Document:

Exhibit 10.2

         

         

        Mizrahi Tefahot Bank Ltd.

         

        SECURED DEBENTURE

         

        Made this 23rd day of October 2009

         

        By Ophthalmic Imaging Systems, a California corporation, of 221 Lathrop Way, Suite I, Sacramento, CA 95815, USA (hereinafter referred to as “the Company” or “the Client”)

         

        In favour of Mizrahi Tefahot Bank Ltd (hereinafter referred to as the “Bank”) in accordance with the Company’s bylaws and articles of incorporation and all the other provisions that grant the Company power in such respect and in accordance with a resolution of the Company’s board of directors of July 20th, 2009.

         

        Whereas the Company has obtained and from time to time will obtain from the Bank credit, documentary credit, various loans, current and other account overdrafts, indemnities, bonds and guarantees for the Company or for others at the Company’s request, the discounting of bills, the grant of various banking facilities and extensions and other miscellaneous banking services (hereinafter jointly and
        severally referred to as the “Banking Services”) on such terms as have been and/or are in future from time to time agreed in respect of each banking service.

         

        Whereas it has been agreed between the Company and the Bank that the Company will, by this Debenture, secure all its debts and liabilities to the Bank of every type and kind whatsoever, whether in Israeli currency or in any foreign currency whatsoever, as set out below, in addition to all the collateral that has been and/or is in future given to the Bank.

        Now therefore this Debenture witnesseth as follows - 

         

        
            	
                        1.

                    	
                        (a)

                    	
                        This Debenture has been issued to secure the full and punctual payment of all the amounts, whether in Israeli shekels or in any foreign currency, now and in future due to the Bank from the Company in any manner or way and for any reason, whether or not the amounts are due from the Client in connection with the provision of the Banking Services, whether
                        due from the Client alone or together with others, whether the Client has already become liable for them or becomes liable for them in the future, as debtor and/or guarantor and/or otherwise (including the Client’s liability in accordance with bills that have been or are in future delivered to the Bank either by the Client or by third parties for discounting or as security and/or 

                    

        

         

         

        
            1
        

        
            

        

        

        
            	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        pursuant to any other liability of the Client to the Bank), that are now and/or in future due, payable prior to or after realisation of the collateral hereby given, absolutely or contingently due, directly or indirectly due, due pursuant to the Client’s original obligation or formulated in a court judgment or otherwise -

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        * up to the sum of $ 1,500,000 (One and a half million Dollars) 

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        plus interest (as calculated in the Client's account in the Bank beginning on the signing date on the Secured Debenture], commissions and all expenses whatsoever, including the costs of realisation, advocates’ professional fees, insurance fees, stamp duty and other payments pursuant to this Debenture, with the addition of linkage of any type now or
                        in future due from the Client to the Bank in any way in respect of linked principal and linked interest (all the aforegoing amounts being hereinafter referred to as “the Secured Sums”).

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (b)

                    	
                        Secured Sums that are now or in future due to the Bank from the Client in any foreign currency shall be deemed secured by this Debenture only insofar as, in respect of the transaction pursuant whereto they are due, an appropriate permit from the competent authorities in Israel is given in advance or after the event, so long as such a permit is legally
                        necessary.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        2.

                    	
                        The Client hereby undertakes to pay the Bank every one of the Secured Sums:

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (a)

                    	
                        on its agreed due date, if it has been agreed between the Bank and the Client that the particular amount is payable on a particular date;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (b)

                    	
                        at the end of seven days from the date of the Bank’s sending its first written demand to the Client, if a due date has not been agreed as provided in paragraph (a) above.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        3.

                    	
                        (a)

                    	
                        The Bank may decline to accept accelerated payment of the Secured Sums or any of them prior to their due date.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        The Client or anyone whose right might be impaired by the grant of this Debenture or its realisation shall have no right pursuant to section 13(b) of the Pledges Law, 5727-1967 or any other statute.

                    
	
                         

                    	
                         

                    	
                         

                    

        

         

         

        
            2
        

        
            

        

        

        
            	
                         

                    	
                        (b)

                    	
                        Notwithstanding the above said, the Bank agrees that the Client may do early repayments of the Loan subject to all following conditions (together):

                    
	
                         

                    	
                         

                    	
                        (i) The Client gives the Bank a 30 days notice prior to each early repayment.

                    
	
                         

                    	
                         

                    	
                        (ii) The repayment date will be only in the interest rate charging date as specified in the Loan repayment schedule.

                    
	
                         

                    	
                         

                    	
                        (iii) The repayment amount will not be less than $250,000.

                    
	
                         

                    	
                         

                    	
                        In that case the Bank will not charge the Client any interest beyond the actual day.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        4.

                    	
                        (a)

                    	
                        The Bank may compute interest on the Secured Sums at such rate as has been or is in future from time to time agreed between it and the Client. In cases in which the interest rate has not been agreed, the Bank may fix the interest rate and give notice thereof to the Client. The Client shall be charged such interest rates as aforesaid and the Bank may add
                        them to principal at the end of each quarter or at the end of any other period, as determined by it.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (b)

                    	
                        In the event of default in payment of all or any of the Secured Sums, they shall bear default interest at the rate agreed upon in the agreement for the provision of the Banking Services. In the absence of a provision with regard to default interest in those agreements, the Secured Sums shall bear interest at the maximum rate prevailing at the Bank in
                        respect of unauthorised withdrawals and defaults on an approved overdraft account, but not less than 2% more than the interest rate fixed in the agreement for the provision of any banking service.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (c)

                    	
                        In the event that the Bank becomes entitled to realise the collateral under this Debenture it may increase the interest rates of the Secured Sums to the maximum rate for the time being prevailing at the Bank in respect of unauthorised withdrawals and defaults on an approved overdraft account.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        5.

                    	
                        To secure the full and punctual discharge of all the Secured Sums, the Company hereby grants to the Bank and its successors:

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (a)

                    	
                        a first charge and security interest over the whole enterprise and all the equipment, assets, monies, general intangibles, property and rights, including revenue therefrom, of every type whatsoever without exception that the Company now or in future at any time has in any way whatsoever, including its insurance rights in respect thereof, and every right
                        to 

                    

        

         

         

        
            3
        

        
            

        

        

        
            	
                         

                    	
                         

                    	
                        compensation or indemnity that the Company in future has against any third party by reason of the loss, damage or expropriation of its property or any of it. Without derogating from the aforesaid, the charge shall include any and all inventory of the Company, wherever located, including any and all raw materials, work-in-progress and finished goods and
                        any and all tangible personal assets and properties of the Company, wherever located, including (without limitation) any and all accessions, accessories, additions, deposit accounts, equipment, fixtures, furnishings, goods, inventory, investment property, machinery, materials, parts, proceeds, replacements, supplies, tools and vehicles, whether or not located upon or affixed to any of the foregoing (hereinafter referred to as the “Charged Assets”);
                        and

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (b)

                    	
                        a first ranking fixed charge, pledge and security interest over the Company’s goodwill, as currently and at any time in future existing (hereinafter referred to as the “Charged Goodwill”);

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (c)

                    	
                        A first charge and security interest over any and all accounts receivable of the Company, that the Company now or in the future has in any way whatsoever, which shall include all accounts and other rights to receive payments for goods and other products sold or leased or for services rendered, whether or not earned by performance, recognized by the
                        referenced person or recorded on its books and records, and irrespective of whether any may be characterised as accounts, chattel paper, choses-in-action, contract rights, general intangibles, instruments, invoices, notes, payment intangibles or otherwise in any document, by any person or under any applicable law; and all proceeds thereof;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (d)

                    	
                        a first charge and security interest over all the rights, including intellectual property rights, of the Company as set forth in Appendix A (hereinafter referred to as the “Charged Intellectual Property Rights”).

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (e)

                    	
                        a fixed charge, pledge and security interest over the marine or air bills of lading, documents of title in respect of goods, warehousing certificates, delivery notes, goods, orders, documentary letters of credit, postal receipts or other documents that are customary in international trade and attest to title to goods or merchandise (hereinafter referred
                        to as “the documents”), that the Company now or in the future has in any way whatsoever, including all the insurance rights whatsoever against the Israeli Foreign Trade Risks Corporation Ltd or any other insurance company and every 

                    

        

         

         

        
            4
        

        
            

        

        

        
            	
                         

                    	
                         

                    	
                        right to compensation or indemnity that the Company now or in future has against third parties by reason of loss, damage or expropriation of the goods or merchandise. On their being given to the Bank as aforesaid they shall be deemed subject to a first ranking fixed charge, pledge and security interest in favour of the Bank in accordance with the terms
                        and conditions of this Debenture;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (f)

                    	
                        a fixed charge, pledge and security interest over all those securities, documents and bills of others, that the Company now or in the future has in any way whatsoever (hereinafter referred to as “the Charged Documents”). The Bank shall be relieved of having to do any act whatsoever in connection with the Charged Documents and shall not be
                        liable for any damage occasioned in connection therewith, and the Company undertakes to indemnify the Bank in the event that a claim is made against the Bank by others in respect of such damage. The Company hereby waives in advance any pleas of prescription in respect of the Charged Documents;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (g)

                    	
                        the “Charged Assets”, the “Charged Goodwill”, the “Charged Intellectual Property Rights”, the “Documents” and the “Charged Documents”, and every other charge mentioned in this clause is hereinafter referred to as the “Charged Property”.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        6.

