Document:

Exhibit 10.5

                         RADA ELECTRONIC INDUSTRIES LTD.

                       THE 2003 ISRAELI SHARE OPTION PLAN

   (*In compliance with Amendment No. 132 of the Israeli Tax Ordinance, 2002)

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                                TABLE OF CONTENTS

                                                                            Page

1.    PURPOSE OF THE ISOP....................................................1
2.    DEFINITIONS............................................................1
3.    ADMINISTRATION OF THE ISOP.............................................4
4.    DESIGNATION OF PARTICIPANTS............................................4
5.    DESIGNATION OF OPTIONS PURSUANT TO SECTION 102.........................5
6.    TRUSTEE................................................................6
7.    SHARES RESERVED FOR THE ISOP; RESTRICTION THEREON......................6
8.    PURCHASE  PRICE........................................................7
9.    ADJUSTMENTS............................................................7
10.   TERM AND EXERCISE OF OPTIONS...........................................8
11.   VESTING OF OPTIONS.....................................................9
12.   PURCHASE FOR INVESTMENT...............................................10
13.   DIVIDENDS.............................................................10
14.   RESTRICTIONS ON ASSIGNABILITY AND SALE OF OPTIONS.....................10
15.   EFFECTIVE DATE AND DURATION OF THE ISOP...............................10
16.   AMENDMENTS OR TERMINATION.............................................11
17.   GOVERNMENTAL REGULATIONS..............................................11
18.   CONTINUANCE OF EMPLOYMENT OR HIRED SERVICES...........................11
19.   GOVERNING LAW & JURISDICTION..........................................11
20.   TAX CONSEQUENCES......................................................11
21.   NON-EXCLUSIVITY OF THE ISOP...........................................12
22.   MULTIPLE AGREEMENTS...................................................12

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This plan, as amended from time to time, shall be known as Rada Electronic
Industries Ltd 2003 Israeli Share Option Plan (the "ISOP").

1.    PURPOSE OF THE ISOP

      The ISOP is intended to provide an incentive to retain, in the employ
and/or the service of the Company and its Affiliates (as defined below), persons
of training, experience, and ability, to attract new employees, directors,
consultants, service providers and any other persons and/or entity which the
Board (as such term is defined below) shall decide their services are considered
valuable to the Company, to encourage the sense of proprietorship of such
persons, and to stimulate the active interest of such persons in the development
and financial success of the Company by providing them with opportunities to
purchase shares in the Company, pursuant to the ISOP.

2.    DEFINITIONS

      For purposes of the ISOP and related documents, including the Option
Agreement, the following definitions shall apply:

      2.1 "Affiliate" means any "employing company" within the meaning of
Section 102(a) of the Ordinance.

      2.2 "Approved 102 Option" means an Option granted pursuant to Section
102(b) of the Ordinance and held in trust by a Trustee for the benefit of the
Optionee.

      2.3 "Articles" means the Articles of Association of the Company.

      2.4 "Board" means the Board of Directors of the Company.

      2.5 "Capital Gain Option" or CGO" as defined in Section 5.4 below.

      2.6 "Cause" means, (i) conviction of any felony involving moral turpitude
or affecting the Company; (ii) any refusal to carry out a reasonable directive
of the chief executive officer, the Board or the Optionee's direct supervisor,
which involves the business of the Company or its Affiliates and was capable of
being lawfully performed; (iii) embezzlement of funds of the Company or its
Affiliates; (iv) any breach of the Optionee's fiduciary duties or duties of care
to the Company; including without limitation disclosure of confidential
information of the Company; and (v) any conduct (other than conduct in good
faith) reasonably determined by the Board to be materially detrimental to the
Company.

      2.7 "Chairman" means the chairman of the Committee.

      2.8 "Committee" or the "Compensation Committee" means the compensation
committee of the Board, designated from time to time by the resolution of the
Board.

      2.9 "Company" means Rada Electronic Industries Ltd, an Israeli company.

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      2.10 "Companies Law" means the Israeli Companies Law 5759-1999, as may be
amended from time to time and any regulations, rules and orders promulgated
pursuant thereto or any successor act or regulation, as in effect from time to
time/.

      2.11 "Controlling Shareholder" shall have the meaning ascribed to it in
Section 32(9) of the Ordinance (as defined below).

      2.12 "Date of Grant" means, the date of grant of an Option, as determined
by the Board or authorized Committee and set forth in the Optionee's Option
Agreement.

      2.13 Employee" means a person who is employed by the Company or its
Affiliates, including an individual who is serving as a director or an office
holder, but excluding Controlling Shareholder.

      2.14 "Expiration Date" means the date upon which an Option shall expire,
as set forth in Section 10.2 of the ISOP.

      2.15 "Fair Market Value" means as of any date, the value of a Share
determined as follows:

      (i) If the Shares are listed on any established stock exchange or a
national market system, including without limitation the NASDAQ National Market
system, or the NASDAQ SmallCap Market of the NASDAQ Stock Market, the Fair
Market Value shall be the closing sales price for such Shares (or the closing
bid, if no sales were reported), as quoted on such exchange or system for the
last market trading day prior to time of determination, as reported in the Wall
Street Journal, or such other source as the Board deems reliable.

      Without derogating from the above, solely for the purpose of determining
the tax liability pursuant to Section 102(b)(3) of the Ordinance, if at the Date
of Grant the Company's shares are listed on any established stock exchange or a
national market system or if the Company's shares will be registered for trading
within ninety (90) days following the Date of Grant, the Fair Market Value of a
Share at the Date of Grant shall be determined in accordance with the average
value of the Company's shares on the thirty (30) trading days preceding the Date
of Grant or on the thirty (30) trading days following the date of registration
for trading, as the case may be;

      (ii) If the Shares are regularly quoted by a recognized securities dealer
but selling prices are not reported, the Fair Market Value shall be the mean
between the high bid and low asked prices for the Shares on the last market
trading day prior to the day of determination, or;

      (iii) In the absence of an established market for the Shares, the Fair
Market Value thereof shall be determined in good faith by the Board.

      2.16 "ISOP" means this 2003 Israeli Share Option Plan.

      2.17 "ITA" means the Israeli Tax Authorities.

      2.18 "Non-Employee" means a consultant, adviser, service provider,
Controlling Shareholder or any other person who is not an Employee.

      2.19 "Ordinary Income Option" or "OIO" as defined in Section 5.5 below.

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      2.20 "Option" means an option to purchase one or more Shares of the
Company pursuant to the ISOP.

      2.21 "102 Option" means any Option granted to Employees pursuant to
Section 102 of the Ordinance.

      2.22 "3(i) Option" means an Option granted pursuant to Section 3(i) of the
Ordinance to any person who is Non- Employee.

      2.23 "Optionee" means a person who receives or holds an Option under the
ISOP.

      2.24 "Option Agreement" means the Share Option Agreement between the
Company and an Optionee that sets out the terms and conditions of an Option
under this ISOP.

      2.25 "Ordinance" means the 1961 Israeli Income Tax Ordinance [New Version]
1961 as now in effect or as hereafter amended from time to time and any
regulation, rule, or order promulgated pursuant thereto or any successor act,
rule, order or regulation as in effect from time to time.

      2.26 "Purchase Price" or the "Exercise Price" means the exercise price for
each Share (as such terms is defined below) subject to an Option.

      2.27 "Section 102" means Section 102 of the Ordinance and the rules or
regulations issued thereunder, as now in effect or as hereafter amended.

      2.28 "Share" means the ordinary shares, NIS 1 par value each, of the
Company.

      2.29 "Successor Company" means any entity the Company is merged to or is
acquired by, in which the Company is not the surviving entity.

      2.30 "Transaction" means (i) merger, acquisition or reorganization of the
Company with one or more other entities in which the Company is not the
surviving entity, (ii) a sale of all or substantially all of the assets of the
Company.

      2.31 "Trustee" means any person appointed by the Company to serve as a
trustee and approved by the ITA, all in accordance with the provisions of
Section 102(a) of the Ordinance.

      2.32 "Unapproved 102 Option" means an Option granted pursuant to Section
102(C) of the Ordinance and not held in trust by a Trustee.

      2.33 "Vested Option" means any Option, which has already been vested
according to the Vesting Dates.

      2.34 "Vesting Dates" means, as determined by the Board or by the
Committee, the date as of which the Optionee shall be entitled to exercise the
Options or part of the Options, as set forth in section 11 of the ISOP.

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3.    ADMINISTRATION OF THE ISOP

      3.1 The Board shall have the power to administer the ISOP either directly
or upon the recommendation of the Committee, all as provided by applicable law
and in the Articles. Notwithstanding the above, the Board shall automatically
have residual authority: (i) if no Committee shall be constituted; (ii) if such
Committee shall cease to operate for any reason; (iii) with respect to the
rights not delegated by the Board to the Committee; or (iv) if in accordance
with Israeli Law the Committee is not permitted to administer such law..

      3.2 Subject to the Articles, the Committee shall select one of its members
as its Chairman and shall hold its meetings at such times and places as the
Chairman shall determine. The Committee shall keep records of its meetings and
shall make such rules and regulations for the conduct of its business, as it
shall deem advisable.

