Document:

F-4/A

Exhibit 10.4  

LOAN AGREEMENT  

        THIS
LOAN AGREEMENT (this “Agreement”) is made as of the 11 day of October,
2005, by and among Negevtech Ltd., an Israeli company number 51-163426-3, of 12 Hamada
Street, P.O. Box 2264, Rehovot 76122, Israel (the “Company”), Plenus II
L.P., an Israeli limited partnership number 55021817-6 (“Plenus”) and
Plenus II (D.C.M.), Limited Partnership, an Israeli limited partnership number
55-021825-9, both of 16 Abba Eben Avenues, Herzeliya Pituach 46726, Israel
(each of Plenus and Plenus II (D.C.M.), Limited Partnership – a
“Lender”, and collectively – the “Lenders”). 

W I T N E S S E T H: 

        WHEREAS,
the Company wishes to borrow money from the Lenders on the terms and conditions set forth
in this Agreement; and 

        WHEREAS,
 the Lenders  are  willing to lend money to the Company on the terms and  conditions set
forth in this Agreement; 

        NOW
THEREFORE, the parties hereto hereby agree as follows: 

         1.       
          Loan, Warrant and Security. 

    1.1        The
Loan Amount. The Lenders will lend to the Company, and the Company will borrow from
the Lenders, an aggregate amount of ten million dollars ($10,000,000) (the “Loan”).  

    1.2        Disbursement.
The Loan shall be provided to the Company in installments ("Installments"),
as follows:  

	 	— 	the
first Installment in an amount of four million and five hundred thousand dollars
($4,500,000) shall be provided to the Company (or to Plenus Technologies Ltd., if so
instructed in writing by the Company) on October 11, 2005, or such other date as shall be
agreed by the parties hereto (the “Closing  Date”); 

	 	— 	an
additional aggregate amount of up to five million and five hundred thousand dollars
($5,500,000) shall be payable to the Company’s order (‘Line of Credit’)
and provided in installments of not less than two hundred and fifty thousand dollars
($250,000) each, each installment upon the later of: (i) seven (7) business days
following the date on which Plenus receives a written disbursement request from the
Company stating the exact amount the Company wishes to receive from the Lenders (the
“Disbursement Request”), or (ii) the disbursement date specified (if
specified) in the Disbursement Request; provided, however, that such
disbursement date must always be before the first anniversary of the Closing Date; 

	 	— 	the
balance, if any, between the Loan and the amounts extended to the Company pursuant to the
previous two paragraphs, shall be provided to the Company in one installment on the first
anniversary of the Closing Date. 

Each Installment shall be transferred
by the Lenders to the Company by means of wire transfer in accordance with wire
instructions to be provided in writing to Plenus by the Company from time to time, or, if
no other instructions are given, to: 

		
		
		
		
		
	 	Negevtech Ltd. 
	 	Account no.: 222200/29
	 	Bank: Bank Leumi Le-Israel. B.M.
	 	Branch No: 978
	 	Account Name: Negevtech Ltd.
	 	Address: 10 Plaut St., Rehovot

The Company agrees that each
Installment to be provided to the Company hereunder will be divided between the Lenders to
reflect the pro rata portion of the Loan which each Lender has committed to lend to the
Company as set forth in Schedule 1 attached hereto or as may
otherwise be agreed between the Lenders and notified in writing to the Company, provided
that in any event the Company shall receive the aggregate total amount of each
Installment. 

     1.3        Delivery
of Documents. On or prior to the Closing Date, the Company shall deliver to Plenus
the following documents: (i) a warrant, in the form attached hereto as Exhibit A (the
“Warrant”), in the name of Plenus Technologies Ltd., for the purchase of
Warrant Shares (as defined in the Warrant) in accordance with the terms of the Warrant,
duly executed by the Company; (ii) a Floating Charge Agreement (the “FloatingCharge
Agreement”) and a Fixed Charge Agreement (the “Fixed ChargeAgreement”)
by and among the Lenders, the Co-lenders (as defined below) and the Company, in the forms
attached hereto as Exhibit B1 and Exhibit B2,
respectively, duly executed by the Company and stamped to indicate filing with the
Israeli Registrar of Companies; (iii) copies of forms for creating a floating charge (as
per Exhibit C1) and a fixed charge (as per Exhibit C2),
both duly signed by the Company; (iv) true and correct copies of resolutions of the
Company’s Board of Directors (a) authorizing the Company to enter into this
Agreement, the Floating Charge Agreement and the Fixed Charge Agreement, (b) authorizing
the issuance of the Warrant to Plenus Technologies Ltd. and reserving a sufficient number
of Preferred Shares BB-1 to be issued upon exercise of the Warrant, and (c) authorizing
an officer of the Company to execute and deliver all of such documents and their
respective exhibits and schedules; (v) waivers, consents and approvals, to the extent
required, in respect of the transactions contemplated hereby, including, but not limited
to, regarding pre-emptive rights, registration rights and other rights of third parties,
including, without limitation, creditors and governmental entities, if applicable; (vi)
legal opinion by counsel to the Company, in the form attached hereto as Exhibit D;
(vii) true and correct copies of resolutions of the Company’s shareholders
authorizing the Company to enter into the transactions contemplated hereby; (viii) Bank
Leumi’s written consent for: (a) registration of the fixed charge and floating
charge as further described in the Fixed Charge Agreement and Floating Charge Agreement;
and (b) registration of (A) the floating charge described in the Floating Charge
Agreement pari passu with Bank Leumi’s general first degree floating charge;
and (B) the fixed charge described in the Fixed Charge Agreement pari passu with
the Bank Leumi’s fixed charge over the Company’s intellectual property, and
(ix) an officer’s certificate in the form attached hereto as Exhibit E.
The obligation of the Lenders to extend the Loan to the Company shall also be subject to
the repayment of the US$4,500,000 loan extended to the Company pursuant to the Loan
Agreement, dated as of January 14, 2005, between the Company, as a borrower, and Plenus
Technologies Ltd. as a lender (the “January Loan”), on or before the
Closing Date. It is agreed, however, that the Company may, by written notice to Plenus on
or before the Closing Date, use the first Installment of the Loan to repay the January
Loan. At the Closing and as a condition thereto, concurrently with the repayment of the
January Loan, Plenus shall provide the Company with Plenus Technologies Ltd.‘s
confirmation in writing (i) that the January Loan has been repaid in full and (ii) that
any and all charges registered in connection with the January Loan may be released in a
form satisfactory to the Companies Registrar for the removal of all charges over the
Company’s assets registered in connection with the January Loan, simultaneously with
the registration of the charges hereunder.  

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Without detracting from the
Company’s obligation to timely furnish Plenus with all of the documents set forth
above, the obligations of the Lenders pursuant hereto shall be subject to receipt of all
of such documents (any of which may be waived in whole or in part by Plenus), and the
Lenders shall have the right to terminate this Agreement by written notice to the Company
should the Company breach its obligation to furnish any of the said documents within the
specified period. 

     1.4        Security.
The Company shall secure the repayment of any amount borrowed hereunder (the “Principal Amount”),
any accrued and unpaid Interest (as defined below), the Credit Line Fee (as defined
below) and any other amount due to the Lenders hereunder or in connection herewith, by
creating (a) a first ranking floating charge on the Company’s present and future
tangible and intangible assets and rights of any kind, whether contingent or absolute, as
more fully set forth in the Floating Charge Agreement, pari passu with Bank Leumi’s
floating charge and subject to Bank Leumi’s pledges over a deposit in the amount of
US$ 1,000,000 created in connection with a certain loan given by Bank Leumi for the
purchase of a certain electronic microscope (SEMIVISION) (the “Microscope”),
and (b) a first ranking fixed charge on the Company’s technology, as more fully set
forth in the Fixed Charge Agreement, pari passu with Bank Leumi’s fixed charge over
the Company’s intellectual property, for the benefit of the Lender and the entities
specified as co-lenders in Schedule 1 hereto (the “Co-lenders”).  

        The
Lenders hereby acknowledge that the security interest in the Company’s intellectual
property which constitutes “know-how” under the Encouragement of Industrial
Research and Development Law, 5733-1984 (“the Encouragement Law”) (such
know-how, “Grant Funded Know-How”) is subject to the Chief
Scientist’s Rights (as hereinafter defined). In addition, the Lenders hereby
acknowledge that any realization of Grant Funded Know-How, including the sale of the Grant
Funded Know-How and its transfer within the framework of realization procedures will
require the approval of the Research Committee (as hereinafter defined). Likewise, any
transfer of said Grant Funded Know-How will be conditional upon the potential buyer or
transferee undertaking to assume the obligations in accordance with the Encouragement Law
including Section 19(c) thereof and in accordance with the terms of the program pursuant
with which grants were provided to the Company including the obligation: (i) not to
transfer the Grant Funded Know-How to another unless the Research Committee approves the
transaction; (ii) to pay royalties. 

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        In
this Agreement, the “Chief Scientist Rights” shall mean all the rights, powers
and privileges of the Ministry of Industry and Trade’s Industrial Research and
Development Committee (the “Research Committee”) by virtue of the
Encouragement Law and/or of an instrument of approval granted by the Chief Scientist of
the Israel Ministry of Industry, Trade and Employment, pursuant to his powers under the
Encouragement Law. 

     1.5        Seniority.
The indebtedness evidenced by this Agreement is hereby expressly stated to be senior in
right of payment to any current or future indebtedness of the Company (whether reflected
on the balance sheet or not), except for (i) the indebtedness incurred by the Company in
its ordinary course of business, and (ii) the repayment of US$ 1,500,000 borrowed by the
Company from Bank Leumi (the outstanding amount of the Microscope loan).  

     1.6        Term
of Loan. The term of the Loan (the “Term”) will commence on the
Closing Date (subject to the Installments specified in Section 1.2 hereto) and will
terminate thirty six (36) months following the Closing Date, unless this Agreement is
earlier terminated or repayment is accelerated in accordance with this Agreement.  

         2.       
          Payments. 

     2.1        Principal
Amount. The outstanding and unpaid Principal Amount shall be due and payable, in
one payment, on the expiration date of the Term.  

     2.2        Interest
on Principal. The Principal Amount outstanding from time to time (denominated in
dollars) shall bear interest at an annual rate (calculated on a 360 day year for the
actual number of days elapsed) of LIBOR + 4% (four percent), from the disbursement date
of the Principal Amount until the first anniversary of the Closing Date, and at an annual
rate (calculated on a 360 day year for the actual number of days elapsed and compounded
annually) of LIBOR + 4.5% (four and one-half percent), from the first anniversary of the
Closing Date until the date of actual repayment of the Principal Amount ,in each case
– plus value added tax (“VAT”), if applicable (such interest
together with the VAT – the “Interest”). The Interest accrued in
each calendar quarter during the Term shall become due and payable on the first day of
the next ensuing calendar quarter, except for the Interest accrued during the quarter in
which the Principal Amount is due and payable, which Interest shall be due and payable on
the due date of the Principal Amount.  

     2.3        Interest
on Late Payment. Any amount owing by the Company to the Lenders hereunder which is
not paid by the Company on its due date, shall bear an additional five percent (5%)
interest per annum, plus VAT if applicable; which additional interest shall be compounded
daily.  

     2.4        Credit
Line Fee. The Company shall pay to the Lenders, on the first anniversary of the
Closing Date, a fee equal to one and one-half percent (1.5%) (calculated on a 360 day
year for the actual number of days elapsed) of the amount of the Loan which was not drawn
by the Company throughout the 12-month period ending on such anniversary date, plus VAT
if applicable (the “Credit Line Fee”). For the purpose of the Credit
Line Fee, any amount borrowed and repaid during such 12-month period shall be taken into
account as partially utilized, based on the number of days it was outstanding.  

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     2.5        Division
of Payments. Unless and until otherwise notified by Plenus to the Company in writing,
all payments payable by the Company to the Lenders hereunder shall be divided between the
Lenders in amounts which reflect their pro rata lending to the Company as set forth in
Schedule I and shall be made to the following account: – Plenus II, L.P. account
number 233400-61 with Bank Leumi, Branch No. 864 (Business Herzelia Branch), located at
11 Galgaley Haplada St., Herzelia (Swift Code: LUMIILITTLV).  

     2.6        Prepayment. The
Company may, at any time, prepay any amounts owed to the Lenders, without penalty or
premium, by providing Plenus with at least thirty (30) days prior written notice
indicating its intention to do so and specifying therein the date and the amount of such
prepayment. A notice of prepayment may not be withdrawn or cancelled by the Company
without Plenus’s written consent. Without derogating from the generality of the
aforesaid, it is clarifies that any Installment disbursed during the first 12-month
period pursuant to a Disbursement Request may be repaid and then borrowed again, in whole
or in part, during such period.  

     2.7        Early
Termination. The Company may terminate this Agreement, prospectively, at any time
before the expiration of the Term, by providing Plenus with at least thirty (30) days
prior written notice indicating its intention to do so and specifying the early
termination date, in the form attached hereto as Exhibit F, provided that
(i) upon delivery of such notice and on such early termination date the Company is not in
default under this Agreement, the Floating Charge Agreement, the Fixed Charge Agreement
or the Warrant (together, the “Transaction Documents”), and (ii) on the
date of such early termination, all amounts due from the Company pursuant to the
Transaction Documents, on account of the Principal Amount, the Interest, late payment
interest, if applicable, Credit Line Fee or otherwise, shall have been paid in full and
the Company shall not have any outstanding debts to the Lenders pursuant to, or in
connection with, the Transaction Documents.  

     2.8        Set-off.
The Lenders may set-off any obligation owed to them by the Company under the Transaction
Documents against any obligation (whether or not due and payable) owed by the Lenders to
the Company, regardless of the place of payment, booking branch or currency of either
obligation, upon giving the Company a written notice to this effect. If an obligation is
not liquidated or is unascertained, the Lenders may set-off in an amount estimated by it
in good faith to be the amount of that obligation, provided that in case the
actual amount owed by the Company turns out to be lower than the amount estimated by the
Lenders, the Lenders shall return the difference to the Company. If obligations are in
different currencies, the Lenders may convert either obligation at a market rate of
exchange in their usual course of business for the purpose of the set-off. The Lenders
shall not be obliged to exercise any right given to them under this Section 2.8. In the
event that the foregoing set-off is made by the Lenders, any amounts set-off will be
deemed to be payment as described in Section 2 above. The Company may not set-off
any obligation owed to it by the Lenders against any obligation it owes to the Lenders
under the Transaction Documents.  

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         3.       
          Acceleration. 

        Notwithstanding
anything herein to the contrary, the entire unpaid Principal Amount, together with accrued
and unpaid Interest to date, shall be due and payable at any time without any further
demand, immediately upon the occurrence of any of the events described below
(“Event of Acceleration”), unless otherwise provided herein: 

          		    (i)       
               the Company fails to pay any sum due from it under this Agreement at the time,
               in the currency and in the manner specified herein, or is otherwise in breach of
               any of the Transaction Documents, and the same is not remedied within three (3)
               days, in case of non-payment, seven (7) days in case of a material breach, or
               fourteen (14) days in case of any other breach, from written notice by Plenus to
               the Company of the occurrence and nature of such non-payment or breach; or 

               

          		    (ii)       
               the Company admits, or indicates in writing, its inability to pay its debts as
               they fall due, commences negotiations with one or more of its creditors with a
               view to a general readjustment or rescheduling or another arrangement regarding
               its indebtedness, pursuant to Section 350 to the Israeli Companies Law, 1999
               (the “Companies Law”) or otherwise; or makes a general
               assignment for the benefit of, or a composition with, its creditors pursuant to
               Section 350 to the Companies Law or otherwise; or 

               

          		    (iii)       
               any indebtedness of the Company to a third party for borrowed money in the
               amount of more than $150,000 is not paid when due; or any indebtedness of the
               Company to a third party for borrowed money in the amount of more than $150,000
               becomes capable of being declared by such third party to be, or is declared, due
               and payable prior to its specified maturity; or any commitment of a third party
               to lend to the Company, or to make any credit facility available to the Company,
               in the amount of more than $150,000 is cancelled by such third party; or 

               

          		    (iv)       
               the adoption of a resolution by the Company to voluntarily liquidate; the filing
               by or against the Company of any petition in liquidation or any petition for
               relief under the provisions of applicable law for the relief of debtors; or the
               appointment of a special manager, temporary liquidator, temporary receiver or
               trustee to take possession of any material assets of the Company; or the
               placement of attachment on any of the material assets of the Company;
               provided, however, that if such filing, appointment or placement
               were instigated without the Company’s consent, it shall be deemed an Event
               of Acceleration only if not cancelled, removed or stayed within thirty (30)
               days; or the adoption of a resolution by the Company to voluntarily liquidate;
               or 

               

          		    (v)       
               any representation or statement made by the Company in any of the Transaction
               Documents, certificate or written statement delivered by it pursuant thereto,
               is, or proves to have been, incorrect or misleading in any material respect; or 

               

          		    (vi)       
               any event or series of events occur(s) which, in the commercially reasonable
               opinion of Plenus, may have a material adverse effect on the business, condition
               (financial or otherwise), or results of operations of the Company or on the
               ability of the Company to comply with any of its material obligations under any
               of the Transaction Documents; provided, however, that if in
               Plenus’ opinion, actions taken by the Company may annul such adverse
               effect, Plenus shall notify the Company and allow it to take such actions within
               a period of time determined exclusively by Plenus and specified in said notice;
               or 

               

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          		    (vii)       
               the Company fails to comply with any of the financial covenants set forth in
               Exhibit G attached hereto; or 

               

          		    (viii)       
               the Company (a) consummates a consolidation or merger of the Company with or
               into another entity, pursuant to which or as a result thereof, the
               Company’s current shareholders will own less than fifty percent (50%) in
               the aggregate of the voting securities of the Company, the new entity or the
               surviving entity (as the case may be) or they will no longer have the power or
               the right to appoint more than fifty percent (50%) of the members of the board
               of directors of such entity; (b) consummates (i) issuance or sale of shares of
               the Company constituting immediately thereafter more than fifty percent (50%) of
               the Company’s outstanding shares (on a fully diluted and as-converted
               basis) to third parties other than the Company’s current shareholders, or
               (ii) sale of a material part of the Company’s assets; (c) consummates an
               initial public offering of any of the Company’s securities, or (d)
               consummates an investment, or series of related investments, in the Company
               resulting in proceeds to the Company in an aggregate amount of at least forty
               million dollars ($40,000,000). 

               

        The
Company shall promptly inform Plenus in writing of the occurrence of any Event of
Acceleration. In addition, upon receipt of a written request to that effect from Plenus,
the Company shall confirm to Plenus that, except as previously notified to Plenus, if
notified, or as notified in such confirmation, if notified, no Event of Acceleration has
occurred. 

         4.       
          Representations and Warranties. 

        The
Company hereby represents and warrants to the Lenders that, except as set forth on a
Disclosure Schedule (the “Disclosure Schedule”) attached hereto as
Schedule 4, as of the date hereof: 

         (i)       
          The Company is a company duly formed and validly existing under the laws of the
          State of Israel. The Company’s current Articles are attached hereto as
          Schedule 4(i). The Company has full corporate power and
          authority to enter into and perform its obligations under the Transaction
          Documents, and all of such documents, upon their execution and delivery,
          constitute legally binding obligations of the Company, enforceable against the
          Company in accordance with their respective terms. 

         (ii)       
          The Company has furnished or made available to Plenus (i) its audited,
          consolidated, financial statements as at, and for the year ended, December 31,
          2004 and (ii) the unaudited, reviewed consolidated quarterly financial
          statements for the period ended June 30, 2005 ((i) and (ii) are collectively
          referred to herein as the “Financial Statements”). The
          Financial Statements are true and correct in all material respects, are in
          accordance with the books and records of the Company and have been prepared in
          accordance with generally accepted accounting principles consistently applied,
          and fairly and accurately present the financial position of the Company as of
          such dates and the results of its operations for the periods then ended. Except
          as reflected in the Company’s unaudited, but reviewed, consolidated
          quarterly financial statements for the period ended June 30, 2005, since June
          30, 2005, there has not been any material adverse change in the assets,
          liabilities, condition (financial or otherwise) or business of the Company,
          including, without limitation: 

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		    (a)        any
damage, destruction or loss, whether or not covered by insurance, materially
               and adversely affecting the assets, properties, conditions (financial or
               otherwise), operating results or business of the Company;  

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

		    (c)        any
satisfaction or discharge of any material lien, material claim or material
               encumbrance or payment of any material obligation by the Company, except
in the                ordinary course of business;  

		    (d)        any
material change or amendment to a material contract or material arrangement
               by which the Company or any of its assets or properties is bound or
subject;  

		    (e)        any
loans made by the Company to its employees, officers, or directors other
               than travel advances and the like made in the ordinary course of business;  

		    (f)        any
sale, transfer or lease of, except in the ordinary course of business, or
               mortgage or pledge or imposition of lien on, any of the Company’s
material                assets; or  

		    (g)        any
change in the accounting methods or accounting principles or practices
               employed by the Company.  

         (iii)       
          The execution and delivery of the Transaction Documents by the Company, and
          performance of the Company’s obligations thereunder, have been duly and
          validly authorized by all necessary corporate action. 

         (iv)       
          The Company has taken all corporate actions, and has procured all consents and
          approvals, necessary for the issuance of the Warrant; and the Warrant, and the
          Warrant Shares when issued, and with respect to the Warrant Shares when the
          Exercise Price (as defined in the Warrant) is paid, shall be duly authorized,
          validly issued, fully paid, nonassessable and shall not trigger any preemptive
          rights which have not been waived. 

         (v)       
          Neither the execution nor the delivery of any of the Transaction Documents, nor
          the transactions contemplated thereby, will contravene any agreement or negative
          pledge, or, to the Company’s best knowledge, any law, rule, restriction or
          decree to which the Company is subject, and will not result in any such
          violation or be in conflict with or constitute, with or without the passage of
          time and giving of notice, either a default under any such provision,
          instrument, judgment, order, writ, decree or contract or an event that results
          in the creation of any lien, charge or encumbrance upon any assets of the
          Company or, to the knowledge of the Company, the suspension, revocation,
          impairment, forfeiture, or non-renewal of any material permit, license,
          authorization, or approval applicable to the Company, its business or operations
          or any of its assets or properties. 

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         (vi)       
          There is no order, writ, injunction or decree of any court, government or
          governmental agency affecting, or, to the knowledge of Company, which may
          affect, the Company or any of its businesses, assets or interests, in a material
          adverse manner; nor is there any action, suit, proceeding or investigation
          pending or, to the Company’s knowledge, currently threatened, against the
          Company, that questions the validity of any of the Transaction Documents, or the
          right of the Company to execute and deliver any such document or to consummate
          the transactions contemplated thereby, or that may result, either individually
          or in the aggregate, in any material adverse changes in the assets, condition,
          affairs or prospects of the Company, financially or otherwise; nor is the
          Company aware that there is any basis for the foregoing. 

         (vii)       
          There are no material claims, guarantees, royalty payments, payments to
          government entities or regulatory bodies, security interests, options or other
          rights outstanding with respect to any of the Company’s assets or
          securities, and the Company has no outstanding loans or financial obligations to
          any third parties, including, but not limited to, any banking obligations, and
          any liens, whether registered or not, on the Company’s bank accounts or
          other assets of the Company. 

         (viii)       
          The Company, to the best of its knowledge, owns and has developed, or has
          obtained the right to use, free and clear of all liens (other than the liens
          created hereunder or by operation of law) and claims, all patents, trademarks,
          domain names and copyrights, and applications, licenses and rights with respect
          to the foregoing, and all trade secrets, including know-how, inventions,
          designs, processes, works of authorship, computer programs and technical data
          and information used and sufficient for use in the conduct of its business as
          now conducted, and as presently proposed to be conducted, and, to the best of
          the Company’s knowledge, without infringing upon or violating any right,
          lien, or claim of others, and the Company has taken security measures customary
          in the industry to protect the secrecy, confidentiality and value of all the
          said intellectual property. A complete list of all patents, trademarks and key
          domain names registered by the Company in any jurisdiction as of the date hereof
          is set forth in Schedule 4(viii) attached hereto. 

         (ix)       
          The Company’s capitalization on a fully diluted basis (including the
          Warrant), as of the date hereof, is as set forth in Schedule
          4(ix) attached hereto. The outstanding Shares of the Company are
          all duly and validly authorized and issued, fully paid and nonassessable, and
          were issued in accordance with every relevant securities laws or pursuant to
          valid exemptions therefrom. There are no outstanding options, warrants, rights
          (including conversion or pre-emptive rights with respect to the Warrant Shares)
          or agreements for the purchase or acquisition from the Company of any shares of
          its share capital. Except as set forth in Schedule 4(ix) and as
          set forth in the Disclosure Schedule, the Company is not a party or subject to
          any agreement or understanding, and to the best of the Company’s knowledge,
          there is no agreement or understanding between any persons and/or entities,
          which affects or relates to the voting rights or to the giving of written
          consents with respect to (1) any of the Company’s securities, or (2)
          appointment or removal of a director of the Company. 

         (x)       
          To the best of the Company’s knowledge, neither any Transaction Document
          (including any schedule or exhibit thereto) nor any documents, certificates or
          other items supplied by the Company with respect to the transactions
          contemplated thereby, contains any untrue statement of a material fact or omits
          to state a material fact necessary to make the statements therein not misleading
          in view of the circumstances in which they were made. 

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         (xi)       
          The Company has no subsidiaries (as such term is defined in the Securities Law,
          5728-1968) (“Subsidiaries”). For the purposes of this section
          4, reference to the Company other than in this clause (xi), shall mean both the
          Company and all of its Subsidiaries. 

         (xii)       
          No consent, approval, order or authorization of, or registration, qualification,
          designation, declaration or filing with, any governmental authority on the part
          of the Company is required in connection with the consummation of the
          transactions contemplated by the Transaction Documents, except as set forth in
          the Transaction Documents, the registration of the charges under the Floating
          Charge Agreement and the Fixed Charge Agreement and compliance with the
          Encouragement Law and applicable securities laws. 

         (xiii)       
          Each Material Agreement (as defined below) is in full force and effect, is not
          subject to recession and, to the best knowledge of the Company, there are no
          existing circumstances which would reasonably be expected to materially modify
          the terms thereof. To the Company’s best knowledge, no third party is in
          default under any Material Agreement. A complete list of all of the Material
          Agreements is set forth in Schedule 4 (xiii). The Company
          is not in breach of any obligation under any Material Agreement. 

        For
the purposes of this Agreement, the term “Material Agreement” shall mean
any agreement, understanding, instrument, contract, proposed transaction, judgment,
orders, writ or decree to which the Company is a party or by which it is bound that may
involve (i) obligations (contingent or otherwise) of, or payments to the Company,
exceeding $250,000 each, or (ii) intellectual property rights of the Company and/or
the intellectual property rights of any third party (other than the license of the
Company’s software and products, or those of Company’s suppliers, in the
ordinary course of its business which do not fall within any other category herein and
other than confidentiality or proprietary undertaking executed by the Company’s
employees, consultants, former employees or former consultants), or (iii) distribution
rights, or (iv) provisions restricting the development, manufacture or distribution of the
Company’s products or services, or (v) restrictions or limitations on the
Company’s right to do business or compete in any area or any field with any person,
firm or company, or (vi) indemnification by the Company with respect to infringements
of proprietary rights (other than those entered into in the Company’s ordinary course
of business and which do not fall within any other category herein) or (vii) special
approvals under the Companies Law. Notwithstanding the foregoing, “Material
Agreement” shall not include non-disclosure agreements executed by the Company in the
ordinary course of business. 

        In
addition to the representations and warranties made herein, together with each
Disbursement Request, the Company shall provide to Plenus a certificate signed by the
chief executive officer of the Company, certifying that since the date hereof and until
the date of such Disbursement Request, no event or a series of events occurred which may
have a material adverse effect on the business, condition (financial or otherwise), or
results of operations of the Company or on the ability of the Company to comply with any
of its material obligations under any of the Transaction Documents; provided,
however, that if in Plenus’ opinion, actions taken by the Company may annul such
adverse effect, Plenus shall notify the Company and allow it to take such actions within a
period of time determined exclusively by Plenus and specified in said notice. 

- 10 -

         5.       
          Reporting and Notice Rights; Appointment of an Observer. 

     5.1        Reporting
and Notices. Until the termination of this Agreement, the Company shall provide
Plenus with the following: (i) audited, consolidated annual financial statements
within ninety (90) days after the end of the fiscal year (including an audited annual
balance sheet of the Company as at the end of the fiscal year and the statement of income
and cash flow of the Company for the fiscal year then ended), (ii) unaudited but
reviewed, consolidated, quarterly financial statements within forty five (45) days after
the end of each quarter, (iii) such other data and information as Plenus may reasonably
request, provided such data is reasonably available and not subject to
confidentiality undertakings to third parties, (iv) at least five (5) business days
advanced written notice of a merger or consolidation of the Company, a sale of any
substantial portion of the assets or shares of the Company or any reorganization or
restructuring of the Company having similar effects, or a distribution of dividends, and
(v) at least five (5) business days advanced written notice of a firmly underwritten
initial public offering of the Company’s shares pursuant to a registration statement
filed with the Securities and Exchange Commission under the Securities Act of 1933 or
pursuant to a registration statement filed with a similar authority under any other
jurisdiction. Furthermore, and subject to execution of confidentiality undertakings
Plenus shall have, at reasonable times and upon reasonable notice, full access to all
books and records of the Company and shall be entitled to inspect the properties of the
Company and consult with management of the Company regarding the same, to the extent
necessary or advisable for the purpose of monitoring observance by the Company of its
obligations under the Transaction Documents.  

        Following
the termination of this Agreement, and for as long as the Warrant is outstanding, the
Company shall furnish to the Company true and complete copies of its annual and quarterly
financial statements, simultaneously with furnishing same to any shareholders of the
Company. 

     5.2        Observer.
During the term of this Agreement Plenus shall be entitled to nominate one (1) person on
the Lenders’ behalf (the “Observer”), who shall be entitled,
subject to signing a customary non-disclosure undertaking towards the Company, and
subject to restrictions relating to attorney-client privilege, to attend all meetings of
the Company’s Board of Directors (whether in person, telephonic or otherwise) in a
non-voting observer capacity, concurrently with the members of the Company’s Board
of Directors, and in the same manner and shall be entitled to receive notice of such
meeting and a copy of all materials provided to such members in the context of such
meetings. At the Company’s reasonable request, Plenus shall replace the Observer
with an alternative nominee. The Observer shall be subject to the same fiduciary duties
that shall apply to members of the Board of Directors, provided, however,
that he shall not be deemed to have breached any such duty by relaying to a Lender
information that may be pertinent to its interests under, or in connection with, this
Agreement.  

     5.3        Information.
The Company acknowledges that the Lenders will likely have, from time to time,
information that may be of interest to the Company (“Information”)
regarding a wide variety of matters. Such Information may or may not be known by the
Observer appointed by Plenus. The Company, as a material part of the consideration for
this Agreement, agrees that the Lenders and the Observer shall have no duty to disclose
any Information to the Company or permit the Company to participate in any projects or
investments based on any Information, or to otherwise take advantage of any opportunity
that may be of interest to the Company if it were aware of such Information, and hereby
waives, to the extent permitted by law, any claim based on the corporate opportunity
doctrine or otherwise that could limit the Lenders’ ability to pursue opportunities
based on such Information or that would require the Lenders or the Observer to disclose
any such Information to the Company or offer any opportunity relating thereto to the
Company.  

- 11 -

     5.4        Confidentiality.  

         (a)       
          The Lenders acknowledge that the data and the information obtained by them from
          the Company or anyone on its behalf prior to or during the term of this
          Agreement which relate to the Company are confidential and agree that such data
          and information will not be disclosed by them to any third party nor exploited
          for other projects, investments or the like, without the prior written consent
          of the Company; provided, however, that the Lenders may disclose
          any data and information: (i) in connection with reports to their partners,
          investors, the Participants (as defined in Section 6 hereof) and/or the
          Co-lenders, and (ii) to their directors, officers and employees on a need to
          know basis; on the condition, in each such case, that the recipient of data or
          information shall undertake the same obligations as the Lenders undertake
          hereunder with respect to such data and information. 

    (b)        Except
as required under applicable law, no party shall be entitled to issue a           press
release relating to the terms of the Transaction Documents without           obtaining
the prior written consent of the other parties. The foregoing shall           similarly
apply to any other form of communication, public or nonpublic,           including, but
not limited to, announcements, conferences, advertisements,           professional or
trade publications, mass marketing materials etc.  

         (c)       
          Notwithstanding the aforesaid (i) the Company may disclose the existence and/or
          terms of the Transaction Documents without obtaining the prior written consent
          of the Lenders in the course of a due diligence investigation and/or disclosure
          in connection with the sale of the Company’s securities, and (ii) the
          Lenders may publicly disclose the fact that a lending transaction in the amount
          of $10,000,000 between the Company and the Lenders has been consummated. 

         (d)       
          The confidential undertakings hereunder shall survive termination of this
          Agreement. 

         6.       
          Syndication. 

Notwithstanding any of the provisions
set forth herein, the Company acknowledges and agrees that the Lenders have notified it
that they have syndicated the Loan to the Co-lenders and to the participants specified as
such in Schedule 1 (the “Participants”), and that Plenus shall act as the
lead manager of such syndication on behalf of the Lenders, the Co-lenders and on behalf of
the Participants. Plenus hereby further represents and warrants to the Company that (a)
the other Lender, the Co-lenders and the Participants have agreed that Plenus at its sole
discretion shall determine (i) whether or not to realize any charges and/or pledges over
the assets of the Company created for the benefit of the Lenders, the Co-lenders or the
Participants; (ii) whether or not repayment of any amounts hereunder owed to the Lenders,
the Co-lenders or the Participants are to be accelerated and whether or not an event of a
default pursuant to any of the Transaction Documents has occurred, (iii) any other
decisions that needs to be made with respect to any issue relating to the Transaction
Documents, (b) Plenus has been appointed the attorney-in-fact on behalf of the Lenders,
the Co-lenders and the Participants in connection with all of the foregoing, (c) the other
Lender, the Co-lenders and the Participants have agreed not to take any action to the
contrary, (d) the other Lender, the Co-lenders and the Participants have agreed that in
the event that Plenus should give its consent under this Agreement, such consent shall
bind them as well. 

- 12 -

         7.       
          Miscellaneous. 

     7.1        Further
Action. The parties hereto shall perform such further acts and execute such further
documents as, in Plenus’ and the Company’s opinion, may be reasonably necessary
to carry out and give full effect to the provisions of this Agreement and the intentions
of the parties as reflected hereby. Without derogating from the generality of the
foregoing, the Company shall comply with the terms of, and do all that is reasonably
necessary to maintain in full force and effect, all authorizations, approvals, licenses
and consents required by or under the laws and regulations of the State of Israel and any
other applicable jurisdiction to enable it lawfully to enter into and perform its
obligations under the Transaction Documents, and to ensure the legality, validity,
enforceability or admissibility in evidence of all such documents.  

     7.2        Governing
Law. This Agreement shall be governed by, and construed according to, the laws of the
State of Israel, without regard to the conflict of laws provisions thereof.  

     7.3        Successors
and Assigns. Except as otherwise expressly limited herein, the provisions hereof
shall inure to the benefit of, and be binding upon, the successors and assigns of the
parties hereto.  

     7.4        Non-assignability.
None of the rights or obligations set forth in, arising under, or created by, this
Agreement may be assigned or transferred by the Company or a Lender without the prior
consent in writing of the other party, which consent shall not be unreasonably withheld.
Anything herein to the contrary notwithstanding, each Lender shall have the right to
assign or transfer its rights and obligations under this Agreement, as long as such
assignment or transfer is not to a competitor of the Company, to any of the following
(each a “Permitted Transferee”): (i) any other entity which controls, is
controlled by, or is under common control with, such Lender, (ii) if the Lender is a
trustee or is appointed to act on behalf of others – to its beneficiaries, (iii) to
the Co-lenders and Participants, or (iv) if the Lender is a general or limited
partnership – to its partners and to affiliated partnerships managed by the same
management company or managing general partner or to an entity which controls, is
controlled by, or is under common control with, such management company or managing
general partner. The foregoing in clauses (i)-(iv) above is subject to the assignee or
transferee assuming in writing the obligations of the assignor or transferor under this
Agreement. The limited right of a Lender to assign and transfer pursuant to this Section
7.4 shall also apply, mutatis mutandis, to each Permitted Transferee.  

    7.5        Entire
Agreement. The Transaction Documents constitute the full and entire understanding and
agreement between the Company and the Lenders with regard to the subject matters thereof.
The preamble, exhibits and schedules hereto constitute an integral part hereof.  

- 13 -

     7.6        Fees
and Taxes. The Company has agreed to share in and contribute a total amount of
seventeen thousand dollars ($17,000), plus VAT, towards the legal fees and other expenses
incurred by Plenus in connection with the transactions contemplated under the Transaction
Documents which amount will be paid by the Company within seven (7) days of receipt of a
tax invoice on or after the Closing Date. The Company shall also be responsible for all
taxes and other compulsory payments to which the Lenders are, or shall be, subject under
the Transaction Documents (other than taxes on the net income of the Lenders imposed in
the jurisdiction in which its principal or lending office under this Agreement is
located). Without derogating from the foregoing, the Company will pay the stamp tax
applicable to the Transaction Documents and any document in connection therewith,
including, without limitation, the Warrant Shares.  

     7.7        Amendments
and Waivers. Any term of this Agreement may be amended and the observance of any term
hereof may be waived (either prospectively or retroactively and either generally or in a
particular instance) only with the written consent of the Company and Plenus. No delay or
omission to exercise any right, power, or remedy accruing to any party upon any breach or
default under this Agreement, shall be deemed a waiver of any other breach or default
theretofore or thereafter occurring. All remedies, under this Agreement, by law or
otherwise, afforded to any of the parties, shall be cumulative and not alternative.  

     7.8        Survival.
All covenants made in this Agreement shall continue to remain in full force and effect
for as long as this Agreement is still in effect pursuant to its terms. The Warrant
issued to Plenus Technologies Ltd. hereunder shall survive the expiration or early
termination, for whatever cause of reason, of this Agreement.  

     7.9        Notices.
All notices and other communications required or permitted hereunder to be given to a
party to this Agreement shall be in writing and shall be telecopied (faxed) or mailed by
registered or certified mail, postage prepaid, or by electronic mail, or otherwise
delivered by hand or by messenger as follows:  

        if
to the  Company - to the  Company's  address  set forth  above,  to the  attention  of Oz
Desheh, CFO; 

        if
to a Lender - to its respective addresses, to the attention of the person, set forth in
Schedule 1;  

- 14 -

        or
to such other address, or to the attention of such other person, with respect to a party
as such party shall notify the other parties in writing as above provided. Any notice sent
in accordance with this Section 7.9 shall be effective (i) if mailed, three (3) business
days after mailing, (ii) if sent by messenger, upon delivery, and (iii) if sent via
telecopier (fax) or electronic mail, upon transmission and electronic confirmation of
receipt or – if transmitted and received on a non-business day – on the first
business day following transmission and electronic confirmation of receipt. 

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

- 15 -

    7.11        Currency.
The term “dollars” appearing in this Agreement shall mean the legal currency of
the United States of America, and all payments hereunder shall be made in such currency,
unless otherwise agreed in writing by Plenus and the Company.  

IN WITNESS WHEREOF the parties have
signed this Loan Agreement in one or more counterparts as of the date first appearing
above. 

	NEGEVTECH, LTD.

By: /s/ Oz Desheh
——————————————

Its.      10.11.05
——————————————

——————————————

	PLENUS II L.P.

By: 
——————————————

Its.    
——————————————

——————————————

	PLENUS II (D.C.M.), LIMITED PARTNERSHIP

By: 
——————————————

Its.    
——————————————

- 16 -

SCHEDULE 1  

THE LENDERS 

		
		
		
		
		
	Name 	Participation in Loan 
	 
	Plenus II, L.P.	*$8,288,000
	Plenus II (D.C.M.), Limited Partnership	*$1,712,000

THE CO-LENDERS 

Name and Address  

		
		
		
		
		
	1.	Plenus Technologies, Ltd.
	 	16 Abba Eben Avenues
	 	Herzliya Pituach
	 	Israel
	 	Attn: Shlomo Karako
	 	Facsimile: (972-9) 958-6342
	 
	2.	Golden Gate Bridge Fund, L.P
	 	16 Abba Eben Avenues
	 	Herzliya Pituach
	 	Israel
	 	Attn: Shlomo Karako
	 	Facsimile: (972-9) 958-6342
	 
	3.	Bank Leumi Le-Israel B.M.
	 	24-32 Yehuda Halevi St.
	 	Tel Aviv 65546
	 	Israel
	 	Attn: Shirit Turgeman
	 	           Business Division
	 	Facsimile: (972-3) 5661872

THE PARTICIPANTS 

1.  The Investment Corporation of United Mizrachi Bank Ltd.

2.  Union Bank of Israel Ltd.

3.  Industrial Development Bank of Israel Ltd.

4.  D. Partners (BVI)

5.  CMA Technology Venture Partner Limited

6.  D. Partners (ISR)

7.  Israel Continental Bank Ltd.

8.  Nessuah Zannex Ltd.

9.  Mercantile Discount Bank Ltd.

10.  Benleumi Provident Funds

11.  Bank Leumi Le-Israel B.M.

12.  Kahal Ltd.

* Includes the aggregate
participation amount of the Co-lenders and all of the Participants. 

Schedule 4  

Disclosure Schedule 

Corresponding to the 

LOAN AGREEMENT 

Dated as of October 11,
2005 

By and Among 

Negevtech Ltd. 

(“Negevtech”
or the “Company”) 

and

The
“Lenders” (as defined in the Loan Agreement) 

The following information in any of
the sections is provided for the purposes of disclosure pursuant to the Loan Agreement
(the “Loan Agreement”) only, and does not grant, and should not be interpreted
as granting, any rights to any third parties. Each section is intended to relate to the
corresponding section of the Loan Agreement. Certain disclosure information may be
categorized in one section and not another. When the same disclosure information would be
required in more than one section of this Disclosure Schedule, Negevtech has used its
reasonable efforts to include the disclosure information in each section or provide an
appropriate cross-reference to the section in which the disclosure is contained, but any
information described herein with respect to a particular section number of the Loan
Agreement shall be deemed to be disclosed and incorporated into any other section under
the Loan Agreement, if such matter relates to more than one section or subsection of the
Loan Agreement and the level of particularity or manner of disclosure of the matter
permits a reasonable person to find such disclosure relevant to such other sections or
subsections. 

All capitalized terms used in any of
the sections and not otherwise defined shall have the meanings assigned to them in the
Loan Agreement. 

Unless otherwise indicated, all
information included is provided as of the date of the Loan Agreement. 

- 2 -

SCHEDULE OF EXCEPTIONS  

	Section 4(i):	 	
                 Subject to laws affecting the rights and remedies of creditors. 

	Section 4(ii):	(a)	
 In connection with the Microscope loan (the outstanding amount of which is
approximately US$1,500,000), the Company has (i) created a first-degree floating charge
in favor of Bank Leumi le-Israel B.M. (the “Bank”), and (ii) signed a
negative pledge in favor of the Bank. The Bank also has a pledge over a deposit in an
amount of US$1,000,000. Such charges are reflected in the Financial Statements. In
addition, the Company’s US subsidiary has provided the Bank with a guarantee with
respect to the Company’s indebtedness to the Bank and the Bank has registered a
fixed charge over the Microscope.  

	 	(b) 	In
connection with the January Loan, the Company has created (i) a first-degree
floating charge in favor of Plenus Technologies Ltd. ("Plenus") and
other lenders pari passu with the floating charge in favor of the
Bank, (ii) a first degree fixed charge over the Company’s
intellectual property in favor of Plenus and other lenders pari passu with
the fixed charge in favor of the Bank. Upon the repayment of the January
Loan and simultaneously with the registration of the charges pursuant to
the Transaction Documents, the foregoing charges in favor of Plenus and
the other lenders shall be released. The Company granted Plenus a warrant
to purchase shares of the Company.  

	 	(c) 	The
Company extended the January Loan by three months (until October 2005) and granted Plenus
an additional warrant to purchase shares of the Company.  

	 	(d) 	On
July 31, 2005 the Company granted its employee, Rami Sher, a loan in the  amount of NIS
20,000.  

	 	(e) 	The
Company incorporated subsidiaries in Germany and Japan.  

	 	(f) 	On
September 13, 2005 the Company closed its Series BB Preferred Share financing
               (the “Financing”), by which US$23 million were invested
in the                share capital of the Company (US$14.4 million of which by way of
conversion of convertible loans previously extended to the Company by its existing
               shareholders and affiliates thereof). An additional amount of US$3 million
was used to purchase shares from the Company’s founding shareholders, Gadi
               Neumann and David Alumot (the “Founders”). In the
framework of                the Financing, the share capital of the Company was
recapitalized, whereby all                classes of Preferred Shares were converted into
one class: Preferred AA Shares.                Amendments were signed to the Transition
Agreement between the Company and the                Founders and to the Shareholders
Rights Agreement. In addition, the Company                adopted new Articles of
Association (the “New Articles”) that                replaced the
existing Articles (“Former Articles”). A deferred
               investment of up to US$7 million may be held within 90 days from the
closing of                the Financing. 

- 3 -

	Section 4 (iv):	(a)	  Pursuant to the Company’s Former Articles, the holders of Preferred Shares
of the Company (and pursuant to the New Articles only such holders of Preferred Shares
holding at least 2% of the issued and outstanding shares of the Company, on an as
converted basis) and each of the Founders are entitled to participate (subject to certain
exceptions) in any issuance of securities of the Company. All holders of Preferred Shares
of the Company and the Founders have waived any pre-emptive rights they may have in
connection with the Warrant and the Warrant Shares issuable upon exercise thereof. In
addition, warrants issued to Plenus in connection with the Term Sheet signed by Plenus
and the Company on September 12, 2005, were made an exception to the definition of “Additional
Securities” for the purpose of pre-emptive rights and anti-dilution rights under the
New Articles.  

	 	(b) 	The
issuance of the Warrant and the Warrant Shares, if any, are subject to the
               approval of the Investment Center at the Israeli Ministry of Industry,
Trade and                Employment. The Company received the Investment Center’s
approval in                principle on September 25, 2005.  

	Section 4 (v):	(a)	              Please see Section 4 (ii) above. 

	 	(b) 	The
realization of the fixed charge as described in the Fixed Charge Agreement
               is subject to the terms of the Research Law.  

	 	(c) 	SUBJECT
TO ARRANGMENT WITH BANK LEUMI  

	Section 4 (vi):	 (a)	
 In July, August and October 2004, the Company received letters from KLA–Tencor
asserting that its 302 inspection system makes use of three KLA patents and requesting
technical information regarding the 302 system. In response to these letters, the Company
has identified certain limitations of the KLA patents that are absent from the 302
system. The Company also requested further clarification of KLA’s claims. The
Company disputes KLA’s claims and is attempting to resolve these issues without
resorting to litigation, although these assertions by KLA-Tencor could lead to patent
litigation.  

- 4 -

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

 On                April 15, 2005, Applied Materials
filed a motion for summary judgment that the                Company is barred from
challenging the validity of the ‘921 patent under                the legal doctrine
of assignor estoppel. On July 14, 2005, the Court granted                Applied Materials’ motion.
The Company, therefore, is barred from                challenging the validity of the
‘921 patent in the California litigation.                The Company is not barred,
however, from seeking reexamination of the ‘921                patent by the United
States Patent and Trademark Office                (“PTO”).

 On June 3,
2005, the Company filed with the PTO a                request for reexamination of the
‘921 patent seeking reexamination of                certain claims of the ‘921
patent. On June 10, 2005, Applied Materials                asserted against the Company
additional claims of the ‘921 patent that were                not specifically
addressed in the Company’s request for reexamination. On                August 22,
2005, the Company filed with the PTO a second request for                reexamination
addressing the additional asserted claims. On August 25, 2005, the                PTO
granted the Company’s first request for reexamination, finding a
               “substantial new question of patentability” regarding seven of
the                asserted claims in the ‘921 patent. On Sept. 2, 2005, the Court
stayed the                California litigation on the ‘921 patent pending the PTO’s
decision on                the Company’s second request for reexamination, which
addresses the four                asserted claims that were not specifically addressed by
the Company’s first                request.  

	 	
On
September 1, 2005, Applied Materials indicated its intention to assert an additional
patent against the Company. Applied Materials has not identified that patent. Applied
Materials’ motion to amend its complaint to add another patent is scheduled to be
heard by the Court on October 25, 2005. 

	Section 4 (vii):   	      (a)	
   Please see Section 4 (ii) above. 

	 	(b) 	The
Company has received and may in the future receive participations through
               the OCS. According to the provisions of the Law for the Encouragement of
               Industrial Research and Development, 5744-1984 and of Regulations
promulgated                thereunder (the “Research Law”) and their
applicability to the    Company,
the following shall apply:             

- 5 -

	 	
(a)
Upon sales the Company is obligated to pay royalties to the State of Israel; 

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

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

	 	(c) 	Please
see the Financial Statements.  

	 	(d) 	Please
see list of Material Agreements (Schedule 4(xiii).  

	 	(e) 	Please
see Section 4(vi) for patent litigation.  

	 	(f) 	Please
see Schedule 4(ix) (including the footnotes set forth therein).  

	Section 4 (viii):	(a)	
           Please see Section 4(vi) for patent litigation. 

	 	(b) 	Please
see Section 4(ii).  

	 	(c) 	The
Company decided not to pursue the following patent applications:  

	 	                               – 	Multi
Mode Inspection Method and Apparatus (USA and PCT) 

	 	                               – 	Fiber
   Optical    Illumination    System    (National    phase   of
                                        PCT/IL2004/000022 in Japan and China) 

	 	                               – 	System
 for   Detection   of  Wafer   Defects   (National   phase  of
                                        PCT/IL2004/000023 in Japan and China) 

	 	–	Divisionals
of USSN 10/345,097. 

	 	(d) 	The
IP required by the Company to conduct its business includes readily and
               commercially available off-the-shelf software. This software is owned by
third                parties and would require the payment of fees or royalties.  

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

- 6 -

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

	Section 4 (ix): 	(a) 	
           See Section 4 (ii)(f) above. 

	 	(b) 	Please
see Schedule 4(ix) (including the footnotes set forth therein).  

	 	(c) 	Please
see the SRA with respect to registration of the Company’s                securities.  

	 	(d) 	See
the New Articles with respect to the appointment and removal of the                Company’s
directors and rights with respect to the Company’s shares.  

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

	 	
Pursuant
to the Loan Agreement dated January 14, 2005 between the Company and Plenus Technologies
Ltd., Plenus is entitled to appoint a non-voting observer during the term of the Loan
Agreement. 

	 	(e) 	See
Section 4(iv)(a) above.  

	 	(f) 	SESO
S.A. has provided Mr. Gad Neumann with a power of attorney to exercise all
               of its rights as a shareholder.  

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

	 	(h) 	The
exercise of registration rights with respect to the Warrant Shares may
               require the filing with and the consent of certain regulatory agencies.  

- 7 -

	Section 4 (xi):	 (a) 	
            Negevtech Inc., a wholly-owned U.S. subsidiary. 

	 	(b) 	Negevtech
PTE Ltd. a wholly-owned subsidiary in Singapore. The Company’s
               Singapore subsidiary registered a branch in Taiwan.  

	 	(c) 	Negevtech
GmbH, a wholly-owned subsidiary in Germany.  

	 	(d) 	A
wholly owned subsidiary in Japan.  

	Section 4 (xii):	
 The exercise of registration rights with respect to the Warrant Shares may require
the filing with and the consent of certain regulatory agencies.  

	 	
The
issuance of the Warrant and the Warrant Shares, if any, are subject to the approval of
the Investment Center at the Israeli Ministry of Industry, Trade and Employment. The
Company received the Investment Center’s approval in principle on September 25,
2005. 

- 8 -

Schedule 4(i) –
Current Articles of Association  

THE COMPANIES LAW 

A COMPANY LIMITED BY
SHARES 

AMENDED AND RESTATED ARTICLES
OF ASSOCIATION OF 

NEGEVTECH LTD. 

PRELIMINARY 

	(ii)  	Reserved. 

	(iii)  	In
these Articles, unless the context otherwise requires: 

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

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

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

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

	 	
“Closing” – shall
mean the date of Closing of the Poalim Agreement (as defined therein).  

	 	
The
“Company” – shall mean NEGEVTECH LTD.  

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

	 	
The
“Founders” – shall mean Dr. Gad Neumann and Mr. David Alumot.  

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

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

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

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

- 9 -

	 	
“Majority
Preferred Shareholders” – shall mean the holders of the majority of the
issued and outstanding Preferred Shares (calculated on an as converted basis). 

	 	
“Ordinary
Shares” – shall mean Ordinary Shares of the Company, par value NIS 0.01
each.  

	 	
“Ordinary-Preferred
Shares” – shall mean Ordinary-Preferred Shares of the Company, par value
NIS 0.01 each. 

	 	
“Original
Issue Price” – shall mean: (i) with respect to the Series AA Preferred
Shares, $2.81 per share, provided, that with respect to any Series AA Preferred Share
issued following the Closing, the Original Issue Price shall be the price per share
actually paid to the Company for such Series AA Preferred Share; (ii) with respect to the
Series BB-1 Preferred Shares, $2.3194 per share; and (iii) with respect to the Series
BB-2 Preferred Shares, $1.97149 per share, as such prices may be adjusted, for certain
purposes set forth in these Articles, upon the occurrence of a Recapitalization Event. 

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

	 	
“Permitted
Transferee” – shall mean: (i) a person or entity that controls or is
controlled by or is under common control with the respective shareholder; (ii) spouse,
brothers, sisters, parents and children of the transferor or a trust for the benefit of
the transferor and/or any of the foregoing, in the event the shares are held by
individuals; (iii) in the case of any shareholder which is a limited or general
partnership or a trust, to its partners (including retired partners) or beneficiaries and
to affiliated partnerships managed by the same management company or managing (general)
partner or by an entity which directly or indirectly controls, is controlled by, or is
under common control with, such management company or managing or general partner; (iv) a
trustee of the Company’s incentive plans may transfer to a beneficiary and vice
versa. 

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

	 	
“Pitango”– shall
mean Pitango Venture Capital Fund III (Israeli Sub) L.P., Pitango Venture Capital Fund
III (Israeli Sub.) Non-Q L.P., Pitango Venture Capital Fund III (Israeli Investors) L.P.,
Pitango JP Morgan Fund III (Israel), L.P., Pitango Principles Fund III (Israel) L.P.,
Pitango Venture Capital Fund III Trusts 2000 L.P. and their Permitted Transferees to
which they transfer shares 

	 	
The
“Poalim Agreement” shall mean the Series BB Preferred Share Purchase
Agreement dated September 13, 2005 between the Company and certain investors. 

- 10 -

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

	 	
“Preferred
Shares” – shall mean Series AA Preferred Shares and Series BB Preferred
Shares.  

	 	
“Qualified
IPO” or “QIPO” – shall mean the consummation of a firm
commitment underwritten public offering of the Company’s shares, netting to the
Company at least US$ 30,000,000 (Thirty Million), at an offering price per share in
excess of 3 (three) times the Original Issue Price of the Series BB-1 Preferred Shares. 

	 	
“Recapitalization
Event” – shall mean any event of share combination or subdivision,
distribution of bonus shares or any other similar reclassification, reorganization or
recapitalization of the Company’s share where the shareholders retain their
proportionate holdings in the Company. 

	 	
The
“Share Transfer Agreement” – shall mean that certain Share Transfer
Agreement effective as of the Closing between the Company, the Founders and certain
Purchasers (as defined therein). 

	 	
“Series
AA Preferred Shares” – shall mean Series AA Preferred Shares of the
Company, par value NIS 0.01 each. 

	 	
“Series BB
Preferred Shares” – shall mean Series BB-1 Preferred Shares and Series BB-2
Preferred Shares. 

	 	
“Series BB-1
Preferred Shares” – shall mean Series BB-1 Preferred Shares of the Company,
par value NIS 0.01 each. 

	 	
“Series
BB-2 Preferred Shares” – shall mean Series BB-2 Preferred Shares of the
Company, par value NIS 0.01 each. 

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

	 	
The
“Star Agreement” – shall mean the Preferred Share Purchase
Agreement dated May 2002 between the Company and certain investors. 

	 	
“Transition
Agreement” shall mean the Agreement dated as of December 26, 2004 between the
Company and the Founders, as amended. 

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

- 11 -

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

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

	(iv)  	PRIVATE
COMPANY 

	 	
The
Company is a private Company. 

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

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

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

	(v)  	OFFICE 

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

	(vi)  	THE
CAPITAL 

	 	
The
authorized capital of the Company is comprised of NIS 755,700 divided into: 42,000,996
Ordinary Shares, par value 0.01 NIS per share, 1,569,004 Ordinary-Preferred Shares, par
value 0.01 NIS per share, 15,000,000 Series AA Preferred Shares, par value 0.01 NIS per
share, 13,000,000 Series BB-1 Preferred Shares, par value 0.01 NIS per share and
4,000,000 Series BB-2 Preferred Shares, par value 0.01 NIS per share. 

	(vii)  	RIGHTS,
PREFERENCES AND RESTRICTIONS OF PREFERRED SHARES AND ORDINARY-PREFERRED           SHARES 

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

- 12 -

	 	
The
Ordinary-Preferred Shares shall have the same rights, preferences, privileges and
restrictions granted to and imposed on the Ordinary Shares, except for the rights,
preferences and privileges specifically granted to the Ordinary-Preferred Shares in these
Articles.  

	(viii)  	DIVIDEND
PROVISIONS 

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

	(ix)  	DIVIDEND
AND LIQUIDATION PREFERENCE 

	 	
Upon
the happening of any of the following events:  

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

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

	 	
any
sale or transfer to another corporation of all or
substantially all of the assets
of the Company, or all or
substantially all of the shares in
the Company (other than to a
wholly owned subsidiary of the
Company or to a corporation in
which the shareholders of the Company prior
to the transaction hold more
than 50% of the outstanding
voting rights) ("Acquisition"); or  

	 	
any
distribution of dividends; 

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

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

- 13 -

	 	
the
holders of the Series BB Preferred Shares shall be entitled to receive, prior and in
preference to any distribution of any of the assets of the Company to the holders of all
other equity securities of the Company by reason of their ownership thereof, an amount
per Series BB Preferred Share equal to: (i) the applicable Original Issue Price for each
Series BB Preferred Share, plus (ii) an amount equal to declared but unpaid
dividends on each such Series BB Preferred Share , plus (iii) an amount equal to 8%
return per annum, compounded annually, on the applicable Original Issue Price, for each
BB Preferred Share to be calculated from the date of payment to the Company on account of
such Series BB Preferred Share until such distribution, less (iv) any amount of dividend
preference paid on account of such Series BB Preferred Share until such distribution (the
“BB Preference Amount”). In the event that the Distribution Assets are
not sufficient for distribution to the holders of the Series BB Preferred Shares pursuant
to this subarticle (b), such Distribution Assets as are available for distribution, shall
be distributed among the holders of the Series BB Preferred Shares pro-rata in proportion
to the preferential amount each such holder is otherwise entitled to receive. 

