Document:

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                                                                     Exhibit 4.3
                                                                     -----------

                       TERMINATION AND RELEASE AGREEMENT

     This Termination and Release Agreement (the "TERMINATION AGREEMENT") is
entered into as of May 17, 2000, by and among Electric Fuel Corporation, a
company incorporated under the laws of Delaware, with principal offices at
Western Industrial Zone, P.O. Box 641, Bet Shemesh 99000, Israel ("EFC"),
Tadiran Limited, a company incorporated under the laws of the State of Israel,
with principal offices at [_______] ("TADIRAN"), Tadiran Batteries Limited, a
company incorporated under the laws of the State of Israel, with principal
offices at [_______] ("TADIRAN BATTERIES"), Tadiran Electric Industries
Corporation, a company incorporated under the laws of the State of [___], with
principal offices at [_______] ("TEI"), Koor Industries Ltd., a company
incorporated under the laws of the State of Israel, with principal offices at
Beit Platinum, Ha'arbaah 21 Street, Tel Aviv, Israel ("KOOR"), Robert S. Ehrlich
and Yehuda Harats

WITNESSETH

WHEREAS   EFC, Tadiran, Tadiran Batteries and TEI are parties to a Share
          and Assets Purchase Agreement (the "MERGER AGREEMENT"), dated as of
          March 15, 2000, which is attached as SCHEDULE "A" hereto; and

WHEREAS   EFC and Koor are parties to a Common Stock Purchase Agreement
          (the "PURCHASE AGREEMENT"), dated as of March 15, 2000, which is
          attached as SCHEDULE "B" hereto; and

WHEREAS   Robert S. Ehrlich, Yehuda Harats, Koor and Tadiran are parties to
          a Voting Rights Agreement (the "VOTING AGREEMENT"), dated as of March
          15, 2000, which is attached as SCHEDULE "C" hereto; and

WHEREAS   EFC, Tadiran and Koor are parties to a Registration Rights
          Agreement (the "REGISTRATION AGREEMENT"), dated as of March 15, 2000,
          which is attached as SCHEDULE "D" hereto; and

WHEREAS   the parties wish to terminate and revoke the Merger Agreement and
          the Voting Agreement and make certain changes to the provisions of the
          Purchase Agreement and the Registration Agreement, all in accordance
          with the terms set forth below

     NOW, THEREFORE, for value received herein, the parties hereby agree as
follows:

Termination of the Merger Agreement and the Voting Agreement: Reference is made
to the New Purchase Agreement (as such term is defined in Section 0 below). The
term "Closing" as used herein shall have the same meaning ascribed to such a
term in the New Purchase Agreement. As of and subject to the Closing of the
transactions contemplated under the New Purchase Agreement, the Merger Agreement
and the
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Voting Agreement (collectively, the "Agreements") shall be terminated by mutual
consent (which is hereby given) of all of the parties thereto, shall be of no
legal force and effect and shall not bind any of the parties thereto with
respect to any representations, warranties, covenants or actions to be taken by
each such party pursuant to such Agreements. As of the Closing every party to
the Agreements does hereby release, acquit and forever discharge each of the
other parties to the Agreements from any and all claims, demands, liabilities,
responsibilities, disputes, causes of action and obligations relating to such
Agreements.

     Amendment of the Purchase Agreement and the Registration Agreement: As of
and subject to the Closing, the provisions of the Purchase Agreement and the
Registration Agreement shall be amended and replaced with the purchase agreement
(the "New Purchase Agreement") and the registration agreement (collectively, the
"New Agreements") attached hereto as Schedules 2A and 2B. The parties agree that
as of the Closing  the terms of the New Agreements supercede and revoke the
terms of the Purchase Agreement and the Registration Agreement and, without
derogation from the terms of the New Agreements which shall be in full force and
effect, release, acquit and forever discharge each of the other parties to the
Purchase Agreement and the Registration Agreement from any and all claims,
demands, liabilities, responsibilities, disputes, causes of action and
obligations relating to such agreements.

     Amendments, Waivers, Etc.  This Termination Agreement may not be amended,
changed, supplemented, waived or otherwise modified or terminated, except upon
the entering into and delivery of a written agreement entered into by the
parties hereto.

     Effect: This Termination Agreement shall enter into effect upon the Closing
of the New Purchase Agreement and the consummation of the Offering (as such a
term is defined in the New Purchase Agreement) thereunder.

Notices. For purposes of this Termination Agreement, the addresses of the
parties shall be as set forth in the New Agreements.

     No Waiver.  The failure of any party hereto to exercise any right, power or
remedy provided under this Termination Agreement or otherwise available in
respect hereof at law or in equity, or to insist upon compliance by any other
party hereto with its obligations hereunder, and any custom or practice of the
parties at variance with the terms hereof, shall not constitute a waiver by such
party of its right to exercise any such or other right, power or remedy or to
demand such compliance.