      3.3 The Committee shall have the power to recommend to the Board and the
Board shall have the full power and authority to: (i) designate participants;
(ii) determine the terms and provisions of the respective Option Agreements,
including, but not limited to, the number of Options to be granted to each
Optionee, the number of Shares to be covered by each Option, provisions
concerning the time and the extent to which the Options may be exercised and the
nature and duration of restrictions as to the transferability or restrictions
constituting substantial risk of forfeiture and to cancel or suspend awards, as
necessary; (iii) determine the Fair Market Value of the Shares covered by each
Option and the Purchase Price thereof; (iv) make an election as to the type of
Approved 102 Option; and (v) designate the type of Options.

      3.4 Subject to the Companies Law, and restrictions on delegations made by
the Board from time to rime, the Committee may :(i) alter any restrictions and
conditions of any Options or Shares subject to any Options (ii) interpret the
provisions and supervise the administration of the ISOP; (iii) prescribe, amend
and rescind rules and regulations relating to the ISOP; and (vi) make all other
determinations deemed necessary or advisable for the administration of the ISOP.

      3.5 Except to the extent permitted by the Companies Law, the Committee
shall not be entitled to grant Options to the Optionees.

      3.6 The interpretation and construction by the Committee of any provision
of the ISOP or of any Option Agreement shall be final and conclusive unless
otherwise determined by the Board.

4.    DESIGNATION OF PARTICIPANTS

      4.1 The persons eligible for participation in the ISOP as Optionees shall
include any Employees and/or Non-Employees of the Company or of any Affiliate;
provided, however, that (i) Employees may only be granted 102 Options; (ii)
Non-Employees may only be granted 3(i) Options; and (iii) Controlling
Shareholders may only be granted 3(i) Options.

      4.2 The grant of an Option hereunder shall neither entitle the Optionee to
participate nor disqualify the Optionee from participating in, any other grant
of Options pursuant to the ISOP or any other option or share plan of the Company
or any of its Affiliates.

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      4.3 Anything in this ISOP to the contrary notwithstanding, all grants of
Options to directors and office holders shall be authorized and implemented in
accordance with the provisions of the Companies Law.

5.    DESIGNATION OF OPTIONS PURSUANT TO SECTION 102

      5.1 The Company may designate Options granted to Employees pursuant to
Section 102 as Unapproved 102 Options or Approved 102 Options.

      5.2 The grant of Approved 102 Options shall be made under this ISOP
adopted by the Board as described herein, and shall be conditioned upon the
approval of this ISOP by the ITA as required by Section 102.

      5.3 Approved 102 Option may either be classified as Capital Gain Option or
Ordinary Income Option.

      5.4 Approved 102 Option elected and designated by the Company to qualify
under the capital gain tax treatment in accordance with the provisions of
Section 102(b)(2) shall be referred to herein as CGO.

      5.5 Approved 102 Option elected and designated by the Company to qualify
under the ordinary income tax treatment in accordance with the provisions of
Section 102(b)(1) shall be referred to herein as OIO.

      5.6 The Company's election of the type of Approved 102 Options as CGO or
OIO granted to Employees (the "Election"), shall be appropriately filed with the
ITA before the Date of Grant of an Approved 102 Option. Such Election shall
become effective beginning the first Date of Grant of an Approved 102 Option
under this ISOP and shall remain in effect until the end of the year following
the year during which the Company first granted Approved 102 Options. The
Election shall obligate the Company to grant only the type of Approved 102
Option it has elected, and shall apply to all Optionees who were granted
Approved 102 Options during the period indicated herein, all in accordance with
the provisions of Section 102(g) of the Ordinance. For the avoidance of doubt,
such Election shall not prevent the Company from granting Unapproved 102 Options
simultaneously.

      5.7 All Approved 102 Options must be held in trust by a Trustee, as
described in Section 6 below.

      5.8 For the avoidance of doubt, the designation of Unapproved 102 Options
and Approved 102 Options shall be subject to the terms and conditions set forth
in Section 102.

      5.9 With regard to Approved 102 Options, the provisions of the ISOP and/or
the Option Agreement shall be subject to the provisions of Section 102 and the
Tax Assessing Officer's permit, and the said provisions and permit shall be
deemed an integral part of the ISOP and of the Option Agreement. Any provision
of Section 102 and/or the said permit which is necessary in order to receive
and/or to keep any tax benefit pursuant to Section 102, which is not expressly
specified in the ISOP or the Option Agreement, shall be considered binding upon
the Company and the Optionees.

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6.    TRUSTEE

      6.1 Approved 102 Options which shall be granted under the ISOP and/or any
Shares allocated or issued upon exercise of such Approved 102 Options and/or
other shares received subsequently following any realization of rights,
including, without limitation, bonus shares, shall be allocated or issued to the
Trustee and held for the benefit of the Optionees for such period of time as
required by Section 102 (the "Holding Period"). In the case the requirements for
Approved 102 Options are not met, then the Approved 102 Options may be treated
as Unapproved 102 Options, all in accordance with the provisions of Section 102
and regulations promulgated thereunder.

      6.2 Notwithstanding anything to the contrary, the Trustee shall not
release any Shares allocated or issued upon exercise of Approved 102 Options
prior to the full payment of the Optionee's tax liabilities in connection with
such Options.

      6.3 Upon receipt of Approved 102 Option, the Optionee will sign an
undertaking to release the Trustee from any liability in respect of any action
or decision duly taken and bona fide executed in relation with the ISOP, or any
Approved 102 Option or Share granted to him thereunder.

      6.4 With respect to any Approved 102 Option, subject to the provisions of
Section 102 and any rules or regulation or orders or procedures promulgated
thereunder, an Optionee shall not sell or release from trust any Share received
upon the exercise of an Approved 102 Option and/or any share received
subsequently following any realization of rights, including without limitation,
bonus shares, until the lapse of the Holding Period required under Section 102
of the Ordinance. Notwithstanding the above, if any such sale or release occurs
during the Holding Period, the sanctions under Section 102 of the Ordinance and
under any rules or regulation or orders or procedures promulgated thereunder
shall apply to and shall be borne by such Optionee.

7.    SHARES RESERVED FOR THE ISOP; RESTRICTION THEREON

      7.1 The Company has reserved 1,234,000 (One Million Two Hundred Thirty
Four) authorized but unissued Shares, for the purposes of the ISOP and for the
purposes of any other share option plans which may be adopted by the Company in
the future, subject to adjustment as set forth in Section 9 below. Any Shares
which remain unissued and which are not subject to the outstanding Options at
the termination of the ISOP shall cease to be reserved for the purpose of the
ISOP, but until termination of the ISOP the Company shall at all times reserve
sufficient number of Shares to meet the requirements of the ISOP. Should any
Option for any reason expire or be canceled prior to its exercise or
relinquishment in full, the Shares subject to such Option may again be subjected
to an Option under the ISOP or under the Company's other share option plans.

      7.2 Each Option granted pursuant to the ISOP, shall be evidenced by a
written Option Agreement between the Company and the Optionee, in such form as
the Board or the Committee shall from time to time approve. Each Option
Agreement shall state, among other matters, the number of Shares to which the
Option relates, the type of Option granted thereunder (whether a CGO, OIO,
Unapproved 102 Option or a 3(i) Option), the Vesting Dates, the Purchase Price
per share, the Expiration Date and such other terms and conditions as the
Committee or the Board in its discretion may prescribe, provided that they are
consistent with this ISOP.

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8.    PURCHASE PRICE

      8.1 The Purchase Price of each Share subject to an Option shall be
determined by the Board, unless such authority is delegated to the Committee in
accordance with applicable law. Each Option Agreement will contain the Purchase
Price determined for each Option.

      8.2 The Purchase Price shall be payable upon the exercise of the Option in
a form satisfactory to the Committee, including without limitation, by cash or
check. The Committee shall have the authority to postpone the date of payment on
such terms as it may determine.

      8.3 The Purchase Price shall be denominated in the currency of the primary
economic environment of, either the Company or the Optionee (that is the
functional currency of the Company or the currency in which the Optionee is
paid) as determined by the Company.

9.    ADJUSTMENTS

      Upon the occurrence of any of the following described events and subject
to Section 102,, Optionee's rights to purchase Shares under the ISOP shall be
adjusted as hereafter provided:

      9.1 In the event of a Transaction, and subject to the applicable
transaction documents, the unexercised Options then outstanding under the ISOP
may be assumed or substituted with an appropriate number of shares of each class
of shares or other securities of the Successor Company (or a parent or
subsidiary of the Successor Company) as were distributed to the shareholders of
the Company in connection and with respect to the Transaction. In the case of
such assumption and/or substitution of Options, appropriate adjustments shall be
made to the Purchase Price so as to reflect such action and all other terms and
conditions of the Option Agreements shall remain unchanged, including but not
limited to the vesting schedule, all subject to the determination of the
Committee or the Board, which determination shall be in their sole discretion
and final. Unless otherwise required by any applicable law, the Company shall
notify the Optionee of the Transaction in such form and method as it deems
applicable at least ten (10) days prior to the effective date of such
Transaction.