	 	
Following
the payment in full of the BB Preference Amount, the holders of the Series AA Preferred
Shares and the holders of Ordinary-Preferred Shares shall be entitled to receive prior
and in preference to any distribution of any of the assets of the Company to the holders
of all other equity securities of the Company by reason of their ownership thereof, an
aggregate amount equal to the sum of: (i) the Original Issue Price for each Series AA
Preferred Share, plus (ii) an amount equal to declared but unpaid dividends on each such
Series AA Preferred Share, plus (iii) an amount equal to 8% return per annum, compounded
annually, on the Original Issue Price for each outstanding Series AA Preferred Share to
be calculated from the later of the date of payment to the Company on account of such
Series AA Preferred Share or May 23, 2002 and until such distribution, less (iv) any
amount of dividend preference paid on account of such Series AA Preferred Share and each
Ordinary-Preferred Share until such distribution (the “Secondary Preference Amount”),
such aggregate amount to be distributed among the holders of Series AA Preferred Shares
and the holders of Ordinary-Preferred Shares such that: (x) holders of Series AA
Preferred Shares shall receive out of the Secondary Preference Amount an amount equal to
the Secondary Preference Amount multiplied by a fraction (the “Multiplier”)
the numerator of which is the total number of the then outstanding Series AA Preferred
Shares (for the avoidance of doubt, not on an as converted basis) and the
denominator of which is such total number of then outstanding Series AA Preferred Shares
plus 1.2764 times the total number of the then outstanding Ordinary-Preferred Shares (for
the avoidance of doubt, not on an as converted basis) (“AA Secondary
Preference Amount”), to be allocated among the holders of Series AA Preferred
Shares pro rata, such that for each Series AA Preferred Share held by a holder of Series
AA Preferred Shares such holder shall be entitled to an amount  equal to the product
of the Multiplier multiplied by the sum of: (i) the Original Issue Price for such Series
AA Preferred Share, plus (ii) an amount equal to declared but unpaid dividends on such
Series AA Preferred Share, plus (iii) an amount equal to 8% return per annum, compounded
annually, on the Original Issue Price for such Series AA Preferred Share to be calculated
from the later of the date of payment to the Company on account of such Series AA
Preferred Share or May 23, 2002 and until such distribution, less (iv) any amount of
dividend preference paid on account of such Series AA Preferred Share until such
distribution, and (y) the holders of Ordinary Preferred Shares shall receive out of the
Secondary Preference Amount an amount equal to the Secondary Preference Amount minus the
AA Secondary Preference Amount, to be allocated among the holders of Ordinary Preferred
Shares pro-rata based on the number of Ordinary-Preferred Shares held by them. 

- 14 -

	 	
In
the event that, following the payment in full of the BB Preference Amount, the remaining
Distribution Assets are not sufficient for a full payment of the Secondary Preference
Amount pursuant to this subarticle (c), then such remaining Distribution Assets shall be
distributed among the holders of Series AA Preferred Shares and the holders of
Ordinary-Preferred Shares in proportion to the amount they would have been entitled to
receive had the Secondary Preference Amount been paid in full. 

	 	
Thereafter,
the holders of the Preferred Shares, the holders of the Ordinary-Preferred Shares and the
holders of the Ordinary Shares shall be entitled to receive any remaining Distribution
Assets available for distribution pro rata based on the number of Ordinary Shares (on an
as converted basis) held by any such holder. 

	 	
Notwithstanding
the foregoing, if distribution of the Distribution Assets among all shareholders of the
Company, pro-rata to the number of shares they hold on an as converted basis, will result
in the holders of Series BB-1 Preferred Shares receiving in respect of each Series BB-1
Preferred Share they hold an amount of at least three (3) times the Original Issue Price
of the Series BB-1 Preferred Shares, then the provisions of subarticles (b)-(d) above
shall not apply and the Distribution Assets shall be distributed among all shareholders
of the Company, pro-rata to the number of share they hold, on an as converted basis. 

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

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

- 15 -

	(x)  	CONVERSION
OF PREFERRED SHARES 

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

	 	a. 	Right
to Convert. 

	 	(1) 	Subject
to Article 9(c), each fully paid Preferred Share shall be convertible,                at
the option of the holder thereof, at any time after the date of issuance of
               such Preferred Share at the Office or any transfer agent for the Preferred
               Shares, into one fully paid and non-assessable Ordinary Share nominal
value NIS                0.01 and the Company shall, at such time, issue to the holders
thereof, for no                additional charge (a portion of the premium paid for such
Preferred Shares being                attributed as payment on account of the nominal
value of such additional                Ordinary Shares – in the event that the then
applicable law requires that                shares are issued for no less than their
nominal value and to the extent no                other source available pursuant to the
provisions of the then applicable law may                be used for such purpose), such
number of fully-paid and non-assessable Ordinary                Shares as required so
that the total number of Ordinary Shares so issued (i.e.                including the
Ordinary Share into which the Preferred Share was converted) will                be equal
to the number determined by dividing the Original Issue Price                applicable
to such Preferred Share by the Conversion Price (as defined below) at                the
time in effect for such share. In the event that the then applicable law
               requires that shares are issued for not less than their nominal value, and
the                aggregate nominal value of all such Ordinary Shares shall exceed the
               consideration paid to the Company with respect to such Preferred Share,
the                holder thereof shall pay the Company such excess nominal value to the
extent no                other source available pursuant to the provisions of the then
applicable law                (such as premiums paid for other shares of the Company) may
be used for such                purpose. The initial Conversion Price per share for the
Series BB-1 Preferred                Shares and Series AA Preferred Shares shall be the
Original Issue Price of the                Series BB-1 Preferred Shares and the initial
Conversion Price for the Series                BB-2 Preferred Shares shall be the
Original Issue Price of the Series BB-2                Preferred Shares, provided,
however, that the Conversion Price for the Preferred                Shares shall be
subject to adjustment as set forth in subarticles 9(c), 9(d) and                9(e).  

	 	(2) 	Each
Preferred Share shall automatically be converted into Ordinary Shares at
               the Conversion Price at the time in effect for such Preferred Share upon
the                earlier of: (A) a Qualified IPO, or (B) the written consent of the
Majority                Preferred Shareholders. The Series AA Preferred Shares shall also
automatically                be converted into Ordinary Shares as aforesaid upon the
consent of the holders                of at least sixty six percent (66%) of the issued
and then outstanding Series AA                Preferred Shares.  

- 16 -

	 	(b) 	Mechanics
of Conversion. 

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

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

	 	(c) 	Conversion
Price Adjustments of Preferred Shares 

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

	 	(1) 	During
the period commencing on the Closing and ending on the earlier of (x) the
               QIPO or (y) 24 months following the Closing (the “Initial
               Period”), upon each issuance by the Company of any “Additional
               Securities” (as defined below) without consideration or for a price
per                share less than the applicable Conversion Price for any issued and
outstanding                Series BB Preferred Shares in effect immediately prior to the
issuance of such                Additional Securities, the applicable Conversion Price
for any such issued and                outstanding Series BB Preferred Share in effect
immediately prior to each such                issuance shall be adjusted to the price per
share paid at such issuance.  

- 17 -

	 	(2) 	With
respect to the Series BB Preferred Shares during the period after the
               Initial Period and until the QIPO and with respect to the Series AA
Preferred                Shares during the Initial Period and thereafter until the QIPO,
upon each                issuance by the Company of any “Additional Securities” (as
defined                below), without consideration or for a price per share less than
the applicable                Conversion Price for any issued and outstanding applicable
series of Preferred                Shares in effect immediately prior to the issuance of
such Additional                Securities, the applicable Conversion Price for any such
issued and outstanding                series of Preferred Shares in effect immediately
prior to each such issuance                shall be adjusted to a price (calculated to
the nearest ten thousandth of a US                Dollar ($0.0001)) determined by
dividing (1) the sum of (A) the total number of                Ordinary Shares issued and
outstanding prior to the issuance of such Additional                Securities multiplied
by the applicable Conversion Price of such series, as the                case may be, in
effect prior to the issuance of such Additional Securities, plus                (B) the
total amount of the consideration received by the Company for such
               Additional Securities by (2) the sum of the total number of Ordinary
Shares                issued and outstanding immediately prior to the issuance of such
Additional                Securities plus the number of such Additional Securities
issued. For the purpose                of the above calculation, the number of shares of
Ordinary Shares issued and                outstanding immediately prior to such issue
shall be calculated on an as                converted and fully diluted basis, as if all
outstanding warrants, options or                other rights for the purchase of shares
or convertible securities had been fully                exercised (and the resulting
securities fully converted into Ordinary Shares, if                so convertible) as of
such date.  

	 	(3) 	In
the event that the full application of the anti dilution protection in
               subarticles 9(c)(1) and 9(c)(2) cannot be implemented mathematically, then
the                Series BB Preferred Shares shall have absolute priority over the
Series AA                Preferred Shares in implementation of the above, such that only
the Series BB                Preferred Shares shall be provided with the anti-dilution
protection.  

	 	(4) 	(A)    
No adjustments of any applicable Conversion Price shall be made in an amount
               less than ten thousandth of a US Dollar ($0.0001). No adjustment of any
               applicable Conversion Price pursuant to subarticles 9(c)(1) and (2) shall
be                made if it has the effect of increasing the applicable Conversion Price
above                the applicable Conversion Price in effect immediately prior to such
adjustment.  

- 18 -

	 	
(B)    
            In the case of the issuance of Additional Securities (as defined below) for
          cash, the consideration, for the purpose of subarticles 9(c)(1) and (2), shall
          be deemed to be the amount of cash received therefore before any payment of
          commissions, expenses and the like.  

	 	
(C)    
            In the case of the issuance of Additional Securities (defined below) for a
          consideration, in whole or in part other than cash, the consideration other
than           cash shall, for the purpose of subarticles 9(c)(1) and (2), be deemed to
be the           fair value thereof as determined, in good faith, by the Board of
Directors.  

	 	
(D)    
            In the case of the issuance of options to purchase or rights to subscribe for
          Ordinary Shares, or securities by their terms convertible into or exchangeable
          for Ordinary Shares or options to purchase or rights to subscribe for such
          convertible or exchangeable securities, the aggregate maximum number of
Ordinary           Shares deliverable upon exercise (assuming the satisfaction of any
conditions to           exercise, including without limitation, the passing of time, but
without taking           into account potential antidilution adjustments) of such options
to purchase or           rights to subscribe for Ordinary Shares or upon conversion or an
exchange of           such convertible or exchangeable security shall be deemed to have
been issued at           the time of the issuance of such options, rights, or securities
at a           consideration equal to the consideration (determined in the manner
provided in           subarticle 9(c)(4)(B) and (c)(4)(C)), if any, received by the
Company upon the           issuance of such options or rights or securities plus any
additional           consideration payable to the Company pursuant to the term of such
options or           rights or securities (without taking into account potential
antidilution           adjustments) for the Ordinary Shares covered thereby, and the
applicable           Conversion Price shall be adjusted accordingly. Upon the expiration
of any such           options or rights, the termination of any such rights to convert or
exchange or           the expiration of any options or rights related to such convertible
or           exchangeable securities, the Conversion Price for such series of Preferred
          Shares to the extent in any way affected by or computed using such options,
          rights or securities or options or rights related to such securities (unless
          such options or rights were merely to be included in the numerator and
          denominator for purposes of determining the number of Ordinary Shares
          outstanding for purposes of Article 9(c)(2)) shall be recomputed to reflect the
          issuance of only the number Ordinary Shares (and convertible or exchangeable
          securities that remain in effect) actually issued upon the exercise of such
          options or rights, or upon the conversion or exchange of such securities or
upon           the exercise of the options or rights related to such securities. The
number of           Ordinary Shares deemed issued and the consideration deemed paid
therefor shall           be appropriately adjusted to reflect any change, termination or
expiration of           the type described in this Article 9(c)(4)(D).  

- 19 -

	 	
(E)    
            For purpose of subarticles 9(c)(1) and (2) hereof, the consideration for any
          Additional Securities shall be taken into account at the U.S. dollar equivalent
          thereof, on the day such Additional Securities are issued or deemed to be
issued           pursuant to subarticle 9(c)(4)(D).  

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

	 	(A) 	Securities
issued pursuant to a transaction described in subarticle 9(c)(6)                hereof;  

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

	 	(C) 	Securities
issued pursuant to options, warrants or other rights outstanding on                the
Closing, provided that such options, warrants or other rights are reflected
               in the Capitalization Table attached as Schedule 2.2 to the Poalim
Agreement, as                well as any warrants to be granted to Plenus Technologies
Ltd. in accordance                with the ‘Venture Lending Term Sheet’ attached
to the Poalim                Agreement; and  

	 	(D) 	Ordinary
Shares issued upon conversion of Preferred Shares or Ordinary-Preferred
               Shares; and  

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

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

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

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

- 20 -

	 	(I) 	The
issuance of Series BB-1 Preferred Shares in a Deffered Investment in
               accordance with the terms of Section 1.5 of the Poalim Agreement.  

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

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

	 	(d) 	Other
Distributions 

	 	
Subject
to the liquidation preference of the Preferred Shares as set forth in Article 8
above, in the event the Company shall declare a distribution payable in securities of
other persons, evidences of indebtedness issued by the Company or other persons, assets
(excluding cash dividends) or options or rights not referred to in subarticle 9(c)(5) or
if the Company at any time shall pay a dividend payable in additional Ordinary Shares or
other securities or rights convertible into, or entitling the holder thereof to receive
directly or indirectly, additional Ordinary Shares then, in each such case for the
purpose of this subarticle 9(d), the holders of the Preferred Shares shall be entitled to
receive such distribution, in respect of their holdings on an as-converted basis as of
the record date for such distribution.  

	 	(e) 	Recapitalizations 

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

- 21 -

	 	(f) 	No
Impairment 

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

	 	(g) 	No
Fractional Shares and Certificate as to Adjustments 

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

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

	 	(h) 	Notices
of Record Date 

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

- 22 -

	 	(i) 	Reservation
of Shares Issuable Upon Conversion 

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

	(xi)  	CONVERSION
OF ORDINARY-PREFERRED SHARES 

	 	(a) 	Immediately
following the Closing, each Ordinary-Preferred Share shall be           convertible, at
the option of the holder thereof, into one fully paid and           non-assessable
Ordinary Share nominal value NIS 0.01 (the “Converted
          Ordinary-Preferred Share”) and upon such conversion the Company shall
          issue to the holders thereof, for no additional charge (in the event that the
          then applicable law requires that shares are issued for not less than their
          nominal value, and the aggregate nominal value of all such Ordinary Shares
shall           exceed the consideration paid to the Company with respect to such
Ordinary           – Preferred Share, the holder thereof shall pay the Company such
excess           nominal value to the extent no other source available pursuant to the
provisions           of the then applicable law (such as premiums paid for other shares
of the           Company) may be used for such purpose) such number of additional
fully-paid and           non-assessable Ordinary Shares as required so that the total
number of Ordinary           Shares so issued (i.e. including the Ordinary Share into
which the Ordinary           – Preferred Share was converted) will be equal to the
number determined by           multiplying the Converted Ordinary-Preferred Share by
1.552794 (subject,           however, to Article 9 (g)(i) above). Accordingly, the total
number of Ordinary           Shares into which the Ordinary-Preferred Shares may be
converted (immediately           following the Closing and the sale of the Founders’ shares
pursuant to the           Share Transfer Agreement) shall be 2,436,340. 

	 	(b) 	The
Ordinary-Preferred Shares shall be automatically converted into Ordinary           Shares
as aforesaid in the event of an automatic conversion of the Series AA           Preferred
Shares of the Company pursuant to Article 9(a)(2) above. The           conversion of the
Ordinary-Preferred Shares into Ordinary Shares upon the           automatic conversion of
the Series AA Preferred Shares shall not require the           consent of the holders of
Ordinary-Preferred Shares. The Ordinary-Preferred           Shares shall also
automatically be converted into Ordinary Shares as aforesaid           upon the consent
of the holders of at least sixty six percent (66%) of the           issued and then
outstanding Ordinary-Preferred Shares. 

	 	(d) 	The
applicable provisions of Article 9 (b) shall apply, mutatis mutandis, to
          conversions pursuant to sub-paragraphs (a) – (b) of this Article 10. 

	 	(e) 	The
provisions of subparagraphs (c)(6) and (7), (d) to (i) of Article 9 above
               shall apply with respect to the Ordinary-Preferred Shares, mutatis
mutandis. 

- 23 -

	11.  	VOTING
RIGHTS 

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

	12.  	PROTECTIVE
PROVISIONS 

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

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

	 	(2) 	declaration
of any dividend;  

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

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

	 	(5) 	any
transaction of the Company or of any subsidiary thereof, with either or both
               of the Founders, or with any entity affiliated with the Founder(s) in any
way;  

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

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

- 24 -

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

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

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

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

	 	(g) 	Any
amendment or modification of the rights and obligations of the Founders set
               forth in Article 14 (Preemptive Rights), Article 29B(b) (Bring Along),
Article                29C (No Sale) and Article 65(a)(1) (participation of the Founders
in the Board)                shall require the consent of at least one of the Founders. 

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

	 	(i) 	Any
amendment to or modification of these Articles which would adversely amend,
               change or modify the rights, preferences or privileges of the
Ordinary-Preferred                Shares shall require the consent of the holders of at
least 66% of the                Ordinary-Preferred Shares. 

	 	
Furthermore,
the authorization of any additional shares of Ordinary-Preferred Shares or any rights or
securities convertible into or exchangeable for Ordinary-Preferred Shares, or the
conversion of any other class of shares into Ordinary-Preferred Shares or the unification
of the Ordinary-Preferred Shares with another class of shares shall require the consent
of the holders of at least 66% of the Ordinary-Preferred Shares. 

- 25 -

	 	
Notwithstanding
the aforesaid, any amendment, modification, termination or waiver of the provisions of
these Articles that applies to the rights of the holders of Ordinary-Preferred Shares in
the same proportional manner and without treating them proportionally different from the
Series AA Preferred Shares, shall not require the consent of the holders of the
Ordinary-Preferred Shares. For illustration purposes, any change, including cancellation,
of the Secondary Preference Amount, but not the manner of allocation of the Secondary
Preference Amount between the holders of the Series AA Preferred Shares and the holders
of the Ordinary-Preferred Shares as set forth in Article 8(c), shall not require the
consent of the holders of the Ordinary-Preferred Shares. 

	 	(j) 	Until
the QIPO, the Company shall not take, without the consent of the holders
               of at least a majority of the issued and outstanding Preferred Shares of
the                affected class, an action that amends or modifies the rights attached
to such                class of Preferred Shares, provided however that (a) the
authorization or                issuance of a new class of shares with preferential
rights, or (b) a change,                waiver of other modification that applies to the
rights of the Preferred Shares                in the same proportional manner and without
treating a certain series                proportionally different from the other series,
in each case – that was                approved by holders of a majority of the
issued and outstanding Preferred                Shares, shall not be deemed a change
hereunder. 

	 	(k) 	Until
the QIPO, the Company shall not take, without the consent of the holders
               of at least a majority of the issued and outstanding Series BB Preferred
Shares                (which must include also the affirmative consent of the holders of
at least 70%                of the Series BB-1 Preferred Shares that were issued at the
Closing (including                at the Deferred Investment Date as defined in the
Poalim Agreement) to investors                who were not shareholders of the Company
immediately prior to the Closing or                affiliates or Permitted Transferees of
such shareholders,(the “Special                BB Consent”)) an action
that effects (i) any change or waiver of rights                of the Series BB Preferred
Shares that does not apply to the rights of all                Preferred Shares in the
same proportional manner and that treats a certain                series proportionally
differently from the other series; (ii) any waiver of                liquidation
preferences, anti-dilution, board representation or information                rights of
the Series BB Preferred Shares, (iii) an IPO, merger or the sale of                all or
substantially all of the Company’s shares or assets, unless, in each
               such case, the applicable IPO or transaction reflects a price per share of
more                than two times the Original Issue Price of the Series BB-1 Preferred
Shares (a                “Qualified Transaction”), or (iv) conversion of
the Series BB                Preferred Shares, other than as part of, and conditioned
upon the closing of, a                Qualified Transaction. 

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

	13.  	ALLOTMENT
OF SHARES 

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

- 26 -

	14.  	PREEMPTIVE
RIGHTS 

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

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

	 	(2) 	The
Company shall provide each Offeree with a Notice (the “Notice of
               Offer”) specifying the number of Offered Securities he is
entitled to                purchase and which shall state the terms of the proposed
issuance, and any such                Offeree may accept such offer, as to all or any
part of the Offered Securities                so offered to him, by giving the Company
written notice of acceptance within                twenty (20) days after being served
with such Notice of Offer; provided,                however, that the Founders may only
exercise such right for their own benefit                through their available funds,
provided that if the purchase by such                Offeree is being effected
prior to, or concurrently with such issuance of                Offered Securities (rather
than subsequent thereto) then such Offeree shall be                obligated to
consummate the purchase of such Offered Securities only if the                Company
consummates the sale of the balance of the Offered Securities pursuant                to
the terms described in such Notice of Offer  

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

	 	(n) 	Any
Offered Securities not subscribed for by the Offeree as aforesaid, shall be
               under the control of the Board of Directors and may be issued without
regard to                this Article 14, except to the extent that said Offered
Securities may not                be allotted on terms more favorable to the purchaser
than those offered pursuant                to this Article 14. In the event the
Offered Securities are not acquired by                the expiration of 120 days from the
date of expiration of the twenty (20) day                period referred to in Article 14(a)(2),
they may not be issued except by                compliance with the provisions of Article 14. 

- 27 -

	15.  	REGISTERED
HOLDER 

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

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

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

	16.  	SHARE
CERTIFICATE 

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

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

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

	17.  	MODIFICATIONS
OF SHARE RIGHTS 

	 	
If
at any time the share capital is divided into different classes of shares (unless
otherwise provided for by the terms of issue of the shares of that class) it shall be
permitted, subject to the provisions of Article 12 above, to change, convert,
broaden, add or vary in any other manner the rights, advantages, restrictions and
provisions attached at that time to one or more of the classes by a resolution of the
general meeting of the shareholders of the Company, without the need for any separate
class vote or class meeting. 

- 28 -

	 	
It
is hereby clarified that any resolution required to be adopted pursuant to these Articles
by the consent of a separate class of shares, whether by way of a separate general
meeting of such class or by way of written consent, shall be given by the holders of
shares of such class entitled to vote or give consent thereon and no holder of shares of
a certain class shall be banned from voting or consenting by virtue of being a holder of
more than one class of shares of the Company, irrespective of any conflicting interests
that may exist between such different classes of shares. A shareholder shall not be
required to refrain from participating in the discussion, voting and/or consenting on any
resolution concerning an amendment to any class of shares held by such shareholder, due
to the fact that such shareholder may benefit in one way or another from the outcome of
such resolution. 

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

PLEDGE 

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

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

- 29 -

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

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

TRANSFER OF SHARES AND
THE MANAGEMENT THEREOF 

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

Deed of Transfer of Shares  

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

		
	
	

	Transferee	Transferor
	 
	
	

	Address	Address

- 30 -

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

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

	25.  	The
Register shall be closed for a period of seven (7) days before every
               ordinary general meeting of the Company. 

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

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

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

	29.  	RIGHT
OF FIRST REFUSAL 

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

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

	 	(s) 	A
shareholder, desirous of making any Transfer of the shares held by him to
               others, in whole or in part (hereinafter the “Transferor”)
               shall be obligated to offer them first to the Offerees (as defined in
               Article 14 above), by giving notice in writing to such Offerees
               (hereinafter “Sale Notice”). 

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

- 31 -

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

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

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

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

- 32 -

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

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

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

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

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

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

- 33 -

	29A  	CO
SALE

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

	29B  	BRING
ALONG

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

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

	 	
Such
Merger or Acquisition is conditioned upon the consent and/or sale of all of the remaining
issued shares of the Company; then all remaining shareholders (the “Non Proposing
Shareholders”) will be required, if so demanded by the Proposing Shareholders,
to vote in favor of, execute the relevant documents, and otherwise take all necessary and
reasonable actions relating to such Offer, including to sell their shares upon the same
terms and conditions as in the Offer made to the Proposing Shareholders and the proceeds
shall be allocated in accordance with the provisions of Article 8, provided however, that
absent the written consent of the holders of the majority of the outstanding Series BB
Preferred Shares (which must include also the Special BB Consent), the holders of the
Preferred Shares shall not be forced to take any actions or sell their shares as
aforesaid, if the Merger or the Acquisition does not reflect a Company price per share of
more than two times the Original Issue Price of the Series BB-1 Preferred Shares. In the
event that the Threshold Percent is met, any sale, assignment, transfer, pledge,
hypothecation, mortgage, disposal or encumbrance of the Shares by the Non Proposing
Shareholders other than in connection with the Offer, shall be absolutely prohibited. 

- 34 -

	 	(b) 	Any
sale, transfer or exchange of the shares or all or substantially all of the
          assets of the Company pursuant to Article 29B(a) above which gives rise to a
tax           liability of either of the Founders (any such transaction, a “Taxable
          Transaction”) will be dealt with in one (1) of the following two (2)
          ways: 

	 	(1) 	if
the Taxable Transaction is a bona fide transaction with a third
               party unrelated to the Company or any of its directors or shareholders,
the                Taxable Transaction shall be contingent, unless otherwise agreed by
the                Founders, upon the Taxable Transaction’s including the receipt by
each of                the Founders of (A) cash or liquid assets reasonably
acceptable to the                Founders, in either case not subject to transfer
prohibition and in an amount                sufficient to pay each Founder’s tax
liability, if any, in connection with                the Taxable Transaction or (B) a
loan as described in Article 29B(b)(2)                below; or  

	 	(2) 	in
any other event, such transaction shall be contingent, unless otherwise
               agreed by the Founders, upon the Taxable Transaction’s providing for
a loan                to each of the Founders in an amount sufficient to pay his tax
liability, if                any, in connection with the Taxable Transaction, such loan
to be linked to the                U.S. Dollar but without interest and repayable upon
the sale of each Founder of                the shares or other non-cash consideration
received by him in the Taxable                Transaction, and to be non-recourse other
than in respect of such shares or                other non-cash consideration received by
the Founders in the Taxable                Transaction.  

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

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

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

- 35 -

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

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

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

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

- 36 -

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

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

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

	29C.  	NO
SALE 

	 	(a) 	Until
the close of business on December 31, 2005, subject to Articles 29C(b)           and (c)
below and Article 29D below, neither Founder shall make any transfer,
          assignment, pledge, or other disposal (a “Disposition”) of the
          issued and outstanding share capital of the Company held by him upon execution
          of the Star Agreement, and any shares of the Company hereafter acquired by any
          such Founder as a result of his holding of such shares (collectively referred
to           as the: “Limited Shares”), either directly or indirectly. 

	 	(b) 	Notwithstanding
the above, in the event that the Company’s IPO has not           occurred prior to
the expiration of eighteen months following the execution of           the Star
Agreement, (the “Initial Period”) then during each           year
commencing upon the expiration of the Initial Period, each Founder shall be
          entitled to make a Disposition of Limited Shares representing up to an
aggregate           of ten percent (10%) of the Limited Shares held by such Founder (the
          “10% Allowance”), provided however that prior to the IPO, the
          aggregate of such Dispositions shall be not more than twenty five percent (25%)
          of the Limited Shares in the aggregate. Any 10% Allowance not sold by a Founder
          during any one year may be accumulated by such Founder in respect of the
          following year or years. 

	 	(c) 	The
restrictions set forth in this Article 29C shall expire upon and in           connection
with the IPO or on the close of business on December 31, 2005, the           earlier of
the two. Nothing in this Article shall have any effect upon the           requirement to
offer any shares sold as part of the 10% Allowance to the           Offerees as set forth
in Article 29 or to receive the consent of the Board of           Directors to the
transfer of any shares to a competitor of the Company (which           may be obtained
prior to or after offering the shares to the other shareholders)           or upon its
authority to refuse to consent to the share transfer. 

- 37 -

	29D.  	SALE
OF SHARES BY THE FOUNDERS 

	 	
Anything
to the contrary herein notwithstanding, the sale of shares by the Founders pursuant to
the Share Transfer Agreement shall not be subject to the restrictions on transfer set
forth in Articles 29 (“Right of First Refusal”), 29A (“Co Sale”) or
29C (“No Sale”). 

	29E.  	STAND
STILL 

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

CALLS 

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

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

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

- 38 -

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

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

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

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

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

FORFEITURE OF SHARES 

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

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

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

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

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

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

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

MODIFICATION OF CAPITAL 

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

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

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

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

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

INCREASE OF SHARE CAPITAL 

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

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

GENERAL MEETINGS 

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

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

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

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NOTICE OF GENERAL MEETINGS 

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

QUORUM 

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

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

CHAIRMAN 

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

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POWER TO ADJOURN 

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

ADOPTION OF RESOLUTIONS 

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

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

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VOTES OF SHAREHOLDERS 

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

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

	60.  	PROXIES 

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

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

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

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

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INSTRUMENT OF APPOINTMENT 

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

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

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

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

Appointor’s Signature 

	64.  	RESERVED 

	65.  	DIRECTORS 

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

	 	i. 	the
Founders shall be entitled to appoint one (1) director until such time as
               the Founders, together, cease to hold 7% or more of the issued and
outstanding                share capital of the Company on an as-converted basis, after
which they will no                longer have the right to appoint a director. However,
notwithstanding the                previous sentence, during the 18 month period
commencing upon the Closing, such                right to appoint one director shall
continue to apply even if their aggregate                holdings fall below 7% as
aforesaid, until such time as the Founders, together,                cease to hold 5% or
more of the issued and outstanding share capital of the                Company on an
as-converted basis after which they will no longer have the right                to
appoint a director. In the event the Founders will no longer be entitled to
               appoint a director, the directorship which is vacated shall thereafter be
held                by another independent industry expert to be appointed by a majority
of the                other directors appointed pursuant to Articles 65(a)(2)-(3) below,
such that two                directors who are independent industry experts may
thereafter serve on the Board                of Directors;  

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	 	ii. 	each
of Pitango, Star, Genesis and Orbotech shall be entitled to appoint one (1)
               director to the Board of Directors of the Company for so long as it holds
               Preferred Shares constituting more than 5% of the issued and outstanding
share                capital of the Company, on an as converted basis, and thereafter the
               directorship which was vacated shall be held by a director appointed by
the                holders of the majority of the Series AA Preferred Shares not
otherwise entitled                to appoint a director pursuant to this Article
65(a)(2);  

	 	iii. 	Poalim
Ventures shall be entitled to appoint a director for so long as it holds
               Preferred Shares constituting more than 3% of the issued and outstanding
share                capital of the Company, on an as converted basis and thereafter the
directorship                which was vacated shall be held by a director appointed by
the holders of the                majority of the Series BB Preferred Shares;  

	 	iv. 	the
majority of the other directors appointed pursuant to Articles 65(a)(1)-(3)
               above shall be entitled to appoint one (1) director, who shall be an
independent                industry expert; and  

	 	v. 	the
Chief Executive Officer (“CEO”) of the Company shall be a
               director if he or she is appointed as a director by a majority of the
directors                appointed pursuant to Articles 65(a)(1)-( 3) above;  

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

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

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

- 46 -

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

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

	 	(1) 	if
he becomes bankrupt; 

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

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

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

	 	(5) 	with
his death; 

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

	 	(7) 	if
a company, with its liquidation. 

	68.  	ALTERNATIVE
DIRECTOR 

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

	 	(b) 	A
substitute shall have one vote. 

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

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

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

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

	69.  	REMUNERATION
OF DIRECTOR 

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

	70.  	POWER
AND DUTIES 

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

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

CONFLICT OF INTEREST 

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

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

- 48 -

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

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

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

	74.  	FUNCTIONS
OF THE DIRECTORS 

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

	75.  	CHAIRMAN 

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

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

MEETINGS 

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

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

- 49 -

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

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

	78.  	DELEGATION
OF POWER 

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

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

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

	80.  	GENERAL
MANAGER 

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

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

- 50 -

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

	81.  	MINUTES 

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

	 	(1) 	the
names of the members present;  

	 	(2) 	the
matters discussed at the meeting;  

	 	(3) 	the
results of the vote;  

	 	(4) 	resolutions
adopted at the meeting;  

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

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

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

	82.  	RESOLUTION
IN WRITING 

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

	83.  	SEAL,
STAMP AND SIGNATURES 

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

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

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

- 51 -

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

	84.  	BRANCH
REGISTERS 

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

	85.  	THE
SECRETARY, OFFICERS AND ATTORNEYS 

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

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

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

	86.  	DIVIDEND 

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

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

- 52 -

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

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

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

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

	91.  	Reserved. 

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

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

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

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

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

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

- 53 -

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

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

	95.  	FUNDS 

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

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

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

- 54 -

	98.  	ACCOUNTS
AND AUDIT 

	 	
The
Board shall cause correct accounts to be kept:  

	 	(a) 	of
the assets and liabilities; 

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

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

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

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

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

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

NOTICES 

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

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

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

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

- 55 -

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

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

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

	108.  	RESERVED 

	109.  	INDEMNITY 

	 	(a) 	The
Company shall, subject and pursuant to the provisions of the Companies Law,
               indemnify an “Office Holder” of the Company (as such term
is                defined in the Companies Law) for all liabilities and expenses incurred
by him                arising from or as a result of any act (or omission) carried out by
him as an                Office Holder of the Company and which is indemnifiable pursuant
to the                Companies Law, to the maximum extent permitted by law. The Company
may indemnify                an Office Holder post-factum and may also undertake to
indemnify an Office                Holder in advance, provided that, to the extent
required under applicable law,                such undertaking is limited to types of
occurrences which, in the opinion of the                Board of Directors are, at the
time of the undertaking, foreseeable and to an                amount of the Board of
Directors has determined is reasonable in the                circumstances. 

	 	(b) 	The
Company shall, subject and pursuant to the provisions of the Companies Law,
               enter into contracts to insure the liability of Office Holders of the
Company                for any liabilities incurred by him arising from or as a result of
any act (or                omission) carried out by him as an Office Holder of the
Company and for which                the Company may insure Office Holders pursuant to
the Companies Law, to the                maximum extent permitted by law. 

	 	(c) 	The
Company may, subject to the provisions of the Companies Law, procure
               insurance for or indemnify any person who is not an Office Holder
including,                without limitation, any employee, agent, consultant or
contractor of the Company                who is not an Office Holder. 

	 	(d) 	The
Company may, to the maximum extent permitted by law, exempt and release an
               Office Holder, including in advance, from all or part of his or her
liability                for monetary or other damages due to, arising or resulting from,
a breach of his                or her duty of care to the Company. The Directors of the
Company are released                and exempt from all liability as aforesaid to the
maximum extent permitted by                law with respect to any such breach, which has
been or may be committed. 

- 56 -

Schedule 4(viii)  

	 		
	 		
	 		
	 		
	 		
	 	Negevtech FAMILY STATUS 	Version: 1
	 	 
	 	Status report date:  15/08/2005	 

	STC File#	Title	Negevtech detailed comments	Status	Abstract	Independent claims	Country	Application No.	Issued Patent
	44623	METHOD AND SYSTEM FOR FAST ON-LINE ELECTRO-OPTICAL DETECTION OF WAFER DEFECTS	 	The first renewal fee is due by August 17, 2007.	6,693,664 	6,693,664 	USA	 	6,693,664 
	46509	METHOD AND SYSTEM FOR FAST ON-LINE ELECTRO-OPTICAL DETECTION OF WAFER DEFECTS	Gadi's basic concept patent	We are awaiting for response from the European Patent Office, the next renewal fee is due by January 15, 2006.	 	 	Europe	03250255-1	 
	46793	METHOD AND SYSTEM FOR FAST ON-LINE ELECTRO-OPTICAL DETECTION OF WAFER DEFECTS	Gadi's basic concept patent	A request for examination must be filed before January 15, 2006.	 	 	Taiwan	092100777	 
	47513	METHOD AND APPARATUS FOR INSPECTION OF DEFECTS IN A REPETITIVE OBJECT	Gadi's basic concept patent	We are awaiting an Official Action from the Israel Patent Office.	 	 	Israel	153977	 
	47606	METHOD AND SYSTEM FOR FAST ON-LINE ELECTRO-OPTICAL DETECTION OF WAFER DEFECTS	Gadi's basic concept patent	A request for examination must be filed before January 15, 2006.	 	 	Japan	2003-7400	 
	47776	METHOD AND SYSTEM FOR FAST ON-LINE ELECTRO-OPTICAL DETECTION OF WAFER DEFECTS	Gadi's basic concept patent	A request for examination must be filed no later than January 15, 2006.	 	 	China	03100994.8	 
	47607	METHOD AND SYSTEM FOR FAST ON-LINE ELECTRO-OPTICAL DETECTION OF WAFER DEFECTS	Gadi's basic concept patent	A request for examination must be filed before January 15, 2008.	 	 	Korea	2003-2671	 

- 57 -

	 		
	 		
	 		
	 		
	 		
	 	Negevtech FAMILY STATUS 	Version: 1
	 	 
	 	Status report date:  15/08/2005	 

	STC File#	Title	Negevtech detailed comments	Status	Abstract	Independent claims	Country	Application No.	Issued Patent
	44420	SYSTEM FOR DETECTION OF WAFER DEFECTS	Full description & claims on the 302 imaging apparatus (best mode)	Awaiting for response from the U.S. Patent Office.	 	 	USA	10/345,097	 
	53751	SYSTEM FOR DETECTION OF WAFER DEFECTS	 	We are awaiting an Official Action from the U.S. Patent Office.	 	 	USA	11/021,393	 
	55145	GROUP II (Div. Of 44420)	 	 	 	 	USA	 	 
	55069	GROUP III: FOURIER FILTER (Cont. of 44420)	 	 	 	 	USA	 	 
	55247	GROUP IV (Div. Of 44420)	 	 	 	 	USA	 	 
	55070	GROUP V: DARK FIELD (Cont. of 44420)	 	 	 	 	USA	 	 
	55071	GROUP VI: LASER ILLUMINATION (Cont. of 44420)	 	 	 	 	USA	 	 
	55147	GROUP VII (Div. Of 44420)	 	 	 	 	USA	 	 
	55072	GROUP VIII: FIELD CURVATURE (Cont. of 44420)	 	 	 	 	USA	 	 
	55062	SYSTEM FOR DETECTION OF WAFER DEFECTS	 	We await receipt of the serial number as well as a copy of the official Filing Receipt from the European patent office.	 	 	Europe	4701321.4	 
	50446	SYSTEM FOR DETECTION OF WAFER DEFECTS	Full description & claims on the 302 imaging apparatus (best mode)	National Phase filed in Europe, Korea and Taiwan.	 	 	PCT	PCT/IL04/000023	 
	55065	SYSTEM FOR DETECTION OF WAFER DEFECTS	We await receipt of the copy of the official Filing Receipt from the Korean patent office.	 	 	 	South Korea	2005-7013165	 
	50533	SYSTEM FOR DETECTION OF WAFER DEFECTS	Full description & claims on the 302 imaging apparatus (best mode)	We are awaiting an Official Action from the Taiwanese Patent Office.	 	 	Taiwan	93101021	 

- 58 -

	 		
	 		
	 		
	 		
	 		
	 	Negevtech FAMILY STATUS 	Version: 1
	 	 
	 	Status report date:  15/08/2005	 

	STC File#	Title	Negevtech detailed comments	Status	Abstract	Independent claims	Country	Application No.	Issued Patent
	47667	FIBER OPTICAL ILLUMINATION SYSTEM	BF & DF illumination system with the coherence breaking technique	We now await receipt of the letters patent.	 	 	USA	10/345,096	 
	54590	FIBER OPTICAL ILLUMINATION SYSTEM	 	We await receipt of the serial number as well as a copy of the official Filing Receipt from the U.S. patent office.	 	 	USA (Cont. of 47667)	 await receipt	 
	55106	FIBER OPTICAL ILLUMINATION SYSTEM	 	We are awaiting an Official Action from the European Patent Office.	 	 	Europe	4701327.1	 
	50445	FIBER OPTICAL ILLUMINATION SYSTEM	BF & DF illumination system with the coherence breaking technique	National Phase was filed in Taiwan.	 	 	PCT	PCT/IL04/000022	 
	55109	FIBER OPTICAL ILLUMINATION SYSTEM	 	Awaiting signed documents.	 	 	South Korea	2005-7013118	 
	50532	FIBER OPTICAL ILLUMINATION SYSTEM	BF & DF illumination system with the coherence breaking technique	We are awaiting an Official Action from the Taiwanese Patent Office.	 	 	Taiwan	093101034	 

- 59 -

	 		
	 		
	 		
	 		
	 		
	 	Negevtech FAMILY STATUS 	Version: 1
	 	 
	 	Status report date:  15/08/2005	 

	STC File#	Title	Negevtech detailed comments	Status	Abstract	Independent claims	Country	Application No.	Issued Patent
	51427	PROGRAMMABLE SPATIAL FILTER FOR WAFER INSPECTION	MEMS based programmable spatial filter	We are awaiting an Official Action from the U.S. Patent Office.	 	 	USA	10/890,800	 

- 60 -

	 		
	 		
	 		
	 		
	 		
	 	Negevtech FAMILY STATUS 	Version: 1
	 	 
	 	Status report date:  15/08/2005	 

	STC File#	Title	Negevtech detailed comments	Status	Abstract	Independent claims	Country	Application No.	Issued Patent
	53885	MULTI MODE INSPECTION METHOD AND APPARATUS	FPA that allows simple and economical CCD packing+ concept for simultaneous BF&DF	We await receipt of the serial number as well as a copy of the official Filing Receipt from the U.S. Patent Office.	 	 	USA	await receipt	 
	52169	MULTI MODE INSPECTION METHOD AND APPARATUS	FPA that allows simple and economical CCD packing+ concept for simultaneous BF&DF	PCT filed.	 	 	USAPROVISIONAL	60/587,675	 
	55334	MULTI MODE INSPECTION METHOD AND APPARATUS	 	Preparing application for filing.	 	 	Israel	Not filed yet	 
	53886	MULTI MODE INSPECTION METHOD AND APPARATUS	FPA that allows simple and economical CCD packing+ concept for simultaneous BF&DF	A requst for preliminary examination must be filed by February 12, 2006.	 	 	PCT	PCT/IL2005/000708	 

- 61 -

	 		
	 		
	 		
	 		
	 		
	 	Negevtech FAMILY STATUS 	Version: 1
	 	 
	 	Status report date:  15/08/2005	 

	STC File#	Title	Negevtech detailed comments	Status	Abstract	Independent claims	Country	Application No.	Issued Patent
	53603	METHOD AND APPARATUS FOR DETECTING DEFECTS IN WAFERS	Image processing of the 302	We are awaiting an Official Action from the U.S Patent Office.	 	 	USA	11/069,712	 
	53604	METHOD AND APPARATUS FOR DETECTING DEFECTS IN WAFERS INCLUDING ALIGNMENT OF THE WAFER IMAGES SO AS TO INDUCE THE SAME SMEAR IN ALL IMAGES	Image processing of the 302	We are awaiting an Official Action from the U.S. Patent Office.	 	 	USA	11/068,711	 

	 	
Domain Name: negevtech. com

Unregistered Trademark: Step&Image 

- 62 -

Schedule 4(ix) –
Company’s Capitalization (on a fully diluted basis)  

	Name
	#
Ordinary
	#
Warrants
to
purchase
Ordinary
	#
Ordinary-Preferred
	# Ordinary
(Ordinary-Prefer
Shares
adjustment
upon
conversation)
	#
Preferred
AA
	#
Warrants
to
purchase
Preferred
AA
	#
Preferred
BB-2
(including
15%
discount)
	#
Preferred
BB-1 (4)
	#
Preferred
BB-1
(Bridge
Loans
	#
Warrants
to
purchase
Preferred
BB-1
	# Total

Shares
	% Issued &

Outstanding

on an as

converted

basis
	# Total

Fully

Diluted on

an as

converted

basis
	% Fully

Diluted on

an as

converted

basis

	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gadi Neumann	 	 	 	 	 	 	 	 	 	784,502	 	 	433,668	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,218,170	 	 	4.41	%	 	1,218,170	 	 	3.38	%
	David Alumot	 	 	 	 	 	 	 	 	 	784,502	 	 	433,668	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,218,170	 	 	4.41	%	 	1,218,170	 	 	3.38	%
	Pitango Venture	 	 
	Capital Fund III	 	 
	(Israeli Sub) L.P.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,902,420	 	 	201,465	 	 	861,590	 	 	146,804	 	 	1,230,319	 	 	 	 	 	5,141,133	 	 	18.63	%	 	5,342,597	 	 	14.84	%
	Pitango Venture	 	 
	Capital Fund III	 	 
	(Israeli Sub.)	 	 
	Non-Q L.P.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	268,316	 	 	18,624	 	 	79,650	 	 	13,571	 	 	113,738	 	 	 	 	 	475,275	 	 	1.72	%	 	493,899	 	 	1.37	%
	Pitango Venture	 	 
	Capital Fund III	 	 
	(Israeli	 	 
	Investors) L.P.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	784,811	 	 	54,475	 	 	233,002	 	 	39,696	 	 	332,677	 	 	 	 	 	1,390,185	 	 	5.04	%	 	1,444,660	 	 	4.01	%
	Pitango JP Morgan	 	 
	Fund III (Israel),	 	 
	L.P.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	447,636	 	 	36,734	 	 	 	 	 	 	 	 	 	 	 	 	 	 	447,636	 	 	1.62	%	 	484,371	 	 	1.35	%
	Pitango Principles	 	 
	Fund III (Israel)	 	 
	L.P.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	102,165	 	 	7,092	 	 	30,332	 	 	5,167	 	 	43,307	 	 	 	 	 	180,971	 	 	0.66	%	 	188,063	 	 	0.52	%
	Pitango Venture	 	 
	Capital Fund II	 	 
	Trusts 2000 L.P.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	204,330	 	 	14,184	 	 	60,660	 	 	10,335	 	 	86,614	 	 	 	 	 	361,940	 	 	1.31	%	 	376,124	 	 	1.04	%
	Canada Israel	 	 
	Opportunity Fund	 	 
	III, L.P.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	45,308	 	 	2,520	 	 	7,308	 	 	 	 	 	9,544	 	 	 	 	 	62,160	 	 	0.23	%	 	64,680	 	 	0.18	%
	Shrem, Fudim,	 	 
	Kelner Founders	 	 
	Group II L.P.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	45,308	 	 	2,520	 	 	7,209	 	 	 	 	 	9,544	 	 	 	 	 	62,060	 	 	0.22	%	 	64,580	 	 	0.18	%
	Shrem Fudim Kelner	 	 
	& Co. Ltd.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	30,187	 	 	1,679	 	 	4,932	 	 	 	 	 	 	 	 	 	 	 	35,119	 	 	0.13	%	 	36,798	 	 	0.10	%
	Qualitau Ltd.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	355,522	 	 	26,879	 	 	 	 	 	 	 	 	 	 	 	 	 	 	355,522	 	 	1.29	%	 	382,401	 	 	1.06	%
	SVE Star Ventures	 	 
	Enterprises Gmbh &	 	 
	Co. No. IX KG.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,224,297	 	 	318,075	 	 	635,475	 	 	5,293	 	 	515,913	 	 	 	 	 	3,380,979	 	 	12.25	%	 	3,699,054	 	 	10.27	%
	Star Management of	 	 
	Investments No. II	 	 
	(2000) L.P.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	321,275	 	 	45,943	 	 	68,535	 	 	571	 	 	55,667	 	 	 	 	 	446,049	 	 	1.62	%	 	491,992	 	 	1.37	%
	Star Growth	 	 
	Enterprise, a	 	 
	German Civil Law	 	 
	Partnership (with	 	 
	limitation of	 	 
	Liability)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,045,227	 	 	1,813,653	 	 	433,511	 	 	 	 	 	3,292,391	 	 	11.93	%	 	3,292,391	 	 	9.14	%
	SVM Star Ventures	 	 
	Managmenttgesellschaft	 	 
	mbH Nr. 3	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	334,236	 	 	 	 	 	 	 	 	334,236	 	 	1.21	%	 	334,236	 	 	0.93	%
	Genesis Partners	 	 
	II, L.D.C.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,773,948	 	 	253,679	 	 	490,760	 	 	278,018	 	 	415,934	 	 	 	 	 	2,958,659	 	 	10.72	%	 	3,212,338	 	 	8.92	%
	Genesis Partners	 	 
	II (Israel) L.P.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	262,512	 	 	37,535	 	 	72,426	 	 	41,030	 	 	61,384	 	 	 	 	 	437,353	 	 	1.58	%	 	474,888	 	 	1.32	%
	Lehman Brothers	 	 
	European Venture	 	 
	Capital L.P.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	222,108	 	 	41,998	 	 	 	 	 	 	 	 	 	 	 	 	 	 	222,108	 	 	0.80	%	 	264,106	 	 	0.73	%
	Lehman Brothers	 	 
	Holdings plc (on	 	 
	behalf of pre-tax	 	 
	plan)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	425,109	 	 	80,384	 	 	 	 	 	 	 	 	 	 	 	 	 	 	425,109	 	 	1.54	%	 	505,493	 	 	1.40	%
	Lehman Brothers	 	 
	Partnership	 	 
	Account 2000/2001,	 	 
	L.P.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	191,536	 	 	36,217	 	 	 	 	 	 	 	 	 	 	 	 	 	 	191,536	 	 	0.69	%	 	227,754	 	 	0.63	%
	Lehman Brothers	 	 
	Offshore	 	 
	Partnership	 	 
	Account 2000/2001,	 	 
	L.P.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	49,677	 	 	9,393	 	 	 	 	 	 	 	 	 	 	 	 	 	 	49,677	 	 	0.18	%	 	59,070	 	 	0.16	%
	Orbotech	 	 
	Technology	 	 
	Ventures L.P.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,776,860	 	 	335,988	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,776,860	 	 	6.44	%	 	2,112,848	 	 	5.87	%
	Intel Atlantic,	 	 
	Inc.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	710,745	 	 	134,395	 	 	 	 	 	 	 	 	 	 	 	 	 	 	710,745	 	 	2.58	%	 	845,140	 	 	2.35	%
	Poalim Ventures	 	 
	Ltd.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	381,027	 	 	 	 	 	 	 	 	381,027	 	 	1.38	%	 	381,027	 	 	1.06	%
	Poalim Ventures I	 	 
	Ltd.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	586,194	 	 	 	 	 	 	 	 	586,194	 	 	2.12	%	 	586,194	 	 	1.63	%
	Poalim Ventures	 	 
	II  L.P.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,188,509	 	 	 	 	 	 	 	 	1,188,509	 	 	4.31	%	 	1,188,509	 	 	3.30	%
	Financiere Seso S.A	 	 	 	159,620	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	159,620	 	 	0.58	%	 	159,620	 	 	0.44	%
	Inter Hightech	 	 
	(1982) Ltd.	 	 
	(Previously TICI)	 	 	 	71,829	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	71,829	 	 	0.26	%	 	71,829	 	 	0.20	%
	Service Providers	 	 	 	 	 	 	32,769	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.00	%	 	32,769	 	 	0.09	%
	TICI	 	 	 	 	 	 	87,791	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.00	%	 	87,791	 	 	0.24	%
	ESOP IL Plan(2)(3)	 	 	 	37,500	 	 	4,637,003	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	37,500	 	 	0.14	%	 	4,674,503	 	 	12.98	%
	ESOP US Plan	 	 	 	 	 	 	430,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.00	%	 	430,000	 	 	1.19	%
	Plenus	 	 
	Technologies Ltd (1)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,556,437	 	 	 	 	 	0.00	%	 	1,556,437	 	 	4.32	%
	Total 	  	  	  	268,949 	  	  	5,187,563 	  	  	1,569,004 	  	  	867,336 	  	  	13,144,070 	  	  	1,659,779 	  	  	3,597,106 	  	  	4,844,104 	  	  	3,308,152 	  	  	1,556,437 	  	  	27,598,721 	  	  	100 	% 	  	36,002,500 	  	  	100 	% 

     (1)
          including 349,228 warrants to purchase Series BB-1 Preferred Shares of the
          Company issued to Plenus in connection with a loan of US$4.5M previously granted
          to the Company and 1,207,209 warrants to purchase Series BB-1 Preferred Shares
          of the Company to be issued to Plenus in connection with a loan and a line of
          credit of up to US$10M, subject to Closing. 

     (2)
          The 37,500 Ordinary Shares are held by Eli Lerner, CPA as trustee under the
          Company’s ESOP 

     (3)
          Includes 1,368,934 options to purchase Ordinary Shares of the Company granted to
          Arnon Gat, the Company’s CEO. Such number of Shares includes an Adjustment
          (as provided for and defined in Mr. Gat’s employment agreement with the
          Company) in connection with an investment of US$23M and is still subject to
          Adjustment in connection with an investment of US$2M. 

     (4)
          Does not reflect a possible Deferred Investment of up to US$7 million that may
          be held until December 12, 2005 at the same price per share of the Series BB
          Preferred Share Financing. 

- 63 -

SCHEDULE 4(xiii)  

Material Agreements  

	1. 	Please
see reference to Sections 4(ii) of the Disclosure Schedule for certain
          agreements listed therein. 

	2. 	The
Company provided its directors with Indemnification and Release Letters with
          respect to acts or omissions taken or not taken in their capacity as directors,
          officers and consultants of the Company. 

	3. 	The
Company is bound by a Lease Agreement dated February 22, 2000 and two           addendums
thereto dated February 15, 2000, November 8, 2001 and September 2005           with
Dorban Investments Ltd. regarding the Company’s offices at 12 Hamada
          Street, Rehovot (collectively, the “Lease Agreement”). 

	4. 	The
Company has provided a bank guarantee in connection with the Lease Agreement           in
the amount of NIS 526,620 dated November 20, 2000, which was extended on May
          29, 2005 (the amount of the extended guarantee is NIS 565,304.56 linked to the
          consumer price index). 

	5. 	The
Company entered into the SESO Cooperation Agreement with SESO. 

	6.  	The
Company entered into the TICI Cooperation Agreement dated February 15, 2000
          with TICI and to an NDA with TICI. 

	7. 	The
Series A and B Preferred Share Purchase Agreement dated January 2000. 

	8. 	The
Series C Preferred Share Purchase Agreement dated September 2000. 

	9. 	The
Company has contracted to provide its directors and the directors of its           wholly
owned subsidiary, Negevtech, Inc., with Directors and Officers liability
          insurance with a coverage limit of US$5 million. 

	10. 	Lease
Agreement with Eldan Car Rent (1965) Ltd. dated April 17, 2000. 

	11. 	The
Series D Preferred Share Purchase Agreement dated May 15, 2002. 

	12. 	Shareholders
Right Agreement (SRA) dated September 13, 2005, between the           Company, the
Founders, Plenus Technologies Ltd. and Investors (as such term           defined in the
SRA). 

	13. 	Intel
Side Agreement dated July 31, 2002 between the Company, Intel Atlantic,           Inc.,
the Founders and each of the purchasers of Series D Preferred Stock of the
          Company. 

- 64 -

	14. 	Agreements
and other related documents executed with Bank Leumi le-Israel B.M.           in
connection with a certain loan extended by Bank Leumi in the aggregate amount
          of $2,500,000 (the Microscope loan). Such Agreements include, inter alia, loan
          agreement, letter of undertaking, debenture creating a floating charge, fixed
          charge over the Microscope, general negative pledge. 

	15. 	Letter
of Undertaking in favor of Bank Leumi le-Israel B.M. dated January 2005. 

	16. 	Engagement
Letter dated September 14, 2004 executed with Bear, Stearns & Co.           Inc. 

	17. 	Agreement
(Transition Agreement) dated December 2004 between the Company and the           Founders
(as defined in the Disclosure Schedule), as amended. Share Transfer           Agreement
dated September 13, 2005 between the Company, the Founders and the           purchaser of
the Founders’ shares. 

	18. 	Services
Agreement dated December 2004 between the Company and Mr. Gadi Neumann. 

	19. 	Services
Agreement dated December 2004 between the Company and Mr. David Alumot. 

	20. 	Employment
Agreement dated November 21, 2004 by and between the Company and Mr.           Arnon Gat.
Option Agreement dated November 2004 between the Company and Mr.           Arnon Gat.
Services Agreement dated November 21, 2004 between the Company’s           US
subsidiary and AGC LLC (wholly-owned by Arnon Gat). 

	21. 	Undertakings
and related documents to the Office of Chief Scientist in the           Ministry of
Industry, Trade and Employment and with the Investment Center. 

	22. 	Series
BB Preferred Share Purchase Agreement dated September 13, 2005 and the
          associated agreements and transaction documents. 

	23. 	The
Company Appointed Hoffman, Wasson & Gitler, PC to represent the Company           in
the US Patent and Trademark Office in connection with the Company’s           Patent
applications and any continuation thereof. 

	24. 	Agreement
dated October 20, 2004, between the Company and Morrison &          Foerster L.L.P,
IP litigation legal counsels US corporate counsel Company. 

	25. 	Sales
Agreement dated July 28, 2005 between the Company and Sarnoff Corporation           Inc. 

	26. 	Joint
Development Agreement dated September 2005 between the Company and Samsung
          Electronics Co. 

- 65 -

	27. 	Sales
Representative Agreement dated December 1, 2004, between the Company and
          Hermes-Epitek Corp. 

	28. 	Memorandum
of Understanding dated November 9, 2004, between the Company and           Canon Sales
Co., Inc. 

	29. 	Cooperation
Agreement dated July 1, 2003 (extended in July 2004), between the           Company and
JNC Co. Ltd. 

	30. 	Consulting
Agreement dated October 11, 2004, between the Company and Shai           Silberstein. 

	31. 	Representation
Agreement dated June 14, 2004, between the Negevtech Inc. and           Palmborg
Associates, Inc. 

	32. 	Lease
Agreement dated June 20, 2005, between Negevtech Inc. and Devane Realty           LLC, in
respect of Offices in Alvin Devane, Austin, Texas. The US Subsidiary           provided
the landlord a security deposit in the amount of US$ 1,318.18. 

	33. 	Lease
Agreement dated May 1, 2002, between Negevtech Inc. and Lakeside Drive           Inc., in
respect of Offices in Lakeside Drive, Santa Clara, California. The US
          Subsidiary provided the landlord a letter of credit in the amount of US$
50,000. 

	34. 	Agreements
(terms and conditions) related to the sale of the Company’s           systems (such
as: Hynix Semiconductor, Inc., Micron Technology Inc., Spansion           LLC, Infineon
Technologies, Fraunhofer Gesellschaft). 

	35. 	Purchase
Order from Eastman Kodack Company in the amount of US$342,000. 

	36. 	Purchase
Order to Eastman Kodack Company in the amount of US$342,000. 

	37. 	2
Purchase Orders to SESO Company in the total amount of US$619,105. 

