Document:

PROMISSORY NOTE
                                 ---------------

                                                              Lakewood, Colorado

$3,000.00                                                           May 20, 2003

     FOR VALUE RECEIVED,  the  undersigned,  Rub A Dub Soap,  Inc.  (hereinafter
     ------------------
referred to as the "Maker"),  agrees and promises to pay to the order of Lisa R.
Powell  (hereinafter  referred to as the  "Holder"),  at 13279 West Ohio Avenue,
Lakewood,  Colorado  80228,  or such other place as the Holder may  designate in
writing, in coin or currency of the United States of America,  which at the time
of payment is legal  tender for the  payment of public and  private  debts,  the
principal sum of three thousand dollars  ($3,000.00),  without interest thereon,
from the date hereof until  maturity,  as  hereinafter  provided.  The principal
balance of this Promissory Note (hereinafter referred to as the "Note") shall be
due and payable on the date of the closing, out of the proceeds, of that certain
offering  of a minimum of 100,000,  and a maximum of  800,000,  shares of common
stock,  $.001  par value  per  share,  of the  Maker  pursuant  to that  certain
Registration  Statement,  File No.  333-98315,  on file with the  Securities and
Exchange Commission under the Securities Act of 1933 and Section 11-51-308(1)(p)
of the Colorado Securities Act.

     This Note may be prepaid in whole or in part at any time without penalty.

     If default is made in the payment of this Note,  as and when the same is or
becomes due, the owner and holder of this Note may,  after notice and failure to
cure as hereinafter provided,  without additional notice or demand,  declare the
entire unpaid principal balance hereof and accrued interest, if any, at once due
and payable.

     Except as otherwise  specifically  set out herein,  the Maker waives demand
and presentment for payment, notice of non-payment,  protest, notice of protest,
notice of acceleration of the indebtedness  due hereunder,  bringing of suit and
diligence  in taking any action to collect  amounts  called for  hereunder,  and
agrees that the time of payments  hereof may be extended  without  notice at any
time  and  from  time-to-time,  and for  periods  of time for a term or terms in
excess of the original term without notice or consideration to, or consent from,
the Maker,  without same constituting a waiver of the Holder's rights under this
Note.

     If any payment hereunder is not made when due or in the event of default in
any other covenant,  condition or promise under this Note, the principal  shall,
at the option of the Holder and without further notice,  immediately  become due
and payable in full. From and after the date of such default,  the principal sum
shall bear interest at the rate of eighteen percent (18%) per annum until paid.

     If the entire  outstanding  principal balance becomes due, the Maker agrees
to pay the Holder's reasonable costs (including  reasonable  attorney's fees and
court costs) in  collecting  on this Note,  including  the  reasonable  costs of
obtaining and enforcing a judgment for any balance due on this Note.

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     This Note has been  executed  in the City  identified  in the  heading  and
delivered to the Holder at the address stated herein. It is to be performed,  in
whole or in part,  in the State of  Colorado,  and the laws of such state  shall
govern the validity, construction,  enforcement and interpretation of this Note.
Jurisdiction  and venue for any action  hereunder  shall be in the County of the
City identified in the heading.

     The Maker  represents  that it is duly  authorized  and  empowered to enter
into,  deliver,  perform and be fully bound by all of the terms,  provisions and
conditions of this Note. The Maker also  represents that the making and delivery
of this  Note,  and the  performance  of any  agreement  or  instrument  made in
connection  herewith,  does not conflict with or violate any other  agreement to
which the Maker is a party.

     The Holder may transfer this Note to any person,  firm or corporation  that
shall thereupon  become vested with all of the rights and powers herein given to
the Holder and the Holder shall  thereafter be forever  relieved and  discharged
from any liability to the Maker with respect to any matters  arising  subsequent
to the date of such transfer.

     In the event that any word,  phrase,  clause,  sentence or other  provision
hereof shall  violate any  applicable  statute,  ordinance or rule of law in any
jurisdiction  in which it is used,  such  provision  shall be ineffective to the
extent of such violation without invalidating any other provision hereof.

     IN  WITNESS  HEREOF,  this  Note is  executed  on the date  and year  above
written.

                                           RUB A DUB SOAP, INC.

                                          By:  /s/ Lisa R. Powell
                                               ---------------------------------
                                                       Lisa R. Powell, President

                                        2CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
                    -----------------------------------------

We consent to the use in this  registration  statement  of our report dated July
10, 2003 on the financial  statements for Rub A Dub Soap,  Inc. as of the period
from  inception  (September  28,  2001)  to May 31,  2003,  May 31,  2002 and to
references to our firm as accounting and auditing experts in the prospectus.

