Document:

EXHIBIT 10.1

                        AMERICAN SOIL TECHNOLOGIES, INC.

                      2005 STOCK OPTION/STOCK ISSUANCE PLAN

                                   ARTICLE ONE

                               GENERAL PROVISIONS

     I. PURPOSE OF THE PLAN

     This 2005 Stock  Option/Stock  Issuance  Plan is  intended  to promote  the
interests  of  American  Soil  Technologies,  Inc.,  a  Nevada  corporation,  by
providing  eligible  persons in the  Corporation's  employ or  service  with the
opportunity  to acquire a  proprietary  interest,  or otherwise  increase  their
proprietary interest, in the Corporation as an incentive for them to continue in
such employ or service.

     Capitalized  terms herein shall have the meanings assigned to such terms in
the attached Appendix.

     II. STRUCTURE OF THE PLAN

     A. The Plan shall be divided into two (2) separate equity programs:

          (i) the Option Grant Program under which eligible  persons may, at the
     discretion of the Plan Administrator, be granted options to purchase shares
     of Common Stock, and

          (ii) the Stock Issuance  Program under which eligible  persons may, at
     the discretion of the Plan Administrator,  be issued shares of Common Stock
     directly,  either  through  the  immediate  purchase of such shares or as a
     bonus for services rendered the Corporation (or any Parent or Subsidiary).

     B. The  provisions  of  Articles  One and Four shall  apply to both  equity
programs  under the Plan and  shall  accordingly  govern  the  interests  of all
persons under the Plan.

     III. ADMINISTRATION OF THE PLAN

     A. The  Plan  shall  be  administered  by the  Board.  However,  any or all
administrative  functions otherwise exercisable by the Board may be delegated to
the Committee.  Members of the Committee  shall serve for such period of time as
the Board may  determine  and shall be  subject  to  removal by the Board at any
time.  The Board may also at any time  terminate  the functions of the Committee
and reassume all powers and authority previously delegated to the Committee.

     B. The Plan  Administrator  shall have full power and authority (subject to
the  provisions of the Plan) to establish  such rules and  regulations as it may

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deem  appropriate  for  proper  administration  of the  Plan  and to  make  such
determinations  under,  and  issue  such  interpretations  of,  the Plan and any
outstanding  options or stock  issuances  thereunder as it may deem necessary or
advisable. Decisions of the Plan Administrator shall be final and binding on all
parties who have an interest in the Plan or any option  grant or stock  issuance
thereunder.

     IV. ELIGIBILITY

     A. The persons eligible to participate in the Plan are as follows:

          (i) Employees,

          (ii) non-employee  members of the Board or the non-employee members of
     the board of directors of any Parent or Subsidiary, and

          (iii) consultants and other independent  advisors who provide services
     to the Corporation (or any Parent or Subsidiary).

     B. The Plan Administrator shall have full authority to determine,  (i) with
respect  to the  grants  made under the Option  Grant  Program,  which  eligible
persons are to receive such  grants,  the time or times when those grants are to
be made,  the number of shares to be covered by each such  grant,  the status of
the granted option as either an Incentive Option or a Non-Statutory  Option, the
time or times when each option is to become  exercisable,  the vesting  schedule
(if any)  applicable  to the option  shares and the  maximum  term for which the
option is to remain  outstanding,  and (ii) with respect to stock issuances made
under the Stock Issuance  Program,  which  eligible  persons are to receive such
issuances,  the time or times when those issuances are to be made, the number of
shares  to be  issued  to  each  Participant,  the  vesting  schedule  (if  any)
applicable  to the  issued  shares  and  the  consideration  to be  paid  by the
Participant for such shares.

     C. The Plan  Administrator  shall have the  absolute  discretion  either to
grant  options in  accordance  with the Option Grant  Program or to effect stock
issuances in accordance with the Stock Issuance Program.

     V. STOCK SUBJECT TO THE PLAN

     A. The stock  issuable  under the Plan  shall be shares of  authorized  but
unissued or  reacquired  Common  Stock.  The maximum  number of shares of Common
Stock which may be issued over the term of the Plan shall not exceed ten million
(10,000,000) shares.

     B. Shares of Common Stock subject to outstanding options shall be available
for subsequent  issuance under the Plan to the extent: (i) the options expire or
terminate  for any reason  prior to  exercise  in full;  or (ii) the options are
cancelled in accordance with the cancellation-regrant provisions of Article Two.
Unvested  shares  issued  under  the Plan and  subsequently  repurchased  by the
Corporation,  at the  option  exercise  or direct  issue  price  paid per share,
pursuant to the  Corporation's  repurchase  rights under the Plan shall be added
back to the number of shares of Common Stock  reserved  for  issuance  under the
Plan and shall  accordingly  be  available  for  reissuance  through one or more
subsequent option grants or direct stock issuances under the Plan.

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     C.  Should any  change be made to the  Common  Stock by reason of any stock
split,  stock  dividend,  recapitalization,  combination of shares,  exchange of
shares or other change affecting the outstanding Common Stock as a class without
the  Corporation's  receipt of consideration,  appropriate  adjustments shall be
made to: (i) the maximum  number and/or class of securities  issuable  under the
Plan;  and (ii) the number and/or class of securities and the exercise price per
share in effect under each  outstanding  option in order to prevent the dilution
or enlargement of benefits  thereunder.  The adjustments  determined by the Plan
Administrator shall be final, binding and conclusive. In no event shall any such
adjustments be made in connection with the conversion of one or more outstanding
shares of the Corporation's preferred stock into shares of Common Stock.

                                   ARTICLE TWO

                              OPTION GRANT PROGRAM

     I. OPTION TERMS

     Each  option  shall  be  evidenced  by one or more  documents  in the  form
approved by the Plan Administrator;  provided,  however, that each such document
shall  comply  with the terms  specified  below.  Each  document  evidencing  an
Incentive  Option shall,  in addition,  be subject to the provisions of the Plan
applicable to such options.

     A. EXERCISE PRICE.

     1. The exercise price per share shall be fixed by the Plan Administrator in
accordance with the following provisions:

          (i) The  exercise  price per share  shall not be less than one hundred
     percent  (100%) of the Fair Market  Value per share of Common  Stock on the
     option grant date.

          (ii) If the person to whom the option is granted is a 10% Stockholder,
     then the  exercise  price per share  shall not be less than one hundred ten
     percent  (110%) of the Fair Market  Value per share of Common  Stock on the
     option grant date.

     2. The exercise  price shall become  immediately  due upon  exercise of the
option and shall, subject to the provisions of Section I of Article Four and the
documents evidencing the option, be payable in cash or check made payable to the
Corporation.  Should the Common Stock be registered under Section 12 of the 1934
Act at the time the option is  exercised,  then the  exercise  price may also be
paid as follows:

          (i) in shares of Common Stock held for the requisite  period necessary
     to avoid a charge to the  Corporation's  earnings for  financial  reporting
     purposes and valued at Fair Market Value on the Exercise Date; or

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          (ii) to the extent the option is exercised for vested shares,  through
     a special  sale and  remittance  procedure  pursuant to which the  Optionee
     shall   concurrently   provide   irrevocable    instructions   (A)   to   a
     Corporation-designated  brokerage  firm to effect the immediate sale of the
     purchased  shares and remit to the  Corporation,  out of the sale  proceeds
     available on the settlement  date,  sufficient funds to cover the aggregate
     exercise  price  payable  for the  purchased  shares  plus  all  applicable
     Federal,  state  and local  income  and  employment  taxes  required  to be
     withheld  by the  Corporation  by  reason of such  exercise  and (B) to the
     Corporation to deliver the  certificates  for the purchased shares directly
     to such brokerage firm in order to complete the sale.

     Except  to the  extent  such sale and  remittance  procedure  is  utilized,
payment  of the  exercise  price for the  purchased  shares  must be made on the
Exercise Date.

     B. EXERCISE AND TERM OF OPTIONS.  Each option shall be  exercisable at such
time or times,  during  such  period  and for such  number of shares as shall be
determined by the Plan  Administrator and set forth in the documents  evidencing
the option  grant.  However,  no option  shall have a term in excess of ten (10)
years measured from the option grant date.

     C. EFFECT OF TERMINATION OF SERVICE.

     1. The following  provisions  shall govern the exercise of any options held
by the Optionee at the time of cessation of Service or death:

          (i) Should  the  Optionee  cease to remain in  Service  for any reason
     other than death, Disability or Misconduct,  then the Optionee shall have a
     period of three (3) months  following the date of such cessation of Service
     during which to exercise each outstanding option held by such Optionee.

          (ii) Should Optionee's Service terminate by reason of Disability, then
     the Optionee  shall have a period of twelve (12) months  following the date
     of such  cessation  of Service  during which to exercise  each  outstanding
     option held by such Optionee.

          (iii) If the Optionee dies while holding an outstanding  option,  then
     the personal  representative  of his or her estate or the person or persons
     to whom the option is transferred  pursuant to the  Optionee's  will or the
     laws  of   inheritance  or  the   Optionee's   designated   beneficiary  or
     beneficiaries  of  that  option  shall  have a  twelve  (12)  month  period
     following the date of the Optionee's death to exercise such option.

          (iv)  Under  no  circumstances,  however,  shall  any such  option  be
     exercisable after the specified expiration of the option term.