	38. 	Purchase
Order to Sela electronic systems inc. Company in the amount of           US$260,590. 

	39. 	Purchase
Order to Brooks automation Company in the amount of US$290,200. 

	40. 	Purchase
Order to Shemer Matechet Ltd. Company in the amount of US$309,540. 

- 66 -

Exhibit A – Form of
the Warrant  

Execution Copy  

NEGEVTECH, LTD. (the
“Corporation”)  

THIS WARRANT HAS BEEN, AND THE
WARRANT SHARES (AS DEFINED HEREIN) WHICH MAY BE PURCHASED UPON THE EXERCISE OF THIS
WARRANT MAY BE, ACQUIRED SOLELY FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), THE ISRAELI
SECURITIES LAW – 1968 (THE “LAW”) OR ANY APPLICABLE STATE OR COMPARABLE
SECURITIES LAW OF A U.S. OR NON-U.S. JURISDICTION. SUCH SECURITIES MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN
OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH SALE, OFFER,
PLEDGE OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF THE ACT, THE LAW AND OF ANY APPLICABLE STATE OR COMPARABLE SECURITIES LAW
OF A U.S. OR NON-U.S. JURISDICTION. 

VOID AFTER THE TERMINATION DATE. 

WARRANT 

        THIS
CERTIFIES THAT, for value received, Plenus Technologies Ltd.
(“Plenus”), or any other Holder (as defined in Section 1 hereof) is
entitled to purchase from the Corporation, during the period from the date hereof until
the Termination Date (as defined below) up to 1,207,209 fully paid shares of the
Corporation’s BB-1 Preferred Shares, having all rights, privileges and preferences,
contractual, economic or otherwise, attached to such class of shares or otherwise granted
to any holder of such class of shares (the “Warrant Shares”), at
an exercise price of $2.3194 per Warrant Share as may be adjusted pursuant to Section 4
below (the “Exercise Price”), subject to the provisions and upon the
terms and conditions hereinafter set forth in this Warrant. 

         1.       
          Definitions. 

        As
used herein the following defined terms shall have the meaning ascribed to them in this
Section as follows: 

        “Convertible
Securities” shall mean options or warrants to purchase, or rights to subscribe
for, shares of the Corporation, or securities that by their terms are convertible into or
exchangeable for equity securities of the Corporation, or options or warrants to purchase,
or rights to subscribe for, such convertible or exchangeable securities. 

- 67 -

        “Holder”
shall mean Plenus and/or any other third party to whom this Warrant is assigned or
transferred in accordance with the terms hereof. 

        “IPO”
shall mean the consummation of an initial public offering of the Corporation’s
securities. 

        “Issuance
of Additional Shares” shall mean the issuance of ‘Additional Securities’ as
such term is defined in the Corporation’s Articles of Association as may be in
effect from time to time.  

        “M&A
Transaction” shall mean the consummation of (a) a transaction or a series of
transactions for the sale or other disposition of all, or substantially all, of the assets
or business of the Corporation, or (b) a transaction or a series of transactions,
including, without limitation, a merger or consolidation, whereby, or as a result thereof,
the Corporation’s shareholders immediately prior thereto hold 50% or less of the
voting power of the Corporation, the surviving entity or the new entity (as the case may
be) or no longer have the power or the right to appoint more than fifty (50%) percent of
the members of the board of directors of such entity. 

        “Realization
Event” shall mean an IPO or M&A Transaction. 

        “Termination Date”
shall mean the earlier to occur of: (i) October 11, 2014; (ii) the consummation of an IPO;
or (iii) the consummation of an M&A Transaction in which the consideration for the
assets or shares disposed of is paid in cash, publicly traded securities or a combination
thereof. 

        Capitalized
terms not otherwise defined herein, shall have the meaning ascribed to them in the Loan
Agreement, dated as of October 11, 2005, between the Corporation, Plenus II, L.P. and
Plenus II (D.C.M.). Limited Partnership. 

         2.       
          Method of Exercise; Payment. 

		    (a)        Cash
Exercise. The purchase rights represented by this Warrant may be           exercised
by the Holder, in whole or in part, by the surrender of this Warrant           (with the
Notice of Exercise form attached hereto as Exhibit A duly executed) at
the principal office of the Corporation, and by the           payment to the Corporation,
by cash, cashier’s check, certified check, or           other check or method
acceptable to the Corporation, of an amount equal to the           Exercise Price
multiplied by the number of the Warrant Shares being purchased.  

		    (b)        Net
Exercise. In lieu of the payment method set forth in Section 3(a)           above,
the Holder may elect to exchange the Warrant for a number of the           applicable
class of Warrant Shares equal to the number of Warrant Shares           computed using
the following formula by surrendering this Warrant to the           Corporation at the
principal offices of the Corporation accompanied with the           Notice of Exercise
attached hereto as Exhibit A:  

	 	        X
= Y(A-B) 

	 	                    A 

	 	        Where X =
the number of Warrant Shares to be issued to the Holder.  

	 	                     Y=
the number of Warrant Shares purchasable under the Warrant (adjusted to the date of such
calculation, but excluding Warrant Shares already issued under this Warrant). 

	 	                     A=
the Fair Market Value (as defined below) of one Warrant Share.  

	 	                     B =
Exercise Price (as adjusted to the date of such calculation).  

- 68 -

	 	        Upon
completion of the calculation, if X is a negative number, then X shall be deemed to be 0
(zero). 

	 	        “Fair
Market Value” of a Warrant Share shall mean:  

		    (i)        In
the event of an M&A Transaction – the price per Warrant Share
          (assuming conversion of the Warrant Shares, adjusted to the date of such
          calculation, but excluding those shares already issued under this Warrant) as
          determined in such transaction.  

		    (ii)        In
the event of an IPO – the public offering price (before deduction of
          discounts, commissions or expenses) in such offering.  

		    (iii)        If
the Fair Market Value for a Warrant Share cannot be determined in the manner
          set forth above in items (i)-(ii), then the Fair Market Value of a Warrant
Share           shall be as determined in good faith by the Corporation and the Holder
or, if           they fail to so determine, by the Corporation’s auditor.  

		    (c)        Conditional
Exercise. In the event that the Holder intends to exercise           this Warrant
upon a Realization Event, the Holder shall be entitled to condition           such
exercise on the consummation of a Realization Event and shall indicate same           on
the Notice of Exercise and, having done so, the Holder will only be required           to
pay the applicable aggregate Exercise Price if, and at such time as, the
          Realization Event is consummated. For the avoidance of doubt, an exercise
          conditioned on the consummation of a Realization Event in accordance with the
          provisions of this Section 2(c) shall be considered as an exercise prior to the
          Termination Date provided that the Notice of Exercise is received by the
Company           prior to the Realization Event.  

		    (d)        Share
Certificates; Partial Exercise. In the event of any exercise of the           rights
represented by this Warrant, certificates for the applicable class and           amount
of Warrant Shares so purchased shall be delivered to the Holder promptly           and,
unless this Warrant has been fully exercised in accordance with Sections           2(a)
or 2(b) hereof, a new Warrant representing the balance of the Warrant           Shares
with respect to which this Warrant shall not have been exercised shall           also be
issued to the Holder within such time.  

         3.       
          Share Fully Paid; Reservation of Shares. All of the Warrant
          Shares issuable upon the exercise of the rights represented by this Warrant
          will, upon issuance and receipt of the Exercise Price therefor, be fully paid
          and non-assessable, and free from all taxes, liens and charges. At all times
          when this Warrant may be exercised, the Corporation shall have authorized and
          reserved for issuance sufficient shares, free from pre-emptive rights, of its
          Warrant Shares to provide for the exercise of the rights represented by this
          Warrant, so that this Warrant may be exercised without additional authorization
          of share capital, after giving effect to all other Convertible Securities. 

         4.       
          Adjustments. The number and class of securities purchasable
          upon the exercise of this Warrant and the Exercise Price therefor shall be
          subject to adjustment from time to time upon the occurrence of certain events,
          as follows: 

- 69 -

		    (a)        Reclassification.
In case of any reclassification or change of the           applicable class of Warrant
Shares issuable at such time (other than a change in           par value, or as a result
of a subdivision or combination), the Corporation           shall execute and issue a new
Warrant, providing that the Holder shall have the           right to exercise such new
Warrant, and procure upon such exercise and payment           of the same aggregate
Exercise Price, in lieu of such applicable class of           Warrant Shares theretofore
issuable upon exercise of this Warrant, the class and           amount of shares, other
securities, money and property receivable upon such           reclassification or change,
by a holder of an equivalent number of such           applicable class of Warrant Shares.
Such new warrant shall provide for           adjustments that shall be as nearly
equivalent as may be practicable to the           adjustments provided for in this
Section 4 or as shall be necessary in order to           ensure the integrity of the
Holder’s economic rights. The provisions of           this subsection (a) shall
similarly apply to successive reclassifications or           changes.  

		    (b)        Share
Splits, Dividends, Combinations and Reorganizations. In the event           that the
Corporation shall at any time subdivide the outstanding applicable           class of
Warrant Shares or shall issue a share dividend on its outstanding           applicable
class of Warrant Shares, the number of Warrant Shares issuable upon           exercise of
this Warrant immediately prior to such subdivision or to the           issuance of such
share dividend shall be proportionately increased, and the           Exercise Price shall
be proportionately decreased. In the event that the           Corporation shall at any
time combine the outstanding shares of the applicable           class of Warrant Shares,
the number of shares of the applicable class of Warrant           Shares issuable upon
exercise of this Warrant immediately prior to such           combination shall be
proportionately decreased, and the Exercise Price shall be           proportionately
increased. Similar equitable adjustments will be made in the           event any
spin-off, split-off or other capital change transaction by the           Corporation.  

		    (c)        General
Protection. The Corporation will not by amendment of its           Memorandum of
Association or Articles or through any reorganization, transfer of           assets,
consolidation, merger, dissolution, issuance or sale of its securities           or any
other voluntary action, avoid, or seek to avoid, the observance or           performance
of any of the terms to be observed or performed hereunder, but will           at all
times in good faith assist in the carrying out of all provisions hereof           and in
taking of all such actions and making all such adjustments as may be           necessary
or appropriate in order to protect the rights of the Holder against           any
impairment.  

         5.       
          Notice of Adjustments. Whenever the number of shares of the
          applicable class of Warrant Shares purchasable hereunder or the Exercise Price
          thereof shall be adjusted pursuant to Section 4 hereof, the Corporation shall
          provide written notice to the Holder setting forth, in reasonable detail, the
          event requiring the adjustment, the amount of the adjustment, the method by
          which such adjustment was calculated, and the number and class of shares of the
          applicable class of Warrant Shares which may be purchased and the Exercise Price
          therefor after giving effect to such adjustment. 

         6.       
          Fractional Shares. This Warrant may not be exercised for
          fractional shares. In the event of fractional shares, the Corporation shall
          round the number of Warrant Shares issuable upon such exercise down to the
          nearest whole share and shall pay an amount in cash to the Holder equal to any
          such fractional share. 

- 70 -

         7.       
          Representations and Covenants of the Corporation. The
          Corporation represents and covenants to the Holder as follows: 

		    (a)        All
corporate actions on the part of the Corporation, its officers, directors           and
shareholders necessary for the sale and issuance of the Warrant and the           Warrant
Shares and the performance of the Corporation’s obligations           hereunder have
been taken and are effective as of the Effective Date. The           Corporation
undertakes that all additional corporate actions on the part of the
          Corporation, its officers, directors and shareholders as may be required in
          connection with an adjustment pursuant hereto and/or the creation, sale and
          issuance of the New Shares, will be taken as promptly as practicable.  

		    (b)        As
of the date of exercise of this Warrant, the Corporation shall record the
          Holder in the Corporation’s internal share register in accordance with the
          applicable law and practice, as the owners, direct or beneficial, of the
Warrant           Shares pursuant to the names provided by the Holder in the Notice of
Exercise           (Exhibit A) to this Warrant.  

    8.        Restrictions
Upon Transfer.  

		    (a)        All
transfers of this Warrant shall be accompanied by an executed warrant           transfer
deed, under which the transferee undertakes to be bound by all           obligations of
the Holder under this Warrant. The form of the deed of transfer           is attached
hereto as Exhibit B. The Corporation need not           register a
transfer of this Warrant unless the proposed transferee agrees to be           bound by
the terms and conditions of this Warrant.  

		    (b)        Any
transfer of the Warrant to a non-Israeli company or resident shall be           subject
to the provisions of the Encouragement Law.  

         9.       
          No Rights of Shareholders. The Holder shall not be
          entitled, as a Warrant holder, to vote or receive dividends or be deemed the
          holder of the shares of the applicable class of Warrant Shares or any other
          securities of the Corporation which may at any time be issuable on the exercise
          of this Warrant for any purpose, nor shall anything contained herein be
          construed to confer upon the Holder, as such, any of the rights of a shareholder
          of the Corporation or any right to vote for the election of directors or upon
          any matter submitted to shareholders at any meeting thereof, or to give or
          withhold consent to any corporate action (whether upon any recapitalization,
          issuance of shares, reclassification of shares, change of par value,
          consolidation, merger, conveyance, or otherwise) or to receive notice of
          meetings, or to receive dividends or subscription rights or otherwise until the
          Warrant shall have been exercised and the shares of the applicable class of
          Warrant Shares purchasable upon the exercise hereof shall have become
          deliverable, as provided herein. Upon the exercise of this Warrant the Holder
          shall be entitled to receive the same anti dilution or price protection rights
          on the Warrant Shares as shall then be in effect with respect to the holders of
          such class of shares of the Corporation. 

         10.       
          Notices. All notices and other communications required or
          permitted hereunder shall be in writing and shall be mailed by registered mail,
          postage prepaid, telecopied (faxed) or electronically mailed or delivered by
          hand to the following addresses: 

- 71 -

If to the
Corporation: Negevtech Ltd.  

	 	
12 Hamada Street, P.O.B 2264

Rehovot 76122, Israel

Attention: Oz Desheh

Faximile: 972-8-9366051

E-mail: oz_desheh@negevtech.com

 

If to Plenus: Plenus
Technologies Ltd.  

	 	
16 Abba Eben Avenues

Herzliya Pituach

Israel

Attentionn: Shlomo Karako

Facsimile:  972-9-957-8770

E-mail: momik@plenus.co.il
 

or to such other address with respect
to a party as such party shall notify the other party in writing as above provided. Any
notice sent in accordance with this Section 10 shall be effective (i) if mailed by
registered mail, three (3) business days after mailing, (ii) if sent via telecopier (fax)
or electronic mail, upon transmission and electronic confirmation of receipt or – if
transmitted and received on a non-business day – on the first business day following
transmission and electronic confirmation of receipt, and (iii) if delivered by hand, upon
delivery. 

         11.       
          Registration Rights. Upon the exercise of the Warrant, the
          Holder will be entitled to all registration rights with respect to the Warrant
          Shares to be issued, as have been granted with respect to shares of the
          Corporation of the same class of the Warrant Shares under the Shareholders
          Rights Agreement dated September 13, 2005. by and between the Corporation
          and the parties thereto, and as may further be amended from time to time (the
          “Registration Rights Agreement”), and the Holder shall be
          deemed to have become a party to the Registration Rights Agreement upon such
          exercise. 

         12.       
          Preemptive Rights. Until an IPO, if the Corporation
          proposes Issuance of Additional Shares, it shall deliver to the Holder twenty
          (20) days prior written notice thereof in order to enable the Holder, if the
          latter so wishes, to exercise the Warrant and thereupon be vested with pre
          emptive rights to purchase its proportionate share of such Additional Shares,
          based on its proportionate share holdings in the share capital of the
          Corporation, subject to the Articles of the Corporation as shall be in effect
          from time to time. 

         13.       
          Governing Law. This Warrant and all actions arising out of,
          or in connection with, this Warrant shall be exclusively governed by, and
          construed in accordance with, the laws of the State of Israel. 

         14.       
          Partial Invalidity. If any provision of this Warrant is
          held by a court of competent jurisdiction to be invalid or unenforceable under
          applicable law, then such provision shall be excluded from this Warrant and the
          remainder of this Warrant shall be interpreted as if such provision were so
          excluded and shall be enforceable in accordance with its terms; provided,
          however, that in such event this Warrant shall be interpreted so as to
          give effect, to the greatest extent consistent with and permitted by applicable
          law, to the meaning and intention of the excluded provision. 

- 72 -

         15.       
          Currency. The term “dollars” or the symbol
          “$” appearing in this Warrant shall mean the legal currency of the
          United States of America, and all payments hereunder shall be made in such
          currency, unless otherwise agreed in writing by the Holder and the Corporation. 

Issued this 6 day of
November, 2005. 

NEGEVTECH, LTD. 

By:
_______________________, 

Title:
______________________ 

Agreed and accepted: 

PLENUS TECHNOLOGIES LTD. 

By:
________________________ 

Title:
_______________________ 

- 73 -

EXHIBIT A  

NOTICE OF EXERCISE  

Negevtech, Ltd. 

12 Hamada Street, P.O.B
2264
Rehovot 76122, Israel 

Attn: Oz Desheh, 

        1.
[  ][____] (Check and initial here if the undersigned
          elects this alternative) The undersigned hereby elects to purchase [FILL
          IN NUMBER OF SHARES] ____________ shares of ______________ of the share
          capital of Negevtech, Ltd. pursuant to the terms of the attached Warrant (the
          “Warrant”), and tenders herewith payment in full for the
          purchase price of the shares being purchased. [Such purchase is contingent upon
          _______________ in accordance with Section 2(c) of the Warrant.]  

        1.
[  ][____] (Check and initial here if the undersigned
          elects this alternative ) In lieu of exercising the Warrant for cash or a
          check, the undersigned hereby elects to effect the net exercise provision of
          Section 2(b) of the Warrant and receive [FILL IN NUMBER OF SHARES]
          _________ shares of the share capital of Negevtech, Ltd. pursuant to the terms
          of the Warrant according to the following calculation:  

				 
				 
				 
				 
				 
				 
	 	X = Y (A-B) 	(   ) = (____) [(_____) - (_____)] 	 
	 	            A	(_____)	 

	 	
Where
X = the number of shares of Warrant Shares to be issued to Holder.  

	 	
             Y
= the number of shares of Warrant Shares purchasable under the amount of the Warrant
being exchanged (as adjusted to the date of such calculation). 

	 	
             A
= the Fair Market Value of one share of the Corporation’s Warrant Shares.  

	 	
             B
= Purchase Price (as adjusted to the date of such calculation).  

        2.
 Please issue a certificate or certificates representing said Warrant Shares in
               the name of the below list of entities, and record same in the
               Corporation’s internal share registry, as follows:  

			
			
			
			
			
			
	 	 	Very truly yours,
	 
	 	 ______________
	 
	 	By: ___________
	 
	 	Title: __________
	 
	 	Date: ___________

- 74 -

EXHIBIT B  

FORM OF TRANSFER  

(To be signed only upon transfer of
Warrant) 

FOR VALUE RECEIVED, the undersigned (the
“Transferor”) hereby assigns and transfers unto
______________________________________________ (the “Transferee”) the
right represented by the attached Warrant No. _ (the “Warrant”) to
purchase _________ Warrant Shares of the share capital of Negevtech, Ltd., out of the
total number of Warrant Shares to which the Warrant relates, and appoints ______________,
Attorney, to transfer such right on the books of Negevtech, Ltd., with full power of
substitution in the premises. The Transferor further represents that the transfer is made
in accordance with the terms of the Warrant. 

Dated: ______________________ 

By:
_________________________

Name: _______________________

Signed in the presence of: 

By:
_________________________

Name: _______________________

And the undersigned Transferee hereby
agrees to the transfer of said rights to which the Warrant relates, and agrees to be bound
by the terms and conditions of the Warrant. The undersigned further represents that the
transfer is made in accordance with the terms of the Warrant. 

Dated: ______________________ 

By:
_________________________

Name: _______________________

Signed in the presence of: 

By:
_________________________

Name: _______________________

- 75 -

Exhibit B1 –
Floating Charge Agreement  

Execution Copy  

FLOATING CHARGE AGREEMENT  

THIS FLOATING CHARGE AGREEMENT
(this “Agreement”) made as of the 6 day of November, 2005, by and between
Negevtech Ltd., an Israeli company number 51-163426-3 of 12 Hamada Street, P.O. Box 2264,
Rehovot 76122, Israel (the “Company” or “Pledgor”)
Plenus II, L.P (“Plenus”) and Plenus II (D.C.M), Limited Partnership
(collectively, the “Lender”), Plenus Technologies Ltd., Golden Gate
Bridge Fund, L.P of Delta House, 16 Hagalim Avenue, Herzeliya 46725, Israel and Bank Leumi
Le-Israel B.M. of 24-32 Yehuda Halevi Street, Tel Aviv, 65546, Israel (collectively the
“Co-Lenders”). 

WHEREAS, the Pledgor has agreed to
enter into this Agreement in order to secure certain obligations of the Pledgor to the
Lender and to the Co-lenders, pursuant to the Loan Agreement, dated as of the day 11 of
October, 2005, by and between the Pledgor and the Lender (such agreement, as may be
amended from time to time, the “Loan Agreement”); 

        NOW,
THEREFORE, IT IS AGREED AS FOLLOWS: 

     1.    
          The Preamble to this Agreement constitutes an integral part hereof. All
          capitalized terms used herein and not otherwise defined herein shall have the
          meaning assigned to such terms in the Loan Agreement. 

     2.    
          To secure the performance of the Pledgor’s obligations pursuant to this
          Agreement, the Loan Agreement and the Warrant (the “Secured
          Obligations”), the Pledgor hereby pledges and grants the Lender and the
          Co-lenders a first priority (subject to the Fixed Charge Agreement, the general
          first degree floating charge in favor of Bank Leumi and the first degree fixed
          charge on the Company’s intellectual property that the Company registered
          in favor of Bank Leumi) floating charge (the “Floating
          Charge”) on all of its rights, title and interests in and to all its
          present and future tangible and intangible assets and rights of any kind,
          whether contingent or absolute, as more fully described in Exhibit A attached hereto (the “Collateral”). 

        The
pledge and charge created by operation of this Agreement shall apply to any and all rights
to compensation or indemnity which may accrue to the Pledgor by reason of the loss or
expropriation of, or damage to, of the Collateral. 

- 76 -

     3.    
          Subject to the provisions of Section 13 hereof, the Pledgor will not without
          prior written consent of Plenus: (a) materially change the general nature of its
          business and/or operations or carry out any transaction which may have a
          material adverse effect on the business, condition (financial or otherwise), or
          results of operations of the Pledgor or on the ability of the Pledgor to comply
          with any of its material obligations under any of the Transaction Documents
          (“Material Adverse Change”); (b) make any loan or other
          extension of credit to its distributors, customers, employees, except for loans
          and other extensions of credit which (i) are granted in the ordinary course of
          business, and (ii) are for an aggregate amount of not more than $150,000; (c)
          receive financial loans or similar extensions of credit from a bank or another
          financial institution or third party (excluding loans from existing
          shareholders), exceeding (together with the amounts set forth in subsection (d)
          hereunder) an aggregate amount of $150,000; (d) issue any guarantee or otherwise
          incur any contingent liability in connection with any financial loan or similar
          extension of credit from a bank or another financial institution or third party
          (excluding loans from existing shareholders), exceeding in the aggregate
          (together with the amounts set forth in subsection (c) hereinabove) an amount of
          $150,000; provided, however, that the restrictions contained in
          clauses (c) and (d) of this Section 3 shall not apply to any commercial debts
          (e.g., payments due to suppliers or other entities within the framework of a
          commercial relationship or guarantees in respect thereof) incurred by the
          Pledgor in the ordinary course of its business or incurred in connection with a
          certain loan extended by Bank Leumi Israel Ltd. (“Bank Leumi”) in the
          aggregate outstanding amount of $1,500,000; (e) sell, transfer, assign, grant a
          security interest (except as set forth in the Fixed Charge Agreement and except
          for a first degree fixed charge on the Company’s intellectual property in
          favour of Bank Leumi) in or pledge any of the Collateral other than: (i) with
          respect to sale or transfer of products or inventory only – in the ordinary
          course of business (ii) with respect to the Pledgor’s IP (as defined below)
          the only prohibition shall be to sell, whether or not in the ordinary course of
          business, all or any part of the Pledgor’s IP or grant, whether or not in
          the ordinary course of business, an exclusive license with respect thereto (the
          “Limitations”), without obtaining the prior written consent of
          Plenus, or; (iii) subject to the provisions of the Loan Agreement the creation
          of a fixed charge under Section 169(d) of the Companies Ordinance (New Version),
          5743-1983, on assets of the Pledgor which are acquired by the Pledgor following
          the Closing Date, provided, however, that such fixed charge shall
          only be recorded in favor of the actual seller of such assets or a commercial
          bank specifically financing such an acquisition of assets; (f) repay any
          existing or future loans, debts or other financial obligations, including,
          without limitation, with respect to shareholders’ loans, excluding,
          however, (i) royalty payments paid to the Chief Scientist of the Israel Ministry
          of Industry Trade and Employment during the term of the Loan Agreement; (ii)
          repayment of US$1,500,000 borrowed by the Pledgor from Bank Leumi (the
          outstanding amount of the Microscope loan); (iii) repayment of the January Loan;
          and (iv) operating expenses of the Pledgor which are incurred in the
          Pledgor’s ordinary course of business and repayment of loans or debts the
          assumption of which is not forbidden pursuant to this Agreement; (g) create or
          permit to exist any encumbrance over any of its present or future revenues or
          assets subject to the exemption set forth in item (e) of this Section 3; and (h)
          make any Distribution, as such term in Hebrew
          (çìå÷ä) is defined in the Companies Law,
          5759-1999 (the “Companies Law”). 

        For
the purpose of this Agreement, “IP” shall mean, all intangible legal
rights, titles and interests evidenced by or embodied in or connected or related to
(i) copyrights; (ii) patents and any rights thereunder, and all applications,
registrations, and renewals in connection therewith; (iii) trademarks, service marks,
trade names, together with all translations, adaptations, derivations, and combinations
thereof, and all applications, registrations, and renewals in connection therewith;
(iv) all mask works, rights in original topographies and all applications,
registrations, and renewals in connection therewith; (v) all trade secrets, rights to
unpatented inventions, know-how and confidential information; and (vi) all computer
software (including data and related documentation), in each case on a worldwide basis,
and all copies and tangible embodiments thereof, or any part thereof, in whatever form or
medium. 

        The
provisions of this Section 3 shall apply mutatis mutandis to any existing and/or
future Subsidiaries of the Pledgor. The Pledgor undertakes that each and every of its
existing and future Subsidiaries shall undertake, in writing, toward the Lender to comply
with this Section 3 as provided above. 

- 77 -

     4.    
          The Pledgor shall use best commercial efforts to preserve the Collateral and
          shall at all time maintain insurance which is customary for a company of the
          size, at the stage of development and in the industry in which the Pledgor
          operates. The Pledgor shall permit the Lender to inspect the Collateral and its
          records at all reasonable times and upon reasonable notice, subject to customary
          non-disclosure reasonable restrictions. 

5. 

     5.1        Pledgor
hereby makes those representations and warranties appearing in Section 4 of the Loan
Agreement (subject to the exceptions set forth in the Disclosure Schedule) and such
representations and warranties are incorporated mutatis mutandis by reference
herein.  

             5.2        In
addition, the Pledgor hereby represent as follows:  

		    (i)        That
except as otherwise set forth in the Loan Agreement and Fixed Charge           Agreement
(including all schedules and exhibits thereto), the Collateral is not           charged,
pledged or attached in favour of any other persons or parties.;  

		    (ii)        That
the Collateral is, in its entirety, in the exclusive ownership of the           Pledgor;  

		    (iii)        That
subject to the provisions of this Agreement, the Loan Agreement and the
          Encouragement Law, no restriction or condition by agreement or, to the best of
          its knowledge, by law exists or applies to the transfer or charge of the
          Collateral;  

		    (iv)        That
the Pledgor is entitled to charge the Collateral;  

		    (v)        That
subject to the provisions of this Agreement and the Loan Agreement no
          assignment of rights or other disposition has been made, derogating from the
          value of the Collateral.  

     6.    
          Plenus shall be entitled on behalf of the Co-lenders to enforce the Floating
          Charge against the Pledgor, and the Collateral shall be subject to immediate
          foreclosure, at any time without any further demand, immediately upon the
          occurrence of any of the events described below (“Event of
          Acceleration), unless otherwise provided for in this Agreement: 

		    (i)        the
Company fails to pay any sum due from it under the Loan Agreement at the           time,
in the currency and in the manner specified therein, or is otherwise in           breach
of any of the Transaction Documents, and the same is not remedied within           three
(3) days, in case of non-payment, seven (7) days, in case of any material
          breach, or fourteen (14) days, in case of any other breach, from written notice
          by the Lender to the Pledgor of the occurrence and nature of such non-payment
or           breach; or  

- 78 -

		    (ii)        the
Company admits or indicates in writing its inability to pay its debts as           they
fall due, commences negotiations with one or more of its creditors with a           view
to a general readjustment or rescheduling or another arrangement regarding           its
indebtedness, pursuant to Section 350 to the Companies Law, or otherwise; or
          makes a general assignment for the benefit of, or a composition with, its
          creditors pursuant to Section 350 to the Companies Law or otherwise; or  

		    (iii)        any
indebtedness of the Company to a third party for borrowed money in the           amount
of more than $150,000 is not paid when due; or any indebtedness of the           Company
to a third party for borrowed money in the amount of more than $150,000           becomes
capable of being declared by such third party to be, or is declared, due           and
payable prior to its specified maturity; or any commitment of a third party           to
lend to the Company, or to make any credit facility available to the Company,
          in the amount of more than $150,000 is cancelled by such third party; or  

		    (iv)        the
filing by or against the Company of any petition in liquidation or any           petition
for relief under the provisions of applicable law for the relief of           debtors; or
the appointment of a special manager, temporary liquidator,           temporary receiver
or trustee to take possession of any material assets of the           Company; or the
placement of attachment on any of the material assets of the           Company; provided,
however, that if such filing, appointment or           placement were instigated
without the Company’s consent, it shall be deemed           an Event of Acceleration
only if not cancelled, removed or stayed within thirty           (30) days; or the
adoption of a resolution by the Company to voluntarily           liquidate; or  

		    (v)        any
representation or statement made by the Company in any of the Transaction
          Documents, or in any certificate or written statement delivered by it pursuant
          thereto, is, or proves to have been, incorrect or misleading in any material
          respect; or  

		    (vi)        any
event or series of events occur(s) which, in the reasonable commercial           opinion
of Plenus, may have a material adverse effect on the business, condition
          (financial or otherwise), or results of operations of the Company or on the
          ability of the Company to comply with any of its material obligations under any
          of the Transaction Documents, provided, however, that if in
          Plenus’s opinion, actions taken by the Company may annul such adverse
          effect, Plenus shall notify the Company and allow it to take such actions
within           a period of time determined exclusively by Plenus and specified in said
notice;           or  

		    (vii)        the
Company fails to comply with any of the financial covenants set forth in Exhibit H attached
hereto;  

        The
Pledgor shall promptly inform the Lender, in writing, of the occurrence of any Event of
Acceleration. In addition, upon receipt of a written request to that effect from the
Lender, the Company shall confirm to the Lender that, except as previously notified to the
Lender, if notified, or as notified in such confirmation, if notified, no Event of
Acceleration has occurred. 

- 79 -

7. 

     7.1        In
any Event of Acceleration, Plenus shall be entitled to adopt all the measures it deems
fit, allowed by applicable law, in order to recover the performance of the Secured
Obligations and exercise all of its rights hereunder, including the realization of the
Collateral, in whole or in part, and to apply the proceeds thereof to the Secured
Obligations without Plenus first being required to realize any other guarantees or
collateral securities, if such be held by Plenus.  

     7.2        Upon
the occurrence of an Event of Acceleration, Plenus may, subject to any applicable law,
sell all or any part of the Collateral by public auction or otherwise, by itself or
through others, for cash or installments thereof or otherwise, at a price and on such
terms as Plenus in its sole reasonable discretion shall deem fit, and likewise, subject
to applicable law, Plenus may of its own accord or through the court or an execution
office, realize the Collateral or any part thereof, including, inter alia, by
appointing a receiver or receiver and manager on behalf of Plenus, who shall be
empowered, inter alia:  

		    (i)        to
call in all or any part of the Collateral;  

		    (ii)        to
sell, or agree to the sale of, the Collateral, in whole or in part, to           dispose,
or agree to dispose, of same in such other manner on such terms as he           deems
fit;  

		    (iii)        to
make such other arrangement regarding the Collateral or any part thereof as           he
deems fit;  

		    (iv)        to
take any and all actions which he, at his sole discretion, deems productive           or
otherwise helpful, for the realization of the Collateral, and/or for the
          fulfillment of his duty; and  

		    (v)        to
carry out any other authority empowered to him by the court or the execution
          office.  

     7.3        The
Lender acknowledges that any realization of Grant Funded Know-How, including the sale of
the Grant Funded Know-How and its transfer within the framework of realization
procedures, will require the approval of the Research Committee (as defined in the Loan
Agreement). Likewise, said transfer of said know-how will be conditional upon the
potential buyer or transferee undertaking to assume the obligations in accordance with
the Encouragement Law including Section 19(c) thereto and in accordance with the terms of
the program pursuant with which grants were provided to the Pledgor, including the
obligation: (i) not to transfer the Grant Funded Know-How to another unless the Research
Committee approves the transaction; (ii) to pay royalties.  

     8.    
          The Pledgor shall cooperate with the Lender and Co-lenders and execute all
          documents as may be reasonably necessary or advisable to register the Floating
          Charge with the Israeli Registrar of Companies and/or Registrar of Pledges, such
          document(s) substantially in the form annexed hereto as Exhibit
          B, and shall bear all stamp taxes and other costs and expenses
          with respect to such registrations. The Pledgor shall pay, upon demand, all
          reasonable expenses, including reasonable attorney’s fees, incurred by the
          Lender and the Co-lenders in enforcing their rights and remedies hereunder. 

- 80 - 

     9.    
          The amount being secured under the Floating Charge created by this Floating
          Charge Agreement is unlimited in amount and is created in accordance with the
          Loan Agreement. The payments to be made to the Lender and to the Co-lenders in
          the event of the foreclosure of the Floating Charge will be made in the
          following order: costs, expenses and taxes, Interest, any other
          payment under Section 8.7 of the Loan Agreement and then Principal Amount. The
          Floating Charge shall be cancelled, and be of no further force and effect and
          the Lender and Co-lenders shall promptly execute and provide the Pledgor with
          all documents necessary to release the Floating Charge, upon repayment in full
          of the Principal Amount together with any and all accrued Interest thereon, the
          Credit Line Fee (if applicable) and any other amounts due from the Pledgor under
          any of the Transaction Documents, unless terminated earlier by the Lender. 

     10.    
          This Agreement shall be governed by, and construed in accordance with, the laws
          of the State of Israel. The parties hereto hereby irrevocably submit to the
          exclusive jurisdiction of the appropriate court in Tel Aviv, Israel. 

     11.    
          The Pledgor shall promptly notify Plenus in writing of any material adverse
          change in the business or condition (financial or otherwise) of the Pledgor or
          the Collateral and of any other event which may materially adversely affect the
          business or condition (financial or otherwise) of the Pledgor or the Collateral,
          including, but not limited to, any claim or right in or to the Collateral and/or
          any execution or realization proceedings thereof. 

     12.    
          The Pledgor will immediately notify Plenus of any change in its name or identity
          or corporate structure, including, but not limited to, any change of control of
          the Pledgor, or in the location of its chief offices or where its books and
          records are kept, as well as any change to its incorporation documents which may
          adversely affect the Lender’s and the Co-lenders’ rights hereunder. 

     13.    
          None of the rights, privileges, or obligations set forth in, arising under, or
          created by, this Agreement may be assigned or transferred by the Pledgor or a
          Lender or a Co-lender without the prior consent in writing of the Pledgor, which
          consent shall not be unreasonably withheld. Anything herein to the contrary
          notwithstanding, each Lender shall have the right to assign or transfer its
          rights, privileges and obligations under this Agreement to any of the following
          (each a “Permitted Transferee”): (i) any other entity which
          controls, is controlled by, or is under common control with, such Lender, (ii)
          if the Lender is a trustee or is appointed to act on behalf of others, –
          then to its beneficiaries, (iii) to the Co-lenders and Participants (as defined
          in the Loan Agreement), or (iv) if the Lender is a general or limited
          partnership – to its partners and to affiliated partnerships managed by the
          same management company or managing general partner or to an entity which
          controls, is controlled by, or is under common control with, such management
          company or managing general partner. The foregoing in clauses (i)-(iv) above is
          subject to the assignee or transferee assuming in writing the obligations of the
          assignor or transferor under this Agreement (including any schedules attached
          hereto). The limited right of a Lender to assign and transfer pursuant to this
          Section 13 shall also apply, mutatis mutandis, to each of the other
          Permitted Transferees. 

     14.    
          Notwithstanding anything herein to the contrary the Lender hereby represents
          that: (i) the Co-lenders have agreed that Plenus at its sole discretion shall
          determine whether to realize any charges and/or pledges over the assets of the
          Pledgor created for the benefit of the Lender and the Co-lenders, and make any
          other decisions that need to be made with respect to any other issue relating to
          this Agreement, (ii) the Co-lenders have agreed that Plenus at its sole
          discretion shall determine whether an Event of Acceleration has occurred, and
          (iii) the Co-lenders have agreed not to take any action to the contrary. 

- 81 -

     16.    
          Any notices to be provided by one party to another shall be done in accordance
          with the notice provisions set forth in the Loan Agreement. 

     17.    
          Any term of this Agreement may be amended and the observance of any term hereof
          may be waived (either prospectively or retroactively and either generally or in
          a particular instance) only with the written consent of the Pledgor and Plenus.
          No delay or omission to exercise any right, power, or remedy accruing to any
          party upon any breach or default under this Agreement, shall be deemed a waiver
          of any other breach or default theretofore or thereafter occurring. All
          remedies, either under this Agreement or by law or otherwise afforded to any of
          the parties, shall be cumulative and not alternative. 

     18.    
          This Agreement and the other Transaction documents constitute the full and
          entire understanding and agreement among the parties with regard to the subject
          matters hereof and thereof. The preamble, exhibits and schedules hereto
          constitute an integral part hereof. 

     19.    
          This Agreement shall terminate on the date on which the Lender shall have
          released the Floating Charge in accordance with this Agreement. 

- 82 -

        IN
WITNESS WHEREOF, this Floating Charge Agreement has been executed by the parties
hereto as of the date first above written. 

				
	Negevtech Ltd. 	Plenus II, L.P 
	 
	By:	____________________	By:	____________________
	Title:	____________________	Title:	____________________
	Date:	____________________	Date:	____________________

Plenus II (D.C.M), Limited Partnership 

		
	By:	____________________
	Title:	____________________
	Date:	____________________

We agree:

				
	Golden Gate Bridge Fund L.P 	Plenus Technologies Ltd. 
	 
	By:	____________________	By:	____________________
	Title:	____________________	Title:	____________________
	Date:	____________________	Date:	____________________

Bank Leumi Le-Israel B.M. 

		
	By:	____________________
	Title:	____________________
	Date:	____________________

- 83 -

EXHIBIT A  

        The
Collateral consists of all of Pledgor’s rights, titles and interests in and to all
assets of the Pledgor, including, but not limited to, the following: 

        All
goods and equipment now owned or hereafter acquired, including, without limitation, all
machinery, fixtures, vehicles (including motor vehicles and trailers), and any interest in
any of the foregoing, and all attachments, accessories, accessions, replacements,
substitutions, additions, and improvements to any of the foregoing, wherever located; 

        All
inventory, now owned or hereafter acquired, including, without limitation, all
merchandise, raw materials, parts, supplies, packing and shipping materials, work in
process and finished products including such inventory as is temporarily out of
Pledgor’s custody or possession or in transit and including any returns upon any
accounts or other proceeds, including insurance proceeds, resulting from the sale or
disposition of any of the foregoing and any documents of title representing any of the
above; 

        All
contract rights and general intangibles and all of Pledgor’s IP, now owned or
hereafter acquired, including, without limitation, goodwill, trademarks, servicemarks,
Internet domain names, trade dress, trade styles, trade names, patents, patent
applications, leases, license agreements, franchise agreements, blueprints, drawings,
purchase orders, customer lists, route lists, infringements, claims, computer programs,
computer discs, computer tapes, literature, reports, catalogs, design rights, income tax
refunds, payments of insurance; all claims for damages by way of any past, present and
future infringement of any of the foregoing and rights to payment of any kind; 

        All
now existing and hereafter arising accounts, contract rights, royalties, license rights
and all other forms of obligations owing to Pledgor arising out of the sale or lease of
goods, the licensing of technology or the rendering of services by Pledgor, whether or not
earned by performance, and any and all credit insurance, guaranties, and other security
therefor, as well as all merchandise returned to or reclaimed by Pledgor; 

        All
documents, cash, deposit accounts, securities, securities entitlements, securities
accounts, investment property, financial assets, letters of credit, certificates of
deposit, instruments and chattel paper now owned or hereafter acquired and Pledgor’s
Books relating to the foregoing; 

        All
claims for damages by way of any past, present and future infringement of any of
Pledgor’s IP; 

        All
Pledgor’s Books relating to the foregoing and any and all claims, rights and
interests in any of the above and all substitutions for, additions and accessions to and
proceeds thereof; 

        The
term “Pledgor’s Books” as used herein shall mean all Pledgor’s
books and records including ledgers, records regarding Pledgor’s assets or
liabilities, the Collateral, business operations or financial condition and all computer
programs or discs or any equipment containing the information; and 

        All
insurance policies or the proceeds thereof in respect of the above described assets. 

- 84 -

AMENDMENT TO FLOATING
CHARGE AGREEMENT  

This Amendment (the
“Amendment”) to the Floating Charge Agreement (as defined below) is
entered into as of March 30, 2008, by and among Negevtech Ltd. (the
“Pledgor”), and Plenus II, Limited Partnership, Plenus II (D.C.M.),
Limited Partnership (collectively, “Plenus”), Golden Gate Bridge Fund,
L.P. and Bank Leumi Le-Israel B.M. 

WHEREAS, the parties hereto
entered into that certain Floating Charge Agreement dated October 11, 2005 (the
“Floating Charge Agreement); and 

WHEREAS, the parties wish to
amend the Floating Charge Agreement; 

NOW, THEREFORE, the parties
hereby agree as follows: 

	1.  	Interpretation.  

	 	
The
preamble to this Amendment forms an integral part hereof. Unless otherwise expressly
referred to herein, reference to various sections, schedules and exhibits shall refer to
the schedules and exhibits attached to the Floating Charge Agreement, as applicable.
Capitalized terms used but not expressly defined herein shall bear the meanings ascribed
thereto in the Floating Charge Agreement. 

	2.  	Seniority
of Kreos Charge. 

          	 	2.1. 	
Notwithstanding anything to the contrary in the Floating Charge Agreement, the
parties agree and acknowledge that commencing on the date on which Kreos Capital
II Limited (“Kreos”) provides the Pledgor any amount on account of the
Kreos Loan, as defined in that certain Inter-creditor Agreement, of even date,
among the Pledgor, Plenus and Kreos and attached hereto as Appendix A
(the “Inter-creditor Agreement”) and until the payment and
satisfaction in full of all Kreos Obligations (as defined in the Inter-Creditor
Agreement), the Plenus Floating Charge (as defined in the Inter-Creditor
Agreement) shall rank junior to the Kreos Charge (as defined in the
Inter-Creditor Agreement), with respect, and only with respect, to the assets
listed in Appendix B attached hereto.  

               

          	 	2.2. 	
               The parties further agree that (i) the Assets shall at all time remain subject
               to the Plenus Floating Charge (albeit, pursuant to the provisions of Section 2.1
               hereof, subject also to the more senior Kreos Charge), (ii) until such time as
               Kreos provides the Pledgor any amount on account of the Kreos Loan the Assets
               shall remain subject only to the first ranking Plenus Floating Charge, and (iii)
               upon payment and satisfaction in full of all the Kreos Obligations, then,
               subject to applicable law, the Assets shall automatically and without the need
               for any further action be and become subject only to the first ranking Plenus
               Floating Charge. 

               

- 85 -

	3.  	Default
under the Kreos Loan Documents.

	 	
Section
6 of the Floating Charge Agreement shall be, and it hereby is, amended, by replacing the
existing clause (vii) with the following clause: 

	 	
“(vii)
                     the occurrence of an event of default or any other event which gives
Kreos                     Capital II Limited (“Kreos”) the right
pursuant to the                     Loan Agreement, dated March 30, 2008, or any other
agreement entered into by the                     Pledgor and Kreos in connection with
the loan provided by Kreos to the Pledgor                     pursuant to the Loan
Agreement (the “Kreos Loan”), to                     accelerate
the payment of the Kreos Loan or any part thereof or any other amount
                    payable to Kreos pursuant thereto;". 

	4.  	General
Provisions.  

          	 	4.1. 	
               Except as otherwise amended and modified hereby, the provisions of the Floating
               Charge Agreement shall remain in full force and effect. This Amendment shall be
               deemed for all intents and purposes as an integral part of the Floating Charge
               Agreement. 

               

          	 	4.2. 	
               Each of the parties hereto shall perform such further acts and execute such
               further documents as may reasonably be necessary to carry out and give full
               effect to the provisions of this Amendment and the intentions of the parties as
               reflected hereby, including the filing and registration of this Amendment with
               the Israeli Companies Registrar, and this Amendment shall be interpreted and
               construed in such manner so as to give effect to the parties’ intentions. 

               

          	 	4.3. 	
               This Amendment may be executed in one or more counterparts, and by the different
               parties hereto in separate counterparts, each of which when executed shall be
               deemed to be an original but all of which taken together shall constitute one
               and the same agreement. 

               

[Signature Page to
Follow] 

- 86 -

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

	NEGEVTECH LTD.

By:  
——————————————

Title:
——————————————

Date:

——————————————		

	PLENUS II, LIMITED PARTNERSHIP

By: PLENUS MANAGEMENT (2004) LTD.  
——————————————

Its. Management Company
——————————————

By:

——————————————

Its:
——————————————		

	PLENUS II (D.C.M.), LIMITED PARTNERSHIP

By: PLENUS MANAGEMENT (2004) LTD. 
——————————————

Its. Management Company
——————————————

By:

——————————————

Its:
——————————————		

	GOLDEN GATE BRIDGE FUND L.P.

By:  
——————————————

Title:
——————————————

Date:

——————————————		

	BANK LEUMI LE-ISRAEL B.M.

By:  
——————————————

Title:
——————————————

Date:

——————————————		

- 87 -

Exhibit B2 – Fixed
Charge Agreement  

Execution Copy  

FIXED CHARGE AGREEMENT  

        THIS
FIXED CHARGE AGREEMENT (this “Agreement”) is made as of the 6 day of
November, 2005, by and among Negevtech Ltd., an Israeli company, registration number
51-163426-3, of 12 Hamada Street, P.O. Box 2264, Rehovot 76122, Israel (the
“Pledgor”), Plenus II, L.P (“Plenus”), and Plenus II
(D.C.M), Limited Partnership (collectively, the “Lender”), Plenus
Technologies Ltd., Golden Gate Bridge Fund, L.P, of Delta House, 16 Hagalim Avenue,
Herzeliya 46725, Israel and Bank Leumi Le-Israel B.M of 24-32 Yehuda Halevi Street, Tel
Aviv, 65546, Israel (collectively “the “Co-Lenders”). 

        WITNESSETH: 

WHEREAS, the Pledgor has agreed to
enter into this Agreement in order to secure certain obligations of the Pledgor to
the Lender and to the “Co-lenders, pursuant to the Loan Agreement, dated October 11,
2005, by and between the Pledgor and the Lender (such agreement, as may be amended from
time to time, the “Loan Agreement”); 

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

     1.    
          The preamble to this Agreement constitutes an integral part hereof. All
          capitalized terms used herein and not otherwise defined herein shall have the
          meaning assigned to such terms in the Loan Agreement. 

     2.    
          To secure performance of the Pledgor’s obligations pursuant to this
          Agreement, the Loan Agreement and the Warrant (the “Secured
          Obligations”), the Pledgor hereby pledges and grants the Lender and the
          Co-lenders (subject to a first degree fixed charge on the Pledgor’s
          intellectual property that the Pledgor registered in favour of Bank Leumi) a
          first priority fixed charge (the “Fixed Charge”) on all
          of the pledgor rights in and to its intellectual property , as more fully
          described in Exhibit A attached hereto (the
          “Collateral”). 

        The
pledge and charge created by operation of this Agreement shall apply to any and all rights
to compensation or indemnity which may accrue to the Pledgor by reason of the loss or
expropriation of, or damage to, of the Collateral. 

     3.    
          Subject to the provisions of Section 13 hereof, the Pledgor will not without
          prior written consent of Plenus: (a) materially change the general nature of its
          business and/or operations or carry out any transaction which may have a
          material adverse effect on the business, condition (financial or otherwise), or
          results of operations of the Pledgor or on the ability of the Pledgor to comply
          with any of its material obligations under any of the Transaction Documents
          (“Material Adverse Change”); (b) make any loan or other
          extension of credit to its distributors, customers or employees, except for
          loans and other extensions of credit which (i) are granted in the ordinary
          course of business, and (ii) are for an aggregate amount of not more than One
          Hundred and Fifty Thousand dollars ($150,000) ; (c) receive financial loans or
          similar extensions of credit from a bank or another financial institution or
          third party (excluding loans from existing shareholders) exceeding (together
          with the amounts set forth in subsection (d) hereunder) an aggregate amount of
          $150,000; (d) issue any guarantee or otherwise incur any contingent liability in
          connection with any financial loan or similar extension of credit from a bank or
          another financial institution or third party (excluding loans from existing
          shareholders); provided, however, that the restrictions contained
          in clauses (c) and (d) of this Section 3 shall not apply to any commercial debts
          (e.g., payments due to suppliers or other entities within the framework of a
          commercial relationship or guarantees in respect thereof) incurred by the
          Pledgor in the ordinary course of its business; (e) sell, transfer, assign,
          grant an exclusive license, create a security interest in, or pledge any of the
          Collateral, except for a first degree fixed charge on the Company’s
          intellectual property in favour of Bank Leumi, pari passu with the Fixed Charge;
          (f) repay any existing or future loans, debts or other financial obligations,
          including, without limitation, with respect to shareholders’ loans,
          excluding, however, (i) royalty payments paid to the Chief Scientist of the
          Israel Ministry of Industry, Trade and Employment during the term of the Loan
          Agreement; (ii) repayment of US$1,500,000 borrowed by the Pledgor from Bank
          Leumi (the outstanding amount of the Microscope loan); (iii) repayment of the
          January Loan; and (iv) operating expenses of the Pledgor which are incurred in
          the Pledgor’s ordinary course of business and repayment of loans or debts
          the assumption of which is not forbidden pursuant to this Agreement; (g) create
          or permit to exist any encumbrance over any of its present or future revenues or
          assets; and (h) make any distribution, as such term in Hebrew
          ((çìå÷ä is defined in the Companies Law,
          5759-1999 (the “Companies Law”). 

- 88 -

        The
provisions of this Section 3 shall apply mutatis mutandis to any existing and/or
future Subsidiaries of the Pledgor. The Pledgor undertakes that each and every of
its existing and future Subsidiaries shall undertake, in writing, toward the Lender to
comply with this Section 3 as provided above. 

     4.    
          The Pledgor shall use reasonable commercial efforts to preserve the Collateral
          and shall at all time maintain insurance which is customary for a company of the
          size, at the stage of development and in the industry in which the Pledgor
          operates. The Pledgor shall permit the Lender to inspect the Collateral and its
          records at all reasonable times and upon reasonable notice, subject to customary
          non-disclosure reasonable restrictions. 

5. 

     5.1        The
Pledgor hereby makes those representations and warranties appearing in Section 4 (subject
to the exceptions set forth in the Disclosure Schedule) of the Loan Agreement and such
representations and warranties are incorporated mutatis mutandis by reference
herein.  

             5.2        In
addition, the Pledgor hereby represents as follows: 

	  	(i)       
that
except as otherwise set forth in the Loan Agreement and Floating Charge
          Agreement (including all schedules and exhibits thereto), the Collateral is not
          charged, pledged or attached in favour of any other persons or parties;  

	  	(ii)       
that
the Collateral is, in its entirety, in the exclusive ownership of the           Pledgor;  

	  	(iii)       
that
and subject to the provisions of this Agreement, the Loan Agreement and           the
Encouragement Law, no restriction or condition by agreement or, to the best           of
its knowledge, exists or applies to the transfer or charge of the Collateral;  

	  	(iv)       
that
the Pledgor is entitled to charge the Collateral;  

- 89 -

	  	(v)       
that
subject to the provisions of this Agreement and the Loan Agreement, no
          assignment of rights or other disposition has been made, or committed to be
          made, with respect to the Collateral.  

     6.    
          Plenus shall be entitled on behalf of the Co-lenders to enforce the Fixed Charge
          against the Pledgor, and the Collateral shall be subject to immediate
          foreclosure, at any time without any further demand, immediately upon the
          occurrence of any of the events described below (“Default
          Event”), unless otherwise provided for in this Agreement: 

		    (i)        the
Pledgor fails to pay any sum due from it under any of the Transaction           Documents
at the time, in the currency or in the manner specified therein, or is
          otherwise in breach of any of the Transaction Documents, and the same is not
          remedied within three (3) days, in case of non-payment, seven (7) days, in case
          of any material breach, or fourteen (14) days in case of any other breach, from
          written notice by the Lender to the Pledgor of the occurrence and nature of
such           non-payment or breach; or  

		    (ii)        the
Pledgor admits or indicates in writing its inability to pay its debts as           they
fall due; commences negotiations with one or more of its creditors with a           view
to a general readjustment or rescheduling or another arrangement regarding           its
indebtedness, pursuant to Section 350 to the Companies Law, or otherwise; or
          makes a general assignment for the benefit of, or a composition with, its
          creditors pursuant to Section 350 to the Companies Law or otherwise; or  

		    (iii)        any
indebtedness of the Pledgor to a third party for borrowed money in the           amount
of more than $150,000 is not paid when due; or any indebtedness of the           Pledgor
to a third party for borrowed money in the amount of more than $150,000           becomes
capable of being declared by such third party to be, or is declared, due           and
payable prior to its specified maturity; or any commitment of a third party           to
lend to the Pledgor, or to make any credit facility available to the Pledgor,
          in the amount of more than $150,000 is cancelled by such third party; or  

		    (iv)        the
filing by or against the Pledgor of any petition in liquidation or any           petition
for relief under the provisions of applicable law for the relief of           debtors; or
the appointment of a special manager, temporary liquidator,           temporary receiver
or trustee to take possession of any material assets of the           Pledgor; or the
placement of attachment on any of the material assets of the           Pledgor; provided,
however, that if such filing, appointment or           placement were instigated
without the Pledgor’s consent, it shall be deemed           an Event of Acceleration
only if not cancelled, removed or stayed within thirty           (30) days; or the
adoption of a resolution by the Pledgor to voluntarily           liquidate; or  

		    (v)        any
representation or statement made by the Pledgor in any of the Transaction
          Documents, or in any certificate or written statement delivered by it pursuant
          thereto, is, or proves to have been, incorrect or misleading in any material
          respect; or  

- 90 -

		    (vi)        any
event or series of events occur(s) which, in the reasonable commercial           opinion
of Plenus, may have a material adverse effect on the business, condition
          (financial or otherwise), or results of operations of the Pledgor or on the
          ability of the Pledgor to comply with any of its material obligations under any
          of the Transaction Documents, provided, however, that if in
          Plenus’ opinion, actions taken by the Company may annul such adverse
          effect, Plenus shall notify the Company and allow it to take such actions
within           a period of time determined exclusively by Plenus and specified in said
notice;           or  

		    (vii)        the
Pledgor fails to comply with any of the financial covenants set forth in Exhibit G attached
to the Loan Agreement;  

        The
Pledgor shall promptly inform the Lender, in writing, of the occurrence of any Default
Event. In addition, upon receipt of a written request to that effect from the Lender, the
Pledgor shall confirm to the Lender that, except as previously notified to the Lender, if
notified, or as notified in such confirmation, if notified, no Default Event has occurred. 

7. 

    7.1       
In any Default Event, Plenus shall be entitled to adopt all the measures it deems fit,
allowed by applicable law, in order to recover the performance of the Secured Obligations
and exercise all of its rights hereunder, including the realization of the Collateral, in
whole or in part, and to apply the proceeds thereof to the Secured Obligations without
Plenus first being required to realize any other guarantees or collateral securities, if
such be held by Plenus. 

     7.2        Upon
the occurrence of a Default Event, Plenus may, subject to any applicable law, sell all or
any part of the Collateral by public auction or otherwise, by itself or through others,
for cash or installments thereof or otherwise, at a price and on such terms as Plenus in
its sole reasonable discretion shall deem fit, and likewise, subject to applicable law,
Plenus may of its own accord or through the court or an execution office, realize the
Collateral or any part thereof, including, inter alia, by appointing a receiver or
receiver and manager on behalf of Plenus, who shall be empowered, inter alia:  

		    (i)        to
call in all or any part of the Collateral;  

		    (ii)        to
sell, or agree to the sale of, the Collateral, in whole or in part, to           dispose,
or agree to dispose, of same in such other manner on such terms as he           deems
fit;  

		    (iii)        to
make such other arrangement regarding the Collateral or any part thereof as           he
deems fit;  

		    (iv)        to
take any and all actions which he, at his sole discretion, deems productive           or
otherwise helpful, for the realization of the Collateral, and/or for the
          fulfillment of his duty; and  

		    (v)        to
carry out any other authority empowered to him by the court or the execution
          office.  

- 91 -

     7.3        The
Lender acknowledges that any realization of Grant Funded Know-How, including the sale of
the Grant Funded Know-How and its transfer within the framework of realization procedures
will require the approval of the Research Committee (as defined in the Loan Agreement).
Likewise, said transfer of said know-how will be conditional upon the potential buyer or
transferee undertaking to assume the obligations in accordance with the Encouragement Law
including Section 19(c) thereto and in accordance with the terms of the program pursuant
with which grants were provided to the Pledgor, including the obligation: (i) not to
transfer the Grant Funded Know-How to another unless the Research Committee approves the
transaction; (ii) to pay royalties.  

     8.    
          The Pledgor shall cooperate with the Lender and Co-lenders and execute all
          documents as may be reasonably necessary or advisable to register the Fixed
          Charge with the Israeli Registrar of Companies and/or Registrar of Pledges, such
          document(s) substantially in the form annexed hereto as Exhibit
          B, and shall bear all stamp taxes and other costs and expenses
          with respect to such registrations. The Pledgor shall pay, upon demand, all
          reasonable expenses, including reasonable attorney’s fees, incurred by the
          Lender and the Co-lenders in enforcing their rights and remedies hereunder. 

     9.    
          The amount being secured under the Fixed Charge created by this Fixed Charge
          Agreement is unlimited in amount and is created in accordance with the Loan
          Agreement. The payments to be made to the Lender and to the Co-lenders in the
          event of the foreclosure of the Fixed Charge will be made in the following
          order: costs, expenses and taxes, Interest, any other payment
          under Section 8.7 of the Loan Agreement and then principal amount of the Loan.
          The Fixed Charge shall be cancelled, and be of no further force and effect and
          the Lender and Co-lenders shall promptly execute and provide the Pledgor with
          all documents necessary to release the Fixed Charge, upon repayment in full of
          the principal amount of the Loan together with any and all accrued Interest
          thereon, the Credit Line Fee (if applicable) and any other amounts due from the
          Pledgor under any of the Transaction Documents, unless terminated earlier by the
          Lender. 