Denver, Colorado
August 13, 2003

                                                           /s/Comiskey & Company
                                                        PROFESSIONAL CORPORATION<PAGE>

Exhibit 10.1

On June 26, 2003, Section 2(a) of the Center Bancorp., Inc.1993 Outside Director
Stock Option Plan was amended to read in its entirety as follows:

"Anniversary  Date" shall mean, for each Outside Director,  the later of (x) the
date on which  this  Plan is  approved  by the Board and (y) the 365th day after
such Outside  Director  first became a member of the Board  (provided  that such
director remains on the Board on such 365th day); provided,  however,  that with
respect to any Outside  Director  that first  became a member of the Board on or
after November 1, 2002 and prior to April 30, 2003, the term "Anniversary  Date"
shall mean October 31, 2003 ( provided that such  Director  remains on the Board
on October 31, 2003)."Exhibit 4.3

                            TOWER SEMICONDUCTOR LTD.
                       EMPLOYEE SHARE OPTION PLAN 2003/1

            A PLAN UNDER SECTION 102 OF THE INCOME TAX ORDINANCE AND
                THE UNITED STATES INTERNAL REVENUE CODE OF 1986

1.       NAME AND PURPOSE:
         1.1      This plan, as amended from time to time, shall be known as the
                  Tower Semiconductor  Limited Employee Share Option Plan 2003/1
                  (the "2003/1 Plan" or the "Plan").

         1.2      The purpose and intent of the Plan is to provide incentives to
                  employees of Tower  Semiconductor Ltd. (the "Company") and its
                  wholly-owned  subsidiaries (each, a "Subsidiary") by providing
                  them  with  options  ("Options")  to  purchase  shares  in the
                  Company, pursuant to a plan approved by the Board of Directors
                  of the Company (the "Board").  Options granted under this Plan
                  to Israeli  residents  will be made pursuant to the provisions
                  of  Section  102  ("Section  102") of the  Israeli  Income Tax
                  Ordinance  (New  Version),  1961 as amended  from time to time
                  and,  most  recently,  by the  Law  Amending  the  Income  Tax
                  Ordinance (Number 132) 2002 (as amended,  the "Ordinance") and
                  the  rules  promulgated  thereunder  (the  "Rules").   Options
                  granted  under this Plan to United  States  residents  will be
                  made  pursuant to the United States  Internal  Revenue Code of
                  1986, as amended (the "Code").

2.       TYPES OF 102 OPTIONS AND SECTION 102 ELECTION:
         Options  granted  pursuant to Section 102 shall be granted  pursuant to
         either (a) Section  102(b)(2)  thereof as capital gains track  options,
         pursuant to which income resulting from the sale of shares derived from
         such  Options is taxed as a capital  gain  ("102  Capital  Gains  Track
         Options"),  or (b) Section  102(b)(1)  thereof as ordinary income track
         options,  pursuant to which  income  resulting  from the sale of shares
         derived  from such Options is taxed as ordinary  income ("102  Ordinary
         Income Track  Options";  together with 102 Capital Gains Track Options,
         "102  Trustee  Options").  The  Company  may grant only one type of 102
         Trustee  Option at any given time pursuant to this Plan, and shall file
         an election with the Israeli Tax Authorities  regarding the type of 102
         Trustee Option it chooses to grant (the  "Election").  Once the Company
         has filed such  Election,  it may change the type of 102 Trustee Option
         that it chooses  to grant only after the  passage of at least 12 months
         from the end of the calendar  year in which the first grant was made in
         accordance with the previous Election.  The aforementioned  election of
         the Company will be approved by the Board.

3.       TYPES OF OPTIONS GRANTED UNDER THE CODE:
         Options  granted  to US  residents  under  the Code  shall be either an
         Option  intended to qualify as an  incentive  stock  option  within the
         meaning of Section 422 of the Code  ("ISO"),  or an Option not intended
         to qualify as an ISO ("NSO").

<PAGE>

4.       SCOPE:
         The total  number of Options  which can be granted  under this Plan are
         Options to  purchase  up to  2,780,420  Ordinary  Shares of the Company
         (nominal value NIS 1.00 per share),  subject to adjustments as provided
         in Section 13 below.

5.       ADMINISTRATION:

         5.1.     The Plan will be administered by the Board of Directors of the
                  Company,  taking  into  account  the  recommendations  of  the
                  Compensation  and  Options  Committee  (the  "Committee"),   a
                  sub-committee of the Board.

         5.2.     No  member  of the Board  shall be  liable  for any  action or
                  determination  made in good faith with  respect to the Plan or
                  any Option granted hereunder.

6.       ELIGIBLE GRANTEES:

         6.1.     No option  award  under this Plan (an  "Option  Award") may be
                  granted to any person serving as a member of the Board, unless
                  such  person is also an employee of the Company at the time of
                  the Option Award;  and in such event,  this person may only be
                  granted 102 Trustee  Options.  Subject to this  limitation and
                  any restriction  imposed by any applicable law, Options may be
                  granted  to any  employee  of the  Company  or any  Subsidiary
                  ("Grantee").  The  grant  of  an  Option  Award  to a  Grantee
                  hereunder,  shall neither entitle such Grantee to participate,
                  nor disqualify him/her from participating,  in any other grant
                  of Options  pursuant to this Plan or any other share incentive
                  or share  option plan of the Company or any  Subsidiary.

