Document:

ex10_15.htm

    
      
        

      

    

    Exhibit 10.15

       

      AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

       

      THIS AMENDED AND RESTATED EMPLOYMENT
AGREEMENT is signed on the 14th day of
April, 2008, effective as of the 1st day of
January, 2008, by and between Arotech Corporation, a
Delaware corporation with offices at 1229 Oak Valley Drive, Ann Arbor, Michigan
48108 (the “Company”), and Thomas J. Paup, an individual
residing at 4716 Lohr Road, Ann Arbor, Michigan 46108 (the
“Employee”).

       

      W I T N E S S E T H
:

       

      WHEREAS, the Company and the
Employee entered into an Employment Agreement dated as of December 30, 2005 (the
“Original Agreement”); and

       

      WHEREAS, the Company and the
Employee now wish to extend the Employee’s employment and to amend and restate
the Original Agreement in its entirety in accordance with the terms of this
Agreement;

       

      NOW, THEREFORE, the parties hereto
do hereby agree as follows:

       

      1.      
     Title and Duties.

       

      (a)           The
Employee will serve as Vice President – Finance and Chief Financial Officer of
the Company, except that the Company may, from time to time, change the title
and/or duties of the Employee in such manner as shall not unduly prejudice the
rights of the Employee hereunder. The Employee will report to the President and
Chief Operating Officer of the Company or to such other person as shall be
designated, from time to time, by the Board of Directors of the
Company.

       

      (b)           The
Employee shall not during the term hereof undertake or accept any other
employment or occupation, whether paid or unpaid provided, however, that the Employee
may continue to work up to eight (8) evenings per month as a Finance
Instructor at Eastern Michigan University.
The Employee acknowledges and agrees that, although ordinary working hours are
expected to be Monday through Friday, 8 a.m. to 5 p.m., under certain
circumstances the performance of his duties hereunder may require additional
time and/or domestic and international travel. The Employee acknowledges that
this is a managerial position, and that accordingly overtime hours will be
worked as needed, without additional compensation.

       

      (c)           The
Employee’s place of work will be in Ann Arbor, Michigan, or at such other place
as the Company may from time to time specify, provided that the employment of
the Employee on a permanent basis at a place which is located more that fifty
(50) miles from Ann Arbor, Michigan shall be done only with the Employee’s prior
consent.

       

      2.         
   Compensation and Benefits.

       

      (a)           The
Company shall pay the Employee, as compensation for all of the employment
services provided by him hereunder during the term of this Agreement, an
annualized base salary of one hundred sixty thousand dollars ($160,000) (the
“Base Salary”). The Base Salary will be paid semi-monthly in arrears on the
fifteenth and final day of each month. The Base Salary will, effective January 1
of each year beginning January 1, 2009, be increased annually by six percent
(6%) to reflect changes in the Consumer Price Index during the previous year,
irrespective of the actual extent of any such changes. Additionally, the Base
Salary may be increased from time to time, effective January 1 of each year
beginning January 1, 2009,  in accordance with the Company’s
procedures, and in the Company’s sole discretion, based on the Employee’s
performance during the prior year.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (b)           The
Company agrees to pay or cause to be paid to the Employee on each March 31
following the first anniversary of this Agreement, or as soon thereafter as may
be possible in order to determine the relevant results of the Company, an annual
bonus, as follows:

       

      (i)      
     If, as of such anniversary, the Company shall have
attained 90% of the Company’s Budgeted Number (as defined below) for the year
preceding such anniversary, then Employee’s bonus shall be equal to 20% of
Employee’s gross annual Base Salary as then in effect for the year preceding
such anniversary;

       

      (ii)      
    If, as of such anniversary, the Company shall have
attained 120% of the Company’s Budgeted Number (as defined below) for the year
preceding such anniversary, then Employee’s bonus shall be equal to 50% of
Employee’s gross annual Base Salary as then in effect for the year preceding
such anniversary;

       

      (iii)       
  If, as of such anniversary, the Company shall have attained more
than 90% but less than 120% of the Company’s Budgeted Number (as defined below),
then Employee’s bonus shall be calculated as follows:

       

      B
=         (S x 20%) + (N-90)/30 x (S x
30%)

       

      Where:

       

      
        	
                 
      

              	
                B  =

              	
                The
      amount of Employee’s annual bonus;
and

              

      

       

      
        	
                 
      

              	
                N  =

              	
                The
      percentage of the Budgeted Number (as defined below) that was attained by
      the Company in the immediately preceding fiscal year; provided, however, that N is more
      than 90 and less than 120;

              

      

       

      
        	
                 
      

              	
                S  =

              	
                Employee’s
      gross annual Base Salary.

              

      

       

      For the
purposes of this Section 2(b), the Budgeted Number shall be the budgeted results
of the Company as agreed by the Board prior to the end of each fiscal year for
the fiscal year designated in such budget, and may include targets for any or
all of the following factors: (i) revenues; (ii) cash flow, and (iii) EBITDA. In
the event that some but not all targets are reached, the Compensation Committee
shall made a determination as to what percentage of the Budgeted Number was
attained.

      
        
           

        

        
          - 2
-

          
            

          

        

        
           

        

      

      (c)           The
Company has granted to the Employee a retention bonus of 65,000 shares of
restricted stock, vesting (i) 10,834 shares on December 31, 2008, 10,833 shares
on December 31, 2009, and 10,833 shares on December 31, 2010, with each such
vesting being contingent on the Employee being employed by the Company on the
scheduled vesting date, and (ii) 10,834 shares on December 31, 2008, 10,833
shares on December 31, 2009, and 10,833 shares on December 31, 2010, with each
such vesting being contingent on the Employee being employed by the Company on
the scheduled vesting date and on performance criteria to be established by the
Compensation Committee of the Board of Directors.

       

      (d)           The
Employee shall be entitled to a paid annual vacation of twenty (20) business
days with respect to, and during, each twelve (12) month period of his
employment hereunder, provided that the unused portion of any such vacation, in
respect to any year, may be carried forward only to the next two-year period.
Upon termination Employee shall be paid for all accrued but unused vacation. Any
vacation days taken by Employee in advance of their actual accrual shall be
considered an advance on wages and deducted from any wages owing at termination.
Timing of vacations will be cleared in advance with the Company.

       

      (e)           The
Employee shall be entitled to paid sick leave of five (5) days with respect to,
and during, each twelve (12) month period of his employment
hereunder.

       

      (f)           The
Company shall provide the Employee and his family with medical insurance and
related insurance benefits in accordance with its policies from time to time for
all employees generally.

       

      (g)           The
Company shall reimburse the Employee’s work-related expenses, against proper
receipts, subject to and in accordance with policies adopted, from time to time,
by the Company.

