Document:

EXHIBIT 10.5

                      INVESTMENT MANAGEMENT TRUST AGREEMENT

                  This  Agreement  is  made  as of  _____________,  2005  by and
between Israel  Technology  Acquisition  Corp.  (the  "Company") and Continental
Stock Transfer & Trust Company ("Trustee").

                  WHEREAS, the Company's registration statement on Form S-1, No.
333-_______  ("Registration  Statement"),  for its  initial  public  offering of
securities  ("IPO")  has been  declared  effective  as of the date hereof by the
Securities and Exchange Commission ("Effective Date"); and

                  WHEREAS,  EarlyBirdCapital,  Inc.  ("EBC")  is  acting  as the
representative of the underwriters in the IPO; and

                  WHEREAS,  as described in the Registration  Statement,  and in
accordance with the Company's  Certificate of Incorporation,  $15,300,000 of the
gross proceeds of the IPO ($17,595,000 if the underwriters over-allotment option
is exercised in full) will be delivered to the Trustee to be deposited  and held
in a trust  account  for the  benefit  of the  Company  and the  holders  of the
Company's  common  stock,  par  value  $.0001  per  share,  issued in the IPO as
hereinafter  provided  and in the event the Units are  registered  in  Colorado,
pursuant to Section 11-51-302(6) of the Colorado Revised Statutes. A copy of the
Colorado  Statute is  attached  hereto and made a part  hereof (the amount to be
delivered  to the  Trustee  will be referred  to herein as the  "Property";  the
stockholders  for whose  benefit the  Trustee  shall hold the  Property  will be
referred to as the "Public  Stockholders,"  and the Public  Stockholders and the
Company will be referred to together as the "Beneficiaries"); and

                  WHEREAS, the Company and the Trustee desire to enter into this
Agreement  to set forth the terms and  conditions  pursuant to which the Trustee
shall hold the Property;

                  IT IS AGREED:

1. AGREEMENTS AND COVENANTS OF TRUSTEE.  The Trustee hereby agrees and covenants
to:

                  (a)  Hold  the  Property  in trust  for the  Beneficiaries  in
accordance  with the terms of this  Agreement,  including  the terms of  Section
11-51-302(6)  of the Colorado  Statute,  in a segregated  trust account  ("Trust
Account")  established  by the  Trustee  at a branch of  JPMorgan  Chase NY Bank
selected by the Trustee;

                  (b) Manage, supervise and administer the Trust Account subject
to the terms and conditions set forth herein;

                  (c) In a timely manner,  upon the  instruction of the Company,
to invest and  reinvest  the  Property  in any  "Government  Security."  As used
herein, Government Security means any Treasury Bill issued by the United States,
having a maturity of one hundred and eighty days or less;

                  (d) Collect and receive,  when due, all  principal  and income
arising from the

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Property,  which  shall  become  part of the  "Property,"  as such  term is used
herein;

                  (e) Notify the  Company of all  communications  received by it
with respect to any Property requiring action by the Company;

                  (f) Supply any  necessary  information  or documents as may be
requested by the Company in connection with the Company's preparation of the tax
returns for the Trust Account;

                  (g)  Participate  in any plan or proceeding  for protecting or
enforcing  any  right or  interest  arising  from the  Property  if, as and when
instructed by the Company to do so;

                  (h) Render to the Company and to EBC, and to such other person
as the Company may instruct, monthly written statements of the activities of and
amounts in the Trust Account  reflecting all receipts and  disbursements  of the
Trust Account; and

                  (i)  Commence  liquidation  of the Trust  Account  only  after
receipt  of and  only in  accordance  with the  terms of a letter  ("Termination
Letter"),  in a form  substantially  similar to that  attached  hereto as either
Exhibit A or Exhibit B,  signed on behalf of the  Company  by its  President  or
Chairman of the Board and  Secretary  or Assistant  Secretary,  and complete the
liquidation  of the Trust  Account  and  distribute  the  Property  in the Trust
Account  only as  directed  in the  Termination  Letter and the other  documents
referred to therein.