      9.2 Notwithstanding the above and subject to any applicable law, the Board
or the Committee shall have full power and authority to determine that in
certain Option Agreements there shall be a clause instructing that, if in any
such Transaction as described in Section 9.1 above, the Successor Company (or
parent or subsidiary of the Successor Company) does not agree to assume or
substitute such Options, the Vesting Dates shall be accelerated so that any
unvested Option or any portion thereof shall be immediately vested as of the
date which is ten (10) days prior to the effective date of the Transaction.

      9.3 For the purposes of Section 9.1 above, an Option shall be considered
assumed or substituted if, following the Transaction, the Option confers the
right to purchase or receive, for each Share underlying an Option immediately
prior to the Transaction, the consideration (whether shares, options, cash, or
other securities or property) received in the Transaction by holders of shares
held on the effective date of the Transaction (and if such holders were offered
a choice of consideration, the type of consideration chosen by the holders of a
majority of the outstanding shares) in their capacity as holders of Shares of
the Company; provided, however, that if such consideration received in the
Transaction is not solely ordinary shares (or their equivalent) of the Successor
Company or its parent or subsidiary, the Board may, with the consent of the
Successor Company, provide for the consideration to

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be received upon the exercise of the Option to be solely ordinary shares (or
their equivalent) of the Successor Company or its parent or subsidiary equal in
Fair Market Value to the per Share consideration received by holders of a
majority of the outstanding Shares in the framework of the Transaction in their
capacity as holders of shares; and provided further that the Board may
determine, in its discretion, that in lieu of such assumption or substitution of
Options for options of the Successor Company or its parent or subsidiary, such
Options will be substituted for any other type of asset or property including
cash which is fair under the circumstances.

      9.4 If the Company is voluntarily liquidated or dissolved while
unexercised Options remain outstanding under the ISOP, the Company shall notify
all unexercised Optionees of such liquidation, and the Optionees shall then have
ten (10) days to exercise any unexercised Vested Option held by them at that
time, in accordance with the exercise procedure set forth herein. Upon the
expiration of such ten-days period, all remaining outstanding Options will
immediately terminate.

      9.5 If the outstanding shares of the Company shall at any time be changed
or exchanged by declaration of a share dividend (bonus shares), share split,
combination or exchange of shares, recapitalization, or any other like event by
or of the Company, and as often as the same shall occur, then the number, class
and kind of the Shares subject to the ISOP or subject to any Options therefore
granted, and the Purchase Prices, shall be appropriately and equitably adjusted
so as to maintain the proportionate number of Shares without changing the
aggregate Purchase Price, provided, however, that no adjustment shall be made by
reason of the distribution of subscription rights (rights offering) on
outstanding shares. Upon happening of any of the foregoing, the class and
aggregate number of Shares issuable pursuant to the ISOP (as set forth in
Section 7 hereof), in respect of which Options have not yet been exercised,
shall be appropriately adjusted, all as will be determined by the Board whose
determination shall be final.

10.   TERM AND EXERCISE OF OPTIONS

      10.1 Options shall be exercised by the Optionee by giving written notice
to the Company and/or to any third party designated by the Company (the
"Representative"), in such form and method as may be determined by the Company
and when applicable, by the Trustee in accordance with the requirements of
Section 102, which exercise shall be effective upon receipt of such notice by
the Company and/or the Representative and the payment of the Purchase Price at
the Company's or the Representative's principal office. The notice shall specify
the number of Shares with respect to which the Option is being exercised.

      10.2 Options, to the extent not previously exercised, shall terminate
forthwith upon the earlier of: (i) the date set forth in the Option Agreement;
and (ii) the expiration of any extended period in any of the events set forth in
section 10.5 below.

      10.3 The Options may be exercised by the Optionee in whole at any time or
in part from time to time, to the extent that the Options become vested and
exercisable, prior to the Expiration Date, and provided that, subject to the
provisions of section 10.5 below, the Optionee is employed by or providing
services to the Company or any of its Affiliates, at all times during the period
beginning with the granting of the Option and ending upon the date of exercise.

      10.4 Subject to the provisions of section 10.5 below, in the event of
termination of the

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Optionee's employment or services with the Company or any of its Affiliates, and
as of the effective date of such termination all Options granted to such
Optionee (Vested or Unvested Options) will immediately expire.

      10.5 Notwithstanding anything to the contrary hereinabove and unless
otherwise determined in the Optionee's Option Agreement or herein, an Option may
be exercised after the date of termination of Optionee's employment or service
with the Company or any Affiliates during an additional period of time beyond
the effective date of such termination, but only with respect to the number of
Vested Options at the effective date of such termination according to the
Vesting Dates of such Options, if:

      (i) termination is without Cause, in which event any Vested Option still
in force and unexpired may be exercised within a period of ninety (90) days
after the effective date of such termination; or-

      (ii) termination is the result of death or disability of the Optionee, in
which event any Vested Option still in force and unexpired may be exercised
within a period of twelve (12) months after the date of such termination; or -

      If termination of employment or service is for Cause, any outstanding
unexercised Option (whether vested or non-vested), will immediately expire and
terminate, and the Optionee shall not have any right in connection to such
outstanding Options.

      10.6 To avoid doubt, the Optionees shall not have any of the rights or
privileges of shareholders of the Company in respect of any Shares purchasable
upon the exercise of any Option, nor shall they be deemed to be a class of
shareholders or creditors of the Company for purpose of the operation of
sections 350 and 351 of the Companies Law or any successor to such section,
until registration of the Optionee as holder of such Shares in the Company's
register of shareholders upon exercise of the Option in accordance with the
provisions of the ISOP, but in case of Options and Shares held by the Trustee,
subject to the provisions of Section 6 of the ISOP.

      10.7 Any form of Option Agreement authorized by the ISOP may contain such
other provisions as the Board and the Committee may, from time to time, deem
advisable, all in accordance with and subject to the provisions of Section 102,
and further subject to the payment of any taxes due thereupon under any
applicable law by the Optionee in connection thereto.

      10.8 With respect to Unapproved 102 Option, if the Optionee ceases to be
employed by the Company or any Affiliate, the Optionee shall provide the Company
and/or its Affiliate security or guarantees for the payment of tax due at the
time of sale of Shares, all in accordance with the provisions of Section 102 and
the rules, regulation or orders promulgated thereunder.

11.   VESTING OF OPTIONS

      11.1 Subject to the provisions of the ISOP, each Option shall vest
following the Vesting Dates and for the number of Shares as shall be provided in
the Option Agreement. However, no Option shall be exercisable after the
Expiration Date.

      11.2 An Option may be subject to such other terms and conditions on the
time or times when it may be exercised, as the Board or Committee (if permitted
by law and the case may be) may deem appropriate all in accordance with and
subject to the provisions of Section 102.. The vesting provisions

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of individual Options may vary.

12.   PURCHASE FOR INVESTMENT

The Company's obligation to issue or allocate Shares upon exercise of an Option
granted under the ISOP is expressly conditioned upon: (a) the Company's
completion of any registration or other qualifications of such Shares under all
applicable laws, rules and regulations or (b) representations and undertakings
by the Optionee (or his legal representative, heir or legatee, in the event of
the Optionee's death) to assure that the sale of the Shares complies with any
registration exemption requirements which the Company in its sole discretion
shall deem necessary or advisable. Such required representations and
undertakings may include representations and agreements that such Optionee (or
his legal representative, heir, or legatee): (a) is purchasing such Shares for
investment and not with any present intention of selling or otherwise disposing
thereof; and (b) agrees to have placed upon the face and reverse of any
certificates evidencing such Shares a legend setting forth (i) any
representations and undertakings which such Optionee has given to the Company or
a reference thereto and (ii) that, prior to effecting any sale or other
disposition of any such Shares, the Optionee must furnish to the Company an
opinion of counsel, satisfactory to the Company, that such sale or disposition
will not violate the applicable laws, rules, and regulations, whether of the
State of Israel or of the United States or any other State having jurisdiction
over the Company and the Optionee.

13.   DIVIDENDS

      13.1 With respect to all Shares (but excluding, for avoidance of any
doubt, any unexercised Options) allocated or issued upon the exercise of Options
purchased by the Optionee and held by the Optionee or by the Trustee, as the
case may be, the Optionee shall be entitled to receive dividends in accordance
with the quantity of such Shares, subject to the provisions of the Articles (and
all amendments thereto) and subject further to any applicable taxation on
distribution of dividends.

      13.2 During the period in which Shares are held by the Trustee on behalf
of the Optionee, the cash dividends paid with respect thereto shall be paid
directly to the Optionee.

14.   RESTRICTIONS ON ASSIGNABILITY AND SALE OF OPTIONS

      14.1 No Option or any right with respect thereto, purchasable hereunder,
whether fully paid or not, shall be assignable, transferable or given as
collateral or any right with respect to it given to any third party whatsoever,
except as specifically allowed under the ISOP, and during the lifetime of the
Optionee each and all of such Optionee's rights to purchase Shares hereunder
shall be exercisable only by the Optionee.

      Any such action made directly or indirectly, for an immediate validation
or for a future one, shall be void.

      14.2 For so long as Options and/or Shares are held by the Trustee on
behalf of the Optionee, all rights of the Optionee over the Shares are personal,
can not be transferred, assigned, pledged or mortgaged, other than by will or
pursuant to the laws of descent and distribution.