          (v) During the applicable post-Service exercise period, the option may
     not be exercised in the aggregate for more than the number of vested shares
     for which the option is exercisable on the date of the Optionee's cessation

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     of Service.  Upon the expiration of the applicable  exercise  period or (if
     earlier) upon the expiration of the option term, the option shall terminate
     and cease to be outstanding  for any vested shares for which the option has
     not  been  exercised.  However,  the  option  shall,  immediately  upon the
     Optionee's cessation of Service, terminate and cease to be outstanding with
     respect to any and all option  shares for which the option is not otherwise
     at the time  exercisable  or in which the Optionee is not otherwise at that
     time vested.

          (vi) Should Optionee's  Service be terminated for Misconduct or should
     Optionee   otherwise  engage  in  Misconduct  while  holding  one  or  more
     outstanding  options under the Plan, then all those options shall terminate
     immediately and cease to remain outstanding.

     2. The Plan Administrator shall have the discretion,  exercisable either at
the  time  an  option  is  granted  or at any  time  while  the  option  remains
outstanding, to:

          (i)  extend  the  period  of time for  which  the  option is to remain
     exercisable  following  Optionee's  cessation  of Service or death from the
     limited  period  otherwise in effect for that option to such greater period
     of time as the Plan Administrator  shall deem appropriate,  but in no event
     beyond the expiration of the option term; and/or

          (ii)  permit  the  option  to  be  exercised,  during  the  applicable
     post-Service exercise period, not only with respect to the number of vested
     shares of Common Stock for which such option is  exercisable at the time of
     the  Optionee's  cessation  of Service but also with respect to one or more
     additional  installments  in which the Optionee would have vested under the
     option had the Optionee continued in Service.

     D.  STOCKHOLDER  RIGHTS.  The holder of an option shall have no stockholder
rights with respect to the shares  subject to the option until such person shall
have exercised the option,  paid the exercise price and become the  recordholder
of the purchased shares.

     E. UNVESTED  SHARES.  The Plan  Administrator  shall have the discretion to
grant options which are exercisable for unvested shares of Common Stock.  Should
the Optionee cease Service while holding such unvested  shares,  the Corporation
shall have the right to repurchase, at the exercise price paid per share, any or
all of those unvested  shares.  The terms upon which such repurchase right shall
be  exercisable  (including  the  period  and  procedure  for  exercise  and the
appropriate  vesting schedule for the purchased  shares) shall be established by
the Plan Administrator and set forth in the document  evidencing such repurchase
right. The Plan  Administrator may not impose a vesting schedule upon any option
grant or the  shares  of  Common  Stock  subject  to that  option  which is more
restrictive than twenty percent (20%) per year vesting, with the initial vesting
to occur not later than one (1) year after the option grant date. However,  such
limitation  shall not be applicable to any option grants made to individuals who
are  officers of the  Corporation,  non-employee  Board  members or  independent
consultants.

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     F. FIRST  REFUSAL  RIGHTS.  Until  such time as the  Common  Stock is first
registered  under  Section 12 of the 1934 Act,  the  Corporation  shall have the
right of first refusal with respect to any proposed  disposition by the Optionee
(or any  successor  in  interest) of any shares of Common Stock issued under the
Plan.  Such right of first refusal shall be exercisable  in accordance  with the
terms  established  by the Plan  Administrator  and set  forth  in the  document
evidencing such right.

     G. LIMITED  TRANSFERABILITY OF OPTIONS.  An Incentive Stock Option shall be
exercisable  only by the  Optionee  during his or her  lifetime and shall not be
assignable  or  transferable  other  than by will or by the laws of  inheritance
following the Optionee's death. A Non-Statutory  Option may be assigned in whole
or in  part  during  the  Optionee's  lifetime  to one or  more  members  of the
Optionee's  family or to a trust  established  exclusively  for one or more such
family members or to Optionee's  former spouse, to the extent such assignment is
in  connection  with  the  Optionee's  estate  plan or  pursuant  to a  domestic
relations  order.  The  assigned  portion may only be exercised by the person or
persons who acquire a proprietary  interest in the Non-Statutory Option pursuant
to the  assignment.  The terms  applicable to the assigned  portion shall be the
same as those in effect for the option  immediately prior to such assignment and
shall  be set  forth  in such  documents  issued  to the  assignee  as the  Plan
Administrator may deem appropriate.  Notwithstanding the foregoing, the Optionee
may also designate one or more persons as the  beneficiary or  beneficiaries  of
his or her  outstanding  options  under the Plan,  and those options  shall,  in
accordance  with  such   designation,   automatically  be  transferred  to  such
beneficiary  or  beneficiaries  upon the  Optionee's  death while  holding those
options.  Such beneficiary or beneficiaries  shall take the transferred  options
subject to all the terms and conditions of the applicable  agreement  evidencing
each such transferred  option,  including (without  limitation) the limited time
period during which the option may be exercised following the Optionee's death.

     II. INCENTIVE OPTIONS

     The terms  specified  below shall be applicable  to all Incentive  Options.
Except as modified by the  provisions of this Section II, all the  provisions of
Articles  One, Two and Four shall be applicable  to Incentive  Options.  Options
which are specifically  designated as Non-Statutory Options shall not be subject
to the terms of this Section II.

     A. ELIGIBILITY. Incentive Options may only be granted to Employees.

     B. EXERCISE PRICE.  The exercise price per share shall not be less than one
hundred percent (100%) of the Fair Market Value per share of Common Stock on the
option grant date.

     C. DOLLAR  LIMITATION.  The  aggregate  Fair Market  Value of the shares of
Common Stock  (determined as of the respective date or dates of grant) for which
one or more options  granted to any Employee under the Plan (or any other option
plan of the  Corporation  or any  Parent or  Subsidiary)  may for the first time
become  exercisable as Incentive  Options during any one (1) calendar year shall
not exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the
Employee  holds two (2) or more such options  which become  exercisable  for the
first  time  in  the  same  calendar  year,  the  foregoing  limitation  on  the
exercisability  of such  options as  Incentive  Options  shall be applied on the
basis of the order in which such options are granted.

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     III. CORPORATE TRANSACTION

     A. The shares subject to each option outstanding under the Plan at the time
of a Corporate  Transaction shall  automatically  vest in full so that each such
option  shall,  immediately  prior  to  the  effective  date  of  the  Corporate
Transaction,  become  exercisable  for all of the shares of Common  Stock at the
time subject to that option and may be exercised  for any or all of those shares
as  fully-vested  shares of Common  Stock.  However,  the  shares  subject to an
outstanding  option  shall NOT vest on such an  accelerated  basis if and to the
extent:  (i) such  option is assumed  by the  successor  corporation  (or parent
thereof)  in  the  Corporate  Transaction  and  any  repurchase  rights  of  the
Corporation with respect to the unvested option shares are concurrently assigned
to such successor  corporation (or parent thereof); or (ii) such option is to be
replaced  with a cash  incentive  program  of the  successor  corporation  which
preserves the spread  existing on the unvested  option shares at the time of the
Corporate  Transaction and provides for subsequent payout in accordance with the
same vesting schedule  applicable to those unvested option shares;  or (iii) the
acceleration of such option is subject to other limitations  imposed by the Plan
Administrator at the time of the option grant.

     B. All outstanding  repurchase  rights under the Option Grant Program shall
also  terminate  automatically,  and the shares of Common Stock subject to those
terminated  rights shall immediately vest in full, in the event of any Corporate
Transaction,  except to the extent:  (i) those repurchase rights are assigned to
the successor  corporation (or parent thereof) in connection with such Corporate
Transaction;  or (ii) such accelerated vesting is precluded by other limitations
imposed by the Plan Administrator at the time the repurchase right is issued.

     C. Immediately following the consummation of the Corporate Transaction, all
outstanding  options shall terminate and cease to be outstanding,  except to the
extent assumed by the successor corporation (or parent thereof).

     D. Each option which is assumed in connection with a Corporate  Transaction
shall be appropriately  adjusted,  immediately after such Corporate Transaction,
to apply to the number and class of securities which would have been issuable to
the Optionee in consummation of such Corporate Transaction,  had the option been
exercised   immediately  prior  to  such  Corporate   Transaction.   Appropriate
adjustments  shall  also be made to:  (i) the  number  and  class of  securities
available  for  issuance  under  the Plan  following  the  consummation  of such
Corporate Transaction;  and (ii) the exercise price payable per share under each
outstanding  option,  provided the  aggregate  exercise  price  payable for such
securities  shall  remain the same.  To the  extent  the  actual  holders of the
Corporation's  outstanding  Common Stock  receive cash  consideration  for their
Common  Stock  in  consummation  of the  Corporate  Transaction,  the  successor
corporation  may, in connection with the assumption of the  outstanding  options
under this Plan,  substitute  one or more shares of its own common  stock with a
fair market value equivalent to the cash  consideration paid per share of Common
Stock in such Corporate Transaction.

     E. The Plan Administrator shall have the discretion,  exercisable either at
the time  the  option  is  granted  or at any  time  while  the  option  remains
outstanding,  to  structure  one or more  options  so that those  options  shall
automatically  accelerate  and vest in full  (and any  repurchase  rights of the
Corporation  with respect to the unvested  shares subject to those options shall
immediately terminate) upon the occurrence of a Corporate  Transaction,  whether
or not those options are to be assumed in the Corporate Transaction.

