Document:

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                                                                    Exhibit 4.1

                            [TRANSLATED FROM HEBREW]

                            ELBIT MEDICAL IMAGING LTD

                                 ("THE COMPANY")

                   2001 INCENTIVE PLAN TO EMPLOYEE AND OFFICER

ON 4TH DECEMBER 2000 THE COMPANY'S BOARD OF DIRECTORS, AFTER OBTAINING APPROVAL
FROM THE COMPANY'S AUDIT COMMITTEE, RESOLVED TO ALLOT UP TO 550,000 ORDINARY
SHARES, PAR VALUE NIS 1 PER ORDINARY SHARE OF THE COMPANY (HEREINAFTER REFERRED
TO AS "THE SHARES OFFERED") TO THE OFFEREES DETAILED IN APPENDIX "A" TO THE PLAN
FOR THE REMUNERATION OF EMPLOYEES AND OFFICERS OF THE COMPANY, (HEREINAFTER
REFERRED TO AS "THE PLAN"). THE ALLOTMENT TO THE COMPANY'S DIRECTORS IN THE
SCOPE OF THE PLAN WAS ALSO APPROVED BY THE COMPANY'S GENERAL MEETING ON 21ST
FEBRUARY 2001.

1.       TERMS OF THE PRIVATE OFFERING

         1.1        The shares offered constitute approx. 2.40% of the voting
                    rights and of the issued and paid up capital of the Company
                    prior to the private offering and approx. 2.34% of the
                    voting rights and of the issued and paid up capital of the
                    Company after the private offering on full dilution.(1)

         1.2        The right to receive the shares offered is not transferable.

         1.3        The shares offered will not be allotted directly to the
                    offerees but to Prof. Joseph Gross, Hodek, Greenberg,
                    Trustees Ltd (hereinafter referred to as "the trustee"), as
                    trustee.

         1.4        The entitlement of each of the offerees to receive
                    possession from the trustee of the shares offered will
                    mature at one of the following times: (i) immediately; or
                    (ii) 50% after the expiration of one year from the date of
                    allotment and the remainder after the expiration of two
                    years from the date of allotment; or (iii) one-third after
                    the expiration of one year from the date of allotment,
                    another third after the expiration of two years from the
                    date of allotment and the remainder after the expiration of
                    three years from the date of allotment of the shares, as set
                    out in the table below (hereinafter referred to as "the
                    vesting period"). At the end of each year of the vesting
                    period applicable to each of the offerees, each offeree will
                    be entitled to obtain possession of a proportion of the
                    shares offered to him as set out below so that after the
                    whole of the vesting period applicable to the offeree, the

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(1)   See footnote 1 above.

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                    offeree will be entitled to obtain possession of the whole
                    quantity of shares offered to him, subject to the loan
                    repayment conditions, as provided in clause 1.6 below.

<TABLE>
<CAPTION>
                                                                                      Quantity of Shares
                                                                                      Released at End of
                    The Offeree                      The Vesting Period                    Each Year
                    -----------                      ------------------                    ---------
                   <S>                                      <C>                             <C>
                   Offerees A-B, I, J, S and V(2)       Three years                          33.33%

                   Offerees C-H, K-R, T-U, W-GG(3)       Two years                             50%

                   Offeree HH(4)                            ---                                ---
</TABLE>

         1.5        Conclusion of Labour Relationship

                    1.5.1       Save for the exceptions mentioned in clause
                                1.5.2 below, if before the end of the vesting
                                period the labour relationship between an
                                offeree and the company by which he is employed
                                on the date of this report comes to an end:

                                (a)      at the initiative of the offeree, save
                                         in the case of a deterioration in his
                                         terms of employment or the seniority of
                                         his position; or

                                (b)      at the initiative of that particular
                                         company in circumstances that do not
                                         entitle the offeree to receive
                                         severance pay in accordance with the
                                         law;

                                and in the event that an offeree who serves as a
                                company director stops serving as a company
                                director;

                                (a)      at the initiative of the offeree; or

                                (b)      at the initiative of the company in
                                         circumstances in which there are
                                         limitations to the director's service
                                         in accordance with the law, except if
                                         his office comes to

-----------------------
(2) The total quantity of shares offered to these offerees is 255,000.

(3) The total quantity of shares offered to these offerees is 278,500.