15.   EFFECTIVE DATE AND DURATION OF THE ISOP

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      The ISOP shall be effective as of the day it was adopted by the Board and
shall terminate at the end of ten (10) years from such day of adoption.

16.   AMENDMENTS OR TERMINATION

      The Board may at any time, but when applicable, after consultation with
the Trustee, amend, alter, suspend or terminate the ISOP, provided that no.
amendment, alteration, suspension or termination of the ISOP shall impair the
rights of any Optionee, unless mutually agreed otherwise between the Optionee
and the Company, which agreement must be in writing and signed by both parties..
Termination of the ISOP shall not affect the Committee's ability to exercise the
powers granted to it hereunder with respect to Options granted under the ISOP
prior to the date of such termination.

17.   GOVERNMENTAL REGULATIONS

      The ISOP, and the granting and exercise of Options hereunder, and the
obligation of the Company to sell and deliver Shares under such Options, shall
be subject to all applicable laws, rules, and regulations, whether of the State
of Israel or of the United States or any other State having jurisdiction over
the Company and the Optionee, including the registration of the Shares under the
United States Securities Act of 1933, and the Ordinance and to such approvals by
any governmental agencies or national securities exchanges as may be required.
Nothing herein shall be deemed to require the Company to register the Shares
under the securities laws of any jurisdiction.

18.   CONTINUANCE OF EMPLOYMENT OR HIRED SERVICES

      Neither the ISOP nor the Option Agreement with the Optionee shall impose
any obligation on the Company or an Affiliate thereof, to continue any Optionee
in its employ or service, and nothing in the ISOP or in any Option granted
pursuant thereto shall confer upon any Optionee any right to continue in the
employ or service of the Company or an Affiliate thereof or restrict the right
of the Company or an Affiliate thereof to terminate such employment or service
at any time.

19.   GOVERNING LAW & JURISDICTION

      The ISOP shall be governed by and construed and enforced in accordance
with the laws of the State of Israel applicable to contracts made and to be
performed therein, without giving effect to the principles of conflict of laws.
The competent courts of Tel-Aviv, Israel shall have sole jurisdiction in any
matters pertaining to the ISOP.

20.   TAX CONSEQUENCES

      20.1 Any tax consequences arising from the grant or exercise of any
Option, from the payment for Shares covered thereby or from any other event or
act (of the Company and/or its Affiliates, the Trustee or the Optionee),
hereunder, shall be borne solely by the Optionee. The Company and/or its
Affiliates and/or the Trustee shall withhold taxes according to the requirements
under the applicable laws, rules, and regulations, including withholding taxes
at source. Furthermore, the Optionee shall agree to indemnify the Company and/or
its Affiliates and/or the Trustee and hold them harmless against and from any
and all liability for any such tax or interest or penalty thereon, including
without limitation, liabilities relating to the necessity to withhold, or to
have withheld, any such tax from any payment made to the Optionee.

                                       11
<PAGE>

      20.2 The Company and/or, when applicable, the Trustee shall not be
required to release any Share certificate to an Optionee until all required
payments have been fully made.

21.   NON-EXCLUSIVITY OF THE ISOP

      The adoption of the ISOP by the Board shall not be construed as amending,
modifying or rescinding any previously approved incentive arrangements or as
creating any limitations on the power of the Board to adopt such other incentive
arrangements as it may deem desirable, including, without limitation, the
granting of Options otherwise than under the ISOP, and such arrangements may be
either applicable generally or only in specific cases.

22.   MULTIPLE AGREEMENTS

      The terms of each Option may differ from other Options granted under the
ISOP at the same time, or at any other time. The Board may also grant more than
one Option to a given Optionee during the term of the ISOP, either in addition
to, or in substitution for, one or more Options previously granted to that
Optionee.

                                       12Exhibit 10.11

                             MEMORANDUM OF AGREEMENT

THIS MEMORANDUM OF AGREEMENT (the "MOA") is made and entered into this 23rd day
of June 2003 by and between RADA Electronic Industries Ltd. ("RADA" or the
"Company"), Howard Yeung and/or its affiliates ("HY"), Bank Hapoalim B.M.
("BNHP") and Bank Leumi Le-Israel B.M. ("BLL" and together with BNHP - the
"Banks"). Each of BNHP and BLL may also be referred to herein as a "Bank".

The Parties hereby agree as follows:

1.    Definitions
      -----------

      In this MOA the following capitalized terms shall have the meaning
ascribed to them as follows:

      "Banks' Warrants" means warrants to purchase such number of Shares, which
is equal to the quotient determined by dividing the Conversion Amount by 50% of
the Base Price.

      "Base Price" means the Market Price as calculated at the Closing Date.

      "Business Day" means a day (other than Saturday and Sunday) on which banks
are normally fully open in Tel Aviv, London and New York for general (including
inter-bank) business.

      "Closing" means two business days after the approval of the shareholders
of the Company at an Extraordinary General Meeting ("EGM") (or the adjourned
EGM, if necessary).

      "Debt" means the total amount of the Company's debts to the Banks, which
is equal to approximately US$5,500,000 (Five Million and Five Hundred Thousands
US Dollars).

      "Market Price" means the average daily closing per share price of the
Shares on NASDAQ during the last 90 business days prior to the date that such
price is calculated.

      "Options" means the Call Option or the Put Option, as the case may be.

      "Pro-rata Proportion" means a prorated allocation reflecting a 40% share
to BNHP and 60% share to BLL.

                                       1
<PAGE>

      "Shares" means the Ordinary Shares, NIS 0.05 each, of the Company.

2.    Settlement of the Debt
      ----------------------

      At the Closing:

      2.1 The Company shall pay the Banks an aggregate amount of US$1,100,000
(One Million One Hundred Thousand US Dollars) (the "Cash Payment"), payable to
each in accordance with the Pro-rata Proportion.

      2.2 At the Closing, simultaneously with the fulfillment of all of the
Company's obligations described in this Agreement and HY's obligations with
respect to the execution of the Options Agreement and the delivery of the
stand-by letter of credit as described in Section 3 hereof, the Banks shall
release and discharge the Company from its obligation to pay the amount of
US1,100,000 (the "Discharge"), in accordance with the Pro-Rata Proportion and
each of the Banks shall write off and reduce the principal of the Company's
debts (as described in Schedule "A" attached hereto) to it by an amount equal to
each Bank's Pro-rata Proportion of the Discharge.

      2.3 An additional amount of US$1,251,000 (One Million Two Hundred
Fifty-One Thousand US Dollars) (the "Conversion Amount") shall be paid against
the issuance of the Banks' Warrants, and the Company shall deliver to each of
the Banks at the Closing warrants reflecting each Bank's share in accordance
with the Pro-rata Proportion and bearing legends as required by any applicable
law and the limitations on transfer included herein. Except as expressly
provided herein, the terms of the Banks' Warrants shall be substantially similar
to the terms of the warrant issued by the Company on June 30, 2002 (a copy of
which is attached hereto as Schedule "B"). The exercise price of the Banks'
Warrants shall be the nominal (par) value of the Shares. The Banks' Warrants
will be locked-up for a period of 21 months commencing at the Closing Date (the
"Lock-up Period"), and may not be transferred in any manner to any third party
except pursuant to the Options. The Banks' Warrant shall not be exercisable
during the Lock-up Period, unless any of the Options is exercised. Unless agreed
otherwise between the Company and the holder of the Banks' Warrants, the Banks'
Warrants shall be valid for a period of 30 months commencing at the Closing Date

      2.4 The Company shall grant the Banks additional warrants to purchase an
aggregate 1,100,000 Shares, each Bank to receive its Pro-rata Proportion of such
aggregate amount, at an exercise price of US$2 per Share. Such warrants shall be
effective for 5 years and shall include terms and conditions substantially
similar to the warrant issued by the Company on June 30, 2002, a copy of which
is attached hereto as Schedule "B".

      2.5 For the avoidance of doubt it is agreed that at the Closing, all the
transactions described in this Agreement shall occur simultaneously (no
transaction shall be deemed to have been completed or any document delivered
until all such transactions have been completed and all required documents
delivered).

                                       2
<PAGE>

3.    Options
      -------

      3.1 At the Closing, HY shall grant the Banks a put option (the "Put
Option"), allowing the Banks (severally and not jointly) to require HY to
purchase the Banks' Warrants held by such Bank, at the applicable Pro-rata
Proportion of an amount of US$1,251,000 (One Million, Two Hundred Fifty One
Thousand US Dollars - the " Put Option Consideration"). Such demand may be
submitted by each of the Banks only once during the period of 45 days commencing
at the first Business Day after the end of the period of 18 months commencing at
the Closing Date (including the first and last date of such period) (the "Put
Option Period"). HY's obligations under the Put Option shall be secured by
stand-by letters of credit in a such form as shall be reasonably satisfactory to
the Banks, issued to each of the Banks by an international bank reasonably
satisfactory to the Banks that shall be delivered by HY to the Banks at the
Closing.