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     F. The Plan  Administrator  shall  also  have  full  power  and  authority,
exercisable  either at the time the  option is  granted or at any time while the
option remains outstanding,  to structure such option so that the shares subject
to that  option  will  automatically  vest on an  accelerated  basis  should the
Optionee's  Service terminate by reason of an Involuntary  Termination  within a
designated  period (not to exceed eighteen (18) months)  following the effective
date of any  Corporate  Transaction  in which  the  option  is  assumed  and the
repurchase  rights  applicable to those shares do not otherwise  terminate.  Any
option so  accelerated  shall remain  exercisable  for the  fully-vested  option
shares  until the  expiration  or sooner  termination  of the  option  term.  In
addition,   the  Plan  Administrator  may  provide  that  one  or  more  of  the
Corporation's  outstanding  repurchase rights with respect to shares held by the
Optionee at the time of such Involuntary Termination shall immediately terminate
on an accelerated basis, and the shares subject to those terminated rights shall
accordingly vest at that time.

     G. The portion of any Incentive  Option  accelerated  in connection  with a
Corporate  Transaction  shall remain  exercisable as an Incentive Option only to
the  extent  the  applicable  One  Hundred  Thousand  Dollar  limitation  is not
exceeded.  To the extent such dollar  limitation  is exceeded,  the  accelerated
portion of such option shall be exercisable as a Non-Statutory  Option under the
Federal tax laws.

     H. The grant of options  under the Plan shall in no way affect the right of
the  Corporation  to adjust,  reclassify,  reorganize  or  otherwise  change its
capital or business structure or to merge, consolidate,  dissolve,  liquidate or
sell or transfer all or any part of its business or assets.

     IV. CANCELLATION AND REGRANT OF OPTIONS

     The Plan Administrator  shall have the authority to effect, at any time and
from  time to  time,  with the  consent  of the  affected  option  holders,  the
cancellation  of any or all  outstanding  options under the Plan and to grant in
substitution  therefor  new options  covering  the same or  different  number of
shares of Common  Stock but with an  exercise  price per share based on the Fair
Market Value per share of Common Stock on the new option grant date.

                                  ARTICLE THREE

                             STOCK ISSUANCE PROGRAM

     I. STOCK ISSUANCE TERMS

     Shares of  Common  Stock may be  issued  under the Stock  Issuance  Program
through direct and immediate  issuances  without any intervening  option grants.
Each such stock issuance shall be evidenced by a Stock Issuance  Agreement which
complies with the terms specified below.

     A. PURCHASE PRICE.

               1.  The  purchase  price  per  share  shall  be fixed by the Plan
Administrator  but shall not be less than one hundred percent (100%) of the Fair
Market Value per share of Common Stock on the issue date. However,  the purchase

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price per share of Common  Stock issued to a 10%  Stockholder  shall not be less
than one hundred and ten percent (110%) of such Fair Market Value.

               2. Subject to the provisions of Section I of Article Four, shares
of Common  Stock may be issued under the Stock  Issuance  Program for any of the
following  items  of  consideration   which  the  Plan  Administrator  may  deem
appropriate in each individual instance:

               (i) cash or check made payable to the Corporation; or

               (ii) past services  rendered to the Corporation (or any Parent or
          Subsidiary).

     B. VESTING PROVISIONS.

     1. Shares of Common Stock issued under the Stock  Issuance  Program may, in
the discretion of the Plan  Administrator,  be fully and immediately vested upon
issuance or may vest in one or more installments  over the Participant's  period
of Service or upon attainment of specified performance objectives.  However, the
Plan  Administrator  may not impose a vesting  schedule upon any stock  issuance
effected under the Stock Issuance  Program which is more restrictive than twenty
percent (20%) per year vesting, with initial vesting to occur not later than one
(1) year after the issuance date. Such limitation  shall not apply to any Common
Stock  issuances  made to the officers of the  Corporation,  non-employee  Board
members or independent consultants.

     2.  Any  new,  substituted  or  additional  securities  or  other  property
(including  money  paid  other  than  as a  regular  cash  dividend)  which  the
Participant  may have the right to receive  with  respect  to the  Participant's
unvested  shares of Common Stock by reason of any stock  dividend,  stock split,
recapitalization,  combination  of shares,  exchange  of shares or other  change
affecting  the  outstanding  Common Stock as a class  without the  Corporation's
receipt  of  consideration  shall be  issued  subject  to (i) the  same  vesting
requirements applicable to the Participant's unvested shares of Common Stock and
(ii) such escrow arrangements as the Plan Administrator shall deem appropriate.

     3. The Participant  shall have full stockholder  rights with respect to any
shares  of  Common  Stock  issued to the  Participant  under the Stock  Issuance
Program,  whether or not the  Participant's  interest in those shares is vested.
Accordingly,  the  Participant  shall have the right to vote such  shares and to
receive any regular cash dividends paid on such shares.

     4. Should the  Participant  cease to remain in Service while holding one or
more unvested shares of Common Stock issued under the Stock Issuance  Program or
should the  performance  objectives  not be attained with respect to one or more
such  unvested  shares of Common Stock,  then those shares shall be  immediately
surrendered to the Corporation for cancellation,  and the Participant shall have
no further  stockholder  rights with respect to those shares.  To the extent the
surrendered  shares were previously  issued to the Participant for consideration
paid in cash or cash  equivalent  (including  the  Participant's  purchase-money
indebtedness),   the  Corporation  shall  repay  to  the  Participant  the  cash
consideration  paid for the  surrendered  shares  and shall  cancel  the  unpaid
principal  balance of any  outstanding  purchase-money  note of the  Participant
attributable to such surrendered shares.

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     5. The Plan  Administrator  may in its  discretion  waive the surrender and
cancellation  of one or more  unvested  shares of Common  Stock (or other assets
attributable thereto) which would otherwise occur upon the non-completion of the
vesting  schedule  applicable to those  shares.  Such waiver shall result in the
immediate vesting of the Participant's interest in the shares of Common Stock as
to which the waiver  applies.  Such waiver may be effected at any time,  whether
before or after the  Participant's  cessation  of Service or the  attainment  or
non-attainment of the applicable performance objectives.

     C. FIRST  REFUSAL  RIGHTS.  Until  such time as the  Common  Stock is first
registered  under  Section 12 of the 1934 Act,  the  Corporation  shall have the
right  of  first  refusal  with  respect  to  any  proposed  disposition  by the
Participant  (or any successor in interest) of any shares of Common Stock issued
under  the  Stock  Issuance  Program.  Such  right  of  first  refusal  shall be
exercisable in accordance with the terms  established by the Plan  Administrator
and set forth in the document evidencing such right.

     II. CORPORATE TRANSACTION

     A.  Upon  the  occurrence  of  a  Corporate  Transaction,  all  outstanding
repurchase   rights   under  the  Stock   Issuance   Program   shall   terminate
automatically, and the shares of Common Stock subject to those terminated rights
shall  immediately  vest in full,  except to the  extent:  (i) those  repurchase
rights  are  assigned  to the  successor  corporation  (or  parent  thereof)  in
connection with such Corporate Transaction;  or (ii) such accelerated vesting is
precluded by other limitations imposed by the Plan Administrator at the time the
repurchase right is issued.

     B.  The  Plan  Administrator   shall  have  the  discretionary   authority,
exercisable  either at the time the unvested shares are issued or any time while
the  Corporation's  repurchase  rights  with  respect  to  those  shares  remain
outstanding,  to provide that those rights shall  automatically  terminate on an
accelerated  basis,  and the shares of Common Stock subject to those  terminated
rights shall  immediately  vest, in the event the  Participant's  Service should
subsequently  terminate  by  reason  of  an  Involuntary  Termination  within  a
designated  period (not to exceed eighteen (18) months)  following the effective
date of any Corporate  Transaction in which those repurchase rights are assigned
to the successor corporation (or parent thereof).

     III. SHARE ESCROW/LEGENDS

     Unvested  shares may, in the Plan  Administrator's  discretion,  be held in
escrow by the Corporation until the Participant's  interest in such shares vests
or may be issued directly to the  Participant  with  restrictive  legends on the
certificates evidencing those unvested shares.

                                       10
<PAGE>
                                  ARTICLE FOUR

                                  MISCELLANEOUS

     I. FINANCING

     The Plan  Administrator  may permit any Optionee or  Participant to pay the
option  exercise  price under the Option Grant Program or the purchase price for
shares issued under the Stock  Issuance  Program by delivering a  full-recourse,
interest bearing promissory note payable in one or more installments and secured
by the purchased shares.  However, any promissory note delivered by a consultant
must be secured by  collateral  in  addition to the  purchased  shares of Common
Stock.  In no  event  may  the  maximum  credit  available  to the  Optionee  or
Participant  exceed  the sum of:  (i) the  aggregate  option  exercise  price or
purchase price payable for the purchased  shares;  plus (ii) any Federal,  state
and local income and  employment  tax liability  incurred by the Optionee or the
Participant in connection with the option exercise or share purchase.

     II. EFFECTIVE DATE AND TERM OF PLAN

     A. The Plan shall become effective when adopted by the Board, but no option
granted under the Plan may be exercised, and no shares shall be issued under the
Plan,  until the Plan is approved  by the  Corporation's  stockholders.  If such
stockholder approval is not obtained within twelve (12) months after the date of
the Board's adoption of the Plan, then all options  previously granted under the
Plan shall terminate and cease to be  outstanding,  and no further options shall
be  granted  and no shares  shall be issued  under  the  Plan.  Subject  to such
limitation,  the Plan Administrator may grant options and issue shares under the
Plan at any time after the effective  date of the Plan and before the date fixed
herein for termination of the Plan.