     This Termination Agreement may be entered into 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.

     Governing Law.  This Termination Agreement shall be governed and construed
in accordance with the laws of the State of Israel, without giving effect to the
principles of conflicts of law thereof.
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IN WITNESS WHEREOF, the parties have caused this Termination Agreement to be
duly signed on May 17, 2000.

Electric Fuel      Tadiran Electric      Tadiran Limited      Tadiran Batteries
Corporation        Industries                                 Limited
                   Corporation
By:_________       By:_______            By:_______           By:_______

Koor Industries    Robert S. Ehrlich     Yehuda Harats
Ltd.
By: ________       __________            __________<PAGE>

                                                                   EXHIBIT 10.18

                         MATTRESS HOLDING CORPORATION

                       AGREEMENT EVIDENCING A GRANT OF A
                        NONQUALIFIED STOCK OPTION UNDER
                            1999 STOCK OPTION PLAN

     Agreement made as of May 1, 2000, between Mattress Holding Corporation, a
Virginia corporation (the "Company"), and Steve  Newton ("Grantee").
                           -------                        -------
Capitalized terms used but not defined herein shall have the meanings assigned
to such terms in the Plan (as defined below).

     1.   Grant of Option. Pursuant to the Mattress Holding Corporation 1999
Stock Option Plan (the "Plan"), the Company hereby grants to Grantee, as of the
                        ----
date hereof, a nonqualified stock option (the "Option") to purchase 166,430
                                               ------
shares (the "Shares") of the Company's Class A Common Stock, $.01 par value per
             ------
share (the "Class A Common"), at the exercise price per share of $0.6667 (the
            --------------
"Exercise Price"), subject to the terms and conditions set forth herein and in
---------------
the Plan.  Upon certain events, the number of Shares and/or the Exercise Price
may be adjusted as provided in the Plan.

     2.   Grantee Bound by Plan. Attached hereto as Annex A is a copy of the
                                                    -------
Plan which is incorporated herein by reference and made a part hereof. Grantee
hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all
the terms and provisions thereof. The Plan should be carefully examined before
any decision is made to exercise the Option.

     3.   Exercise of Option. Subject to the earlier termination of the Option
as provided herein and in the Plan and subject to Section 5 hereof, the Option
may be exercised, in whole or in part, to the extent it has become vested, by
written notice to the Company at any time and from time to time after the date
of grant. The Option shall not be exercisable in any event after the tenth
anniversary of the date hereof. An Option may not be exercised for a fraction of
a share of Class A Common. Options are subject to cancellation as provided in
the Plan. Any part of the Option that is not vested on the date that (a)
Grantee's employment with the Company or any of its Subsidiaries terminates or
(b) Grantee receives notice from the Company that Grantee's position has changed
to one which, in the judgment of the Board, is not of sufficient management
authority for option eligibility ("Grantee Termination Date") shall expire and
                                   ------------------------
be forfeited on such date, and any part of the Option that is vested on the
Grantee Termination Date shall also expire and be forfeited to the extent not
exercised on or before the sixtieth (60th) day following the Grantee Termination
Date (180 days if the Grantee Termination Date occurs as a result of the death
of Grantee), but in no event after the tenth anniversary of the date hereof.

     4.   Vesting of Options. The Option may be exercised only to the extent it
has become vested. The Option shall fully vest and become exercisable with
respect to all of the Shares
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if and only if the Grantee remains continuously employed with the Company or any
of its Subsidiaries during the period beginning on the date hereof and ending on
the fifth anniversary of the date hereof. Notwithstanding the foregoing, the
Option shall (i) cumulatively vest and become exercisable with respect to 20% of
the Shares (rounded to the nearest whole share) upon each of the first
anniversary of the Employment Date, the second anniversary of the Employment
Date, the third anniversary of the Employment Date, the fourth anniversary of
the Employment Date and the fifth anniversary of the Employment Date and (ii)
vest and become exercisable with respect to all of the then unvested Shares upon
a Sale of the Company, in each case, if and only if the Grantee remains
continuously employed by the Company or any of its Subsidiaries during the
period beginning on the date hereof and ending on the applicable vesting date
referred to above. The "Employment Date" means May 1, 2000.

     5.   Conditions to Exercise. The Option may not be exercised by Grantee
unless the following conditions are met:

          (a)  The Option has become vested with respect to the Shares to be
acquired pursuant to such exercise;

          (b)  legal counsel for the Company must be satisfied at the time of
exercise that the issuance of shares of Class A Common upon exercise will be in
compliance with the Securities Act and applicable United States federal, state,
local and foreign laws; and

          (c)  Grantee must pay at the time of exercise the full purchase price
for the shares of Class A Common being acquired hereunder plus any withholding
tax required in connection with such exercise, in each case, in accordance with
the terms of the Plan.