      3.2 At the Closing, the Banks (severally and not jointly) shall grant HY a
Call Option allowing HY to require each of the Banks to sell HY the Banks'
Warrants held by such Bank (the "Call Option") at a price that shall be equal to
such Bank's applicable Pro-rata Proportion of $1,251,000 (the "Call Option
Consideration"); provided, however, that if the Market Price at the date that
the Call Option is exercised (the "Effective Price") is higher than the Base
Price, HY shall pay the applicable Bank an additional amount (the "Additional
Payment") for the Banks' Warrants purchased by HY as follows:

            3.2.1 In the event that the Effective Price is greater than the Base
Price and is equal to not more than 150% of the Base Price - the Additional
Payment will be equal to 25% of the difference between the Base Price and the
Effective Price (multiplied by the actual number of the purchased Banks'
Warrants), but in any event not more than $312,750 (Three Hundred Twelve
Thousand, Seven Hundred and Fifty US Dollars).

            3.2.2 In the event that the Effective Price is greater than the Base
Price and is higher than 150% of the Base Price - the Additional Payment shall
be equal to $312,750 plus 16.5% of the difference between 150% of the Base Price
and the Effective Price (multiplied by the actual number of purchased Banks'
Warrants) but in any event the Additional Payment shall not be more than
$519,165 (Five Hundred Nineteen Thousand, One Hundred and Sixty Five US
Dollars).

            3.2.3 In any event the Aggregate Consideration (i.e., the Call
Option Consideration plus the Additional Payment) shall not exceed the amount of
$1,770,165 (One Million Seven Hundred Seventy Thousand, One Hundred and
Sixty-Five US Dollars).

      3.3 The Call Option may be exercised by HY only during a period of 18
(eighteen) months commencing at the Closing Date (including the first and the
last date of such period) and during a period of 45 days commencing on the first
Business Day

                                       3
<PAGE>

after the termination of the Put Option Period (both periods are collectively
referred to as the "Call Option Period").

4.    Financing
      ---------

      4.1 Subject to Clause 4.2 below, the Banks shall grant RADA an additional
line of credit in the amount of $500,000 (Five Hundred Thousand US Dollars) (the
"Credit"). Such Credit shall be granted to the Company as of the Closing, in
accordance with each Bank's Pro-rata Proportion, and shall be repaid by the
Company within 7 months of the Closing. All current charges of the Company shall
secure the repayment of the Credit. The Company shall, at the request of the
Banks, sign such amendments of existing security documents as may be reasonably
required to give effect to the foregoing.

      4.2 The terms of the Credit shall be those customary at the Banks at the
time of the granting thereof and shall be agreed between the Company and the
Banks prior to the granting of the Credit or any part thereof. The Company
shall, at the request of the Banks, sign such documents as may be reasonably
required in order to grant such Credit.

5.    Deemed Payment and Balance of the Debt
      --------------------------------------

      The fulfillment of the Company's obligations described in this Agreement
and HY's obligations with respect to the execution of the Options Agreement and
the delivery of the stand-by letter of credit as described in Section 3 hereof
shall constitute and shall be deemed full and final payment and satisfaction of
the amount of US$3,451,000 of the Debt, being the sum of the Cash Payment, the
Discharge and the Conversion Amount (the "Settled Amount") in accordance with
the Pro-Rata Proportion, and the Banks shall have no further claims towards the
Company in connection with the Settled Amount or in relation thereto.

      The terms and conditions relating to the Balance of the Debt Following the
Closing (as defined below) owed by the Company to the Banks shall be as agreed
upon by the Company and each of the Banks (severally and not jointly) and the
Company shall sign all documents reasonably required by the Banks in connection
thereto.

      "Balance of the Debt Following the Closing" means the amount equal to the
Debt less the Settled Amount.

6.    Final Agreement
      ---------------

      The parties shall enter into final agreement(s) based on the principles
and provisions set forth herein. Such agreement(s) shall include, inter alia,
customary representations of the Company and the Banks and the mechanism and
procedures regarding the Options to the Banks' full satisfaction and will be
signed not later than July 31, 2003.

                                       4
<PAGE>

7.    Closing
      -------

      7.1 The Closing of the transactions contemplated herein is subject to the
approval of the EGM of the shareholders of the Company.

      7.2 Subject to the fulfillment of the condition set forth in Section 7.1
above, the Closing of the transactions contemplated herein shall take place not
later than July 31, 2003.

8.    Stamp Duty
      ----------

      Stamp duty, if applicable, to this Memorandum of Agreement or in respect
of any other documents referred to herein including without limitation any
documents in relation to the Credit, is to be paid by the Company forthwith upon
the Bank's first demand.

9.    Miscellaneous
      -------------

      9.1 For the avoidance of doubt, the Company hereby confirms that nothing
herein contained is meant to prejudice and/or limit any rights whatsoever of the
Banks pursuant to the BLL and/or the BNHP account documents, the loan documents,
guarantees signed by the Company, and/or pursuant to any other document signed
and/or to be signed by the Company and that all obligations and debts owed to
the Banks are in full force without amendment subject to the terms hereof.

      9.2 The waiver by the Banks of any prior breach of, or prior non
fulfillment of one or more of the Company's obligations to the Banks, whether
contained in this Agreement or in any other document, shall not be construed as
justification or excuse for any further breach or non fulfillment of any
condition or undertaking as mentioned above.

      9.3 The forbearance of the Banks from the exercise of any right granted to
it under this document or under any law shall not be construed as a waiver of
any such right.

      9.4 The Company acknowledges that the Banks have agreed to the terms of
the present Agreement to settle the debts of the Company in light of the
representations of the Company contained herein and in Schedule "A " attached
hereto.

      9.5 Any amendment to the terms hereof must be made in writing and must be
agreed to by all the parties hereto.

      9.6 Any notice to be given by any of the parties hereto in accordance with
the terms of the present Agreement shall be given to the other parties at the
address that appears in the heading hereof, and shall be deemed to have been
given to the addressee on the date received by the addressee or on his behalf,
or if sent by registered mail to the

                                       5
<PAGE>

above addresses, within 72 hours from the date of delivery to the post office
whichever is the sooner.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

                                       6
<PAGE>

IN WITNESS WHEREOF the parties have signed this MOA as of the date first
hereinabove set forth.

HOWARD P. L. YEUNG                            BANK HAPOALIM B.M.

By: ____________________________              By: ______________________________
                                              Name:_____________________________
                                              Title:____________________________

RADA ELECTRONIC INDUSTRIES LTD.               BANK LEUMI LE-ISRAEL B.M.

By: ____________________________              By: ______________________________
Name:___________________________              Name:_____________________________
Title:__________________________              Title:____________________________

                                       7
<PAGE>

                                  SCHEDULE "A"
                         to the Memorandum of Agreement
                      ("the Agreement") dated June __, 2003
                   between Bank Leumi le-Israel B.M. ("BLL"),
                           Bank Hapoalim B.M. ("BNHP")
                       (BLL and BNHP together the "Banks")
               and Rada Electronic Industries Ltd. (the "Company")

The parties hereby represent, warrant and declare as follows:

1.    Indebtedness and Obligations of the Company to the Banks
      --------------------------------------------------------

      1.1.  Indebtedness and Obligations to BLL
            -----------------------------------

            1.1.1.  The Company hereby acknowledges and confirms that the
                    balance of amounts owed by the Company to BLL, as of June
                    18, 2003 (the "Determining Date") 2003 in respect of loans,
                    credits and other banking services received from BLL is as
                    follows:

            1.1.2.  The debit balance in current account no. 54700/06 ("the BLL
                    Account") in the amount of 88,939 NIS (Eighty-eight thousand
                    nine hundred and thirty nine New Israeli Shekels) including
                    interest, fees, bank charges and expenses as of the
                    Determining Date.

            1.1.3.  The unpaid balance in the amount of $ 3,462,744 (Three
                    million four hundred and sixty-two thousand seven hundred
                    and forty-four US dollars) in respect of the loan in the
                    amount of $3,451,000 (Three million four hundred and
                    fifty-one US dollars) that was granted to the Company on May
                    28, 2003 ("the Balance of the Existing BLL Loan").

            1.1.4.  Interest, fees and expenses set out in the banking documents
                    signed by the Company in favor of BLL in connection with the
                    operation of the BLL Account not reflected above will be
                    added to amounts stated in clauses 1.1.2 and 1.1.3.

      1.2.  Indebtedness and Obligations to BNHP
            ------------------------------------

            1.2.1.  The Company hereby acknowledges and confirms that the
                    balance of amounts owed by the Company to BNHP, as of the
                    Determining Date in respect of loans, credits and other
                    banking services received from BNHP is as follows:

            1.2.2.  The line of credit in NIS current account no. 21118 ("the
                    BNHP I Account") in the amount of 1,250,000 NIS (one
                    million, two hundred and fifty thousand New Israeli Shekels)
                    including interest, fees, bank charges and expenses as of
                    the Determining Date.

            1.2.3.  The debit balance in NIS current account no. 415955 ("the
                    BNHP II Account") in the amount of 2,199,982 NIS (two
                    million, one hundred ninety nine thousand nine hundred and
                    eighty two New Israeli Shekels) including interest, fees,
                    bank charges and expenses as of the Determining Date.