     B. The Plan shall terminate upon the earliest of: (i) the expiration of the
ten (10) year  period  measured  from the date the Plan is adopted by the Board;
(ii) the date on which all shares  available  for issuance  under the Plan shall
have been issued as vested shares;  or (iii) the  termination of all outstanding
options in  connection  with a Corporate  Transaction.  All options and unvested
stock issuances  outstanding at the time of a clause (i) termination event shall
continue to have full force and effect in accordance  with the provisions of the
documents evidencing those options or issuances.

     III. AMENDMENT OF THE PLAN

     A. The Board shall have complete and exclusive power and authority to amend
or  modify  the  Plan in any or all  respects.  However,  no such  amendment  or
modification  shall adversely  affect the rights and obligations with respect to
options or  unvested  stock  issuances  at the time  outstanding  under the Plan
unless  the  Optionee  or  the   Participant   consents  to  such  amendment  or
modification.  In addition,  certain amendments may require stockholder approval
pursuant to applicable laws and regulations.

     B. Options may be granted  under the Option Grant Program and shares may be
issued under the Stock Issuance  Program which are in each instance in excess of
the number of shares of Common Stock then available for issuance under the Plan,
provided any excess shares actually issued under those programs shall be held in

                                       11
<PAGE>
escrow until there is obtained stockholder approval of an amendment sufficiently
increasing the number of shares of Common Stock available for issuance under the
Plan.  If such  stockholder  approval is not obtained  within twelve (12) months
after the date the first such excess grants or issuances are made, then: (i) any
unexercised  options  granted on the basis of such excess shares shall terminate
and cease to be outstanding;  and (ii) the Corporation  shall promptly refund to
the Optionees and the  Participants  the exercise or purchase price paid for any
excess shares  issued under the Plan and held in escrow,  together with interest
(at the applicable  Short Term Federal Rate) for the period the shares were held
in escrow, and such shares shall thereupon be automatically  cancelled and cease
to be outstanding.

     IV. USE OF PROCEEDS

     Any cash proceeds  received by the  Corporation  from the sale of shares of
Common Stock under the Plan shall be used for general corporate purposes.

     V. WITHHOLDING

     The  Corporation's  obligation  to deliver  shares of Common Stock upon the
exercise of any options  granted  under the Plan or upon the issuance or vesting
of any shares issued under the Plan shall be subject to the  satisfaction of all
applicable  Federal,  state and local  income  and  employment  tax  withholding
requirements.

     VI. REGULATORY APPROVALS

     The  implementation of the Plan, the granting of any options under the Plan
and the  issuance of any shares of Common  Stock:  (i) upon the  exercise of any
option;  or (ii)  under the  Stock  Issuance  Program  shall be  subject  to the
Corporation's  procurement  of all approvals and permits  required by regulatory
authorities having  jurisdiction over the Plan, the options granted under it and
the shares of Common Stock issued pursuant to it.

     VII. NO EMPLOYMENT OR SERVICE RIGHTS

     Nothing in the Plan shall confer upon the Optionee or the  Participant  any
right to continue in Service  for any period of specific  duration or  interfere
with or  otherwise  restrict  in any way the rights of the  Corporation  (or any
Parent or Subsidiary  employing or retaining  such person) or of the Optionee or
the  Participant,  which  rights  are  hereby  expressly  reserved  by each,  to
terminate  such  person's  Service at any time for any  reason,  with or without
cause.

     VIII. FINANCIAL REPORTS

     The  Corporation  shall deliver a balance sheet and an income  statement at
least annually to each individual  holding an outstanding option under the Plan,
unless such  individual is a key Employee  whose duties in  connection  with the
Corporation  (or any Parent or  Subsidiary)  assure  such  individual  access to
equivalent information.

                                       12
<PAGE>
                                    APPENDIX

The following definitions shall be in effect under the Plan:

     A. BOARD shall mean the Corporation's Board of Directors.

     B. CODE shall mean the Internal Revenue Code of 1986, as amended.

     C.  COMMITTEE  shall  mean a  committee  of two (2) or more  Board  members
appointed by the Board to exercise one or more  administrative  functions  under
the Plan.

     D. COMMON STOCK shall mean the Corporation's common stock.

     E.   CORPORATE   TRANSACTION   shall   mean   either   of   the   following
stockholder-approved transactions to which the Corporation is a party:

               (i) a merger or consolidation in which securities possessing more
          than fifty  percent  (50%) of the total  combined  voting power of the
          Corporation's  outstanding  securities are  transferred to a person or
          persons   different   from  the  persons   holding  those   securities
          immediately prior to such transaction; or

               (ii)  the  sale,   transfer  or  other   disposition  of  all  or
          substantially all of the Corporation's  assets in complete liquidation
          or dissolution of the Corporation.

     F.  CORPORATION  shall mean  American  Soil  Technologies,  Inc.,  a Nevada
corporation,  and any successor  corporation to all or substantially  all of the
assets or voting  stock of  American  Soil  Technologies,  Inc.  which  shall by
appropriate action adopt the Plan.

     G.  DISABILITY  shall mean the inability of the Optionee or the Participant
to engage  in any  substantial  gainful  activity  by  reason  of any  medically
determinable  physical or mental  impairment and shall be determined by the Plan
Administrator  on the basis of such medical  evidence as the Plan  Administrator
deems warranted under the circumstances.

     H.  EMPLOYEE  shall  mean  an  individual  who  is in  the  employ  of  the
Corporation (or any Parent or Subsidiary),  subject to the control and direction
of the employer  entity as to both the work to be  performed  and the manner and
method of performance.

     I.  EXERCISE DATE shall mean the date on which the  Corporation  shall have
received written notice of the option exercise.

     J. FAIR MARKET VALUE per share of Common  Stock on any relevant  date shall
be determined in accordance with the following provisions:

               (i) If the  Common  Stock is at the  time  traded  on the  Nasdaq
          National  Market,  then the Fair  Market  Value  shall be the  closing

                                       13
<PAGE>
          selling  price per share of Common Stock on the date in  question,  as
          such price is  reported  by the  National  Association  of  Securities
          Dealers on the Nasdaq National Market and published in The Wall Street
          Journal.  If there is no closing selling price for the Common Stock on
          the date in question,  then the Fair Market Value shall be the closing
          selling  price on the last  preceding  date for which  such  quotation
          exists.

               (ii) If the  Common  Stock is at the  time  listed  on any  Stock
          Exchange,  then the Fair Market  Value  shall be the  closing  selling
          price per share of Common  Stock on the date in  question on the Stock
          Exchange determined by the Plan Administrator to be the primary market
          for the  Common  Stock,  as such  price is  officially  quoted  in the
          composite tape of  transactions  on such exchange and published in The
          Wall  Street  Journal.  If there is no closing  selling  price for the
          Common Stock on the date in question, then the Fair Market Value shall
          be the closing selling price on the last preceding date for which such
          quotation exists.

               (iii) If the Common  Stock is at the time  neither  listed on any
          Stock Exchange nor traded on the Nasdaq National Market, then the Fair
          Market  Value  shall be  determined  by the Plan  Administrator  after
          taking into account such factors as the Plan Administrator  shall deem
          appropriate.

     K. INCENTIVE  OPTION shall mean an option which satisfies the  requirements
of Code Section 422.

     L INVOLUNTARY  TERMINATION shall mean the termination of the Service of any
individual which occurs by reason of:

               (i) such individual's  involuntary  dismissal or discharge by the
          Corporation for reasons other than Misconduct; or

               (ii) such  individual's  voluntary  resignation  following  (A) a
          change in his or her position with the  Corporation  which  materially
          reduces  his or her  duties  and  responsibilities  or  the  level  of
          management  to which he or she reports,  (B) a reduction in his or her
          level of  compensation  (including  base salary,  fringe  benefits and
          target bonus under any corporate-performance  based bonus or incentive
          programs) by more than fifteen  percent  (15%) or (C) a relocation  of
          such  individual's  place of employment by more than fifty (50) miles,
          provided and only if such change,  reduction or relocation is effected
          without the individual's consent.

     M. MISCONDUCT  shall mean the commission of any act of fraud,  embezzlement
or dishonesty by the Optionee or Participant, any unauthorized use or disclosure
by such person of  confidential  information or trade secrets of the Corporation
(or any  Parent or  Subsidiary),  or any other  intentional  misconduct  by such
person  adversely  affecting the business or affairs of the  Corporation (or any
Parent or Subsidiary) in a material manner.  The foregoing  definition shall not
in any way preclude or restrict the right of the  Corporation  (or any Parent or

                                       14
<PAGE>
Subsidiary)  to discharge or dismiss any Optionee or Participant or other person
in the Service of the  Corporation  (or any Parent or Subsidiary)  for any other
acts or  omissions,  but such other acts or omissions  shall not be deemed,  for
purposes of the Plan, to constitute grounds for termination for Misconduct.

     N. 1934 ACT shall mean the Securities Exchange Act of 1934, as amended.

     O.  NON-STATUTORY  OPTION  shall mean an option not intended to satisfy the
requirements of Code Section 422.

     P. OPTION GRANT PROGRAM shall mean the option grant program in effect under
the Plan.

     Q.  OPTIONEE  shall mean any person to whom an option is granted  under the
Plan.

     R. PARENT shall mean any  corporation  (other than the  Corporation)  in an
unbroken  chain of  corporations  ending  with the  Corporation,  provided  each
corporation in the unbroken chain (other than the Corporation) owns, at the time
of the determination,  stock possessing fifty percent (50%) or more of the total
combined  voting power of all classes of stock in one of the other  corporations
in such chain.