                    	
                        The Company hereby warrants as follows:

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (a)

                    	
                        that the Charged Property is not charged or pledged to others or attached in any way, save as set out below:

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (b)

                    	
                        that the Charged Property is owned by it and in its sole possession or in the possession of the Bank;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (c)

                    	
                        that there is no legal, contractual or other restraint or condition governing the transfer, charge or pledge of the Charged Property;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (d)

                    	
                        that it may pledge or charge the Charged Property in any way whatsoever;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (e)

                    	
                        that no assignment of right or other transaction has been made that derogates from the value of the Charged Property;

                    
	
                         

                    	
                         

                    	
                         

                    

        

         

         

        
            5
        

        
            

        

        

        
            	
                         

                    	
                        (f)

                    	
                        that it received the necessary consents and/or waivers (if any) from the shareholders or investors pursuant to the articles of incorporation and bylaws of the Company or the various investment agreements.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (g)

                    	
                        that the Company is the owner and/or holds the rights of use under license or agreement, of all the intellectual property required by the Company for the purpose of its business;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (h)

                    	
                        that to the best of its knowledge, the Company is not currently in breach and there are no proceedings against it in connection with any breach of any intellectual property rights of any third party;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        7.

                    	
                        The Company hereby undertakes to the Bank as follows:

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (a)

                    	
                        to keep the Charged Property in its possession;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (b)

                    	
                        to use and deal with the Charged Property with the greatest of care and to notify the Bank of any damage or fault occurring to it and to repair any damage, defect or fault occurring to the Charged Property by reason of its use or otherwise and to be liable to the Bank for any such breakdown, damage, defect or fault as aforesaid;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (c)

                    	
                        to allow the Bank’s representative at any time to attend and examine the condition of the Charged Property in situ;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (d)

                    	
                        not, without obtaining the Bank’s prior written consent (which shall not be unreasonably withheld), to sell, lease out, move elsewhere or howsoever deliver up the Charged Property or any of it, save for sales, transfers and leases of business inventory made in the ordinary course of the Company’s business;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (e)

                    	
                        not to sell, lease out, move elsewhere, deliver up or grant to others any right to use the Charged Property without obtaining the Bank’s prior written consent;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (f)

                    	
                        forthwith to notify the Bank of the imposition of an attachment over the Charged Property and/or the Charged Assets and/or any of them and forthwith to notify the attacher of the charge in favour of the Bank and at the Company’s expense forthwith and without delay to take all steps in order to remove the attachment. If the Company does not take
                        such steps as 

                    

        

         

         

        
            6
        

        
            

        

        

        
            	
                         

                    	
                         

                    	
                        aforesaid, the Bank may (but need not) take all steps to remove the attachment, and the Company shall be liable immediately to pay the Bank all the expenses involved therein (including the professional fees of the Bank’s advocates);

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (g)

                    	
                        not howsoever to charge the Charged Property or any of it with rights that are pari passu with or prior or inferior to the Bank’s rights and not to assign any right that the Company has in the Charged Property without obtaining the Bank’s prior written consent (which shall not be unreasonably
                        withheld);

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (h)

                    	
                        to be responsible for the genuineness and accuracy of all signatures, endorsements and particulars on bills, documents and securities that have been and/or are in future given to the Bank as collateral;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (i)

                    	
                        to pay on due date all the taxes, municipal rates, levies and other mandatory payments legally imposed over the Charged Property and to furnish the Bank, on demand, with all the receipts for such payments, and if the Company does not duly make such payments, the Bank may make them at the Company’s expense and charge it the payments, plus expenses
                        and interest at the maximum rate. Those payments are secured by this Debenture;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (j)

                    	
                        to keep books of account and permit the Bank or its representative at any time to examine the books. The Company undertakes to assist the Bank or its representatives and to give them on demand balance sheets, documents and any information required by them, including explanations in connection with the financial and operational state of the Company and/or
                        its business;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (k)

                    	
                        the Company has attached hereto a full list of all its intellectual property and shall submit to the Bank any update or variation to the list that may occur. 

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        8.

                    	
                        Throughout the subsistence of this Debenture, the Company undertakes as follows:

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (a)

                    	
                        deleted;

                    
	
                         

                    	
                         

                    	
                         

                    

        

         

         

        
            7
        

        
            

        

        

        
            	
                         

                    	
                        (b)

                    	
                        not howsoever to pay its shareholders (other than Medivision) any loan or funds that the shareholders have lent or do in future lend to the Company or any funds that they have invested and/or do in future invest in the Company;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (c)

                    	
                        not to give its shareholders any loan or credit whatsoever without the Bank’s written consent (which shall not be unreasonably withheld);

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (d)

                    	
                        to procure that its shareholders (other than Medivision) undertake to the Bank not to demand or claim any such monies as aforesaid from the Company and if for any reason amounts are nevertheless due to them from the Company, to return the said amounts to the Bank for them to be applied in discharge of the said amounts.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        9.

                    	
                        (a)

                    	
                        The Company hereby undertakes at all times to keep the Charged Property insured in its full value against all elementary risks and to transfer to the Bank, to the limit of this Debenture, the rights deriving from the insurance certificates, duly to pay all the insurance fees and to deliver to the Bank all the insurance certificates and the receipts for
                        payment of the insurance fees.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (b)

                    	
                        Without prejudice to the aforegoing and in addition thereto the Company undertakes to give the insurance company through which the Charged Property is insured irrevocable instructions to transfer all monies that are due to the Company pursuant to the Charged Property insurance policy solely to the Bank. The Company further undertakes to provide the Bank
                        with the said insurance company’s undertaking and to notify the Bank of the date of termination of any insurance policies taken out by it at least 30 days prior to their expiration.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (c)

                    	
                        In each of the under-mentioned cases the Bank may, at its sole discretion, insure the Charged Property in the name of the Bank and charge the cost of the insurance fees to the Company’s account:

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        (1)

                    	
                        if the Charged Property is not insured to the satisfaction of the Bank;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        (2)

                    	
                        if within 10 days of the execution of this Debenture the Company does not provide the Bank with insurance certificates in respect of the Charged Property to the Bank’s absolute satisfaction;

                    
	
                         

                    	
                         

                    	
                         

                    

        

         

         

        
            8
        

        
            

        

        

        
            	
                         

                    	
                         

                    	
                        (3)

                    	
                        if 30 days prior to the expiration of the Charged Property insurance the Company does not provide the Bank with Charged Property insurance certificates. In the event that the insurance is arranged by the Bank as aforesaid, the Bank shall not be liable for any fault or defect discovered in connection with the insurance. Amounts that are paid as such
                        expenses and insurance fees as aforesaid are secured pursuant to this Debenture.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (d)

                    	
                        All the rights deriving from such property insurance as aforesaid, including rights under the Property Tax and Compensation Law, 5721-1961 as in force from time to time or in accordance with any other law, whether or not transferred to the Bank as aforesaid, are hereby made subject to a first ranking fixed charge, pledge and security interest in favour
                        of the Bank.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (e)

                    	
                        In connection with the Company’s property insurance it hereby appoints the Bank as its sole attorney in fact and grants it exclusive rights, in the name of the Company, to negotiate, agree to settlements and compromise with and waive and accept funds from insurance companies and apply them in discharge of the Secured Sums. The said power of
                        attorney is irrevocable since third party rights are dependent thereon. The Company shall have no complaints in connection with settlements, waivers and compromises that the Bank makes with insurance companies. The Bank will exercise it's rights only if the company is no longer active or in the event that the Bank is entitled to demand immediate repayment of the Secured Sums.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (f)

                    	
                        The Company undertakes, on the Bank’s first demand, to sign all applications, documents and certificates necessary or desirable for the performance of the Company’s obligations contained in this clause. The Company further undertakes not howsoever to cancel or modify any of the aforegoing insurance conditions without the Bank’s prior
                        written consent.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        10.

                    	
                        (a)

                    	
                        The collateral that has been given to the Bank pursuant to this Debenture is of perpetual character notwithstanding settlement of all or any of the Company’s accounts and it shall remain in force until the Bank confirms in writing that this Debenture is void.