       

      3.      
      Confidential Information; Return of
Materials; Inventions; on-Solicitation.

       

      (a)           In
the course of his employment by the Company hereunder, the Employee will have
access to, and become familiar with, “Confidential Information” (as hereinafter
defined) of the Company. The Employee shall at all times hereinafter maintain in
the strictest confidence all such Confidential Information and shall not divulge
any Confidential Information to any person, firm or corporation without the
prior written consent of the Company. For purposes hereof, “Confidential
Information” shall mean all information in any and all media which is
confidential by its nature including, without limitation, data, technology,
know-how, inventions, discoveries, designs, processes, formulations, models,
customer lists and contact people, prices and any other trade and business
secrets relating to any line of business in which the Company’s marketing and
business plans relating to current, planned or nascent products.

       

      (b)           The
Employee shall not use Confidential Information for, or in connection with, the
development, manufacture or use of any product or for any other purpose
whatsoever except as and to the extent necessary for him to perform his
obligations under this Agreement.

      
        
           

        

        
          - 3
-

          
            

          

        

        
           

        

      

      (c)           Notwithstanding
the foregoing, Confidential Information shall not include information which the
Employee can evidence to the Company by appropriate documentation is in, or
enters, the public domain otherwise than by reason of breach hereof by the
Employee.

       

      (d)           All
Confidential Information made available to, or received by, the Employee shall
remain the property of the Company, and no license or other rights in or to the
Confidential Information is granted hereby.

       

      (e)           All
files, records, documents, drawings, specifications, equipment, and similar
items relating to the business of the Company, whether prepared by the Employee
or otherwise coming into his possession, and whether classified as Confidential
Information or not, shall remain the exclusive property of the Company. Upon
termination or expiration of this Agreement, or upon request by the Company at
any time, the Employee shall promptly turn over to the Company all such files,
records, reports, analyses, documents, and other material of any kind and in any
medium concerning the Company which the Employee obtained, received or prepared
pursuant to this Agreement without retaining any copies thereof in any
medium.

       

      (f)           Commencing
on the date hereof and ending two (2) years after the termination of this
Agreement (irrespective of the reason for such termination), the Employee shall
not solicit nor in any manner encourage other employees of the Company to leave
its employ. The Employee further agrees that during that two (2) year period he
will not offer, or cause to be offered, employment to any person who was
employed by the Company at any time during the three months prior to the
termination of this Agreement.

       

      (g)           The
Employee acknowledges that the provisions set forth in Section 3 of this
Agreement are fair and reasonable. The Employee further acknowledges that the
Company will be irreparably harmed if the Employee’s obligations under this
Section 3 are not specifically enforced and that the Company would not have an
adequate remedy at law in the event of an actual or threatened violation by the
Employee of the Employee’s obligations. Therefore, and in addition to any and
all other remedies to which it may be entitled, the Company shall be entitled to
an injunction or any appropriate decree of specific performance for any actual
or threatened violations or breach by the Employee without the necessity of the
Company showing actual damages or that monetary damages would not afford an
adequate remedy, and without posting a bond.

       

      (h)           The
provisions of this Section 3 shall survive the expiration or termination of this
Agreement regardless of the reasons therefor. Furthermore, the period of time
during which the restrictions set forth in subsection (f) above shall be in
effect shall be extended by the length of time during which the Employee is in
breach of any of the terms of such subsection.

       

      4.          
  Prohibition on Trading While in Possession of Material Non-Public
Information.

       

      (a)           The
Employee acknowledges that the Company is a publicly-listed company, and that
the Employee is a “person having a duty of trust or confidence” as defined in
Rule 10b5-2 promulgated under the United States Securities Exchange Act of 1934,
as amended, and that the Employee is accordingly prohibited from trading in
shares of the Company on the basis of material non-public information. The
Employee covenants and agrees that the Employee will not trade in, or, without
the express consent of the Company, exercise any option to purchase securities
of the Company (the “Arotech Shares”) (1) until at least two Trading Days (a
“Trading Day” being a day on which the U.S. Financial markets are open for
trading) have passed since such material information was released to the public,
and (2) during the period beginning on the eleventh calendar day of the third
month of each fiscal quarter and ending at the close of the second Trading Day
following the release of quarterly or annual financial results. The Employee
understands and acknowledges that the most appropriate time to trade in Arotech
Shares is the period beginning on the third Trading Day and ending on the
twelfth Trading Day following the release of quarterly or financial information,
provided that during such period the Employee possesses no other material
non-public information which is not disclosed in such release.

      
        
           

        

        
          - 4
-

          
            

          

        

        
           

        

      

      (b)           If
at any time the Employee is working on securities matters regarding the Company,
or is aware that the Company is offering or selling its own securities or is
involved in a tender offer situation, the Employee shall consult with the
General Counsel of the Company before trading in Arotech Shares.

       

      (c)           The
provisions of this Section 4 shall survive the expiration or termination of this
Agreement regardless of the reasons therefor.

       

      5.          Term and Termination. This
Agreement shall be for a period of three years (the “Initial Term”), provided, however, that the term of
this Agreement shall be automatically extended for additional terms of two (2)
years each (each, an “Additional Term”) upon the end of the Initial Term and
each Additional Term, unless either the Employee or the Company shall have given
written notice to the other at least ninety days (90) days prior thereto that
the Initial Term or any Additional Term of this Agreement shall not be so
extended (a “Non-Renewal”). This Agreement may be terminated at any time, as
follows:

       

      (a)           This
Agreement shall terminate upon the death or incapacitation of the Employee. For
purposes hereof, the Employee shall be deemed to be incapacitated if he is
unable to perform his duties hereunder, as evidenced by a certificate(s) to that
effect, signed by a doctor reasonably satisfactory to the Company, for a
continuous period of one hundred fifty (150) days or for shorter periods
aggregating more than two hundred (200) days in any period of twelve (12)
consecutive months.

       

      (b)           The
Company shall have the right to terminate this Agreement and the employment
relationship hereunder for cause, at any time, by informing the Employee that
such termination is for and cause and by further informing the Employee of the
acts or omissions constituting cause. In such event, this Agreement and the
employment relationship between the Company and the Employee shall be terminated
as of the time Employee is informed that such termination is for cause. For
purposes hereof, “cause” shall mean: (1) a breach of trust by the Employee,
including, for example, but without limitation, commission of an act of moral
turpitude, theft, embezzlement, self-dealing or insider trading; (2) the
unauthorized disclosure by the Employee of confidential information of or
relating to the Company; (3) a material breach by the Employee of this
Agreement; or (4) any act of, or omission by, the Employee which, in the
reasonable judgment of the Company, amounts to a serious failure by the Employee
to perform his responsibilities or functions or in the exercise of his
authority, which failure, in the reasonable judgment of the Company, rises to a
level of gross nonfeasance, misfeasance or malfeasance.