     S.  PARTICIPANT  shall mean any person who is issued shares of Common Stock
under the Stock Issuance Program.

     T. PLAN shall mean the Corporation's 2005 Stock Option/Stock Issuance Plan,
as set forth in this document.

     U. PLAN  ADMINISTRATOR  shall mean either the Board or the Committee acting
in its capacity as administrator of the Plan.

     V. SERVICE shall mean the provision of services to the  Corporation (or any
Parent or Subsidiary) by a person in the capacity of an Employee, a non-employee
member of the board of directors or a consultant or independent advisor,  except
to the extent otherwise  specifically  provided in the documents  evidencing the
option grant.

     W. STOCK  EXCHANGE shall mean either the American Stock Exchange or the New
York Stock Exchange.

     X. STOCK ISSUANCE  AGREEMENT  shall mean the agreement  entered into by the
Corporation  and the  Participant  at the time of  issuance  of shares of Common
Stock under the Stock Issuance Program.

     Y. STOCK ISSUANCE  PROGRAM shall mean the stock issuance  program in effect
under the Plan.

     Z. SUBSIDIARY shall mean any corporation (other than the Corporation) in an
unbroken chain of  corporations  beginning with the  Corporation,  provided each

                                       15
<PAGE>
corporation (other than the last corporation) in the unbroken chain owns, at the
time of the  determination,  stock possessing fifty percent (50%) or more of the
total  combined  voting  power  of all  classes  of  stock  in one of the  other
corporations in such chain.

     AA. 10% STOCKHOLDER shall mean the owner of stock (as determined under Code
Section  424(d))  possessing  more than ten percent (10%) of the total  combined
voting  power of all  classes  of stock of the  Corporation  (or any  Parent  or
Subsidiary).

                                       16EXHIBIT 4.3

                        ORDINARY SHARE PURCHASE AGREEMENT

THIS ORDINARY SHARE PURCHASE AGREEMENT (THIS "AGREEMENT") IS DATED AS OF THE 22
DAY OF JUNE 2005 (THE "AGREEMENT DATE"), BY AND BETWEEN LANOPTICS LTD., AN
ISRAELI COMPANY (THE "COMPANY"), AND THE INVESTORS LISTED ON EXHIBIT A ATTACHED
HERETO (EACH AN "INVESTOR" AND TOGETHER THE "INVESTORS").

     The parties hereto agree as follows:

                              ARTICLE I DEFINITIONS

     SECTION 1.1 DEFINITIONS.

     (a) "CLOSING" shall have the meaning assigned to such term in Section 2.4
hereof.

     (b) "COMMISSION" shall mean the U.S. Securities and Exchange Commission.

     (c) "EFFECTIVE DATE" shall mean the date the Registration Statement of the
Company covering the Shares being subscribed for hereby is declared effective by
the Commission.

     (d) "EXCHANGE ACT" shall mean the U.S. Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission promulgated thereunder.

     (e) "EZCHIP" shall mean E.Z. Chip Technologies Ltd., an Israeli company.

     (f) "REGISTRABLE SECURITIES" shall have the meaning assigned to such term
in Section 3.1(a).

     (g) "REGISTRATION STATEMENT" shall have the meaning assigned to such term
in Section 3.1(a).

     (h) "SECURITIES ACT" shall mean the U.S. Securities Act of 1933, as
amended, and the rules and regulations of the Commission promulgated thereunder.

     (i) "SHARES" shall mean the Ordinary Shares of the Company that may be
purchased hereunder.

     (j) "TRADING DAY" shall mean (a) any day on which the Ordinary Shares are
traded on the Nasdaq Small Cap Market, or (b) if the Ordinary Shares are not
then listed or quoted for trading on the Nasdaq Small Cap Market, then a day on
which trading occurs on the New York Stock Exchange (or any successor thereto).

<PAGE>

       ARTICLE II PURCHASE AND SALE OF SHARES; REPRESENTATIONS OF COMPANY

     SECTION 2.1 PURCHASE AND SALE OF SHARES. Subject to the terms and
conditions of this Agreement, each Investor agrees, severally and not jointly,
to purchase at the Closing, and the Company agrees to issue and sell to each
Investor, that number of ordinary shares of the Company, NIS 0.02 par value per
share (the "ORDINARY SHARES"), indicated next to such Investor's name on EXHIBIT
A attached hereto, for the consideration calculated as set forth in EXHIBIT B
attached hereto.

     SECTION 2.2 CONSIDERATION. In consideration for the Shares, each Investor
agrees, severally and not jointly, to transfer to the Company that number of
Ordinary or Preferred shares of EZchip, NIS 0.01 nominal value per share (the
"EZCHIP SHARES"), indicated next to such Investor's name on Exhibit A attached
hereto.

     SECTION 2.3 SHARE CERTIFICATES. Against transfer of the consideration by
the Investors to the Company, the Company shall issue a Share Certificate to
each Investor indicating the number of Shares purchased by such Investor.

     SECTION 2.4 CLOSING. The purchase and sale of the Shares (the "CLOSING")
shall take place at the offices of Naschitz, Brandes & Co, 5 Tuval Street, Tel
Aviv 67897 Israel ("NASCHITZ") within three (3) business days of attainment of
all of the following (the "CLOSING DATE"):

     (a) the receipt of approval of the board of directors of EZchip for the
transfer of the EZchip Shares to the Company;

     (b) delivery to the Investors of opinion of legal counsel to the Company in
the form attached hereto as EXHIBIT C;

     (c) the expiration of the waiting period pursuant to NASDAQ Rule
4320(e)(15); and

     (d) the receipt of any other governmental or third party approvals that may
be required in connection with this Agreement and the transactions contemplated
hereunder.

     (e) the receipt by the Company of tax ruling or any other approval or
waiver from the applicable tax authorities which approves that the Company is
entitled not to deduct or withhold any withholding tax or other applicable tax
with respect to the transactions contemplated by this Agreement"

     Each party shall deliver all documents, instruments and writings required
to be delivered by such party pursuant to this Agreement at or prior to the
Closing. If the Closing has not occurred by the date sixty (60) days from the
Agreement Date, the Company's obligation to sell and the Investors' obligation
to purchase the Shares will terminate.

     SECTION 2.5 REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company
hereby represents and warrants as follows:

<PAGE>

     (a) The Company is a company duly incorporated and validly existing under
the laws of Israel. This Agreement constitutes, or shall constitute when
executed and delivered, a valid and binding obligation of the Company
enforceable against the Company in accordance with its terms. Without limiting
the generality of the foregoing, the Company knows of no reason why it will not
be able to register the Registrable Securities as provided in Article III below.

     (b) The Company is authorized to issue the Shares pursuant to this
Agreement, and the same shall be issued free and clear of any and all liens,
encumbrances, security interests and claims of any kind and nature, and no third
party holds any right or interest (beneficial, voting or otherwise) in the
Shares. The Shares when issued and paid for as provided herein will be
fully-paid and non-assessable.

     (c) The execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated in this Agreement and the
fulfillment of the terms of this Agreement have been duly authorized by all
necessary corporate action and will not conflict with or constitute a breach of,
or default under, or result in the creation or imposition of any lien, charge or
encumbrance upon any property or assets of the Company pursuant to, any
contract, indenture, mortgage, loan agreement, deed, trust, note, lease,
sublease, voting agreement, voting trust or other instrument or agreement to
which the Company is a party or by which it may be bound, or to which any of the
property or assets of the Company is subject, and will not trigger anti-dilution
rights or other rights to acquire additional equity securities of the Company,
nor will such action result in any violation of the provisions of the articles
of association of the Company or any applicable statute, law, rule, regulation,
ordinance, decision, directive or order.

     (d) For the three (3) years preceding the date hereof, the Company has
timely filed all reports, schedules, forms, statements and other documents
required to be filed by it with the Commission pursuant to the reporting
requirements of the Exchange Act, including material filed pursuant to Section
13(a) or 15(d) of the Exchange Act (all of the foregoing including filings
incorporated by reference therein being referred to herein as the "COMMISSION
DOCUMENTS"). The Company has delivered or made available to the Investors true
and complete copies of the Commission Documents filed with the Commission since
January 1, 2002 and prior to the Closing Date. The Company has not provided to
the Investors any information which, according to applicable law, rule or
regulation, should have been disclosed publicly by the Company but which has not
been so disclosed, other than with respect to the transactions contemplated by
this Agreement. The Form 20-F for the year ended December 31, 2003, as amended,
complied in all material respects with the requirements of the Exchange Act and
the rules and regulations of the Commission promulgated thereunder, and the said
Form 20-F did not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were
made, not misleading. The financial statements of the Company included in the
Commission Documents comply as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the
Commission applicable thereto or other applicable rules and regulations with
respect thereto. Such financial statements have been prepared, for a period
prior to January 1 2004, in accordance with Israeli generally accepted
accounting principles ("GAAP"), and, for the period following January 1, 2004,
in accordance with US GAAP, applied on a consistent basis during the periods
involved (except (i) as may be otherwise indicated in such financial statements
or the notes thereto or (ii) in the case of unaudited interim statements, to the
extent they may not include footnotes or may be condensed or summary
statements), and fairly present in all material respects the financial position
of the Company and its subsidiaries as of the dates thereof and the results of
operations and cash flows for the periods then ended (subject, in the case of
unaudited statements, to normal year-end audit adjustments, not material in
amount).