2.  AGREEMENTS  AND  COVENANTS OF THE  COMPANY.  The Company  hereby  agrees and
covenants to:

                  (a) Give all instructions to the Trustee hereunder in writing,
signed by the Company's President or Chairman of the Board. In addition,  except
with  respect to its duties under  paragraph  1(i) above,  the Trustee  shall be
entitled  to rely on,  and shall be  protected  in  relying  on,  any  verbal or
telephonic  advice or instruction which it in good faith believes to be given by
any one of the persons authorized above to give written  instructions,  provided
that the Company shall promptly confirm such instructions in writing;

                  (b) Hold the Trustee  harmless and  indemnify the Trustee from
and  against,  any and all  expenses,  including  reasonable  counsel  fees  and
disbursements,  or loss suffered by the Trustee in  connection  with any action,
suit or other proceeding  brought against the Trustee involving any claim, or in
connection with any claim or demand which in any way arises out of or relates to
this Agreement,  the services of the Trustee  hereunder,  or the Property or any
income earned from  investment  of the Property,  except for expenses and losses
resulting from the Trustee's gross  negligence or willful  misconduct.  Promptly
after  the  receipt  by  the  Trustee  of  notice  of  demand  or  claim  or the
commencement  of any action,  suit or proceeding,  pursuant to which the Trustee
intends  to seek  indemnification  under  this  paragraph,  it shall  notify the
Company in writing of such claim  (hereinafter  referred to as the  "Indemnified
Claim").  The  Trustee  shall have the right to conduct  and manage the  defense
against such  Indemnified  Claim,  provided,  that the Trustee  shall obtain the
consent of the Company with respect to the  selection of counsel,  which consent
shall not

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be  unreasonably  withheld.  The Trustee may not agree to settle any Indemnified
Claim  without  the prior  written  consent  of the  Company.  The  Company  may
participate in such action with its own counsel; and

                  (c) Pay the Trustee an initial acceptance fee of $1,000 and an
annual fee of $3,000 (it being expressly  understood that the Property shall not
be used to pay  such  fee).  The  Company  shall  pay the  Trustee  the  initial
acceptance  fee  and  first  year's  fee at the  consummation  of  the  IPO  and
thereafter on the anniversary of the Effective Date. The Trustee shall refund to
the Company the fee (on a pro rata basis) with  respect to any period  after the
liquidation  of the Trust Fund.  The Company  shall not be  responsible  for any
other fees or charges of the Trustee except as may be provided in paragraph 2(b)
hereof (it being  expressly  understood  that the Property  shall not be used to
make any payments to the Trustee under such paragraph).

3.  LIMITATIONS  OF  LIABILITY.  The  Trustee  shall have no  responsibility  or
liability to:

                  (a) Take any action with respect to the  Property,  other than
as directed in paragraph 1 hereof and the Trustee shall have no liability to any
party except for  liability  arising out of its own gross  negligence or willful
misconduct;

                  (b)  Institute  any  proceeding  for  the  collection  of  any
principal  and  income  arising  from,  or  institute,  appear in or defend  any
proceeding of any kind with respect to, any of the Property  unless and until it
shall have received instructions from the Company given as provided herein to do
so and the Company shall have  advanced or guaranteed to it funds  sufficient to
pay any expenses incident thereto;

                  (c)  Change  the  investment  of any  Property,  other than in
compliance with paragraph 1(c);

                  (d) Refund any depreciation in principal of any Property;

                  (e) Assume that the authority of any person  designated by the
Company to give  instructions  hereunder shall not be continuing unless provided
otherwise  in such  designation,  or unless the Company  shall have  delivered a
written revocation of such authority to the Trustee;

                  (f) The other parties  hereto or to anyone else for any action
taken or omitted by it, or any action suffered by it to be taken or omitted,  in
good faith and in the  exercise of its own best  judgment,  except for its gross
negligence or willful misconduct. The Trustee may rely conclusively and shall be
protected  in acting upon any order,  notice,  demand,  certificate,  opinion or
advice  of  counsel  (including  counsel  chosen  by  the  Trustee),  statement,
instrument,  report or other paper or document (not only as to its due execution
and the validity and  effectiveness of its provisions,  but also as to the truth
and acceptability of any information therein contained) which is believed by the
Trustee,  in good  faith,  to be genuine  and to be signed or  presented  by the
proper  person or  persons.  The  Trustee  shall  not be bound by any  notice or
demand, or any waiver, modification, termination or rescission of this agreement
or any of the terms hereof,  unless evidenced by a written instrument  delivered
to the Trustee signed by the proper party or parties and,

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if the duties or rights of the  Trustee are  affected,  unless it shall give its
prior written consent thereto;

                  (g) Verify the correctness of the information set forth in the
Registration  Statement or to confirm or assure that any acquisition made by the
Company or any other action taken by it is as contemplated  by the  Registration
Statement; and

                  (h) Pay any taxes on behalf  of the  Trust  Account  (it being
expressly  understood  that the Property shall not be used to pay any such taxes
and that such taxes, if any, shall be paid by the Company from funds not held in
the Trust Account).