      
        
           

        

        
          - 5
-

          
            

          

        

        
           

        

      

      (c)           Upon
termination of this Agreement other than for the reasons set forth in subsection
(b) above, including without limitation a Non-Renewal, the Company shall pay the
Employee as severance pay an amount equal to (x) four (4) times the monthly Base
Salary at the highest rate in effect at any time within the ninety (90) day
period ending on the Termination Date, plus (y) an additional two (2) months’
Base Salary for every year worked during the term of this Agreement, with the
maximum severance payable (the sum of (x) and (y) above) of twelve (12) months’
Base Salary; provided,
however, that if the
Employee’s employment is terminated by reason of a Change of Control (as
hereinafter defined), the minimum termination payment shall be an amount equal
to twice the amount that it would had been had it been terminated for reasons
other than a Change of Control. For purposes of this Agreement, a “Change in
Control” shall mean any of the following events:

       

      (i)    the
acquisition (other than from the Company in any public offering or private
placement of equity or equivalent securities) by any person or entity of
beneficial ownership of thirty percent (30%) or more of the combined voting
power of the Company’s then outstanding voting securities; or

       

      (ii)    individuals
who, as of December 31, 2007, were members of the Board of the Company (the
“Original Board”), together with individuals approved by a vote of at least
two-thirds (2/3) of the individuals who were members of the Original Board and
are then still members of the Board of the Company, cease for any reason to
constitute at least one-third (1/3) of the Board of the Company; or

       

      (iii)           approval
by the shareholders of the Company of a complete winding-up of the Company or an
agreement for the sale or other disposition of all or substantially all of the
assets of the Company.

       

      6.           Miscellaneous.

       

      (a)           All
notices and other communications required or permitted under this Agreement
shall be in writing and shall be sent by facsimile transmission to the other
party at the fax number set forth below, with a copy sent by first class mail or
express courier to said party at the address set forth below, or to such other
fax number and/or address as a party may hereinafter designate by notice to the
other. Notices shall be effective on the date they are sent by facsimile
transmission if the facsimile transmission report confirms receipt by the
receiving fax.

       

      (b)           This
Agreement shall be subject to, governed by and construed in accordance with, the
laws of the State of Michigan without regard to conflicts of law provisions and
principles of that State, and the courts located in Washtenaw County, Michigan
shall have exclusive jurisdiction and venue of any dispute
hereunder.

       

      (c)           This
Agreement contains the entire agreement between the Employee and the Company
with respect to all matters relating to the Employee’s employment with the
Company and will supersede and replace all prior agreements and understandings,
written or oral, between the parties relating to the subject matter hereof. This
Agreement may be amended, modified, or supplemented only by a written instrument
signed by both of the parties hereto. No waiver or failure to act by either
party with respect to any breach or default hereunder, whether or not the other
party has notice thereof, shall be deemed to be a waiver with respect to any
subsequent breach or default, whether of similar or different
nature.

      
        
           

        

        
          - 6
-

          
            

          

        

        
           

        

      

      (d)           If
any provision of this Agreement, under all the then relevant circumstances, is
held to be invalid, illegal or unenforceable, the other provisions shall remain
in full force and effect, and the relevant provision shall automatically be
modified by substituting for the unenforceable provision an enforceable
provision which most closely approximates the intent and economic effect of the
invalid provision.

       

      (e)           This
Agreement shall inure to the benefit of the Company and its successors and
assigns.

       

      (f)           The
headings contained in this Agreement are intended solely for ease of reference
and shall be given no effect in the construction or interpretation of this
Agreement.

       

      IN WITNESS WHEREOF, the
parties hereto have duly executed this Agreement as of the effective date set
forth above:

       

      
        	 
      	 
      	Arotech
      Corporation
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                By:

              	 
      
	
                Thomas
      J. Paup

              	 
      	 
      	
                Name:

              
	 
      	 
      	 
      	
                Title:

              

      

       

       

      - 7 -ex10_24.htm

    
      
        

      

    

    Exhibit
10.24

     

    AGREEMENT
FOR THE SALE OF SHARES

    (Version
1.015)

    Written
and signed in Lod on January 15th, 2008

     

    

     

    
      	
              BETWEEN:

            	
              AROTECH
      CORPORATION

            

    

     

    
      	
               
      

            	
              Private
      Company 2249957 (Delaware, USA)

            

    

     

    
      	
               
      

            	
              Convened
      by the laws of Delaware, USA, and located in the USA
  at:

            

    

     

    
      	
               
      

            	
              1229
      Oak Valley Drive, Ann Arbor,
Michigan

            

    

     

    
      	
               
      

            	
              (Hereinafter:
      “Arotech”)

            

    

     

     

    
      	
              AND
    BETWEEN:

            	
              ELECTRIC FUEL (E.P.L.)
      LTD.

            

    

     

    
      	
               
      

            	
              Private
      Company 511532673

            

    

     

    
      	
               
      

            	
              Israeli
      company, located at 1 Hasolela Street, Beit Shemesh Industrial Zone, West,
      Israel

            

    

     

    
      	
               
      

            	
              (Hereinafter:
      “Electric
      Fuel”)

            

    

     

     

    
      	
              AND
    BETWEEN:

            	
              MDT ARMOR
      CORPORATION

            

    

     

    
      	
               
      

            	
              Private
      Company 3658224 (Delaware, USA)

            

    

     

    
      	
               
      

            	
              Convened
      by the laws of Delaware, USA, and located in the USA
  at:

            

    

     

    
      	
               
      

            	
              308
      Alabama Street, Auburn, AL 36832

            

    

     

    
      	
               
      

            	
              (Hereinafter:
      “MDT”)

            

    

     

     

    
      	
              AND
    BETWEEN:

            	
              M.D.T. PROTECTIVE INDUSTRIES
      LTD.

            

    

     

    
      	
               
      

            	
              Private
      company 511362451

            

    

     

    
      	
               
      

            	
              Israeli
      company, located at 1 Hamasger Street, Lod,
  Israel

            

    

     

    
      	
               
      

            	
              (Hereinafter:
      “M.D.T.)

            

    

     

    
       
-
on the one hand -

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              AND
    BETWEEN:

            	
              HRT
  LTD.

