<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>


<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 540pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: normal; font-style: normal">As
filed with the Securities and Exchange Commission on February 20,
2004</font>
</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 540pt; text-align: right; font-style: normal; line-height: 12pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">
<font style="font-weight: normal; font-style: normal">Registration No.
333-</font>
</p>
<table border="0" cellpadding="0" cellspacing="0" width="713">
<tr>
<td><img src="spacer.gif" height="3" width="1"></td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="3" width="1"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="3" width="1"></td>
</tr>
</table>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:14pt;  width: 540pt; text-align: center; font-style: normal; line-height: 16pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
<font style="font-size: 12pt;">Washington, D.C.
20549</font>
</p>
<!--0--><table border="0" cellpadding="0" cellspacing="0" width="713">
<tr>
<td><img src="spacer.gif" width="1" height="1"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="1" width="293"></td>
<td bgcolor="#000000"><img src="spacer.gif" height="1"><img src="spacer.gif" height="1" width="127"></td>
<td><img src="spacer.gif" height="1" width="293"></td>
<td><img src="spacer.gif" height="1" width="586"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="8" width="1"></td>
</tr>
</table>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:12pt;  width: 540pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">FORM S-8<br>
REGISTRATION STATEMENT<br> Under<br> THE SECURITIES ACT OF
1933</p>
<!--0--><table border="0" cellpadding="0" cellspacing="0" width="713">
<tr>
<td><img src="spacer.gif" width="1" height="1"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="1" width="293"></td>
<td bgcolor="#000000"><img src="spacer.gif" height="1"><img src="spacer.gif" height="1" width="127"></td>
<td><img src="spacer.gif" height="1" width="293"></td>
<td><img src="spacer.gif" height="1" width="586"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="8" width="1"></td>
</tr>
</table>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:12pt;  width: 540pt; text-align: center; font-style: normal; line-height: 14pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">LIPMAN
ELECTRONIC ENGINEERING LTD.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:8pt;  width: 540pt; text-align: center; font-style: normal; line-height: 10pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">
<font style="font-weight: normal; font-style: normal">(Exact Name of
Registrant as Specified in Its
Charter)</font>
</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px; width: 713px; padding-top: 0px" align="center">
<table cellpadding="0" cellspacing="0" border="0" width="713" bgcolor="#ffffff">
<tr>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="285"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="8"></td>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="285"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt" align="center" valign="bottom" colspan="3"><b>Israel</b></td>
<td style="padding-top: 0pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="bottom" colspan="3"><b>Not
applicable</b></td>
</tr>
<tr>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="bottom" colspan="3">(State
or Other Jurisdiction of<br>Incorporation or
Organization)</td>
<td style="padding-top: 0pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="bottom" colspan="3">(I.R.S. Employer
Identification<br>Number)</td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 540pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">11 Haamal
Street, Park Afek<br> Rosh Haayin 48092<br> Israel</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:8pt;  width: 540pt; text-align: center; font-style: normal; line-height: 9pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: normal; font-style: normal">(Address, including zip code, of principal
executive offices)</font>
</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:11pt;  width: 540pt; text-align: center; font-style: normal; line-height: 13pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">Lipman Electronic
Engineering Ltd. 2003 Stock Option Plan<br> Lipman Electronic
Engineering Ltd. 2004 Stock Option Plan<br> Management Contract between
Lipman Electronic Engineering Ltd.<br> and Jacob Perry Management
Services Ltd.<br> Individual Stock Option Grants Outside of a Plan<br>
<font style="font-size: 8pt;"><font style="font-weight: normal; font-style: normal">(Full Title of the Plans)</font></font>
</p>
<!--0--><table border="0" cellpadding="0" cellspacing="0" width="713">
<tr>
<td><img src="spacer.gif" width="1" height="1"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="1" width="293"></td>
<td bgcolor="#000000"><img src="spacer.gif" height="1"><img src="spacer.gif" height="1" width="127"></td>
<td><img src="spacer.gif" height="1" width="293"></td>
<td><img src="spacer.gif" height="1" width="586"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="8" width="1"></td>
</tr>
</table>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:11pt;  width: 540pt; text-align: center; font-style: normal; line-height: 13pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Lipman U.S.A.,