(4) The total quantity of shares offered to this offeree is 5,000.

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                                         an end in accordance with the law in
                                         the case of an external director;

                                the offeree's entitlement to the shares offered,
                                which have not yet vested, will lapse.

                    1.5.2       Notwithstanding as provided in clause 1.5.1
                                above, in the event of:

                                (a)      complete incapacity (as defined below)
                                         of the offeree; or

                                (b)      the offeree's death;

                                the offeree, or his heirs in the case of death,
                                will be entitled to receive all the shares that
                                had been allotted to the trustee for the offeree
                                immediately after the occurrence mentioned in
                                sub-clause (a) or (b) above, independently of
                                whether the vesting period applicable to the
                                offeree has or has not come to an end, subject
                                as provided in clause 1.4 above and subject to
                                full repayment of the loan, as set out in clause
                                1.6 below.

                                "Complete incapacity" shall be construed as a
                                stable physical and/or mental condition, lasting
                                for at least six months, caused as a result of
                                an illness or accident, which precludes any
                                engagement by the offeree in a profession and/or
                                occupation consistent with his previous
                                expertise, experience and standard of education.

                                Should the offeree go to work for another member
                                of the group of companies, for the purpose
                                hereof the offeree's term of employment with
                                such other company as aforesaid shall be treated
                                as a term of employment with the company by
                                which he is employed on the date of this report.

                                For the purpose of this clause, pensionable
                                retirement in accordance with the provisions of
                                law or contract shall not be deemed termination
                                of the labour relationship.

                    1.5.3       Notwithstanding as aforesaid, the Company's
                                board of directors or a committee on its behalf
                                may, in exceptional cases, in its sole
                                discretion and having regard to the individual
                                circumstances, order the trustee to transfer to
                                the offeree all or some of the shares held by it
                                for that offeree, his entitlement to receive
                                which has lapsed.

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                    1.5.4       In such event as mentioned in clause 1.5.1
                                above, the offeree shall be relieved of repaying
                                the balance of the loan obtained by the offeree
                                as provided in clause 1.6 below in respect of
                                the quantity of shares his entitlement to
                                receive which has lapsed, and the trustee shall
                                continue to hold those shares, the offeree's
                                entitlement to receive which has lapsed as
                                aforesaid, and deal with them on the
                                instructions of the Company's board of directors
                                or a committee on its behalf, which shall
                                instruct the trustee to act in one of the
                                following two ways:

                                (a)      to sell the said shares. The proceeds
                                         obtained on the sale of the shares as
                                         aforesaid shall be transferred by the
                                         trustee to the Company for the purpose
                                         of repaying the loan granted by the
                                         Company in respect of those shares;

                                (b)      to continue holding the shares for the
                                         benefit of future plans for the
                                         remuneration of employees and officers
                                         of the Company. In such event the
                                         trustee may not vote in respect of
                                         those shares.

         1.6        Grant of a Loan to Offerees

                    The Company shall grant a loan to each of the offerees for
                    the purpose of financing the purchase of the shares offered
                    in an amount equal to the total cost of the shares offered
                    to each offeree (hereinafter referred to as "the loan") on
                    the following conditions -

                    1.6.1       Loan Conditions

                                The loan shall be granted for a term of five
                                years and bear interest at the rate of 6% per
                                annum. VAT in respect of the interest on the
                                loan shall be paid by the Company. In addition,
                                if the offerees are charged tax, deriving from
                                the rate of interest on the loan, the tax shall
                                be paid by the Company.

                    1.6.2       Loan's Repayment

                                The principal and interest in respect of the
                                loan shall be returned at the end of five years
                                from the grant of the loan.

                    1.6.3       Loan Collateral

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                                So long as the shares offered are held by the
                                trustee for the offeree, the shares shall serve
                                as sole collateral for the loan granted to the
                                offeree, as provided in this clause 1.6, and the
                                Company shall have no right of recourse to the
                                offeree in respect of the loan.

                                Notwithstanding as aforesaid, each of the
                                offerees shall be entitled to require the
                                trustee, at any time, to transfer all or any of
                                the shares his right to obtain which has
                                matured, as provided in clause 1.4 above, to the
                                offeree and/or to sell them and transfer the
                                proceeds to the offeree and/or to transfer them
                                on his instructions, subject to fulfilment of
                                the following.