            

    

     

    
      	
               
      

            	
              Private
      Company 513162719

            

    

     

    
      	
               
      

            	
              Israeli
      company, located at 50 Wolfson Street, Rishon Lezion,
    Israel

            

    

     

    
      	
               
      

            	
              (Hereinafter:
      “HRT”)

            

    

     

     

    
      	
              AND
    BETWEEN:

            	
              YOSSI
  BAR

            

    

     

    
      	
               
      

            	
              Israeli
      Identity Number 0-1062177-9

            

    

     

    
      	
               
      

            	
              Residing
      at 50 Wolfson Street, Rishon Lezion

            

    

     

    
      	
               
      

            	
              (Hereinafter:
      “Yossi
      Bar”

            

    

     

     

    
       
-
on the other hand -

    

     

     

    
      	
              WHEREAS

            	
              HRT
      is the owner and sole holder of 539 regular shares with a set value of NIS
      1 each (hereinafter: “Regular Shares”) of
      M.D.T., of the share capital issued and redeemed by M.D.T. comprising 2200
      regular shares, so that HRT’s shares in M.D.T. comprise approximately
      24.5% of the issued and redeemed shares of M.D.T. (hereinafter: “HRT’s Shares in
      M.D.T.);

            

    

     

     

    
      	
            	
              AND
    WHEREAS

            	
              Electric
      Fuel is the owner and sole holder of 1661 regular shares of M.D.T., so
      that Electric Fuel’s shares in M.D.T. comprise approximately 75.5% of the
      issued and redeemed shares of
M.D.T.;

            

    

     

     

    
      	
            	
              AND
    WHEREAS

            	
              HRT
      is the owner and sole holder of 49 common shares, of the issued and
      redeemed share capital of MDT, each valued at 0.01 USA Dollars
      (hereinafter: “Dollar”), comprising 408
      common shares, so that HRT’s shares in MDT comprise approximately 12.01%
      of the issued and redeemed shares of MDT (hereinafter: “HRT’s Shares in
      MDT”);

            

    

     

     

    
      	
              AND
    WHEREAS

            	
              Yossi
      Bar was given the option of purchasing 5% of MDT’s shares (hereinafter:
      the
      Option”);

            

    

     

     

    
      	
              AND
    WHEREAS

            	
              Yossi
      Bar is the shareholder and CEO of
HRT;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              AND
    WHEREAS

            	
              HRT
      and Yossi Bar declare and undertake, as a fundamental and basic element of
      this agreement, that all the shares of HRT in M.D.T. and all of HRT’s
      shares in MDT are under the full, sole and complete ownership of HRT and
      are clear and free of any right and/or attachment and/or seizure and/or
      contradictory undertaking toward any third party (hereinafter: “Clear and Free”), and
      there is no deterrent by any law and/or agreement that HRT and/or Yossi
      Bar and/or any representative on his behalf sell all HRT’s shares in
      M.D.T. and HRT’s shares in MDT and that, as needed, HRT come to a legal
      decision to sell all its shares as stated above, according to the
      directives of this agreement;

            

    

     

     

    
      	
            	
              AND
    WHEREAS

            	
              Electric
      Fuel is interested in purchasing all HRT’s shares in M.D.T. from HRT and
      HRT is interested in selling Electric Fuel all HRT’s shares in M.D.T. and
      Arotech is interested in purchasing all HRT’s shares in MDT from HRT and
      HRT is interested in selling all HRT’s shares in MDT to Arotech - all
      according to the terms of this agreement; and that, as needed, Arotech
      and/or Electric Fuel have effected a legal decision to purchase the shares
      as stated above, according to the directives of this
      agreement;

            

    

     

     

    
      	
            	
              AND
    WHEREAS

            	
              After
      the sale of all HRT’s shares in M.D.T. and the sale of all HRT’s shares in
      MDT, according to the directives of this agreement, HRT and/or Yossi Bar
      will not have any right and/or claim and/or demand and/or suit, of any
      type or kind, today or in the future, towards Arotech and/or Electric Fuel
      and/or M.D.T. and/or MDT and/or any person connected to them and/or any
      representative on their behalf, including, but without excluding, any
      worker and/or manager and/or position holder and/or director and/or
      shareholder, amongst them;

            

    

     

     

    
      	
            	
              AND
    WHEREAS

            	
              on
      January 3, 2008, Yossi Bar was dismissed from M.D.T., a position which he
      had held from February 1, 1989 and according to this agreement M.D.T.
      wishes to settle all accounts between M.D.T. and Yossi Bar in regard to
      the employer-employee relations between them, in a manner that will serve
      as a full and complete defrayal of any right and/or demand and/or claim
      and/or suit, of any type or kind, today or in the future, of Yossi Bar to
      M.D.T. and/or any person on its behalf or connected to it in any way
      (directly or indirectly, including, but not excluding, shareholders,
      position holders and workers) regarding the working relations that existed
      between Yossi Bar and M.D.T., including, but not excluding, in regard to
      the dismissal of Yossi Bar from his abovementioned
    employment;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              AND
    WHEREAS

            	
              The
      working relationship between M.D.T. and HRT terminated on January 3, 2008,
      according to which HRT provided M.D.T. with engineering services, and as
      part of this agreement M.D.T. wishes to settle all accounts between M.D.T.
      and HRT regarding the services provided by HRT as stated above, in a
      manner that will serve as a full and complete defrayal of any right and/or
      demand and/or claim and/or suit, of any type or kind, today or in the
      future, of HRT to M.D.T. and/or any person on its behalf or connected to
      it in any way (directly or indirectly, including, but not excluding,
      shareholders, position holders and
workers);

            

    

     

     

    
      	
            	
              AND
    WHEREAS

            	
              M.D.T.
      wishes to receive from Yossi Bar and any person on his behalf, not as part
      of employer-employee relations, services connected to the completion of
      M.D.T.’s undertakings toward third parties in the Tzivoni Project, and
      Yossi Bar wishes and agrees to provide M.D.T. with the abovementioned
      services, not as part of employer-employee
  relations;

            

    

     

    
      	
            	
              AND
    WHEREAS

            	
              The
      parties wish to settle, in a final, comprehensive, full and complete
      manner, any dispute and/or conflict and/or claim and/or suit and/or demand
      and/or matter pertaining to the relationship between the parties,
      including, but without excluding, the fact that HRT is a shareholder in
      M.D.T. and/or MDT and/or the working relations between Yossi Bar and
      M.D.T. and/or the relations between HRT and
  M.D.T.

            

    

     

     

    It
was therefore agreed and declared as follows:

     

     

    
      	
              1.

            	
              Introduction

            

    

     

     

    
      	
               
      

            	
              1.1

            	
              The
      preamble to this agreement and its appendices are an inseparable part
      thereof and taken to be one of its
terms.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              1.2

            	
              The
      titles of the sections in this agreement are used for convenience sake
      only and do not carry any weight in its
  interpretation.

            

    

     

    
      	
               
      

            	
              1.3

            	
              This
      agreement cancels or terminates any other consent and/or relationship
      and/or agreement and/or contract previously written and/or signed between
      the parties, including contacts for the purpose of employment and
      employer-employee relations of Yossi Bar at M.D.T. and/or contacts between
      HRT and M.D.T., excluding any undertaking for maintaining
      confidentiality.

            

    

     

     

    
      	
              2.

            	
              Declarations and
      Undertakings of the Parties

            

    

     

     

    
      	
               
      

            	
              2.1

            	
              Electric Fuel declares and
      undertakes as follows:

            

    

     

    
      	
               
      

            	
              2.1.1

            	
              It
      recognizes the situation of M.D.T., including, but not excluding, its
      legal situation, undertakings and assets and it purchases all of HRT’s
      shares in M.D.T., according to the situation of the company and subject to
      the directives of this agreement, including the correctness of the
      presentations and undertakings of HRT and/or Yossi Bar, it waives any
      claim and/or suit and/or demand towards HRT and any representative on its
      behalf or towards Yossi Bar and/or any representative on his
      behalf.