                                       1
<PAGE>

            1.2.4.  The debit balance in foreign currency current account no.
                    415955 ("the BNHP III Account") in the amount of $ 1,000,000
                    (one million $US) including interest, fees, bank charges and
                    expenses as of the Determining Date. It is hereby agreed
                    that upon the Closing the line of credit applicable in the
                    BNHP III Account shall be cancelled.

                    The BNHP I Account, BNHP II Account and BNHP III Account
                    together the "BNHP Accounts"

            1.2.5.  The unpaid balance in the amount of $410,484 (four hundred
                    and ten thousand, four hundred and eighty four $US) in
                    respect of the loan in the amount of $ 455,000 (four hundred
                    fifty five thousands $US) that was granted to the Company on
                    January 2, 2003 ("the Balance of the Existing BNHP Loan").

            1.2.6.  Interest, fees and expenses set out in the banking documents
                    signed by the Company in favor of BNHP in connection with
                    the operation of the BNHP Accounts and the Existing BNHP
                    Loan, not reflected above will be added to amounts stated in
                    clauses 1.2.2 -1.2.5 (inclusive) above.

            1.2.7.  Furthermore BNHP has issued at the Company's request, bank
                    guarantees in favor of third parties in the amount of
                    $1,501,000 (one million five hundred and one thousand $US)
                    plus an amount of 76,173 Euro (seventy six thousand, one
                    hundred seventy three Euro) plus an amount of 7,212,648 NIS
                    (seven millions two hundred and twelve thousand, six hundred
                    and forty eight New Israeli Shekels), as of June 18, 2003

      (The amounts set out in clauses 1.1 and 1.2 above and the interest, fees
      and expenses described above shall be referred to as the "Balance of the
      Debt").

      1.3.  For the avoidance of doubt, the forgoing shall be without prejudice
            and shall not in any way derogate from any rights of the Banks in
            respect of any debt, guarantee, and/or obligation whatsoever, not
            described above, in the event it is determined that such debt
            exists.

2.    Confirmation of the Accuracy of the Accounts and Waiver of Claims
      -----------------------------------------------------------------

      2.1.  The Company hereby confirms that the balances in all of the
            Company's accounts and deposits of any type whatsoever, including
            savings plans and securities deposits, with the Banks and every
            credit or loan ever received by the Company from the Banks, and all
            activities, transfers, payments, debits and credits or other
            activity in the aforesaid accounts and deposits have been verified
            by the Company and the Company confirms that it has no claim and
            shall not have any claim whatsoever in respect of the Balance of the
            Debt and/or with respect to the aforesaid activities.

      2.2.  The Company confirms that every debit and/or credit of interest,
            linkage differentials, exchange rate differentials, fees, handling
            charges, expenses etc. that have been incurred or made in the
            accounts and deposits of the Company maintained by the Company in
            the Banks, of any type whatsoever, at any time, including

                                       2
<PAGE>

            debitory accounts, chequing accounts, savings plans, securities
            deposits, loans and any other deposit or account of the Company with
            the Banks have been verified by the Company and found to be accurate
            and that there are no and shall be no claims whatsoever in respect
            of the various interest rates, rates of index linked differentials
            and/or foreign currency, and/or other rates, fees, handling charges,
            and/or expenses, and/or other debits and/or credits whatsoever made
            in the Company's aforesaid accounts and deposits, the dates of
            modification, the calculation, the manner and time of notice in
            respect of same, the manner of charging same and the debit and/or
            repayment of credits and/or loans ever granted to the Company.

      2.3.  The Company confirms that any account, cash or other deposit,
            savings plan or securities deposit, existing or that was existing
            with the Banks in the name of the Company, alone or with others,
            (the "Aforementioned Deposits") were opened at the request of the
            Company in accordance with the Company's own motives, and that the
            opening thereof was not a condition to the granting of credit,
            service or asset whatsoever by the Banks to the Company or to any
            corporate entity related to the Company in any way and/or to any
            third party whatsoever, and it was never stated or inferred by the
            Banks, or on behalf of the Banks, to anyone that the opening of the
            Aforementioned Deposits is such a condition, and that if the Banks
            or anyone on their behalf agreed or undertook, to grant to the
            Company and/or to a corporate entity and/or to a third party as
            mentioned above, credit, services or assets whatsoever including
            credit, services or assets that were supposed to be granted before,
            after or concurrently with the opening of the Aforementioned
            Deposits), the abovementioned agreement and/or undertaking - and the
            performance thereof , if performed, was granted or performed by the
            Banks without any connection or relation whatsoever, to the opening
            of the Aforementioned Deposits.

      2.4.  The Company hereby provides BLL with irrevocable instructions to
            immediately prepay the Balance of the Existing BLL Loans and to
            debit the Company's BLL Account in the amount of the Balance of the
            Existing BLL Loans together with breakage costs and penalties
            payable pursuant to the prepayment of the Balance of the BLL
            Existing Loans.

      2.5.  The Company hereby provides BNHP with irrevocable instructions to
            immediately prepay the Balance of the Existing BNHP Loans and to
            debit the Company's BNHP Account in the amount of the Balance of the
            BNHP Existing Loans together with breakage costs and penalties
            payable pursuant to the prepayment of the Balance of the BNHP
            Existing Loans.

      3.    Additional Security
            -------------------

            3.1.  The full and exact repayment of the amounts due, and becoming
                  due or that may become due to the Banks from the Company, in
                  any way whatsoever and for any reason whatsoever, including
                  without derogating from the generality of the foregoing, on
                  account of, or in relation to, the Balance of the Debt and/or
                  the Credit shall be secured by the following collateral:

            3.1.1.  The existing Floating Charge Debenture granted to each of
                    the Banks;

                                       3
<PAGE>

            3.1.2.  All other collateral security signed by the Company in favor
                    of each of the Banks;

      The Company undertakes to sign all documents that may be reasonably
      required by the Banks, in the form that will be provided to the Company by
      the Banks and to furnish all certificates and/or documents required in
      connection with the abovementioned security and undertakings.

4.    Definitions
      -----------

      4.1   Unless otherwise defined in this Schedule, all capitalized terms in
            this Schedule shall have the meaning set forth in the Agreement.

             THE REMAINDER OF THIS PAGE WAS INTENTIONALLY LEFT BLANK

                                       4
<PAGE>

AND THE PARTIES HAVE SIGNED

BANK HAPOALIM B.M.                           BANK LEUMI LE-ISRAEL B.M.

By:________________________________          By:________________________________

Name:______________________________          Name:______________________________

Date:______________________________          Date:______________________________

RADA ELECTRONIC INDUSTRIES LTD.

By:________________________________

Name:______________________________

Date:______________________________

                                       5
<PAGE>

SCHEDULE B TO THE MEMORANDUM OF AGREEMENT

NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT")
OR ANY OTHER APPLICABLE SECURITIES LAWS IN RELIANCE UPON AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER SECURITIES LAWS.
NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF MAY BE SOLD,
PLEDGED, TRANSFERRED, ENCUMBERED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR IN A TRANSACTION
WHICH IS EXEMPT FROM REGISTRATION UNDER THE PROVISIONS OF THE SECURITIES ACT.

VOID AFTER TERMINATION DATE

                                     WARRANT

                     To Purchase ________ Ordinary Shares of

                         RADA ELECTRONIC INDUSTRIES LTD.

            THIS CERTIFIES that, for value received, ______________ (the
"Holder") is entitled, upon the terms and subject to the conditions set forth in
this Warrant effective as of June 30, 2002 (the "Effective Date") at any time on
or after the effective date and on or prior to the close of business on June 30,
2007 (the "Termination Date") but not thereafter, to subscribe for and purchase
from RADA Electronic Industries Ltd., a company incorporated under the laws of
the State of Israel (the "Company"), up to ______ Ordinary Shares of the
Company, nominal value NIS 0.005 each (the "Warrant Shares") at a purchase price
as detailed in Section 2 hereof (the "Exercise Price"). The Exercise Price and
the number of shares for which the Warrant is exercisable shall be subject to
adjustment as provided herein.

                  1. Title to Warrant. Prior to the Termination Date and subject
to compliance with applicable laws and the provisions of Section 8 hereof, this
Warrant and all rights hereunder are transferable, in whole or in part, at the
office or agency of the Company by the holder hereof in person or by duly
authorized attorney, upon surrender of this Warrant together with the Assignment
Form annexed hereto properly endorsed.

                  1. 2. Exercise Price. [INTENTIONALLY DELETED]

                  2. 3. Authorization of Shares. The Company covenants that all
shares issuable upon the exercise of rights represented by this Warrant will,
upon exercise of the rights represented by this Warrant, be duly authorized and
be capable of being validly issued as fully paid and non-assessable and free
from all taxes, liens and charges in respect of the issue

                                       1
<PAGE>

thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue).