     10.    
          This Agreement shall be governed by, and construed in accordance with, the laws
          of the State of Israel. The parties hereto hereby irrevocably submit to the
          exclusive jurisdiction of the appropriate court in Tel Aviv, Israel. 

     11.    
          The Pledgor shall promptly notify Plenus in writing of any material adverse
          change in the business or condition (financial or otherwise) of the Pledgor or
          the Collateral and of any other event which may materially adversely affect the
          business or condition (financial or otherwise) of the Pledgor or the Collateral,
          including, but not limited to, any claim or right in or to the Collateral and/or
          any execution or realization proceedings thereof. 

     12.    
          The Pledgor will immediately notify Plenus of any change in its name or identity
          or corporate structure, including, but not limited to, any change of control of
          the Pledgor, or in the location of its chief offices or where its books and
          records are kept, as well as any change to its incorporation documents which may
          adversely affect the Lender’s and the Co-lender’s rights hereunder. 

- 92 -

     13.    
          None of the rights, privileges, or obligations set forth in, arising under, or
          created by, this Agreement may be assigned or transferred by the Pledgor or by a
          Lender or Co-lender without the prior consent in writing of the Pledgor, which
          consent shall not be unreasonably withheld. Anything herein to the contrary
          notwithstanding, each Lender shall have the right to assign or transfer its
          rights, privileges and obligations under this Agreement to any of the following
          (each a “Permitted Transferee”): (i) any other entity which
          controls, is controlled by, or is under common control with, such Lender, (ii)
          if the Lender is a trustee or is appointed to act on behalf of others – to
          its beneficiaries, or (iii) to the Co-lenders and Participants (as defined in
          the Loan Agreement), or (iv) if the Lender is a general or limited partnership
          – to its partners and to affiliated partnerships managed by the same
          management company or managing general partner or to an entity which controls,
          is controlled by, or is under common control with, such management company or
          managing general partner. The foregoing in clauses (i)-(iv) above is subject to
          the assignee or transferee assuming in writing the obligations of the assignor
          or transferor under this Agreement (including any schedules attached hereto).
          The limited right of a Lender to assign and transfer pursuant to this Section 13
          shall also apply, mutatis mutandis, to each of the other Permitted
          Transferees. 

     14.    
          Notwithstanding anything herein to the contrary the Lender hereby represents
          that: (i) the Co-lenders have agreed that Plenus at its sole discretion shall
          determine whether to realize any charges and/or pledges over the assets of the
          Pledgor created for the benefit of the Lender and the Co-lenders, and make any
          other decisions that need to be made with respect to any other issue relating to
          this Agreement, (ii) the Co-lenders have agreed that Plenus at its sole
          discretion shall determine whether a Default Event has occurred, and (iii) the
          Co-lenders have agreed not to take any action to the contrary. 

     16.    
          Any notices to be provided by one party to another shall be done in accordance
          with the notice provisions set forth in the Loan Agreement. 

     17.    
          Any term of this Agreement may be amended and the observance of any term hereof
          may be waived (either prospectively or retroactively and either generally or in
          a particular instance) only with the written consent of the Pledgor and Plenus.
          No delay or omission to exercise any right, power, or remedy accruing to any
          party upon any breach or default under this Agreement, shall be deemed a waiver
          of any other breach or default theretofore or thereafter occurring. All
          remedies, either under this Agreement or by law or otherwise afforded to any of
          the parties, shall be cumulative and not alternative. 

     18.    
          This Agreement and the other Transaction Documents constitute the full and
          entire understanding and agreement among the parties with regard to the subject
          matters hereof and thereof. The preamble, exhibits and schedules hereto
          constitute an integral part hereof. 

     19.    
          This Agreement shall terminate on the date on which the Lender shall have
          released the Fixed Charge in accordance with this Agreement. 

        IN
WITNESS WHEREOF, this Fixed Charge Agreement has been executed by the parties hereto
as of the date first above written. 

				
	____________________	____________________	____________________	____________________
	Plenus II, L.P 	Negevtech Ltd. 
	 
	By:	____________________	By:	____________________
	Its.	____________________	Its.	____________________

	____________________	____________________
	Plenus II (D.C.M), Limited Partnership 
	  	 
	By:	____________________
	Its.	____________________

- 93 -

We agree:

				
	Golden Gate Bridge Fund L.P 	Plenus Technologies, Ltd. 
	 
	By:	____________________	By:	____________________
	Title:	____________________	Title:	____________________
	Date:	____________________	Date:	____________________

	Bank Leumi Le-Israel B.M. 
	  	 
	By:	____________________
	Title:	____________________
	Date:	____________________

- 94 -

EXHIBIT A  

The Collateral consists of all of
Pledgor’s right, title in and to its intellectual property rights, including, the
following: 

        All
intangible legal rights, titles and interests evidenced by or embodied in or connected or
related to (i) copyrights; (ii) patents and any rights thereunder, and all
applications, registrations, and renewals in connection therewith; (iii) trademarks,
service marks, trade names, together with all translations, adaptations, derivations, and
combinations thereof, and all applications, registrations, and renewals in connection
therewith; (iv) all mask works, rights in original topographies and all applications,
registrations, and renewals in connection therewith; (v) all trade secrets, rights to
unpatented inventions, know-how and confidential information; and (vi) all computer
software (including data and related documentation), in each case on a worldwide basis,
and all copies and tangible embodiments thereof, or any part thereof, in whatever form or
medium. 

All goodwill, Internet domain names,
trade dress, trade styles, license agreements, blueprints, drawings, route lists, computer
programs, computer tapes, literature, reports, catalogs, design rights, all claims for
damages by way of any past, present and future infringement of any of the foregoing and
rights to payment of any kind; 

        All
copyright rights, copyright applications, copyright registrations and like protections in
each work of authorship and derivative work thereof, whether published or unpublished, now
owned or hereafter acquired; all trade secret rights, including all rights to unpatented
inventions, know-how, operating manuals, license rights and agreements and confidential
information, now owned or hereafter acquired; all mask work or similar rights available
for the protection of semiconductor chips, now owned or hereafter acquired; all claims for
damages by way of any past, present and future infringement of any of the foregoing; 

        All
Pledgor’s Books relating to the foregoing and any and all claims, rights and
interests in any of the above and all substitutions for, additions and accessions to and
proceeds thereof; and 

        The
term “Pledgor’s Books” as used herein shall mean all Pledgor’s
books and records including ledgers, regarding, the Collateral, and all computer programs
or discs or any equipment containing the information. 

        All
insurance policies or the proceeds thereof in respect of the above described assets. 

- 95 -

Exhibit D – Opinion
of the Company’s Counsel  

Date: November 6, 2005  

To:  

Plenus II, L.P. and
Plenus II (D.C.M.), Limited Partnership  

Re: Negevtech Ltd.  

We have acted as counsel to Negevtech
Ltd, a company incorporated under the laws of Israel (the “Company”), in
connection with a loan transaction by and between the Company and Plenus II, L.P. and
Plenus II (D.C.M.), Limited Partnership, including a Loan Agreement (the “Loan
Agreement”), Floating Charge Agreement (the “Floating Charge
Agreement”), Fixed Charge Agreement (the “Fixed Charge
Agreement”), and a Warrant (the “Warrant”) (the Loan Agreement,
the Floating Charge Agreement, the Fixed Charge Agreement and the Warrant, including all
exhibits and schedules to such documents, shall be referred to herein as the
“Transaction Documents”). All capitalized terms as used herein shall have
the meaning ascribed to them in the Transaction Documents, unless otherwise specifically
stated in this Opinion Letter. This opinion is being rendered to you pursuant to Section
1.3(vi) of the Loan Agreement.  

In furnishing this opinion we have
reviewed originals, or copies certified or otherwise identified to our satisfaction, of
the Transaction Documents, the Memorandum of Association and the Articles of Association
of the Company and all amendments thereto, such corporate records and other documents of
the Company which we deemed necessary or appropriate (collectively, the “Corporate
Documents”) and such other documents, certificates and other instruments which we
deemed necessary or appropriate. 

In all such reviews, we have assumed
the due execution and delivery of documents by the parties thereto (pursuant to due
authorization), the genuineness of all signatures, the authenticity and completeness of
all documents submitted to us as originals, the conformity to original documents of
documents submitted to us as certified, conformed or photostatic copies, the authenticity
of the originals of such latter documents and the legal capacity of all signatories to
such documents. 

As to factual matters which are
pertinent to our legal opinion but are not within our knowledge, we have relied upon the
written representations by the Company and others. Although we have made no independent
checks or verification of such factual matters, nothing has come to our attention which
questioned the accuracy of such facts. 

This opinion is limited to the laws
of the State of Israel as such laws presently exist and we express no opinion with respect
to the effect or the applicability of the laws of any other jurisdiction. 

For purposes of our opinion in
paragraphs 1 and 2 below, we have relied solely upon the Certificate of Incorporation and
Registration as a Private Company issued by the Registrar of Companies dated 22.12.91 and
upon documents filed and held on record with the Registrar of Companies. 

- 96 -

Our opinions below are further
subject to the following qualifications and exceptions: 

         (i)       
          the effect of bankruptcy, insolvency, reorganization, arrangement, moratorium or
          other similar laws relating to or affecting the rights of creditors generally; 

         (ii)       
          the effect of statutory or decisional law concerning recourse by creditors to
          security in the absence of notice and hearing, or by general equitable
          principles, or by the discretionary powers of any court or administrative body.
          We do not express any opinion herein as to the availability of any equitable or
          other specific remedy, including specific performance, upon breach of any of the
          agreements, documents or obligations referred to herein; and 

         (iii)       
          the effect of foreign laws, judicial determinations or governmental actions
          affecting creditors’ rights or the Company’s performance of its
          obligations under the Transaction Documents. 

Based on and subject to the
foregoing, subject to the limitations set forth below and subject to any factual matters,
documents or events not disclosed to us in the abovementioned review, we are of the
opinion that, other than as set forth in the Transaction Documents and subject to receipt
of the approval of the Investment Center at the Israeli Minister of Industry, Trade and
Employment, as of the date hereof: 

     1.    
          The Company is a company duly incorporated and validly existing under the laws
          of the State of Israel for an unlimited duration. 

     2.    
          The Company has the corporate power under the Corporate Documents to enter into
          each of the Transaction Documents and to carry out and perform its obligations
          thereunder in accordance with the terms thereof. 

     3.    
          Each of the Transaction Documents has been duly authorized by all requisite
          corporate action on the part of the Company and has been duly executed and
          delivered by duly authorized signatories of the Company. 

     4.    
          Each of the Transaction Documents constitutes a legal, valid and binding
          obligation of the Company, enforceable against the Company in accordance with
          its respective terms. 

     5.    
          The Warrant has been duly authorized, validly issued and is nonassessable and to
          our knowledge, the Warrant Shares, when issued and paid for in accordance with
          the terms of the Warrant, shall be duly authorized, validly issued, fully paid
          and non-assessable. 

     6.    
          The execution and delivery of the Transaction Documents by the Company and the
          performance of its obligations thereunder, do not violate (i) the Corporate
          Documents, or (ii) to the best of our knowledge, applicable provisions of
          statutory law or regulation, rule, order or decree of any competent authority in
          the State of Israel applicable to the Company. We are also not aware of any
          Material Agreement, which conflicts with or will be breached by the execution,
          delivery or performance of, the Transaction Documents in a manner which is
          reasonably likely to have a material adverse effect on the Company. 

     7.    
          To the best of our knowledge, no authorizations, consents or approvals are
          required from any governmental authorities or agencies or other official bodies
          in the State of Israel in connection with the execution or delivery of the
          Transaction Documents or the performance by the Company of its obligations
          thereunder which have not been obtained. 

- 97 -

This opinion is based on the law (and
the interpretations thereof) and facts existing on the date hereof. 

This opinion is rendered only to you
and is solely for your benefit in connection with the Transaction Documents. This opinion
may not be relied upon by you for any other purpose; nor may this opinion be provided or
quoted to, or relied upon by, any other person or entity for any purpose without our prior
written consent. We disclaim any obligations to advise you of any changes therein that may
be brought to our attention after the date hereof. Please note that we are opining only as
to the matters specifically and expressly set forth herein and no opinion should be
inferred as to any other matters. 

		
	 	Best Regards,
	 
	 	David Cohen, Adv.
	 	Cohen, Cohen, Yaron-Eldar & Co.
	 	Law Offices

- 98 -

Exhibit E – Form of
Officer’s Certificate
Officer Certificate  

	To:  	Plenus
II, L.P. and Plenus II (D.C.M.), Limited Partnership (the "Lenders")  

	From:  	Arnon
Gat - chief executive officer of Negevtech Ltd. (the "Company")  

     Re:        Officer’s
Certificate Pursuant to Section 1.3(ix) of the Loan Agreement by and between the Company
and the Lenders dated October 11, 2005 (the “Agreement”)  

I, the undersigned, in my capacity as
chief executive officer of the Company, hereby certify the following: 

	1.  	The
representations and warranties contained in Section 4 of the Agreement are
               true as of the date hereof. 

	2.  	The
Company has performed and complied with all the agreements, obligations and
               conditions contained in the Agreement that are required to be performed or
               complied with on or before the Closing Date (as defined in the Agreement). 

        IN
WITNESS WHEREOF, I have executed this certificate on this 6 day of November 2005. 

		
		_______________________________________
	 	Chief Executive Officer of Negevtech Ltd.

- 99 -

Exhibit F – Form of
Early Termination Notice  

Termination Letter  

	To:  	The
Lenders listed on Schedule I (the "Lenders") pursuant to the Loan Agreement dated October
11, 2005 

Re:   Termination Notice  

Pursuant to section 2.7 of the Loan
Agreement (the “Loan Agreement”) dated October 11, 2005, between
Negevtech Ltd. (the “Company”) and the Lenders, the Company hereby
notifies you that it has decided to terminate the Loan Agreement. Such termination shall
be effective as of _________________. 

Upon delivery of this Termination
Notice to the Lenders, all of the conditions set forth in section 2.7 of the Loan
Agreement have been fulfilled. 

Please take any action required for
the removal of the Floating Charge and the Fixed Charge. 

		
	 	____________________________
	 	                   Negevtech Ltd.

- 100 -

Exhibit G –
Financial Covenants  

Financial Covenants  

The Company must comply with the
financial covenants set forth in Sections 1 and 2 below: 

	 	1) 	Revenues
of not less than: 

	 	40.1. 	$12.47M
during the twelve-month period ending on December 31, 2005.  

	 	40.2. 	$4.16M
during the three-month period commencing on January 1, 2006 and ending on
               March 31, 2006.  

	 	40.3. 	$9.89M
during the six-month period commencing on January 1, 2006 and ending on
               June 30, 2006.  

	 	40.4. 	$17.26M
during the nine-month period commencing on January 1, 2006 and ending on
               September 30, 2006.  

	 	40.5. 	$21.92M
during the nine-month period commencing on April 1, 2006 and ending on
               December 31, 2006.  

	 	40.6. 	$24.09M
during the nine-month period commencing on July 1, 2006 and ending on
               March 31, 2007.  

	 	40.7. 	$25.90M
during the nine-month period commencing on October 1, 2006 and ending on
               June 30, 2007.  

	 	40.8. 	$26.32M
during the nine-month period commencing on January 1, 2007 and ending on
               September 30, 2007.  

	 	40.9. 	$29.06M
during the nine-month period commencing on April 1, 2007 and ending on
               December 31, 2007.  

	 	2) 	Total
cash and cash equivalent available amount in the Company’s Bank
               accounts on each of the ending dates of the periods set forth above (the
               “Due Dates”) shall not be less than 30% of the then
outstanding                amount of the Loan balance. 

	 	
Alternatively,
if the Company did not comply with any of the revenues covenants set forth in Section 1
above, the Company shall nevertheless be deemed in compliance if the total cash and cash
equivalent available amount in the Company’s Bank accounts on the respective Due
Date (the Due Date on which the revenue covenant was not met) shall not be less than 60%
of the then outstanding amount of the Loan balance.  

	 	
The
revenues and cash amounts shall be approved by the Company’s auditors within 40 days
from each respective Due Date.  

- 101 -

AMENDMENT AGREEMENT 

This Amendment Agreement is made and
entered as of the 15 day of August 2007, by and among Negevtech Ltd., an Israeli company
number 51-163426-3, of 12 Hamada Street, P.O. Box 2264, Rehovot 76122, Israel (the
“Company”), Plenus II L.P., an Israeli limited partnership number
550218176 (“Plenus”) and Plenus II (D.C.M.), Limited Partnership, an
Israeli limited partnership number 550218259, both of 16 Abba Eben Avenues,
Herzeliya Pituach 46726, Israel. 

WHEREAS, the parties hereto
are parties to a certain Loan Agreement, dated as of the 11 day of October, 2005, a copy
of which is attached hereto as Exhibit A (the “Loan
Agreement”); and 

WHEREAS, the parties wish to
amend the Loan Agreement as set forth below; 

NOW THEREFORE, the parties
hereby agree as follows: 

     	1.	
          Capitalized terms used but not defined herein, directly or by reference, shall
          have the meaning ascribed thereto in the Loan Agreement. 

          

     	2.	
          Section 1.6 of the Loan Agreement shall be amended by deleting the words,
          “thirty six (36) months following the Closing Date”, in the
          3rd line, and inserting the words, “on December 31, 2008",
          in place thereof. 

          

     	3.	
          The first sentence of Section 2.2 of the Loan Agreement shall be amended to read
          as follows: 

          

	 	
“The
Principal Amount outstanding from time to time (denominated in dollars) shall bear
interest at an annual rate (calculated on a 360 day year for the actual number of days
elapsed) of LIBOR + 4% (four percent), from the disbursement date of the Principal Amount
until the first anniversary of the Closing Date; at an annual rate (calculated on a 360
day year for the actual number of days elapsed and compounded annually) of LIBOR + 4.5%
(four and one-half percent), from the first anniversary of the Closing Date until July 31,
2007; and at an annual rate (calculated on a 360 day year for the actual number of days
elapsed and compounded annually) of LIBOR + 5% (five percent), from July 31 until the date
of actual repayment of the Principal Amount; in each case – plus value added tax
(“VAT”), if applicable (such interest together with the VAT – the
“Interest”).” 

     	4.	
          Clause (vii) of Section 3 of the Loan Agreement and Exhibit G referred to in
          such clause shall be deleted. 

          

     	5.	
          Except as herein expressly agreed, the Loan Agreement is hereby confirmed and
          ratified and shall remain in full force and effect according to its terms. 

          

     	6.	
          This Amendment Agreement shall be contingent upon and subject to the fulfillment
          on or before August 31, 2007, of each of the following conditions: (1) the Company
          have completed successfully before the signing of this Amendment Agreement the
          Series A1 round of equity financing, in accordance with the documents attached
          hereto as Exhibit B (the “Round of
          Financing”); (2) the Company shall have issued to Plenus, promptly
          after the consummation of the Round of Financing, shares of the Company’s
          Series A1 Preferred Shares, identical in all respects to those which shall have
          been issued to the investors in the Round of Financing, constituting,
          immediately after their issuance to Plenus, on a fully diluted basis (in order
          to remove doubts – including the issuance of all shares, exercise of all
          warrants and conversion of all convertible securities issuable under the
          Contemplated Round of Financing), 2.5% of the issued and outstanding share
          capital of the Company, against cancellation of and surrender by Plenus of the
          Warrants issued to Plenus under the Loan Agreement; (3) the Company shall have
          paid to Plenus on or before August 31, 2007, US$2,500, plus VAT, as
          participation in Plenus’ legal costs incurred in connection with this
          Amendment Agreement. 

          

- 102 -

IN WITNESS WHEREOF, the
parties have caused this Amendment Agreement to be duly executed and delivered as of the
day and year first above written. 

	NEGEVTECH LTD.

By:
——————————————

Its.
——————————————		

	PLENUS II L.P.

By:
——————————————

Its.
——————————————		

	PLENUS II (D.C.M.), LIMITED PARTNERSHIP

By:
——————————————

Its.
——————————————		

- 103 -

SECOND AMENDMENT
AGREEMENT 

This Second Amendment Agreement (the
“Second Amendment Agreement”) is made and entered as of the 30th day of
March 2008, by and among (1) Negevtech Ltd., an Israeli company number 51-163426-3, of 12
Hamada Street, P.O. Box 2264, Rehovot 76122, Israel (the “Company”), and
(2) Plenus II, Limited Partnership, an Israeli limited partnership and Plenus II (D.C.M.),
Limited Partnership, an Israeli limited partnership (collectively,
“Plenus”), both of 16 Abba Eben Avenues, Herzeliya Pituach 46726,
Israel. 

WHEREAS, the parties hereto
are parties to a certain Loan Agreement, dated as of the 11th day of October, 2005, as was
amended by that certain Amendment Agreement, dated August 5, 2007 (the “Loan
Agreement”); and 

WHEREAS, the parties wish to
amend the Loan Agreement as set forth below; 

NOW THEREFORE, the parties
hereby agree as follows: 

     	1.	
          Capitalized terms used but not defined herein, directly or by reference, shall
          have the meaning ascribed thereto in the Loan Agreement. 

          

     	2.	
          Section 2.2 of the Loan Agreement shall be, and it hereby is, amended by adding
          to it a second paragraph as follows: 

          

	 	
“Notwithstanding
the foregoing, in the event that the effective annual rate of interest payable by the
Company to Kreos Capital II Limited (“Kreos”) on the principal
amount of the US$7 million loan (the “Kreos Loan”) which was made
available to the Company pursuant to that certain Loan Agreement dated March 30, 2008
between Kreos and the Company (such agreement, as may be amended from time to time, the
“Kreos Loan Agreement”) is higher than the rate of the Interest, then the
rate of the Interest shall be adjusted and become equal to the effective annual rate
payable on the principal amount of the Kreos Loan, provided  that if such higher
rate of interest is payable only on part of the entire principal amount of the Kreos Loan
(e.g., if the Company borrowed only 60% of the Kreos Loan or if the Company borrowed the
Kreos Loan at different rates of interest and the higher interest is payable only with
respect to 60% of the Kreos Loan), then the adjustment of the Interest as aforesaid shall
be made and apply to a proportionate part of the Principal Amount (i.e., in the above
examples to 60% of the Principal Amount).” 

     	3.	
          Section 3 of the Loan Agreement shall be, and it hereby is, amended, by
          inserting the following clause (vii): 

          

	 	
“(vii)
                     the occurrence of an event of default or any other event which gives
Kreos the                     right pursuant to the Kreos Loan Agreement or any other
agreement entered into                     by the Company and Kreos in connection with
the Kreos Loan to accelerate the                     payment of the Kreos Loan or any
part thereof or any other amount payable to                     Kreos pursuant thereto;".  

     	4.	
          Except as herein expressly agreed, the Loan Agreement is hereby confirmed and
          ratified and shall remain in full force and effect according to its terms. 

          

- 104 -

IN WITNESS WHEREOF, the
parties have caused this Second Amendment Agreement to be duly executed and delivered as
of the day and year first above written. 

	NEGEVTECH LTD.

By:
——————————————

Title
——————————————		

	PLENUS II, LIMITED PARTNERSHIP

By:       PLENUS MANAGEMENT (2004) LTD.
——————————————

Its.      Management Company
——————————————
By:
——————————————

Its: 
——————————————		

	
PLENUS II (D.C.M.), LIMITED PARTNERSHIP

By:       PLENUS MANAGEMENT (2004) LTD.
——————————————

Its.      Management Company
——————————————

By:
——————————————

Its:
——————————————		

- 105 -F-4/A

Exhibit 10.5  

AGREEMENT FOR
THE PROVISION OF A LOAN FACILITY

OF UP TO US$ 7,000,000

Dated March 30, 2008

between

Kreos Capital II Limited, a public
company with limited liability incorporated in Jersey under registered number
87844 whose registered office is at 47 Esplanade, St Helier, Jersey (the “Lender”, which expression shall include
its successors and assigns);

and

Negevtech Ltd., a company
incorporated in Israel under registered number 51-163426-3 whose registered
office is at 12 Hamada street, Rehovot, Israel (“Negevtech Ltd.”), and Negevtech Inc., a company incorporated
under the laws of the State of Delaware whose registered office is at 2880
Lakeside Drive Suite 131, Santa Clara, CA 95054, U.S.A (“Negevtech Inc.”).

WHEREAS:

	
 

	
 

	
1.

	
The Borrower (as defined below) is or
  will be the legal owner of the Charged Assets (as defined below).

	
 

	
 

	
2.

	
The Borrower hereby confirms that (i) it
  shall grant (A) a first priority fixed charge over the Equipment of Negevtech
  Ltd. (B) a second priority fixed charge over the intellectual property of
  Negevtech Ltd. (C) a first priority fixed charge over Equipment owned by  Negevtech Inc. (A,  B and C together, the
“Fixed Charge”) and  (D) a second priority floating charge over
  all the assets of Negevtech Ltd. as of the date hereof or hereafter acquired
  (the “Floating Charge”) to the
  Lender as security for monies borrowed by the Borrower hereunder and (ii) it
  shall grant an assignment by way of security in favour of Lender of all of
  (a) its rights in relation to insurances it is obliged to effect in
  accordance with the terms and conditions of this Loan Agreement provided that
  such security shall be subject to existing rights of any of the Borrower
  Existing Creditors, to the extent they old such rights, and (b) any rights in
  respect of any requisition compensation it might receive in respect of such
  Equipment of the Borrower (the “Borrower
  Deed of Assignment”).

LOAN FACILITY TERMS:

	
 

	
 

	
 

	

  Total Loan Facility

	
 

	

  Up to US$7,000,000

	

  Date of Expiry of Loan Facility

	
 

	

  May 1,  2008
  (subject to Clause 2.4 below)

	

  Advance Payment

	
 

	

  Last month deposit 

	

  Loan Term

	
 

	

  36 monthly payments 

	

  Transaction Fee

	
 

	

  US$ 70,000 and all expenses related to registration of the Security, upon
  execution of this Loan Agreement.

	

  End of Loan Payment

	
 

	

  The higher of: (i) 4.5% of the Loan, (ii) the fair market value of the
  Equipment at the time of the last repayment of the Loan (as set forth in
  Section 12 below).

	
 

	
 

	
1

	
DEFINITIONS

	
In this Loan Agreement, including the
  recitals set out above, unless otherwise defined:

	
 

	
 

	
1.1

	
“Advance Payment” has the meaning given in Clause 4.1 and is in the amount set
  forth above in the Loan Facility Terms.

	
1.2

	
“Applicable Interest
  Rate” has the meaning given in Clause 5.1.

	
 

	
 

	
1.3

	
“Assignee” has the meaning given in Clause 13.5.

	
1.4

	
“Borrower” means each of Negevtech Ltd. and Negevtech
  Inc, jointly and severally, for all matters under this Loan Agreement and the
  Security Documents, without references as to which of the said entities
  issued any drawdown notice

1

	
 

	
 

	
 1.5

	
“Borrower Existing Creditors” the
  existing secured creditor of the Borrower, as listed in Schedule D. 

	
1.6

	
“Borrower Existing Charges” the existing charges registered in the name of the Borrower
in favor of the
  Borrower Existing Creditors, as listed in Schedule D. 

	
 

	
 

	
1.7

	
“Business Day” means any day on which banks are generally open for business in
  both London and Tel Aviv.

	
1.8

	
“Charged
  Assets” means the
  assets, whether tangible or intangible, of the Borrower that are subject to
  either of the Charges.

	
1.9

	
“Charges” means, collectively, the Fixed Charge and the Floating Charge.

	
1.10

	
“Companies Registrar” means the Israeli Registrar of Companies.

	
1.11

	
“Contractual Currency” has the meaning given to it in Clause 4.3.

	
1.12

	
“Date of Expiry of the
  Loan Facility” means the date set forth
  above in the Loan Facility Terms.

	
1.13

	
“Drawdown Date” means, unless otherwise provided herein, the date on which the
  Loan is actually advanced to the Borrower by the Lender.

	
1.14

	
“Drawdown Notice” means a drawdown notice served in accordance with Clause 2.2 in
  the form attached hereto as Schedule
  E.

	
1.15

	
“Equipment” as described in Clause 2.7 (including New Equipment, as defined
  therein) chosen by the Borrower and approved by the Lender as listed in Schedule B and as to be amended or
  supplemented from time to time with the consent of the Lender. The Equipment
  is and will be located within the State of Israel and the United States 

	
1.16

	
“Event of Default” means any of the events or circumstances described in Clause
8.1

	
1.17

	
“Fixed Charge” has the meaning set forth in the preamble above.

	
1.18

	
“Floating Charge” has
  the meaning set forth in the preamble above.

	
1.19

	
“Intellectual
  Property” means all
  intellectual property owned by the Borrower, as such term is defined in the Security Documents, whether registered
  or unregistered.

	
1.20

	
“Interest Period” means in relation to the Loan and any part thereof, a period
  determined in Clause 5.

	
1.21

	
“Lender” has the meaning set forth in the preamble above.

	
1.22

	
“Loan” means the loan to be made in accordance with the terms of this
  Loan Agreement.

	
1.23

	
“Loan Facility” means the loan facility granted by this Loan Agreement.

	
1.24

	
“Loan Term” means, with respect to the Loan, 36 monthly payments due on the
  first Business Day of each calendar month or, if such day is not a Business
  Day, the first Business Day thereafter, commencing on (and including) the
  Drawdown Date of the Loan. 

	
1.25

	
“Ordinary
  Course of Business”  means ordinary course of business
  and to the extent it relates to Intellectual Property, includes any license
  agreement, any distribution agreement, any OEM or similar agreement, any
  manufacturing agreement, any joint development agreement, or any joint
  venture agreement in the context of any of the above, provided, however, that
  an agreement that constitutes an effective transfer, or includes a
  potentially effective transfer, of a significant 

	
 

	
 

	
 

	
part of the
  technology of the Borrower will not be regarded as in the Ordinary Course of
  Business. By way of example, an exclusive, perpetual, worldwide license for a
  core technology of the Borrower or an OEM agreement according to which a
  company was given an exclusive right to use a core technology for all
  potential applications of that technology would not be regarded as in the
  Ordinary Course of Business.  Any
  escrow agreement entered into as part of a transaction which is in the
  Ordinary Course of Business will be regarded as part of the Ordinary Course
  of Business provided that, upon the release of the escrow, the beneficiary of
  the escrow is entitled to use the technology of the Borrower only as may be
  necessary to fulfil the Borrower’s undertakings under the main transaction.

	
1.26

	
“Residual Assets” means
  the assets, whether tangible
  or intangible, of the Borrower that are subject to the Floating Charge.

	
1.27

	
“Security” means, collectively, the Charges, granted by the Borrower in
  favour of the Lender as security for advancement of the Loan by the Lender by
  way of the Security Documents. 

	
1.28

	
“Security Documents” means the debentures, the US security agreement, the US IP
  Security Agreement and the Borrower Deed of Assignment evidencing the
  Charges, the forms of which are attached as Schedule A.

	
1.29

	
“Security Interest” means any
  mortgage, pledge, lien, hypothecation, assignment by way of security, or
  other charge or encumbrance over, of or in the relevant property.

	
1.30

	
“Security Period” means the period commencing on the first Drawdown Date and ending
  on the date on which all amounts due and payable by the Borrower under this
  Loan Agreement and the Security Documents have been repaid.

	
1.31

	
“Taxes” means all present and future income, value added and other taxes,
  levies, imposts, deductions, charges and withholdings in the nature of taxes
  (other than taxes on the profits of the Lender) whatsoever together with
  interest thereon and penalties with respect thereto made on or in respect
  thereof.

	
1.32

	
“Total Loan Facility” means the amount set forth above in the Loan Facility
Terms.

	
1.33

	
“Transaction
  Fee” has the meaning given in Clause 9.1 and is the amount set forth
  above in the Loan Facility Terms.

	
 

	
 

	
2

	
LOAN FACILITY

	
 

	
 

	
2.1.1

	
Lender’s Commitment

	
 

	
Subject to Clause 2.5 below, the Lender
  shall and agrees hereby to make available to the Borrower a loan facility of
  US$7,000,000 under the terms of this Loan Agreement, which shall be advanced
  and made available by the Lender to the Borrower (subject to satisfaction of
  the conditions set forth in Clause 2.5.1) in one instalment, before the Date
  of Expiry of the Loan Facility. Amounts paid (if any) by Lender to Bank Leumi
  as a repayment of the Borrower’s debt to Bank Leumi, pursuant to the side
  letter attached hereto as Schedule G  (the “Side Letter”),
  shall be offset from the total loan facility of $7,000,000. The Drawdown
  Notice shall constitute a separate and independent obligation of the Borrower
  incorporating the terms of this Loan Agreement.

2

	
 

	
 

	
2.1.2

	
The Lender shall not be under any
  commitment to advance the Loan or any part thereof unless the Drawdown Notice complies with
  Clause 2.2 below. 

	
2.1.3

	
In addition, The Lender shall not be
  under any commitment to advance the Loan after the Date of Expiry of the Loan
  Facility or upon the earlier termination of the Loan Facility in accordance
  with Clause 2.4 below.

	
 

	
 

	
2.1A

	
In the event that Lender is required to
  pay Bank Leumi any amounts pursuant to the Side Letter, then such amounts
  shall be deemed a Loan for all purposes of this Agreement, unless Lender
  determines otherwise.  Any such amount
  paid to Bank Leumi by  the Lender
  pursuant to the Side Letter will be immediately repaid by Borrower to Lender.

	
 

	
 

	
2.2

	
Date of Advance of the
  Loan

	
 

	
 

	
2.2.1

	
The Borrower shall formally request the
  advance of the Loan by delivering a completed Drawdown Notice to the Lender.
  The Drawdown Notice shall be delivered to the Lender not later than 11.00am (Israel
  time) ten (10) business days before the Drawdown Date. 

	
 

	
 

	
2.2.3

	
The
  Drawdown Notice shall indicate the currency in which the Loan is requested, to be either US$ or
  Euros. In the event that the Loan is requested in Euros, the Euro value of
  the Loan amount, denominated in US$ hereunder, shall be calculated in
  accordance with the rate of exchange of the US Dollar towards the Euro last
  published by HSBC Bank in London prior to the receipt by the Lender of an
  executed Drawdown Notice for the Loan.

	
2.2.4

	
The Loan will be withdrawn
  by Borrower and shall be extended by the Lender at April 25, 2008, subject to
  the fulfillment of all conditions precedent set forth in Section 2.5 below. 

	
 

	
 

	
2.3

	
Method of Disbursement

	
 

	
The payment by the Lender to the account
  specified in each Drawdown Notice shall constitute the making of the Loan and the
  Borrower shall thereupon become indebted, as principal and direct obligor, to
  the Lender in an amount equal to the Loan.

	
 

	
 

	
2.4

	
Termination or
  Modification of funding commitment

	
 

	
The Lender’s commitment to advance  the Loan until and including the Date of
  Expiry of the Loan Facility is limited in aggregate to the amount of the
  Total Loan Facility; provided, however, that the Lender, acting in its sole
  discretion, may terminate or modify its funding commitment at any time if:

	
2.4.1

	
there is any material adverse change in
  the general affairs, business, management, results of operations, condition
  (financial or otherwise) or prospects of the Borrower, whether or not arising
  from transactions in the Ordinary Course of Business;

	
2.4.2

	
there is any accelerated depreciation in
  the value of the Equipment or the Charged Assets;

	
2.4.3

	
there is any material adverse deviation
  by the Borrower from its business plan (as it may have 

	
 

	
 

	
 

	
 

	
been supplemented in writing) presented
  to the Lender, since the date of this Loan Agreement;

	
2.4.4

	
on either the date of the relevant
  Drawdown Notice or at the relevant Drawdown Date:

	
 

	
(i)

	
an Event of Default has occurred and is
  continuing or would result from the borrowing to be made; or

	
 

	
(ii)

	
the Borrower’s representations and
  warranties in Clause 6 or those which are set out in any Security Document
  would not be true in any material respect if repeated on each of those dates
  with reference to the circumstances then existing.

	
 

	
 

	
 

	
2.5

	
Conditions Precedent
  requirements relative to the advance of the Loan

	
 

	
2.5.1

	
The Lender’s obligation to provide the Loan is subject to the prior
  satisfaction by the Borrower of the following conditions:

	
 

	
(i)

	
the provision of a copy of the resolutions of the Borrower’s boards
  of directors and, to the  extent required, shareholders, authorizing the transactions
  contemplated by this Loan Agreement and the execution of this Loan Agreement and
  associated documents, including but not limited to, the Security Documents;

	
 

	
(ii)

	
all necessary consents of shareholders and other third parties with
  respect to the entering into this Loan Agreement and the execution of
  associated documents have been obtained;
  

	
 

	
(iii)

	
the parties having executed the Security Documents; and

	
 

	
(iv)

	
submission of the Security Documents to the Companies Registrar and
  registration of the Security therein, subject to compliance with all
  applicable laws in respect of such registration within the time frame
  provided for under Israeli law. It is hereby agreed that the Borrower shall bear all expenses related
  to such registration. The Borrower undertakes not to in any manner
  dispose of the Equipment or
  its rights in it until the Security relating thereto has been released by way
  of written notice signed by the Lender to the Companies Registrar.

	
 

	
(v)

	
The Borrower undertakes not to in any manner outside the Ordinary
  Course of Business dispose of the Residual Assets (except with respect to the Equipment which
  shall be subject to sub-clause 2.5.1(iv)), or any of its rights therein until the
  earlier of (i) full repayment of the Loan and all outstanding amounts in
  accordance to the Agreement and the Security Documents, (ii) the Securities
  relating thereto has been released by way of written notice signed by the
  Lender to the Companies Registrar; 

	
 

	
(vi)

	
submission and registration of Security Documents with regard to the
  Borrower’s United States and Israeli patents, trademarks, copyrights and
  applications for patents, trademarks and copyrights in a form to be agreed between the
  parties that maintains the principles of the Security Documents, to the
  Israeli Patent Office and United States Patent and Trademark Office and the United States Copyright Office and registration of
the Security
  therein.  It is hereby agreed that the
  Borrower shall bear all expenses related to such registration.

3

	
 

	
 

	
 

	
 

	
(vii)

	
If the Lender so requires
  submission and registration of the Security Documents in any other country
  that the Borrower has filed a patent or a trademark application except for
  Israel and the United States of America. It is hereby agreed that the
  Borrower shall bear all expenses related to such registration.

	
 

	
(viii)

	
there has been no accelerated
  depreciation in value of the Equipment or the Charged Assets; 

	
 

	
(ix)

	
execution of an additional Equipment
  Charge and the due registration with the Companies Registrar of the same to
  provide for security over the Equipment listed in the schedule attached to
  the additional Equipment Charge; 

	
 

	
(x)

	
delivery by the Borrower to the Lender of
  such documentation in a form and substance satisfactory to the Lender as the
  Lender may reasonably request with respect to invoices, purchase orders and
  the like relating to the Equipment or to future Equipment purchases to be
  subject to this Loan Agreement; and

	
 

	
(xi)

	
the Lender has received the legal opinion
  of [●], the Borrower’s Counsel, in form and substance satisfactory to
  the Lender.

	
 

	
(xii)

	
the Borrower has received the approval of the
  Chief Scientist of the Ministry of Trade, Industry and Labor to create and
  submit the Charges for registration.

	
 

	
(xiii)

	
The Borrower has received the prior written
  approval, in the form set forth in Schedule D, of all Borrower Existing
  Creditors to create and submit the Charges for registration.

	
 

	
(xiv)

	
the Borrower has received the approval of the Investments Center of the Ministry of
  Trade Industry and Labor for the grant of Warrant to the Lender.

	
 

	
 

	
 

	
2.6

	
Waiver Possibility

	
 

	
If the Lender advances all or any part
  of  the Loan to the Borrower prior to
  the satisfaction of all or any of the conditions referred to in Clause 2.5
  (which the Lender has no obligation to do) the Borrower shall satisfy or
  procure the satisfaction of such condition or conditions which have not been
  satisfied within fourteen (14) Business Days of the relevant Drawdown Date
  (or within such longer period as the Lender may agree or specify, provided,
  that the Lender at its discretion may waive the satisfaction of any
  condition.

	
 

	
 

	
2.7

	
Equipment

	
 

	
The existing Equipment of the Borrower as
  listed in Schedule B (as may be amended from time to time to include fixed
  assets) with the consent of the Lender) shall form part of the Security and
  be included in the Fixed Charge. Future purchases of fixed assets purchased
  until (and including) the last day of the Security Period (“New Equipment”) (subject to the Lender’s
  approval) shall in addition be made subject to the provisions of this Loan

	
 

	
 

	
 

	
  Agreement, form part of the Security and be charged by way of either listing
  such New Equipment to the relevant schedule in the Fixed Charge, to be
  amended accordingly, or, at the Lender’s election, as a separate supplemental
  Fixed Charge (which, in each case, shall be part of the Security Documents
  hereunder), and, in either case submitted to and registered with the
  Companies Registrar, on one or more occasions at such time(s) as the Lender
  may request, at the Lender’s discretion (at the Lender’s request, Schedule B hereto shall be replaced or
  supplemented from time to time to reflect any addition of such New Equipment
  as aforesaid); it being agreed that, at any time until the end of the
  Security Period, the Borrower shall be obliged to register any additional
  Fixed Charge in favor of the Lender only at such time as the aggregate value
  of the New Equipment exceeds US$ 50,000, provided that in any event the
  Borrower shall register a Fixed Charge on any New Equipment in favor of the
  Lender within seven (7) days following the last Business Day of each calendar
  year during the Security Period, regardless of the value of such New
  Equipment. For the avoidance of doubt, in addition, the Equipment is subject
  to the Floating Charge and any New Equipment shall become subject to the
  Floating Charge as soon as an interest therein is acquired by Borrower
  (without any further action being required to effect the same). 

	
 

	
 

	
2.8

	
Intellectual
  Property

	
 

	
 

	
 

	
The registered Intellectual
  Property of the Borrower as of the date hereof is listed in Schedule C (as
  may be amended from time to time with the consent of the Lender) and is
  covered by the Fixed Charge.

	
 

	
Future Intellectual Property
  of the Borrower shall, in addition, be made subject to the provisions of this
  Loan Agreement and form part of the Security and be charged by way of either
  listing such new Intellectual Property on the relevant schedule in the Fixed
  Charge, to be amended accordingly, or, at the Lender’s election, as a
  separate supplemental Fixed Charge (and, at the Lender’s request, Schedule C
  hereto shall be replaced or supplemented from time to time to reflect any
  addition of such new Intellectual Property as aforesaid) and, in either case,
  submitted to and registered  with the
  Companies Registrar, and with respect to applications for registration of
  Intellectual Property submitted by the Borrower to the Israeli Patent Office
  the United States Patent and Trademark Office or to the United States
  Copyright Office until (and including) the last day of the Security Period (“New Registered Intellectual
Property”)
  shall, in addition, be submitted to and registered with the Israeli Patent
  Office or the United States Patent and Trademark Office, as applicable; it
  being agreed that, at any time until the end of the Security Period, the
  Borrower shall be obliged to create and register any such additional Fixed
  Charge in favor of the Lender, as follows- 

	
 

	
(i) with respect to New
  Registered Intellectual Property, within fifteen (15) Business Days from
  registration of such New Registered Intellectual Property, and if such
  registration is not possible under the rules governing such New Registered
  Intellectual Property, then, no later than fifteen (15) Business Days from
  the date on which the charge of
  such New Registered Intellectual Property becomes registrable;

4

	
 

	
 

	
 

	
(ii) with respect to other
  new unregistered Intellectual Property, if any, at the request of the Lender
  and in any event within fifteen (15)
  days following the last Business Day of each calendar year; and

	
 

	
(iii) with respect to any
  future applications for registration of Intellectual Property submitted by
  the Borrower in countries other than Israel and the United States, the
  Borrower shall be obliged to notify the Lender within fifteen (15) Business
  Days of the day of filing of each such application, and the Borrower will be
  obliged to create and register an additional Fixed Charge (as aforesaid) in
  favor of the Lender within fifteen (15) Business Days from request of the
  Lender.

	
 

	
For the avoidance of doubt,
  in addition, the Intellectual Property of the Borrower is subject to the
  Floating Charge and any New Intellectual Property of the Borrower shall
  become subject to the Floating Charge as soon as an interest therein is
  acquired by Borrower (without any further action being required to effect the
  same).

	
 

	
 

	
3

	
TERM

	
 

	
 

	
3.1

	
This Loan Agreement is effective upon
  execution by the Lender and shall continue until the later of (i) Date of Expiry
  of the Loan Facility and (ii) the date upon which the Borrower shall have
  performed all its obligations hereunder.

	
 

	
 

	
3.2

	
If the conditions set out in Clause 2.5
  have not been satisfied within forty-five (45) days of the execution of this
  Loan Agreement, the Lender shall in its sole discretion have the option to
  either terminate the Loan Agreement or extend the period in which such
  conditions must be satisfied. 

	
 

	
 

	
4

	
REPAYMENT AND PREPAYMENT

	
 

	
 

	
4.1

	
Advance Payment

	
 

	
On delivery of the Drawdown Notice, the
  Borrower shall pay to the Lender (by way of deduction by Lender from the
  amount of the Loan actually advanced to the Borrower) the Advance Payment
  specified above in the Loan Facility Terms which shall be held by the Lender
  and applied in or towards payment of the last repayment of the Loan.

	
 

	
 

	
4.2

	
Repayments

	
 

	
The Borrower shall repay the Loan
  (principal and interest accrued thereon as provided in Section 5.1 below) by
  way of thirty six (36) equal monthly payments, each such payment in an amount
  equal to (including the interest under Section 5.1 below): (A) in the event
  that the Loan was provided in US$ -  3.33%, or (B) in the event that the Loan
  was provided in Euros - 3.29%, of the amount of the Loan, to be paid to the
  Lender by way of standing order (“Hora’at Keva”) on the first Business Day of
  each calendar month or, if such day is not a Business Day, the first Business
  Day thereafter, commencing on (and including) the Drawdown Date. 

	
 

	
For the avoidance of doubt, it is hereby
  clarified that each of Negevtech Ltd. and 

	
 

	
 

	
 

	
Negevtech Inc., jointly and severally,
  shall be liable for the repayment of the Loan as detailed above,
  notwithstanding which of said entities issued the Drawdown Notice or actually
  received the funds with respect to the Loan. Without derogating from the
  above and notwithstanding anything to the contrary herein, it is hereby
  agreed that the entity which shall actually make any and all repayments of
  the Loan (principal and interest accrued thereon, and including in the case
  of prepayment) shall be Negevtech Ltd. only, unless otherwise agreed in
  writing in advance by the Lender.

	
 

	
 

	
 

	
It is hereby clarified that in the event
  that any inconsistency exists between the repayment terms under this Clause
  4.2 and the repayment terms set forth in Clause 5.1, the repayment terms in
  Clause 4.2 shall supersede and Clause 5.1
  shall be deemed amended as to be consistent with Clause 4.2.  

	
 

	
 

	
4.3

	
Currency of Payments

	
 

	
Repayment of the Loan and payment of all
  other amounts owed to the Lender will be paid in the currency in which the
  Loan has been provided (the “Contractual
  Currency”). The Borrower shall bear the cost in the event of and
  in respect of any conversion of a currency to the Contractual Currency.

	
 

	
 

	
4.4

	
Prepayment 

	
 

	
The Borrower shall be entitled to prepay
  the Loan, either in whole or in part, subject to the following conditions:

	
4.4.1

	
The Borrower shall submit to the Lender
  an irrevocable written request to prepay the Loan, at least 14 Business Days
  in advance, indicating the amount to be prepaid and the date of prepayment,
  provided that such prepayment shall be made on the last day of a calendar
  month.

	
4.4.2

	
The prepayment sum shall equal to the
  aggregate sum of all such monthly payments that are being prepaid (as set
  forth in Clause 4.2 above), which would have been paid throughout the
  remainder of the Loan Term (such amounts to include any interest accrued
  thereon based on the Applicable Interest Rate), discounted at the rate of 3%
  percent per annum to reflect early receipt.

	
 

	
 

	
5

	
INTEREST

	
 

	
 

	
5.1

	
Interest on the drawn down Loan amount
  shall accrue from day to day at a rate of: (A) in the event that the Loan was
  provided in US$ 13% per annum or (B) in the event that the Loan was provided in Euros
  12% per annum (and be compounded in each case on a monthly basis) (the “Applicable Interest Rate”), as reflected
  by thirty-six (36) equal monthly payments, each in an amount equal to (A) in
  the event that the Loan was provided in US$ 3.33% or (B) in the event that the
  Loan was provided in Euros 3.29% in each case of the amount of the Loan, as
  set forth in Clause 4.2 hereto, from the Drawdown Date until the repayment in
  full of the Loan, with payment of the interest being made to the Lender after
  any tax deduction at source including without limitation any withholding tax
  if required under applicable law (but subject however to any special arrangement between the relevant Israeli
  tax authorities and the Lender). Interest on the Loan and each part thereof
  shall be calculated and paid in the Contractual Currency.

5

	
 

	
 

	
 

	
 

	
 

	
5.2

	
Time of payment of any sum due from the
  Borrower is of the essence under this Loan Agreement. Any late payment by the Borrower of any sum
  due to the Lender under this agreement shall bear an interest of 5% per annum
  in excess of the Applicable Interest Rate from the original due date until
  actual payment.

	
 

	
 

	
5.3

	
Unless otherwise instructed in writing by
  the Lender immediately upon each due date for effecting any interest payment
  under or pursuant to this Loan Agreement and the Security Documents to which
  the Borrower is or is to be party, or upon actually paying any interest in advance
  of the due date for any reason, the Borrower shall report such payment to the
  relevant Israeli tax authorities on behalf of the Lender, pay in full the
  value added tax liability arising in accordance with Section 6D of the
  Israeli Value Added Tax Regulations 5736-1976 and the Israeli Value Added Tax
  Law 5735-1975 and shall provide the Lender with documentation evidencing such
  payment, provided, however, that commencing upon Lender’s request and
  continuing afterward until otherwise notified by Lender, Borrower shall pay
  in full any applicable value added tax directly to Lender (or such agent of
  the Lender as the Lender may direct) against delivery of an invoice.

	
 

	
 

	
6

	
REPRESENTATIONS AND WARRANTIES

	
 

	
 

	
6.1

	
The Borrower warrants and represents the
  following as at the date hereof:

	
6.1.1

	
Negevtech Ltd. is a limited company duly
  organised and validly existing under the laws of Israel; and Negevtech Inc.
  is a limited corporation, duly organised and validly existing, under the laws
  of the State of Delaware.

	
6.1.2

	
the Borrower has the corporate capacity,
  and has taken all corporate action and obtained or will obtain ten (10)
  business days before the Drawdown Date, all consents,
  including third party consents, necessary for it:

	
 

	
(i)

	
to execute this Loan Agreement and the
  Security Documents to which the Borrower is or is to be party; 

	
 

	
(ii)

	
to borrow under this Loan Agreement and
  to make all the payments contemplated by, and to comply with all its other
  obligations under this Loan Agreement and the Security Documents;

	
 

	
(iii)

	
to grant the Lender first priority on the
  Fixed Charge over its Equipment, second priority on the Fixed Charge over its
  intellectual property and second priority on the Floating Charge over its
  assets under the Security Documents; and

	
 

	
(iv)

	
to amend the current registry of charges
  of the Borrower reflecting the correct order of seniority.

	
 

	
 

	
 

	
6.1.3

	
this Loan Agreement and the Security
  Documents to which the Borrower is or is to be

	
 

	
 

	
 

	
 

	
party, do now or, as the case may be,
  will, upon execution and delivery (and, where applicable, upon registration
  as provided for in this Loan Agreement and the Security Document):

	
 

	
(i)

	
constitute the Borrower’s legal, valid
  and binding obligations enforceable against the Borrower in accordance with
  their respective terms subject to any applicable law; and

	
 

	
(ii)

	
create legal, valid and binding Security
  Interests enforceable in accordance with their respective terms subject to any applicable law.

	
6.1.4

	
the execution and (where applicable)
  registration by the Borrower of this Loan Agreement and each Security
  Document to which it is or is to be party, and the borrowing by the Borrower
  of the Loan and its compliance with this Loan Agreement and each Security
  Document to which it is or is to be party will not involve or lead to a
  contravention of:

	
 

	
(i)

	
any applicable law or other legal
  requirement; or

	
 

	
(ii)

	
the constitutional documents of the
  Borrower; or

	
 

	
(iii)

	
any contractual or other obligation or
  restriction which is binding on the Borrower or any of the Charged Assets;

	
6.1.5

	
all consents, licences, approvals and
  authorisations required by the Borrower in connection with the entry into,
  performance, validity and enforceability of this Loan Agreement and the
  Security Documents to which it is or is to be party have been or (upon
  execution thereof) shall have been obtained by the Drawdown Date and are (or
  upon execution thereof shall be) in full force and effect during the life of
  this Loan Agreement;

	
6.1.6

	
all financial and other information
  furnished by or on behalf of the Borrower in connection with the negotiation
  of this Loan Agreement and the Security Documents delivered to the Lender
  pursuant to this Loan Agreement or the Security Documents was true and
  accurate when given and there are no other facts or matters the omission of
  which would have made any statement or information contained therein
  misleading in any material respect;

	
6.1.7

	
all payments made or to be made by the
  Borrower under or pursuant to this Loan Agreement and the Security Documents
  to which the Borrower is or is to be party shall be made following deduction
  or withholding for, or on account of, any taxes for which withholding is
  required pursuant to applicable law and/or tax ruling of the applicable tax
  authorities.

	
6.1.8

	
except as set forth in Schedule F
  attached hereto, there is no action, proceeding or claim pending or, so far
  as the Borrower is aware or ought reasonably to be aware, threatened against
  the Borrower or any of its subsidiaries before any court or administrative
  agency which might have a material adverse affect on the business, condition
  of operations of the Borrower or any of its subsidiaries; 

	
6.1.9

	
the Borrower owns with good and
  marketable title all the Charged Assets, free from all Security Interests and
  other interests and rights of every kind except for those permitted by the
  Security Documents, and all the Charged Assets are in good operating
  condition and repair, and are adequate for the uses to which they are being put, and none of such
  Charged Assets is in need of maintenance or repairs except for ordinary,
  routine maintenance and repairs that are not material in nature or cost; and

6

	
 

	
 

	
6.1.10

	
the Borrower’s representation and
  warranties set out in this Clause 6 shall survive the execution of this Loan Agreement
  and shall be deemed to be repeated at the commencement of the Interest Period
  and Drawdown Date with respect to the facts and circumstances then existing,
  as if made at each such time.

	
 

	
 

	
7

	
LIST OF COMMITMENTS

	
 

	
 

	
7.1

	
The Borrower undertakes towards the
  Lender to comply with the following provisions of this Clause 7 at all times
  during the Security Period, except as the Lender may otherwise permit:

	
7.1.1

	
the Borrower will obtain, effect and keep effective all permissions, licences and
  permits which may from time to time be required in connection with the
  Charged Assets; 

	
7.1.2

	
the Borrower will own only for its own
  account the Equipment and will keep the Equipment free from any and all senior, pari passu, junior or subordinated Security Interests and other interests and rights of every kind,
  except for those created and/or permitted by the Security Documents; 

	
7.1.3

	
the Borrower will keep all
  Residual Assets free from any and all senior, pari passu, junior or
  subordinated Security Interests and other interests
  and rights of every kind,
  except for those created and/or permitted by the Security Documents;

	
7.1.4

	
the Borrower will not sell, assign,
  transfer or otherwise dispose of the Equipment or any share therein and shall
  give immediate notice to the Lender of any judicial process or encumbrance
  affecting the Equipment;

	
7.1.4A

	
Other than in the ordinary
  course of business (except with respect to the Equipment which shall be
  subject to Clause 7.1.4), the Borrower will not sell, assign, transfer or
  otherwise dispose of any of the Residual Assets and shall give immediate
  notice to the Lender of any judicial process or encumbrance affecting the
  Residual Assets;

	
7.1.5

	
the Borrower will provide to the Lender
  such information as the Lender may reasonably request concerning the Borrower
  and its affairs (including concerning the Charged Assets); 

	
7.1.6

	
the Borrower will provide the Lender with
  its monthly management accounts, certified by the Borrower’s managing
  director or finance director as fairly presenting the data reflected, within
  thirty (30) days of the end of each month (to include notification of the
  commencement of litigation by or against the Borrower) and, following an
  initial public offering or listing on a recognised stock exchange, provide
  copies of any announcement which is proposed to be made public by the
  Borrower concerning dividends, annual or interim financial positions and
  affairs of the Borrower, and copies of any other documents required to be
  filed with applicable statutory or regulatory authorities or agencies in
  relation to the activities of the Borrower;

	
7.1.7

	
the Borrower will provide the Lender with
  its annual audited consolidated financial statements on the same date as
  delivered to any of the holders of Preferred Stock of the Borrower but in any
  event within ninety (90) 

	
 

	
 

	
 

	
 

	
days of the end of accounting period of
  the Borrower, in each case including statement of operations, balance sheet,
  statement of cash flows and shareholders’ equity, certified by a firm of
  chartered accountants of recognised national standing;

	
7.1.8

	
the Borrower will provide the Lender with
  copies of all notices, minutes, consents and other material that it provides
  to its directors at the same time they are delivered to the directors;

	
7.1.9

	
the Borrower will grant the Lender the
  right to have a representative to meet with the Borrower’s managing director
  and finance director once each quarter throughout the Security Period to
  review and discuss the operating performance and financial condition of the
  Borrower. In addition, upon the occurrence of an Event of Default, the Lender
  shall be entitled to have a representative to attend all meetings of the
  Borrower’s boards of directors in a non-voting observer capacity. The
  Borrower will give notice of all board meetings to the Lender at the same
  time as to its directors.

	
7.1.10

	
the Borrower will maintain in force and
  promptly obtain or renew, and will promptly send certified copies to the
  Lender of, all consents required:

	
 

	
(i)

	
for the Borrower to perform its
  obligations under this Loan Agreement and each Security Document;

	
 

	
(ii)

	
for the validity or enforceability of
  this Loan Agreement and any Security Document; and

	
 

	
(iii)

	
for the Borrower to continue to own the
  Charged Assets, 

	
 

	
and the Borrower will comply with the
  terms of all such consents; and

	
7.1.11

	
the Borrower will notify the Lender as
  soon as it becomes aware of:

	
 

	
(i)

	
the occurrence of an Event of Default; or

	
 

	
(ii)

	
any matter which indicates that an Event
  of Default has occurred, may have occurred or is likely to occur in the
  foreseeable future, and will thereafter keep the Lender fully up to date with
  all developments.

	
7.1.12

	
The Borrower shall affix, or allow the
  Lender to affix, to the Equipment (as listed in Schedule B attached hereto and
  as to be amended from time to time with the consent of the Lender) permanent
  indications of Lender’s interest in the Equipment, and shall not remove or
  hide them and shall comply with Lender’s request in assisting Lender with all
  perfection requirements under the laws of the State of Israel and pursuant to
  and in accordance with the provisions of the Security Documents;

	
7.1.13 

	
The Borrower shall not enter
  into any other financing arrangement, except for equity investments, without
  the prior written approval of the Lender.