            

    

     

    
      	
               
      

            	
              2.1.2

            	
              There
      is no deterrent, according to any law and/or agreement to which Electric
      Fuel is a party, to purchase all of HRT’s shares in M.D.T. from
      HRT.

            

    

     

    
      	
               
      

            	
              2.1.3

            	
              As
      far as is required, Electric Fuel has reached the legal decision to
      purchase all of HRT’s shares in M.D.T. from
HRT.

            

    

     

     

    
      	
               
      

            	
              2.2

            	
              Arotech declares and undertakes
      as follows:

            

    

     

    
      	
               
      

            	
              2.2.1

            	
              It
      recognizes the situation of M.D.T., including, but not excluding, its
      legal situation, undertakings and assets, and its purchases all of HRT’s
      shares in M.D.T., according to the situation of the company and subject to
      the directives of this agreement, including the correctness of the
      presentations and undertakings of HRT and/or Yossi Bar, it waives any
      claim and/or suit and/or demand towards HRT and any representative on its
      behalf or towards Yossi Bar and/or any representative on his
      behalf.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              2.2.2

            	
              There
      is no deterrent, according to any law and/or agreement to which Arotech is
      a party, to purchase all of HRT’s shares in M.D.T. from
    HRT.

            

    

     

    
      	
               
      

            	
              2.2.3

            	
              As
      far as is needed, Arotech has reached the legal decision to purchase all
      of HRT’s shares in M.D.T. from HRT.

            

    

     

     

    
      	
               
      

            	
              2.3

            	
              M.D.T. declares and undertakes
      as follows:

            

    

     

    
      	
               
      

            	
              2.3.1

            	
              There
      is no deterrent, according to any law and/or agreement to which M.D.T. is
      a party, to purchase all of HRT’s shares in M.D.T. from
    HRT.

            

    

     

    
      	
               
      

            	
              2.3.2.

            	
              Subject
      to the terms of this agreement, including the correctness of the
      presentations and undertakings of HRT and/or Yossi Bar, it waives any
      claim and/or suit and/or demand towards HRT and any representative on its
      behalf or towards Yossi Bar and/or any representative on his
      behalf

            

    

     

    
      	
               
      

            	
              2.3.3

            	
              As
      far as is required, Arotech has reached the legal decision to purchase all
      of HRT’s shares in M.D.T. from HRT.

            

    

     

     

    
      	
               
      

            	
              2.4

            	
              MDT declares and undertakes as
      follows:

            

    

     

    
      	
               
      

            	
              2.4.1

            	
              There
      is no deterrent, according to any law and/or agreement to which MDT is a
      party, to purchase all of HRT’s shares in MDT from
  HRT.

            

    

     

    
      	
               
      

            	
              2.4.2.

            	
              Subject
      to the terms of this agreement, including the correctness of the
      presentations and undertakings of HRT and/or Yossi Bar, it waives any
      claim and/or suit and/or demand towards HRT and any representative on its
      behalf or towards Yossi Bar and/or any representative on his
      behalf

            

    

     

    
      	
               
      

            	
              2.4.3

            	
              As
      far as is required, MDT has reached the legal decision to purchase all of
      HRT’s shares in MDT from HRT.

            

    

     

     

    
      	
               
      

            	
              2.5

            	
              HRT
      and Yossi Bar, jointly and severally, declare and undertake as
      follows:

            

    

     

    
      	
               
      

            	
              2.5.1

            	
              HRT
      is the owner and the only and sole holder of all HRT’s shares in M.D.T.,
      i.e. 539 regular shares of M.D.T. at a set value of NIS 1 each, comprising
      24.5% of M.D.T.’s issued and redeemed share
  capital.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              2.5.2

            	
              HRT
      is the owner and the only and sole holder of all HRT’s shares in MDT, i.e.
      49 common shares of MDT at a set value of 0.01 USA Dollars each,
      comprising 12.01% of MDT’s issued and redeemed share
    capital.

            

    

     

    
      	
               
      

            	
              2.5.3

            	
              All
      HRT’s shares in M.D.T. are clear and free and all HRT’s shares in MDT are
      clear and free, and are sold to Electric Fuel and to Arotech (as the case
      may be) while clear and free.

            

    

     

    
      	
               
      

            	
              2.5.4

            	
              The
      option of Yossi Bar is clear and
free.

            

    

     

    
      	
               
      

            	
              2.5.5

            	
              There
      is no deterrent, of right and/or agreement, for Yossi Bar to sell all
      HRT’s shares in M.D.T. to Electric Fuel and/or to sell all HRT’s shares in
      MDT to Arotech, while clear and
free.

            

    

     

    
      	
               
      

            	
              2.5.6

            	
              As
      required, HRT has come to the decision to sell all HRT’s shares in M.D.T.
      to Electric Fuel and/or to all HRT’s shares in MDT to
    Arotech.

            

    

     

     

    
      	
              3.

            	
              Sale and Transfer of
      Shares and Option

            

    

     

     

    
      	
               
      

            	
              3.1

            	
              Subject
      to the payment of remuneration as stated in Section 4 below, HRT hereby
      sells and transfers to Electric Fuel, and Electric Fuel hereby receives
      from HRT, all HRT’s shares in M.D.T., while clear and free, so that with
      the transfer of shares as stated above, Electric Fuel will become the sole
      owner of the shares, while clear and free. At the time of signing this
      agreement, HRT will deliver the legally signed share transfer bills and
      notifications to the State Registrar in Israel regarding their transfer,
      according to the version in Appendix
      3.1.

            

    

     

    
      	
               
      

            	
              3.2

            	
              Subject
      to the payment of remuneration as stated in Section 4 below, HRT hereby
      sells and transfers to Arotech and Arotech hereby receives from HRT all
      HRT’s shares in MDT, while clear and free, so that with the transfer of
      shares as stated above, Arotech will become the sole owner of the shares,
      while clear and free. At the time of signing this agreement, HRT will
      deliver the share certificates and share transfer bills, according to the
      version in Appendix
      3.2.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              3.3

            	
              Subject
      to the payment of remuneration as stated in Section 4 below, Yossi Bar
      hereby waives, finally, completely and irrevocably, the option, so that
      after the payment of remuneration as stated in Section 4 below, the option
      will be annulled and will not give Yossi Bar any right toward MDT and/or
      to receive shares from MDT.

            

    

     

    
      	
               
      

            	
              3.4

            	
              The
      parties hereby undertake and declare that they will sign on any document
      and/or notification and/or protocol and/or bill and/or form needed to
      validate and legalize the directives of this
  agreement.

            

    

     

    
      	
               
      

            	
              3.5

            	
              After
      the transfer of shares and annulment of the option as stated above, and
      the payment of remuneration in lieu of the shares and option, as stated in
      Section 4 below, neither of the parties shall have any right and/or claim,
      of any type or kind, towards the other
party.