     6.   Transferability. The Option (including the right to receive the
Shares) may not be Transferred or assigned by Grantee, other than by will or the
laws of descent and distribution and, during the lifetime of Grantee, the Option
may be exercised only by Grantee (or, if Grantee is incapacitated, by Grantee's
legal guardian or legal representative). In the event of the death of Grantee,
Options which are not vested on the date of death shall terminate; and the
exercise of Options which are vested as of the date of death may be made only by
the executor or administrator of Grantee's estate or the Person or Persons to
whom Grantee's rights under the Options pass by will or the laws of descent and
distribution. If Grantee or anyone claiming under or through Grantee attempts to
violate this Section 6, such attempted violation shall be null and void and
without effect, and the Company's obligation hereunder shall terminate. Any
Issued Stock received upon exercise of this Option is subject to the repurchase
right, restrictions on Transfer and other rights and obligations set forth in
the Plan.

     7.   Administration. Any action taken or decision made by the Company, the
Board, or the Committee or its delegates arising out of or in connection with
the construction, administration, interpretation or effect of the Plan or this
Agreement shall lie within its sole and absolute discretion, as the case may be,
and shall be final, conclusive and binding on Grantee and

                                       2
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all persons claiming under or through Grantee. By accepting this grant or other
benefit under the Plan, Grantee and each person claiming under or through
Grantee shall be conclusively deemed to have indicated acceptance and
ratification of, and consent to, any action taken under the Plan by the Company,
the Board or the Committee or its delegates.

     8.   No Rights as Stockholder. Unless and until a certificate or
certificates representing such shares of Class A Common shall have been issued
to Grantee (or any person acting under Section 6 above), Grantee shall not be or
have any of the rights or privileges of a stockholder of the Company with
respect to shares of Class A Common acquirable upon exercise of the Option.

     9.   Investment Representation. Grantee hereby acknowledges that the shares
of Class A Common which Grantee may acquire by exercising the Option shall be
acquired for investment without a view to distribution, within the meaning of
the Securities Act, and shall not be Transferred in the absence of an effective
registration statement for the shares of Class A Common under the Securities Act
and applicable state securities laws or an applicable exemption from the
registration requirements of the Securities Act and any applicable state
securities laws. Grantee also agrees that the shares of Class A Common which
Grantee may acquire by exercising the Option will not be sold or otherwise
disposed of in any manner which would constitute a violation of any applicable
federal or state securities laws.

     10.  Rights of Participants. Neither this Agreement nor the Plan creates
any employment rights in Grantee and neither the Company nor any of its
Subsidiaries shall have any liability arising out of the Plan or this Agreement
for terminating Grantee's employment or reducing Grantee's responsibilities.

     11.  Notices. Any notice hereunder to the Company shall be addressed to the
Company's principal executive office, Attention: Board of Directors, and any
notice hereunder to Grantee shall be addressed to Grantee at Grantee's last
address on the records of the Company, subject to the right of either party to
designate at any time hereafter in writing some other address. Any notice shall
be deemed to have been duly given when delivered personally, one day following
dispatch if sent by reputable overnight courier, fees prepaid, or three days
following mailing if sent by registered mail, return receipt requested, postage
prepaid and addressed as set forth above.

     12.  Binding Effect. This Agreement shall be binding upon and inure to the
benefit of any successors and assigns to the Company and all persons lawfully
claiming under Grantee.

     13.  Governing Law. The validity, construction, interpretation,
administration and effect of the Plan, and of its rules and regulations, and
rights relating to the Plan and to this Agreement, shall be governed by the
substantive laws, but not the choice of law rules, of whichever state in the
United States in which the Company is incorporated from time to time.

                                       3
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     14.  Non-Competition. In consideration of the Company's grant of the Option
hereunder, the Grantee agrees that, during the Grantee's employment by the
Company, and for eighteen months thereafter, Grantee shall not act as a
proprietor, investor, director, officer, employee, substantial stockholder,
consultant, or partner in any business engaged to a material extent in the
manufacture or sale of (a) mattresses or other bedding products or (b) any other
products which constitute more than ten percent (10%) of the Company's
consolidated revenues at the time in direct competition with the Company or any
of its Subsidiaries in any market. Grantee understands that the foregoing
restrictions prohibit grantee from working for another sleep shop or other
mattress retailer and may limit his or her ability to engage in certain business
pursuits during the period provided for above, but acknowledges that the Grantee
has no right to a grant of Options under the Plan and this grant is adequate
consideration for Grantee's agreeing to this non-competition limitation.

                           *     *     *     *     *

                                       4
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     IN WITNESS WHEREOF, the Company and Grantee have executed this Agreement as
of the date first above written.

                                             MATTRESS HOLDING CORPORATION

                                             /s/ Stephen Walker
                                             -----------------------------------
                                             Name:
                                             Title:

                                             GRANTEE:

                                             /s/ Steve Newton
                                             -----------------------------------
                                             Steve Newton

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