         6.2.     Grants of ISO's  shall be made only to  employees  eligible to
                  receive them under  Section 422 of the Code.  If (i) a Grantee
                  of  ISO's  at  the  time  of  the  Option  Award  owns  shares
                  representing  more than 10% of the voting power of the Company
                  or its parent or a Subsidiary,  (ii) the aggregate Fair Market
                  Value (as defined hereunder),  as at the time of the grant, of
                  the shares  underlying  ISOs which  first  become  exercisable
                  during any calendar year exceeds $100,000 (taking such Options
                  into account in the order in which they were granted) or (iii)
                  such  Options   otherwise   fail  to  fully  comply  with  the
                  requirements  for ISO's under the Code,  such Options shall be
                  treated as NSOs.  Options  designated as ISO's will be treated
                  as NSOs if a  disposition  of  underlying  shares  exercisable
                  under the Option is made within two years from the date of the
                  granting  of the Option or within one year after the  exercise
                  of the Option.

7.       TRUSTEE; REQUIRED HOLDING PERIODS:

         7.1.     Option  Awards  and/or  shares in the  Company  which  will be
                  issued upon the exercise of the Option  Awards will be held in
                  trust by David H. Schapiro Legal  Services (the  "Trustee") in
                  accordance with Section 102 and the regulations, rules, orders
                  or procedures  promulgated  thereunder with respect to Israeli
                  residents,

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<PAGE>

                  and with respect to non-Israeli  residents,  the Trustee shall
                  hold such Options,  and any shares issued upon the exercise of
                  any of  such  Options,  in  trust  pursuant  to the  Company's
                  instructions from time to time and according to all applicable
                  law.

         7.2.     102 Trustee Options and any shares received following exercise
                  of 102  Trustee  Options  shall be held by the Trustee for the
                  requisite period prescribed by the Ordinance and the Rules, or
                  such  other  period as may be  required  or  unless  otherwise
                  permitted by the Israeli Income Tax Authorities (the "Required
                  Holding Period").

                  Notwithstanding the aforesaid, an official guideline published
                  by the Israeli  income tax  authorities on March 11, 2003 with
                  respect to  Section  102 of the  Ordinance  and the Rules (the
                  "Interpretation"),   provides   that   the   meaning   of  the
                  restriction on the sale of shares during the Required  Holding
                  Period is that if a Grantee who is an Israeli  resident  sells
                  his/her shares during the Required Holding Period, the sale of
                  the  shares  will be taxed  in  accordance  with the  relevant
                  provisions  of  Section  102 of the  Ordinance  and the  Rules
                  regarding  a  breach  of the  terms  of the  Required  Holding
                  Period;  Namely,  a sale of shares during the Required Holding
                  Period will be taxed as regular  employment income (and not at
                  the reduced capital gains tax rate, if applicable) and will be
                  subject to Israeli National Insurance and Health tax.

                  102 Trustee  Options,  shares  issuable  upon  exercise of 102
                  Trustee  Options  or  proceeds  arising  from the sale of such
                  shares may be released to an Israeli  resident Grantee only in
                  compliance  with the Ordinance,  the Rules,  and the terms and
                  conditions  of the Trust  Agreement  entered  into between the
                  Company and the Trustee,  including  without  derogation,  the
                  withholding   of  any  applicable  tax  due  pursuant  to  the
                  Ordinance and Rules.

         7.3.     The Trustee and each Grantee shall comply with the  applicable
                  laws and the  terms  and  conditions  of the  Trust  Agreement
                  entered into between the Company and the Trustee.

         7.4.     In the  event  that the  Company  issues  securities  as bonus
                  shares  (minyot  hatavah)  on  shares  which  derive  from 102
                  Trustee  Options,  such bonus  shares shall also be subject to
                  the provisions of this Section and the Required Holding Period
                  for such bonus shares shall be measured from the  commencement
                  of the Required Holding Period for the 102 Trustee Option from
                  which the bonus shares were issued.

         7.5.     The  Trustee  shall not use the voting  rights  vested in such
                  shares  issuable  upon  exercise of  Options,  except in cases
                  when,  at  his  discretion  and  after   consulting  with  the
                  Committee, the Trustee believes that the said rights should be
                  exercised  for the  protection  of the  Grantees as a minority
                  among the Company's shareholders.

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<PAGE>

         7.6.     The Company  shall be  entitled  to replace  the Trustee  with
                  another  appointee  from  time to time and  shall  notify  the
                  Grantees of such replacement.

8.       RESERVED SHARES:
         The Company has reserved  2,780,420  authorized  but unissued  Ordinary
         Shares  (nominal  value NIS 1.00 per share) for  purposes  of the Plan,
         subject to adjustments as provided in Section 13 below. Other than with
         respect  to  grants  to  employees  who at the time of the grant of the
         Option are also serving as members of the Board, if any Options granted
         under the Plan  terminate,  expire or  otherwise  cease to exist,  they
         shall again be available for grant through Option Awards under the Plan
         or under any other incentive plan that the Company may adopt.

9.       OPTION AWARDS:
         9.1.     Option Awards to Israeli  residents may be granted at any time
                  after the Plan has been approved by the Income Tax Authorities
                  as a plan under Section 102, and Option Awards to  non-Israeli
                  residents  may be  granted at any time after the Plan has been
                  approved by the Board of Directors.  The date of grant of each
                  Option  Award  shall be the date of the  Option  Award  letter
                  granted to the Grantee (the "Date of Grant").  Notwithstanding
                  the aforesaid,  102 Trustee Options may be granted before this
                  Plan has been approved by the Income Tax Authorities as a plan
                  under  Section 102,  but not prior than 30 (thirty)  days from
                  the  filing  of this  Plan with the  Income  Tax  Authorities;
                  however,  in the event  that the Income  Tax  Authorities  may
                  require certain changes to the Plan, these Option Awards shall
                  be subject to these changes.