            

    

     

     

    
      	
              4.

            	
              Remuneration in Lieu
      of the Sale of Shares and Waiver of
  Option

            

    

     

     

    
      	
               
      

            	
              4.1

            	
              Subject
      to the declarations and undertaking of the parties, as stated in Section
      3, Electric Fuel will pay HRT a sum of $1,000,000 (one million USA
      Dollars), according to the following
details:

            

    

     

    
      	
               
      

            	
              4.1.1

            	
              In
      return for 539 shares of M.D.T., held by HRT, an amount of 179,796 USA
      Dollars (calculation of the value of M.D.T. was conducted according to the
      evaluation of Accountant David Cohen, attached and marked 4).

            

    

     

    
      	
               
      

            	
              4.1.2

            	
              In
      return for 5% of Yossi Bar’s options in MDT, an amount of 241,237 USA
      Dollars.

            

    

     

    
      	
               
      

            	
              4.1.3

            	
              In
      return for 49 common shares of MDT held by HRT, an amount of 578,967 USA
      Dollars.

            

    

     

    
      	
               
      

            	
              4.2

            	
              Remuneration
      payments, as stated above, will be transferred in two simultaneous
      payments, according to the
following:

            

    

     

    
      	
               
      

            	
              4.2.1

            	
              A
      sum of $241,237, in a bank transfer to account number 193756, at Bank
      Hapoalim, branch 555, in the name of Yossi
Bar.

            

    

     

    
      	
               
      

            	
              4.2.2

            	
              A
      sum of $758,763, in a bank transfer to account number517365, at Bank
      Hapoalim, branch 555, in the name of
HRT.

            

    

     

    
      	
               
      

            	
              4.3

            	
              It
      is hereby agreed that the sale of HRT’s shares in MDT, while clear and
      free, as stated above, serves also as the redemption of the loan given by
      Arotech to HRT in the amount of $90,000 + interest according to the loan
      agreement, and that subject to the sale and transfer of all HRT’s shares
      in MDT to Arotech, while clear and free, as stated above, HRT and/or any
      person on its behalf and Yossi Bar and/or anyone on his behalf does not
      bear any debt to Arotech and/or to Electric Fuel and/or to MDT and/or to
      M.D.T.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              4.4

            	
              It
      is hereby clarified and explicitly stated that the amounts of remuneration
      stated above are complete and final amounts, which will not change for any
      reason, and include any legal tax and/or payment, excluding VAT, if and
      when imposed, and this will be added to the amount of remuneration in
      exchange for a legal tax invoice.

            

    

     

     

    
      	
              5.

            	
              Finality of Employment
      and Waiver of Claims

            

    

     

     

    
      	
               
      

            	
              5.1

            	
              Subject
      to the correctness of all presentations and declarations and the
      fulfillment of all undertakings of the parties, as stated above and below,
      the parties hereby declare and undertake that they and/or any person on
      their behalf does not and will not have any claim and/or demand and/or
      suit and/or right, of any type or kind, today or in the future, towards
      the other party and/or any person on their behalf and/or connected to
      them.

            

    

     

     

    
      	
              6.

            	
              Settling Accounts
      between M.D.T. and HRT in Regard to Services Provided by HRT to
      M.D.T.

            

    

     

     

    
      	
               
      

            	
              6.1

            	
              M.D.T.
      and/or Arotech and/or Electric Fuel hereby undertake to pay off M.D.T.’s
      debt to HRT with interest added, as by law, for services provided by HRT
      to M.D.T. as specified in M.D.T.’s books, and which, at the time of the
      signing of the agreement, amounted toNIS
      494, 619. At the same time and the same ratio M.D.T.’s debt to Arotech
      will be paid off, which, at the time of the signing of the agreement,
      amounted to NIS 3,325,089. Despite the above mentioned, if M.D.T.’s entire
      debt to HRT has not been paid off within four years from the date of the
      signing of this agreement, as stated above, M.D.T. and/or Arotech and/or
      Electric Fuel will pay off the remainder of the debt, in full and
      immediately, with no connection whatsoever to paying off the remainder of
      M.D.T.’s debt to Arotech.

            

    

     

    
    

    
      
        
          	
                   
      

                	
                  6.2

                	
                  MDT
      and/or Arotech and/or Electric Fuel hereby undertake to pay off MDT’s debt
      to HRT with interest added as by law, for services provided by HRT to MDT
      which, at the time of the signing of the agreement, amounted to $22,000
      (twenty-two thousand USA Dollars). At the same time and the same ratio
      MDT’s debt will be paid off. Despite the abovementioned, if MDT’s entire
      debt to HRT has not been paid off within four years from the date of the
      signing of this agreement, as stated above, MDT and/or Arotech and/or
      Electric Fuel will pay off the remainder of the debt, in full and
      immediately, with no connection whatsoever to paying off the remainder of
      MDT’s debt to
Arotech.

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              6.3

            	
              For
      the avoidance of doubt, it is hereby clarified and agreed that, excluding
      the abovementioned debt amounts, M.D.T. and/or MDT do not have any other
      debt, of any type of kind, to HRT and/or Yossi Bar and/or a representative
      on his behalf and/or any person connected to them, and with the paying off
      of the debt amounts mentioned above in this Section, HRT does not have,
      nor will it have, any rights and/or claims and/or demands and/or suits, of
      any type or kind, directly or indirectly, towards M.D.T. and/or MDT also
      in connection with that mentioned above in this
  section.

            

    

     

     

    
      	
              7.

            	
              Settling of Accounts
      in Regard to the Dismissal of Yossi
Bar

            

    

    
 

    
      	
               
      

            	
              7.1

            	
              At
      the time of the signing of this agreement and for the purpose of ending
      all disputes between the parties regarding the terms awarded in favor of
      Mr. Yossi Bar following his dismissal, M.D.T. hereby undertakes to pay Mr.
      Yossi Bar and to transfer in his
name:

            

    

     

    
      	
               
      

            	
              7.1.1

            	
              The
      entire amount accrued in favor of Yossi Bar as part of the Managers’
      Insurance (bituach
      menahalim), in lieu of compensation pay in the amount of NIS
      180,429 and NIS
      88,539 for pension.

            

    

     

    
      	
               
      

            	
              7.1.2

            	
              Transfer
      of a car - Mazda MPV, license number 75-206-57, valued at NIS 88,200 -
      owned by M.D.T to the ownership of Yossi Bar. All taxes for this section
      will be paid by Yossi Bar.

            

    

     

    
      	
               
      

            	
              7.2

            	
              Even
      so, Yossi Bar agrees that if he ever brings to court a claim according to
      which he is entitled by law to a larger sum than that which has accrued in
      Managers’ Insurance, the section in this agreement dealing with the sale
      of the option in MDT and this amount will be returned to Arotech in favor
      of the remaining compensation pay, and will constitute full coverage for
      all the rights of Yossi Bar to legal compensation from M.D.T. and will
      release M.D.T. from any liability to pay legal
    compensation.