                                In such event, the offeree shall be liable to
                                place in an interest-bearing deposit in his name
                                an amount equal to the value of the loan
                                (principal and interest) at that time, in the
                                ratio between the quantity of shares that the
                                trustee is being asked to transfer and/or sell
                                and the total quantity of shares allotted for
                                the benefit of that offeree (hereinafter
                                referred to as "the loan part").

                                The said deposit shall serve as collateral for
                                the return of the loan part instead of the
                                shares transferred and/or sold as aforesaid and
                                the Company shall also have a right of recourse
                                to the offeree in respect of the loan part.

                    1.6.4       Instructions to the Trustee

                                Should the offeree not repay the loan or part
                                thereof at the time mentioned in clause 1.6.1
                                above, the offeree shall lose his entitlement to
                                receive the shares that are held by the trustee
                                for him or part thereof, as the case may be, and
                                the trustee shall hold the shares on trust for
                                the Company and act as provided in clause 1.5.4
                                above.

         1.7        Additional Rights

                    1.7.1       If the Company distributes bonus shares, the
                                date determining the distribution whereof and
                                the date of their distribution falling during
                                the period when the trustee holds shares for the
                                offerees, the Company shall transfer to the
                                trustee a quantity of bonus shares in accordance
                                with the quantity of shares held by it on trust
                                for the benefit of the offerees at the time of
                                the distribution. In the event that between the
                                date determining the distribution and the date
                                of

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                                distribution shares have been transferred from
                                the trustee to an offeree and/or sold by the
                                trustee pursuant to the offeree's instructions,
                                the bonus shares in respect of those shares
                                shall be transferred directly to the offeree.

                                The entitlement of each offeree to those bonus
                                shares shall mature in direct proportion to the
                                maturity of his right to the shares in
                                accordance with the vesting period applicable to
                                him, as defined in clause 1.4 above.

                                Bonus shares, the offeree's right to receive
                                which has not yet matured as aforesaid, shall be
                                subject to the same terms and conditions as
                                applying to the shares offered, the right to
                                receive which has not yet matured.

                    1.7.2       If the Company offers securities to all its
                                shareholders by way of rights, the date
                                determining the entitlement to receive the
                                rights and the date of allotment of the
                                securities falling during the period when the
                                trustee holds shares for the offerees, including
                                during the vesting period, the Company shall
                                allot the offeree, through the trustee, subject
                                to receiving appropriate notice exercising the
                                right and payment as required of the relevant
                                offeree, such securities as aforesaid in
                                accordance with the quantity of shares held by
                                the trustee for him.

                    1.7.3       If the Company distributes cash dividends the
                                date determining the distribution whereof
                                falling during the period when the shares are
                                held by the trustee for the offerees, including
                                during the vesting period, the Company shall
                                transfer to the trustee, for the offeree,
                                dividends in accordance with the quantity of
                                shares held for the benefit of that offeree by
                                the trustee after deducting tax at source in
                                accordance with the law, and the trustee shall
                                transfer such dividends as aforesaid to the
                                offerees regardless of whether their right to
                                receive the shares offered has matured.

         1.8        Voting Rights

                    Each of the offerees shall be entitled to vote in respect of
                    the shares his right to which has matured, as provided in
                    clause 1.4 above. For the performance of that act the
                    offeree shall apply to the trustee, which shall give the
                    offeree and/or such person as the offeree directs, a proxy
                    in respect of such shares as aforesaid for the purpose of
                    voting in respect of them in the Company's general meeting.

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                    The offeree may not vote in respect of the shares that are
                    held by the trustee for him, the right to receive which has
                    not yet matured. The voting right in respect of those shares
                    shall not be exercised by anyone.

2.       CONSIDERATION

         The purchase price of each share offered is an amount in new shekels
         equal to the closing price of the Company's shares on the Tel Aviv
         Stock Exchange on the last trading day prior to the date of allotment
         of the shares offered. The consideration shall be paid by means of a
         loan to be provided to the offerees by the Company as mentioned in
         clause 1.6 above.

3.       APPROVALS NECESSARY FOR THE PRIVATE OFFERING

         The private offering is subject to obtaining approval from the Tel Aviv
         Stock Exchange to list the shares offered for trade. In addition, the
         private offering to offerees A to G is subject to approval by the
         Company's shareholders' meeting. Those approvals have not yet been
         obtained. The Company expects the approval of the Tel Aviv Stock
         Exchange to be obtained before or shortly after approval by the
         Company's shareholders' meeting.