                    
	
                         

                    	
                         

                    	
                         

                    

        

         

         

        
            9
        

        
            

        

        

        
            	
                         

                    	
                        (b)

                    	
                        Should the Bank have been or in future be given collateral or guarantees for payment of the Secured Sums, all the collateral and guarantees shall be independent of each other.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (c)

                    	
                        Should the Bank compromise with or grant forbearance or a concession to the Company, should the Bank alter the Company’s obligations in connection with the Secured Sums or release or waive other collateral or guarantees, the same shall not alter the nature of the collateral created pursuant to this Debenture and all the collateral and obligations
                        of the Company pursuant to this Debenture shall remain in full force and effect.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        11.

                    	
                        The Bank shall have rights of possession, lien and set-off over all the amounts, assets and rights, including securities, currency, gold, bank notes and documents for goods, insurance policies, bills, cheques, obligations, deposits, collateral and the proceeds thereof, that are at the Bank at any time to or for the credit of the Company, including those
                        given for collection, security, safe keeping or otherwise. The Bank may withhold the said assets until full discharge of the Secured Sums or sell them and apply all or any of the proceeds of sale in discharge of the Secured Sums.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        In the event that the amounts that are set off are deposited in foreign currency, the Company hereby grants the Bank authority and instructions to sell the foreign currency balance at the rate obtainable for it by the Bank.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        12.

                    	
                        The Bank may at any time charge any of the Company’s accounts with it with any amount now or in future due to it from the Company and apply any amount that it receives from or for the Company to the credit of such account as it deems fit and transfer any amount standing to the Company’s credit in any account with it to any other account with
                        it as the Bank deems fit.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        13.

                    	
                        Having regard to the fact that the amounts that are now and in future due to the Bank from the Company on account of the Secured Sums can be both in Israeli currency and in foreign currency, it is hereby agreed and declared that the Bank and the receiver, as the case may be, may convert Israeli currency in their possession to foreign currency as
                        necessary for the full or partial discharge of the Secured Sums that are due to the Bank in foreign currency and convert foreign currency in their possession to Israeli currency, at the official rates of exchange existing in Israel at the time when any such conversions are actually made by either of them.

                    
	
                         

                    	
                         

                    	
                         

                    

        

         

         

        
            10
        

        
            

        

        

        
            	
                         

                    	
                        The expression “rate of exchange” means:

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (a)

                    	
                        in respect of the time when there is a restraint by Israeli law in respect of the free use of foreign currency in Israel - the highest amount of Israeli currency that an Israeli resident is required to pay for a unit of the currency of such debt to an entity duly licensed to trade in Israel in foreign currency, together with the bank commission for such
                        transaction;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (b)

                    	
                        in respect of the time when there is no such restraint - the highest price for the purchase of a unit of the currency of such debt existing at the Bank of Israel in respect of bank telegraphic withdrawals on a city for the time being known as one of the financial centres of the state in which the currency of the debt is legal tender or on New York, at
                        the option of the Bank, together with the bank commission for such transaction.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        14.

                    	
                        Without prejudice to the generality of the provisions of this Debenture, the Bank may in any of the under-mentioned cases call for the immediate payment of all or any of the Secured Sums, without prior notice to the Company:

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (a)

                    	
                        if the Client does not discharge to the Bank on the due date or dates any of the Secured Sums due to it;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (b)

                    	
                        if a voluntary winding-up resolution is passed by the Company or if a winding-up order is issued against it by the court or if the court calls a creditors meeting for the purpose of finding an arrangement with them or if the Company’s name has been removed or is about to be removed from any register operated by law;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (c)

                    	
                        if a (provisional or permanent) receiver, receiver and manager or liquidator is appointed over the Company’s assets or any of them;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (d)

                    	
                        if an attachment is imposed over all or any of the Company’s assets or over any of the collateral given by the Company to the Bank or if any act of execution is taken against it;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (e)

                    	
                        if the Company stops paying its debts or carrying on its business;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (f)

                    	
                        if the Company stops all activity or a substantial part of its activity is stopped for two or more months;

                    
	
                         

                    	
                         

                    	
                         

                    

        

         

         

        
            11
        

        
            

        

        

        
            	
                         

                    	
                        (f)

                    	
                        if all or any of the Company’s assets are burned, lost or otherwise damaged;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (g)

                    	
                        if it appears to the Bank, at its absolute discretion, that there has been a change in the authority over the Company, in comparison with the situation existing on the date hereof, by a voluntary share transfer or otherwise, save for the transfer of the authority in good faith to a transferee who holds at least 10% of the company's shares on the date
                        hereof

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (h)

                    	
                        if the Bank, at its absolute discretion, takes the view that a material event has occurred that might impair the Company’s financial capacity;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (k)

                    	
                        if, at the Bank’s absolute discretion and in its exclusive estimation there is a material deterioration in the value of the collateral that has been given to secure payment of the Secured Sums;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (i)

                    	
                        if the Company is required to accelerate the discharge of debts that it owes to other creditors;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (j)

                    	
                        if the Company breaches or does not perform any of its obligations that are contained in this Debenture and/or any agreement and/or instrument and/or contract made in the past and/or future between the Company and the Bank;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (k)

                    	
                        if it transpires that any material warranty of the Company in this Debenture and/or any contract made in the past and/or future between the Company and the Bank is incorrect and/or inaccurate.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (l)

                    	
                        if the Company alters its articles of incorporation or some of them and does not give notice thereof to the Bank within 48 hours;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (m)

                    	
                        if the Company passes a resolution to merge with another company, (other than Medvision) whether as absorbing or target company, as defined in the Companies Law, 5759-1999; and in the opinion of the Bank the matter may adversely affect the ability of the company to repay the credit

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (n)

                    	
                        if any license, consent, approval or registration of any of the intellectual property rights of the Company is denied, becomes void, suspended or is materially prejudiced, and has a material effect on the Company.

                    
	
                         

                    	
                         

                    	
                         

                    

        

         

         

        
            12
        

        
            

        

        

        
            	
                         

                    	
                        (o)

                    	
                        if it appears to the Bank that there has been a material change to the business plan of the company or the type of business activity in which the company engages without the Bank’s prior written consent;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        15.

                    	
                        (a)

                    	
                        In each of the cases set out in the preceding clause, the Bank may take all the steps it deems fit in order to collect all the Secured Sums, realise the collateral in any way that the law permits and exercise all its rights pursuant to this Debenture, including realising the Charged Property, in whole or parts and applying the proceeds thereof in
                        discharge of the Secured Sums, without the Bank having to enforce or realise any other guarantees or collateral that it might have.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (b)

                    	
                        Upon the giving of such notice (if any) as may be required by law, the Bank may, as the Company’s attorney, for which purpose the Company irrevocably appoints the Bank as its attorney, sell the Charged Property and any part of it by auction, public sale, private sale or otherwise, itself or through others and on conditions at the Bank’s
                        absolute discretion, and the Bank may itself or by the court or execution office realise the collateral granted to it pursuant to this Debenture or otherwise by the appointment of a receiver or receiver and manager on behalf of the Bank (and the Company agrees in advance to any person or legal entity that the Bank appoints or proposes as receiver and manager as aforesaid) and amongst his other powers, he may:

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        (1)

                    	
                        take possession of all or any of the Charged Property;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        (2)

                    	
                        manage the Company’s business or take part in its management as he deems fit;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        (3)

                    	
                        sell or let and/or agree to the sale or letting of the Charged Property, in whole or parts, or otherwise transfer it on such conditions as he deems fit;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        (4)

                    	
                        make any other arrangement in respect of all or any of the Charged Property.

                    
	
                         

                    	
                         

                    	
                         

                    

        

         

         

        
            13
        

        
            

        

        

        
            	
                        16.

                    	
                        All income obtained by the receiver and manager from the Charged Property and all proceeds obtained by the Bank and/or the receiver and manager from the sale of the Charged Property or part of it shall be applied:

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (a)

                    	
                        firstly, in discharge of all expenses incurred in connection with collecting the Secured Sums, including the expenses and remuneration of the receiver or receiver and manager at such rate as fixed by the Bank;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (b)

                    	
                        secondly, in discharge of the further amounts that are due to the Bank in consequence of the linkage conditions, the interest, damages, commission and expenses now and in future due to the Bank pursuant to this Debenture;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (c)

                    	
                        thirdly, in discharge of the principal of the Secured Sums, or in any other order of application as prescribed by the Bank.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        17.

                    	
                        In the event that at the time the Charged Property is realised the Secured Sums have not yet fallen due or the Secured Sums are only due to the Bank contingently, the Bank may collect from the proceeds of realisation an amount sufficient to cover the Secured Sums and the amount that it collects shall be charged to the Bank as collateral for them and be
                        retained by the Bank until their discharge.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        18.