	
7.1.14

	
The Borrower shall notify the Lender in
  writing immediately after it has been notified on the release of any of the Charged Assets that are subject to the Borrower Existing Charges, if and when released from the Borrower
  Existing Charges

	
7.1.15

	
The covenants or obligations of Negevtech Ltd. to provide information
  and documents under this Clause ‎7
  shall apply also to such information and documents of any if its subsidiaries, to the extent required to protect the Security Interest
  or any other rights of the Lender.

7

	
 

	
 

	
7.1.16

	
Borrower will repay all amounts owed to Bank Leumi from proceeds of
  Loan, immediately after the Drawdown Date 

	
 

	
 

	
8

	
EVENTS OF DEFAULT

	
 

	
 

	
8.1

	
An Event of Default occurs if:

	
8.1.1

	
the preconditions set out in Clause 2.5
  are not satisfactorily accomplished within forty five (45) days of signature
  of this Loan Agreement unless the period for satisfactory accomplishment is
  extended pursuant to and in accordance with Clause 3.2; or

	
8.1.2

	
the Borrower fails to pay when due and
  payable or (if so payable) on demand any sum payable under this Loan
  Agreement or the Security Documents or under any document relating to the
  Security Documents provided however that such failure to pay shall not
  constitute an Event of Default if such failure has been rectified within five
  (5) Business Days after the Lender has advised the Borrower of such
  non-payment; or

	
8.1.3

	
any other breach by the Borrower occurs
  of any provision of this Loan Agreement or the Security Documents (other than
  a breach covered by this Clause 8.1) unless:

	
(i)

	
the Lender notifies the Borrower in
  writing that it is satisfied that the breach has not put any of the Security
  for the Loan immediately at risk and that it considers that the breach is
  capable of remedy; and 

	
(ii)

	
within ten (10) Business Days after the
  Lender serves on the Borrower a notice of default under this Loan Agreement,
  or such longer period as the Lender may specify in such notice, the Borrower
  remedies the breach to the satisfaction of the Lender; or 

	
8.1.4

	
any representation, warranty or statement
  made by, or by an officer of, the Borrower in this Loan Agreement or the
  Security Documents or in a Drawdown Notice or any other notice or document
  relating to this Loan Agreement or any other Security Document is untrue or
  misleading in any material respect when it is made in a manner that adversely
  affect the Charged Assets; or

	
8.1.5

	
financial indebtedness of the Borrower in
  an amount of at least US$250,000 is not paid when due as a consequence of a
  default with respect thereto or any Security Interest over any assets of the
  Borrower is lawfully enforced; or

	
8.1.6

	
any order shall be made by any competent
  court or any resolution shall be passed by the Borrower for the appointment
  of a liquidator, administrator or receiver of, or for the winding up of, the
  Borrower and, in any such case, such order or resolution is not set aside,
  cancelled or revoked within thirty (30) Business Days after being made or
  passed provided that (i) the Borrower has informed the Lender in writing
  shortly after first notification that it intends to contest such enforcement
  order and (ii) the Borrower has actively contested such enforcement order
  within 30 days, in any relevant forums or is contested by the Borrower in
  good faith in circumstances where the sum of money owed is fully covered by
  reserves; or

	
8.1.7

	
an encumbrancer takes possession of or a
  receiver is appointed over the whole or, in the opinion of the Lender, any
  material part of, the 

	
 

	
 

	
 

	
assets of the Borrower or a distress,
  execution or other process is levied or enforced upon or sued out against the
  whole or a material part of the assets of the Borrower and, in any such case,
  either such procedure is not terminated within thirty (30) Business Days
  after commencement provided that (i) the Borrower has informed the Lender in
  writing shortly after first notification that it intends to contest such
  enforcement order and (ii) the Borrower has actively contested such
  enforcement order within 30 days, in any relevant forums, or is contested by
  the Borrower in good faith in circumstances where the sum of money owed is
  fully covered by reserves; or is contested by the Borrower in good faith in
  circumstances where the sum of money owed is fully covered by reserves; or

	
8.1.8

	
the Borrower shall stop payment or shall
  be unable to, or shall admit inability to, pay its debts as they fall due, or
  shall be adjudicated or found bankrupt or insolvent, or shall enter into any
  composition or other arrangement with its creditors generally; or

	
8.1.9

	
any event shall occur which under the law
  of any jurisdiction to which the Borrower is subject has an effect equivalent
  or similar to any of the events referred to in Clause 8.1.6, 8.1.7 or 8.1.8;
  or

	
8.1.10

	
the Borrower ceases or suspends carrying
  on its business or a material part of its business; or

	
8.1.11

	
it becomes unlawful or impossible (i) for
  the Borrower to discharge any liability under this Loan Agreement or to
  comply with any other material obligation under this Loan Agreement or the
  Security Documents, or (ii) for the Lender to exercise or enforce any right
  under, or to enforce any Security Interest created by, this Loan Agreement or
  the Security Documents; or

	
8.1.12

	
any material provision of this Loan
  Agreement or the Security Documents proves to have been or becomes invalid or
  unenforceable, or a Security Interest created by the Security Documents
  proves to have been or becomes invalid or unenforceable or such a Security
  Interest proves to have ranked after, or loses its priority under this Loan
  Agreement and \or the Security Documents (to the extent such priority applies
  under the Loan agreement and \or the Security Documents) to, another Security
  Interest or any other third party claim or interest, provided however that if
  the Borrower proposes replacement security which the Lender accepts, and such
  replacement security is constituted in a manner acceptable to the Lender
  within such period of time as the Lender may require, such event shall cease
  to constitute an Event of Default; or

	
8.1.13

	
the security constituted by the Security
  Documents is in any way materially imperilled or in jeopardy (including by
  way of decrease in market value below a normal depreciation, but excluding
  depreciation made in accordance with US GAAP) provided however that if the
  Borrower proposes replacement security which the Lender accepts, and such
  replacement security is constituted in a manner acceptable to the Lender
  within such period of time as the Lender may require, such event shall cease
  to constitute an Event of Default; or

	
8.1.14

	
any other event (whether related or not)
  occurs (including, without limitation, a material adverse change, from the
  position applicable as at the date of this Loan Agreement) in the business affairs or condition (financial
  or otherwise) of the Borrower), the effect of which isto materially imperil,
  delay or prevent the due fulfilment by the Borrower of any of its obligations
  or undertakings in this Loan Agreement or the Security Documents; or

8

	
 

	
 

	
8.1.15

	
any event of default (howsoever
  described) specified in any loan agreement signed between the Borrower and
  the Borrower Existing Creditors, or in any security document underlying the
  Borrower Existing Charges shall occur.

	
 

	
 

	
8.2

	
Lender’s Rights

	
 

	
On or at any time following the
  occurrence of any Event of Default the Lender may:

	
8.2.1

	
serve on the Borrower a notice stating
  that all obligations of the Lender to the Borrower under this Loan Agreement
  including (without limitation) the obligation to advance the Loan or any part
  thereof are terminated; and/or

	
8.2.2

	
serve on the Borrower a notice stating
  that the Loan, all accrued interest and all other amounts accrued or owing
  under this Loan Agreement are immediately due and payable; and/or

	
8.2.3

	
take any other action which, as a result
  of the Event of Default or any notice served under Clauses 8.2.1 or 8.2.2
  above, the Lender is entitled to take under the Security Documents or any
  applicable law.

	
 

	
 

	
8.3

	
End of Lender’s
  Obligations

	
 

	
Upon cancellation of this Agreement by
  Lender due to an event under Clause 8.2.1, and, unless expressly waived by
  the Lender at its sole discretion, Clauses 8.2.2 or 8.2.3, all the
  obligations of the Lender to the Borrower under this Loan Agreement shall
  terminate.

	
 

	
 

	
8.4

	
Acceleration

	
 

	
On the service of a notice under Clause
  8.2.2, the Loan, all accrued interest and all other amounts accrued or owing
  from the Borrower under this Loan Agreement and the Security Documents shall
  become immediately due and payable.

	
 

	
 

	
8.5

	
Waiver of Event of
  Default

	
 

	
The Lender, at its sole and absolute
  discretion, may waive any Event of Default hereunder, prior to or after the
  event or events giving rise thereto, provided that such waiver may be
  effected only by written notice provided by the Lender to the Borrower to
  that effect (and subject further to Clause 13.3 below); it being understood
  and acknowledged, that if and so long as no notice of waiver of an Event of
  Default was so provided, such Event of Default shall be deemed as having
  occurred and in effect for all purposes hereunder.

	
 

	
 

	
8.6

	
Change of Control

	
 

	
If there is a Change of Control (as
  defined below) in the Borrower, unless the Lender agrees otherwise by written
  notice to the Borrower, immediately and simultaneously with the closing of
  the transaction that constitutes a Change of Control (i) the Borrower shall
  prepay the outstanding Loan in accordance with Clause 4.4 above; and (ii) all
  other amounts accrued or owing under this Loan Agreement and the Security
  Documents shall become due and payable.

	
 

	
for purposes of this Clause 8.6, a
  “Change of Control” shall mean any of the following 

	
 

	
 

	
 

	
events (whether in one or in a series of
  related transactions): merger, consolidation, or reorganization of the
  Borrower with or into, or the sale of all or substantially all the assets of
  the Borrower, or the sale of securities of the Borrower (whether by the
  Borrower or by shareholders of the Borrower) provided that following any of such events
  the shareholders of the Borrower prior to such event do not hold following
  such event more than 50% of the outstanding shares and the voting power of
  the surviving corporation, or the exclusive license of all or a material portion of the Borrower’s Intellectual Property, to,
  any other entity or person, other than a wholly-owned subsidiary of the
  Borrower. It is hereby agreed that the acquisition of the Borrower by, or a
  merger of the Borrower (or a subsidiary thereof) into, Israel Growth Partners
  Acquisition Corp or a subsidiary thereof shall not constitute a Change of Control.

	
 

	
 

	
9

	
FEES, EXPENSES AND TAXES

	
 

	
 

	
9.1

	
Transaction Fee 

	
 

	
The Parties hereby agree and acknowledge
  that the following transaction fee shall be paid by the Borrower to the
  Lender upon the execution of this Loan Agreement:

	
 

	
(i) a one-time transaction fee in an
  amount of US$ 70,000; and

	
 

	
(ii) all expenses related to registration of the
  Security.

	
 

	
 

	
9.2

	
Documentary Costs

	
 

	
The Borrower shall pay to the Lender on
  the Lender’s demand, the reasonable legal expenses incurred by the Lender in
  connection with:

	
9.2.1

	
the negotiation
  and execution of this Loan Agreement, the Security Documents and all
  ancillary agreements and documents relating thereto and the transactions
  contemplated hereby, up to an aggregate amount of US$15,000 plus applicable
  VAT;; and

	
9.2.2

	
any amendment or supplement to this Loan
  Agreement or the Security Documents or any proposal for such an amendment to
  be made; up
  to an aggregate reasonable amount to be agreed between the parties and

	
9.2.3

	
any consent or waiver by the Lender
  concerned under or in connection with this Loan Agreement or the Security
  Documents or any request for such a consent or waiver up to an aggregate reasonable
  amount to be agreed between the parties; and

	
9.2.4

	
any legal step taken by the Lender with a
  view to the protection, exercise or enforcement of any right or Security
  Interest created by this Loan Agreement or the Security Documents or for any
  similar purpose.

	
 

	
 

	
9.3

	
Tax Indemnity

	
 

	
The Borrower shall promptly pay any
  documentary, stamp or other equivalent tax or duty payable on or by reference
  to this Loan Agreement or the Security Documents, and shall, on the Lender’s
  demand, fully indemnify the Lender against any liabilities and expenses
  resulting from any failure or delay by the Borrower to pay such tax.

	
 

	
 

9

	
 

	
 

	
9.4

	
Recovery of Overdue Fees

	
 

	
Without prejudice to any other provisions
  of this Loan Agreement, the Lender shall be entitled (and the Borrower hereby
  irrevocably authorises the Lender), at any time and from time to time, to
  apply any credit balance to which the Borrower is then entitled on any
  account with the Lender in satisfaction of the sum or sums from time to time
  owing by the Borrower to the Lender under and/or pursuant to this Clause 9.
  The Lender shall give notice to the Borrower of any such application promptly
  thereafter.

	
 

	
 

	
9.5

	
Liability for Taxes

	
9.5.1

	
All payments by the Borrower hereunder
  shall be made without any deduction and free and clear of and without any
  deduction for or on account of any Taxes, except to the extent that the
  Borrower is required by law to make payment subject to any deduction or
  withholding of any Taxes.

	
9.5.2

	
If, at any time, the Borrower becomes
  aware that any deduction or withholding is or will be required, it shall
  promptly notify the Lender and supply details of such requirements.

	
 

	
 

	
10

	
INDEMNITIES

	
 

	
 

	
10.1

	
Indemnity for
  Non-Scheduled Payments

	
 

	
Without derogating from Clause 9 above,
  the Borrower shall indemnify the Lender fully on its demand in respect of all
  expenses, liabilities and losses which are suffered or incurred by the
  Lender, as a result of or in connection with:

	
10.1.1

	
the Loan not being borrowed on the date
  specified in the Drawdown Notice for any reason other than a default by the
  Lender;

	
10.1.2

	
any failure (for whatever reason) by the
  Borrower to make payment of any amount due by Borrower under this Loan
  Agreement or the Security Documents on the due date or, if so payable, on
  demand; or

	
10.1.3

	
the occurrence and/or continuance of an
  Event of Default and/or the acceleration of repayment of the Loan under
  Clause 8.4, and in respect of any taxes under Section 9.3 above for which the
  Lender is liable or held liable in connection with any amount paid or payable
  to the Lender (whether for its own account or otherwise) under this Agreement
  or the Security Documents.

	
 

	
 

	
10.2

	
Third Party Claims
  Indemnity

	
 

	
 

	
 

	
The Borrower
  shall indemnify the Lender fully on its demand in respect of claims, demands,
  proceedings, liabilities, taxes, losses and expenses of every kind,
  including without limitation attorney’s fees (“liability items”) which may be
  made or brought against, or incurred by, the Lender, in any country, in
  relation to:

	
10.2.1

	
any action lawfully taken, or omitted or
  neglected to be taken, under or in connection with this Loan Agreement or the
  Security Documents by the Lender or by any receiver appointed under the
  Security Documents after the occurrence of any Event of Default; and

	
10.2.2

	
any breach or inaccuracy of any of the
  representations and/or warranties contained in Clause 6 hereof or in the
  Security Documents or any breach of any covenant, commitment or agreement by
  the Borrower contained in Clause 

	
 

	
 

	
 

	
 

	
7 hereof or elsewhere in this Loan
  Agreement or in the Security Documents

	
10.2.3

	
any amounts that Lender is required to
  pay to Bank Leumi pursuant to the Side Letter.

	
 

	
 

	
10.3

	
Currency Loss Indemnity

	
 

	
 

	
10.3.1

	
If any sum due from the Borrower to the
  Lender under this Loan Agreement or any Security Documents or under any order
  or judgement relating to this Loan Agreement or any Security Documents has to
  be converted from the Contractual Currency into another currency (the “Payment Currency”) for the purpose of:

	
 

	
(i)

	
making or lodging any claim or proof
  against the Borrower, whether in its liquidation, any arrangement involving
  it or otherwise; 

	
 

	
(ii)

	
obtaining an order or judgement from any
  court or other tribunal; or

	
 

	
(iii)

	
enforcing any such order or judgement,

	
 

	
the Borrower shall indemnify the Lender
  against the loss arising when the amount of the payment actually received by
  the Lender is converted at the available rate of exchange into the
  Contractual Currency.

	
10.3.2

	
In this context, the “available rate of
  exchange” means the rate at which the Lender is able at the opening of
  business (London time) on the business day after it receives the sum
  concerned to purchase the Contractual Currency with the Payment Currency.

	
10.3.3

	
This Clause 10.3 creates a separate
  liability of the Borrower which is distinct from its other liabilities under
  this Loan Agreement and Security Documents and which shall not be merged in
  any judgement or order relating to those other liabilities.

	
 

	
 

	
11.

	
RISK AND INSURANCE

	
 

	
 

	
11.1

	
All risk of loss, theft and damage of and
  to the Charged Assets from any cause whatsoever shall pass to the Borrower on
  delivery of the Charged Assets, and no such event shall relieve the Borrower
  of any obligation under a Drawdown Notice.

	
11.2

	
The Borrower shall from delivery of the
  Charged Assets: 

	
11.2.1

	
bear all risk of loss of or damage to the
  Charged Assets whether insured against or not;

	
11.2.2

	
maintain with an insurance company
  approved by the Lender, in accordance with good and prudent practices of
  owners of such Charged Assets, fully comprehensive insurance under a standard
  form of “new for old” all risks policy including terrorism, third party, and
  business interruption for a 6 month period covering (i) loss of or damage to,
  the Charged Assets and against such other risks as assets of the same type as
  the Charged Assets are normally (or when used in the manner or for the purposes
  for which the Charged Assets are to be used) insured, for an amount equal to
  the greater of 110% of the total unpaid Loan Facility (whether due or not)
  and the new replacement value of the Charged Assets; and (ii) all liability
  whatsoever (including liability of the Lender) to any third party whomsoever
  including any employee, agent or sub-contractor of the Lender or of the
  Borrower who may suffer damage to or loss of property or death or personal injury, whether
  arising directly or indirectly from the Charged Assets or their use;

10

	
 

	
 

	
11.2.3

	
procure that the Lender and, if the
  Lender so requests, any Affiliates of the Lender is an additional insured and
  that the interest of the Lender is noted under the policy and that the Lender
  is loss payee;

	
11.2.4

	
upon request produce to the Lender the
  policy and all premium receipts;

	
11.2.5

	
promptly notify the Lender of any event
  which may give rise to a claim under the policy and upon request irrevocably
  appoint the Lender to be its sole agent to negotiate agree or compromise such
  claim; [CORE CLAUSE] and

	
11.2.6

	
upon request, assign to the Lender the
  Borrower’s rights under such policy and irrevocably appoint the Lender to
  institute any necessary proceedings. 

	
 

	
 

	
12

	
END OF LOAN PAYMENT

	
 

	
 

	
 

	
The Borrower shall be required to pay the Lender, at the
  time of the last payment with respect to the Loan an additional amount equal
  to the highest of: (a) 4.5% of the Loan amount, and (b) the
  fair market value of the Equipment (as listed in Appendix A without updates
  or additions to such equipment) at the time of the last repayment of the Loan
  (the “End of Loan Payment”). Upon payment of
  the End of Loan Payment, subject to the terms of this Loan Agreement and the
  Security Documents (including the making of all payments hereunder and
  thereunder), the Lender shall take appropriate action to release the Security
  over the Charged Assets. Failure to pay End of Loan Payment shall constitute
  a breach of this Loan Agreement.

	
 

	
 

	
13

	
GENERAL

	
 

	
 

	
13.1

	
All agreements, covenants,
  representations and warranties of the Borrower contained in this Loan
  Agreement or in the Drawdown Notices or other documents delivered pursuant
  hereto or in connection herewith shall survive the execution and delivery,
  and the expiration, cancellation or other termination of this Loan Agreement
  and/or the Drawdown Notice except of expiration, cancellation or other
  termination by the Lender which is not due to a breach of this Agreement by
  the Borrower.

	
 

	
 

	
13.2

	
If the Borrower shall fail to perform any
  of its obligations under any Drawdown Notice duly and promptly, the Lender
  may, at its option and at any time, perform the same without waiving any
  default on the part of the Borrower, or any of the Lender’s rights, provided
  that the Lender has delivered to the Borrower a 14 (fourteen) day prior
  notice of its intention to do so and the Borrower did not perform such
  obligation. The Borrower shall reimburse the Lender, within five (5) Business
  Days after additional notice thereof is given to the Borrower, for all expenses
  and liabilities incurred by the Lender in the performance of the Borrower’s
  obligations.

	
 

	
 

	
13.3

	
The Lender’s failure at any time to
  require strict performance by the Borrower shall not constitute waiver of, or
  diminish, the Lender’s right to demand strict compliance with any provision
  of the Loan. Waiver by the Lender 

	
 

	
 

	
 

	
 

	
of any default shall not constitute
  waiver of any other default. No rights or remedies referred to herein shall
  be exclusive, but shall be cumulative and in addition to any other right or
  remedy set forth herein or otherwise available to the Lender at law or in
  equity.

	
 

	
 

	
13.4

	
Reserved

	
 

	
 

	
13.5

	
The Lender shall have the right, in its
  sole discretion, to assign, sell, pledge, grant a Security Interest in or
  otherwise encumber its rights under this Loan Agreement and/or the Drawdown
  Notice to any third party (an “Assignee”), or may be acting as an agent
  for any Assignee in entering into any Drawdown Notice. The Borrower hereby
  irrevocably consents to any assignment, sale, pledge, grant of a Security
  Interest or any other disposal to an Assignee. The Borrower agrees that if it
  receives notice from the Lender or from any such Assignee that it is to make
  payments under this Loan Agreement and/or any Drawdown Notice to such
  Assignee rather than to the Lender, or that any of its other obligations
  under the relevant Drawdown Notice are to be owed to the named Assignee, the
  Borrower shall comply with any such notice. Subject to the foregoing, this
  Loan Agreement and the Drawdown Notice inures to the benefit of, and is
  binding upon, the successors and assigns of the Lender. For the avoidance of
  any doubt, the Assignee shall be a reputable party of good standing in the
  reasonable opinion of the Lender, and in any event not a competitor of the Borrower
  or a company that is engaged in the same industry as the Borrower 

	
 

	
 

	
13.6

	
The Borrower consents to the disclosure
  of information by the Lender to its Affiliates and to other parties to the
  Security Documents only on a need to know basis and provided that such
  parties are subject to confidentiality obligations of the information
  disclosed to them.

	
 

	
 

	
13.7

	
All notices related hereto shall be
  delivered or posted:

	
 

	
(i)

	
to the Lender’s address, with a copy to
  the offices of Sharir, Shiv, Kadouch & Co., Law Offices, 3 Azrieli
  Center, Tel Aviv, Israel, 67023 for the attention of Emmanuel Kadouch, Adv.;
  and

	
 

	
(ii)

	
to the Borrower’s address with an
  additional copy to be delivered or forwarded or provided to Tulchinsky Stern
  Marciano – Ben Zur – Cohen & Co.

	
 

	
or at such other address as either party
  may designate in writing to the other party.

	
 

	
 

	
13.8

	
Clause titles are solely for convenience
  and are not an aid in the interpretation of this Loan Agreement.

	
 

	
 

	
13.9

	
If any provision or remedy herein
  provided is determined invalid under applicable law, such provision shall be
  inapplicable and deemed omitted; but the remaining provisions, including
  remaining default remedies, shall be given effect in accordance with their
  terms.

	
 

	
 

11

	
 

	
 

	
13.10

	
This Loan Agreement, together with the
  Security Documents, constitutes the entire
  agreement between the parties with respect to the subject matter hereof. This
  Loan Agreement may not be modified except in writing executed by the Lender
  and the Borrower. No supplier or agent of any party to this Loan Agreement is
  authorised to bind such party or to waive or modify any term of this Loan
  Agreement.

	
 

	
 

	
13.11

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

	
 

	
 

	
13.12

	
Israeli law shall govern this Loan
  Agreement and the parties accept the exclusive jurisdiction of the courts of
  Tel-Aviv-Jaffa.

12

SCHEDULE A 

FORM OF SECURITY
DOCUMENTS 

DEBENTURE – FIXED
CHARGE (IP) 

UNLIMITED IN AMOUNT 

BETWEEN 

NEGEVTECH LTD.

as Company 

AND 

KREOS CAPITAL II LIMITED

as Creditor 

DATED March 30, 2008 

DEBENTURE – FIXED CHARGE
(IP)  

THIS DEBENTURE – FIXED CHARGE
(IP) is dated the 30th day of March 2008 between: 

	1.  	NEGEVTECH
LTD., a company organized under the laws of the State of           Israel, with
registered number 51-163426-3 and registered office at 12 Hamada           St. Rehovot
76703, Israel (the “Company”); and 

	2.  	Kreos
Capital II Limited, a company incorporated in Jersey under           registered
number 05981165 whose registered office is at 47 Esplanade, St           Helier, Jersey
(the “Creditor”). 

WHEREAS: 

	(A)  	The
Creditor has agreed to lend certain sums to the Company pursuant to an
          agreement between the Company, and the Creditor dated March 30, 2008 (the
          “Venture Loan Agreement”); and 

	(B)  	In
order to secure the full and punctual payment and performance when due of the
          Secured Liabilities, the Company has agreed to: (i) charge by way of second
          ranking fixed charge all the Company’s intellectual property specified in
Schedule 1 to this Debenture in favour of the Creditor in accordance with
          the terms hereof; (ii) charge by way of second ranking floating charge all the
          Company’s assets, in favour of the Creditor in accordance with the terms
of           the Debenture – Floating Charge (as defined below); and (iii) charge by
way           of first ranking fixed charge the Company’s equipment in favour of the
          Creditor in accordance with the terms of the Debenture – Fixed Charge (as
          defined below). 

NOW THEREFORE, the parties
agree as follows: 

	1.  	DEFINITIONS
AND INTERPRETATION  

	 	       1.1 	In
this Debenture, the following terms shall have the following meanings: 

	 		
	 	Bank leumi Fixed Charge 	Means the first rank fixed charge created under that certain debenture fixed charge, by the Company in favour of Bank Leumj Le'Israel, on March 2, 2005.
	 	  
	 	Bank Leumi Floating Charge 	Means the first rank floating charge created, under that certain debenture floating charge, by the Company in favour of Bank Leumi Le Israel, on December 22, 2004.
	 	  
	 	Charged Assets 	Those assets of the Company charged, pledged or assigned by way of charge to the Creditor pursuant to Section 3 (Security).
	 	  
	 	Debenture 	This Debenture - Fixed Charge (IP).
	 	  
	 	Debenture- Floating Charge 	Means the Debenture - Floating Charge signed between the Company and the Creditor on the date hereof, as may be amended from time to time.
	 	  
	 	Debenture - Fixed Charge  	Means the Debenture - Fixed Charge signed between the Company and the Creditor on the date hereof, as may be amended from time to time.

2

	 		
	 	Indemnified Persons 	As defined in Section 12.
	 	  
	 	Insurances 	Means:
	 		

	 	(a) 	all
contracts and policies of insurance executed and/or issued from time to           time in
relation to the Charged Assets, if any;  

	 	(b) 	all
payments to the Company in relation to (a) above, and  

	 	(c) 	all
claims, rights and remedies of the Company arising from (a) and (b) above.  

	 		
	 		
	 		
	 		
	 		
	 	Kreos Fixed Charge (IP) 	Means the second ranking fixed charge created under the Debenture - Fixed Charge (IP).
	 	 
	 	Kreos Floating Charge 	Means the second ranking floating charge created under the Debenture - Floating Charge.

			
		Ordinary Course of Business  	to the  extent  it  relates  to  Intellectual  Property,  includes  any
license agreement,  any sale agreement of products,  services or goods,
any  distribution,  resale  or  agent  agreement,  any  OEM or  similar
agreement,   any   manufacturing   agreement,   any  joint  development
agreement,  or any joint venture agreement in the context of any of the
above,  provided,  however,  that  an  agreement  that  constitutes  an
effective transfer,  or includes a potentially effective transfer, of a
significant  part  of  the  technology  of  the  Borrower  will  not be
regarded as in the Ordinary Course of Business.  By way of example,  an
exclusive,  perpetual,  worldwide  license for a core technology of the
Company or  Negevtech's  Inc. or an OEM agreement  according to which a
company was given an exclusive  right to use a core  technology for all
potential  applications of that technology  would not be regarded as in
the Ordinary Course of Business.  Any escrow agreement  entered into as
part of a transaction  which is in the Ordinary Course of Business will
be regarded as part of the Ordinary  Course of Business  provided that,
upon the  release  of the  escrow,  the  beneficiary  of the  escrow is
entitled  to  use  the  technology  of  the  Borrower  only  as  may be
necessary to fulfil the Company's or the Negevtech Inc.'s  undertakings
under such transaction.

	 		
	 		
	 		
	 		
	 		
	 	Plenus Group 	Means the lenders under the Loan Agreement as of October 11, 2005, namely: Plenus Technologies Ltd, Bank Leumi Le-Israel BM, Golden Gate Bridge Found LP, Plenus II LP and Plenus II (D.S.M.) LP.
	 	  
	 	Plenus Group Fixed Charge 	Means the first rank fixed charge created under that certain debenture fixed charge, by the Company, in favour of the Plenus Group on November 30, 2005.

3

	  		
	 	Plenus Group Floating Charge  	Means the first rank floating charge created under that certain debenture floating charge, by the Company, in favour of the Plenus Group on November 11, 2005.
	 	   
	 	Receiver  	A receiver, trustee, administrator, administrative receiver, custodian, conservator, special manager or other similar official appointed by or on application of the Creditor, pursuant to the terms of this Debenture.
	 	   
	 	Secured Liabilities  	As defined in Section 2.1.
	 	   
	 	Security Interest  	Any mortgage, pledge, lien, hypothecation, assignment by way of security, security interest or other charge or encumbrance over, of or in the relevant property.
	 	   
	 	Venture Loan Agreement  	As defined in the First Recital.
	 		

	 	1.2	Words
and defined terms denoting the singular number include the plural and vice versa and the
use of any gender shall be applicable to all genders. 

	 	       1.3 	The
paragraph  headings are for the sake of  convenience  only and shall not affect the
 interpretation                 of this Debenture.

	 	1.4	The
recitals, schedules, appendices, annexes and exhibits hereto form an integral part of
this Debenture. 

	2.  	PURPOSE  

	 	2.1 	Secured
Liabilities 

	 	
The
Security Interests created by this Debenture are created to secure the full and punctual
payment and performance of all the Company’s obligations pursuant to the Venture
Loan Agreement together with all expenses and other amounts due or to become due from the
Company under the terms of this Debenture including, without limitation, reasonable legal
fees, the fees and costs of any Receiver and any other costs incurred in realizing the
Security Interests granted hereunder (all such amounts, the “Secured Liabilities”). 

	 	2.2 	Prepayment

	 	
Except
as expressly set forth in Section 4.4 of the Venture Loan Agreement or any other
provisions thereof: (i) the Company shall not be entitled to discharge any amount of the
Secured Liabilities prior to the agreed date for payment thereof; and (ii) neither the
Company nor any third party having a right liable to be affected by the charges hereby
created or the realisation thereof shall have any right under Section 13(b) of the Pledge
Law, 5727-1967 or any other statutory provisions in substitution therefor. 

4

	3.  	SECURITY  

	 	3.1 	Creation
of Fixed Charge 

	 	
As
security for the full and punctual payment or performance when due (whether at stated
maturity, acceleration or otherwise) of the Secured Liabilities by the Company, the
Company hereby, absolutely and unconditionally charges in favour of the Creditor by way
ofsecond ranking fixed charge: 

	 	(a) 	the
specific intellectual property of the Company listed in Schedule 1 hereto; (the “Charged
IP”)  

	 	(b) 	to
the extent not included in the foregoing, all present and future rights to
          compensation, indemnity, insurance proceeds, warranty or guaranty accruing to
          the Company by reason of the loss of, damage to or expropriation of, or any
          other event or circumstance with respect to, such Charged IP and all proceeds,
          products and benefits deriving from such Charged IP (including, without
          limitation, those received upon any collection, exchange, sale or other
          disposition of such Charged IP and any property into which such Charged IP are
          converted, whether cash or non-cash but excluding revenues or income resulting,
          directly or indirectly from the use of such Charged IP in the ordinary course
of           business) (Sections 3.1(a) and (b), collectively, the “Charged
          Assets”).  

	 	
In
addition, to the extent required by applicable law to create and perfect a second ranking
fixed charge over the Charged Assets specified in paragraph (b) above, the Company also
assigns such Charged Assets to the Creditor by way of second ranking fixed charge. . 

	 	
In
particular, the Company hereby assigns to and in favour of the Creditor by way of second
ranking fixed charge (and each of the following shall be deemed to be expressly included
in paragraph (b) above): 

	 	(i) 	all
present and future rights, claims and remedies of the Company under and in
          respect of the Insurances (if any) and any monies paid or payable pursuant
          thereto whether held in or for the benefit of any trust or other account
          relative thereto or otherwise;  

	 	(ii) 	all
of the present and future rights, claims and remedies of the Company under           and
deriving from the Property Tax and Compensation Fund Law, 5721-1961 as in           force
from or at any relevant time, and under any other applicable law arising           in
connection with the Charged Assets;  

	 	(iii) 	all
present and future rights to compensation, indemnity, warranty or guaranty
          accruing to the Company by reason of the loss of, damage to or expropriation
of,           or any other event or circumstance with respect to, the Charged Assets.  

5

	 	3.2 	Second
Ranking 

	 	
The
Company specifically acknowledges that all of the Security Interests created by the
Company under Section 3 (Security) of this Debenture shall rank in priority to any other
Security Interests created by the Company over the Charged Assets, other than Plenus
Group Fixed Charge and Bank leumi Fixed Charge.. 

	4.  	PRESERVATION
OF SECURITY  

	 	4.1 	Continuing
Security 

	 	
The
Company declares and agrees that:  

	 	(a) 	the
Security Interests created by this Debenture shall remain in force as
          continuing security for the payment and discharge of the Secured Liabilities
and           shall remain in force notwithstanding any other act, event or matter
whatsoever,           and, subject to Section 4.4, shall be released and discharged only
upon the           execution by the Creditor of a written release of the Security
Interests created           by this Debenture;  

	 	(b) 	the
Security Interests created and the powers conferred by this Debenture are           in
addition to, and are not in any way prejudiced or affected by, any other
          agreement between the Company and the Creditor; and  

	 	(c) 	the
Creditor will not be bound to enforce any other Security Interests before
          enforcing the Security Interests created by this Debenture.  

	 	4.2 	Nature
of Security Interests 

	 	
All
Security Interests that have been or may be created in favour of the Creditor for payment
and performance of the Secured Liabilities shall be independent of one another. 

	 	
For
the avoidance of doubt, it is hereby clarified that this Debenture is in addition to the
Debenture – Floating Charge (and in no manner in lieu thereof or replacement
thereto), and in addition to the Debenture – Fixed Charged (and in no manner in lieu
thereof or replacement thereto), and each of this Debenture, the Debenture – Floating
Charge and the Debenture – Fixed Charge shall independently serve as aforesaid to
secure the Secured Liabilities in their entirety. Without derogating from the generality
of the foregoing or from any other right of the Creditor, the Creditor shall have the
right to act on this Debenture, on the Debenture – Floating Charge, or on the
Debenture Fixed Charged or on all three, in each case in connection with the Security
Interest created by each (including, without limitation, with respect to any and all
assets, properties and rights subject to both this Debenture and the Debenture- Floating
Charge); and no action or omission relating to any such Security Interest shall prevent
or estop the Creditor from invoking such other Security Interest, at the same time or
subsequently. 

6

	 	4.3 	Liability
of the Company; Security Interest Absolute 

	 	(a) 	The
Company is a principal debtor and the Charged Assets are a principal           security
for the Secured Liabilities and, without prejudice to the foregoing,           none of
the rights of the Creditor, the Security Interests created hereunder or           the
liabilities or obligations of the Company or any third party, shall           be
impaired or discharged by (without limitation):  

	 	(i) 	the
Creditor releasing any of the Charged Assets or granting any time or any
          indulgence whatsoever to or making any settlement, composition or arrangement
          with any third party;  

	 	(ii) 	the
Creditor asserting or pursuing, failing or neglecting to assert or pursue,           or
delaying in asserting or pursuing, or waiving, any of its rights or remedies
          against the Company or any third party arising under or by virtue of this
          Debenture or otherwise;  

	 	(iii) 	the
Creditor making any variation, amendment or supplement to this Debenture,           any
agreement between the Creditor and the Company or any third party or any           other
document or instrument from time to time entered into between the Company           or
any third party and the Creditor;  

	 	(iv) 	any
change in the time, manner, place of payment or any other term or condition           of
the Secured Liabilities, or any other amendment or waiver of or under any
          agreement between the Creditor and the Company, the Charged Assets or any
          document related thereto;  

	 	(v) 	the
non-perfection of any Security Interest or any release, waiver or amendment
          from any guaranty for all or part of the Secured Liabilities;  

	 	(vi) 	the
Creditor taking, accepting, varying, dealing with, enforcing, abstaining           from
enforcing, surrendering, exchanging or releasing any Security Interest in
          relation to the Company or any third party in such manner as any of them thinks
          fit, or claiming, proving for, accepting or transferring any payment in respect
          of the Secured Liabilities or the liabilities of any other third party in any
          composition by, or winding up of, any such party and/or any third party, or
          abstaining from so claiming, proving, accepting or transferring;  

	 	(vii) 	any
lack of enforceability of any or all of any agreement between the Creditor           and
the Company, the Secured Liabilities, any security therefore or any           agreement
or document relating thereto; or  

	 	(viii) 	to
the fullest extent permitted by applicable law, any other circumstance that
          could otherwise constitute a defence to or discharge of the Company or any
third           party, other than the payment and performance in full of the Secured
          Liabilities.  

7

	 	(b) 	Notwithstanding
anything to the contrary contained in this Debenture, the           Company will remain
liable to observe and perform all of the conditions and           obligations relating to
or constituting the Secured Liabilities or the Charged           Assets and neither the
Creditor nor any Receiver will be under any obligation or           liability with
respect to the Secured Liabilities or the Charged Assets by           reason of or
arising out of this Debenture. Neither the Creditor nor any           Receiver will be
required in any manner to perform or fulfil any of the           obligations of the
Company in respect of the Secured Liabilities or the Charged           Assets, or to make
any payment, or to make any enquiry as to the nature or           sufficiency of any
payment received by it, or to present or file any claim or           take any action or
to collect any amount or enforce any right or remedy           hereunder.  

	 	(c) 	The
exercise by the Creditor of any of the rights or remedies hereunder shall           not
release the Company from any of its liabilities or obligations under any
          agreement between the Creditor and the Company unless the Secured Liabilities
          have been undisputedly satisfied in full as a result of such exercise by the
          Creditor of any of the rights or remedies hereunder; for the avoidance of
doubt,           the application of the Charged Assets to satisfy part of the Secured
Liabilities           shall not release the Company from its obligation to pay and
perform the Secured           Liabilities in full.  

	 	4.4 	Avoidance
of Payments 

	 	
To
the extent that the Company or any third party on behalf of the Company makes a payment
or payments to the Creditor, or the Creditor enforces any Security Interest or exercises
any right of set-off and such payment or payments or the proceeds of such enforcement or
set-off or any part thereof are subsequently avoided or set aside, declared to be
fraudulent or preferential or required to be repaid or refunded or reduced by virtue of
any applicable law relating to bankruptcy, insolvency, administration, receivership,
liquidation or similar proceedings, the Secured Liabilities or any part thereof
originally intended to be satisfied, and this Debenture and all Security Interests,
rights and remedies therefore shall be revived and continued in full force and effect as
if such payment or payments had not been made or such enforcement or set-off had not
occurred. 

	5.  	REPRESENTATIONS
AND WARRANTIES  

	 	
The
Company hereby represents and warrants as follows:  

	 	5.1	It
is duly incorporated and validly existing under the laws of the State of Israel, with
power and authority to own assets and to carry on its business as now being conducted. 

	 	5.2	It
is duly and validly registered with the Israeli Registrar of Companies, with company
number 51-163426-3. 

	 	5.3	It
has the power to enter into and perform, and has taken all necessary action to authorise
the entry into, performance and delivery of, this Debenture and the transactions
contemplated hereby. 

	 	5.4	All
corporate action on the part of the Company, its directors, and its shareholders
necessary for the authorisation, execution and delivery of the Debenture and the
performance of all of its obligations hereunder have been taken. 

8

	 	       5.5 	This
Debenture  constitutes its legal, valid and binding obligation  enforceable in accordance
with its                 terms.

	 	5.6	All
authorisations required in connection with the entry into, performance, validity and
enforceability of this Debenture and the transactions contemplated hereby have been
obtained or effected and are in full force and effect and no steps have been taken to
revoke or cancel any authorisation obtained or effected. 

	 	5.7	The
Security Interests created hereby constitute a legal, valid and binding, first ranking
fixed charge over the Charged Assets, enforceable in accordance with the terms hereof.
This Debenture confers the Security Interests it purports to confer over all of the
Charged Assets and those Security Interests: 

	 	(a) 	are
not subject to any senior, pari passu, junior or subordinated Security
          Interests (other than (i) any lien arising by operation of law in the ordinary
          course of business; (ii) the Kreos Floating Charge; (iii) the Bank Leumi
          Floating Charge; (iv) the Plenus Group Floating Charge; (v) the Bank Leumi
Fixed           Charge; and (vi) the Plenus Group Fixed Charge.  

	 	(b) 	are
not liable to avoidance, due to (i) bankruptcy, winding-up, creditors’          arrangement
or any other similar insolvency proceedings for the reorganisation           of the
affairs of the Company or (ii) any other similar act or circumstance of           the
Company on the date of execution of this Debenture.  

	 	5.8 	It
has good and marketable title to the Charged Assets, free and clear of any Security
Interests, except for: (i) the Kreos Floating Charge; (ii) the Plenus Group Floating
Charge; (iii) the Bank Leumi Floating Charge; (iv) the Bank Leumi Fixed Charge; and (v)
the Plenus Group Fixed Charge. (With the above five exceptions, the Charged Assets are
not affected by any restriction or condition relating to the transfer of ownership
therein or to the mortgage, pledge or charge thereof under any agreement whatsoever).

	6.  	UNDERTAKINGS  

	 	
The
Company hereby undertakes as follows:  

	 	6.1	It
shall not sell, convey, transfer, grant or lease or otherwise dispose of (or agree to do
any of the foregoing at any future time) any Charged Asset. except, in the Ordinary
Course of Business. 

	 	6.2	It
shall not create or permit to subsist any Security Interest on (or agree to do any of the
foregoing at any future time) any of the Charged Assets (whether ranking in priority or
parity to or after the Security Interests created hereby), except for (i) the Kreos
Floating Charge; (ii) the Plenus Group Floating Charge; (iii) the Bank Leumi Fixed
Charge; and (iv) the Plenus Group Fixed Charge. 

	 	6.3	It
shall defend the Charged Assets or cause the Charged Assets to be defended against, and
shall take, at its expense, any reasonable action necessary to remove any Security
Interest over the Charged Assets (except with regard to the charges specified in Section
5.8 ), and shall defend the right, title and interest of the Creditor in and to any
Charged Asset against the claims and demands of all other persons. 

9

	 	6.5	It
will not take any action which could prejudice or damage the Charged Assets or the
enforceability of the Security Interests created hereunder. 

	 	6.6	It
shall deposit with the Creditor all copies of certificates and other documents of title
or evidence of ownership in the Charged Assets and all ancillary documents relating to or
affecting the Charged Assets as the Creditor may from time to time specify. 

	 	6.7	The
Company shall, forthwith upon the Creditor’s first demand, furnish the Creditor with
any licence, confirmation, certificate, receipt or other document which, in the opinion
of the Creditor, is required or necessary for purpose of proof of compliance by the
Company with its obligations under this Section 6. 

	 	6.8	Without
derogating from the rights of the Creditor, the Company shall notify the Creditor of any
default under this Debenture (and the steps, if any, being taken to remedy it) promptly
upon it becoming aware of the occurrence thereof. In particular, the Company shall: 

	 	(a) 	notify
the Creditor immediately of the occurrence of any seizure, requisition,
          expropriation or forfeiture of the Charged Assets or any part thereof;  

	 	(b) 	notify
the Creditor immediately of the imposition of any attachment or the           issue of
any execution proceedings or of any application for the appointment of           a
receiver, trustee, administrator, administrative receiver, custodian,
          conservator, special manager or other similar official (whether interim or
          permanent) over or with respect to the Charged Assets or any part thereof and
          shall immediately notify the authorities that levied such attachment or issued
          such execution proceedings or received the application for the appointment of
          such receiver, trustee, administrator, administrative receiver, custodian,
          conservator, special manager or other similar official and any third party who
          initiated or applied for such action, of this Debenture in favour of the
          Creditor, and forthwith to take, at the expense of the Company, all steps
          necessary for the discharge of such attachment, execution proceedings or
          appointment, as the case may be.  

	 	6.9	The
Company shall, forthwith following the execution of this Debenture, register the Security
Interests created by this Debenture with the Israeli Registrar of Companies and any other
necessary registry and perfect such registration within 14 days from the date hereof and
shall deliver to the Creditor original certificates of registration of such Security
Interests. 

	 	6.10	For
the avoidance of doubt, and notwithstanding anything to the contrary herein, it is hereby
clarified that with respect to any and all of the assets, properties and rights of the
Company which are, or which may in the future be, subject to the charge under the
Debenture – Floating Charge, and under the Debenture Fixed Charge, the Company is,
and shall be subject to the terms, conditions, limitations and restrictions contained in
the Debenture – Floating Charge and in the Debenture Fixed Charge in addition to
those contained herein 

10

	7.  	RIGHTS
OF THE CREDITOR  

	 	7.1 	Creditor’s
Right to Perform 

	 	
Without
derogating from the rights of the Creditor to realize the Security Interests granted
hereunder, if the Company for any reason whatsoever fails to duly and punctually observe
or perform or comply with any of its obligations under this Debenture, including under
Section 6, the Creditor shall, after giving written notice to the Company, have the
power, on behalf of or in the name of the Company or otherwise, to perform the
obligations and to take any steps which the Creditor may, in its absolute discretion,
consider appropriate with a view to remedying, or mitigating the consequences of the
failure, but without in any way becoming liable therefor and provided that the exercise
of this power, or the failure to exercise it, shall in no circumstances prejudice the
Creditor’s rights hereunder. 

	 	7.2 	Set-Off

	 	
The
Creditor may, at any time, set off any sum, whether in Israeli currency or in foreign
currency, as the case may be, due or owing to the Company from the Creditor in any
account, manner or circumstance whatsoever, against the Secured Liabilities, in whole or
in part. In no event and under no circumstances may the Company set off any sum that may
be due or owing to the Company from the Creditor in any account, manner or circumstance
whatsoever, against the Secured Liabilities, in whole or in part. 

	8.  	DEFAULT
AND ENFORCEMENT  

	 	8.1 	Events
of Default 

	 	
The
occurrence of any of the following events shall constitute an Event of Default:  

	 	(a) 	the
preconditions set out in Clause 2.5 of the Venture Loan Agreement are not
               satisfactorily accomplished within forty five (45) days of signature of
the                Venture Loan Agreement unless the period for satisfactory
accomplishment is                extended pursuant to and in accordance with Clause 3.2
of the Venture Loan                Agreement; or  

	 	(b) 	the
Company fails to pay when due and payable or (if so payable) on demand any
               sum payable under the Venture Loan Agreement or the Security Documents or
under                any document relating to the Security Documents provided however
that such                failure to pay shall not constitute an Event of Default if such
failure has been                rectified within five (5) Business Days after the
Creditor has advised the                Company of such non-payment; or  

	 	(c) 	any
other breach by the Company occurs of any provision of the Venture Loan
               Agreement or the Security Documents (other than a breach covered by this
section                8.1) unless: (i) the Creditor notifies the Company in writing that
it is                satisfied that the breach has not put any of the Security for the
Loan                immediately at risk and that it considers that the breach is capable
of remedy;                and (ii) within ten (10) Business Days after the Creditor
serves on the Company                a notice of default under the Venture Loan
Agreement, or such longer period as                the Creditor may specify in such
notice, the Company remedies the breach to the                satisfaction of the
Creditor; or  

11

	 	(d) 	any
representation, warranty or statement made by, or by an officer of, the
               Company in the Venture Loan Agreement or the Security Documents or in a
Drawdown                Notice or any other notice or document relating to the Venture
Loan Agreement or                any other Security Document is untrue or misleading in
any material respect when                it is made in a manner that adversely affect the
Charged Assets; or  

	 	(e) 	financial
indebtedness of the Company in an amount of at least US$250,000 is not
               paid when due as a consequence of a default with respect thereto or any
Security                Interest over any assets of the Company is lawfully enforced; or  

	 	(f) 	any
order shall be made by any competent court or any resolution shall be passed
               by the Company for the appointment of a liquidator, administrator or
receiver                of, or for the winding up of, the Company and, in any such case,
such order or                resolution is not set aside, cancelled or revoked within
thirty (30) Business                Days after being made or passed and is contested by
the Company, within fifteen                (15) days in good faith in circumstances where
the sum of money owed is fully                covered by reserves; or  

	 	(g) 	an
encumbrancer takes possession of or a receiver is appointed over the whole
               or, in the opinion of the Creditor, any material part of, the assets of
the                Company or a distress, execution or other process is levied or
enforced upon or                sued out against the whole or a material part of the
assets of the Company and,                in any such case, if such procedure is not
terminated within thirty (30)                Business Days after commencement and is
contested by the Company within fifteen                (15) days in good faith in
circumstances where the sum of money owed is fully                covered by reserves; or  

	 	(h) 	the
Company shall stop payment or shall be unable to, or shall admit inability
               to, pay its debts as they fall due, or shall be adjudicated or found
bankrupt or                insolvent, or shall enter into any composition or other
arrangement with its                creditors generally; or  

	 	(i) 	any
event shall occur which under the law of any jurisdiction to which the
               Company is subject has an effect equivalent or similar to any of the
events                referred to in Clause 8.1.6, 8.1.7 or 8.1.8 of the Venture Loan
Agreement; or  

	 	(j) 	the
Company ceases or suspends carrying on its business or a material part of
               its business; or  

	 	(k) 	it
becomes unlawful or impossible (i) for the Company to discharge any liability
               under the Venture Loan Agreement or to comply with any other material
obligation                under the Venture Loan Agreement or the Security Documents, or
(ii) for the                Creditor to exercise or enforce any right under, or to
enforce any Security                Interest created by the Venture Loan Agreement or the
Security Documents; or  

12

	 	(l) 	any
material provision of the Venture Loan Agreement or the Security Documents
               proves to have been or becomes invalid or unenforceable, or a Security
Interest                created by the Security Documents proves to have been or becomes
invalid or                unenforceable or such a Security Interest proves to have ranked
after, or loses                its priority under the Venture Loan Agreement and \or the
Security Documents (to                the extent such priority applies under the Venture
Loan agreement and \or the                Security Documents) to, another Security
Interest or any other third party claim                or interest, provided however that
if the Company proposes replacement security                which the Creditor accepts,
and such replacement security is constituted in a                manner acceptable to the
Creditor within such period of time as the Creditor may                require, such
event shall cease to constitute an Event of Default; or  

	 	(m) 	the
security constituted by the Security Documents is in any way materially
               imperilled or in jeopardy (including by way of decrease in market value
below a                normal depreciation, but excluding depreciation madein
accordance                with US GAAP) provided however that if the Company proposes
replacement security                which the Creditor accepts, and such replacement
security is constituted in a                manner acceptable to the Creditor within such
period of time as the Creditor may                require, such event shall cease to
constitute an Event of Default; or  

	 	(n) 	any
other event (whether related or not) occurs (including, without limitation,
               a material adverse change, from the position applicable as at the date of
the                Venture Loan Agreement) in the business affairs or condition
(financial or                otherwise) of the Company), the effect of which is to
materially imperil, delay                or prevent the due fulfilment by the Company of
any of its obligations or                undertakings in the Venture Loan Agreement or
the Security Documents; or  

	 	(o) 	any
event of default (howsoever described) specified in any loan agreement or
               security document signed by the Company and underlying (i) the Bank Leumi
               Floating Charge; (ii) the Plenus Group Floating charge.; (iii) the Bank
Leumi                Fixed Charge; and (iv) the Plenus Group Fixed Charge.  

	 	8.2 	Creditor’s
Powers 

	 	(a) 	On
the occurrence of an Event of Default, the Creditor shall be entitled to
          declare any or all of the Secured Liabilities immediately due and payable.  

	 	(b) 	On
and at any time after the occurrence of an Event of Default, the Creditor           shall
also be entitled to take all such steps as it sees fit to collect the           Secured
Liabilities from the Company and, in addition thereto, without prejudice           to any
and all of its other rights, to realise the Charged Assets, whether by           the
application for the appointment of a Receiver or whether by any other method
          the Creditor shall see fit.  

	 	(c) 	The
Creditor shall be entitled, in any proceedings concerning the bankruptcy,
          liquidation, winding up or receivership (or similar proceedings) of the
Company,           to:  

13

	 	(i) 	demand,
claim, collect and enforce and prove the Secured Liabilities and give
          acquittance thereunder;  

	 	(ii) 	file
any claims and proofs, give receipts and take all such proceedings and do           all
such things as the Creditor sees fit to recover the Secured Liabilities; and  

	 	(iii) 	receive
all distributions on and payments with respect to the Secured           Liabilities.  

	 	(d) 	The
Creditor shall have all powers that it may, in its full discretion,           determine
to be desirable or necessary to preserve the Charged Assets and the           Security
Interests created hereby and to take all such steps for such purpose at           the
Company’s expense.  

	 	8.3 	Receiver

	 	(a) 	The
Receiver shall have all powers conferred by applicable law, including,           without
limitation, the power:  

	 	(i) 	to
receive into his hands the Charged Assets and to take possession thereof;  

	 	(ii) 	to
require the Company to deliver or otherwise make available such of the           Charged
Assets as the Receiver may demand, and without the consent of the           Company,
enter into any premises of the Company or any place where the Charged           Assets
are located and take possession of any of the Charged Assets;  

	 	(iii) 	to
manage the Company’s business or participate in the management thereof           as
he may see fit;  

	 	(iv) 	to
sell or agree to the sale of the Charged Assets, in whole or in part, or to
          transfer the same in any other manner upon such conditions as he may see fit;  

	 	(v) 	to
exercise any right charged or pledged hereunder in the same manner in which           the
Company was entitled to exercise such right in accordance with the terms of
          Section 20 of the Pledge Law, 5727-1967;  

	 	(vi) 	to
employ accountants, lawyers, surveyors, engineers, quantity surveyors,
          contractors, workmen and others and to purchase or hire materials, tools,
          equipment or supplies;  

	 	(viii) 	to
do any other act or thing which the Receiver considers to be incidental or
          conducive to the exercise of any other right exercisable by him; and  

	 	(ix) 	to
make any other arrangement with respect to the Charged Assets or any part
          thereof as he may see fit.  

14

	 	(b) 	Should
the payment date of the Secured Liabilities or any part thereof not yet           have
fallen due at the time of the sale of the Charged Assets, or the Secured
          Liabilities be due to the Creditor or Receiver on a contingent basis only, then
          the Creditor or Receiver shall be entitled to recover out of the proceeds of
the           sale an amount sufficient to cover the Secured Liabilities (or such part
          thereof) and the amount so recovered and yet to be appropriated to the
discharge           of the amounts due shall be charged to the Creditor or Receiver as
security for,           and be held by the Creditor or Receiver until the discharge in
full of, the           Secured Liabilities.  

	 	(c) 	The
Receiver will be the agent of the Company and the Company alone shall be
          responsible for the acts and omissions of the Receiver and for the
          Receiver’s remuneration. In no event shall the Creditor be responsible for
          the acts and omissions of the Receiver or for the Receiver’s remuneration,
          subject to any applicable law.  

	9.  	DISTRIBUTION
OF PROCEEDS  

	 	
All
moneys and other assets arising from the exercise of the powers of the Receiver or the
Creditor or otherwise received by the Creditor or the Receiver from the realisation of
any Charged Asset shall be applied as follows: 

	 	(a) 	in
payment of the expenses incurred as a result of such realisation (including
               the appointment and remuneration of the Receiver); 

	 	(b) 	in
payment of all other expenses, interest and default interest (if any),
               linkage differentials and any other amounts due and payable by the Company
to                the Creditor and which have not been paid; and 

	 	(c) 	in
payment of all principal sums due and payable by the Company to the Creditor
               and which have not been paid. 

	10.  	FURTHER
ACTION  

	 	
The
Company further covenants with the Creditor from time to time upon demand to execute, at
the Company ‘s own cost, any document or do any reasonable act or thing which: 

	 	(a) 	in
the reasonable determination of the Creditor is necessary to create, perfect,
               register or give effect to any pledge, charge, assignment or Security
Interest                created or intended to be created by this Debenture; 

	 	(b) 	in
the reasonable determination of the Creditor is necessary to preserve or
               protect any of the rights of the Creditor; or 

	 	(c) 	the
Creditor or the Receiver may reasonably specify with a view to facilitating
               the exercise, or the proposed exercise, of any of their powers or the
               protection, management or realisation of the Charged Assets upon the
occurrence                and during the continuance of an Event of Default, 

15

	 	
and
in the event the Company fails to take any such action within such reasonable time, but
in any event within not more than seven (7) Business Days following receipt of a written
request thereof as requested by the Receiver in such notice, the Creditor may, and the
Company hereby appoints the Creditor as its attorney-in-fact to, execute, at the Company’s
expense, any such document or do any such act or thing, in the name and on behalf of the
Company. 

	11.  	PROTECTION
OF CREDITOR AND RECEIVER  

	 	(a) 	Other
than with respect to fraud, or intentional act or omission, neither the
               Creditor nor the Receiver, nor any of their respective agents, managers,
               officers, directors, employees, delegates, and advisers shall be liable
for any                claim, demand, liability, loss, damage, cost or expense which
arises out of the                exercise or the attempted or purported exercise or the
failure to exercise any                of their respective rights, powers and discretions
under this Debenture. 

	 	(b) 	Neither
the Creditor nor any Receiver, nor any of their respective agents,
               managers, officers, directors, employees, delegates, and advisers shall be
under                any duty to exercise any of their respective rights, powers and
discretions                under this Debenture. 

	 	(c) 	To
the extent permitted by applicable law, the Company hereby waives any
               requirements with respect to notice, form or the terms of the exercise by
the                Creditor, the Receiver, or any of their respective agents, managers,
officers,                directors, employees, delegates, and advisers of their
respective rights, powers                and discretions under this Debenture. 

	12.  	INDEMNITY  

	 	12.1	The
Company shall forthwith on demand indemnify each of the Creditor and the Receiver (as
well as any subsidiaries or affiliates of the Creditor or the Receiver) and their
respective officers, directors, agents, managers, servants and employees (the “Indemnified
Persons”) against any loss, expense or liability incurred as a consequence of: 

	 	(a) 	anything
done or purported to be done by or on behalf of the Creditor or the           Receiver
under this Debenture or any other document as a result of any failure           by the
Company to comply with its obligations hereunder;  

	 	(b) 	any
payment in respect of the Secured Liabilities (whether made by the Company           or a
third person) being impaired or declared void for any reason whatsoever;  

	 	(c) 	the
exercise, or attempted or purported exercise, or the consideration of the
          exercise, by or on behalf of the Creditor or the Receiver of any of the rights
          or powers of the Creditor or of the Receiver or any other action taken by or on
          behalf of the Creditor or the Receiver with a view to or in connection with the
          recovery by the Creditor or Receiver of the Secured Liabilities from the
Company           or any other person; or  

16

	 	(d) 	the
carrying out of any other act or matter which the Creditor or the Receiver           or
any other person on behalf of either of them may consider to be necessary for
          the preservation of the Charged Assets,  

	 	
provided
that the Company shall not be obliged to indemnify an Indemnified Person for any loss,
expense or liability incurred solely as a consequence of the fraud or intentional act or
omission of such Indemnified Person.  