                  4. Exercise of Warrant. Exercise of the purchase rights
represented by this Warrant may be made at any time or times in whole or in part
and before the close of business on the Termination Date by the surrender of
this Warrant and the Notice of Exercise Form annexed hereto duly executed, at
the office of the Company (or such other office or agency of the Company as it
may designate by notice in writing to the registered holder hereof at the
address of such holder appearing on the books of the Company) and upon payment
of the Exercise Price of the shares thereby purchased by wire transfer or
cashier's check , whereupon the holder of this Warrant shall be entitled to
receive a certificate for the number of Warrant Shares purchased. Certificates
for Warrant Shares purchased hereunder shall be delivered to the holder hereof
within reasonable time after the date on which this Warrant shall have been
exercised as aforesaid. This Warrant shall be deemed to have been exercised and
such certificate or certificates shall be deemed to have been issued, and Holder
or any other person so designated to be named therein shall be deemed to have
become a holder of record of such shares for all purposes, as of the date the
Warrant has been exercised by payment to the Company of the Exercise Price and
all taxes required to be paid by Holder, if any, pursuant to Section 5 prior to
the issuance of such shares, have been paid. If this Warrant shall have been
exercised in part, the Company shall, at the time of delivery of the certificate
or certificates representing Warrant Shares, deliver to Holder a new Warrant
evidencing the rights of Holder to purchase the unpurchased Warrant Shares
called for by this Warrant, which new Warrant shall in all other respects be
identical with this Warrant.

                  3. 5. No Fractional Shares or Scrip. No fractional shares or
scrip representing fractional shares shall be issued upon the exercise of this
Warrant. As to any fraction of a share that the Holder would otherwise be
entitled to purchase upon such exercise, the Company shall round the number of
Warrant Shares issuable upon such exercise to next whole number.

                  4. 6. Charges, Taxes and Expenses. Issuance of certificates
for Warrant Shares upon the exercise of this Warrant shall be made without
charge to the holder hereof for any issue or transfer tax or other incidental
expense in respect of the issuance of such certificate, all of which taxes and
expenses shall be paid by the Company, and such certificates shall be issued in
the name of the holder of this Warrant or in such name or names as may be
directed by the holder of this Warrant; provided, however, that in the event
certificates are to be issued in a name other than the name of the Holder, this
Warrant when surrendered for exercise shall be accompanied by the Assignment
Form attached hereto duly executed by the Holder hereof; and the Company may
require, as a condition thereto, the payment of a sum sufficient to reimburse it
for any transfer tax incidental thereto.

                  5. 7. Closing of Books. The Company will not close its
shareholder books or records in any manner that prevents the timely exercise of
this Warrant.

                  6. 8. Transfer, Division and Combination. (a) Subject to
compliance with any applicable securities laws, transfer of this Warrant and all
rights hereunder, in whole or in part, shall be registered on the books of the
Company to be maintained for such

                                       2
<PAGE>

purpose, upon surrender of this Warrant at the principal office of the Company,
together with he Assignment Form attached hereto duly executed by Holder or its
agent or attorney and funds sufficient to pay any transfer taxes payable upon
the making of such transfer. Upon such surrender and, if required, such payment,
the Company shall execute and deliver a new Warrant or Warrants in the name of
the assignee or assignees and in the denomination or denominations specified in
such instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall
promptly be cancelled. A new holder for the purchase of Warrant Shares, if
properly assigned, may exercise a Warrant, without having a new Warrant issued.

                  (b) This Warrant may be divided or combined with other
Warrants upon presentation hereof at the aforesaid office of the Company,
together with a written notice specifying the names and denominations in which
new Warrants are to be issued, signed by Holder or its agent or attorney.
Subject to compliance with Section 8(a), as to any transfer which may be
involved in such division or combination, the Company shall execute and deliver
a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided
or combined in accordance with such notice.

                  (c) The Company shall prepare, issue and deliver at its own
expense (other than transfer taxes) the new Warrant or Warrants under this
Section 8.

                  7. 9. No Rights as Shareholder until Exercise. This Warrant
does not entitle the holder hereof to any voting rights or other rights as a
shareholder of the Company prior to the exercise hereof. Upon the surrender of
this Warrant and the payment of the aggregate Exercise Price, the Warrant Shares
so purchased shall be and be deemed to be issued to such holder as the record
owner of such shares as of the close of business on the later of the date of
such surrender or payment.

                  8. 10. Loss, Theft, Destruction or Mutilation of Warrant. The
Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
or any share certificate relating to the Warrant Shares, and in case of loss,
theft or destruction, of indemnity or security reasonably satisfactory to it
(which shall not include the posting of any bond), and upon surrender and
cancellation of such Warrant or share certificate, if mutilated, the Company
will make and deliver a new Warrant or share certificate of like tenor and dated
as of such cancellation, in lieu of such Warrant or stock certificate.

                  9. 11. Saturdays, Sundays, Holidays, etc. If the last or
appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a business day including' without
limitation, Saturday, Sunday or a legal holiday in Israel or in the US, then
such action may be taken or such right may be exercised on the next succeeding
day not a Saturday, Sunday or legal holiday.

                  10. 12. Adjustments of Exercise Price and Number of Warrant
Shares. (a) The number and kind of securities purchasable upon the exercise of
this Warrant and the Exercise Price shall be subject to adjustment from time to
time upon the happening of any of the following: (i) In case the Company shall
declare or pay a dividend in shares or make a

                                       3
<PAGE>

distribution in shares to holders of its outstanding Ordinary Shares, (ii) In
case the Company shall subdivide its outstanding Ordinary Shares into a greater
number of shares, or (iii) combine its outstanding Ordinary Shares into a
smaller number of shares, then the number of Warrant Shares purchasable upon
exercise of this Warrant immediately prior thereto shall be adjusted so that the
holder of this Warrant shall be entitled to receive the kind and number of
Warrant Shares or other securities of the Company which he would have owned or
have been entitled to receive had such Warrant been exercised in advance
thereof. Upon each such adjustment of the kind and number of Warrant Shares or
other securities of the Company which are purchasable hereunder, the holder of
this Warrant shall thereafter be entitled to purchase the number of Warrant
Shares or other securities resulting from such adjustment at an Exercise Price
per Warrant Share or other security obtained by multiplying the Exercise Price
in effect immediately prior to such adjustment by the number of Warrant Shares
purchasable pursuant hereto immediately prior to such adjustment and dividing by
the number of Warrant Shares or other securities of the Company resulting from
such adjustment. An adjustment made pursuant to this paragraph shall become
effective immediately after the effective date of such event retroactive to the
record date, if any, for such event.

                  (b) In case the Company shall reorganize its capital,
reclassify its capital, consolidate or merge with or into another corporation
(where the Company is not the surviving corporation or where there is a change
in or distribution with respect to the Ordinary Shares of the Company), or sell,
transfer or otherwise dispose of all or substantially all its property, assets
or business to another corporation and, pursuant to the terms of such
reorganization, reclassification, merger, consolidation or disposition of
assets, Ordinary Shares or shares of common stock of the successor or acquiring
corporation, or any cash, shares of stock or other securities or property of any
nature whatsoever (including warrants or other subscription or purchase rights)
in addition to or in lieu of common stock of the successor or acquiring
corporation ("Other Property"), are to be received by or distributed to the
holders of Ordinary Shares of the Company, then Holder shall have the right
thereafter to receive, upon exercise of this Warrant, the number of shares of
common stock of the successor or acquiring corporation or of the Company, if it
is the surviving corporation, and Other Property receivable upon or as a result
of such reorganization, reclassification, merger, consolidation or disposition
of assets by a holder of the number of Ordinary Shares for which this Warrant is
exercisable immediately prior to such event. In case of any such reorganization,
reclassification, merger, consolidation or disposition of assets, the successor
or acquiring corporation (if other than the Company) shall expressly assume the
due and punctual observance and performance of each and every covenant and
condition of this Warrant to be performed and observed by the Company and all
the obligations and liabilities hereunder, subject to such modifications as may
be deemed appropriate (as determined in good faith by resolution of the Board of
Directors of the Company) in order to provide for adjustments of Warrant Shares
for which this Warrant is exercisable which shall be as nearly equivalent as
practicable to the adjustments provided for in this Section 11. For purposes of
this Section 12, "common stock of the successor or acquiring corporation" shall
include stock of such corporation of any class which is not preferred as to
dividends or assets over any other class of stock of such corporation and which
is not subject to redemption and shall also include any evidences of
indebtedness, shares of stock or other securities which are convertible into or
exchangeable for any such stock, either immediately or upon the arrival of a
specified date or the happening of a specified event and any warrants or other
rights to subscribe for or purchase any such stock.

                                       4
<PAGE>

                  11. (c) Whenever the number of Warrant Shares or number or
kind of securities or other property purchasable upon the exercise of this
Warrant or the Exercise Price is adjusted, as herein provided, the Company shall
promptly mail by registered or certified mail, to the holder of this Warrant
notice of such adjustment or adjustments setting forth the number of Warrant
Shares (and other securities or property) purchasable upon the exercise of this
Warrant and the Exercise Price of such Warrant Shares (and other securities or
property) after such adjustment, setting forth a brief statement of the facts
requiring such adjustment and setting forth the computation by which such
adjustment was made. Such notice, in the absence of manifest error, shall be
exclusive evidence of the correctness of such adjustment.

                  12. (d) In the event that, at any time, as a result of an
adjustment made pursuant to this Section, the holder of this Warrant shall
become entitled to purchase any securities of the Company other than Ordinary
Shares, hereafter the number of such other shares so purchasable upon exercise
of this Warrant and the Exercise Price of such shares shall be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to the Warrant Shares contained in
paragraph (a) through (c) inclusive, of this Section 12.