4. TERMINATION. This Agreement shall terminate as follows:

                  (a) If the Trustee gives written notice to the Company that it
desires to resign under this  Agreement,  the Company  shall use its  reasonable
efforts to locate a successor  trustee.  At such time that the Company  notifies
the Trustee that a successor  trustee has been  appointed by the Company and has
agreed to become  subject  to the terms of this  Agreement,  the  Trustee  shall
transfer the management of the Trust Account to the successor trustee, including
but not limited to the transfer of copies of the reports and statements relating
to the Trust  Account,  whereupon  this  Agreement  shall  terminate;  provided,
however, that, in the event that the Company does not locate a successor trustee
within ninety days of receipt of the  resignation  notice from the Trustee,  the
Trustee may submit an application to have the Property deposited with the United
States  District  Court  for the  Southern  District  of New York and upon  such
deposit, the Trustee shall be immune from any liability whatsoever;

                  (b)  At  such  time  that  the  Trustee  has   completed   the
liquidation of the Trust Account in accordance  with the provisions of paragraph
1(i) hereof,  and  distributed the Property in accordance with the provisions of
the Termination  Letter,  this Agreement shall terminate  except with respect to
Paragraph 2(b); or

                  (c) On such date after  _____________,  2007 when the  Trustee
deposits the Property  with the United  States  District  Court for the Southern
District of New York in the event that,  prior to such date, the Trustee has not
received a Termination Letter from the Company pursuant to paragraph 1(i).

5. MISCELLANEOUS.

                  (a) The  Company  and the Trustee  each  acknowledge  that the
Trustee  will follow the  security  procedures  set forth below with  respect to
funds transferred from the Trust Account.  Upon receipt of written instructions,
the Trustee will confirm such instructions  with an Authorized  Individual at an
Authorized  Telephone  Number listed on the attached  Exhibit C. The Company and
the Trustee will each restrict  access to confidential  information  relating to
such security procedures to authorized persons. Each party must notify the other
party  immediately  if it has reason to believe  unauthorized  persons  may have
obtained  access  to  such  information,  or of any  change  in  its  authorized
personnel.  In  executing  funds  transfers,  the Trustee will rely upon account
numbers or other  identifying  numbers of a beneficiary,  beneficiary's  bank or
intermediary  bank,

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rather than names.  The Trustee  shall not be liable for any loss,  liability or
expense  resulting  from any error in an  account  number  or other  identifying
number, provided it has accurately transmitted the numbers provided.

                  (b) This  Agreement  shall be  governed by and  construed  and
enforced in accordance  with the laws of the State of New York,  without  giving
effect to conflicts of law  principles  that would result in the  application of
the  substantive  laws of another  jurisdiction.  It may be  executed in several
counterparts, each one of which shall constitute an original, and together shall
constitute but one instrument.

                  (c)  This   Agreement   contains  the  entire   agreement  and
understanding  of the parties  hereto with respect to the subject matter hereof.
This Agreement or any provision hereof may only be changed,  amended or modified
by a writing signed by each of the parties hereto;  provided,  however,  that no
such change,  amendment or  modification  may be made without the prior  written
consent of EBC. As to any claim, cross-claim or counterclaim in any way relating
to this Agreement, each party waives the right to trial by jury.

                  (d) The parties hereto consent to the  jurisdiction  and venue
of any  state or  federal  court  located  in the City of New York,  Borough  of
Manhattan, for purposes of resolving any disputes hereunder.

                  (e) Any notice,  consent or request to be given in  connection
with any of the terms or  provisions of this  Agreement  shall be in writing and
shall be sent by express mail or similar private courier  service,  by certified
mail (return receipt requested), by hand delivery or by facsimile transmission:

                  if to the Trustee, to:

                           Continental Stock Transfer
                             & Trust Company
                           17 Battery Place
                           New York, New York 10004
                           Attn:  Steven G. Nelson
                           Fax No.: (212) 509-5150

                  if to the Company, to:

                           Israel Technology Acquisition Corp.
                           23 Karlibach St.
                           Tel Aviv 67132
                           Israel
                           Attn:  Israel Frieder, Chief Executive Officer
                           Fax No.:  (___) ___-____

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                  in either case with a copy to:

                           EarlyBirdCapital, Inc.
                           275 Madison Avenue, Suite 1203
                           New York, New York 10016
                           Attn:    David M. Nussbaum, Chairman
                           Fax No.:  (212) 269-3796

                  (f) This Agreement may not be assigned by the Trustee  without
the prior consent of the Company.