         9.2.     The  instrument  granting the Option Award shall state,  inter
                  alia, the number of shares covered thereby,  the dates when it
                  may be  exercised,  the option  price and such other terms and
                  conditions as the Committee at its  discretion  may prescribe,
                  provided  that  they are  consistent  with  this Plan and with
                  applicable law.

         9.3.     The Options hereunder will not be listed in any stock exchange
                  and are not transferable  (except to the Grantee's legal heirs
                  or estate).

10.      OPTIONS' EXERCISE PRICES:
         Other than with  respect to  employees  who at the time of the grant of
         the Option are also serving as members of the Board, the purchase price
         in $US of each share will be the closing  sales price of the  Company's
         shares  as  reported  by NASDAQ or the  principal  national  securities
         exchange  upon which the  Company's  shares  are listed or traded  (the
         "Fair Market  Value") for the last market trading day prior to the Date
         of Grant.

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<PAGE>

11.      VESTING AND EXERCISE OF OPTION AWARD:
         11.1.    Option Awards shall become  exercisable (vest) pursuant to the
                  terms under which they were awarded,  subject to the terms and
                  conditions of this Plan, and unless determined  otherwise with
                  respect to Israeli  employees  who at the time of the grant of
                  the  Option are also  serving  as  members  of the  Board,  in
                  accordance with the following  vesting  schedule:  one-quarter
                  (1/4) of the Options  granted in each Option  Award shall vest
                  and  become  exercisable  12  months  after the Date of Grant,
                  one-quarter  (1/4) of the Options granted in each Option Award
                  shall vest and become  exercisable 24 months after the Date of
                  Grant, one-quarter (1/4) of the Options granted in each Option
                  Award shall vest and become  exercisable  36 months  after the
                  Date of Grant, and one-quarter (1/4) of the Options granted in
                  each Option Award shall vest and become  exercisable 48 months
                  after the Date of Grant,  subject to the Grantee's  continuing
                  to be an Employee or a Israeli resident member of the Board of
                  Directors on such dates.

         11.2.    The  consideration to be paid for the shares to be issued upon
                  exercise of an Option,  including the method of payment, shall
                  be determined  by the Company and may consist  entirely of (1)
                  cash, (2) check, or (3) cashless in case of same day sale. The
                  procedure  for  exercise of the Options  shall be published in
                  the Company's  website.  The Company may change the procedures
                  for  exercise  of the  Options  at its  discretion,  by giving
                  notice thereof to the Grantees.

         11.3.    Anything herein to the contrary notwithstanding, if any Option
                  Award, or any part thereof,  has not been exercised within ten
                  (10) years after the Date of Grant (or any shorter  period set
                  forth in the  instrument  granting  such Option  Award),  such
                  Option Award, or such part thereof,  shall terminate,  and all
                  interests and rights of the Grantee in and to the Option Award
                  or such part thereof shall expire.

12.      TERMINATION OF EMPLOYMENT; TERMINATION OF RIGHT TO EXERCISE:

         12.1.    Subject to the  provisions of paragraph  12.2 and 12.3 hereof,
                  unless  determined  otherwise  by the Board of  Directors if a
                  Grantee  should  cease to be  employed  by the Company for any
                  reason,  all of the Grantee's rights which have vested and are
                  exercisable  in respect of all  Option  Awards  granted to the
                  Grantee  under the Plan,  and which are not  exercised  within
                  sixty   (60)  days  after  the  date  of   cessation   of  the
                  employee-employer  relationship,   shall  terminate  upon  the
                  expiration  of  such  sixty-day  period.   Options  which  are
                  unvested  at  the  time  of   termination   of  the  Grantee's
                  employment with the Company will become void and unexercisable
                  at  the  time  of  such  termination.

         12.2.    Notwithstanding paragraph 12.1, in the event the employment of
                  a Grantee is  terminated  by the Company  under  circumstances
                  that entitle the Company (1) not to pay  severance  pay, or to
                  pay only part of the severance pay, pursuant to the provisions
                  of the Severance Pay Law,  5723-1963,  or (2) to terminate the

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<PAGE>

                  Grantee  for Cause as such term is defined  in such  Grantee's
                  employment  agreement,  vested  Options shall lapse and become
                  void  and  unexercisable  on the  last  day  of the  Grantee's
                  employment  with the  Company  or on such date as set forth in
                  the Grantee's employment  agreement.

         12.3.    Anything herein to the contrary notwithstanding,  if a Grantee
                  should die, or become unable to continue to be employed by the
                  Company  by  reason  of  becoming  incapacitated  while in the
                  employ of the  Company  due to an  accident,  illness or other
                  cause approved by the Committee, or if a Grantee should retire
                  at the legal  retirement  age, vested Options can be exercised
                  by   the   Grantee   or  the   Grantee's   estate   or   legal
                  representative,  as the case may be, within one (1) year after
                  the  Grantee's  last  day  of  employment  with  the  Company.
                  Thereafter,  such  Options  shall  lapse and  become  void and
                  unexercisable.  In the case of an ISO, if such  disability  is
                  not a "disability" as such term is defined in Section 22(e)(3)
                  of the Code,  such ISO shall be treated for tax purposes as an
                  NSO on the  day  three  months  and  one  day  following  such
                  termination.