Inc.<br> 50 Gordon Drive<br> Syosset, NY 11791<br> (516) 484-9898</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:8pt;  width: 540pt; text-align: center; font-style: normal; line-height: 10pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">
<font style="font-weight: normal; font-style: normal">(Name, address, including zip code, and telephone
number, including area code, of agent for
service)</font>
</p>
<!--0--><table border="0" cellpadding="0" cellspacing="0" width="713">
<tr>
<td><img src="spacer.gif" width="1" height="8"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="1" width="293"></td>
<td bgcolor="#000000"><img src="spacer.gif" height="1"><img src="spacer.gif" height="1" width="127"></td>
<td><img src="spacer.gif" height="1" width="293"></td>
<td><img src="spacer.gif" height="1" width="586"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="8" width="1"></td>
</tr>
</table>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:8pt;  width: 540pt; text-align: center; font-style: normal; line-height: 10pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">
<font style="font-weight: normal; font-style: normal">Copies
of all communications, including all communications sent to the agent
for service, should be sent to:</font>
</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px; width: 713px; padding-top: 6px" align="center">
<table cellpadding="0" cellspacing="0" border="0" width="713" bgcolor="#ffffff">
<tr>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="285"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="8"></td>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="285"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="bottom" colspan="3"><b>NEIL
GOLD, ESQ.<br> Fulbright &amp; Jaworski L.L.P.<br> 666 Fifth Avenue<br>
New York, New York 10103<br> (212) 318-3000<br> Facsimile: (212)
318-3400</b></td>
<td style="padding-top: 0pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="bottom" colspan="3"><b>DAVID GOTLIEB, ADV.<br> Shnitzer, Gotlieb,
Sharon &amp; Co.<br> 7 Menachem Begin Rd.<br> Ramat-Gan 52521,
Israel<br> (972-3) 754-9922<br> Facsimile: (972-3)
754-9920</b></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
<!--0-->
<table border="0" cellpadding="0" cellspacing="0" width="713">
<tr>
<td><img src="spacer.gif" width="1" height="1"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="1" width="293"></td>
<td bgcolor="#000000"><img src="spacer.gif" height="1"><img src="spacer.gif" height="1" width="127"></td>
<td><img src="spacer.gif" height="1" width="293"></td>
<td><img src="spacer.gif" height="1" width="586"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="8" width="1"></td>
</tr>
</table>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 540pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">CALCULATION
OF REGISTRATION
FEE</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px; width: 713px; padding-top: 0px" align="center">
<table cellpadding="0" cellspacing="0" border="0" width="713" bgcolor="#ffffff">
<tr>
<td style="border-bottom: 1px solid #000000 ;" colspan="30"><img src="spacer.gif" height="3" width="713"></td>
</tr>
<tr>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="127"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="8"></td>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="111"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="8"></td>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="111"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="8"></td>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="111"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="8"></td>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="111"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; border-bottom: 1px solid #000000 ;padding-top: 0pt" align="center" valign="bottom" colspan="3">Title
Of Each Class of<br> Securities To Be<br> Registered</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; border-bottom: 1px solid #000000 ;padding-top: 0pt" align="center" valign="bottom" colspan="3">Amount To
Be<br> Registered (1)</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; border-bottom: 1px solid #000000 ;padding-top: 0pt" align="center" valign="bottom" colspan="3">Proposed Maximum<br> Offering Price Per
Share</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; border-bottom: 1px solid #000000 ;padding-top: 0pt" align="center" valign="bottom" colspan="3">Proposed Maximum<br> Aggregate Offering<br>
Price</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; border-bottom: 1px solid #000000 ;padding-top: 0pt" align="center" valign="bottom" colspan="3">Amount Of<br>Registration
Fee</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt;padding-top: 0pt" align="left" valign="bottom" colspan="3">Ordinary Shares, NIS 1.00
nominal value per
share</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="bottom" colspan="3">1,470,150</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="bottom" colspan="3">see
chart
below</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="bottom" colspan="3">$36,584,587</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="bottom" colspan="3">$4,636.00</td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
<table cellpadding="0" cellspacing="0" border="0" width="713">
<tr>
<td><img src="spacer.gif" height="1" width="25"></td>