                  (g) Each of the Trustee and the Company hereby represents that
it has the full right and power and has been duly  authorized to enter into this
Agreement and to perform its respective  obligations as contemplated  hereunder.
The Trustee acknowledges and agrees that it shall not make any claims or proceed
against  the  Trust  Account,  including  by way of  set-off,  and  shall not be
entitled to any funds in the Trust Account under any circumstance.

                  (h) Each of the  Company and the  Trustee  hereby  acknowledge
that EBC is a third party beneficiary of this Agreement.

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<PAGE>

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

                                            CONTINENTAL STOCK TRANSFER & TRUST
                                            COMPANY, as Trustee

                                            By: ____________________________
                                                Name:
                                                Title:

                                            ISRAEL TECHNOLOGY ACQUISITION CORP.

                                            By: ____________________________
                                                Name: Israel Frieder
                                                Title: Chief Executive Officer

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                                                                       EXHIBIT A

                             [LETTERHEAD OF COMPANY]

                                       [INSERT DATE]

Continental Stock Transfer
  & Trust Company
17 Battery Place
New York, New York 10004
Attn:  Steven Nelson

                  Re:   TRUST ACCOUNT NO. 530-           TERMINATION LETTER

Gentlemen:

                  Pursuant to paragraph 1(i) of the Investment  Management Trust
Agreement   between  Israel  Technology   Acquisition   Corp.   ("Company")  and
Continental Stock Transfer & Trust Company ("Trustee"),  dated as of __________,
2005  ("Trust  Agreement"),  this is to advise you that the  Company has entered
into  an  agreement  ("Business  Agreement")  with  __________________  ("Target
Business") to consummate a business  combination with Target Business ("Business
Combination")  on or about [INSERT DATE].  The Company shall notify you at least
48 hours in advance  of the  actual  date of the  consummation  of the  Business
Combination ("Consummation Date").

                  In accordance with the terms of the Trust Agreement, we hereby
authorize you to commence  liquidation  of the Trust Account to the effect that,
on the  Consummation  Date,  all of  funds  held in the  Trust  Account  will be
immediately  available  for transfer to the account or accounts that the Company
shall direct on the Consummation Date.

                  On the  Consummation  Date (i) counsel  for the Company  shall
deliver to you written  notification that (a) the Business  Combination has been
consummated  and (b) the provisions of Section  11-51-302(6)  and Rule 51-3.4 of
the Colorado  Statute have been met, and (ii) the Company  shall  deliver to you
written instructions with respect to the transfer of the funds held in the Trust
Account  ("Instruction  Letter").  You are hereby  directed  and  authorized  to
transfer the funds held in the Trust  Account  immediately  upon your receipt of
the counsel's letter and the Instruction Letter, in accordance with the terms of
the  Instruction  Letter.  In the event that certain  deposits held in the Trust
Account may not be liquidated by the Consummation Date without penalty, you will
notify the  Company of the same and the Company  shall  direct you as to whether
such  funds  should  remain  in the  Trust  Account  and  distributed  after the
Consummation Date to the Company.  Upon the distribution of all the funds in the
Trust  Account  pursuant  to the  terms  hereof,  the Trust  Agreement  shall be
terminated.

                  In the event that the Business  Combination is not consummated
on the  Consummation  Date  described  in the  notice  thereof  and we have  not
notified you on or before the original  Consummation  Date of a new Consummation
Date,  then the funds held in the Trust  Account shall be reinvested as provided
in  the  Trust  Agreement  on  the  business  day   immediately   following  the
Consummation Date as set forth in the notice.

                                            Very truly yours,

                                            ISRAEL TECHNOLOGY ACQUISITION CORP.

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                                            By:________________________________
                                                 Israel Frieder, Chairman

                                            By:________________________________
                                                 Glen Shear, Secretary
cc: EarlyBirdCapital, Inc.

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                                                                       EXHIBIT B

                             [LETTERHEAD OF COMPANY]

                                       [INSERT DATE]

Continental Stock Transfer
  & Trust Company
17 Battery Place
New York, New York 10004
Attn:

                  Re:    TRUST ACCOUNT NO. 530-            TERMINATION LETTER

Gentlemen:

                  Pursuant to paragraph 1(i) of the Investment  Management Trust
Agreement   between  Israel  Technology   Acquisition   Corp.   ("Company")  and
Continental Stock Transfer & Trust Company ("Trustee"), dated as of ___________,
2005 ("Trust Agreement"), this is to advise you that the Company has been unable
to effect a Business  Combination  with a Target  Company  within the time frame
specified in the Company's prospectus relating to its IPO.