13.      ADJUSTMENTS:

         13.1.    In the event that the Company  shall issue any of its Ordinary
                  Shares or other  securities as bonus shares  (minyot  hatavah)
                  upon or with  respect to any shares which shall at the time be
                  subject to a right of  purchase by a Grantee  hereunder,  each
                  Grantee  upon  exercising  such  right  shall be  entitled  to
                  receive (for the purchase  price payable upon such  exercise),
                  the shares as to which he is  exercising  such  right and,  in
                  addition  thereto  (at no  additional  cost),  such  number of
                  shares of the class or  classes  in which  such  bonus  shares
                  (stock  dividend)  were  declared,  as the Grantee  would have
                  received  had he been the  holder of the shares as to which he
                  is  exercising  his right at all times between the date of the
                  granting  of such  right  and the  date  of its  exercise.  No
                  fractional  shares  will be issued  under  this  Section.  All
                  resulting  fractional shares may be aggregated and sold by the
                  Company,  who will be  entitled  to the  proceeds  of the sale
                  thereof.

         13.2.    If  securities  of any  kind  are  offered  to  the  Company's
                  shareholders by means of a rights offering, the exercise price
                  of the Options  will not be adjusted  but the number of shares
                  into which the Options are exercisable  ("Underlying  Shares")
                  will be increased to take into account the element of economic
                  benefit of the rights  issue  ("markeev  hahatavah"),  as such
                  element is  calculated  by the Tel-Aviv  Stock  Exchange  (the
                  "TASE") in accordance with its rules.

         13.3.    If the Company  consolidates  its  Ordinary  Shares,  NIS 1.00
                  nominal value,  into shares having a larger nominal value,  or
                  if it  splits  them into a larger  number  of shares  having a
                  lesser  nominal  value,  then the number of Underlying  Shares
                  that  is  allotted  due  to  the  Options'  exercise  will  be
                  decreased  or  increased,  as the case may be,  after  such an
                  action.

         13.4.    In any  event in  which  the  execution  of an  adjustment  is
                  actually   required

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<PAGE>

                  as detailed in this Section 13, the Committee is authorized to
                  implement  the actual  adjustment  and to execute the required
                  calculations,  all subject to the  principles  in this Section
                  13.

14.      CONTINUANCE OF EMPLOYMENT:
         Neither  the  Plan  nor  the  Option  Award  letter  shall  impose  any
         obligation on the Company or a  Subsidiary,  to continue any Grantee in
         its employ or as a member of its Board of Directors, and nothing in the
         Plan or in any Option  Award  pursuant  thereto  shall  confer upon any
         Grantee any right to continue in the employ or as a member of the Board
         of Directors of the Company or a  Subsidiary,  or restrict the right of
         the Company or a Subsidiary,  to terminate such  employment or position
         as a member of its Board of Directors at any time.

15.      GOVERNING LAW:
         The  Plan  and  all  instruments  issued  hereunder  or  in  connection
         therewith,  shall be governed by, and  interpreted in accordance  with,
         the laws of the State of Israel.

16.      APPLICATION OF FUNDS:
         The proceeds  received by the Company from the sale of shares  pursuant
         to  Option  Awards  granted  under  the Plan  will be used for  general
         corporate purposes of the Company or any Subsidiary.

17.      TAX CONSEQUENCES:

         17.1.    Any tax consequences arising from the grant or exercise of any
                  Option Award,  from the payment for shares covered  thereby or
                  from any other  event or act (of the  Company or the  Grantee)
                  hereunder, and commissions and other expenses relating thereto
                  shall be borne solely by the Grantee. Furthermore, the Grantee
                  shall  agree  to  indemnify  the  Company  and/or  any  of its
                  Subsidiaries and/or the Trustee and hold them harmless against
                  and from any and all liability for any such tax or interest or
                  penalty thereon,  including  without  limitation,  liabilities
                  relating to the  necessity to withhold,  or to have  withheld,
                  any such tax from any payment made to the Grantee. The Company
                  and/or any of its Subsidiaries and/or the Trustee may withhold
                  any taxes,  expenses and commissions  from the exercise of the
                  Options and/or the sale of the underlying shares.

         17.2.    Before any 102 Trustee  Options are granted,  the Grantee will
                  confirm  in  writing  that  he/she  (1)  understands  that the
                  Options are granted  pursuant to a Plan under Section 102, (2)
                  is aware which  taxation  track applies to the Options and (3)
                  will undertake that he/she will not exercise the Options prior
                  to the end of the Required  Holding  Period  unless  otherwise
                  permitted as set forth in Section 7.2 above.

                                       7
<PAGE>

18.      MISCELLANEOUS

         18.1.    MAINTAINING  REGISTERED  CAPITAL:  The Company will maintain a
                  sufficient  quantity  of  Ordinary  Shares,  NIS 1.00  nominal
                  value,  in its  registered  capital to ensure the execution of
                  the exercise right  hereunder,  and if necessary it will cause
                  its registered capital to be increased.