                    	
                        Without derogating from the other provisions of this Debenture, no waiver, forbearance, concession, silence or abstinence (hereinafter referred to as “Waiver”) on the part of the Bank in respect of the non-performance or partial or incorrect performance of any of the Company’s obligations pursuant to this Debenture shall be construed as
                        a Waiver by the Bank of any right and it shall only be treated as acquiescence limited to the specific instance in which it was given.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        Any Waiver that the Bank grants to any party to a bill that the Bank holds pursuant to this Debenture shall have no effect whatsoever on the Company’s obligations.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        19.

                    	
                        The Company confirms that the Bank’s books and accounts are acceptable to it, shall be deemed correct and shall serve as conclusive evidence against it of all their particulars, including as regards the computation of the Secured Sums and 

                    

        

         

         

        
            14
        

        
            

        

        

        
            	
                         

                    	
                        the details of the bills and the other collateral and every other matter relating to this Debenture.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        The expression “the Bank’s books” means every statement or copy statement and every loan contract or deed signed by the Company, and the expression “accounts” means every record or copy record, whether entered or copied in handwriting or typewriter or entered or copied by means of printing, duplication or photocopying or by
                        means of any electrical or electronic technical instrument, including microfilm.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        20.

                    	
                        The Bank may at any time, at its discretion, without needing the Company’s consent, transfer to another this Debenture and the rights pursuant hereto, including the collateral, in whole or parts, and any transferee may also transfer the said rights without requiring further consent from the Company. The transfer may be made by endorsement of the
                        Debenture or in such other manner as the Bank deems fit.. The Client will have a first refusal right to such transfer, by repaying the Loan within 10 days of receiving the notice from the Bank in the same terms offered by the potential transferee. The first refusal right will not be granted to the Client in the case that the Bank wishes to transfer the Loan as part of a "pool" of loans to a financial entity.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        21.

                    	
                        The Bank may deposit the collateral that has been or is in future given pursuant to this Debenture or any of it with a bailee at its discretion at the Company’s expense and from time to time replace the bailee, and the Bank may also register all or any of the said collateral with any legally competent authority. The Bank is authorized to file
                        financing statements and otherwise register the charges, pledges and security interests herein granted in any governmental office, and upon request by the Bank, the Company will join in signing any such financing statement or other registration (and hereby irrevocably appoints the Bank as its attorney in fact to execute any such financing or other registration).

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        22.

                    	
                        (a)

                    	
                        The grant of this Debenture is without prejudice to the Bank’s right to collect the Secured Sums otherwise than by realisation of this Debenture.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (b)

                    	
                        The realisation of this Debenture shall be without prejudice to the Bank’s right to collect from the Company the remainder of the Secured Sums that have not been discharged by realisation of the Debenture.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        24.

                    	
                        All expenses in connection with this Debenture, its stamping and registration, the realisation of the collateral (including the professional fees of the Bank’s 

                    

        

         

         

        
            15
        

        
            

        

        

        
            	
                         

                    	
                        advocates) and also insurance, bailment, maintenance and repair of the Charged Property shall be paid by the Company to the Bank on its first demand, plus interest at the maximum rate prevailing at the Bank for the time being on unauthorised withdrawals and defaults on approved overdraft accounts from the date of demand until full discharge. Until their
                        full discharge all the said expenses shall be secured by this Debenture.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        25.

                    	
                        In this Debenture:

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (a)

                    	
                        “Bank” means Mizrahi Tefahot Bank Ltd and each one of its branches existing on the date hereof and/or opened anywhere in the future and also the Bank’s successors and assigns;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (b)

                    	
                        “bills” means promissory notes, bills of exchange, cheques, undertakings, guarantees, collateral, bills of lading, deeds of deposit and all other negotiable instruments;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (c)

                    	
                        the recitals to this Debenture constitute an integral part of it;

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        (d)

                    	
                        26. 

                    	
                         

                    
	
                         

                    	
                        (a)

                    	
                        Any notice posted by the Bank to the Company by registered or ordinary mail at the address specified above, of which the Company shall give the Bank written notice, shall be deemed duly received by the Company within 48 hours of the time the letter containing the notice was posted.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (b)

                    	
                        The Company hereby irrevocably designates, appoints and empowers Mr. Noam Allon in Israel, to receive for and on behalf of the Company service of process issued out of the courts of the State of Israel or by or on behalf of the Bank or in any other manner in any legal action or proceedings arising out of or in connection with this Debenture.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        (c)

                    	
                        If any process agent appointed pursuant to Clause 26(b) (or any successor thereto) shall cease to exist for any reason where process may be served, the company will forthwith appoint another process agent with an office in Israel where process may be served and will forthwith notify the Agent thereof.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        27.

                    	
                        The competent court in California is hereby vested with jurisdiction for the purpose of this Debenture but the courts of the City of Tel-Aviv shall also have 

                    

        

         

         

        
            16
        

        
            

        

        

        
            	
                         

                    	
                        jurisdiction over any dispute arising from or in connection with the existence, the interpretation, the performance, enforcement or the termination of this Debenture.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        28.

                    	
                        This Debenture shall be governed by, and construed in accordance with, the laws of the State of Israel, without regard to its rules on conflicts of laws or choice of law, except to the extent that the perfection or registration of any charge, pledge or security interest hereunder, in respect of any particular Changed Property, is governed by the law of a
                        jurisdiction other than the State of Israel.

                    
	
                         

                    	
                         

                    
	
                        29.

                    	
                        Special conditions: _________________________________________________

                        _________________________________________________________________

                        _________________________________________________________________

                    

        

         

         

         

        AS WITNESS THE HAND OF THE COMPANY

         

         

         

        
            	
                        Ophthalmic Imaging Systems

                    
	
                         

                    
	
                        By:   

                    	/s/ Ariel Shenhar	
                    
	
                         

                    
	
                        Title:

                    	Chief Financial Officer	
                    
	
                         

                    

        

         

         

         

         

        Debenture Ois -

         

        
            17
        

        
            

        

        Appendix A

         

         

        
            	
                        The charge shall also govern all the rights of the Company, inclusive of the intellectual property rights, as currently and at any time in future existing, whether or not they are registered, including where applications for registration have been submitted in respect thereof, as well as:

                    
	
                         

                    	
                         

                    
	
                        (a)

                    	
                        any know-how, inventions, patents, trademarks, models, designs, trade names, copyrights, and technological processes and applications;

                    
	
                         

                    	
                         

                    
	
                        (b)

                    	
                        Internet domain names, licenses, franchise agreements, user rights agreements, drawings, computer software, trade secrets and customer lists;

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        all whether or not the rights of the Company were registered, or whether the aforesaid rights are currently and at any time in future existing.

                    
	
                         

                    	
                         

                    
	
                        In respect of the aforesaid intellectual property rights, or any part thereof, the Company undertakes to ensure that the Company itself, as well as any of its subsidiaries:

                    
	
                         

                    	
                         

                    
	
                        (a)

                    	
                        shall perform all the appropriate registrations and shall pay all the costs and fees necessary to safeguard and protect the intellectual property rights of the Company and/or of its subsidiaries and/or the registration thereof;

                    
	
                         

                    	
                         

                    
	
                        (b)

                    	
                        shall take all steps necessary, including legal action, to prevent any third party from prejudicing these intellectual property rights;

                    
	
                         

                    	
                         

                    
	
                        (c)

                    	
                        shall not sell, transfer, lease or grant a user license, save for any license arrangements with a third party which is not an affiliated party, made during the regular course of business and for fair consideration.

                    

        

         

         

         

         

         

        Debenture Ois -

         

        

        
            18Exhibit 10.3

        

         

         

         

        NEITHER THESE SECURITIES NOR THE SECURITIES FOR WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. SUCH SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED (A) EXCEPT (1) PURSUANT TO AN
        EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER
        APPLICABLE LAWS, OR (B) UNLESS SOLD PURSUANT TO RULE 144 UNDER THE SECURITIES ACT. 

        

        Date: October 23, 2009

        

        To: Mizrahi Tefahot Bank Ltd.

          

          

        WARRANT

        

        To purchase Common stock of

        

        Ophthalmic Imaging Systems

          

        VOID AFTER 24:00 p.m. (prevailing Israel time)

          

        On the last day of the Warrant Period (defined below)

        

        Ophthalmic Imaging Systems, a California corporation (the “Company”), hereby grants to Mizrahi Tefahot Bank Ltd. (the “Holder”), the right to purchase from the Company the number of shares (the “Warrant Shares”) of common stock, no par value (the “Common Stock”), of the Company, specified below,
        subject to the terms and conditions set forth below.

        

        The Warrant Shares shall have the same rights, preferences and privileges attached to the shares of Common Stock the Company.

        

        

        	
                    1.

                	
                    Definitions

                
	 	 	 
	 	
                    For the purpose of this Warrant:

                
	 	 	 
	 	
                    1.1

                	
                    “Alternative Payment” shall mean an amount that the Holder shall be entitled to receive from the Company in consideration of the 

                

        

        

        

        

        
            1
        

        
            

        

        

        	 	 	
                    waiver by the Holder of all or any portion of its rights hereunder in accordance with the provisions of Section 14 below.