	 	12.2	Any
amount payable under Section 12.1 shall bear interest at the annual rate of 13% for the
period commencing from the date on which the Company should have paid such amount until
the date of actual payment of the same; such interest shall form part of the Secured
Liabilities. 

	13.  	COSTS
AND EXPENSES  

	 	13.1	The
Company shall pay all filing fees payable in respect of this Debenture or the
transactions contemplated hereby. 

	 	13.2	All
the fees, costs and expenses incurred by the Creditor or any Receiver in connection with
the preparation, registration, perfecting or enforcement of this Debenture and
realization of the Charged Assets shall be paid by the Company to the Creditor on its
first demand and shall form part of the Secured Liabilities. 

	14.  	ASSIGNMENT  

	 	14.1	This
Debenture shall be binding upon and inure to the benefit of each party hereto and its
permitted successors and assigns. 

	 	       14.2 	The
Company  may not assign or transfer  all or any part of its rights  and/or  obligations
 under this                 Debenture.

	 	14.3	The
Creditor and all those claiming under it shall be entitled, at all times, to assign to
others their rights under this Debenture, together with their rights under the Venture
Loan Agreement pursuant and subject to the provisions of Section 13.5 of the Venture Loan
Agreement, without the necessity of obtaining the Company’s consent thereto. 

	15.  	MISCELLANEOUS  

	 	15.1 	Communications

	 	
All
notices or other communications hereunder shall be in writing and shall be given in
person, by registered mail (registered international air mail if mailed internationally),
by an overnight courier service which obtains a receipt to evidence delivery, or by
facsimile transmission (provided that written electronic confirmation of receipt is
provided) with a copy by mail, addressed as set forth below:  

17

	 		
	 		
	 		
	 		
	 		
	 	If to the Company:	NEGEVTECH Ltd.

12 Hamada St.

Rehovot, Israel 76703

	 	
Attention:
Oz Desheh  

Telephone: (+972)-8-931-2222

Facsimile: (+972)-8-936-6051

With a copy to:

Tulchinsky Stern Marciano, Ben Zur, Cohen & Co.

Museum Tower

4 Berkowitz Street

Tel Aviv 64238, Israel

Attention: David Cohen, Adv.

Telephone: (+972)-3-607 5000

Facsimile: (+972)-3-607 5050

	 		
	 		
	 		
	 		
	 		
	 	If to the Creditor:	Kreos Capital II Limited

47 Esplanade, St Helier, Jersey

Fax: +44 1534 889 884

Attn: The Directors

with a copy to:

Sharir, Shiv, Kadouch & Co., Law Offices

3 Azrieli Center

Tel Aviv 67023, Israel

Fax: +972 3 607 4778

Attn: Emmanuel Kadouch, Adv.

	 	
or
such other address as any party may designate to the other in accordance with the
aforesaid procedure. All communications delivered in person or by courier service shall
be deemed to have been given upon delivery, those given by facsimile transmission shall
be deemed given on the business day following transmission with confirmed answer back,
and all notices and other communications sent by registered mail (or air mail if the
posting is international) shall be deemed given ten (10) days after posting. 

	 	15.2 	Delays
or Omissions; Waiver 

	 	
The
rights of the Creditor may be waived only in writing and specifically; the conduct of the
Creditor shall not be deemed a waiver of any of its rights pursuant to this Debenture
and/or as a waiver or consent on its part as to any breach or failure to meet any of the
terms of this Debenture or as an amendment hereto. A waiver by the Creditor in respect of
a breach by the Company of its obligations shall not be construed as a justification or
excuse for a further breach of its obligations. 

18

	 	
No
delay or omission to exercise any right, power, or remedy accruing to the Creditor upon
any breach or default by the Company shall impair any such right or remedy nor shall it
be construed to be a waiver of any such breach or default, or any acquiescence therein or
in any similar breach or default thereafter occurring. 

	 	
The
rights of the Creditor hereunder may be exercised as often as necessary and are
cumulative and not exclusive of its rights under the general law. 

	 	15.3 	Amendments

	 	
Any
term of this Debenture may be amended or modified only by a written document signed by
the Company and the Creditor. 

	 	15.4 	Realization
of IP 

	 	
The
realization of any of the Company’s Intellectual Property that was created or
developed with the aid of, grants received by or under any benefit plan of the Chief
Scientist of the Ministry of Trade, Industry and Labor, under this Debenture shall be
made in accordance with the Law for the Encouragement of Research and Development in the
Industry – 1984, as may be amended from time to time. 

	 	15.5 	
Entire Agreement 

	 	
This
Debenture together with the Debenture – Floating Charge, the Debenture Fixed Charge
and the Venture Loan Agreement, all as may be amended and/or supplemented from time to
time, contain the entire understanding of the parties with respect to their subject
matter and all prior negotiations, discussions, agreements, commitments and
understandings between them with respect thereto not expressly contained herein shall be
null and void in their entirety, effective immediately with no further action required. 

	 	15.6 	Severability

	 	
If
a provision of this Debenture is or becomes illegal, invalid or unenforceable in any
jurisdiction, that shall not affect the validity or enforceability in that jurisdiction
of any other provision hereof or the validity or enforceability in other jurisdictions of
that or any other provision hereof. 

	 	
Where
provisions of any applicable law resulting in such illegality, invalidity or
unenforceability may be waived, they are hereby waived by each party to the full extent
permitted so that this Debenture shall be deemed valid and binding agreements, in each
case enforceable in accordance with its terms. 

	 	15.7 	Counterparts,
Facsimile Signatures 

	 	
This
Debenture may be executed in any number of counterparts, and this has the same effect as
if the signatures on the counterparts were on a single copy of the Debenture. A signed
Debenture received by a party hereto via facsimile will be deemed an original, and
binding upon the party who signed it. 

19

	 	15.8 	Governing
Law and Venue 

	 	
This
Debenture shall be governed by and construed in accordance with the laws of the State of
Israel, without giving effect to the principles thereof relating to conflict of laws. The
competent courts of the city of Tel Aviv-Jaffa shall have exclusive jurisdiction to hear
all disputes arising in connection with this Debenture and no other courts shall have any
jurisdiction whatsoever in respect of such disputes. 

	 	15.9 	Further
Actions 

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

	 	15.10 	No
Third-Party Beneficiaries 

	 	
Nothing
in this Debenture shall create or confer upon any person or entity, other than the
parties hereto or their respective successors and permitted assigns, any rights,
remedies, obligations or liabilities, except as expressly provided herein. 

	 	       15.11 	VAT 

	 	
To
the extent that any amount payable under this Debenture is subject to VAT by law, the
party paying such amount shall pay the VAT against receipt of a duly issued VAT invoice. 

[rest of page
intentionally left blank] 

20

[Signature Page of
Debenture] 

IN WITNESS WHEREOF this Debenture has
been executed by the Parties, on the day and year first above written. 

	——————————————

NEGEVTECH Ltd.

By:

Title:	——————————————

Kreos Capital II Limited

By:

Title:

21

Schedule 1 

(i) copyrights, in each work of
authorship and derivative work and in the software and firmware related to the products
of the Company known as Negevtech 3100, Negevtech 3200, and Negevtech 3300 (collectively,
the “Products”); (ii) trademarksand trade names
of the Company used in connection with the Products; and (iii) the design of the
Products.  

Patents 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
NT file
  name

	
 

	
Family

	
 

	
Country

	
 

	
#

	
 

	
Official
  No.

	
 

	
Title

	
 

	
Prior
  date

	
 

	
Filing
  date

	
 

	
Issue
date

	
 

	
Status

	
 

	
Attorney

	
 

	
Attorney
  file name

	
 

	
Inventors

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
0001-US-01

	
 

	
1

	
 

	
.US

	
 

	
1

	
 

	
6,693,664

	
 

	
Method and system for fast on-line electro-optical
  detection of wafer defects

	
 

	
30/06/1999

	
 

	
18/06/2002

	
 

	
17/02/2004

	
 

	
Issued

	
 

	
STC

	
 

	
44623

	
 

	
Gad Neumann

	
0001-CN-01

	
 

	
1

	
 

	
CN

	
 

	
1

	
 

	
3100994.8

	
 

	
Method and system for fast on-line electro- optical
  detection of wafer defects

	
 

	
15/01/2003

	
 

	
15/01/2003

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
47776

	
 

	
Gad Neumann

	
0001-EP-01

	
 

	
1

	
 

	
EP

	
 

	
1

	
 

	
EP1439385

	
 

	
Method and system for fast on-line electro- optical
  detection of wafer defects

	
 

	
15/01/2003

	
 

	
15/01/2003

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
46509

	
 

	
Gad Neumann

	
0001-IL-01

	
 

	
1

	
 

	
IL

	
 

	
1

	
 

	
153977

	
 

	
Method and system for fast on-line electro- optical
  detection of wafer defects

	
 

	
15/01/2003

	
 

	
15/01/2003

	
 

	
05/07/2006

	
 

	
Issued

	
 

	
STC

	
 

	
47513

	
 

	
Gad Neumann

	
0001-JP-01

	
 

	
1

	
 

	
JP

	
 

	
1

	
 

	
2003-7400

	
 

	
Method and system for fast on-line electro- optical
  detection of wafer defects

	
 

	
15/01/2003

	
 

	
15/01/2003

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
47606

	
 

	
Gad Neumann

	
0001-KR-01

	
 

	
1

	
 

	
KR

	
 

	
1

	
 

	
2003-2671

	
 

	
Method and system for fast on-line electro- optical
  detection of wafer defects

	
 

	
15/01/2003

	
 

	
15/01/2003

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
47607

	
 

	
Gad Neumann

	
0001-TW_01

	
 

	
1

	
 

	
TW

	
 

	
1

	
 

	
92100777

	
 

	
Method and system for fast on-line electro- optical
  detection of wafer defects

	
 

	
15/01/2003

	
 

	
15/01/2003

	
 

	
11/11/2006

	
 

	
Issued

	
 

	
STC

	
 

	
46793

	
 

	
Gad Neumann

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
0002-US-01

	
 

	
2

	
 

	
.US

	
 

	
1

	
 

	
10/345,097

	
 

	
System for detection of wafer defects

	
 

	
15/01/2003

	
 

	
15/01/2003

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
44420

	
 

	
Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai
  Silberstein

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
0002-US-02

	
 

	
2

	
 

	
.US

	
 

	
2

	
 

	
11/476,342

	
 

	
System for detection of wafer defects

	
 

	
15/01/2003

	
 

	
28/06/2006

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
55071

	
 

	
Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai
  Silberstein

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
0002-US-03

	
 

	
2

	
 

	
.US

	
 

	
3

	
 

	
11/476,356

	
 

	
System for detection of wafer defects

	
 

	
15/01/2003

	
 

	
28/06/2006

	
 

	
-

	
 

	
Closed

	
 

	
STC

	
 

	
55072

	
 

	
Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai
  Silberstein

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
0002-US-04

	
 

	
2

	
 

	
.US

	
 

	
4

	
 

	
11/476,358

	
 

	
System for detection of wafer defects

	
 

	
15/01/2003

	
 

	
28/06/2006

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
55147

	
 

	
Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai
  Silberstein

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
0002-US-05

	
 

	
2

	
 

	
.US

	
 

	
5

	
 

	
11/476,322

	
 

	
System for detection of wafer defects

	
 

	
15/01/2003

	
 

	
28/06/2006

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
55070

	
 

	
Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai
  Silberstein

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
0002-US-06

	
 

	
2

	
 

	
.US

	
 

	
6

	
 

	
11/524,684

	
 

	
System for detection of wafer defects

	
 

	
15/01/2003

	
 

	
21/09/2006

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
55247

	
 

	
Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai
  Silberstein

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
0002-US-07

	
 

	
2

	
 

	
.US

	
 

	
7

	
 

	
7,180,586

	
 

	
System for detection of wafer defects

	
 

	
15/01/2003

	
 

	
23/12/2004

	
 

	
20/02/2007

	
 

	
Issued

	
 

	
STC

	
 

	
53751

	
 

	
Gad Neumann & Noam Dotan

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
0002-EP-01

	
 

	
2

	
 

	
EP

	
 

	
1

	
 

	
EP1606605

	
 

	
System for detection of wafer defects

	
 

	
15/01/2003

	
 

	
11/01/2004

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
55062

	
 

	
Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai
  Silberstein

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
0002-KR-01

	
 

	
2

	
 

	
KR

	
 

	
1

	
 

	
2005-7013165

	
 

	
System for detection of wafer defects

	
 

	
15/01/2003

	
 

	
15/07/2005

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
55065

	
 

	
Gad Neumann

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
0002-TW-01

	
 

	
2

	
 

	
TW

	
 

	
1

	
 

	
93191021

	
 

	
System for detection of wafer defects

	
 

	
15/01/2003

	
 

	
11/01/2004

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
50533

	
 

	
Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai
  Silberstein

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
0002-WO-01

	
 

	
2

	
 

	
WO

	
 

	
1

	
 

	
PCT/IL04/000023

	
 

	
System for detection of wafer defects

	
 

	
15/01/2003

	
 

	
11/01/2004

	
 

	
-

	
 

	
Filed

	
 

	
STC

	
 

	
50446

	
 

	
Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai
  Silberstein

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
0003-US-01

	
 

	
3

	
 

	
.US

	
 

	
1

	
 

	
6,892,013

	
 

	
Fiber optical illumination system

	
 

	
15/01/2003

	
 

	
15/01/2003

	
 

	
10/05/2005

	
 

	
Issued

	
 

	
STC

	
 

	
47667

	
 

	
Dov Furman, Gad Neumann, Noam Dotan

	
0003-US-02

	
 

	
3

	
 

	
.US

	
 

	
2

	
 

	
7,260,298

	
 

	
Fiber optical illumination system

	
 

	
15/01/2003

	
 

	
01/04/2005

	
 

	
21/08/2007

	
 

	
Issued

	
 

	
STC

	
 

	
54590

	
 

	
Dov Furman

	
0003-US-03

	
 

	
3

	
 

	
.US

	
 

	
3

	
 

	
11/709,019

	
 

	
Fiber optical illumination system

	
 

	
15/01/2003

	
 

	
21/02/2007

	
 

	
 

	
 

	
Pending

	
 

	
STC

	
 

	
60473

	
 

	
Dov Furman

	
0003-EP-01

	
 

	
3

	
 

	
EP

	
 

	
1

	
 

	
EP1588210

	
 

	
Fiber optical illumination system

	
 

	
15/01/2003

	
 

	
11/12/2004

	
 

	
 

	
 

	
Pending

	
 

	
STC

	
 

	
55106

	
 

	
Dov Furman, Gad Neumann, Noam Dotan

	
0003-KR-01

	
 

	
3

	
 

	
KR

	
 

	
1

	
 

	
2005-7013118

	
 

	
Fiber optical illumination system

	
 

	
15/01/2003

	
 

	
15/06/2005

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
55109

	
 

	
Dov Furman, Gad Neumann, Noam Dotan

	
0003-TW-01

	
 

	
3

	
 

	
TW

	
 

	
1

	
 

	
93101034

	
 

	
Fiber optical illumination system

	
 

	
15/01/2003

	
 

	
11/12/2004

	
 

	
12/2005

	
 

	
Issued

	
 

	
STC

	
 

	
50532

	
 

	
Dov Furman, Gad Neumann, Noam Dotan

	
0003-WO-01

	
 

	
3

	
 

	
WO

	
 

	
1

	
 

	
PCT/IL04/000022

	
 

	
Fiber optical illumination system

	
 

	
15/01/2003

	
 

	
11/12/2004

	
 

	
 

	
 

	
Filed

	
 

	
STC

	
 

	
50445

	
 

	
Dov Furman, Gad Neumann, Noam Dotan

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
0004-US-01

	
 

	
4

	
 

	
US-Prov

	
 

	
1

	
 

	
60/587,675

	
 

	
Multimode inspection method and apparatus

	
 

	
12/07/2004

	
 

	
12/07/2004

	
 

	
-

	
 

	
Filed

	
 

	
STC

	
 

	
?

	
 

	
Dov Furman, Noam Dotan, Efraim Miklatzky

	
0004-US-02

	
 

	
4

	
 

	
.US

	
 

	
2

	
 

	
7274444

	
 

	
Multimode inspection method and apparatus

	
 

	
12/07/2004

	
 

	
06/07/2005

	
 

	
-

	
 

	
Issued

	
 

	
STC

	
 

	
53885

	
 

	
Dov Furman, Noam Dotan, Efraim Miklatzky

	
0004-US-03

	
 

	
4

	
 

	
.US

	
 

	
3

	
 

	
11/895,204

	
 

	
Multimode inspection method and apparatus

	
 

	
12/07/2004

	
 

	
22/08/2007

	
 

	
-

	
 

	
Filed

	
 

	
STC

	
 

	
62742

	
 

	
Dov Furman, Noam Dotan, Efraim Miklatzky

	
0004-EP-01

	
 

	
4

	
 

	
EP

	
 

	
1

	
 

	
WO2006006148

	
 

	
Multimode inspection method and apparatus

	
 

	
12/07/2004

	
 

	
17/01/2007

	
 

	
 

	
 

	
Pending

	
 

	
STC

	
 

	
60474

	
 

	
Dov Furman, Noam Dotan, Efraim Miklatzky

	
0004-WO-01

	
 

	
4

	
 

	
WO

	
 

	
1

	
 

	
PCT/IL2005/000708

	
 

	
Multimode inspection method and apparatus

	
 

	
12/07/2004

	
 

	
04/06/2005

	
 

	
 

	
 

	
Filed

	
 

	
STC

	
 

	
53886

	
 

	
Dov Furman, Noam Dotan, Efraim Miklatzky

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
0006-US-01

	
 

	
6

	
 

	
.US

	
 

	
1

	
 

	
11/069,712

	
 

	
Method and apparatus for detecting defects in Wafer

	
 

	
28/02/2005

	
 

	
28/02/2005

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
53603

	
 

	
Erez Sali, Tomer Yanir, Mark Wagner, Noam Dotan,
  Yuval Dorfan, Ran Zaslavsky

	
0006-EP-01

	
 

	
6

	
 

	
EP

	
 

	
1

	
 

	
EP1696227

	
 

	
Method and apparatus for detecting defects in Wafer

	
 

	
28/02/2005

	
 

	
28/02/2006

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
57768

	
 

	
Erez Sali, Tomer Yanir, Mark Wagner, Noam Dotan,
  Yuval Dorfan, Ran Zaslavsky

	
0006-IL-01

	
 

	
6

	
 

	
IL

	
 

	
1

	
 

	
173980

	
 

	
Method and apparatus for detecting defects in Wafer

	
 

	
28/02/2005

	
 

	
27/02/2006

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
57769

	
 

	
Erez Sali, Tomer Yanir, Mark Wagner, Noam Dotan,
  Yuval Dorfan, Ran Zaslavsky

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
0007-US-01

	
 

	
7

	
 

	
.US

	
 

	
1

	
 

	
11/068,711

	
 

	
Method and apparatus for detecting defects in wafers
  including alignment of the wafer images so as to induce the same smear in all
  images

	
 

	
28/02/2005

	
 

	
28/02/2005

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
53604

	
 

	
Yuval Dorfan, Ran Zaslavsky, Mark Wagner, Dov Furman,
  Shai Silberstein

	
0007-IL-01

	
 

	
7

	
 

	
IL

	
 

	
1

	
 

	
173864

	
 

	
Method and apparatus for detecting defects in wafers
  including alignment of the wafer images so as to induce the same smear in all
  images

	
 

	
28/02/2005

	
 

	
21/02/2006

	
 

	
-

	
 

	
Pending

	
 

	
STC

	
 

	
57767

	
 

	
Yuval Dorfan, Ran Zaslavsky, Mark Wagner, Dov Furman,
  Shai Silberstein

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

22

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
NT file
  name

	
 

	
Family

	
 

	
Country

	
 

	
#

	
 

	
Official
  No.

	
 

	
Title

	
 

	
Prior
  date

	
 

	
Filing
  date

	
 

	
Issue date

	
 

	
Status

	
 

	
Attorney

	
 

	
Attorney
  file name

	
 

	
Inventors

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
0008-US-01

	
 

	
8

	
 

	
.US

	
 

	
1

	
 

	
11/410,276

	
 

	
Printed Fourier Filtering In Optical Inspection

	
 

	
24/04/2006

	
 

	
24/04/2006

	
 

	
-

	
 

	
Pending

	
 

	
D&M

	
 

	
NRI-1

	
 

	
Dan Fuchs, Shai Silberstein

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
0009-US-01

	
 

	
9

	
 

	
US-Prov

	
 

	
1

	
 

	
60/808,816

	
 

	
Wafer Inspection Using Short-Pulsed Continuous
  Broadband Illumination

	
 

	
26/05/2006

	
 

	
26/05/2006

	
 

	
-

	
 

	
Provisional

	
 

	
D&M

	
 

	
NRI-2

	
 

	
Dov Furman, Shai Silbertein

	
0009-US-02

	
 

	
9

	
 

	
.US

	
 

	
2

	
 

	
11/684,191

	
 

	
Wafer Inspection Using Short-Pulsed Continuous
  Broadband Illumination

	
 

	
26/05/2006

	
 

	
09/03/2007

	
 

	
-

	
 

	
Pending

	
 

	
D&M

	
 

	
NRI-2

	
 

	
Dov Furman, Shai Silbertein

	
0009-EP-01

	
 

	
9

	
 

	
EP

	
 

	
1

	
 

	
EP07252110

	
 

	
Wafer Inspection Using Short-Pulsed Continuous
  Broadband Illumination

	
 

	
26/05/2006

	
 

	
23/05/2007

	
 

	
-

	
 

	
Pending

	
 

	
D&M

	
 

	
NRI-2-EP

	
 

	
Dov Furman, Shai Silbertein

	
0009-IL-01

	
 

	
9

	
 

	
IL

	
 

	
1

	
 

	
183359

	
 

	
Wafer Inspection Using Short-Pulsed Continuous
  Broadband Illumination

	
 

	
26/05/2006

	
 

	
21/05/2007

	
 

	
-

	
 

	
Pending

	
 

	
D&M

	
 

	
NRI-2-IL

	
 

	
Dov Furman, Shai Silbertein

	

	

	

	

	

	

	

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
0010-US-01

	
 

	
10

	
 

	
.US

	
 

	
1

	
 

	
11/503,859

	
 

	
Speckle Reduction Using a Fiber Bundle and Light
  Guide

	
 

	
14/08/2006

	
 

	
14/08/2006

	
 

	
-

	
 

	
Pending

	
 

	
D&M

	
 

	
NRI-3

	
 

	
Dov Furman, Daniel Mandelik

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
0010-IL-01

	
 

	
10

	
 

	
IL

	
 

	
1

	
 

	
184923

	
 

	
Speckle Reduction Using a Fiber Bundle and Light
  Guide

	
 

	
14/08/2006

	
 

	
30/07/2007

	
 

	
-

	
 

	
Pending

	
 

	
D&M

	
 

	
NRI-3-IL

	
 

	
Dov Furman, Daniel Mandelik

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
0011-US-01

	
 

	
11

	
 

	
.US

	
 

	
1

	
 

	
11/590,650

	
 

	
Defect Detection through Image Comparison Using
  Relative Measures

	
 

	
31/10/2006

	
 

	
31/10/2006

	
 

	
-

	
 

	
Allowed

	
 

	
D&M

	
 

	
NRI-4

	
 

	
Erez Sali, Oren Cohen

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
[***]

	
[***]

	
[***]

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
[***]

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
[***]

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
[***]

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
[***]

	
[***]

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

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

23

Trademarks  

	Registration #  	Registration Date  	Owned By  	Mark  
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

List of Trademark
Applications:  

	Serial #  	Filing Date  	Owned By  	Mark  
	77332770	November 19, 2007	Negevtech Ltd.	NEGEVTECH
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

Domain Names:

Negevtech.com

Negevtech.co.il

Negevtech.us

Negevtech.net

Negevtech.info

Negevtech.biz

Negevtech.co.uk

Negevtech.de

Negevtech.cn

Negevtech.com.cn

Negevtech.tw

Negevtech.com.tw
  

24

Copyrights

	Registration #  	Registration Date  	Owned By  	 Title  
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

25

DEBENTURE – FIXED
CHARGE 

UNLIMITED IN AMOUNT 

BETWEEN 

NEGEVTECH LTD.

as Company 

AND 

KREOS CAPITAL II LIMITED

as Creditor 

DATED March __, 2008 

26

DEBENTURE – FIXED CHARGE  

THIS DEBENTURE – FIXED CHARGE
is dated the ___ day of March 2008 between: 

	1.  	NEGEVTECH
LTD., a company organized under the laws of the State of           Israel, with
registered number 51-163426-3 and registered office at 12 Hamada           St. Rehovot
76703, Israel (the “Company”); and 

	2.  	Kreos
Capital II Limited, a company incorporated in Jersey under           registered
number 05981165 whose registered office is at 47 Esplanade, St           Helier, Jersey
(the “Creditor”). 

WHEREAS: 

	(A)  	The
Creditor has agreed to lend certain sums to the Company pursuant to an
          agreement between the Company, and the Creditor dated March 30, 2008 (the
          “Venture Loan Agreement”); and 

	(B)  	In
order to secure the full and punctual payment and performance when due of the
          Secured Liabilities, the Company has agreed to: (i) charge by way of first
          ranking fixed charge all the Company’s equipment specified in Schedule
          I to this Debenture in favour of the Creditor in accordance with the terms
          hereof; (ii) charge by way of second ranking floating charge all the
          Company’s assets, in favour of the Creditor in accordance with the terms
of           the Debenture – Floating Charge (as defined below); and (iii) charge by
way           of second ranking fixed charge the Company’s intellectual property in
          favour of the Creditor in accordance with the terms of the “Debenture
          – Fixed Charge (IP) (as defined below). 

NOW THEREFORE, the parties
agree as follows: 

	1.  	DEFINITIONS
AND INTERPRETATION  

	 	       1.1 	In
this Debenture, the following terms shall have the following meanings:

	 	  	
	 	  	
	 	  	
	 	  	
	 	  	
	 	Bank Leumi Floating Charge  	Means the first rank floating charge created, under that certain debenture floating charge, by the Company in favour of Bank Leumi Le Israel, on December 22, 2004.
	 	   
	 	Charged Assets  	Those assets of the Company charged, pledged or assigned by way of charge to the Creditor pursuant to Section 3 (Security).
	 	   
	 	Debenture  	This Debenture - Fixed Charge.
	 	   
	 	Debenture- Floating Charge  	Means the Debenture - Floating Charge signed between the Company and the Creditor on the date hereof, as may be amended from time to time.
	 	   
	 	Debenture - Fixed Charge (IP)  	Means the Debenture - Fixed Charge (IP) signed between the Company and the Creditor on the date hereof, as may be amended from time to time.
	 	   
	 	Indemnified Persons  	As defined in Section 12.
	 	    
	 	Insurances  	Means:

27

	 	(a) 	all
contracts and policies of insurance executed and/or issued from time to           time in
relation to the Charged Assets;  

	 	(b) 	all
payments to the Company in relation to (a) above, and  

	 	(c) 	all
claims, rights and remedies of the Company arising from (a) and (b) above.  

	 		
	 		
	 		
	 		
	 		
	 	Kreos Fixed Charge (IP) 	Means the second ranking fixed charge created under the Debenture - Fixed Charge (IP).
	 	  
	 	Kreos Floating Charge 	Means the second ranking floating charge created under the Debenture - Floating Charge.
	 	  
	 	Plenus Group 	Means the lenders under the Loan Agreement as of October 11, 2005, namely: Plenus Technologies Ltd, Bank Leumi Le-Israel BM, Golden Gate Bridge Found LP, Plenus II LP and Plenus II (D.S.M.) LP.
	 	  
	 	Plenus Group Floating Charge 	Means the first rank floating charge created under that certain debenture floating charge, by the Company, in favour of the Plenus Group on November 11, 2005.
	 	  
	 	Receiver 	A receiver, trustee, administrator, administrative receiver, custodian, conservator, special manager or other similar official appointed by or on application of the Creditor, pursuant to the terms of this Debenture.
	 	  
	 	Secured Liabilities 	As defined in Section 2.1.
	 	  
	 	Security Interest 	Any mortgage, pledge, lien, hypothecation, assignment by way of security, security interest or other charge or encumbrance over, of or in the relevant property.
	 	  
	 	Venture Loan Agreement 	As defined in the First Recital.
	 		

	 	1.2	Words
and defined terms denoting the singular number include the plural and vice versa and the
use of any gender shall be applicable to all genders. 

	 	       1.3 	The
paragraph  headings are for the sake of  convenience  only and shall not affect the
 interpretation                 of this Debenture.

	 	1.4	The
recitals, schedules, appendices, annexes and exhibits hereto form an integral part of
this Debenture. 

28

	2.  	PURPOSE  

	 	2.1 	Secured
Liabilities 

	 	
The
Security Interests created by this Debenture are created to secure the full and punctual
payment and performance of all the Company’s obligations pursuant to the Venture
Loan Agreement together with all expenses and other amounts due or to become due from the
Company under the terms of this Debenture including, without limitation, reasonable legal
fees, the fees and costs of any Receiver and any other costs incurred in realizing the
Security Interests granted hereunder (all such amounts, the “Secured Liabilities”). 

	 	2.2 	Prepayment

	 	
Except
as expressly set forth in Section 4.4 of the Venture Loan Agreement or any other
provisions thereof: (i) the Company shall not be entitled to discharge any amount of the
Secured Liabilities prior to the agreed date for payment thereof; and (ii) neither the
Company nor any third party having a right liable to be affected by the charges hereby
created or the realisation thereof shall have any right under Section 13(b) of the Pledge
Law, 5727-1967 or any other statutory provisions in substitution therefor. 

	3.  	SECURITY  

	 	3.1 	Creation
of Fixed Charge 

	 	
As
security for the full and punctual payment or performance when due (whether at stated
maturity, acceleration or otherwise) of the Secured Liabilities by the Company, the
Company hereby, absolutely and unconditionally charges in favour of the Creditor by way
of first ranking fixed charge: 

	 	(a) 	the
specific equipment of the Company listed in Schedule 1 hereto; (the
          “Charged  Equipment”)and  

	 	(b) 	to
the extent not included in the foregoing, all present and future rights to
          compensation, indemnity, insurance proceeds, warranty or guaranty accruing to
          the Company by reason of the loss of, damage to or expropriation of, or any
          other event or circumstance with respect to, such Charged Equipment and all
          proceeds, products and benefits deriving from such Charged Equipment
(including,           without limitation, those received upon any collection, exchange,
sale or other           disposition of such Charged Equipment and any property into which
such Charged           Equipment are converted, whether cash or non-cash but excluding
revenues or           income resulting, directly or indirectly from the use of such
Charged Equipment           in the ordinary course of business) (Sections 3.1(a) and (b),
collectively, the           “Charged Assets”).  

	 	
In
addition, to the extent required by applicable law to create and perfect a first ranking
fixed charge over the Charged Assets specified in paragraph (b) above, the Company also
assigns such Charged Assets to the Creditor by way of first ranking fixed charge and
pledge. 

	 	
In
particular, the Company hereby assigns to and in favour of the Creditor by way of first
ranking fixed charge (and each of the following shall be deemed to be expressly included
in paragraph (b) above): 

29

	 	(i) 	all
present and future rights, claims and remedies of the Company under and in
          respect of the Insurances and any monies paid or payable pursuant thereto
          whether held in or for the benefit of any trust or other account relative
          thereto or otherwise;  

	 	(ii) 	all
of the present and future rights, claims and remedies of the Company under           and
deriving from the Property Tax and Compensation Fund Law, 5721-1961 as in           force
from or at any relevant time, and under any other applicable law arising           in
connection with the Charged Assets;  

	 	(iii) 	all
present and future rights to compensation, indemnity, warranty or guaranty
          accruing to the Company by reason of the loss of, damage to or expropriation
of,           or any other event or circumstance with respect to, the Charged Assets.  

	 	3.2 	First
Ranking 

	 	
The
Company specifically acknowledges that all of the Security Interests created by the
Company under Section 3 (Security) of this Debenture shall rank in priority to any other
Security Interests created by the Company. 

	4.  	PRESERVATION
OF SECURITY  

	 	4.1 	Continuing
Security 

	 	
The
Company declares and agrees that:  

	 	(a) 	the
Security Interests created by this Debenture shall remain in force as
          continuing security for the payment and discharge of the Secured Liabilities
and           shall remain in force notwithstanding any other act, event or matter
whatsoever,           and, subject to Section 4.4, shall be released and discharged only
upon the           execution by the Creditor of a written release of the Security
Interests created           by this Debenture;  

	 	(b) 	the
Security Interests created and the powers conferred by this Debenture are           in
addition to, and are not in any way prejudiced or affected by, any other
          agreement between the Company and the Creditor; and  

	 	(c) 	the
Creditor will not be bound to enforce any other Security Interests before
          enforcing the Security Interests created by this Debenture.  

	 	4.2 	Nature
of Security Interests 

	 	
All
Security Interests that have been or may be created in favour of the Creditor for payment
and performance of the Secured Liabilities shall be independent of one another. 

	 	
For
the avoidance of doubt, it is hereby clarified that this Debenture is in addition to the
Debenture – Floating Charge (and in no manner in lieu thereof or replacement
thereto), and in addition to the Debenture – Fixed Charged (IP) (and in no manner in
lieu thereof or replacement thereto), and each of this Debenture, the Debenture –Floating
Charge and the Debenture – Fixed Charge (IP) shall independently serve as aforesaid
to secure the Secured Liabilities in their entirety. Without derogating from the
generality of the foregoing or from any other right of the Creditor, the Creditor shall
have the right to act on this Debenture, on the Debenture – Floating Charge, or on
the Debenture Fixed Charged (IP) or on all three, in each case in connection with the
Security Interest created by each (including, without limitation, with respect to any and
all assets, properties and rights subject to both this Debenture and the Debenture-
Floating Charge); and no action or omission relating to any such Security Interest shall
prevent or estop the Creditor from invoking such other Security Interest, at the same
time or subsequently. 

30

	 	4.3 	Liability
of the Company; Security Interest Absolute 

	 	(a) 	The
Company is a principal debtor and the Charged Assets are a principal           security
for the Secured Liabilities and, without prejudice to the foregoing,           none of
the rights of the Creditor, the Security Interests created hereunder or           the
liabilities or obligations of the Company or any third party, shall           be
impaired or discharged by (without limitation):  

	 	(i) 	the
Creditor releasing any of the Charged Assets or granting any time or any
          indulgence whatsoever to or making any settlement, composition or arrangement
          with any third party;  

	 	(ii) 	the
Creditor asserting or pursuing, failing or neglecting to assert or pursue,           or
delaying in asserting or pursuing, or waiving, any of its rights or remedies
          against the Company or any third party arising under or by virtue of this
          Debenture or otherwise;  

	 	(iii) 	the
Creditor making any variation, amendment or supplement to this Debenture,           any
agreement between the Creditor and the Company or any third party or any           other
document or instrument from time to time entered into between the Company           or
any third party and the Creditor;  

	 	(iv) 	any
change in the time, manner, place of payment or any other term or condition           of
the Secured Liabilities, or any other amendment or waiver of or under any
          agreement between the Creditor and the Company, the Charged Assets or any
          document related thereto;  

	 	(v) 	the
non-perfection of any Security Interest or any release, waiver or amendment
          from any guaranty for all or part of the Secured Liabilities;  

	 	(vi) 	the
Creditor taking, accepting, varying, dealing with, enforcing, abstaining           from
enforcing, surrendering, exchanging or releasing any Security Interest in
          relation to the Company or any third party in such manner as any of them thinks
          fit, or claiming, proving for, accepting or transferring any payment in respect
          of the Secured Liabilities or the liabilities of any other third party in any
          composition by, or winding up of, any such party and/or any third party, or
          abstaining from so claiming, proving, accepting or transferring;  

31

	 	(vii) 	any
lack of enforceability of any or all of any agreement between the Creditor           and
the Company, the Secured Liabilities, any security therefore or any           agreement
or document relating thereto; or  

	 	(viii) 	to
the fullest extent permitted by applicable law, any other circumstance that
          could otherwise constitute a defence to or discharge of the Company or any
third           party, other than the payment and performance in full of the Secured
          Liabilities.  

	 	(b) 	Notwithstanding
anything to the contrary contained in this Debenture, the           Company will remain
liable to observe and perform all of the conditions and           obligations relating to
or constituting the Secured Liabilities or the Charged           Assets and neither the
Creditor nor any Receiver will be under any obligation or           liability with
respect to the Secured Liabilities or the Charged Assets by           reason of or
arising out of this Debenture. Neither the Creditor nor any           Receiver will be
required in any manner to perform or fulfil any of the           obligations of the
Company in respect of the Secured Liabilities or the Charged           Assets, or to make
any payment, or to make any enquiry as to the nature or           sufficiency of any
payment received by it, or to present or file any claim or           take any action or
to collect any amount or enforce any right or remedy           hereunder.  

	 	(c) 	The
exercise by the Creditor of any of the rights or remedies hereunder shall           not
release the Company from any of its liabilities or obligations under any
          agreement between the Creditor and the Company unless the Secured Liabilities
          have been undisputedly satisfied in full as a result of such exercise by the
          Creditor of any of the rights or remedies hereunder; for the avoidance of
doubt,           the application of the Charged Assets to satisfy part of the Secured
Liabilities           shall not release the Company from its obligation to pay and
perform the Secured           Liabilities in full.  

	 	4.4 	Avoidance
of Payments 

	 	
To
the extent that the Company or any third party on behalf of the Company makes a payment
or payments to the Creditor, or the Creditor enforces any Security Interest or exercises
any right of set-off and such payment or payments or the proceeds of such enforcement or
set-off or any part thereof are subsequently avoided or set aside, declared to be
fraudulent or preferential or required to be repaid or refunded or reduced by virtue of
any applicable law relating to bankruptcy, insolvency, administration, receivership,
liquidation or similar proceedings, the Secured Liabilities or any part thereof
originally intended to be satisfied, and this Debenture and all Security Interests,
rights and remedies therefore shall be revived and continued in full force and effect as
if such payment or payments had not been made or such enforcement or set-off had not
occurred. 

32

	5.  	REPRESENTATIONS
AND WARRANTIES  

	 	
The
Company hereby represents and warrants as follows:  

	 	5.1	It
is duly incorporated and validly existing under the laws of the State of Israel, with
power and authority to own assets and to carry on its business as now being conducted. 

	 	5.2	It
is duly and validly registered with the Israeli Registrar of Companies, with company
number 51-163426-3. 

	 	5.3	It
has the power to enter into and perform, and has taken all necessary action to authorise
the entry into, performance and delivery of, this Debenture and the transactions
contemplated hereby. 

	 	5.4	All
corporate action on the part of the Company, its directors, and its shareholders
necessary for the authorisation, execution and delivery of the Debenture and the
performance of all of its obligations hereunder have been taken. 

	 	       5.5 	This
Debenture  constitutes its legal, valid and binding obligation  enforceable in accordance
with its                 terms.

	 	5.6	All
authorisations required in connection with the entry into, performance, validity and
enforceability of this Debenture and the transactions contemplated hereby have been
obtained or effected and are in full force and effect and no steps have been taken to
revoke or cancel any authorisation obtained or effected. 

	 	5.7	The
Security Interests created hereby constitute a legal, valid and binding, first ranking
fixed charge over the Charged Assets, enforceable in accordance with the terms hereof.
This Debenture confers the Security Interests it purports to confer over all of the
Charged Assets and those Security Interests: 

	 	(a) 	are
not subject to any senior, pari passu, junior or subordinated Security
          Interests (other than (i) any lien arising by operation of law in the ordinary
          course of business; (ii) the Kreos Floating Charge; (iii) the Bank Leumi
          Floating Charge; and (iv) the Plenus Group Floating Charge.)  

	 	(b) 	are
not liable to avoidance, due to (i) bankruptcy, winding-up, creditors’          arrangement
or any other similar insolvency proceedings for the reorganisation           of the
affairs of the Company or (ii) any other similar act or circumstance of           the
Company on the date of execution of this Debenture.  

	 	5.8	It
has good and marketable title to the Charged Assets, free and clear of any Security
Interests, except for: (i) the Kreos Floating Charge; (ii) the Plenus Group Floating
Charge; and (iii) the Bank Leumi Floating Charge (With the above three exceptions, the
Charged Assets are not affected by any restriction or condition relating to the transfer
of ownership therein or to the mortgage, pledge or charge thereofunder any agreement
whatsoever. 

	 	       5.9 	The
Charged  Assets  that are  tangible  assets are in all  material  respects in good and
 substantial                 repair.

33

	6.  	UNDERTAKINGS  

	 	
The
Company hereby undertakes as follows:  

	 	6.1	It
shall not sell, convey, transfer, grant or lease or otherwise dispose of (or agree to do
any of the foregoing at any future time) any Charged Asset. 

	 	6.2	It
shall not create or permit to subsist any Security Interest on (or agree to do any of the
foregoing at any future time) any of the Charged Assets (whether ranking in priority or
parity to or after the Security Interests created hereby), except for the Kreos Floating
Charge. 

	 	6.3	It
shall defend the Charged Assets or cause the Charged Assets to be defended against, and
shall take, at its expense, any reasonable action necessary to remove any Security
Interest over the Charged Assets (except with regard to the charges specified in Section
5.8 ), and shall defend the right, title and interest of the Creditor in and to any
Charged Asset against the claims and demands of all other persons. 

	 	6.4	It
shall keep the Charged Assets in good working order and condition (normal wear and tear
excepted). The Company shall repair any damage or defect which may occur to the Charged
Assets, in whole or in part, as the result of use or for any other reason whatsoever.
Without derogating from its obligations hereunder, the Company shall notify the Creditor
immediately of any material damage or defect to the Charged Assets or any part thereof. 

	 	6.5	It
will not take any action which could prejudice or damage the Charged Assets or the
enforceability of the Security Interests created hereunder. 

	 	6.6	It
shall deposit with the Creditor copies of all certificates and other documents of title
or evidence of ownership in the Charged Assets and all ancillary documents relating to or
affecting the Charged Assets as the Creditor may from time to time specify. 

	 	6.7	It
will allow the Creditor or the Creditor’s representatives at all times to inspect
the condition of the Charged Assets wherever the same may be. 

	 	6.8	The
Company shall keep the Charged Assets insured at all times, for full value and shall
comply with the terms of such insurance policies. 

	 	6.9	The
Company shall, forthwith upon the Creditor’s first demand, furnish the Creditor with
any licence, confirmation, certificate, receipt or other document which, in the opinion
of the Creditor, is required or necessary for purpose of proof of compliance by the
Company with its obligations under this Section 6. 

	 	6.10	Without
derogating from the rights of the Creditor, the Company shall notify the Creditor of any
default under this Debenture (and the steps, if any, being taken to remedy it) promptly
upon it becoming aware of the occurrence thereof. In particular, the Company shall: 

	 	(a) 	notify
the Creditor immediately of the occurrence of any seizure, requisition,
          expropriation or forfeiture of the Charged Assets or any part thereof;  

	 	(b) 	notify
the Creditor immediately of the imposition of any attachment or the           issue of
any execution proceedings or of any application for the appointment of           a
receiver, trustee, administrator, administrative receiver, custodian,
          conservator, special manager or other similar official (whether interim or
          permanent) over or with respect to the Charged Assets or any part thereof and
          shall immediately notify the authorities that levied such attachment or issued
          such execution proceedings or received the application for the appointment of
          such receiver, trustee, administrator, administrative receiver, custodian,
          conservator, special manager or other similar official and any third party who
          initiated or applied for such action, of this Debenture in favour of the
          Creditor, and forthwith to take, at the expense of the Company, all steps
          necessary for the discharge of such attachment, execution proceedings or
          appointment, as the case may be.  

34

	 	6.11	The
Company shall, forthwith following the execution of this Debenture, register the Security
Interests created by this Debenture with the Israeli Registrar of Companies and any other
necessary registry and perfect such registration within 14 days from the date hereof and
shall deliver to the Creditor original certificates of registration of such Security
Interests. 

	 	6.12	The
Company shall, forthwith following the execution of this Debenture, deliver to the
Creditor, Notices of Assignment in the form of Schedule 2 and Schedule 4, duly executed
by the Company or on its behalf and addressed, in the case of notices in the form of
Schedule 2, to each of the insurers liable on the Insurances and, in the case of the
notice in the form of Schedule 4, to the relevant governmental agency, and shall use all
reasonable endeavours to ensure that the said insurers and governmental agency execute an
acknowledgement of receipt of every such Notice of Assignment in the form of Schedule 3
and Schedule 5 respectively. 

	 	6.13	For
the avoidance of doubt, and notwithstanding anything to the contrary herein, it is hereby
clarified that with respect to any and all of the assets, properties and rights of the
Company which are, or which may in the future be, subject to the charge under the
Debenture – Floating Charge, and under the Debenture Fixed Charge (IP), the Company
is and shall be subject to the terms, conditions, limitations and restrictions contained
in the Debenture – Floating Charge and in the Debenture Fixed Charge (IP) in
addition to those contained herein 

	7.  	RIGHTS
OF THE CREDITOR  

	 	7.1 	Creditor’s
Right to Perform 

	 	
Without
derogating from the rights of the Creditor to realize the Security Interests granted
hereunder, if the Company for any reason whatsoever fails to duly and punctually observe
or perform or comply with any of its obligations under this Debenture, including under
Section 6, the Creditor shall, after giving written notice to the Company, have the
power, on behalf of or in the name of the Company or otherwise, to perform the
obligations and to take any steps which the Creditor may, in its absolute discretion,
consider appropriate with a view to remedying, or mitigating the consequences of the
failure, but without in any way becoming liable therefor and provided that the exercise
of this power, or the failure to exercise it, shall in no circumstances prejudice the
Creditor’s rights hereunder. 

	 	7.2 	Set-Off

	 	
The
Creditor may, at any time, set off any sum, whether in Israeli currency or in foreign
currency, as the case may be, due or owing to the Company from the Creditor in any
account, manner or circumstance whatsoever, against the Secured Liabilities, in whole or
in part. In no event and under no circumstances may the Company set off any sum that may
be due or owing to the Company from the Creditor in any account, manner or circumstance
whatsoever, against the Secured Liabilities, in whole or in part. 

35

	8.  	DEFAULT
AND ENFORCEMENT  

	 	8.1 	Events
of Default 

	 	
The
occurrence of any of the following events shall constitute an Event of Default:  

	 	(p) 	the
preconditions set out in Clause 2.5 of the Venture Loan Agreement are not
               satisfactorily accomplished within forty five (45) days of signature of
the                Venture Loan Agreement unless the period for satisfactory
accomplishment is                extended pursuant to and in accordance with Clause 3.2
of the Venture Loan                Agreement; or  

	 	(q) 	the
Company fails to pay when due and payable or (if so payable) on demand any
               sum payable under the Venture Loan Agreement or the Security Documents or
under                any document relating to the Security Documents provided however
that such                failure to pay shall not constitute an Event of Default if such
failure has been                rectified within five (5) Business Days after the
Creditor has advised the                Company of such non-payment; or  

	 	(r) 	any
other breach by the Company occurs of any provision of the Venture Loan
               Agreement or the Security Documents (other than a breach covered by this
section                8.1) unless: (i) the Creditor notifies the Company in writing that
it is                satisfied that the breach has not put any of the Security for the
Loan                immediately at risk and that it considers that the breach is capable
of remedy;                and (ii) within ten (10) Business Days after the Creditor
serves on the Company                a notice of default under the Venture Loan
Agreement, or such longer period as                the Creditor may specify in such
notice, the Company remedies the breach to the                satisfaction of the
Creditor; or  

	 	(s) 	any
representation, warranty or statement made by, or by an officer of, the
               Company in the Venture Loan Agreement or the Security Documents or in a
Drawdown                Notice or any other notice or document relating to the Venture
Loan Agreement or                any other Security Document is untrue or misleading in
any material respect when                it is made in a manner that adversely affect the
Charged Assets; or  

	 	(t) 	financial
indebtedness of the Company in an amount of at least US$250,000 is not
               paid when due as a consequence of a default with respect thereto or any
Security                Interest over any assets of the Company is lawfully enforced; or  

	 	(u) 	any
order shall be made by any competent court or any resolution shall be passed
               by the Company for the appointment of a liquidator, administrator or
receiver                of, or for the winding up of, the Company and, in any such case,
such order or                resolution is not set aside, cancelled or revoked within
thirty (30) Business                Days after being made or passed and is contested by
the Company, within fifteen                (15) days in good faith in circumstances where
the sum of money owed is fully                covered by reserves; or  

36

	 	(v) 	an
encumbrancer takes possession of or a receiver is appointed over the whole
               or, in the opinion of the Creditor, any material part of, the assets of
the                Company or a distress, execution or other process is levied or
enforced upon or                sued out against the whole or a material part of the
assets of the Company and,                in any such case, if such procedure is not
terminated within thirty (30)                Business Days after commencement and is
contested by the Company within fifteen                (15) days in good faith in
circumstances where the sum of money owed is fully                covered by reserves; or  

	 	(w) 	the
Company shall stop payment or shall be unable to, or shall admit inability
               to, pay its debts as they fall due, or shall be adjudicated or found
bankrupt or                insolvent, or shall enter into any composition or other
arrangement with its                creditors generally; or  

	 	(x) 	any
event shall occur which under the law of any jurisdiction to which the
               Company is subject has an effect equivalent or similar to any of the
events                referred to in Clause 8.1.6, 8.1.7 or 8.1.8 of the Venture Loan
Agreement; or  

	 	(y) 	the
Company ceases or suspends carrying on its business or a material part of
               its business; or  

	 	(z) 	it
becomes unlawful or impossible (i) for the Company to discharge any liability
               under the Venture Loan Agreement or to comply with any other material
obligation                under the Venture Loan Agreement or the Security Documents, or
(ii) for the                Creditor to exercise or enforce any right under, or to
enforce any Security                Interest created by the Venture Loan Agreement or the
Security Documents; or  

	 	(aa) 	any
material provision of the Venture Loan Agreement or the Security Documents
               proves to have been or becomes invalid or unenforceable, or a Security
Interest                created by the Security Documents proves to have been or becomes
invalid or                unenforceable or such a Security Interest proves to have ranked
after, or loses                its priority under this Venture Loan Agreement and \or the
Security Documents                (to the extent such priority applies under the Venture
Loan agreement and \or                the Security Documents) to, another Security
Interest or any other third party                claim or interest, provided however that
if the Company proposes replacement                security which the Creditor accepts,
and such replacement security is                constituted in a manner acceptable to the
Creditor within such period of time as                the Creditor may require, such
event shall cease to constitute an Event of                Default; or  

	 	(bb) 	the
security constituted by the Security Documents is in any way materially
               imperilled or in jeopardy (including by way of decrease in market value
below a                normal depreciation, but excluding depreciation made in accordance
with US GAAP)                provided however that if the Company proposes replacement
security which the                Creditor accepts, and such replacement security is
constituted in a manner                acceptable to the Creditor within such period of
time as the Creditor may                require, such event shall cease to constitute an
Event of Default; or  

37

	 	(cc) 	any
other event (whether related or not) occurs (including, without limitation,
               a material adverse change, from the position applicable as at the date of
the                Venture Loan Agreement) in the business affairs or condition
(financial or                otherwise) of the Company), the effect of which isto
materially imperil, delay                or prevent the due fulfilment by the Company of
any of its obligations or                undertakings in the Venture Loan Agreement or
the Security Documents; or  

	 	(dd) 	any
event of default (howsoever described) specified in any loan agreement or
               security document signed by the Company and underlying the Bank Leumi
Floating                Charge or the Plenus Group Floating charge.  

	 	8.2 	Creditor’s
Powers 

	 	(a) 	On
the occurrence of an Event of Default, the Creditor shall be entitled to
          declare any or all of the Secured Liabilities immediately due and payable.  

	 	(b) 	On
and at any time after the occurrence of an Event of Default, the Creditor           shall
also be entitled to take all such steps as it sees fit to collect the           Secured
Liabilities from the Company and, in addition thereto, without prejudice           to any
and all of its other rights, to realise the Charged Assets, whether by           the
application for the appointment of a Receiver or whether by any other method
          the Creditor shall see fit.  

	 	(c) 	The
Creditor shall be entitled, in any proceedings concerning the bankruptcy,
          liquidation, winding up or receivership (or similar proceedings) of the
Company,           to:  

	 	(i) 	demand,
claim, collect and enforce and prove the Secured Liabilities and give
          acquittance thereunder;  

	 	(ii) 	file
any claims and proofs, give receipts and take all such proceedings and do           all
such things as the Creditor sees fit to recover the Secured Liabilities; and  

	 	(iii) 	receive
all distributions on and payments with respect to the Secured           Liabilities.  

	 	(d) 	The
Creditor shall have all powers that it may, in its full discretion,           determine
to be desirable or necessary to preserve the Charged Assets and the           Security
Interests created hereby and to take all such steps for such purpose at           the
Company’s expense.  

	 	8.3 	Receiver

	 	(a) 	The
Receiver shall have all powers conferred by applicable law, including,           without
limitation, the power:  

	 	(i) 	to
receive into his hands the Charged Assets and to take possession thereof;  

38

	 	(ii) 	to
require the Company to deliver or otherwise make available such of the           Charged
Assets as the Receiver may demand, and without the consent of the           Company,
enter into any premises of the Company or any place where the Charged           Assets
are located and take possession of any of the Charged Assets;  

	 	(iii) 	to
manage the Company’s business or participate in the management thereof           as
he may see fit;  

	 	(iv) 	to
sell or agree to the sale of the Charged Assets, in whole or in part, or to
          transfer the same in any other manner upon such conditions as he may see fit;  

	 	(v) 	to
exercise any right charged or pledged hereunder in the same manner in which           the
Company was entitled to exercise such right in accordance with the terms of
          Section 20 of the Pledge Law, 5727-1967;  

	 	(vi) 	to
employ accountants, lawyers, surveyors, engineers, quantity surveyors,
          contractors, workmen and others and to purchase or hire materials, tools,
          equipment or supplies;  

	 	(viii) 	to
do any other act or thing which the Receiver considers to be incidental or
          conducive to the exercise of any other right exercisable by him; and  

	 	(ix) 	to
make any other arrangement with respect to the Charged Assets or any part
          thereof as he may see fit.  

	 	(b) 	Should
the payment date of the Secured Liabilities or any part thereof not yet           have
fallen due at the time of the sale of the Charged Assets, or the Secured
          Liabilities be due to the Creditor or Receiver on a contingent basis only, then
          the Creditor or Receiver shall be entitled to recover out of the proceeds of
the           sale an amount sufficient to cover the Secured Liabilities (or such part
          thereof) and the amount so recovered and yet to be appropriated to the
discharge           of the amounts due shall be charged to the Creditor or Receiver as
security for,           and be held by the Creditor or Receiver until the discharge in
full of, the           Secured Liabilities.  

	 	(c) 	The
Receiver will be the agent of the Company and the Company alone shall be
          responsible for the acts and omissions of the Receiver and for the
          Receiver’s remuneration. In no event shall the Creditor be responsible for
          the acts and omissions of the Receiver or for the Receiver’s remuneration,
          subject to any applicable law.  

	9.  	DISTRIBUTION
OF PROCEEDS  

	 	
All
moneys and other assets arising from the exercise of the powers of the Receiver or the
Creditor or otherwise received by the Creditor or the Receiver from the realisation of
any Charged Asset shall be applied as follows: 

39

	 	(a) 	in
payment of the expenses incurred as a result of such realisation (including
               the appointment and remuneration of the Receiver); 

	 	(b) 	in
payment of all other expenses, interest and default interest (if any),
               linkage differentials and any other amounts due and payable by the Company
to                the Creditor and which have not been paid; and 

	 	(c) 	in
payment of all principal sums due and payable by the Company to the Creditor
               and which have not been paid. 

	10.  	FURTHER
ACTION  

	 	
The
Company further covenants with the Creditor from time to time upon demand to execute, at
the Company ‘s own cost, any document or do any reasonable act or thing which: 

	 	(a) 	in
the reasonable determination of the Creditor is necessary to create, perfect,
               register or give effect to any pledge, charge, assignment or Security
Interest                created or intended to be created by this Debenture; 

	 	(b) 	in
the reasonable determination of the Creditor is necessary to preserve or
               protect any of the rights of the Creditor; or 

	 	(c) 	the
Creditor or the Receiver may reasonably specify with a view to facilitating
               the exercise, or the proposed exercise, of any of their powers or the
               protection, management or realisation of the Charged Assets upon the
occurrence                and during the continuance of an Event of Default, 

	 	
and
in the event the Company fails to take any such action within such reasonable time, but
in any event within not more than seven (7) Business Days following receipt of a written
request thereof as requested by the Receiver in such notice, the Creditor may, and the
Company hereby appoints the Creditor as its attorney-in-fact to, execute, at the Company’s
expense, any such document or do any such act or thing, in the name and on behalf of the
Company. 

	11.  	PROTECTION
OF CREDITOR AND RECEIVER  

	 	(a) 	Other
than with respect to fraud, or intentional act or omission, neither the
               Creditor nor the Receiver, nor any of their respective agents, managers,
               officers, directors, employees, delegates, and advisers shall be liable
for any                claim, demand, liability, loss, damage, cost or expense which
arises out of the                exercise or the attempted or purported exercise or the
failure to exercise any                of their respective rights, powers and discretions
under this Debenture. 

	 	(b) 	Neither
the Creditor nor any Receiver, nor any of their respective agents,
               managers, officers, directors, employees, delegates, and advisers shall be
under                any duty to exercise any of their respective rights, powers and
discretions                under this Debenture. 

	 	(c) 	To
the extent permitted by applicable law, the Company hereby waives any
               requirements with respect to notice, form or the terms of the exercise by
the                Creditor, the Receiver, or any of their respective agents, managers,
officers,                directors, employees, delegates, and advisers of their
respective rights, powers                and discretions under this Debenture. 

40

	12.  	INDEMNITY  

	 	12.1	The
Company shall forthwith on demand indemnify each of the Creditor and the Receiver (as
well as any subsidiaries or affiliates of the Creditor or the Receiver) and their
respective officers, directors, agents, managers, servants and employees (the “Indemnified
Persons”) against any loss, expense or liability incurred as a consequence of: 

	 	(a) 	anything
done or purported to be done by or on behalf of the Creditor or the           Receiver
under this Debenture or any other document as a result of any failure           by the
Company to comply with its obligations hereunder;  

	 	(b) 	any
payment in respect of the Secured Liabilities (whether made by the Company           or a
third person) being impaired or declared void for any reason whatsoever;  

	 	(c) 	the
exercise, or attempted or purported exercise, or the consideration of the
          exercise, by or on behalf of the Creditor or the Receiver of any of the rights
          or powers of the Creditor or of the Receiver or any other action taken by or on
          behalf of the Creditor or the Receiver with a view to or in connection with the
          recovery by the Creditor or Receiver of the Secured Liabilities from the
Company           or any other person; or  

	 	(d) 	the
carrying out of any other act or matter which the Creditor or the Receiver           or
any other person on behalf of either of them may consider to be necessary for
          the preservation of the Charged Assets,  

	 	
provided
that the Company shall not be obliged to indemnify an Indemnified Person for any loss,
expense or liability incurred solely as a consequence of the fraud or intentional act or
omission of such Indemnified Person. 