4.       TAX IMPLICATIONS OF THE COMPANY'S PRIVATE OFFERING

         The Company shall not bear any tax charged, if at all, in respect of
         the allotment of the shares offered to the offerees and their sale by
         the offerees to third parties. Stamp duty charged, insofar as charged,
         in respect of the allotment will be paid by the Company.

5.       RESTRICTIONS WITH RESPECT TO TRANSACTIONS IN THE SHARES OFFERED

         5.1        Lock-Up Arrangements In Accordance With Israeli Law

                    According to the provisions of the Securities Law, 5728-1968
                    (hereinafter referred to as the "Law") and the Securities
                    (Particulars with Regard to Sections 15A to 15C of the Law)
                    Regulations, 5760-2000, the following restrictions will
                    apply to the offerees in respect of the resale of the shares
                    offered -

                    5.1.1       In respect of each of the offerees A to G, the
                                following restrictions will apply -

                                An offer in the course of trading on the Stock
                                Exchange of the Company's shares that were
                                allotted by the Company to the offeree pursuant
                                to the private offering will be treated as an
                                offering to the public, within the meaning of
                                the Law:

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                                if a period of one year from the date of
                                allotment of the shares offered to that offeree
                                has not yet elapsed; or

                                if additional periods of eight successive
                                quarters have not elapsed, if either of the
                                following was fulfilled in them:

                                (a)      the quantity of shares that was offered
                                         by the offeree on any trading day on
                                         the Stock Exchange exceeded the daily
                                         average of the Stock Exchange trading
                                         turnover of the Company's shares in the
                                         eight week period preceding the date of
                                         the offer; or

                                (b)      the proportion of the issued and paid
                                         up share capital of the Company of the
                                         shares that were offered by the offeree
                                         exceeded 1% of the issued and paid up
                                         capital of the Company in any quarter.
                                         For the purpose hereof "issued and paid
                                         up capital" excludes shares that will
                                         derive from the exercise or conversion
                                         of convertible securities that were
                                         allotted by the date of the offer and
                                         not yet exercised or converted.

                    5.1.2       In respect of each of the offerees H to HH, the
                                following restrictions will apply -

                                An offer in the course of trading on the Stock
                                Exchange of the Company's shares that were
                                allotted by the Company to the offeree pursuant
                                to the private offering will be treated as an
                                offering to the public, within the meaning of
                                the Law:

                                if a period of three months from the date of
                                allotment of the shares offered to that offeree
                                has not yet elapsed; or

                                if additional periods of four successive
                                quarters have not elapsed, if either of the
                                following was fulfilled in them:

                                (a)      the quantity of shares that was offered
                                         by the offeree on any trading day on
                                         the Stock Exchange exceeded the daily
                                         average of the Stock Exchange trading
                                         turnover of the Company's shares in the
                                         eight week period preceding the date of
                                         the offer; or

                                (b)      the proportion of the issued and paid
                                         up share capital of the Company of the
                                         shares that were offered by the offeree
                                         exceeded 1% of the issued and paid up
                                         capital of the Company in any quarter.
                                         For the purpose

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                                         hereof "issued and paid up capital"
                                         excludes shares that will derive from
                                         the exercise or conversion of
                                         convertible securities that were
                                         allotted by the date of the offer and
                                         not yet exercised or converted.

         5.2        The provisions of clauses 5.1.1 and 5.1.2 above shall also
                    apply to the Company's shares that have been purchased
                    during such period or additional periods as aforesaid,
                    otherwise than pursuant to a prospectus and not in the
                    course of trading on the Stock Exchange, from the Company or
                    a corporation under the Company's control.

         5.3        Lock-Up Arrangements according to American Law

                    Assuming that the shares that are allotted to the offerees
                    in the context of the private offering are "restricted
                    securities", as defined in Rule 144 of the Securities Act of
                    1933 as amended (hereinafter referred to as "Rule 144"),
                    then the offerees can sell such restricted securities as
                    aforesaid to the public in the USA after the end of one year
                    from the date of the shares' allotment to the effect that in
                    any period of three months the quantity of restricted
                    securities that is sold shall not exceed the greater of:

                    (a)      1% of the Company's issued share capital; or

                    (b)      the Company's reported average weekly trading
                             volume on NASDAQ in the four weeks preceding notice
                             of the sale.

