas, development or experimental work, work in
  progress, mask work, cost data, marketing
  plans, product plans, business strategies, financial information, forecasts, personnel information and customer or
  supplier lists currently used and/or
  necessary for the operation of the businesses of the Company as presently conducted
  and as presently proposed to be conducted in the Updated Work Plan (collectively: “Intellectual
  Property”).

	
 

	
 

	
 

	
 

	
(b)

	
Schedule 2.8 identities each: (a) patent, trade mark,
  domain name or registration which has been issued to the Company or the Subsidiary
  with respect to any of the Intellectual
  Property; (b) pending patent or trade mark application or application for registration which the Company or the
  Subsidiary has made with respect to any of the Intellectual Property; (c)
  each trade name or unregistered trademark used by the Company or the Subsidiary; and (d) license, agreement, or
  other permission which the Company
  or the Subsidiary has received from or granted to any third party with respect to any of the
  Intellectual Property (together with any exceptions). The Company has delivered to Amadeus’ counsel correct and
  complete copies of all such patents,
  copyrights, trade marks, registrations, applications, licenses, agreements, and permissions (as amended to
  date) and has made available to the
  Investors correct and complete copies of all other written documentation evidencing ownership and
  prosecution (if applicable) of each such item. With respect to each item of Intellectual Property required to
  be identified as set forth in this
  Section 2.8: (i) the Company or the Subsidiary possess all right, title, and interest in and to the item, free
  and clear of any Security Interest, license, royalty, commission or similar
  arrangements or other restriction and free and clear of any right of any academic or research
  institution, government, previous employer
  of any of the Founders or any other third party; (ii) the item is not subject
  to any outstanding injunction, judgment, order, decree, ruling, or charge;
  (iii) no action, suit, proceeding, hearing, investigation, charge, complaint,
  claim, or demand is pending or is threatened which challenges in a material
  manner the legality, validity,
  enforceability, use, or ownership of the item; (iv) neither the Company
  nor the Subsidiary has ever agreed to indemnify any person for or against any interference, infringement,
  misappropriation, or other conflict with respect
  to the item; and (v) neither the Company nor the Subsidiary has granted, and there are not outstanding, any options,
  licenses or agreements of any kind relating
  to the Intellectual Property, nor is the Company or the Subsidiary bound by
  or a party to any option, license or agreement of any kind with respect to
  any of the Intellectual Property.

-8-

	
 

	
 

	
 

	
 

	
(c)

	
Each
  item of Intellectual Property owned or used by the Company or the Subsidiary immediately
  prior to the Closing hereunder will be owned or available for use by them on
  substantially the same terms and conditions immediately subsequent to the
  Closing hereunder. Except for readily and commercially available
  off-the-shelf software, no other Intellectual Property of any kind required by the
  Company or the Subsidiary to conduct their business, as currently conducted
  and as presently proposed to be conducted, is owned by a third party or would require the
  payment of any fee or royalty. The Company and the Subsidiary have complied in all material respects with
  the requirements of, and has filed all material
  documentation required in dealing with, any patent or trademark registry agency hi which their patent and/or trademarks
  applications were filed.

	
 

	
 

	
 

	
 

	
(d)

	
To the
  best knowledge of the Company, (i) neither the Company nor the Subsidiary has
  interfered with, infringed upon, misappropriated, or otherwise come into conflict
  with any intellectual property rights of any third party nor will the conducting by them
  of their business, or use of the Intellectual Property, as presently conducted
  and as presently proposed to be conducted interfere, infringe upon, misappropriate or
  otherwise come into conflict with any intellectual property rights of any
  third party; (ii) neither the Company nor the Subsidiary has received any charge,
  complaint, claim, demand, or notice alleging any such interference,
  infringement, misappropriation, or violation (including any claim that the Company or the
  Subsidiary must license or refrain from using any intellectual property
  rights of any third party) and to the Company’s knowledge there is no basis for
  such; and (iii) to the best knowledge of the Company, no third party has
  interfered with, infringed upon, misappropriated, or otherwise come into
  conflict with any Intellectual Property of the Company or the Subsidiary.

	
 

	
 

	
 

	
 

	
(e)

	
Neither
  the Company, Subsidiary nor the Founders are obligated nor is the Company aware that any of the Company’s or
  the Subsidiary’s employees (other than
  Founders) 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 its, his or her best efforts to promote the interests of the
  Company or that would conflict with
  the Company’s or the Subsidiary’s business as now conducted and as presently proposed to be conducted in the updated
  Work Plan. Neither the execution
  nor the delivery of this Agreement, the Shareholders Rights Agreement, the carrying on of the Company’s and the
  Subsidiary’s business by any of their respective employees, nor the conduct of the Company’s and the
  Subsidiary’s business as proposed
  to be conducted, will: either (i) to the best of the Company’s knowledge, information or belief, 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 any such employee other
  than the Founder is now obligated
  (including without limitation, any agreement with Orbot, Opal or Applied
  Materials), or (ii) 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 either Founder or the Company or the Subsidiary is now obligated (including
  without limitation, any agreement with Orbot, Opal or Applied Materials). To
  the best of the Company’s knowledge information or belief, for the conduct of its and the
  Subsidiary’s business as now conducted and as
  presently proposed to be conducted in the Updated Work Plan, it will not be necessary to utilize any inventions of the
  Founders or any of their employees (or people it currently intends to hire) owned by any prior employer.

-9-

	
 

	
 

	
 

	
 

	
 

	
All
  Intellectual Property related to the Company, the Subsidiary and their business, developed by
  the Founders prior to the incorporation of the Company (“Founders IP”) was
  duly assigned to the Company by the Founders at the time of, or following, the
  incorporation of the Company, free and clear of any Security Interest, and to the Company’s best
  knowledge, all declarations and documents required
  by the various authorities around the world in order to register such assignments
  have been duly submitted; and neither the Founders nor, to the Company’s best knowledge, any other party has
  any interest in or rights to any of the Founders IP. During the period
  in which the Founders were developing the Founders IP, the Founders to the
  Company’s best knowledge were not employed by
  any third party or involved in any consulting relationship with any third
  party. The Founders to the Company’s
  best knowledge are the sole inventors and developers of the Founders IP (including the inventions, methods and
  devices described and claimed in the patents which are part of such IP)
  without any contribution,
  assistance or participation of any third party.

	
 

	
 

	
 

	
 

	
(f)

	
Each
  Founder, employee, officer and consultant of the Company or Subsidiary has executed a Proprietary
  Information and Inventions Agreement and/or an Employment Agreement and/or any similar
  agreement, containing confidentiality, non compete and assignment of invention
  provisions in the form provided to Amadeus’ counsel, and to the Company’s best
  knowledge none of the Company’s or the Subsidiary’s employees, Founders, officers or
  consultants are in violation thereof, and the Company will use its best efforts to
  prevent any such violation.

	
 

	
 

	
 

	
 

	
(g)

	
The
  Company and the Subsidiary have taken measures to protect the secrecy, confidentiality and
  value of all their intellectual property, which measures are reasonable and
  customary in the industry in which they operate.

	
 

	
 

	
 

	
 

	
(h)

	
There
  are no outstanding options, licenses, or agreements of any land relating to the foregoing, and
  neither the Company nor the Subsidiary is bound by or is a party to any options,
  licenses or agreements of any kind with respect to the patents, trademarks,
  service marks, trade names, copyrights, trade secrets, licenses, information,
  proprietary rights and processes of any other person or entity other than
  licenses arising from the purchase or use of “off-the-shelf or other standard
  products.

	
 

	
 

	
 

	
2.9.

	
Compliance
  with Law and Other Instruments.

Neither the Company nor the Subsidiary is in violation
or default of any provisions of their Memorandum
or Articles of Association or applicable charter documents, or of any instrument, judgment, order, writ, decree or
contract to which it is a party or by which it is bound or, of any provision
of law applicable to it, which violation or default is reasonably likely to have a Material Adverse Effect. The
execution, delivery and performance by the Company of this Agreement,
the Shareholders Rights Agreement and the consummation of the transactions contemplated hereby and thereby
will not result in any such violation or be in conflict with or constitute, with or without the passage of time and/or
giving of notice, either a default
under any such material provision, instrument, judgment, order, writ, decree or
contract or an event which is reasonably likely to result in the
creation of any material lien, charge or
encumbrance upon any assets of the Company or the Subsidiary, suspension, revocation, impairment, forfeiture or non-renewal
of any material permit, license, authorization, or approval applicable
to the Company or the Subsidiary, their business or operations or any of their assets or properties.

-10-

	
 

	
 

	
2.10

	
Agreements;
  Action.

	
 

	
 

	
 

	
 

	
(a)

	
Except
  for the agreements explicitly contemplated hereby and by the Shareholders Rights Agreement there
  are no agreements, understandings or proposed transactions between the
  Company or the Subsidiary and any of their officers, directors or
  shareholders or their affiliates.

	
 

	
 

	
 

	
 

	
(b)

	
There are no Material
  Agreements, judgments, orders, writs or decrees to which the Company or the Subsidiary is a party or by
  which either is bound.

	
 

	
 

	
 

	
 

	
(c)

	
For
  purposes of Section 2.10(a) and (b), “Material
  Agreements” shall mean (i) any agreement or proposed transaction with
  respect to any transaction to which the Company or the Subsidiary is a party and in
  which the amount involved exceeds US$250,000, (ii) any agreement or proposed
  transaction which relates to the Company’s or the Subsidiary’s intellectual property
  and any agreement or proposed transaction which relates to intellectual
  property rights of any third party, (iii) distribution agreements, (iv)
  non-disclosure agreements (other than with employees and distributors of the Company
  or he Subsidiary), (v) any agreement or proposed transaction between the Company
  or the Subsidiary and shareholder of the Company or other Interested Party
  (as such a term is defined under the Israeli Securities Act 1968) of the Company,
  (vi) any written agreement between the shareholders of the Company of which the
  Company has actual knowledge, (vii) any agreement or proposed transaction restricting or
  affecting the development, manufacture or distribution of the Company’s products or
  services, and
  (viii) any agreement or proposed transaction which materially restricts or limits the Company’s
  or the Subsidiary’s right to do business or compete in any area or any field
  with any person, firm or company. All Material Agreements are in full force
  and effect and the Company has no knowledge of the invalidity of or grounds for
  rescission on any of these agreements, or of any intention to terminate any such agreements.
  Neither the Company nor the Subsidiary is a guarantor or indemnitor of any
  indebtedness of any other person, firm or corporation nor is any person, firm
  or corporation a guarantor of any indebtedness of the Company or the
  Subsidiary.

	
 

	
 

	
 

	
 

	
 

	
For
  the purpose of this subsection 2.10(c) all indebtedness, liabilities,
  agreements, understandings,
  instruments, contracts and proposed transactions involving the same person or entity (including persons or
  entities the Company or the Subsidiary has reason to believe are
  affiliated therewith) shall be aggregated for the purpose of meeting the individual minimum dollar amounts of this
  subsection.

-11-

	
 

	
 

	
 

	
 

	
(d)

	
Other
  than as set forth in the Financial Statements, since their incorporation, neither the Company
  nor the Subsidiary has (i) declared or paid any dividends, or authorized or made any distribution upon or
  with respect to any class or series of its capital stock, (ii) incurred any
  indebtedness for money borrowed or any other liabilities, (iii) made any loans or advances to any person, or given
  a guarantee or created any charge,
  lien or other encumbrance on any of its assets and/or its unissued and unpaid share capital for any
  obligation of any person, or (iv) sold, exchanged or otherwise disposed of any of its assets or rights, and in
  respect of (ii), (iii) and (iv)
  other than in the ordinary course of business.

	
 

	
 

	
 

	
 

	
(e)

	
Neither the Company nor
  the Subsidiary are parties to nor are they bound by any contract, agreement or instrument, or subject to
  any restriction under its Memorandum
  or Articles of Association, which is reasonably likely to have a Material Adverse Effect.

	
 

	
 

	
2.11

	
Related-Party
  Transactions.

No employee, officer, or
director of the Company or the Subsidiary or member of his or her immediate family is indebted to the Company or the
Subsidiary, and neither the Company nor the Subsidiary are indebted (or committed
to make loans or extend or guarantee credit) to any of them. To the best of the Company’s knowledge,
none of such persons has any direct or indirect
ownership interest in any firm or corporation with which either the Company or
the Subsidiary are affiliated or with which the Company or the
Subsidiary have a business relationship, or any firm or corporation that
competes with the Company. To the best of the Company’s knowledge, no member of
the immediate family of any officer or director of the Company or the Subsidiary is directly or indirectly interested in any
material contract with the Company.

	
 

	
 

	
2.12

	
Permits.

The
Company and the Subsidiary have all franchises, permits, licenses, and any
similar authority necessary for the conduct of their business as now being
conducted by it, the lack of which is reasonably likely to have a Material Adverse
Effect, and the Company believes that the Company and the Subsidiary can obtain, without undue burden or
expense, any similar authority for the conduct of then respective business as
proposed to be conducted in the Updated Work
Plan. The Company and the Subsidiary are not in default in any material respect under any of such franchises, permits,
licenses, or other similar authority.

	
 

	
 

	
2.13

	
Environmental
  and Safety Laws.

To the best knowledge,
information or belief of the Company, neither the Company nor the Subsidiary is in violation of any applicable
statute, law or regulation relating to the environment or occupational health and safety, and to the best knowledge
information and belief of the Company, no material expenditures are or will be
required in order to comply with any
such existing statute, law or regulation.

	
 

	
 

	
2.14

	
Manufacturing
  and Marketing Rights.

Neither
the Company nor the Subsidiary has granted rights to manufacture, produce, assemble, license,
market, or sell its respective products to any other person and is not bound by any agreement that
affects the Company’s exclusive right to develop, manufacture, assemble, distribute,
market or sell its respective products.

-12-

	
 

	
 

	
2.15

	
Disclosure.

The
Company has fully provided the Investors with all the information that the
Investors have requested
for deciding whether to purchase the Issued Shares and to make the transactions
contemplated in this Agreement and in the
Shareholders Rights Agreement, and all information which the Company
believes is necessary to enable the Investors to make such decisions. Neither this Agreement, the Shareholders
Rights Agreement, nor any other statements
or certificates made or delivered in connection herewith or therewith 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. 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 Investors in writing by the Company.

	
 

	
 

	
2.16

	
Updated
  Work Plan.

The
Updated Work Plan attached hereto as Schedule
2.1 which consists of: (i) the Work Plan dated August 2006, (ii)
the Marketing Penetration Plan dated August 2006, and (iii) the August 2006 Annual
Budget, all previously delivered to the Investors, have been prepared in good
faith by the Company and to the best knowledge, information or belief of the
Company do
not contain any untrue statement of a material fact, nor are there any other
material facts or matters of
which the Company is aware which are reasonably likely to make the statements made therein misleading, except that with respect
to projections and assumptions contained in the Updated Work Plan, the Company represents only that such
projections and assumptions were
prepared and/or made in good faith. The parties agree that such estimates and projections are not purely factual in nature, that
the business of the Company is subject to certain risk factors and no assurance can be or is given that the
assumptions are correct or that any of the forecasts, projections,
expectations or transactions contemplated therein will be attained.

	
 

	
 

	
2.17

	
Registration
  Rights.

Except as provided in the
Shareholders Rights Agreement, the Company has not granted or agreed to grant any registration rights,
including piggyback rights and F-3 registration rights, to any person or
entity.

	
 

	
 

	
2.18

	
Title
  to Property and Assets.

Full and accurate details of
the Company’s and the Subsidiary’s material tangible properties and assets are contained in Schedule 2.18 to this
Agreement. The
Company and the Subsidiary own their
respective property and assets free and clear of all mortgages, liens, loans
and encumbrances. With respect to the property and assets that the Company and
the Subsidiary lease, the Company and the Subsidiary are in compliance
with their respective leases, except for
such non-compliance which is not reasonably likely to have a Material Adverse Effect and the Company and the Subsidiary
hold valid leasehold interests free of any material liens, claims or
encumbrances. No tangible assets owned by the Company are shared by the Company
with any other person.

-13-

	
 

	
 

	
2.19

	
Financial
  Statements

Attached
as Schedule 2.19 is the
Company’s audited consolidated annual financial statements for the
year ended December 31,2005 and reviewed but unaudited financial statements for
the period
ending March 31, 2006 (the “Financial Statements”). The Financial Statements
have been prepared in accordance
with US generally accepted accounting principles applied on a consistent basis throughout the periods indicated
and with each other. The Financial Statements accurately present, in all
material respects, the financial condition and operating results of the Company and the Subsidiary as of
the dates, and for the periods, indicated therein. All proper and necessary books of account and accounting records
have been maintained by the Company, are in its possession and contain accurate
information in accordance with
generally accepted principles consistently applied relating to all transactions
to which the Company has been a
party.

	
 

	
 

	
2.20

	
Financial
  Issues.

	
 

	
 

	
 

	
 

	
(a)

	
The
  Company and the Subsidiary maintain and will continue to maintain a standard system of
  accounting established and administered in accordance with US GAAP with
  reconciliation to Israeli GAAP.

	
 

	
 

	
 

	
 

	
(b)

	
Except
  as stated in the Financial Statements, neither the Company nor the Subsidiary has any liabilities, debts or
  obligations, whether accrued, absolute or contingent,
  incurred, since its Incorporation, except in the ordinary and usual course of business. Since its incorporation, the
  Company has been operating in the
  ordinary and usual course of business.

	
 

	
 

	
2.21

	
Changes.

	
 

	
 

	
 

	
 

	
Since
  March 31, 2006, there has not been:

	
 

	
 

	
 

	
(i)

	
any change in the assets,
  liabilities, financial condition or operating results of the Company or the Subsidiary from that reflected in
  the Financial Statements, except changes in the ordinary course of
  business that have not been, in the aggregate, materially adverse;

	
 

	
 

	
 

	
 

	
(ii)

	
any
  damage, destruction or loss, whether or not covered by insurance, having a Material Adverse
  Effect;

	
 

	
 

	
 

	
 

	
(iii)

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

	
 

	
 

	
 

	
 

	
(iv)

	
any
  satisfaction or discharge of any lien, claim or encumbrance or payment of any
  obligation
  by the Company or the Subsidiary, except in the ordinary course of business
  and that is not material to the assets, properties, financial condition,
  operating results, prospects or business of the Company (as such business is presently conducted and as presently proposed
  to be conducted in the Updated Work Plan).

	
 

	
 

	
 

	
 

	
(v)

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

	
 

	
 

	
 

	
 

	
(vi)

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

	
 

	
 

	
 

	
 

	
(vii)

	
any
  sale, assignment or transfer of any patents, trademarks, copyrights, trade secrets or other
  intangible assets of the Company or the Subsidiary;

-14-

	
 

	
 

	
 

	
 

	
(viii)

	
any
  resignation or termination of employment of any key officer of the Company, and to the best knowledge of the Company
  there is no impending resignation or termination
  of employment of any such officer;

	
 

	
 

	
 

	
 

	
(ix)

	
receipt
  of notice that there has been a loss of, or material order cancellation by, any major customer of
  the Company;

	
 

	
 

	
 

	
 

	
(x)

	
any
  mortgage, pledge, transfer of a security interest in, or lien, created by the
  Company
  or the Subsidiary, with respect to any of their respective material properties or assets,
  except liens for taxes not yet due or payable;

	
 

	
 

	
 

	
 

	
(xi)

	
any
  loans or guarantees made by the Company or the Subsidiary to or for the benefit of its
  respective employees, officers or directors, or any members of their immediate families, other than travel
  advances and other advances made in the ordinary
  course of its business;

	
 

	
 

	
 

	
 

	
(xii)

	
any
  declaration, setting aside or payment or other distribution in respect of any
  of the
  Company’s capital stock, or any direct or indirect redemption, purchase or other acquisition of
  any of such stock by the Company;

	
 

	
 

	
 

	
 

	
 (xiii)

	
to the
  best knowledge of the Company, any other event or condition of any character that is
  reasonably likely to have a Material Adverse Effect; or

	
 

	
 

	
 

	
 

	
(xiv)

	
any
  agreement or commitment by the Company or the Subsidiary to do any of the
  things described in this Section 2.21.

	
 

	
 

	
2.22

	
Tax Returns, Payments and
  Elections.

The Company and the Subsidiary have filed all tax returns and reports
(including information returns and reports)
as required by law. These returns and reports are true and correct in all material
respects. The Company hereby represents and warrants that the provision for
taxes of the Company and the Subsidiary as shown in the Financial Statements is
adequate for taxes due or accrued as of the
date thereof. To the best of their knowledge, the Company and the Subsidiary
have not elected pursuant to any applicable tax law any election that would
have a material effect on the Company, its respective financial condition, its
respective business as presently conducted
or presently proposed to be conducted or any of its respective properties and/or
its respective material assets. The Company and the Subsidiary have never had
any tax deficiency proposed or assessed against them and have not executed any
waiver of any statute of limitations on the
assessment or collection of any tax or governmental charge. None of the Company’s or the Subsidiary’s income tax returns
have ever been audited by governmental authorities or, if audited no
material comments or claims by governmental authorities were made with respect to such audits. Since the date
of the Financial Statements, the Company and the Subsidiary have not
incurred any taxes, assessments or governmental charges other than in the ordinary course of business and the
Company and the Subsidiary have made adequate provisions on their
respective books of account for all taxes, assessments and governmental charges with respect to their
respective business, properties and operations for such period. The Company hereby represents and
warrants that the Company and the Subsidiary have withheld or collected
from each payment made to each of their respective employees, the amount of all taxes (including, but not limited to, Israeli
income taxes) required to be withheld or
collected therefrom, and has paid the same to the proper tax receiving officers or authorized depositories.

-15-

	
 

	
 

	
2.23

	
Minute Books.

The minute books of the Company
and the Subsidiary provided to the Investor’s counsel contain a complete
summary of all meetings of directors and shareholders since the time of their incorporation and reflect all transactions
referred to in such minutes accurately in all material respects.

	
 

	
 

	
 

	
2.24

	
Labor Agreements and Actions;
  Employee Compensation.

	
 

	
 

	
 

	
 

	
(a)

	
Neither the Company nor the Subsidiary is bound by
  or subject to (and none of its assets or
  properties is bound by or subject to) any written or oral, express or implied,
  contract, commitment or arrangement with any labor union other than those provisions
  of general agreements between the Federation of Labor Unions (the “Histadrut”) and the Coordination Bureau
  of Economic Organizations which may be applicable to certain classes
  of employees by virtue of extension orders, and
  no labor union has requested or has sought to represent any of the employees,
  representatives or agents of the Company or the Subsidiary. There is
  no strike or other labor dispute involving the Company or the Subsidiary
  pending, or to the best knowledge of the
  Company, that is likely to have a Material Adverse Effect, nor is the Company aware of any labor
  organization activity involving the Company
  or the Subsidiary. The Company is not aware that any officer or key employee, or that any group of key employees,
  intends to terminate their employment
  with the Company or the Subsidiary, nor does the Company or the Subsidiary
  have a present intention to terminate the employment of any of the foregoing.
  Schedule 2.24 sets forth
  the names of each of the Company’s and the Subsidiary’s
  employees and consultants. The Company and the Subsidiary are or at the Closing will be a party to an employment
  agreement with each employee of the Company and the Subsidiary, as
  applicable. The employment of each officer and
  employee of the Company or the Subsidiary is terminable at the will of the Company or the Subsidiary, subject to the payment
  of severance and other payments as provided by law and/or pursuant to
  any applicable employment agreements. The
  Company and the Subsidiary have complied in all material respects with all
  applicable laws related to employment. Except as set forth in Schedule
  2.24(a) below, the Company and the Subsidiary are not parties to or bound by any currently effective employment
  deferred compensation agreement, bonus plan, incentive plan, profit
  sharing plan, retirement agreement, or other employee compensation agreement.

	
 

	
 

	
 

	
 

	
 

	
Schedule 2.24(a) contains a list of all written and material oral promises, agreements, arrangements and understandings,
  with officers, directors, employees and consultants (other than
  attorneys and accountants) of the Company and the Subsidiary, which are
  presently in effect, detailing the name, title or position, annual salary/compensation (including bonuses,
  commissions, and deferred compensation),
  pensions (including those required by all applicable laws), retirement benefits, company cars, profit
  sharing, and any interests in any incentive
  compensation plan. A copy of the written (and a summary description of any material oral) agreements described in this
  Section 2.24 was delivered to Arnadeus’s
  counsel prior to the date hereof.

-16-

	
 

	
 

	
 

	
 

	
 

	
The severance pay to the employees of the Company
  and the Subsidiary is fully funded or
  provided for in the Financial Statements in accordance with US generally accepted accounting principals. All
  liabilities of the Company in connection with its employees (excluding
  illness pay and advance notice of termination)
  were adequately accrued in the Financial Statements and the Company is not aware of any circumstance whereby
  any employee might demand any
  claim for compensation on termination of employment beyond the amount of statutory
  or contractual severance pay to which such employee may be entitled. All obligations of the Company and the
  Subsidiary with respect to statutorily required severance payments have been fully satisfied or have been
  funded by contributions to
  appropriate insurance funds.

	
 

	
 

	
 

	
 

	
(b)

	
All grantees under the Share Option Plans have
  provided Mr. Eliahu Lerner and/or Mr.
  Yehuda Zviel with a proxy for the exercise of all rights granted to them with
  respect to their shares and options,
  including voting rights, until the consummation
  of an IPO.

	
 

	
 

	
 

	
2.25

	
Government Sponsored Programs.

Schedule
2.25 attached hereto contains an accurate and complete
list of all grants and other benefits,
including tax benefits, received or applied for by the Company or the
Subsidiary from any governmental
authority. The Company has received certain grants in support of its research
and development through the OCS. The Company is in compliance in all respects with all of the terms and provisions of its grants
from the OCS and any other grants or benefits listed as received in Schedule 2.25 and applicable laws and
regulations in order to continue to qualify
for such grants and in order not to give rise to any obligation to prepay the amount of such grants nor to require the Company
to repay to the OCS any amount in excess of such grants before due.

	
 

	
 

	
2.26

	
Brokers.

Other than as set forth in Schedule 8.3 hereunder, the Company
has no contract, arrangement or understanding with any broker, finder or
similar agent with respect to the transactions contemplated by this Agreement.

	
 

	
 

	
2.27

	
Significant Customers and
  Suppliers.

No customer, sub-contractor or
supplier that is significant to the Company or the Subsidiary, has terminated,
materially reduced or threatened to terminate or materially reduce or limit (i)
its relationship with the Company or the Subsidiary, or (ii) its purchases from
or provision of products or services
to the Company or the Subsidiary, as the case may be.

	
 

	
 

	
2.28

	
Insurance.

The Company and the Subsidiary
have in full force and effect insurance policies of financially sound and reputable insurers, as to their
respective properties and business, in scope and amount customary and reasonable for the businesses in which the Company
and the Subsidiary are engaged or
presently propose to engage, with coverage sufficient in amount to allow them to replace any of their material
properties that might be damaged or destroyed or compensation by or for
the Company and the Subsidiary. The Company and the Subsidiary have not done or suffered anything to be done
that has rendered or might render any policies of insurance void or voidable and the Company and the Subsidiary have
complied in all material respects
with all conditions contained in such policies. Schedule 2.28 sets forth a list of insurance policies currently maintained by the
Company and the Subsidiary and the coverage
thereunder.

-17-

	
 

	
 

	
 

	
2.29

	
Effectiveness; Survival;
  Indemnification

	
 

	
 

	
 

	
 

	
(a)

	
Closing: Each representation and warranty of the Company
  is deemed to be made on the date
  of this Agreement and at the Closing, and shall survive and remain in full force and effect after the Closing for a
  period until the earlier of forty eight (48) months thereafter or the initial
  public offering of the Company’s securities, except for the each of the representations and warranties made in
  Sections 2.2 and 2.6 that shall be
  in effect indefinitely, and the representations and warranties made in Sections 2.7, 2.8 and 2.22 which shall remain
  in full force and effect after the Closing
  for a period of 7 (seven) years or the initial public offering of the Company’s securities, whichever is the earlier,
  In the event of any breach or misrepresentation
  of any covenant, warranty or representation made by the Company under
  this Agreement, the Company shall indemnify the Investors and hold them harmless from any and all loss,
  damage, liability and expense sustained or incurred by the Investors as a result of or in connection with said
  breach or misrepresentation for an
  amount not exceeding the sum of the Purchase Price actually paid by such Investor to the Company
  pursuant to this Agreement.

	
 

	
 

	
 

	
 

	
(b)

	
Notwithstanding the foregoing,
  any limitations set forth in subsection 2.29 shall not apply to any claim for indemnification that
  is based on a willful or intentional breach
  or misrepresentation of any covenant, warranty or representation made by the Company under this Section 2, and the representations
  and warranties made by the Company
  under this Section 2 in respect of any such claim shall be unlimited by time.

	
 

	
 

	
 

	
 

	
(c)

	
Any amount due to any Investor
  as a result of a claim for indemnification shall be determined after deducting or setting off, as the
  case may be, all monetary recovery
  from insurers and other third parties and any savings of taxes or other governmental or administrative levies. For the
  avoidance of doubt, the limitation under this Section 2.29(c), shall not
  restrict any such insurer or other third parties from claiming back from the Company any moneys
  paid to the Investors pursuant to
  this Section 2.29(c) subject, however, to the restrictions and limitations
  set forth in Section 2.29(a) and
  (b) above.

	
 

	
 

	
 

	
2.30

	
Indemnity Procedure.

	
 

	
 

	
 

	
Promptly after receipt by an
  Investor of notice of the commencement of any action, proceeding, or investigation of any third party
  in respect of which indemnity may be sought as provided in subsection 2.29 above, it shall accordingly notify the
  Company (the “Indemnitor”).
  The Company shall promptly
  assume the defense of the Investor with counsel reasonably satisfactory to the Investor, and the fees and
  expenses of such counsel shall be at the sole cost and expense of the
  Company. The Investor will cooperate with the Indemnitor in the defense of any action, proceeding, or investigation
  for which the Company assumes the
  defense. The Indemnitor shall not be liable for the settlement of any action,
  proceeding, or investigation
  effected without its consent, which consent shall not be unreasonably withheld.

	
 

	
 

	
 

-18-

	
 

	
 

	
 

	
3.

	
Representations and Warranties of the Investors

Each Investor hereby represents
and warrants that:

	
 

	
 

	
3.1

	
Authorization: Ownership of
  Shares.

               All
action on the part of the Investor, its officers, directors and shareholders
necessary for the authorization,
execution and delivery of this Agreement and the Shareholders Rights Agreement,
and the performance of all obligations hereunder has been taken or will be
taken prior to the Closing, and this
Agreement and the Shareholders Rights Agreement constitutes a valid and legally binding obligation of the
Investor, enforceable in accordance with its terms, subject only to laws affecting the rights and
remedies of creditors. The Investor is duly organized and properly registered in the jurisdiction of its
organization. The execution, delivery
and performance of this Agreement and the Shareholders Rights Agreement, will
not violate any provision of the
corporate documents of the Investor, or of any instrument, judgment, order, writ, decree or contract to which
it is a party or by which it is bound or, to its best knowledge, of any
provision of law, rule or regulation applicable to the Investor.

	
 

	
 

	
3.2

	
Purchase Entirely for Own Account.

               This
Agreement is made with the Investor in reliance upon the Investor’s representation to the Company, which by the
Investor’s execution of this Agreement the Investor hereby confirms, that the Issued Shares (for the purposes of
this Section 3, collectively, the “Securities”) will be acquired for
investment for the Investor’s own account, not as a nominee or agent, and not
with a view to the resale or distribution of any part thereof, and that
the Investor has no present intention of selling, granting any participation
in, or otherwise distributing the same. By
executing this Agreement, the Investor further represents that it does not have
any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to such
person or to any third person, with respect to any of the Securities.

	
 

	
 

	
 

	
3.3

	
Disclosure of Information.

	
 

	
 

	
 

	
               The
  Investor represents that it is a sophisticated investor with the experience
  in making venture capital investments,
  including hi high-tech companies and projects. It was not organized for the
  specific purpose of acquiring the Issued Shares. It is able financially to
  bear the risks involved in such
  investment and it has received all the information it considers necessary
  or appropriate for deciding whether to purchase the Issued Shares. The
  Investor further represents that it has
  had an opportunity to ask questions and receive answers from the Company
  regarding the Company, its business, management, financial affairs and the
  terms and conditions of the offering of
  the Issued Shares. The foregoing, however, does not limit or modify
  the representations and warranties in Section 2 of this Agreement or the
  right of the Investor to rely thereon.

	
 

	
 

	
 

	
3.4

	
Office of the Chief Scientist

	
 

	
 

	
               It
  is aware that the Company has received financing for certain research and development
  projects through the OCS and it is aware, and agrees to the application, of
  the provisions of the Law for the
  Encouragement of Industrial Research and Development, 5744-1984 and of
  Regulations promulgated thereunder, to the Company, including, inter alia:

	
 

	
 

	
 

	
 

	
(a)

	
the Company’s obligation to pay
  royalties to the State of Israel;

-19-

	
 

	
 

	
 

	
 

	
(b)

	
that the manufacture of any
  product developed as a result of any project so funded take place in the State of Israel unless the
  Research Committee of the OCS pursuant
  to the above law otherwise determines, subject to and pursuant to the above law; and

	
 

	
 

	
 

	
 

	
(c)

	
that know-how derived from any project so funded may
  not be transferred to third parties
  without the approval of the Research Committee of the OCS subject to and
  pursuant to the above law.

	
 

	
 

	
 

	
3.5

	
Israeli Securities Law

	
 

	
 

	
 

	
 

	
If listed in Schedule 3.5 A it is a “Venture
  Capital Fund” as defined in the Appendix to the Israeli Securities Law,
  5768-1968 and if listed in Schedule 3.5
  B it confirms that it is not a resident of Israel and
  that no offer to purchase securities of the Company was made to it in Israel.

	
 

	
 

	
 

	
4.

	
Conditions of Investor’s Obligations
  at Closing.

	
 

	
 

	
 

	
               The
  obligations of the Investors under subsections 1.1 and 1.3 of this Agreement
  are subject to the fulfillment on or
  before the Closing, of each of the following conditions (any or all of which may be waived, in whole or in
  part, by the Majority Investors.

	
 

	
 

	
 

	
4.1

	
Representations and
  Warranties.

	
 

	
 

	
 

	
               The
  representations and warranties contained in Section 2 shall be true on and as
  of the Closing as though such representations and warranties had been made on
  and as of the date of the Closing.

	
 

	
 

	
 

	
4.2

	
Performance.

	
 

	
 

	
 

	
               The
  Company shall have performed and complied with all agreements, obligations
  and conditions contained in this
  Agreement that are requited to be performed or complied with by it on or
  before the Closing.

	
 

	
 

	
 

	
4.3

	
Proceedings and Documents.

	
 

	
 

	
 

	
               All
  corporate and other proceedings in connection with the transactions
  contemplated at the Closing, and
  all documents incident thereto shall be reasonably satisfactory in form and substance to the Investors’ counsel, and the
  Investors shall have received all such counterpart original and certified or other copies of such
  documents as they may reasonably request.

	
 

	
 

	
 

	
4.4

	
Consents and Approvals,
  Delivery of Documents

	
 

	
 

	
 

	
               The
  Company shall have received and shall have provided the Investors with
  copies, satisfactory to the Investors’ counsel, of all permits,
  consents, approvals and authorizations which
  shall be necessary or required to consummate this Agreement, the Shareholders
  Rights Agreement and to issue and sell the Issued Shares, including
  without limitation the waivers, consents
  and approvals set forth in Section 1.3 hereof, and OCS and Investments
  Center’s approval for the
  transactions contemplated hereby and for the issuance of the Issued Shares. All
  the actions to be taken as set forth in Section 1.3 above shall have been
  completed to the satisfaction of the
  Investors. Documents to be delivered by the Company, as set forth in Section
  1.3 above, shall be delivered. All such documents shall be satisfactory in
  form and substance to the Investors.

-20-

	
   

  	
   

  
	
  4.5

  	
  Opinion of Company Counsel.

  
	
   

  	
   

  
	
                 On
  or prior to the Closing, the Investors shall have received from Cohen, Cohen,
  Yaron-Eldar & Co. Law Offices, counsel for the Company, an opinion, dated
  as of Closing, in form and substance acceptable to Investors’ counsel
  attached hereto as Schedule 4.5.

  
	
   

  	
   

  
	
  4.6

  	
  Shareholders Rights Agreement

  
	
   

  	
   

  
	
                 On
  or prior to the Closing, the Shareholders Rights Agreement shall have been
  amended as set forth in Exhibit B hereto.

  
	
   

  	
   

  
	
  4.7

  	
  Absence of Adverse Changes

  
	
   

  	
   

  
	
                 From
  the date hereof until the Closing, there will have been no material adverse
  change in the financial or business condition or prospects of the Company, in
  the sole judgment of the Majority Investors.

  
	
   

  	
   

  
	
  4.8

  	
  No Action.

  
	
   

  	
   

  
	
  No action, suit, or proceeding shall be pending or
  threatened before any court or quasi-judicial or administrative agency of any
  state, municipal, or foreign jurisdiction or before any arbitrator wherein an
  unfavorable injunction, judgment, order, decree, ruling, or charge would: (i)
  prevent consummation of any of the transactions contemplated by this
  Agreement; (ii) cause any of the transactions contemplated by this Agreement
  to be rescinded following consummation.

  
	
   

  	
   

  
	
  4.9

  	
  Amended Articles of Association.

  
	
   

  	
   

  
	
                 Prior
  to the Closing, the Amended Articles shall have been adopted by the Company’s
  shareholders.

  
	
   

  	
   

  
	
  4.10

  	
  Officer’s Certificate.

  
	
   

  	
   

  
	
                 On
  or prior to the Closing, a certificate from the chief executive officer of
  the Company, certifying as to the matters set forth in Section 4.1, 4.2, 4.7
  and 4.8 in the form attached hereto as Schedule
  4.10, shall have been delivered to the Investors.

  
	
   

  	
   

  
	
  4.11

  	
  Due Diligence Review

  
	
   

  	
   

  
	
                 The
  Investor’s legal, business and financial due diligence review of the Company
  and the Subsidiary shall have been completed to the sole and complete
  satisfaction of the Investors and their counsel.

  
	
   

  	
   

  
	
  4.12

  	
  Reserved

  
	
   

  	
   

  
	
  4.13

  	
  Directors and Officers’ Insurance

  
	
   

  	
   

  
	
                 Prior
  to the Closing, the Company shall obtain and maintain in full force and
  effect, Directors and Officers insurance policies of financially sound and
  reputable insurers, covering the directors in the Company (including the
  newly designated directors) in the scope and amount acceptable to the
  Majority Investors, and in no event less than US$3,000,000.

  

-21-

	
   

  	
   

  
	
  4.14

  	
  Management Rights Letter

  
	
   

  	
   

  
	
                 The
  Company shall have executed and delivered to Amadeus a Management Rights
  Letter in the form attached hereto as Schedule
  B.

  
	
   

  	
   

  
	
  4.15

  	
  Compliance with Anti Laundering Requirements.

  
	
   

  	
   

  
	
                 The
  Company, its directors and each Joining Investor shall have executed and
  delivered to Amadeus the Compliance with Anti Laundering Requirements Letter
  in the form approved by Amadeus.

  
	
   

  	
   

  
	
  5.

  	
  Conditions
  of the Company’s Obligations at Closing.

  
	
   

  	
   

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

  
	
   

  	
   

  
	
  5.1

  	
  Representations and Warranties.

  
	
   

  	
   

  
	
                 The
  representations and warranties of the Investors contained in Section 3 shall
  be true on and as of the Closing with the same effect as though such
  representations and warranties had been made on and as of the Closing.

  
	
   

  	
   

  
	
  5.2

  	
  Payment of Consideration.

  
	
   

  	
   

  
	
                 The
  Investors shall have delivered the consideration specified in Section 1.1.

  
	
   

  	
   

  
	
  5.3

  	
  Shareholders Rights Agreement

  
	
   

  	
   

  
	
                 On
  or prior to the Closing, the Shareholders Rights Agreement shall have been
  amended as set forth in Exhibit B hereto.

  
	
   

  	
   

  
	
  5.4

  	
  Amended Articles of Association.

  
	
   

  	
   

  
	
                 Prior
  to the Closing, the Amended Articles shall have been adopted by the Company’s
  shareholders.

  
	
   

  	
   

  
	
  5.5

  	
  Consents and Approvals

  
	
   

  	
   

  
	
                 The
  Company shall have received all permits, consents, approvals and
  authorizations which shall be necessary or required to consummate this
  Agreement and to issue and sell the Issued Shares and shall have received the
  Board and shareholders approval for the transfer of the Founders’ Purchased
  Shares.

  
	
   

  	
   

  
	
  5.6

  	
  No Judgment or Order.

  
	
   

  	
   

  
	
                 There
  shall not be on the Closing, any judgment or order of a court of competent
  jurisdiction or any ruling, regulation or order of any agency of the Israeli
  government which would prohibit or have the effect of preventing consummation
  of the sale of the Issued Shares.

  

-22-

	
   

  	
   

  
	
  5A.

  	
  Condition
  of the Company’s and the Investors’ Obligations at Closing; Closing of
  Amadeus-Founders Agreement

  

	
   

  	
   

  
	
   

  	
  Immediately prior to the Closing, the
  Amadeus-Founders Agreement, in the form attached hereto as Schedule C, shall have been closed (being
  understood and agreed that the Closing of the Amadeus-Founders Agreement is
  conditioned upon the Closing hereof), all of the Founders’ Shares shall be
  owned and held by Amadeus, and registered in the Company’s shareholders
  register as such, and the Company undertakes to cooperate in the registration
  of Amadeus as a shareholder in respect thereto.

  
	
   

  	
   

  
	
  5B.

  	
  Pre-Closing Agreements

  
	
   

  	
   

  
	
                 The
  parties agree as follows with respect to the period from the execution of
  this Agreement and until the earlier to occur of: (i) September 30,2006; (ii)
  the Closing:

  
	
   

  	
   

  
	
                 5B.1
  General. Each of the Parties will use its best efforts to take all action and
  to do all things necessary, proper, or advisable in order to consummate and
  make effective the transactions contemplated by this Agreement and the
  ancillary agreements (including satisfaction of the Closing conditions set
  forth in Sections 4 and 5 above).

  
	
   

  	
   

  
	
                 5B.2
  Operation of Business. The Company will not engage in any practice, take any
  action, or enter into any transaction outside the ordinary course of
  business. Without limiting the generality of the foregoing, the Company will
  not (unless otherwise set forth in this Agreement): (i) authorize or effect
  any change in its Articles of Association; (ii) issue any new shares of the
  Company, cause or permit any sale or conveyance of any of the outstanding
  shares of the Company, or sell, assign, transfer or convey any of the assets
  of the Company; or (iii) solicit any offers for, provide detailed information
  in response to any unsolicited offers for, or conduct any negotiations with
  any other person or entity in respect of the sale of shares in the Company,
  or the assets of the Company or any substantial portion of such assets, in
  each such case - other than the grant of options or shares to
  directors/employees/consultants in the ordinary course of business or the
  issuance of snares in connection with an option or warrant exercise
  outstanding at the date hereof and other than any other action the Company is
  required to carry out prior to the Closing as set forth herein.

  
	
   

  	
   

  
	
  6.

  	
  Covenants of the Company.

  
	
   

  	
   

  
	
  6.1

  	
  Use of Proceeds.

  
	
   

  	
   

  
	
                 The
  Company shall utilize the funds received from the Investors under this
  Agreement in accordance with the budget of the Company attached hereto as Schedule 2.1, as updated from time to
  time in by the Board of Directors of the Company.

  
	
   

  	
   

  
	
  6.2

  	
  Amended Articles of Association.

  
	
   

  	
   

  
	
                 Within
  14 days of the Closing, the Company shall file the Amended Articles with the
  Israeli Registrar of Companies.

  
	
   

  	
   

  
	
  7.

  	
  Press Release. No
  party, other than Intel Atlantic Inc. (with respect to which the terms of the
  Side Agreement of even date hereof shall apply) shall issue any public
  statement or release concerning this Agreement and the transactions
  contemplated hereby without the prior written approval of the Company and
  Amadeus.

  

-23-

	
   

  	
   

  
	
  8.

  	
  Miscellaneous.

  
	
   

  	
   

  
	
  8.1

  	
  Survival of Representations; Indemnification.

  

	
   

  	
   

  
	
                 The
  warranties, representations and covenants of the Company and the Investors
  contained in or made pursuant to this Agreement shall survive the execution
  and delivery of this Agreement and the Closing and shall in no way be
  affected by any investigation of the subject matter thereof made by or on
  behalf of the Investors or the Company.

  
	
   

  	
   

  
	
  8.2

  	
  Successors and Assigns.

  
	
   

  	
   

  
	
                 Except
  as otherwise provided herein, the terms and conditions of this Agreement
  shall inure to the benefit of and be binding upon the respective successors
  and assigns of the parties (including Permitted Transferees, as such term is
  defined in the Company’s Amended Articles, of any Issued Shares and
  Conversion Shares). Nothing in this Agreement, express or implied, is
  intended to confer upon any party other than the parties hereto or their
  respective successors and assigns any rights, obligations, or liabilities
  under or by reason of this Agreement, except as expressly provided in this
  Agreement.

  
	
   

  	
   

  
	
  8.3

  	
  Finders Fee

  
	
   

  	
   

  
	
                 Each
  of the Company and the Investors represent as to themselves, that, other than
  as stated in Schedule 8.3, no person or entity shall be entitled to any broker’s or finder’s fees or any
  other commission or similar fee in connection with this Agreement. The
  Company agrees to indemnify and to hold harmless the Investors and the
  Investors agree to indemnify and hold harmless the Company and the Founders
  from any liability for any commission or compensation in the nature of a
  finders’ fee (and the costs and expenses of defending against such liability
  or asserted liability) for which the Investors or the Company, or any of
  their respective officers, partners, employees, or representatives are
  respectively responsible.

  
	
   

  	
   

  
	
  8.4

  	
  Governing Law.

  
	
   

  	
   

  
	
                 The
  Company and the Investors agree that this Agreement shall be governed by and
  construed under the laws of the State of Israel and that the exclusive place
  of jurisdiction in any matter arising out of or in connection with this
  Agreement shall be the applicable Tel Aviv Court.

  
	
   

  	
   

  
	
  8.5

  	
  Counterparts.

  
	
   

  	
   

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

  
	
   

  	
   

  
	
  8.6

  	
  Titles and Subtitles.

  
	
   

  	
   

  
	
                 The
  titles and subtitles used in this Agreement are used for convenience only and
  are not to be considered in construing or interpreting this Agreement.

  
	
   

  	
   

  
	
  8.7

  	
  Notices.

  
	
   

  	
   

  
	
                 Unless
  otherwise provided, any notice required or permitted under this Agreement
  shall be given in writing, shall be effective when given, and shall in any
  event be deemed to be given upon receipt or, if earlier, (a) five (5) days
  after the day of deposit with a National Post Office, if delivered by first
  class mail, postage prepaid, if addressed to a parry in the same country or
  fourteen (14) after deposit with a National Post Office, if delivered by
  first class mail, postage prepaid, if addressed to a party in a different
  country, (b) upon delivery, if delivered by hand (c) five (5) days after the
  day of deposit with recognized overnight courier service freight prepaid or (d) one (1)
  business days after the business day of facsimile transmission, if delivered
  by facsimile transmission with a copy by first class mail, postage prepaid,
  and each notice shall be addressed to the party to be notified at the address
  set forth in this section as follows:

  

-24-

	
   

  	
   

  	
   

  
	
  For the
  Company.

  	
   

  
	
  Negevtech Ltd.

  	
   

  
	
  attn:

  	
  CEO

  	
   

  
	
  address:

  	
  Beit Tamar

  12 Hamada St.

  Rehovot 76122

  	
   

  
	
   

  	
   

  	
   

  
	
  tel:

  	
  08-9366050

  	
   

  
	
  fax:

  	
  08-9366051

  	
   

  

	
   

  	
   

  
	
  For the
  Investors:

  
	
   

  	
   

  
	
  As set out on Schedule A.

  
	
   

  	
   

  
	
  or at such other address
  as such party may designate by fourteen (14) days’ advance written notice to
  the other parties.

  
	
   

  	
   

  
	
  8.8

  	
  Expenses.

  
	
   

  	
   

  
	
                 Upon
  Closing, the Company will pay from the proceeds of the Investment the due
  diligence, legal and other professional fees and expenses actually incurred
  by Amadeus in connection with this transaction (“Expenses”), up to a total of
  $20,000 (plus VAT, if
  applicable). In the event that prior to the Closing, the Company decides not
  to consummate the transaction contemplated hereunder, then the Company shall
  pay all of Amadeus’ Expenses up to the point in time the transaction
  contemplated hereunder was abandoned, but in no event more than US$20,000.

  
	
   

  	
   

  
	
  8.9

  	
  Entire Agreement;
  Amendments and Waivers.

  
	
   

  	
   

  
	
                 This
  Agreement (together with the schedules and exhibits attached hereto) contains
  the entire understanding of the parties with respect to its subject matter
  and all prior negotiations, discussions, commitments, and understandings
  heretofore between them with respect thereto are merged herein. Any term of
  this Agreement may be amended, directly or indirectly, and the observance of
  any term of this Agreement may be waived (either generally or in a particular
  instance and either retroactively or prospectively), only with the written
  consent of the Company and the Majority Investors, excluding, however, the
  number of shares issued to each Investor and the Price Per Share, that may
  not be changed with respect to such Investor unless such Investor has
  consented thereto in writing.

  
	
   

  	
   

  
	
  8.10

  	
  Severability.

  
	
   

  	
   

  
	
                 If
  one or more provisions of this Agreement are held to be unenforceable under
  applicable law, such provision shall be excluded from this Agreement and the
  balance of the Agreement shall be interpreted as if such provision were so
  excluded and shall be enforceable in accordance with its terms.

  

-25-

[Remainder of Page
Intentionally Left Blank]

-26-

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

	
 

	
 

	
 

	
 

	
 

	
Amadeus III Affiliates Fund LP

	
 

	
 

	
Amadeus III

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
By:

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
Name:

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
Title:

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Date:

	
 

	
 

	
Date:

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Negevtech Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	Name:

	
  Rafi Yizhar

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	Title:

	
Director

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Date:

	
26/9/06

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

-27-

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

	
 

	
 

	
 

	
 

	
 

	
Amadeus III Affiliates Fund LP

	
 

	
 

	
Amadeus III

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
By:

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
Name:

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
Title:

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Date:

	
 

	
 

	
Date:

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Negevtech Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
 

	Name:

	
Eddy Shalev

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	Title:

	
Director

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Date:

	
27th September, 2006

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

-27-

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

	
 

	
 

	
 

	
 

	
 

	
Amadeus III Affiliates Fund LP

	
 

	
 

	
Amadeus III

	
 

	
 

	
 

	
 

	
 

	
By:

	

	
 

	
By:

	

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
Name:

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
Title:

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Date:

	
 

	
 

	
Date:

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Negevtech Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	Name:

	
 

	
 

	
 

	
 

	 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	Title:

	
 

	
 

	
 

	
 

	 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Date:

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

-27-

[2nd
signature page to Series BB-4 Preferred Share Purchase Agreement in Negevtech
Ltd. dated September 26, 2006]

IN
WITNESS WHEREOF, we affix our
signatures hereto as of the date set forth above.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
SVE Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
Wellington Partners Ventures III Technology Fund,
  L.P.

	
 

	
Intel Atlantic, Inc.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
By:

	
  Dr. Meir Barel 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
Title:

	
  Managing Director

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
  Ernst Mannheimer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Title:

	
  Authorized Signatory

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Star Management of Investments No. II (2000) L.P.

  By: Dr. Meir Barel
Title: Managing Director

	
 

	
Star Growth Enterprise, a German Civil Law
  Partnership (with limitation of liability)
By: SVM Star Ventures Managementgesellschaft
  mbH Nr. 3

	
 

	
Genesis Partners II, L.D.C.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
Dr. Meir Barel 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Title:

	
Managing Director

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Genesis Partners II (Israel) L.P.

	
 

	
Poalim Ventures Ltd.

	
 

	
Poalim Ventures I Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
By:

	
 

	
 

	
By:

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	

	
Title:

	
 

	
 

	
Title:

	
 

	
 

	
Title:

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
Poalim Ventures II L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

-28-

IN
WITNESS WHEREOF, we affix our
signatures hereto as of the date set forth above.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	

	
 

	

	
 

	
SVE Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
Wellington Partners Ventures III Technology Fund,
  L.P.

	
 

	
Intel Atlantic, Inc.

	
 

	
 

	
 

	
 

	
By:

	
GARY KERSHAW

	
 

	
By:

	
Dr. Meir Barel 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Print Name:

	
 

	
 

	
Title:

	
Managing Director

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
Title:

	
Assistant Treasurer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Star Management of Investments No. II (2000) L.P.

  By: Dr. Meir Barel
Title: Managing Director

	
 

	
Star Growth Enterprise, a German Civil Law
  Partnership (with limitation of liability)
By: SVM Star Ventures
  Managementgesellschaft mbH Nr. 3

	
 

	
Genesis Partners II, L.D.C.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
Dr. Meir Barel 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Title:

	
Managing Director

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Genesis Partners II (Israel) L.P.

	
 

	
Poalim Ventures Ltd.

	
 

	
Poalim Ventures I Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
By:

	
 

	
 

	
By:

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	

	
Title:

	
 

	
 

	
Title:

	
 

	
 

	
Tile:

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
Poalim Ventures II L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

[2nd
signature page to Series BB-4 Preferred Share Purchase Agreement in Negevtech
Ltd. dated September 26, 2006]

-28-

[2nd
signature page to Series BB-4 Preferred Share Purchase Agreement in Negevtech
Ltd. dated September 26, 2006]

IN
WITNESS WHEREOF, we affix our
signatures hereto as of the date set forth above.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
SVE Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
Wellington Partners Ventures III Technology Fund,
  L.P.

	
 

	
Intel Atlantic, Inc.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
By:

	
 

	
 

	
By:

	
Dr. Meir Barel 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
Title:

	
 

	
 

	
Title:

	
 

	
 

	
Title:

	
Managing Director

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	
 

	

	
 

	

	
Star Management of Investments No. II (2000) L.P.

  By: Dr. Meir Barel
Title: Managing Director

	
 

	
Star Growth Enterprise, a German Civil Law
  Partnership (with limitation of liability)
By: SVM Star Ventures Managementgesellschaft
  mbH Nr. 3

	
 

	
Genesis Partners II, L.D.C.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
Dr. Meir Barel 

	

	
By:

	
Eddy Shalev

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Title:

	
  Managing Director

	
 

	
Title:

	
Founder & Managing Partner

	

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Genesis Partners II (Israel) L.P.

	
 

	
Poalim Ventures Ltd.

	
 

	
Poalim Ventures I Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
Eddy Shalev

	
 

	
By:

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	

	
Title:

	
Founder & Managing Partner

	
 

	
Title:

	
 

	
 

	
Tile:

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
Poalim Ventures II L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

-28-

[2nd
signature page to Series BB-4 Preferred Share Purchase Agreement in Negevtech
Ltd. dated September 26, 2006]

IN
WITNESS WHEREOF, we affix our
signatures hereto as of the date set forth above.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
SVE Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
Wellington Partners Ventures III Technology Fund,
  L.P.

	
 

	
Intel Atlantic, Inc.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
By:

	
Dr. Meir Barel 

	

	
 

	
 

	

	
 

	
 

	
 

	
Title:

	
 

	
 

	
Title:

	
 

	
 

	
Title:

	
Managing Director

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Star Management of Investments No. II (2000) L.P.

  By: Dr. Meir Barel
Title: Managing Director

	
 

	
Star Growth Enterprise, a German Civil Law
  Partnership (with limitation of liability)
By: SVM Star Ventures
  Managementgesellschaft mbH Nr. 3

	
 

	
Genesis Partners II, L.D.C.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
Dr. Meir Barel 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Title:

	
  Managing Director

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	

	
 

	
 

	

	

	
 

	

	
 

	

	
Genesis Partners II (Israel) L.P.

	
 

	
Poalim Ventures Ltd.

	
 

	
Poalim Ventures I Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
By:

	
 

	
 

	
By:

	
 

	

	
 

	
 

	

	
 

	
 

	

	
Title:

	
 

	
 

	
Title:

	
 

	
 

	
Tile:

	
 

	

	
 

	
 

	

	
 

	
 

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
Poalim Ventures II L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

-28-

	
 

	
 

	
[2nd signature page to
  Series BB-4 Preferred Share Purchase Agreement in Negevtech Ltd. dated
  September 26, 2006]

	
 

	
 

	
IN WITNESS
  WHEREOF, we affix our
  signatures hereto as of the date set forth above.

	
 

	
 

	
SVE Star Ventures Enterprises
  GmbH & Co. No. IX KG

	
 

	
 

	
By:

	
SVM Star Ventures Management
  GmbH No. 3

	
 

	
 

	
BY:

	

	
 

	

	
 

	
Dr.
  Meir Barel - Managing Director

	
 

	
 

	
Star Mangement of Investments
  No. II (2000) L.P.

	
 

	
 

	
By:

	

	
 

	

	
 

	
Dr.
  Meir Barel - Director

	
 

	
Star Growth Enterprise,
  & German Civil Law Partnership (with limitation of libility)

	
 

	
 

	
By:

	
SVM Star Ventures Management GmbH No. 3

	
 

	
 

	
By:

	

	
 

	

	
 

	
Dr.
  Meir Barel - Managing Director

	
 

	
SVM Star Ventures
  Managementgesellschaft mbH Nr. 3

	
 

	
 

	
By:

	

	
 

	

	
 

	
Dr.
  Meir Barel - Managing Director

-27-

Schedule A  

List of Investors

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Investor 

	
 

	
Purchase

Price $ 

	
 

	
Purchased
 Shares# 

	
 

	
Address 

	

	
 

	

	
 

	

	
 

	

	
Preferred BB-4 Shares

	
 

	
SVE Star Ventures Enterprises GmbH & Co.
  No. IX KG.

	
 

	
295,012

	
 

	
121,135

	
 

	
Star Ventures Management

  Attn. Michael Sailer

  Possartstrasse 9

  D-81679 Munich 

  Germany

	
 

	
 

	
 

	
 

	
 

	
 

	
Star Management of Investments No. II (2000)
  L.P.

	
 

	
38,759

	
 

	
15,915

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Star Growth Enterprise, a German Civil Law
  Partnership (with limitation of Liability)

	
 

	
296,227

	
 

	
121,634

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Poalim Ventures Ltd.

	
 

	
47,015

	
 

	
19,305

	
 

	
Alrov Tower, 46 Rothschild Blvd, Tel Aviv 66883,
  Israel 

  Number for notices being delivered by facsimile: 03-5675760

	
 

	
 

	
 

	
 

	
 

	
 

	
Poalim Ventures I Ltd.

	
 

	
72,331

	
 

	
29,700

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Poalim Ventures II L.P.

	
 

	
146,652

	
 

	
60,217

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Genesis Partners II, L.D.C.

	
 

	
409,556

	
 

	
168,168

	
 

	
Ackerstein Towers B 

  11 HaMenofim St 

  Herzliya, 46733 

  Israel

	
 

	
 

	
 

	
 

	
 

	
 

	
Genesis Partners II (Israel) L.P.

	
 

	
60,444

	
 

	
24,819

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Intel Atlantic, Inc.

	
 

	
147,999

	
 

	
60,770

	
 

	
c/o Intel Corporation 

  2200 Mission College Boulevard 

  M/S SC4-203 

  Santa Clara, CA 95052 

  USA

	 

	
Wellington Partners Venture III Technology
  Fund L.P.

	
 

	
886,000

	
 

	
363,801

	
 

	
Theresienstrasse 6, 80333 Muenchen, Germany

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Amadeus III*

	
 

	
2,186,906

	
 

	
897,966

	
 

	
Mount Pleasant House 

  2 Mount Pleasant 

  Cambridge 

  CB3 0RN

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Amadeus III Affiliates Fund LP**

	
 

	
44,631

	
 

	
18,326

	
 

	
2711 Centerville Road 

  Suite 400, Wilmington, 

  New Castle County, 

  Delaware 19808

* In
addition, Aamdeus III shall pay the Company its portion of the Conversion
Consideration ($1,384,528) in consideration for the conversion of 2,387,613
Founders’ Shares.

** In addition, Aamdeus III Affiliates Fund LP
shall pay the Company its portion of the Conversion Consideration ($28,256) in
consideration for the conversion of 48,727 Founders’ Shares.

Schedule B  

Date: September
26, 2006 

	
 

	
 

	
To:

	
1.

	
Amadeus III

	
 

	
Mount Pleasant House

	
 

	
2 Mount Pleasant

	
 

	
Cambridge

	
 

	
CB3 0RN

	
 

	
 

	
2.

	
Amadeus III Affiliates Fund LP

	
 

	
2711 Centerville Road,

	
 

	
Suite 400, Wilmington,

	
 

	
New Castle County,

	
 

	
Delaware 19808

	
 

	
 

	
(the “Investors”)

Re: Management Rights

Dear Ms./ Sirs,

This letter will confirm our
agreement that pursuant to and effective as. of the purchase of an aggregate of 3,352,632 shares of Series BB-4
Preferred Shares of Negevtech, Ltd. (hereinafter the “Company”), pursuant to that certain Series BB-4 Preferred
Share Purchase Agreement, dated September
26, 2006 (the “Share Purchase Agreement”) by
and between the Investors, the Company
and the other entities set forth therein, the Investors, for as long as they
hold shares of the Company, will be
entitled to the following contractual management rights, in addition to rights
to non-public financial information, inspection rights, and other rights
specifically provided to all investors in the
Share Purchase Agreement and its ancillary documents (including without limitation, the Investors Rights Agreement (as
defined in the Share Purchase Agreement):

	
 

	
 

	
 

	
 

	
(1)

	
The Investors shall be entitled to consult with and
  advise management of the Company on significant business issues, including
  management’s proposed annual operating plans, and management will meet with Investors regularly during each year at the
  Company’s facilities at mutually
  agreeable times for such consultation and advice and to review progress in achieving said plans.

	
 

	
 

	
 

	
 

	
(2)

	
The Investors may examine the
  books and records of the Company and inspect its facilities and may request information at reasonable times
  and intervals concerning the general status of the Company’s financial conditions and operations, provided that
  access to highly confidential
  proprietary information and facilities need not be provided to the Investors.

	
 

	
 

	
 

	
 

	
(3)

	
If and for so long as the
  Investors are not represented on the Company’s Board of Directors (whether through a director or an observer),
  the Company shall give a representative of the Investors (as will be designated in writing by the Investors) (the
  “Representative”) copies of all notices, minutes, consents, and other
  material that the Company provides to its directors; provided, however, that the Company reserves
  the right to exclude the Representative from access to any material the
  Company believes upon advice of counsel that such exclusion is reasonably necessary to preserve the
  attorney-client privilege, to protect highly confidential proprietary information or for other similar
  reasons.  Upon reasonable notice and
  at a scheduled meeting of the Board or such other time, if any, as the
  Board may determine in its sole
  discretion, such Representative may address the Board of Directors with
  respect to the Investor’s concerns regarding significant business issues
  facing the Company.

	
 

	
 

	
 

	
 

	
(4)

	
The Investors hereby agree on
  their behalf and on behalf of the Representative to hold in strict
  confidence and not to use or otherwise disclose any. confidential information
  provided to the Investors and/or to the
  Representative, or learned by any of them as a consequence of exercising the rights and privileges afforded to
  them under the terms of this letter agreement.
  The provisions of this paragraph 4 shall remain in effect notwithstanding any
  termination of this letter
  agreement.

	
 

	
 

	
 

	
 

	
(5)

	
The rights described herein
  shall terminate and be of no further force or effect upon the date of the closing of the sale of the Company’s
  securities pursuant to a registration statement filed by the Company under the Securities Act of
  1933, as amended, in connection with the firm commitment underwritten offering of its securities to the
  general public, or equivalent law
  of another jurisdiction

Very truly yours,

	

	
 

	

	
 

	
Oz Desheh

	
 

	
Chief Financial Officer

	
 

	
Negevtech, Ltd.

	
 

Schedule C  

SHARE
TRANSFER AGREEMENT

This Share Transfer
Agreement (this “Agreement”) dated
as of September 26, 2006, by and between (i) Gadi Neumann of 3 HaYarden St.,
Rehovot and David Alumot of 5 Shoshanat HaAmakim, Rehovot (each a “Founder” and together, the “Founders”), and (ii) Amadeus III, a private
company organized under the laws of England, with registered office at Mount
Pleasant House, 2 Mount Pleasant, Cambridge England, and Amadeus III Affiliates
Fund LP, a limited partnership organized under the laws of the state of
Delaware, with registered office at 2711 Centerville Road, Suite 400,
Wilmington, New Castle County, Delaware 19808 (both entities shall collectively
be referred to as the “Purchaser”),
(each of the Founders and the Purchaser a “Party” and collectively the “Parties”).  

	
 

	
 

	
WHEREAS,

	
          the
Purchaser wishes to consummate an investment in Negevtech Ltd. (the “Company”)
in consideration for which, the Company shall issue the Purchaser Series BB-4
Preferred Shares of the Company, in accordance with that certain Series BB-4
Preferred Share Purchase Agreement between the Company and among others the
Purchaser of even date hereof (the “Investment Transaction”), and  

	
 

	
 

	
WHEREAS,

	
          the
  Founders wish to sell to the Purchaser the entire shares of the Company held
  by them, and

	
 

	
 

	
WHEREAS

	
          subject
  to the consummation of the Investment Transaction, the Purchaser wishes to
  purchase from the Founders such shares of the Company, on the terms and
  conditions set forth herein; and

	
 

	
 

	
WHEREAS

	
          it
  is a condition to the transfer of the Transfer Shares (as defined below) from
  the Founders to Amadeus, that the Transfer Shares be converted into series
  BB-4 Preferred Shares of the Company under such terms and conditions as shall
  be determined by the Company and the Purchaser; and

	
 

	
 

	
WHEREAS,

	
          the
  Company agrees to facilitate such transaction provided that the Founders
  agree to extend their non competition undertakings and reaffirm their
  undertaking to cooperate with the Company as set forth below.

NOW, THEREFORE, the Parties agree as follows: 

1.  Sale and Purchase
of Shares

          1.1.     Subject
to the terms of this Agreement, at the Closing (as defined below), the
following transactions shall occur simultaneously (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).

          1.2.     784,502
Ordinary-Preferred Shares of the Company nominal value NIS 0.01 each (the “Ordinary Preferred Shares”) held by each of
the Founders shall be converted into the same number (i.e., on a one for one
basis) of fully paid and non-assessable Ordinary Shares of the Company, NIS
0.01 par value each (the “Ordinary Shares”)
and the Company shall issue to each Founder for par value (an amount from the
share premium account equal to the nominal value of such additional Ordinary
Shares being attributed as payment on account of the nominal value of such
additional Ordinary Shares) an additional number of 433,668 fully paid and
non-assessable Ordinary Shares (the Ordinary Shares resulting from such
conversion and the additional Ordinary Shares being issued collectively, the “Transfer Shares”);

          1.3.     Each
of the Founders shall sell, assign, transfer and deliver to the Purchaser and
the Purchaser shall purchase from each of the Founders all right, title and
interest in and to the Transfer Shares, in consideration for the payment to
each of the Founders of the aggregate amount of US$2,260,339 (the “Consideration”) as further set forth in Exhibit
1.1; and 

          1.4.     Upon
the Closing of the Investment Transaction, the Transfer Shares shall be
converted into the same number (i.e., on a one for one basis) of fully paid and
non-assessable Series BB-4 Preferred Shares of the Company, par value NIS 0.01
each of the same type that will be issued to the Purchaser pursuant to the
Investment Transaction (the “Conversion”
and the “Conversion Shares”,
respectively) and shall be registered as such in the Company’s Shareholders’
Register.

2.  Closing

          2.1.     The
transactions contemplated hereby shall take place at a closing to be held on
September 30, 2006, provided that all closing conditions set forth below have
been satisfied or waived, or such other date as is mutually agreed (the “Closing”). At the Closing, all transactions
shall be deemed to have occurred simultaneously and no action shall be
effective until all actions have been completed or waived.

          2.2.     As
of the Closing, the Founders shall deliver to the Purchaser the following
documents:

                     2.2.1.     a
waiver of the shareholders of the Company of their right of first refusal and
co-sale rights in connection with the sale and purchase of the Transfer Shares
contemplated hereunder (by way of written consent or evidence that such rights
have lapsed).

                     2.2.2.     the
consent of the Investment Center and/or Office of Chief Scientist of the
Ministry of Industry and Trade of the State of Israel (“OCS”) for the
transactions contemplated hereunder. 

          2.3.     As
a condition to and at the Closing, the Company and the Purchaser have closed
the Investment Transaction.

          2.4.     As
a condition to and at the Closing, each representation and warranty set forth
in Section 3 shall be accurate and complete in all material respects and the
Founders shall deliver to the Purchaser share transfer deeds, executed by the
Founders, substantially in the form attached as Exhibit 2.4(a) hereto, effecting the transfer of the
respective Transfer Shares from the Founders to the Purchaser (the “Share Transfer Deeds”). In addition, prior
to the Closing, the Founders shall deliver to the Company (i) a letter of
resignation from the Board of Directors of the Company and any affiliate
thereof, effective as of and subject to the Closing, in the form attached
hereto as Exhibit 2.4(b); (ii) an undertaking with respect to cooperation and non competition with the
Company, in the form attached as Exhibit
2.4(c) hereto; and (c) surrender for cancellation the
share certificates issued in their names. 

- 2 -

          2.5.     As
a condition to and at the Closing, there will have been no material adverse
change in the financial or business condition or prospects of the Company, all
in the sole judgment of the Purchaser.

          2.6.     As
a condition to and at the Closing, the investment committee (or any other
entity of the same nature) of the Purchaser shall have approved the final
Agreement in accordance with the terms and conditions of this Agreement,

          2.7.     As
a condition to and at the Closing, each representation and warranty set forth
in Section 5 shall be accurate and complete in all material respects and the
Purchaser shall:

                     2.7.1.     pay
to each of the Founders the Consideration in US Dollars, by a bank transfer to
the respective Founder’s accounts, pursuant to wiring instructions as set forth
in Exhibit 1.1, or by a certified check, or by such other form of
payment as is mutually agreed by each of the Founders and the Purchaser; and 

                     2.7.2.     execute
the Share Transfer Deeds. 

3.  Representations and Warranties of Founders

          Each
of the Founders hereby represents, warrants and undertakes with respect to
himself only, to Purchaser, and acknowledges that the Purchaser is entering
into this Agreement in reliance thereon, that:

          3.1.     He has the full power
and authority to execute and perform this Agreement and
this Agreement constitutes his valid and binding obligation, enforceable
against him in accordance with its terms.

          3.2.     He
is the lawful owner of the Transfer Shares to be sold hereunder and upon sale
and delivery of, and payment for, the Transfer Shares, as provided herein, he
shall convey to the Purchaser good and marketable title to the Transfer Shares,
free and clear of any and all liens, encumbrances, equities, claims,
restrictions (except as set forth in the Company’s Articles of Association),
options, proxies or other agreements of any kind whatsoever (“Lien”).

          3.3.     The execution
and performance by Founder of this Agreement do not conflict
with, or result in a breach or violation of, any agreement, judgment, order,
laws or regulations applying to Founder, and do not require the consent or
approval of any person, which consent or approval has not been obtained prior
to the Closing hereof.