<td><img src="spacer.gif" height="1" width="688"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 8pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 19.2pt"><b>(1)</b>&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 8pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 521pt"><b>This
registration statement shall also cover any additional indeterminable
number of Ordinary Shares as may be required pursuant to Lipman
Electronic Engineering Ltd. 2003 Stock Option Plan, the Lipman
Electronic Engineering 2004 Stock Option Plan, the Management Contract
between Lipman Electronic Engineering Ltd. and Jacob Perry Management
Services Ltd. and grants outside of a plan, in the event of a stock
dividend, stock split, recapitalization or other similar change in the
Ordinary Shares.</b></td>
</tr>
</table>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:8pt;  width: 540pt; text-align: left; font-style: normal; line-height: 8pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">The following chart
illustrates the calculation of the registration
fee:</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px; width: 713px; padding-top: 0px" align="center">
<table cellpadding="0" cellspacing="0" border="0" width="713" bgcolor="#ffffff">
<tr>
<td style="border-bottom: 1px solid #000000 ;" colspan="30"><img src="spacer.gif" height="3" width="713"></td>
</tr>
<tr>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="222"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="8"></td>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="131"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="8"></td>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="131"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="8"></td>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="143"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; border-bottom: 1px solid #000000 ;padding-top: 0pt" align="center" valign="bottom" colspan="3">&nbsp;</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; border-bottom: 1px solid #000000 ;padding-top: 0pt" align="center" valign="bottom" colspan="3">Number
of Shares</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; border-bottom: 1px solid #000000 ;padding-top: 0pt" align="center" valign="bottom" colspan="3">Offering Price Per Share</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; border-bottom: 1px solid #000000 ;padding-top: 0pt" align="center" valign="bottom" colspan="3">Maximum
Aggregate<br> Offering
Price</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt" align="left" valign="top" colspan="3">2004
Stock Option
Plan</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">550,000</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">$41.60
(2)</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">$22,880,000</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt" align="left" valign="top" colspan="3">2003 Stock Option
Plan</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">320,000</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">$22.00
(2)</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">$7,040,000</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt" align="left" valign="top" colspan="3">Management Contract between
Lipman Electronic Engineering Ltd. and Jacob Perry Management Services
Ltd.</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">120,000</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">$15.53
(2)</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">$1,863,600</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt" align="left" valign="top" colspan="3">Stock option grants issued
outside of a plan (3)</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">68,250</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">$21.58
(2)</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">$1,472,835</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt" align="left" valign="top" colspan="3">Stock option grants issued
outside of a plan (4)</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">411,900</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">$8.08
(2)</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">$3,328,152</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt" align="right" valign="top" colspan="3">TOTAL:</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">1,470,150</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">&mdash;</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">$36,584,587</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt" align="right" valign="top" colspan="3">REGISTRATION
FEE:</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">&mdash;</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">&mdash;</td>
<td style="border-bottom: 1px solid #000000"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="center" valign="top" colspan="3">$4,636.00</td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
<table cellpadding="0" cellspacing="0" border="0" width="713">
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 8pt;  width: 23pt; padding-left: 0pt; text-align: left"><b>(2)</b></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 8pt;  padding-bottom: 6pt;width: 713pt"><b>Pursuant
to Rule 457(h), the aggregate offering price and the fee have been
computed on the basis of the price at which the options may be
exercised. The offering price per share set forth for such shares is
the exercise price per share at which such options are
exercisable.</b></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="713">