                    Notwithstanding as aforesaid, offerees who at the time of
                    the sale or in the three months preceding it are not
                    affiliates of the Company(5), can sell such restricted
                    securities as aforesaid to the public in the USA after a
                    period of two years from the date of the shares' allotment
                    or from the date of the shares' purchase by an affiliate of
                    the Company.

                    In addition, the offerees must act subject to further
                    requirements and restrictions applicable to the sale of
                    restricted securities by virtue of Rule 144, including
                    complying with requirements that relate to the method of
                    making the sale, the giving of notices of the sale and the
                    availability of up to date information in respect of the
                    Company.

6.       DATE OF ALLOTMENT OF THE SHARES OFFERED

-------------------
(5)   The definition of "affiliate" in Rule 144 is as follows: a person that
      controls, is controlled by, or is under common control with, a company.

                                       9
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         The date of making the allotment will be as soon as possible after
         obtaining all the necessary approvals as detailed in clause 3 above,
         including approval from the general meeting of the Company's
         shareholders.

7.       TRUST AGREEMENT

         The terms of the trust agreement for holding the shares offered that
         has been made between Prof. Joseph Gross, Hodek, Greenberg, Trustees
         Ltd as trustee and the Company are annexed hereto as appendix "B".

                                      * * *

                                       10
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                   FIRST AMENDMENT TO THE 2001 INCENTIVE PLAN
                       TO EMPLOYEES AND OFFICERS OF ELBIT
                              MEDICAL IMAGING LTD.

                                 March 29, 2004

The number of shares subject to the Employees and Officers Remuneration Plan
("Plan") is increased by 34,500 ordinary shares of Elbit Medical Imaging Ltd.,
par value 1 NIS per ordinary share, so that the total number of shares under the
plan shall be 584,000 ordinary shares of Elbit Medical Imaging Ltd., par value 1
NIS per ordinary share.

                                       11<PAGE>

                                                                     Exhibit 4.1

                            [TRANSLATED FROM HEBREW]

                                 ELSCINT LIMITED

                                 ("THE COMPANY")

                  2001 INCENTIVE PLAN TO EMPLOYEES AND OFFICERS

ON 1ST AUGUST 2001 THE COMPANY'S BOARD OF DIRECTORS, AFTER OBTAINING APPROVAL
FROM THE COMPANY'S AUDIT COMMITTEE, RESOLVED TO ALLOT UP TO 850,000 ORDINARY
SHARES, PAR VALUE NIS 0.05 PER ORDINARY SHARE OF THE COMPANY (HEREINAFTER
REFERRED TO AS "THE SHARES OFFERED") TO THE OFFEREES DETAILED IN APPENDIX "A" TO
THE PLAN FOR THE REMUNERATION OF EMPLOYEES AND OFFICERS OF THE COMPANY,
SUBSIDIARIES OF THE COMPANY, EUROPE ISRAEL (MMS) LTD. AND COMPANIES UNDER ITS
CONTROL (HEREINAFTER REFERRED TO AS "THE COMPANY GROUP" AND "THE PLAN"
RESPECTIVELY). THE TERMS AND CONDITIONS OF THE PLAN AND THE ALLOTMENT TO THE
OFFEREES DETAILED IN APPENDIX "A" OBTAINED THE COMPANY'S GENERAL MEETING'S
APPROVAL ON 18TH OCTOBER 2001.

1.       TERMS OF THE PRIVATE OFFERING

         1.1        The right to receive the shares offered is not transferable.

         1.2        The shares offered will not be allotted directly to the
                    offerees but to Prof. Joseph Gross, Hodek, Greenberg,
                    Trustees Ltd (hereinafter referred to as "the trustee"), as
                    trustee.