          3.4.     To the best of the
Founder’s knowledge, no material claim has been brought
against him, or is intended to be brought against him in any court of law or
otherwise that would affect the sale of the Transfer Shares, or the
transactions contemplated hereunder. The Founder has not initiated bankruptcy
proceedings, nor does the Founder intend to initiate bankruptcy proceedings,
nor is the Founder aware of any cause for any third party to initiate
bankruptcy proceedings against the Founder.

          3.5.     Founder
has had the opportunity to consult with an independent tax, financial and/or
legal advisor with respect to the sale of the Transfer Shares prior to
executing this Agreement, and Founder represents that the Consideration (as may
be adjusted) for the Transfer Shares being transferred hereunder have been
mutually agreed to by the Founders and the Purchaser.

- 3 -

4.  Representations and Warranties of the
Purchaser

          The
Purchaser, hereby represents and warrants to each of the Founders, and
acknowledges that the Founders are entering into this Agreement in reliance
thereon, that:

          4.1.     Such
Purchaser has the full power and authority to execute and perform this
Agreement. This Agreement constitutes the valid and binding obligation of
Purchaser, enforceable against it in accordance with its terms. The execution
and performance by Purchaser of this Agreement do not conflict with, or result
in a breach or violation of, any agreement, judgment, order, laws or
regulations applying to Purchaser, and do not require the consent or approval
of any person, which consent or approval has not been obtained prior to the
date hereof

          4.2.     Such
Purchaser is familiar with the Company’s business and with the rights and
obligations attached to the Transfer Shares as set forth in the Company’s
Articles of Association. The Purchaser represents that the Consideration for
the Transfer Shares being transferred hereunder have been mutually agreed to by
the Founders and the Purchaser.

          4.3.     Such
Purchaser is experienced in investing in securities of hi-tech companies and
can bear the economic risk of such investment, and is capable of evaluating the
merits and risks of the investment in shares of the Company. The Purchaser is
acquiring the Transfer Shares for investment for its own account, not as a
nominee or agent, and not with the view to, or for resale in connection with,
any distribution thereof.

          4.4.     Such
Purchaser is aware that the Company has received financing for certain research
and development projects through the OCS and it is aware, and agrees to the
application, of the provisions of the Law for the Encouragement of Industrial
Research and Development, 5744-1984 and of Regulations promulgated thereunder
and their applicability to the Company, including, inter alia:

	
 

	
 

	
 

	
 

	
(a)

	
the Company’s obligation to pay royalties to the
  State of Israel;

	
 

	
 

	
 

	
 

	
(b)

	
that the manufacture of any product developed as a
  result of any project so funded take place in the State of Israel unless the
  Research Committee of the OCS pursuant to the above law otherwise determines,
  subject to and pursuant to the above law; and

	
 

	
 

	
 

	
 

	
(c)

	
that know-how derived from any project so funded may
  not be transferred to third parties without the approval of the Research
  Committee of the OCS subject to and pursuant to the above law.

          4.5.     Such Purchaser
is a “Venture Capital Fund” as defined in the Appendix to the
Israeli Securities Law, 5768-1968.

5.  Covenants

          5.1.     Until
the Closing, the Founders shall not (i) sell, assign, transfer, deliver or
otherwise dispose of any of the Transfer Shares, or (ii) create or permit to
exist any Lien on any of the Transfer Shares except for such Liens existing as
of the date hereof pursuant to the Articles of Association. In addition, Founders (with the assistance of
the Company) shall take all actions to promptly issue any notices which are
required to be issued in connection with the first refusal and co-sale rights
which are applicable to the transactions contemplated by this Agreement, as
promptly and efficiently as possible, to comply with all procedures and
covenants which are relevant for such rights, in order to secure the full
waiver of all such rights as quickly as possible. Founders and Purchaser
acknowledge that, if any such rights are exercised, in whole or in part, or not
duly waived prior to the Closing, the Purchaser, in its absolute discretion,
shall be free not to complete this transaction and terminate this Agreement by
written notice to the Founders.

- 4 -

          5.2.     Each
of the Parties further undertakes to take all steps necessary and to perform
all such actions as shall be required in order to effectuate the transactions
contemplated hereby and the sale and purchase of the Transfer Shares in
accordance with this Agreement.

          5.3.     Notwithstanding,
in the event that the closing conditions set forth above have not been
satisfied or waived prior to or on September 30, 2006, as may be extended from
time to time by the Parties, then this Agreement shall terminate and be of no
further force and effect.

6.  Miscellaneous.

          6.1.     This
Agreement, the preamble and all exhibits and schedules hereto constitute the
full and entire understanding and agreement between the parties with regard to
the sale and purchase of the Transfer Shares and supersede, nullify and
terminate all prior agreements between the parties with regard to such subject
matter. By executing this Agreement the parties waive all prior rights they may
have with regard to the subject matters hereof and thereof.

          6.2.     Any
notice required or permitted hereunder shall be in writing and shall be sent by
registered mail, personal delivery or confirmed facsimile to the relevant parties
hereto at the respective addresses set forth below (as may be changed by each
of the parties from time to time). Any notice shall operate and be deemed to
have been served, if personally delivered or sent by fax on the next following
business day, and if by registered mail, within three business days of
dispatch.

Each
Founder’s address for the purposes of this Section 6.2 shall be as set forth in
the preamble.

With
a copy to:

Baratz, Horn & Co. 

Attorneys at Law and Notaries 

Fax:      972-3-6960986 

Attn:     Yuval Horn, Adv.

The
Purchaser’s address for the purposes of this Section 6.2 shall be:

Amadeus Capital Partners
Ltd.

16 St James’s Street

London

Fax:

Atten:      Barak Maoz

- 5 -

With a copy to:

Meitar Liquornik Geva & Leshem Brandwein, Law
Offices. 

Fax:       972-3-6103102 

Attn:      David Chertok, Adv.

The Company’s address for
the purposes of this Section 6.2 shall be:

Beit Tamar

12 Hamada St.

Rehovot 76122

Fax:       08-9366051

Attn:      Chief Financial Officer

With a copy to:

Cohen, Cohen, Yaron-Eldar & Co., Law Offices 

Fax:       972-3-753001 

Attn:      David Cohen, Adv.

          6.3.     Each
Party shall bear all costs and expenses related to this Agreement and the
performance of its obligations hereunder, including all tax consequences.
Without limiting the generality of the aforesaid, each Founder undertakes to
fully pay any and all taxes chargeable to him under any applicable law and to
make any tax report or filing required under such law when due.

          6.4.     This
Agreement shall be governed by and interpreted in accordance with the laws of
the State of Israel, without giving effect to the rules respecting conflict of
law, and the competent courts of Tel Aviv - Jaffa shall have sole and exclusive
jurisdiction over any dispute between the Parties.

          6.5.     This
Agreement may not be amended except by a written and signed document executed
by all Parties hereto.

          6.6.     If
any provisions of this Agreement is held invalid or unenforceable, such
invalidity or unenforceability shall not affect the other provisions of this
Agreement, and, to that extent, the provisions of this Agreement are intended
to be and shall be deemed severable.

          6.7.     All
information furnished by any Party to the other Party in connection with this
Agreement and the transactions contemplated hereby, as well as the terms,
conditions and provisions of this Agreement, shall be kept confidential and
shall be used only in connection with this Agreement and the transactions
contemplated hereby, except to the extent that such information is required by
law to be disclosed, whether in any document to be filed with any governmental
department, or agency, domestic or foreign or otherwise and except as is
required in order to comply with the first refusal and co-sale procedures to
which the Founders are subject.

[Signature page follows]

- 6 -

IN WITNESS WHEREOF, this Agreement has been executed by the Parties hereto as of the day
and year first hereinabove written.

	
 

	
 

	
 

	
Gadi Neumann

	
 

	
David Alumot

	
 

	
 

	
 

	
Signature:

	
 

	
Signature:

	

	
 

	

	
 

	
 

	
 

	
Amadeus
  III

	
 

	
Amadeus
  III Affiliates Fund LP

	
 

	
 

	
 

	
By:

	
 

	
By:

	
 

	
 

	
 

	
Title:

	
 

	
Title:

	
 

	
 

	
 

	
Signature:

	
Signature: 

	
Signature:

	

	
 

	

[Signature Page to Share Transfer
Agreement Dated September 26, 2006]

- 7 -

IN WITNESS WHEREOF, this Agreement has been executed by the Parties hereto as of the day
and year first hereinabove written.

	
 

	
 

	
 

	
Gadi
  Neumann

	
 

	
David
  Alumot

	
 

	
 

	
 

	
Signature: 

	
 

	
Signature: 

	

	
 

	

	
 

	
 

	
 

	
Amadeus
  III

	
 

	
Amadeus
  III Affiliates Fund LP

	
 

	
 

	
 

	
By:

	
 

	
By:

	
Title:

	
 

	
Title:

	
Signature:

	
Signature:

	
Signature:

	

	
 

	

[Signature Page to Share Transfer
Agreement Dated September 26, 2006]

- 7 -

Exhibit
1.1

Shares sold by Gad
Neumann

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name
  of Purchaser

	
 

	
Address

	
 

	
No. of
  Transfer Shares

	
 

	
Consideration
  (in USD)

	
 

	
Wiring
  Instructions

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1,218,170 Ordinary Shares

	
 

	
2,260,339

	
 

	
Account number: 96253,

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
at Israel Discount Bank Ltd. (bank number 11), 190
  Hertzel Street (branch number 045), Rehovot, Israel.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
IBAN: IL1104596253 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Swift Code: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
IDBLILIT 

Shares sold by
David Alumot  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name
  of Purchaser

	
 

	
Address

	
 

	
No. of
  Transfer Shares

	
 

	
Consideration
(in USD)

	
 

	
Wiring
  Instructions

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1,218,170 Ordinary Shares

	
 

	
2,260,339

	
 

	
Account number: 171209/93, 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Bank Leurni (bank number 10), “Asakim” branch 10
  Plaut Street (branch number 978), Rehovot, Israel. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
IBAN:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
IL1097817120993

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Swift Code:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
LUMIILITXXX 

- 8 -

Deed of Transfer of Shares

I,
David Alumot, of 5 Shoshanat HaAmakim, kehovot, in consideration of the sum of
US$90,414 paid to me by Amadeus III Affiliates Fund LP, of 2711 Centervilie
Road, Suite 400, Wilmington, New Castle County, Delaware (the “Transferee”) do
hereby transfer to the Transferee, as of September 28, 2006, 48,727 Ordinary
Shares having par value of NIS 0.01 each of Negevtech Ltd., registered in my
name, to hold unto the Transferee, its executors, administrators, and assigns;
and I, the Transferee, do hereby agree to accept the said shares. 

As
witness we have hereunder set our hands the 28 day of September 2006.

	
 

	
 

	

	
 

	

	
 

	
David Alumot

	
 

	
 

	
 

	

	
 

	
5 Shoshanat HaAmakun,
  Rehovot

	
 

	
 

	
 

	
By:

	
 

	
Title:

	
 

	
 

	
 

	

	
 

- 2 -

Deed of Transfer of Shares

I,
Gad Neumann, of 3 HaYardcn St., Rehovot, in consideration of the sum of
US$2,260,339 paid to me by Amadeus III, of 2 Mount Pleasant, Cambridge England
(the “Transferee”) do hereby transfer to the Transferee, as of September 28,
2006, 1,218,170 Ordinary Shares having par value of NIS 0.01 each of Negevtech
Ltd., registered in my name, to hold unto the Transferee, its executors,
administrators, and assigns; and I, the Transferee, do hereby agree to accept
the said shares. 

As
witness we have hereunder set our hands the 28 day of September 2006.

	
 

	
 

	

	
 

	

	
 

	
Gad Neumann

	
 

	
 

	
 

	

	
 

	
3 HaYarden St., Rehovot

	
 

	
 

	
 

	
By:

	
 

	
Title:

	
 

	
 

	
 

	

	
 

- 9 -

Deed of Transfer of Shares

I,
David Alumot, of 5 Shoshanai HaAmakim, Rehovot, in consideration of the sum of
US$2,169,925 paid to me by
Amadeus III, of 2 Mount Pleasant, Cambridge England (the “Transferee”) do
hereby transfer to the Transferee, as of September 28, 2006, 1,169,443 Ordinary Shares having par value of NIS 0.01
each, of Negevtcch Ltd., registered in my name, to hold unto the Transferee,
its executors, administrators, and assigns; and I, the Transferee, do hereby
agree to accept the said shares. 

As
witness we have hereunder set onr hands the 28 day of September 2006,

	
 

	
 

	

	
 

	

	
 

	
David Alumot

	
 

	
 

	
 

	

	
 

	
5 Shoshanat HaAmakim,
  Rehovot

	
 

	
 

	
 

	
By:

	
 

	
Title:

	
 

	
 

	
 

	

	
 

- 2 -

Exhibit 2.4 (c)

Date:

To

Negevtech Ltd.

***

12 Hamada St.

Rehovot, 76122 

Dear Sirs,

For sale of shares by the founders –
cooperative and Non Cooperative Undertakings

Each of the
undersigned hereby:

	
 

	
 

	
 

	
 

	
(i.)

	
Reaffirms
  his undertakings to cooperate with the Company in accordance with the terms
  of Section 5 of the Agreement dated December 26, 2004 between the undersigned
  and the Company (the agreement concerning his departure from the Company) and
  that accept for the provisions of Sections 1.5, 3 and 9 thereof, that shall
  remain in *** such Agreement (as amended in March 2005  and on September 13, 2005) is terminated
  and shall have no further *** or ***; and

	
 

	
 

	
 

	
 

	
(ii.)

	
Agrees and
  undertakes that subject to the closing of the Share Transfer Agreement dated
  ____ (to which this letter is attached), the non competition undertaking set
  forth in Section 6.2(i) of his respective Services Agreement dated December
  25, 2004 (the “Services Agreement”) shall be extended until second anniversary of the
  closing of such Share Transfer Agreement and confirms that other than such
  extension, no other changes are made to the Services Agreement and that
  Section 6.3, 6.4, 6.5, 10.1, 10.4, 10.9, 10.10 and 10.13 of the Services
  Agreement shall apply to the undersigned extended non competition undertaking
  herein.

Sincerely,

	
 

	
 

	
 

	
Gad Neumann

	
 

	
David Alumot

	
 

	
 

	
 

	
Signature: 

	
 

	
Signature: 

	

	
 

	

	
 

	
 

	
 

- 11 -

Schedule 1.3(a)(i)  

ACTION
BY UNANIMOUS WRITTEN CONSENT 

OF THE SHAREHOLDERS 

OF NEGEVTECH LTD.
 (IN LIEU OF A GENERAL
MEETING AND ANY ADJOURNMENT 

THEREOF) 

DATED SEPTEMBER 17, 2006

In lieu
of a General Meeting of the shareholders of Negevtech Ltd. (the “Company”), the undersigned,
constituting all of the shareholders of the Company, hereby waive any requirement of prior notice and separate
class meetings and adopt the following resolutions
as resolutions in writing:

	
 

	
 

	
1.

	
Changes in
  Share Capital

          In
connection with the closing of the Company’s proposed Series BB-4 Preferred Shares financing (the first of such
closings, if there will be more than one, the “Closing” and the “Financing”,
respectively) it is necessary to make certain changes
to the Company’s registered (authorized) and unissued and registered
(authorized) and issued share capital. Accordingly, the following resolutions
are hereby unanimously adopted:  

	
 

	
 

	
 

	
 

	
1.1.

	
Increase in
  Registered (Authorized) Share Capital and Creation of New Class of Shares; Amendment of Memorandum of
  Association and Articles of Association

	
 

	
 

	
 

	
 

	
 

	
Resolved,
unanimously all subject to and effective immediately prior to the Closing, to
increase the registered (authorized) share capital of the Company by NIS 94,301 divided into
2,563,700 newly created Series BB-4
Preferred Shares nominal value NIS 0.01 each (“Series BB-4 Preferred Shares”) and 6,866,400 Ordinary
Shares nominal value NIS 0.01 each
(“Ordinary Shares”) and to amend the Memorandum of Association and Articles of Association of the
Company accordingly.  

	
 

	
 

	
 

	
 

	
 

	
The powers, preferences,
  rights and restrictions of the Series BB-4 Preferred
  Shares and other matters relating thereto shall be as set forth from time to time in the Articles of
  Association of the Company.

	
 

	
 

	
 

	
 

	
1. 2

	
Sale and
  Conversion of Shares Held by Founders

	
 

	
 

	
 

	
 

	
 

	
Dr. Gadi Neumann and Mr. David Alumot (jointly the
“Founders”) have conveyed
their interest in selling all their shares in the Company in connection with
the Financing. In connection with such sale by the Founders, all 1,569,004 Ordinary-Preferred Shares nominal value NIS 0.01 each (“Ordinary-Preferred Shares”) held by
the Founders will be converted into
the same number (i.e, on an one for one basis) of Ordinary Shares, and upon such conversion arid
pursuant to Article 10 of the
Company’s current Articles of Association (the “Current Articles”), the Company shall issue to the
Founders an additional 867,336 fully paid and non-assessable Ordinary Shares
(an amount from the share premium
account equal to the nominal value of such additional Ordinary Shares
being attributed as payment on account of the
nominal value of such additional Ordinary Shares). Accordingly, the total number of Ordinary Shares resulting from
the conversion of all Ordinary-Preferred Shares will be 2,436,340 Ordinary
Shares. All of these Ordinary Shares will be sold by the Founders to Amadeus
III and Amadeus III Affiliates Fund LP (collectively, “Amadeus”), the
lead investor in the Financing.
Immediately upon the consummation of the transfer of the Ordinary Shares as aforesaid, the Company has agreed
to convert such Ordinary Shares
into the same number of Series BB-4 Preferred Shares with equal rights to the
Series BB-4 Preferred Shares being issued to the investors in the
Financing, in consideration for the payment
to the Company of US$0.5799 per share (the “Conversion Consideration”). As an inducement to the
Company’s agreement to such
conversion, the Founders agreed to extend their non competition undertakings
and reaffirm their undertaking to cooperate with the Company.  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
It
  was therefore RESOLVED, unanimously, to approve, to the extent required, all subject
  and effective immediately prior to or at the Closing, as applicable:

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
To
convert the 1,569,004 Ordinary-Preferred Shares held by the Founders into
1,569,004 (i.e, on an one for one basis) fully paid and non-assessable Ordinary Shares and upon such conversion, and pursuant to Article 10 of the
Current Articles, to issue to the
Founders an additional 867,336 fully paid and non-assessable Ordinary Shares (433,668 Ordinary Shares each) (an amount from the share premium account
equal to the nominal value of such
additional Ordinary Shares to be attributed
as payment on account of the nominal value of such additional Ordinary Shares), so that the total
number of Ordinary Shares resulting from the conversion of all the Ordinary-Preferred Shares will be 2,436,340
Ordinary Shares. The Ordinary
Shares resulting from such conversion including the additional Ordinary Shares so issued shall
collectively be referred to as the
“‘Transfer Shares”; 

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
To
  approve the transfer at the Closing of the Transfer Shares to Amadeus
  notwithstanding any restrictions on transferability of shares by the
  Founders as set forth in the Current Articles or otherwise;

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
Upon the transfer of the
  Transfer Shares from the Founders to Amadeus
  as aforesaid and receipt of payment from Amadeus of the Conversion
  Consideration, the Transfer Shares shall be automatically
  converted into the same number of Series BB-4 Preferred Shares and shall be registered as such in the Company’s Shareholders’ Register and such Series
  BB-4 Preferred Shares shall have
  equal rights and rank pari passu in
  all respects with the Series BB-4 Preferred Shares being issued to the investors in the Financing. Such Series
  BB-4 Preferred Shares and the
  Ordinary Shares into which they may be converted,
  when issued and paid for (or deemed paid for) in accordance with the aforesaid and the
  Company’s Articles of Association, as
  shall be in effect from time to time, will be duly authorized, validly issued, fully paid and
  non-assessable.

- 2 -

	
 

	
 

	
 

	
 

	
 

	
The undersigned
  acknowledge that they are aware of the interests of Gad Neumann, a director of the Company, in this resolution due to his
  interests in the transactions
  contemplated thereby.

	
 

	
 

	
 

	
 

	
1.3

	
Summary;
  Authorization to sign and deliver notices; General

	
 

	
 

	
 

	
 

	
 

	
Accordingly, effective
  immediately following the increase of share capital
  provided for in item 1.1 above, the conversion of the Ordinary-Preferred Shares held by the Founders provided
  for in item 1.2 above and the transfer of the resulting Ordinary
  Shares to Amadeus and the conversion
  thereof into the same number of Series BB-4 Preferred Shares, as
  described in item 1.2 above, immediately following the Closing, the registered (authorized) share
  capital of the Company will be NIS
  950,001 divided into:

	
 

	
 

	
 

	
 

	
 

	
(a)  53,000,060
  Ordinary Shares of which 469,449 will be issued and outstanding;

	
 

	
 

	
 

	
 

	
 

	
(b)  15,000,000
  Series AA Preferred Shares of which 13,144,070 will be issued and
  outstanding;

	
 

	
 

	
 

	
 

	
 

	
(c)  12,137,708 Series
  BB-1 Preferred Shares of which 8,152,256 will be issued and
  outstanding;

	
 

	
 

	
 

	
 

	
 

	
(d)  4,000,000 Series BB-2
  Preferred Shares of which 3,597,106 will be issued and outstanding;

	
 

	
 

	
 

	
 

	
 

	
(e)  5,862,292 Series BB-3 Preferred Shares of which 5,859,274 will be issued and
  outstanding; and

	
 

	
 

	
 

	
 

	
 

	
(f)  5,000,040 Series BB-4 Preferred Shares, the number of which that will be issued and
  outstanding will be determined as of the Closing.

	
 

	
 

	
 

	
 

	
 

	
The powers, preferences,
  rights and restrictions of which and other matters
  relating thereto shall be as set forth from time to time in the Articles of Association of the Company.

	
 

	
 

	
 

	
 

	
 

	
Resolved, unanimously, to
  authorize each of the Company’s directors to
  sigh and deliver any notices required with respect to the above to the Registrar of Companies in the name of the
  Company and on its behalf.

- 3 -

	
 

	
 

	
2. 

	
Adoption
of New Articles of Association 

	
 

	
 

	
 

	
Resolved,
unanimously, to approve and adopt, subject to and effective immediately prior to the Closing, the New
Articles of Association attached hereto
as Exhibit A (the “New Articles”), as the Articles of Association of
the Company, such New Articles to
be filed by the Company with the Companies Registrar, in place of the Current
Articles.  

	
 

	
 

	
 

	
It
  was further resolved, unanimously, to authorize each of the Company’s directors to sign and
  deliver any notices required with respect to the above to the Registrar of
  Companies in the name of the Company and on its behalf.

	
 

	
 

	
 

	
The
  undersigned acknowledge that they are aware of the interests of certain of the directors of the
  Company in the New Articles, either as grantees of special rights pursuant
  thereto or due to their interests in grantees of special rights pursuant thereto.

	
 

	
 

	
3.

	
Approval of Share Purchase Agreement and Amendment to
  Shareholders Rights Agreement; Authorization of Sale and Issuance of Shares;
  General Authorization and Approval

	
 

	
 

	
 

	
RESOLVED,
  unanimously, to authorize and approve, all subject to and effective immediately
  prior to the Closing, the following:

	
 

	
 

	
 

	
 

	
3.1.

	
That certain Series BB-4
Preferred Share Purchase Agreement, between the Company and the Investors, as
defined therein, with respect to the Financing, substantially in the form
attached hereto as Exhibit B, for the
sale of Series BB-4 Preferred Shares to certain Investors (the “Share Purchase Agreement”) including, the execution,
delivery and performance of the
Share Purchase Agreement, the consummation of the transactions provided for therein and the performance by the Company of its obligations thereunder,
including, inter alia, the issuance and
sale of Series BB-4 Preferred Shares, the conversion of certain Ordinary Shares into Series BB-4 Preferred
Shares provided for in item 1.2
above, and the issuance of any shares issuable upon the conversion thereof,
all of the above without need for any further act, approval or authority of the Company’s Board of Directors or
of the Shareholders of the
Company, and all ancillary transactions, documents, schedules and exhibits
contemplated by and/or associated with the Share Purchase Agreement (whether or not approved separately
herein) and to authorize any two of
the directors of the Company to execute and deliver the Share Purchase
Agreement in the name of the Company and on its behalf, with such changes therein or additions
thereto as such directors executing the Share Purchase Agreement shall
approve, with the understanding
that substantive changes to the Share Purchase Agreement shall be submitted to the Company’s Board of Directors and only
the Board of Directors, for its approval (such approval deemed to be granted by the shareholders). Such Series
BB-4 Preferred Shares, the Ordinary
Shares into which such shares may be converted and any additional Ordinary
Shares issued in connection with such conversion, when issued and paid for
  (or deemed paid for) in accordance with the provisions
  of the Share Purchase Agreement and the New Articles will be duly authorized, validly issued, fully paid
  and non-assessable. 

- 4 -

	
 

	
 

	
 

	
 

	
3.2.

	
That
certain Second Amendment to Shareholders Rights Agreement, between the Company and
the parties thereto, as defined therein, substantially in the form attached hereto as Exhibit C (the “Second Amendment to Shareholders Rights Agreement”), including, inter alia, the execution,
delivery and performance of the Second Amendment to Shareholders Rights
Agreement and to authorize any two of the directors of the Company to execute and deliver the
Second Amendment
to Shareholders Rights Agreement in the name of the Company and on its
behalf, with such changes therein or additions thereto as such directors executing the Second
Amendment to Shareholders Rights Agreement shall approve with the understanding that substantive
changes to the Second Amendment to Shareholders Rights Agreement shall
be submitted to the Company’s Board of Directors and only the Board of Directors, for
its approval (such approval deemed to be granted by the shareholders).  

	
 

	
 

	
 

	
 

	
3.3.

	
Any
  other matter described or set forth in the Share Purchase Agreement and/or the
  Second Amendment to Shareholders Rights Agreement which requires the authorization or
  approval of the Board of Directors
  or of the Shareholders of the Company and to authorize any two of the directors of the Company to take such
  acts and to execute such documents in the name of the Company and on
  its behalf as may be required to implement
  the Share Purchase Agreement and/or the Second Amendment to Shareholders Rights Agreement and the transactions contemplated therein.

	
 

	
 

	
 

	
 

	
3.4.

	
That
  the execution, delivery and performance of the Share Purchase Agreement and the
  Second Amendment to Shareholders Rights Agreement and the consummation of the
  transactions provided for therein do not prejudice the best interests of the
  Company.

	
 

	
 

	
 

	
The
  undersigned acknowledge that they are aware of the interests of certain of
  the directors of the Company in the Financing, the Share Purchase Agreement and the Second
  Amendment to Shareholders Rights Agreement, either as direct parties thereto
  or due to their interests in parties thereto.

	
 

	
 

	
4.

	
Omnibus
  Resolutions

	
 

	
 

	
 

	
RESOLVED,
  unanimously, that the undersigned deem the actions sanctioned by the foregoing resolutions to be
  advisable and in the best interests of the Company
  and its shareholders.

	
 

	
 

	
 

	
RESOLVED,
  unanimously, that any of the appropriate officers of the Company be, and each of them hereby is, authorized
  to prepare, execute, deliver and perform, as the case may be, such agreements,
  amendments, applications, approvals,
  certificates, communications, consents, demands, directions, documents, further assurances, instruments,
  notices, orders, requests resolutions,
  supplements or undertakings, as each such officer, in his discretion,
  shall deem necessary or advisable to carry out the intent and purposes of the foregoing resolutions; and
  that the preparation, execution, delivery
  and performance of any such agreements, amendments, applications, approvals, certificates, communications,
  consents, demands, directions, documents,
  further assurances, instruments, notices, orders, requests, resolutions, supplements or undertakings shall
  be conclusive evidence of the approval of the Company’s Board of Directors
  thereof and all matters relating thereto.

- 5 -

	
 

	
 

	
 

	
RESOLVED, unanimously,
  that any and all actions heretofore taken by the officers of the Company in the name and on behalf of the Company in furtherance
  of the preceding resolutions, are hereby ratified, approved and adopted.

In addition to each of the
undersigned’s consent to the foregoing resolutions, each of the undersigned hereby confirms that none of the
issued and outstanding shares of the Company
have been issued in violation of any pre-emptive rights, rights of first
refusal or other similar rights it
may have, whether pursuant to the Articles of Association of the Company or to
any agreement to which it may be a party or otherwise, and hereby waives
any pre-emptive rights, rights of first refusal, co-sale rights or other similar
rights it may have pursuant to the Articles
of Association (old and new) of the Company
or to any agreement or otherwise with respect to (A) any of the Series BB-4 Preferred
Shares which will be issued pursuant to the Share Purchase Agreement, except to the extent of its participation as
provided under the Share Purchase Agreement,
and (B) any other shares issuable to the holders of the Series BB-4 Preferred Shares upon conversion or otherwise
pursuant to the New Articles and/or the Share Purchase Agreement to protect them against dilution.

Each person or entity signed
below further acknowledges, confirms and agrees that its signature below also constitutes a separate written consent of
each person or entity who is a holder
of shares of the Company for all purposes for which the consent of such shareholder or all shareholders
is required in connection with the above
matters, whether as holders of a separate class of shares, including Ordinary Shares, Ordinary-Preferred Shares, Series
AA Preferred Shares, Series BB-1
Preferred Shares, Series BB-2 Preferred Shares, Series BB-3 Preferred Shares,
or otherwise, pursuant to the Articles of Association of the Company, to any agreement to which the undersigned or the
Company is a party or otherwise. 

Each
of the undersigned represents that he, she or it is the registered owner of and
has the right and legal power to execute this written consent with respect to
the number of issued and outstanding shares of the capital of the Company held by him,
her or it and that each person
signing his or her name below in a representative capacity has the requisite authority so to act. This resolution may
be signed in any number of counterparts,
each of which shall be deemed an original and all of which shall constitute one instrument.

[THE REMINDER OF THIS PAGE IS INTETIONALLY LEFT BLANK]

-  6 -

[Signature
Page September 2006 General Meeting]

IN WITNESS WHEREOF, we
affix our signatures hereto as of the date set forth above.

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Gad
  Neumann

	
 

	
David
  Alumot

	
 

	
Pitango
  Venture Capital Fund III (Israeli Sub) L.P. 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Pitango
  Venture Capital Fund III (Israeli Sub.) Non-Q L.P.

	
 

	
Pitango
  Venture Capital Fund III (Israeli Investors) L.P.

	
 

	
Pitango
  JP Morgan Fund III
  (Israel), L.P. 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Pitango
  Principles Fund III (Israel) L.P.

	
 

	
Pitango
  Venture Capital Fund III Trusts 2000 L.P.

	
 

	
Canada
  Israel Opportunity Fund III, L.P. 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Shrem,
  Fudim, Kelner Founders Group II L.P.

	
 

	
Shrem
  Fudim Kelner & Co. Ltd.

	
 

	
Qualitau
  Ltd. 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
SVE
  Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
 

	
Star
  Management of Investments No. II (2000) L.P.

	
 

	
Star
  Growth Enterprise, a German Civil Law Partnership (with limitation of liability)
  

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
SVM
  Star Ventures Managementgesellschaft mbH Nr. 3

	
 

	
Lehman
  Brothers Holdings plc (on behalf of pre-tax plan)

	
 

	
Lehman
  Brothers Partnership Account 2000/2001, L.P. 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Lehman
  Brothers European Venture Capital L.P.

	
 

	
Lehman
  Brothers Offshore Partnership Account 2000/2001, L.P.

	
 

	
Orbotech
  Technology Ventures L.P. 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Intel
  Atlantic, Inc.

	
 

	
Genesis
  Partners II, L.D.C.

	
 

	
Genesis
  Partners II (Israel), L.P. 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Poalim
  Ventures Ltd.

	
 

	
Poalim
  Ventures I Ltd.

	
 

	
Poalim
  Ventures II L.P. 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Wellington
  Partners Venture III Technology Fund L.P.

	
 

	
Shrem
  Fudim Kelner Founders Group II Annex Fund L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
FINANCIERE SESO S.A.

	
 

	
Inter
  Hightech (1982) Ltd. (Previously TICI)

	
 

	
Eliyahu
  Lerner, CPA (as trustee) 

- 7 -

Schedule 1.3(a)(ii)  

			
			
			
	SHARES XXX	 	NUMBER O1-XXX
	 	 	 
		NEGEVTECH LTD. 	
	 	 	 
	Share Certificate  	 
	 	 	 
	
This is to certify that

       [Shareholder]

Is the Registered Holder of                   XXX

Series BB-4 Preferred      Shares of  par value NIS 0.01 each,

Numbered                                         XXX - XXX

Inclusive, fully paid up in the above named Company, subject to

The Memorandum and Articles of Association of the Company.  	 
	 	 Given under the Company's Stamp

This __th day of ___, 2006 	 
	 	 	 
	——————————————

DIRECTOR	COMPANY STAMP	——————————————

 DIRECTOR
	 	 	 

Schedule 1.3(a)(iii)  

Written
Resolution of the Board of Directors of

Negevtech Ltd. (the “Company”)

Adopted by Unanimous Written Consent

Effective as of August 31, 2006

The undersigned, constituting all of the members of
the Board of Directors of the Company (the “Board”), hereby adopt the following
resolutions by way of unanimous written consent in lieu of holding a formal
meeting on the above date and hereby waive any notice whatsoever in connection
therewith: 

	
   

  	
   

  	
   

  
	
  1.

  	
  Changes in Share Capital

  
	
   

  	
   

  	
   

  
	
            In
connection with the closing of the Company’s proposed Series BB-4 Preferred
Shares financing (the first of such closings, if there will be more than one,
the “Closing” and the “Financing”, respectively) it is necessary to make
certain changes to the Company’s registered (authorized) and unissued and
registered (authorized) and issued share capital. Accordingly, the Board
hereby resolves, to approve, and to recommend to the Company’s shareholders
to approve the following resolutions:  

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1.

  	
  Increase
  in Registered (Authorized) Share Capital and Creation of New Class of Shares;
  Amendment of Memorandum of Association and Articles of Association

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Resolved, to approve, and to recommend to the
  Company’s shareholders to approve, all subject to and effective immediately prior
  to the Closing, an increase of the registered (authorized) share capital of
  the Company by NIS 94,301 divided into 2,563,700 newly created Series BB-4
  Preferred Shares nominal value NIS 0.01 each (“Series BB-4 Preferred Shares”) and 6,866,400 Ordinary Shares
  nominal value NIS 0.01 each (“Ordinary
  Shares”) and to amend the Memorandum of Association and Articles
  of Association of the Company accordingly.

  
	
   

  	
   

  	
   

  
	
   

  	
  1.2.

  	
  Sale and
  Conversion of Shares Held by Founders

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Dr. Gadi Neumann and Mr. David Alumot (jointly the “Founders”) have conveyed their interest
  in selling all their shares in the Company in connection with the Financing.
  In connection with such sale by the Founders, all 1,569,004
  Ordinary-Preferred Shares nominal value NIS 0.01 each (“Ordinary-Preferred Shares”) held by the
  Founders will be converted into the same number (i.e, on an one for one
  basis) of Ordinary Shares, and upon such conversion and pursuant to Article
  10 of the Company’s current Articles of Association (the “Current Articles”), the Company shall
  issue to the Founders an additional 867,336 fully paid and non-assessable
  Ordinary Shares (an amount from the share premium account equal to the
  nominal value of such additional Ordinary Shares being attributed as payment
  on account of the nominal value of such additional Ordinary Shares).
  Accordingly, the total number of Ordinary Shares resulting from the
  conversion of all Ordinary-Preferred Shares will be 2,436,340 Ordinary
  Shares. All of theses Ordinary Shares will be sold by the Founders to Amadeus
  III and Amadeus III Affiliates Fund LP (collectively, “Amadeus”), the lead investor in the
  Financing, Immediately upon the consummation of the transfer of the Ordinary
  Shares to Amadeus as aforesaid, the Company has agreed to convert such
  Ordinary Shares into the same number of Series BB-4 Preferred Shares with
  equal rights to the Series BB-4 Preferred Shares being issued to the
  investors in the Financing, in consideration for the payment to the Company
  of US$0.5799 per share (the “Conversion
  Consideration”). As an inducement to the Company’s agreement to
  such conversion, the Founders agreed to extend their non competition
  undertakings and reaffirm their undertaking to cooperate with the Company.

  

	
   

  	
   

  	
   

  
	
   

  	
  It was therefore RESOLVED, unanimously, to approve,
  and to recommend to the Company’s shareholders to authorize and approve, to
  the extent required, all subject and effective immediately prior to or at the
  Closing, as applicable:

  
	
   

  	
   

  	
   

  
	
   

  	
  (i)

  	
  To convert the 1,569,004 Ordinary-Preferred Shares
  held by the Founders into 1,569,004 (i.e, on an one for one basis) fully paid
  and non-assessable Ordinary Shares and upon such conversion, and pursuant to
  Article 10 of the Current Articles, to issue to the Founders an additional
  867,336 fully paid and non-assessable Ordinary Shares (433,668 Ordinary
  Shares each) (an amount from the share premium account equal to the nominal
  value of such additional Ordinary Shares to be attributed as payment on
  account of the nominal value of such additional Ordinary Shares), so that the
  total number of Ordinary Shares resulting from the conversion of all the
  Ordinary-Preferred Shares will be 2,436,340 Ordinary Shares. The Ordinary
  Shares resulting from such conversion including the additional Ordinary
  Shares so issued shall collectively be referred to as the “Transfer Shares”;

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  To approve the transfer at the Closing of the
  Transfer Shares to Amadeus notwithstanding any restrictions on
  transferability of shares by the Founders as set forth in the Current Articles
  or otherwise;

  
	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  Upon the transfer of the Transfer Shares from the
  Founders to Amadeus as aforesaid and receipt of payment from Amadeus of the
  Conversion Consideration, the Transfer Shares shall be automatically
  converted into the same number of Series BB-4 Preferred Shares and shall be
  registered as such in the Company’s Shareholders* Register and such Series
  BB-4. Preferred Shares shall have equal rights and rank pari passu in all respects with the
  Series BB-4 Preferred Shares being issued to the investors in the Financing,
  Such Series BB-4 Preferred Shares and the Ordinary Shares into which they may
  be converted, when issued and paid for (or deemed paid for) in accordance
  with the aforesaid and the Company’s Articles of Association, as shall be in
  effect from time to time, will be duly authorized, validly issued, fully paid
  and non-assessable.

  

- 2 -

	
   

  	
   

  	
   

  
	
   

  	
  The undersigned acknowledge that they are aware of
  the interests of Gad Neumann in this resolution due to his interests in the
  transactions contemplated thereby and therefore, that his signature hereunder
  is for the purpose of adopting a resolution in writing.

  
	
   

  	
   

  	
   

  
	
   

  	
  1.3

  	
  Summary; Authorization to sign and
  deliver notices; General

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Accordingly, effective immediately following the increase
  of share capital provided for in item 1.1 above, the conversion of the
  Ordinary-Preferred Shares held by the Founders provided for in item 1.2 above
  and the transfer of the resulting Ordinary Shares to Amadeus and the
  conversion thereof into the same number of Series BB-4 Preferred Shares, as
  described in item 1.2 above, immediately following the Closing, the
  registered (authorized) share capital of the Company will be NIS 950,001
  divided into:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a) 53,000,060 Ordinary Shares of which 469,449 will
  be issued and outstanding;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) 15,000,000 Series AA Preferred Shares of which
  13,144,070 will be issued and outstanding;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c) 12,137,708 Series BB-1 Preferred Shares of which
  8,152,256 will be issued and
  outstanding;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d) 4,000,000 Series BB-2 Preferred Shares of which
  3,597,106 will be issued and outstanding;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (e) 5,862,292 Series BB-3 Preferred Shares of which
  5,859,274 will be issued and outstanding; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (f) 5,000,040 Series BB-4 Preferred Shares, the
  number of which that will be issued and outstanding will be determined as of
  the Closing.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The powers, preferences, rights and restrictions of
  which and other matters relating thereto shall be as set forth from time to
  time in the Articles of Association of the Company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Resolved, unanimously, to authorize each of the
  Company’s directors to sign and deliver any notices required with respect to
  the above to the Registrar of Companies in the name of the Company and on its
  behalf.

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Adoption of New Articles of
  Association

  
	
   

  	
   

  	
   

  
	
   

  	
  Resolved, to approve and adopt, and to recommend to
  the Company’s shareholders to approve and adopt, subject to and effective
  immediately prior to the Closing, the New Articles of Association attached
  hereto as Exhibit A (the
  “New Articles”), as the Articles
  of Association of the Company, such New Articles to be filed by the Company
  with the Companies Registrar, in place of the Current Articles.

  
	
   

  	
   

  	
   

  
	
   

  	
  It was further resolved, unanimously, to authorize
  each of the Company’s directors to sign and deliver any notices required with
  respect to the above to the Registrar of Companies in the name of the Company
  and on its behalf.

  
	
   

  	
   

  	
   

  
	
   

  	
  The undersigned acknowledge that they are aware of
  the interests of certain of the directors of the Company in the New Articles,
  either as grantees of special rights pursuant thereto or due to their interests in grantees of
  special rights pursuant thereto.

  

- 3 -

	
   

  	
   

  	
   

  
	
  3.

  	
  Approval
  of Share Purchase Agreement and Amendment to Shareholders Rights Agreement;
  Authorization of Sale and Issuance of Shares; General Authorization and
  Approval

  
	
   

  	
   

  	
   

  
	
   

  	
  Resolved, to approve, and
  to recommend to the Company’s shareholders to approve, the following:

  
	
   

  	
   

  	
   

  
	
   

  	
  3.1.

  	
  That certain Series BB-4
  Preferred Share Purchase Agreement, between the Company and the Investors, as
  defined therein, with respect to the Financing, substantially in the form
  attached hereto as Exhibit B,
  for the sale of Series BB-4 Preferred Shares to certain Investors (the “Share Purchase Agreement”) including, the
  execution, delivery and performance of the Share Purchase Agreement, the
  consummation of the transactions provided for therein and the performance by
  the Company of its obligations thereunder, including, inter alia, the
  issuance and sale of Series BB-4 Preferred Shares, the conversion of certain
  Ordinary Shares into Series BB-4 Preferred Shares provided for in item 1.2
  above, and the issuance of any shares issuable upon the conversion thereof,
  all of the above without need for any further act, approval or authority of
  the Company’s Board of Directors, of the Shareholders or of the Company, and
  all ancillary transactions, documents, schedules and exhibits contemplated by
  and/or associated with the Share Purchase Agreement (whether or not approved
  separately herein) and to authorize any two of the directors of the Company
  to execute and deliver the Share Purchase Agreement in the name of the
  Company and on its behalf, with such changes therein or additions thereto as
  such directors executing the Share Purchase Agreement shall approve, with the
  understanding that substantive changes to the Share Purchase Agreement shall
  be submitted to the Company’s Board of Directors for its approval. Such
  Series BB-4 Preferred Shares, the Ordinary Shares into which such shares may be
  converted and any  additional Ordinary
  Shares issued in connection with such conversion, when issued and paid for
  (or deemed paid for) in accordance with the provisions of the Share Purchase
  Agreement and the New Articles will be duly authorized, validly issued, fully
  paid and non-assessable.

  
	
   

  	
   

  	
   

  
	
   

  	
  3.2.

  	
  That certain Second
  Amendment to Shareholders Rights Agreement,
  between the Company and the parties thereto, as defined therein,
  substantially in the form attached hereto as Exhibit C (the “Second
  Amendment to Shareholders Rights Agreement”), including, inter
  alia, the execution, delivery and performance of the Second Amendment to
  Shareholders Rights Agreement and to authorize any two of the directors of
  the Company to execute and deliver the Second Amendment to Shareholders
  Rights Agreement in the name of the Company and on its behalf, with such
  changes therein or additions thereto as such directors executing the Second
  Amendment to Shareholders Rights Agreement shall approve with the
  understanding that substantive changes to the Second Amendment to
  Shareholders Rights Agreement shall be submitted to the Company’s
  Board of Directors for its approval.

  

- 4 -

	
   

  	
   

  	
   

  
	
   

  	
  3.3.

  	
  Any other matter described or set forth in the Share
  Purchase Agreement and/or the Second Amendment to Shareholders Rights
  Agreement which requires the authorization or approval of the Board of
  Directors or of the Shareholders of the Company and to authorize any two of
  the directors of the Company to take such acts and to execute such documents
  in the name of the Company and on its behalf as may be required to implement
  the Share Purchase Agreement and/or the Second Amendment to Shareholders
  Rights Agreement and the transactions contemplated therein.

  
	
   

  	
   

  	
   

  
	
   

  	
  3.4.

  	
  That the execution, delivery and performance of the
  Share Purchase Agreement and the Second Amendment to Shareholders Rights
  Agreement and the consummation of the transactions provided for therein do
  not prejudice the best interests of the Company.

  
	
   

  	
   

  	
   

  
	
   

  	
  The undersigned acknowledge that they are aware of
  the interests of certain of the directors of the Company in the Financing,
  the Share Purchase Agreement and the Second Amendment to Shareholders Rights
  Agreement, either as direct parties thereto or due to their interests in
  parties thereto.

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Convening
  of General Meeting

  
	
   

  	
   

  	
   

  
	
   

  	
  Resolved, unanimously, that general meetings of the
  shareholders of the Company be convened, for the purpose of obtaining the
  approval of the Company’s shareholders to the matters approved above and any
  other matters that may lawfully be brought for shareholder approval at such
  meeting.

  
	
   

  	
   

  	
   

  
	
   

  	
  It is further resolved, unanimously, that any
  director of the Company be authorized to determine the time and place of the
  above meeting and to send notices thereof to the shareholders, it being
  agreed that if all shareholders agree in writing to the above, the meeting
  may not be held.

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Extension of Exercise Period of
  Options Granted to Noam Dotan

  
	
   

  	
   

  	
   

  
	
   

  	
  Noam Dotan (“Dotan”)
  was employed by the Company until August 31, 2005. In an Amendment to Dotan’s
  Employment Agreement, executed on March 1, 2005, the Company agreed that upon
  termination of Dotan’s employment, his unvested options scheduled to vest
  within a year of such termination shall accelerate and become immediately
  vested upon such termination and that any vested options (including due to
  acceleration) shall remain exercisable for a period of one year following
  termination. Since such one year period shall terminate on August 31, 2006
  and due to that fact that Dotan is currently providing services to the
  Company, the Company wishes to extend the exercise period of Dotan’s vested
  options by one additional year, until August 31, 2007.

  
	
   

  	
   

  	
   

  
	
   

  	
  Resolved, to approve and ratify the Amendment to
  Dotan’s Employment Agreement as provided for above and to extend the exercise
  period of the vested options held by Dotan by one year, so that
  notwithstanding any provision to the contrary in the Company’s ESOP and/or in
  the Option Agreement between Dotan and the Company, all vested options, as
  described above, hold by Dotan, shall be exercisable until August 31, 2007.

  

- 5 -

	
   

  	
   

  	
   

  
	
  6.

  	
  Omnibus Resolutions

  
	
   

  	
   

  	
   

  
	
   

  	
  Resolved, to approve, and to recommend to the
  Company’s shareholders to approve, that any of the appropriate officers of
  the Company be, and each of them hereby is and will be, authorized to
  prepare, execute, deliver and perform, as the case may be, such agreements,
  amendments, applications, approvals, certificates, communications, consents,
  demands, directions, documents, further assurances, instruments, notices,
  orders, requests resolutions, supplements or undertakings, as each such
  officer, in his discretion, shall deem necessary or advisable to carry out
  the intent and purposes of the foregoing resolutions; and that the preparation,
  execution, delivery and performance of any such agreements, amendments,
  applications, approvals, certificates, communications, consents, demands,
  directions, documents, further assurances, instruments, notices, orders,
  requests, resolutions, supplements or undertakings shall be conclusive
  evidence of the approval of the Company’s Board of Directors thereof and all
  matters relating thereto.

  
	
   

  	
   

  	
   

  
	
   

  	
  It was further resolved, unanimously, that any and
  all actions heretofore taken by the officers of the Company in the name and
  on behalf of the Company in furtherance of the preceding resolutions, are
  hereby ratified, approved and adopted.

  

This resolution may be signed in any number of
counterparts, each of which shall be deemed an original and all of which shall
constitute one instrument.

IN WITNESS WHEREOF, we affix our signatures hereto as
of the date set forth above.

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  

  	
   

  	
  

  	
   

  
	
  Gad Neumann

  	
   

  	
  Eran Gersht

  	
   

  	
  Aaron Mankovsky

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  

  	
   

  	
  

  	
   

  
	
  Rafi Yizhar

  	
   

  	
  Amichai Steinberg

  	
   

  	
  Yaffa Krindel

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  

  	
   

  	
  

  	
   

  
	
  Eyal Kishon

  	
   

  	
  Arnon Gat

  	
   

  	
  Bart Markus

  	
   

  
	
  (substitute director of Eddy Shalev)

  	
   

  	
   

  	
   

  	
   

  	
   

  

[Signature Page August 2006 Board]

- 6 -

Schedule 1.3(a)(iv)  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Share Register (as of 28 September, 2006)

	

	
Ordinary Shares

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Cert

	
 

	
Shareholder

	
 

	
Series

	
 

	
# of Shares

	
 

	
From

	
 

	
To

	
 

	
Notes

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
01

	
 

	
Financiere
  Seso S.A

	
 

	
Ordinary

	
 

	
159,620

	
 

	
1

	
 

	
159,620

	
 

	
 

	
02

	
 

	
Inter
  Hightech(1982) Ltd. (Previously TICI)

	
 

	
Ordinary

	
 

	
71,829

	
 

	
159,621

	
 

	
231,449

	
 

	
 

	
03

	
 

	
Eli
  Lemer, CPA (Trastee)

	
 

	
Ordinary

	
 

	
34,500

	
 

	
231,450

	
 

	
265,949

	
 

	
 

	
04

	
 

	
Eli
  Lerner, CPA (Trustee)

	
 

	
Ordinary

	
 

	
203,500

	
 

	
265,950

	
 

	
469,449

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total 

	
 

	
 

	
 

	
 

	
 

	
469,449 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1

	
Schedule 1.3(a)(iv) - Share Register

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Share Register (as
  of September 28,2006)

	

	
Ordinary - Preferred
  Shares

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Cert

	
 

	
Shareholder

	
 

	
Series

	
 

	
# of Shares 

	
 

	
From

	
 

	
To

	
 

	
Notes

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
OP-1

	
 

	
Gadi
  Neumann

	
 

	
Ordinary
  -Preferred

	
 

	
784,502

	
 

	
1

	
 

	
784,502

	
 

	
Cancelled-
  Transferred and converted to BB-4 

	
OP-2

	
 

	
David
  Alumot

	
 

	
Ordinary
  -Preferred

	
 

	
784,502

	
 

	
784,503

	
 

	
1,569,004

	
 

	
Cancelled-
  Transferred and converted to BB-4 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total 

	
 

	
 

	
 

	
 

	
 

	
0 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2

	
Schedule 1.3(a)(iv) - Share Register

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Share Register (as
  of September 28, 2006)

	

	
Preferred AA Shares

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Cert

	
 

	
Shareholder

	
 

	
Series

	
 

	
# of Shares

	
 

	
From

	
 

	
To

	
 

	
Notes

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
PAA-1

	
 

	
Pitango
  Venture Capital Fund III (Israeli Sub) L.P.

	
 

	
Preferred
  AA

	
 

	
2,902,420

	
 

	
1

	
 

	
2,902,420

	
 

	
 

	
PAA-2

	
 

	
Pitango
  Venture Capital Fund III (Israeli Sub.) Non-Q L.P.

	
 

	
Preferred
  AA

	
 

	
268,316

	
 

	
2,902,421

	
 

	
3,170,736

	
 

	
 

	
PAA-3

	
 

	
Pitango
  Venture Capital Fund III (Israeli Investors) L.P.

	
 

	
Preferred
  AA

	
 

	
784,811

	
 

	
3,170,737

	
 

	
3,955,547

	
 

	
 

	
PAA-4

	
 

	
Pitango
  JP Morgan Fund III (Israel), L.P.

	
 

	
Preferred
  AA

	
 

	
447,636

	
 

	
3,955,548

	
 

	
4,403,183

	
 

	
 

	
PAA-5

	
 

	
Pitango
  Principles Fund III (Israel) L.P.

	
 

	
Preferred
  AA

	
 

	
102,165

	
 

	
4,403,184

	
 

	
4,505,348

	
 

	
 

	
PAA-6

	
 

	
Pitango
  Venture Capital Fund II Trusts 2000 L.P.

	
 

	
Preferred
  AA

	
 

	
204,330

	
 

	
4,505,349

	
 

	
4,709,678

	
 

	
 

	
PAA-7

	
 

	
Canada
  Israel Opportunity Fund III, L.P.

	
 

	
Preferred
  AA

	
 

	
45,308

	
 

	
4,709,679

	
 

	
4,754,986

	
 

	
 

	
PAA-8

	
 

	
Shrern,
  Fudim, Kelner Founders Group II L.P.

	
 

	
Preferred
  AA

	
 

	
45,308

	
 

	
4,754,987

	
 

	
4,800,294

	
 

	
 

	
PAA-9

	
 

	
Shrem
  Fudim Kelner & Co. Ltd.

	
 

	
Preferred
  AA

	
 

	
30,187

	
 

	
4,800,295

	
 

	
4,830,481

	
 

	
 

	
PA
  A- 10

	
 

	
Qualitau
  Ltd.

	
 

	
Preferred
  AA

	
 

	
355,522

	
 

	
4,830,482

	
 

	
5,186,003

	
 

	
 

	
PAA-11

	
 

	
SVE
  Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
 

	
Preferred
  AA

	
 

	
2,224,297

	
 

	
5,186,004

	
 

	
7,410,300

	
 

	
 

	
PAA-12

	
 

	
Star
  Management of Investments No. II (2000) L.P.

	
 

	
Preferred
  AA

	
 

	
321,275

	
 

	
7,410,301

	
 

	
7,731,575

	
 

	
 

	
PAA-13

	
 

	
Genesis
  Partners II, L.D.C.

	
 

	
Preferred
  AA

	
 

	
1,773,948

	
 

	
7,731,576

	
 

	
9,505,523

	
 

	
 

	
PAA-14

	
 

	
Genesis
  Partners 11 (Israel) L.P.

	
 

	
Preferred
  AA

	
 

	
262,512

	
 

	
9,505,524

	
 

	
9,768,035

	
 

	
 

	
PAA-
  15

	
 

	
Lehman
  Brothers European Venture Capital L.P.

	
 

	
Preferred
  AA

	
 

	
222,108

	
 

	
9,768,036

	
 

	
9,990,143

	
 

	
 

	
PAA-
  16

	
 

	
Lehman
  Brothers Holdings plc (on behalf of pre-tax plan)

	
 

	
Preferred
  AA

	
 

	
425,109

	
 

	
9,990,144

	
 

	
10,415,252

	
 

	
 

	
PAA-17

	
 

	
Lehman
  Brothers Partnership Account 2000/2001, L.P.

	
 

	
Preferred
  AA

	
 

	
191,536

	
 

	
10,415,253

	
 

	
10,606,788

	
 

	
 

	
PAA-
  18

	
 

	
Lehman
  Brothers Offshore Partnership Account 2000/2001, L.P.

	
 

	
Preferred
  AA

	
 

	
49,677

	
 

	
10,606,789

	
 

	
10,656,465

	
 

	
 

	
PAA-19

	
 

	
Orbotech
  Technology Ventures L.P.

	
 

	
Preferred
  AA

	
 

	
1,776,860

	
 

	
10,656,466

	
 

	
12,433,325

	
 

	
 

	
PAA-20

	
 

	
Intel
  Atlantic, Inc.

	
 

	
Preferred
  AA

	
 

	
710,745

	
 

	
12,433,326

	
 

	
13,144,070

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total

	
 

	
 

	
 

	
 

	
 

	
13,144,070

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
3

	
Schedule 1.3(a)(iv) - Share Register

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Share Register (as
  of September 28, 2006)

	

	
Preferred BB-1
  Shares

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Cert

	
 

	
Shareholder

	
 

	
Series

	
 

	
# of Shares

	
 

	
From

	
 

	
To

	
 

	
Note

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
PBB1-1

	
 

	
Poalim
  Ventures Ltd

	
 

	
Preferred
  BB-1

	
 

	
381,027

	
 

	
1

	
 

	
381,027

	
 

	
 

	
PBB1-2

	
 

	
Poalim
  Ventures I Ltd

	
 

	
Preferred
  BB-1

	
 

	
586,194

	
 

	
381,028

	
 

	
967,221

	
 

	
 

	
PBB1-3

	
 

	
Poalim
  Ventures II L.P.

	
 

	
Preferred
  BB-1

	
 

	
1,188,509

	
 

	
967,222

	
 

	
2,155,730

	
 

	
 

	
PBB1-4

	
 

	
SVE
  Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
 

	
Preferred
  BB-1

	
 

	
521,206

	
 

	
2,155,731

	
 

	
2,676,936

	
 

	
 

	
PBBl-5

	
 

	
Star
  Management of Investments No. II (2000) L.P.

	
 

	
Preferred
  BB-1

	
 

	
56,238

	
 

	
2,676,937

	
 

	
2,733,174

	
 

	
 

	
PBB1-6

	
 

	
Star
  Growth Enterprise, a German Civil Law Partnership (with limitation of
  Liability)

	
 

	
Preferred
  BB-1

	
 

	
2,247,164

	
 

	
2,733,175

	
 

	
4,980,338

	
 

	
 

	
PBB1-7

	
 

	
SVM
  Star Ventures Managmenttgesellschaft mbH Nr. 3

	
 

	
Preferred
  BB-1

	
 

	
334,236

	
 

	
4,980,339

	
 

	
5,314,574

	
 

	
 

	
PBB1-8

	
 

	
Genesis
  Partners II, L.D.C.

	
 

	
Preferred
  BB-1

	
 

	
693,952

	
 

	
5,314,575

	
 

	
6,008,526

	
 

	
 

	
PBB1-9

	
 

	
Genesis
  Partners II (Israel) L.P.

	
 

	
Preferred
  BB-1

	
 

	
102,414

	
 

	
6,008,527

	
 

	
6,110,940

	
 

	
 

	
PBB1-10

	
 

	
Pitango
  Venture Capital Fund III (Israeli Sub) L.P.

	
 

	
Preferred
  BB-1

	
 

	
1,377,123

	
 

	
6,110,941

	
 

	
7,488,063

	
 

	
 

	
PBB1-11

	
 

	
Pitango
  Venture Capital Fund III (Israeli Sub.) Non-Q L.P.

	
 

	
Preferred
  BB-1

	
 

	
127,309

	
 

	
7,488,064

	
 

	
7,615,372

	
 

	
 

	
PBB1-12

	
 

	
Pitango
  Venture Capital Fund III (Israeli Investors) L.P.

	
 

	
Preferred
  BB-1

	
 

	
372,373

	
 

	
7,615,373

	
 

	
7,987,745

	
 

	
 

	
PBB1-13

	
 

	
Pitango
  Principles Fund III (Israel) L.P.

	
 

	
Preferred
  BB-1

	
 

	
48,474

	
 

	
7,987,746

	
 

	
8,036,219

	
 

	
 

	
PBB1-14

	
 

	
Pitango
  Venture Capital Fund II Trusts 2000 L.P.

	
 

	
Preferred
  BB-1

	
 

	
96,949

	
 

	
8,036,220

	
 

	
8,133,168

	
 

	
 

	
PBB1-15

	
 

	
Canada
  Israel Opportunity Fund III, L.P.

	
 

	
Preferred
  BB-l

	
 

	
9,544

	
 

	
8,133,169

	
 

	
8,142,712

	
 

	
 

	
PBB1-16

	
 

	
Shrem,
  Fudim, Kelner Founders Group II L.P.

	
 

	
Preferred
  BB-l

	
 

	
9,544

	
 

	
8,142,713

	
 

	
8,152,256

	
 

	
Cancelled
  - Replaced by PBB1-19 

	
PBB1-17

	
 

	
Genesis
  Partners II, L.D.C.

	
 

	
Preferred
  BB-1

	
 

	
751,400

	
 

	
8,152,257

	
 

	
8,903,656

	
 

	
Cancelled
  - Conversion to BB-3 

	
PBB1-18

	
 

	
Genesis
  Partners II (Israel) L.P.

	
 

	
Preferred
  BB-1

	
 

	
110,892

	
 

	
8,903,657

	
 

	
9,014,548

	
 

	
Cancelled
  - Conversion to BB-3 

	
PBB1-19

	
 

	
Shrem,
  Fudim, Kelner Founders Group II Annex Fund L.P.

	
 

	
Preferred
  BB-1

	
 

	
9,544

	
 

	
8,142,713

	
 

	
8,152,256

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total

	
 

	
 

	
 

	
 

	
 

	
8,152,256

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
4

	
Schedule 1.3(a)(iv) - Share Register

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Share Register (as
  of September 28, 2006)

	

	
Preferred BB-2
  Shares

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Cert

	
 

	
Shareholder

	
 

	
Series

	
 

	
# of Shares

	
 

	
From

	
 

	
To

	
 

	
Notes

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
PBB2-1

	
 

	
Pitango
  Venture Capital Fund III (Israeli Sub) L.P.

	
 

	
Preferred
  BB-2

	
 

	
861,590

	
 

	
1

	
 

	
861,590

	
 

	
 

	
PBB2-2

	
 

	
Pi
  tango Venture Capital Fund III (Israeli Sub.) Non-Q L.P.

	
 

	
Preferred
  BB-2

	
 

	
79,650

	
 

	
861,591

	
 

	
941,240

	
 

	
 

	
PBB2-3

	
 

	
Pitango
  Venture Capital Fund III (Israeli Investors) L.P.

	
 

	
Preferred
  BB-2

	
 

	
233,002

	
 

	
941,241

	
 

	
1,174,242

	
 

	
 

	
PBB2-4

	
 

	
Pitango
  Principles Fund III (Israel) L.P.

	
 

	
Preferred
  BB-2

	
 

	
30,332

	
 

	
1,174,243

	
 

	
1,204,574

	
 

	
 

	
PBB2-5

	
 

	
Pitango
  Venture Capital Fund II Trusts 2000 L.P.

	
 

	
Preferred
  BB-2

	
 

	
60,660

	
 

	
1,204,575

	
 

	
1,265,234

	
 

	
 

	
PBB2-6

	
 

	
Canada
  Israel Opportunity Fund III, L.P.

	
 

	
Preferred
  BB-2

	
 

	
7,308

	
 

	
1,265,235

	
 

	
1,272,542

	
 

	
 

	
PBB2-7

	
 

	
Shrem,
  Fudim, Kelner Founders Group II L.P.

	
 

	
Preferred
  BB-2

	
 

	
7,209

	
 

	
1,272,543

	
 

	
1,279,751

	
 

	
Cancelled
  - Replaced by PBB2-14 

	
PBB2-8

	
 

	
Shrem
  Fudim Kelner & Co. Ltd.

	
 

	
Preferred
  BB-2

	
 

	
4,932

	
 

	
1,279,752

	
 

	
1,284,683

	
 

	
 

	
PBB2-9

	
 

	
SVE
  Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
 

	
Preferred
  BB-2

	
 

	
635,475

	
 

	
1,284,684

	
 

	
1,920,158

	
 

	
 

	
P8B2-10

	
 

	
Star
  Management of Investments No. II (2000) L.P.

	
 

	
Preferred
  BB-2

	
 

	
68,535

	
 

	
1,920,159

	
 

	
1,988,693

	
 

	
 

	
PBB2-11

	
 

	
Star
  Growth Enterprise, a German Civil Law Partnership (with limitation of
  Liability)

	
 

	
Preferred
  BB-2

	
 

	
1,045,227

	
 

	
1,988,694

	
 

	
3,033,920

	
 

	
 

	
PBB2-12

	
 

	
Genesis
  Partners II, L.D.C.

	
 

	
Preferred
  BB-2

	
 

	
490,760

	
 

	
3,033,921

	
 

	
3,524,680

	
 

	
 

	
PBB2-13

	
 

	
Genesis
  Partners II (Israel) L.P.

	
 

	
Preferred
  BB-2

	
 

	
72,426

	
 

	
3,524,681

	
 

	
3,597,106

	
 

	
 

	
PBB2-14

	
 

	
Shrem,
  Fudim, Kelner Founders Group II Annex Fund L.P.

	
 

	
Preferred
  BB-2

	
 

	
7,209

	
 

	
1,272,543

	
 

	
1,279,751

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total

	
 

	
 

	
 

	
 

	
 

	
3,597,106

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
5

	
Schedule 1.3(a)(iv) - Share Register

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Share Register (as
  of September 28, 2006)

	

	
Preferred BB-3
  Shares

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Cert

	
 

	
Shareholder

	
 

	
Series

	
 

	
# of Shares

	
 

	
From

	
 

	
To

	
 

	
Notes

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
PBB3-1

	
 

	
WE
  Star Ventures Enterprises GmbH & Co. No. IX KG.

	
 

	
Preferred
  BB-3

	
 

	
79,061

	
 

	
1

	
 

	
79,061

	
 

	
 

	
PBB3-2

	
 

	
Star
  Management of Investment No. II (2000) L.P.

	
 

	
Preferred
  BB-3

	
 

	
8,530

	
 

	
79,062

	
 

	
87,591

	
 

	
 

	
PBB3-3

	
 

	
Star
  Growth Enterprise, a German Civil Law Partnership (with limitation of
  Liability)

	
 

	
Preferred
  BB-3

	
 

	
181,876

	
 

	
87,592

	
 

	
269,467

	
 

	
 

	
PBB3-4

	
 

	
Poalim
  Ventures Ltd.

	
 

	
Preferred
  BB-3

	
 

	
47,628

	
 

	
269,468

	
 

	
317,095

	
 

	
 

	
PBB3-5

	
 

	
Poalim
  Ventures I Ltd.

	
 

	
Preferred
  BB-3

	
 

	
73,274

	
 

	
317,096

	
 

	
390,369

	
 

	
 

	
PBB3-6

	
 

	
Poalim
  Ventures II L.P.

	
 

	
Preferred
  BB-3

	
 

	
148,564

	
 

	
390,370

	
 

	
538,933

	
 

	
 

	
PBB3-7

	
 

	
Genesis
  Partners II, L.D.C.

	
 

	
Preferred
  BB-3

	
 

	
234,812

	
 

	
538,934

	
 

	
773,745

	
 

	
 

	
PBB3-8

	
 

	
Genesis
  Partners II (Israel) L.P.

	
 

	
Preferred
  BB-3

	
 

	
34,654

	
 

	
773,746

	
 

	
808,399

	
 

	
 

	
PBB3-9

	
 

	
Pitango Venture Capital Fund III (Israeli Sub) L.P.

	
 

	
Preferred
  BB-3

	
 

	
183,505

	
 

	
808,400

	
 

	
991,904

	
 

	
 

	
PBB3-10

	
 

	
Pitango
  Venture Capital Fund III (Israeli Sub) Non-Q L.P.

	
 

	
Preferred
  BB-3

	
 

	
16,964

	
 

	
991,905

	
 

	
1,008,868

	
 

	
 

	
PBB3-11

	
 

	
Pitango
  Venture Capital Fund III (Israeli Investors) L.P.

	
 

	
Preferred
  BB-3

	
 

	
49,619

	
 

	
1,008,869

	
 

	
1,058,487

	
 

	
 

	
PBB3-12

	
 

	
Pitango
  Principles Fund HI (Israel) L.P.

	
 

	
Preferred
  BB-3

	
 

	
6,460

	
 

	
1,058,488

	
 

	
1,064,947

	
 

	
 

	
PBB3-13

	
 

	
Pitango
  Venture Capital Fund II Trusts 2000 L.P.

	
 

	
Preferred
  BB-3

	
 

	
12,918

	
 

	
1,064,948

	
 

	
1,077,865

	
 

	
 

	
PBB3-14

	
 

	
Intel
  Atlantic, Inc.

	
 

	
Preferred
  BB-3

	
 

	
474,261

	
 

	
1,077,866

	
 

	
1,552,126

	
 

	
 

	
PBB3-15

	
 

	
Wellington
  Partners Venture III Technology Fund L.P.

	
 

	
Preferred
  BB-3

	
 

	
3,190,480

	
 

	
1,552,127

	
 

	
4,742,606

	
 

	
 

	
PBB3-16

	
 

	
Genesis
  Partners II, L.D.C.

	
 

	
Preferred
  BB-3

	
 

	
751,400

	
 

	
4,742,607

	
 

	
5,494,006

	
 

	
 

	
PBB3-17

	
 

	
Genesis
  Partners II (Israel) L.P.

	
 

	
Preferred
  BB-3

	
 

	
110,892

	
 

	
5,494,007

	
 

	
5,604,898

	
 

	
 

	
PBB3-18

	
 

	
Intel
  Atlantic, Inc.

	
 

	
Preferred
  BB-3

	
 

	
9,298

	
 

	
5,604,899

	
 

	
5,614,196

	
 

	
 

	
PBB3-19

	
 

	
Wellington
  Partners Venture III Tech

	
 

	
Preferred
  BB-3

	
 

	
245,078

	
 

	
5,614,197

	
 

	
5,859,274

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total

	
 

	
 

	
 

	
 

	
 

	
5,859,274

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Share Register (as
  of September 28, 2006)

	

	
Prefered BB-4 Shares

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Cert

	
 

	
Shareholder

	
 

	
Series

	
 

	
# of Shares

	
 

	
From

	
 

	
To

	
 

	
Notes

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
PBB4-I

	
 

	
SVE
  Star Ventures Enterprises GmbH & Co. No. IX KG.

	
 

	
Preferred
  BB-4

	
 

	
121,135

	
 

	
1

	
 

	
121,135

	
 

	
 

	
PBB4-2

	
 

	
Star
  Management of Investment No. II (2000) L.P.

	
 

	
Preferred
  BB-4

	
 

	
15,915

	
 

	
121,136

	
 

	
137,050

	
 

	
 

	
PBB4-3

	
 

	
Star
  Growth Enterprise, a German Civil Law Partnership (with limitation of
  Liability)

	
 

	
Preferred
  BB-4

	
 

	
121,634

	
 

	
137,051

	
 

	
258,684

	
 

	
 

	
PBB4-4

	
 

	
Genesis
  Partners II, L.D.C.

	
 

	
Preferred
  BB-4

	
 

	
168,168

	
 

	
258,685

	
 

	
426,852

	
 

	
 

	
PBB4-5

	
 

	
Genesis
  Partners II (Israel) L.P.

	
 

	
Preferred
  BB-4

	
 

	
24,819

	
 

	
426,853

	
 

	
451,671

	
 

	
 

	
PBB4-6

	
 

	
Intel
  Atlantic, Inc.

	
 

	
Preferred
  BB-4

	
 

	
60,770

	
 

	
451,672

	
 

	
512,441

	
 

	
 

	
PBB4-7

	
 

	
Wellington
  Partners Venture III Tech

	
 

	
Preferred
  BB-4

	
 

	
363,801

	
 

	
512,442

	
 

	
876,242

	
 

	
 

	
PBB4-8

	
 

	
Poalim
  Ventures Ltd.

	
 

	
Preferred
  BB-4

	
 

	
19,305

	
 

	
876,243

	
 

	
895,547

	
 

	
 

	
PBB4-9

	
 

	
Poalim
  Ventures I Ltd.

	
 

	
Preferred
  BB-4

	
 

	
29,700

	
 

	
895,548

	
 

	
925,247

	
 

	
 

	
PBB4-10

	
 

	
Poalim
  Ventures II L.P.