            

    

     

    
      	
               
      

            	
              7.3

            	
              Yossi
      Bar declares and undertakes that after receiving the abovementioned
      payment, he does not have any claim and/or demand and/or suit and/or right
      against M.D.T. in regard to his employment with M.D.T., including, but
      without excluding, all matters regarding the termination of his employment
      with M.D.T.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              8.

            	
              Receiving Advisory
      Services in Regard to Projects by
M.D.T.

            

    

     

     

    
      	
               
      

            	
              8.1

            	
              Mr.
      Yossi Bar and/or HRT and/or any other company owned by Yossi Bar
      (including HRT) providing advisory (or any other) services in the field of
      protection (or in any other field) to the general public (without
      limitation), hereby undertake to provide advisory and protective services
      to M.D.T. for the purpose of completing the Tzivoni
    project.

            

    

    
      	
               
      

            	
              8.2

            	
              In
      any case, it is hereby clarified and agreed that the services will be
      provided as an independent and external contractor and there will not
      exist any employer-employee relations between Yossi Bar and/or any person
      providing the actual services and M.D.T. This directive is fundamental in
      any connection according to the directives of this
  section.

            

    

    
      	
               
      

            	
              8.3

            	
              Remuneration in Lieu of the
      Tzivoni Project

            

    

    
      	
               
      

            	
              8.3.1

            	
              In
      return for advisory services in regard to the Tzivoni project to be
      provided by Yossi Bar or any person on his behalf to M.D.T., M.D.T. will
      pay Yossi Bar and/or any person on his behalf on an hourly basis for work
      performed by Yossi Bar and/or any person on his behalf. Yossi Bar will
      provide a cost estimate for this
project.

            

    

    
      	
               
      

            	
              8.3.2

            	
              In
      return for every hour’s work, M.D.T. will pay Yossi Bar a total of $ 90
      (ninety USA Dollars) per hour, with legally added
  VAT.

            

    

    
      	
               
      

            	
              8.3.3

            	
              The
      remuneration, as stated, will be paid once a month for the previous month,
      not later than the tenth of every Gregorian month, against a legal tax
      invoice.

            

    

    
      	
               
      

            	
              8.3.4

            	
              Amounts
      stated in Dollars will be paid in New Israeli Shekels according to the
      representative exchange rate published by the Bank of Israel and known on
      the day of payment.

            

    

    
      	
               
      

            	
              8.3.5

            	
              It
      is hereby agreed that M.D.T. will bear all of Yossi Bar’s expenses in
      regard to his providing of advisory services, as stated above, according
      to the budget approved by M.D.T., in advance and in
    writing.

            

    

    
      	
               
      

            	
              8.4

            	
              Remuneration in Lieu of Other
      Projects

            

    

    

    
      	
            	
               

            	
              The
      return for advisory services in connection with other projects, if
      requested and if provided to M.D.T., will be agreed upon between the
      parties, in advance and in writing, prior to the providing of
      services.

            

    

    

    
      	
              9.

            	
              Confidentiality and
      Non-Competition

            

    

    

     

    
      	
               
      

            	
              9.1

            	
              HRT
      and/or Yossi Bar hereby undertake not to make any use, of any type and
      kind (including by transfer to a third party), themselves or through a
      representative and/or any person connected to them, of the name of MDT
      and/or M.D.T., and/or in the name of any company connected to them; of the
      reputation of MDT and/or of M.D.T. and/or of any other company connected
      to them. This undertaking is valid without any time
      limitation.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              9.2

            	
              Without
      detracting from the generality of the above, HRT and/or Yossi Bar
      undertake to maintain confidentiality, not to disclose or transfer,
      directly or indirectly, to any person or entity, any information
      connected, directly or indirectly, to the company, its business, property,
      rights, undertakings and privileges and any other information that will be
      brought to the knowledge of HRT and/or Yossi Bar, due to the fulfillment
      of their positions in the company or in regard to it. This undertaking is
      valid without any time limitation.

            

    

    
      	
               
      

            	
              9.3

            	
              HRT
      and Yossi Bar undertake not to approach any M.D.T. and/or MDT worker,
      (other than those who have resigned and/or were dismissed) with a work
      proposal, for a period of 24 months after the date of signing this
      agreement (they are: Mr. Yossi Bar, Mr. Oren Bar, Ms. Henia Bar, Mr. Ofer
      Keren and Ms. Natalie Parisien).

            

    

    
      	
               
      

            	
              9.4

            	
              Mr.
      Yossi Bar and/or HRT and/or any other company owned by Mr. Yossi Bar are
      permitted to engage in any field and any business without any limitation,
      on condition that no commercial secrets of Arotech, Electric Fuel, M.D.T.,
      and/or MDT are used.

            

    

    
      	
               
      

            	
              9.5

            	
              Mr.
      Yossi Bar and/or HRT and/or any other company owned by Mr. Yossi Bar are
      permitted to engage in any field and any business even if they compete
      with M.D.T. and/or MDT, subject to Section 9.1, 9.2 and 9.3
      above.

            

    

    
      	
               
      

            	
              9.6

            	
              Any
      information that is public knowledge (and did not become public knowledge
      due to the violation of the confidentiality requirement in this agreement)
      will not be considered confidential according to this
      agreement.

            

    

    

    
      	
              10.

            	
              Taxes and
      Expenses

            

    

    

     

    
      	
            	
              10.1

            	
              Any
      tax requirement and/or fee and/or other legal payment, direct or indirect,
      that affects any of the payments according to this agreement, will apply
      in full to the party legally bound by this. Tax at source will be deducted
      from all amounts paid according to this agreement, unless the other party
      presents the paying party with a valid exemption from paying tax at
      source.

            

    

    
      	
            	
              10.2

            	
              Without
      detracting from the generality of the above, VAT, if required on any of
      the payments according to the directives of this agreement, will be added
      to the payment against a legal tax
invoice.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              11.

            	
              Application

            

    

    

     

    
      	
            	
              11.1

            	
              The
      application of Section 3.1-3.3 and 7.1.2 will be retroactive from December
      31, 2007.

            

    

    

    
      	
              12.

            	
              Settlement of Dispute:
      the Applied Law and Place of
Jurisdiction

            

    

    

     

    
      	
            	
              12.1

            	
              Any
      dispute between the parties in regard to this agreement, including, and
      without excluding, its implementation, understanding and upholding, will
      be decided in an arbitration process, according to the Law of Arbitration,
      5728 - 1968 (hereinafter: “the Law of
      Arbitration”), by a single arbitrator whose identity will be agreed
      upon between the parties and with the lack of such agreement, each party
      may petition, within seven days since the petition of one party to the
      other, the head of the Tel Aviv District Committee of the Israel Bar to
      appoint an arbitrator (hereinafter: “the
      Arbitrator”).