         1.3        The entitlement of each of the offerees to receive
                    possession from the trustee of the shares offered will
                    mature at one of the following times: (i) 50% after the
                    expiration of one year from the date of allotment and the
                    remainder after the expiration of two years from the date of
                    allotment; or (ii) one-third after the expiration of one
                    year from the date of allotment, another third after the
                    expiration of two years from the date of allotment and the
                    remainder after the expiration of three years from the date
                    of allotment of the shares, as set out in the table below
                    (hereinafter referred to as "the vesting period"). At the
                    end of each year of the vesting period applicable to each of
                    the offerees, each offeree will be entitled to obtain
                    possession of a proportion of the shares offered to him as
                    set out below so that after the whole of the vesting period
                    applicable to the offeree, the offeree will be entitled to
                    obtain possession of the whole quantity of shares offered to
                    him, subject to the loan repayment conditions, as provided
                    in clause 1.5 below.

<PAGE>

                                                              Quantity of Shares
                                               The Vesting    Released at End of
                   The Offeree                    Period           Each Year
                   -----------                 -----------         ---------

                   Offerees 1-3, 10,
                   13-16, 19, 21, 22, 24(1)    Three years          33.33%

                   Offerees 4-9, 11, 12,
                   17, 18, 20, 23, 25-27(2)    Two years             50%

                   The offeree's entitlement to the shares offered in
                   accordance with the vesting periods is conditional upon the
                   offeree's continuing to work for a member of the Company
                   group.

         1.4       Conclusion of Labour Relationship

                   1.4.1        Save for the exceptions mentioned in clause
                                1.4.2 below, if before the end of the vesting
                                period the labour relationship between an
                                offeree and the company by which he is employed
                                on the date of this plan comes to an end:

                                (a)      at the initiative of the offeree, save
                                         in the case of a deterioration in his
                                         terms of employment or the seniority of
                                         his position; or

                                (b)      at the initiative of that particular
                                         company in circumstances that do not
                                         entitle the offeree to receive
                                         severance pay in accordance with the
                                         law;

                                and in the event that an offeree who serves as a
                                company director stops serving as a company
                                director;

                                (a)      at the initiative of the offeree; or

                                (b)      at the initiative of the company in
                                         circumstances in which there are
                                         limitations to the director's service
                                         in accordance with the law, except if
                                         his office comes to an end in
                                         accordance with the law in the case of
                                         an external director;

                                the offeree's entitlement to the shares offered,
                                his right to receive which had not at that time
                                yet matured, will lapse.

--------
(1)  The total quantity of shares offered to these offerees is 422,500.

(2)  The total quantity of shares offered to these offerees is 355,000.

                                                                               2

<PAGE>

                    1.4.2       Notwithstanding as provided in clause 1.4.1
                                above, in the event of:

                                (a)      complete incapacity (as defined below)
                                         of the offeree; or

                                (b)      the offeree's death;

                                the offeree, or his heirs in the case of death,
                                will be entitled to receive all the shares that
                                had been allotted to the trustee for the offeree
                                immediately after the occurrence mentioned in
                                sub-clause (a) or (b) above, independently of
                                whether the vesting period applicable to the
                                offeree has or has not come to an end, subject
                                as provided in clause 1.3 above and subject to
                                full repayment of the loan, as set out in clause
                                1.5 below.

                                "Complete incapacity" shall be construed as a
                                stable physical and/or mental condition, lasting
                                for at least six months, caused as a result of
                                an illness or accident, which precludes any
                                engagement by the offeree in a profession and/or
                                occupation consistent with his previous
                                expertise, experience and standard of education.

                                Should the offeree go to work for another member
                                of the Company group, for the purpose hereof the
                                offeree's term of employment with such other
                                company as aforesaid shall be treated as a term
                                of employment with the company by which he is
                                employed on the date of this plan.

                                For the purpose of this clause, pensionable
                                retirement in accordance with the provisions of
                                law or contract shall not be deemed termination
                                of the labour relationship.

                    1.4.3       Notwithstanding as aforesaid, the Company's
                                board of directors or a committee on its behalf
                                may, in exceptional cases, in its sole
                                discretion and having regard to the individual
                                circumstances, order the trustee to transfer to
                                the offeree all or some of the shares held by it
                                for that offeree, his entitlement to receive
                                which has lapsed.