	
 

	
Preferred
  BB-4

	
 

	
60,217

	
 

	
925,248

	
 

	
985,464

	
 

	
 

	
PBB4-11

	
 

	
Amadeus
  III

	
 

	
Preferred
  BB-4

	
 

	
3,285,579

	
 

	
985,465

	
 

	
4,271,043

	
 

	
 

	
PBB4-I2

	
 

	
Amadeus
  III Affiliates Fund LP

	
 

	
Preferred
  BB-4

	
 

	
67,053

	
 

	
4,271,044

	
 

	
4,338,096

	
 

	
 

	
Total

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total

	
 

	
 

	
 

	
 

	
 

	
4,338,096

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
6

	
Schedule 1.3(a)(iv) - Share Register

Schedule 1.3(a)(v)  

Adoption
of New Articles of Association

to approve and adopt the New
Articles of Association attached hereto as Exhibit
A (the “New Articles”), as the Articles of Association of the Company, such New Articles to be filed
by the Company with the
Companies Registrar, in place of the Current
Articles.

THE COMPANIES LAW

A COMPANY LIMITED BY SHARES

AMENDED AND RESTATED ARTICLES OF ASSOCIATION OF 

NEGEVTECH LTD.

PRELIMINARY

	
 

	
 

	
1.

	
Reserved.

	
 

	
 

	
2.

	
In these Articles, unless the context otherwise
  requires:

	
 

	
 

	
 

	
These “Articles”
  - shall mean the Articles of Association of the Company as shall be in force from time to
  time.

	
 

	
 

	
 

	
“Amadeus” – shall mean Amadeus
  III and Amadeus III Affiliates Fund LP and their Permitted Transferees
  to which they transfer shares.

	
 

	
 

	
 

	
The “Amadeus
  Agreement” shall mean the Series BB-4 Preferred Share Purchase Agreement dated September 26, 2006 between
  the Company and certain investors.

	
 

	
 

	
 

	
“as converted basis” - shall mean assuming
  the theoretical conversion of all outstanding Preferred Shares into Ordinary Shares, at the then applicable
  conversion ratio.

	
 

	
 

	
 

	
“Board” or “Board of Directors” – shall mean the Board of Directors of the
  Company.

	
 

	
 

	
 

	
“Business Day” – shall mean a day on
  which commercial banks in Israel are open for business (including, for the avoidance of doubt,
  Fridays).

	
 

	
 

	
 

	
The
  “Company” - shall mean NEGEVTECH
  LTD.

	
 

	
 

	
 

	
The “Companies Law”
  - shall mean the Companies Law, 5759-1999 as shall be in effect from time to time and
  any other law that shall be in effect from time to time with respect to companies and that shall apply to the
  Company.

	
 

	
 

	
 

	
“Genesis” – shall mean Genesis
  Partners II, L.D.C., Genesis Partners II (Israel) L.P. and their Permitted
  Transferees to which they transfer shares.

	
 

	
 

	
 

	
“Intel” shall mean Intel Atlantic,
  Inc., a corporation established and existing under the laws of the State of
  Delaware, USA.

	
 

	
 

	
 

	
The
  “Office” - shall mean the
  registered office of the Company as it shall be from time to time.

	
 

	
 

	
 

	
The term “Major
  Holder” shall mean a holder of at least 2.5% of the issued and outstanding shares of the
  Company, on an as converted basis and with respect solely to Article 14 - a holder of at least 2% of the issued and
outstanding shares
  of the Company, on an as converted basis.

	
 

	
 

	
 

	
the
  ordinary manner in any mail list of the company or any copy of any fax in the
  Company’s possession shall be prima
  facie proof of the delivery.

	
 

	
 

	
107.

	
(a)
       In any case where it is necessary to give prior
  notice of a certain number of days or a notice valid for a certain period, the date of delivery shall be taken
  into account in the number of days
  or period.

	
 

	
 

	
 

	
(b)
       In addition to the furnishing of a notice
  pursuant to the above article, the Company may furnish a notice to the shareholders entitled to receive notice,
  or to part of them, by publication
  of a notice in a newspaper distributed in the area wherein the Office is
  located, or any other place, in
  Israel or abroad, as the Board shall determine from time to time.

	
 

	
 

	
108.

	
RESERVED

	
 

	
 

	
109.

	
INDEMNITY

	
 

	
 

	
(a)

	
The
  Company shall, subject and pursuant to the provisions of the Companies Law, indemnify
  an “Office Holder” of the Company (as such term is defined in the Companies Law) for all liabilities and expenses incurred
  by him arising from or as a result of any act (or omission) carried out by him as an Office Holder
  of the Company and which is indemnifiable pursuant to the Companies
  Law, to the maximum extent permitted by law. The Company may indemnify an Office Holder post-factum and may also
  undertake to indemnify an Office
  Holder in advance, provided that, to the extent required under applicable law, such undertaking is limited to
  types of occurrences which, in the opinion of the Board of Directors are, at the time of the undertaking,
  foreseeable and to an amount of the
  Board of Directors has determined is reasonable in the circumstances.

	
 

	
 

	
(b)

	
The
  Company shall, subject and pursuant to the provisions of the Companies Law,
  enter into contracts to insure the
  liability of Office Holders of the Company for any liabilities incurred by
  him arising from or as a result of any act (or omission) carried out by him
  as an Office Holder of the Company and for
  which the Company may insure Office Holders pursuant to the Companies Law, to the maximum extent permitted
  by law.

	
 

	
 

	
(c)

	
The
  Company may, subject to the provisions of the Companies Law, procure
  insurance for or indemnify any
  person who is not an Office Holder including, without limitation, any employee, agent, consultant or contractor of
  the Company who is not an Office Holder.

	
 

	
 

	
(d)

	
The
  Company may, to the maximum extent permitted by law, exempt and release an
  Office Holder, including in
  advance, from all or part of his or her liability for monetary or other damages due to, arising or resulting from, a breach
  of his or her duty of care to the Company.
  The Directors of the Company are released and exempt from all liability as aforesaid
  to the maximum extent permitted by law with respect to any such breach, which
  has been or may be committed.

-45-

Conversion of Ordinary-Preferred
Shares into Ordinary Shares

to convert the 1,569,004 Ordinary-Preferred Shares
held by Gad Neuman and David Alumot into 1,569,004 (i.e, on an one for one
basis) fully paid and non-assessable Ordinary Shares.

Conversion of Ordinary Shares into BB-4 Preferred
Shares

to convert 2,436,340 Ordinary Shares held by Amadeus III and Amadeus
III Affiliates Fund LP into the same number of series BB-4 Preferred Shares.

Change of Share Capital

	
 

	
 

	
 

	
 

	
To
  increase the registered (authorized) share capital of the Company by NIS 94,301 divided into 2,563,700 newly created
Series BB-4 Preferred
  Shares nominal value NIS 0.01 each and 6,866,400
  Ordinary Shares nominal value NIS 0.01 each.

	
 

Schedule 1.3(d)  

Date: September 26, 2006 

	To:  	The
Research Committee

The Office of the Chief Scientist

PO Box 2197

Jerusalem, 91021 

Relating to projects that have been
financed by or are currently being financed by the Office of the Chief Scientist of the
Ministry of Industry, Trade and Labor (the “OCS”) and to projects of the
Company (as this term is defined below) that may be financed by the OCS in the future (the
“Projects”).  

UNDERTAKING  

The undersigned, Amadeus III a
partnership incorporated, organized and existing under the laws of England and whose
registered offices is at Mount pleasant House, 2 Mount Pleasant, Cambridge England,
having, by an agreement dated September 26, 2006, committed to invest in Negevtech Ltd.,
an Israeli company (the “Company”), in exchange for 3,285,579 Preferred
BB-4 Shares par value NIS 0.01 each of the Company; 

Recognizing that the Company’s
research and development Projects are currently, have been or will be financially
supported by the Government of the State of Israel through the OCS under and subject to
the provisions of The Encouragement of Research and Development in Industry Law 5744-1984
(the “R&D Law”) and the regulations, rules and procedures promulgated
thereunder; and 

Recognizing that the R&D Law
places strict constraints on the transfer of know-how and/or production rights, making all
such transfers subject to the absolute discretion of the OCS’ research committee (the
“Research Committee”), acting in accordance with the aims of the R&D
Law and requiring that any such transfer receive the prior written approval of the
Research Committee; 

HEREBY UNDERTAKE, 

To observe strictly all the
requirements of the R&D Law and the regulations, rules and procedures promulgated
thereunder, as applied to the Company and as directed by the Research Committee, in
particular those requirements stipulated under Section 19, 19A and 19B of the R&D Law
relating to the prohibitions on the transfer of know-how and/or production rights. 

As a shareholder of the Company, to
make all reasonable efforts that the Company shall not be in breach of the requirements of
the R&D Law and the regulations, rules and procedures promulgated thereunder, as
applied to the Company and as directed by the Research Committee, in particular those
requirements stipulated under Sections 19, 19A and 19B of the R&D Law relating to the
prohibitions on the transfer of know-how and/or production rights. 

Nothing herein shall be deemed as an
assumption by the undersigned of any of the obligations of the Company. 

		
		
		
		
		
	By:	______________________
	 
	Name:	______________________
	 
	Title:	______________________

Schedule 2.1(a)  

THE COMPANIES LAW

A COMPANY LIMITED BY SHARES

AMENDED AND RESTATED ARTICLES OF ASSOCIATION
OF

NEGEVTECH LTD.

PRELIMINARY

	
 

	
 

	
1.

	
Reserved.

	
 

	
 

	
2.

	
In these
  Articles, unless the context otherwise requires:

	
 

	
 

	
 

	
These
“Articles” - shall mean the Articles of Association of the Company as shall
be in force from time to time. 

	
 

	
 

	
 

	
“as
converted basis” - shall mean assuming the theoretical conversion of all
outstanding Preferred Shares and Ordinary-Preferred Shares into Ordinary
Shares, at the then applicable conversion ratio. 

	
 

	
 

	
 

	
“Board” or
“Board of Directors” – shall mean the Board of Directors of the Company. 

	
 

	
 

	
 

	
“Business
Day” – shall mean a day on which commercial banks in Israel are open for
business (including, for the avoidance of doubt, Fridays). 

	
 

	
 

	
 

	
The
“Company” - shall mean NEGEVTECH LTD.  

	
 

	
 

	
 

	
The
“Companies Law” - shall mean the Companies Law, 5759-1999 as shall be in
effect from time to time and any other law that shall be in effect from time
to time with respect to companies and that shall apply to the Company. 

	
 

	
 

	
 

	
The
“Founders” - shall mean Dr. Gad Neumann and Mr. David Alumot. 

	
 

	
 

	
 

	
“Genesis” –
shall mean Genesis Partners II, L.D.C., Genesis Partners II (Israel) L.P. and
their Permitted Transferees to which they transfer shares. 

	
 

	
 

	
 

	
“Intel” shall
mean Intel Atlantic, Inc., a corporation established and existing under the
laws of the State of Delaware, USA. 

	
 

	
 

	
 

	
The “Office”
- shall mean the registered office of the Company as it shall be from time to
time. 

	
 

	
 

	
 

	
The term
“Major Holder” shall mean a holder of at least 2.5% of the issued and
outstanding shares of the Company, on an as converted basis and with respect
solely to Article 14 - a holder of at least 2% of the issued and outstanding
shares of the Company, on an as converted basis. 

	
 

	
 

	
 

	
“Majority
Preferred Shareholders” – shall mean the holders of the majority of the
issued and outstanding Preferred Shares (calculated on an as converted basis). 

	
 

	
 

	
 

	
“Ordinary Shares” – shall mean Ordinary
  Shares of the Company, par value NIS 0.01 each.

	
 

	
 

	
 

	
“Ordinary-Preferred Shares” – shall mean
  Ordinary-Preferred Shares of the Company, par value NIS 0.01 each.

	
 

	
 

	
 

	
“Original Issue Price” – shall mean: (i)
  with respect to the Series AA Preferred Shares, $2.81 per share, provided,
  that with respect to any Series AA Preferred Share issued following the
  closing of the Poalim Agreement, the Original Issue Price shall be the price
  per share actually paid to the Company for such Series AA Preferred Share;
  (ii) with respect to the Series BB-1 Preferred Shares and the Series BB-3
  Preferred Shares, $2.3194 per share; and (iii) with respect to the Series
  BB-2 Preferred Shares, $1.97149 per share, as such  prices may be adjusted, for certain purposes set forth in these
  Articles, upon the occurrence of a Recapitalization Event. 

	
 

	
 

	
 

	
“Orbotech” - shall mean Orbotech Technology
  Ventures L.P. and its Permitted Transferees to which it transfers shares.

	
 

	
 

	
 

	
“Permitted Transferee” - shall mean: (i) a
  person or entity that controls or is controlled by or is under common control
  with the respective shareholder; (ii) spouse, brothers, sisters, parents and
  children of the transferor or a trust for the benefit of the transferor
  and/or any of the foregoing, in the event the shares are held by individuals;
  (iii) in the case of any shareholder which is a limited or general
  partnership or a trust, to its partners (including retired partners) or
  beneficiaries and to affiliated partnerships managed by the same management
  company or managing (general) partner or by an entity which directly or
  indirectly controls, is controlled by, or is under common control with, such
  management company or managing or general partner; (iv) a trustee of the
  Company’s incentive plans may transfer to a beneficiary and vice versa; (v) in
  the case of Plenus Technologies Ltd., Plenus II, L.P., Plenus II (D.C.M.),
  Limited Partnership, Golden Gate Bridge Fund, L.P., Bank Leumi Le-Israel B.M.
  and the Participants (listed in Schedule 1 of the Loan Agreement between the
  Company, Plenus II, L.P. and Plenus II (D.C.M.), Limited Partnership dated
  October 11, 2005), each shall be considered a Permitted Transferee of each
  other, as long as such Permitted Transferee is not a competitor of the
  Company.

	
 

	
 

	
 

	
The term
  “control” shall have the same meaning as designated to it under the Companies
  Law and shall also mean the possession, directly or indirectly, of more than
  50% of the voting power or the right to appoint more than 50% of the members
  of the Board of Directors or the right to receive more than 50% of the
  distributed profit.

	
 

	
 

	
 

	
“Pitango” – shall mean Pitango Venture
  Capital Fund III (Israeli Sub) L.P., Pitango Venture Capital Fund III
  (Israeli Sub.) Non-Q L.P., Pitango Venture Capital Fund III (Israeli
  Investors) L.P., Pitango JP Morgan Fund III (Israel), L.P., Pitango
  Principles Fund III (Israel) L.P., Pitango Venture Capital Fund III Trusts
  2000 L.P. and their Permitted Transferees to which they transfer shares

	
 

	
 

	
 

	
The “Poalim Agreement” shall mean the Series
  BB Preferred Share Purchase Agreement dated September 13, 2005 between the
  Company and certain investors.

- 2 -

	
 

	
 

	
 

	
“Poalim Ventures” means Poalim Ventures
  Ltd., Poalim Ventures I Ltd. and Poalim Ventures II L.P., who shall be deemed
  Permitted Transferees of each other, and their Permitted Transferees to which
  they transfer shares.

	
 

	
 

	
 

	
“Preferred Shares” – shall mean Series AA
  Preferred Shares and Series BB Preferred Shares.

	
 

	
 

	
 

	
“Qualified IPO” or “QIPO” – shall mean the
consummation of a firm commitment underwritten public offering of the Company’s
shares, netting to the Company at least US$30,000,000 (Thirty Million), as an
offering price per share in excess of 3 (three) times the Original Issue
Price of the Series BB-1 Preferred Shares. 

	
 

	
 

	
 

	
“Recapitalization Event” – shall mean any
  event of share combination or subdivision, distribution of bonus shares or
  any other similar reclassification, reorganization or recapitalization of the
  Company’s share where the shareholders retain their proportionate holdings in
  the Company.

	
 

	
 

	
 

	
The “Share Transfer Agreement” – shall mean
  that certain Share Transfer Agreement effective as of the closing of the
  Poalim Agreement between the Company, the Founders and certain Purchasers (as
  defined therein).

	
 

	
 

	
 

	
“Series AA Preferred Shares” - shall mean
  Series AA Preferred Shares of the Company, par value NIS 0.01 each.

	
 

	
 

	
 

	
“Series BB Preferred Shares” - shall mean
  Series BB-1 Preferred Shares, Series BB-2 Preferred Shares and Series BB-3
  Preferred Shares.

	
 

	
 

	
 

	
“Series BB-1 Preferred Shares” - shall mean
  Series BB-1 Preferred Shares of the Company, par value NIS 0.01 each.

	
 

	
 

	
 

	
“Series BB-2 Preferred Shares” - shall mean
  Series BB-2 Preferred Shares of the Company, par value NIS 0.01 each.

	
 

	
 

	
 

	
“Series BB-3 Preferred Shares” – shall mean
  Series BB-3 Preferred Shares of the Company, par value NIS 0.01 each.

	
 

	
 

	
 

	
“Star” – shall mean SVE Star Ventures
  Enterprises Gmbh & Co. No. IX KG., Star Management of Investments No. II
  (2000) L.P., SVM Star Ventures Managementgesellschaft mbH No. 3, Star Growth
  Enterprise, a German Civil Law Partnership (with limitation of liability) and
  their Permitted Transferees to which they transfer shares.

	
 

	
 

	
 

	
The “Star Agreement” - shall mean the
  Preferred Share Purchase Agreement dated May 2002 between the Company and
  certain investors.

	
 

	
 

	
 

	
“Transition Agreement” shall mean the
  Agreement dated as of December 26, 2004 between the Company and the Founders,
  as amended. 

	
 

	
 

	
 

	
“Wellington” - shall mean Wellington
  Partners Ventures III Technology Fund L.P. and its Permitted Transferees to
  which it transfers shares.

- 3 -

	
 

	
 

	
 

	
 

	
The “Wellington Agreement” - shall mean the
  Series BB Preferred Share Purchase Agreement dated March 22, 2006.

	
 

	
 

	
 

	
 

	
In these
  Articles, subject to this Article 2 and unless the context otherwise
  requires, expressions defined in the Companies Law, or any modification
  thereof in force at the date at which these Articles become binding on the
  Company, shall have the meanings so defined; and words importing the singular
  shall include the plural, and vice versa, and words importing the masculine
  gender shall include the female, and words importing persons shall include
  bodies corporate. The titles of the articles are not part of the articles.

	
 

	
 

	
 

	
 

	
For purposes
  of determining the availability of any right or the applicability of any
  limitation under these Articles, all Ordinary Shares and Preferred Shares
  entitled to such right or the application of such limitation held or
  acquired by affiliated entities or persons constituting Permitted Transferees
  of each other, shall be aggregated and such entities or persons shall be
  viewed as a single Shareholder.

	
 

	
 

	
 

	
 

	
In the event
  that an article that has been added to these Articles contradicts an original
  article found in these Articles - the article added shall take precedence.

	
 

	
 

	
 

	
3.

	
PRIVATE
  COMPANY

	
 

	
 

	
 

	
 

	
(a)

	
The Company
  is a private Company.

	
 

	
 

	
 

	
 

	
(b)

	
The right to
  transfer the shares of the Company shall be restricted in the manner
  hereinafter appearing;

	
 

	
 

	
 

	
 

	
(c)

	
The number
  of the shareholders of the Company (not including persons who are in the
  employment of the Company, and persons who, having been formerly in the
  employment of the Company were while in that employment and have continued
  after the termination of that employment to be shareholders of the Company)
  shall be limited to fifty, provided that, for the purposes of this provision,
  where two or more persons hold one or more shares in the Company jointly they
  shall be treated as a single shareholder; and

	
 

	
 

	
 

	
 

	
(d)

	
No
  invitation shall be issued to the public to subscribe for any shares or
  debentures or debenture stocks of the Company.

	
 

	
 

	
 

	
3A

	
CHARITABLE
  CONTRIBUTIONS

	
 

	
 

	
 

	
 

	
The Company
  may donate reasonable sums of money and/or issue securities of the Company
  representing up to tenth of one percent (0.1%) of its issued and outstanding
  share capital, to any worthy purpose or entity approved by the Board of
  Directors of the Company even if such donation is not made for business
  consideration.

	
 

	
 

	
 

	
4.

	
OFFICE

	
 

	
 

	
 

	
 

	
The Office
  of the Company shall be at such place as the Board shall from time to time
  designate.

- 4 -

	
 

	
 

	
 

	
5.

	
THE CAPITAL

	
 

	
 

	
 

	
 

	
The
  authorized capital of the Company is comprised of NIS 855,700 divided into:
  47,000,996 Ordinary Shares, par value 0.01 NIS per share; 1,569,004
  Ordinary-Preferred Shares, par value 0.01 NIS per share, 15,000,000 Series AA
  Preferred Shares, par value 0.01 NIS per share, 12,137,708 Series BB-1
  Preferred Shares, par value 0.01 NIS per share, 4,000,000 Series BB-2
  Preferred Shares, par value 0.01 NIS per share and 5,862,292 Series BB-3
  Preferred Shares, par value 0.01 NIS per share.

	
 

	
 

	
 

	
6.

	
RIGHTS,
  PREFERENCES AND RESTRICTIONS OF PREFERRED SHARES AND ORDINARY-PREFERRED
  SHARES

	
 

	
 

	
 

	
 

	
The rights,
  preferences, privileges, and restrictions granted to and imposed on the
  Preferred Shares and on the Ordinary-Preferred Shares, are as set forth in
  these Articles.

	
 

	
 

	
 

	
 

	
The
  Ordinary-Preferred Shares shall have the same rights, preferences, privileges
  and restrictions granted to and imposed on the Ordinary Shares, except for
  the rights, preferences and privileges specifically granted to the
  Ordinary-Preferred Shares in these Articles.

	
 

	
 

	
 

	
7.

	
DIVIDEND
  PROVISIONS

	
 

	
 

	
 

	
 

	
Subject to
  Article 8 below, any dividends declared by the Company shall be distributed,
  subject to Article 30 below, between all holders of shares of the Company,
  pari passu, based upon the number of Ordinary Shares (on an as converted
  basis) held by any such holder.

	
 

	
 

	
 

	
8.

	
DIVIDEND AND
  LIQUIDATION PREFERENCE

	
 

	
 

	
 

	
 

	
(a)

	
Upon the
  happening of any of the following events:

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
any
  liquidation, dissolution or winding up of the Company, either voluntary or
  involuntary; or

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
any
consolidation, or merger of the Company with or into another corporation
following which the shareholders of the Company prior to such transaction do
not hold following such transaction more than 50% of the outstanding shares
and the voting power of the surviving corporation by virtue of their holdings
in the Company prior to such transaction (“Merger”); or 

	
 

	
 

	
 

	
 

	
 

	
 

	
(3)

	
any sale or
transfer to another corporation of all or substantially all of the assets of
the Company, or all or substantially all of the shares in the Company (other
than to a wholly owned subsidiary of the Company or to a corporation in which
the shareholders of the Company prior to the transaction hold more than 50%
of the outstanding voting rights) (“Acquisition”); or 

	
 

	
 

	
 

	
 

	
 

	
 

	
(4)

	
any
  distribution of dividends;

	
 

	
 

	
 

	
 

	
 

	
 

	
(any of the
  events described in sections (1) to (4) above shall be hereinafter referred
  to as a “Liquidation Event”)

- 5 -

	
 

	
 

	
 

	
 

	
 

	
then the
amount of declared dividends or any assets of the Company available for
distribution in connection with, or the consideration received in, such
Liquidation Event (hereinafter referred to as “Distribution Assets”) shall be
distributed pursuant to the following order of preference: 

	
 

	
 

	
 

	
 

	
(b)

	
The holders
of the Series BB-3 Preferred Shares shall be entitled to receive, prior and
in preference to any distribution of any of the assets of the Company to the
holders of all other equity securities of the Company by reason of their
ownership thereof, an amount per Series BB-3 Preferred Share equal to: (i)
the applicable Original Issue Price for each Series BB-3 Preferred Share,
plus (ii) an amount equal to declared but unpaid dividends on each such Series
BB-3 Preferred Share, plus (iii) an amount equal to 8% return per annum,
compounded annually, on the applicable Original Issue Price, for each BB-3
Preferred Share to be calculated from the date of payment to the Company on
account of such Series BB-3 Preferred Share until such distribution, less
(iv) any amount of dividend preference paid on account of such Series BB-3
Preferred Share until such distribution (the “BB-3 Preference Amount”). In
the event that the Distribution Assets are not sufficient for distribution to
the holders of the Series BB-3 Preferred Shares pursuant to this subarticle
(b), such Distribution Assets as are available for distribution, shall be
distributed among the holders of the Series BB-3 Preferred Shares pro-rata in
proportion to the preferential amount each such holder is otherwise entitled
to receive. 

	
 

	
 

	
 

	
 

	
(c)

	
Following
the payment in full of the BB-3 Preference Amount, the holders of the Series
BB-1 Preferred Shares and the holders of the Series BB-2 Preferred Shares
shall be entitled to receive, prior and in preference to any distribution of
any of the assets of the Company to the holders of all other equity
securities of the Company by reason of their ownership thereof, an amount per
each Series BB-1 Preferred Share and per each Series BB-2 Preferred Share
equal to: (i) the applicable Original Issue Price for each such share, plus
(ii) an amount equal to declared but unpaid dividends on each such share,
plus (iii) an amount equal to 8% return per annum, compounded annually, on
the applicable Original Issue Price, for each such share to be calculated
from the date of payment to the Company on account of such share until such
distribution, less (iv) any amount of dividend preference paid on account of
such share until such distribution (the “BB Preference Amount”). In the event
that the Distribution Assets are not sufficient for distribution to the
holders of the Series BB-1 Preferred Shares and the holders of the Series
BB-2 Preferred Shares pursuant to this subarticle (c), such Distribution
Assets as are available for distribution, shall be distributed among the
holders of the Series BB-1 Preferred Shares and the holders of the Series
BB-2 Preferred Shares pro-rata in proportion to the preferential amount each
such holder is otherwise entitled to receive. 

- 6 -

	
 

	
 

	
 

	
 

	
(d)

	
Following
the payment in full of the BB-3 Preference Amount and the BB Preference
Amount, the holders of the Series AA Preferred Shares and the holders of
Ordinary-Preferred Shares shall be entitled to receive prior and in
preference to any distribution of any of the assets of the Company to the
holders of all other equity securities of the Company by reason of their
ownership thereof, an aggregate amount equal to the sum of: (i) the Original
Issue Price for each Series AA Preferred Share, plus (ii) an amount equal to
declared but unpaid dividends on each such Series AA Preferred Share, plus
(iii) an amount equal to 8% return per annum, compounded annually, on the
Original Issue Price for each outstanding Series AA Preferred Share to be
calculated from the later of the date of payment to the Company on account of
such Series AA Preferred Share or May 23, 2002 and until such distribution,
less (iv) any amount of dividend preference paid on account of such Series AA
Preferred Share and each Ordinary-Preferred Share until such distribution
(the “Secondary Preference Amount”), such aggregate amount to be distributed
among the holders of Series AA Preferred Shares and the holders of
Ordinary-Preferred Shares such that: (x) holders of Series AA Preferred
Shares shall receive out of the Secondary Preference Amount an amount equal to
the Secondary Preference Amount multiplied by a fraction (the “Multiplier”)
the numerator of which is the total number of the then outstanding Series AA
Preferred Shares (for the avoidance of doubt, not on an as converted basis)
and the denominator of which is such total number of then outstanding Series
AA Preferred Shares plus 1.2764 times the total number of the then
outstanding Ordinary-Preferred Shares (for the avoidance of doubt, not on an
as converted basis) (“AA Secondary Preference Amount”), to be allocated among
the holders of Series AA Preferred Shares pro rata, such that for each Series
AA Preferred Share held by a holder of Series AA Preferred Shares such holder
shall be entitled to an amount equal to the product of the Multiplier
multiplied by the sum of: (i) the Original Issue Price for such Series AA
Preferred Share, plus (ii) an amount equal to declared but unpaid dividends
on such Series AA Preferred Share, plus (iii) an amount equal to 8% return
per annum, compounded annually, on the Original Issue Price for such Series
AA Preferred Share to be calculated from the later of the date of payment to
the Company on account of such Series AA Preferred Share or May 23, 2002 and
until such distribution, less (iv) any amount of dividend preference paid on
account of such Series AA Preferred Share until such distribution, and (y)
the holders of Ordinary Preferred Shares shall receive out of the Secondary
Preference Amount an amount equal to the Secondary Preference Amount minus
the AA Secondary Preference Amount, to be allocated among the holders of
Ordinary Preferred Shares pro-rata based on the number of Ordinary-Preferred
Shares held by them.  

	
 

	
 

	
 

	
 

	
 

	
In the event
  that, following the payment in full of the BB-3 Preference Amount and the BB
  Preference Amount, the remaining Distribution Assets are not sufficient for a
  full payment of the Secondary Preference Amount pursuant to this subarticle (d),
  then such remaining Distribution Assets shall be distributed among the
  holders of Series AA Preferred Shares and the holders of Ordinary-Preferred
  Shares in proportion to the amount they would have been entitled to receive
  had the Secondary Preference Amount been paid in full.

	
 

	
 

	
 

	
 

	
(e)

	
Thereafter,
  the holders of the Preferred Shares, the holders of the Ordinary-Preferred
  Shares and the holders of the Ordinary Shares shall be entitled to receive
  any remaining Distribution Assets available for distribution pro rata based
  on the number of Ordinary Shares (on an as converted basis) held by any such
  holder.

	
 

	
 

	
 

	
 

	
(f)

	
Notwithstanding
  the foregoing, if distribution of the Distribution Assets among all
  shareholders of the Company, pro-rata to the number of shares they hold on an
  as converted basis, will result in the holders of Series BB-3 Preferred
  Shares receiving in respect of each Series BB-3 Preferred Share they hold an
  amount of at least three (3) times the Original Issue Price of the Series
  BB-3 Preferred Shares, then the provisions of subarticles (b)-(e) above shall
  not apply and the Distribution Assets shall be distributed among all
  shareholders of the Company, pro-rata to the number of share they hold, on an
  as converted basis.

- 7 -

	
 

	
 

	
 

	
 

	
 

	
(g)

	
In the event
  of a Merger or an Acquisition in which the shareholders (and not the Company)
  are the intended recipients of the proceeds resulting therefrom (such as with
  a sale of shares transaction), no transfer of securities in accordance
  thereto will be considered valid, unless the provisions of the distribution
  preferences under this Article 8 shall apply.

	
 

	
 

	
 

	
 

	
(h)

	
Whenever the
  Distribution Assets are in securities or property other than cash, the value
  of such assets shall be the fair market value of such securities or other
  property as shall be determined by the Board, or by the liquidator in case of
  winding up. Such proceeds shall be made payable in US dollars unless any
  holder of fully paid share elects to receive such distributions in NIS. The
  NIS equivalent of the dollar value of any distribution shall be determined in
  accordance with the Representative Rate last published by the Bank of Israel
  prior to the date of the making of the distribution.

	
 

	
 

	
 

	
9.

	
CONVERSION
  OF PREFERRED SHARES

	
 

	
 

	
 

	
The holders
  of the Preferred Shares shall have conversion rights as follows (the “Conversion Rights”):

	
 

	
 

	
 

	
 

	
(a)

	
Right to
  Convert.

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
Subject to
  Article 9(c), each fully paid Preferred Share shall be convertible, at the
  option of the holder thereof, at any time after the date of issuance of such
  Preferred Share at the Office or any transfer agent for the Preferred Shares,
  into one fully paid and non-assessable Ordinary Share nominal value NIS 0.01
  and the Company shall, at such time, issue to the holders thereof, for no
  additional charge (a portion of the premium paid for such Preferred Shares
  being attributed as payment on account of the nominal value of such
  additional Ordinary Shares – in the event that the then applicable law
  requires that shares are issued for no less than their nominal value and to
  the extent no other source available pursuant to the provisions of the then
  applicable law may be used for such purpose), such number of fully-paid and
  non-assessable Ordinary Shares as required so that the total number of
  Ordinary Shares so issued (i.e. including the Ordinary Share into which the
  Preferred Share was converted) will be equal to the number determined by
  dividing the Original Issue Price applicable to such Preferred Share by the
  Conversion Price (as defined below) at the time in effect for such share. In
  the event that the then applicable law requires that shares are issued for
  not less than their nominal value, and the aggregate nominal value of all
  such Ordinary Shares shall exceed the consideration paid to the Company with
  respect to such Preferred Share, the holder thereof shall pay the Company
  such excess nominal value to the extent no other source available pursuant
  to the provisions of the then applicable law (such as premiums paid for other
  shares of the Company) may be used for such purpose. The initial Conversion
  Price per share for the Series BB-3 Preferred Shares, the Series BB-1
  Preferred Shares and the Series AA Preferred Shares shall be the Original
  Issue Price of the Series BB-1 Preferred Shares and the initial Conversion
  Price for the Series BB-2 Preferred Shares shall be the Original Issue Price
  of the Series BB-2 Preferred Shares, provided, however, that the Conversion
  Price for the Preferred Shares shall be subject to adjustment as set forth in
  subarticles 9(c), 9(d) and 9(e).

- 8 -

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
Each
  Preferred Share shall automatically be converted into Ordinary Shares at the
  Conversion Price at the time in effect for such Preferred Share upon the
  earlier of: (A) a Qualified IPO, or (B) the written consent of the Majority
  Preferred Shareholders, provided however that if such conversion is not part
  of, or conditioned upon the closing of, a Qualified Transaction (as defined
  in Article (12)(g) below), such conversion shall be subject to the Special BB
  Consent as set forth in Article 12(g) below. The Series AA Preferred Shares
  shall also automatically be converted into Ordinary Shares as aforesaid upon
  the consent of the holders of at least sixty six percent (66%) of the issued
  and then outstanding Series AA Preferred Shares.

	
 

	
 

	
 

	
 

	
(b)

	
Mechanics of
  Conversion.

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
Before any
  holder of Preferred Shares shall be entitled to convert the same into
  Ordinary Shares such holder shall surrender the certificate or certificates
  therefor at the Office and shall give written notice to the Company of the
  election to convert the same (or any part thereof) and shall state therein
  the name or names of any nominee for such holder in which the certificate or
  certificates for shares of Ordinary Shares are to be issued. The Company
  shall, as soon as practicable thereafter unless such notice states that
  conversion is to be effective on any later date or when *** conditions
  specified in the notice have been fulfilled in which case conversion shall take
  effect on such other date or when such conditions have been fulfilled, issue
  and deliver at such office to such holder of Preferred Shares, or subject to
  the transfer restrictions contained in these Articles to the nominee or
  nominees of such holder, a certificate or certificates for the number of
  shares of Ordinary Shares to which such holder shall be entitled as
  aforesaid. Such conversion shall be deemed to have been made immediately
  prior to the close of business on the date of such surrender of the shares of
  Preferred Shares to be converted, or on any later date or when any conditions
  specified in the notice have been fulfilled and the person or persons
  entitled to receive the Ordinary Shares issuable upon such conversion shall
  be treated for all purposes as the record holder or holders of such Ordinary
  Shares as of such date. If the conversion is in connection with a QIPO, the
  conversion may, at the option of any holder tendering Preferred Shares for
  conversion, be conditioned upon the closing with the underwriter of the sale
  of securities pursuant to such offering, in which event the person(s)
  entitled to receive the Ordinary Shares issuable upon such conversion of the
  Preferred Shares shall not be deemed to have converted such Preferred Shares
  until immediately prior to the closing of such sale of securities. In the
  event that the certificate(s) representing the Preferred Shares to be
  converted as aforesaid are not delivered to the Company, then the Company
  shall not be obligated to issue any certificate(s) representing the Ordinary
  Shares issued upon such conversion, unless the holder of such Preferred
  Shares notifies the Company in writing that such certificate(s) have been
  lost, stolen or destroyed and executes an agreement satisfactory to the Company
  to indemnify the Company from any loss incurred by it in connection with such
  certificates.

- 9 -

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
A conversion
  of Preferred Shares pursuant to one of the events described in Article
  9(a)(2) shall be deemed to have taken place automatically regardless of
  whether the certificates representing such shares have been tendered to the
  Company but from and after such conversion any such certificates not tendered
  to the Company shall be deemed to evidence solely the Ordinary Shares
  received upon such conversion and the right to receive a certificate for such
  Ordinary Shares.

	
 

	
 

	
 

	
 

	
(c)

	
Conversion
  Price Adjustments of Preferred Shares

	
 

	
 

	
 

	
 

	
 

	
Until the
  QIPO, the applicable Conversion Price of the Preferred Shares shall be
  subject to adjustment from time to time as follows:

	
 

	
 

	
 

	
 

	
 

	
(1)

	
During the
period commencing on the closing of the Poalim Agreement, and ending on the
earlier of (x) the QIPO or (y) 24 months following such date (the “Initial
Period”), upon each issuance by the Company of any “Additional Securities”
(as defined below) without consideration or for a price per share less than
the applicable Conversion Price for any issued and outstanding Series BB
Preferred Shares in effect immediately prior to the issuance of such
Additional Securities, the applicable Conversion Price for any such issued
and outstanding Series BB Preferred Share in effect immediately prior to each
such issuance shall be adjusted to the price per share paid at such issuance. 

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
With respect
  to the Series BB Preferred Shares during the period after the Initial Period
  and until the QIPO and with respect to the Series AA Preferred Shares during
  the Initial Period and thereafter until the QIPO, upon each issuance by the
  Company of any “Additional Securities” (as defined below), without
  consideration or for a price per share less than the applicable Conversion
  Price for any issued and outstanding applicable series of Preferred Shares in
  effect immediately prior to the issuance of such Additional Securities, the
  applicable Conversion Price for any such issued and outstanding series of
  Preferred Shares in effect immediately prior to each such issuance shall be
  adjusted to a price (calculated to the nearest ten thousandth of a US Dollar
  ($0.0001)) determined by dividing (1) the sum of (A) the total number of
  Ordinary Shares issued and outstanding prior to the issuance of such
  Additional Securities multiplied by the applicable Conversion Price of such
  series, as the case may be, in effect prior to the issuance of such Additional
  Securities, plus (B) the total amount of the consideration received by the
  Company for such Additional Securities by (2) the sum of the total number of
  Ordinary Shares issued and outstanding immediately prior to the issuance of
  such Additional Securities plus the number of such Additional Securities
  issued. For the purpose of the above calculation, the number of shares of
  Ordinary Shares issued and outstanding immediately prior to such issue shall
  be calculated on an as converted and fully diluted basis, as if all
  outstanding warrants, options or other rights for the purchase of shares or
  convertible securities had been fully exercised (and the resulting securities
  fully converted into Ordinary Shares, if so convertible) as of such date.

- 10 -

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(3)

	
In the event
  that the full application of the anti dilution protection in subarticles
  9(c)(l) and 9(c)(2) cannot be implemented mathematically, then the Series BB
  Preferred Shares shall have absolute priority over the Series AA Preferred
  Shares in implementation of the above such that only the Series BB Preferred
  Shares shall be provided with the anti-dilution protection.

	
 

	
 

	
 

	
 

	
 

	
 

	
(4)

	
(A)

	
No
  adjustments of any applicable Conversion Price shall be made in an amount
  less than ten thousandth of a US Dollar ($0.0001). No adjustment of any
  applicable Conversion Price pursuant to subarticles 9(c)(l) and (2) shall be
  made if it has the effect of increasing the applicable Conversion Price above
  the applicable Conversion Price in effect immediately prior to such adjustment.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(B)

	
In the case
  of the issuance of Additional Securities (as defined below) for cash, the
  consideration, for the purpose of subarticles 9(c)(l) and (2), shall be deemed
  to be the amount of cash received therefore before any payment of commissions,
  expenses and the like.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(C)

	
In the case
  of the issuance of Additional Securities (defined below) for a consideration,
  in whole or in part other than cash, the consideration other than cash shall,
  for the purpose of subarticles 9(c)(l) and (2), be deemed to be the fair
  value thereof as determined, in good faith, by the Board of Directors.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(D)

	
In the case
  of the issuance of options to purchase or rights to subscribe for Ordinary
  Shares, or securities by their terms convertible into or exchangeable for
  Ordinary Shares or options to purchase or rights to subscribe for such
  convertible or exchangeable securities, the aggregate maximum number of
  Ordinary Shares deliverable upon exercise (assuming the satisfaction of any
  conditions to exercise, including without limitation, the passing of time,
  but without taking into account potential antidilution adjustments) of such
  options to purchase or rights to subscribe for Ordinary Shares or upon
  conversion or an exchange of such convertible or exchangeable security shall
  be deemed to have been issued at the time of the issuance of such options,
  rights, or securities at a consideration equal to the consideration
  (determined in the manner provided in subarticle 9(c)(4)(B) and (c)(4)(C)),
  if any, received by the Company upon the issuance of such options or rights
  or securities plus any additional consideration payable to the Company
  pursuant to the term of such options or rights or securities (without taking
  into account potential antidilution adjustments) for the Ordinary Shares
  covered thereby, and the applicable Conversion Price shall be adjusted
  accordingly. Upon the expiration of any such options or rights, the
  termination of any such rights to convert or exchange or the expiration of
  any options or rights related to such convertible or exchangeable securities,
  the Conversion Price for such series of Preferred Shares to the extent in any
  way affected by or computed using such options, rights or securities or
  options or rights related to such securities (unless such options or rights
  were merely to be included in the numerator and denominator for purposes of
  determining the number of Ordinary Shares outstanding for purposes of Article
  9(c)(2)) shall be recomputed to reflect the issuance of only the number
  Ordinary Shares (and convertible or exchangeable securities that remain in
  effect) actually issued upon the exercise of such options or rights, or upon
  the conversion or exchange of such securities or upon the exercise of the
  options or rights related to such securities. The number of Ordinary Shares
  deemed issued and the consideration deemed paid therefor shall be
  appropriately adjusted to reflect any change, termination or expiration of
  the type described in this Article 9(c)(4)(D).

- 11 -

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(E)

	
For purpose
  of subarticles 9(c)(l) and (2) hereof, the consideration for any Additional
  Securities shall be taken into account at the U.S. dollar equivalent thereof,
  on the day such Additional Securities are issued or deemed to be issued pursuant
  to subarticle 9(c)(4)(D).

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(5)

	
“Additional
  Securities” shall mean any Ordinary Shares, options to purchase or rights to
  subscribe for Ordinary Shares, or securities which by their terms are
  convertible into or exchangeable for Ordinary Shares, or any securities
  convertible into or exercisable for any securities of the foregoing.
  Notwithstanding the foregoing, “Additional Securities” does not include:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(A)

	
Securities
  issued pursuant to a transaction described in subarticle 9(c)(6) hereof;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(B)

	
The
  issuance, pursuant to the approval of the Board, of Ordinary Shares or
  Options to purchase Ordinary Shares to employees, directors and bona-fide
  consultants; and

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(C)

	
Securities
  issued pursuant to options, warrants or other rights outstanding on the
  losing of the Poalim Agreement or on the closing of the Wellington Agreement,
  provided that such options, warrants or other rights are reflected in the
  Capitalization Table attached as Schedule 2.2 to the Poalim Agreement or in Schedule
  2.2 to the Wellington Agreement; and

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(D)

	
Ordinary
  Shares issued upon conversion of Preferred Shares or Ordinary-Preferred
  Shares; and

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(E)

	
Issuance of
  bonus shares, providing such bonus shares are issued to all the then existing
  shareholders, or shares issued pursuant to a rights offering in which all
  such shares are offered exclusively to existing shareholders; and

- 12 -

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(F)

	
Shares
  issued in the acquisition of another company provided that the issuance of
  such shares is approved by the Board of Directors; and

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(G)

	
Shares
  issued in connection with equipment leases, bank loans or secured debt
  financings approved by the Board of Directors provided the number of such
  shares issued shall not exceed 1% of the then issued *** outstanding share
  capital of the Company on a fully diluted, as converted basis; and

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(H)

	
Securities
  issued or issuable following written approval of Majority Preferred
  Shareholders in which they agree to waive their anti-dilution or pre-emptive
  rights (as the case may be) with respect to such specific issuance.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(I)

	
Securities
  issued as a charitable donation pursuant to Article 3A.

	
 

	
 

	
 

	
 

	
 

	
 

	
(6)

	
If the
  Company shall subdivide or combine its Ordinary Shares, the applicable
  Conversion Price shall be proportionately reduced, in case of subdivision of
  shares, as at the effective date of such subdivision, or if the Company shall
  fix a record date for the purpose of so subdividing, as at such record date,
  whichever is earlier, or shall be proportionately increased, in the case of
  combination of shares, as at the effective date of such combination, or, if
  the Company shall fix a record date for the purpose of so combining, as at
  such record date, whichever is earlier.

	
 

	
 

	
 

	
 

	
 

	
 

	
(7)

	
Subject to
  the liquidation preference of the Preferred Shares as set forth in Article 8
  above, if the Company at any time shall make a distribution of its assets to
  the holders of its Ordinary Shares as a dividend in liquidation or partial
  liquidation or by way of return of capital or other than as a dividend
  payable out of earnings or surplus legally available for dividends, each
  holder of Preferred Shares shall be entitled to receive without payment of
  any additional consideration, a sum equal to the amount of such assets as
  would have been payable to such holder as owner of that number of Ordinary
  Shares receivable by exercise of the conversion rights had such holder been
  the holder of record of such Ordinary Shares on the record date for such
  distribution; and an appropriate provision therefor shall be made a part of
  any such distribution.

	
 

	
 

	
 

	
 

	
 

	
(d)

	
Other
  Distributions

	
 

	
 

	
 

	
 

	
 

	
 

	
Subject to
  the liquidation preference of the Preferred Shares as set forth in Article 8
  above, in the event the Company shall declare a distribution payable in
  securities of other persons, evidences of indebtedness issued by the Company
  or other persons, assets (excluding cash dividends) or options or rights not
  referred to in subarticle 9(c)(5) or if the Company at any time shall pay a dividend
  payable in additional Ordinary Shares or other securities or rights
  convertible into, or entitling the holder thereof to receive directly or
  indirectly, additional Ordinary Shares then, in each such case for the
  purpose of this subarticle 9(d), the holders of the Preferred Shares shall be
  entitled to receive such distribution, in respect of their holdings on an as-converted
  basis as of the record date for such distribution.

- 13 -

	
 

	
 

	
 

	
 

	
 

	
(e)

	
Recapitalizations

	
 

	
 

	
 

	
 

	
 

	
 

	
If at any
  time or from time to time there shall be a Recapitalization Event (other than
  a subdivision, combination or merger or sale of assets transaction provided
  for elsewhere in this Article 9 or Article 8) provisions shall be made so
  that the holders of the Preferred Shares shall thereafter be entitled to
  receive upon conversion of the Preferred Shares the number of Ordinary Shares
  or other securities or property of the Company or otherwise, to which a
  holder of Ordinary Shares deliverable upon conversion would have been
  entitled immediately prior to such Recapitalization Event. In any such case,
  appropriate adjustment shall be made in the application of the provisions of
  this Article 9 with respect to the rights of the holders of the Preferred
  Shares after such Recapitalization Event to the end that the provisions of
  this Article (including adjustment of the Conversion Price then in effect and
  the number of shares issuable upon conversion of the Preferred Shares) shall
  be applicable after that event in a manner as nearly equivalent as may be
  practicable.

	
 

	
 

	
 

	
 

	
 

	
(f)

	
No
  Impairment

	
 

	
 

	
 

	
 

	
 

	
 

	
The Company
  will not, by amendment of these Articles or through any reorganization,
  recapitalization, transfer of assets, consideration, merger, dissolution,
  issue or sale of securities or any other voluntary action, avoid or seek to
  avoid the observance or performance of the Conversion Rights of the holders
  of Preferred Shares, but will at all times in good faith assist in the
  carrying out of all the provisions of this Article 9 and in the taking of all
  such action as may be necessary or appropriate in order to protect the
  Conversion Rights of the holders of the Preferred Shares against impairment.

	
 

	
 

	
 

	
 

	
 

	
(g)

	
No
  Fractional Shares and Certificate as to Adjustments

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
No
  fractional shares shall be issued upon conversion of the Preferred Shares,
  and the number of Ordinary Shares to be issued shall be rounded to the
  nearest whole share. Whether or not fractional shares are issuable upon such
  conversion shall be determined on the basis of the total number of Preferred
  Shares held by the holder and the number of Ordinary Shares issuable upon
  such aggregate conversion.

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
Upon the
  occurrence of each adjustment or readjustment of any applicable Conversion
  Price pursuant to this Article 9, the Company, at its expense, shall promptly
  compute such adjustment or readjustment in accordance with the terms hereof
  and prepare and furnish to each holder of Preferred Shares a certificate
  setting forth each adjustment or readjustment and showing in detail the facts
  upon which such adjustment or readjustment is based. The Company shall
  furnish or cause to be furnished to such holder a like certificate setting
  forth (A) such adjustment and readjustment, (B) the applicable Conversion
  Price at the time in effect, and (C) the number of Ordinary Shares and the
  amount, if any, of other property which at the time would be received upon
  the conversion of a Preferred Share.

- 14 -

	
 

	
 

	
 

	
 

	
(h)

	
Notices of
  Record Date

	
 

	
 

	
 

	
 

	
 

	
In the event
  of any taking by the Company of a record of the holders of any class of
  securities for the purpose of determining the holders thereof who are
  entitled to receive any dividend (including a cash dividend) or other
  distribution, any right to subscribe for, purchase or otherwise acquire any shares
  of any class or any other securities or property, or to receive any other
  right, the Company, shall provide to each holder of Preferred Shares, at
  least 20 days prior to the date specified therein, a notice specifying the
  date on which any such record is to be taken for the purpose of such
  dividend, distribution or right, and the amount and character of such
  dividend, distribution or right.

	
 

	
 

	
 

	
 

	
(i)

	
Reservation
  of Shares Issuable Upon Conversion

	
 

	
 

	
 

	
 

	
 

	
The Company
  shall at all times reserve and keep available out of its authorized but
  unissued shares of Ordinary Shares solely for the purpose of effecting the
  conversion of the Preferred Shares such number of its Ordinary Shares as
  shall from time to time be sufficient to effect the conversion of all outstanding
  Preferred Shares; and if at any time the number of authorized but unissued
  Ordinary Shares shall not be sufficient to effect the conversion of all then
  outstanding Preferred Shares, in addition to such other remedies as shall be
  available to the holder of such Preferred Shares, the Company will take such
  corporate action as may, in the opinion of its counsel, be necessary to
  increase its authorized but unissued Ordinary Shares to such number of shares
  as shall be sufficient for such purposes.

	
 

	
 

	
 

	
10.

	
CONVERSION
  OF ORDINARY-PREFERRED SHARES

	
 

	
 

	
 

	
(a)

	
Immediately
following the closing of the Poalim Agreement, each Ordinary-Preferred Share
shall be convertible, at the option of the holder thereof, into one fully
paid and non-assessable Ordinary Share nominal value NIS 0.01 (the “Converted
Ordinary-Preferred Share”) and upon such conversion the Company shall issue
to the holders thereof, for no additional charge (in the event that the then
applicable law requires that shares are issued for not less than their
nominal value, and the aggregate nominal value of all such Ordinary Shares
shall exceed the consideration paid to the Company with respect to such
Ordinary - Preferred Share, the holder thereof shall pay the Company such
excess nominal value to the extent no other source available pursuant to the
provisions of the then applicable law (such as premiums paid for other shares
of the Company) may be used for such purpose) such number of additional
fully-paid and non-assessable Ordinary Shares as required so that the total
number of Ordinary Shares so issued (i.e. including the Ordinary Share into
which the Ordinary - Preferred Share was converted) will be equal to the
number determined by multiplying the Converted Ordinary-Preferred Share by
1.552794 (subject, however, to Article 9 (g)(i) above). Accordingly, the
total number of Ordinary Shares into which the Ordinary-Preferred Shares may
be converted (immediately following the closing of the Poalim Agreement and
the sale of the Founders’ shares pursuant to the Share Transfer Agreement)
shall be 2,436,340. 

- 15 -

	
 

	
 

	
 

	
 

	
(b)

	
The
  Ordinary-Preferred Shares shall be automatically converted into Ordinary
  Shares as aforesaid in the event of an automatic conversion of the Series AA
  Preferred Shares of the Company pursuant to Article 9(a)(2) above. The
  conversion of the Ordinary-Preferred Shares into Ordinary Shares upon the
  automatic conversion of the Series AA Preferred Shares shall not require the
  consent of the holders of Ordinary-Preferred Shares. The Ordinary-Preferred
  Shares shall also automatically be converted into Ordinary Shares as
  aforesaid upon the consent of the holders of at least sixty six percent (66%)
  of the issued and then outstanding Ordinary-Preferred Shares. 

	
 

	
 

	
 

	
 

	
(c)

	
The
  applicable provisions of Article 9 (b) shall apply, mutatis mutandis, to
  conversions pursuant to sub-paragraphs (a) – (b) of this Article 10.

	
 

	
 

	
 

	
 

	
(d)

	
The
  provisions of subparagraphs (c)(6) and (7), (d) to (i) of Article 9 above
  shall apply with respect to the Ordinary-Preferred Shares, mutatis mutandis.

	
 

	
 

	
 

	
 

	
11.

	
VOTING
  RIGHTS

	
 

	
 

	
 

	
Subject to
  Article 58 below, each holder of Ordinary Shares, Ordinary-Preferred Shares
  and Preferred Shares shall be entitled to one (1) vote per Ordinary Share or
  Ordinary Share into which such Preferred Share or Ordinary-Preferred Share is
  convertible at the, time of voting, whether in a vote by show of hands,
  secret ballot or written consent. Each holder of Preferred Shares and
  Ordinary-Preferred Shares shall vote together with the Ordinary Shares as a
  single class (except as otherwise expressly provided in these Articles or as
  required by law) and shall be entitled to notice of any general meeting of
  shareholders in accordance with these Articles. Fractional votes shall not be
  permitted and any fractional vote resulting from the conversion mechanism,
  described above in these Articles shall be rounded up or down to the nearest
  whole number (with one-half (1/2) being rounded upward).

	
 

	
 

	
 

	
 

	
12.

	
PROTECTIVE
  PROVISIONS

	
 

	
 

	
 

	
 

	
 

	
(a)

	
Until the
  QIPO, the Company shall not take any of the following actions without
  approval of the Majority Preferred Shareholders (which may be obtained by way
  of a written consent and shall not require the convening of a shareholders
  meeting for such purpose, unless required by applicable law):

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
any
  amendment to or modification of these Articles and/or the Memorandum of
  Association of the Company or any other action which would amend, change or
  modify the rights, preferences or privileges of the Preferred Shares.

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
declaration
  of any dividend;

	
 

	
 

	
 

	
 

	
 

	
 

	
(3)

	
the
  authorization of any share capital, or other rights or securities convertible
  into or exchangeable for share capital, or the conversion of any existing
  shares into shares, in each case with rights equal to or superior *** the rights
  of the Preferred Shares;

- 16 -

	
 

	
 

	
 

	
 

	
 

	
 

	
(4)

	
any action
  or transaction which is outside the business of the Company as contemplated
  in the Updated Work Plan of the Company (as defined in the Poalim Agreement);

	
 

	
 

	
 

	
 

	
 

	
 

	
(5)

	
any transaction
  of the Company or of any subsidiary thereof, with either or both of the
  Founders, or with any entity affiliated with the Founder(s) in any way;

	
 

	
 

	
 

	
 

	
 

	
 

	
(6)

	
any action
  which effects a merger, reorganization, liquidation, disposition, acquisition
  or *** of the Company or of any subsidiary thereof, or any transfer of a
  material asset of the Company or of any subsidiary thereof, or the creation
  of or purchase of or into any entity;

	
 

	
 

	
 

	
 

	
 

	
 

	
(7)

	
any action
  which may alter or change the capital structure of the Company or of any
  subsidiary thereof, any action which effects a reclassification or
  recapitalization of the outstanding capital shares of the Company, and any
  increase in the registered share capital of the Company or of any subsidiary
  thereof;

	
 

	
 

	
 

	
 

	
 

	
 

	
(8)

	
the creation
  of any guarantee, mortgage, pledge or security interest in a material asset,
  or in all or substantially all of the assets of the Company or a subsidiary;

	
 

	
 

	
 

	
 

	
 

	
 

	
(9)

	
the
  replacement of the independent auditors to the Company, which in any event
  shall be one of the “big four”; and

	
 

	
 

	
 

	
 

	
 

	
 

	
(10)

	
the
  incurrence by the Company or by any subsidiary thereof of any indebtedness
  that shall exceed the sum of $250,000 (Two Hundred Fifty Thousand US
  Dollars), calculated on a cumulative basis in respect of any one transaction
  or in respect of a series of connected transactions;

	
 

	
 

	
 

	
 

	
 

	
(b)

	
Until the
  QIPO, the Company shall not issue any securities of any kind or options to
  purchase securities of any kind without the approval of the majority of the
  directors appointed by the holders of the Preferred Shares, provided however
  that shares issued upon the exercise of warrants, options, or other rights
  outstanding as of the closing of the Poalim Agreement or the closing of the
  Wellington Agreement or the grant of options (and shares issued upon exercise
  of such options) under the Company’s incentive plans are not subject to such
  approval.

	
 

	
 

	
 

	
 

	
 

	
(c)

	
Any
  amendment or modification of the rights and obligations of the Founders set
  forth in Article 14 (Preemptive Rights), Article 29B(b) (Bring Along),
  Article 29C (No Sale) and Article 65(a)(l) (participation of the Founders in
  the Board) shall require the consent of at least one of the Founders.

	
 

	
 

	
 

	
 

	
 

	
(d)

	
Any
  amendment or modification of the rights and obligations of Intel set forth in
  Article 29(e) (Right of First Refusal), Article 29A (Co-Sale) and, Article
  29(B)(c) (Bring Along) and 65(c) (Directors) shall require the consent of
  Intel.

	
 

	
 

	
 

	
 

	
 

	
(e)

	
Any
  amendment to or modification of these Articles which would adversely amend,
  change or modify the rights, preferences or privileges of the
  Ordinary-Preferred Shares shall require the consent of the holders of at
  least 66% of the Ordinary-Preferred Shares.

- 17 -

	
 

	
 

	
 

	
 

	
 

	
 

	
Furthermore,
  the authorization of any additional shares of Ordinary-Preferred Shares or
  any rights or securities convertible into or exchangeable for
  Ordinary-Preferred Shares, or the conversion of any other class of shares
  into Ordinary-Preferred Shares or the unification of the Ordinary-Preferred
  Shares with another class of shares shall require the consent of the holders
  of at least 66% of the Ordinary-Preferred Shares.

	
 

	
 

	
 

	
 

	
 

	
Notwithstanding
  the aforesaid, any amendment, modification, termination or waiver of the
  provisions of these Articles that applies to the rights of the holders of
  Ordinary-Preferred Shares in the same proportional manner and without
  treating them proportionally different from the Series AA Preferred Shares,
  shall not require the consent of the holders of the Ordinary-Preferred
  Shares. For illustration purposes, any change, including cancellation, of the
  Secondary Preference Amount, but not the manner of allocation of the
  Secondary Preference Amount between the holders of the Series AA Preferred
  Shares and the holders of the Ordinary-Preferred Shares as set forth in
  Article 8(d), shall not require the consent of the holders of the Ordinary-Preferred
  Shares.

	
 

	
 

	
 

	
 

	
(f)

	
Until the
  QIPO, the Company shall not take, without the consent of the holders of at
  least a majority of the issued and outstanding Preferred Shares of the
  affected class, an action that amends or modifies the rights attached to such
  class of Preferred Shares, provided however that (a) the authorization or
  issuance of a new class of shares with preferential rights, or (b) a change,
  waiver of other modification that applies to the rights of the Preferred
  Shares in the same proportional manner and without treating a certain series
  proportionally different from the other series, in each case – that was approved
  by holders of a majority of the issued and outstanding Preferred Shares,
  shall not be deemed a change hereunder.

	
 

	
 

	
 

	
 

	
(g)

	
Until the
QIPO, the Company shall not take, without the consent of the holders of at
least a majority of the issued and outstanding Series BB Preferred Shares
(which must include also the affirmative consent of the holders of at least
70% of the Series BB-1 Preferred Shares and Series BB-3 Preferred Shares
(voting together as one group) that were issued at the closing of the Poalim
Agreement and at the closing of the Wellington Agreement to investors who
were not shareholders of the Company immediately prior to the closing of the
Poalim Agreement or affiliates or Permitted Transferees of such shareholders
(the “Special BB Consent”)) an action that effects (i) any change or waiver
of rights of the Series BB Preferred Shares that does not apply to the rights
of all Preferred Shares in the same proportional manner and that treats a
certain series proportionally differently from the other series; (ii) any
waiver of liquidation preferences, anti-dilution, board representation or
information rights of the Series BB Preferred Shares, (iii) an IPO, merger or
the sale of all or substantially all of the Company’s shares or assets,
unless, in each such case, the applicable IPO or transaction reflects a price
per share of more than two times the Original Issue Price of the Series BB-I
Preferred Shares (a “Qualified Transaction”), or (iv) conversion of the
Series BB Preferred Shares, other than as part of, and conditioned upon the
closing of, a Qualified Transaction.  

- 18 -

	
 

	
 

	
 

	
 

	
 

	
(h)

	
The required
  consents as set forth in Articles 12(a) – (g) above shall also apply to any
  action taken by any wholly owned subsidiary of the Company.

	
 

	
 

	
 

	
 

	
13.

	
ALLOTMENT OF
  SHARES

	
 

	
 

	
 

	
 

	
 

	
Subject to
  the provisions of Articles 12 and 14, the authorized but unissued shares
  shall be under the control of the Board of Directors, who shall have the
  power to allot shares or otherwise dispose of them to such persons, on such terms
  and conditions (including, inter-alia, terms relating to calls as set forth in
  Article 31 hereof), and either at par or at a premium, or, subject to the
  provisions of the Companies Law, at a discount, and at such times, as the
  Board of Directors may think fit, and the power to give any person the option
  to acquire from the Company any shares, either at par or at premium, or
  subject as aforesaid, at a discount, during such time and for such
  consideration as the Board of Directors may think fit.

	
 

	
 

	
 

	
 

	
14.

	
PREEMPTIVE
  RIGHTS

	
 

	
 

	
 

	
 

	
 

	
(i)

	
Until the
  QIPO, the provisions of this Article 14 shall apply:

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
Any
Additional Securities (as defined in Article 9 above) to be issued by the
Company (the “Offered Securities”) shall first be offered by the Board of
Directors by written notice to each Major Holder and Founder, for as long as
such Founder holds shares in the Company (for purposes of this Article 14,
the “Offerees”). The number of Offered Securities offered to each Offeree
shall be the result of the multiplication of the Offered Securities by a
fraction: (i) the numerator of which shall be the total number of outstanding
Ordinary Shares of the Company (on an as-converted basis) held by such
Offeree as determined prior to the offer made pursuant to this Article ***,
and (ii) the denominator of which is the total number of outstanding Ordinary
Shares of the Company (on an as-converted basis), as determined prior to the
offer made pursuant to this Article 14.  

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
The Company
shall provide each Offeree with a Notice (the “Notice of Offer”) specifying
the number of Offered Securities he is entitled to purchase and which shall
state the terms of the proposed issuance, and any such Offeree may accept
such offer, as to all or any part of the Offered Securities so offered to
him, by giving the Company written notice of acceptance within twenty (20)
days after being served with such Notice of Offer; provided, however, that
the Founders may only exercise such right for their own benefit through their
available funds, provided that if the purchase by such Offeree is being
effected prior to, or concurrently with such issuance of Offered Securities
(rather than subsequent thereto) then such Offeree shall be obligated to
consummate the purchase of such Offered Securities only if the Company
consummates the sale of the balance of the Offered Securities pursuant to the
terms described in such Notice of Offer  

	
 

	
 

	
 

	
 

	
 

	
 

	
(3)

	
Any and all
  preemption rights set forth in this Article 14, may be exercised by a
  Permitted Transferee of a Major Holder instead of by such Major Holder if
  such Major Holder so notifies the Company in writing.

- 19 -

	
 

	
 

	
 

	
 

	
(j)

	
Any Offered
  Securities not subscribed for by the Offered as aforesaid, shall be under the
  control of the Board of Directors and may be issued without regard to this
  Article 14, except to the extent that said Offered Securities may not be
  allotted on terms more favorable to the purchaser than those offered pursuant
  to this Article 14. In the event the Offered Securities are not acquired by
  the expiration of 120 days from the date of expiration of the twenty (20) day
  period referred to in Article 14(a)(2), they may not be issued except by
  compliance with the provisions of Article 14.

	
 

	
 

	
 

	
15.

	
REGISTERED
  HOLDER 

	
 

	
 

	
 

	
 

	
(a)

	
If two or more
  persons are registered as joint holders of a share they shall be jointly and
  severally liable for any calls or any other liability with respect to such
  share. However, with respect to voting, power of attorney and furnishing
  notices, the one registered first in the register of shareholders, insofar as
  all the registered joint holders shall not notify the Company in writing to
  relate to another one of them as the sole owner of the share, as aforesaid,
  shall be deemed to be the sole owner of the Share.

	
 

	
 

	
 

	
 

	
(b)

	
In the case
  that two or more persons arc registered together as holders of a share, each
  one of them shall be permitted to give receipts binding all the joint holders
  for dividends or other monies in connection with the share and the Company
  shall be permitted to pay all the dividends or other monies due with respect
  to the share to one or more of the joint holders, as it shall choose.

	
 

	
 

	
 

	
 

	
(c)

	
Except as
  otherwise provided in these Articles, the Company shall be entitled to treat
  the registered holder of any share as the absolute owner thereof, and,
  accordingly, shall not, except as ordered by a court of competent
  jurisdiction, or as required by statute, be bound to recognize any equitable
  or other claim to, or interest in, such share, on the part of any other
  person. 

	
 

	
 

	
 

	
16.

	
SHARE
  CERTIFICATE 

	
 

	
 

	
 

	
 

	
(a)

	
A
  shareholder shall be entitled to receive from the Company without payment,
  one certificate that shall contain that number of shares registered in the
  name of such shareholder, their class and serial numbering. However, in the
  event of joint holders holding a share, the Company shall not be obligated to
  issue more than one certificate to all of the joint holders, and the delivery
  of such a certificate to one of the joint holders shall be deemed to be a
  delivery to all of the joint holders.

	
 

	
 

	
 

	
 

	
(b)

	
Each
  certificate shall carry the signature or signatures of a director or such
  other persons appointed by the Board of Directors for this purpose and the
  rubber stamp or  the seal of the
  Company.

	
 

	
 

	
 

	
 

	
(c)

	
If a share
  certificate is defaced, lost or destroyed, it may be replaced upon payment of
  such fee, if any, and on such terms, if any, as to evidence and indemnity as
  the Board of Directors may think fit.

- 20 -

	
 

	
 

	
17.

	
MODIFICATIONS
  OF SHARE RIGHTS

	
 

	
 

	
 

	
If at any
  time the share capital is divided into different classes of shares (unless
  otherwise provided for by the terms of issue of the shares of that class) it
  shall be permitted, subject to the provisions of Article 12 above, to change,
  convert, broaden, add or vary in any other manner the rights, advantages,
  restrictions and provisions attached at that time to one or more of the
  classes by a resolution of the general meeting of the shareholders of the
  Company, without the need for any separate class vote or class meeting.

	
 

	
 

	
 

	
It is hereby
  clarified that any resolution required to be adopted pursuant to these
  Articles by the consent of a separate class of shares, whether by way of a
  separate general meeting of such class or by way of written consent, shall be
  given by the holders of shares of such class entitled to vote or give consent
  thereon and no holder of shares of a certain class shall be banned from
  voting or consenting by virtue of being a holder of more than one class of
  shares of the Company, irrespective of any conflicting interests that may
  exist between such different classes of shares. A shareholder shall not be
  required to refrain from participating in the discussion, voting and/or
  consenting on any resolution concerning an amendment to any class of shares
  held by such shareholder, due to the fact that such shareholder may benefit
  in one way or another from the outcome of such resolution. 

	
 

	
 

	
 

	
Without
  derogating from the need to receive any consents or approvals required
  pursuant to Article 12, it is hereby clarified and agreed that the
  enlargement of an existing class of shares, or the issuance or allotment of
  additional shares thereof, or the creation of additional shares of that class
  as a result of conversion of shares from another class or. unification with
  another class, shall not be deemed, for purposes of these Articles, to amend,
  change, vary, modify or abrogate the rights attached to the previously issued
  shares of such class or of any other class.

	
 

	
 

	
PLEDGE

	
 

	
 

	
18.

	
The Company
  shall have a lien and first pledge on all the shares, not fully paid,
  registered in the name of any shareholder (whether registered in his name
  only or together with another or others) and on the proceeds from the sale
  thereof, for any amount still outstanding with respect to that share, whether
  presently payable or not. Such a pledge shall exist whether the dates of
  payment or fulfillment or execution of the obligations, debts or commitments
  have become due or not, and shall apply to all dividends that shall be
  decided upon from time to time in connection with these shares. No benefit
  shall be created with respect to this share based upon the rules of equity
  which shall frustrate this pledge, however the Board may declare at any time
  with respect to any share, that it is released, wholly or in part,
  temporarily or permanently, from the provisions of this article.

	
 

	
 

	
19.

	
The Company
  may sell, in such manner and at such time as the Board thinks fit, any of the
  pledged shares, but no sale shall be made unless the date of payment of the
  monies or a part thereof has arrived, or the date of fulfillment and
  performance of the obligations and commitments in consideration of which the
  pledge exists has arrived, and after a written request has been furnished to
  the shareholder or person who has acquired a right in the shares, which sets
  out the amount or obligation or commitment due from him and which demands
  their payment, fulfillment or execution, and which informs the person of the
  Board’s desire to sell the shares in the event of non-fulfillment of the
  notice, and the person has not fulfilled his obligation pursuant to the
  notice within seven days after the notice has been sent to him.

- 21 -

	
 

	
 

	
20.

	
The net
  proceeds of such sale after payment of the costs thereof; shall be applied in
  payment of such sum due to the Company or to the fulfillment of the
  obligation or commitment (including debts, liabilities and engagements which
  have not yet fallen due for payment or satisfaction), and the remainder (if
  there shall be any) shall be paid to the shareholder or to the person who has
  acquired a right in the share sold pursuant to the above.

	
 

	
 

	
21.

	
After
  execution of a sale as aforesaid, the Board shall be permitted to sign or to
  appoint someone to sign a deed of transfer of the sold shares and to register
  the buyer’s name in the register of shareholders as the owner of the sold
  shares and it shall not be the obligation of the buyer to supervise the
  application of monies nor will his right in the shares be affected by a
  defect or illegality in the sale proceedings after his name has been
  registered in the register of shareholders with respect to those shares. The
  sole remedy of any person aggrieved by the sale shall be in damages only and
  against the Company exclusively.

	
 

	
 

	
TRANSFER OF
  SHARES AND THE MANAGEMENT THEREOF

	
 

	
 

	
22.

	
Each
  transfer of shares shall be made in writing in the form appearing herein
  below, or in a similar form, or in any form as to be determined upon by the
  Board from time to time, such form shall be delivered to the Office together
  with the transferred share certificates and any other proof the Board shall
  require, if it shall so require, in order to prove the title of the
  transferor. The instruments and documents notifying the Company with respect
  to the transfer are a prerequisite to the effectuation of such transfer.
  Notwithstanding the above, any transfer of shares to any person or entity
  that is not at the time of transfer a shareholder of the Company and that
  competes with the Company, directly or indirectly, in the field of optical
  inspection or metrology for semiconductors or the transfer of shares which
  have not been fully paid up will require the consent and approval of the
  Board of Directors, except if such transfer is to a Permitted Transferee.