                  13. Registration Rights; Rule 144. (a) This Warrant and the
Warrant Shares shall be restricted securities pursuant to Rule 144 of Regulation
D for a period of 12 months following the Effective Date. The Company agrees
that it will prepare and file with the Securities and Exchange Commission
("Commission"), within ninety (90) days after the approval of its Audited
Financial Statements for the year ending December 31, 2002 a registration
statement (on Form F-3, or other appropriate registration statement form) under
the Securities Act (the "Registration Statement") covering the Warrant Shares so
as to permit a non underwritten public offering and resale of the Shares and the
Warrant Shares. The Company shall bear all expenses related the filing of the
Registration Statement. The Company shall use commercially reasonable efforts to
cause such Registration Statement to become effective on the first anniversary
of the Closing Date but in any event not later than 15 months from the Closing
Date or, in the event the Commission informs the Company that the Registration
Statement will not be reviewed by the Commission, within ninety (90) days from
the filing date, and in either event, within five (5) business days of
Commission clearance to request effectiveness (but not earlier than the first
anniversary of the Closing Date). The number of shares designated in the
Registration Statement to be registered shall include all of the Warrant Shares,
and shall include appropriate language regarding reliance upon Rule 416 to the
extent permitted by the Commission. The Company will notify the Investors of the
effectiveness of the Registration Statement within two trading days of such
event.

                  13. (b) Not withstanding the above, if the Company shall
determine to register any sale or other disposition of its securities under the
Securities Act, either for its own account or the account of a security holder
or holders exercising their respective registration rights (whether or not this
Warrant has been exercised at that time), other than a registration relating
solely to employee benefit plans, or a registration relating to a corporate
re-organisation or other transaction under Rule 145, or a registration on any
registration form that does not permit secondary sales, then the Company shall
(i) give the Holder at least thirty (30) days' advance written notice thereof,
and (ii) use its best efforts, solely at the expense of the Company, to include
in such registration (and any related qualification under blue sky laws or other

                                       5
<PAGE>

compliance), and in any underwriting involved therein, all the Warrant Shares
specified in a written request made by the Holder and received by the Company
within ten (10) days after the written notice from the Company described in 13
(b) (i) above is received by the Holder. Such written request may specify all or
a part of the Warrant Shares. The rights granted to the Holder under this
Section 13 shall survive exercise of this Warrant and the issuance of Ordinary
Shares to the Holder in connection herewith.

            (c) At all times during which any Warrant Shares are outstanding,
the Company agrees to:

                  (i) Make and keep available adequate current public
information as described in Rule 144(c) under the Securities Act;

                  (ii) File with the U.S. Securities and Exchange Commission in
a timely manner all reports and other documents required of the Company under
the Securities Act and the Securities Exchange Act of 1934; and

                  (iii) Furnish to the Holder upon request (A) a written
statement by the Company as to its compliance with the requirements of
subparagraphs (i) and (ii) above, (B) a copy of the most recent annual report of
the Company, and (C) such other reports and documents of the Company as the
Holder may reasonably request to avail himself of Rule 144 or any similar rule
or regulation of the Securities and Exchange Commission allowing him to sell any
such securities without registration.

            14. 14. Notice of Corporate Action. If at any time:

                  (a) the Company shall take a record of the holders of its
Ordinary Shares for the purpose of entitling them to receive a dividend or other
distribution, or any right to subscribe for or purchase any evidences of its
indebtedness, any shares of stock of any class or any other securities or
property, or to receive any other right, or

                  (b) there shall be any capital reorganization of the Company,
any reclassification or recapitalization of the share capital of the Company or
any consolidation or merger of the Company with, or any sale, transfer or other
disposition of all or substantially all the property, assets or business of the
Company to, another corporation or,

                  (c) there shall be a voluntary or involuntary dissolution,
liquidation or winding up of the Company;

then, in any one or more of such cases, the Company shall give to Holder (i) at
least 14 days' prior written notice of the date on which a record date shall be
selected for such dividend, distribution or right or for determining rights to
vote in respect of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, liquidation or winding up, and (ii)
in the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution, liquidation or winding up, at least 14
days' prior written notice of the date when the same shall take place. Such
notice in accordance with the foregoing clause also shall specify (i) the date
on which any such record is to be taken for the purpose of such

                                       6
<PAGE>

dividend, distribution or right, the date on which the holders of Common Stock
shall be entitled to any such dividend, distribution or right, and the amount
and character thereof, and (ii) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Ordinary Shares shall be
entitled to exchange their shares for securities or other property deliverable
upon such disposition, dissolution, liquidation or winding up. Each such written
notice shall be sufficiently given if addressed to Holder at the last address of
Holder appearing on the books of the Company and delivered in accordance with
this Warrant.

                  15. 15. Authorized Shares. The Company covenants that within
180 days of the Effective Day, it will reserve from its authorized and unissued
Ordinary Shares, and keep available free from preemptive rights, a sufficient
number of Ordinary Shares to provide for the issuance of the Warrant Shares upon
the exercise of any purchase rights under this Warrant and will, at its expense,
procure such listing of such Ordinary Shares (subject to issuance or notice of
issuance) as then may be required on all stock exchanges on which the Ordinary
Shares are then listed or on NASDAQ. The Company further covenants that its
issuance of this Warrant shall constitute full authority to its officers who are
charged with the duty of executing stock certificates to execute and issue the
necessary certificates for the Warrant Shares upon the exercise of the purchase
rights under this Warrant. The Company will take all such reasonable action as
may be necessary to assure that such Warrant Shares may be issued as provided
herein without violation of any applicable law or regulation, or of any
requirements of all stock exchanges upon which the Ordinary Shares may be listed
or on NASDAQ.

                  The Company shall not by any action, including, without
limitation, amending its certificate of incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but will at all
times in good faith assist in the carrying out of all such terms and in the
taking of all such actions as may be necessary or appropriate to protect the
rights of Holder against impairment.

                  16. 16. Miscellaneous.

                  (a) Jurisdiction. This Warrant shall be binding upon any
successors or assigns of the Company. This Warrant shall constitute a contract
under the laws of State of Israel without regard to its conflict of law,
principles or rules, and be subject to the exclusive jurisdiction of the
competent court in Tel Aviv.

                  (b) Restrictions. The holder hereof acknowledges that the
Warrant Shares acquired upon the exercise of this Warrant, if not registered,
will have restrictions upon resale imposed by state and federal securities laws.

                  (c) Waiver. No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of
such right or otherwise prejudice Holder's rights, powers or remedies,
notwithstanding all rights hereunder terminate on the Termination Date.

                                       7
<PAGE>

                  (d) Limitation of Liability. No provision hereof, in the
absence of affirmative action by Holder to purchase Warrant Shares, and no
enumeration herein of the rights or privileges of Holder hereof, shall give rise
to any liability of Holder for the purchase price of any Ordinary Share or as a
shareholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

                  (e) Successors and Assigns. Subject to applicable securities
laws, this Warrant and the rights and obligations evidenced hereby shall inure
to the benefit of and be binding upon the successors of the Company and the
successors and permitted assigns of Holder. The provisions of this Warrant are
intended to be for the benefit of all Holders from time to time of this Warrant
and shall be enforceable by any such Holder or holder of Warrant Shares and all
references to the "Holder" shall include a reference to his assigns, personal
representatives and successors in title.

                  (f) Amendment. This Warrant may be modified or amended or the
provisions hereof waived with the written consent of the Company and the Holder.

                  (g) Severability. Wherever possible, each provision of this
Warrant shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provisions or the remaining provisions of this Warrant.

                  (h) Headings. The headings used in this Warrant are for the
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

                  (i) Definition of Ordinary Shares. For the purpose of this
Warrant the term "Ordinary Shares" shall mean the ordinary shares of 0.005 NIS
(New Israeli Shekels) of the Company.

                  REMAINDER OF PAGE IS INTENTIONALLY LEFT BLANK

                                       8
<PAGE>

            IN WITNESS WHEREOF, the Company has caused this Warrant to be
executed by its officer thereunto duly authorized.

Dated: September  __, 2002

                                      RADA Electronic Industries Ltd.

                                      By:_______________________________________
                                         Herzle Bodinger, President and Chairman

                                       9
<PAGE>

                               NOTICE OF EXERCISE

To:   RADA Electronic Industries Ltd.

            (1) The undersigned hereby elects to purchase ________ Ordinary
Shares (the "Shares"), of RADA Electronic Industries Ltd. pursuant to the terms
of the attached Warrant, and tenders herewith payment of the exercise price in
full, together with all applicable transfer taxes, if any.

            (2) Please issue a certificate or certificates representing said
Shares in the name of the undersigned or in such other name as is specified
below:

                    ________________________________
                    (Name)

                    ________________________________
                    (Address)
                    ________________________________

Dated:

                                                ________________________________
                                                Signature

<PAGE>
                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

            FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

_______________________________________________ whose address is

______________________________________________________________________.

_______________________________________________________________________

                                                  Dated: ______________, _______

                           Holder's Signature: _________________________________

                           Holder's Address:   _________________________________

                                               _________________________________

Signature Guaranteed:  ___________________________________________

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in an fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing
Warrant.

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