                    1.4.4       In such event as mentioned in clause 1.4.1
                                above, the offeree shall be relieved of repaying
                                the balance of the loan obtained by the offeree
                                as provided in clause 1.5 below in respect of
                                the quantity of shares his entitlement to
                                receive which has lapsed, and the trustee shall
                                continue to hold those shares, the offeree's
                                entitlement to receive which has

                                                                               3
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                                lapsed as aforesaid, and deal with them on the
                                instructions of the Company's board of directors
                                or a committee on its behalf, which shall
                                instruct the trustee to act in one of the
                                following two ways:

                                (a)      to sell the said shares. The proceeds
                                         obtained on the sale of the shares as
                                         aforesaid shall be transferred by the
                                         trustee to the Company for the purpose
                                         of repaying the loan granted by the
                                         Company in respect of those shares;

                                (b)      to continue holding the shares for the
                                         benefit of future plans for the
                                         remuneration of employees and officers
                                         of the Company. In such event the
                                         trustee may not vote in respect of
                                         those shares.

         1.5        Grant of a Loan to Offerees

                    The Company shall grant a loan to each of the offerees for
                    the purpose of financing the purchase of the shares offered
                    in an amount equal to the total cost of the shares offered
                    to each offeree (hereinafter referred to as "the loan") on
                    the following conditions -

                    1.5.1       Loan Conditions

                                The loan shall be granted for a term of five
                                years and bear interest at the rate of 6% per
                                annum. VAT in respect of the interest on the
                                loan shall be paid by the Company. In addition,
                                if the offerees are charged tax, deriving from
                                the rate of interest on the loan, the tax shall
                                be paid by the Company.

                    1.5.2       Loan's Repayment

                                The principal and interest in respect of the
                                loan shall be returned at the end of five years
                                from the grant of the loan.

                    1.5.3       Loan Collateral

                                So long as the shares offered are held by the
                                trustee for the offeree, the shares shall serve
                                as sole collateral for the loan granted to the
                                offeree, as provided in this clause 1.5, and the
                                Company shall have no right of recourse to the
                                offeree in respect of the loan.

                                                                               4
<PAGE>

                                Notwithstanding as aforesaid, each of the
                                offerees shall be entitled to require the
                                trustee, at any time, to transfer all or any of
                                the shares that have vested, as provided in
                                clause 1.3 above, to the offeree and/or to sell
                                them and transfer the proceeds to the offeree
                                and/or to transfer them on his instructions,
                                subject to fulfilment of the following.

                                In such event, the offeree shall deposit in an
                                interest-bearing account in his name an amount
                                equal to the value of the loan (principals and
                                interests) at that time, in the ratio between
                                the quantity of shares that the trustee is being
                                asked to transfer and/or sell and the total
                                quantity of shares allotted for the benefit of
                                that offeree (hereinafter referred to as "the
                                loan part").

                                The said deposit shall serve as collateral for
                                the return of the loan part instead of the
                                shares transferred and/or sold as aforesaid and
                                the Company shall also have a right of recourse
                                to the offeree in respect of the loan part.

                    1.5.4       Instructions to the Trustee

                                Should the offeree not repay the loan or part
                                thereof at the time mentioned in clause 1.5.1
                                above, the offeree shall lose his entitlement to
                                receive the shares that are held by the trustee
                                for him or part thereof, as the case may be, and
                                the trustee shall hold the shares on trust for
                                the Company and act as provided in clause 1.4.4
                                above.

         1.6        Additional Rights

                    1.6.1       If the Company distributes bonus shares, the
                                date determining the distribution whereof and
                                the date of their distribution falling during
                                the period when the trustee holds shares for the
                                offerees, the Company shall transfer to the
                                trustee a quantity of bonus shares in accordance
                                with the quantity of shares held by it on trust
                                for the benefit of the offerees at the time of
                                the distribution. In the event that between the
                                date determining the distribution and the date
                                of distribution shares have been transferred
                                from the trustee to an offeree and/or sold by
                                the trustee pursuant to the offeree's
                                instructions, the bonus shares in respect of
                                those shares shall be transferred directly to
                                the offeree.

                                                                               5
<PAGE>

                                The entitlement of each offeree to those bonus
                                shares shall mature in direct proportion to the
                                maturity of his right to the shares in
                                accordance with the vesting period applicable to
                                him, as defined in clause 1.3 above.

                                Bonus shares, the offeree's right to receive
                                which has not yet matured as aforesaid, shall be
                                subject to the same terms and conditions as
                                applying to the shares offered, the right to
                                receive which has not yet matured.