         18.2.    SHARE EXCHANGE TRANSACTION: In the event that the Company is a
                  party to any agreement or arrangement  for  exchanging  shares
                  (such  as  a  merger  or  reorganization)  (hereinafter,   the
                  "Exchange Transaction"), in which the holders of the Company's
                  ordinary  shares are offered the opportunity to exchange their
                  shares  for  the  securities  of any  other  corporation,  the
                  Company  will  cause  such  other  corporation  to allot  such
                  securities  as were  offered to its ordinary  shareholders  as
                  aforesaid to any Grantee who exercises  his/her options during
                  the exercise period and subject to the exercise conditions, as
                  if that Grantee was the holder of the Underlying Shares on the
                  determining   date  for   purposes   of  the   said   Exchange
                  Transaction.

         18.3.    VOLUNTARY   LIQUIDATION:   In  the  event  of  a  decision  to
                  voluntarily liquidate the Company, each Grantee will be deemed
                  to have  used  his  exercise  right  immediately  prior to the
                  decision having been taken, without having to pay the exercise
                  price.  In this  event,  the  Grantee  will be  entitled  to a
                  payment  which is equal to the amount that he would receive in
                  liquidation   if  he  were  a  holder  of  Underlying   Shares
                  immediately  prior  to the  decision  to  liquidate,  less the
                  exercise price.

         18.4.    CHANGES IN THE OPTIONS' CONDITIONS:  The Committee is entitled
                  to change the  Options'  provisions  from time to time for the
                  Grantees'  benefit (subject to Section 102),  without the need
                  to obtain the consent of the  Grantees.  In  addition,  to the
                  extent  that   during  the  period  of  this  plan,   new  tax
                  legislation  applicable to employees' option plans enters into
                  force,  the Committee may introduce  changes to this plan with
                  respect to options hereunder not yet granted until the date of
                  the change, as well as changes to the terms of Options already
                  granted  hereunder until the date of the change, to the extent
                  considered desirable by the Committee in order to benefit from
                  such new tax laws,  provided  that  with  respect  to  Options
                  already granted, the Committee will not introduce changes that
                  may in certain circumstances  prejudice the Grantees,  without
                  their  consent.

         Notice of any changes to the Options'  terms will be given  promptly to
         the Trustee.

19.      AMENDMENT AND TERMINATION OF THE PLAN

         The Plan was adopted by the Board of  Directors  of the Company on June
         23, 2003 and approved by the Company's  shareholders on ___________ .No
         ISO granted  under the Plan shall become  exercisable  unless and until
         the Plan shall have been  approved by the  Company's  shareholders.  If
         such  shareholder  approval is not obtained  within 12 (twelve)  months
         after the  effective  date of the Plan, no Options  previously  granted
         under the Plan  shall be deemed to be ISOs and no ISOs shall be granted
         thereafter. The Board may, at any time and from time to

                                       8
<PAGE>

         time, terminate, alter, adjust or amend the Plan in any respect, except
         that if at any time the approval of the  shareholders of the Company is
         required under Section 422 of the Code or any successor  provision with
         respect  to  ISOs,  the  Board  may not  effect  such  modification  or
         amendment  without such approval.  The Plan shall become effective upon
         its adoption by the Board,  and it shall remain in effect for a term of
         ten (10) years after its adoption by the Board, or the date the Plan is
         approved by the stockholders, whichever is earlier.

                                       9

<PAGE>

RE: GRANT OF OPTIONS  - 2003/1 PLAN

Dear :   ________

         We are  pleased to grant you  options  ("Options")  to  purchase  up to
__________ Ordinary Shares,  nominal value NIS 1.00 each, of Tower Semiconductor
Ltd. (the  "Company"),  pursuant to the Employee Share Option Plan 2003/1 of the
Company, (the "Plan"), as of __________ (the "Date of Grant").

         The  Plan is a Plan  under  Section  102 of the  Income  Tax  Ordinance
("Section 102") and the United States Internal Revenue Code of 1986, as amended,
and the grant and issuance of Options  pursuant to this letter is subject to the
receipt of all the approvals  required under applicable law. The Options will be
issued to David H. Schapiro, Legal Services Esq. (the "Trustee").

         The exercise  price of the Options  shall be $________  per share.  The
terms and conditions set forth in this letter are subject to and supplemented by
the terms and  conditions  set forth in the Plan posted on our website  attached
hereto.  You are urged to review the Plan and shall be deemed to be fully  aware
of all the terms and conditions  governing the Options set forth in the Plan. By
your signature  below,  you agree to be bound by the terms and conditions of the
Plan.

         The Options  pursuant to this letter will be issued once you sign:  (I)
this letter, (II) the attached Employee's Declaration,  and (III) any other form
which is  required  under  Section  102 and which will be provided to you by the
Company,  and return them to the  Company.  The forms  referred to above must be
SENT to the Human  Resources  Manager only, no later than ________ on 15:00.  No
options  will be granted to you if the forms are not  returned by such date.  If
you are unable to return the forms by such date,  you may  contact the CFO or VP
Human Resources of the Company,  who is authorized,  at his/her  discretion,  to
extend such date, but in any event no later than ________.