                  In accordance with the terms of the Trust Agreement, we hereby
(a) certify to you that the provisions of Section  11-51-302(6)  and Rule 51-3.4
of the  Colorado  Statute  have  been met and (b)  authorize  you,  to  commence
liquidation of the Trust Account. You will notify the Company and JPMorgan Chase
NY Bank  ("Designated  Paying  Agent") in writing as to when all of the funds in
the Trust Account will be available for immediate  transfer  ("Transfer  Date").
The  Designated  Paying Agent shall  thereafter  notify you as to the account or
accounts  of the  Designated  Paying  Agent that the funds in the Trust  Account
should be  transferred  to on the Transfer  Date so that the  Designated  Paying
Agent may commence  distribution  of such funds in accordance with the Company's
instructions.  You shall have no  obligation  to oversee the  Designated  Paying
Agent's  distribution  of the funds.  Upon the payment to the Designated  Paying
Agent of all the  funds in the  Trust  Account,  the  Trust  Agreement  shall be
terminated.

                                            Very truly yours,

                                            ISRAEL TECHNOLOGY ACQUISITION CORP.

                                            By:________________________________
                                                 Israel Frieder, Chairman

                                            By:________________________________
                                                 Glen Shear, Secretary
cc: EarlyBirdCapital, Inc.

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                                                EXHIBIT C

AUTHORIZED INDIVIDUAL(S)                             AUTHORIZED
FOR TELEPHONE CALL BACK                              TELEPHONE NUMBER(S)
-----------------------                              -------------------

COMPANY:

Israel Technology Acquisition Corp.
23 Karlibach St.
Tel Aviv 67132
Israel
Attn: Israel Frieder, Chief Executive Officer        972-3-6247396

TRUSTEE:

Continental Stock Transfer
  & Trust Company
17 Battery Place
New York, New York 10004
Attn: Steven G. Nelson, Chairman                     (212) 845-3200

                                       11EXHIBIT 10.6

                             STOCK ESCROW AGREEMENT

                  STOCK  ESCROW   AGREEMENT,   dated  as  of   _________,   2005
("Agreement"),  by and among ISRAEL  TECHNOLOGY  ACQUISITION  CORP.,  a Delaware
corporation  ("Company"),  ISRAEL FRIEDER,  GLEN SHEAR, DAEL SCHNIDER and VICTOR
HALPERT (collectively  "Initial  Stockholders") and CONTINENTAL STOCK TRANSFER &
TRUST COMPANY, a New York corporation ("Escrow Agent").

                  WHEREAS,   the  Company  has  entered  into  an   Underwriting
Agreement,   dated   _____________,   2005  ("Underwriting   Agreement"),   with
EarlyBirdCapital,   Inc.  ("EBC")  acting  as   representative  of  the  several
underwriters (collectively, the "Underwriters"),  pursuant to which, among other
matters,  the Underwriters have agreed to purchase  3,000,000 units ("Units") of
the Company.  Each Unit consists of one share of the Company's common stock, par
value  $.0001 per share  ("Common  Stock"),  and two  Warrants,  each Warrant to
purchase one share of Common Stock, all as more fully described in the Company's
final Prospectus,  dated _____________,  2005 ("Prospectus")  comprising part of
the Company's  Registration  Statement on Form S-1 (File No.  333-_______) under
the  Securities  Act of 1933, as amended  ("Registration  Statement"),  declared
effective on _____________, 2005 ("Effective Date").

                  WHEREAS,  the Initial  Stockholders have agreed as a condition
of the sale of the Units to deposit their shares of Common Stock of the Company,
as set forth  opposite  their  respective  names in  Exhibit A  attached  hereto
(collectively "Escrow Shares"), in escrow as hereinafter provided.

                  WHEREAS,  the Company and the Initial Stockholders desire that
the Escrow Agent accept the Escrow Shares,  in escrow,  to be held and disbursed
as hereinafter provided.

                  IT IS AGREED:

         1.   APPOINTMENT   OF  ESCROW  AGENT.   The  Company  and  the  Initial
Stockholders  hereby  appoint  the Escrow  Agent to act in  accordance  with and
subject to the terms of this  Agreement and the Escrow Agent hereby accepts such
appointment and agrees to act in accordance with and subject to such terms.