	
 

	
 

	
Deed of Transfer of Shares

	
 

	
 

	
I,
  ____________of _____________in consideration of the sum of NIS ___________
  (New Israeli Shekels) paid to me by __________, of ____________ (hereinafter
  called “the said transferee”) do hereby transfer to the said transferee
  ___________ share (or shares) having par value of NIS________each one
  numbered____until____inclusive in Negevtech Ltd., to hold unto the said
  transferee, his executors, administrators, and assigns, subject to the
  conditions on which I held the same at the time of the execution hereof; and
  I, the said transferee, do hereby agree to accept the said share (or shares)
  subject to the conditions aforesaid. As witness we have hereunder set out
  hands the______day of _________20__. 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
 

	
Transferee

	
 

	
Transferor

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
 

	
Address

	
 

	
Address

	
 

	
 

	
 

	
23.

	
The deed of
  share transfer shall be executed both by the transferor and transferee, and
  the transferor shall be deemed to remain a holder of the share until the name
  of the transferee is entered into the register of shareholders in respect
  thereof.

- 22 -

 

	
 

	
 

	
24.

	
The Company
  shall be permitted to demand a fee for registration of transfer, in a
  reasonable rate as to be determined by the Board from time to time, with the
  exception of transfers to Permitted Transferees.

	
 

	
 

	
25.

	
The Register
  shall be closed for a period of seven (7) days before every ordinary general
  meeting of the Company.

	
 

	
 

	
26.

	
Upon the
  death of a shareholder, the remaining holders (in the event that the deceased
  was a joint holder in a share) or the administrators or executors or heirs of
  the deceased (in the event the deceased was the sole holder of the share or
  was the only one of the joint holders of the share to remain alive) shall be
  recognized by the Company as the sole holders of any title to the shares of
  the deceased. However, nothing aforesaid shall release the estate of a joint
  holder of a share from any obligation with respect to the share that he held
  jointly with any other holder.

	
 

	
 

	
27.

	
Any person
  becoming entitled to a share in consequence of the death or bankruptcy or
  liquidation of a shareholder shall, upon such evidence being produced as may
  from time to time be required by the Board, have the right, either to be
  registered as a shareholder in respect of the share upon the consent of the
  Board or, instead of being registered himself, to transfer such share to
  another person, subject to the provisions contained in these Articles with
  respect to transfers.

	
 

	
 

	
28.

	
A person
  becoming entitled to a share because of the death of a shareholder shall be
  entitled to receive, and to give receipts for, dividends or other payments
  paid with respect to the share, but he shall not be entitled to receive
  notices with respect to Company meetings or to participate or vote therein
  with respect to that share, or aside from the aforesaid, to use any right of
  a shareholder, until he has been accepted as a shareholder with respect to
  that share.

	
 

	
 

	
 

	
29.

	
RIGHT OF
  FIRST REFUSAL

	
 

	
 

	
 

	
 

	
(a)

	
Until the
  QIPO, a shareholder in the Company shall not be permitted to make any
  Transfer (as hereinafter defined) of his shares in the Company, other than to
  a Permitted Transferee, except pursuant to the following provisions set forth
  below.

	
 

	
 

	
 

	
 

	
 

	
For the
purposes of this Agreement, the term “Transfer” shall mean any sale,
assignment, transfer, hypothecation or other encumbrance or disposition of in
any way. 

	
 

	
 

	
 

	
 

	
(b)

	
A
shareholder, desirous of making any Transfer of the shares held by him to
others, in whole or in part (hereinafter the “Transferor”) shall be obligated
to offer them first to the Offerees (as defined in Article 14 above), by
giving notice in writing to such Offerees (hereinafter “Sale Notice”).  

	
 

	
 

	
 

	
 

	
(c)

	
In the Sale
Notice the Transferor shall mention the number of shares he wishes to
Transfer (hereinafter the “Offered Shares”), the price forming the
consideration for the Offered Shares, the name of the transferee (the
“Transferee”) and the other conditions of the sales.  

	
 

	
 

	
 

	
 

	
(d)

	
The Sale
  Notice shall be irrevocable unless all of the Offerees agree otherwise.

- 23 -

	
 

	
 

	
 

	
 

	
(e)

	
Each of the
Offerees may inform the Transferor in writing within 21 Business Days from
the date of receipt of the Sale Notice as to his/her intention to purchase
that number of Offered Shares, in whole or in part, which is the result of
the multiplication of the Offered Shares by a fraction: (i) the numerator of
which is the number of Ordinary Shares (on an as-converted basis) of the
Company held by such Offeree and (ii) the denominator of which is the total
number of outstanding Ordinary Shares (on an as-converted basis) held by all
Offerees (hereinafter the “Offerees’ Offered Shares”), the purchase of which
shall be at the purchase price and in accordance with the payment conditions
as provided for in the Sale Notice (hereinafter the “Purchase Notice”). An
Offeree who has submitted a Purchase Notice shall be referred to hereinafter
as “Buyer”. Notwithstanding the foregoing, Intel (to the extent it is a Major
Holder) shall be required to provide the Transferor with a Purchase Notice
within 10 days of receipt of the Sale Notice and, in the event Intel is the
Transferor, the Offerees will be required to provide Intel with a Purchase
Notice within 10 days of receipt of the Sale Notice.  

	
 

	
 

	
 

	
 

	
(f)

	
Thereafter,
the Transferor shall give each Buyer who has fully exercised his rights
pursuant to Article 29(e) a written notice (the “Excess Notice”) stating the
amount of Offered Shares with respect to which no Purchase Notice was
submitted (hereinafter referred to as “Excess Offered Shares”) and each such
Buyer shall be entitled, subject to Article 29(j) below, provided he so
notifies the Transferor in writing (the “Excess Reply Notice”), such Excess
Reply Notice to be received by the Transferor within 7 Business Days following
the delivery by the Transferor to such Buyer of the Excess Notice, to
purchase any or all of such Excess Offered Shares.  

	
 

	
 

	
 

	
 

	
(g)

	
If by the
  end of the time referred to in Articles 29(e) and 29(f) above no Purchase
  Notices have been received by the Transferor or the Transferor has received
  Purchase Notices with respect to a total number of shares that is less than
  the number of Offered Shares, the Transferor may, within 30 days from the
  expiration of the time for submission of the Purchase Notices or, in the
  event that Article 29(f) applies, the Excess Reply Notice, sell all (but not
  less than all) of the Offered Shares to the Transferee and/or to any Buyer
  that submitted a Purchase Notice and, if applicable, an Excess Notice, up to
  the number of shares requested to be purchased by such Buyer (though he shall
  be under no obligation to do so) at a price not less than the price mentioned
  in the Sale Notice (as linked to the representative rate of the U.S. dollar
  from the day of the furnishing of the notice to the date of sale in fact) and
  upon all other conditions not less favorable to the Transferor than those
  provided for in the Sales Notice.

	
 

	
 

	
 

	
 

	
(h)

	
If the
  Transferor shall not transfer the Offered Shares as aforesaid, within the
  period of time specified in Articles 29(e), (f) and (g) above, he shall be
  obligated, before selling the Offered Shares to another, to offer them again
  to the Offeree in accordance with the aforementioned procedure, and such
  procedure shall apply to any further offer.

	
 

	
 

	
 

	
 

	
(i)

	
If there
  have been received Purchase Notices and, if applicable, Excess Reply Notices,
  for a total number of shares equal to the number of Offered Shares, then
  every Buyer shall buy the number of shares as mentioned in the Purchase
  Notice and, if applicable, the Excess Reply Notices, he has submitted.

- 24 -

	
 

	
 

	
 

	
 

	
(j)

	
If Purchase
  Notices and Excess Reply Notices shall have been received for a total number
  of shares greater than the number of Offered Shares, the Buyers may acquire
  shares in a manner proportionate to the share capital of the Company held by
  them at that time, as determined in accordance with Article 29(e) above.
  However, no Buyer shall be required to buy a greater number of shares than
  the number provided for in the Purchase Notice and, if applicable, the Excess
  Reply Notice, submitted by him and upon the allocation to him of the full
  number of Offered Shares so requested by him in the Purchase Notice, such
  Buyer shall be disregarded for the purpose of any further allocation of the
  remaining Excess Offered Shares.

	
 

	
 

	
 

	
 

	
(k)

	
In every one
of the events referred to in Articles 29(e), 29(f), 29(g), 29(h), 29(j) and
29(i) the Transferor shall send within five (5) days after the last date for
the submission of each of the Purchase Notices and the Excess Reply Notices
to each of the Buyers, a notice accompanied by the copies of all Purchase
Notices received by the Transferor of either non-acceptance of the offer
pursuant to the Sale Notice or the acceptance thereof (hereinafter the
“Acquisition Notice”). 

	
 

	
 

	
 

	
 

	
(l)

	
After
  receipt of the Acquisition Notice notifying acceptance, each Buyer shall
  purchase from the Transferor, and the Transferor shall sell and transfer to
  such Buyer the number of shares referred to in such notice according to the
  terms of the Sale Notice (other than in circumstances set forth in Article
  29(g) above in which case the provisions of said Article 29(g) will apply).
  Upon the transfer to Buyer such shares must be free and clear of any liens or
  encumbrances unless otherwise specified in the Sale Notice. The Transferor
  and such Buyer shall each have all remedies for breach of contract available
  under applicable laws in connection with the transactions set forth in this
  Article 29.

	
 

	
 

	
 

	
 

	
(m)

	
Any Transfer
  of shares by any Offeree pursuant to the exercise of its co-sale rights under
  Article 29A shall not give the other Offerees additional rights of first
  refusal and shall be deemed to have been part of the Offered Shares and
  included in the Sale Notice to the extent that the number of the shares being
  Transferred has not changed as a result of the exercise of co-sale rights. To
  the extent such number has changed, the provisions hereof shall apply to the
  transaction again, ab initio, and the Transferor shall give a new Sale Notice
  hereunder.

	
 

	
 

	
 

	
29A

	
CO SALE

	
 

	
 

	
 

	
 

	
(a)

	
Should any
holder of Preferred Shares (other than Intel) or holder of Ordinary-Preferred
Shares (“Selling Shareholder”) wish to make a Transfer, other than to a
Permitted Transferee, then each of the holders of Preferred Shares and
Ordinary-Preferred Shares other than Intel (the “Entitled Shareholders”)
shall have the right to participate in the Selling Shareholder’s Transfer of
such Offered Shares, in accordance with this Article 29A, pursuant to the
specified terms and conditions’ stated in the Sales Notice, provided that an
Entitled Shareholder who is also an Offeree for purposes of Article 29 above
shall be entitled to effect whether to exercise its rights under either
Article 29 or Article 29A and shall not be entitled to contingently exercise
its rights under both such articles. Each of the Entitled Shareholders shall
be entitled upon written notice to the Selling Shareholder within twenty-one
(21) Business Days after receipt of the Sales Notice (“Participating Preferred
Shareholders”), to sell to the Transferee up to that number of the Shares in
the Company owned by such Participating Preferred Shareholder (the “Equity
Shares”) determined by multiplying the total number of Offered Shares times a
fraction the numerator of which is the number of Ordinary Shares owned by
such Participating Preferred Shareholders (on an as-converted basis) and the
denominator of which is the total number of Ordinary Shares owned by all
Participating Preferred Shareholders (on an as-converted basis) and the
Selling Shareholder. Such written notice shall indicate, subject to the terms
of this Article 29A, the number of Shares that the Participating Preferred
Shareholder intends to transfer to the Transferee. At the closing of the sale
of the Offered Shares to the Transferee, the Selling Shareholder shall
transfer his shares to the Transferee only if the Transferee concurrently
therewith purchases, on the same terms and conditions specified in the
Article 29A Notice, all of the Shares as to which participation notices have
been delivered.  

- 25 -

	
 

	
 

	
 

	
 

	
(b)

	
Notwithstanding
  the provisions of Article 29A(a), no Transfer in one transaction or in a
  series of related transactions, of shares representing more than 50% of the
  issued and outstanding shares of the Company (on an as converted basis) may
  be made, other than to a Permitted Transferee, unless the proposed Transferee
  of such shares offers to purchase the remaining issued and outstanding shares
  of the Company upon the same terms and conditions. In such event, the
  consideration payable by the Transferee shall be distributed among all
  selling shareholders participating in such Transfer in accordance with the
  terms of Article 8.

	
 

	
 

	
 

	
29B

	
BRING ALONG

	
 

	
 

	
 

	
 

	
(a)

	
At any time
  prior to the Company’s QIPO, in the event that:

	
 

	
 

	
 

	
 

	
 

	
Shareholders
holding 60% (sixty percent) or more (the “Threshold Percent”) of the
Company’s issued and Outstanding shares, on an as converted basis (the
“Proposing Shareholders”) accept an offer to affect a Merger or Acquisition (the
“Offer”); and  

	
 

	
 

	
 

	
 

	
 

	
Such Merger
or Acquisition is conditioned upon the consent and/or sale of all of the
remaining issued shares of the Company; then all remaining shareholders
(the “Non Proposing Shareholders”) will be required, if so demanded by the
Proposing Shareholders, to vote in favor of, execute the relevant documents,
and otherwise take all necessary and reasonable actions relating to such
Offer, including to sell their shares upon the same terms and conditions as
in the Offer made to the Proposing Shareholders and the proceeds shall be
allocated in accordance with the provisions of Article 8, provided however,
that absent the written consent of the holders of the majority of the
outstanding Series BB Preferred Shares (which must include also the Special
BB Consent), the holders of the Preferred Shares shall not be forced to take
any actions or sell their shares as aforesaid, if the Merger or the
Acquisition does not reflect a Company price per share of more than two times
the Original Issue Price of the Series BB-1 Preferred Shares. In the event
that the Threshold Percent is met, any safe, assignment, transfer, pledge,
hypothecation, mortgage, disposal or encumbrance of the Shares by the Non
Proposing Shareholders other than in connection with the Offer, shall be
absolutely prohibited. 

- 26 -

	
 

	
 

	
 

	
 

	
 

	
(b)

	
Any sale,
transfer or exchange of the shares or all or substantially all of the assets
of the Company pursuant to Article 29B(a) above which gives rise to a tax
liability of either of the Founders (any such transaction, a “Taxable
Transaction”) will be dealt with in one (1) of the following two (2) ways: 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
if the
Taxable Transaction is a bona fide transaction with a third party unrelated
to the Company or any of its directors or shareholders, the Taxable
Transaction shall be contingent, unless otherwise agreed by the Founders,
upon the Taxable Transaction’s including the receipt by each of the Founders
of (A) cash or liquid assets reasonably acceptable to the Founders, in either
case not subject to transfer prohibition and in an amount sufficient to pay
each Founder’s tax liability, if any, in connection with the Taxable
Transaction or (B) a loan as described in Article 29B(b)(2) below; or  

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
in any other
  event, such transaction shall be contingent, unless otherwise agreed by the
  Founders, upon the Taxable Transaction’s providing for a loan to each of the
  Founders in an amount sufficient to pay his tax liability, if any, in
  connection with the Taxable Transaction, such loan to be linked to the U.S.
  Dollar but without interest and repayable upon the sale of each Founder of
  the shares or other non-cash consideration received by him in the Taxable
  Transaction, and to be non-recourse other than in respect of such shares or
  other non-cash consideration received by the Founders in the Taxable
  Transaction.

	
 

	
 

	
 

	
 

	
 

	
(c)

	
Notwithstanding
  the foregoing, the obligation of Intel to sell its shares (the “Transaction”) pursuant to this Article
  29B shall be subject to the satisfaction of each of the following conditions:

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
Form of
  Consideration. Intel shall not be required to accept
  any consideration for its shares other than cash or freely tradeable equity
  securities (subject to a lock-up period of no more than 90 days following the
  issuance of such securities to Intel) which have been admitted to or listed
  upon (i) the Official List of the UK Listing Authority or (ii) the New York
  or American Stock Exchange or the NASDAQ National Market in the United States
  of America or (iii) the Neuer Markt or (iv) Euronext Paris S.A. or (v) such
  other stock exchange as Intel may agree.

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
Equal
  Consideration. Subject to section (iii) below, upon
  the consummation of the Transaction, all of the holders of Preferred Shares
  will receive the same form and amount of consideration per Preferred Share,
  respectively, taking into account any liquidation preference to which the
  holders of Preferred Shares are entitled, and if any holders of Preferred
  Shares arc; given an option as to the form and amount of consideration to be
  received, all holders will be given the same option.

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
Costs/Expenses.
  Intel shall not be required to incur any costs or expenses (without
  limitation whether by way of out of pocket expenses or by way of set off) in
  connection with the Transaction except its pro rata share of any costs
  incurred for the benefit of all of the Company’s shareholders and for which
  Intel has agreed in writing to be responsible in advance of such costs being
  incurred. For the avoidance of doubt Intel shall be solely responsible for
  any costs that it decides to incur including the costs of its own counsel.

- 27 -

	
 

	
 

	
 

	
 

	
 

	
 

	
(iv)

	
Representations,
Warranties and Indemnities. The only
representations, warranties or indemnities that Intel shall be required to
make in connection with the Transaction are representations, warranties and
indemnities concerning (i) legal ownership of the Company’s securities to be
sold by Intel (the “Intel Securities”), and (ii) the corporate authority of
Intel to convey title to the Intel Securities, and the ability to do so free
and clear of liens, encumbrances or adverse claims (the “Intel Required
Obligations”). The Intel Required Obligations shall be in the same form as
these to be given by each of the other shareholders of the Company and shall
be given by Intel on a several (but not joint) basis only.  

	
 

	
 

	
 

	
 

	
 

	
 

	
(v)

	
Liability.
  Intel shall not accept, assume or be deemed to have assumed any joint, or
  joint and several, liability with any other shareholder(s), the Company or any
  other party, with respect to any representation, warranty, indemnity,
  covenant or combination thereof made by such other shareholder(s), the
  Company or other party in connection with the Transaction. Intel’s liability
  shall in any event be limited to the amount of consideration actually
  received by Intel in cleared funds.

	
 

	
 

	
 

	
 

	
 

	
 

	
(vi)

	
Escrow and
Liability upon Escrow. In the event that
consideration for any of the shares in the Company is to be placed in escrow
(the “Escrow Amount”), such Escrow Amount will not exceed 15% of the total
consideration payable to all shareholders of the Company and that the Escrow
Amount, to the extent that no claim has been made against it and for such
amount as might remain following such claim, will be released to the shareholders
at the latest three (3) months following the end of the acquiring company’s
first accounting period after the consummation of the transfer of Intel’s
shares or eighteen (18) months after the consummation of such transfer (the
later of the two). Intel’s liability shall be limited to its pro rata share
of the Escrow Amount (Intel’s pro rata share to be calculated on the basis of
the consideration due to Intel as a proportion of the aggregate consideration
due to all shareholders in the Company). For the avoidance of doubt, the
Escrow Amount may be used to satisfy claims arising out of breaches by the
Company of representations and warranties given by the Company in connection
with a Transaction, all subject to the foregoing terms and conditions. 

	
 

	
 

	
 

	
 

	
 

	
 

	
(vii)

	
US
Securities. If the consideration proposed for Intel’s shares is in the form
of securities of an issuer incorporated in the United States, Intel shall not
be obligated to participate in the Transaction unless it is provided an
opinion of counsel to the effect, that the sale in connection with such
Transaction is not in violation of the registration or qualification
requirements of federal or applicable state securities laws in the United
States, or, if Intel is not provided with such an opinion, the Company shall
indemnify Intel for any violation. 

- 28 -

	
 

	
 

	
 

	
 

	
 

	
 

	
(vii)

	
Other
Agreements. Intel shall not be required to amend, extend or terminate any
contractual or other relationship with the Company, the acquirer or their
respective affiliates. 

	
 

	
 

	
 

	
(viii)

	
Covenant Not
to Compete. Intel shall not be required to agree to any covenants including
without limitation any covenant not to compete or any covenant not to
solicit any of the customers, employees or suppliers of any party to the
Transaction. 

	
 

	
 

	
 

	
 

	
 

	
 

	
Furthermore,
notwithstanding the foregoing, the obligation of Orbotech to sell its shares
(the “Orbotech Transaction”) pursuant to this Article 29B shall be subject to
the condition that the only representations, warranties or indemnities that
Orbotech shall be required to make in connection with the Orbotech
Transaction are representations, warranties and indemnities concerning (i)
legal ownership of the Company’s securities to be sold by Orbotech (the
“Orbotech Securities”), and (ii) the corporate authority of Orbotech to
convey title to the Orbotech Securities, and the ability to do so free and
clear of liens, encumbrances or adverse claims (the “Orbotech Required
Obligations”). The Orbotech Required Obligations shall be in the same form as
those to be given by each of the other shareholders of the Company and shall
be given by Orbotech on a several (but not joint) basis only.  

	
 

	
 

	
 

	
29C.

	
NO SALE

	
 

	
 

	
(a)

	
Until the
close of business on December 31, 2005, subject to Articles 29C(b) and (c)
below and Article 29D below, neither Founder shall make any transfer,
assignment, pledge, or other disposal (a “Disposition”) of the issued and
outstanding share capital of the Company held by him upon execution of the
Star Agreement, and any shares of the Company hereafter acquired by any such
Founder as a result of this holding of such shares (collectively referred to
as the: “Limited Shares”), either directly or indirectly.  

	
 

	
 

	
(b)

	
Notwithstanding
the above, in the event that the Company’s IPO has not occurred prior to the
expiration of eighteen months following the execution of the Star Agreement,
(the “Initial Period”) then during each year commencing upon the expiration
of the Initial Period, each Founder shall be entitled to make a Disposition
of Limited Shares representing up to an aggregate of ten percent (10%) of the
Limited Shares held by such Founder (the “10% Allowance”), provided however
that prior to the IPO, the aggregate of such Dispositions shall be not more
than twenty five percent (25%) of the Limited Shares in the aggregate. Any
10% Allowance not sold by a Founder during any one year may be accumulated by
such Founder in respect of the following year or years.  

	
 

	
 

	
(c)

	
The
  restrictions set forth in this Article 29C shall expire upon and in
  connection with the IPO or on the close of business on December 31, 2005, the
  earlier of the two. Nothing in this Article shall have any effect upon the
  requirement to offer any shares sold as part of the 10% Allowance to the
  Offerees as set forth in Article 29 or to receive the consent of the Board of
  Directors to the transfer of any shares to a competitor of the Company (which
  may be obtained prior to or after offering the shares to the other
  shareholders) or upon its authority to refuse to consent to the share
  transfer.

- 29 -

	
 

	
 

	
29D.

	
SALE OF
  SHARES BY THE FOUNDERS

	
 

	
 

	
 

	
Anything to
  the contrary herein notwithstanding, the sale of shares by the Founders
  pursuant to the Share Transfer Agreement shall not be subject to the
  restrictions on transfer set forth in Articles 29 (“Right of First Refusal”),
  29A (“Co Sale”) or 29C (“No Sale”).

	
 

	
 

	
29E.

	
STAND STILL

	
 

	
 

	
 

	
Notwithstanding
  anything to the contrary in these Articles, any issuance of securities by the
  Company, and any sale, transfer, pledge, encumbrance or other disposal of any
  of the securities of the Company (by the Company or any shareholder), or any
  other action (including repurchase of any shares of the Company by the
  Company or by any subsidiary thereof), other than any action in which the
  provisions of Article 29B (Bring Along) shall apply, which results in a
  Strategic Investor (as defined below) whether or not a shareholder of the
  Company, holding (together with affiliates, Permitted Transferees, or other
  parties acting in concert with it) more than 20% of the voting rights in the
  Company, is prohibited unless approved in writing in advance by the Majority
  Preferred Shareholders (excluding, for the purposes of such majority, any
  Strategic Investors and their affiliates and Permitted Transferees or other
  parties acting in concert with them) and on terms and conditions approved by
  them. Any of the transactions set forth in the forgoing sentence not so
  approved shall be null and void and shall not be registered in the Company’s
  Shareholders Register. For purpose hereof a “Strategic Investor” shall mean a
  corporation or other business entity whose business is related to the
  Company’s business and, who is likely to have a business or technologic
  interest in the Company’s business, as distinguished from an interest for the
  sole purpose of financial investment.

	
 

	
 

	
CALLS

	
 

	
30.

	
A
  shareholder shall not be entitled to receive dividends nor to use any right a
  shareholder has, or receive any benefit or entitlement stated in these
  Articles (including without limitation, the rights set forth in Articles 7,
  8, 11, 12, 14, 29, 29A, 65 and 86 hereof), unless he has paid all the calls
  that shall be made from time to time prior to or on the date appointed for
  payment thereof, with respect of money unpaid on all of his shares, whether
  he is the sole holder or holds the shares together with another person, in
  addition to interest and expenses if there shall be any.

	
 

	
 

	
31.

	
The Board
  may, subject to the provisions of these Articles, make calls upon the
  shareholders from time to time in respect of any moneys unpaid on their
  shares, as they shall determine proper, upon the condition that there shall
  be given prior notice of fourteen (14) days on every call and each
  shareholder shall be obligated to pay the total amount requested from him, or
  the installment on account of the call (if there shall so be) at the times
  and places to be determined by the Board.

	
 

	
 

	
32.

	
The calls
  for payment shall be deemed to have been requested from the date the Board
  shall have decided upon the calls for payment.

- 30 -

	
 

	
 

	
33.

	
The joint holders of a share shall be jointly and
  severally liable to pay the calls for payment in full and the installment on account, in connection with such
  calls.

	
 

	
 

	
34.

	
If a sum called in respect of a
  share is not paid the holders of the share or the person to whom it has been issued shall be liable to pay
  interest and linkage differentials upon the amount of the call or the payments on account, as determined by the
  Board of Directors commencing from the day appointed for the payment
  thereof to the time of actual payment, but
  the Board shall be at liberty to waiver payment of that interest, wholly or
  in part.

	
 

	
 

	
35.

	
Any amount that according to
  the condition of issuance of a share must be paid at the time of issuance
  or at a fixed date, whether on account of the sum of the share or premium,
  shall be deemed for the purposes of these
  Articles to be a call of payment that was made duly and the date of payment
  shall be the date appointed for payment. In the event of non-payment of this amount all of the Articles herein dealing with
  payment of interest, expenses, forfeiture, pledge and the like and all
  the other Articles connected therewith, shall apply, as if this sum had been duly requested and notice had been
  given, as aforesaid.

	
 

	
 

	
36.

	
The Board may make arrangements at the time of issue
  of shares for a difference between the holders with respect to the amount of
  calls to be paid and the times of payment, and the rate of interest.

	
 

	
 

	
37.

	
The Board may, if it thinks
  fit, receive from any shareholder willing to pay in advance all of the monies or a part thereof that shall be due on
  account of his shares, in addition to any amounts of a part thereof that shall be due on account of his shares,
  in addition to any amounts that the payment in fact has been requested
  and they shall be permitted to pay him interest
  at the rate the Board and shareholders shall agree upon, for the amounts paid
  in advance as aforesaid, or upon the
  part thereof which is in excess of the amounts whose payment was at the time requested on account of
  his shares in connection with which the payments have been made in
  advance, in addition to paying dividends that will be paid for that part of the share which has been paid in
  advance. The Board of Directors may at any time repay any amount so advanced without premium or penalty by giving
  such shareholder seven days’ prior
  notice in writing. Nothing in this Article 37 shall derogate from the right
  of the Board of Directors to make any call before or after receipt by the
  Company of any such advance.

	
 

	
 

	
FORFEITURE OF SHARES

	
 

	
 

	
38.

	
If a shareholder fails to pay
  any call or installment of a call on the day appointed for payment thereof, the Board may, at any time thereafter
  during such time as any part of such call or installment remains unpaid, serve a notice on him requiring payment of
  so much of the call or installment
  as is unpaid, together with any interest which may have accrued and any expenses that were incurred as a result of such
  non-payment.

	
 

	
 

	
39.

	
The notice shall name a further day, not earlier than the
  expiration of seven days from the date of the notice, on or before
  which the amount of the call or installment or a part thereof is to be made together with interest and any
  expenses incurred as a result of such nonpayment. The notice shall also state the place the payment is to be
  made and that in the event of
  non-payment, at or before the time appointed, the shares in respect of which
  the call was made will be liable to be forfeited.

- 31 -

	
 

	
 

	
 

	
40.

	
If the requirements of any such
  notice as aforesaid are not complied with, any share in respect of
  which the notice has been given may at any time thereafter, before the
  payment required by the notice has been
  made, be forfeited by a resolution of the Board to that effect. In such event, the provisions of Section 181 of
  the Companies Law shall apply, and the shares so forfeited shall be “dormant shares” as provided for therein.
  The forfeiture shall include those
  dividends that were declared but not yet distributed, with respect to the forfeited shares.

	
 

	
 

	
 

	
41.

	
A share so forfeited-shall be deemed to be the
  property of the Company and can be sold or otherwise disposed of, on such
  terms and in such manner as the Board thinks fit, subject to applicable law. Such shares shall not be deemed,
  for the purposes of the Articles, to comprise
  part of the issued and outstanding share capital of the Company, and shall be
  disregarded for the purposes of
  calculations based thereon. At any time before a sale or disposition the forfeiture may be canceled on
  such terms as the Board thinks fit.

	
 

	
 

	
 

	
42.

	
A person whose shares have been forfeited shall
  cease to be a shareholder in respect of the forfeited shares, but shall
  notwithstanding remain liable to pay to the Company all monies which, at the date of forfeiture, were
  presently payable by him to the Company in respect of the shares, but
  his liability shall cease if and when the Company receives payment in full of
  all moneys that, at the date of forfeiture, were presently payable by him to
  the Company in respect of the shares
  (including interest and expenses).

	
 

	
 

	
 

	
43.

	
Without derogating from Article
  30 above, the forfeiture of a share shall cause, at the time of forfeiture,
  the cancellation of all rights in the Company or any claim or demand against
  it with respect to that share and the other rights and obligations between
  the share owner and the Company
  accompanying the share, except for those rights and obligations not included
  in such a cancellation according to
  these Articles or that the Companies Law imposes upon former shareholders. 

	
 

	
 

	
 

	
44.

	
The provisions of these Articles as to forfeiture
  shall apply in the case of non-payment of any
  sum which, by the terms of issue of a share, becomes payable at a fixed-time,
  whether on account of the nominal
  value amount of the share, or by way of premium, as if the same had been
  payable by virtue of a call duly made and notified.

	
 

	
 

	
 

	
MODIFICATION OF CAPITAL

	
 

	
 

	
 

	
45.

	
Subject to the provisions of Article 12 above and to
  any applicable law, the Company may, from
  lime to time, by resolution duly adopted according to these Articles:

	
 

	
 

	
 

	
 

	
(a)

	
consolidate and divide all or any of its issued or
  unissued share capital into shares of larger
  nominal value than its existing shares;

	
 

	
 

	
 

	
 

	
(b)

	
cancel any shares which have
  not been taken or agreed to be taken by any person;

	
 

	
 

	
 

	
 

	
(c)

	
by subdivision of its existing shares, or any of
  them, divide the whole, or any part, of its share capital into shares of
  smaller amounts than is fixed by the Memorandum of Association in a manner that with respect to the shares created as a
  result of the division it will be
  possible within the resolution of division to grant to one or more shares a preferable right or advantage with
  respect to dividend, capital, voting or otherwise over the remaining share or other similar shares;

- 32 -

	
 

	
 

	
 

	
 

	
(d)

	
reduce its share capital and any fund reserved for
  capital redemption in the manner that it
  shall deem to be correct.

	
 

	
 

	
INCREASE OF SHARE CAPITAL

	
 

	
 

	
46.

	
Subject to the provisions of Article 12 above and to
  any applicable law, the Company shall be
  permitted from time to time, by resolution duly adopted according to these
  Articles, to increase its share capital - whether or not all its shares have
  been issued, or whether the shares
  issued have been paid in full - by creation of new shares. This new capital
  shall be in such an amount, divided into shares in such amounts and
  have such preferable or deferred or other special rights (subject always to
  the special rights conferred upon an existing class of share), subject to any
  condition and restrictions with respect to dividends, return of capital, voting or otherwise, all as shall be directed by
  the general meeting in its resolution sanctioning the increase of the share capital.

	
 

	
 

	
47.

	
Subject to any decision to the
  contrary in the resolution sanctioning the increase in share capital,
  pursuant to these Articles, the new share capital shall be deemed to be part
  of the original share capital of
  the Company and shall be subject to the same provisions with reference
  to payment of calls, liens, title, forfeiture, transfer and otherwise as
  apply to the original share capital.

	
 

	
 

	
GENERAL MEETINGS

	
 

	
 

	
48.

	
A general meeting shall be held once in every
  calendar year at such time, being not more than
  fifteen months after the holding of the last preceding general meeting, and
  place as may be prescribed by the Board. The above mentioned general
  meetings shall be called “Annual General Meetings”. All other general
  meetings shall be called “Special General Meetings”.

	
 

	
 

	
49.

	
Subject to the provisions of
  these Articles the function of the Annual General Meeting shall be to receive and to deliberate with respect to
  the profit and loss statement, the balance sheets, the ordinary
  reports and accounts of the Board and auditors; to declare dividends, to appoint auditors and to fix their salaries.
  Every other matter shall be deemed to be special and shall be discussed at a Special General
  Meeting.

	
 

	
 

	
50.

	
The directors or anyone of them
  may, whenever they think fit, and upon a requisition in writing as
  provided for in the Companies Law, convene a Special General Meeting. Every
  such requisition shall include the objects for which a meeting should be
  convened, shall be signed by the
  requisitioners and shall be sent to the registered. Office of the Company. If
  the Board of Directors does not
  convene a meeting within 21 days from the date of the submission of
  the requisition as aforesaid, the requisitioners may convene by themselves a meeting. However, the meeting which was so convened
  shall not be held after three months have passed since the date of the
  submission of the requisition.

- 33 -

NOTICE OF GENERAL MEETINGS

	
 

	
 

	
51.

	
A prior notice of 14 days at least shall be sufficient for any general
  meeting, including any meeting at which it
  is being proposed to amend the Memorandum of Association and/or Articles
  of Association and, accordingly, prior notice of at least 14 days shall be
  given with. respect to the place, date and
  hour of the meeting, and in the event that a special matter shall be
  discussed, a general description of the nature of that matter. The notice
  shall be given, as herein below provided for, to the shareholders
  entitled pursuant to these Articles to vote at the meeting. The notice shall
  be sufficient for any meeting of shareholders including a meeting at which it
  is proposed to amend the Memorandum of Association and/or Articles of
  Association. If, by chance, a notice as aforesaid was not given or not
  received by a shareholder, this shall not
  amount to a disqualification of the resolution passed or disqualification of
  the proceedings held at that meeting. With the consent of all the shareholders who are entitled, at that time, to
  vote, it shall be permitted to convene all meetings and to resolve all
  types of resolutions, upon a shorter advance notice or without any notice and in such manner, generally, as
  such be approved by the shareholders.

	
 

	
 

	
QUORUM

	
 

	
 

	
52.

	
No deliberation shall be
  commenced with respect to any matter at the general or special meeting unless there shall be present a quorum at
  the time when the general meeting proceeds
  to deliberate. In any meeting a quorum shall be formed. when there are
  present personally or by proxy not
  less than two shareholders who hold or represent together the majority
  of the voting rights of the issued share capital of the Company, providing
  that one of such two shareholders present
  shall be a holder of Preferred Share(s) of the Company.

	
 

	
 

	
53.

	
If within half an hour from the time appointed for
  the meeting a quorum is not present, the meeting, if convened by the Board
  upon the demand of shareholders or upon the demand of less than 50% of the directors then in office or directly by such
  shareholders or directors, shall be
  cancelled. Otherwise, if within half an hour from the time appointed for the
  meeting a quorum is not present, the meeting shall stand adjourned to the
  same day in the next week at the same place and time, or any other day
  and/or any other hour and/or any other place as the Board shall notify the shareholders, and, if at the second meeting
  a quorum is not present, within
  half an hour from the time appointed for the meeting any two shareholders
  present personally or by proxy
  shall be a quorum, and shall be entitled to deliberate and to resolve in respect
  of the matters for which the meeting was convened. Shareholders may
  participate by means of conference telephone or similar communications
  equipment by means of which all persons participating in the meeting can hear
  each other, and such participation in a meeting. shall constitute attendance in person at the meeting. The secretary of
  the meeting shall confirm
  attendance by telephone to the Chairman.

	
 

	
 

	
CHAIRMAN

	
 

	
 

	
54.

	
The Chairman of the Board of
  Directors shall preside as chairman at all general meetings. If there
  is no Chairman or he is not present within 15 minutes from the time appointed
  for the meeting or if he shall refuse to
  preside at the meeting, the shareholders present shall elect one of the directors to act as Chairman, and if
  only one director is present he shall act as Chairman, If no directors are present or if they all refuse to preside
  at the meeting the shareholders
  present shall elect one of the shareholders present to preside at the
  meeting. The Chairman shall have no
  special rights or privileges and no second or casting vote.

	
 

	
 

	
POWER TO ADJOURN

	
 

	
 

	
55.

	
The Chairman may, with the
  consent of any meeting at which a quorum is present, and shall if so directed by the meeting, adjourn the
  meeting from time to time and from place to place, as the meeting
  shall decide. At an adjourned meeting no matters shall be discussed except for those permissible to be discussed at that
  meeting which decided upon the adjournment.

- 34 -

	
 

	
 

	
ADOPTION OF RESOLUTIONS

	
 

	
 

	
56.

	
At every meeting a resolution
  put to the vote of the meeting shall be decided upon by a show of hands, unless before or upon the declaration
  of the result of the show of hands a secret ballot in writing be demanded by the Chairman (if he is entitled to
  vote) or by any shareholder present, in person or by proxy, and
  entitled to vote at the meeting. Except if a secret vote is demanded as aforesaid, the declaration of the Chairman
  that the resolution has been carried or carried unanimously or by a
  particular majority, or lost, or not carried by a particular majority, shall be final, and an entry to that effect in
  the minute book of the Company,
  shall be conclusive evidence of the fact without the necessity of proving the
  number or proportion of the votes recorded in favor or against such a
  resolution. Subject to any provision in
  this regard in the Companies Law, or in these Articles, all resolutions of
  the shareholders including without
  limitation with respect to a merger, a change of the Company’s name, modification or alterations of
  the Company’s share capital and the amendment
  of the Company’s Memorandum of Association in accordance with such resolution and the amendment or replacement of
  the Company’s Articles of Association shall be deemed adopted at a General Meeting at which a quorum is
  present if approved by a simple
  majority of the voting rights of the Company represented personally or by
  proxy and voting thereon.

	
 

	
 

	
57.

	
If a secret Ballot is duly
  demanded, it shall be taken in such manner as the Chairman directs, whether immediately or after an adjournment or
  in a postponed manner or otherwise, and the results of the ballot shall be deemed to be a resolution of the meeting
  wherein the secret ballot was
  demanded. Those requesting a secret ballot can withdraw their request at any time before the secret ballot is held. A secret
  ballot demanded on the election of a Chairman, or on a question of
  adjournment shall be taken forthwith. A secret ballot demanded on any
  other question shall be taken at such time as the Chairman of the meeting
  directs. A demand for a secret ballot shall not prevent the continuation of
  the meeting with respect to the
  transaction of any other business, except for the manner with respect to
  which the secret ballot was
  demanded. All demands or notices hereunder may be submitted by facsimile.

	
 

	
 

	
VOTES OF SHAREHOLDERS

	
 

	
 

	
58.

	
Subject to and without
  derogating from the right or preference rights: or restrictions existing at
  that time with respect to a certain class of shares forming of the capital of
  the Company, each shareholder present at a
  meeting, personally or by proxy, shall be entitled, whether at a vote
  by show of hands or by secret ballot, to one vote for each Ordinary Share
  held by him calculated, with respect to
  the Preferred Shares and Ordinary-Preferred Shares, on an as- converted basis, provided that no shareholder
  shall be permitted to vote any shares at a general meeting or appoint a proxy’ to vote therein except if he has
  paid all calls for payment prior to
  or on the day appointed for payment thereof and all monies due: of the
  Company from him prior to or on the
  ‘day appointed for payment thereof with respect to such shares.

- 35 -

	
 

	
 

	
 

	
59.

	
In the case of joint holders
  the vote of the senior who tenders a vote, whether in person or by proxy,
  shall be accepted to the exclusion of the votes of the other joint holders;
  and for the purpose of this article
  seniority shall be determined by the order in which the names stand in the
  register of shareholders. Joint holders of a share of which one of them is
  present at a meeting shall not vote by proxy. The appointment of a proxy to
  vote on behalf of a share held by joint
  holders shall be executed by the signature of the senior of the joint
  holders.

	
 

	
 

	
 

	
60.

	
PROXIES

	
 

	
 

	
 

	
 

	
(a)

	
In every vote a shareholder
  shall be entitled to vote either personally or by proxy. A proxy
  present at a meeting shall also be entitled to request a secret ballot. A
  proxy need not be a shareholder of the
  Company.

	
 

	
 

	
 

	
 

	
(b)

	
A shareholder of the Company
  that is a corporation or partnership shall be entitled by decision of its Board of Directors or by a
  decision of a person or other duly authorized body, to appoint a
  person who it shall deem fit to be its representative at every meeting of the
  Company. The representative, appointed as aforesaid,
  shall be entitled to perform on behalf of the corporation he represents all
  the powers that the corporation itself may
  use just as if it was a person.

	
 

	
 

	
 

	
61.

	
(a)

	
A vote pursuant to an instruction appointing a proxy
  shall be valid notwithstanding the death
  of the appointor or the appointor becoming of unsound mind or the cancellation of the proxy or its expiration in
  accordance with any law, or the transfer of the shares with respect to
  which the proxy was given, unless a notice in writing was given of the death, becoming of unsound mind, cancellation or
  transfer and was received at the Office before the meeting took place.

	
 

	
 

	
 

	
 

	
(b)

	
A shareholder is entitled to
  vote by a separate proxy with respect to each share held by him provided that
  each proxy as aforesaid shall have a separate letter of appointment
  containing, the serial number of the shares with respect to which the proxy
  is entitled to vote. If a specific share is included by the holder in more
  than one letter of appointment, that share shall not entitle any of the
  holders of such instrument to a vote.

	
 

	
 

	
 

	
INSTRUMENT OF APPOINTMENT

	
 

	
 

	
 

	
62.

	
A letter of appointment of a proxy or power of
  attorney or other certificate (if there shall be such) pursuant to which the
  appointee is acting, shall be in writing and such instrument or a copy
  thereof shall be deposited in the Office, or in another place in Israel of
  abroad - as the Board shall direct from
  time to time generally or with respect to a particular case, no later than upon the commencement of the meeting or
  adjourned meeting wherein the person referred to in the instrument is
  appointed to vote, otherwise that person shall not be entitled to vote that
  share. An instrument appointing a proxy and which is not limited in time or
  by the occurrence of an event (such as an IPO) shall not be valid 12 months
  after the date of its execution. If the
  appointment shall be for a limited period or until the occurrence of an event
  (such as an IPO), the instrument shall be valid for the period or until the
  occurrence of the event contained therein.

	
 

	
 

	
 

	
63.

	
An instrument appointing a proxy (whether for a
  specific meeting or otherwise) may be in the
  following form or in any other similar form which the circumstances shall
  permit:

- 36 -

	
 

	
“I, ___________, of ___________, a shareholder holding shares
in ___________ and entitled
  to ___________ votes hereby appoint
  ___________, of ___________, or in his place ___________, of
  ___________, to vote in my name and in my place at the general meeting (annual, special, adjourned - as
  the case maybe) of the Company to be held on the ___________ day
  of ___________, 2 ___________
  and at any adjournment thereof.

	
 

	
In witness whereof, I have
  hereby affixed my signature the ___________
  day of ___________, 2 ___________.

	
 

	

	
 

	
Appointor’s Signature

	
 

	
 

	
 

	
 

	
64.

	
RESERVED

	
 

	
 

	
 

	
 

	
65.

	
DIRECTORS

	
 

	
 

	
 

	
 

	
 

	
(a)

	
The Board of Directors shall
  consist of up to nine (9)
  members who shall be appointed as
  follows:

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
the Founders shall be entitled
  to appoint one (1) director until such time as the Founders, together, cease to hold 7% or more of the issued and outstanding share
capital of the Company on an
  as-converted basis, after which
  they will no longer have the right to appoint a director. However, notwithstanding the previous sentence, during the
  18 month period commencing upon
  the closing of the Poalim Agreement, such right to appoint one director shall continue to apply even if
  their aggregate holdings fall below 7% as aforesaid, until such time
  as the Founders, together, cease to hold 5% or
  more of the issued and outstanding share capital of the Company on an as-converted basis after which they will no longer
  have the right to appoint a director. In the event the Founders will
  no longer be entitled to appoint a director,
  the directorship which is vacated shall thereafter be held by another independent industry expert to be appointed by a
  majority of the other directors
  appointed pursuant to Articles 65(a)(2)-(3) below, such that two directors
  who are independent industry experts may thereafter serve on the Board of Directors;

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
each of Pitango, Star, Genesis and Orbotech shall be
  entitled to appoint one (1) director to the Board of Directors of the Company
  for so long as it holds Preferred Shares
  constituting more than 5% of the issued and outstanding share capital of the Company, on an as converted
  basis, and thereafter the directorship which was vacated shall be held
  by a director appointed by the holders of
  the majority of the Series AA Preferred Shares not otherwise entitled to appoint a director pursuant to this
  Article 65(a)(2);

	
 

	
 

	
 

	
 

	
 

	
 

	
(3)

	
each of Poalim Ventures and Wellington shall be
  entitled to appoint one (1) director for so long as it holds Preferred Shares
  constituting more than 3% of the issued and outstanding share capital of the
  Company, on an as converted basis and
  thereafter the directorship which was vacated shall be held by a director
  appointed by the holders of the majority of the Series BB Preferred Shares;

- 37 -

	
 

	
 

	
 

	
 

	
 

	
 

	
(4)

	
the majority of the other directors appointed
  pursuant to Articles 65(a)(l)-(3) above
  shall be entitled to appoint one (1) director, who shall be an independent industry expert; and

	
 

	
 

	
 

	
 

	
 

	
 

	
(5)

	
the Chief Executive Officer
(“CEO”) of the Company shall be a director if he or she is appointed as a director by a majority
of the directors appointed pursuant
to Articles 65(a)(l)-(3) above; 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
Observers to the Board of
  Directors shall be entitled to attend all Board of Directors meetings and in this capacity, to receive all
  notices of meetings and any documentation the Company provides to the
  Company’s directors before, during or after such meetings, subject to
  restrictions relating to attorney-client privilege, and shall be subject
  (other than an observer appointed by Intel) to the same fiduciary duties that apply to members of the Board of
  Directors.

	
 

	
 

	
 

	
 

	
 

	
(d)

	
The provisions of this Article
  65 shall be in force until the QIPO.

	
 

	
 

	
 

	
 

	
66.

	
(a)

	
The directors and observers shall be appointed as
  set forth in Article 65 and may be removed
  and vacancies filled by those entitled to appoint, as specified in Article
  65. Notice of appointment or removal shall become effective on the
  date fixed in the notice of appointment or
  removal, or upon delivery thereof to the Company, whichever is later. For avoidance of doubt, in
  the event that a seat of the Board of Directors is vacated, and no one is entitled to replace such vacated
  seat, then such vacated seat shall remain vacant and the number of
  directors shall be reduced accordingly.

	
 

	
 

	
 

	
 

	
 

	
(b)

	
If the office of any member of
  the Board of Directors is vacated, the other members of the Board of
  Directors may act in every way and manner so long as their number does not fall below two, at least one of which
  was appointed by the holders of the Preferred Shares. If their number
  falls below two, or if there are only two directors but none of them were appointed by the holder of the Preferred Shares,
  they may act only in an emergency, for convening General Meetings and
  for providing written notice to those shareholders or groups of shareholders
  who are entitled to fill the vacancies, of such vacancies. In the event that
  within 10 days following mailing of such
  written notices the vacancies are not filled, the directors in office,
  whatever their number or by whom
  appointed, may act in every way and manner.

	
 

	
 

	
 

	
 

	
67.

	
Subject to the provisions of
  these Articles or to the provisions of an existing contract, the tenure of office or the director shall
  automatically be terminated:

	
 

	
 

	
 

	
 

	
 

	
(1)

	
if he
  becomes bankrupt;

	
 

	
 

	
 

	
 

	
 

	
(2)

	
if he is declared lunatic or
  becomes of unsound mind;

	
 

	
 

	
 

	
 

	
 

	
(3)

	
if he has resigned by an
  instrument in writing to the Company;

	
 

	
 

	
 

	
 

	
 

	
(4)

	
if he is removed from office
  pursuant to Articles 65 and 66 above;

- 38 -

	
 

	
 

	
 

	
 

	
(5)

	
with his death;

	
 

	
 

	
 

	
 

	
(6)

	
if he is the CEO, upon
  termination of his position as CEO (or earlier, if removed pursuant to Articles 65 and 66 above, as
  aforesaid); or

	
 

	
 

	
 

	
 

	
(7)

	
if a company, with its
  liquidation.

	
 

	
 

	
 

	
68.

	
ALTERNATIVE DIRECTOR

	
 

	
 

	
 

	
 

	
(a)

	
Any person who is qualified to be appointed as a
Director may serve as a substitute director even if he is a member of the
Board of Directors or a substitute Director, (hereinafter “substitute”). 

	
 

	
 

	
 

	
 

	
(b)

	
A substitute shall have one
  vote.

	
 

	
 

	
 

	
 

	
(c)

	
A substitute shall have, subject to the provisions
  of the instrument by which he was appointed, all the powers and authorities
  that the director for which he is serving as director, has.

	
 

	
 

	
 

	
 

	
(d)

	
The provision of this Article
  with respect to the appointment of a director shall apply with respect to an
  appointment of a substitute.

	
 

	
 

	
 

	
 

	
(e)

	
The office of a substitute
  director shall be automatically vacated if his appointment is terminated
  by the director who appointed him in accordance with these regulations, or upon the occurrence of one of the events
  described in Articles (1), (2), (3), (5), (6) or (7) of Article 67 or, if the office of the member of the Board of
  Directors with respect to whom he
  serves as a substitute shall be vacated for any reason whatsoever.

	
 

	
 

	
 

	
 

	
(f)

	
The substitute director has the
  right to receive notice of convening *** a Board of Directors meeting and
  may participate or vote at such meeting only if the director appointing said substitute is absent from said
  meeting.

	
 

	
 

	
 

	
69.

	
REMUNERATION OF DIRECTOR

	
 

	
 

	
 

	
 

	
Members of the Board of
  Directors, not being employees of the Company or professionals providing
  special professional services for consideration to its members - shall not
  receive a salary from funds of the Company unless the general meeting
  has so decided and in the amount that the
  general meeting shall decide upon. The directors, and their substitutes,
  shall be entitled to receive expenses, in an acceptable rate, for travel
  expenses, board and lodging that have been expended for or during the
  performance of their duties as directors, and including travel expenses to the Board meetings and return. If
  pursuant to a decision of the Board, one of the directors shall
  perform services or tasks aside from his regular duties as a director, whether as a result of his particular
  profession or by a trip or stay abroad or otherwise, the Board may decide to
  pay him a preferred wage in addition to his regular salary, and such a
  wage shall be paid by way of salary, commission, participation in profits or otherwise and this wage shall be in addition
  to his regular salary, If there shall be any, or will be in place thereof, as
  shall be decided.

- 39 -

	
 

	
 

	
 

	
70.

	
POWER AND DUTIES

	
 

	
 

	
 

	
 

	
The management of the business
  of the Company shall be vested in the Board of Directors. They shall be entitled
  to exercise all the powers and authorities that the Company has and to perform
  in its name all the acts that it is entitled to do according to its
  memorandum of association and/or Articles and/or the. Companies Law except
  for those which are pursuant to the
  Companies Law or the Articles vested in the general meeting of the Company,
  subject to any provisions in the Companies Law or in these Articles or
  the regulations that the Company shall
  adopt in its general meeting (insofar as they do not contradict the Companies
  Law or these Articles). However any
  article adopted by the Company in its general meeting shall not affect
  the legality of any prior act of the Board that would be legal and valid, if
  not for such an article.

	
 

	
 

	
 

	
71.

	
A director shall not be
  required to hold qualifying shares.

	
 

	
 

	
 

	
CONFLICT OF INTEREST

	
 

	
 

	
 

	
72.

	
A director shall not be
  prohibited from fulfilling his rights and duties under these Articles or from
  entering into contracts with the Company whether as a seller, buyer or
  otherwise, and no such contract or
  arrangement which shall be made on behalf of the Company or in its name wherein the director is or will be an
  interested party, either directly or indirectly, shall be void provided,
  however that:

	
 

	
 

	
 

	
 

	
(a)

	
any transaction between a director and the Company
  must be approved both by the Board of
  Directors and the Audit Committee of the Company, or, if no Audit Committee has been created, by the General
  Meeting;

	
 

	
 

	
 

	
 

	
(b)

	
the interested director may not
  participate or vote at the Board of Directors at which approval is sought unless all other directors
  are interested directors, but shall be counted toward the *** necessary for commencing deliberations at
  such meeting; and

	
 

	
 

	
 

	
 

	
(c)

	
the interested director must, in addition to disclosing
  the substance of his interest in the
  transaction for which approval is sought, also disclose any material facts
  and documents relating thereto. The
  provisions of this article shall apply also to a substitute or alternate director, if it is
  appropriate.

	
 

	
 

	
 

	
73.

	
A director may hold another paid
  position or function in the Company or in any other company that the
  Company is a shareholder of or that it has some other interest in, together with his position as a director (except an
  auditor) upon those conditions with respect to salary and other matters as decided by the Board.

	
 

	
 

	
 

	
74.

	
FUNCTIONS OF THE DIRECTORS

	
 

	
 

	
 

	
 

	
The Board may meet in order to
  transact business, to adjourn its meetings or to organize them
  otherwise as it shall deem fit and to determine the legal quorum necessary to
  conduct business, provided that the quorum
  for a meeting of the Board of Directors shall consist of at least ***
  majority of the directors then in office. A director whose presence *** required
  for purposes of a quorum as aforesaid may
  by written notice to the Company waive the requirement for his presence in order to constitute a quorum. If
  within half an hour from the time
  appointed for the meeting a quorum is not present, the meeting shall stand
  adjourned to the second business day
  following the day originally scheduled, and at such adjourned meeting
  4 directors shall constitute a quorum notwithstanding that a director
  appointed by any specific shareholder or
  class of shareholders is not present.

- 40 -

	
 

	
 

	
 

	
75.

	
CHAIRMAN

	
 

	
 

	
 

	
 

	
The Board may from time to time
  elect, by a simple majority, a Chairman, and decide the period of time he
  shall hold such an office, and he shall preside at the meetings of the Board of Directors. However, if such a Chairman is not
  elected or if he is not present at any meeting, the Board may, by a simple majority, choose one of its
  members to serve as Chairman of
  that meeting.

	
 

	
 

	
 

	
 

	
The Chairman shall have no rights or privileges
  other than those granted to directors and shall
  not have a second of casting vote.

	
 

	
 

	
 

	
MEETINGS

	
 

	
 

	
 

	
76.

	
A member of the Board of
  Directors may at any time call a Board of Directors’ meeting, and the secretary shall be required on the request of
  such member to convene a Board of Directors’ meeting.

	
 

	
 

	
 

	
 

	
(a)

	
Any notice of a Board of Directors’
  meeting can be given, in writing, or by fax or email provided that the
  notice is given seven (7) days before the time appointed for the meeting, unless all the members of the Board
  of Directors having received a shorter
  notice, shall agree to such a shorter notice, provided, however, that a four
  (4) days notice will be sufficient if the majority of the directors
  then in office agree to such shorter
  notice.

	
 

	
 

	
 

	
 

	
(b)

	
Unless otherwise provided by
  these Articles, all acts and determinations of the Board of Directors shall be determined by a simple
  majority of those attending and voting.

	
 

	
 

	
 

	
 

	
(c)

	
Members of the Board of
  Directors, or any committee designated by the Board of Directors, may participate in a meeting of the
  Board of Directors, or any committee, by means of conference telephone or similar communications equipment
  by means of which all persons
  participating in the meeting can hear each other, and such participation in a meeting shall constitute
  attendance in person at the meeting.

	
 

	
 

	
 

	
77.

	
DELEGATION OF POWER

	
 

	
 

	
 

	
 

	
(a)

	
Subject to applicable law, the
  Board of Directors may delegate any of their powers to committees consisting of such member or members
  of their body as they deem fit and may, from time to time, revoke such
  delegation. No committee of the Board of Directors
  shall be established except by unanimous consent of all directors.

	
 

	
 

	
 

	
 

	
(b)

	
In the exercise of any power
  delegated to it by the Board of Directors all committees shall conform
  to any regulations that may be imposed upon them by the Board of Directors, if there shall he any such
  regulation. If no such regulations are adopted by the Board of Directors or
  if there are no complete and encompassing regulations, the committees shall act pursuant to these Articles
  dealing with organization of meetings, meetings and functions of the
  Board of Directors, mutatis mutandis, and insofar
  as no provision of the Board of Directors shall replace it pursuant to this article.

- 41 -

	
 

	
 

	
 

	
 

	
 

	
(c)

	
All actions performed in a
  bona fide fashion by the Board of Directors or by a committee of the
  Board of Directors, or by any person acting as a director or as a substitute
  shall be as valid, even if at a later date a flaw shall be discovered in the appointment of such a director or such a person
  acting as aforesaid, or that all or some of them were unfit as if each
  and every one of those persons shall have been duly appointed and fit to serve as a director or substitute as the
  case may be.

	
 

	
 

	
 

	
 

	
80.

	
GENERAL MANAGER

	
 

	
 

	
 

	
 

	
 

	
(a)

	
The Board may from time to time appoint one or more
  persons, whether or not he is a member of the Board of Directors, as the CEO
  of the Company, either for a fixed period
  of time or without limiting the time that he or they will stay in office, and
  the Board may from time to time (subject to any provision in any
  contract between him or them and the
  Company) release him or them from their office and appoint another or others in his or their place.

	
 

	
 

	
 

	
 

	
 

	
(b)

	
The Board of Directors may from
  time to time grant and bestow upon the general manager, at that time, those powers and authorities that it exercises
  pursuant to these Articles, as it
  shall deem fit, and may grant those powers and authorities for such period, and to be exercised for such objectives
  and purposes and in such time and conditions,
  and on such restrictions, as it shall decide; and it may grant such authorities whether concurrently with the Board
  of Directors’ authorities in that area, or in excess of them, or in
  place thereof or any one of them, and it can from time to time revoke, repeal, or change any one or all of
  those authorities.

	
 

	
 

	
 

	
 

	
 

	
(c)

	
Notwithstanding the aforesaid in Article 69 the
  wages of the general manager shall be
  determined from time to time by the Board of Directors (subject to any
  provision in any contract between him and the Company) and it may be paid by
  way of a fixed salary or commission or dividends, or a percentage of
  profits or the Company profit turnover or
  of any other Company that the Company has an interest in, or by participation in such profits, or in one or more
  of the aforementioned methods.

	
 

	
 

	
 

	
 

	
81.

	
MINUTES

	
 

	
 

	
 

	
 

	
 

	
(a)

	
The Board shall cause minutes to
  be taken of all general meetings of the Company, of the appointments of officials of the
  Company, of Board of Directors’ meetings and of committee meetings that shall include the following items, if
  applicable:

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
the names of the members
  present;

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
the matters discussed at the
  meeting;

	
 

	
 

	
 

	
 

	
 

	
 

	
(3) 

	
the results of the vote;

	
 

	
 

	
 

	
 

	
 

	
 

	
(4)

	
resolutions adopted at the meeting;

	
 

	
 

	
 

	
 

	
 

	
 

	
(5)

	
directives given by the meeting
  to the committees;

- 42 -

	
 

	
 

	
 

	
 

	
 

	
 

	
(6)

	
if requested, any reservation of
  a shareholder or director with regard to a matter discussed or resolution passed.

	
 

	
 

	
 

	
 

	
(b)

	
The minutes of any meeting
  shall serve as prima facie proof as to the facts in the minutes if the
  minutes are reviewed and approved at the next succeeding meeting and are signed by the Chairman of that next
  succeeding meeting.

	
 

	
 

	
 

	
82.

	
RESOLUTION IN WRITING

	
 

	
 

	
 

	
 

	
A resolution in writing signed
  by all shareholders of the Company or by all the members of the Board of Directors, or of a committee, or
  such a resolution that all the shareholders of the Company then entitled to vote at General Meetings, the members of
  the Board of Directors or a
  committee have agreed to in writing or by fax shall be valid for every
  purpose as a resolution adopted at a General Meeting, Board of Directors’ or
  committee meeting, as the case may be, that was duly convened and
  held. In place of a shareholder or director, as the case may be, any such aforesaid resolution may be signed and
  delivered by his substitute.

	
 

	
 

	
 

	
83.

	
SEAL, STAMP AND SIGNATURES

	
 

	
 

	
 

	
 

	
(a)

	
The Board shall cause the seal
  (if the Company shall have a seal) to be kept in safekeeping and it shall be forbidden to use the
  seal unless prior permission of the Board of Directors is given. If
  such permission was given, the seal shall be affixed in the presence of
  whoever has been so appointed by the Board of Directors, and he shall sign any document upon which the seal has
  been affixed.

	
 

	
 

	
 

	
 

	
(b)

	
The Company shall have at least one rubber stamp.
  The Board shall ensure that such a stamp
  is kept in a safe place.

	
 

	
 

	
 

	
 

	
(c)

	
The Board of Directors may designate and authorize
  any person or persons (even if they are
  not members of the Board of Directors) to act and to sign in the name of the Company, and the
  acts and signatures of such a person or persons shall bind the Company, insofar as such persons have acted and
  signed within the limits of then aforesaid authority.

	
 

	
 

	
 

	
 

	
(d)

	
The printing of the name of the
  Company by a typewriter or by hand next to the signatures of the
  authorized signatories of the Company, pursuant to sub-article (c) above, shall be valid as if the rubber stamp of
  the Company was affixed.

	
 

	
 

	
 

	
84.

	
BRANCH REGISTERS

	
 

	
 

	
 

	
 

	
The Company may, subject to the
  provisions of the Companies Law or any other applicable law that may
  substitute such provisions, keep in every other country where those
  provisions shall apply, a register or registers of shareholders living
  in that other country as aforesaid, and
  to exercise any other powers referred to in the laws with respect to such
  branch registers.

	
 

	
 

	
 

	
85.

	
THE SECRETARY, OFFICERS AND
  ATTORNEYS

	
 

	
 

	
 

	
 

	
(a)

	
The Board of Directors may
  appoint a secretary of the Company upon the conditions that it deems fit. The Board may as well, from
  time to, time, appoint an associate secretary
  who shall be deemed to be the secretary for the period of his appointment.

- 43 -

	
 

	
 

	
 

	
 

	
(b)

	
The Board of Directors may,
  from time to time appoint to the Company, officers, workers, agents and functionaries to permanent,
  temporary or special positions, as it shall, from time to time, see fit and
  set compensation for them.

	
 

	
 

	
 

	
 

	
(c)

	
The Board may, at any lime and
  from time to time, authorize any Company, firm, person or group of people, whether this
  authorization is done by the Board directly or indirectly, to be the attorneys in fact of the Company for those
  purposes and with those powers and
  discretion which shall not exceed those conferred upon the Board of
  Directors or that the Board of Directors can exercise pursuant to these
  Articles - and for such a period of time
  and upon such conditions as the Board deems proper, kind every such authorization may contain such
  directives as the Board of Directors deems
  proper for the protection and benefit of the persons dealing with such attorneys.

	
 

	
 

	
 

	
86.

	
DIVIDEND

	
 

	
 

	
 

	
 

	
Subject to the provisions of
  the Companies Law and these Articles, including without limitation the
  provisions of Articles 7, 8 and 12 and subject to any tights or conditions of
  Preferred Shares and Ordinary-Preferred
  Shares and other rights and conditions attached at that time to any share in the capital of the
  Company granting preferential, special or deferred rights or not
  granting any rights with respect to dividends, the profits of the Company
  shall be distributable to the shareholders
  of the Company according to the proportion, of the nominal value paid
  up or credited as paid up on account of the shares held by them at the date
  so appointed by the Company, without regard to the premium-paid in excess of
  the nominal value. A distribution, setting
  aside or declaration of dividend requires a decision of the Board of
  Directors.

	
 

	
 

	
 

	
 

	
The Board of Directors may
  issue any share upon the condition that a dividend shall be paid at a
  certain date or that a portion of the declared dividend for a certain period
  shall be paid, or that the period for which a dividend shall be paid shall
  commence at a certain date, or a similar condition, all as decided by the
  Board of Directors. In every such case - subject to the provision mentioned in the beginning of this article - the dividend
  shall be paid in respect of such a
  share in accordance with such a condition.

	
 

	
 

	
 

	
87.

	
Subject to the provisions of
  the Companies Law, at the time of declaration of a dividend the Board of Directors may decide that such a
  dividend shall be paid in part or in whole, by way of distribution of certain properties,
  especially by way of distribution of fully paid up shares or debentures or
  debenture stock of the Company, or by way of distribution of fully paid up shares or debentures or debenture stock of any
  other Company or in one or more of the aforesaid ways. For purposes of
  any such distribution, the outstanding Preferred Shares and Ordinary-Preferred
  Shares shall be deemed to have been converted into Ordinary Shares as of the time appointed by the Board of Directors
  for the purpose of determining entitlement to participate in such
  distribution.

	
 

	
 

	
 

	
88.

	
Any dividends payable on shares
  which are not fully paid up, will be first a *** to any unpaid amount on such shares even if such
  payments are not yet due pursuant to the terms of issuance or as
  provided in these Articles, and any excess will be distributed to the holder of such shares as set forth herein.

- 44 -

	
 

	
 

	
 

	
89.

	
The Board of Directors may put
  a lien on any dividend on which the Company has a charge, and it may use it to pay any debts, obligations
  or commitments with respect to which the charge exists.

	
 

	
 

	
 

	
90.

	
A transfer of shares shall not transfer the right to
  a dividend which has been declared after the
  transfer but before the registration of the transfer. The person registered
  in the register as a shareholder
  on the date appointed by the company for that purpose shall be the one entitled
  to receive a dividend.

	
 

	
 

	
 

	
91.

	
Reserved.

	
 

	
 

	
 

	
92. 

	
A notice of the declaration of
  a dividend, whether an interim dividend or otherwise, shall be given to the shareholders registered in the
  register, in the manner provided for in these Articles.

	
 

	
 

	
 

	
93.

	
If no other provision is given,
  the dividend may be paid by check or payment order to be mailed to the registered address of a
  shareholder or person entitled thereto in the register or, in the case of registered joint owners, to the
  addresses of one of the joint owners as registered in the register.
  Every such check shall be made out to the person it is sent to. The receipt
  of the person who, on the date of declaration of dividend, is registered as
  the holder of any share or, in the case of
  joint holders, of one of the joint holders, shall serve as a release with respect to payments made in
  connection with that share.

	
 

	
 

	
 

	
94.

	
(a)

	
Subject to Article 12 above, if
  at any time the share capital shall be divided into different classes
  of shares, the distribution of fully paid up shares, from funds pursuant to Article 95 below, shall be made in one of
  the two following manners as to be decided upon by the Board:

	
 

	
 

	
 

	
 

	
 

	
(i) In such a manner so that all the holders of a share entitled
  to fully paid up shares shall
  receive one uniform class of shares; or

	
 

	
 

	
 

	
 

	
 

	
(ii) In such manner so that
  each holder of shares entitled to fully paid up shares as aforesaid shall receive shares of the class of
  shares held by him and entitling him to fully paid up shares, as aforesaid.

	
 

	
 

	
 

	
 

	
(b)

	
In order to give effect to any resolution in
  connection with the distribution of dividends, or distribution of property,
  fully paid-up shares or debentures, the Board of Directors may resolve any difficulty that shall arise with
  distribution as it shall deem necessary, especially to issue certificates for
  fractional shares and to determine the value of certain property for
  purposes of distribution, and to decide that payment in cash shall be made to the shareholder on the basis of the value decided
  for that-purpose, or that fractions the value of which is less than one New Israeli Shekel shall not be taken
  into account for the purpose of coordinating the rights of all the
  parties. The Board of Directors shall be permitted,
  in this regard, to grant cash or property to trustees in escrow for the
  benefit Of persons entitled thereto,
  as the Board shall see beneficial. Wherever required, an agreement
  shall be submitted to the registrar of companies and the Board may appoint a
  person to execute such an agreement in the name of the persons entitled to a
  dividend, property, fully paid up shares or debentures as shares or
  debentures as aforesaid, and such an
  appointment shall be valid.

- 45 -

	
 

	
 

	
 

	
 

	
 

	
(c)

	
The Company shall not be
  obligated to pay interest on a dividend.

	
 

	
 

	
 

	
 

	
 

	
(d)

	
The Board of Directors may,
  with respect to all dividends not collected within one year after their declaration, invest or use them in
  another way for the benefit of the Company, until they shall be demanded. The Company shall not pay interest for
  dividends or interest not
  collected.

	
 

	
 

	
 

	
 

	
95.

	
FUNDS

	
 

	
 

	
 

	
 

	
 

	
The Board may set aside from the profits of the
  Company the sums it deems proper, as a reserve
  fund or reserve funds for extraordinary uses, or for preferred dividends or equalisation
  of dividends or other funds or for the purpose of correcting, bettering or
  retaining any property of the Company and for those other purposes which -
  shall, in the absolute discretion of the
  Board of Directors, be beneficial to the Company and it may invest the, various sums so invested in such
  investments as it finds proper, and from time to time deal with such
  investments, change or transfer them, in part or in whole, for the benefit of
  the Company. The Board of Directors may, as well, divide any reserve
  liability fund to preferred funds as it shall deem proper, transfer moneys
  from funds to fund and use every fund or
  any part thereof in the business of the Company, without being required to
  keep such sums separate from the rest of the Company’s property. The
  Board of Directors may, from time to time,
  also transfer, to the next year, profits out of such sums which are, in its absolute discretion, beneficial to the Company.
  Generally the Board of Directors may create funds as it deems
  necessary, either those resulting from profits of the Company or from
  re-evaluation of property, or from premiums paid for shares or from any other
  source, and to use them in its discretion as it deems fit insofar as that in
  the creation of such funds, the changes or
  uses do not exceed the provisions of the Companies Law or accepted accounting
  principles.

	
 

	
 

	
 

	
 

	
96.

	
All premiums received from ***
  issue of shares shall be capital funds and they shall be treated for
  every purpose as capital and not as profits distributable as dividends. The
  Board of Directors may organize a reserve
  capital liability account and transfer, from time to time, all such
  premiums to the reserve capital liability account or use such premiums and
  monies to cover depreciation or doubtful loss. All losses from sale of
  investments or other property of the Company shall be debited from other
  funds of the Company. The Board of Directors may use any monies credited to the capital reserve liability account
  in any manner that these Articles or the Companies Law permits.

	
 

	
 

	
 

	
 

	
97.

	
Any amounts transferred and
  credited to the account of income and expense fund or general reserve liability account or capital liability
  reserve account, may, until otherwise used in accordance with these Articles, be invested together with such other
  monies of the Company in the day to
  day business of the Company, without having to differentiate between these investments and the investment of the monies of
  the Company.

	
 

	
 

	
 

	
 

	
98.

	
ACCOUNTS AND AUDIT

	
 

	
 

	
 

	
 

	
 

	
The Board shall cause correct accounts
  to be kept:

	
 

	
 

	
 

	
 

	
 

	
 

	
(a) of the assets and liabilities; 

- 46 -

	
 

	
 

	
 

	
 

	
(b) of any amount of money received
  or expended by the Company and the mattes for which such sum of money is expended or received; and

	
 

	
 

	
 

	
 

	
(c) of all purchases and sales
  made by the Company.

	
 

	
 

	
 

	
99.