<PAGE>

     (e) The Company meets the eligibility requirements for the use of Form F-3
for the registration of securities in a transaction involving secondary
offerings.

     (f) The Company has no contract, arrangement or understanding with any
broker, finder or similar agent with respect to the issuance of the Shares to
the Investors and transfer of the EZchip Shares, as contemplated by this
Agreement.

     (g) Capitalization.

          (i) The authorized share capital of the Company consists of 30,000,000
     Ordinary Shares.

          (ii) As of the date hereof, the issued and outstanding capital stock
     of the Company consists of 10,626,285 Ordinary Shares. The issued and
     outstanding Ordinary Shares of the Company have been duly authorized and
     validly issued, are fully paid and nonassessable and have not been issued
     in violation of and are not otherwise subject to any preemptive or other
     similar rights.

          (iii) The Company has reserved 972,539Ordinary Shares for issuance
     upon the exercise of warrants granted to certain entities, and share
     options granted or available for future grant under the Company's employee
     incentive share option plans.

With the exception of the foregoing, and the right of the preferred shareholders
of EZchip to exchange their EZchip shares with Ordinary shares of the Company in
accordance with the Exchange Right Agreement dated May 8, 2003, executed between
the Company, Ezchip and such shareholders, there are no outstanding
subscriptions, options, warrants, convertible or exchangeable securities or
other rights granted to or by the Company to purchase Ordinary Shares or other
securities of the Company and there are no commitments or arrangements to issue
any Ordinary Shares or any security convertible into or exchangeable for
Ordinary Shares.

     (h) Issuance, Sale and Delivery of the Shares.

          (i) The issuance of the Shares is not subject to preemptive or other
     similar rights or antidilution rights. Except as set forth in this
     Agreement, no further approval or authority of the shareholders or the
     Board of Directors of the Company will be required for the issuance and
     sale of the Shares to be sold by the Company as contemplated in this
     Agreement.

<PAGE>

          (ii) Neither the Company nor any of its subsidiaries or affiliates,
     nor any Person acting on its or their behalf, (x) has engaged in any form
     of general solicitation or general advertising (within the meaning of
     Regulation D) in connection with the offer or sale of the Shares, (y) has,
     directly or indirectly, made any offers or sales of any security or
     solicited any offers to buy any security, under any circumstances that
     would require registration of the Shares under the Securities Act or (z)
     has issued any Ordinary Shares or other securities or instruments
     convertible into, exchangeable for or otherwise entitling the holder
     thereof to acquire Ordinary Shares which would be integrated with the sale
     of the Shares to such Purchaser for purposes of the Securities Act or of
     any applicable stockholder approval provisions, including, without
     limitation, under the rules and regulations of The Nasdaq Stock Market, nor
     will the Company or any of its subsidiaries or affiliates take any action
     or steps that would require registration of any of the Shares under the
     Securities Act or cause the offering of the Shares to be integrated with
     other offerings. Assuming the accuracy of the representations and
     warranties of the Purchasers in Section 3.2 hereof, the offer and sale of
     the Shares by the Company to the Purchasers pursuant to this Agreement will
     be exempt from the registration requirements of the Securities Act.

     (i) NO MATERIAL CHANGE. Since December 31, 2004,

          (i) there has not been any change, event or development having, or
     that could be reasonably expected to have, individually or in the
     aggregate, a material adverse effect on the condition, financial or
     otherwise, or the earnings, assets or business affairs of the Company and
     its subsidiaries taken as a whole (a "Company Material Adverse Effect");

          (ii) other than the transactions contemplated by this Agreement, there
     have been no transactions entered into by the Company other than those in
     the ordinary course of business which are material with respect to the
     Company;

          (iii) there has been no dividend or distribution of any kind declared,
     paid or made by the Company on any class of its share capital; and

          (iv) the Company has no new material contingent obligations.

     (j) TRANSFER TAXES. The Company shall be liable for, and shall pay when
due, any transfer, gains, documentary, sales, use, registration, stamp, value
added or other similar taxes (other than income taxes) payable by reason of the
transactions contemplated by this Agreement or attributable to the initial sale
to the Investors of the Shares.

     (k) MISCELLANEOUS

          (i) There is no litigation, judgment, or statute prohibiting the sale
     of the Shares to the Investors as such sale is contemplated pursuant to the
     terms of the Agreement;

          (ii) The Company's Ordinary Shares are listed on the Nasdaq Small Cap
     Market and the Company has not received a cease trading order from the
     Nasdaq Small Cap Market with respect to its securities; and

          (iii) The Company shall cause the issuance of the Shares to the
     Investors pursuant to the terms of the Agreement.

<PAGE>

     ARTICLE III REGISTRATION AND ACCREDITED INVESTOR RIGHTS AND OBLIGATIONS

     SECTION 3.1 REGISTRATION STATEMENT.

     (a) FILING AND EFFECTIVENESS. The Company will file as soon as commercially
practicable after the Closing, and in any event no later than thirty (30)
business days after the Closing Date, a Form F-3 (or if not eligible at such
time to file Form F-3, a Form F-1) registration statement with the Commission
(the "Registration Statement"), for the non-underwritten resale into the open
market or in privately negotiated transactions of the Shares (the "Registrable
Securities") by the Investors or by the limited or general partners of the
Investors to whom the shares have been distributed. Once filed, the Company
shall use best efforts to cause such Registration Statement registering the
Registrable Securities to be declared effective within ninety (90) days from the
filing Date. The Company will notify the Investors and its transfer agent of the
effectiveness of the Registration Statement within three (3) Trading Days of
such event.

     (b) EFFECTIVENESS PERIOD. The Company will maintain the Registration
Statement effective under the Securities Act until the earlier of (i) the date
that all of the Shares have been sold pursuant to such Registration Statement,
(ii) the date the Investors receive an opinion from counsel to the Company,
which counsel shall be reasonably acceptable to the Investors, that the Shares
may be sold under the provisions of Rule 144 without limitation as to volume, or
(iii) the date that all Shares have been otherwise transferred to persons who
may trade such Shares without restriction under the Securities Act, and the
Company has delivered a new certificate or other evidence of ownership for such
Shares not bearing a restrictive legend, or (iv) twenty-four (24) months from
the Effective Date. Notwithstanding the foregoing, if the Company furnishes to
the Investors a certificate signed by the President of the Company stating (x)
that there shall have occurred any event, or there shall exist any
circumstances, which would require the disclosure of material non-public
information that the Company has a reasonable justification for keeping
confidential, or (y) that there shall have occurred any event which makes any
statement made in the Registration Statement, the Prospectus forming a part
thereof, or any document incorporated therein by reference untrue or which
requires the making of any changes in such Registration Statement, Prospectus or
incorporated document so that they will not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading, the Investors shall
forthwith discontinue disposition of the Shares covered by such Registration
Statement until such Investors shall be in receipt of written notice from the
Company to the effect that use of the Registration Statement or Prospectus may
be resumed and shall have been furnished copies of any amended or supplemented
Registration Statement or Prospectus or incorporated documents, as the case may
be. In the event that the Company shall furnish a certificate as contemplated by
the previous sentence suspending the use of the Registration Statement or
Prospectus, the time period referred to in clause (iv) of the first sentence of
this subsection (b) shall be extended by the number of days during the period
from and including the date of giving such notice to and including the date when
the Investors shall have received the copies of the amended or supplemented
Registration Statement or Prospectus or incorporated documents, as the case may
be. The Company shall also give prompt notice to the Investors if disposition of
the Shares covered by the Registration Statement is ordered to be discontinued
for any reason by the Commission, Nasdaq or any other governmental authority,
and in such event the time period referred to in clause (iv) of the first
sentence of this subsection (b) shall be extended by the number of days during
the period from and including the date such notice is given until the date that
notice is given to the Investors to the effect that disposition of the Shares
under the Registration Statement may resume.

<PAGE>

     (c) ADDITIONAL ACTIONS IN CONNECTION WITH THE REGISTRATION STATEMENT. In
addition to the foregoing, the Company shall:

          (i) promptly furnish to the Investors with respect to the Shares
     registered under the Registration Statement such reasonable number of
     copies of the Prospectus, including any supplements to or amendments of the
     Prospectus, and, upon request, the Preliminary Prospectus, in order to
     facilitate the public sale or other disposition of all or any of the Shares
     by the Investors;

          (ii) during the period when copies of the Prospectus are required to
     be delivered under the Securities Act or the Exchange Act, will file all
     documents required to be filed with the Commission pursuant to Section 13
     or 15 of the Exchange Act within the time periods required by the Exchange
     Act and the rules and regulations promulgated thereunder;

          (iii) timely file documents required of the Company for customary
     state level securities law clearance in all states requiring such
     clearance;

          (iv) bear all expenses in connection with the procedures in this
     Section 3.1 and the registration of the Shares pursuant to the Registration
     Statement, but not including any fees and expenses of any advisers to the
     Investors or brokerage fees and commissions incurred by the Investors;

          ; and

          (v) provide Investors with a copy of the Registration Statement at
     least five (5) business days prior to filing such Registration Statement
     and to allow Investors' counsel to comment on and to approve any
     information in the Registration Statement relating to such Investor;
     PROVIDED, HOWEVER, that the five (5) day deadline and the 90 day deadlines
     in Section 3.1(a) shall be extended by the number of days past the fifth
     business day that the filing of such Registration Statement is delayed due
     to the rights of Investors' counsel to approve the aforementioned
     information in the Registration Statement.