	 	12.2 	Any amount
payable under Section 12.1 shall bear interest at the annual rate of 13% for the period
commencing from the date on which the Company should have paid such amount until the date
of actual payment of the same; such interest shall form part of the Secured Liabilities. 

	13.  	COSTS
AND EXPENSES  

	 	13.1	The
Company shall pay all filing fees payable in respect of this Debenture or the
transactions contemplated hereby. 

	 	13.2	All
the fees, costs and expenses incurred by the Creditor or any Receiver in connection with
the preparation, registration, perfecting or enforcement of this Debenture and
realization of the Charged Assets shall be paid by the Company to the Creditor on its
first demand and shall form part of the Secured Liabilities. 

41

	14.  	ASSIGNMENT  

	 	14.1	This
Debenture shall be binding upon and inure to the benefit of each party hereto and its
permitted successors and assigns. 

	 	       14.2 	The
Company  may not assign or transfer  all or any part of its rights  and/or  obligations
 under this                 Debenture.

	 	14.3	The
Creditor and all those claiming under it shall be entitled, at all times, to assign to
others their rights under this Debenture, together with their rights under the Venture
Loan Agreement pursuant and subject to the provisions of Section 13.5 of the Venture Loan
Agreement, without the necessity of obtaining the Company’s consent thereto. 

	15.  	MISCELLANEOUS  

	 	15.1 	Communications

	 	
All
notices or other communications hereunder shall be in writing and shall be given in
person, by registered mail (registered international air mail if mailed internationally),
by an overnight courier service which obtains a receipt to evidence delivery, or by
facsimile transmission (provided that written electronic confirmation of receipt is
provided) with a copy by mail, addressed as set forth below:  

	 		
	 	If to the Company:	NEGEVTECH Ltd.

12 Hamada St.

Rehovot, Israel 76703

	 	
Attention:
Oz Desheh  

Telephone: (+972)-8-931-2222

Facsimile: (+972)-8-936-6051

With a copy to:

Tulchinsky Stern Marciano, Ben Zur, Cohen & Co.

Museum Tower

4 Berkowitz Street

Tel Aviv 64238, Israel

Attention: David Cohen, Adv.

Telephone: (+972)-3-607 5000

Facsimile: (+972)-3-607 5050

42

	 		
	 	If to the Creditor:	Kreos Capital II Limited

47 Esplanade, St Helier, Jersey

Fax: +44 1534 889 884

Attn: The Directors

with a copy to:

Sharir, Shiv, Kadouch & Co., Law Offices

3 Azrieli Center

Tel Aviv 67023, Israel

Fax: +972 3 607 4778

Attn: Emmanuel Kadouch, Adv.
	 		

	 	
or
such other address as any party may designate to the other in accordance with the
aforesaid procedure. All communications delivered in person or by courier service shall
be deemed to have been given upon delivery, those given by facsimile transmission shall
be deemed given on the business day following transmission with confirmed answer back,
and all notices and other communications sent by registered mail (or air mail if the
posting is international) shall be deemed given ten (10) days after posting. 

	 	15.2 	Delays
or Omissions; Waiver 

	 	
The
rights of the Creditor may be waived only in writing and specifically; the conduct of the
Creditor shall not be deemed a waiver of any of its rights pursuant to this Debenture
and/or as a waiver or consent on its part as to any breach or failure to meet any of the
terms of this Debenture or as an amendment hereto. A waiver by the Creditor in respect of
a breach by the Company of its obligations shall not be construed as a justification or
excuse for a further breach of its obligations. 

	 	
No
delay or omission to exercise any right, power, or remedy accruing to the Creditor upon
any breach or default by the Company shall impair any such right or remedy nor shall it
be construed to be a waiver of any such breach or default, or any acquiescence therein or
in any similar breach or default thereafter occurring. 

	 	
The
rights of the Creditor hereunder may be exercised as often as necessary and are
cumulative and not exclusive of its rights under the general law. 

	 	15.3 	Amendments

	 	
Any
term of this Debenture may be amended or modified only by a written document signed by
the Company and the Creditor. 

	 	15.4 	Entire
Agreement 

	 	
This
Debenture together with the Debenture – Floating Charge, the Debenture Fixed Charge
(IP) and the Venture Loan Agreement, all as may be amended and/or supplemented from time
to time, contain the entire understanding of the parties with respect to their subject
matter and all prior negotiations, discussions, agreements, commitments and
understandings between them with respect thereto not expressly contained herein shall be
null and void in their entirety, effective immediately with no further action required. 

43

	 	15.5 	Severability

	 	
If
a provision of this Debenture is or becomes illegal, invalid or unenforceable in any
jurisdiction, that shall not affect the validity or enforceability in that jurisdiction
of any other provision hereof or the validity or enforceability in other jurisdictions of
that or any other provision hereof. 

	 	
Where
provisions of any applicable law resulting in such illegality, invalidity or
unenforceability may be waived, they are hereby waived by each party to the full extent
permitted so that this Debenture shall be deemed valid and binding agreements, in each
case enforceable in accordance with its terms. 

	 	15.6 	Counterparts,
Facsimile Signatures 

	 	
This
Debenture may be executed in any number of counterparts, and this has the same effect as
if the signatures on the counterparts were on a single copy of the Debenture. A signed
Debenture received by a party hereto via facsimile will be deemed an original, and
binding upon the party who signed it. 

	 	15.7 	Governing
Law and Venue 

	 	
This
Debenture shall be governed by and construed in accordance with the laws of the State of
Israel, without giving effect to the principles thereof relating to conflict of laws. The
competent courts of the city of Tel Aviv-Jaffa shall have exclusive jurisdiction to hear
all disputes arising in connection with this Debenture and no other courts shall have any
jurisdiction whatsoever in respect of such disputes. 

	 	15.8 	Further
Actions 

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

	 	15.9 	No
Third-Party Beneficiaries 

	 	
Nothing
in this Debenture shall create or confer upon any person or entity, other than the
parties hereto or their respective successors and permitted assigns, any rights,
remedies, obligations or liabilities, except as expressly provided herein. 

	 	       15.10 	VAT 

	 	
To
the extent that any amount payable under this Debenture is subject to VAT by law, the
party paying such amount shall pay the VAT against receipt of a duly issued VAT invoice. 

[rest of page
intentionally left blank] 

44

[Signature Page of
Debenture] 

IN WITNESS WHEREOF this Debenture has
been executed by the Parties, on the day and year first above written. 

		
	——————————————
NEGEVTECH Ltd.	——————————————
Kreos Capital II Limited
	 
	By:	By:
	 
	Title:	Title:
		

45

SCHEDULE 1 

List of Equipment 

[***] 

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

46

SCHEDULE 2 

Form of Notice of
Assignment 

To:     [Insurer] 

Date: [                ]

Dear Sirs,

We hereby give you notice (the
“Notice”) that we have assigned by way of security (the
“Assignment”) all of our right, title and interest in and to
[insurance policy no. ______ and the proceeds thereof] (the “Relevant
Documents”) to Kreos Capital II Limited (the “Creditor”),
pursuant to a Debenture entered into by us in favour of the Creditor dated the date
hereof, in relation to the Equipment as set out in the attached Appendix. 

Notwithstanding the Assignment, we
remain liable to perform all our obligations under the Relevant Documents, if any, and the
Creditor will have no liability in respect of those obligations. 

We hereby irrevocably instruct and
authorise you to: 

	(i)  	make
all payments under or arising from the Relevant Documents to the following
          account with the Creditor (or such other account as the Creditor may notify you
          in writing): 

	 	
Name:

Number:

Branch: 

	(ii)  	disclose
to the Creditor without any reference to or further authority from us           and
without any enquiry by you as to the justification for such disclosure, such
          information relating to the Relevant Documents as the Creditor may at any time
          and from time to time request, to the extent we were entitled to request such
          information pursuant to the terms of the Relevant Documents; 

	(iii)  	comply
with the terms of any written notice or instructions in any way relating           to, or
purporting to relate to, the Assignment, the sums payable to us from time           to
time in respect of the Relevant Document or the debts represented thereby           which
you receive at any time from the Creditor in respect of the Relevant           Document
without any reference to or further authority from us and without any           enquiry
by you as to the justification for or validity of such notice or           instruction,
to the extent we were entitled to issue such instruction or notice           pursuant to
the terms of the Relevant Document; and 

	(iv)  	send
copies of all certificates, notices, documents and other information           supplied
to us in relation to the Relevant Document to the Creditor. 

Please also note that these
instructions are not to be revoked or amended without the prior written consent of the
Creditor.  

This letter shall be governed by and
construed in accordance with Israeli law. 

Yours faithfully, 

	——————————————

 NEGEVTECH Ltd.		

47

SCHEDULE 3 

Acknowledgement of
assignment of Insurances 

	To:  	(1)
Kreos Capital II Limited

	 	
(2)
NEGEVTECH Ltd. 

[Date]

Dear Sirs, 

We acknowledge receipt of the
attached notice of assignment (the “Notice”) and we irrevocably and
unconditionally consent to the assignment set out in it and we undertake to be bound by
its terms. 

We confirm that we have not received
notice of any other assignment of the Relevant Document. This Acknowledgement will be
governed by and construed in accordance with Israeli law. 

	——————————————
For and on behalf of

[_____________]		

48

SCHEDULE 4 

Notice of
assignment of Compensation Proceeds 

To: [                 ]

[Date]

Re: The equipment set
out in the attached schedule (the “Equipment”) 

We hereby give you notice (the
“Notice”) that we have assigned by way of security (the
“Assignment”) to Kreos Capital II Limited (the
“Creditor”), all of our right, title and interest, present and
future, to all amounts that are payable under the Property Tax and Compensation Fund Law,
5721-1961, and under any other applicable law, arising in connection with
the Equipment (“Compensation Proceeds”). 

Please acknowledge that you have
received this Notice by signing and returning to each of the Creditor
and ourselves a copy of the attached Acknowledgement. 

This Notice will be governed by and
construed in accordance with Israeli law. 

	——————————————

For and on behalf of

NEGEVTECH Ltd.		

49

SCHEDULE 

Description of
Equipment 

	Equipment 	Serial Number/Identification 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

50

Schedule 5 

Acknowledgement of
assignment of Compensation Proceeds 

Re: The equipment set
out in the attached schedule (the “Equipment”) 

	To:  	(1)
Kreos Capital II Limited

	 	
(2)
NEGEVTECH Ltd. 

[Date]

Dear Sirs, 

We acknowledge receipt of the
attached notice of assignment (the “Notice”) and we irrevocably and
unconditionally consent to the assignment set out in it and we undertake to be bound by
its terms. 

We confirm that we have not received
notice of any other assignment of the Compensation Proceeds. 

This Acknowledgement will be governed
by and construed in accordance with Israeli law. 

	——————————————

For and on behalf of

[                                               ]		

51

SCHEDULE 

Description of Equipment 

	Equipment  	Serial Number/Identification 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

52

DEBENTURE –
FLOATING CHARGE 

UNLIMITED IN AMOUNT 

BETWEEN 

NEGEVTECH LTD.

as Company 

AND 

KREOS CAPITAL II LIMITED

as Creditor 

DATED March 30, 2008 

53

DEBENTURE – FLOATING
CHARGE  

THIS DEBENTURE – FLOATING
CHARGE is dated the 30th day of March 2008 between: 

	1.  	NEGEVTECH
LTD., a company organized under the laws of the State of           Israel, with
registered number 51-163426-3 and registered office at 12 Hamada           St. Rehovot
76703, Israel (the “Company”); and 

	2.  	Kreos
Capital II Limited, a company incorporated in Jersey under           registered
number 05981165 whose registered office is at 47 Esplanade, St           Helier, Jersey
(the “Creditor”). 

WHEREAS: 

	(A)  	The
Creditor has agreed to lend certain sums to the Company pursuant to an
          agreement between the Company, and the Creditor dated March 30, 2008 (the
          “Venture Loan Agreement”); and 

	(B)  	In
order to secure the full and punctual payment and performance when due of the
          Secured Liabilities, the Company has agreed to: (i) charge by way of first
          ranking fixed charge all the Company’s equipment specified in Schedule I
of           the Debenture Fixed Charge in favour of the Creditor in accordance with the
          terms thereto; (ii) charge by way of second ranking floating charge all the
          Company’s assets, in favour of the Creditor in accordance with the terms
          hereof; and (iii) charge by way of second ranking fixed charge the
          Company’s intellectual property in favour of the Creditor in accordance
          with the terms of the “Debenture – Fixed Charge (IP)          (as
defined below). 

NOW THEREFORE, the parties
agree as follows: 

	1.  	DEFINITIONS
AND INTERPRETATION  

	 	       1.1 	In
this Debenture, the following terms shall have the following meanings:

	 		
	 	Bank Leumi Fixed -Charge 	Means the first rank fixed charge created under that certain debenture fixed charge, by the Company in favour of Bank Leumj Le'Israel, on March 2, 2005.
	 	  
	 	Bank Leumi Fixed Charge (Deposits) 	Means the first rank fixed charge created by the Company under that certain debenture fixed charge over the Company's deposits, in favour of Bank Leumj Le'Israel, on February 20, 2007.
	 	  
	 	Bank Leumi Floating Charge 	Means the first rank floating charge created, under that certain debenture floating charge, by the Company in favour of Bank Leumi Le Israel, on December 22, 2004.
	 	  
	 	Charged Assets 	Those assets of the Company charged, pledged or assigned by way of charge to the Creditor pursuant to Section 3 (Security).
	 	  
	 	Debenture 	This Debenture - Floating Charge.
	 	  
	 	Debenture- Fixed Charge 	Means the Debenture - Fixed Charge signed between the Company and the Creditor on the date hereof, as may be amended from time to time.

54

	 		
	 	Debenture - Fixed Charge (IP) 	Means the Debenture - Fixed Charge (IP) signed between the Company and the Creditor on the date hereof, as may be amended from time to time.
	 	  
	 	Indemnified Persons 	As defined in Section 12.
	 	  
	 	Insurances 	Means:
	 		

	 	(a) 	all
contracts and policies of insurance executed and/or issued from time to           time in
relation to any of the Charged Assets;  

	 	(b) 	all
payments to the Company in relation to (a) above, and  

	 	(c) 	all
claims, rights and remedies of the Company arising from (a) and (b) above.  

	 		
	 	Intellectual Property 	As defined in Schedule 1 of this Debenture.
	 	  
	 	Kreos Fixed Charge 	Means the first ranking fixed charge created under the Debenture - Fixed Charge.
	 	  
	 	Kreos Fixed Charge (IP) 	Means the second ranking fixed charge created under the Debenture - Fixed Charge (IP).
	 	  
	 	Kreos Floating Charge 	Means the second ranking floating charge created under the Debenture - Floating Charge.

			
		Ordinary Course of Business  	to the extent it relates to Intellectual  Property or any other Charged
               Assets,   includes  any  license  agreement,   any  sale  agreement  of
               products,  services,  goods or inventory,  any distribution,  resale or
               agent  agreement,  any  OEM or  similar  agreement,  any  manufacturing
               agreement,  any joint development agreement,  any lease agreement,  any
               joint  venture  agreement  in the  context  of any of the  above or any
               waiver or  compensation  with  regards  to any of the  Charged  Assets,
               provided,  however,  that an agreement  that  constitutes  an effective
               transfer,   or  includes  a  potentially   effective  transfer,   of  a
               significant  part of the  technology  of the Borrower or a  significant
               part of the  assets  of the  Company  will  not be  regarded  as in the
               Ordinary  Course  of  Business.   By  way  of  example,  an  exclusive,
               perpetual,  worldwide  license for a core  technology of the Company or
               Negevtech  Inc. or an OEM  agreement  according  to which a company was
               given an exclusive  right to use a core  technology  for all  potential
               applications  of  that  technology  would  not  be  regarded  as in the
               Ordinary  Course of  Business.  Any escrow  agreement  entered  into as
               part of a transaction  which is in the Ordinary Course of Business will
               be regarded as part of the Ordinary  Course of Business  provided that,
               upon the  release  of the  escrow,  the  beneficiary  of the  escrow is
               entitled  to  use  the  technology  of  the  Borrower  only  as  may be
               necessary  to fulfil the  Company's or  Negevtech  Inc.'s  undertakings
               under such transaction.

55

	 		
	 	Plenus Group 	Means the lenders under the Loan Agreement as of October 11, 2005, namely: Plenus Technologies Ltd, Bank Leumi Le-Israel BM, Golden Gate Bridge Found LP, Plenus II LP and Plenus II (D.S.M.) LP.
	 	  
	 	Plenus Group Fixed Charge 	Means the first rank fixed charge created under that certain debenture fixed charge, by the Company, in favour of the Plenus Group on November 30, 2005.
	 	  
	 	Plenus Group Floating Charge 	Means the first rank floating charge created under that certain debenture floating charge, by the Company, in favour of the Plenus Group on November 30, 2005.
	 	  
	 	Receiver 	A receiver, trustee, administrator, administrative receiver, custodian, conservator, special manager or other similar official appointed by or on application of the Creditor, pursuant to the terms of this Debenture.
	 	  
	 	Secured Liabilities 	As defined in Section 2.1.
	 	  
	 	Security Interest 	Any mortgage, pledge, lien, hypothecation, assignment by way of security, security interest or other charge or encumbrance over, of or in the relevant property.
	 	  
	 	Venture Loan Agreement 	As defined in the First Recital.
	 		

	 	1.2	Words
and defined terms denoting the singular number include the plural and vice versa and the
use of any gender shall be applicable to all genders. 

	 	       1.3 	The
paragraph  headings are for the sake of  convenience  only and shall not affect the
 interpretation                 of this Debenture.

	 	1.4	The
recitals, schedules, appendices, annexes and exhibits hereto form an integral part of
this Debenture. 

	2.  	PURPOSE  

	 	2.1 	Secured
Liabilities 

	 	
The
Security Interests created by this Debenture are created to secure the full and punctual
payment and performance of all the Company’s obligations pursuant to the Venture
Loan Agreement together with all expenses and other amounts due or to become due from the
Company under the terms of this Debenture including, without limitation, reasonable legal
fees, the fees and costs of any Receiver and any other costs incurred in realizing the
Security Interests granted hereunder (all such amounts, the “Secured Liabilities”). 

	 	2.2 	Prepayment

	 	
Except
as expressly set forth in Section 4.4 of the Venture Loan Agreement or any other
provisions thereof: (i) the Company shall not be entitled to discharge any amount of the
Secured Liabilities prior to the agreed date for payment thereof; and (ii) neither the
Company nor any third party having a right liable to be affected by the charges hereby
created or the realisation thereof shall have any right under Section 13(b) of the Pledge
Law, 5727-1967 or any other statutory provisions in substitution therefor. 

56

	3.  	SECURITY  

	 	3.1 	Creation
of Floating Charge 

	 	
As
security for the full and punctual payment or performance when due (whether at stated
maturity, acceleration or otherwise) of the Secured Liabilities by the Company, the
Company hereby, absolutely and unconditionally charges in favour of the Creditor by way
of second ranking floating charge: 

	 	(a) 	to
the maximum extent possible, all of the Company’s rights, title and
          interests in and to all of its present and future tangible and intangible
          assets, properties, rights and interests of any kind, whether contingent or
          absolute, including (for purposes of illustration), but in no way limited to,
          the assets described in Schedule 1 hereto; and  

	 	(b) 	to
the extent not included in the foregoing, all present and future rights to
          compensation, indemnity, insurance proceeds, warranty or guaranty accruing to
          the Company by reason of the loss of, damage to or expropriation of, or any
          other event or circumstance with respect to, such Charged Assets and all
          proceeds and benefits directly deriving from such Charged Assets (including,
          without limitation, those received upon any collection, exchange, sale or other
          disposition of such Charged Assets and any property into which such Charged
          Assets are converted, whether cash or non-cash) (Sections 3.1(a) and (b)
          collectively, the “Charged Assets”).  

	 	
The
Company hereby assigns to and in favour of the Creditor by way of second ranking floating
charge (and each of the following shall be deemed to be expressly included in paragraph
(b) above): 

	 	(i) 	all
present and future rights, claims and remedies of the Company under and in
          respect of the Insurances and any monies paid or payable pursuant thereto
          whether held in or for the benefit of any trust or other account relative
          thereto or otherwise;  

	 	(ii) 	all
of the present and future rights, claims and remedies of the Company under           and
deriving from the Property Tax and Compensation Fund Law, 5721-1961 as in           force
from or at any relevant time, and under any other applicable law arising           in
connection with the Charged Assets;  

	 	(iii) 	all
present and future rights to compensation, indemnity, warranty or guaranty
          accruing to the Company by reason of the loss of, damage to or expropriation
of,           or any other event or circumstance with respect to, the Charged Assets.  

57

	 	3.2 	Second
Ranking 

	 	
The
Company specifically acknowledges that all of the Security Interests created by the
Company under Section 3 (Security) of this Debenture shall rank in priority to any other
Security Interests created by the Company, other than Plenus Floating Charge and Bank
Leumi Floating Charge. 

	4.  	PRESERVATION
OF SECURITY  

	 	4.1 	Continuing
Security 

	 	
The
Company declares and agrees that:  

	 	(a) 	the
Security Interests created by this Debenture shall remain in force as
          continuing security for the payment and discharge of the Secured Liabilities
and           shall remain in force notwithstanding any other act, event or matter
whatsoever,           and, subject to Section 4.4, shall be released and discharged only
upon the           execution by the Creditor of a written release of the Security
Interests created           by this Debenture;  

	 	(b) 	the
Security Interests created and the powers conferred by this Debenture are           in
addition to, and are not in any way prejudiced or affected by, any other
          agreement between the Company and the Creditor; and  

	 	(c) 	the
Creditor will not be bound to enforce any other Security Interests before
          enforcing the Security Interests created by this Debenture.  

	 	4.2 	Nature
of Security Interests 

	 	
All
Security Interests that have been or may be created in favour of the Creditor for payment
and performance of the Secured Liabilities shall be independent of one another. 

	 	
For
the avoidance of doubt, it is hereby clarified that this Debenture is in addition to the
Debenture – Fixed Charge (and in no manner in lieu thereof or replacement thereto),
and in addition to the Debenture – Fixed Charged (IP) (and in no manner in lieu
thereof or replacement thereto), and each of this Debenture, the Debenture – Fixed
Charge and the Debenture – Fixed Charge (IP) shall independently serve as aforesaid
to secure the Secured Liabilities in their entirety. Without derogating from the
generality of the foregoing or from any other right of the Creditor, the Creditor shall
have the right to act on this Debenture, on the Debenture – Fixed Charge, or on the
Debenture Fixed Charged (IP) or on all three, in each case in connection with the
Security Interest created by each (including, without limitation, with respect to any and
all assets, properties and rights subject to both this Debenture and the Debenture- Fixed
Charge); and no action or omission relating to any such Security Interest shall prevent
or estop the Creditor from invoking such other Security Interest, at the same time or
subsequently. 

58

	 	4.3 	Liability
of the Company; Security Interest Absolute 

	 	(a) 	The
Company is a principal debtor and the Charged Assets are a principal           security
for the Secured Liabilities and, without prejudice to the foregoing,           none of
the rights of the Creditor, the Security Interests created hereunder or           the
liabilities or obligations of the Company or any third party, shall be           impaired
or discharged by (without limitation):  

	 	(i) 	the
Creditor releasing any of the Charged Assets or granting any time or any
          indulgence whatsoever to or making any settlement, composition or arrangement
          with any third party;  

	 	(ii) 	the
Creditor asserting or pursuing, failing or neglecting to assert or pursue,           or
delaying in asserting or pursuing, or waiving, any of its rights or remedies
          against the Company or any third party arising under or by virtue of this
          Debenture or otherwise;  

	 	(iii) 	the
Creditor making any variation, amendment or supplement to this Debenture,           any
agreement between the Creditor and the Company or any third party or any           other
document or instrument from time to time entered into between the Company           or
any third party and the Creditor;  

	 	(iv) 	any
change in the time, manner, place of payment or any other term or condition           of
the Secured Liabilities, or any other amendment or waiver of or under any
          agreement between the Creditor and the Company, the Charged Assets or any
          document related thereto;  

	 	(v) 	the
non-perfection of any Security Interest or any release, waiver or amendment
          from any guaranty for all or part of the Secured Liabilities;  

	 	(vi) 	the
Creditor taking, accepting, varying, dealing with, enforcing, abstaining           from
enforcing, surrendering, exchanging or releasing any Security Interest in
          relation to the Company or any third party in such manner as any of them thinks
          fit, or claiming, proving for, accepting or transferring any payment in respect
          of the Secured Liabilities or the liabilities of any other third party in any
          composition by, or winding up of, any such party and/or any third party, or
          abstaining from so claiming, proving, accepting or transferring;  

	 	(vii) 	any
lack of enforceability of any or all of any agreement between the Creditor           and
the Company, the Secured Liabilities, any security therefore or any           agreement
or document relating thereto; or  

	 	(viii) 	to
the fullest extent permitted by applicable law, any other circumstance that
          could otherwise constitute a defence to or discharge of the Company or any
third           party, other than the payment and performance in full of the Secured
          Liabilities.  

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	 	(b) 	Notwithstanding
anything to the contrary contained in this Debenture, the           Company will remain
liable to observe and perform all of the conditions and           obligations relating to
or constituting the Secured Liabilities or the Charged           Assets and neither the
Creditor nor any Receiver will be under any obligation or           liability with
respect to the Secured Liabilities or the Charged Assets by           reason of or
arising out of this Debenture. Neither the Creditor nor any           Receiver will be
required in any manner to perform or fulfil any of the           obligations of the
Company in respect of the Secured Liabilities or the Charged           Assets, or to make
any payment, or to make any enquiry as to the nature or           sufficiency of any
payment received by it, or to present or file any claim or           take any action or
to collect any amount or enforce any right or remedy           hereunder.  

	 	(c) 	The
exercise by the Creditor of any of the rights or remedies hereunder shall           not
release the Company from any of its liabilities or obligations under any
          agreement between the Creditor and the Company unless the Secured Liabilities
          have been undisputedly satisfied in full as a result of such exercise by the
          Creditor of any of the rights or remedies hereunder; for the avoidance of
doubt,           the application of the Charged Assets to satisfy part of the Secured
Liabilities           shall not release the Company from its obligation to pay and
perform the Secured           Liabilities in full.  

	 	4.4 	Avoidance
of Payments 

	 	
To
the extent that the Company or any third party on behalf of the Company makes a payment
or payments to the Creditor, or the Creditor enforces any Security Interest or exercises
any right of set-off and such payment or payments or the proceeds of such enforcement or
set-off or any part thereof are subsequently avoided or set aside, declared to be
fraudulent or preferential or required to be repaid or refunded or reduced by virtue of
any applicable law relating to bankruptcy, insolvency, administration, receivership,
liquidation or similar proceedings, the Secured Liabilities or any part thereof
originally intended to be satisfied, and this Debenture and all Security Interests,
rights and remedies therefore shall be revived and continued in full force and effect as
if such payment or payments had not been made or such enforcement or set-off had not
occurred. 

	5.  	REPRESENTATIONS
AND WARRANTIES  

	 	
The
Company hereby represents and warrants as follows:  

	 	5.1	It
is duly incorporated and validly existing under the laws of the State of Israel, with
power and authority to own assets and to carry on its business as now being conducted. 

	 	5.2	It
is duly and validly registered with the Israeli Registrar of Companies, with company
number 51-163426-3. 

	 	5.3	It
has the power to enter into and perform, and has taken all necessary action to authorise
the entry into, performance and delivery of, this Debenture and the transactions
contemplated hereby. 

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	 	5.4	All
corporate action on the part of the Company, its directors, and its shareholders
necessary for the authorisation, execution and delivery of the Debenture and the
performance of all of its obligations hereunder have been taken. 

	 	       5.5 	This
Debenture  constitutes its legal, valid and binding obligation  enforceable in accordance
with its                 terms.

	 	5.6	All
authorisations required in connection with the entry into, performance, validity and
enforceability of this Debenture and the transactions contemplated hereby have been
obtained or effected and are in full force and effect and no steps have been taken to
revoke or cancel any authorisation obtained or effected. 

	 	5.7	The
Security Interests created hereby constitute a legal, valid and binding, second ranking
floating charge over the Charged Assets, enforceable in accordance with the terms hereof.
This Debenture confers the Security Interests it purports to confer over all of the
Charged Assets and those Security Interests: 

	 	(a) 	are
not subject to any senior, pari passu, junior or subordinated Security
          Interests (other than (i) any lien arising by operation of law in the ordinary
          course of business; (ii) the Kreos Fixed Charge; (iii) the Bank Leumi Floating
          Charge; (iv) the Plenus Group Floating Charge; (v) the Bank Leumi Fixed Charge;
          (vi) the Bank Leumi Fixed Charge (Deposits); (vii) the Kreos Fixed Charge (IP);
          and (viii) the Plenus Fixed Charge)  

	 	(b) 	are
not liable to avoidance, due to (i) bankruptcy, winding-up, creditors’          arrangement
or any other similar insolvency proceedings for the reorganisation           of the
affairs of the Company or (ii) any other similar act or circumstance of           the
Company on the date of execution of this Debenture.  

	 	5.8	It
has good and marketable title to the Charged Assets, free and clear of any Security
Interests, except for: (i) the Kreos Fixed Charge; (ii) the Plenus Group Floating Charge;
(iii) the Bank Leumi Floating Charge; (iv) the Kreos Fixed Charge (IP); the Bank Leumi
Fixed Charge; (v) Bank Leumi Fixed Charge (Deposits); (vii) the Plenus Group Fixed Charge
(With the above seven exceptions, the Charged Assets are not affected by any restriction
or condition relating to the transfer of ownership therein or to the mortgage, pledge or
charge thereof under any agreement whatsoever. 

	 	       5.9 	The
Charged  Assets  that are  tangible  assets are in all  material  respects in good and
 substantial                 repair.

	6.  	UNDERTAKINGS  

	 	
The
Company hereby undertakes as follows:  

	 	6.1	It
shall not sell, convey, transfer, grant or lease or otherwise dispose of (or agree to do
any of the foregoing at any future time) any Charged Asset [“Dispose”],
other than in the Ordinary Course of Business. It is hereby clarified that without
derogating from the above, the Company may Dispose of any of its inventory as it deems
appropriate for the purpose of its business, provided, however, that such disposal shall
be in the ordinary course of business and for the consideration determined by the Board
of Directors of the Company (or in the absence of such determination, for a reasonable
consideration) and may Dispose the Intellectual Property or any other Charged Assets in
the Ordinary Course of Business. 

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	 	6.2	It
shall not create or permit to subsist any Security Interest on (or agree to do any of the
foregoing at any future time) any of the Charged Assets (whether ranking in priority or
parity to or after the Security Interests created hereby), except for (i) the Kreos Fixed
Charge; (ii) the Plenus Group Floating Charge; (iii) the Bank Leumi Floating Charge; (iv)
the Kreos Fixed Charge (IP); the Bank Leumi Fixed Charge; (v) Bank Leumi Fixed Charge
(Deposits); (vii) the Plenus Group Fixed Charge 

	 	6.3	It
shall defend the Charged Assets or cause the Charged Assets to be defended against, and
shall take, at its expense, any reasonable action necessary to remove any Security
Interest over the Charged Assets (except with regard to the charges specified in Section
5.8 ), and shall defend the right, title and interest of the Creditor in and to any
Charged Asset against the claims and demands of all other persons. 

	 	6.4	It
shall keep the Charged Assets which are equipment in good working order and condition
(normal wear and tear excepted). The Company shall repair any damage or defect which may
occur to such Charged Assets, in whole or in part, as the result of use or for any other
reason whatsoever. Without derogating from its obligations hereunder, the Company shall
notify the Creditor immediately of any material damage or defect to the Charged Assets or
any part thereof. 

	 	6.5	It
will not take any action which could prejudice or damage the Charged Assets or the
enforceability of the Security Interests created hereunder. 

	 	6.6	It
shall deposit with the Creditor all copies of certificates and other documents of title
or evidence of ownership in the Charged Assets and all ancillary documents relating to or
affecting the Charged Assets as the Creditor may from time to time specify. 

	 	6.7	It
will allow the Creditor or the Creditor’s representatives at all times to inspect
the condition of the Charged Assets wherever the same may be. 

	 	6.8	The
Company shall keep insured at all times the Charged Assets which are eligible for being
insured, for full value and shall comply with the terms of such insurance policies. 

	 	6.9	The
Company shall, forthwith upon the Creditor’s first demand, furnish the Creditor with
any licence, confirmation, certificate, receipt or other document which, in the opinion
of the Creditor, is required or necessary for purpose of proof of compliance by the
Company with its obligations under this Section 6. 

	 	6.10	Without
derogating from the rights of the Creditor, the Company shall notify the Creditor of any
default under this Debenture (and the steps, if any, being taken to remedy it) promptly
upon it becoming aware of the occurrence thereof. In particular, the Company shall: 

	 	(a) 	notify
the Creditor immediately of the occurrence of any seizure, requisition,
          expropriation or forfeiture of the Charged Assets or any part thereof;  

62

	 	(b) 	notify
the Creditor immediately of the imposition of any attachment or the           issue of
any execution proceedings or of any application for the appointment of           a
receiver, trustee, administrator, administrative receiver, custodian,
          conservator, special manager or other similar official (whether interim or
          permanent) over or with respect to the Charged Assets or any part thereof and
          shall immediately notify the authorities that levied such attachment or issued
          such execution proceedings or received the application for the appointment of
          such receiver, trustee, administrator, administrative receiver, custodian,
          conservator, special manager or other similar official and any third party who
          initiated or applied for such action, of this Debenture in favour of the
          Creditor, and forthwith to take, at the expense of the Company, all steps
          necessary for the discharge of such attachment, execution proceedings or
          appointment, as the case may be.  

	 	6.11	The
Company shall, forthwith following the execution of this Debenture, register the Security
Interests created by this Debenture with the Israeli Registrar of Companies and any other
necessary registry and perfect such registration within 14 days from the date hereof and
shall deliver to the Creditor original certificates of registration of such Security
Interests. 

	 	6.12	The
Company shall, forthwith following the execution of the Debenture, , deliver to the
Creditor, Notices of Assignment in the form of Schedule 2 and Schedule 4, duly executed
by the Company or on its behalf and addressed, in the case of notices in the form of
Schedule 2, to each of the insurers liable on the Insurances and, in the case of the
notice in the form of Schedule 4, to the relevant governmental agency, and shall use all
reasonable endeavours to ensure that the said insurers and governmental agency execute an
acknowledgement of receipt of every such Notice of Assignment in the form of Schedule 3
and Schedule 5 respectively The Notices of Assignment shall be held in escrow by Sharir
Shiv Kadouch & Co. Law Office, until the occurrence of any Event of Default. 

	 	6.13	For
the avoidance of doubt, and notwithstanding anything to the contrary herein, it is hereby
clarified that with respect to any and all of the assets, properties and rights of the
Company which are, or which may in the future be, subject to the charge under the
Debenture – Fixed Charge, and under the Debenture Fixed Charge (IP), the Company is
and shall be subject to the terms, conditions, limitations and restrictions contained in
the Debenture – Fixed Charge and in the Debenture Fixed Charge (IP) in addition to
those contained herein 

	7.  	RIGHTS
OF THE CREDITOR  

	 	7.1 	Creditor’s
Right to Perform 

	 	
Without
derogating from the rights of the Creditor to realize the Security Interests granted
hereunder, if the Company for any reason whatsoever fails to duly and punctually observe
or perform or comply with any of its obligations under this Debenture, including under
Section 6, the Creditor shall, after giving written notice to the Company, have the
power, on behalf of or in the name of the Company or otherwise, to perform the
obligations and to take any steps which the Creditor may, in its absolute discretion,
consider appropriate with a view to remedying, or mitigating the consequences of the
failure, but without in any way becoming liable therefor and provided that the exercise
of this power, or the failure to exercise it, shall in no circumstances prejudice the
Creditor’s rights hereunder. 

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	 	7.2 	Set-Off

	 	
The
Creditor may, at any time, set off any sum, whether in Israeli currency or in foreign
currency, as the case may be, due or owing to the Company from the Creditor in any
account, manner or circumstance whatsoever, against the Secured Liabilities, in whole or
in part. In no event and under no circumstances may the Company set off any sum that may
be due or owing to the Company from the Creditor in any account, manner or circumstance
whatsoever, against the Secured Liabilities, in whole or in part. 

	8.  	DEFAULT
AND ENFORCEMENT  

	 	8.1 	Events
of Default 

	 	
The
occurrence of any of the following events shall constitute an Event of Default:  

	 	(ee) 	the
preconditions set out in Clause 2.5 of the Venture Loan Agreement are not
               satisfactorily accomplished within forty five (45) days of signature of
the                Venture Loan Agreement unless the period for satisfactory
accomplishment is                extended pursuant to and in accordance with Clause 3.2
of the Venture Loan                Agreement; or  

	 	(ff) 	the
Company fails to pay when due and payable or (if so payable) on demand any
               sum payable under the Venture Loan Agreement or the Security Documents or
under                any document relating to the Security Documents provided however
that such                failure to pay shall not constitute an Event of Default if such
failure has been                rectified within five (5) Business Days after the
Creditor has advised the                Company of such non-payment; or  

	 	(gg) 	any
other breach by the Company occurs of any provision of the Venture Loan
               Agreement or the Security Documents (other than a breach covered by this
section                8.1) unless: (i) the Creditor notifies the Company in writing that
it is                satisfied that the breach has not put any of the Security for the
Loan                immediately at risk and that it considers that the breach is capable
of remedy;                and (ii) within ten (10) Business Days after the Creditor
serves on the Company                a notice of default under the Venture Loan
Agreement, or such longer period as                the Creditor may specify in such
notice, the Company remedies the breach to the                satisfaction of the
Creditor; or  

	 	(hh) 	any
representation, warranty or statement made by, or by an officer of, the
               Company in the Venture Loan Agreement or the Security Documents or in a
Drawdown                Notice or any other notice or document relating to the Venture
Loan Agreement or                any other Security Document is untrue or misleading in
any material respect when                it is made in a manner that adversely affect the
Charged Assets; or  

	 	(ii) 	financial
indebtedness of the Company in an amount of at least US$250,000 is not
               paid when due as a consequence of a default with respect thereto or any
Security                Interest over any assets of the Company is lawfully enforced; or  

64

	 	(jj) 	any
order shall be made by any competent court or any resolution shall be passed
               by the Company for the appointment of a liquidator, administrator or
receiver                of, or for the winding up of, the Company and, in any such case,
such order or                resolution is not set aside, cancelled or revoked within
thirty (30) Business                Days after being made or passed and is contested by
the Company, within fifteen                (15) days in good faith in circumstances where
the sum of money owed is fully                covered by reserves; or  

	 	(kk) 	an
encumbrancer takes possession of or a receiver is appointed over the whole
               or, in the opinion of the Creditor, any material part of, the assets of
the                Company or a distress, execution or other process is levied or
enforced upon or                sued out against the whole or a material part of the
assets of the Company and,                in any such case, if such procedure is not
terminated within thirty (30)                Business Days after commencement and is
contested by the Company within fifteen                (15) days in good faith in
circumstances where the sum of money owed is fully                covered by reserves; or  

	 	(ll) 	the
Company shall stop payment or shall be unable to, or shall admit inability
               to, pay its debts as they fall due, or shall be adjudicated or found
bankrupt or                insolvent, or shall enter into any composition or other
arrangement with its                creditors generally; or  

	 	(mm) 	any
event shall occur which under the law of any jurisdiction to which the
               Company is subject has an effect equivalent or similar to any of the
events                referred to in Clause 8.1.6, 8.1.7 or 8.1.8 of the Venture Loan
Agreement; or  

	 	(nn) 	the
Company ceases or suspends carrying on its business or a material part of
               its business; or  

	 	(oo) 	it
becomes unlawful or impossible (i) for the Company to discharge any liability
               under the Venture Loan Agreement or to comply with any other material
obligation                under the Venture Loan Agreement or the Security Documents, or
(ii) for the                Creditor to exercise or enforce any right under, or to
enforce any Security                Interest created by the Venture Loan Agreement or the
Security Documents; or  

	 	(pp) 	any
material provision of the Venture Loan Agreement or the Security Documents
               proves to have been or becomes invalid or unenforceable, or a Security
Interest                created by the Security Documents proves to have been or becomes
invalid or                unenforceable or such a Security Interest proves to have ranked
after, or loses                its priority under the Venture Loan Agreement and \or the
Security Documents (to                the extent such priority applies under the Venture
Loan agreement and \or the                Security Documents) to, another Security
Interest or any other third party claim                or interest, provided however that
if the Company proposes replacement security                which the Creditor accepts,
and such replacement security is constituted in a                manner acceptable to the
Creditor within such period of time as the Creditor may                require, such
event shall cease to constitute an Event of Default; or  

65

	 	(qq) 	the
security constituted by the Security Documents is in any way materially
               imperilled or in jeopardy (including by way of decrease in market value
below a                normal depreciation, but excluding depreciation made in accordance
with US GAAP)                provided however that if the Company proposes replacement
security which the                Creditor accepts, and such replacement security is
constituted in a manner                acceptable to the Creditor within such period of
time as the Creditor may                require, such event shall cease to constitute an
Event of Default; or  

	 	(rr) 	any
other event (whether related or not) occurs (including, without limitation,
               a material adverse change, from the position applicable as at the date of
the                Venture Loan Agreement) in the business affairs or condition
(financial or                otherwise) of the Company), the effect of which is to
materially imperil, delay                or prevent the due fulfilment by the Company of
any of its obligations or                undertakings in the Venture Loan Agreement or
the Security Documents; or  

	 	(ss) 	any
event of default (howsoever described) specified in any loan agreement or
               security document signed by the Company and underlying: (i) the Bank Leumi
               Floating Charge; (ii) the Plenus Group Floating charge; (iii) the Kreos
Fixed                Charge; (iv) the Kreos Fixed Charge (IP); the Bank Leumi Fixed
Charge; (v) Bank                Leumi Fixed Charge (Deposits); (vii) the Plenus Group
Fixed Charge  

	 	8.2 	Creditor’s
Powers 

	 	(a) 	On
the occurrence of an Event of Default, the Creditor shall be entitled to
          declare any or all of the Secured Liabilities immediately due and payable.  

	 	(b) 	On
and at any time after the occurrence of an Event of Default, the Creditor           shall
also be entitled to take all such steps as it sees fit to collect the           Secured
Liabilities from the Company and, in addition thereto, without prejudice           to any
and all of its other rights, to realise the Charged Assets, whether by           the
application for the appointment of a Receiver or whether by any other method
          the Creditor shall see fit.  

	 	(c) 	The
Creditor shall be entitled, in any proceedings concerning the bankruptcy,
          liquidation, winding up or receivership (or similar proceedings) of the
Company,           to:  

	 	(i) 	demand,
claim, collect and enforce and prove the Secured Liabilities and give
          acquittance thereunder;  

	 	(ii) 	file
any claims and proofs, give receipts and take all such proceedings and do           all
such things as the Creditor sees fit to recover the Secured Liabilities; and  

	 	(iii) 	receive
all distributions on and payments with respect to the Secured           Liabilities.  

	 	(d) 	The
Creditor shall have all powers that it may, in its full discretion,           determine
to be desirable or necessary to preserve the Charged Assets and the           Security
Interests created hereby and to take all such steps for such purpose at           the
Company’s expense.  

66

	 	8.3 	Receiver

	 	(a) 	The
Receiver shall have all powers conferred by applicable law, including,           without
limitation, the power:  

	 	(i) 	to
receive into his hands the Charged Assets and to take possession thereof;  

	 	(ii) 	to
require the Company to deliver or otherwise make available such of the           Charged
Assets as the Receiver may demand, and without the consent of the           Company,
enter into any premises of the Company or any place where the Charged           Assets
are located and take possession of any of the Charged Assets;  

	 	(iii) 	to
manage the Company’s business or participate in the management thereof           as
he may see fit;  

	 	(iv) 	to
sell or agree to the sale of the Charged Assets, in whole or in part, or to
          transfer the same in any other manner upon such conditions as he may see fit;  

	 	(v) 	to
exercise any right charged or pledged hereunder in the same manner in which           the
Company was entitled to exercise such right in accordance with the terms of
          Section 20 of the Pledge Law, 5727-1967;  

	 	(vi) 	to
employ accountants, lawyers, surveyors, engineers, quantity surveyors,
          contractors, workmen and others and to purchase or hire materials, tools,
          equipment or supplies;  

	 	(viii) 	to
do any other act or thing which the Receiver considers to be incidental or
          conducive to the exercise of any other right exercisable by him; and  

	 	(ix) 	to
make any other arrangement with respect to the Charged Assets or any part
          thereof as he may see fit.  

	 	(b) 	Should
the payment date of the Secured Liabilities or any part thereof not yet           have
fallen due at the time of the sale of the Charged Assets, or the Secured
          Liabilities be due to the Creditor or Receiver on a contingent basis only, then
          the Creditor or Receiver shall be entitled to recover out of the proceeds of
the           sale an amount sufficient to cover the Secured Liabilities (or such part
          thereof) and the amount so recovered and yet to be appropriated to the
discharge           of the amounts due shall be charged to the Creditor or Receiver as
security for,           and be held by the Creditor or Receiver until the discharge in
full of, the           Secured Liabilities.  

67

	 	(c) 	The
Receiver will be the agent of the Company and the Company alone shall be
          responsible for the acts and omissions of the Receiver and for the
          Receiver’s remuneration. In no event shall the Creditor be responsible for
          the acts and omissions of the Receiver or for the Receiver’s remuneration,
          subject to any applicable law.  

	9.  	DISTRIBUTION
OF PROCEEDS  

	 	
All
moneys and other assets arising from the exercise of the powers of the Receiver or the
Creditor or otherwise received by the Creditor or the Receiver from the realisation of
any Charged Asset shall be applied as follows: 

	 	(a) 	in
payment of the expenses incurred as a result of such realisation (including
               the appointment and remuneration of the Receiver); 

	 	(b) 	in
payment of all other expenses, interest and default interest (if any),
               linkage differentials and any other amounts due and payable by the Company
to                the Creditor and which have not been paid; and 

	 	(c) 	in
payment of all principal sums due and payable by the Company to the Creditor
               and which have not been paid. 

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	10.  	FURTHER
ACTION  

	 	
The
Company further covenants with the Creditor from time to time upon demand to execute, at
the Company ‘s own cost, any document or do any reasonable act or thing which: 

	 	(a) 	in
the reasonable determination of the Creditor is necessary to create, perfect,
               register or give effect to any pledge, charge, assignment or Security
Interest                created or intended to be created by this Debenture; 

	 	(b) 	in
the reasonable determination of the Creditor is necessary to preserve or
               protect any of the rights of the Creditor; or 

	 	(c) 	the
Creditor or the Receiver may reasonably specify with a view to facilitating
               the exercise, or the proposed exercise, of any of their powers or the
               protection, management or realisation of the Charged Assets upon the
occurrence                and during the continuance of an Event of Default, 

	 	
and
in the event the Company fails to take any such action within such reasonable time, but
in any event within not more than seven (7) Business Days following receipt of a written
request thereof as requested by the Receiver in such notice, the Creditor may, and the
Company hereby appoints the Creditor as its attorney-in-fact to, execute, at the Company’s
expense, any such document or do any such act or thing, in the name and on behalf of the
Company. 

	11.  	PROTECTION
OF CREDITOR AND RECEIVER  

	 	(a) 	Other
than with respect to fraud, or intentional act or omission, neither the
               Creditor nor the Receiver, nor any of their respective agents, managers,
               officers, directors, employees, delegates, and advisers shall be liable
for any                claim, demand, liability, loss, damage, cost or expense which
arises out of the                exercise or the attempted or purported exercise or the
failure to exercise any                of their respective rights, powers and discretions
under this Debenture. 

	 	(b) 	Neither
the Creditor nor any Receiver, nor any of their respective agents,
               managers, officers, directors, employees, delegates, and advisers shall be
under                any duty to exercise any of their respective rights, powers and
discretions                under this Debenture. 

	 	(c) 	To
the extent permitted by applicable law, the Company hereby waives any
               requirements with respect to notice, form or the terms of the exercise by
the                Creditor, the Receiver, or any of their respective agents, managers,
officers,                directors, employees, delegates, and advisers of their
respective rights, powers                and discretions under this Debenture. 

	12.  	INDEMNITY  

	 	12.1	The
Company shall forthwith on demand indemnify each of the Creditor and the Receiver (as
well as any subsidiaries or affiliates of the Creditor or the Receiver) and their
respective officers, directors, agents, managers, servants and employees (the “Indemnified
Persons”) against any loss, expense or liability incurred as a consequence of: 

69

	 	(a) 	anything
done or purported to be done by or on behalf of the Creditor or the           Receiver
under this Debenture or any other document as a result of any failure           by the
Company to comply with its obligations hereunder;  

	 	(b) 	any
payment in respect of the Secured Liabilities (whether made by the Company           or a
third person) being impaired or declared void for any reason whatsoever;  

	 	(c) 	the
exercise, or attempted or purported exercise, or the consideration of the
          exercise, by or on behalf of the Creditor or the Receiver of any of the rights
          or powers of the Creditor or of the Receiver or any other action taken by or on
          behalf of the Creditor or the Receiver with a view to or in connection with the
          recovery by the Creditor or Receiver of the Secured Liabilities from the
Company           or any other person; or  

	 	(d) 	the
carrying out of any other act or matter which the Creditor or the Receiver           or
any other person on behalf of either of them may consider to be necessary for
          the preservation of the Charged Assets,  

	 	
provided
that the Company shall not be obliged to indemnify an Indemnified Person for any loss,
expense or liability incurred solely as a consequence of the fraud or intentional act or
omission of such Indemnified Person. 

	 	12.2	Any
amount payable under Section 12.1 shall bear interest at the annual rate of 13% for the
period commencing from the date on which the Company should have paid such amount until
the date of actual payment of the same; such interest shall form part of the Secured
Liabilities. 

	13.  	COSTS
AND EXPENSES  

	 	13.1	The
Company shall pay all filing fees payable in respect of this Debenture or the
transactions contemplated hereby. 

	 	13.2	All
the fees, costs and expenses incurred by the Creditor or any Receiver in connection with
the preparation, registration, perfecting or enforcement of this Debenture and
realization of the Charged Assets shall be paid by the Company to the Creditor on its
first demand and shall form part of the Secured Liabilities. 

	14.  	ASSIGNMENT  

	 	14.1	This
Debenture shall be binding upon and inure to the benefit of each party hereto and its
permitted successors and assigns. 

	 	       14.2 	The
Company  may not assign or transfer  all or any part of its rights  and/or  obligations
 under this                 Debenture.

	 	14.3	The
Creditor and all those claiming under it shall be entitled, at all times, to assign to
others their rights under this Debenture, together with their rights under the Venture
Loan Agreement pursuant and subject to the provisions of Section 13.5 of the Venture Loan
Agreement, without the necessity of obtaining the Company’s consent thereto. 

70

	15.  	MISCELLANEOUS  

	 	15.1 	Communications

	 	
All
notices or other communications hereunder shall be in writing and shall be given in
person, by registered mail (registered international air mail if mailed internationally),
by an overnight courier service which obtains a receipt to evidence delivery, or by
facsimile transmission (provided that written electronic confirmation of receipt is
provided) with a copy by mail, addressed as set forth below: 

	 		
	 	If to the Company:	NEGEVTECH Ltd.

12 Hamada St.

Rehovot, Israel 76703

	 	
Attention:
Oz Desheh  

Telephone: (+972)-8-931-2222

Facsimile: (+972)-8-936-6051

With a copy to:

Tulchinsky Stern Marciano, Ben Zur, Cohen & Co.

Museum Tower

4 Berkowitz Street

Tel Aviv 64238, Israel

Attention: David Cohen, Adv.

Telephone: (+972)-3-607 5000

Facsimile: (+972)-3-607 5050

	 		
	 	If to the Creditor:	Kreos Capital II Limited

47 Esplanade, St Helier, Jersey

Fax: +44 1534 889 884

Attn: The Directors

with a copy to:

Sharir, Shiv, Kadouch & Co., Law Offices

3 Azrieli Center

Tel Aviv 67023, Israel

Fax: +972 3 607 4778

Attn: Emmanuel Kadouch, Adv.

71

	 	
or
such other address as any party may designate to the other in accordance with the
aforesaid procedure. All communications delivered in person or by courier service shall
be deemed to have been given upon delivery, those given by facsimile transmission shall
be deemed given on the business day following transmission with confirmed answer back,
and all notices and other communications sent by registered mail (or air mail if the
posting is international) shall be deemed given ten (10) days after posting. 

	 	15.2 	Delays
or Omissions; Waiver 

	 	
The
rights of the Creditor may be waived only in writing and specifically; the conduct of the
Creditor shall not be deemed a waiver of any of its rights pursuant to this Debenture
and/or as a waiver or consent on its part as to any breach or failure to meet any of the
terms of this Debenture or as an amendment hereto. A waiver by the Creditor in respect of
a breach by the Company of its obligations shall not be construed as a justification or
excuse for a further breach of its obligations. 

	 	
No
delay or omission to exercise any right, power, or remedy accruing to the Creditor upon
any breach or default by the Company shall impair any such right or remedy nor shall it
be construed to be a waiver of any such breach or default, or any acquiescence therein or
in any similar breach or default thereafter occurring. 

	 	
The
rights of the Creditor hereunder may be exercised as often as necessary and are
cumulative and not exclusive of its rights under the general law. 

	 	15.3 	Amendments

	 	
Any
term of this Debenture may be amended or modified only by a written document signed by
the Company and the Creditor. 

	 	15.4 	Realization
of IP 

	 	
The
realization of any of the Company’s Intellectual Property that was created or
developed with the aid of, grants received by or under any benefit plan of the Chief
Scientist of the Ministry of Trade, Industry and Labor, under this Debenture shall be
made in accordance with the Law for the Encouragement of Research and Development in the
Industry – 1984, as may be amended from time to time.  

	 	15.5 	Entire
Agreement 

	 	
This
Debenture together with the Debenture – Fixed Charge, the Debenture Fixed Charge
(IP) and the Venture Loan Agreement, all as may be amended and/or supplemented from time
to time, contain the entire understanding of the parties with respect to their subject
matter and all prior negotiations, discussions, agreements, commitments and
understandings between them with respect thereto not expressly contained herein shall be
null and void in their entirety, effective immediately with no further action required. 

72

	 	15.6 	Severability

	 	
If
a provision of this Debenture is or becomes illegal, invalid or unenforceable in any
jurisdiction, that shall not affect the validity or enforceability in that jurisdiction
of any other provision hereof or the validity or enforceability in other jurisdictions of
that or any other provision hereof. 

	 	
Where
provisions of any applicable law resulting in such illegality, invalidity or
unenforceability may be waived, they are hereby waived by each party to the full extent
permitted so that this Debenture shall be deemed valid and binding agreements, in each
case enforceable in accordance with its terms. 

	 	15.7 	Counterparts,
Facsimile Signatures 

	 	
This
Debenture may be executed in any number of counterparts, and this has the same effect as
if the signatures on the counterparts were on a single copy of the Debenture. A signed
Debenture received by a party hereto via facsimile will be deemed an original, and
binding upon the party who signed it. 

	 	15.8 	Governing
Law and Venue 

	 	
This
Debenture shall be governed by and construed in accordance with the laws of the State of
Israel, without giving effect to the principles thereof relating to conflict of laws. The
competent courts of the city of Tel Aviv-Jaffa shall have exclusive jurisdiction to hear
all disputes arising in connection with this Debenture and no other courts shall have any
jurisdiction whatsoever in respect of such disputes. 

	 	15.9 	Further
Actions 

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

	 	15.10 	No
Third-Party Beneficiaries 

	 	
Nothing
in this Debenture shall create or confer upon any person or entity, other than the
parties hereto or their respective successors and permitted assigns, any rights,
remedies, obligations or liabilities, except as expressly provided herein. 

	 	       15.11 	VAT 

	 	
To
the extent that any amount payable under this Debenture is subject to VAT by law, the
party paying such amount shall pay the VAT against receipt of a duly issued VAT invoice. 

[rest of page
intentionally left blank] 

73

[Signature Page of
Debenture] 

IN WITNESS WHEREOF this Debenture has
been executed by the Parties, on the day and year first above written. 

		
	——————————————
NEGEVTECH Ltd.	——————————————
Kreos Capital II Limited
	 
	By:	By:
	 
	Title:	Title:
		

74

SCHEDULE 1 

List of Assets 

1.     All goods
and equipment now owned or hereafter acquired, including, without limitation, all
machinery, fixtures, vehicles, and any interest in any of the foregoing, and
all attachments, accessories, accessions, replacements, substitutions, additions,
and improvements to any of the foregoing, wherever located, and any documents of title
representing any of the above and any issued and uncalled share capital. For the
avoidance of doubt, all the assets and equipment charged and pledged (or that will be
charged and pledged in the future) under the Debenture - Fixed Charge, shall be part of
the assets covered hereunder;  

     2.    
          All intellectual property rights of the Company now owned or hereafter acquired
          (“Intellectual Property”), including but not limited to intangible
          legal rights, title and interest related to (i) copyrights, copyright
          applications, copyright registrations and like protections in each work of
          authorship and derivative work thereof, whether published or unpublished, now
          owned or hereafter acquired; (ii) patents and all applications, registrations,
          and renewals in connection therewith; (iii) trademarks, service marks, trade
          names, trade styles, goodwill, mask works, Internet domain names and all
          applications, registrations, and renewals in connection therewith; (iv) all
          trade secrets, rights to unpatented inventions, know how and confidential
          information; (v) all computer software programs (including data, computer discs,
          computer tapes and related documentation); (vi) all intellectual property
          embodied in or pursuant to contract rights and general intangibles now owned or
          hereafter acquired, including such intellectual property rights as may be
          embodied in or pursuant to research agreements, consulting agreements, license
          agreements and license rights, franchise agreements, blueprints, drawings,
          reports, catalogues, operating manuals and design rights, and; (vii) all claims
          for damages by way of any past, present and future infringement of any of the
          foregoing and rights to payment thereof of any kind. 

     3.    
          All inventory, now owned or hereafter acquired, including, without limitation,
          all merchandise, raw materials, parts, supplies, packaging and shipping
          materials, work in process and finished products including such inventory as is
          temporarily out of the Company’s custody or possession or in transit and
          including any returns upon any accounts or other proceeds, including insurance
          proceeds, resulting from the sale or disposition of any of the foregoing and any
          documents of title representing any of the above; 

     4.    
          All contract rights and general intangibles of the Company now owned or
          hereafter acquired, including, without limitation, leases, license agreements,
          distribution agreements, supply agreements, franchise agreements, purchase
          orders, customer lists, route lists, computer discs, computer tapes, income tax
          refunds, payments of insurance; all existing and future claims, rights, causes
          of actions, judgments, remedies and security interests, whether voluntary,
          involuntary, absolute, contingent or by operation of law; 

     5.    
          All now existing and hereafter arising accounts, royalties and all other forms
          of obligations owing to the Company arising out of the sale or lease of goods,
          the licensing of technology or the rendering of services by the Company, whether
          or not earned by performance, and any and all credit insurance, guaranties, and
          other security of the Company, as well as all merchandise returned to or
          reclaimed by the Company; 

75

6.     All
documents, cash, deposit, savings or other accounts, securities, securities
entitlements, securities accounts, investment property, financial assets, letters of
credit, certificates of deposit, instruments and chattel paper now owned or hereafter
acquired and the Company's books relating to the foregoing;  

7.     All the
Company's books and records, including records relating to the Company's assets or
liabilities, the Charged Assets, business operations or financial condition and
all computer programs or discs or any equipment containing such information; and  

     8.    
All claims, rights and interests in any of the above and all substitutions for,
additions and accessions to and proceeds thereof.  