	
The account books shall be kept in the Office or at
  such other place as the Board deems fit and
  they shall also be open for inspection by the directors.

	
 

	
 

	
 

	
100.

	
The Board of Directors shall
  determine from time to time, in any specific case or type of case, or
  generally, whether and to what extent and at what times and places and under
  what conditions or regulations the accounts and books of the Company, or any
  of them, shall be open for inspection by
  the shareholders, and no shareholder, not being a director, shall have any
  right of inspecting any account book or document of the Company except as
  conferred by law or authorized by the
  Board of Directors or by the Company in a general meeting.

	
 

	
 

	
 

	
101.

	
Not less than once a year, the
  Board shall submit before the Company at the Annual General Meeting a profit and loss account for the period
  after the previous account, and if it is the first account for the period after registration of the Company, it
  shall be prepared as of a date not
  more than nine months before the date of the meeting and in accordance with
  the relevant provisions of the
  Companies Law, and the Board shall submit a balance sheet that is correct
  as of the date of the profit and loss account. To the balance sheet shall be
  attached a report of the auditor and it
  shall be accompanied by a report from the Board with respect to the situation of the Company business and the
  amount they propose as a dividend and the amount (if any) that they propose be set aside for the fund accounts.

	
 

	
 

	
 

	
102.

	
Auditors shall be appointed and
  their function shall be set out in accordance with the Companies Law.

	
 

	
 

	
 

	
NOTICES

	
 

	
 

	
 

	
102.

	
A notice or any other document
  may be served by the Company upon any shareholder either personally or
  by sending it by prepaid letter, fax or e-mail addressed to such shareholder
  at his address, wherever situated, as
  appearing in the register of shareholders, provided, however that a
  shareholder may notify the Company in writing of its objection to the use of
  e-mail as the sole means of notice in which event the Company shall provide
  notice to such shareholder by e-mail and
  one of the other means permitted by this Article 102.

	
 

	
 

	
 

	
103.

	
All notices directed to be
  given to the shareholders shall, with respect to any shares to which persons
  are jointly entitled, be given to one of the joint holders, and any notice so
  given shall be sufficient notice to the holders of such share.

	
 

	
 

	
 

	
104.

	
Prior and timely notice of the
  convening, of a shareholders meeting shall be given to each shareholder, wherever situated, at the last
  address provided by the shareholder. Any shareholder registered in the register who shall, from time to time,
  furnish the Company with an address
  at which notices may be served, shall be entitled to receive all notices he
  is entitled to receive according to
  these Articles at that address.

	
 

	
 

	
 

	
105.

	
A notice may be given by the Company to the persons
  entitled to a share in consequence of the
  death or bankruptcy of a shareholder by sending it through the post in a
  prepaid letter or fax or e-mail
  addressed to them by name, at the address furnished for the purpose by the persons claiming to be so
  entitled or, until such an address has been so furnished, by giving the notice in any manner in which the same
  might have been given if the death or bankruptcy had not occurred.

- 47 -

	
 

	
 

	
106.

	
Any notice or other document,
  (i) if delivered personally, shall be deemed to have been served upon
  delivery, (ii) if sent by post, shall be deemed to have been served five (5)
  days after the time when the letter was delivered to the post, if sent by
  airmail, and two (2) days after the letter
  was delivered to the post, if sent by domestic post, and (iii) if sent by facsimile or electronic mail, shall be confirmed
  by appropriate answer back and shall be effective upon actual receipt if
  received during the recipient’s normal business hours, or beginning the recipient’s next business day
  after receipt if not received during recipient’s normal business
  hours. In proving such service it shall be sufficient to prove that the
  letter, facsimile, or electronic mail containing the notice was properly
  addressed and delivered at the post office or sent by facsimile or electronic
  mail, as the case may be. Any list kept in the
  ordinary manner in any mail list of the company or any copy of any fax in the
  Company’s possession shall be prima
  facie proof of the delivery.

	
 

	
 

	
107.

	
(a) In any case where it is
  necessary to give prior notice of a certain number of days or a notice valid for a certain period, the date of
  delivery shall be taken into account in the number of days or period.

	
 

	
 

	
 

	
(b) In addition to the
  furnishing of a notice pursuant to the above article, the Company may furnish a notice to the shareholders
  entitled to receive notice, or to part of them, by publication of a
  notice in a newspaper distributed in the area wherein the Office is located, or any other place, in Israel or abroad, as the
  Board shall determine from time to time.

	
 

	
 

	
108.

	
RESERVED

	
 

	
 

	
109.

	
INDEMNITY

	
 

	
 

	
(a)

	
The Company shall, subject and
pursuant to the provisions of the Companies Law, indemnify an “Office Holder” of the Company (as
such term is defined in the Companies Law) for all liabilities and expenses incurred by him arising from or
as a result of any act (or omission)
carried out by him as an Office Holder of the Company and which is indemnifiable pursuant to the Companies Law, to
the maximum extent permitted by law. The
Company may indemnify an Office Holder post-factum and may also undertake to indemnify an Office Holder in advance, provided
that, to the extent required under applicable law, such undertaking is
limited to types of occurrences which, in the opinion of the Board of
Directors are, at the time of the undertaking, foreseeable and to an amount
of the Board of Directors has determined
is reasonable in the circumstances. 

	
 

	
 

	
(b)

	
The Company shall, subject and pursuant to the provisions
  of the Companies Law, enter into contracts
  to insure the liability of Office Holders of the Company for any liabilities
  incurred by him arising from or as a result of any act (or omission) carried
  out by him as an Office Holder of the Company and for which the Company may
  insure Office Holders pursuant to the Companies Law, to the maximum extent
  permitted by law.

	
 

	
 

	
(c)

	
The Company may, subject to the provisions of the
  Companies Law, procure insurance for or
  indemnify any person who is not an Office Holder including, without
  limitation, any employee, agent,
  consultant or contractor of the Company who is not an Office Holder.

- 48 -

	
 

	
 

	
(d)

	
The Company may, to the maximum extent permitted by
  law, exempt and release an Office Holder, including in advance, from all or
  part of his or her liability for monetary or other damages due to, arising or resulting from, a breach of his or her duty
  of care to the Company. The Directors of the Company are released and
  exempt from all liability as aforesaid to the maximum extent permitted by law
  with respect to any such breach, which has
  been or may be committed.

- 49 -

Schedule 2.1  

Updated work Plan  

[***]

*** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

Schedule 2.2  

Negevtech Ltd.
Capitalization Table (on a fully diluted
basis) Prior to Closing

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name

	
 

	
# Ordinary

	
 

	
# Options/Warrants to Purchase Ordinary

	
 

	
# Ordinary-Preferred

	
 

	
# Ordinary (Ordinary-Preferred Shares adjustment upon
  conversation)

	
 

	
# Preferred AA

	
 

	
# Warrants to purchase Preferred AA

	
 

	
# Preferred BB-2 (including 15% discount)

	
 

	
# Preferred BB-1

	
 

	
# Warrants to purchase Preferred BB-1

	
 

	
# Preferred BB-3

	
 

	
# Total Shares on an as converted basis

	
 

	
% Issued & Outstanding on an as converted basis

	
 

	
# Total Fully Diluted on an as converted basis

	
 

	
% Fully Diluted on an as converted basis

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Gadi Neumann

	
 

	
 

	
 

	
 

	
 

	
784,502

	
 

	
433,668

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1,218,170

	
 

	
3.62

	
%

	
 

	
1,218,170

	
 

	
2.85

	
%

	
David Alumot

	
 

	
 

	
 

	
 

	
 

	
784,502

	
 

	
433,668

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1,218,170

	
 

	
3.62

	
%

	
 

	
1,218,170

	
 

	
2.85

	
%

	
Pitango Venture Capital Fund III (Israeli Sub) L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2,902,420

	
 

	
201,465

	
 

	
861,590

	
 

	
1,377,123

	
 

	
 

	
 

	
183,505

	
 

	
5,324,638

	
 

	
15.82

	
%

	
 

	
5,526,103

	
 

	
12.91

	
%

	
Pitango Venture Capital Fund III (Israeli Sub.) Non-Q L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
268,316

	
 

	
18,624

	
 

	
79,650

	
 

	
127,309

	
 

	
 

	
 

	
16,964

	
 

	
492,239

	
 

	
1.46

	
%

	
 

	
510,863

	
 

	
1.19

	
%

	
Pitango Venture Capital Fund III (Israeli Investors) L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
784,811

	
 

	
54,475

	
 

	
233,002

	
 

	
372,373

	
 

	
 

	
 

	
49,619

	
 

	
1,439,805

	
 

	
4.28

	
%

	
 

	
1,494,280

	
 

	
3.49

	
%

	
Pitango JP Morgan Fund III (Israel), L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
447,636

	
 

	
36,734

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
447,636

	
 

	
1.33

	
%

	
 

	
484,370

	
 

	
1.13

	
%

	
Pitango Principles Fund III (Israel) L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
102,165

	
 

	
7,092

	
 

	
30,332

	
 

	
48,474

	
 

	
 

	
 

	
6,460

	
 

	
187,431

	
 

	
0.56

	
%

	
 

	
194,523

	
 

	
0.45

	
%

	
Pitango Venture Capital Fund II Trusts 2000 L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
204,330

	
 

	
14,184

	
 

	
60,660

	
 

	
96,949

	
 

	
 

	
 

	
12,918

	
 

	
374,857

	
 

	
1.11

	
%

	
 

	
389,041

	
 

	
0.91

	
%

	
Canada Israel Opportunity Fund III, L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
45,308

	
 

	
2,520

	
 

	
7,308

	
 

	
9,544

	
 

	
 

	
 

	
 

	
 

	
62,160

	
 

	
0.18

	
%

	
 

	
64,680

	
 

	
0.15

	
%

	
Shrem, Fudim, Kelner Founders Group II L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
45,308

	
 

	
2,520

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
45,308

	
 

	
0.13

	
%

	
 

	
47,828

	
 

	
0.11

	
%

	
Shrem Fudim Kelner Founders Group II Annex Fund L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
7,209

	
 

	
9,544

	
 

	
 

	
 

	
 

	
 

	
16,753

	
 

	
0.05

	
%

	
 

	
16,753

	
 

	
0.04

	
%

	
Shrem, Fudim Kelner & Co Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
30,187

	
 

	
1,679

	
 

	
4,932

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
35,119

	
 

	
0.10

	
%

	
 

	
36,798

	
 

	
0.09

	
%

	
Qualitau Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
355,522

	
 

	
26,879

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
355,522

	
 

	
1.06

	
%

	
 

	
382,401

	
 

	
0.89

	
%

	
SVE Star Ventures Enterprises Gmbh & Co. No. IX KG.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2,224,297

	
 

	
318,075

	
 

	
635,475

	
 

	
521,206

	
 

	
 

	
 

	
79,061

	
 

	
3,460,039

	
 

	
10.28

	
%

	
 

	
3,778,114

	
 

	
8.83

	
%

	
Star Management of Investments No. II (2000) L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
321,275

	
 

	
45,943

	
 

	
68,535

	
 

	
56,238

	
 

	
 

	
 

	
8,530

	
 

	
454,578

	
 

	
1.35

	
%

	
 

	
500,521

	
 

	
1.17

	
%

	
Star Growth Enterprise, a German Civil Law Partnership (with
  limitation of Liability)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1,045,227

	
 

	
2,247,164

	
 

	
 

	
 

	
181,876

	
 

	
3,474,267

	
 

	
10.32

	
%

	
 

	
3,474,267

	
 

	
8.12

	
%

	
SVM Star Ventures Managmenttgesellschaft mbH Nr. 3

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
334,236

	
 

	
 

	
 

	
 

	
 

	
334,236

	
 

	
0.99

	
%

	
 

	
334,236

	
 

	
0.78

	
%

	
Genesis Partners II, L.D.C.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1,773,948

	
 

	
253,679

	
 

	
490,760

	
 

	
693,952

	
 

	
 

	
 

	
986,212

	
 

	
3,944,872

	
 

	
11.72

	
%

	
 

	
4,198,551

	
 

	
9.81

	
%

	
Genesis Partners II (Israel) L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
262,512

	
 

	
37,535

	
 

	
72,426

	
 

	
102,414

	
 

	
 

	
 

	
145,546

	
 

	
582,898

	
 

	
1.73

	
%

	
 

	
620,433

	
 

	
1.45

	
%

	
Lehman Brothers European Venture Capital L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
222,108

	
 

	
41,998

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
222,108

	
 

	
0.66

	
%

	
 

	
264,106

	
 

	
0.62

	
%

	
Lehman Brothers Holdings plc (on behalf of pre-tax plan)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
425,109

	
 

	
80,384

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
425,109

	
 

	
1.26

	
%

	
 

	
505,493

	
 

	
1.18

	
%

	
Lehman Brothers Partnership Account 2000/2001, L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
191,536

	
 

	
36,217

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
191,536

	
 

	
0.57

	
%

	
 

	
227,753

	
 

	
0.53

	
%

	
Lehman Brothers Offshore Partnership Account 2000/2001, L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
49,677

	
 

	
9,393

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
49,677

	
 

	
0.15

	
%

	
 

	
59,070

	
 

	
0.14

	
%

	
Orbotech Technology Ventures L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1,776,860

	
 

	
335,988

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1,776,860

	
 

	
5.28

	
%

	
 

	
2,112,848

	
 

	
4.94

	
%

	
Intel Atlantic, Inc.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
710,745

	
 

	
134,395

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
483,559

	
 

	
1,194,304

	
 

	
3.55

	
%

	
 

	
1,328,699

	
 

	
3.11

	
%

	
Poalim Ventures Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
381,027

	
 

	
 

	
 

	
47,628

	
 

	
428,655

	
 

	
1.27

	
%

	
 

	
428,655

	
 

	
1.00

	
%

	
Poalim Ventures I Ltd.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
586,194

	
 

	
 

	
 

	
73,274

	
 

	
659,468

	
 

	
1.96

	
%

	
 

	
659,468

	
 

	
1.54

	
%

	
Poalim Ventures II L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1,188,509

	
 

	
 

	
 

	
148,564

	
 

	
1,337,073

	
 

	
3.97

	
%

	
 

	
1,337,073

	
 

	
3.12

	
%

	
Wellington Partners Venture III Technology Fund L.P.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
3,435,558

	
 

	
3,435,558

	
 

	
10.21

	
%

	
 

	
3,435,558

	
 

	
8.03

	
%

	
Financiere Seso S.A

	
 

	
159,620

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
159,620

	
 

	
0.47

	
%

	
 

	
159,620

	
 

	
0.37

	
%

	
Inter Hightech (1982) Ltd. (Previously TICI)

	
 

	
71,829

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
71,829

	
 

	
0.21

	
%

	
 

	
71,829

	
 

	
0.17

	
%

	
Service Providers

	
 

	
 

	
 

	
32,769

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
0.00

	
%

	
 

	
32,769

	
 

	
0.08

	
%

	
TICI

	
 

	
 

	
 

	
87,791

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
0.00

	
%

	
 

	
87,791

	
 

	
0.21

	
%

	
Tmura Fund

	
 

	
 

	
 

	
5,000

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ESOP IL Plan(1)(2)

	
 

	
238,000

	
 

	
5,186,503

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
238,000

	
 

	
0.71

	
%

	
 

	
5,424,503

	
 

	
12.68

	
%

	
ESOP US Plan

	
 

	
 

	
 

	
605,000

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
-

	
 

	
0.00

	
%

	
 

	
605,000

	
 

	
1.41

	
%

	
Plenus Technologies Ltd

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1,556,437

	
 

	
 

	
 

	
-

	
 

	
0.00

	
%

	
 

	
1,556,437

	
 

	
3.64

	
%

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	

	
 

	

	
 

	
Total

	
 

	
469,449

	
 

	
5,917,063

	
 

	
1,569,004

	
 

	
867,336

	
 

	
13,144,070

	
 

	
1,659,779

	
 

	
3,597,106

	
 

	
8,152,256

	
 

	
1,556,437

	
 

	
5,859,274

	
 

	
33,658,495

	
 

	
100

	
%

	
 

	
42,791,774

	
 

	
100

	
%

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	

	
 

	

	
 

(1) The 238,000 Ordinary
Shares are held by Eli Lerner, CPA as trustee under the Company’s ESOP

(2) Includes
1,410,285 options to purchase Ordinary Shares of the Company granted to Arnon
Gat, the Company’s CEO. Such number of Shares includes an Adjustment (as
provided for and defined in Mr. Gat’s employment agreement with the Company) in
connection with an investment of US$25.

Schedule 2.3  

Negevtech –
Officers and Directors  

Negevtech Ltd.
– Directors 

Bart Markus
Eran Gersht

Amichai Stienberg

Arnon Gat

Yaffa Krindel

Aaron Mankovski

Gad Neumann

Eddy Shalev

Rafi Yizhar

Negevtech Ltd. –
Officers 

		
	Arnon Gat	Chief Executive Officer
	Glyn Davies	Corporate VP Marketing
	Oz Desheh	CFO
	Mordechai Gatenio	VP Operations
	Yuval Levin	VP Sales
	Michal Rozenkrantz	VP Human Resources
	Dr. Rivi Sherman	VP Business Development
	Dvir Harmelech	VP R&D
	Shmuel Gov	VP Customer Support

Negevtech Inc. 

	 	
 Directors:

	
Arnon Gat

Oz Desheh 

	 	
  Officers:

	
Glyn Davies - President 

Negevtech PTE. Ltd. (Singapore) 

	 	
 Directors:

	
Oz Desheh

Chen Wen Woam Angela 

	 	
 Officers:

	
Oz Desheh 

Negevtech GmbH Dresden 

	 	
 Directors:

	
 Oz Desheh

Markus Kindler

	 	
 Officers:

	
Markus Kindler 

Negevtech Japan 

	 	
 Directors:

	
 Arnon Gat

Oz Desheh

Roi Shefts

	 	
  Officers:

	
 Roi Shefts - Business Manager

Negevtech Korea 

	 	
 Directors:

	
Oz Desheh (representative director)

Arnon Gat

Michal Levi (auditor) 

Negevtech Taiwan 

	 	
 Directors:

	
Oz Desheh  

	 	
  Officers:

	
 Yanki Avni-Business manager

Schedule 2.8  

	
 

	
 

	
 

	
 

	
Negevtech
  FAMILY STATUS 

	
Version: 1 

	
 

	
Status report date:
  15/08/05 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
File #

	
 

	
Title

	
 

	
Negevtech detailed
  comments

	
 

	
Status

	
 

	
Abstract

	
 

	
Independent claims

	
 

	
Country

	
 

	
Application No.

	
 

	
Issued Patent

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
44623

	
 

	
METHOD
  AND SYSTEM FOR FAST ONLINE ELECTRO-OPTICAL DETECTION OF WAFER DEFECTS

	
 

	
Gadi’s
  basic concept patent

	
 

	
 

	
 

	
6,693,664 

	
 

	
6,693,664 

	
 

	
USA

	
 

	
 

	
 

	
6,693,664 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
46509

	
 

	
METHOD
  AND SYSTEM FOR FAST ONLINE ELECTRO-OPTICAL DETECTION OF WAFER DEFECTS

	
 

	
Gadi’s
  basic concept patent

	
 

	
Pending -
  correspondence with the examiner. Amendment was sent on jul 2006

	
 

	
 

	
 

	
 

	
 

	
Europe

	
 

	
03250255-1

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
46793

	
 

	
METHOD
  AND SYSTEM FOR FAST ONLINE ELECTRO-OPTICAL DETECTION OF WAFER DEFECTS

	
 

	
Gadi’s
  basic concept patent

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Taiwan

	
 

	
092100777

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
47513

	
 

	
METHOD
  AND APPARATUS FOR INSPECTION OF DEFECTS IN A REPETITIVE OBJECT

	
 

	
Gadi’s
  basic concept patent

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Israel

	
 

	
153977

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
47606

	
 

	
METHOD
  AND SYSTEM FOR FAST ONLINE ELECTRO-OPTICAL DETECTION OF WAFER DEFECTS

	
 

	
Gadi’s
  basic concept patent

	
 

	
Pending -
  examintation requested

	
 

	
 

	
 

	
 

	
 

	
Japan

	
 

	
2003-7400

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
[***]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
47607

	
 

	
METHOD
  AND SYSTEM FOR FAST ONLINE ELECTRO-OPTICAL DETECTION OF WAFER DEFECTS

	
 

	
Gadi’s
  basic concept patent

	
 

	
Pending - A
  request for examination must be filed before January 15, 2008.

	
 

	
 

	
 

	
 

	
 

	
Korea

	
 

	
2003-2671

	
 

	
 

*** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

	
 

	
 

	
 

	
 

	
Negevtech
  FAMILY STATUS 

	
Version: 1 

	
 

	
Status
report date: 15/08/05  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
File #

	
 

	
Title

	
 

	
Negevtech detailed
  comments

	
 

	
Status

	
 

	
Abstract

	
 

	
Independent claims

	
 

	
Country

	
 

	
Application No.

	
 

	
Issued Patent

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
44420

	
 

	
SYSTEM
  FOR DETECTION OF WAFER DEFECTS

	
 

	
Full
  description & claims on the 302 imaging apparatus - concept claims

	
 

	
Pending
  - correspondence with the examiner. Amendment was sent on Jul 2006

	
 

	
 

	
 

	
 

	
 

	
USA

	
 

	
10/345,097

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
53751

	
 

	
SYSTEM
  FOR DETECTION OF WAFER DEFECTS

	
 

	
Full
  description & claims on the 302 imaging apparatus - Fourier lens claims

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
USA

	
 

	
11/021,393

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
55247

	
 

	
GROUP
  IV (Div. Of 44420)

	
 

	
 

	
 

	
In
  Filing process

	
 

	
 

	
 

	
 

	
 

	
USA

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
55070

	
 

	
GROUP
  VI: DARK FIELD (Div. of 44420)

	
 

	
 

	
 

	
Filed
  on June 2006

	
 

	
 

	
 

	
 

	
 

	
USA

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
55071

	
 

	
GROUP
  VI: LASER ILLUMINATION (Div. of 44420)

	
 

	
 

	
 

	
Filed
  on June 2006

	
 

	
 

	
 

	
 

	
 

	
USA

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
55147

	
 

	
GROUP
  VII (Div. Of 44420)

	
 

	
 

	
 

	
Filed
  on June 2006

	
 

	
 

	
 

	
 

	
 

	
USA

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
55072

	
 

	
GROUP
  VIII: FIELD CURVATURE (Div. of 44420)

	
 

	
 

	
 

	
Filed
  on June 2006

	
 

	
 

	
 

	
 

	
 

	
USA

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
55062

	
 

	
SYSTEM
  FOR DETECTION OF WAFER DEFECTS

	
 

	
Full
  description & claims on the 302 imaging apparatus

	
 

	
Pending
  - published

	
 

	
 

	
 

	
 

	
 

	
Europe

	
 

	
4701321.4

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
50446

	
 

	
SYSTEM
  FOR DETECTION OF WAFER DEFECTS

	
 

	
Full
  description & claims on the 302 imaging apparatus

	
 

	
National
  phase filed

	
 

	
 

	
 

	
 

	
 

	
PCT

	
 

	
PCT/IL04/000023

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
55065

	
 

	
SYSTEM
  FOR DETECTION OF WAFER DEFECTS

	
 

	
Full
  description & claims on the 302 imaging apparatus

	
 

	
Pending
  - examination was not requested

	
 

	
 

	
 

	
 

	
 

	
South
  Korea

	
 

	
2005-7013165

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
[***]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

*** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

	
 

	
 

	
 

	
 

	
Negevtech
  FAMILY STATUS 

	
Version: 1 

	
 

	
Status report date:
  15/08/05 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
File #

	
 

	
Title

	
 

	
Negevtech detailed
  comments

	
 

	
Status

	
 

	
Abstract

	
 

	
Independent claims

	
 

	
Country

	
 

	
Application No.

	
 

	
Issued Patent

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
47667

	
 

	
FIBER
  OPTICAL ILLUMINATION SYSTEM

	
 

	
BF
  & DF illumination system with the coherence breaking technique

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
USA

	
 

	
6,892,013

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
54590

	
 

	
FIBER
  OPTICAL ILLUMINATION SYSTEM

	
 

	
BF
  & DF illumination system with the coherence breaking technique

	
 

	
Pending
  - correspondence with the examiner. Amendment was sent on June 2006

	
 

	
 

	
 

	
 

	
 

	
USA
  (Cont of
47667)

	
 

	
11/096,873

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
55106

	
 

	
FIBER
  OPTICAL ILLUMINATION SYSTEM

	
 

	
BF
  & DF illumination system with the coherence breaking technique

	
 

	
Pending

	
 

	
 

	
 

	
 

	
 

	
Europe

	
 

	
4701327.1

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
50445

	
 

	
FIBER
  OPTICAL ILLUMINATION SYSTEM

	
 

	
BF
  & DF illumination system with the coherence breaking technique

	
 

	
Natinal
  phase filed

	
 

	
 

	
 

	
 

	
 

	
PCT

	
 

	
PCT/IL04/000022

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
55109

	
 

	
FIBER
  OPTICAL ILLUMINATION SYSTEM

	
 

	
BF
  & DF illumination system with the coherence breaking technique

	
 

	
Pending
  - Examination was not requested

	
 

	
 

	
 

	
 

	
 

	
South
  Korea

	
 

	
2005-7013118

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
50532

	
 

	
FIBER
  OPTICAL ILLUMINATION SYSTEM

	
 

	
BF
  & DF illumination system with the coherence breaking technique

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Taiwan

	
 

	
093101034

	
 

	
 

	
 

	
 

	
 

	
 

	
Negevtech
  FAMILY STATUS 

	
Version: 1 

	
 

	
Status report date:
  15/08/05 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
File #

	
 

	
Title

	
 

	
Negevtech detailed
  comments

	
 

	
Status

	
 

	
Abstract

	
 

	
Independent claims

	
 

	
Country

	
 

	
Application No.

	
 

	
Issued Patent

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
53885
  

	
 

	
MULTI
  MODE INSPECTION METHOD AND APPARATUS 

	
 

	
FPA
  that allows simple and economical CCD packing+ concept for simultaneous
  BF&DF 

	
 

	
Pending
  - correspondence with the examiner. Amendment was sent on June 2006 

	
 

	
 

	
 

	
 

	
 

	
USA
  

	
 

	
11/176,844
  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
52169
  

	
 

	
MULTI
  MODE INSPECTION METHOD AND APPARATUS 

	
 

	
FPA
  that allows simple and economical CCD packing+ concept for simultaneous
  BF&DF 

	
 

	
Provisional
  

	
 

	
 

	
 

	
 

	
 

	
USA-
  Provisional
  

	
 

	
60/587,675
  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
[***]
  

	
 

	
  

	
 

	
 

	
 

	
  

	
 

	
 

	
 

	
 

	
 

	
 
  

	
 

	
  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
53886
  

	
 

	
MULTI
  MODE INSPECTION METHOD AND APPARATUS 

	
 

	
FPA
  that allows simple and economical CCD packing+ concept for simultaneous
  BF&DF 

	
 

	
National
  phase should be fined untill Jan 2007 

	
 

	
 

	
 

	
 

	
 

	
PCT 

	
 

	
PCT/IL2005/000708

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
53603
  

	
 

	
METHOD
  AND APPARATUS FOR DETECTING DEFECTS IN WAFERS 

	
 

	
Image
  processing of the 302 

	
 

	
Pending
  

	
 

	
 

	
 

	
 

	
 

	
USA 

	
 

	
11/069,712
  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
57768
  

	
 

	
METHOD
  AND APPARATUS FOR DETECTING DEFECTS IN WAFERS 

	
 

	
Image
  processing of the 302 

	
 

	
Filed
  on Feb 2006 

	
 

	
 

	
 

	
 

	
 

	
Europe
  

	
 

	
6251044.1
  

	
 

	
 

*** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

	
 

	
 

	
 

	
 

	
Negevtech
  FAMILY STATUS 

	
Version: 1 

	
 

	
Status report date:
  15/08/05 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
File #

	
 

	
Title

	
 

	
Negevtech detailed
  comments

	
 

	
Status

	
 

	
Abstract

	
 

	
Independent claims

	
 

	
Country

	
 

	
Application No.

	
 

	
Issued Patent

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
[***]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
53604

	
 

	
METHOD
  AND APPARATUS FOR DETECTING DEFECTS IN WAFERS INCLUDING ALIGNMENT OF THE
  WAFER IMAGES SO AS TO INDUCE THE SAME SMEAR IN ALL IMAGES

	
 

	
Image
  processing of the 302

	
 

	
Pending

	
 

	
 

	
 

	
 

	
 

	
USA

	
 

	
11/068,711

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
[***]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
NRI-I

	
 

	
Printed
  Fourier Filtering In Optical Inspection Tools

	
 

	
Producing
  Fourier image by printing

	
 

	
Filed
  on April 2006

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
11/410,276

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
NRI-2

	
 

	
Wafer
  Inspection Using Short-Pulsed Continuous Broadband Illumination

	
 

	
Description
  of Inspection tool that uses short-pulsed continuous broadband illumination,
  especially by using the supercontinuum effect via PCF (Photonic Crystal
  Fibers).

	
 

	
Provisional
  - filed on May 2006

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
60/808,816

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
NRI-3

	
 

	
Speckle
  Reduction Using A Fiber Bundle And Light Guide

	
 

	
Speckle
  reduction using bundle of fibers and a light guide after it

	
 

	
filed
  on Aug 2006

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Domain
Name: negevtech.com 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Unregistered
Trademark: Step&Image 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

*** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

Schedule 2.18  

[***]

*** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

Schedule 2.19  

NEGEVTECH LTD.

INTERIM REPORT

AS OF MARCH 31, 2006

(Unaudited)

 TABLE OF CONTENTS 

	
 

	
 

	
 

	
   

	
   

	
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 2 

	
 CONDENSED CONSOLIDATED
INTERIM FINANCIAL STATEMENTS - IN U.S. DOLLARS ($): 

	
   

	
   

	
 Balance sheets 

	
   

	
 3 

	
 Statements of operations 

	
   

	
 4 

	
 Statements of changes in shareholders’ equity 

	
   

	
 5-6 

	
 Statements of cash flows 

	
   

	
 7 

	
 Notes to financial statements 

	
   

	
 8-9 

	
   

	
   

	
   

 September 10,
2006 

 The Board of
Directors of 

Negevtech Ltd. 

 Dear Sirs, 

	
5

	
 

	
 Re: 

	
 Review of
condensed unaudited interim financial Statements for the three month period
ended March 31, 2006 

 At your
request, we have reviewed the condensed consolidated interim balance sheet of
Negevtech Ltd. (hereafter -
the Company) and its subsidiaries as of March 31, 2006 and the condensed
consolidated statements of operations, changes in shareholders’ equity and cash
flows for the three month period ended March 31, 2006. 

 Our review was
performed in accordance with the procedures prescribed by the Institute of
Certified Public Accountants in Israel. Inter alia, these procedures included:
reading of the aforementioned financial statements, reading of minutes of
meetings of shareholders and the board of directors, and making inquiries of
Company officers responsible for financial and accounting matters. 

 Since our
review was limited in scope and did not constitute an audit in accordance with
generally accepted auditing standards, we do not express an opinion on the
abovementioned condensed interim financial statements. 

 During our
review, nothing came to our attention that indicated that significant
adjustments should be made in the said interim condensed financial statements
in order for them to be considered as having been prepared in accordance with
generally accepted accounting principles. 

 Sincerely
yours, 

 Kesselman & Kesselman

Certified Public Accountants (Isr.) 

2

 NEGEVTECH LTD. 

 CONDENSED CONSOLIDATED BALANCE SHEETS 

 AS OF MARCH 31, 2006 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
 March 31 

	
   

	
   

	
   

	
   

	
   

	

	
   

	
 December 31, 

	
   

	
   

	
   

	
 2006 

	
   

	
 2005 

	
   

	
 2005 

	
   

	
   

	
   

	

	
   

	

	
   

	

	
   

	
   

	
   

	
 (Unaudited) 

	
   

	
 (Audited) 

	
   

	
   

	
   

	

	
   

	

	
   

	
   

	
   

	
 U.S. dollars in thousands 

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
   

	
 A s s e t
  s 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 CURRENT ASSETS: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Cash and cash equivalents 

	
   

	
   

	
 10,400 

	
   

	
   

	
 1,639 

	
   

	
   

	
 1,356 

	
   

	
 Accounts receivable: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Trade 

	
   

	
   

	
 3,794 

	
   

	
   

	
 504 

	
   

	
   

	
 3,219 

	
   

	
 Government of Israel 

	
   

	
   

	
 1,146 

	
   

	
   

	
 1,058 

	
   

	
   

	
 1,671 

	
   

	
 Other 

	
   

	
   

	
 1,919 

	
   

	
   

	
 689 

	
   

	
   

	
 737 

	
   

	
 Inventories 

	
   

	
   

	
 18,140 

	
   

	
   

	
 13,869 

	
   

	
   

	
 17,212 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
   

	
   

	
   

	
 T o t a l  current assets 

	
   

	
   

	
 35,399 

	
   

	
   

	
 17,759 

	
   

	
   

	
 24,195 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 NON-CURRENT
  ASSETS: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Restricted deposits 

	
   

	
   

	
 1,200 

	
   

	
   

	
 3,504 

	
   

	
   

	
 1,199 

	
   

	
 Long - term prepaid expenses 

	
   

	
   

	
 683 

	
   

	
   

	
   

	
   

	
   

	
 722 

	
   

	
 Severance pay funds 

	
   

	
   

	
 818 

	
   

	
   

	
 417 

	
   

	
   

	
 812 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 T o t a l  non-current assets 

	
   

	
   

	
 2,701 

	
   

	
   

	
 3,921 

	
   

	
   

	
 2,733 

	
   

	
   

	
   

	
   

	
   

	
 FIXED ASSETS: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Cost 

	
   

	
   

	
 11,534 

	
   

	
   

	
 5,552 

	
   

	
   

	
 10,061 

	
   

	
 L e s s - accumulated depreciation 

	
   

	
   

	
 4,183 

	
   

	
   

	
 1,701 

	
   

	
   

	
 3,325 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 7,351 

	
   

	
   

	
 3,851 

	
   

	
   

	
 6,736 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 45,451 

	
   

	
   

	
 25,531 

	
   

	
   

	
 33,664 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 Liabilities
  and shareholders’ equity 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 CURRENT LIABILITIES: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Short term loans and current maturities of long-term bank
loan 

	
   

	
   

	
 833 

	
   

	
   

	
 5,333 

	
   

	
   

	
 833 

	
   

	
 Accounts payable and accruals: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Trade 

	
   

	
   

	
 3,909 

	
   

	
   

	
 2,507 

	
   

	
   

	
 4,730 

	
   

	
 Customer’s advance and Deferred revenue 

	
   

	
   

	
 3,125 

	
   

	
   

	
 2,281 

	
   

	
   

	
 550 

	
   

	
 Other 

	
   

	
   

	
 2,260 

	
   

	
   

	
 1,675 

	
   

	
   

	
 2,497 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 T o t a l  current liabilities 

	
   

	
   

	
 10,127 

	
   

	
   

	
 11,796 

	
   

	
   

	
 8,610 

	
   

	
   

	
   

	
   

	
   

	
 LONG-TERM LIABILITIES: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Accrued severance pay liability 

	
   

	
   

	
 893 

	
   

	
   

	
 495 

	
   

	
   

	
 877 

	
   

	
 Loans and other liabilities, net of current maturities: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Bank loans 

	
   

	
   

	
 139 

	
   

	
   

	
 972 

	
   

	
   

	
 347 

	
   

	
 Other liabilities 

	
   

	
   

	
 10,000 

	
   

	
   

	
   

	
   

	
   

	
 7,700 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
   

	
   

	
   

	
 T o t a l  long - term liabilities 

	
   

	
   

	
 11,032 

	
   

	
   

	
 1,467 

	
   

	
   

	
 8,924 

	
   

	
   

	
   

	
   

	
   

	
 CONVERTIBLE LOANS FROM SHAREHOLDERS 

	
   

	
   

	
   

	
   

	
   

	
 7,121 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 COMMITMENTS AND CONTINGENT LIABILITIES 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 T o t a l  liabilities 

	
   

	
   

	
 21,159 

	
   

	
   

	
 20,384 

	
   

	
   

	
 17,534 

	
   

	
   

	
   

	
   

	
   

	
 SHAREHOLDERS’ EQUITY 

	
   

	
   

	
 24,292 

	
   

	
   

	
 5,147 

	
   

	
   

	
 16,130 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 45,451 

	
   

	
   

	
 25,531 

	
   

	
   

	
 33,664 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 

	
 

	
 

	
 

	
   

	
   

	
    ) 

	
   

	
   

	
   

	
    ) 

	
 DIRECTORS 

	
   

	
   

	
    ) 

	
   

 The accompanying notes are an integral part of these
condensed financial statements. 

3

 NEGEVTECH LTD. 

 CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS 

 FOR THE THREE MONTH PERIOD ENDED MARCH 31,
2006 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
 Three months

  ended March 31 

	
   

	
 Year ended

  December 31 

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
 2006 

	
   

	
 2005 

	
   

	
 2005 

	
   

	
   

	
   

	

	
   

	

	
   

	

	
   

	
   

	
   

	
 (Unaudited) 

	
   

	
 (Audited) 

	
   

	
   

	
   

	

	
   

	

	
   

	
   

	
   

	
 U.S. dollars in thousands 

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
   

	
 Revenues 

	
   

	
   

	
 4,501 

	
   

	
   

	
 3,725 

	
   

	
   

	
 15,856 

	
   

	
   

	
   

	
   

	
   

	
 Cost of revenues 

	
   

	
   

	
 2,220 

	
   

	
   

	
 2,144 

	
   

	
   

	
 8,918 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
 Gross profit 

	
   

	
   

	
 2,281 

	
   

	
   

	
 1,581 

	
   

	
   

	
 6,938 

	
   

	
   

	
   

	
   

	
   

	
 Research and development costs: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Research and development expenses 

	
   

	
   

	
 2,986 

	
   

	
   

	
 1,848 

	
   

	
   

	
 9,158 

	
   

	
 L e s s - royalty bearing participation from the
Government of Israel 

	
   

	
   

	
 333 

	
   

	
   

	
 390 

	
   

	
   

	
 1,524 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 Research and development expenses, net 

	
   

	
   

	
 2,653 

	
   

	
   

	
 1,458 

	
   

	
   

	
 7,634 

	
   

	
   

	
   

	
   

	
   

	
 Marketing, general and administrative Expenses, net 

	
   

	
   

	
 3,613 

	
   

	
   

	
 2,240 

	
   

	
   

	
 12,932 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
 Operating loss 

	
   

	
   

	
 3,985 

	
   

	
   

	
 2,117 

	
   

	
   

	
 13,628 

	
   

	
   

	
 Financial expenses, net: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Non-cash expenses in respect of conversion of
  convertible loans from shareholders 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 1,251 

	
   

	
   

	
   

	
   

	
   

	
 Other financial expenses, net 

	
   

	
   

	
 369 

	
   

	
   

	
 306 

	
   

	
   

	
 1,232 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
   

	
   

	
   

	
 Net loss for the period 

	
   

	
   

	
 4,354 

	
   

	
   

	
 2,423 

	
   

	
   

	
 16,111 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

 The accompanying notes are an integral part of these
condensed financial statements. 

4

 (Continued -1) 

 NEGEVTECH LTD. 

 CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY 

 FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2006 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
 Share capital 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Ordinary

  shares 

	
   

	
 Ordinary

  preferred

  shares 

	
   

	
 Preferred

  shares 

	
   

	
 Amount 

	
   

	
 Additional

  Paid-in

  capital 

	
   

	
 Warrants 

	
   

	
 Accumulated

  deficit 

	
   

	
 Total 

	
   

	
   

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	
   

	
   

	
 Number of shares 

	
   

	
 U . S .    d o l l a r s    i n    t h o u s a n d s 

	
   

	
   

	
   

	

	
   

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 BALANCE AT
  JANUARY 1, 2006
  (audited)  

	
   

	
   

	
 428,949 

	
   

	
   

	
 1,569,004 

	
   

	
   

	
 24,893,433 

	
   

	
   

	
 66 

	
   

	
   

	
 66,447 

	
   

	
   

	
 1,742 

	
   

	
   

	
 (52,125 

	
 ) 

	
   

	
 16,130 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 CHANGES
  DURING THE THREE MONTH PERIOD ENDED MARCH 31, 2006  (unaudited):  

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Exercise of Employee stock options 

	
   

	
   

	
 30,000 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (a 

	
 ) 

	
   

	
 12 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 12 

	
   

	
 Employee stock based compensation 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 20 

	
   

	
   

	
 20 

	
   

	
 Issuance of preferred
BB3 shares capital (b) 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 4,742,606 

	
   

	
   

	
 12 

	
   

	
   

	
 12,472 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 12,484 

	
   

	
 Loss 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (4,354 

	
 ) 

	
   

	
 (4,354 

	
 ) 

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 BALANCE AT
  MARCH 31, 2006 (unaudited) 

	
   

	
   

	
 458,949 

	
   

	
   

	
 1,569,004 

	
   

	
   

	
 29,636,039 

	
   

	
   

	
 78 

	
   

	
   

	
 78,931 

	
   

	
   

	
 1,742 

	
   

	
   

	
 (56,459 

	
 ) 

	
   

	
 24,292 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 BALANCE AT JANUARY 1,
  2005 (audited) 

	
   

	
   

	
 259,949 

	
   

	
   

	
 2,401,978 

	
   

	
   

	
 12,071,278 

	
   

	
   

	
 37 

	
   

	
   

	
 43,077 

	
   

	
   

	
 178 

	
   

	
   

	
 (36,014 

	
 ) 

	
   

	
 7,278 

	
   

	
   

	
 CHANGES
  DURING THE THREE MONTH PERIOD ENDED MARCH 31, 2005  (unaudited):  

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Warrants issued in connection
with Short - term loan 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 292 

	
   

	
   

	
   

	
   

	
   

	
 292 

	
   

	
 Loss 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (2,423 

	
 ) 

	
   

	
 (2,423 

	
 ) 

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 BALANCE AT MARCH 31, 2005 (unaudited) 

	
   

	
   

	
 259,949 

	
   

	
   

	
 2,401,978 

	
   

	
   

	
 12,071,278 

	
   

	
   

	
 37 

	
   

	
   

	
 43,077 

	
   

	
   

	
 470 

	
   

	
   

	
 (38,437 

	
 ) 

	
   

	
 5,147 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 

	
 

	
 

	
   

	
 (a) Represents an amount less
  than $ 1. 

	
   

	
 (b) Net
  of Issuance expenses of $ 516 thousands 

5

 NEGEVTECH LTD. 

 CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY 

 FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2006 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
 Share capital 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Ordinary

  shares 

	
   

	
 Ordinary

  preferred

  shares 

	
   

	
 Preferred

  shares 

	
   

	
 Amount 

	
   

	
 Additional

  paid-in

  capital 

	
   

	
 warrants 

	
   

	
 Accumulated

  deficit 

	
   

	
 Total 

	
   

	
   

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	
   

	
   

	
 Number of shares 

	
   

	
 U . S .    d o l l a r s    i n    t h o u s a n d s 

	
   

	
   

	
   

	

	
   

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 BALANCE AT JANUARY 1, 2005  (audited)  

	
   

	
   

	
 259,949 

	
   

	
   

	
 2,401,978 

	
   

	
   

	
 12,071,278 

	
   

	
   

	
 37 

	
   

	
   

	
 43,077 

	
   

	
   

	
 178 

	
   

	
   

	
 (36,014 

	
 ) 

	
   

	
 7,278 

	
   

	
   

	
 CHANGES DURING 2005 (audited): 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Warrants issued to a service providers 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 5 

	
   

	
   

	
   

	
   

	
   

	
 5 

	
   

	
 Warrants issued in connection with loans from Plenus 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 1,559 

	
   

	
   

	
   

	
   

	
   

	
 1,559 

	
   

	
 Exercise of Employee stock options 

	
   

	
   

	
 169,000 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (a 

	
 ) 

	
   

	
 7 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 7 

	
   

	
 Issuance of preferred AA shares as a result of equity
consolidation 

	
   

	
   

	
   

	
   

	
   

	
 (832,974 

	
 ) 

	
   

	
 1,072,792 

	
   

	
   

	
 3 

	
   

	
   

	
 (3 

	
 ) 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Interest expense in respect of conversion of convertible loans from
  shareholders 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 1,251 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 1,251 

	
   

	
 Issuance of preferred BB1 and BB2 shares capital (b 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 11,749,363 

	
   

	
   

	
 26 

	
   

	
   

	
 22,115 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 22,141 

	
   

	
 Loss 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (16,111 

	
 ) 

	
   

	
 (16,111 

	
 ) 

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 BALANCE AT DECEMBER 31, 2005 (audited)  

	
   

	
   

	
 428,949 

	
   

	
   

	
 1,569,004 

	
   

	
   

	
 24,893,433 

	
   

	
   

	
 66 

	
   

	
   

	
 66,447 

	
   

	
   

	
 1,742 

	
   

	
   

	
 (52,125 

	
 ) 

	
   

	
 16,130 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 

	
 

	
 

	
   

	
 (c) Represents an amount less
  than $ 1. 

	
   

	
 (b) Net
  of Issuance expenses of $ 859 thousands. 

 The accompanying notes are an integral part of these condensed
financial statements. 

6

 NEGEVTECH LTD. 

 CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS 

 FOR THE THREE MONTH PERIOD ENDED MARCH 31,
2006 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
 Three
  months

  Ended March 31 

	
   

	
 Year ended

  December 31, 

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
 2006 

	
   

	
 2005 

	
   

	
 2005 

	
   

	
   

	
   

	

	
   

	

	
   

	

	
   

	
   

	
   

	
 (Unaudited) 

	
   

	
 (Audited) 

	
   

	
   

	
   

	

	
   

	

	
   

	
   

	
   

	
 U.S.
  dollars in thousands 

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
   

	
 CASH FLOWS FROM OPERATING ACTIVITIES: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Loss for the period 

	
   

	
   

	
 (4,354 

	
 ) 

	
   

	
 (2,423 

	
 ) 

	
   

	
 (16,111 

	
 ) 

	
 Adjustments required to reconcile loss to net cash used in operating
  activities: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Depreciation and amortization 

	
   

	
   

	
 858 

	
   

	
   

	
 214 

	
   

	
   

	
 1,838 

	
   

	
 Accrued severance pay 

	
   

	
   

	
 16 

	
   

	
   

	
 10 

	
   

	
   

	
 392 

	
   

	
 Amortization of debt issuance cost 

	
   

	
   

	
 100 

	
   

	
   

	
   

	
   

	
   

	
 430 

	
   

	
 Deferred stock based compensation 

	
   

	
   

	
 20 

	
   

	
   

	
   

	
   

	
   

	
 5 

	
   

	
 Interest expenses related to convertible loan 

	
   

	
   

	
   

	
   

	
   

	
 71 

	
   

	
   

	
 310 

	
   

	
 Interest expense in respect of conversion of convertible loans from
  shareholders 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 1,251 

	
   

	
 Changes in operating asset and liability items: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Decrease (increase) in trade accounts receivable 

	
   

	
   

	
 (575 

	
 ) 

	
   

	
 225 

	
   

	
   

	
 (2,490 

	
 ) 

	
 Decrease (increase) in other accounts receivable 

	
   

	
   

	
 382 

	
   

	
   

	
 149 

	
   

	
   

	
 (104 

	
 ) 

	
 Increase in inventories 

	
   

	
   

	
 (1,819 

	
 ) 

	
   

	
 (2,877 

	
 ) 

	
   

	
 (9,707 

	
 ) 

	
 Increase (decrease) in trade payables 

	
   

	
   

	
 (821 

	
 ) 

	
   

	
 (347 

	
 ) 

	
   

	
 1,876 

	
   

	
 Increase (decrease) in other accounts payable and accruals 

	
   

	
   

	
 (237 

	
 ) 

	
   

	
 2,571 

	
   

	
   

	
 1,112 

	
   

	
 Increase in customer’s advance and deferred revenues 

	
   

	
   

	
 2,575 

	
   

	
   

	
   

	
   

	
   

	
 550 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
 Net cash used in operating activities 

	
   

	
   

	
 (3,855 

	
 ) 

	
   

	
 (2,407 

	
 ) 

	
   

	
 (20,648 

	
 ) 

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 CASH FLOWS FROM INVESTING ACTIVITIES: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Purchase of fixed assets 

	
   

	
   

	
 (582 

	
 ) 

	
   

	
 (281 

	
 ) 

	
   

	
 (1,303 

	
 ) 

	
 Long-term deposit 

	
   

	
   

	
 (1 

	
 ) 

	
   

	
 (2,297 

	
 ) 

	
   

	
 8 

	
   

	
 Short – term bank deposit 

	
   

	
   

	
   

	
   

	
   

	
 32 

	
   

	
   

	
 32 

	
   

	
 Severance pay funds 

	
   

	
   

	
 (6 

	
 ) 

	
   

	
 (3 

	
 ) 

	
   

	
 (398 

	
 ) 

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
 Net cash used in investing activities 

	
   

	
   

	
 (589 

	
 ) 

	
   

	
 (2,549 

	
 ) 

	
   

	
 (1,661 

	
 ) 

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 CASH FLOWS FROM FINANCING ACTIVITIES: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Short-term bank credit, net 

	
   

	
   

	
   

	
   

	
   

	
 (243 

	
 ) 

	
   

	
 (243 

	
 ) 

	
 Short-term bank loan 

	
   

	
   

	
   

	
   

	
   

	
 4,500 

	
   

	
   

	
   

	
   

	
 Long term loan from other 

	
   

	
   

	
 2,300 

	
   

	
   

	
   

	
   

	
   

	
 7,700 

	
   

	
 Repayment of long term bank loan 

	
   

	
   

	
 (208 

	
 ) 

	
   

	
 (208 

	
 ) 

	
   

	
 (834 

	
 ) 

	
 Proceeds from convertible loan received 

	
   

	
   

	
   

	
   

	
   

	
 2,000 

	
   

	
   

	
 9,404 

	
   

	
 Exercise of Employee stock options 

	
   

	
   

	
 12 

	
   

	
   

	
   

	
   

	
   

	
 7 

	
   

	
 Issuance of share capital, net of share issuance expenses 

	
   

	
   

	
 11,384 

	
   

	
   

	
   

	
   

	
   

	
 7,377 

	
   

	
 Warrant issued in connection with short-term loan 

	
   

	
   

	
   

	
   

	
   

	
 292 

	
   

	
   

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
 Net cash provided by financing activities 

	
   

	
   

	
 13,488 

	
   

	
   

	
 6,341 

	
   

	
   

	
 23,411 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 INCREASE IN CASH AND CASH EQUIVALENTS 

	
   

	
   

	
 9,044 

	
   

	
   

	
 1,385 

	
   

	
   

	
 1,102 

	
   

	
   

	
 BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF
  PERIOD 

	
   

	
   

	
 1,356 

	
   

	
   

	
 254 

	
   

	
   

	
 254 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 BALANCE OF CASH AND CASH EQUIVALENTS AT END OF
  PERIOD 

	
   

	
   

	
 10,400 

	
   

	
   

	
 1,639 

	
   

	
   

	
 1,356 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

 Supplementary information on
operating and financing activities not involving cash flows: 

	
 

	
 

	
 (1) 

	
 During
  2006, an inventory in the amount of $891 thousands was recategorized as fixed
  assets. 

	
 (2) 

	
 During
  2006, the Company issued 5,604,808 Preferred Shares, for a total amount of $13
  million. An amount of $1.1 million was received subsequent to March 31, 2006. 

 The
accompanying notes are an integral part of these condensed financial
statements. 

7

 NEGEVTECH LTD. 

 NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS 

 AS OF MARCH 31, 2006 

 (Unaudited) 

 NOTE 1 – GENERAL: 

	
 

	
 

	
 

	
   

	
 a. 

	
 The interim
  financial statements as of March 31, 2006 and for the three month period then
  ended (hereafter - the interim statements) were drawn up in condensed
  form, in accordance with generally accepted accounting principles applicable
  to interim financial statements. 

	
   

	
   

	
   

	
   

	
   

	
 The interim
  statements do not include all the information and explanations required for
  annual financial statements. Operating results for the three month period
  ended March 31, 2006 are not necessarily indicative of the results of
  operations for the full year. 

	
   

	
   

	
   

	
   

	
 b. 

	
 Following
  are the changes in the exchange rate of the U.S. dollar and the Israeli
  consumer price index during the reported periods: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Exchange rate of one U.S. dollar 

	
   

	
 Israeli consumer price index 

	
   

	
   

	

	
   

	

	
   

	
   

	
 % 

	
   

	
 % 

	
   

	
   

	

	
   

	

	
   

	
 Three months ended March
  31: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 2006 

	
   

	
   

	
 1.3 

	
   

	
   

	
 0.6 

	
   

	
 2005 

	
   

	
   

	
 1.2 

	
   

	
   

	
 (0.6 

	
 ) 

	
   

	
 Year ended December 31, 2005 

	
   

	
   

	
 6.8 

	
   

	
   

	
 2.4 

	
   

 NOTE 2 – LOAN AGREEMENT 

	
 

	
 

	
   

	
 On
  October 13, 2005, The Company signed a loan agreement with Plenus
  Technologies Ltd (“Plenus”) for a 3 years period. According to this
  agreement, the Company can draw up to $10 million during the 3 year loan term.
  The loan will bear interest at an annual rate of Libor + 4% from the
  disbursement date of the principal amount until the date of actual repayment
  thereof. As of March, 31, 2006 the Company draw $10 million. In April 5, 2006
  the Company repaid an amount of $5.5 million. 

	
   

	
   

	
   

	
 As
  consideration for the grant of the loan, the Company granted Plenus a warrant
  exercisable during the term of the warrant, at Plenus election into series
  BB1 Preferred shares at a PPS of $2.3194. The warrant is exercisable at any
  time for a period of 10 years or through the consummation of a realization
  event, as defined. The aggregate exercise price under the new warrant is
  $2,800 thousands. 

	
   

	
   

	
   

	
 The
  Company recorded the estimated fair value of the warrants on the date of the
  grant, as determined using the Black-Scholes option pricing model, as debt
  issuance costs. Such costs are amortized over the loan term as additional
  interest expenses. The estimated fair value of the warrants granted in
  connection with the loan is $1,209 thousands of which $100 thousands was
  recorded as additional interest expense in the three month period ended March
  31, 2006. 

	
   

	
   

	
   

	
 The
  loan is also guaranteed by a first priority fixed charge on all of the
  Company rights in and to its intellectual property and by a floating charge
  on all of its present and future tangible and intangible assets, pari passu
  with the floating charge and fixed charge in favor of Bank leumi 

8

 NEGEVTECH LTD. 

 NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued) 

 AS OF MARCH 31, 2006 

 (Unaudited) 

 NOTE 3 – INVESTMENT AGREEMENT 

	
 

	
 

	
   

	
 In March 23,
  2006, the Company entered into an investment agreement under which the
  Company issued 5,604,808 series “BB-3” Preferred Shares, for a total
  consideration of $13 million, to current and new investors. The number of
  shares includes conversion of 862,292 Series BB-1 Preferred Shares at the
  closing. 

	
   

	
   

	
   

	
 Through
  April 3, 2006, the Company received the total consideration. The terms of
  Series BB-3 Preferred Shares are substantially similar to those of Series
  BB-1 and BB-2 preferred shares. 

	
   

	
   

	
   

	
 Subsequent
  to March 31, 2006, the Company entered into an additional investment
  agreement for the issuance of  254,376
  series “BB-3” Preferred Shares, for a total consideration of $590,000. 

 NOTE 4 – CONTINGENTS LIABILITIES: 

	
 

	
 

	
 

	
   

	
 a. 

	
 In July and
  August 2004, the Company received letters from KLA - Tencor Corporation
  (“KLA”) asserting that the Company’s 302-inspection system makes use of three
  KLA patents U.S. Patent No. 4,805,123, U.S. Patent No. 6,288,780 and U.S.
  Patent No. 6,686,995 and requesting technical information regarding the 302
  system.  In response to these letters,
  the Company has identified certain limitations of the KLA patents that are
  absent from the 302 system.  The
  Company has also requested further clarification of KLA’s claims.  The ‘123’ patent has been previously
  litigated by KLA, and has been determined by the U.S. District Court for the
  Northern District of California to be invalid. The Company disputes KLA’s
  claims, and is attempting to resolve these issues without resorting to
  litigation. No provision was recorded in the financial statements in respect
  of such claim. 

	
   

	
   

	
   

	
   

	
 b. 

	
 On August
  27, 2004, Applied Materials, Inc. filed suit in the U.S. District Court for
  the Northern District of California alleging that the Company’s
  302-inspection system infringes an Applied Materials’ patent (U.S. Patent No.
  5,982,921), and seeking an injunction and unspecified damages.  On October 12, 2004, the Company filed its
  amended answer to Applied Materials’ complaint and also filed counterclaims
  for declaratory judgment of no infringement and invalidity. On June 3, 2005
  Applied Materials, Inc. and Applied Materials Israel filed an amended
  compliant aginst the Company. On June 23, 2005 the Company filed an answer to
  the amended compliant and again filed counterclaims for declaratory judgment
  of non-infringement and invalidity. 

	
   

	
   

	
   

	
   

	
   

	
 On July 14,
  2005, the Court issued an order under the legal doctrine of assignor
  estoppels that prevents the Company from challenging the validity of the ’921 patent in this lawsuit. That order does not prevent the
  Company from challenging the validity of the ’921
  patent in the United States Patent and Trademark Office, however. On June 3,
  2005, the Company filed a request for the reexamination of the ’921
  patent with the USPTO. 

	
   

	
   

	
   

	
   

	
   

	
 On September
  2005, the Uspto granted the Company request to reexamine the ’921 patent. In October 2005, the court stayed the litigation
  on the ’921 patent pending the USPTO reexamination. 

9

 NEGEVTECH LTD. 

 NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued) 

 AS OF MARCH 31, 2006 

 (Unaudited) 

 NOTE 4 – CONTINGENTS LIABILITIES (continued): 

	
 

	
 

	
 

	
   

	
 

	
 On October
  24, 2005 Applied Materials filed a second amended complaint asserting two
  additional patents against Negevtech U.S. Patent Nos. 6,256,093 and
  6,924,891. On November 10, 2005, the Company filed an answer to the second
  amended complaint and filed counterclaims for declaratory judgment of
  non-infringement of each of Applied Materials’ patents, and of invalidity for ‘093
  and 891’
  patents. During December 2005 and upon hearing the Company arguments Applied
  Materials withdrew the ’093 patent and cancelled the claim. 

	
   

	
   

	
   

	
   

	
 

	
 The Company
  disputes Applied Materials’
  claims and intends to defend the lawsuit vigorously. No provision was
  recorded in the financial statements in respect of such claims. 

 NOTE 5 – SHARE-BASED COMPENSATION: 

	
 

	
 

	
 

	
   

	
 

	
 SFAS No. 123(R)
  “Share-Based Payment” (“SFAS 123(R)”) requires the recognition of
  compensation expense in the Condensed Consolidated Statements of Income
  related to the fair value of employee share-based options. Determining the
  fair value of share-based awards at the grant date requires judgment,
  including estimating the expected term that stock options will be outstanding
  prior to exercise, the associated volatility and the expected dividends.
  Judgment is also required in estimating the amount of share-based awards
  expected to be forfeited prior to vesting. If actual forfeitures differ
  significantly from these estimates, share-based compensation expenses could
  be materially impacted. Prior to adopting SFAS 123(R), the Company applied
  Accounting Principle Board (“APB”) Opinion No. 25, and related
  interpretations, in accounting for its stock-based compensation plans. 

	
   

	
   

	
   

	
   

	
 

	
 On January 1, 2006, the
  Company adopted SFAS 123(R) requiring the recognition of compensation expense
  in the Condensed Consolidated Statements of Income related to the fair value
  of its employee share-based options. SFAS 123(R) revises SFAS No. 123
  “Accounting for Stock-Based Compensation” and supersedes APB Opinion No 25
  “Accounting for Stock Issued to Employees”.
  

	
   

	
   

	
   

	
   

	
 

	
 The Company will recognize
  the cost of all employee stock options on a straight-line attribution basis
  over their respective vesting periods, net of estimated forfeitures. The
  Company has selected the modified prospective method of transition;
  accordingly’ prior periods have not been restated. Prior to adopting SFAS
  123(R), the Company applied APB Opinion No. 25, and related Interpretations
  in accounting for its share-based compensation plans. 

	
   

	
   

	
   

	
   

	
 

	
 The Company has issued
  stock options to employees under share-based compensation plans. Stock
  options are issued at the estimated fair value of the common shares, subject to
  a four-year vesting period with a contractual term of 10 years. 

	
   

	
   

	
   

	
   

	
 

	
 Such value is recognized
  as expense over the vesting period of the award adjusted for actual
  forfeitures. For stock option awards, no compensation cost was recognized
  prior to January 1, 2006. 

10

 NEGEVTECH LTD. 

 NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued) 

 AS OF MARCH 31, 2006 

 (Unaudited) 

 NOTE 5 – SHARE-BASED COMPANSATION (continued): 

	
 

	
 

	
 

	
   

	
 Valuation Assumptions 

	
   

	
   

	
   

	
   

	
 

	
 In
  connection with the adoption of SFAS 123(R), the Company estimated the fair
  value of options granted using the Black-Scholes option-pricing model with
  the following assumptions: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
 For options that were granted 

	
   

	
   

	
   

	

	
   

	
   

	
   

	
 2001-2004 

	
   

	
 2005 

	
   

	
 2006 

	
   

	
   

	
   

	

	
   

	

	
   

	

	
   

	
   

	
   

	
   

	
   

	
 Expected
  volatility 

	
   

	
   

	
 0 

	
 % 

	
   

	
   

	
 0 

	
 % 

	
   

	
   

	
 60 

	
 % 

	
   

	
 Risk-free
  rate 

	
   

	
   

	
 2 

	
 % 

	
   

	
   

	
 4 

	
 % 

	
   

	
   

	
 4.6 

	
 % 

	
   

	
 Expected
  term (in years) 

	
   

	
   

	
 4 

	
   

	
   

	
   

	
 4 

	
   

	
   

	
   

	
 6 

	
   

	
   

	
 Expected
  annual forfeiture 

	
   

	
   

	
 10 

	
 % 

	
   

	
   

	
 10 

	
 % 

	
   

	
   

	
 10 

	
 % 

	
   

	
 

	
 

	
 

	
   

	
   

	
 A summary of
  award activity under the stock option plan and changes is presented below: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
 Three months ended 

  March 31, 2006 

	
   

	
 Year ended 

  December 31, 2005 

	
   

	
   

	
   

	

	
   

	

	
   

	
   

	
   

	
 Number 

	
   

	
 Weighted

   average

  exercise

    price  

	
   

	
 Number 

	
   

	
 Weighted

   average

  Exercise

    Price  

	
   

	
   

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	
   

	
   

	
   

	
   

	
 Options outstanding at beginning of period 

	
   

	
   

	
 4,705,726 

	
   

	
 $ 

	
 0.64 

	
   

	
   

	
 2,665,361 

	
   

	
 $ 

	
 0.62 

	
   

	
 Changes during period: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Granted 

	
   

	
   

	
 337,000 

	
   

	
 $ 

	
 0.63 

	
   

	
   

	
 2,289,865 

	
   

	
 $ 

	
 0.63 

	
   

	
 Exercised 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 169,000 

	
   

	
 $ 

	
 0.05 

	
   

	
 Forfeited 

	
   

	
   

	
 (30,000 

	
 ) 

	
 $ 

	
 0.39 

	
   

	
   

	
 (80,500 

	
 ) 

	
 $ 

	
 0.73 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 Options outstanding at end of period 

	
   

	
   

	
 5,012,726 

	
   

	
 $ 

	
 0.64 

	
   

	
   

	
 4,705,726 

	
   

	
 $ 

	
 0.64 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 Options exercisable at end of period 

	
   

	
   

	
 801,125 

	
   

	
 $ 

	
 0.59 

	
   

	
   

	
 959,000 

	
   

	
 $ 

	
 0.59 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

11

 NEGEVTECH LTD.

2005 ANNUAL REPORT 

 NEGEVTECH LTD.

2005 ANNUAL REPORT 

 TABLE OF CONTENTS 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
 Page 

	
   

	
   

	
 AUDITORS’ REPORT 

	
   

	
   

	
 2 

	
   

	
 CONSOLIDATED
  FINANCIAL STATEMENTS - IN U.S. DOLLARS ($): 

	
   

	
   

	
   

	
   

	
 Balance sheets 

	
   

	
   

	
 3 

	
   

	
 Statements of
operations 

	
   

	
   

	
 4 

	
   

	
 Statements of changes in
  shareholders’ equity 

	
   

	
   

	
 5-7 

	
   

	
 Statements of cash
flows 

	
   

	
   

	
 8 

	
   

	
 Notes to financial statements 

	
   

	
   

	
 9-26 

	
   

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	

	
   

	
   

	
   

	

	
   

	
   

	
   

	

	
   

	
   

	
 

	
 

	
   

	
   

	
   

	
    Kesselman & Kesselman 

	
   

	
    Certified Public Accountants (Isr.)

     Trade Tower, 25 Hamered Street

     Tel Aviv 68125 Israel 

     P.O. Box 452 Tel Aviv 61003 Israel 

     Telephone +972-3-7954555 

     Facsimile +972-3-7954556 

 AUDITORS’
REPORT 

 To the shareholders of 

NEGEVTECH LTD. 

 We have audited the consolidated balance sheets of
Negevtech Ltd. (hereafter - the Company) and its subsidiaries as of December 31,
2005 and 2004 and the related consolidated statements of operations, changes in
shareholders’ equity and cash flows for each of the three years in the period
ended December 31, 2005. These financial statements are the responsibility of
the Company’s board of directors and management. Our responsibility is to
express an opinion on these financial statements based on our audits. 

 We conducted our audits in accordance with
auditing standards generally accepted in Israel, including those prescribed by
the Israeli Auditors (Mode of Performance) Regulations, 1973. Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by the Company’s
board of directors and management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion. 

 In our opinion, the consolidated financial
statements referred to above present fairly, in all material respects, the
financial position of the Company as of December 31, 2005 and 2004 and the
results of its operations, changes in its shareholder’s equity and cash flows
for each of the three years in the period ended December 31, 2005, in
conformity with accounting principles generally accepted in the United States
of America. 

  

Kesselman & Kesselman 

Tel-Aviv, Israel 

     April 4, 2006 

 Kesselman & Kesselman
is a member of PricewaterhouseCoopers International Limited, a company limited by guarantee registered in
England and Wales 

2

 NEGEVTECH LTD. 

 CONSOLIDATED BALANCE SHEETS 

(U.S. dollars in thousands) 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
   

	
   

	
   

	
   

	
 December 31 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
 Note 

	
   

	
 2005 

	
   

	
 2004 

	
   

	
   

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 A s s e t s  

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 CURRENT ASSETS: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Cash and cash equivalents 

	
   

	
   

	
 1d 

	
   

	
   

	
   

	
 1,356 

	
   

	
   

	
 254 

	
   

	
 Short-term bank deposits 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 32 

	
   

	
 Accounts receivable: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Trade 

	
   

	
   

	
   

	
   

	
   

	
   

	
 3,219 

	
   

	
   

	
 729 

	
   

	
 Government of Israel 

	
   

	
   

	
   

	
   

	
   

	
   

	
 1,671 

	
   

	
   

	
 1,609 

	
   

	
 Other 

	
   

	
   

	
 9a 

	
   

	
   

	
   

	
 737 

	
   

	
   

	
 288 

	
   

	
 Inventories 

	
   

	
   

	
 9b 

	
   

	
   

	
   

	
 17,212 

	
   

	
   

	
 10,992 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	
   

	
   

	

	
   

	
 T o t a l  current assets 

	
   

	
   

	
   

	
   

	
   

	
   

	
 24,195 

	
   

	
   

	
 13,904 

	
   

	
 NON-CURRENT
  ASSET: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Restricted deposits 

	
   

	
   

	
 9c 

	
   

	
   

	
   

	
 1,199 

	
   

	
   

	
 1,207 

	
   

	
 Long-term prepaid expenses 

	
   

	
   

	
 4b 

	
   

	
   

	
   

	
 722 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	
 T o t a l  non-current assets 

	
   

	
   

	
   

	
   

	
   

	
   

	
 1,921 

	
   

	
   

	
 1,207 

	
   

	
 FIXED
  ASSETS: 

	
   

	
   

	
 2 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Cost 

	
   

	
   

	
   

	
   

	
   

	
   

	
 10,061 

	
   

	
   

	
 5,271 

	
   

	
 L e s s - accumulated depreciation and
  amortization 

	
   

	
   

	
   

	
   

	
   

	
   

	
 3,325 

	
   

	
   

	
 1,487 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 6,736 

	
   

	
   

	
 3,784 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 32,852 

	
   

	
   

	
 18,895 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	
 Liabilities and shareholders’ equity 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 CURRENT
  LIABILITIES: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Short term loans and current maturities of
  long-term bank loan 

	
   

	
   

	
 4 

	
   

	
   

	
   

	
 833 

	
   

	
   

	
 1,076 

	
   

	
 Accounts payable and accruals: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Trade 

	
   

	
   

	
   

	
   

	
   

	
   

	
 4,730 

	
   

	
   

	
 2,854 

	
   

	
 Deferred revenue 

	
   

	
   

	
   

	
   

	
   

	
   

	
 550 

	
   

	
   

	
   

	
   

	
 Other 

	
   

	
   

	
 9d 

	
   

	
   

	
   

	
 2,497 

	
   

	
   

	
 1,385 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	
 T o t a l  current liabilities 

	
   

	
   

	
   

	
   

	
   

	
   

	
 8,610 

	
   

	
   

	
 5,315 

	
   

	
 LONG-TERM
  LIABILITIES: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Accrued severance pay 

	
   

	
   

	
 3 

	
   

	
   

	
   

	
 65 

	
   

	
   

	
 71 

	
   

	
 Loans and other liabilities, net of
  current maturities: 

	
   

	
   

	
 4 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Bank loans 

	
   

	
   

	
   

	
   

	
   

	
   

	
 347 

	
   

	
   

	
 1,181 

	
   

	
 Other liabilities 

	
   

	
   

	
   

	
   

	
   

	
   

	
 7,700 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	
 T o t a l  long - term liabilities 

	
   

	
   

	
   

	
   

	
   

	
   

	
 8,112 

	
   

	
   

	
 1,252 

	
   

	
 CONVERTIBLE LOANS FROM SHAREHOLDERS 

	
   

	
   

	
 5 

	
   

	
   

	
   

	
   

	
   

	
   

	
 5,050 

	
   

	
   

	
 COMMITMENTS
  AND CONTINGENT  LIABILITIES 

	
   

	
   

	
 6 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	
 T o t a l  liabilities 

	
   

	
   

	
   

	
   

	
   

	
   

	
 16,722 

	
   

	
   

	
 11,617 

	
   

	
   

	
 SHAREHOLDERS’
  EQUITY 

	
   

	
   

	
 8 

	
   

	
   

	
   

	
 16,130 

	
   

	
   

	
 7,278 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 32,852 

	
   

	
   

	
 18,895 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	
 

	
 

	
 

	
 

	
   

	
  

	
 ) 

	
   

	
   

	

	
   

	
   

	
   

	
   

	
 ) 

	
   DIRECTORS 

	
   

	
  

	
 ) 

	
   

	
   

	

	
   

	
   

	
   

	
   

	
 ) 

	
   

 The accompanying notes are an
integral part of the consolidated financial statements. 