     SECTION 3.2 INVESTORS REPRESENTATIONS.

     (a) EZCHIP SHARES. Each Investor represents and warrants that the EZchip
Shares indicated next to its name on Exhibit A are fully-paid and non-assessable
and are beneficially owned by it, free and clear of any and all liens,
encumbrances, security interests and claims of any kind and nature, and no third
party holds any right or interest (beneficial, voting or otherwise) in such
EZchip Shares.

<PAGE>

     (b) AUTHORITY. Each Investor represents and warrants that it has full power
and authority to enter into and consummate the transactions contemplated by this
Agreement, and the consent of no other party or entity is necessary for the
consummation of the transactions contemplated herein other than as set forth
herein.

     (c) BROKERS. Each Investor represents and warrants that it has no contract,
arrangement or understanding with any broker, finder or similar agent with
respect to the issuance of the Shares to the Investors and transfer of the
EZchip Shares, as contemplated by this Agreement.

     (d) INVESTOR STATUS DECLARATION. Each Investor represents and warrants that
it is an Accredited Investor within the meaning of Rule 501 of Regulation D
promulgated under the Securities Act, and each Investor represents and warrants
that it understands that an investment in the Shares involves a high degree of
risk, including a risk of total loss of such Investor's investment, that it has
such knowledge and experience as to be capable of evaluating the merits and
risks of its investment in the Shares.

     (e) PURCHASE ENTIRELY FOR OWN ACCOUNT. Each Investor represents and
warrants that it is acquiring the Shares for investment and for Investor's own
account, not as a nominee or agent, and not with a view to the resale or
distribution (other than to its general and limited partners) of any part
thereof, and except as aforesaid Investor has no present intention of, or any
arrangement or understanding with any other Persons with respect to, selling,
granting any participation in, or otherwise distributing the same, PROVIDED that
nothing in this section shall constitute an agreement by such Investor to hold
or refrain from disposing of the Shares for any amount of time, except as set
forth in Section 4.1, and PROVIDED, FURTHER, that any transfer, sale or other
disposition of the Shares by such Investor shall comply in all respects with the
requirements of the Securities Act and similar provisions of state law. Each
Investor does not presently have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participation to such
person or to any third person, with respect to any of the Shares.

     (f) RESTRICTED SECURITIES. Each Investor understands that the Shares have
not been, and will not at the time of sale and issuance by the Company be,
registered under the Securities Act by reason of a specific exemption from the
registration provisions of the Securities Act which depends upon, among other
things, the bona fide nature of the investment intent and the accuracy of such
Investor's representations as expressed herein. Each Investor understands that
the Shares are "restricted securities" under applicable U.S. federal and state
securities laws and regulations, and that pursuant to these laws, such Investor
must hold the Shares indefinitely unless the Shares are registered with the
Commission and qualified by necessary state authorities or an exemption from
such registration and qualification requirements is available. Each Investor
further acknowledges that if an exemption from registration or qualification is
available, it may be conditioned on various requirements including, but not
limited to, the time and manner of sale, the holding period for the Shares, and
requirements relating to the Company which are outside of such Investor control,
and the Company agrees to comply with its obligations set forth herein and to
otherwise use its reasonable best efforts to satisfy such requirements.

<PAGE>

     (g) INFORMATION. Each Investor acknowledges that (i) it has been furnished
with all materials relating to the business, finances and operations of the
Company and materials relating to the offer and sale of the Shares which have
been requested by such Investor; (ii) it has not relied upon any representations
or other information (whether oral or written) other than as set forth in the
representations and warranties of the Company contained herein and the
Commission Documents, (iii) it has been afforded the opportunity to ask
questions of , and receive answers from, the Company, all of which questions
were answered to such Investor's satisfaction; (iv) it has sought such
accounting, legal and tax advice as it has considered necessary to make an
informed investment decision with respect to its acquisition of the Shares; (v)
it understands that it (and not the Company) shall be responsible for such
Investor's own tax liabilities that may arise as a result of this investment or
the transactions contemplated by this Agreement; (vi) it has reviewed the
Company's Annual Report on Form 20-F for the year ended December 31, 2003, and
its Reports on Form 6-K filed since December 31, 2003, all as filed with the
SEC; and (vii) it understands that an investment in the Company may be
considered as a high-risk investment, and such Investor nevertheless has
voluntarily agreed to consummate the investment.

     (h) DISCLOSURES TO THE COMPANY. Each Investor understands that the Company
is relying on the statements contained herein to establish an exemption from
registration under federal and state securities laws. Such Investor will
promptly notify the Company of any changes in the information set forth in the
Registration Statement regarding such Investor.

     SECTION 3.3 INDEMNIFICATION.

     (a) INDEMNIFICATION BY COMPANY. In the event of a registration of any
Shares pursuant to this Article III, the Company will indemnify and hold
harmless Investors and each officer, director, employee and agent of each of the
foregoing, against any expenses, losses, claims, damages or liabilities, joint
or several, to which Investors may become subject under the Securities Act, any
state securities law or otherwise, including any of the foregoing incurred in
settlement of any litigation, commenced or threatened, insofar as such expenses,
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon any untrue statement or alleged untrue statement of any
material fact contained, on the Effective Date thereof, in any registration
statement under which such Shares are registered under the Securities Act, any
preliminary prospectus or final prospectus contained therein, or any amendment
or supplement thereof, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein in light of the circumstances under
which they were made not misleading; PROVIDED, HOWEVER, that the Company will
not be liable in any such case to the extent that any such expense, loss, claim,
damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in such
registration statement, said preliminary prospectus or said prospectus or said
amendment or supplement in reliance upon and in conformity with written
information furnished in writing to the Company by or on behalf of Investors
specifically for use in the preparation thereof and, PROVIDED, FURTHER, that the
Company will not be liable in any such case to the extent that any such expense,
loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in
such registration statement, said preliminary prospectus or said prospectus has
been corrected in an amendment or supplement thereto and if, having previously
been furnished by or on behalf of the Company with copies of the registration
statement, preliminary prospectus or prospectus as amended or supplemented the
Investors fail to deliver such amended or supplemented registration statement,
preliminary prospectus or prospectus in connection with the sale of Shares to
any person asserting such expense, loss, claim, damage or liability.

<PAGE>

     (b) INDEMNIFICATION BY INVESTORS. In the event of any registration of any
Shares under the Securities Act pursuant to this Article III, each Investor,
severally and not jointly, will indemnify and hold harmless the Company, each
officer of the Company who signs the registration statement, and each director
of the Company against any and all such expenses, losses, claims, damages or
liabilities referred to in the first paragraph of this Section 3.3, if the
statement, alleged statement, omission or alleged omission in respect of which
such expense, loss, claim, damage or liability is asserted was made in reliance
upon and in conformity with information furnished in writing to the Company by
or on behalf of such Investor specifically for use in connection with the
preparation of such registration statement, preliminary prospectus, prospectus,
amendment or supplement; PROVIDED, HOWEVER, that the indemnity provided in this
subsection shall not apply to amounts paid in settlement of any such expense,
loss, claim, damage, liability or action if such settlement is effected without
the consent of such Investor, which consent shall not be unreasonably withheld;
and PROVIDED, FURTHER that the total amounts payable by an Investor under this
subsection shall not exceed the net proceeds received by such Investor in the
registered offering out of which such indemnity arises.

     (c) INDEMNIFICATION PROCEDURE. Each party entitled to indemnification under
this Section 3.3 (the "INDEMNIFIED PARTY") shall give notice to the party
required to provide indemnification (the "INDEMNIFYING PARTY") promptly after
such Indemnified Party has actual knowledge of any claim as to which indemnity
may be sought, and shall permit the Indemnifying Party to assume the defense of
any such claim or any litigation resulting thereon, PROVIDED that the
Indemnified Party may participate in such defense at its own expense, and
PROVIDED, FURTHER that the failure of any Indemnified Party to give notice as
provided herein shall not relieve the Indemnifying Party of its obligations
under this Section 3.3 except to the extent such failure resulted in actual
detriment to the Indemnifying Party. No Indemnifying Party, in the defense of
any such claim or litigation, shall, except with the consent of each Indemnified
Party, consent to entry of any judgment or enter into any settlement which does
not include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnified Party of a release from all liability in respect
to such claim or litigation. Each Indemnified Party shall furnish such
information regarding itself or the claim in question as an Indemnifying Party
may reasonably request in writing and as shall be reasonably required in
connection with defense of such claim and litigation resulting therefrom.

                        ARTICLE IV ADDITIONAL COVENANTS

     SECTION 4.1 TRANSFER RESTRICTIONS.

     (a) Each Investor shall not sell or otherwise dispose of the LanOptics
Shares held by it except as follows: (i) one-third of the LanOptics Shares may
be sold or otherwise disposed of at any time following the Closing Date, (ii) an
additional one-third of the LanOptics Shares may be sold or otherwise disposed
of at any time beginning ninety (90) days after the Closing Date, and (iii) the
remaining one-third of the LanOptics Shares may be sold or otherwise disposed of
at any time beginning one hundred and eighty (180) days after the Closing Date.
Notwithstanding the foregoing, until such time as the Registration Statement
referred to in Section 3.1 is declared effective, the Investors shall not make
any sales except to affiliated entities or QIBs under Rule 144A, or pursuant to
an exemption from the registration requirements of the United States federal
securities laws.