                    1.6.2       If the Company offers securities to all its
                                shareholders by way of rights, the date
                                determining the entitlement to receive the
                                rights and the date of allotment of the
                                securities falling during the period when the
                                trustee holds shares for the offerees, including
                                during the vesting period, the Company shall
                                allot the offeree, through the trustee, subject
                                to receiving appropriate notice exercising the
                                right and payment as required of the relevant
                                offeree, such securities as aforesaid in
                                accordance with the quantity of shares held by
                                the trustee for him.

                    1.6.3       If the Company distributes cash dividends the
                                date determining the distribution whereof
                                falling during the period when the shares are
                                held by the trustee for the offerees, including
                                during the vesting period, the Company shall
                                transfer to the trustee, for the offeree,
                                dividends in accordance with the quantity of
                                shares held for the benefit of that offeree by
                                the trustee after deducting tax at source in
                                accordance with the law, and the trustee shall
                                transfer such dividends as aforesaid to the
                                offerees regardless of whether their right to
                                receive the shares offered has matured.

         1.7        Voting Rights

                    Each of the offerees shall be entitled to vote in respect of
                    the shares his right to which has matured, as provided in
                    clause 1.3 above. For the performance of that act the
                    offeree shall apply to the trustee, which shall give the
                    offeree and/or such person as the offeree directs, a proxy
                    in respect of such shares as aforesaid for the purpose of
                    voting in respect of them in the Company's general meeting.

                    The offeree may not vote in respect of the shares that are
                    held by the trustee for him, the right to receive which has
                    not yet matured. The voting right in respect of those shares
                    shall not be exercised by anyone.

                                                                               6
<PAGE>

2.       CONSIDERATION

         The purchase price of each share offered is an amount equal to the
         closing price of the Company's shares on the New York Stock Exchange on
         the last trading day prior to the date of allotment of the shares
         offered. The consideration shall be paid by means of a loan to be
         provided to the offerees by the Company as mentioned in clause 1.5
         above.

3.       TAX IMPLICATIONS OF THE COMPANY'S PRIVATE OFFERING

         The Company shall not bear any tax charged, if at all, in respect of
         the allotment of the shares offered to the offerees and their sale by
         the offerees to third parties. Stamp duty charged, insofar as charged,
         in respect of the allotment will be paid by the Company.

4.       LOCK-UP ARRANGEMENTS ACCORDING TO AMERICAN LAW

         Assuming that the shares that are allotted to the offerees in the
         context of the private offering are "restricted securities", as defined
         in Rule 144 of the Securities Act of 1933 as amended (hereinafter
         referred to as "Rule 144"), then the offerees can sell such restricted
         securities as aforesaid to the public in the USA after the end of one
         year from the date of the shares' allotment to the effect that in any
         period of three months the quantity of restricted securities that is
         sold shall not exceed the greater of:

         (a)      1% of the Company's issued share capital; or

         (b)      the Company's reported average weekly trading volume on the
                  New York Stock Exchange in the four weeks preceding notice of
                  the sale.

         Notwithstanding as aforesaid, offerees who at the time of the sale or
         in the three months preceding it are not affiliates of the Company(3),
         can sell such restricted securities as aforesaid to the public in the
         USA after a period of two years from the date of the shares' allotment
         or from the date of the shares' purchase by an affiliate of the
         Company.

         In addition, the offerees must act subject to further requirements and
         restrictions applicable to the sale of restricted securities by virtue
         of Rule 144, including complying with requirements that relate to the
         method of making the sale, the giving of notices of the sale and the
         availability of up to date information in respect of the Company.

         It should be noted that since the shares offered to the offerees in the
         scope of the private offering are not construed as "restricted
         securities" according to the

----------
(3)  The definition of "affiliate" in Rule 144 is as follows: a person that
     controls, is controlled by, or is under common control with, a company.

                                                                               7
<PAGE>

         Rule 144 definition, the shares offered will be locked-up so long as
         registration of the shares on the New York Stock Exchange has not been
         effected.

5.       BOARD OF DIRECTORS' DISCRETION

         The Company's board of directors has full discretion to manage the
         plan, to make resolutions in connection with the plan and to make
         changes to it, as it deems fit.

6.       TRUST AGREEMENT

         The terms of the trust agreement for holding the shares offered that
         was made between Prof. Joseph Gross, Hodek, Greenberg, Trustees Ltd as
         trustee and the Company on 11th November 2001 are annexed hereto as
         appendix "B".

                                      * * *

                                                                               8

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