3

 NEGEVTECH
LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands) 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
   

	
   

	
   

	
 Year ended December 31 

	
   

	
   

	
   

	
   

	
   

	
   

	

	
   

	
   

	
   

	
 Note 

	
   

	
 2005 

	
   

	
 2004 

	
   

	
 2003 

	
   

	
   

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	
   

	
 REVENUES 

	
   

	
   

	
   

	
   

	
   

	
 15,856 

	
   

	
   

	
 3,290 

	
   

	
   

	
   

	
   

	
   

	
 COST
  OF REVENUES 

	
   

	
   

	
   

	
   

	
   

	
 8,918 

	
   

	
   

	
 2,245 

	
   

	
   

	
 615 

	
   

	
   

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 GROSS
  PROFIT (LOSS) 

	
   

	
   

	
   

	
   

	
   

	
 6,938 

	
   

	
   

	
 1,045 

	
   

	
   

	
 (615 

	
 ) 

	
   

	
 RESEARCH
  AND DEVELOPMENT COSTS: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Research and
  development expenses 

	
   

	
   

	
 9g 

	
   

	
   

	
 9,158 

	
   

	
   

	
 7,043 

	
   

	
   

	
 6,650 

	
   

	
 L e s s -
  royalty bearing participation from the Government of Israel 

	
   

	
   

	
   

	
   

	
   

	
 1,524 

	
   

	
   

	
 2,000 

	
   

	
   

	
 2,100 

	
   

	
   

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
 RESEARCH
  AND DEVELOPMENT EXPENSES - net 

	
   

	
   

	
   

	
   

	
   

	
 7,634 

	
   

	
   

	
 5,043 

	
   

	
   

	
 4,550 

	
   

	
   

	
 MARKETING,
  GENERAL AND ADMINISTRATIVE EXPENSES, net 

	
   

	
   

	
 9h 

	
   

	
   

	
 12,932 

	
   

	
   

	
 4,703 

	
   

	
   

	
 2,922 

	
   

	
   

	
 NON-CASH
  EXPENSES IN RESPECT OF CONVERSION OF FOUNDERS’ ORDINARY SHARES INTO ORDINARY
  PREFERRED SHARES 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 6,437 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 OPERATING
  LOSS 

	
   

	
   

	
   

	
   

	
   

	
 13,628 

	
   

	
   

	
 15,138 

	
   

	
   

	
 8,087 

	
   

	
   

	
 FINANCIAL
  EXPENSES (INCOME), net: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 NON-CASH
  EXPENSES IN RESPECT OF CONVERSION OF CONVERTIBLE LOANS FROM SHEREHOLDERS 

	
   

	
   

	
   

	
   

	
   

	
 1,251 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 OTHER
  FINANCIAL EXPENSES (INCOME), net 

	
   

	
   

	
   

	
   

	
   

	
 1,232 

	
   

	
   

	
 188 

	
   

	
   

	
 (123 

	
 ) 

	
   

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 LOSS
  FOR THE PERIOD 

	
   

	
   

	
   

	
   

	
   

	
 16,111 

	
   

	
   

	
 15,326 

	
   

	
   

	
 7,964 

	
   

	
   

	
   

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

 The
accompanying notes are an integral part of the consolidated financial
statements. 

4

 (Continued) - 1 

 NEGEVTECH
LTD.

STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(U.S. dollars in thousands, except share amounts) 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
 Share capital 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Ordinary

  shares 

	
   

	
 Preferred

  shares 

	
   

	
 Amount 

	
   

	
 Additional

  paid-in

  capital 

	
   

	
 Deferred 

   stock-based  

  compensation  

	
   

	
 Warrants 

	
   

	
 Accumulated

  deficit 

	
   

	
 Total 

	
   

	
   

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	

	
   

	
   

	
   

	
 Number  of shares  

	
   

	
 U . S .     d o l l a r s     i n     t h o u s a n d s 

	
   

	
   

	
   

	

	
   

	

	
   

	
   

	
 BALANCE
  AT JANUARY 1, 2003 

	
   

	
   

	
 2,508,392 

	
   

	
   

	
 12,071,278 

	
   

	
   

	
 36 

	
   

	
   

	
 36,588 

	
   

	
   

	
 (31 

	
 ) 

	
   

	
 194 

	
   

	
   

	
 (12,724 

	
 ) 

	
   

	
 24,063 

	
   

	
   

	
 CHANGES
  DURING 2003: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Warrants issued
  to service providers 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 25 

	
   

	
   

	
   

	
   

	
   

	
 25 

	
   

	
 Issuance expenses 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (1 

	
 ) 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (1 

	
 ) 

	
 Exercise of warrants 

	
   

	
   

	
 71,829 

	
   

	
   

	
   

	
   

	
   

	
 (a 

	
 ) 

	
   

	
 53 

	
   

	
   

	
   

	
   

	
   

	
 (53 

	
 ) 

	
   

	
   

	
   

	
   

	
 (a
  

	
 ) 

	
 Exercise of
  employee stock options 

	
   

	
   

	
 2,500 

	
   

	
   

	
   

	
   

	
   

	
 1 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 1
  

	
   

	
 Amortization of
  deferred stock-based compensation 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 24 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 24
  

	
   

	
 Loss 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (7,964 

	
 ) 

	
   

	
 (7,964
  

	
 ) 

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 BALANCE
  AT DECEMBER 31, 2003-forward 

	
   

	
   

	
 2,582,721 

	
   

	
   

	
 12,071,278 

	
   

	
   

	
 37 

	
   

	
   

	
 36,640 

	
   

	
   

	
 (7 

	
 ) 

	
   

	
 166 

	
   

	
   

	
 (20,688 

	
 ) 

	
   

	
 16,148
  

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	

	

	
   

           (a) Represents an amount less than $ 1. 

5

 (Continued) - 2 

 NEGEVTECH LTD. 

 STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY 

 (U.S. dollars in thousands, except share) 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
   

	
 Share capital 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Ordinary
 shares  

	
   

	
   

	
 Ordinary 

    preferred  

    shares  

	
   

	
   

	
 Preferred 

    shares  

	
   

	
   

	
 Amount 

	
   

	
   

	
 Additional

  paid-in 

  capital 

	
   

	
   

	
 Deferred

  stock-based

  compensation 

	
   

	
   

	
 Warrants 

	
   

	
   

	
 Accumulated

  deficit 

	
   

	
   

	
 Total 

	
   

	
   

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	
   

	
   

	
 Number of shares 

	
   

	
   

	
 U . S .    d o l l a r s    i n    t h o u s a n d s 

	
   

	
   

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 BALANCE AT JANUARY 1, 2004 - forward 

	
   

	
   

	
 2,582,721 

	
   

	
   

	
   

	
   

	
   

	
 12,071,278 

	
   

	
   

	
 37 

	
   

	
   

	
 36,640 

	
   

	
   

	
 (7 

	
 ) 

	
   

	
 166 

	
   

	
   

	
 (20,688 

	
 ) 

	
   

	
 16,148 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 CHANGES DURING 2004: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Warrrants issued to service providers 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 12 

	
   

	
   

	
   

	
   

	
   

	
 12 

	
   

	
 Exercise of warrants 

	
   

	
   

	
 53,206 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (a 

	
 ) 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (a 

	
 ) 

	
 Exercise of employee stock options 

	
   

	
   

	
 26,000 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (a 

	
 ) 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (a 

	
 ) 

	
 Conversion of founders 
ordinary shares into

ordinary preferred
  
shares, see note 8a (4) 

	
   

	
   

	
 (2,401,978 

	
 ) 

	
   

	
 2,401,978 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 6,437 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 6,437 

	
   

	
 Amortization of deferred stock-based
compensation 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 7 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 7 

	
   

	
 Loss 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (15,326 

	
 ) 

	
   

	
 (15,326 

	
 ) 

	
   

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
 BALANCE AT DECEMBER 31, 2004 - forward 

	
   

	
   

	
 259,949 

	
   

	
   

	
 2,401,978 

	
   

	
   

	
 12,071,278 

	
   

	
   

	
 37 

	
   

	
   

	
 43,077 

	
   

	
   

	
 -,- 

	
   

	
   

	
 178 

	
   

	
   

	
 (36,014 

	
 ) 

	
   

	
 7,278 

	
   

	
   

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

           (a)
Represents an amount less than $ 1. 

6

 (Concluded) - 3 

 NEGEVTECH LTD. 

 STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY 

 (U.S. dollars in thousands, except share amounts) 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
   

	
 Share capital 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Ordinary shares  

	
   

	
   

	
 Ordinary 

    preferred  

    shares  

	
   

	
   

	
 Preferred 

    shares  

	
   

	
   

	
 Amount 

	
   

	
   

	
 Additional

  paid-in 

  Capital 

	
   

	
   

	
 Warrants 

	
   

	
   

	
 Accumulated

  deficit 

	
   

	
   

	
 Total 

	
   

	
   

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	
   

	
   

	
 Number of shares 

	
   

	
   

	
 U.S. dollars in thousands 

	
   

	
   

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 BALANCE AT JANUARY 1, 2005 - forward 

	
   

	
   

	
 259,949 

	
   

	
   

	
 2,401,978 

	
   

	
   

	
 12,071,278 

	
   

	
   

	
 37
  

	
   

	
   

	
 43,077 

	
   

	
   

	
 178
  

	
   

	
   

	
 (36,014 

	
 ) 

	
   

	
 7,278
  

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 CHANGES DURING 2005: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Warrants issued to a service providers 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 5 

	
   

	
   

	
   

	
   

	
   

	
 5 

	
   

	
 Warrants issued in connection with loan from
Plenus 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 1,559 

	
   

	
   

	
   

	
   

	
   

	
 1,559 

	
   

	
 Exercise of employee stock options 

	
   

	
   

	
 169,000 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (a 

	
 ) 

	
   

	
 7 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 7 

	
   

	
 Issuance of preferred AA shares as a result of
equity consolidation (c) 

	
   

	
   

	
   

	
   

	
   

	
 (832,974 

	
 ) 

	
   

	
 1,072,792 

	
   

	
   

	
 3 

	
   

	
   

	
 (3 

	
 ) 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Interest expense in respect of conversion of
convertible
loans from shareholders 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 1,251 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 1,251 

	
   

	
 Issuance of Preferred BB1 and BB2 Shares capital
(b), (c) 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 11,749,363 

	
   

	
   

	
 26 

	
   

	
   

	
 22,115 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 22,141 

	
   

	
 Loss 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 (16,111 

	
 ) 

	
   

	
 (16,111 

	
 ) 

	
   

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
 BALANCE AT DECEMBER 31, 2005 

	
   

	
   

	
 428,949 

	
   

	
   

	
 1,569,004 

	
   

	
   

	
 24,893,433 

	
   

	
   

	
 66
  

	
   

	
   

	
 66,447 

	
   

	
   

	
 1,742 

	
   

	
   

	
 (52,125 

	
 ) 

	
   

	
 16,130 

	
   

	
   

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

                     (a)
Represents an amount less than $ 1. 
                     (b)
Net of Issuance expenses of $ 859 thousands. 
                     (c)
See note 8a(5) 

 The accompanying notes are an integral part of the
consolidated financial statements. 

7

 NEGEVTECH
LTD.

CONSOLIDATED
STATEMENTS OF CASH FLOWS 

(U.S. dollars in thousands) 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
   

	
 Year ended December 31 

	
   

	
   

	
   

	

	
   

	
   

	
   

	
 2005 

	
   

	
 2004 

	
   

	
 2003 

	
   

	
   

	
   

	

	
   

	

	
   

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 CASH FLOWS FROM OPERATING ACTIVITIES: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Loss for the period 

	
   

	
   

	
 (16,111 

	
 ) 

	
   

	
 (15,326 

	
 ) 

	
   

	
 (7,964 

	
 ) 

	
 Adjustments required to reconcile loss to net cash
used in operating
  activities: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Depreciation and amortization 

	
   

	
   

	
 1,838 

	
   

	
   

	
 649 

	
   

	
   

	
 439 

	
   

	
 Accrued severance pay - net 

	
   

	
   

	
 (6 

	
 ) 

	
   

	
 (32 

	
 ) 

	
   

	
 34 

	
   

	
 Issuance of warrants to service providers 

	
   

	
   

	
 

	
   

	
   

	
 12 

	
   

	
   

	
 25 

	
   

	
 Amortization of debt insurance cost 

	
   

	
   

	
 435 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Amortization of deferred stock based
  compensation in
  respect of options granted to employees 

	
   

	
   

	
 

	
   

	
   

	
 7 

	
   

	
   

	
 24 

	
   

	
 Interest expenses related to convertible
loan 

	
   

	
   

	
 310 

	
   

	
   

	
 50 

	
   

	
   

	
   

	
   

	
 Interest expense in respect of conversion of
convertible loans from
  shareholders 

	
   

	
   

	
 1,251 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
 Non cash expenses in respect of conversion of
founders’
  ordinary-shares into ordinary preferred shares 

	
   

	
   

	
 

	
   

	
   

	
 6,437 

	
   

	
   

	
 

	
   

	
 Changes in operating asset and liability
items: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Decrease (increase) in trade accounts
receivable 

	
   

	
   

	
 (2,490 

	
 ) 

	
   

	
 311 

	
   

	
   

	
 (1,040 

	
 ) 

	
 Decrease (increase) in other accounts
receivable 

	
   

	
   

	
 (104 

	
 ) 

	
   

	
 (910 

	
 ) 

	
   

	
 407 

	
   

	
 Increase in inventories 

	
   

	
   

	
 (9,707 

	
 ) 

	
   

	
 (4,475 

	
 ) 

	
   

	
 (4,127 

	
 ) 

	
 Increase (decrease) in trade payables 

	
   

	
   

	
 1,876 

	
   

	
   

	
 2,263 

	
   

	
   

	
 (12 

	
 ) 

	
 Increase in other accounts payable and
accruals 

	
   

	
   

	
 1,112 

	
   

	
   

	
 798 

	
   

	
   

	
 25 

	
   

	
 Increase (decrease) in deferred revenues 

	
   

	
   

	
 550 

	
   

	
   

	
 (1,040 

	
 ) 

	
   

	
 1,040 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
 Net cash used in operating activities 

	
   

	
   

	
 (21,046 

	
 ) 

	
   

	
 (11,256 

	
 ) 

	
   

	
 (11,149 

	
 ) 

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 CASH FLOWS FROM INVESTING ACTIVITIES: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Purchase of fixed assets 

	
   

	
   

	
 (1,303 

	
 ) 

	
   

	
 (2,978 

	
 ) 

	
   

	
 (321 

	
 ) 

	
 Long-term deposit 

	
   

	
   

	
 8 

	
   

	
   

	
 (1,094 

	
 ) 

	
   

	
 (24 

	
 ) 

	
 Short-term deposit 

	
   

	
   

	
 32 

	
   

	
   

	
 1,503 

	
   

	
   

	
 (1,535 

	
 ) 

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
 Net cash used in investing activities 

	
   

	
   

	
 (1,263 

	
 ) 

	
   

	
 (2,569 

	
 ) 

	
   

	
 (1,880 

	
 ) 

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 CASH
  FLOWS FROM FINANCING ACTIVITIES: 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 Short-term bank credit - net 

	
   

	
   

	
 (243 

	
 ) 

	
   

	
 243 

	
   

	
   

	
 

	
   

	
 Long term bank loan 

	
   

	
   

	
 

	
   

	
   

	
 2,500 

	
   

	
   

	
 

	
   

	
 Long term loan from other 

	
   

	
   

	
 7,700 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
 Repayment of long term bank loan 

	
   

	
   

	
 (834 

	
 ) 

	
   

	
 (486 

	
 ) 

	
   

	
 

	
   

	
 Proceeds from convertible loan received 

	
   

	
   

	
 9,404 

	
   

	
   

	
 5,000 

	
   

	
   

	
   

	
   

	
 Exercise of warrants by a service
providers 

	
   

	
   

	
 

	
   

	
   

	
   

	
 * 

	
   

	
   

	
 * 

	
 Exercise of Employee stock options 

	
   

	
   

	
 7 

	
   

	
   

	
   

	
 * 

	
   

	
 1 

	
   

	
 Issuance of share capital, net of share issuance
expenses 

	
   

	
   

	
 7,377 

	
   

	
   

	
   

	
   

	
   

	
 12,349 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
 Net cash provided by financing activities 

	
   

	
   

	
 23,411 

	
   

	
   

	
 7,257 

	
   

	
   

	
 12,350 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
 INCREASE
  (DECREASE) IN CASH AND CASH EQUIVALENTS 

	
   

	
   

	
 1,102 

	
   

	
   

	
 (6,568 

	
 ) 

	
   

	
 (679 

	
 ) 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 BALANCE
  OF CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 

	
   

	
   

	
 254 

	
   

	
   

	
 6,822 

	
   

	
   

	
 7,501 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 BALANCE
  OF CASH AND CASH EQUIVALENTS AT END OF THE YEAR 

	
   

	
   

	
 1,356 

	
   

	
   

	
 254 

	
   

	
   

	
 6,822 

	
   

	
   

	
   

	

	

	
   

	

	

	
   

	

	

	
   

 Supplementary information on
operating and financing activities not involving cash flows:

During 2005, an
inventory in the amount of $3,487 thousands was recategorized as fixed assets. 

 * Represents an amount less than $1.

The accompanying notes are an integral
part of the consolidated financial statements. 

8

Schedule 2.24  

Negevtech Ltd.

List of Officers, Employees and Consultants [3]

[***]

*** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

Schedule 2.25  

Government Sponsored
Programs  

	1.  	Office
of the Chief Scientist  

	 	
On
April 18, 2000 the OCS approved a grant in the amount of NIS 4,262,066 which was fully
provided to the Company. 

	 	
On
April 3, 2001, the OCS approved an additional grant in the amount of NIS 9,972,714 which
was fully provided to the Company. 

	 	
On
July 15, 2002, the OCS approved an additional grant in the amount of NIS 10,217,368 which
was fully provided to the Company. 

	 	
On
June 10, 2003, the OCS approved an additional grant in the amount of NIS 9,499,968 which
was fully provided to the Company. 

	 	
On
June 13, 2004, the OCS approved an additional grant in the amount of NIS 9,000,000 which
was fully provided to the Company. 

	 	
On
May 2, 2005, the OCS approved an additional grant in the amount of NIS 6,800,000 out of
which an amount of NIS 5,069,553 was provided to the Company. 

	 	
On
June 20 ,2006 the OCS approved an additional grant in the amount of NIS 6,208,568 out of
which an amount of NIS 1,641,307 was provided to the Company. 

	2.  	Fund
for the Encouragement of Marketing Activities  

	 	
On
December 15, 2002, the Fund for the Encouragement of Marketing Activities approved a grant
in the amount of $40,000 which was fully provided to the Company. 

	3.  	Investment
Center  

	 	
On
December 20, 2001 the Company applied for an approved enterprise status from the
Investment Center of the Israeli Ministry of Trade and Industry. Approval was granted on
March 24, 2002. 

	 	
On
October 19, 2004 the Investment Center approved an extension of the plan until March 23,
2005. 

	 	
On
July 27, 2005 the Investment Center approved an extension of the plan until March 23,
2006  

Schedule
2.28  

List of Insurance Policies  

Negevtech maintains the following
valid insurance policies: 

	Medical Insurance Policy	 	The policy covers the medical insurance of Israeli employees during their stay abroad for short periods and for relocation periods
	Professional & Product Liability Insurance Policy	$5,000,000	 
	Directors & Officers Liability Insurance Policy	$5,000,000	 
	Marine Cargo Insurance Policy	$5,000,000	 
	Property in business interruption to cover Negevtech Property	$1,050,000 - $8,000,000	The coverage is for Negevtech Ltd., for more details please see Migdal's Hi-Tech Business Insurance Policy
	Third Party Liability	$5,000,000	 
	Employer Liability	$9,000,000	 
	Employees' Loyalty	$250,000	 
	Electronic Equipment	$50,000 - $700,000	 
	Business and Personal Property Insurance Policy

Commercial Umbrella and Business & Personal Property Insurance policy	$2,500 - $250,000

$5,000,000	The coverage is for Negevtech Inc. and Negevtech Ltd., for more details please See The Hatford's Policy

Schedule 3.5 A  

Venture Capital Fund  

Poalim Ventures Ltd.

Poalim Ventures I Ltd.

Poalim Ventures II L.P.

SVE Star Ventures Enterprises Gmbh & Co. No. IX KG.

Star Management of Investments No. II (2000) L.P.

Star Growth Enterprise, a German Civil Law Partnership (with limitation of liability)

Genesis Partners II, L.D.C.

Genesis Partners II (Israel) L.P.

Wellington Partners Ventures III Technology Fund L.P

Amadeus III

Amadeus III Affiliates Fund LP

Schedule 3.5 B  

Non Israeli Resident  

Intel Atlantic, Inc. 

Schedule 4.5  

	
 

	
 

	
 

	

	
 

	
Doron Cohen

  Tali Yaron-Eldar

  Shirin H. Herzog* 

  Gladys
  Fleischer (Keroub) 
Moshe Brenner 

  Liora Lotenberg 

  Yifat Mor* 

  Einav Neeman-Gadish  

  Rami Eliyahu  

  Tal Shank  

  Moran Harari  

  Rany Schwartz  

  Michal Yeret  

  Zeev Levy 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
September 28, 2006 

	
 

	
* Also member of the

	
Ref: 739/82

	
 

	
   New York State Bar

	
 

	
 

	
 

TO:     The Investors Listed
on Annex A Hereto 

Dear Sirs:

Re: Negevtech Ltd. 

          We
have acted as counsel to Negevtech Ltd., a company limited by shares, formed and
existing under the laws of the State of Israel (the “Company”), in connection with the Series BB-4 Preferred Share
Purchase Agreement dated September 26, 2006 (the “Share Purchase Agreement”) between the Company and yourselves
and all the Schedules, Exhibits and all ancillary documents related thereto to
which the Company is a party (the “Transaction
Documents”). Capitalized terms used herein and not otherwise defined
herein shall have the meanings assigned to such terms in the Transaction
Documents.

          In
connection with the opinions set forth below, we have examined originals, or
copies certified or otherwise identified to our satisfaction, of such
documents, corporate records, certificates and other instruments as we have
deemed necessary or appropriate for the purpose of this opinion. In our
examination, we have assumed the due execution and delivery of documents by the
parties (other than the Company) thereto (pursuant to due authorization), the
genuineness of all signatures, the authenticity of all documents submitted to
us as originals, the conformity to original documents of all documents
submitted to us as certified, conformed or photostatic copies and the
authenticity of the originals of such latter documents and legal capacity of
all signatories to such documents.

          The
opinions hereinafter expressed are qualified to the extent that the validity or
enforceability of any of the agreements, documents or obligations referred to
herein may be limited by, subject to or affected by applicable bankruptcy,
insolvency, reorganization, moratorium or other laws relating to or affecting
the rights of creditors generally, or by statutory or decisional law concerning
recourse by creditors to security in the absence of notice and hearing, or by general
equitable principles, or by the discretionary powers of any court or
administrative body. We do not express any opinion herein as to the
availability of any equitable or other specific remedy, including specific
performance, upon breach of any of the agreements, documents or obligations
referred to herein.

Cohen, Cohen, Yaron-Eldar &
Co.

          Insofar
as this opinion relates to factual matters, information with respect to which
is in possession of the Company, we have relied (without independent
investigation) upon the representations by the Company in the Transaction
Documents and on representations or certificates of, or communications with
directors, officers, employees or representatives of the Company and certain
public officials. Except as expressly set forth in this opinion, we have not
undertaken any independent investigation to determine the existence or absence
of such facts. Apart from an examination of the public records of the Israeli
Registrar of Companies, we have not examined any records of any court,
administrative tribunal or other similar entity in connection with our opinions
expressed herein. Except to the extent expressly set forth herein, we have not
undertaken any independent investigation to determine the existence or absence
of any fact, and no inference as to our knowledge of the existence or absence
of any fact should be drawn from our representation of the Company or the
rendering of the opinion set forth below. In using the term “knowledge” or any
variation thereof with respect to the existence or absence of facts we rely
solely on representations, certificates or communications as aforesaid and
indicate that during the course of our representation of the Company, no
information has come to our attention that has given us actual knowledge of the
existence or absence of such facts, and such terms refer to the current actual
knowledge of the attorneys of this firm who have worked on matters for the
Company.

          For
purposes of our opinion in paragraph 1 below, we have relied solely upon the
Certificate of Incorporation and Registration as a Private Company issued by
the Registrar of Companies dated 22.12.91 and upon documents filed and held on
record with the Registrar of Companies.

          For
purposes of our opinion in paragraphs 3 and 4(ii) below, we have relied, inter
alia, on your representations in Section 3 of the Share Purchase Agreement.

          We
do not represent ourselves as being familiar with the laws of any jurisdiction
other than the laws of the State of Israel. Accordingly, we express no opinion
in respect to matters governed by or construed in accordance with the laws of
any jurisdiction other than the laws of the State of Israel.

          Based
upon and subject to the foregoing, we are of the opinion that other than as set
forth in the Transaction Documents:

	
 

	
 

	
1.

	
The Company is a company limited by shares, duly
  incorporated and validly existing under the laws of the State of Israel. The
  Company has all requisite corporate power and authority to own and operate
  its properties and assets and to carry on its business as, to our knowledge,
  it is presently conducted.

	
 

	
 

	
2.

	
The Company has all the requisite corporate power and
  authority to execute, deliver and perform the Transaction Documents and to
  perform its obligations set forth therein. The Company has the requisite
  corporate power and authority to offer, issue and sell the Issued Shares to
  be sold to you pursuant to the Share Purchase Agreement.

	
 

	
 

	
3.

	
Each of the Transaction Documents has been duly
  authorized by all necessary corporate action on the part of the Company, has
  been executed and delivered by duly authorized officers of the Company and
  constitutes a legal, valid and binding obligation of the Company, enforceable
  against the Company in accordance with its terms. No other corporate act or
  proceeding on the part of the Company is necessary for the execution of the
  Transaction Documents and/or the fulfillment of the Company’s obligations
  under the Transaction Documents.

	
 

	
 

- 2 -

Cohen, Cohen, Yaron-Eldar & Co.

	
 

	
 

	
4.

	
The execution and delivery by the Company of the
  Transaction Documents, the issue and sale of the Issued Shares and the
  performance by the Company of its obligations under the Transaction Documents will not conflict with, constitute
  a violation of, result in a breach of any provision of, or constitute a
  default under, (i) the Memorandum or Articles of Association of the Company;
  or (ii) any applicable statute, rule or regulation to which the Company is
  subject, including applicable Israeli securities laws, or (iii) those
  Material Agreements (as defined in Section 2.10(c) of the Share Purchase
  Agreement) listed as numbers 34, 35 and 36 in the list of Material Agreements
  referenced to Section 2.10 of the Schedule of Exceptions to the Share
  Purchase Agreement; or (iv) any judgment, decree or order known to us to
  which the Company is a party or by which it is bound, except in relation to
  subsections (ii), (iii) and (iv) above for such conflicts, violations,
  breaches or defaults that are not reasonably likely to have a material
  adverse effect on the Company and the ability of the Company to perform its
  obligations under the Transaction Documents. Compliance by the Company with
  the terms of the Transaction Documents does not require the consent or
  agreement of any Israeli government entity (other than the Investment Center
  of the Ministry of Industry, Trade and Labor and the Office of the Chief
  Scientist, the approval in principle of both have been obtained, as set forth
  in the Schedule of Exceptions), nor does it require a filing with any Israeli
  government entity (other than the Registrar of Companies, the Investment
  Center of the Ministry of Industry, Trade and Labor and the Office of the
  Chief Scientist).

	
 

	
 

	
5.

	
The Issued Shares being purchased by you once issued
  and paid for in full in accordance with the provisions of the Share Purchase
  Agreement and the Amended Articles, will be duly and validly issued, fully
  paid and non-assessable, and, to the best of our knowledge, not issued in violation
  of any pre-emptive rights, and, to the best of our knowledge, you will hold
  such shares free and clear of any liens, security interests, pledges or
  charges in favor of the Company, except as set forth in the Transaction
  Documents. Upon conversion in accordance with the Amended Articles of the
  Issued Shares being purchased by you when fully paid, the Ordinary Shares
  into which the Issued Shares are convertible will be duly authorized, validly
  issued, fully paid, and non assessable, and, to the best of our knowledge,
  will not be issued in violation of any preemptive rights existing as of the
  date hereof.

	
 

	
 

	
6.

	
As of the Closing, the authorized share capital of
  the Company is NIS 950,001 divided into six (6) classes of shares: 53,000,060
  Ordinary Shares, nominal value NIS 0,01 each, 15,000,000 Series AA Preferred
  Shares, nominal value NIS 0.01 each, 12,137,708 Series BB-1 Preferred Shares,
  nominal value NIS 0.01 each, 4,000,000 Series BB-2 Preferred Shares, nominal
  value NIS 0.01 each, 5,862,292 Series BB-3 Preferred Shares, nominal value
  NIS 0.01 each and 5,000,040 Series BB-4 Preferred Shares, nominal value NIS
  0.01 each. Based on a review of the Company’s records and shareholder
  register, the issued and outstanding share capital of the Company immediately
  prior to the Closing and the changes in the Company’s share capital is
  469,449 Ordinary Shares, nominal value NIS 0.01 each, 1,569,004
  Ordinary-Preferred Shares, nominal value NIS0.01 each, 13,144,070 Series AA
  Preferred Shares, nominal value NIS 0.01 each, 8,152,256 Series BB-1
  Preferred Shares, nominal value NIS 0.01 each, 3,597,106 Series BB-2
  Preferred Shares, nominal value NIS 0.01 each and 5,859,274 Series BB-3
  Preferred Shares, nominal value NIS 0.01 each. All such issued and
  outstanding shares have been duly authorized, validly issued, and to the best
  of our knowledge, are free of any liens or encumbrances in favor of the
  Company, except as set forth in the Transaction Documents. To the best of our
  knowledge on the basis of our review of the documents provided to us by the
  Company (except with respect to options granted pursuant to the Company’s
  share option plans and shares issued upon exercise thereof, in respect of
  which we have relied solely on representations made by certain officers of the
  Company), and except as disclosed in the Transaction Documents, there are
not as of the date hereof, any outstanding or
  authorized subscriptions, options, warrants, calls, rights, commitments
  (including conversion or pre-emptive rights), or any other agreements of any
  character directly obligating the Company to issue (a) any additional shares,
  except that we express no opinion as to the number of shares issuable in
  respect of the anti-dilution rights of any of the classes of shares of the
  Company in connection with the Share Purchase Agreement or as a result of the
  issuance of the Issued Shares; or (b) any securities convertible into, or
  exchangeable for, or evidencing the right to subscribe for, any shares. To the
  best of our knowledge, except as disclosed in the Transaction Documents, the
  Company has not adopted or authorized any plan for the benefit of its
  officers, employees, or directors which requires or permits the issuance,
  sale, purchase, or grant of any shares of the Company’s share capital or any
  securities convertible into, or exercisable or exchangeable for, or
  evidencing the right to subscribe for any such shares.

- 3 -

Cohen, Cohen, Yaron-Eldar & Co.

	
 

	
 

	
7.

	
All necessary corporate proceedings have been taken
  to adopt the Amended Articles as they appear in Exhibit A of the Share
  Purchase Agreement, and such Amended Articles were validly adopted.

	
 

	
 

	
8.

	
Except as set forth in the Transaction Documents, we
  do not know of any civil, criminal or arbitration proceedings pending before
  any court or administrative agency to which the Company is party, nor is
  there in any investigation pending or threatened against the Company being
  handled by us.

This opinion is being furnished only to you and is
solely for your benefit in connection with the Transaction Documents. This
opinion may not be relied upon by you for any other purpose nor may this
opinion be provided to or relied upon by any other person or entity or
published, quoted or otherwise used for any other purpose without our prior
written consent. This opinion is based on the law (and the interpretations
thereof) and facts existing as of the date hereof. We disclaim any obligations
to advise you of any changes therein that may be brought to our attention after
the date hereof. Please note that we are opining only as to the matters
specifically and expressly set forth herein and no opinion should be inferred
as to any other matters.

	
 

	
 

	
 

	
 

	
Sincerely,

	
 

	
 

	
Liora
  Lotenberg, Adv. 

  Cohen, Yaron-Eldar, Herzog & Co. 

  Law Offices

	
 

- 4 -

Cohen, Cohen, Yaron-Eldar & Co.

SCHEDULE A

List of Investors

Investor

SVE Star Ventures Enterprises GmbH & Co. No. IX KG.

Star Management of Investments No. II (2000) L.P.

Star Growth Enterprise, a German Civil Law Partnership (with limitation of
Liability)

Poalim Ventures Ltd.
Poalim Ventures I Ltd.
Poalim Ventures II L.P.
Genesis Partners II, L.D.C.

Genesis Partners II (Israel) L.P.

Intel Atlantic, Inc.

Wellington Partners Venture III Technology Fund L.P.

Amadeus III
Amadeus III Affiliates Fund LP

- 5 -

Schedule 4.10  

Officer Certificate  

	To:  	The
Investors Listed on Schedule A hereto (the "Investors")  

	From:  	Arnon
Gat - chief executive officer of Negevtech Ltd. (the "Company")  

	Re:  	Officer's
Certificate Pursuant to Section 4.10 to the Series BB-4 Preferred Share
Purchase Agreement by and between the Company and the Investors dated
September 26, 2006 (the "Agreement")  

I, the undersigned, in my capacity as
chief executive officer of the Company, hereby certify the following: 

	1.  	The
representations and warranties contained in Section 2 of the Agreement are
               true as of the date hereof. 

	2.  	The
Company has performed and complied with all the agreements, obligations and
               conditions contained in the Agreement that are required to be performed or
               complied with on or before the Closing (as defined in the Agreement). 

	3.  	There
has been no material adverse change in the financial or business condition
               of the Company from the date of the Agreement until the date hereof. 

	4.  	As
of the date hereof, there is no action, suit, or proceeding pending or
               threatened before any court or quasi-judicial or administrative agency of
any                state, municipal, or foreign jurisdiction or before any arbitrator
wherein an                unfavorable injunction, judgment, order, decree, ruling, or
charge would: (i)                prevent consummation of any of the transactions
contemplated by the Agreement;                (ii) cause any of the transactions
contemplated by the Agreement to be rescinded                following consummation 

IN WITNESS WHEREOF, I have
executed this certificate on this __ day of Septmber 2006.  

			——————————————

Chief Executive Officer of Negevtech Ltd.

Schedule 8.3  

Broker’s Fee  

Bear, Stearns & Co. Inc. is
entitled to a cash fee equal to 7% (plus VAT if applicable) of the amount of equity (or
equity-linked) that Amadeus III and Amadeus III Affiliates Fund LP will actually invest in
the Company. 

	
   

  
	
  Schedule
  of Exceptions

  
	
   

  
	
  Corresponding to the

  
	
   

  
	
  PREFERRED SHARE PURCHASE AGREEMENT

  
	
   

  
	
  Dated as of September 26, 2006

  
	
   

  
	
  By and Among

  
	
   

  
	
  Negevtech Ltd.

  
	
   

  
	
  And

  
	
   

  
	
  Several Investors

  
	
   

  
	
  

  

 The following information in
any of the sections is provided for the purposes of disclosure pursuant to the
Series BB-4 Preferred Share Purchase Agreement (the “Series BB-4 SPA”) only, and does not grant, and should not be
interpreted as granting, any rights to any third parties. Each Section is
intended to relate to the corresponding Section of the Series BB-4 SPA. Certain
disclosure information may be categorized in one section and not another. When
the same disclosure information would be required in more than one section of
these Disclosure Schedules, the Company has included the disclosure information
in each section or provided an appropriate cross-reference to the section in
which the disclosure is contained, except where the relevancy of such
disclosure would be readily apparent. 

 All capitalized terms used
in any of the Sections and not otherwise defined shall have the meanings
assigned to them in the Series BB-4 SPA. 

 Unless otherwise indicated,
all information included is provided as of the date of the Series BB-4 SPA. 

 General Note: The investors’
due diligence, conducted by Amadeus, referred, per Amadeus’s request, only to
events which occurred following September 2005 (Poalim round) and therefore the
Company has not provided Amadeus with due diligence material dated prior to
September 2005 (this note refers also to Section 2.15 of the Series BB-4 SPA). 

	
   

  	
   

  	
   

  
	
   Section 2.1: 

  	
   The Company does not have
  a business license (“Rishayon Esek”).
  The Company believes that the lack of such license is not reasonably likely
  to have a Material Adverse Effect on its business. 

  
	
     

  	
     

  	
     

  
	
   Section 2.2: 

  	
   The Company’s outstanding
  shares confer upon their holders certain pre­emptive rights, anti-dilution
  rights and registration rights as set forth in the Company’s Articles of
  Association in effect prior to Closing (the “Current Articles”),the
  Shareholders Rights Agreement dated September 13, 2005 as amended on March
  22, 2006 (the “SRA”) and the
  Second Amendment of the Transition Agreement dated September 13, 2005 (the “Second Amendment”).Following the
Closing, any pre­emptive
  rights, anti-dilution rights and registration rights attached to the
  Company’s shares or granted to holders of such shares shall be set forth in
  the SRA (as amended by the Second Amendment thereto) and the Amended Articles
  (all as defined in the Series BB-4 SPA). 

  
	
     

  	
     

  	
     

  
	
     

  	
   The outstanding
  Ordinary-Preferred Shares confer upon their holders certain rights as set
  forth in the Current Articles and in the Second Amendment to the Transition
  Agreement entered into between the Company, Dr. Gadi Neumann and Mr. David
  Alumot (the “Founders” and, including the amendments thereto,
  the “Transition Agreement”). Dr. Gadi Neumann is also a director of
  the Company and it is contemplated that he will resign from his directorship
  as of the Closing. Certain of these rights will be amended as provided for in
  the Series BB-4 SPA, in the Second Amendment to Shareholders Rights Agreement
  and in the Amended Articles (as defined therein). 

  

- 2 -

	
   

  	
   

  	
   

  
	
     

  	
   Pursuant to the terms of
  the Employment Agreement and the Option Agreement entered into by the Company
  and Arnon Gat, the Company’s CEO and a director of the Company, in December
  2004 (collectively, “Arnon’s Agreements”),
  Arnon Gat is entitled to certain acceleration rights as set forth therein.
  Mr. Gat was also entitled to certain anti-dilution rights that were fully
  granted, as set forth in the list of security holders of the Company
  (Schedule 2.2 to the Series BB-4 SPA). 

  
	
     

  	
     

  	
     

  
	
     

  	
   Pursuant to the terms of
  Warrants issued on January 14, 2005, July 18, 2005 and November 6, 2005 to
  Plenus Technologies Ltd., exercisable, in accordance with their terms, into
  1,556,437 Series BB-1 Preferred Shares (“Plenus”
  and the “Plenus Warrants”,
  respectively), the shares issuable upon exercise of the Plenus Warrants
  confer upon the holders thereof certain pre-emptive rights and registration
  rights. 

  
	
     

  	
     

  	
     

  
	
     

  	
   The Preferred Shares and
  the Ordinary-Preferred Shares of the Company may be converted into Ordinary
  Shares of the Company as set forth in the Current Articles. In connection
  with the Closing, the Ordinary-Preferred Shares will be converted into
  Ordinary Shares and the Ordinary Shares and sold to Amadeus and such Ordinary
  Shares held by Amadeus shall be converted into Series BB-4 Preferred Shares.
  Following the Closing, the Series AA, BB-1, BB-2, BB-3 and BB-4 Preferred
  Shares of the Company may be converted into Ordinary Shares of the Company as
  set forth in the Amended Articles. 

  

- 3 -

	
   

  	
   

  	
   

  
	
     

  	
   See Schedules 2.2 and
  2.2(a) to the Series BB-4 SPA (including the footnotes set forth therein). 

  
	
     

  	
     

  	
     

  
	
     

  	
   Proxies were executed in
  favor of the trustees under the Company’s Option Plans by all grantees under
  such Plans. 

  
	
     

  	
     

  	
     

  
	
     

  	
   The 32,769 warrants to
  service providers are comprised of the following warrants: 

  
	
     

  	
     

  	
     

  
	
     

  	
   Irit Cohen - a warrant to
  purchase 7,015 Ordinary Shares; 

  
	
     

  	
   Doron Cohen - a warrant to
  purchase 7,015 Ordinary Shares; 

  
	
     

  	
   Giora Lentz - a warrant to
  purchase 10,923 Ordinary Shares; 

  
	
     

  	
   Yuval Horn - a warrant to
  purchase 3,507 Ordinary Shares; 

  
	
     

  	
   Doron Cohen - David Cohen,
  Law Offices - a warrant to purchase 4,309 Ordinary Shares. 

  
	
     

  	
     

  	
     

  
	
     

  	
   The 238,000 Ordinary
  Shares held by EH Lerner, CPA (trustee under the Company’s IL Share Option
  Plan) are a result of the exercise by the following ex-employees of the
  Company: 

  
	
     

  
	
     

  	
   Doron Schlumm - exercised
  2,500 options; 

  
	
     

  	
   Hava Shapira - exercised
  1,000 options; 

  
	
     

  	
   Shai Silberstein -
  exercised 20,000 options; 

  
	
     

  	
   Shula Mazor - exercised
  5,000 options; 

  
	
     

  	
   Offer Saig - exercised
  1,000 options; 

  
	
     

  	
   Ran Yam - exercised 5,000
  options; 

  
	
     

  	
   Mark Wagner - exercised
  160,000 options; 

  
	
     

  	
   Tidhar Mor - exercised
  3,000 options. 

  
	
     

  	
   Silvi Levi - exercised
  18,750 options. 

  
	
     

  	
   Shiri Bloom - exercised
  8,250 options. 

  
	
     

  	
   Miri Ofir - exercised
  3,000 options. 

  
	
     

  	
   Ran Zaslavski - exercised
  3,000 options. 

  
	
     

  	
   Shay Cohen - exercised
  7,500 options. 

  
	
     

  	
     

  	
     

  
	
     

  	
   Five additional employees
  of the Company exercised options as follows: Gidon Samuels (1,500), Merav
  Arzi (3,000), Noam Dotan (90,000), Dalia Harel (750), and Ilan Moshe (9,000
  options). Such exercises and the issuance of Ordinary Shares in connection
  therewith were not yet reported to the Companies Registrar and are not
  reflected in Eli Lerner’s holdings as set forth in Schedule 2.2 of the Series
  BB-4 SPA. 

  
	
     

  	
     

  	
     

  
	
   Section 2.3: 

  	
   Subsection
  (a) 

  
	
     

  	
   All grantees under the
Company’s Share Ownership and Option Plan (2001, as amended 2003 & 2004
& 2005 & 2006) (the “IL Plan”) have provided Mr. Eliahu Lerner and/or
Mr. Yehuda Zviel with a proxy for the exercise of all rights granted to them
with respect to their shares and options, including voting rights, until the
consummation of an IPO. All grantees under the Company’s Employee Share
Option Plan (2002, as amended 2003 & & 2004 & 2005 & 2006)
(the “US Plan”) have provided Wilson, Sonsini, Goodrich & Rosati with a
proxy for the exercise of all rights granted to them with respect to their
shares and options, including voting rights, until the consummation of an
IPO.  

  

- 4 -

	
   

  	
   

  	
   

  
	
     

  	
   See also the Current
  Articles, the Series BB-1/2 SPA, the Series BB-3 SPA and the SRA, with
  respect to appointment of directors and observers. 

  
	
     

  	
     

  	
     

  
	
     

  	
   During the Term of the
  Plenus Loan Agreement, Plenus is entitled to nominate a non-voting observer
  to the Board of Directors of the Company. 

  
	
     

  	
     

  	
     

  
	
     

  	
   Pursuant to the Intel Side
  Agreement dated July 31, 2002, Intel is entitled to appoint a non-voting
  observer to the Board of Directors of the Company and all committees thereof. 

  
	
     

  	
     

  	
     

  
	
     

  	
   Subsection
  (b) 

  
	
     

  	
   The Company has contracted
  to provide its directors and the directors of its wholly-owned subsidiary,
  Negevtech, Inc. (the “Subsidiary”),with Directors and Officers liability
  insurance with a coverage limit of US$5 million. 

  
	
     

  	
     

  	
     

  
	
     

  	
   The Company provided its
  directors with Indemnification and Release Letters (whereby, inter alia, the
  Company released them from any liability due to a breach of their duty of
  care to the Company) with respect to acts or omissions taken or not taken in
  their capacity as directors and officers of the Company. In addition, the
  Founders and Arnon Gat received complementary Indemnification and Release
  Letters as Service Providers of the Company. 

  
	
     

  	
     

  	
     

  
	
     

  	
   Haim Russo (previously a
  director of the Company) and Rafi Yizhar, (currently a director of the
  Company), were granted options to purchase Ordinary Shares of the Company,
  according to Option Agreements dated December 31, 2002 (Haim Russo - 10,000
  options and Rafi Yizhar -20,000 options). The Option Agreement with Haim
  Russo was amended in order to extend the exercise period his options in
  December 2004 and again in May 2006. In June 2006, the Company granted Rafi
  Yizhar an additional option to purchase 40,000 Ordinary Shares. 

  
	
     

  	
     

  	
     

  
	
     

  	
   The Company is a party to
  the Transition Agreement (as amended) with the Founders. 

  
	
     

  	
     

  	
     

  
	
     

  	
   The Company is a party to
  Arnon’s Agreements and the Company’s US Subsidiary is a party to a Services
  Agreement with AGS Associates LLC, a limited liability company registered
  under the laws of Delaware (wholly-owned by Arnon Gat) dated December 2004. 

  

- 5 -

	
   

  	
   

  	
   

  
	
     

  	
   In addition to the
  foregoing, the Company entered into employment agreements with each of the
  following officers of the Company (and with respect to Glyn, Roi, Markus and
  Yanki - of a subsidiary of the Company): 

  
	
     

  	
     

  	
     

  
	
     

  	
  t

  	
   Rivi Sherman, dated
  September 23, 2003 as amended on November 1, 2003 and February 18, 2005; 

  
	
     

  	
     

  	
     

  
	
     

  	
  t

  	
   Michal Rozenkrantz, dated
  December 15, 2004; 

  
	
     

  	
     

  	
     

  
	
     

  	
  t

  	
   Moti Gatenio, dated June
  7, 2001, as amended on August 1, 2003, on January 1, 2005 and on January 1,
  2006; 

  
	
     

  	
     

  	
     

  
	
     

  	
  t

  	
 Oz Desheh, dated April 5,
  2004, as amended on January 1, 2005, on April 1, 2005 and on January 1, 2006;
  

  
	
     

  	
     

  	
     

  
	
     

  	
  t

  	
   Yuval Levin, dated
  September 9, 2002, as amended effective as of April 1, 2005; 

  
	
     

  	
     

  	
     

  
	
     

  	
  t

  	
   Dvir Harmelech, dated
  August 2, 2005; 

  
	
     

  	
     

  	
     

  
	
     

  	
  t

  	
   Shmuel Gov, dated February
  15, 2006; 

  
	
     

  	
     

  	
     

  
	
     

  	
  t

  	
   The Company’s US
  Subsidiary entered into an agreement with its officer Glyn Davies, dated
  November 15, 2004; 

  
	
     

  	
     

  	
     

  
	
     

  	
  t

  	
   The Company’s Japan
  Subsidiary entered into an agreement with its officer Roi Shefts, dated
  January 6, 2005; 

  
	
     

  	
     

  	
     

  
	
     

  	
  t

  	
   The Company’s German
  Subsidiary entered into an agreement with its officer Markus Kindler, dated
  May 17, 2005; 

  
	
     

  	
     

  	
     

  
	
     

  	
  t

  	
   The Company’s Taiwan
  branch entered into an agreement with its officer Yanki Avni, dated October 31,
  2005, effective as of March 1, 2006. 

  
	
     

  	
     

  	
     

  
	
     

  	
   In addition, the
  abovementioned officers received options to purchase Ordinary Shares of the
  Company pursuant to Option Agreement with each such officer. 

  
	
     

  	
     

  	
     

  
	
     

  	
   The officers of the
  Company are rewarded annually in accordance with the Company’s Management
  Bonus Plan (see reference to Section 2.24 below). 

  
	
     

  	
     

  	
     

  
	
     

  	
   The Company is considering
  engaging a high-level local executive as the chairman of its Korean presence. 

  
	
     

  	
     

  	
     

  
	
   Section 2.4: 

  	
   The Company’s Singapore
  subsidiary registered a branch in Taiwan. 

  
	
     

  	
     

  	
     

  
	
     

  	
   The Company’s Singapore
  subsidiary registered a subsidiary in Korea, Negevtech Korea Co., Ltd. 

  
	
     

  	
     

  	
     

  
	
     

  	
   The Company is not a
  participant in any registered partnership or joint venture. The Company is
  not participating in any other partnership, joint venture or business
  association, other than those listed on the List of Material Agreements
  hereof. 

  

- 6 -

	
   

  	
   

  	
   

  
	
   Section 2.5: 

  	
   The Company received the
  approval in principle of the Office of the Chief Scientist of the Ministry of
  Industry, Trade and Labor (“OCS”)
  and the Investment Center of the Ministry of Industry, Trade and Labor (the “Investment Center”) for the current
investment of the
  Investors. 

  
	
     

  	
     

  	
     

  
	
     

  	
   Pursuant to the letters
  received by the Company from the OCS and Investment Center, in order to
  receive the final approval of the Investment Center and the OCS, the Company
  must provide them with a lawyer/accountant approval with respect to the new
  ownerships composition. In addition, the Company must provide the OCS with
  undertakings signed by each foreign investor to comply with the provisions of
  the Research Law (as defined below). 

  

- 7 -

	
   

  	
   

  	
   

  
	
   Section 2.7: 

  	
   (a) 

  	
   In July and August 2004
  and in March 2005, the Company received letters from KLA-Tencor asserting
  that its 302 inspection system makes use of five KLA patents and requesting
  technical information regarding the 302 system. In response to these letters,
  the Company has identified certain limitations of the KLA patents that are
  absent from the 302 system. The Company also requested further clarification
  of KLA’s claims. 

  
	
     

  
	
     

  	
     

  	
   The Company disputes KLA’s
  claims and is attempting to resolve these issues without resorting to
  litigation, although these assertions by KLA-Tencor could lead to patent
  litigation. On January 30, 2006 the Company provided KLA with Mr. Gadi
  Nuemann’s declaration that the Company’s tools do not include particular
  claim limitations from KLA’s patents (the content of such declaration was
  agreed between KLA and the Company). There have been no further communications
  from KLA since February 2006. 

  
	
     

  	
     

  	
     

  
	
     

  	
   (b) 

  	
   On August 27, 2004,
  Applied Materials, Inc. filed suit in the U.S. District Court for the
  Northern District of California alleging that the Company’s 302 inspection
  system infringes an Applied Materials’ patent (U.S. Patent No. 5,982,921) and
  seeking an injunction and unspecified damages. On October 12, 2004, the
  Company filed an amended answer to Applied Materials’ complaint and also
  filed counterclaims for declaratory judgment of non-infringement and
  invalidity. The Company disputes Applied Materials’ claims and further
  believes that some or all of the claims of the ‘921 patent are invalid. 

  
	
     

  	
     

  	
     

  
	
     

  	
     

  	
   On June 3, 2005, Applied
  Materials, Inc. and Applied Materials Israel (collectively, “Applied Materials”) filed an amended
  complaint against the Company. On June 23, 2005, the Company filed an answer
  to the amended complaint and again filed counterclaims for declaratory
  judgment of non-infringement and invalidity. On July 14, 2005, the Court
  issued an order under the legal doctrine of assignor estoppel that prevents
  the Company from challenging the validity of the ‘921 patent in this lawsuit.
  The Company is not barred, however, from seeking reexamination of the ‘921
  patent in the United States Patent and Trademark Office (“PTO”). 

  
	
     

  	
     

  	
     

  
	
     

  	
     

  	
   On June 3, 2005, the
  Company filed with the PTO a request for reexamination of the ‘921 patent
  seeking reexamination of certain claims of the ‘921 patent. On June 10, 2005,
  Applied Materials asserted against the Company additional claims of the ‘921
  patent that were not specifically addressed in the Company’s request for
  reexamination. On August 22, 2005, the Company filed with the PTO a second
  request for reexamination addressing the additional asserted claims. In
  September 2005, the PTO granted the Company’s first and second request for
  reexamination, finding a “substantial new question of patentability”
  regarding seven of the asserted claims in the ‘921 patent. In October 2005,
  the Court stayed the California litigation on the ‘921 patent pending the
  PTO’s decision on the Company’s second request for reexamination, which
  addresses the four asserted claims that were not specifically addressed by
  the Company’s first request. 

  

- 8 -

	
   

  	
   

  	
   

  
	
     

  	
     

  	
   Following the Court’s stay
  of litigation on the ‘921 patent, Applied Materials asserted two additional
  patents against the Company, U.S. Patent Nos. 6,256,093 and 6,924,891. In
  December 2005, Applied Materials withdrew its claims on the 093 patent,
  which have been dismissed with prejudice. Also in December 2005, Applied
  Materials filed a motion for a preliminary injunction on the ‘891 patent The
  parties stipulated to the terms of a preliminary injunction that terminates
  any prospective exposure under this patent and are now engaged in settlement
  discussions concerning Applied Material’s claim for past demages. The Company
  disputes Applied Material’s claim of infringement and if settlement
  discussions are unsuccesful, intends to defend the claim. 

  
	
     

  	
     

  	
     

  
	
     

  	
     

  	
   In July 2006 an employee
  of the Company (at that time, later he resigned) complained that his eyes
  were injured during his work in Negevtech’s clean room. The employee went
  through medical examinations which identified that he suffers from sore eyes
  but did not reveal any major damage. To the Company’s knowledge, the employee
  filed forms with request to an industrial accident with the National
  Insurance Agency (***) but the Company has not received any notice with
  respect thereto. 

  

- 9 -

	
   

  	
   

  	
   

  
	
   Section
  2.8: 

  	
   Subsections
  (a), (b), (c) and (b) 

  
	
     

  	
     

  	
     

  
	
     

  	
   On January 2, 2000 TO
  Software Products Ltd. (“TICI”)
  and the Company entered into a Non-Disclosure and Non-Use Agreement (the “TICI NDA”). Under the Cooperation
  Agreement the Company entered into with TICI on February 15, 2000 (the “TICI Cooperation Agreement”), it was agreed
  that TICI would not be precluded from working for and with any other entity
  in the semi conductor industry, so long as the TICI NDA is not breached. 

  
	
     

  	
     

  	
     

  
	
     

  	
   Under the TICI Cooperation
  Agreement the Company was granted a perpetual, worldwide, nonexclusive free
  license to use for any purpose and in any way the TICI Legacy Code, which
  shall remain the sole property of TICI. 

  
	
     

  	
     

  	
     

  
	
     

  	
   The Company has received
and may in the future receive participations through the OCS. According to
the provisions of the Law for the Encouragement of Industrial Research and
Development, 5744-1984 and of Regulations promulgated thereunder (the
“Research Law”) and their applicability to the Company, the following shall
apply: 

  
	
     

  	
     

  	
     

  
	
     

  	
   (a) Upon sales the Company
  is obligated to pay royalties to the State of Israel; 

  
	
     

  	
     

  	
     

  
	
     

  	
   (b) The manufacture of any
  product developed as a result of any project so funded shall take place in
  the State of Israel unless the Research Committee of the OCS pursuant to the
  Research Law otherwise determines, subject to and pursuant to the Research
  Law; and 

  
	
     

  	
     

  	
     

  
	
     

  	
   (c) The know-how derived
  from any project so funded may not be transferred to third parties without
  the approval of the Research Committee of the OCS subject to and pursuant to
  the Research Law. 

  
	
     

  	
     

  	
     

  
	
     

  	
   The Intellectual Property
  required by the Company to conduct its business includes readily and
  commercially available off-the-shelf software. This software is owned by
  third parties, and would require the payment of fees or royalties. 

  
	
     

  	
     

  	
     

  
	
     

  	
   The Company is a party to
  several Evaluation Agreements and Joint Development Agreements with respect
  to the evaluation by existing and potential customers of the Company’s
  products, which include provisions with respect to IP rights created in the
  course of such evaluation and with respect to the possible purchase of the
  Company’s products pending the results of the evaluation. 

  

- 10 -

	
   

  	
   

  	
   

  
	
     

  	
   Please see Section 2.7 for
  patent litigation. 

  
	
     

  	
     

  	
     

  
	
     

  	
   Please see Section 2.18
  with respect to Liens over the Company’s IP. 

  
	
     

  	
     

  	
     

  
	
   [***] 

  	
     

  	
     

  
	
     

  	
    

  
	
     

  	
     

  	
     

  
	
     

  	
   Subsection
  (b) 

  
	
   [***] 

  	
     

  	
     

  
	
     

  	
    

  
	
     

  	
     

  	
     

  
	
     

  	
   Subsection
  (e) 

  
	
     

  	
   6 employees of the
  Company, who terminated their employment with Applied Materials (“AMAT”) and began working for the Company,
  informed the Company that they did not receive severance payments from AMAT
  since AMAT claimed that they breached their non-competition undertaking.
  Neither the Company nor, to the Company’s best knowledge, any of such
  employees have received any written claim or demand from AMAT. The Company
  deposited in the managers insurance plan of 3 of such employees the amount of
  severance payments to which they were entitled in connection with the
  termination of their employment with AMAT and undertook to deposit the
  severance payments to which the other 3 employees were entitled to, if such
  amount will not be paid to them by AMAT. With respect to only one of such
  employees, the Company undertook to provide her with legal representation, if
  AMAT should bring a legal action against her and further undertook to pay up
  to 3 months salary to such employee if she will be legally prohibited to work
  for the Company. 

  
	
     

  	
     

  	
     

  
	
     

  	
   Subsection
  (f) 

  
	
     

  	
   Gili Tamir, a management consultant to the
  Company, signed a confidentiality undertaking but did not sign a
  non-competition and assignment of invention undertaking. 

  
	
     

  	
     

  	
     

  
	
   Section 2.9: 

  	
   The Company does not have
  a business license (“Rishayon Esek”).
  The Company believes that the lack of such license is not reasonably likely
  to have a Material Adverse Effect on its business. 

  
	
     

  	
     

  	
     

  
	
     

  	
   See Section 2.5 for OCS
  and Investment Center approvals. 

  
	
     

  	
     

  	
     

  
	
   Section 2.10: 

  	
   Subsection
  (a) 

  
	
     

  	
   Please see Sections 2.2
  and 2.3 for certain agreements listed therein. 

  
	
     

  
	
     

  	
   Subsection
  (a), (b), (c) and (d) 

  
	
     

  	
   General: 

  
	
     

  	
   (1) 

  	
   Please see reference to
  Sections 2.2 and 2.3 for certain agreements listed therein. 

  

 *** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

- 11 -

	
   

  	
   

  	
   

  
	
     

  	
   (2) 

  	
   The Company signed
  numerous Non-Disclosure Agreements. 

  
	
     

  
	
     

  	
   (3) 

  	
   The Company signed
  undertakings and related documents with the OCS and the Investment Center. 

  
	
     

  
	
     

  	
   (4) 

  	
   The Company entered into
  Recruitment Service Agreements with several companies. 

  
	
     

  
	
     

  	
   (5) 

  	
   The Company entered into
  agreements and undertakings with Bank Leumi, which are detailed below in
  Section 2.18. 

  
	
     

  
	
     

  	
   (6) 

  	
   See reference to
  agreements with Plenus in Section 2.2 and 2.18 and in the list of Material
  Agreements below. 

  
	
     

  
	
     

  	
   (7) 

  	
   The Company entered into
  various agreements with Citibank in connection with the opening of a global
  account with Citibank. 

  
	
     

  
	
     

  	
   (8) 

  	
   The Company was party to
  several SPAs in connection with the issuance of the outstanding Preferred
  Shares of the Company. 

  
	
     

  
	
     

  	
   (9) 

  	
   The Company signed in
  March 2006 an understating for the benefit of Wellington Partners Ventures
  III Technology Fund L.P. for the grant of certain audit rights. 

  
	
     

  
	
     

  	
   (10) 

  	
   The Company signed in
  March 2006 a confidentiality undertaking for the benefit of Intel Atlantic,
  Inc. 

  

- 12 -

	
   

  	
   

  	
   

  
	
     

  	
   Material
  Agreements: please
  refer to the list of Material Agreements below. 

  
	
     

  	
     

  	
     

  
	
     

  	
   Pending
  Purchase Orders: 

  

 [***] 

	
   

  	
   

  
	
     

  	
   Please see reference to
  Section 2.7 for patent litigation. 

  
	
     

  	
     

  
	
   Section 2.11: 

  	
   Please see reference to
  Sections 2.2, 2.3 and the Material Agreements numbered 1, 2, 3, 22, 23, 28,
  33 and 36 in the list of Material Agreements in Section 2.10 for
  related-party transactions/Agreements. 

  
	
     

  	
     

  
	
     

  	
   Star has appointed Ms.
  Yaffa Krindel, Pitango has appointed Mr. Aaron Mankovsky, Orbotech has
  appointed Mr. Amichai Steinberg, Genesis has appointed Mr. Eddy Shalev and
  Poalim has appointed Mr. Eran Gersht as directors of the Company. Rail Yizhar
  was appointed as an industry expert director. Arnon Gat, the Company’s CEO,
  is a director of the Company. Dr. Gadi Neumann is a director of the Company
  and it is contemplated that he will resign from his directorship as of the
  Closing. The Company has not undertaken any independent investigation to determine the existence or absence of any
  interests of such directors or their familiy members. 

  

 *** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

- 13 -

	
   

  	
   

  
	
   Section 2.12: 

  	
   The Company does not have
  a business license (“Rishayon Esek”).
  The Company believes that the lack of such license is not reasonably likely
  to have a Material Adverse Effect on its business. 

  
	
     

  	
     

  
	
     

  	
   See reference to Section
  2.5 with regards to the OCS and Investment Center approvals. 

  
	
     

  	
     

  
	
   Section 2.14: 

  	
   See reference to the
  Material Agreements numbered 4, 5, 13, 19, 23, 29, 33, 36, 44, 46 and 52 in
  Section 2.10 (Material Agreements). 

  
	
     

  	
     

  
	
   Section 2.17: 

  	
   Pursuant to the terms of
  the Plenus Warrants, the shares issuable upon exercise of the Plenus Warrants
  confer upon the holders thereof certain registration rights. 

  
	
     

  	
     

  
	
   Section 2.18: 

  	
   The Company’s respective
  property and assets may be subject to Hens for current taxes and assessments
  not yet due (and which the Company is not aware of), minor imperfections of
  title and encumbrances and minor liens that may exist by operation of law;
  and liens, loans and encumbrances shown in the Company’s Audited Financial
  Statements. 

  
	
     

  	
     

  
	
     

  	
   The Company is under a
  general restriction of the OCS – Please see reference to Section 2.8 and the
  Research Law for more details. 

  
	
     

  	
     

  
	
     

  	
   Bank Leumi 

  
	
     

  	
   The Company received on
  May 24, 2004, a loan in the amount of US$2.5 million from Bank Leumi for the
  purchase of a certain electronic microscope (SEMIV1SION). To secure this loan
  (and any interest thereon) the Company created in favor of Bank Leumi: (a) a
  fixed charge over a deposit currently in an amount of US$347,500; and (b) a
  general first degree floating charge over the Company’s assets. The U.S.
  Subsidiary has provided Bank Leumi with a guarantee with respect to the
  Company’s indebtedness to Bank Leumi and has signed a Security Agreement over
  the microscope in favor of Bank Leumi. In addition, the Company has signed a
  negative pledge in favor of Bank Leumi. In connection with the Plenus loan
  (see below) the Company also created in favor of Bank Leumi a floating charge
  and a fixed charge over the Company’s intellectual property, pan passu with
  Plenus (see letters of undertaking to Bank Leumi dated January 13, 2005 and
  November 6, 2005). The balance of the loan as of September 2006 is
  approximately $550,000. 

  

- 14 -

	
   

  	
   

  
	
     

  	
   Plenus Technologies Ltd. 

  
	
     

  	
   The Company received a
  loan in the amount of US$10 million from Plenus ($4.5 million of which were
  used to repay a previous loan granted to the Company by Plenus). To secure
  this loan (and any interest thereon) the Company created: (a) a general
  first-degree floating charge over the Company’s assets in favor of Plenus,
  Bank Leumi, Golden Gate Bridge Fund L.P (“Golden Gate”), Plenus II L.P, and
  Plenus II (D.S.M) L.P., pari passu with Bank Leumi’s floating charge and
  subject to Bank Leumi’s pledges over the deposit; (b) a fixed charge over the
  Company’s intellectual property in favor of Plenus, Bank Leumi, Golden Gate,
  Plenus II L.P, and Plenus II (D.S.M) L.P., pari passu with Bank Leumi’s fixed
  charge over the Company’s intellectual property, all subject to the terms of
  the Loan Agreement between the Company and Plenus dated October 11, 2005 and
  consummated November 6, 2005. 

  
	
     

  	
     

  
	
   Section 2.21: 

  	
     

  
	
     

  	
   See amendments to
  employment agreements with officers, set forth in reference to Section 2.3
  above. 

  
	
     

  	
     

  
	
     

  	
   See list of open orders in
  reference to Section 2.10. 

  
	
     

  	
     

  
	
     

  	
   See list of Material
  Agreements below for agreements executed following December 31, 2005 

  
	
     

  	
     

  
	
     

  	
   On February 23, 2006 the
  Board approved a Management Bonus Plan for 2006. On September 10, 2006 the
  Board approved Arnon Gat’s 2006 Bonus targets. 

  
	
     

  	
     

  
	
     

  	
   On February 08, 2006 the
  Company granted its employee, Oren Kashi, a loan in the amount of NIS 20,000. 

  
	
     

  	
     

  
	
     

  	
   The Company utilized an
  amount of approximately $1,750,000 from Plenus’s line of credit (in addition
  to the $4.5 million that was used to repay Plenus’s previous loan). 

  
	
     

  	
     

  
	
     

  	
   The Company raised
  approximately $11 million from Wellington Partners Ventures III Technology
  Fund L.P. and existing shareholders in two financing rounds in March and May
  2006. 

  
	
     

  	
     

  
	
     

  	
   The Company issued to
  Tmura - the Israeli Public Service Venture Fund a warrant to purchase up to
  5,000 Ordinary Shares of the Company at an exercise price of $0.63 each, as a
  charitable contribution (reflected in the Cap Table Schedule 2.2). 

  
	
     

  	
     

  
	
   Section 2.22: 

  	
   The Company or its
  Subsidiaries have not made any provision for taxes since neither or them has
  earned any profits up to date. 

  
	
     

  	
     

  
	
   Section 2.24: 

  	
   (a) Certain of the
  Company’s employment compensation arrangements are fixed and do not
  differentiate between compensation for regular hours and overtime work. 

  

- 15 -

	
   

  	
   

  
	
     

  	
   (b) All grantees under the
  US Plan have provided Wilson, Sonsini, Goodrich & Rosati with a proxy for
  the exercise of all rights granted to them with respect to their shares and
  options, including voting rights, until the consummation of an IPO. 

  
	
     

  	
     

  
	
     

  	
   See obligations towards
  former employees of AMAT referred to in Section 2.8. 

  
	
     

  	
     

  
	
     

  	
   On February 23, 2006 the
  Board approved a Management Bonus Plan for 2006. On September 10, 2006 the
  Board approved Arnon Gat’s 2006 Bonus targets. 

  
	
     

  	
     

  
	
     

  	
   The Company agreed with two of its former employees,
  Jeremy Topaz and Shmuel Roth, that they will be able to exercise the options
  granted to them under the Company’s Share Option Plan (5,000 options each)
  following termination of their employment. No specific time limit was agreed
  with respect to such right to exercise. 

  
	
     

  	
     

  
	
   Section 2.26: 

  	
   See Schedule 8.3. 

  

- 16 -

 Material Agreements: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 Number 

	
   

	
   

	
 The Company or its Subsidiary 

	
   

	
   

	
 Name of
  the other party 

	
   

	
   

	
 Title of  Agreement  

	
   

	
   

	
 Effective
  Date 

	
   

	
   

	
 Comments 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 
1. 

	
   

	
   

	
 
Company 

	
   

	
   

	
 
Rami Sher, employee 

	
   

	
   

	
 
Loan Agreement 

	
   

	
   

	
 
July 31, 2005 

	
   

	
   

	
 
Loan amount of NIS 20,000. 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 2. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Oren Kashi, employee 

	
   

	
   

	
 Loan Agreement 

	
   

	
   

	
 February 08, 2006 

	
   

	
   

	
 Loan amount of NIS 20,000 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 [***] 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 [***] 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 5. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Eastman Kodak Company 

	
   

	
   

	
 Sales Agreement 

	
   

	
   

	
 December 27, 2005 

	
   

	
   

	
 Shall be paid US$750,000
  for developing image sensor technology for use in imaging products 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 6. 

	
   

	
   

	
 Company 

	
   

	
   

	
 NTRA Economic Advisors Ltd. 

	
   

	
   

	
 Finder Fee Agreement 

	
   

	
   

	
 November 2005 (as amended March 13, 2006) 

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 7. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Applied Materials, Inc. 

	
   

	
   

	
 Full Service Contract 

	
   

	
   

	
 May 31, 2005 

	
   

	
   

	
 Shall be paid US$100,000 in monthly payments of US$8,333
  each for maintenance services in respect to W206 machine 

 *** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

- 17 - 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 Number 

	
   

	
   

	
 The Company or its Subsidiary 

	
   

	
   

	
 Name of
  the other party 

	
   

	
   

	
 Title of  Agreement  

	
   

	
   

	
 Effective
  Date 

	
   

	
   

	
 Comments 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 
8. 

	
   

	
   

	
 
Company 

	
   

	
   

	
 
Plenus Technologies Ltd. 

	
   

	
   

	
 
Loan Agreement 

	
   

	
   

	
 
October 11, 2005 

	
   

	
   

	
 
Loan in the amount of $10 million, $4.5 of which were used to return a previous loan. 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 The company  received
  a credit ine  in the amount
  of  $5.5M
  from Plenus,  $1.75 million
  of  which
  is currently  utilized. 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 9. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Bear, Stearns & Co. Inc. 

	
   

	
   

	
   

	
   

	
   

	
 December 2004 (amended on November
  21, 2005) 

	
   

	
   

	
 Assistance in distribution of a
  private placement memorandum in connection with the  Company’s
  contemplated  placement of its  Preferred
  Shares 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 10. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Phoenix contacts 

	
   

	
   

	
 Statement of work 

	
   

	
   

	
 March 9, 2006 

	
   

	
   

	
 Spatial
  Filter Module Printer 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 11. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Big Sky 

	
   

	
   

	
 Statement of work 

	
   

	
   

	
 June 13, 2006 

	
   

	
   

	
 Development
  & Supply Flash Lamp Pumped. 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 12. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Fraunhofer Gesellschaft 

	
   

	
   

	
 Purchase Order 

	
   

	
   

	
 December 9, 2004 

	
   

	
   

	
 Purchased
  wafer inspection system. Acceptance June 29, 2005 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 13. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Hermes-Epitek Corp. 

	
   

	
   

	
 Sales Representative Agreement 

	
   

	
   

	
 December 1, 2004 

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 [***] 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 [***] 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 [***] 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 [***] 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
   

 *** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

- 18 - 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 Number 

	
   

	
   

	
 The Company or its Subsidiary 

	
   

	
   

	
 Name of
  the other party 

	
   

	
   

	
 Title of  Agreement  

	
   

	
   

	
 Effective
  Date 

	
   

	
   

	
 Comments 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 
[***] 

	
   

	
   

	
 
 

	
   

	
   

	
 
 

	
   

	
   

	
 
 

	
   

	
   

	
 
 

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 19. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Canon
  Sales Co., Inc. 