                
	 	 	 
	 	
                    1.2

                	
                    “Public Offering” shall mean a primary public offering of shares of Common Stock pursuant to the corresponding securities laws of any other jurisdiction, covering the offering and sale of shares of Common Stock by the Company (other than a registration statement effected solely to implement an employee benefit plan or any other registration
                    statement and/or procedure which does not include an offering of the Company’s shares of Common Stock).

                
	 	 	 
	 	
                    1.3

                	
                    “Liquidity Event” shall mean (a) the sale of all or substantially all of the Company’s property and assets (an “Asset Sale”); or (b) the merger or consolidation of the Company with or into another company (following which more than fifty percent (50%) of the Company’s shares of Common Stock are held by persons
                    who, prior to the said transaction, held, in the aggregate, less than five percent (5%) of the Company’s shares of Common Stock).

                
	 	 	 
	 	
                    1.4

                	
                    “Exit Transaction” shall mean a Public Offering or a Liquidity Event.

                
	 	 	 
	 	
                    1.5

                	
                    “Effective Date” shall mean the date of this Warrant. 

                
	 	 	 
	 	
                    1.6

                	
                    “Exercise Price” shall mean the exercise price of each Warrant Share purchasable hereunder, which will be $1, subject to modification pursuant to the provisions of Section 9.

                
	 	 	 
	 	
                    1.7

                	
                    “Warrant Shares” shall mean 350,000 shares of Common Stock subject to modification pursuant to the provisions of Section 9.

                
	 	 	 
	 	
                    1.8

                	
                    “Loan Facility” shall mean a loan of up to $1,500,000 (One million five hundred thousand dollars) granted by the Holder to the Company, in accordance with those terms agreed upon between the Holder and the Company in the Loan Facility Agreement.

                
	 	 	 
	 	
                    1.9

                	
                    “Loan Facility Agreement” shall mean the Agreement between the Holder and the Company dated July _____, 2009. 

                
	 	 	 
	 	
                    1.10

                	
                    “Warrant Period” shall mean the period for exercise of such warrant, as determined pursuant to Section 3.

                
	 	 	 
	 	
                    1.11

                	
                    “Financial Statements” shall mean the Company’s audited balance sheets and statements of income as of December 31, 2008, certified by the Company’s independent certified public accountants and unaudited balance sheets and statements of income as of March 31, 

                

        

        

        

        

        
            2
        

        
            

        

        

        	 	 	
                    2009, reviewed by the Company’s independent certified public accountants.

                
	 	 	 
	 	
                    1.12

                	
                    “Benefit” shall mean the right to any compensation, benefit, indemnification, reimbursement or adjustment in any form, including, without limitation, by payment of cash or distribution of any assets (including, without limitation, of stock of any kind) as a result of any issuance by the Company of Company’s
                    securities.

                
	 	 	 
	 	
                    1.13

                	
                    “Registered” shall mean that, subject to the provisions of section 5.5 hereinbelow, the Company shall effect its best efforts that the Warrant Shares will, as promptly as is possible after exercise, be registered for trading on the OTC Bulletin Board and freely tradable on such public market. 

                
	 	 	 
	 	
                    1.14

                	
                    “Last Financing” shall mean the investment agreement between the Company and AccelMed, signed June 24, 2009. 

                
	 	 	 
	 	
                    1.15

                	
                    “Articles” shall mean the Certificate of Incorporation of the Company.

                
	 	 	 
	 	
                    1.16

                	
                    “Authorized Issuance” shall mean any issuance of the Company’s shares and/or convertible securities in each of the following events: (i) to a strategic investor who together with its investment in the Company effects a significant transaction with the Company in regards to its business other than a transaction which is primarily of a
                    financial nature; (ii) to employees, consultants or directors of the Company (including, but not limited to, any issuance of shares pursuant to exercise of options granted under the Company’s share option plans) up to 15% of the issued capital; (iii) any exercise of any and/or all of the Company’s current outstanding convertible securities or warrants; (iv) securities issued in connection with any stock split, stock dividend, recapitalization or similar
                    transaction by the Company; and (v) any issuance of Company’s shares and/or convertible securities which the parties to this Warrant agree ad-hoc to include under the definition of an “Authorized Issuance”.

                
	 	 	 
	
                    2.

                	
                    Warrant Period. 

                
	 	 	 
	 	
                    The Warrant may be exercised, in whole or in part, and on one or more occasions, during the period commencing from the Effective Date and ending on the earliest to occur of (i) 3 (three) years following the Effective Date; (ii) 12 (twelve) months after the consummation of an Exit Transaction, provided however, that if the underwriter, in a Public Offering, or the
                    buying party(ies) in the Liquidity Event, require that all outstanding warrants and options of the Company, including this Warrant (but excluding warrants and options granted to employees, directors and consultants of the Company), be exercised prior to or as part of the Public Offering or the Liquidity Event, as the case may be, then the period for exercise of the Warrant shall terminate upon the consummation 

                

        

        

        

        

        
            3
        

        
            

        

        

        	 	
                    of the Public Offering or the Liquidity Event, subject to compliance by the Company with the provisions of Section 4.1. 

                
	 	 	 
	
                    4.

                	
                    Notice of Events. 

                
	 	 	 
	 	
                    4.1

                	
                    In the event that the Company (i) files a prospectus (including draft prospectus) for a Public Offering, or (ii) receives written terms and a bona fide offer for a Liquidity Event, subject to the provisions of any applicable law the Company shall within 7 (seven) days thereof provide written notice of such filing or offer to the Holder (the “Company
                    Notice”) and at least 30 (thirty) days notice prior to the Exit Transaction. If the giving of such notice is barred, and during the period in which the giving of such notice is barred the Warrant would otherwise have expired, then the Warrant will remain in full force and effect for a further period of 30 (thirty) days after the date when such notice may be given. 

                
	 	 	 
	 	
                    4.2

                	
                    Without derogating from the provisions of section 4.1 and in addition thereto, if at any time the Company shall offer for subscription pro rata to the holders of shares any additional shares of any class, other rights or any equity security of any kind, or there shall be any capital reorganization or reclassification of the capital shares of the Company, or
                    consolidation or merger of the Company with, or sale of all or substantially all of its assets to another person or there shall be a voluntary or involuntary dissolution, liquidation or winding-up of the Company, or other event described in Section 9 of this Warrant or classified as an Exit Transaction, then, in any one or more of said cases, subject to the provisions of any applicable law the Company shall give the Holder written notice of the date on which (i) a record
                    shall be taken for such subscription rights or (ii) such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up or Exit Transaction shall take place, as the case may be. Such notice shall also specify the date as of which the holders of record of shares shall participate in such subscription rights, or shall be entitled to exchange their shares for securities or other property deliverable upon such reorganization,
                    reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up or Exit Transaction, as the case may be. Subject to the provisions of any applicable law such written notice shall be given by not later than fourteen (14) days prior to the action in question and by not later than fourteen (14) days prior to the record date in respect thereto. If the giving of such notice is 

                

        

        

        

        

        
            4
        

        
            

        

        

        	 	 	
                    barred, and during the period in which the giving of such notice is barred the Warrant would otherwise have expired, then the Warrant will remain in full force and effect for a further period of 30 (thirty) days after the date when such notice may be given. 

                
	 	 	 
	
                    5.

                	
                    Exercise of Warrant

                
	 	 	 
	 	
                    5.1.

                	
                    Exercise. Subject to the provisions hereof, this Warrant may be exercised in whole or in part, on one or more occasions at any time during the Warrant Period. This Warrant shall be exercised by presentation and surrender hereof to the Company at the principal office of the Company or at such other office or agency as the Company may designate in writing,
                    accompanied by a written notice of exercise in the form attached hereto as Exhibit A and for the purpose of determining the relevant Exercise Price, the Warrant shall be deemed to have been exercised at such time.

                
	 	 	 
	 	
                    5.2.

                	
                    Exercise for Cash. If the Holder, at its sole discretion, elects to make a cash payment for the Warrant Shares, it shall make such payment by not later than fourteen (14) days from giving the Exercise Notice to the Company in an amount equal to the Exercise Price multiplied by the number of Warrant Shares specified in such notice. The Exercise Price for
                    the number of Warrant Shares specified in the notice shall be payable in immediately available funds, in United States Dollars. If at such time, the Company has outstanding lines of credit with the Holder, including without limitation to the Credit Facility, such payment may, in the Holder’s sole discretion, be made by way of conversion of all or any part of such credit lines, including any accrued and unpaid interest (whether than payable or not) and for this purpose,
                    any debt owed by the Company to the Holder, whether due or not, may be declared due and converted, based on the Representative Rate of Exchange published by the Bank of Israel known as of the time of payment.

                
	 	 	 
	 	
                    5.3.