         2. DEPOSIT OF ESCROW SHARES.  On or before the Effective  Date, each of
the  Initial  Stockholders  shall  deliver  to  the  Escrow  Agent  certificates
representing his respective  Escrow Shares,  to be held and disbursed subject to
the  terms  and  conditions  of  this   Agreement.   Each  Initial   Stockholder
acknowledges that the certificate  representing his Escrow Shares is legended to
reflect the deposit of such Escrow Shares under this Agreement.

         3.  DISBURSEMENT OF THE ESCROW SHARES.  The Escrow Agent shall hold the
Escrow  Shares  until the  third  anniversary  of the  Effective  Date  ("Escrow
Period"),  on which date it shall,  upon written  instructions from each Initial
Stockholder,  disburse each of the Initial  Stockholder's  Escrow Shares to such
Initial Stockholder;  provided, however, that if the Escrow Agent is notified by
the Company  pursuant to Section 6.7 hereof that the Company is being liquidated
at any time  during the Escrow  Period,  then the Escrow  Agent  shall  promptly
destroy the  certificates  representing  the Escrow  Shares;  provided  further,
however,  that if, after the Company consummates a Business Combination (as such
term is defined in the  Registration  Statement),  it (or the surviving  entity)
subsequently consummates a liquidation,  merger, stock exchange or other similar
transaction  which results in all of the  stockholders of such entity having the
right to

<PAGE>

exchange  their shares of Common Stock for cash,  securities or other  property,
then the Escrow Agent will, upon receipt of a certificate, executed by the Chief
Executive Officer or Chief Financial Officer of the Company,  in form reasonably
acceptable to the Escrow Agent, that such transaction is then being consummated,
release the Escrow Shares to the Initial  Stockholders  upon consummation of the
transaction so that they can similarly participate.  The Escrow Agent shall have
no further duties  hereunder after the disbursement or destruction of the Escrow
Shares in accordance with this Section 3.

         4. RIGHTS OF INITIAL STOCKHOLDERS IN ESCROW SHARES.

                  4.1 VOTING  RIGHTS AS A  STOCKHOLDER.  Subject to the terms of
the  Insider  Letter  described  in  Section  4.4  hereof  and  except as herein
provided,  the  Initial  Stockholders  shall  retain  all  of  their  rights  as
stockholders  of the  Company  during  the  Escrow  Period,  including,  without
limitation, the right to vote such shares.

                  4.2 DIVIDENDS AND OTHER DISTRIBUTIONS IN RESPECT OF THE ESCROW
SHARES.  During the Escrow Period, all dividends payable in cash with respect to
the Escrow Shares shall be paid to the Initial  Stockholders,  but all dividends
payable in stock or other  non-cash  property  ("Non-Cash  Dividends")  shall be
delivered to the Escrow Agent to hold in accordance  with the terms  hereof.  As
used herein,  the term "Escrow  Shares"  shall be deemed to include the Non-Cash
Dividends distributed thereon, if any.

                  4.3  RESTRICTIONS  ON TRANSFER.  During the Escrow Period,  no
sale,  transfer  or other  disposition  may be made of any or all of the  Escrow
Shares except (i) by gift to a member of Initial Stockholder's  immediate family
or to a trust, the beneficiary of which is an Initial Stockholder or a member of
an Initial Stockholder's immediate family, (ii) by virtue of the laws of descent
and distribution upon death of any Initial  Stockholder,  or (iii) pursuant to a
qualified  domestic  relations order;  PROVIDED,  HOWEVER,  that such permissive
transfers  may be  implemented  only upon the  respective  transferee's  written
agreement to be bound by the terms and  conditions of this  Agreement and of the
Insider Letter signed by the Initial Stockholder transferring the Escrow Shares.

                  4.4  INSIDER  LETTERS.  Each of the Initial  Stockholders  has
executed a letter  agreement  with EBC and the  Company,  dated as  indicated on
Exhibit A hereto, and which is filed as an exhibit to the Registration Statement
("Insider  Letter"),  respecting  the rights  and  obligations  of such  Initial
Stockholder in certain  events,  including but not limited to the liquidation of
the Company.