         The issuance of the Options is subject to the main terms and conditions
set out below.  The full terms and  conditions of the Options are set out in the
Plan.

1.       ISSUANCE OF OPTIONS.
         The Options are hereby issued to the Trustee for your benefit,  subject
         to the terms and conditions hereunder.

         The  Options  will not be  listed  in any  stock  exchange  and are not
         transferable (except to your legal heirs or estate).

2.       VESTING; PERIOD OF EXERCISE.

         2.1.     Subject  to the  terms  and  conditions  of the  Plan and this
                  letter,  the Options  granted  pursuant  to this letter  shall
                  become  exercisable  (vest) in  accordance  with the following
                  schedule:

                                       10
<PAGE>

         (a)  ________  of the  Options  shall  vest 12 months  from the Date of
         Grant;
         (b)  ________  of the  Options  shall  vest 24 months  from the Date of
         Grant; and
         (c)  ________  of the  Options  shall  vest 36 months  from the Date of
         Grant; and.
         (d)  ________  of the  Options  shall  vest 48 months  from the Date of
         Grant;

2.2.     The above Options will vest and become  exercisable only if on the date
         of vesting you are still employed by the Company.

2.3.     Vested Options may be exercised in whole or in part, at any time within
         a period  of ten (10)  years  from  the  Date of Grant  (the  "Exercise
         Period").  Any Option not  exercised  within the Exercise  Period shall
         lapse and become void and unexercisable.

2.4.     Options  which  are  unvested  at  the  time  of  termination  of  your
         employment with the Company will become void and  unexercisable  at the
         time of such  termination.  In addition,  if your  employment  with the
         Company  is  terminated  voluntarily  by  you or is  terminated  by the
         Company for any reason,  vested  Options can be exercised by you within
         sixty  (60) days after your last day of  employment  with the  Company.
         Thereafter, such options shall lapse and become void and unexercisable.

2.5.     The procedure for exercise of the Options shall be as it appears on the
         web-site of the Company.  However, the Company may change the procedure
         for exercise of the Options at its discretion.  The Company will notify
         you of any changes in the procedure.

3.       NOTICES.
         All notices,  consents and other  communications  under this  Agreement
         shall be sent in  writing  and shall be deemed to have been  given when
         (a)  delivered by hand,  (b) mailed by certified  or  registered  mail,
         return  receipt  requested  or express  delivery  service,  or (c) when
         received by the addressee,  if sent by Express Mail, Federal Express or
         other express  service,  in each case to the appropriate  addresses set
         forth below (or to such other  addresses as a party may designate as to
         itself by notice to the other parties).

         (a) If to you, at your address listed beneath your signature below;
         (b) If to the Company: Human Resources Department, Tower Semiconductor,
         P.O. Box 619, Migdal Ha'emek, Israel;
         (c)    If    with    respect    to    Option    exercise    procedures:
         BENEFIT@MYBENEFIT.CO.IL or facsimile no.: 09-766-5080.

4.       NO WAIVER.
         The delay or failure on the part of any party hereto to insist,  in any
         one instance or more,  upon strict  performance  of any of the terms or

                                       11
<PAGE>

         conditions  of this  Agreement,  or to exercise  any right or privilege
         herein  conferred shall not be construed as a waiver of any such terms,
         conditions, rights or privileges but the same shall continue and remain
         in full force and effect.

                                                Sincerely,

                                                Tower Semiconductor Limited

Name of Employee: ___________                   Date: _____________

Employee signature: _____________________

Employee ID number: ___________________

Employee address:   _____________________

                                       12
<PAGE>

EMPLOYEE'S DECLARATION

1.       I, the  undersigned,  confirm that the  contents of this letter,  dated
         ____________ are acceptable and agreed to by me.

2.       All taxes,  commissions  and other  expenses  and  payments  payable in
         connection  with the grant of the Options,  the exercise  thereof,  the
         sale of the shares  purchased by way of exercise of the Options (to the
         extent  payable)  and/or  the  transfer  of funds  (including  currency
         conversions) will be borne by me. I will promptly indemnify the Company
         in the event it makes any of such payments.

3.       I acknowledge  and agree that in the event that bonus shares are issued
         by the Company in respect of the shares  granted to me pursuant to this
         letter,  such bonus shares shall be  transferred  by the Company to the
         Trustee, and the terms and provisions of the Income Tax Rules mentioned
         above  shall  apply  to  the  bonus  shares,  as  shall  the  Trustee's
         undertakings under the Agreement between the Trustee and the Company.