                	
                    Exercise on Net Issuance. The Holder may pay the Exercise Price through a “cashless exercise,” in which event the Company shall issue to the Holder the number of Warrant Shares determined as follows:

                
	 	 	 
	
                	
                	
                    X =

                	Y(A - B)	
                	
                
	A	
                	
                
	
                	
                	
                
	 	
                    Where: X = 

                	
                    the number of Warrant Shares to be issued to the Holder; 

                
	 	 	 
	 	
                    Y = 

                	
                    the number of Warrant Shares to which the Holder is otherwise entitled upon exercise of this Warrant 

                

        

        

        

        

        
            5
        

        
            

        

        

        	 	 	
                    (excluding Warrant Shares already issued under this Warrant);

                
	 	 	 
	 	
                    A =

                	
                    the Fair Market Value of one Warrant Share at the time of exercise; and

                
	 	 	 
	 	
                    B =

                	
                    the Exercise Price.

                
	 	 	 
	 	
                    As used herein, the Fair Market Value of a Warrant Share shall mean one of the following, in descending order of priority:

                
	 	 	 
	 	
                    (i)

                	
                    If the exercise date is a Liquidity Event in which shareholders of the Company receive payment for the transfer of shares held by them, then the highest price at which any such shares are purchased within the framework of the Liquidity Event.

                	 
	 	 	 
	 	
                    (ii)

                	
                    If the exercise date is the date of the closing of a Public Offering, then the public offering price (after deduction of underwriters’ discounts or commissions) in such offering. 

                	 
	 	 	 
	 	
                    (iii)

                	
                    If the Company’s shares that are of the same class as the Warrant Shares are listed on a securities exchange or are quoted on the quoting system on which shares of the Company are registered, then the 30 days average share price prior to the exercise date.

                	 
	 	 	 
	 	
                    (iv)

                	
                    If the Company’s shares are not listed on a securities exchange or are not quoted on the quoting system on which shares of the Company are registered, but are traded in the over-the-counter market, then the mean of the bid and asked prices for the thirty Trading Days immediately prior to (but not including) the exercise date.

                	 
	 	 	 
	 	
                    (v)

                	
                    In any other case, as determined in good faith by the Board of Directors of the Company, provided however that the Holder shall be entitled, at its expense, to demand that the valuation be established by independent auditors who are an internationally recognized auditing firm. 

                	 
	 	 	 
	 	
                    5.4.

                	
                    Partial Exercise, Etc. If this Warrant should be exercised in part only, the Company shall, upon surrender of this Warrant for cancellation, execute and 

                

        

        

        

        

        
            6
        

        
            

        

        

        	 	 	
                    deliver a new Warrant evidencing the rights of the Holder to purchase the balance of the shares purchasable hereunder.

                
	 	 	 
	 	
                    5.5.

                	
                    Issuance of the Warrant Shares. Upon presentation and surrender of the notice of exercise and after the payment of the Exercise Price pursuant to section 5.2, or upon presentation and surrender of the notice of exercise pursuant to section 5.2, as the case may be, the Company shall issue promptly to the Holder the shares to which the Holder is entitled.
                    

                     

                
	
                	
                	
                
	 	 	
                    As of and from the close of business on the date of receipt by the Company of the notice of exercise (and the Exercise Price, if applicable), the Holder shall be deemed to be the Holder of the shares issuable upon such exercise, notwithstanding that the share transfer books of the Company shall then be closed and that certificates representing such shares shall
                    not then be actually delivered to the Holder. The Company shall pay the stamp duty that may be payable in connection with the issuance of the shares and the preparation and delivery of share certificates pursuant to this Section 5 in the name of the Holder. No fractions of shares shall be issued in connection with the exercise of this Warrant and the number of shares shall be rounded to the nearest whole number.

                     

                
	
                	
                	
                
	 	 	
                    All Warrant Shares, when issued, shall be fully paid and non-assessable.

                     

                
	
                	
                	
                
	 	 	
                    In the event the Warrant is exercised in full, the Company, promptly after exercise, will prepare and file with the United Stated Securities and Exchange Commission (the “SEC”) a registration statement on Form S-1 or Form S 3 (or such other form appropriate for such purpose), relating to the resale of the Warrant Shares and will use its best efforts
                    to have such registration statement declared effective by the SEC . In the event of partial exercise, the Holder will be entitled, at such time as the number of Warrant Shares held by it exceeds 50,000 (or less if such exercise is the last exercise to which the Holder is entitled hereunder), to instruct the Company to prepare and file with the SEC a registration statement on Form S-1 or Form S 3 (or such other form appropriate for such purpose), relating to the resale of the
                    such shares and the Company will use its best efforts to have such registration statement declared effective by the SEC as soon as possible. The Holder undertakes to provide the Company, within reasonable periods from the Company’s written request, with any necessary documents and/or any instruments and/or information required from the Holder in order to register the Warrant Shares with the SEC.

                
	 	 	 
	 	
                    5.6.

                	
                    Automatic Exercise. If at the time of expiry of the Warrant Period for any portion of the Warrant, a portion of the Warrant has not been exercised, the Warrant will be deemed to have been exercised in accordance with the provisions of Section 5.3 at the date of expiry of the Warrant Period, unless such exercise would not result in the issuance of any
                    Warrant Shares to the Holder.

                
	 	 	 

        

        

        

        

        
            7
        

        
            

        

        

        	 	 	
                    Notwithstanding the above, the issuance of a certificate representing the Warrant Shares in the name of the Holder shall be conditioned upon the Holder representing to the Company that the representations and warranties set forth in Section 12 of this Warrant are true and correct as of the date of the said exercise, with respect to the Warrant Shares.

                
	 	 	 
	 	
                    5.7.

                	
                    Conditional Exercise. Any purchase of Warrant Shares by the Holder may be made conditional upon the consummation and closing of any Exit Transaction or equity raising event of the Company.

                
	 	 	 
	 	 	
                    Notwithstanding the above, the issuance of a certificate representing the Warrant Shares in the name of the Holder shall be conditioned upon the Holder representing to the Company that the representations and warranties set forth in Section 12 of this Warrant are true and correct as of the date of the said exercise, with respect to the Warrant Shares.

                
	 	 	 
	
                    6.

                	
                    Reservation of Shares: Preservation of Rights of Holder

                
	 	 	 
	 	
                    The Company hereby agrees that at all times it will maintain and reserve, free from preemptive rights, lien or other third party rights, such number of authorized but unissued Warrant Shares so that this Warrant may be exercised without additional authorization of Warrant Shares after giving effect to all other options, warrants, convertible securities and other
                    rights to acquire shares of the Company. The Company further agrees that it will not, by charter amendment or through reorganization, voluntary liquidation, consolidation, merger, dissolution, winding up or sale of assets, or by any other voluntary act, avoid or seek to avoid the observance or performance of any of the covenants, stipulations or conditions to be observed or performed hereunder by the Company.

                
	 	 	 
	
                    7.

                	
                    Representations of the Company

                
	 	 	 
	 	
                    The Company hereby represents and warrants to the Holder that as of the Effective Date:

                
	 	 	 
	 	
                    7.1.

                	
                    This Warrant has been duly authorized and executed by the Company and is a valid and binding obligation of the Company enforceable in accordance with its terms. No measures are required to be taken in order to enable the implementation in full of this Warrant and the exercise in full of all the Holder’s rights other than the issuance by the Company’s
                    board of directors of each of the Warrant Shares upon exercise of the Warrants (whether in full or in part) in accordance with the provisions hereof. Without derogating from the aforesaid, the Company’s Board of Directors has approved the grant of the Warrant and issuance of the Warrant. 

                
	 	 	 

        

        

        

        

        
            8
        

        
            

        

        

        	 	
                    7.2.

                	
                    The Warrant Shares are duly authorized and reserved for issuance by the Company and, when issued in accordance with the terms hereof, will be validly issued, fully paid and nonassessable, not subject to any preemptive rights and free and clear of all debts, liens, encumbrances, taxes, charges, equities, claims, any rights of third parties and any other
                    liabilities, other than any such liability created by the Holder. 

                
	 	 	 
	 	
                    7.3.

                	
                    The execution and delivery of this Warrant, and the issuance of the Warrant Shares upon exercise of this Warrant in accordance with the terms hereof, will not require the approval of the OTC Bulletin Board. Subject to the aforesaid, the execution and delivery of this Warrant are not, and the issuance of the Warrant Shares upon exercise of this Warrant in
                    accordance with the terms hereof will not be inconsistent with the Company’s Certificate of Incorporation, do not and will not contravene any law, governmental rule or regulation, judgment or order applicable to the Company, and, except for consents that have already been obtained by the Company, do not and will not conflict with or contravene any provision of, or constitute a default under, any indenture, mortgage, contract or other instrument of which the Company is
                    a party or by which it is bound or require the consent or approval of, the giving of notice to, the registration with or the taking of any action in respect of or by, any national, state or local government authority or agency or other person, provided that sale of the Warrant Shares freely on the OTC Bulletin Board shall require that they be Registered in accordance with the terms and obligations of the Company herein.