	
   

	
   

	
 Distribution
  and Sales
  Agreement 

	
   

	
   

	
 November
  30, 2005 

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 [***] 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 21. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Morrison
  & Foerster L.L.P 

	
   

	
   

	
   

	
   

	
   

	
 October
  20, 2004. 

	
   

	
   

	
 IP
  litigation legal counsels; US corporate counsel 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 22. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Shai
  Silberstein 

	
   

	
   

	
 Consulting
  Agreement 

	
   

	
   

	
 October
  11, 2004 

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 23. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Taiwan
  Branch 

	
   

	
   

	
 Services
  Agreement 

	
   

	
   

	
 September
  1, 2004 

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 [***] 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 [***] 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 [***] 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 27. 

	
   

	
   

	
 Reserved 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 [***] 

	
   

	
   

	
 Company 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 29. 

	
   

	
   

	
 Company 

	
   

	
   

	
 JNC
  Co. Ltd. 

	
   

	
   

	
 Cooperation
  Agreement 

	
   

	
   

	
 July
  1, 2003 

	
   

	
   

	
   

 *** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

- 19 - 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 Number 

	
   

	
   

	
 The Company or its Subsidiary 

	
   

	
   

	
 Name of
  the other party 

	
   

	
   

	
 Title of  Agreement  

	
   

	
   

	
 Effective
  Date 

	
   

	
   

	
 Comments 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 
[***] 

	
   

	
   

	
 
 

	
   

	
   

	
 
 

	
   

	
   

	
 
 

	
   

	
   

	
 
 

	
   

	
   

	
 
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 [***] 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 [***] 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 33. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Negevtech Inc. 

	
   

	
   

	
 Inter Company Loan Agreement 

	
   

	
   

	
 January 1, 2003 

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 34. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Eldan Car Rent
(1965) Ltd. 

	
   

	
   

	
 Car Lease Agreement 

	
   

	
   

	
 April 17, 2000 

	
   

	
   

	
   

 *** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

- 20 - 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 Number 

	
   

	
   

	
 The Company or its Subsidiary 

	
   

	
   

	
 Name of
  the other party 

	
   

	
   

	
 Title of  Agreement  

	
   

	
   

	
 Effective
  Date 

	
   

	
   

	
 Comments 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 
35. 

	
   

	
   

	
 
Company 

	
   

	
   

	
 
Dorban
  Investments Ltd. 

	
   

	
   

	
 
Lease
  Agreement 

	
   

	
   

	
 
February
  22,
  2000 (as extended). 

   

	
   

	
   

	
 
Regarding
  the Company’s
  offices at 12
  Hamada Street, Rehovot. 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
 A new
  agreement
  was signed
  on June 26,
  2006. 

	
   

	
   

	
 The
  Company has  provided the lessor a  bank guarantee in the amount of NIS  526,620
  dated  November 20, 2000,  which was extended  on
  May 29, 2005 (the  amount of the  extended guarantee is  NIS
  565,304.56  linked to the  consumer price
  index). 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 36. 

	
   

	
   

	
 Company 

	
   

	
   

	
 TICI
  Software Products Ltd. 

	
   

	
   

	
 Cooperation Agreement 

	
   

	
   

	
 February
  15,
  2000 

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 [***] 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 38. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Hoffman, Wasson & Gitier, PC 

	
   

	
   

	
 Power
  of Attorney 

	
   

	
   

	
   

	
   

	
   

	
 Appointed
  to represent the Company
  in the  US Patent and Trademark Office in connection  with the Company’s  Patent
  applications  and any continuation thereof 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 39. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Kesselman
  Corporate Finance Ltd. / Kesselman and Kesselman, CPA 

	
   

	
   

	
 Power
  of Attorney 

	
   

	
   

	
   

	
   

	
   

	
 Appointed
  to transact all business with  respect to the  application to the  Investment
  Center for an approved  enterprise status 

 *** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

- 21 - 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 Number 

	
   

	
   

	
 The Company or its Subsidiary 

	
   

	
   

	
 Name of
  the other party 

	
   

	
   

	
 Title of  Agreement  

	
   

	
   

	
 Effective
  Date 

	
   

	
   

	
 Comments 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 
40. 

	
   

	
   

	
 
US
  Subsidiary 

	
   

	
   

	
 
Devane
  Realty LLC 

	
   

	
   

	
 
Lease
  Agreement 

	
   

	
   

	
 
June
  20, 2005 

	
   

	
   

	
 
Offices
  in Alvin Devane, Austin, Texas. The US Subsidiary provided the landlord a
  security deposit
  in the amount of US$ 1,318.18. 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 41. 

	
   

	
   

	
 German
  Subsidiary 

	
   

	
   

	
 TechnologieZentr
  urn
  Dresden 

	
   

	
   

	
 Lease
  Agreement 

	
   

	
   

	
 August
  18, 2005 

	
   

	
   

	
 Offices
  in Dresden, Germany 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 42. 

	
   

	
   

	
 US
  Subsidiary 

	
   

	
   

	
 T.M
  Norris Company LLC 

	
   

	
   

	
 Lease
  Agreement 

	
   

	
   

	
 March 2006 

	
   

	
   

	
 Offices
  in Southwind Center, Boise 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 43. 

	
   

	
   

	
 Reserved 

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 44. 

	
   

	
   

	
 US
  Subsidiary 

	
   

	
   

	
 VLSI
  Research Inc. 

	
   

	
   

	
 Subscription
  Agreement 

	
   

	
   

	
 April
  25, 2005 

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 45. 

	
   

	
   

	
 US
  Subsidiary 

	
   

	
   

	
 Bet-Israel
  101 Ltd. 

	
   

	
   

	
 Engagement
  Agreement 

	
   

	
   

	
 April
  19, 2005 

	
   

	
   

	
 Relocation.
  

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 46. 

	
   

	
   

	
 US
  Subsidiary 

	
   

	
   

	
 Palmborg
  Associates, Inc. 

	
   

	
   

	
 Representation
  Agreement 

	
   

	
   

	
 June
  14, 2004 

	
   

	
   

	
   

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 47. 

	
   

	
   

	
 US
  Subsidiary 

	
   

	
   

	
 Lakeside
  Drive Inc. 

	
   

	
   

	
 Lease
  Agreement 

	
   

	
   

	
 May
  1, 2002 

	
   

	
   

	
 Offices
  in Lakeside Drive, Santa Clara, California. The US Subsidiary provided the landlord a letter
  of credit
  in the amount of US$ 50,000. 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 48. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Alta 

	
   

	
   

	
 Sales
  agreement 

	
   

	
   

	
 May
  23, 2006 

	
   

	
   

	
 NTW
  waffers project 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 49. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Aerotech 

	
   

	
   

	
 Statement
  of work 

	
   

	
   

	
 April
  06, 2006 

	
   

	
   

	
 3500
  XY Stage system Project 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 50. 

	
   

	
   

	
 Company 

	
   

	
   

	
 Physik
  Instrument 

	
   

	
   

	
 Statement
  of work 

	
   

	
   

	
 March
  19, 2006 

	
   

	
   

	
 3500
  Z-Stage system Project 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 [***]  

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
 [***] 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
 

	
   

	
   

	
   

 *** Text omitted and filed separately
with the Securities and Exchange Commission pursuant to 17 CFR § 230.406 and §
200.80(b)(4). 

- 22 - 

Exhibit A  

THE COMPANIES LAW

A COMPANY LIMITED BY SHARES

AMENDED AND RESTATED ARTICLES OF ASSOCIATION OF

NEGEVTECH LTD.

PRELIMINARY

	
 

	
 

	
1.

	
Reserved.

	
 

	
 

	
2.

	
In these Articles, unless the context otherwise
  requires:

	
 

	
 

	
 

	
These “Articles” - shall mean
the Articles of Association of the Company as shall be in force from time to time. 

	
 

	
 

	
 

	
“Amadeus” – shall mean Amadeus III and Amadeus III
  Affiliates Fund LP and their Permitted
  Transferees to which they transfer shares.

	
 

	
 

	
 

	
The “Amadeus Agreement” shall mean the Series BB-4 Preferred
  Share Purchase Agreement dated
  September 26, 2006 between the Company and certain investors.

	
 

	
 

	
 

	
“as converted
  basis” - shall mean
  assuming the theoretical conversion of all outstanding Preferred Shares into Ordinary Shares, at the
  then applicable conversion ratio.

	
 

	
 

	
 

	
“Board” or 
  “Board of Directors” –
  shall mean the Board of Directors of the Company.

	
 

	
 

	
 

	
“Business Day” – shall mean a day on which commercial banks in
  Israel are open for business
  (including, for the avoidance of doubt, Fridays).

	
 

	
 

	
 

	
The “Company” - shall mean NEGEVTECH LTD.

	
 

	
 

	
 

	
The “Companies Law” - shall mean the Companies Law, 5759-1999 as
  shall be in effect from time to
  time and any other law that shall be in effect from time to time with respect
  to companies and that shall apply to the Company.

	
 

	
 

	
 

	
“Genesis” – shall mean Genesis Partners II, L.D.C.,
  Genesis Partners II (Israel) L.P. and their Permitted Transferees to which they transfer shares.

	
 

	
 

	
 

	
“Intel” shall mean Intel Atlantic, Inc., a corporation
  established and existing under the laws of the State of Delaware, USA.

	
 

	
 

	
 

	
The “Office” - shall mean the registered office of the Company
  as it shall be from time to time.

	
 

	
 

	
 

	
The term “Major Holder” shall mean a holder of at
  least 2.5% of the issued and outstanding shares of the Company, on an as converted basis and with respect
  solely to Article 14 - a holder of
  at least 2% of the issued and outstanding shares of the Company, on an as converted basis.

	
 

	
 

	
 

	
“Majority Preferred Shareholders” – shall mean the
  holders of the majority of the issued and outstanding Preferred Shares (calculated on
  an as converted basis).

	
 

	
 

	
 

	
“Ordinary Shares” – shall mean Ordinary Shares of the Company, par
  value NIS 0.01 each.

	
 

	
 

	
 

	
“Original Issue Price” – shall mean: (i)
  with respect to the Series AA Preferred Shares, $2.4385 per share,
  provided, that with respect to any Series AA Preferred Share issued upon the
  exercise of warrants outstanding as of the closing of the Poalim Agreement,
  the Original Issue Price shall be $3.4885 and provided further that with respect
  solely to Article 9 the Original
  Issue Price per each Series AA Preferred Share shall be the same as the
  Original Issue Price of the Series BB-1
  Preferred Shares; (ii) with respect to the Series BB-1 Preferred Shares and the Series BB-3 Preferred
  Shares, $2.3194 per share; (iii) with respect to the Series BB-2 Preferred
  Shares, $1.97149 per share; and (iv) with respect to the Series BB-4 Preferred Shares, $2.4354 per share, as
  such prices may be adjusted, for certain purposes set forth in these Articles, upon the occurrence of a
  Recapitalization Event.

	
 

	
 

	
 

	
“Orbotech” – shall mean Orbotech Technology Ventures L.P.
  and its Permitted Transferees to which it transfers shares.

	
 

	
 

	
 

	
“Permitted Transferee” - shall mean: (i) a
  person or entity that controls or is controlled by or is under common
  control with the respective shareholder; (ii) spouse, brothers, sisters, parents and children
  of the transferor or a trust for the benefit of the transferor and/or any of the foregoing, in the
  event the shares are held by individuals; (iii) in the case of any shareholder which is
  a limited or general partnership or a trust, to its partners (including retired partners) or
  beneficiaries and to affiliated partnerships managed by the same management
  company or managing (general) partner or by an entity which directly or indirectly controls,
  is controlled by, or is under common control with, such management company or managing or general partner;
  (iv) a trustee of the Company’s incentive plans may transfer to a beneficiary and vice versa; (v) in the case of
  Plenus Technologies Ltd., Plenus II, L.P., Plenus II (D.C.M.), Limited
  Partnership, Golden Gate Bridge Fund, L.P., Bank
  Leumi Le-Israel B.M. and the Participants (listed in Schedule 1 of the Loan
  Agreement between the Company,
  Plenus II, L.P. and Plenus II (D.C.M.), Limited Partnership dated October 11, 2005), each shall be considered a
  Permitted Transferee of each other, as long as such Permitted Transferee is not a competitor of the Company; and
  (vi) Bank Leumi Le-Israel BM (“BLL”) shall be a Permitted Transferee of
  Pitango Principals Fund III (Israel)
  LP (“Pitango
  Principals”), who may freely
  pledge and subject any of its shares and other securities in the Company to a charge in favor of BLL, without being
  subject to any restrictions
  hereunder with respect to the creation or imposition of such pledge or
  charge, including, without
  limitation, the requirement for Board approval or any other approval, any right of first refusal, co-sale offer or
  otherwise. However, the sale of the said securities on behalf of Bank
  Leumi Le-Israel BM pursuant to a realization of the said charge shall be subject to the right of first refusal and any
  other restrictions on the transfer of shares contained herein.

	
 

	
 

	
 

	
The term “control” shall
  have the same meaning as designated to it under the Companies Law and shall also mean the possession, directly
  or indirectly, of more than 50% of the voting power or the right to appoint more than 50% of the members of
  the Board of Directors or the
  right to receive more than 50% of the distributed profit.

- 2 -

	
 

	
 

	
 

	
“Pitango” – shall mean Pitango Venture Capital Fund III
  (Israeli Sub) L.P., Pitango Venture Capital Fund III (Israeli Sub.) Non-Q L.P.,
  Pitango Venture Capital Fund III (Israeli Investors) L.P., Pitango JP Morgan Fund III
  (Israel), L.P., Pitango Principles Fund III (Israel) L.P., Pitango Venture
  Capital Fund III Trusts 2000 L.P., all of which shall be deemed Permitted Transferees
  of each other, and their Permitted Transferees to which they transfer shares

	
 

	
 

	
 

	
The “Poalim Agreement” shall mean the Series
  BB Preferred Share Purchase Agreement dated September 13, 2005 between the
  Company and certain investors.

	
 

	
 

	
 

	
“Poalim Ventures” means Poalim Ventures Ltd., Poalim Ventures I
  Ltd. and Poalim Ventures II L.P., who shall be deemed Permitted Transferees of each
  other, and their Permitted Transferees to which they transfer shares.

	
 

	
 

	
 

	
“Preferred Shares” – shall mean Series AA
  Preferred Shares and Series BB Preferred Shares.

	
 

	
 

	
 

	
“Qualified
  IPO” or “QIPO” – shall mean the consummation of a
  firm commitment underwritten public
  offering of the Company’s shares, netting to the Company at least US$30,000,000 (Thirty Million), at an offering
  price per share in excess of 3 (three) times the Original Issue Price of the Series BB-1
  Preferred Shares.

	
 

	
 

	
 

	
“Recapitalization Event” – shall mean any event
  of share combination or subdivision, distribution of bonus shares or any other
  similar reclassification, reorganization or recapitalization of the Company’s share where
  the shareholders retain their proportionate holdings in the Company.

	
 

	
 

	
 

	
“Series
  AA Preferred Shares” - shall
  mean Series AA Preferred Shares of the Company, par value NIS 0.01
  each.

	
 

	
 

	
 

	
“Series
  BB Preferred Shares” - shall mean
  Series BB-1 Preferred Shares, Series BB-2 Preferred Shares,
  Series BB-3 Preferred Shares and Series BB-4 Preferred Shares.

	
 

	
 

	
 

	
“Series
  BB-1 Preferred Shares” - shall
  mean Series BB-1 Preferred Shares of the Company, par value
  NTS 0.01 each.

	
 

	
 

	
 

	
“Series
  BB-2 Preferred Shares” - shall
  mean Series BB-2 Preferred Shares of the Company, par value NIS
  0.01 each,

	
 

	
 

	
 

	
“Series BB-3 Preferred Shares” – shall mean Series
  BB-3 Preferred Shares of the Company, par value NIS 0.01 each.

	
 

	
 

	
 

	
“Series BB-4 Preferred Shares” – shall mean Series
  BB-4 Preferred Shares of the Company, par value NIS 0.01 each.

	
 

	
 

	
 

	
“Star” – shall mean SVE Star Ventures Enterprises Gmbh
  & Co. No. IX KG., Star Management of Investments No. II (2000) L.P., SVM Star
  Ventures Managementgesellschaft
  mbH No. 3, Star Growth Enterprise, a German Civil Law Partnership (with
  limitation of liability) and their Permitted Transferees to which they transfer shares.

- 3 -

	
 

	
 

	
 

	
 

	
“Wellington” - shall mean Wellington Partners Ventures III
  Technology Fund L.P. and its Permitted Transferees to which it transfers shares.

	
 

	
 

	
 

	
The “Wellington Agreement” - shall mean the
  Series BB Preferred Share Purchase Agreement dated March 22, 2006.

	
 

	
 

	
 

	
In
  these Articles, subject to this Article 2 and unless the context otherwise
  requires, expressions defined in the Companies Law, or any modification thereof
  in force at the date at which these Articles become binding on the Company,
  shall have the meanings so defined; and words importing the singular shall
  include the plural, and vice versa, and words importing the masculine gender shall include the
  female, and words importing persons shall include bodies corporate. The
  titles of the articles are not part of the articles.

	
 

	
 

	
 

	
For
  purposes of determining the availability of any right or the applicability of
  any limitation under these Articles, all Ordinary Shares and
  Preferred Shares entitled to such right or the application of such limitation
  held or acquired by affiliated entities or persons constituting Permitted Transferees
  of each other, shall be aggregated and such entities or persons shall be viewed as a single
  Shareholder.

	
 

	
 

	
 

	
In
  the event that an article that has been added to these Articles contradicts
  an original article found in these Articles - the article added shall take
  precedence.

	
 

	
 

	
3.

	
PRIVATE COMPANY

	
 

	
 

	
 

	
 

	
(a)

	
The
  Company is a private Company.

	
 

	
 

	
 

	
 

	
(b)

	
The
  right to transfer the shares of the Company shall be restricted in the manner
  hereinafter
  appearing;

	
 

	
 

	
 

	
 

	
(c)

	
The number of the
  shareholders of the Company (not including persons who are in the employment of the Company, and persons who,
  having been formerly in the employment
  of the Company were while in that employment and have continued after the termination of that employment to be
  shareholders of the Company) shall be limited to fifty, provided that, for the purposes of this provision,
  where two or more persons hold one
  or more shares in the Company jointly they shall be treated as a single shareholder; and

	
 

	
 

	
 

	
 

	
(d)

	
No invitation shall be
  issued to the public to subscribe for any shares or debentures or debenture stocks of the Company.

	
 

	
 

	
 

	
3A

	
CHARITABLE
  CONTRIBUTIONS

	
 

	
 

	
 

	
 

	
The
  Company may donate reasonable sums of money and/or issue securities of the
  Company representing up to tenth of one percent (0.1%) of its issued and
  outstanding share capital, to any worthy purpose or entity approved by the Board of
  Directors of the Company even if such donation is not made for business consideration.

- 4 -

	
 

	
 

	
4.

	
OFFICE

	
 

	
 

	
 

	
The Office of the Company shall
  be at such place as the Board shall from time to time designate.

	
 

	
 

	
5.

	
THE CAPITAL

	
 

	
 

	
 

	
The authorized capital of the Company is comprised
  of NIS 950,001 divided into: 53,000,060
  Ordinary Shares, par value 0.01 NIS per share, 15,000,000 Series AA Preferred
  Shares, par value 0.01 NIS per
  share, 12,137,708 Series BB-1 Preferred Shares, par value 0.01 NIS per share,
  4,000,000 Series BB-2 Preferred Shares, par value 0.01 NIS per share, 5,862,292 Series BB-3 Preferred Shares, par
  value 0.01 NIS per share and 5,000,040 Series BB-4 Preferred Shares, par
  value 0.01 NIS per share.

	
 

	
 

	
6.

	
RIGHTS, PREFERENCES AND
  RESTRICTIONS OF PREFERRED SHARES

	
 

	
 

	
 

	
The rights, preferences,
  privileges, and restrictions granted to and imposed on the Preferred Shares
  are as set forth in these Articles.

	
 

	
 

	
7.

	
DIVIDEND PROVISIONS

	
 

	
 

	
 

	
Subject to Article 8 below,
  any dividends declared by the Company shall be distributed, subject to Article 30 below, between all holders
  of shares of the Company, pari passu, based upon the number of Ordinary Shares (on an as converted basis) held by
  any such holder.

	
 

	
 

	
 

	
 

	
8.

	
DIVIDEND AND LIQUIDATION
  PREFERENCE

	
 

	
 

	
 

	
 

	
 

	
(a)

	
Upon the happening of any of
  the following events:

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
any liquidation, dissolution or
  winding up of the Company, either voluntary or involuntary; or

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
any consolidation, or merger
  of the Company with or into another corporation following which the
  shareholders of the Company prior to such transaction do not hold following such transaction more than
  50% of the outstanding shares and
  the voting power of the surviving corporation by virtue of their holdings in
  the Company prior to such transaction (“Merger”); or

	
 

	
 

	
 

	
 

	
 

	
 

	
(3)

	
any sale or transfer to
  another corporation of all or substantially all of the assets of the Company, or all or substantially
  all of the shares in the Company (other
  than to a wholly owned subsidiary of the Company or to a corporation in which the shareholders of the Company prior
  to the transaction hold more than 50% of the outstanding voting rights) (“Acquisition”); or

	
 

	
 

	
 

	
 

	
 

	
 

	
(4)

	
any distribution of dividends;

	
 

	
 

	
 

	
 

	
 

	
 

	
(any of the events described in
  sections (1) to (4) above shall be hereinafter referred to as a “Liquidation Event”)

- 5 -

	
 

	
 

	
 

	
 

	
 

	
then the amount of declared
  dividends or any assets of the Company available for distribution in connection with, or the
  consideration received in, such Liquidation Event
  (hereinafter referred to as “Distribution
  Assets”) shall be distributed pursuant to the following order
  of preference:

	
 

	
 

	
 

	
 

	
(b)

	
The
  holders of the Series BB-3 Preferred Shares and the holders of the Series
  BB-4 Preferred Shares shall be entitled to receive, prior and in preference
  to any distribution
  of any of the assets of the Company to the holders of all other equity securities of the
  Company by reason of their ownership thereof, an amount per each Series BB-3 Preferred Share and per each
  Series BB-4 Preferred Share equal to: (i) the applicable Original Issue Price
  for each such share, plus (ii) an amount equal to declared but unpaid
  dividends on each such share, plus (iii) an amount equal to 8% return per annum, compounded annually, on the
  applicable Original Issue Price, for each
  such share to be calculated from the date of payment to the Company on account of such share, and with respect to the
  Series BB-4 Preferred Shares resulting from the conversion provided for in the Amadeus Agreement, from the
  date of payment of the Conversion Consideration by Amadeus to the
  Company, until such distribution, less (iv)
  any amount of dividend preference paid on account of such share until such
  distribution (the “BB-3/4 Preference
  Amount”). In the event that the Distribution Assets are not sufficient for a full payment of the
  BB-3/4 Preference Amount to the
  holders of the Series BB-3 Preferred Shares and the holders of the Series BB-4 Preferred Shares pursuant to this
  subarticle (b), such Distribution Assets as are available for distribution, shall be distributed among the
  holders of the Series BB-3 Preferred Shares and the holders of the Series
  BB-4 Preferred Shares pro-rata in
  proportion to the preferential amount each such holder is otherwise entitled
  to receive.

	
 

	
 

	
 

	
 

	
(c)

	
Following the payment in
  full of the BB-3/4 Preference Amount, the holders of the Series BB-1 Preferred Shares and the holders of
  the Series BB-2 Preferred Shares shall be entitled to receive, prior
  and in preference to any distribution of any of the assets of the Company to the holders of all other equity securities
  of the Company by reason of their ownership thereof, an amount per
  each Series BB-1 Preferred Share and per
  each Series BB-2 Preferred Share equal to: (i) the applicable Original Issue Price for each such share, plus (ii) an amount
  equal to declared but unpaid dividends on each such share, plus (iii) an
  amount equal to 8% return per annum, compounded annually, on the applicable
  Original Issue Price, for each such share to be calculated from the date of payment to the Company on
  account of such share until such distribution,
  less (iv) any amount of dividend preference paid on account of such share
  until such distribution (the “BB-1/2
  Preference Amount”). In the event that the Distribution Assets are not sufficient for a
  full payment of the BB-1/2 Preference Amount to the holders of the Series BB-1 Preferred Shares and the
  holders of the Series BB-2
  Preferred Shares pursuant to this subarticle (c), such Distribution Assets as are available for distribution, shall be
  distributed among the holders of the Series BB-1 Preferred Shares and the
  holders of the Series BB-2 Preferred Shares pro-rata in proportion to the preferential amount each
  such holder is otherwise entitled to receive.

	
 

	
 

	
 

- 6 -

	
 

	
 

	
 

	
 

	
 

	
(d)

	
Following
  the payment in full of the BB-3/4 Preference Amount and the BB-1/2 Preference Amount,
  the holders of the Series AA Preferred Shares shall be entitled to receive prior and in
  preference to any distribution of any of the assets of the Company to the holders
  of all other equity securities of the Company by reason of their
  ownership thereof, an amount per each Series AA Preferred Share equal to: (i)
  the
  Original Issue Price for each Series AA Preferred Share, plus (ii) an amount equal to declared but
  unpaid dividends on each such Series AA Preferred Share, plus (iii) an amount
  equal to 8% return per annum, compounded annually, on the Original Issue Price for each
  outstanding Series AA Preferred Share to be calculated from the later of the
  date of payment to the Company on account of such Series AA Preferred Share
  or May 23, 2002 and until such distribution, less (iv) any amount of dividend
  preference paid on account of such Series AA Preferred Share until such
  distribution (the “AA Preference Amount”).

	
 

	
 

	
 

	
 

	
 

	
In
  the event that, following the payment in full of the BB-3/4 Preference Amount
  and the
  BB-1/2 Preference Amount, the remaining Distribution Assets are not
  sufficient for a full payment of the AA Preference Amount pursuant to this
  subarticle (d), then such remaining Distribution Assets shall be distributed
  among the holders of Series AA
  Preferred Shares pro-rata in proportion to the preferential amount each such holder is otherwise entitled to receive.

	
 

	
 

	
 

	
 

	
(e)

	
Thereafter,
  the holders of the Preferred Shares and the holders of the Ordinary Shares shall be entitled to
  receive any remaining Distribution Assets available for distribution pro rata
  based on the number of Ordinary Shares (on an as converted basis) held by any
  such holder.

	
 

	
 

	
 

	
 

	
(f)

	
Notwithstanding the
  foregoing, if distribution of the Distribution Assets among all shareholders of the Company, pro-rata to the
  number of shares they hold on an as converted
  basis, will result in the holders of Series BB-3 Preferred Shares receiving
  in respect of each Series BB-3 Preferred Share they hold an amount of at
  least three (3) times the Original
  Issue Price of the Series BB-3 Preferred Shares, then the provisions of subarticles (b)-(e)
  above shall not apply and the Distribution Assets shall be distributed among all shareholders of
  the Company, pro-rata to the number of
  share they hold, on an as converted basis.

	
 

	
 

	
 

	
 

	
(g)

	
In the
  event of a Merger or an Acquisition in which the shareholders (and not the Company) are the
  intended recipients of the proceeds resulting therefrom (such as with a sale of shares
  transaction), no transfer of securities in accordance thereto will be considered valid,
  unless the provisions of the distribution preferences under this Article 8 shall apply.

	
 

	
 

	
 

	
 

	
(h)

	
Whenever
  the Distribution Assets are in securities or property other than cash, the value of such assets
  shall be the fair market value of such securities or other property as shall be determined
  by the Board, or by the liquidator in case of winding up. Such proceeds shall
  be made payable in US dollars unless any holder of fully paid share elects to
  receive such distributions in NIS. The NIS equivalent of the dollar value of
  any distribution shall be determined in accordance with the Representative
  Rate last published by the Bank of Israel prior to the date of the making of
  the distribution.

- 7 -

	
 

	
 

	
 

	
 

	
9.

	
CONVERSION
  OF PREFERRED SHARES

	
 

	
 

	
 

	
 

	
 

	
The
  holders of the Preferred Shares shall have conversion rights as follows (the “Conversion
  Rights”):

	
 

	
 

	
 

	
 

	
 

	
(a)

	
Right
  to Convert.

	
 

	
 

	
 

	
 

	
 

	
(1)

	
Subject
  to Article 9(c), each fully paid Preferred Share shall be convertible, at the option of the
  holder thereof, at any time after the date of issuance of such Preferred Share at the
  Office or any transfer agent for the Preferred Shares, into one fully paid
  and non-assessable Ordinary Share nominal value NIS 0.01 and the Company
  shall, at such time, issue to the holders thereof, for no additional charge (a
  portion of the premium paid for such Preferred Shares being attributed as
  payment on account of the nominal value of such additional Ordinary
  Shares – in the event that the then applicable law requires that shares are
  issued for no less than their nominal value and to the extent no other source available
  pursuant to the provisions of the then applicable law may be used for such
  purpose), such number of fully-paid and non-assessable Ordinary Shares as
  required so that the total number of Ordinary Shares so issued (i.e.
  including the Ordinary Share into which the Preferred Share was converted) will be equal to the number
  determined by dividing the Original Issue
  Price applicable to such Preferred Share by the Conversion Price (as defined
  below) at the time in effect for such share. In the event that the then
  applicable law requires that shares are issued for not less than their
  nominal value, and the aggregate nominal
  value of all such Ordinary Shares shall exceed the consideration paid to the Company with respect to such
  Preferred Share, the holder
  thereof shall pay the Company such excess nominal value to the extent no other source available pursuant to
  the provisions of the then applicable
  law (such as premiums paid for other shares of the Company) may be used for such purpose. The initial Conversion
  Price per each Preferred Share
  shall be its Original Issue Price, provided, however, that the Conversion Price for the Preferred Shares shall be subject
  to adjustment as set forth in subarticles
  9(c), 9(d) and 9(e).

	
 

	
 

	
 

	
 

	
 

	
(2)

	
Each
  Preferred Share shall automatically be converted into Ordinary Shares at the Conversion Price at the time in effect
  for such Preferred Share upon the earlier
  of: (A) a Qualified IPO, or (B) the written consent of the Majority Preferred Shareholders, provided however that
  if such conversion is not part of,
  or conditioned upon the closing of, a Qualified Transaction (as defined in Article (12)(e) below), such conversion shall be
  subject to the Special BB Consent as set forth in Article 12(e) below.
  The Series AA Preferred Shares shall also
  automatically be converted into Ordinary Shares as aforesaid upon the consent of the holders of at least sixty six
  percent (66%) of the issued and then
  outstanding Series AA Preferred Shares.

- 8 -

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
Mechanics
  of Conversion.

	
 

	
 

	
 

	
 

	
 

	
(1)

	
Before
  any holder of Preferred Shares shall be entitled to convert the same into Ordinary Shares
  such holder shall surrender the certificate or certificates therefor at the Office and shall give
  written notice to the Company of the election to convert the same (or any
  part thereof) and shall state therein the name or names of any nominee for
  such holder in which the certificate or certificates for shares of Ordinary
  Shares are to be issued. The Company shall, as soon as practicable thereafter unless
  such notice states that
  conversion is to be effective on any later date or when any conditions specified in the
  notice have been fulfilled in which case conversion shall take effect on such
  other date or when such conditions have been fulfilled, issue and deliver at
  such office to such holder of Preferred Shares, or subject to the transfer
  restrictions contained in these Articles to the nominee or nominees of such
  holder, a certificate or certificates for the number of shares of Ordinary Shares to
  which such holder shall be entitled as aforesaid. Such conversion shall be
  deemed to have been made immediately prior to the close of business on
  the date of such surrender of the shares of Preferred Shares to be
  converted, or on any later date or when any conditions specified in the
  notice have been fulfilled and the person or persons entitled to receive the Ordinary Shares
  issuable upon such conversion shall be treated for all purposes as the record
  holder or holders of such Ordinary Shares as of such date. If the conversion
  is in connection with a QIPO, the conversion may, at the option of any
  holder tendering Preferred Shares for conversion, be conditioned upon the
  closing with the underwriter of the sale of securities pursuant to such
  offering, in which event the person(s) entitled to receive the Ordinary
  Shares issuable upon such conversion of the Preferred Shares shall not be deemed to have
  converted such Preferred Shares until immediately prior to the closing
  of such sale of securities. In the event that the certificate(s)
  representing the Preferred Shares to be converted as aforesaid are not delivered to
  the Company, then the Company shall not be obligated to issue any
  certificate(s) representing the Ordinary Shares issued upon such conversion, unless
  the holder of such Preferred Shares notifies the Company in writing that such
  certificate(s) have been lost, stolen or destroyed and executes an agreement
  satisfactory to the Company to indemnify the Company from any loss incurred by it in
  connection with such certificates.

	
 

	
 

	
 

	
 

	
 

	
(2)

	
A conversion of Preferred
  Shares pursuant to one of the events described in Article 9(a)(2) shall be deemed to have taken place automatically
  regardless of whether the certificates representing such shares have
  been tendered to the Company but from and
  after such conversion any such certificates not tendered to the Company shall be deemed to
  evidence solely the Ordinary Shares
  received upon such conversion and the right to receive a certificate for such Ordinary Shares.

	
 

	
 

	
 

	
 

	
(c)

	
Conversion
  Price Adjustments of Preferred Shares

	
 

	
 

	
 

	
 

	
 

	
Until
  the QIPO, the applicable Conversion Price of the Preferred Shares shall be subject to adjustment
  from time to time as follows:

	
 

	
 

	
 

	
 

	
 

	
(1)

	
During the period
  commencing on the closing of the Poalim Agreement, and ending on the earlier
  of (x) the QIPO or (y) 24 months following such date (the “Initial Period”), upon each issuance by the
Company of
  any “Additional Securities” (as
  defined below) without consideration or for a price per share less than the applicable Conversion Price for any
  issued and outstanding Series BB Preferred Shares in effect immediately prior
  to the issuance of such Additional Securities, the applicable
  Conversion Price for any such issued and
  outstanding Series BB Preferred Share in effect immediately
  prior to each such issuance shall be adjusted to the price per share paid at such
  issuance.

- 9 -

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
With
  respect to the Series BB Preferred Shares during the period after the Initial Period and
  until the QIPO and with respect to the Series AA Preferred Shares during the
  Initial Period and thereafter until the QIPO, upon each issuance by the
  Company of any “Additional Securities” (as defined below), without consideration
  or for a price per share less than the applicable Conversion Price for
  any issued and outstanding applicable series of Preferred Shares in effect
  immediately prior to the issuance of such Additional Securities, the
  applicable Conversion Price for any such issued and outstanding series of
  Preferred Shares in effect immediately prior to each such issuance shall be
  adjusted to a price (calculated to the nearest ten thousandth of a US Dollar
  ($0.0001)) determined by dividing (1) the sum of (A) the total number of Ordinary
  Shares issued and outstanding prior to the issuance of such Additional Securities multiplied by
  the applicable Conversion Price of such
  series, as the case may be, in effect prior to the issuance of such Additional Securities, plus (B) the total amount
  of the consideration received by
  the Company for such Additional Securities by (2) the sum of the total number
  of Ordinary Shares issued and outstanding immediately prior to the issuance of such Additional Securities plus the
  number of such Additional Securities
  issued. For the purpose of the above calculation, the number of shares
  of Ordinary Shares issued and outstanding immediately prior to such issue shall be calculated on an as converted and
  fully diluted basis, as if all outstanding
  warrants, options or other rights for the purchase of shares or convertible securities had been fully exercised
  (and the resulting securities fully
  converted into Ordinary Shares, if so convertible) as of such date.

	
 

	
 

	
 

	
 

	
 

	
(3)

	
In
  the event that the full application of the anti dilution protection in subarticles 9(c)(l)
  and 9(c)(2) cannot be implemented mathematically, then the Series BB
  Preferred Shares shall have absolute priority over the Series AA Preferred
  Shares in implementation of the above, such that only the Series BB Preferred
  Shares shall be provided with the anti-dilution protection.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(4)

	
(A)

	
No adjustments of any
  applicable Conversion Price shall be made in an amount less than ten thousandth of a US Dollar ($0.0001). No adjustment of any
applicable Conversion Price
  pursuant to subarticles 9(c)(1) and (2) shall be made if it has the
  effect of increasing the applicable
  Conversion Price above the applicable Conversion Price in effect immediately
  prior to such adjustment.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(B)

	
In
  the case of the issuance of Additional Securities (as defined below) for cash, the consideration, for the
  purpose of subarticles 9(c)(1) and (2),
  shall be deemed to be the amount of cash received therefore before any payment of commissions, expenses and
  the like.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(C)

	
In
  the case of the issuance of Additional Securities (defined below) for a consideration, in
  whole or in part other than cash, the consideration other than cash shall, for the
  purpose of subarticles 9(c)(l)
  and (2), be deemed to be the fair value thereof as determined, in good faith, by the
  Board of Directors.

- 10 -

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(D)

	
In the
  case of the issuance of options to purchase or rights to subscribe for Ordinary
  Shares, or securities by their terms convertible into or exchangeable
  for Ordinary Shares or options to purchase or rights to subscribe for such convertible or
  exchangeable securities, the aggregate maximum number of Ordinary Shares deliverable
  upon exercise
  (assuming the satisfaction of any conditions to exercise, including without limitation, the passing
  of time, but without taking into account
  potential antidilution adjustments) of such options to purchase or rights to subscribe for Ordinary
  Shares or upon conversion or an
  exchange of such convertible or exchangeable security shall be deemed to have been issued at the time of the issuance of such
options, rights, or securities
  at a consideration equal to the consideration (determined in the manner
  provided in subarticle 9(c)(4)(B) and (c)(4)(C)), if any, received by
  the Company upon the issuance of such
  options or rights or securities plus any additional consideration payable to the Company pursuant to
  the term of such options or rights
  or securities (without taking into account potential antidilution adjustments) for the Ordinary
  Shares covered thereby, and the applicable Conversion Price shall be
  adjusted accordingly. Upon the expiration
  of any such options or rights, the termination of any such rights to convert or exchange or the
  expiration of any options or rights
  related to such convertible or exchangeable securities, the Conversion
  Price for such series of Preferred Shares to the extent in any way affected by or computed using such
  options, rights or securities or
  options or rights related to such securities (unless such options or rights were merely to be included in
  the numerator and denominator for
  purposes of determining the number of Ordinary Shares outstanding for purposes of Article 9(c)(2)) shall be recomputed to reflect
the issuance of only the
  number Ordinary Shares (and
  convertible or exchangeable securities that remain in effect) actually
  issued upon the exercise of such options or rights, or upon the conversion or exchange of such
  securities or upon the exercise of
  the options or rights related to such securities. The number of Ordinary Shares deemed issued and the
  consideration deemed paid therefor
  shall be appropriately adjusted to reflect any change, termination or expiration of the type described in this
  Article 9(c)(4)(D).

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(E)

	
For
  purpose of subarticles 9(c)(l) and (2) hereof, the consideration for any Additional
  Securities shall be taken into account at the U.S. dollar equivalent thereof,
  on the day such Additional Securities are issued or deemed to be issued
  pursuant to subarticle 9(c)(4)(D).

- 11 -

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(5)

	
“Additional
  Securities” shall mean any Ordinary Shares, options to purchase or rights to
  subscribe for Ordinary Shares, or securities which by their terms are convertible into or
  exchangeable for Ordinary Shares, or any securities convertible
  into or exercisable for any securities of the foregoing. Notwithstanding the
  foregoing, “Additional Securities” does not include:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(A)

	
Securities
  issued pursuant to a transaction described in subarticle 9(c)(6) hereof;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(B)

	
The
  issuance, pursuant to the approval of the Board, of Ordinary Shares or Options to
  purchase Ordinary Shares to employees, directors and bona-fide consultants;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(C)

	
Securities
  issued pursuant to options, warrants or other rights outstanding on the
  closing of the Poalim Agreement or on the closing of the Wellington
  Agreement or on the closing of the Amadeus Agreement, provided that such options, warrants
  or other rights are reflected in the respective Capitalization Table attached to any of
  such agreements;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(D)

	
Ordinary
  Shares issued upon conversion of Preferred Shares;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(E)

	
Issuance
  of bonus shares, providing such bonus shares are issued to all the then existing
  shareholders, or shares issued pursuant to a rights offering in which all
  such shares are offered exclusively to existing shareholders;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(F)

	
Shares issued in the
  acquisition of another company provided that the issuance of such shares is approved by the Board of Directors;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(G)

	
Shares
  issued in connection with equipment leases, bank loans or secured debt
  financings approved by the Board of Directors provided the number of such
  shares issued shall not exceed 1% of the then issued and outstanding share capital of the
  Company on a fully diluted, as converted basis;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(H)

	
Securities issued or
  issuable following written approval of Majority Preferred Shareholders in which they agree to waive their
  anti-dilution or pre-emptive rights
  (as the case may be) with respect to such specific issuance; and

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(I)

	
Securities
  issued as a charitable donation pursuant to Article 3A.

	
 

	
 

	
 

	
 

	
 

	
 

	
(6)

	
If
  the Company shall subdivide or combine its Ordinary Shares, the applicable Conversion
  Price shall be proportionately reduced, in case of subdivision of shares, as
  at the effective date of such subdivision, or if the Company shall fix a
  record date for the purpose of so subdividing, as at such record date,
  whichever is earlier, or shall be proportionately increased, in the case of combination
  of shares, as at the effective date of such combination, or, if the Company shall
  fix a record date for the purpose of so combining, as at such record date,
  whichever is earlier.

- 12 -

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(7)

	
Subject
  to the liquidation preference of the Preferred Shares as set forth in Article 8 above, if the Company at any time
  shall make a distribution of its assets to the holders of its Ordinary Shares
  as a dividend in liquidation or partial
  liquidation or by way of return of capital or other than as a dividend payable out of earnings or surplus legally
  available for dividends, each holder of
  Preferred Shares shall be entitled to receive without payment of any additional consideration, a sum equal to the
  amount of such assets as would have
  been payable to such holder as owner of that number of Ordinary Shares receivable by exercise of the conversion rights
  had such holder been the holder of
  record of such Ordinary Shares on the record date for such distribution; and an appropriate provision
  therefor shall be made a part of any such distribution.

	
 

	
 

	
 

	
 

	
 

	
(d)

	
Other
  Distributions

	
 

	
 

	
 

	
 

	
 

	
 

	
Subject
  to the liquidation preference of the Preferred Shares as set forth in Article
  8 above, in the event the Company shall declare a distribution payable in
  securities of other persons, evidences of indebtedness issued by the
  Company or other persons, assets (excluding cash dividends) or options or
  rights not referred to in subarticle 9(c)(5) or if the Company at any time
  shall pay a dividend payable in additional Ordinary Shares or other
  securities or rights convertible into, or entitling the holder thereof to receive
  directly or indirectly, additional Ordinary Shares then, in each such case for the purpose
  of this subarticle 9(d), the holders of the Preferred Shares shall be entitled to receive
  such distribution, in respect of their holdings on an as-converted basis as of
  the record date for such distribution.

	
 

	
 

	
 

	
 

	
 

	
(e)

	
Recapitalizations

	
 

	
 

	
 

	
 

	
 

	
 

	
If at
  any time or from time to time there shall be a Recapitalization Event (other
  than a subdivision,
  combination or merger or sale of assets transaction provided for elsewhere in this Article 9 or Article 8)
  provisions shall be made so that the holders of the Preferred Shares shall thereafter be entitled to receive upon
  conversion of the Preferred Shares
  the number of Ordinary Shares or other securities or property of the Company
  or otherwise, to which a holder of Ordinary Shares deliverable upon conversion would have been entitled immediately
  prior to such Recapitalization Event.
  In any such case, appropriate adjustment shall be made in the application of
  the provisions of this Article 9
  with respect to the rights of the holders of the Preferred Shares after such Recapitalization
  Event to the end that the provisions of this Article (including
  adjustment of the Conversion Price then in effect and the number of shares issuable upon conversion of the
  Preferred Shares) shall be applicable
  after that event in a manner as nearly equivalent as may be practicable.

	
 

	
 

	
 

	
 

	
 

	
(f)

	
No
  Impairment

	
 

	
 

	
 

	
 

	
 

	
 

	
The
  Company will not, by amendment of these Articles or through any reorganization,
  recapitalization, transfer of assets, consideration, merger, dissolution, issue or sale of
  securities or any other voluntary action, avoid or seek to avoid the observance or performance of the Conversion
  Rights of the holders of Preferred Shares,
  but will at all times in good faith assist in the carrying out of all the provisions of this Article 9
  and in the taking of all such action as may be necessary or appropriate in order to protect the Conversion
  Rights of the holders of the Preferred Shares against impairment.

- 13 -

	
 

	
 

	
 

	
 

	
 

	
 

	
(g)

	
No Fractional Shares and
  Certificate as to Adjustments

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
No fractional shares shall be
  issued upon conversion of the Preferred Shares, and the number of Ordinary Shares to be issued
  shall be rounded to the nearest
  whole share. Whether or not fractional shares are issuable upon such conversion shall be determined on the basis of
  the total number of Preferred Shares held by the holder and the number of
  Ordinary Shares issuable upon such
  aggregate conversion.

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
Upon the occurrence of each
  adjustment or readjustment of any applicable Conversion Price pursuant to this Article 9, the Company, at its
  expense, shall promptly compute
  such adjustment or readjustment in accordance with the terms hereof and prepare and furnish to each
  holder of Preferred Shares a certificate
  setting forth each adjustment or readjustment and showing in detail the facts upon which such adjustment or
  readjustment is based. The Company
  shall furnish or cause to be furnished to such holder a like certificate setting forth (A) such adjustment
  and readjustment, (B) the applicable
  Conversion Price at the time in effect, and (C) the number of Ordinary Shares and the amount, if any, of other
  property which at the time would
  be received upon the conversion of a Preferred Share.

	
 

	
 

	
 

	
 

	
 

	
(h)

	
Notices of Record Date

	
 

	
 

	
 

	
 

	
 

	
 

	
In the event of any taking by
  the Company of a record of the holders of any class of securities for the purpose of determining the
  holders thereof who are entitled to receive
  any dividend (including a cash dividend) or other distribution, any right to
  subscribe for, purchase or otherwise acquire any shares of any class or any
  other securities or property, or to
  receive any other right, the Company shall provide to each holder of Preferred Shares, at least 20
  days prior to the date specified therein, a notice specifying the date on
  which any such record is to be taken for the purpose of such dividend, distribution or right, and the
  amount and character of such dividend, distribution or right.

	
 

	
 

	
 

	
 

	
 

	
(i)

	
Reservation of Shares Issuable
  Upon Conversion

	
 

	
 

	
 

	
 

	
 

	
 

	
The Company shall at all times
  reserve and keep available out of its authorized but unissued shares
  of Ordinary Shares solely for the purpose of effecting the conversion of the
  Preferred Shares such number of its Ordinary Shares as shall from time to
  time be sufficient to effect the conversion of all outstanding Preferred
  Shares; and if at any time the number of authorized but unissued Ordinary Shares
  shall not be sufficient to effect the
  conversion of all then outstanding Preferred Shares, in addition to such other remedies as shall be available to the
  holder of such Preferred Shares, the Company
  will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but
  unissued Ordinary Shares to such number of shares as shall be
  sufficient for such purposes.

- 14 -

	
 

	
 

	
10.

	
RESERVED

	
 

	
 

	
11.

	
VOTING RIGHTS

	
 

	
 

	
 

	
Subject to Article 58 below,
  each holder of Ordinary Shares and Preferred Shares shall be entitled to one (1) vote per Ordinary Share or
  Ordinary Share into which such Preferred Share is convertible at the time of voting, whether in a vote by show
  of hands, secret ballot or written consent. Each holder of Preferred
  Shares shall vote together with the Ordinary Shares as a single class (except as otherwise expressly provided in
  these Articles or as required by
  law) and shall be entitled to notice of any general meeting of shareholders
  in accordance with these Articles. Fractional votes shall not be
  permitted and any fractional vote
  resulting from the conversion mechanism described above in these Articles
  shall be rounded up or down to the
  nearest whole number (with one-half (1/2) being rounded upward).

	
 

	
 

	
12.

	
PROTECTIVE PROVISIONS

	
 

	
 

	
 

	
 

	
(a)

	
Until the QIPO, the Company
  shall not take any of the following actions without approval of the Majority Preferred Shareholders
  (which may be obtained by way of a written consent and shall not
  require the convening of a shareholders meeting for such purpose, unless required by applicable law):

	
 

	
 

	
 

	
 

	
(1)

	
any amendment to or modification of these Articles
  and/or the Memorandum of Association of
  the Company or any other action which would amend, change or modify the rights, preferences or
  privileges of the Preferred Shares.

	
 

	
 

	
 

	
 

	
(2)

	
declaration of any dividend;

	
 

	
 

	
 

	
 

	
(3)

	
the authorization of any share capital, or other
  rights or securities convertible into or
  exchangeable for share capital, or the conversion of any existing shares
  into shares, in each case with rights equal to or superior to the rights of the Preferred Shares;

	
 

	
 

	
 

	
 

	
(4)

	
any action or transaction which
  is outside the business of the Company as contemplated in the Updated Work Plan of the Company (as defined in
  the Amadeus Agreement);

	
 

	
 

	
 

	
 

	
(5)

	
any action which effects a
  merger, reorganization, liquidation, disposition, acquisition or sale of the Company or of any
  subsidiary thereof, or any transfer
  of a material asset of the Company or of any subsidiary thereof, or the
  creation of or purchase of or into any entity;

	
 

	
 

	
 

	
 

	
(6)

	
any action which may alter or change the capital
  structure of the Company or of any
  subsidiary thereof, any action which effects a reclassification or recapitalization of the outstanding capital
  shares of the Company, and any increase
  in the registered share capital of the Company or of any subsidiary thereof;

- 15 -

	
 

	
 

	
 

	
 

	
(7)

	
the creation of any guarantee,
  mortgage, pledge or security interest in a material asset, or in all
  or substantially all of the assets of the Company or a subsidiary;

	
 

	
 

	
 

	
 

	
(8)

	
the replacement of the
  independent auditors to the Company, which in any event shall be one
  of the “big four”; and

	
 

	
 

	
 

	
 

	
(9)

	
the incurrence by the Company
  or by any subsidiary thereof of any indebtedness
  that shall exceed the sum of $250,000 (Two Hundred Fifty Thousand US
  Dollars), calculated on a cumulative basis in respect of any one transaction or in respect of a series of
  connected transactions;

	
 

	
 

	
 

	
 

	
(b)

	
Until the QIPO, the Company shall not issue any
  securities of any kind or options to purchase
  securities of any kind without the approval of the majority of the directors appointed by the holders of the Preferred
  Shares, provided however that shares issued
  upon the exercise of warrants, options, or other rights outstanding as of the
  closing of the Poalim Agreement, the closing of the Wellington Agreement or
  the closing of the Amadeus Agreement or the grant of options (and
  shares issued upon exercise of such
  options) under the Company’s incentive plans are not subject to such approval.

	
 

	
 

	
 

	
 

	
(c)

	
Any amendment or modification of
  the rights and obligations of Intel set forth in Article 29(e) (Right of First Refusal), Article
  29A (Co-Sale) and Article 29(B)(b) (Bring
  Along) and 65(c) (Directors) shall require the consent of Intel.

	
 

	
 

	
 

	
 

	
(d)

	
Until the QIPO, the Company shall not take, without
  the consent of the holders of at least a
  majority of the issued and outstanding Preferred Shares of the affected
  class, an action that amends or
  modifies the rights attached to such class of Preferred Shares, provided however that (a) the
  authorization or issuance of a new class of shares with preferential rights, or (b) a change, waiver of other
  modification that applies to the rights of the Preferred Shares in the same
  proportional manner and without
  treating a certain series proportionally different from the other series, in
  each case – that was approved by
  holders of a majority of the issued and outstanding Preferred Shares, shall not be deemed a change
  hereunder.

	
 

	
 

	
 

	
 

	
(e)

	
Until the QIPO, the Company shall not take, without
  the consent of the holders of at least a
  majority of the issued and outstanding Series BB Preferred Shares (which must
  include also the affirmative consent of the holders of the majority of the
  Series BB-1 Preferred Shares, Series BB-3
  Preferred Shares and Series BB-4 Preferred Shares (voting together as
  one group) that were issued at the closing of the Poalim Agreement, at the closing of the Wellington
  Agreement and at the closing of the Amadeus
  Agreement to investors who were not shareholders of the Company immediately
  prior to the closing of the Poalim Agreement or affiliates or Permitted Transferees of such shareholders (the “Special
BB Consent”)) an action that
  effects (i) any change or waiver of
  rights of the Series BB Preferred Shares that does not apply to the
  rights of all Preferred Shares in the same proportional manner and that
  treats a certain series proportionally differently from the other series;
  (ii) any waiver of liquidation
  preferences, anti-dilution, board representation or information rights of the
  Series BB Preferred Shares, (iii) an IPO, merger or the sale of all or
  substantially all of the Company’s shares
  or assets, unless, in each such case, the applicable IPO or transaction
  reflects a price per share of more than two times the Original Issue Price of
  the Series BB-1 Preferred Shares (a “Qualified
  Transaction”), or (iv) conversion of the Series BB Preferred Shares, other than as part of, and
  conditioned upon the closing of, a
  Qualified Transaction.

- 16 -

	
 

	
 

	
 

	
 

	
(f)

	
The required consents as set
  forth in Articles 12(a) – (e) above shall also apply to any action taken by
  any wholly owned subsidiary of the Company.

	
 

	
 

	
13.

	
ALLOTMENT
  OF SHARES

	
 

	
 

	
 

	
Subject to the provisions of
  Articles 12 and 14, the authorized but unissued shares shall be under the
  control of the Board of Directors, who shall have the power to allot shares
  or otherwise dispose of them to such persons, on such terms and conditions
  (including, interalia, terms
  relating to calls as set forth in Article 31 hereof), and either at par or at
  a premium, or, subject to the provisions of the Companies Law, at a
  discount, and at such times, as the Board of Directors may think fit, and the
  power to give any person the option to acquire from the Company any shares,
  either at par or at premium, or subject as aforesaid, at a discount, during such time and for such
  consideration as the Board of Directors may think  fit.

	
 

	
 

	
14.

	
PREEMPTIVE RIGHTS

	
 

	
 

	
 

	
 

	
 

	
(g)

	
Until the QIPO, the provisions of this Article 14
  shall apply:

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
Any Additional Securities (as
  defined in Article 9 above) to be issued by the Company (the “Offered
  Securities”) shall first be offered by the Board of Directors
  by written notice to each Major Holder (for purposes of this Article 14, the “Offerees”).
  The number of Offered Securities offered to each Offeree shall be the
  result of the multiplication of the Offered Securities by a fraction: (i) the
  numerator of which shall be the total number of outstanding Ordinary Shares of the Company (on an
  as-converted basis) held by such Offeree as determined prior to the
  offer made pursuant to this Article 14, and (ii)
  the denominator of which is the total number of outstanding Ordinary Shares
  of the Company (on an as-converted basis), as determined prior to the Offer made pursuant to this Article 14.

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
The Company shall provide each
  Offeree with a Notice (the “Notice of Offer”) specifying the number of Offered
  Securities he is entitled to purchase and
  which shall state the terms of the proposed issuance, and any such Offeree may accept such offer, as to all or any
  part of the Offered Securities so
  offered to him, by giving the Company written notice of acceptance within
  twenty (20) days after being served with such Notice of Offer; provided
  that if the purchase by such Offeree is being effected prior to, or
  concurrently with such issuance of
  Offered Securities (rather than subsequent thereto) then such Offeree shall be obligated to consummate the
  purchase of such Offered Securities
  only if the Company consummates the sale of the balance of the Offered Securities pursuant to the terms
  described in such Notice of Offer

- 17-

	
 

	
 

	
 

	
 

	
 

	
 

	
(3)

	
Any and all preemption rights
  set forth in this Article 14, may be exercised by a Permitted
  Transferee of a Major Holder instead of by such Major Holder if such Major Holder so notifies the Company in
  writing.

	
 

	
 

	
 

	
 

	
(h)

	
Any Offered Securities not
  subscribed for by the Offeree as aforesaid, shall be under the control of the Board of Directors and may be
  issued without regard to this Article
  14, except to the extent that said Offered Securities may not be allotted on terms
  more favorable to the purchaser than those offered pursuant to this Article
  14. In the event the Offered Securities are not acquired by the expiration of
  120 days from the date of expiration of
  the twenty (20) day period referred to in Article 14(a)(2), they may not be issued except by compliance with
  the provisions of Article 14.

	
 

	
 

	
 

	
15.

	
REGISTERED HOLDER

	
 

	
 

	
 

	
 

	
(a)

	
If two or more persons are
  registered as joint holders of a share they shall be jointly and severally liable for any calls or any other
  liability with respect to such share. However, with respect to voting,
  power of attorney and furnishing notices, the one registered first in the register of shareholders, insofar as all the
  registered joint holders shall not
  notify the Company in writing to relate to another one of them as the
  sole owner of the share, as aforesaid, shall be deemed to be the sole owner
  of the share.

	
 

	
 

	
 

	
 

	
(b)

	
In the case that two or more
  persons are registered together as holders of a share, each one of them shall be permitted to give
  receipts binding all the joint holders for dividends or other monies in connection with the share and the Company
  shall be permitted to pay all the dividends or other monies due with respect
  to the share to one or more of the
  joint holders, as it shall choose.

	
 

	
 

	
 

	
 

	
(c)

	
Except as otherwise provided
  in these Articles, the Company shall be entitled to treat the registered holder of any share as the
  absolute owner thereof, and, accordingly, shall not, except as ordered by a
  court of competent jurisdiction, or as required by statute, be bound to recognize any equitable or
  other claim to, or interest in, such share,
  on the part of any other person.

	
 

	
 

	
 

	
16.

	
SHARE CERTIFICATES

	
 

	
 

	
 

	
 

	
(a)

	
A shareholder shall be entitled to receive from the
  Company without payment, one certificate
  that shall contain that number of shares registered in the name of such shareholder,
  their class and serial numbering. However, in the event of joint holders holding a share, the Company shall not be
  obligated to issue more than one certificate to all of the joint
  holders, and the delivery of such a certificate to one of the joint holders
  shall be deemed to be a delivery to all of the joint holders.

	
 

	
 

	
 

	
 

	
(b)

	
Each certificate shall carry the
  signature or signatures of a director or such other persons appointed
  by the Board of Directors for this purpose and the rubber stamp or the seal of the Company.

- 18 -

	
 

	
 

	
 

	
 

	
(c)

	
If a share certificate is defaced, lost or
  destroyed, it may be replaced upon payment of such fee, if any, and on such terms, if any, as to evidence and
  indemnity as the Board of Directors may think fit.

	
 

	
 

	
17.

	
MODIFICATIONS OF SHARE RIGHTS

	
 

	
 

	
 

	
If at any time the share
  capital is divided into different classes of shares (unless otherwise provided
  for by the terms of issue of the shares of that class) it shall be permitted,
  subject to the provisions of Article 12
  above, to change, convert, broaden, add or vary in any other manner the rights, advantages, restrictions and
  provisions attached at that time to one or more of the classes by a resolution of the general meeting of the
  shareholders of the Company,
  without the need for any separate class vote or class meeting.

	
 

	
 

	
 

	
It is hereby clarified that any resolution required
  to be adopted pursuant to these Articles by the
  consent of a separate class of shares, whether by way of a separate general
  meeting of such class or by way of written consent, shall be given by
  the holders of shares of such class entitled
  to vote or give consent thereon and no holder of shares of a certain class
  shall be banned from voting or
  consenting by virtue of being a holder of more than one class of shares
  of the Company, irrespective of any conflicting interests that may exist
  between such different classes of shares.
  A shareholder shall not be required to refrain from participating in the
  discussion, voting and/or consenting on any resolution concerning an
  amendment to any class of shares
  held by such shareholder, due to the fact that such shareholder may benefit in one way or another from the outcome
  of such resolution.

	
 

	
 

	
 

	
Without derogating from the need to receive any
  consents or approvals required pursuant to Article
  12, it is hereby clarified and agreed that the enlargement of an existing
  class of shares, or the issuance or allotment of additional shares
  thereof, or the creation of additional shares of that class as a result of
  conversion of shares from another class or unification with another class, shall not be deemed, for
  purposes of these Articles, to amend, change, vary, modify or abrogate
  the rights attached to the previously issued shares of such class or of any other class.

	
 

	
 

	
PLEDGE

	
 

	
 

	
18.

	
The Company shall have a lien and first pledge on
  all the shares, not fully paid, registered in the name of any shareholder (whether registered in his name only or
  together with another or others)
  and on the proceeds from the sale thereof, for any amount still outstanding
  with respect to that share, whether presently payable or not. Such a
  pledge shall exist whether the dates of
  payment or fulfillment or execution of the obligations, debts or commitments
  have become due or not, and shall apply to all dividends that shall be
  decided upon from time to time in connection with these shares. No
  benefit shall be created with respect to this share based upon the rules of equity which shall frustrate this pledge,
  however the Board may declare at any
  time with respect to any share, that it is released, wholly or in part, temporarily
  or permanently, from the provisions of this article.

- 19 -

	
 

	
 

	
19.

	
The Company may sell, in such
  manner and at such time as the Board thinks fit, any of the pledged
  shares, but no sale shall be made unless the date of payment of the monies or
  a part thereof has arrived, or the date of
  fulfillment and performance of the obligations and commitments in consideration of which the pledge
  exists has arrived, and after a written request has been furnished to the shareholder or person who has
  acquired a right in the shares, which sets out the amount or
  obligation or commitment due from him and which demands their payment, fulfillment or execution, and which informs the
  person of the Board’s desire to
  sell the shares in the event of non-fulfillment of the notice, and the person
  has not fulfilled his obligation pursuant to the notice within seven days
  after the notice has been sent to him.

	
 

	
 

	
20.

	
The net proceeds of such sale after payment of the
  costs thereof, shall be applied in payment of
  such sum due to the Company or to the fulfillment of the obligation or
  commitment (including debts, liabilities and engagements which have
  not yet fallen due for payment or satisfaction),
  and the remainder (if there shall be any) shall be paid to the shareholder or
  to the person who has acquired a right in the share sold pursuant to
  the above.

	
 

	
 

	
21.

	
After execution of a sale as
  aforesaid, the Board shall be permitted to sign or to appoint someone to sign a deed of transfer of the sold
  shares and to register the buyer’s name in the register of
  shareholders as the owner of the sold shares and it shall not be the obligation
  of the buyer to supervise the application of monies nor will his right in the
  shares be affected by a defect or
  illegality in the sale proceedings after his name has been registered in the register of shareholders with respect to those
  shares. The sole remedy of any person aggrieved by the sale shall be in damages only and against the
  Company exclusively.

	
 

	
 

	
TRANSFER OF SHARES AND THE
  MANAGEMENT THEREOF

	
 

	
 

	
22.

	
Each transfer of shares shall
  be made in writing in the form appearing herein below, or in a similar
  form, or in any form as to be determined upon by the Board from time to time,
  such form shall be delivered to the Office together with the transferred
  share certificates and any other proof the
  Board shall require, if it shall so require, in order to prove the title of
  the transferor. The instruments and
  documents notifying the Company with respect to the transfer are a prerequisite to the effectuation
  of such transfer. Notwithstanding the above, any transfer of shares to any person or entity that is not at the
  time of transfer a shareholder of the Company and that competes with
  the Company, directly or indirectly, in the field of optical inspection or
  metrology for semiconductors or the transfer of shares which have not been fully paid up will require the consent and
  approval of the Board of Directors, except if such transfer is to a
  Permitted Transferee.

Deed of Transfer of Shares

I, _______________ of ______________  in
consideration of the sum of NIS__________________(New Israeli Shekels) paid to me by_____________,  of
_______________ (hereinafter called “the said transferee”) do hereby transfer to the said transferee ___________
share (or shares) having par value of NIS______________________each one numbered____________________ until
_________ inclusive in
Negevtech Ltd., to hold unto the said transferee, his executors,
administrators, and assigns, subject to the conditions on which I held the same
at the time of the execution hereof; and I, the said transferee, do hereby
agree to accept the said share (or shares)
subject to the conditions aforesaid. As witness we have hereunder set out hands the ______________day
of________20_________.

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
Transferee

	
 

	
Transferor

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
Address

	
 

	
Address

	
 

- 20 -

	
 

	
 

	
23.

	
The deed of share transfer
  shall be executed both by the transferor and transferee, and the transferor
  shall be deemed to remain a holder of the share until the name of the
  transferee is entered into the register
  of shareholders in respect thereof.

	
 

	
 

	
24.

	
The Company shall be permitted to demand a fee for
  registration of transfer, in a reasonable rate as to be determined by the
  Board from time to time, with the exception of transfers to Permitted
  Transferees.

	
 

	
 

	
25.

	
The Register shall be closed for
  a period of seven (7) days before every ordinary general meeting of
  the Company.

	
 

	
 

	
26.

	
Upon the death of a shareholder, the remaining
  holders (in the event that the deceased was a joint holder in a share) or the administrators or executors or heirs of
  the deceased (in the event the
  deceased was the sole holder of the share or was the only one of the joint
  holders of the share to remain alive) shall be recognized by the Company as
  the sole holders of any title to
  the shares of the deceased. However, nothing aforesaid shall release the
  estate of a joint holder of a share from any obligation with respect
  to the share that he held jointly with any
  other holder.

	
 

	
 

	
27.

	
Any person becoming entitled to
  a share in consequence of the death or bankruptcy or liquidation of a shareholder shall, upon such
  evidence being produced as may from time to time be required by the Board, have the right, either to be registered
  as a shareholder in respect of the share upon the consent of the Board
  or, instead of being registered himself, to transfer such share to another
  person, subject to the provisions contained in these Articles with respect to
  transfers.

	
 

	
 

	
28.

	
A person becoming entitled to a share because of the
  death of a shareholder shall be entitled to
  receive, and to give receipts for, dividends or other payments paid with
  respect to the share, but he shall not be entitled to receive notices
  with respect to Company meetings or to participate
  or vote therein with respect to that share, or aside from the aforesaid, to
  use any right of a shareholder, until he has been accepted as a
  shareholder with respect to that share.

	
 

	
 

	
29.

	
RIGHT OF FIRST REFUSAL

	
 

	
 

	
 

	
 

	
(a)

	
Until the QIPO, a shareholder
  in the Company shall not be permitted to make any Transfer (as hereinafter defined) of his shares
  in the Company, other than to a Permitted Transferee, except pursuant
  to the following provisions set forth below.

	
 

	
 

	
 

	
 

	
 

	
For the purposes of this
  Agreement, the term “Transfer” shall
  mean any sale, assignment, transfer, hypothecation or other encumbrance or
  disposition of in any way.

	
 

	
 

	
 

	
 

	
(b)

	
A shareholder, desirous of
making any Transfer of the shares held by him to others, in whole or in part (hereinafter the
“Transferor”) shall be obligated to offer them first to the Offerees
(as defined in Article 14 above), by giving notice in writing to such Offerees (hereinafter “Sale
Notice”). 

- 21 -

	
 

	
 

	
 

	
 

	
(c)

	
In the Sale Notice the
  Transferor shall mention the number of shares he wishes to Transfer (hereinafter the “Offered Shares”), the
price forming the
  consideration for the Offered Shares,
  the name of the transferee (the “Transferee”)
  and the other conditions of the sales.

	
 

	
 

	
 

	
 

	
(d)

	
The Sale Notice shall be
  irrevocable unless all of the Offerees agree otherwise.

	
 

	
 

	
 

	
 

	
(e)

	
Each of the Offerees may
  inform the Transferor in writing within 21 Business Days from the date of receipt of the Sale Notice as to
  his/her intention to purchase that number
  of Offered Shares, in whole or in part, which is the result of the multiplication
  of the Offered Shares by a fraction: (i) the numerator of which is the number of Ordinary Shares (on an as-converted
  basis) of the Company held by such Offeree
  and (ii) the denominator of which is the total number of outstanding Ordinary Shares (on an as-converted basis) held
  by all Offerees (hereinafter the “Offerees’ Offered Shares”), the purchase of which shall be at the
purchase
  price and in accordance with the
  payment conditions as provided for in the Sale Notice (hereinafter the “Purchase Notice”). An Offeree who has
  submitted a Purchase Notice shall be referred to hereinafter as “Buyer”. Notwithstanding the foregoing,
  Intel (to the extent it is a Major Holder) shall be required to provide the
  Transferor with a Purchase Notice within 10 days of receipt of the Sale
  Notice and, in the event Intel is the Transferor, the Offerees will be
  required to provide Intel with a Purchase Notice within 10 days of receipt of
  the Sale Notice.

	
 

	
 

	
 

	
 

	
(f)

	
Thereafter, the Transferor shall give each Buyer who
has fully exercised his rights pursuant to Article 29(e) a written notice
(the “Excess Notice”) stating the amount of Offered Shares with respect to
which no Purchase Notice was submitted (hereinafter referred to as “Excess Offered
Shares”) and each such Buyer shall be entitled, subject to Article 29(j) below, provided he so
notifies the Transferor in writing (the “Excess Reply Notice”), such Excess Reply Notice to be
received by the Transferor within 7
Business Days following the delivery by the Transferor to such Buyer of the
Excess Notice, to purchase any or all of such Excess Offered Shares. 

	
 

	
 

	
 

	
 

	
(g)

	
If by the end of the time
  referred to in Articles 29(e) and 29(f) above no Purchase Notices have been received by the Transferor or
  the Transferor has received Purchase Notices
  with respect to a total number of shares that is less than the number of Offered
  Shares, the Transferor may, within 30 days from the expiration of the time
  for submission of the Purchase Notices or, in the event that Article 29(f)
  applies, the Excess Reply Notice, sell all
  (but not less than all) of the Offered Shares to the Transferee and/or to any Buyer that submitted a
  Purchase Notice and, if applicable, an
  Excess Notice, up to the number of shares requested to be purchased by such Buyer (though he shall be under no obligation to
  do so) at a price not less than the price mentioned in the Sale Notice (as
  linked to the representative rate of the U.S. dollar from the day of the furnishing of the notice to the date of
  sale in fact) and upon all other conditions not less favorable to the
  Transferor than those provided for in the Sales Notice.

	
 

	
 

	
 

	
 

	
(h)

	
If the Transferor shall not
  transfer the Offered Shares as aforesaid, within the period of time specified in Articles 29(e), (f) and
  (g) above, he shall be obligated, before selling the Offered Shares to another, to offer them again to the
  Offeree in accordance with the aforementioned procedure, and such procedure
  shall apply to any further offer.

- 22 -

	
 

	
 

	
 

	
 

	
(i)

	
If
  there have been received Purchase Notices and, if applicable, Excess Reply Notices, for a total
  number of shares equal to the number of Offered Shares, then every Buyer shall buy
  the number of shares as mentioned in the Purchase Notice and, if applicable,
  the Excess Reply Notices, he has submitted.

	
 

	
 

	
 

	
 

	
(j)

	
If
  Purchase Notices and Excess Reply Notices shall have been received for a
  total number of shares greater than the number of Offered Shares, the
  Buyers may acquire shares in a manner proportionate to the share capital of
  the Company held by them at that time, as determined in accordance with Article
  29(e) above. However, no Buyer shall be required to buy a greater number of shares
  than the number provided for in the Purchase Notice and, if applicable, the
  Excess Reply Notice, submitted by him and upon the allocation to him of the full
  number of Offered Shares so requested by him in the Purchase Notice, such
  Buyer shall be disregarded for the purpose of any further allocation of
  the remaining Excess Offered Shares.