            

    

    
      	
            	
              12.2

            	
              The
      Arbitrator will be authorized to issue temporary and interim orders and
      any other - temporary or permanent - relief, to be considered correct
      under the circumstances at hand.

            

    

    
      	
            	
              12.3

            	
              The
      Arbitrator is exempt from legal procedures and laws of proof, but must
      rule according to the essential law of the State of Israel and justify his
      decision. Subject to any other decision of the Arbitrator in regard to
      expenses, the parties will split the Arbitrator’s fees and arbitration
      expenses in equal parts.

            

    

    
      	
            	
              12.4

            	
              The
      signing on this agreement is equal to the signing on the arbitration
      agreement, according to the rules of
  arbitration.

            

    

    
      	
            	
              12.5

            	
              Laws
      of the State of Israel apply to this agreement. Only the authorized court
      in Tel Aviv-Jaffa will have sole judicial authority in regard to this
      agreement.

            

    

    

    
      	
              13.

            	
              Violations and
      Relief

            

    

    

     

    
      	
            	
              13.1

            	
              Sections
      2, 3, 4, 5, 6, 7, and 9 of this agreement are fundamental sections and the
      violation thereof is considered a fundamental violation of this
      agreement.

            

    

    

    
      	
              14.

            	
              General

            

    

    

     

    
      	
            	
              14.1

            	
              Any
      change and/or correction and/or addition to this agreement will be valid
      only if made in writing and with the signing of all parties to the
      agreement.

            

    

    
      	
            	
              14.2

            	
              Any
      dispute or violation of any section in the agreement will not affect the
      upholding of other sections in the
agreement.

            

    

    
      	
            	
              14.3

            	
              This
      agreement exhausts all that agreed between the parties and any arrangement
      and/or promise and/or presentation and/or undertaking made between the
      parties, both orally and in writing, directly or indirectly, prior to this
      agreement, is hereby null and void. Drafts and other documents that were
      passed between the parties prior to the signing of this agreement will be
      considered as if never effected and will not be used in any way as proof
      or support for interpretation and/or suit and/or for any other
      purpose.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
            	
              14.4

            	
              The
      parties will work jointly, and perform any action required in a reasonable
      manner and will sign any required document in a reasonable manner, for the
      full implementation and upholding of all matters connected to, and
      involved with, the execution of this
deal.

            

    

    
      	
            	
              14.5

            	
              In
      any case where one party refrains from using any right awarded to him
      according to this agreement or by law, this will not be considered to be a
      waiver on his part of that right, and he is permitted to use his rights
      later. The violator may not claim any demands of postponement or
      waiver.

            

    

    
      	
            	
              14.6

            	
              The
      parties undertake to behave in a manner of loyalty and honesty to each
      other.

            

    

    
      	
            	
              14.7

            	
              The
      parties declare that they have read this agreement and have signed it of
      their own free will, after understanding the content, and each party is
      represented by a lawyer on his
behalf.

            

    

    
      	
            	
              14.8

            	
              Each
      party will bear his own expenses.

            

    

    
      	
            	
              14.9

            	
              The
      addresses of the parties for the purpose of this agreement are as detailed
      in the preamble to this agreement, or any other address in Israel of one
      of the parties, of which he has informed the other parties in
      writing.

            

    

    

    
      	
            	
               
      

            	
              Any
      notification sent from one party to the other according to the
      abovementioned addresses will be considered as arriving at their
      destination 72 hours after being deposited as registered mail at the post
      office, and 24 hours after been sent by electronic mail and/or facsimile,
      and if delivered by hand - at the time of
  delivery.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      In
witness whereof the parties have hereunto set their hand at the place and time
stated in the abovementioned title of this agreement:

    

    

    

    
      	 
      	 	
              HRT
      Ltd.

            	 	
              M.D.T.
      Protective Industries Ltd.

            
	
              Yossi
      Bar

            	 	
              By:
      Yossi
      Bar

              Name
      & position: CEO

            	 	
              By:
      Jonathan
      Whartman

              Name
      & position: CEO

            
	
              I,
      the undersigned, Yonatan Drori Adv., license no. 41931, hereby approve
      that this agreement was signed by Mr. Yossi Bar, Israeli Identity No.
      010621779, who I know personally.

              ­­­­­­­­­­­

            	 	
              I,
      the undersigned, Yonatan Drori Adv., license no. 41931, hereby approve
      that this agreement was signed by Mr. Yossi Bar, who is authorized by the
      company to sign on this agreement and be obligated on its behalf, and the
      company has made all required decision, by law, its fundamental documents
      and its valid decisions, to undertake this agreement,

            	 	
              I,
      the undersigned, Yaakov Har-Oz, Adv., license no. 16260, hereby approve
      that this agreement was signed by Mr. Jonathan Whartman, who is authorized
      by the company to sign on this agreement and be obligated on its behalf,
      and the company has made all required decision, by law, its fundamental
      documents and its valid decisions, to undertake this
      agreement.

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 
      	 	 
      	 	 
      
	Yonatan
      Drori, Adv.	 	
              Yonatan
      Drori, Adv.

            	 	
              Yaakov
      Har-Oz, Adv.

            
	 	 	 	 	 
	 
      	 	 
      	 	 
      
	
              Arotech
      Corporation

            	 	
              Electric
      Fuel (EFL) Ltd.

            	 	
              M.D.T.
      Armor Corporation

            
	
              By:
      Jonathan
      Whartman

              Name
      & position: Vice-CEO

            	 	
              By:
      Jonathan
      Whartman

              Name
      & position: CEO

            	 	
              By:
      Jonathan
      Whartman

              Name
      & position: Vice-CEO

            
	
              I,
      the undersigned, Yaakov Har-Oz, Adv., license no. 16260, hereby approve
      that this agreement was signed by Mr. Jonathan Whartman, who is authorized
      by the company to sign on this agreement and be obligated on its behalf,
      and the company has made all required decision, by law, its fundamental
      documents and its valid decisions, to undertake this
      agreement.­­­­­­­­­­

            	 	
              I,
      the undersigned, Yaakov Har-Oz, Adv., license no. 16260, hereby approve
      that this agreement was signed by Mr. Jonathan Whartman, who is authorized
      by the company to sign on this agreement and be obligated on its behalf,
      and the company has made all required decision, by law, its fundamental
      documents and its valid decisions, to undertake this
      agreement.­­­­­­­­

            	 	
              I,
      the undersigned, Yaakov Har-Oz, Adv., license no. 16260, hereby approve
      that this agreement was signed by Mr. Jonathan Whartman, who is authorized
      by the company to sign on this agreement and be obligated on its behalf,
      and the company has made all required decision, by law, its fundamental
      documents and its valid decisions, to undertake this
      agreement.­­­­­­­­­­­

            
	 	 	 	 	 
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	
              Yaakov
      Har-Oz, Adv

            	 	
              Yaakov
      Har-Oz, Adv.

            	 	
              Yaakov
      Har-Oz, Adv.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]