                
	 	 	 
	 	
                    7.4.

                	
                    Without derogating from the Holder’s rights, the Company warrants and undertakes, that no shareholder (or related party) of the Company is or shall be entitled (including, without limitation, in any of the following events: conversion, split, consolidation, reorganization, reclassification, merger, combination or subdivision of shares, distribution of stock
                    dividend or disposition of assets) to any bonus, compensation, privileges or any fiscal or monetary rights to which the Holder is not entitled, including any Benefit, other than payment to shareholders who are employees or who provide services to the Company which payment is made to such shareholders not in their capacity as shareholders and/or such other payments and/or debts due to directors, officers and/or shareholders pursuant to obligations outstanding on or before the
                    Effective Date as specified in the Company’s Financial Statements.

                
	 	 	 
	 	
                    7.5.

                	
                    The authorized and issued share capital of the Company is as set forth in Exhibit 7.5 hereto. Except as set forth in Exhibit 7.5, there are no outstanding options, warrants, rights (including conversion or preemptive rights and rights of first refusal), or agreements of any kind for the purchase or acquisition from the Company of any of its
                    securities. 

                
	 	 	 

        

        

        

        

        
            9
        

        
            

        

        

        	 	
                    7.6.

                	
                    The Financial Statements, as were provided to the Holder prior to the date hereof, (a) were prepared in accordance with the books and records of the Company; in accordance with United States General Accepted Accounting Principles; (b) fairly present the Company’s financial condition and the results of its operations as of the relevant dates thereof and for
                    the periods covered thereby (subject to year end adjustments); and (c) contain and reflect all necessary adjustments, accruals and reserves for a fair presentation of the Company’s financial condition and the results of its operations for the periods covered by said Financial Statements (subject to year end adjustments). 

                
	 	 	 
	 	
                    7.7.

                	
                    The Last Financing was effected in accordance with the agreements attached hereto as Exhibit 7.7. 

                
	 	 	 
	
                    8.

                	
                    Exchange or Loss of Warrant

                
	 	 	 
	 	
                    Upon receipt by the Company of a declaration by an officer of the Holder of the loss, theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) of a declaration that the Holder will provide indemnification, and reimbursement to the Company of all reasonable expenses incidental thereto and surrender and cancellation of this
                    Warrant, if mutilated, the Company will issue and deliver a new Warrant of like tenor and date. If a new Warrant is requested as a result of mutilation, then the Holder shall deliver such mutilated Warrant to the Company as a condition precedent to the Company’s obligations to issue and deliver a new Warrant.

                
	 	 	 
	
                    9.

                	
                    Adjustment

                
	 	 	 
	 	
                    The number and kind of securities purchasable initially upon the exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time upon the occurrence of certain events, as follows:

                
	 	 	 
	 	
                    9.1.

                	
                    Adjustment for Shares Splits and Combinations. If the Company at any time or from time to time while this Warrant is outstanding effects a subdivision of the outstanding shares, the number of shares issuable upon exercise of this Warrant immediately before the subdivision shall be proportionately increased, and conversely, if the Company at any time or
                    from time to time combines the outstanding shares, the number of shares issuable upon exercise of this Warrant immediately before the combination shall be proportionately decreased. Any adjustment under this Section 9.1 shall become effective at the close of business on the date the subdivision or combination becomes effective.

                
	 	 	 
	 	
                    9.2.

                	
                    Issuance of Securities Below the Exercise Price. If the Company at any time while this Warrant is outstanding, shall issue any equity securities, securities convertible into equity or options or rights to purchase equity securities, issued or deemed 

                

        

        

        

        

        
            10
        

        
            

        

        

        	 	 	
                    to be issued by the Company at a price per share less than the applicable Exercise Price then in effect (a “Dilutive Issuance”), the Exercise Price shall be reduced to be equal to the product of (A) the Exercise Price in effect immediately prior to such Dilutive Issuance and (B) the quotient determined by dividing (1) the sum of (I) the product
                    derived by multiplying the Exercise Price in effect immediately prior to such Dilutive Issuance and the number of outstanding shares of Common Stock immediately prior to such Dilutive Issuance plus (II) the consideration, if any, received by the Company upon such Dilutive Issuance, by (2) the product derived by multiplying (I) the Exercise Price in effect immediately prior to such Dilutive Issuance by (II) the number of shares of Common Stock outstanding immediately after
                    such Dilutive Issuance.

                     

                
	
                	
                	
                
	 	 	
                    Notwithstanding the foregoing, no adjustments shall be made, paid or issued under this Section 9.4 in respect of an Authorized Issuance.

                
	 	 	 
	 	
                    9.3.

                	
                    Adjustment of Exercise Price. Upon each adjustment in the number of Warrant Shares purchasable hereunder, the Exercise Price shall be proportionately increased or decreased, as the case may be, in a manner that is the inverse of the manner in which the number of Warrant Shares purchasable hereunder shall be adjusted.

                
	 	 	 
	
                    10.

                	
                    Share Swap

                
	 	 	 
	 	
                    The Company undertakes not to enter into any share swap agreement or arrangement (such as a merger, reorganization, or sale of all, or substantially all, of the Company’s shares) (“Share Swap”), unless the other company to such a Share Swap agreement undertakes to allot to the Holder, upon, and subject to, the exercise of this Warrant, such
                    securities as were swapped for the shares of the Company, as though the Holder had held the Warrant Shares on the record date of the Share Swap. Nothing herein shall derogate from the notice requirements of Section 4.

                
	 	 	 
	
                    11.

                	
                    Notice of Changes

                
	 	 	 
	 	
                    Whenever the number of Warrant Shares for which this Warrant is exercisable is adjusted as provided in Sections 9, the Company shall promptly compute such adjustment and deliver to the Holder a certificate, signed by a principal financial officer of the Company, setting forth the number of Warrant Shares for which this Warrant is exercisable and the Exercise
                    Price as a result of such adjustment, a brief statement of the facts requiring such adjustment and the computation thereof and when such adjustment has or will become effective.

                
	 	 	 

        

        

        

        

        
            11
        

        
            

        

        

        	
                    12.

                	
                    Investment Intent; Limited Transferability.

                
	 	 	 
	 	
                    12.1.

                	
                    If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, this Warrant shall not be registered pursuant to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws, the Company may require, as a condition of allowing such transfer (i) that the Holder furnish to the
                    Company a legal opinion of counsel to the Holder to such effect, the substance of which shall be reasonably acceptable to the Company and (ii) that the holder or transferee execute and deliver to the Company an investment letter in form and substance acceptable to the Company representing that they are acquiring such Warrant Shares for investment purposes and that they are an accredited investor as defined in Rule 501(a) under the Securities Act. The Holder understands that
                    it must bear the economic risk of its investment in this Warrant and any securities obtainable upon exercise of this Warrant for an indefinite period of time, as this Warrant and such securities have not been registered under Federal or state securities or blue sky laws.

                
	 	 	 
	 	
                    12.2.

                	
                    The Holder represents that it has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of this Warrant or the exercise of the Warrant and the finance operations and business of the Company; and (ii) the opportunity to request such
                    additional information which the Company possesses or can acquire without unreasonable effort or expense. Nothing contained in this Section 12.2 shall alter, amend or change the Holder’s reliance on the representations, covenants or warranties contained herein.

                
	 	 	 
	 	
                    12.3.

                	
                    The Holder represents that it is an “accredited investor” within the meaning of Regulation D promulgated under the Securities Act and that it is acquiring the Warrants for its own account and not with a present view to, or for sale in connection with, any distribution thereof in violation of the registration requirements of the Securities Act, without
                    prejudice, however, to such Holder’s right, subject to the provisions of this Warrant, at all times to sell or otherwise dispose of all or any part of the Warrant and Warrant Shares.

                
	 	 	 
	 	
                    12.4.

                	
                    The Holder represents that it, either by reason of such Holder’s business or financial experience or the business or financial experience of its professional advisors (who are unaffiliated with and who are not compensated by the Company or any affiliate, finder or selling agent of the Company, directly or indirectly), 

                

        

        

        

        

        
            12
        

        
            

        

        

        	 	 	
                    has such sophistication, knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment in the Company and the capacity to protect such Holder’s interests in connection with the transactions contemplated by this Warrant.

                
	 	 	 
	 	
                    12.5.

                	
                    The Holder represents that it has the ability to bear the economic risks of its investment for an indefinite period of time and could afford a complete loss of its investment.

                
	 	 	 
	 	
                    12.6.

                	
                    The Holder agrees and acknowledges that the representations made by the Holder in this Section 12 are conditions to the exercise of this Warrant.