	
 

	
 

	
 

	
 

	
(k)

	
In every one of the events
  referred to in Articles 29(e), 29(f), 29(g), 29(h), 29(i) and 29(i) the Transferor shall send within five (5)
  days after the last date for the submission
  of each of the Purchase Notices and the Excess Reply Notices to each of the
  Buyers, a notice accompanied by the copies of all Purchase Notices received
  by the Transferor of either
  non-acceptance of the offer pursuant to the Sale Notice or the acceptance thereof (hereinafter the “Acquisition
Notice”).

	
 

	
 

	
 

	
 

	
(1)

	
After
  receipt of the Acquisition Notice notifying acceptance, each Buyer shall purchase from the
  Transferor, and the Transferor shall sell and transfer to such Buyer the number of shares
  referred to in such notice according to the terms of the Sale Notice (other than in
  circumstances set forth in Article 29(g) above, in which case the provisions of
  said Article 29(g) will apply). Upon the transfer to Buyer such shares must be free and clear of any liens
  or encumbrances unless otherwise specified
  in the Sale Notice. The Transferor and such Buyer shall each have all remedies for breach of contract available under
  applicable laws in connection with the
  transactions set forth in this Article 29.

	
 

	
 

	
 

	
 

	
(m)

	
Any
  Transfer of shares by any Offeree pursuant to the exercise of its co-sale
  rights under Article 29A shall not give the other Offerees additional rights
  of first refusal and shall be deemed to have been part of the Offered Shares and
  included in the Sale Notice to the extent that the number of the shares
  being Transferred has not changed as a result of the exercise of co-sale
  rights. To the extent such number has changed, the provisions hereof shall apply to the
  transaction again, ab initio, and the Transferor shall give a new Sale Notice
  hereunder.

- 23 -

	
 

	
 

	
29A

	
CO SALE

	
 

	
 

	
 

	
 

	
(a)

	
Should
  any holder of Preferred Shares (other than Intel) (“Selling Shareholder”) wish to make a Transfer, other than
to a Permitted
  Transferee, then each of the holders of Preferred
  Shares other than Intel (the “Entitled
  Shareholders”) shall have the right to participate in the Selling Shareholder’s
  Transfer of such Offered Shares, in accordance with this Article 29A, pursuant to the
  specified terms and conditions stated in the Sale Notice, provided
  that an Entitled Shareholder who is also an Offeree for purposes of Article 29 above shall be entitled to elect
  whether to exercise its rights under either Article 29 or Article 29A and
  shall not be entitled to contingently exercise its rights under both such articles. Each of the Entitled
  Shareholders shall be entitled, upon written
  notice to the Selling Shareholder within twenty-one (21) Business Days after receipt
  of the Sales Notice (“Participating
  Preferred Shareholders”), to sell to the Transferee up to that
  number of the Shares in the Company owned by such Participating Preferred Shareholder (the “Equity Shares”)
determined by multiplying
  the total number of Offered Shares times a fraction the numerator of
  which is the number of Ordinary Shares
  owned by such Participating Preferred Shareholders (on an as-converted basis)
  and the denominator of which is the total number of Ordinary Shares owned by
  all Participating Preferred
  Shareholders (on an as-converted basis) and the Selling Shareholder. Such written notice shall
  indicate, subject to the terms of this Article 29A, the number of Shares that
  the Participating Preferred Shareholder intends to transfer to the
  Transferee. At the closing of the sale of the Offered Shares to the
  Transferee, the Selling Shareholder shall transfer his shares to the
  Transferee only if the Transferee concurrently therewith purchases, on the
  same terms and conditions specified in the Article
  29A Notice, all of the Shares as to which participation notices have been delivered.

	
 

	
 

	
 

	
 

	
(b)

	
Notwithstanding the provisions of Article 29A(a), no
  Transfer in one transaction or in a series of related transactions, of shares
  representing more than 50% of the issued and outstanding shares of the Company (on an as converted basis) may be
  made, other than to a Permitted
  Transferee, unless the proposed Transferee of such shares offers to purchase
  the remaining issued and outstanding shares of the Company upon the same terms and conditions. In such event, the
  consideration payable by the Transferee shall be distributed among all
  selling shareholders participating in such Transfer in accordance with the
  terms of Article 8.

	
 

	
 

	
29B

	
BRING ALONG

	
 

	
 

	
 

	
 

	
(a)

	
At any time prior to the
  Company’s QIPO, in the event that:

	
 

	
 

	
 

	
 

	
 

	
Shareholders holding 60% (sixty percent) or more
  (the “Threshold Percent”) of the
  Company’s issued and outstanding shares, on an as converted basis (the “Proposing Shareholders”)
  accept an offer to
  affect a Merger or Acquisition (the “Offer”);
  and

	
 

	
 

	
 

	
 

	
 

	
Such Merger or Acquisition is conditioned upon the
  consent and/or sale of all of the remaining
  issued shares of the Company; then all remaining shareholders (the “Non Proposing Shareholders”) will be
required, if so demanded by the
  Proposing Shareholders, to vote in
  favor of, execute the relevant documents, and otherwise take all
  necessary and reasonable actions relating to such Offer, including to sell
  their shares upon the same terms and conditions as in the Offer made to the
  Proposing Shareholders and the proceeds
  shall be allocated in accordance with the provisions of Article 8, provided however, that absent the
  written consent of the holders of the majority of the outstanding Series BB Preferred Shares (which must
  include also the Special BB
  Consent), the holders of the Preferred Shares shall not be forced to take any actions or sell their shares as aforesaid,
  if the Merger or the Acquisition does not reflect a Company price per
  share of more than two times the Original Issue Price of the Series BB-1
  Preferred Shares. In the event that the Threshold Percent is met, any sale, assignment, transfer, pledge,
  hypothecation, mortgage, disposal or encumbrance of the Shares by the Non Proposing Shareholders
  other than in connection with the Offer, shall be absolutely
  prohibited.

- 24 -

	
 

	
 

	
 

	
 

	
(b)

	
Notwithstanding the foregoing,
  the obligation of Intel to sell its shares (the “Transaction”) pursuant to this Article 29B
  shall be subject to the satisfaction of each of the following conditions:

	
 

	
 

	
 

	
 

	
(i)

	
Form of Consideration. Intel shall not be required to accept any
  consideration for its shares other than cash or freely tradeable
  equity securities (subject to a lock-up
  period of no more than 90 days following the issuance of such securities
  to Intel) which have been admitted to or listed upon (i) the Official List of the UK Listing Authority or (ii) the
  New York or American Stock Exchange or the NASDAQ National Market in
  the United States of America or (iii) the
  Neuer Markt or (iv) Euronext Paris S.A. or (v) such other stock exchange as Intel may agree.

	
 

	
 

	
 

	
 

	
(ii)

	
Equal Consideration. Subject to section (iii) below, upon the
  consummation of the Transaction,
  all of the holders of Preferred Shares will receive the same form and amount of consideration per Preferred
  Share, respectively, taking into account any liquidation preference to
  which the holders of Preferred Shares are
  entitled, and if any holders of Preferred Shares are given an option as
  to the form and amount of consideration to be received, all holders will be given the same option.

	
 

	
 

	
 

	
 

	
(iii)

	
Costs/Expenses. Intel shall not be required to incur any costs
  or expenses (without limitation whether by way of out of pocket expenses
  or by way of set off) in connection with the Transaction except its pro rata
  share of any costs incurred for the benefit of all of the Company’s
  shareholders and for which Intel has
  agreed in writing to be responsible in advance of such costs being incurred.
  For the avoidance of doubt Intel shall be solely responsible for any costs that it decides to incur
  including the costs of its own counsel.

	
 

	
 

	
 

	
 

	
(iv)

	
Representations, Warranties and
  Indemnities. The only
  representations, warranties or
  indemnities that Intel shall be required to make in connection with the Transaction are representations,
  warranties and indemnities concerning
  (i) legal ownership of the Company’s securities to be sold by Intel (the “Intel Securities”), and (ii) the
  corporate authority of Intel to convey
  title to the Intel Securities, and the ability to do so free and clear of liens,
  encumbrances or adverse claims (the “Intel
  Required Obligations”). The Intel Required Obligations shall be in
  the same form as those to be given by each of the other shareholders of the
  Company and shall be given by Intel on a
  several (but not joint) basis only.

- 25 -

	
 

	
 

	
 

	
 

	
(v)

	
Liability. Intel shall not accept, assume or be deemed to
  have assumed any joint, or joint
  and several, liability with any other shareholders), the Company or any other party, with respect to any
  representation, warranty, indemnity,
  covenant or combination thereof made by such other shareholder(s), the Company or other party in
  connection with the Transaction. Intel’s liability shall in any event
  be limited to the amount of consideration
  actually received by Intel in cleared funds.

	
 

	
 

	
 

	
 

	
(vi)

	
Escrow and Liability upon
  Escrow. In the event that
  consideration for any of the shares
  in the Company is to be placed in escrow (the “Escrow Amount”), such Escrow Amount will not exceed
  15% of the total consideration payable to
  all shareholders of the Company and that the Escrow Amount, to the extent that no claim has been made against it and for
  such amount as might remain following such claim, will be released to the
  shareholders at the latest three (3) months following the end of the
  acquiring company’s first accounting period
  after the consummation of the transfer of Intel’s shares or eighteen (18) months after the consummation of such transfer
  (the later of the two). Intel’s liability shall be limited to its pro
  rata share of the Escrow Amount (Intel’s pro rata share to be calculated on
  the basis of the consideration due to Intel as a proportion of the aggregate
  consideration due to all shareholders in the Company). For the avoidance of
  doubt, the Escrow Amount may be used to
  satisfy claims arising out of breaches by the Company of representations and
  warranties given by the Company in connection with a Transaction, all subject to the foregoing terms and conditions.

	
 

	
 

	
 

	
 

	
(vii)

	
US Securities. If the consideration proposed for Intel’s
  shares is in the form of
  securities of an issuer incorporated in the United States, Intel shall not be
  obligated to participate in the Transaction unless it is provided an
  opinion of counsel to the effect that the
  sale in connection with such Transaction is not in violation of the
  registration or qualification requirements of federal or applicable state securities laws in the United
  States, or, if Intel is not provided with such an opinion, the Company shall
  indemnify Intel for any violation.

	
 

	
 

	
 

	
 

	
(vii)

	
Other Agreements. Intel shall not be required to amend, extend or
  terminate any contractual or other relationship with the Company, the
  acquirer or their respective affiliates.

	
 

	
 

	
 

	
 

	
(viii)

	
Covenant Not to Compete. Intel shall not be required to agree to any covenants
  including without limitation any covenant not to compete or any covenant not to solicit any of the customers,
  employees or suppliers of any party to the Transaction.

	
 

	
 

	
 

	
Furthermore, notwithstanding
  the foregoing, the obligation of Orbotech to sell its shares (the “Orbotech
  Transaction”) pursuant to this Article 29B shall be subject to the
  condition that the only representations, warranties or indemnities that
  Orbotech shall be required to make in
  connection with the Orbotech Transaction are representations,
  warranties and indemnities concerning (i) legal ownership of the Company’s
  securities to be sold by Orbotech (the “Orbotech
  Securities”), and (ii) the
  corporate authority of Orbotech to convey title to the Orbotech Securities,
  and the ability to do so free and
  clear of liens, encumbrances or adverse claims (the “Orbotech Required
  Obligations”). The Orbotech
  Required Obligations shall be in the same form as those to be given by each
  of the other shareholders of the Company and shall be given by
  Orbotech on a several (but not joint) basis only.

- 26 -

	
 

	
 

	
29C.

	
STAND STILL

	
 

	
 

	
 

	
Notwithstanding anything to the contrary in these
  Articles, any issuance of securities by the Company,
  and any sale, transfer, pledge, encumbrance or other disposal of any of the securities of the Company (by the Company or any
  shareholder), or any other action (including repurchase of any shares
  of the Company by the Company or by any subsidiary thereof), other than any action in which the provisions of Article
  29B (Bring Along) shall apply, which results in a Strategic Investor (as
  defined below) whether or not a shareholder of the Company, holding (together
  with affiliates, Permitted Transferees, or other parties acting in concert
  with it) more than 20% of the voting rights in the Company, is prohibited unless approved in writing in advance by the
  Majority Preferred Shareholders (excluding, for the purposes of such majority, any Strategic
  Investors and their affiliates and Permitted Transferees or other parties acting in concert with them) and on terms
  and conditions approved by them. Any
  of the transactions set forth in the forgoing sentence not so approved shall be null and void and shall not
  be registered in the Company’s Shareholders Register. For purpose hereof a “Strategic Investor” shall mean a
  corporation or other business
  entity whose business is related to the Company’s business and who is likely
  to have a business or technologic
  interest in the Company’s business, as distinguished from an interest
  for the sole purpose of a financial investment.

CALLS

	
 

	
 

	
30.

	
A shareholder shall not be
  entitled to receive dividends nor to use any right a shareholder has, or receive any benefit or entitlement
  stated in these Articles (including without limitation, the rights set forth in Articles 7, 8,11, 12, 14, 29,29A,
  65 and 86 hereof), unless he has
  paid all the calls that shall be made from time to time prior to or on the
  date appointed for payment
  thereof, with respect of money unpaid on all of his shares, whether he is the
  sole holder or holds the shares together with another person, in addition to
  interest and expenses if there shall be any.

	
 

	
 

	
31.

	
The Board may, subject to the
  provisions of these Articles, make calls upon the shareholders from
  time to time in respect of any moneys unpaid on their shares, as they shall
  determine proper, upon the condition that
  there shall be given prior notice of fourteen (14) days on every call and each shareholder shall be
  obligated to pay the total amount requested from him, or the installment on account of the call
  (if there shall so be) at the times and places to be determined by the
  Board.

	
 

	
 

	
32.

	
The calls for payment shall be deemed to have been
  requested from the date the Board shall have decided upon the calls for
  payment.

	
 

	
 

	
33.

	
The joint holders of a share
  shall be jointly and severally liable to pay the calls for payment in
  full and the installment on account, in connection with such calls.

	
 

	
 

	
34.

	
If a sum called in respect of a
  share is not paid the holders of the share or the person to whom it has been issued shall be liable to pay
  interest and linkage differentials upon the amount of the call or the payments on account, as determined by the
  Board of Directors commencing from
  the day appointed for the payment thereof to the time of actual payment, but
  the Board shall be at liberty to waiver payment of that interest, wholly or
  in part.

- 27 -

	
 

	
 

	
35.

	
My amount that according to the condition of
  issuance of a share must be paid at the time of issuance or at a fixed date,
  whether on account of the sum of the share or premium, shall be deemed for the purposes of these Articles to be
  a call of payment that was made duly and the date of payment shall be the
  date appointed for payment. In the event of non-payment of this amount all of the Articles herein dealing with
  payment of interest, expenses, forfeiture, pledge and the like and all
  the other Articles connected therewith, shall apply, as if this sum had been duly requested and notice had been
  given, as aforesaid.

	
 

	
 

	
36.

	
The Board may make arrangements at the time of issue
  of shares for a difference between the
  holders with respect to the amount of calls to be paid and the times of
  payment, and the rate of interest.

	
 

	
 

	
37.

	
The Board may, if it thinks fit, receive from any
  shareholder willing to pay in advance all of the monies or a part thereof that shall be due on account of his
  shares, in addition to any amounts
  or a part thereof that shall be due on account of his shares, in addition to
  any amounts mat the payment in
  fact has been requested and they shall be permitted to pay him interest at the rate the Board and shareholders
  shall agree upon, for the amounts paid in advance as aforesaid, or upon the part thereof which is in excess of
  the amounts whose payment was at
  the time requested on account of his shares in connection with which the payments
  have been made in advance, in addition to paying dividends that will be paid
  for that part of the share which has been
  paid in advance. The Board of Directors may at any time repay any
  amount so advanced without premium or penalty by giving such shareholder
  seven days’ prior notice in writing. Nothing in this Article 37 shall
  derogate from the right of the Board of
  Directors to make any call before or after receipt by the Company of any such advance.

FORFEITURE OF SHARES

	
 

	
 

	
38.

	
If a shareholder fails to pay
  any call or installment of a call on the day appointed for payment thereof, the Board may, at any time thereafter
  during such time as any part of such call or installment remains unpaid, serve a notice on him requiring payment
  of so much of the call or
  installment as is unpaid, together with any interest which may have accrued
  and any expenses that were
  incurred as a result of such non-payment.

	
 

	
 

	
39.

	
The notice shall name a further day, not earlier
  than the expiration of seven days from the date
  of the notice, on or before which the amount of the call or installment or a
  part thereof is to be made together
  with interest and any expenses incurred as a result of such non-payment. The notice shall also state the place
  the payment is to be made and that in the event of non-payment, at or before the time appointed, the shares in
  respect of which the call was made will be liable to be forfeited.

	
 

	
 

	
40.

	
If the requirements of any such
  notice as aforesaid are not complied with, any share in respect of which the notice has been given may
  at any time thereafter, before the payment required by the notice has
  been made, be forfeited by a resolution of the Board to that effect. In such event, the provisions of Section 181 of
  the Companies Law shall apply, and the shares so forfeited shall be “dormant shares” as provided for therein.
  The forfeiture shall include those
  dividends that were declared but not yet distributed, with respect to the forfeited
  shares.

- 28 -

	
 

	
 

	
41.

	
A share so forfeited shall be deemed to be the
  property of the Company and can be sold or otherwise
  disposed of, on such terms and in such manner as the Board thinks fit,
  subject to applicable law. Such
  shares shall not be deemed, for the purposes of these Articles, to comprise part of the issued and outstanding share
  capital of the Company, and shall be disregarded
  for the purposes of calculations based thereon. At any time before a sale or disposition
  the forfeiture may be canceled on such terms as the Board thinks fit.

	
 

	
 

	
42.

	
A person whose shares have
  been forfeited shall cease to be a shareholder in respect of the forfeited
  shares, but shall notwithstanding remain liable to pay to the Company all
  monies which, at the date of forfeiture,
  were presently payable by him to the Company in respect of the shares, but
  his liability shall cease if and when the Company receives payment in full of
  all moneys that, at the date of forfeiture, were presently payable by
  him to the Company in respect of the shares (including interest and
  expenses).

	
 

	
 

	
43.

	
Without derogating from
  Article 30 above, the forfeiture of a share shall cause, at the time of forfeiture, the cancellation of all rights in
  the Company or any claim or demand against it with respect to that share and the other rights and obligations
  between the share owner and the
  Company accompanying the share, except for those rights and obligations not
  included in such a cancellation
  according to these Articles or that the Companies Law imposes upon former shareholders.

	
 

	
 

	
44.

	
The provisions of these
  Articles as to forfeiture shall apply in the case of non-payment of any sum which, by the terms of issue of a
  share, becomes payable at a fixed time, whether on account of this nominal
  value amount of the share, or by way of premium, as if the same had been
  payable by virtue of a call duly made and notified.

	
 

	
 

	
MODIFICATION OF CAPITAL

	
 

	
 

	
45.

	
Subject to the provisions of
  Article 12 above and to any applicable law, the Company may, from time
  to time, by resolution duly adopted according to these Articles:

	
 

	
 

	
 

	
 

	
(a)

	
consolidate and divide all or any of its issued or
  unissued share capital into shares of larger
  nominal value than its existing shares;

	
 

	
 

	
 

	
 

	
(b)

	
cancel any shares which have
  not been taken or agreed to be taken by any person;

	
 

	
 

	
 

	
 

	
(c)

	
by subdivision of its existing shares, or any of
  them, divide the whole, or any part, of its
  share capital into shares of smaller amounts than is fixed by the Memorandum
  of Association in a manner that with
  respect to the shares created as a result of the division it will be
  possible within the resolution of division to grant to one or more shares a preferable right or advantage with
  respect to dividend, capital, voting or otherwise over the remaining share or other similar shares;

	
 

	
 

	
 

	
 

	
(d)

	
reduce its share capital and any fund reserved for
  capital redemption in the manner that it shall deem to be correct.

- 29 -

INCREASE OF SHARE CAPITAL

	
 

	
 

	
46.

	
Subject to
  the provisions of Article 12 above and to any applicable law, the Company
  shall be permitted from time to time, by resolution duly adopted according to
  these Articles, to increase its share capital - whether or not all its shares
  have been issued, or whether the shares issued have been paid in full - by
  creation of new shares. This new capital shall be in such an amount, divided
  into shares in such amounts and have such preferable or deferred or other
  special rights (subject always to the special rights conferred upon an
  existing class of share), subject to any condition and restrictions with
  respect to dividends, return of capital, voting or otherwise, all as shall be
  directed by the general meeting in its resolution sanctioning the increase of
  the share capital.

	
 

	
 

	
47.

	
Subject to
  any decision to the contrary in the resolution sanctioning the increase in
  share capital, pursuant to these Articles, the new share capital shall be
  deemed to be part of the original share capital of the Company and shall be
  subject to the same provisions with reference to payment of calls, liens,
  title, forfeiture, transfer and otherwise as apply to the original share
  capital.

	
 

	
 

	
GENERAL
  MEETINGS

	
 

	
 

	
48.

	
A general
  meeting shall be held once in every calendar year at such time, being not
  more than fifteen months after the holding of the last preceding general
  meeting, and place as may be prescribed by the Board. The above mentioned
  general meetings shall be called “Annual General Meetings”. All other general
  meetings shall be called “Special General Meetings”.

	
 

	
 

	
49.

	
Subject to
  the provisions of these Articles the function of the Annual General Meeting
  shall be to receive and to deliberate with respect to the profit and loss
  statements, the balance sheets, the ordinary reports and accounts of the
  Board and auditors; to declare dividends, to appoint auditors and to fix
  their salaries. Every other matter shall be deemed to be special and shall be
  discussed at a Special General Meeting.

	
 

	
 

	
50.

	
The
  directors or anyone of them may, whenever they think fit, and upon a
  requisition in writing as provided for in the Companies Law, convene a
  Special General Meeting. Every such requisition shall include the objects for
  which a meeting should be convened, shall be signed by the requisitioners and
  shall be sent to the registered Office of the Company. If the Board of
  Directors does not convene a meeting within 21 days from the date of the
  submission of the requisition as aforesaid, the requisitioners may convene by
  themselves a meeting. However, the meeting which was so convened shall not be
  held after three months have passed since the date of the submission of the
  requisition.

	
 

	
 

	
NOTICE OF
  GENERAL MEETINGS

	
 

	
 

	
51.

	
A prior
  notice of 14 days at least shall be sufficient for any general meeting,
  including any meeting at which it is being proposed to amend the Memorandum
  of Association and/or Articles of Association and, accordingly, prior notice
  of at least 14 days shall be given with respect to the place, date and hour
  of the meeting, and in the event that a special matter shall be discussed, a
  general description of the nature of that matter. The notice shall be given,
  as herein below provided for, to the shareholders entitled pursuant to these
  Articles to vote at the meeting. The notice shall be sufficient for any
  meeting of shareholders including a meeting at which it is proposed to amend
  the Memorandum of Association and/or Articles of Association. If, by chance,
  a notice as aforesaid was not given or not received by a shareholder,
  this shall not amount to a disqualification of the resolution passed or
  disqualification of the proceedings held at that meeting. With the consent of
  all the shareholders who are entitled, at that time, to vote, it shall be
  permitted to convene all meetings and to resolve all types of resolutions,
  upon a shorter advance notice or without any notice and in such manner,
  generally, as such be approved by the shareholders.

- 30 -

	
 

	
 

	
QUORUM

	
 

	
 

	
52.

	
No
  deliberation shall be commenced with respect to any matter at the general or
  special meeting unless there shall be present a quorum at the time when the
  general meeting proceeds to deliberate. In any meeting a quorum shall be
  formed when there are present personally or by proxy not less than two shareholders
  who hold or represent together the majority of the voting rights of the
  issued share capital of the Company, providing that one of such two
  shareholders present shall be a holder of Preferred Share(s) of the Company.

	
 

	
 

	
53.

	
If within
  half an hour from the time appointed for the meeting a quorum is not present,
  the meeting, if convened by the Board upon the demand of shareholders or upon
  the demand of less than 50% of the directors then in office or directly by
  such shareholders or directors, shall be cancelled. Otherwise, if within half
  an hour from the time appointed for the meeting a quorum is not present, the
  meeting shall stand adjourned to the same day in the next week at the same
  place and time, or any other day and/or any other hour and/or any other place
  as the Board shall notify the shareholders, and, if at the second meeting a
  quorum is not present within half an hour from the time appointed for the
  meeting any two shareholders present personally or by proxy shall be a
  quorum, and shall be entitled to deliberate and to resolve in respect of the
  matters for which the meeting was convened. Shareholders may participate by
  means of conference telephone or similar communications equipment by means of
  which all persons participating in the meeting can hear each other, and such
  participation in a meeting shall constitute attendance in person at the
  meeting. The secretary of the meeting shall confirm attendance by telephone
  to the Chairman.

	
 

	
 

	
CHAIRMAN

	
 

	
 

	
54.

	
The
  Chairman of the Board of Directors shall preside as chairman at all general
  meetings. If there is no Chairman or he is not present within 15 minutes from
  the time appointed for the meeting or if he shall refuse to preside at the
  meeting, the shareholders present shall elect one of the directors to act as
  Chairman, and if only one director is present he shall act as Chairman. If no
  directors are present or if they all refuse to preside at the meeting the
  shareholders present shall elect one of the shareholders present to preside
  at the meeting. The Chairman shall have no special rights or privileges and
  no second or casting vote.

	
 

	
 

	
POWER TO
  ADJOURN

	
 

	
 

	
55.

	
The
  Chairman may, with the consent of any meeting at which a quorum is present,
  and shall if so directed by the meeting, adjourn the meeting from time to
  time and from place to place, as the meeting shall decide. At an adjourned
  meeting no matters shall be discussed except for those permissible to be
  discussed at that meeting which decided upon the adjournment.

- 31 -

	
 

	
 

	
ADOPTION OF
  RESOLUTIONS

	
 

	
 

	
56.

	
At every
  meeting a resolution put to the vote of the meeting shall be decided upon by
  a show of hands, unless before or upon the declaration of the result of the
  show of hands a secret ballot in writing be demanded by the Chairman (if he
  is entitled to vote) or by any shareholder present, in person or by proxy,
  and entitled to vote at the meeting. Except if a secret vote is demanded as
  aforesaid, the declaration of the Chairman that the resolution has been
  carried or carried unanimously or by a particular majority, or lost, or not
  carried by a particular majority, shall be final, and an entry to that effect
  in the minute book of the Company, shall be conclusive evidence of the fact
  without the necessity of proving the number or proportion of the votes
  recorded in favor or against such a resolution. Subject to any provision in
  this regard in the Companies Law, or in these Articles, all resolutions of
  the shareholders including without limitation with respect to a merger, a
  change of the Company’s name, modification or alterations of the Company’s
  share capital and the amendment of the Company’s Memorandum of Association in
  accordance with such resolution and the amendment or replacement of the
  Company’s Articles of Association shall be deemed adopted at a General
  Meeting at which a quorum is present if approved by a simple majority of the
  voting rights of the Company represented personally or by proxy and voting
  thereon.

	
 

	
 

	
57.

	
If a secret
  ballot is duly demanded, it shall be taken in such manner as the Chairman
  directs, whether immediately or after an adjournment or in a postponed manner
  or otherwise, and the results of the ballot shall be deemed to be a
  resolution of the meeting wherein the secret ballot was demanded. Those
  requesting a secret ballot can withdraw their request at any time before the
  secret ballot is held. A secret ballot demanded on the election of a
  Chairman, or on a question of adjournment shall be taken forthwith. A secret
  ballot demanded on any other question shall be taken at such time as the
  Chairman of the meeting directs. A demand for a secret ballot shall not
  prevent the continuation of the meeting with respect to the transaction of
  any other business, except for the manner with respect to which the secret
  ballot was demanded. All demands or notices hereunder may be submitted by
  facsimile.

	
 

	
 

	
VOTES OF
  SHAREHOLDERS

	
 

	
 

	
58.

	
Subject to
  and without derogating from the right or preference rights or restrictions
  existing at that time with respect to a certain class of shares forming of
  the capital of the Company, each shareholder present at a meeting, personally
  or by proxy, shall be entitled, whether at a vote by show of hands or by
  secret ballot, to one vote for each Ordinary Share held by him calculated,
  with respect to the Preferred Shares, on an as-converted basis, provided that
  no shareholder shall be permitted to vote any shares at a general meeting or
  appoint a proxy to vote therein except if he has paid all calls for payment
  prior to or on the day appointed for payment thereof and all monies due to
  the Company from him prior to or on the day appointed for payment thereof
  with respect to such shares.

	
 

	
 

	
59.

	
In the case
  of joint holders the vote of the senior who tenders a vote, whether in person
  or by proxy, shall be accepted to the exclusion of the votes of the other
  joint holders; and for the purpose of this article seniority shall be
  determined by the order in which the names stand in the register of
  shareholders. Joint holders of a share of which one of them is present at a
  meeting shall not vote by proxy. The appointment of a proxy to vote on behalf
  of a share held by joint holders shall be executed by the signature of the
  senior of the joint holders.

- 32 -

	
 

	
 

	
 

	
60.

	
PROXIES

	
 

	
 

	
 

	
 

	
(a)

	
In every
  vote a shareholder shall be entitled to vote either personally or by proxy. A
  proxy present at a meeting shall also be entitled to request a secret ballot.
  A proxy need not be a shareholder of the Company.

	
 

	
 

	
 

	
 

	
(b)

	
A
  shareholder of the Company that is a corporation or partnership shall be
  entitled by decision of its Board of Directors or by a decision of a person
  or other duly authorized body, to appoint a person who it shall deem fit to
  be its representative at every meeting of the Company. The representative,
  appointed as aforesaid, shall be entitled to perform on behalf of the
  corporation he represents all the powers that the corporation itself may use
  just as if it was a person.

	
 

	
 

	
 

	
61.

	
(a)

	
A vote
  pursuant to an instruction appointing a proxy shall be valid notwithstanding
  the death of the appointor or the appointor becoming of unsound mind or the
  cancellation of the proxy or its expiration in accordance with any law, or
  the transfer of the shares with respect to which the proxy was given, unless
  a notice in writing was given of the death, becoming of unsound mind,
  cancellation or transfer and was received at the Office before the meeting
  took place.

	
 

	
 

	
 

	
 

	
(b)

	
A
  shareholder is entitled to vote by a separate proxy with respect to each
  share held by him provided that each proxy as aforesaid shall have a separate
  letter of appointment containing the serial number of the shares with respect
  to which the proxy is entitled to vote. If a specific share is included by
  the holder in more than one letter of appointment, that share shall not
  entitle any of the holders of such instrument to a vote.

	
 

	
 

	
 

	
INSTRUMENT
  OF APPOINTMENT

	
 

	
 

	
 

	
62.

	
A letter of
  appointment of a proxy or power of attorney or other certificate (if there
  shall be such) pursuant to which the appointee is acting, shall be in writing
  and such instrument or a copy thereof shall be deposited in the Office, or in
  another place in Israel or abroad - as the Board shall direct from time to
  time generally or with respect to a particular case, no later than upon the
  commencement of the meeting or adjourned meeting wherein the person referred
  to in the instrument is appointed to vote, otherwise that person shall not be
  entitled to vote that share. An instrument appointing a proxy and which is
  not limited in time or by the occurrence of an event (such as an IPO) shall
  not be valid 12 months after the date of its execution. If the appointment
  shall be for a limited period or until the occurrence of an event (such as an
  IPO), the instrument shall be valid for the period or until the occurrence of
  the event contained therein.

	
 

	
 

	
 

	
63.

	
An
  instrument appointing a proxy (whether for a specific meeting or otherwise)
  may be in the following form or in any other similar form which the
  circumstances shall permit:

	
 

	
 

	
 

	
“I, ____________, of ______________, a
  shareholder holding shares in ____________ and entitled to __________ votes
  hereby appoint _____________, of __________, or in his place
  ________________, of ______________, to vote in my name and in my place at
  the general meeting (annual, special, adjourned - as the case may be) of the
  Company to be held on the ____ day of ____________, 2______ and at any
  adjournment thereof.

- 33 -

In witness
  whereof, I have hereby affixed my signature the___ day of____________, 2____.

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Appointor’s
  Signature

	
 

	
 

	
 

	
 

	
64.

	
RESERVED

	
 

	
 

	
 

	
 

	
65.

	
DIRECTORS

	
 

	
 

	
 

	
 

	
 

	
(a)

	
The Board of
  Directors shall consist of up to nine (9) members who shall be appointed as
  follows:

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
each of
  Pitango, Star, Genesis and Orbotech shall be entitled to appoint one (1) director
  to the Board of Directors of the Company for so long as it holds Preferred
  Shares constituting more than 5% of the issued and outstanding share capital
  of the Company, on an as converted basis, and thereafter the directorship
  which was vacated shall be held by a director appointed by the holders of the
  majority of the Series AA Preferred Shares not otherwise entitled to appoint
  a director pursuant to this Article 65(a)(l);

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
each of
  Poalim Ventures and Wellington shall be entitled to appoint one (1) director
  for so long as it holds Preferred Shares constituting more than 3% of the
  issued and outstanding share capital of the Company, on an as converted basis
  and thereafter the directorship which was vacated shall be held by a director
  appointed by the holders of the majority of the Series BB Preferred Shares;

	
 

	
 

	
 

	
 

	
 

	
 

	
(3)

	
the majority
  of the directors appointed pursuant to Articles 65(a)(l) and(2) above shall
  be entitled to appoint up to two (2) directors, who shall be independent
  industry experts; and

	
 

	
 

	
 

	
 

	
 

	
 

	
(4)

	
the Chief
  Executive Officer (“CEO”) of the Company shall be a director if he or she is
  appointed as a director by a majority of the directors appointed pursuant to
  Articles 65(a)(l) and(2) above;

	
 

	
 

	
 

	
 

	
 

	
(b)

	
Amadeus
  shall be entitled to appoint one (1) observer to the Board for so long as it
  holds Preferred Shares constituting more than 5% of the issued and
  outstanding share capital of the Company, on as converted basis.

	
 

	
 

	
 

	
 

	
 

	
(c)

	
Observers to
  the Board of Directors shall be entitled to attend all Board of Directors
  meetings and in this capacity, to receive all notices of meetings and any
  documentation the Company provides to the Company’s directors before, during
  or after such meetings, subject to restrictions relating to attorney-client
  privilege, and shall be subject (other than an observer appointed by Intel)
  to the same fiduciary duties that apply to members of the Board of Directors.

- 34 -

	
 

	
 

	
 

	
 

	
(d)

	
The
  provisions of this Article 65 shall be in force until the QIPO.

	
 

	
 

	
 

	
66.

	
(a)

	
The
  directors and observers shall be appointed as set forth in Article 65 and may
  be removed and vacancies filled by those entitled to appoint, as specified in
  Article 65. Notice of appointment or removal shall become effective on the
  date fixed in the notice of appointment or removal, or upon delivery thereof
  to the Company, whichever is later. For avoidance of doubt, in the event that
  a seat of the Board of Directors is vacated, and no one is entitled to
  replace such vacated seat, then such vacated seat shall remain vacant and the
  number of directors shall be reduced accordingly.

	
 

	
 

	
 

	
 

	
(b)

	
If the
  office of any member of the Board of Directors is vacated, the other members
  of the Board of Directors may act in every way and manner so long as their
  number does not fall below two, at least one of which was appointed by the
  holders of the Preferred Shares. If their number falls below two, or if there
  are only two directors but none of them were appointed by the holder of the
  Preferred Shares, they may act only in an emergency, for convening General
  Meetings and for providing written notice to those shareholders or groups of
  shareholders who are entitled to fill the vacancies, of such vacancies. In
  the event that within 10 days following mailing of such written notices the
  vacancies are not filled, the directors in office, whatever their number or
  by whom appointed, may act in every way and manner.

	
 

	
 

	
 

	
67.

	
Subject to
  the provisions of these Articles or to the provisions of an existing
  contract, the tenure of office or the director shall automatically be
  terminated:

	
 

	
 

	
 

	
 

	
(1)

	
if he
  becomes bankrupt;

	
 

	
 

	
 

	
 

	
(2)

	
if he is
  declared lunatic or becomes of unsound mind;

	
 

	
 

	
 

	
 

	
(3)

	
if he has
  resigned by an instrument in writing to the Company;

	
 

	
 

	
 

	
 

	
(4)

	
if he is
  removed from office pursuant to Articles 65 and 66 above;

	
 

	
 

	
 

	
 

	
(5)

	
with his
  death;

	
 

	
 

	
 

	
 

	
(6)

	
if he is the
  CEO, upon termination of his position as CEO (or earlier, if removed pursuant
  to Articles 65 and 66 above, as aforesaid); or

	
 

	
 

	
 

	
 

	
(7)

	
if a
  company, with its liquidation.

	
 

	
 

	
 

	
68.

	
ALTERNATIVE
  DIRECTOR

	
 

	
 

	
 

	
 

	
(a)

	
Any person
  who is qualified to be appointed as a Director may serve as a substitute
  director even if he is a member of the Board of Directors or a substitute
  Director, (hereinafter “substitute”).

	
 

	
 

	
 

	
 

	
(b)

	
A substitute
  shall have one vote.

- 35 -

	
 

	
 

	
 

	
 

	
(c)

	
A substitute
  shall have, subject to the provisions of the instrument by which he was
  appointed, all the powers and authorities that the director for which he is
  serving as director, has.

	
 

	
 

	
 

	
 

	
(d)

	
The provision
  of this Article with respect to the appointment of a director shall apply
  with respect to an appointment of a substitute.

	
 

	
 

	
 

	
 

	
(e)

	
The office
  of a substitute director shall be automatically vacated if his appointment is
  terminated by the director who appointed him in accordance with these
  regulations, or upon the occurrence of one of the events described in
  Articles (1), (2), (3), (5), (6) or (7) of Article 67 or, if the office of
  the member of the Board of Directors with respect to whom he serves as a
  substitute shall be vacated for any reason whatsoever.

	
 

	
 

	
 

	
 

	
(f)

	
The
  substitute director has the right to receive notice of convening of a Board
  of Directors meeting and may participate or vote at such meeting only if the
  director appointing said substitute is absent from said meeting.

	
 

	
 

	
 

	
69.

	
REMUNERATION
  OF DIRECTOR

	
 

	
 

	
 

	
 

	
Members of
  the Board of Directors, not being employees of the Company or professionals
  providing special professional services for consideration to its members -
  shall not receive a salary from funds of the Company unless the general
  meeting has so decided and in the amount that the general meeting shall
  decide upon. The directors, and their substitutes, shall be entitled to
  receive expenses, in an acceptable rate, for travel expenses, board and
  lodging that have been expended for or during the performance of their duties
  as directors, and including travel expenses to the Board meetings and return.
  If pursuant to a decision of the Board, one of the directors shall perform
  services or tasks aside from his regular duties as a director, whether as a
  result of his particular profession or by a trip or stay abroad or otherwise,
  the Board may decide to pay him a preferred wage in addition to his regular
  salary, and such a wage shall be paid by way of salary, commission,
  participation in profits or otherwise and this wage shall be in addition to
  his regular salary, if there shall be any, or will be in place thereof, as
  shall be decided.

	
 

	
 

	
 

	
70.

	
POWER AND
  DUTIES

	
 

	
 

	
 

	
 

	
The
  management of the business of the Company shall be vested in the Board of
  Directors. They shall be entitled to exercise all the powers and authorities
  that the Company has and to perform in its name all the acts that it is
  entitled to do according to its memorandum of association and/or Articles
  and/or the Companies Law except for those which are pursuant to the Companies
  Law or the Articles vested in the general meeting of the Company, subject to
  any provisions in the Companies Law or in these Articles or the regulations that
  the Company shall adopt in its general meeting (insofar as they do not
  contradict the Companies Law or these Articles). However any article adopted
  by the Company in its general meeting shall not affect the legality of any
  prior act of the Board that would be legal and valid, if not for such an
  article.

	
 

	
 

	
 

	
71.

	
A director
  shall not be required to hold qualifying shares.

- 36 -

CONFLICT OF
  INTEREST

	
 

	
 

	
 

	
72.

	
A director
  shall not be prohibited from fulfilling his rights and duties under these
  Articles or from entering into contracts with the Company whether as a
  seller, buyer or otherwise, and no such contract or arrangement which shall
  be made on behalf of the Company or in its name wherein the director is or
  will be an interested party, either directly or indirectly, shall be void
  provided, however that:

	
 

	
 

	
 

	
 

	
(a)

	
any
  transaction between a director and the Company must be approved both by the
  Board of Directors and the Audit Committee of the Company, or, if no Audit
  Committee has been created, by the General Meeting;

	
 

	
 

	
 

	
 

	
(b)

	
the
  interested director may not participate or vote at the Board of Directors at
  which approval is sought unless all other directors are interested directors,
  but shall be counted toward the quorum necessary for commencing deliberations
  at such meeting; and

	
 

	
 

	
 

	
 

	
(c)

	
the
  interested director must, in addition to disclosing the substance of his
  interest in the transaction for which approval is sought, also disclose any
  material facts and documents relating thereto. The provisions of this article
  shall apply also to a substitute or alternate director, if it is appropriate.

	
 

	
 

	
 

	
73.

	
A director
  may hold another paid position or function in the Company or in any other
  company that the Company is a shareholder of or that it has some other
  interest in, together with his position as a director (except an auditor)
  upon those conditions with respect to salary and other matters as decided by
  the Board.

	
 

	
 

	
 

	
74.

	
FUNCTIONS OF
  THE DIRECTORS

	
 

	
 

	
 

	
 

	
The Board
  may meet in order to transact business, to adjourn its meetings or to
  organize them otherwise as it shall deem fit and to determine the legal
  quorum necessary to conduct business, provided that the quorum for a meeting
  of the Board of Directors shall consist of at least a majority of the directors
  then in office. A director whose presence is required for purposes of a
  quorum as aforesaid may by written notice to the Company waive the
  requirement for his presence in order to constitute a quorum. If within half
  an hour from the time appointed for the meeting a quorum is not present, the
  meeting shall stand adjourned to the second business day following the day
  originally scheduled, and at such adjourned meeting 4 directors shall
  constitute a quorum notwithstanding that a director appointed by any specific
  shareholder or class of shareholders is not present.

	
 

	
 

	
 

	
75.

	
CHAIRMAN

	
 

	
 

	
 

	
 

	
The Board
  may from time to time elect, by a simple majority, a Chairman, and decide the
  period of time he shall hold such an office, and he shall preside at the
  meetings of the Board of Directors. However, if such a Chairman is not
  elected or if he is not present at any meeting, the Board may, by a simple
  majority, choose one of its members to serve as Chairman of that meeting.

	
 

	
 

	
 

	
 

	
The Chairman
  shall have no rights or privileges other than those granted to directors and
  shall not have a second of casting vote.

- 37 -

	
 

	
 

	
 

	
MEETINGS

	
 

	
 

	
 

	
76.

	
A member of
  the Board of Directors may at any time call a Board of Directors’ meeting,
  and the secretary shall be required on the request of such member to convene
  a Board of Directors’ meeting.

	
 

	
 

	
 

	
 

	
(a)

	
Any notice
  of a Board of Directors’ meeting can be given, in writing, or by fax or email
  provided that the notice is given seven (7) days before the time appointed
  for the meeting, unless all the members of the Board of Directors having
  received a shorter notice, shall agree to such a shorter notice, provided,
  however, that a four (4) days notice will be sufficient if the majority of
  the directors then in office agree to such shorter notice.

	
 

	
 

	
 

	
 

	
(b)

	
Unless
  otherwise provided by these Articles, all acts and determinations of the
  Board of Directors shall be determined by a simple majority of those
  attending and voting.

	
 

	
 

	
 

	
 

	
(c)

	
Members of
  the Board of Directors, or any committee designated by the Board of
  Directors, may participate in a meeting of the Board of Directors, or any
  committee, by means of conference telephone or similar communications
  equipment by means of which all persons participating in the meeting can hear
  each other, and such participation in a meeting shall constitute attendance
  in person at the meeting.

	
 

	
 

	
 

	
77.

	
DELEGATION
  OF POWER

	
 

	
 

	
 

	
 

	
(a)

	
Subject to
  applicable law, the Board of Directors may delegate any of their powers to
  committees consisting of such member or members of their body as they deem
  fit and may, from time to time, revoke such delegation. No committee of the
  Board of Directors shall be established except by unanimous consent of all
  directors.

	
 

	
 

	
 

	
 

	
(b)

	
In the
  exercise of any power delegated to it by the Board of Directors all
  committees shall conform to any regulations that may be imposed upon them by
  the Board of Directors, if there shall be any such regulation. If no such
  regulations are adopted by the Board of Directors or if there are no complete
  and encompassing regulations, the committees shall act pursuant to these
  Articles dealing with organization of meetings, meetings and functions of the
  Board of Directors, mutatis mutandis, and insofar as no provision of the
  Board of Directors shall replace it pursuant to this article.

	
 

	
 

	
 

	
 

	
(c)

	
All actions
  performed in a bona fide fashion by the Board of Directors or by a committee
  of the Board of Directors, or by any person acting as a director or as a
  substitute shall be as valid, even if at a later date a flaw shall be
  discovered in the appointment of such a director or such a person acting as
  aforesaid, or that all or some of them were unfit as if each and every one of
  those persons shall have been duly appointed and fit to serve as a director
  or substitute as the case may be.

	
 

	
 

	
 

	
80.

	
GENERAL
  MANAGER

	
 

	
 

	
 

	
 

	
(a)

	
The Board
  may from time to time appoint one or more persons, whether or not he is a
  member of the Board of Directors, as the CEO of the Company, either for a
  fixed period of time or without limiting the time that he or they will stay
  in office, and the Board may
  from time to time (subject to any provision in any contract between him or
  them and the Company) release him or them from their office and appoint
  another or others in his or their place.

- 38 -

	
 

	
 

	
 

	
 

	
 

	
(b)

	
The Board of
  Directors may from time to time grant and bestow upon the general manager, at
  that time, those powers and authorities that it exercises pursuant to these
  Articles, as it shall deem fit, and may grant those powers and authorities
  for such period, and to be exercised for such objectives and purposes and in
  such time and conditions, and on such restrictions, as it shall decide; and
  it may grant such authorities whether concurrently with the Board of
  Directors’ authorities in that area, or in excess of them, or in place
  thereof or any one of them, and it can from time to time revoke, repeal, or
  change any one or all of those authorities.

	
 

	
 

	
 

	
 

	
 

	
(c)

	
Notwithstanding
  the aforesaid in Article 69 the wages of the general manager shall be
  determined from time to time by the Board of Directors (subject to any
  provision in any contract between him and the Company) and it may be paid by
  way of a fixed salary or commission or dividends, or a percentage of profits
  or the Company profit turnover or of any other Company that the Company has
  an interest in, or by participation in such profits, or in one or more of the
  aforementioned methods.

	
 

	
 

	
 

	
 

	
81.

	
MINUTES

	
 

	
 

	
 

	
 

	
 

	
(a)

	
The Board
  shall cause minutes to be taken of all general meetings of the Company, of
  the appointments of officials of the Company, of Board of Directors’ meetings
  and of committee meetings that shall include the following items, if
  applicable:

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
the names of
  the members present;

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
the matters
  discussed at the meeting;

	
 

	
 

	
 

	
 

	
 

	
 

	
(3)

	
the results
  of the vote;

	
 

	
 

	
 

	
 

	
 

	
 

	
(4)

	
resolutions
  adopted at the meeting;

	
 

	
 

	
 

	
 

	
 

	
 

	
(5)

	
directives
  given by the meeting to the committees;

	
 

	
 

	
 

	
 

	
 

	
 

	
(6)

	
if
  requested, any reservation of a shareholder or director with regard to a
  matter discussed or resolution passed.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
The minutes
  of any meeting shall serve as prima facie proof as to the facts in the
  minutes if the minutes are reviewed and approved at the next succeeding
  meeting and are signed by the Chairman of that next succeeding meeting.

	
 

	
 

	
 

	
 

	
82.

	
RESOLUTION
  IN WRITING

	
 

	
 

	
 

	
 

	
 

	
A resolution
  in writing signed by all shareholders of the Company or by all the members of
  the Board of Directors, or of a committee, or such a resolution that all the
  shareholders of the Company then entitled to vote at General Meetings, the
  members of the Board of Directors or a committee have agreed to in writing or
  by fax shall be valid for every purpose as a resolution adopted at a General
  Meeting, Board of Directors’ or committee meeting, as the case may be, that
  was duly convened and held. In place of a shareholder or director, as the
  case may be, any such aforesaid resolution may be signed and delivered by his
  substitute.

- 39 -

	
 

	
 

	
 

	
83.

	
SEAL, STAMP
  AND SIGNATURES

	
 

	
 

	
 

	
 

	
(a)

	
The Board
  shall cause the seal (if the Company shall have a seal) to be kept in
  safekeeping and it shall be forbidden to use the seal unless prior permission
  of the Board of Directors is given. If such permission was given, the seal
  shall be affixed in the presence of whoever has been so appointed by the
  Board of Directors, and he shall sign any document upon which the seal has
  been affixed.

	
 

	
 

	
 

	
 

	
(b)

	
The Company
  shall have at least one rubber stamp. The Board shall ensure that such a
  stamp is kept in a safe place.

	
 

	
 

	
 

	
 

	
(c)

	
The Board of
  Directors may designate and authorize any person or persons (even if they are
  not members of the Board of Directors) to act and to sign in the name of the
  Company, and the acts and signatures of such a person or persons shall bind
  the Company, insofar as such persons have acted and signed within the limits
  of their aforesaid authority.

	
 

	
 

	
 

	
 

	
(d)

	
The printing
  of the name of the Company by a typewriter or by hand next to the signatures
  of the authorized signatories of the Company, pursuant to sub-article (c)
  above, shall be valid as if the rubber stamp of the Company was affixed.

	
 

	
 

	
 

	
84.

	
BRANCH
  REGISTERS

	
 

	
 

	
 

	
 

	
The Company
  may, subject to the provisions of the Companies Law or any other applicable
  law that may substitute such provisions, keep in every other country where
  those provisions shall apply, a register or registers of shareholders living
  in that other country as aforesaid, and to exercise any other powers referred
  to in the laws with respect to such branch registers.

	
 

	
 

	
 

	
85.

	
THE
  SECRETARY, OFFICERS AND ATTORNEYS

	
 

	
 

	
 

	
 

	
(a)

	
The Board of
  Directors may appoint a secretary of the Company upon the conditions that it
  deems fit. The Board may as well, from time to time, appoint an associate
  secretary who shall be deemed to be the secretary for the period of his
  appointment.

	
 

	
 

	
 

	
 

	
(b)

	
The Board of
  Directors may, from time to time appoint to the Company, officers, workers,
  agents and functionaries to permanent, temporary or special positions, as it
  shall, from time to time, see fit and set compensation for them.

	
 

	
 

	
 

	
 

	
(c)

	
The Board
  may, at any time and from time to time, authorize any Company, firm, person
  or group of people, whether this authorization is done by the Board directly
  or indirectly, to be the attorneys in fact of the Company for those purposes
  and with those powers and discretion which shall not exceed those conferred
  upon the Board of Directors or that the Board of Directors can exercise
  pursuant to these Articles - and for such a period of time and upon such
  conditions as the Board deems proper, and every such authorization may
  contain such directives as the Board of Directors deems proper for the
  protection and benefit of the persons dealing with such attorneys.

- 40 -

	
 

	
 

	
 

	
86.

	
DIVIDEND

	
 

	
 

	
 

	
 

	
Subject to
  the provisions of the Companies Law and these Articles, including without
  limitation the provisions of Articles 7, 8 and 12 and subject to any rights
  or conditions of Preferred Shares and other rights and conditions attached at
  that time to any share in the capital of the Company granting preferential,
  special or deferred rights or not granting any rights with respect to
  dividends, the profits of the Company shall be distributable to the
  shareholders of the Company according to the proportion of the nominal value
  paid up or credited as paid up on account of the shares held by them at the
  date so appointed by the Company, without regard to the premium paid in
  excess of the nominal value. A distribution, setting aside or declaration of
  dividend requires a decision of the Board of Directors.

	
 

	
 

	
 

	
 

	
The Board of
  Directors may issue any share upon the condition that a dividend shall be
  paid at a certain date or that a portion of the declared dividend for a
  certain period shall be paid, or that the period for which a dividend shall
  be paid shall commence at a certain date, or a similar condition, all as
  decided by the Board of Directors. In every such case - subject to the
  provision mentioned in the beginning of this article - the dividend shall be
  paid in respect of such a share in accordance with such a condition.

	
 

	
 

	
 

	
87.

	
Subject to
  the provisions of the Companies Law, at the time of declaration of a dividend
  the Board of Directors may decide that such a dividend shall be paid in part
  or in whole, by way of distribution of certain properties, especially by way
  of distribution of fully paid up shares or debentures or debenture stock of
  the Company, or by way of distribution of fully paid up shares or debentures
  or debenture stock of any other Company or in one or more of the aforesaid
  ways. For purposes of any such distribution, the outstanding Preferred Shares
  shall be deemed to have been converted into Ordinary Shares as of the time
  appointed by the Board of Directors for the purpose of determining
  entitlement to participate in such distribution.

	
 

	
 

	
 

	
88.

	
dividends
  payable on shares which are not fully paid up, will be first applied to any
  unpaid amount on such shares even if such payments are not yet due, pursuant
  to the terms of issuance or as provided in these Articles, and any excess
  will be distributed to the holder of such shares as set forth herein.

	
 

	
 

	
 

	
89.

	
The Board of
  Directors may put a lien on any dividend on which the Company has a charge,
  and it may use it to pay any debts, obligations or commitments with respect
  to which the charge exists.

	
 

	
 

	
 

	
90.

	
A transfer
  of shares shall not transfer the right to a dividend which has been declared
  after the transfer but before the registration of the transfer. The person
  registered in the register as a shareholder on the date appointed by the company
  for that purpose shall be the one entitled to receive a dividend.

	
 

	
 

	
 

	
91.

	
Reserved.

	
 

	
 

	
 

	
92.

	
A notice of
  the declaration of a dividend, whether an interim dividend or otherwise,
  shall be given to the shareholders registered in the register, in the manner
  provided for in these Articles.

- 41 -

	
 

	
 

	
 

	
93.

	
If no other
  provision is given, the dividend may be paid by check or payment order to be
  mailed to the registered address of a shareholder or person entitled thereto
  in the register or, in the case of registered joint owners, to the addresses
  of one of the joint owners as registered in the register. Every such check
  shall be made out to the person it is sent to. The receipt of the person who,
  on the date of declaration of dividend, is registered as the holder of any
  share or, in the case of joint holders, of one of the joint holders, shall
  serve as a release with respect to payments made in connection with that
  share.

	
 

	
 

	
 

	
94.

	
(a)

	
Subject to
  Article 12 above, if at any time the share capital shall be divided into
  different classes of shares, the distribution of fully paid up shares, from
  funds pursuant to Article 95 below, shall be made in one of the two following
  manners as to be decided upon by the Board:

	
 

	
 

	
 

	
 

	
 

	
(i) In such
  a manner so that all the holders of a share entitled to fully paid up shares
  shall receive one uniform class of shares; or

	
 

	
 

	
 

	
 

	
 

	
(ii) In such
  manner so that each holder of shares entitled to fully paid up shares as
  aforesaid shall receive shares of the class of shares held by him and entitling
  him to fully paid up shares, as aforesaid.

	
 

	
 

	
 

	
 

	
(b)

	
In order to
  give effect to any resolution in connection with the distribution of
  dividends, or distribution of property, fully paid-up shares or debentures,
  the Board of Directors may resolve any difficulty that shall arise with
  distribution as it shall deem necessary, especially to issue certificates for
  fractional shares and to determine the value of certain property for purposes
  of distribution, and to decide that payment in cash shall be made to the
  shareholder on the basis of the value decided for mat purpose, or that
  fractions the value of which is less man one New Israeli Shekel shall not be
  taken into account for the purpose of coordinating the rights of all the
  parties. The Board of Directors shall be permitted, in this regard, to grant
  cash or property to trustees in escrow for the benefit of persons entitled
  thereto, as the Board shall see beneficial. Wherever required, an agreement
  shall be submitted to the registrar of companies and the Board may appoint a
  person to execute such an agreement in the name of the persons entitled to a
  dividend, property, fully paid up shares or debentures as shares or
  debentures as aforesaid, and such an appointment shall be valid.

	
 

	
 

	
 

	
 

	
(c)

	
The Company
  shall not be obligated to pay interest on a dividend.

	
 

	
 

	
 

	
 

	
(d)

	
The Board of
  Directors may, with respect to all dividends not collected within one year
  after their declaration, invest or use them in another way for the benefit of
  the Company, until they shall be demanded. The Company shall not pay interest
  for dividends or interest not collected.

- 42 -

	
 

	
 

	
 

	
95.

	
FUNDS

	
 

	
 

	
 

	
 

	
The Board
  may set aside from the profits of the Company the sums it deems proper, as a
  reserve fund or reserve funds for extraordinary uses, or for preferred
  dividends or equalization of dividends or other funds or for the purpose of
  correcting, bettering or retaining any property of the Company and for those
  other purposes which shall, in the absolute discretion of the Board of
  Directors, be beneficial to the Company and it may invest the various sums so
  invested in such investments as it finds proper, and from time to time deal with
  such investments, change or transfer them, in part or in whole, for the
  benefit of the Company. The Board of Directors may, as well, divide any
  reserve liability fund to preferred funds as it shall deem proper, transfer
  moneys from fund to fund and use every fund or any part thereof in the
  business of the Company, without being required to keep such sums separate
  from the rest of the Company’s property. The Board of Directors may, from
  time to time, also transfer, to the next year, profits out of such sums which
  are, in its absolute discretion, beneficial to the Company. Generally the
  Board of Directors may create funds as it deems necessary, either those
  resulting from profits of the Company or from re-evaluation of property, or
  from premiums paid for shares or from any other source, and to use them in
  its discretion as it deems fit insofar as that in the creation of such funds,
  the changes or uses do not exceed the provisions of the Companies Law or
  accepted accounting principles.

	
 

	
 

	
 

	
 

	
96.

	
All premiums
  received from the issue of shares shall be capital funds and they shall be
  treated for every purpose as capital and not as profits distributable as
  dividends. The Board of Directors may organize a reserve capital liability
  account and transfer, from time to time, all such premiums to the reserve
  capital liability account or use such premiums and monies to cover
  depreciation or doubtful loss. All losses from sale of investments or other
  property of the Company shall be debited from other funds of the Company. The
  Board of Directors may use any monies credited to the capital reserve
  liability account in any manner that these Articles or the Companies Law
  permits.

	
 

	
 

	
 

	
 

	
97.

	
Any amounts
  transferred and credited to the account of income and expense fund or general
  reserve liability account or capital liability reserve account, may, until
  otherwise used in accordance with these Articles, be invested together with
  such other monies of the Company in the day to day business of the Company,
  without having to differentiate between these investments and the investment
  of the monies of the Company.

	
 

	
 

	
 

	
 

	
98.

	
ACCOUNTS AND
  AUDIT

	
 

	
 

	
 

	
 

	
 

	
The Board
  shall cause correct accounts to be kept:

	
 

	
 

	
 

	
 

	
 

	
 

	
(a) of the
  assets and liabilities;

	
 

	
 

	
 

	
 

	
 

	
 

	
(b) of any
  amount of money received or expended by the Company and the mattes for which
  such sum of money is expended or received; and

	
 

	
 

	
 

	
 

	
 

	
 

	
(c) of all
  purchases and sales made by the Company.

	
 

	
 

	
 

	
 

	
99.

	
The account
  books shall be kept in the Office or at such other place as the Board deems
  fit and they shall also be open for inspection by the directors.

	
 

	
 

	
 

	
 

	
100.

	
The Board of
  Directors shall determine from time to time, in any specific case or type of
  case, or generally, whether and to what extent and at what times and places
  and under what conditions or regulations the accounts and books of the
  Company, or any of them, shall be open for inspection by the shareholders,
  and no shareholder, not being a director, shall have any right of inspecting
  any account book or document of the Company except as conferred by law or
  authorized by the Board of Directors or by the Company in a general meeting.

- 43 -

	
 

	
 

	
101.

	
Not less
  than once a year, the Board shall submit before the Company at the Annual
  General Meeting a profit and loss account for the period after the previous
  account, and if it is the first account for the period after registration of
  the Company, it shall be prepared as of a date not more than nine months
  before the date of the meeting and in accordance with the relevant provisions
  of the Companies Law, and the Board shall submit a balance sheet that is
  correct as of the date of the profit and loss account. To the balance sheet
  shall be attached a report of the auditor and it shall be accompanied by a
  report from the Board with respect to the situation of the Company business
  and the amount they propose as a dividend and the amount (if any) that they
  propose be set aside for the fund accounts.

	
 

	
 

	
102.

	
Auditors
  shall be appointed and their function shall be set out in accordance with the
  Companies Law.

	
 

	
 

	
NOTICES

	
 

	
 

	
102.

	
A notice or
  any other document may be served by the Company upon any shareholder either
  personally or by sending it by prepaid letter, fax or e-mail addressed to
  such shareholder at his address, wherever situated, as appearing in the
  register of shareholders, provided, however that a shareholder may notify the
  Company in writing of its objection to the use of e-mail as the sole means of
  notice in which event the Company shall provide notice to such shareholder by
  e-mail and one of the other means permitted by this Article 102.

	
 

	
 

	
103.

	
All notices
  directed to be given to the shareholders shall, with respect to any shares to
  which persons are jointly entitled, be given to one of the joint holders, and
  any notice so given shall be sufficient notice to the holders of such share.

	
 

	
 

	
104.

	
Prior and
  timely notice of the convening of a shareholders meeting shall be given to
  each shareholder, wherever situated, at the last address provided by the
  shareholder. Any shareholder registered in the register who shall, from time
  to time, furnish the Company with an address at which notices may be served,
  shall be entitled to receive all notices he is entitled to receive according
  to these Articles at that address.

	
 

	
 

	
105.

	
A notice may
  be given by the Company to the persons entitled to a share in consequence of
  the death or bankruptcy of a shareholder by sending it through the post in a
  prepaid letter or fax or e-mail addressed to them by name, at the address
  furnished for the purpose by the persons claiming to be so entitled or, until
  such an address has been so furnished, by giving the notice in any manner in
  which the same might have been given if the death or bankruptcy had not
  occurred.

	
 

	
 

	
106.

	
Any notice
  or other document, (i) if delivered personally, shall be deemed to have been
  served upon delivery, (ii) if sent by post, shall be deemed to have been
  served five (5) days after the time when the letter was delivered to the
  post, if sent by airmail, and two (2) days after the letter was delivered to
  the post, if sent by domestic post, and (iii) if sent by facsimile or
  electronic mail, shall be confirmed by appropriate answer back and shall be
  effective upon actual receipt if received during the recipient’s normal
  business hours, or beginning the recipient’s next business day after receipt
  if not received during recipient’s normal business hours. In proving such
  service it shall be sufficient to prove that the letter, facsimile, or
  electronic mail containing the notice was properly addressed and delivered at
  the post office or sent by facsimile or electronic mail, as the case may be. Any
  list kept in the ordinary
  manner in any mail list of the company or any copy of any fax in the
  Company’s possession shall be prima facie proof of the delivery.

- 44 -

	
 

	
 

	
107.

	
(a)
       In any case where it is necessary to give prior
  notice of a certain number of days or a notice valid for a certain period,
  the date of delivery shall be taken into account in the number of days or
  period.

	
 

	
 

	
 

	
(b)
       In addition to the furnishing of a notice
  pursuant to the above article, the Company may furnish a notice to the
  shareholders entitled to receive notice, or to part of them, by publication
  of a notice in a newspaper distributed in the area wherein the Office is
  located, or any other place, in Israel or abroad, as the Board shall
  determine from time to time.

	
 

	
 

	
108.

	
RESERVED

	
 

	
 

	
109.

	
INDEMNITY

	
 

	
 

	
(a)

	
The Company
shall, subject and pursuant to the provisions of the Companies Law, indemnify
an “Office Holder” of the Company (as such term is defined in the Companies
Law) for all liabilities and expenses incurred by him arising from or as a
result of any act (or omission) carried out by him as an Office Holder of the
Company and which is indemnifiable pursuant to the Companies Law, to the
maximum extent permitted by law. The Company may indemnify an Office Holder
post-factum and may also undertake to indemnify an Office Holder in advance,
provided that, to the extent required under applicable law, such undertaking
is limited to types of occurrences which, in the opinion of the Board of
Directors are, at the time of the undertaking, foreseeable and to an amount
of the Board of Directors has determined is reasonable in the circumstances.  

	
 

	
 

	
(b)

	
The Company
  shall, subject and pursuant to the provisions of the Companies Law, enter
  into contracts to insure the liability of Office Holders of the Company for
  any liabilities incurred by him arising from or as a result of any act (or
  omission) carried out by him as an Office Holder of the Company and for which
  the Company may insure Office Holders pursuant to the Companies Law, to the
  maximum extent permitted by law.

	
 

	
 

	
(c)

	
The Company
  may, subject to the provisions of the Companies Law, procure insurance for or
  indemnify any person who is not an Office Holder including, without
  limitation, any employee, agent, consultant or contractor of the Company who
  is not an Office Holder.

	
 

	
 

	
(d)

	
The Company
  may, to the maximum extent permitted by law, exempt and release an Office
  Holder, including in advance, from all or part of his or her liability for
  monetary or other damages due to, arising or resulting from, a breach of his
  or her duty of care to the Company. The Directors of the Company are released
  and exempt from all liability as aforesaid to the maximum extent permitted by
  law with respect to any such breach, which has been or may be committed.

- 45 -

Exhibit B  

SECOND
AMENDMENT TO SHAREHOLDERS RIGHTS AGREEMENT

This amendment (the “Second
Amendment”) dated September 26, 2006, to the Shareholders Rights Agreement (the “SRA”) dated September 13, 2005, as
amended on March 22, 2006 by and among Negevtech Ltd. (the “Company”), the Founders (as defined in the SRA), the
Prior Investors (as
defined in the SRA), the New Investors (as
defined in the SRA), Amadeus III and Amadeus III Affiliates Fund LP (collectively,
“Amadeus”).  

	
 

	
 

	
WHEREAS

	
The Company, the Founders, the
  Prior Investors and the New Investors are parties to the SRA;

	
 

	
 

	
WHEREAS

	
Pursuant to the Series BB-4 Share Purchase Agreement
  of even date hereof, Amadeus and certain
  of the Prior Investors and certain of the New Investors are purchasing Series
  BB-4 Preferred Shares of the Company;

	
 

	
 

	
WHEREAS

	
Concurrently with the purchase
  of Series BB-4 Preferred Shares, Amadeus
  is purchasing all of the shares of the Company held by the Founders, which shares will be converted, upon
  their transfer to Amadeus and
  payment by Amadeus to the Company of the amount of $1,412,784, into Series
  BB-4 Preferred Shares; and

	
 

	
 

	
WHEREAS

	
the parties hereto wish to amend the SRA in order to
  include Amadeus in the definition of New
  Investor, to include the Series BB-4 Preferred Shares in the definition of Registrable Securities and to remove the Founders from
the SRA, all as defined and
  provided for in this Second Amendment.

NOW, THEREFORE, the parties
hereto agree as follows, effective as of and subject to the Closing of the Series BB-4 Share Purchase
Agreement:

	
 

	
 

	
1.

	
Schedule B annexed to the SRA is
  hereby amended by the addition thereto of the following entities which, for the purpose of the SRA, shall be
  considered as one of the New
  Investors:

	
 

	
 

	
 

	
 

	
 

	
Investor

	
 

	
Address

	
 

	

	
 

	

	
 

	
Amadeus
  III

	
 

	
Mount Pleasant House, 2 Mount Pleasant, Cambridge England 

	
 

	
 

	
 

	
 

	
 

	
Amadeus III Affiliates Fund LP

	
 

	
2711 Centerville Road, Suite
  400, Wilmington, New Castle County, Delaware
  19808 

	
 

	
 

	
2.

	
The Series BB-4 Preferred
  Shares being issued pursuant to the Series BB-4 Share Purchase Agreement of even date hereof and
  the Series BB-4 Preferred Shares
  resulting from the conversion of the shares purchased by Amadeus from the Founders, are hereby included in the
  term Registrable Securities. Accordingly,
  the definition of the term “Preferred BB Shares” in Section 1.11 of the SRA
  is hereby deleted in its entirety and replaced with the following:

	
 

	
 

	
 

	
“1.11 The term “Preferred BB
  Shares” shall mean Series BB-1 Preferred Shares of the
  Company, Series BB-2 Preferred Shares of the Company, Series BB-3 Preferred Shares
  of the Company and Series BB-4 Preferred Shares of the Company, par
  value NIS Q.01 each.”

	
 

	
 

	
3.

	
The
  Founders are hereby removed from the SRA, shall no longer be a party to the SRA and shall cease
  to have any rights or obligations pursuant to or by virtue of the SRA
  effective as of the date hereof. Accordingly, any and all reference to the term
  “Founder” or “Founders” in the SRA is hereby deleted from the SRA.

	
 

	
 

	
4.

	
Section
  1.8 of the SRA is hereby deleted and any and all reference to “Ordinary-Preferred
  Shares” in the SRA is hereby deleted from the SRA.

	
 

	
 

	
5.

	
Except
  as expressly provided in this Amendment, the SRA and each of the provisions contained
  therein shall remain in full force and effect.

[Remainder of Page Intentionally Left Blank]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their duly authorized
representatives, on the dates set forth below:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Intel Atlantic, Inc.

	
 

	
Pitango Venture Capital Fund III (Israeli Sub) L.P.

	
 

	
Pitango Venture Capital Fund III (Israeli Sub.) Non-Q L.P. 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Pitango Venture Capital Fund III (Israeli Investors) L.P.

	
 

	
Pitango Principles Fund III (Israel) L.P.

	
 

	
Pitango Venture Capital Fund
  III Trusts 2000 Ltd. 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Pitango JP Morgan Fund III (Israel), L.P.

	
 

	
Qualitau Ltd.

	
 

	
Shrem Fudim Kelner Founders Group II L.P. 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Shrem Fudim Kelner & Co.
  Ltd.

	
 

	
Canada Israel Opportunity Fund III, L.P.

	
 

	
SVE Star Ventures Enterprises
  Gmbh & Co. No. IX KG 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Star Management of Investments No. II (2000) L.P. 

	
 

	
Star Growth Enterprise, a German Civil Law Partnership (with limitation of liability)

	
 

	
SVM Star Ventures Managementgesellschaft mbH Nr. 3 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Orbotech Technology Ventures L.P.

	
 

	
Lehman Brothers European Venture Capital L.P.

	
 

	
Lehman Brothers Holdings PLC
  (on behalf of pre-tax plan) 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Lehman Brothers Partnership Account 2000/2001, L.P.

	
 

	
Lehman Brothers Offshore Partnership Account 2000/2001, L.P.

	
 

	
Genesis Partners II L.D.C.
  

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Genesis Partners II (Israel)
  L.P.

	
 

	
Poalim Ventures Ltd.

	
 

	
Poalim Ventures I Ltd. 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Poalim Ventures II L.P.

	
 

	
Wellington Partners Ventures III Technology Fund,
  L.P.

	
 

	
Amadeus III 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
Amadeus III Affiliates Fund LP

	
 

	
Negevtech Ltd.

	
 

	
Shrem Fudim Kelner Founders
  Group II Annex Fund L.P.

[signature
page to Second Amendment to SRA September 2006]

	
 

	
 

	
 

	

	
 

	

	
Gad Neumann

	
 

	
David Alumot

[signature
page to Second Amendment to SRA September 2006]

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