     9.    
All insurance policies or the proceeds thereof in respect of the above described
assets.  

     10.    
          All accounts receivables. 

76

SCHEDULE 2 

Form of Notice of
Assignment 

To:     [Insurer] 

Date: [             ]

Dear Sirs,

We hereby give you notice (the
“Notice”) that we have assigned by way of security (the
“Assignment”) all of our right, title and interest in and to
[insurance policy no. ______ and the proceeds thereof] (the “Relevant
Documents”) to Kreos Capital II Limited (the “Creditor”),
pursuant to a Debenture entered into by us in favour of the Creditor dated the date
hereof, in relation to the Assets as set out in the attached Appendix. 

Notwithstanding the Assignment, we
remain liable to perform all our obligations under the Relevant Documents, if any, and the
Creditor will have no liability in respect of those obligations. 

We hereby irrevocably instruct and
authorise you to: 

	(i)  	make
all payments under or arising from the Relevant Documents to the following
          account with the Creditor (or such other account as the Creditor may notify you
          in writing):

Name:

Number:

Branch:

	(ii)  	disclose
to the Creditor without any reference to or further authority from us           and
without any enquiry by you as to the justification for such disclosure, such
          information relating to the Relevant Documents as the Creditor may at any time
          and from time to time request, to the extent we were entitled to request such
          information pursuant to the terms of the Relevant Documents; 

	(iii)  	comply
with the terms of any written notice or instructions in any way relating           to, or
purporting to relate to, the Assignment, the sums payable to us from time           to
time in respect of the Relevant Document or the debts represented thereby           which
you receive at any time from the Creditor in respect of the Relevant           Document
without any reference to or further authority from us and without any           enquiry
by you as to the justification for or validity of such notice or           instruction,
to the extent we were entitled to issue such instruction or notice           pursuant to
the terms of the Relevant Document; and 

	(iv)  	send
copies of all certificates, notices, documents and other information           supplied
to us in relation to the Relevant Document to the Creditor. 

Please also note that these
instructions are not to be revoked or amended without the prior written consent of the
Creditor.  

77

This letter shall be governed by and
construed in accordance with Israeli law. 

Yours faithfully,

——————————————

 NEGEVTECH Ltd.

78

SCHEDULE 3 

Acknowledgement of
assignment of Insurances 

	To:  	(1)
Kreos Capital II Limited

	 	
(2)
NEGEVTECH Ltd.  

[Date]

Dear Sirs, 

We acknowledge receipt of the
attached notice of assignment (the “Notice”) and we irrevocably and
unconditionally consent to the assignment set out in it and we undertake to be bound by
its terms. 

We confirm that we have not received
notice of any other assignment of the Relevant Document. This Acknowledgement will be
governed by and construed in accordance with Israeli law. 

——————————————
For and on behalf of

[_____________]

79

SCHEDULE 4 

Notice of
assignment of Compensation Proceeds 

To: [            ]

[Date]

Re: The equipment set
out in the attached schedule (the “Equipment”) 

We hereby give you notice (the
“Notice”) that we have assigned by way of security (the
“Assignment”) to Kreos Capital II Limited (the
“Creditor”), all of our right, title and interest, present and
future, to all amounts that are payable under the Property Tax and Compensation Fund Law,
5721-1961, and under any other applicable law, arising in connection with the Assets
(“Compensation Proceeds”). 

Please acknowledge that you have
received this Notice by signing and returning to each of the Creditor
and ourselves a copy of the attached Acknowledgement. 

This Notice will be governed by and
construed in accordance with Israeli law. 

——————————————

For and on behalf of

NEGEVTECH Ltd.

80

SCHEDULE 

Description of Assets 

	Asset 	Serial Number/Identification 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

Schedule 5 

Acknowledgement of
assignment of Compensation Proceeds 

Re: The assets set out
in the attached schedule (the “Assets”) 

	To:  	(1)
Kreos Capital II Limited

	 	
(2)
NEGEVTECH Ltd. 

[Date]

Dear Sirs, 

We acknowledge receipt of the
attached notice of assignment (the “Notice”) and we irrevocably and
unconditionally consent to the assignment set out in it and we undertake to be bound by
its terms. 

We confirm that we have not received
notice of any other assignment of the Compensation Proceeds. 

This Acknowledgement will be governed
by and construed in accordance with Israeli law. 

——————————————

For and on behalf of

[                       ]

81

U.S. intellectual
property security agreement 

This U.S. INTELLECTUAL PROPERTY
SECURITY AGREEMENT (“IP Security Agreement”) dated March 30, 2008, is
made by (i) NEGEVTECH Ltd. (the “Grantor”), a company organized under the
laws of the State of Israel, with offices located at 12 Hamada St. Rehovot 76703 Israel,
and (ii) Kreos Capital II Limited (“Kreos”), a company incorporated in
Jersey under registered number 87844 whose registered office is at 47 Esplanade, St
Helier, Jersey JE1 0BD. 

        WHEREAS,
Kreos and the Grantor entered into that certain Loan Agreement (the “Loan
Agreement”) dated March 30, 2008, to which a Debenture – Floating Charge
(the “Debenture – Floating Charge”), a Debenture – Fixed Charge
(the “Debenture – Fixed Charge”), and a Debenture Fixed Charge (IP)
(the “Debenture – Fixed Charge (IP)”) in each case executed by the
Grantor and Kreos, are attached as exhibits. 

        WHEREAS,
under the terms of the Debenture – Floating Charge, Grantor has agreed, among other
things, to grant a second raking floating charge over the intellectual property of Grantor
to Kreos and under the Debenture – Fixed Charge (IP), Grantor has agreed, to grant a
second ranking fixed charge over the intellectual property of Grantor to Kreos, and the
Grantor has agreed as a condition thereof and in addition to the creation of the charges
pursuant to the Debenture – Fixed Charge (IP), and the Debenture – Floating
Charge, to execute this IP Security Agreement for recording with the U.S. Patent and
Trademark Office and other governmental authorities on any intellectual property owned by
it throughout the term of this IP Security Agreement. 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, and intending to be legally bound hereby, Grantor agrees as
follows: 

        Section
1. Grant of Security. Subject to the provisions of the Debenture – Floating
Charge and the Debenture – Fixed Charge (IP) (collectively, the “Charge
Agreements”), Grantor hereby grants to Kreos a second ranking security interest
in and to all right, title and interest to (i) the registered United States patents and
pending applications, including but not limited to the patents and patent applications set
forth in Schedule A hereto together with all reissues, divisions,
continuations, continuations-in-part, extensions and reexaminations thereof, and all
rights therein provided by international treaties or conventions (the
“Patents”), (ii) the trademarks, service marks, trade names and domain
names, including but not limited to the registrations and applications therefor set forth
in Schedule A hereto together with all goodwill associated with such
trademarks and service marks and all rights therein provided by international treaties or
conventions (the “Trademarks”), and (iii) all copyrights and
registrations and applications therefor set forth in Schedule A (the
“Copyrights”) currently owned by the Grantor or which shall be
owned in the future by the Grantor (the “Collateral”). Schedule A shall
be deemed to be automatically updated, and the Grantor shall promptly file amendments to
Schedule A with the U.S. Patent and Trademark Office, upon the application for or
acquisition of any new Patents or Trademarks in the United States and with the United
States Copyright Office upon the application for or acquisition of any new registrations
for Copyrights. 

82

        Section
2. Second Ranking. The security granted to Kreos hereunder shall be subject and
rank junior to: (i) the first ranking fixed charge in favor of Bank Leumi Le’Israel
created pursuant to the that certain debenture signed between the Grantor and Bank Leumi
Le’Israel Ltd. dated as of March 3, 2005; (ii) the first ranking fixed charge
in favor of Plenus Technologies Ltd., Bank Leumi Le’Israel Ltd., Golden Gate Bridge
Fund LP, Plenus II LP and Plenus (DCM) LP (together the “Plenus
Group”) created pursuant to that certain debenture signed between the Grantor and
the Plenus Group as of November 6, 2005. 

        Section
3. Security for Obligations. The grant of a security interest in           the
Collateral by Grantor under this IP Security Agreement secures the payment           of
all money and liabilities owed or incurred by Grantor now or hereafter           existing
under or in respect of the Loan Agreement and related agreements (the           “Secured
Obligations”).  

        Section
4. Recordation. Grantor authorizes and requests that the Commissioner of Patents and Trademarks and any other applicable
government officer record this IP Security Agreement. 

        Section
5. Power of Attorney. In the event that Kreos is permitted to receive the
Collateral under the Charge Agreements, Grantor hereby grants to Kreos power of attorney
to inspect, take all necessary or desired action, and prosecute any Patents, Trademarks,
Copyrights or applications for any of the foregoing that may be included in the
Collateral. 

        Section
6. Right to Request Information. Kreos shall have the right to request, and Grantor
shall promptly provide upon such request, information reasonably required in order to
confirm that Schedule A is updated. 

        Section
7. Grants, Rights and Remedies. This IP Security Agreement has been entered into in
conjunction with the provisions of the Loan Agreement and the Charge Agreements. The
Grantor does hereby acknowledge and confirm that the grant of the security interest
hereunder to, and the rights and remedies of, Kreos with respect to the Collateral are
more fully set forth in the Loan Agreement and/or the Charge Agreements and in the event
of any contradiction between this IP Security Agreement and the Loan Agreement or the
Charge Agreements, the provisions of the Loan Agreement or the Charge Agreements will
prevail. 

83

        Section
8. Governing Law; Forum for Dispute Resolution. This Agreement shall be governed by
and construed according to the laws of the State of Israel, without regard to the conflict
of laws provisions thereof. Any dispute arising under or in relation to this Agreement
shall be resolved in the competent court for the Tel Aviv-Jaffa district, and each of the
parties hereby submits exclusively and irrevocably to the jurisdiction of such court. 

        Section
9. Termination. This IP Security Agreement and the security interest granted
hereunder to Kreos shall terminate and be of no force upon satisfaction in full of the
Secured Obligations. Upon termination, Kreos shall execute all documents necessary to
remove the security interest granted thereto by Grantor hereunder. 

[remainder of page
left intentionally blank] 

84

        IN
WITNESS WHEREOF, Grantor and Kreos have caused this IP Security Agreement to be duly
executed and delivered by its officer thereunto duly authorized as of the date first above
written. 

			NEGEVTECH  LTD.

 By:
——————————————

Name: 
——————————————

Title: 
——————————————

			KREOS CAPITAL II LIMITED

By: 
——————————————

 Name: 
——————————————

Title: 
——————————————

85

Schedule a 

Patents 

	NT file name 	Family 	Country 	# 	Official No. 	Title 	Prior date 	Filing date 	Issue date 	Status 	Attorney 	Attorney file name 	Inventors 
	0001-US-01	1	.US	1	6,693,664	Method and system for fast on-line electro-optical detection of wafer defects	30/06/1999	18/06/2002	17/02/2004	Issued	STC	44623	Gad Neumann
	0002-US-07	2	.US	7	7,180,586	System for detection of wafer defects	15/01/2003	23/12/2004	20/02/2007	Issued	STC	53751	Gad Neumann & Noam Dotan
	0003-US-01	3	.US	1	6,892,013	Fiber optical illumination system	15/01/2003	15/01/2003	10/05/2005	Issued	STC	47667	Dov Furman, Gad Neumann, Noam Dotan
	0003-US-02	3	.US	2	7,260,298	Fiber optical illumination system	15/01/2003	01/04/2005	21/08/2007	Issued	STC	54590	Dov Furman
	0004-US-02	4	.US	2	7274444	Multimode inspection method and apparatus	12/07/2004	06/07/2005	-	Issued	STC	53885	Dov Furman, Noam Dotan, Efraim Miklatzky
	0002-US-04	2	.US	4	11/476,358	System for detection of wafer defects	15/01/2003	28/06/2006	-	Pending	STC	55147	Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai Silberstein
	0002-US-05	2	.US	5	11/476,322	System for detection of wafer defects	15/01/2003	28/06/2006	-	Pending	STC	55070	Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai Silberstein
	0002-US-06	2	.US	6	11/524,684	System for detection of wafer defects	15/01/2003	21/09/2006	-	Pending	STC	55247	Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai Silberstein
	0003-US-03	3	.US	3	11/709,019	Fiber optical illumination system	15/01/2003	21/02/2007	 	Pending	STC	60473	Dov Furman
	0002-US-01	2	.US	1	10/345,097	System for detection of wafer defects	15/01/2003	15/01/2003	-	Pending	STC	44420	Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai Silberstein
	0002-US-02	2	.US	2	11/476,342	System for detection of wafer defects	15/01/2003	28/06/2006	-	Pending	STC	55071	Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai Silberstein
	0006-US-01	6	.US	1	11/069,712	Method and apparatus for detecting defects in wafer	28/02/2005	28/02/2005	-	Pending	STC	53603	Erez Sali, Tomer Yanir, Mark Wagner, Noam Dotan, Yuval Dorfan, Ran Zaslavsky
	0007-US-01	7	.US	1	11/068,711	Method and apparatus for detecting defects in wafers including alignment of the wafer images so as to induce the same smear in all images	28/02/2005	28/02/2005	-	Pending	STC	53604	Yuval Dorfan, Ran Zaslavsky, Mark Wagner, Dov Furman, Shai Silberstein
	0008-US-01	8	.US	1	11/410,276	Printed Fourier Filtering In Optical Inspection	24/04/2006	24/04/2006	-	Pending	D&M	NRI-1	Dan Fuchs, Shai Silberstein
	0009-US-02	9	.US	2	11/684,191	Wafer Inspection Using Short-Pulsed Continuous Broadband Illumination	26/05/2006	09/03/2007	-	Pending	D&M	NRI-2	Dov Furman, Shai Silbertein
	0010-US-01	10	.US	1	11/503,859	Speckle Reduction Using a Fiber Bundle and Light Guide	14/08/2006	14/08/2006	-	Pending	D&M	NRI-3	Dov Furman, Daniel Mandelik
	[***]
	[***]
	[***]
	[***]
	[***]

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

86

	NT file name 	Family 	Country 	# 	Official No. 	Title 	Prior date 	Filing date 	Issue date 	Status 	Attorney 	Attorney file name 	Inventors 
	0004-US-01	4	US-Prov	1	60/587,675	Multimode inspection method and apparatus	12/07/2004	12/07/2004	-	Filed	STC	?	Dov Furman, Noam Dotan, Efraim Miklatzky
	0004-US-03	4	.US	3	11/895,204	Multimode inspection method and apparatus	12/07/2004	22/08/2007	-	Filed	STC	62742	Dov Furman, Noam Dotan, Efraim Miklatzky
	0009-US-01	9	US-Prov	1	60/808,816	Wafer Inspection Using Short-Pulsed Continuous Broadband Illumination	26/05/2006	26/05/2006	-	Provisional	D&M	NRI-2	Dov Furman, Shai Silbertein
	[***]
	0011-US-01	11	.US	1	11/590,650	Defect Detection through Image Comparison Using Relative Measures	31/10/2006	31/10/2006	-	Allowed	D&M	NRI-4	Erez Sali, Oren Cohen
	0002-US-03	2	.US	3	11/476,356	System for detection of wafer defects	15/01/2003	28/06/2006	-	Closed	STC	55072	Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai Silberstein

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

87

Trademarks  

	Registration #  	Registration Date  	Owned By  	Mark  
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

List of Trademark
Applications:  

	Serial #  	Filing Date  	Owned By  	Mark  
	77332770	November 19, 2007	Negevtech Ltd.	NEGEVTECH
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

Domain Names:

Negevtech.com

Negevtech.co.il

Negevtech.us

Negevtech.net

Negevtech.info

Negevtech.biz

Negevtech.co.uk

Negevtech.de

Negevtech.cn

Negevtech.com.cn

Negevtech.tw

Negevtech.com.tw  

88

Copyrights

	Registration #  	Registration Date  	Owned By  	Title  
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

89

                                             Dated March ___, 2008

                                                NEGEVTECH LTD.

                                                  as Assignor

                                                      and

KREOS CAPITAL II
LIMITED 

                                                  as Assignee

    
                              ISRAELI MASTER BORROWER DEED OF ASSIGNMENT

                                              BY WAY OF SECURITY

                    in relation to certain equipment as more specifically described herein

90

This Deed of Assignment is
made on March ___, 2008 between NEGEVTECH LTD., a company incorporated in Israel
whose registered office is at 12 Hamada St. Rehovot 76703, Israel
(“Assignor”) and KREOS CAPITAL II LIMITED, a company incorporated in
Jersey (Registered No. 87844) whose registered office is at 47 Esplanade, St Helier,
Jersey JE1 0BD.(the “Assignee”).  

Background 

The Assignee and the Assignor have
entered into the Venture Loan Agreement under which the Assignee has agreed to make
available to the Assignor a loan facility of US$7,000,000. The Assignor is or will be the
legal owner of the Equipment and the assets which is or will be purchased pursuant to and
in accordance with the terms of the Venture Loan Agreement and which is to serve as
security for the loan facility in accordance with the terms of the Venture Loan Agreement,
the Debenture – Fixed Charge, the Debenture – Floating Charge, the Debenture
Fixed Charge (IP) and the US Security Agreement. The Assignor has agreed to assign to the
Assignee its interest in the Insurances and the Requisition Proceeds as security for its
obligations under the Venture Loan Agreement. The Assignor and the Assignee intend this
Assignment to take effect as a deed. 

	1  	Definitions
and interpretation  

	1.1  	Definitions  

	 	
In
this Assignment, unless the context requires otherwise:  

	 	
“Agency” means
any agency, authority, central bank, department, government, legislature, minister,
ministry, official, or public or statutory person (whether autonomous or not) of, or of
the government of, a state or any political sub-division in or of that state; 

	 	
“Assigned
Property” means all of the right, title and interest, present and future, of the
Assignor in, to and under the Insurances and the Requisition Proceeds; 

	 	
this
“Assignment” means this Assignment as it may from time to time be
amended or supplemented;  

	 	
a
“consent” also includes an approval, authorisation, exemption, filing,
licence, order, permission, recording or registration (and references to obtaining
consents are to be construed accordingly); 

	 	
“Debentures” means
the Debenture – Fixed Charge, the Debenture – Floating Charge, the Debenture
– Fixed Charge (IP) and the US Security Agreement individually and collectively. 

	 	
“Debenture
– Fixed Charge” means the Debenture – Fixed Charge between the Assignor
and the Assignee dated _________, 2008 executed pursuant to the Venture Loan Agreement,
as may be amended and/or supplemented from time to time; 

	 	
“Debenture-
Floating Charge” means the Debenture – Floating Charge between the Assignor
and the Assignee dated ___________, 2008 executed pursuant to the Venture Loan Agreement,
as may be amended and/or supplemented from time to time; 

	 	
“Debenture
– Fixed Charge (IP)” – means the Debenture Fixed Charge (IP) between
the Assignor and the Assignee dated ___________2008 executed pursuant to the Venture Loan
Agreement, as may be amended and/or supplemented from time to time; 

	 	
“Dollars”or
“$” means the lawful currency of the United States of America;  

	 	
“Equipment” means
any item of equipment described in Schedule 1 from time to time and which is more
specifically defined and described in the Venture Loan Agreement, including New Equipment
(as defined below). At the Assignee’s request, Schedule 1 hereto shall be replaced
from time to time to reflect any addition of New Equipment; 

	 	
“Insurance
Company” means the insurance company or insurance broker (as appropriate)
approved by the Assignee under the Venture Loan Agreement; 

	 	
“Insurances” means
(a) all contracts and policies of insurance taken out from time to time in relation to
the Equipment, (b) all rights under Israel’s Property Tax and Compensation Fund Law
1961 in relation to the Equipment, (c) all payments to the Assignor in relation to (a)
and (b) above, and (d) all claims, rights and remedies of the Assignor arising from (a),
(b) and (c) above. For the sake of clarity any Insurance which covers the Equipment and
any additional assets which are not part of the Equipment, shall be deemed an Insurance
hereunder only with respect to part of the Insurance that relates to the Equipment; 

91

	 	
a
“law” includes common, customary or civil law or any constitution,
decree, judgment, legislation, order, ordinance, regulation, treaty or other legislative,
judicial or administrative measure, requirement or decision (or its interpretation or
application) whether or not having the force of law, but if not having the force of law,
only if the persons to whom it is intended to apply generally comply with it and a
provision of any law is a reference to that provision as amended or re-enacted; 

	 	
“Losses” includes
all losses, payments, damages, liabilities, claims, proceedings, actions, penalties,
fines, duties, fees, rates, levies, charges, demands, royalties or other sanctions of a
monetary nature, fees, insurance premiums, calls, judgments, costs and expenses (other
than any tax, levy, impost, duty or other charge or withholding of a similar nature
(including any penalty or interest payable in connection with any failure to pay or any
delay in paying any of the same)); 

	 	
“New
Equipment” means future purchases by the Assignor of Equipment to be located in
the State of Israel, which shall be made subject to the provision of the Loan (as defined
in the Venture Loan Agreement)), form part of the Security (as such term is defined in
the Venture Loan Agreement), as further detailed in the Venture Loan Agreement;[ 

	 	
a
“person” includes any individual, company, corporation, firm,
partnership, joint venture, association, organisation, trust or Agency (in each case,
whether or not having separate legal personality); 

	 	
“Receiver” means
an administrative receiver, receiver and manager or other receiver or trustee appointed
in respect of the Assigned Property; 

	 	
“Requisition
Proceeds” means (a) the amounts that are payable by any Agency as a consequence
of the requisition for hire, requisition for title, detention, forfeiture or other
compulsory acquisition of the Equipment; and (b) all claims, rights and remedies of the
Assignor against the relevant Agency in relation to (a) above; 

	 	
“Secured
Obligations” means all present and future obligations and liabilities (whether
actual or contingent and however owed) of the Assignor to the Assignee under the Venture
Loan Agreement and the Debentures;  

	 	
“Security” means
a mortgage, charge, pledge, lien or other security interest securing any obligation of
any person or any other agreement or arrangement having a similar effect;  

	 	
“US
Security Agreement” means the US Intellectual Property Security Agreement between
the Assignor and the Assignee dated ___________, 2008 pursuant to the Venture Loan
Agreement, as may be amended and/or supplemented from time to time. 

	 	
“Venture
Loan Agreement” means the agreement between the Assignor and the Assignee dated
March 30, 2008 for the provision of a loan facility of US$7,000,000; 

	 	
a
“Winding-up” of a person also includes the amalgamation, administration,
dissolution, liquidation, of that person, and any equivalent or analogous procedure under
the law of any jurisdiction in which that person is incorporated, domiciled or resident
or carries on business or has assets. 

	1.2  	Third
party rights  

	 	
A
person who is not a party to this Assignment has no right to enforce or enjoy the
benefits of any term of this Assignment.  

	2  	Undertaking
to pay  

	 	
The
Assignor undertakes to pay and discharge the Secured Obligations when they fall due in
accordance with their terms under the provisions of the Venture Loan Agreement. 

	3  	Assignment  

	(a)  	The
Assignor assigns to the Assignee with full title guarantee all its interest,
          both present and future, in the Assigned Property, as continuing security for
          its obligation to discharge the Secured Obligations. 

	(b)  	

	 	(i) 	The
Assignee will promptly reassign its interest in the Assigned Property to the
               Assignor when it is asked to do so by the Assignor, provided that it is
               satisfied that all of the Secured Obligations have been irrevocably and
               unconditionally discharged, subject to Clause 3(c). 

	 	(ii) 	The
Assignee will promptly execute any documents reasonably required by the
               Assignor to effect the reassignment referred to in Clause 3(b)(i). 

	 	(iii) 	The
reassignment referred to in this Clause 3(b) will be at the Assignor’s
               cost and will be effected without recourse to or warranty by the Assignee. 

92

	(c)  	If
any amount paid or credited to the Assignee under the Venture Loan Agreement           is
being avoided or set aside on the Winding-up of the Assignor, or otherwise
          pursuant to the provisions of the Venture Loan Agreement, that amount will not
          be considered to have been paid for the purposes of determining whether all the
          Secured Obligations have been irrevocably and unconditionally discharged,
          provided that Assignee provide written notice to the Assignor of such
          determination. 

	(d)  	The
Assignor undertakes that it will execute and deliver to: 

	 	(i) 	the
Insurance Company, upon the execution of this Assignment, with respect to
               the Equipment described in Schedule 1, and every time New Equipment that
becomes                part of Schedule 1 is delivered to the Assignor, a notice of the
assignment                effected by this Assignment in the form of Part 1 of Schedule
2, in respect of                the Equipment more particularly described in such notice,
and will use all                reasonable endeavours to ensure that the Insurance
Company executes an                acknowledgement of receipt of every such notice in the
form set out in Part 2 of                Schedule 2; and 

	 	(ii) 	the
relevant Agency, if any Agency requisitions the Equipment during the
               Security Period (as defined in the Venture Loan Agreement), a notice of
the                assignment effected by this Assignment in the form of Part 1 of
Schedule 3 and                will use all reasonable endeavours to ensure that that
Agency executes an                acknowledgement of receipt of that notice in the form
set out in Part 2 of                Schedule 3. 

	(e)  	For
avoidance of any doubt, the Assignee or the Receiver shall not be entitled
               to exercise any rights under this Assignment, unless and until an Event of
               Default under the Venture Loan Agreement and/or the Debentures has
occurred. 

	4  	Representations
and warranties  

	 	
TheAssignor
makes the representations and warranties set out in clause 6 of the Venture Loan
Agreement and in section 5 of the Debentures on the date of this Assignment as if they
were set out in full in this Assignment.  

	5  	Covenants  

	(a)  	The
Assignor will not: 

	 	(i) 	permit
any Security to exist over the Assigned Property which is not expressly
          contemplated by the Venture Loan Agreement and/or the Debentures; or 

	 	(ii) 	dispose
of the Assigned Property (whether by way of sale, lease, assignment,           the grant
of any Security or otherwise) unless it is expressly permitted to do           so by the
Venture Loan Agreement and the Debentures; or 

	 	(iii) 	attempt
to, hold itself out as having any power to, or permit any person to, do           any of
the above. 

	(b)  	The
Assignor will not amend any provision of, or waive any right under, the
               Venture Loan Agreement, the Debentures or the Insurances in any manner
which                could adversely affect the rights or interests of the Assignee under
this                Assignment without the prior written consent of the Assignee unless
it is                expressly permitted to do so by the Venture Loan Agreement or the
Debentures, as                applicable. 

	(c)  	The
Assignor will perform its obligations under the Venture Loan Agreement and
               the Debentures in accordance with their respective terms. 

	6  	Enforcement
of security  

	6.1  	When
security becomes enforceable  

	(a)  	The
security constituted by this Assignment will be immediately enforceable, and
               the powers conferred by applicable law, as varied and extended by this
Deed                shall be exercisable at any time after any occurrence which
constitutes an Event                of Default under the Venture Loan Agreement and/or
the Debentures. 

	(b)  	After
the security constituted by this Assignment has become enforceable, the
               Assignee may enforce all or any part of the security constituted by this
               Assignment in any manner that it sees fit. 

93

	6.2  	Powers
Conferred on Creditors  

	 	
All
powers conferred by applicable law on creditors and/or holders of liens and/or charges,
as varied and extended by this Assignment, will arise on the date of this Assignment,
provided that Assignee will not be entitled to exercise any such right unless and until
an Event of Default under the Venture Loan Agreement and/or the Debentures has occurred. 

	6.3  	Enforcement  

	 	
When,
and at any time after, the security constituted by this Assignment becomes enforceable,
the Assignee may immediately and without notice exercise all the powers and remedies that
it possesses according to applicable law as assignee of the Assigned Property or as it
sees fit in its sole and absolute discretion. The Assignee shall provide written notice
to the Assignor promptly upon taking such action. 

	6.4  	No
liability upon possession  

	 	
Neither
the Assignee nor any Receiver will be liable for any loss or realisation or for any
default or omission, as a consequence of its entering into possession of the Assigned
Property, except of event of fraud, or intentional act of omission of the Assignee or any
Receiver. 

	6.5  	Rights
and immunities  

	 	
Each
Receiver and the Assignee are entitled to all the rights, powers, privileges and
immunities conferred by applicable law on creditors, lien and/or charge holders and
receivers when such receivers have been duly appointed under this Assignment and/or
applicable law. 

	6.6  	Protection
of third parties  

	 	
No
person (including a purchaser) who deals with the Assignee or a Receiver or its or his
agents will be concerned to enquire: 

	 	(i) 	whether
the Secured Obligations have become payable; or 

	 	(ii) 	whether
any power which the Assignee or the Receiver is purporting to exercise                has
in fact become exercisable; or 

	 	(iii) 	whether
any money remains due under the Venture Loan Agreement; or 

	 	(iv) 	how
any money paid to the Assignee or to the Receiver is to be applied. 

	6.7  	Redemption
of prior security interests  

	(a)  	At
          any time after the security constituted by this Assignment has become
          enforceable, the Assignee may: 

	 	(i) 	redeem
any prior Security against any Assigned Property; and/or 

	 	(ii) 	procure
the transfer of that Security to itself; and/or 

	 	(iii) 	settle
and pass the accounts of the prior mortgagee, assignee or chargee (and           any
accounts so settled and passed will be conclusive and binding on the           Assignor). 

	(b)  	The
Assignor will pay all principal, interest, costs, charges and expenses of
               and incidental to any such redemption and/or transfer to the Assignee
promptly                on demand. 

	7  	Receiver  

	(a)  	The
Assignee may, without further notice, appoint any one or more qualified           persons
to be a Receiver of the Assigned Property, and fix such Receiver’s
          remuneration, at any time after the Security constituted by this Assignment has
          become enforceable and may remove any Receiver appointed by it whenever it
          considers it expedient, and appoint a new Receiver in the place thereof. Any
          right, power or discretion conferred by this Assignment (either expressly or
          impliedly) may be exercised by the Assignee in relation to any of the Assigned
          Property without first appointing a Receiver or notwithstanding the appointment
          of a Receiver. 

	(b)  	Each
Receiver has and is entitled to exercise all of the rights, powers and
          discretions given to the Assignee under this Assignment in respect of the
          Assigned Property and may immediately and without notice upon its appointment
          exercise all such powers and remedies that it possesses according to law or
          pursuant to this Assignment. 

94

	8  	Delegation  

	 	
The
Assignee may delegate to any person by power of attorney or in any other manner any
right, power or discretion exercisable by the Assignee under this Assignment. Any such
delegation may be made upon the terms (including power to sub-delegate) and subject to
any regulations that the Assignee may consider fit. 

	9  	Further
assurance  

	 	
The
Assignor will take whatever action the Assignee or a Receiver may reasonably require to:  

	 	(i) 	perfect
or protect the security intended to be created by this Assignment over                the
Assigned Property including registration of this Assignment at any
               appropriate registry in Israel and payment of any stamp duty that may be
               required in order to effect the registration; 

	 	(ii) 	facilitate
the realisation (in accordance with the provisions of this                Assignment) of
the Assigned Property; and 

	 	(iii) 	facilitate
the exercise (in accordance with the provisions of this Assignment)                of any
right, power or discretion exercisable by the Assignee or any Receiver or
               by any of its or their delegates or sub-delegates in respect of the
Assigned                Property which in any such case, the Assignee or a Receiver may
think necessary. 

	10  	Order
of distributions  

	 	
All
amounts received or recovered by the Assignee or any Receiver in exercising its rights
under this Assignment will, subject to the rights of any creditors having priority, be
applied: 

	 	(i) 	first,
in or towards the payment of all Losses (including the Receiver’s
               remuneration and outgoings) relating to the appointment of any Receiver or
the                exercise by the Assignee or any Receiver of any of his rights; 

	 	(ii) 	second,
in or towards the payment of the Secured Obligations; and 

	 	(iii) 	third,
in payment of any surplus to the Assignor or other person entitled to it. 

	11  	Power
of attorney  

	 	
The
Assignor, by way of security, irrevocably appoints the Assignee and each Receiver
severally to be its attorney (with full power of substitution), on its behalf and in its
name or otherwise, at such time and in such manner as the attorney thinks fit: 

	 	(i) 	to
do anything which the Assignor is obliged to do (but has not done) under the
               Venture Loan Agreement or the Debentures or which the attorney may
consider                necessary or desirable, in each case, to enable the Assignee or
Receiver to                exercise its rights or powers under this Assignment; and 

	 	(ii) 	to
exercise any of the rights conferred on the Assignee or any Receiver in
               relation to the Assigned Property under the Venture Loan Agreement or the
               Insolvency Act 1986, and ratifies and confirms and agrees to ratify and
confirm                any lawful act that any such attorney may do in exercising or
purporting to                exercise the power of attorney granted hereunder. 

	12  	Saving
provisions  

	12.1  	Continuing
security  

	 	
Subject
to Clause 3(b), the security constituted by this Assignment will:  

	 	(i) 	remain
in full force and effect as continuing security; 

	 	(ii) 	not
be affected in any way by any settlement of account (whether or not any
               Secured Obligations remain outstanding) or other matter or thing
whatsoever                apart of full satisfaction of the Secured Obligations; and 

	 	(iii) 	be
in addition to any other Security, guarantee or indemnity now or in the
               future held by the Assignee or any other person in respect of any of the
Secured                Obligations. 

95

	12.2  	Security
unaffected  

	 	
Without
prejudice to the generality of Clause 12.1 (Continuing security), neither the security
constituted by this Assignment nor the Secured Obligations will be affected in any way by
any time, indulgence, concession, waiver or consent given to the Assignor, any amendment
to or change in any Security, guarantee or indemnity (including the Venture Loan
Agreement and/or the Debentures), or any action, or the absence of any action, taken by
the Assignee in connection with any of the rights or obligations of any of the parties
hereunder or in connection with any document or any Security, guarantee or indemnity
(including the Venture Loan Agreement and/or the Debentures). 

	12.3  	Avoidance
of payments  

	 	
The
Assignor will on demand: 

	 	(i) 	indemnify
the Assignee against any Losses incurred by the Assignee as a result                of
the Assignee being required for any reason to refund all or part of any
               amount received or recovered by the Assignee in respect of any of the
Secured                Obligations, and 

	 	(ii) 	pay
to the Assignee, for the account of the Assignee, an amount equal to the
               amount so refunded by the Assignee under subsection (i) above (no double
payment                under (i) and (ii)). 

	 	
The above
indemnification shall be subject to Assignee providing the Assignor prior written notice
of such claim, allowing the Assignor to take control and defend any such claim, and
assisting the Assignor, at Assignor’s expense, in connection therewith (unless such
failure to provide notice did not disadvantage Assignor). In no event shall the Assignor
be obligated to indemnify Assignee for any settlement reached without Assignor’s
prior written consent.  

	12.4  	Suspense
accounts  

	 	
Any
amount received or recovered by the Assignee or any Receiver in exercising its rights
under this Assignment may be credited to an interest bearing suspense account and may be
kept there (with any interest earned being credited to that account) until the Assignee
is satisfied that all the Secured Obligations have been discharged in full. 

	12.5  	Continuation
of accounts  

	(a)  	At
any time after: 

	 	(i) 	the
Assignee has received notice (either actual or otherwise) of any subsequent
          Security affecting the Assigned Property, or 

	 	(ii) 	the
presentation of a petition or the passing of a resolution for the Winding-up
               of the Assignor, the Assignee may open a new account in the name of the
               Assignor. 

	(b)  	If
the Assignee does not open a new account in the circumstances contemplated by
               Clause 12.5(a), it will nevertheless be treated as if it had done so when
the                relevant event occurred and no moneys paid into any account, whether
new or                continuing, after that event shall discharge or reduce the amount
recoverable                under the Venture Loan Agreement and/or the Debentures. 

	13  	Enforcement
expenses  

	 	
For
the avoidance of doubt, the Assignor will pay to the Assignee on demand all reasonable
costs, charges, losses, liabilities and expenses of the Assignee in connection with the
enforcement of this Assignment and all reasonable costs, charges, losses, liabilities and
expenses of and incidental to the appointment of any Receiver and the exercise of any of
his rights under this Assignment, including his remuneration and all outgoings paid by
him. 

96

	14  	Payments  

	(a)  	Any
demand for payment made by the Assignee pursuant to this Assignment will be
          valid and effective as a demand in respect of the relevant Secured Obligations. 

	(b)  	All
amounts payable by the Assignor under this Assignment must be paid for value           on
the due date by banker’s telegraphic transfer to the account with           account
number [•] with [•] at [•], SWIFT code [•]           designated “[•]",
or any other account that the Assignee may from           time to time designate as such
by not less than ten (10) Business Days’ (as           defined in the Venture Loan
Agreement) prior notice to the Assignor. 

	15  	Waivers
and determinations  

	(a)  	

	 	(i) 	If
the Assignee or any Receiver fails to exercise or delays in exercising any
               right under the Venture Loan Agreement and/or the Debentures, that failure
or                delay will not operate as a waiver of that right. 

	 	(ii) 	Any
single or partial exercise of any right will not preclude any other or
               further exercise of that right or the exercise of any other right. 

	(b)  	Any
determination by or certificate of the Assignee or any Receiver under this
          Assignment, the Venture Loan Agreement and/or the Debentures will be conclusive
          unless it is manifestly incorrect. 

	(c)  	The
rights under this Clause 15 are additional to, and may be exercised
          alternatively to, rights and security elsewhere in this Assignment or the
          Venture Loan Agreement and/or the Debentures. 

	(d)  	Nothing
contained in this Assignment shall derogate in any manner from any           security
interest granted by the Assignor to the Assignee under the Debentures           and/or
from any other undertaking, obligation or covenant of the Assignor under           the
provisions of the Venture Loan Agreement and/or the Debentures. For the
          avoidance of doubt and notwithstanding anything to the contrary herein, there
          shall be no double payment or liability due from the Assignor to the Assignee
or           to the Receiver as a result of any provision or obligation which may appear
in           this Assignment, the Debentures and the Venture Loan Agreement. 

	16  	Further
provisions  

	(a)  	All
obligations of the Assignor under this Assignment constitute conditions, the
          time for performance of which will be of the essence (without prejudice to the
          grace periods specified in the Venture Loan Agreement and/or the Debentures). 

	(b)  	This
Assignment may only be varied by an instrument in writing executed by or on
          behalf of the Assignor and the Assignee. 

	(c)  	If
any provision of this Assignment is illegal, invalid or unenforceable under           the
law of any jurisdiction, this will not affect: 

	 	(i) 	the
legality, validity or enforceability of that provision under the law of any
          other jurisdiction; nor 

	 	(ii) 	the
legality, validity or enforceability of any other provision of this
               Assignment or of the Venture Loan Agreement and/or the Debentures. 

	(d)  	This
Assignment may be executed in any number of counterparts and this will have           the
same effect as if the signatures on the counterparts were on a single copy           of
this Assignment. 

	(e)  	The
Assignor may not assign or transfer all or any part of its rights and/or
          obligations under this Assignment. The Assignee and all those claiming under it
          shall be entitled, at all times, to assign to others their rights under this
          Assignment, without the necessity of obtaining the Assignor’s consent
          thereto but after providing written notice to the Assignor provided that such
          assignment is made together with the assignment of their rights under the
          Venture Loan Agreement and pursuant to the provisions of section 13.5 thereto. 

	17  	Notices  

	 	
Any
communication to be made under or in connection with this Assignment will be made in
writing and, unless otherwise stated, may be made by fax or letter in accordance with
clause 13.7 of the Venture Loan Agreement. 

97

	18  	Governing
law and enforcement  

	(a)  	This
Assignment is governed by Israeli law, without giving effect to the           principles
thereof relating to conflict of laws. 

	(b)  	Each
party irrevocably agrees that the courts of the city of Tel Aviv-Jaffa           shall
have jurisdiction to hear and determine any suit, action or proceedings,           and to
settle any disputes, which may arise out of or in connection with this
          Agreement (respectively “Proceedings” and           “Disputes”)
and, for such purposes, irrevocably submits to the           jurisdiction of such courts.
Each party irrevocably waives any objection which           it might now or hereafter
have to the courts of the city of Tel Aviv-Jaffa being           nominated as the forum
to hear and determine any Proceedings and to settle any           Disputes and agrees not
to claim that any such court is not a convenient or           appropriate forum. 

This Assignment has been duly
executed as a deed on the date stated at the beginning. 

98

SCHEDULE 1 

Description of
Equipment 

[***] 

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

99

SCHEDULE 2 

Part 1 

Notice of assignment
of Insurances 

To: INSURANCE COMPANY

[Date]

Re: The equipment set
out in the table below (the “Equipment”) 

We refer to the Venture Loan
Agreement between European Venture Partners II Leveraged Venture Leasing Company Limited
as lender (the “Assignee”) Siano Mobile Silicon Ltd. and its parent
company, Siano Mobile Silicon Inc. as borrower (the “Assignor”) dated
[—]. 

We hereby give you notice that by an
Israeli Borrower Deed of Assignment dated [—] (the “Deed”) between the
Assignor and the Assignee, the Assignor assigned to the Assignee by way of security all
its right, title and interest, present and future, in and to: 

	 	(h) 	all
contracts and policies of insurance taken out from time to time in relation
               to the Equipment (together, the “Insurances”); 

	 	(i) 	all
payments to the Assignor in relation to the Insurances; and 

	 	(j) 	all
claims, rights and remedies of the Assignor arising from the Insurances. 

We attach a copy of the Deed. 

Capitalised terms and expressions
that are not defined in this Notice have the meanings given to them in the Deed. 

Please acknowledge that you have
received this Notice by signing and returning to each of the Assignee and the Assignor a
copy of the attached Acknowledgement. 

This Notice will be governed by and
construed in accordance with Israeli law. 

_____________________

For and on behalf of

[ASSIGNOR]

                                               Description of Equipment

100

Part 2 

Acknowledgement of
assignment of Insurances 

To:       (1) [ASSIGNEE]

                (2) [ASSIGNOR]

[Date]

Re: The equipment set
out in the table below (the “Equipment”) 

We acknowledge receipt of the
attached notice of assignment (the “Notice”) and we irrevocably and
unconditionally consent to the assignment set out in it and we undertake to be bound by
its terms. 

We confirm that we have not received
notice of any other assignment of the Insurances. 

In this Acknowledgement, capitalised terms
and expressions that are not defined in the Notice have the meanings given to them in the
Deed. 

This Acknowledgement will be governed
by and construed in accordance with Israeli law. 

______________________

For and on behalf of

INSURANCE COMPANY

Description of
Equipment3 

	3 	 This
list should set out Equipment which is listed in the schedule to the Notice           to
which it relates. 

101

SCHEDULE 3 

Part 1 

Notice of assignment
of Requisition Proceeds 

To: [                       ]

[Date]

Re: The equipment set
out in the table below (the “Equipment”) 

We refer to the Venture Loan
Agreement between European Venture Partners II Leveraged Venture Leasing Company Limited
as lender (the “Assignee”)Siano Mobile Silicon Ltd and its parent
company, Siano Mobile Silicon Inc. as borrower (the “Assignor”), dated
[—]. 

We hereby give you notice that by an
Israeli Borrower Deed of Assignment dated [—] (the “Deed”) between the
Assignor and the Assignee, the Assignor assigned to the Assignee by way of security all
its right, title and interest, present and future, in and to all amounts that are payable
by any government as a consequence of the requisition for hire, requisition for title,
detention, forfeiture or other compulsory acquisition of the Equipment
(“Requisition Proceeds”). 

We attach a copy of the Deed. 

Capitalised terms and expressions
that are not defined in this Notice have the meanings given to them in the Deed. 

Please acknowledge that you have
received this Notice by signing and returning to each of the Assignee and the Assignor a
copy of the attached Acknowledgement. 

This Notice will be governed by and
construed in accordance with Israeli law. 

_____________________

For and on behalf of

[ASSIGNOR]

Description of Equipment4 

	4 	 This
list should set out any Equipment which has been requisitioned. 

102

Part 2 

Acknowledgement of
assignment of Requisition Proceeds 

To:       (1) [ASSIGNEE]

                (2) [ASSIGNOR]

[Date]

Re: The equipment set
out in the table below (the “Equipment”) 

We acknowledge receipt of the
attached notice of assignment (the “Notice”) and we irrevocably and
unconditionally consent to the assignment set out in it and we undertake to be bound by
its terms. 

We confirm that we have not received
notice of any other assignment of the Requisition Proceeds. 

In this Acknowledgement, capitalised terms
and expressions that are not defined in the Notice have the meanings given to them in the
Deed. 

This Acknowledgement will be governed
by and construed in accordance with Israeli law. 

______________________

For and on behalf of

[                      ]

Description of
Equipment5 

	5 	        This
list should set out Equipment which is listed in the schedule to the Notice           to
which it relates 

103

                                              BORROWER DEED OF ASSIGNMENT

                                                    EXECUTION PAGE

ASSIGNOR 

SIGNED as a deed by

NEGEVTECH LTD.

acting by [ —] and [—]

acting under authority of that Company

in the presence of:

signature of witness: ...................................

name of witness: .....................................

address: ..............................................

occupation: ...............................................

ASSIGNEE 

			
			
			
			
			
	SIGNED as a Deed by RAOUL STEIN  	)	as attorney for and on behalf of
	KREOS CAPITAL II LIMITED 
	 
	under a power of attorney dated	)
	_______________ in the	)
	presence of	)

signature of witness: ...................................

name of witness: .....................................

address: ..............................................

occupation: ...............................................

104

SCHEDULE B 

THE EQUIPMENT 

		
		
		
		
		
	Delivery Address/	 
	Location of the Equipment	__________________________
	 
	 	__________________________
	 
	 	__________________________
	 
	 	__________________________
	 
	Contact name at Borrower	___________________________

Description

[***] 

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

105

SCHEDULE C 

THE REGISTERED
INTELLECTUAL PROPERTY 

	NT file name	Family	Country	#	Official
No.	Title	Prior date	Filing date	Issue date	Status	Attorney	Attorney
file name	Inventors
	0001-US-01	1	.US	1	6,693,664	Method and system for fast on-line electro-optical detection of wafer defects	30/06/1999	18/06/2002	17/02/2004	Issued	STC	44623	Gad Neumann
	0002-US-07	2	.US	7	7,180,586	System for detection of wafer defects	15/01/2003	23/12/2004	20/02/2007	Issued	STC	53751	Gad Neumann & Noam Dotan
	0003-US-01	3	.US	1	6,892,013	Fiber optical illumination system	15/01/2003	15/01/2003	10/05/2005	Issued	STC	47667	Dov Furman, Gad Neumann, Noam Dotan
	0003-US-02	3	.US	2	7,260,298	Fiber optical illumination system	15/01/2003	01/04/2005	21/08/2007	Issued	STC	54590	Dov Furman
	0004-US-02	4	.US	2	7274444	Multimode inspection method and apparatus	12/07/2004	06/07/2005	-	Issued	STC	53885	Dov Furman, Noam Dotan, Efraim Miklatzky
	0002-US-04	2	.US	4	11/476,358	System for detection of wafer defects	15/01/2003	28/06/2006	-	Pending	STC	55147	Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai Silberstein
	0002-US-05	2	.US	5	11/476,322	System for detection of wafer defects	15/01/2003	28/06/2006	-	Pending	STC	55070	Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai Silberstein
	0002-US-06	2	.US	6	11/524,684	System for detection of wafer defects	15/01/2003	21/09/2006	-	Pending	STC	55247	Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai Silberstein
	0003-US-03	3	.US	3	11/709,019	Fiber optical illumination system	15/01/2003	21/02/2007	 	Pending	STC	60473	Dov Furman
	0002-US-01	2	.US	1	10/345,097	System for detection of wafer defects	15/01/2003	15/01/2003	-	Pending	STC	44420	Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai Silberstein
	0002-US-02	2	.US	2	11/476,342	System for detection of wafer defects	15/01/2003	28/06/2006	-	Pending	STC	55071	Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai Silberstein
	0006-US-01	6	.US	1	11/069,712	Method and apparatus for detecting defects in wafer	28/02/2005	28/02/2005	-	Pending	STC	53603	Erez Sali, Tomer Yanir, Mark Wagner, Noam Dotan, Yuval Dorfan, Ran Zaslavsky
	0007-US-01	7	.US	1	11/068,711	Method and apparatus for detecting defects in wafers including alignment of the wafer images so as to induce the same smear in all images	28/02/2005	28/02/2005	-	Pending	STC	53604	Yuval Dorfan, Ran Zaslavsky, Mark Wagner, Dov Furman, Shai Silberstein
	0008-US-01	8	.US	1	11/410,276	Printed Fourier Filtering In Optical Inspection	24/04/2006	24/04/2006	-	Pending	D&M	NRI-1	Dan Fuchs, Shai Silberstein
	0009-US-02	9	.US	2	11/684,191	Wafer Inspection Using Short-Pulsed Continuous Broadband Illumination	26/05/2006	09/03/2007	-	Pending	D&M	NRI-2	Dov Furman, Shai Silbertein
	0010-US-01	10	.US	1	11/503,859	Speckle Reduction Using a Fiber Bundle and Light Guide	14/08/2006	14/08/2006	-	Pending	D&M	NRI-3	Dov Furman, Daniel Mandelik
	[***]
	[***]
	[***]
	[***]
	[***]
	0004-US-01	4	US-Prov	1	60/587,675	Multimode inspection method and apparatus	12/07/2004	12/07/2004	-	Filed	STC	?	Dov Furman, Noam Dotan, Efraim Miklatzky
	0004-US-03	4	.US	3	11/895,204	Multimode inspection method and apparatus	12/07/2004	22/08/2007	-	Filed	STC	62742	Dov Furman, Noam Dotan, Efraim Miklatzky
	0009-US-01	9	US-Prov	1	60/808,816	Wafer Inspection Using Short-Pulsed Continuous Broadband Illumination	26/05/2006	26/05/2006	-	Provisional	D&M	NRI-2	Dov Furman, Shai Silbertein
	[***]
	0011-US-01	11	.US	1	11/590,650	Defect Detection through Image Comparison Using Relative Measures	31/10/2006	31/10/2006	-	Allowed	D&M	NRI-4	Erez Sali, Oren Cohen
	0002-US-03	2	.US	3	11/476,356	System for detection of wafer defects	15/01/2003	28/06/2006	-	Closed	STC	55072	Dov Furman, Gad Neumann, Noam Dotan, Ram Segal, Shai Silberstein

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

106

SCHEDULE D 

FORM OF APPROVAL FROM
BORROWER EXISTING CREDITORS 

In Addition to the attached List of
Creditors, the Borrower’s Existing Creditors includes also any other creditors of
Negevtech Inc., as long as such creditors exists, and any approval required from the
Borrower’s Existing Creditors, shall be required from Negevtech Inc.‘s creditors
as well. 

Negevtech Ltd. - Table of Charges 

	Charge No	In favor of	 Created On	Type
	 	 	 	 
	1	RELEASED
	2	Bank Leumi	22.12.2004	Floating
	3	RELEASED
	4	RELEASED
	5	Bank Leumi	2.3.2005	Fixed (IP)
	6	Plenus Group*	6.11.2005	Floating
	7	Plenus Group*	6.11.2005	Fixed (IP)
	8	Bank Leumi	20.2.2007	Fixed (Deposits)

	Pre Closing Order of Seniority**
	Fixed Charge No. 7 is pari passu with Fixed Charge no. 5 (both with respect to IP)
	Fixed Charge No. 8 (with respect to bank accounts)
	Floating Charge No. 6 is pari passu with Floating Charge no. 2 (both with respect to all the Company's assets)

	Post Closing Order of Seniority with Respect to Negevtech Ltd.'s Assets
	Kreos Fixed Charge (Over Negevtech Ltd's Equipment)	Fixed Charge No. 8 (with respect to bank accounts)	Fixed Charge No. 7 is pari passu with Fixed Charge no. 5 (both with respect to IP)
	 	 	Kreos Fixed Charge (IP)
	Floating Charge No. 6 is pari passu with Floating Charge no. 2
 (both with respect to all the Ltd's assets)	 	 
	Kreos Floating Charge	 	 

* Plenus Group includes: Plenus
Technologies Ltd., Bank Leumi, Golden Gate Bridge Fund LP., Plenus II LP and Plenus
(D.C.M.) LP 

** pursuant to Sec. 1.4 of the
Plenus Loan Agmt 

107

                                                      SCHEDULE E

                                                FORM OF DRAWDOWN NOTICE

                                                    DRAWDOWN NOTICE

    
                                                   Drawdown

                                                        No. [ ]

	dated 	200[ ] 

                                                        between

		
		
		
		
		
	KREOS CAPITAL II LIMITED 	[Borrower] 
		[ 
	 
		] 
	 
	                   the ("Lender") 	the ("Borrower") 

This Drawdown Notice forms a
Schedule to the Loan Agreement between the parties dated [                                         ] 

The Lender has granted the Borrower a
loan facility pursuant to the terms and conditions set out in the Loan Agreement and
attached Appendices. 

Words and expressions in this
Drawdown Notice shall have the same meanings as in the Loan Agreement. 

108

PART 1 

Loan Terms and
Conditions 

			
			
			
			
			
	Total Loan Facility 	US$ [ 	] 
	  
	Amount of Loan Facility utilised under previous Drawdown Notice(s) 	US$ [ 	] 
	  
	Amount of Loan Facility utilised under this Drawdown Notice 	US$ [ 	] 
	  
	Balance Loan Facility available for drawdown under future Drawdown Notices 	US$ [ 	] 
	  
	Loan Term 	[ 	Years] 
	  
	Bank Account Details for remittance of funds 	[ 	] 

The Equipment and location of the Equipment
the subject of this Drawdown Notice is referred to in Appendix A to this Drawdown
Notice. The principal will be repaid and interest shall be paid monthly in accordance with
Appendix B to this Drawdown Notice. 

We confirm that: 

	(a)  	the
representations and warranties made by us in the Loan Agreement are true and
               accurate on the date of this Drawdown Notice as if made on such date; and 

	(b)  	no
Event of Default has occurred and is continuing or would result from the
               delivery of this Drawdown Notice. 

for and on behalf of

[BORROWER] 

Authorised
Signatory.................. 

Name........................................ 

109

APPENDIX A  

Equipment 

In this Appendix
“Equipment” means the equipment plant and machinery listed below together with
all spare parts, replacements, repairs, modifications, improvements and additions thereto
from time to time. 

NEGEVTECH LTD.‘s
LIST OF EQUIPMENT 

[***] 

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

110

NEGEVTECH INC’s LIST
OF EQUIPMENT 

Negevtech, Inc.

Fixed Assets Subledger

LHIs

[***] 

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

111

APPENDIX B  

Interest and Principal
Payment Due Dates 

[                                                                                ]

112

 SCHEDULE F 

 ACTIONS, PROCEEDING OR CLAIMS 

	1.  	KLA-Tencor
claims – In July and August 2004 and in March 2005, the Company
               received letters from KLA–Tencor (“KLA”) asserting
that                the Company’s 302 inspection system makes use of five KLA
patents and                requesting technical information regarding the 302 system. In
response to these                letters, the Company has identified certain limitations
of the KLA patents that                are absent from the 302 system. The Company also
requested further clarification                of KLA’s claims. The Company disputes
KLA’s claims and is attempting                to resolve these issues without
resorting to litigation, although these                assertions by KLA could lead to
patent litigation. On January 30, 2006 the                Company provided KLA with Mr.
Gadi Nuemann’s (one of the founders of the                Company) declaration that
the Company’s tools do not include particular                claim limitations from
KLA’s patents (the content of such declaration was                agreed between KLA
and the Company). There have been no further communications                from KLA since
February 2006. 

	2.  	Applied
Materials claims – On August 27, 2004, Applied Materials, Inc.                filed
suit in the U.S. District Court of the Northern District of California
               alleging that the Company’s 302 inspection system infringes an
Applied                Materials’ patent (U.S. Patent No. 5,982,921) and seeking an
injunction and                unspecified damages. On October 12, 2004, the Company filed
an amended answer to                Applied Materials’ complaint and also filed
counterclaims for declaratory                judgment of non-infringement and invalidity.
The Company disputes Applied                Materials’ claims and further believes
that some or all of the claims of                the ‘921 patent are invalid. On
June 3, 2005, Applied Materials, Inc. and                Applied Materials Israel
(collectively, “Applied Materials”)                filed an amended
complaint against the Company. On June 23, 2005, the Company                filed an
answer to the amended complaint and again filed counterclaims for
               declaratory judgment of non-infringement and invalidity. On July 14, 2005,
the                Court issued an order under the legal doctrine of assignor estoppel
that                prevents the Company from challenging the validity of the ‘921
patent in                this lawsuit. On June 3, 2005, the Company filed with the United
States Patent                and Trademark Office (“PTO”) a request for
reexamination of the                ‘921 patent seeking reexamination of certain
claims of the ‘921                patent. On June 10, 2005, Applied Materials
asserted against the Company                additional claims of the ‘921 patent
that were not specifically addressed                in the Company’s request for
reexamination. On August 22, 2005, the Company                filed with the PTO a second
request for reexamination addressing the additional                asserted claims. In
September 2005, the PTO granted the Company’s first and                second
request for reexamination, finding a “substantial new question of
               patentability” regarding seven of the asserted claims in the ‘921
               patent. In October 2005, the Court stayed the California litigation on the
               ‘921 patent pending the PTO’s decision on the Company’s
second                request for reexamination, which addresses the four asserted claims
that were                not specifically addressed by the Company’s first request.
In January 2007,                the PTO agreed with the Company’s arguments in its
first request and                rejected each of the claims at issue in that
request (6, 9, 10, 12, 16, 24,                25 and 26) as invalid over the prior art.  Applied
Materials responded to                those rejections in March 2007.  The Company
is awaiting the PTO’s                follow-up action. The PTO has not yet
submitted an initial office action on                the Company’s second request.
The process of the reexaminations on the                ‘921 patent is open to the
public and can be monitored online at                www.uspto.gov. 

113

	3.  	On
July 2006 Roee Raz, a former employee of the Company complained that his eyes
               were injured during his work in the Company’s clean room. The
employee went                through medical examinations, which identified that he
suffers from sore eyes,                but did not reveal any major damage. Since then,
Mr. Raz did not initiate any                legal process against the Company in
connection to the aforementioned case. 

	4.  	6
employees of the Company, who terminated their employment with Applied
               Materials and began working for the Company, informed the Company that
Applied                Materials refused to pay them severance pay and other amounts
accumulated during                their employment with Applied Materials in pension
funds, due to their move to                the Company. Neither the Company nor, to the
Company’s knowledge, any of                such employees have received any written
claim or demand from Applied Materials. 

114

                                                      SCHEDULE G

                                                      SIDE LETTER

115

Duly executed by the parties on
the date first set out on the first page of this Loan Agreement. 

BORROWER

Signed

For and on behalf of

NEGEVTECH LTD.

Authorised signatory

Name: ......................

Title: .......................

NEGEVTECH INC.

Authorised signatory

Name: ......................

Title: .......................

LENDER

Signed

For and on behalf of

KREOS CAPITAL II LIMITED

Authorised signatory

Name: .......................

Title: ......................... 

116

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