                
	 	 	 
	
                    13.

                	
                    Assignment

                
	 	 	 
	 	
                    The Holder may offer, sell or otherwise dispose of this Warrant, in whole or in part and on one or more occasions, to any entity in which the Holder has an equity interest of at least 20% or to any other financial institution, bank or venture capital fund, provided that such entity or party does not compete with the Company and further provided that the Company
                    may object to a proposed assignee for good reason. Such assignment shall be in the form of Exhibit B, or similar thereto. With respect to any offer, sale or other disposition of this Warrant or Warrant Shares, the Holder will give written notice to the Company, describing briefly the manner thereof and the identity of the transferee, together with, if requested by the Company. Upon receiving such written notice and declaration, if so requested, the Company, as
                    promptly as practicable, shall deliver to the Holder one or more replacement Warrant certificates or certificates representing the Warrant Shares on the same terms and conditions as this Warrant for delivery to the transferees, which shall become effective, in the case of a transfer of all or a portion of this Warrant, upon the execution of such Warrant certificate by the Company and by the transferee. 

                
	 	 	 
	
                    14.

                	
                    Alternative Payment 

                
	 	 	 
	 	
                    Upon or immediately prior to an Exit Transaction, the Holder may elect to waive all or any portion of the rights it may then have under this Warrant in consideration for the payment by the Company of the Alternative Payment. Such waiver shall be made by written notice to the Company, after the Company shall have provided notice of an Exit Transaction to the
                    Holder in accordance with the procedure specified in Section 4. The Holder shall be entitled, within 21 days of receipt of such notice, to advise the Company in writing of its election to waive its rights as aforesaid.

                
	 	 	 
	 	
                    In the event the Company receives from the Holder a notice of waiver as described above, the Company will pay to the Holder the Alternative Payment within two (2) Business Days thereafter. 

                
	 	 	 

        

        

        

        

        
            13
        

        
            

        

        

        	 	
                    The Alternative Payment payable in consideration of the waiver of all the rights of the Holder to purchase Warrant Shares under this Warrant shall be equal to $225,000 (two hundred and twenty five thousand U.S. dollars). If the Holder waives its rights to purchase only a portion of the Warrant Shares, or, in the event the Warrant was partially exercised prior
                    thereto, the Alternative Payment payable by the Company in connection with such waiver, shall be proportionally reduced. 

                
	 	 	 
	 	
                    Any waiver of the Holder’s rights under this Warrant in consideration of the Alternative Payment shall be conditional upon the consummation and closing of the relevant Exit Transaction as specified in the waiver notice.

                
	 	 	 
	 	
                    Payment of the Alternative Payment according to this Section 14 shall be prior to any distribution preferences set forth in the Certificate of Incorporation or any other profit sharing or preferred liquidation preference payable to any other security holder of the Company. The Company shall attain any necessary consents and waivers to guarantee such
                    commitment.

                
	 	 	 
	
                    15.

                	
                    Rights of the Holder

                
	 	 	 
	 	
                    The Holder shall not, by virtue hereof, be entitled to any rights of a shareholder in the Company.

                
	 	 	 
	
                    16.

                	
                    Notices 

                
	 	 	 
	 	
                    Any notice or other communication hereunder shall be in writing and shall be deemed to have been given upon delivery, if personally delivered, or three Business Days after deposit if deposited in the mail for mailing by certified mail, postage prepaid, or one Business Day after having been sent if sent by facsimile, and addressed as follows:

                
	 	 	 
	 	
                    If to Holder:

                	
                    Mizrahi Tefahot Bank Ltd.

                    7 Jabotinsky Street.

                    Ramat Gan, Israel

                    Facsimile: 03-755-9079 

                    Attn: Dani Maor

                
	 	 	 
	 	
                    with a copy to:     

                	
                    E. Landau Law Offices

                    38 Keren Hayessod St.

                    Jerusalem 92149, Israel

                    Facsimile: 972-2-561-8847

                    Attention: Shlomo Farkas, Adv.

                
	 	 	 

        

        

        

        

        
            14
        

        
            

        

        

        	 	
                    If to Company:

                	
                    Ophthalmic Imaging Systems

                    221 Lathrop way, suite I,

                    Sacramento, CA 95815

                    Facsimile: 1-916-646-0207

                    Attention: Ariel Shenhar

                    

                
	 	 	 
	 	
                    with a copy to:

                	
                    Troutman Sanders LLP

                    The Chrysler Building

                    405 Lexington Avenue

                    New York, NY 10174

                    Facsimile: 1-212-704-5919

                    Attention: Joe Walsh

                    

                
	 	 	 
	 	
                    Each of the above addressees may change its address for purposes of this paragraph by giving to the other addressees notice of such new address in conformance with this paragraph.

                
	 	 	 
	
                    17.

                	
                    Termination

                
	 	 	 
	 	
                    This Warrant and the rights conferred hereby shall terminate at the aforementioned time on the last day of the Warrant Period for exercise of the relevant Warrant.

                
	 	 	 
	
                    18.

                	
                    Governing Law

                
	 	 	 
	 	
                    All issues of contractual matters (including interpretation, enforcement and validity) shall be governed by and construed in accordance with the internal substantive laws of the State of Israel, without giving effect to the rules respective conflict of law; all issues of corporate law shall be governed by and construed in accordance with the internal substantive
                    laws of the State of California; and the parties hereto irrevocably submit to the exclusive jurisdiction of the Courts of Tel Aviv Jaffa, Israel, in respect of any dispute or matter arising out of or connected with this Warrant.

                
	 	 	 

        

        

        

        

        
            15
        

        
            

        

        IN WITNESS WHEREOF, WE HAVE executed this Warrant as of the date hereof.

        

        

         

        

        	
                    Ophthalmic Imaging Systems

                
	
                     

                
	
                    By:   

                	/s/ Ariel Shenhar	
                
	
                     

                
	
                    Title:

                	Chief Financial Officer	
                
	
                     

                

        

        

        

        

        

        

        
            16
        

        
            

        

        Exhibit A

        

        NOTICE OF EXERCISE

        

        To:     Ophthalmic Imaging Systems

          

        

        	
                    1.

                	
                    The undersigned hereby elects to purchase _________ shares of Common stock of Ophthalmic Imaging Systems, pursuant to the terms of the attached Warrant. As a condition to this exercise, the undersigned Holder hereby represents and warrants to the Company that the representations and warranties set forth in Section 12 of the Warrant are true and correct as of the
                    date hereof as if they had been made on such date with respect to the Warrant Shares. The undersigned Holder further acknowledges that the sale, transfer, assignment or hypothecation of the Warrant Shares to be issued upon exercise of this Warrant is subject to the terms and conditions contained in Section 12 of this Warrant. 

                
	 	 	 
	
                    2.

                	
                    Payment of the Exercise Price per share required under such Warrant shall be made by:

                
	 	 	 
	 	
                    o

                	
                    payment in cash (or check) pursuant to Section 5.2 of the Warrant.

                
	 	 	 
	 	
                    o

                	
                    payment by conversion of debt of the company to the Holder pursuant to Section 5.2 of the Warrant.

                
	 	 	 
	 	
                    o

                	
                    Net exercise pursuant to Section 5.3 of the Warrant.

                
	 	 	 
	
                    3.

                	
                    Please issue a certificate representing said Common stock in the name of the undersigned, at the following address:

                
	 	 	 
	
                    4.

                	
                    Please issue a new Warrant for the unexercised portion of the attached Warrant (if any) in the name of the undersigned.

                

        

        

        

        

        	
                    ______________________

                	
                    _________________________

                
	
                    (Date)

                	
                    (Print Name of Holder)

                
	 	 
	 	 
	 	
                    _________________________

                
	 	
                    (Signature)

                
	 	 
	 	
                    Name:

                
	 	
                    Title:

                
	 	
                    Telephone:

                

        

        

        

        

        
            17
        

        
            

        

        Exhibit B

        

        Form of Assignment

        

        (To be executed by the Holder upon transfer of the Warrant)

        

             FOR VALUE RECEIVED, ___________________ hereby sells, assigns, and transfers unto _______________________________________ (please print name and address of transferee) this Warrant, together with all right, title and interest therein, and does so hereby irrevocably appoint _______________ as attorney to transfer the within Warrant on the books
        of the within-named Company, with full power of substitution. As a condition to this assignment, the Holder acknowledges that its assignee must deliver a written instrument to the Company that the representations and warranties of Section 12 of the Warrant are true and correct as of the date hereof as if they had been made by such assignee on such date with respect to the Warrant.

        

             And we, the Assignee, hereby agree to take upon ourselves all the rights and obligations imposed on the Holder under this Warrant.

        

        

        	 	
                    By: _______________

                    Name:

                    Title:

                    Dated:

                

        

        

        

        
            18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00164-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00164-of-00352.parquet"}]]