         5. CONCERNING THE ESCROW AGENT.

                  5.1 GOOD FAITH RELIANCE.  The Escrow Agent shall not be liable
for any action  taken or omitted by it in good faith and in the  exercise of its
own best judgment,  and may rely  conclusively  and shall be protected in acting
upon any  order,  notice,  demand,  certificate,  opinion  or advice of  counsel
(including counsel chosen by the Escrow Agent), statement, instrument, report or
other paper or document  (not only as to its due  execution and the validity and
effectiveness of its provisions,  but also as to the truth and  acceptability of
any information  therein  contained) which is believed by the Escrow Agent to be
genuine  and to be signed or  presented  by the proper  person or  persons.  The
Escrow  Agent  shall  not be bound  by any  notice  or  demand,  or any  waiver,
modification,  termination or rescission of this Agreement unless evidenced by a
writing delivered

                                       2
<PAGE>

to the Escrow  Agent signed by the proper party or parties and, if the duties or
rights of the Escrow  Agent are  affected,  unless it shall have given its prior
written consent thereto.

                   5.2  INDEMNIFICATION.  The Escrow Agent shall be  indemnified
and held  harmless by the  Company  from and  against  any  expenses,  including
counsel  fees  and  disbursements,  or loss  suffered  by the  Escrow  Agent  in
connection with any action,  suit or other proceeding  involving any claim which
in any way, directly or indirectly,  arises out of or relates to this Agreement,
the  services of the Escrow  Agent  hereunder,  or the Escrow  Shares held by it
hereunder,  other than expenses or losses  arising from the gross  negligence or
willful misconduct of the Escrow Agent. Promptly after the receipt by the Escrow
Agent of notice of any demand or claim or the  commencement of any action,  suit
or  proceeding,  the  Escrow  Agent  shall  notify the other  parties  hereto in
writing.  In the event of the receipt of such notice,  the Escrow Agent,  in its
sole  discretion,  may  commence an action in the nature of  interpleader  in an
appropriate court to determine  ownership or disposition of the Escrow Shares or
it may deposit the Escrow Shares with the clerk of any  appropriate  court or it
may retain the Escrow Shares pending receipt of a final, non-appealable order of
a court having jurisdiction over all of the parties hereto directing to whom and
under what  circumstances  the Escrow Shares are to be disbursed and  delivered.
The  provisions  of this Section 5.2 shall survive in the event the Escrow Agent
resigns or is discharged pursuant to Sections 5.5 or 5.6 below.

                  5.3  COMPENSATION.  The  Escrow  Agent  shall be  entitled  to
reasonable  compensation  from  the  Company  for all  services  rendered  by it
hereunder.  The Escrow  Agent shall also be entitled to  reimbursement  from the
Company for all  expenses  paid or incurred by it in the  administration  of its
duties  hereunder  including,  but not limited to, all  counsel,  advisors'  and
agents' fees and disbursements and all taxes or other governmental charges.

                  5.4  FURTHER  ASSURANCES.  From  time to time on and after the
date hereof, the Company and the Initial  Stockholders shall deliver or cause to
be  delivered to the Escrow Agent such further  documents  and  instruments  and
shall  do or  cause to be done  such  further  acts as the  Escrow  Agent  shall
reasonably  request to carry out more effectively the provisions and purposes of
this Agreement,  to evidence  compliance herewith or to assure itself that it is
protected in acting hereunder.

                  5.5  RESIGNATION.  The Escrow Agent may resign at any time and
be discharged  from its duties as escrow agent hereunder by its giving the other
parties  hereto written notice and such  resignation  shall become  effective as
hereinafter provided.  Such resignation shall become effective at such time that
the Escrow Agent shall turn over to a successor  escrow  agent  appointed by the
Company,  the  Escrow  Shares  held  hereunder.  If no new  escrow  agent  is so
appointed  within  the 60 day  period  following  the  giving of such  notice of
resignation,  the Escrow  Agent may deposit the Escrow  Shares with any court it
reasonably deems appropriate.

                  5.6 DISCHARGE OF ESCROW  AGENT.  The Escrow Agent shall resign
and be discharged  from its duties as escrow agent  hereunder if so requested in
writing at any time by the other parties  hereto,  jointly,  provided,  however,
that such resignation shall become effective only upon acceptance of appointment
by a successor escrow agent as provided in Section 5.5.

                  5.7  LIABILITY.   Notwithstanding   anything   herein  to  the
contrary,  the Escrow Agent shall not be relieved from  liability  hereunder for
its own gross negligence or its own willful misconduct.

                                       3
<PAGE>

         6. MISCELLANEOUS.

                  6.1 GOVERNING  LAW. This  Agreement  shall for all purposes be
deemed to be made under and shall be  construed in  accordance  with the laws of
the State of New York, without giving effect to conflicts of law principles that
would result in the application of the substantive laws of another jurisdiction.