4.       Without derogating from the former  provisions,  I acknowledge that the
         ultimate   liability  for  income  tax,   social   insurance  or  other
         tax-related  withholding in connection  with this grant or its exercise
         is my  responsibility.  I  specifically  acknowledge  that  any and all
         applicable laws and regulations in Israel pertaining to the granting of
         options  including  but not  limited  to the  provisions  set  forth in
         Section  102 of the  Income  Tax  Ordinance  [New  Version] - 1961 (the
         "Ordinance")  and  any  rules  promulgated   thereunder  including  any
         amendment  thereto,  any  interpretation  published  by the Israeli tax
         authorities   in   their   official   guidelines   and   any   judicial
         interpretation of the Israeli courts,  shall each apply with respect to
         my Options and may affect the terms of my Options.  Any  exercise of an
         Option and sale of shares received upon the exercise of my Options (the
         "Shares"),  which  deviates  from the rules set forth in Section 102 of
         the Ordinance or in  regulations  promulgated  thereunder may result in
         adverse tax consequences for me. I further acknowledge that each of the
         Company,  brokers effecting transactions relating to my Options and the
         Trustee (as defined  below) is under no  obligation  to inform me as to
         whether a particular transaction I may consider effecting complies with
         the rules set forth in Section 102 of the  Ordinance or in  regulations
         promulgated thereunder. I further acknowledge that the Company has not,
         nor does it intend  to,  provide  tax  advice  with  respect to the tax
         ramifications  of an Option  grant under the laws of any  jurisdiction,
         including  Section  102  of the  Ordinance  or  any  Rules  promulgated
         thereunder, and that I am urged to seek my own personal tax advice.

5.       I  acknowledge  that a trustee (the  "Trustee")  has been  appointed to
         administer my Options in  accordance  with Section 102 of the Ordinance
         and the Income Tax Rules (Tax  Benefits  Regarding the Grant of Options
         to Employees), 2003 (the "Rules") and pursuant to an agreement with the
         Trustee that may be amended from time to time (the "Trust  Agreement").
         In  accordance  with the terms of this  Option  Agreement,  the Company

                                       13
<PAGE>

         and/or  the  Trustee  are  responsible,  among  other  things,  to: (a)
         withhold and pay any  applicable  taxes owed to the tax  authorities in
         Israel  in  connection  with my  Options,  including  as a result of an
         exercise of my Options and sale of the Shares by me, prior to releasing
         any funds owed to me, (b) provide the tax authorities in Israel with an
         annual report in accordance  with the Rules and (c) provide the Israeli
         tax authorities  with a report regarding the grant of Options under the
         Plan,  within ninety (90) days from the Grant Date in  accordance  with
         the  Rules.  Any fees  associated  with the  exercise  of my Options as
         specified  in the  Trust  Agreement  will be  borne  solely  by me.  In
         accordance  with the approval  granted by the Israel Tax authorities in
         connection  with this  Plan,  certain of the  functions  related to the
         administration of my options may be performed by the Company.

6.       In accepting this grant, I acknowledge that unless otherwise  permitted
         by the Income Tax Authorities, the Rules as of the Option Date prohibit
         me from  selling  Shares  issued upon  exercise of my Options  during a
         period of twenty-four  months from the end of the tax year in which the
         grant  took  place in the event  that my  Options  are  subject  to the
         "capital  gains track" as set forth in Section  102(b)(2) (the "Capital
         Gains Track") of the Ordinance (the "Capital Gains Track"), or during a
         period of twelve months from the end of the tax year in which the grant
         took place in the event that my Options are subject to the  "employment
         income track" as set forth in Section  102(b)(1) of the Ordinance  (the
         "Required  Holding Period").  Notwithstanding  the above, if I elect to
         sell my Shares during the Required Holding Period, I hereby acknowledge
         that  the sale of the  Shares  will be  taxed  in  accordance  with the
         relevant  provisions  of  Section  102 of the  Ordinance  and the Rules
         regarding a breach of the terms of the Required Holding Period. For the
         avoidance  of doubt,  in the event that my Options  are  subject to the
         "capital gains track",  a sale of the shares issued upon exercise of my
         Options  during the  Required  Holding  Period will forfeit my right to
         receive the tax  benefits of the "capital  gains  track" under  Section
         102(b)(2) of the Ordinance and the income  derived from the exercise of
         the  Options  and the  sale of the  Shares  will be  taxed  as  regular
         employment  income (and not at the reduced  capital  gains tax rate, if
         applicable)  and will be subject to National  Insurance and Health tax.

7.       I am aware that: (i) the Company intends to issue additional shares and
         options in the  future to  various  entities  and  individuals,  as the
         Company in its sole discretion  shall  determine;  and (ii) the Company
         may increase its share  capital by new  securities in such amount as it
         finds  expedient;  and I  hereby  waive  any  claim I might or may have
         regarding such issuance or increase.

8.       I am aware that pursuant to Section  102(b)(3) if my Options are issued
         on the  Capital  Gains  Track  with an  exercise  price  lower than the
         average  closing  price  of the  Company's  shares  on the 30  (thirty)
         trading  days  preceding  the  issuance of the  Options,  a part of any
         benefit  ultimately  derived  from the  exercise of the Options and the
         sale of the shares issued upon exercise of my Options, up to the amount
         equivalent to the  difference  between  these prices,  will be taxed as
         regular employment income and not at the reduced capital gains tax rate
         and will be subject to National Insurance and Health tax.

                                       14
<PAGE>

9.       I hereby  consent to the  transfer of  information  that the Company is
         required to report to the tax authorities  and to the Trustee  relating
         to the Options in accordance  with the provisions of Section 102 of the
         Ordinance and the Rules.

Name of Employee: ___________                    Signature: ___________

I.D. Number: _______________                     Date: _______________

                                       15

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