<PAGE>

     (b) The Investors agree to the imprinting, so long as is required by this
Section 4.1, of the following legend (the "LEGEND") on any certificate
evidencing Shares:

     THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
     COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
     EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
     (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
     PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
     PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
     TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
     WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF
     COUNSEL TO THE TRANSFEROR, REASONABLY ACCEPTABLE TO THE COMPANY, TO SUCH
     EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
     COMPANY.

     (c) Certificates evidencing the Shares shall not contain any legend
(including the legend set forth in Section 4.1(a)) while a registration
statement covering the resale of such security is effective under the Securities
Act, or (ii) following any sale of such Shares pursuant to Rule 144, or (iii) if
such Shares are eligible for sale under Rule 144(k), or (iv) if such legend is
not required under applicable requirements of the Securities Act (including
judicial interpretations and pronouncements issued by the Staff of the
Commission).

     SECTION 4.2 The Company will use best efforts to list the Shares for
trading on the Nasdaq system or any relevant market or system, if applicable.

                            ARTICLE V MISCELLANEOUS

     SECTION 5.1 FEES AND EXPENSES. Each party will pay its own fees and
expenses related to the transactions contemplated by this Agreement

     SECTION 5.2 CONSENT TO JURISDICTION AND GOVERNING LAW. Each of the Company
and Investors (i) hereby irrevocably submit to the exclusive jurisdiction of the
appropriate courts in Tel Aviv, Israel for the purposes of any suit, action or
proceeding arising out of or relating to this Agreement and (ii) hereby waives,
and agrees not to assert in any such suit, action or proceeding, any claim that
it is not personally subject to the jurisdiction of such court, that the suit,
action or proceeding is brought in an inconvenient forum or that the venue of
the suit, action or proceeding is improper. Each of the Company and each of the
Investors consent to process being served in any such suit, action or proceeding
by mailing a copy thereof to such party at the address in effect for notices to
it under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing in this Section shall
affect or limit any right to serve process in any other manner permitted by law.
This Agreement shall be governed by and construed in accordance with the
internal laws of the State of Israel, without giving effect to the choice of law
provisions thereof.

<PAGE>

     SECTION 5.3 ENTIRE AGREEMENT; AMENDMENT. This Agreement contains the entire
understanding of the parties with respect to the matters covered hereby and,
except as specifically set forth herein, neither the Company nor Investors makes
any representations, warranty, covenant or undertaking with respect to such
matters. The parties hereto may not amend this Agreement or any rights or
obligations hereunder without the prior written consent of the Company and
Investors.

     SECTION 5.4 NOTICES. Any notice, demand, request, waiver or other
communication required or permitted to be given hereunder shall be in writing
and shall be effective (a) upon hand delivery, by telecopy or facsimile at the
address or number designated below (if delivered on a business day during normal
business hours where such notice is to be received), or the first business day
following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the second
business day following the date of dispatch by express courier service, fully
prepaid, addressed to such address, or upon actual receipt of such dispatch,
whichever shall first occur. The addresses for such communications shall be:

If to the Company:               LanOptics Ltd.
                                 1 Hatamar Street
                                 P.O.Box 527
                                 Yokneam 20692, Israel

                                 Tel. No.:  (972)-3-959 6666
                                 Fax No.:  (972)-3-959 4166
                                 Attention:

If to the Investors:             To the address and fax number indicated on
                                 Exhibit A hereof.

With a copy (which shall not
constitute notice) to:

     Any party hereto may from time to time change its address for notices by
giving at least ten (10) days written notice of such changed address to the
other party hereto.

     SECTION 5.5 WAIVERS. No provision of this Agreement may be waived other
than by a written instrument signed by the party against whom enforcement of any
such waiver is sought. No waiver by either party of any default with respect to
any provision, condition or requirement of this Agreement shall be deemed to be
a continuing waiver in the future or a waiver of any other provisions, condition
or requirement hereof, nor shall any delay or omission of any party to exercise
any right hereunder in any manner impair the exercise of any such right accruing
to it thereafter.

<PAGE>

     SECTION 5.6 HEADINGS. The article, section and subsection headings in this
Agreement are for convenience only and shall not constitute a part of this
Agreement for any other purpose and shall not be deemed to limit or affect any
of the provisions hereof.

     SECTION 5.7 SUCCESSORS AND ASSIGNS. Investors may not assign this Agreement
to any person without the prior consent of the Company, which consent will not
be unreasonably withheld; PROVIDED, HOWEVER, that the Investors may assign this
Agreement to an affiliate without the consent of the Company. This Agreement
shall be binding upon and inure to the benefit of the parties and their
successors and permitted assigns.

     SECTION 5.8 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument.

     SECTION 5.9 SEVERABILITY. The provisions of this Agreement are severable
and, in the event that any court of competent jurisdiction shall determine that
any one or more of the provisions or part of the provisions contained in this
Agreement shall, for any reason, be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision or part of a provision of this Agreement, and this Agreement
shall be reformed and construed as if such invalid or illegal or unenforceable
provision, or part of such provision, had never been contained herein, so that
such provisions would be valid, legal and enforceable to the maximum extent
possible.

     SECTION 5.10 FURTHER ASSURANCES. From and after the date of this Agreement,
upon the request of the Investors or the Company, each of the Company and the
Investors shall execute and deliver such instruments, documents and other
writings as may be reasonably necessary or desirable to confirm and carry out
and to effectuate fully the intent and purposes of this Agreement.

     SECTION 5.11 "BLUE SKY" LAWS. In connection with the issuance of the Shares
pursuant to this Agreement and any intended disposition of the Shares by the
Investors pursuant to the Registration Statement referred to in Article III
hereof, the Company will use its reasonable best efforts to register or qualify
all Shares under such state, local or foreign securities or "blue sky" laws of
such jurisdictions as the Investors shall reasonably request, and do any and all
other acts and things that may be reasonably necessary to enable the sale of the
Shares to the Investors or to consummate the disposition by the Investors of
Shares pursuant to the Registration Statement; PROVIDED, HOWEVER, that the
Company shall not for any such purpose be required to qualify generally to do
business as a foreign corporation in any jurisdiction wherein it is not so
qualified, or to subject itself to taxation in respect of doing business in any
such jurisdiction, or to consent to general service of process in any such
jurisdiction.

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date and year first above written.

        LANOPTICS LTD.

        By: /S/ Eli Fruchter
        --------------------
        Name: Eli Fruchter
        ------------------
        Title: Director
        ---------------

INTERNATIONAL BUSINESS MACHINE
CORPORATION                                         DELTA CAPITAL LTD.

By: /S/ David Johnson                               By: /S/ David Pearlman
---------------------                               ----------------------
Name: David Johnson                                 Name: David Pearlman
-------------------                                 --------------------
Title: VP Corporate Develpoment                     Title: Authorized Signatory
-------------------------------                     ---------------------------

TAMAR TECHNOLOGY INVESTORS                          TAMAR TECHNOLOGY INVESTORS
(ISRAELI) L.P.                                      (DELAWARE) L.P.

By: /S/ Zohar Gilon                                 By: /S/ Zohar Gilon
-------------------                                 -------------------
Name: Zohar Gilon                                   Name: Zohar Gilon
-----------------                                   -----------------
Title: Managing Partner                             Title: Managing Partner
-----------------------                             -----------------------

    /S/ Menachem Abraham                            /S/ Nicholas John Lippis III
    --------------------                            ----------------------------
    Menachem Abraham                                Nicholas John Lippis III

<PAGE>

                                    EXHIBIT A

          SCHEDULE OF INVESTORS AND NUMBER OF SHARES AND EZCHIP SHARES

                                        EZchip Shares
Investor                       (Fully diluted as converted)     LanOptics Shares
--------                       ----------------------------     ----------------

IBM                                        2,103,924                  586,383

TAMAR TECHNOLOGY INVESTORS                   817,319                  227,794

MENACHEM ABRAHAM                             550,000                  153,290

DELTA CAPITAL                                 70,000                   19,510

NICK LIPPIS                                   70,000                   19,510

TOTAL                                      3,611,243                1,006,486

<PAGE>

                                    EXHIBIT B

The Exchange Ratio ("ER") shall reflect the number of Ordinary Shares of
LanOptics received by each Investor for one share of EZchip, and may be
expressed as the ratio between the number of the EZchip Shares on a fully
diluted as converted basis of such Investor prior to the Closing and the
Ordinary Shares of LanOptics obtained by such Investor following the Closing.

The formula for the calculation of the ER is expressed algebraically as follows
(the "ER Formula"):

ER=N/(E*B)

WHERE:

   (1)        n =    N    -  N
                    ---
                    1-X

   (2)        X =  B
                  ---
                  A+B

AND:

A    -    LanOptics percentage holdings in EZchip on a fully diluted as
          converted basis as of the signing of this Agreement.

B    -    The percentage holdings in EZchip of the Investors on a fully diluted
          as converted basis as of the signing of this Agreement.

X    -    The percentage holdings in LanOptics of the Investors on a fully
          diluted basis following the Closing.

N    -    The aggregate number of shares of LanOptics on a fully diluted basis
          as of immediately prior to the PIPE transaction made by LanOptics on
          November 2004.

n    -    LanOptics newly issued shares to satisfy the purchase of LanOptics
          shares by the Investors at the Closing.

E    -    The aggregate number of shares of EZchip on a fully diluted as
          converted basis at the signing of this Agreement.

* Note: the aggregate number of shares of LanOptics - the parameter N in the
formula above, is calculated as of November 2004 and does not take into
consideration the shares of LanOptics issued in the PIPE transaction.

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