                  6.2   THIRD   PARTY   BENEFICIARIES.   Each  of  the   Initial
Stockholders   hereby   acknowledges  that  the  Underwriters  are  third  party
beneficiaries  of this  Agreement  and this  Agreement  may not be  modified  or
changed without the prior written consent of EBC.

                  6.3  ENTIRE  AGREEMENT.  This  Agreement  contains  the entire
agreement of the parties  hereto with respect to the subject  matter hereof and,
except as expressly provided herein, may not be changed or modified except by an
instrument in writing signed by the party to the charged.

                  6.4 HEADINGS. The headings contained in this Agreement are for
reference  purposes  only  and  shall  not  affect  in any  way the  meaning  or
interpretation thereof.

                  6.5 BINDING  EFFECT.  This Agreement shall be binding upon and
inure  to  the  benefit  of  the  respective  parties  hereto  and  their  legal
representatives, successors and assigns.

                  6.6  NOTICES.  Any notice or other  communication  required or
which  may be given  hereunder  shall be in  writing  and  either  be  delivered
personally or be mailed,  certified or registered  mail, or by private  national
courier service, return receipt requested,  postage prepaid, and shall be deemed
given when so  delivered  personally  or, if mailed,  two days after the date of
mailing, as follows:

                  If to the Company, to:

                           Israel Technology Acquisition Corp.
                           23 Karlibach St.
                           Tel Aviv 67132
                           Israel
                           Attn: Chairman

                  If to a Stockholder, to his address set forth in Exhibit A.

                  and if to the Escrow Agent, to:

                           Continental Stock Transfer & Trust Company
                           17 Battery Place
                           New York, New York 10004
                           Attn: Chairman

                                       4
<PAGE>

                  A copy of any notice sent hereunder shall be sent to:

                           Kramer Levin Naftalis & Frankel LLP
                           919 Third Avenue
                           New York, New York 10022
                           Attn: Richard Gilden, Esq.

                  and:

                           EarlyBirdCapital, Inc.
                           600 Third Avenue
                           33rd Floor
                           New York, New York 10016
                           Attn: David M. Nussbaum, Chairman

                  and:

                           Graubard Miller
                           The Chrysler Building
                           405 Lexington Avenue
                           New York, New York 10174
                           Attn: David Alan Miller, Esq.

                  The parties may change the persons and  addresses to which the
notices or other  communications  are to be sent by giving written notice to any
such change in the manner provided herein for giving notice.

                   6.7  LIQUIDATION  OF THE COMPANY.  The Company shall give the
Escrow Agent written  notification  of the  liquidation  and  dissolution of the
Company in the event that the Company fails to consummate a Business Combination
within the time period(s) specified in the Prospectus.

                                       5
<PAGE>

                  WITNESS the  execution of this  Agreement as of the date first
above written.

                                  ISRAEL TECHNOLOGY ACQUISITION CORP.

                                  By: __________________________________
                                      Israel Frieder, Chief Executive Officer

                                  INITIAL STOCKHOLDERS:

                                  ______________________________
                                  Israel Frieder

                                  ______________________________
                                  Glen Shear

                                  ______________________________
                                  Dael Schnider

                                  ______________________________
                                  Victor Halpert

                                  CONTINENTAL STOCK TRANSFER
                                    & TRUST COMPANY

                                  By: ________________________________
                                      Name:
                                      Title:

                                       6
<PAGE>

                                    EXHIBIT A

<TABLE>
<CAPTION>
Name and Address of                                             Number           Stock                    Date of
Initial Stockholder                                          of Shares     Certificate Number          Insider Letter
-------------------                                          ---------     ------------------          --------------
<S>                                                            <C>                 <C>                       <C>
Israel Frieder                                                 225,000             1                   March 9, 2005
Israel Technology Acquisition Corp.
23 Karlibach St.
Tel Aviv 67132
Israel

Glen Shear                                                     225,000             2                   March 9, 2005
Israel Technology Acquisition Corp.
23 Karlibach St.
Tel Aviv 67132
Israel

Dael Schnider                                                  225,000             3                   March 9, 2005
Israel Technology Acquisition Corp.
23 Karlibach St.
Tel Aviv 67132
Israel

Victor Halpert                                                  75,000             4                   March 9, 2005
79 Madison Avenue
6th Floor
New York, New York 1016
</TABLE>

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