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 8pt;  width: 23pt; padding-left: 0pt; text-align: left"><b>(3)</b></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 8pt;  padding-bottom: 6pt;width: 713pt"><b>Stock Option Grants to
employees issued outside of a plan at an offering price of $21.58 per
share.</b></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="713">
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 8pt;  width: 23pt; padding-left: 0pt; text-align: left"><b>(4)</b></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 8pt;  padding-bottom: 6pt;width: 713pt"><b>Stock Option Grants to
employees issued outside of a plan at an offering price of $8.08 per
share.</b></td>
</tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" width="713">
<tr>
<td><img src="spacer.gif" height="3" width="1"></td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="3" width="1"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="3" width="1"></td>
</tr>
</table>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>






<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">PART
I</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">INFORMATION REQUIRED IN THE SECTION 10(A) PROSPECTUS</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;PLAN INFORMATION.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">The documents containing the
information specified in this Item 1 will be sent or given to
employees, directors and others as specified by Rule 428(b)(1). In
accordance with the rules and regulations of the Securities and
Exchange Commission (the "Commission") and
the instructions to Form S-8, such documents are not being filed with
the Commission either as part of this Registration Statement or as
prospectuses or prospectus supplements pursuant to Rule 424.</p>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="63"></td>
<td><img src="spacer.gif" height="1" width="539"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:bold;color:#000000;font-size: 10pt; padding-top: 12pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 48pt">ITEM 2.&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:bold;color:#000000;font-size: 10pt; padding-top:12pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 408pt">REGISTRATION INFORMATION AND EMPLOYEE
PLAN ANNUAL INFORMATION.</td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">The documents containing the
information specified in this Item 2 will be sent or given to
employees, directors or others as specified by Rule 428(b)(1). In
accordance with the rules and regulations of the Commission and the
instructions to Form S-8, such documents are not being filed with the
Commission either as part of this Registration Statement or as
prospectuses or prospectus supplements pursuant to Rule
424.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">I-1</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>






<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">PART
II</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</p>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="63"></td>
<td><img src="spacer.gif" height="1" width="539"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:bold;color:#000000;font-size: 10pt; padding-top: 12pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 48pt">ITEM 3.&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:bold;color:#000000;font-size: 10pt; padding-top:12pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 408pt">INCORPORATION OF DOCUMENTS BY
REFERENCE.</td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">The following documents filed by Lipman Electronic
Engineering Ltd. (the "Company" or the
"Registrant") with the Commission pursuant to
the Securities Act of 1933, as amended (the "Securities
Act") and the Securities Exchange Act of 1934, as amended
(the "Exchange Act") are incorporated by
reference in this Registration Statement:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(a) Description of
ordinary shares contained in the Registrant's registration
statement on Form F-1 (File No. 333-111849) as declared effective on
January 28, 2004 and in the Registrant's registration statement
on Form 8-A filed pursuant to the Exchange Act filed on January 12,
2004.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">All documents subsequently filed by the Registrant with
the Commission pursuant to Sections 13(a), 13(c), 14 and 15(d) of the
Exchange Act, prior to the filing of a post-effective amendment which
(i) indicates that all securities offered under this Registration
Statement have been sold or (ii) which deregisters all securities
remaining unsold, shall be deemed to be incorporated by reference into
this Registration Statement and to be a part of this Registration
Statement from the date of filing of such documents.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM
4.&nbsp;&nbsp;&nbsp;&nbsp;DESCRIPTION OF SECURITIES.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Not applicable.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM
5.&nbsp;&nbsp;&nbsp;&nbsp;INTEREST OF NAMED EXPERTS AND COUNSEL.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Not
applicable.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp;INDEMNIFICATION OF DIRECTORS AND
OFFICERS.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Under the Israeli Companies Law, a company is
prohibited from exculpating an officer or director from liability for
the breach of his duty of loyalty. The company may exculpate an officer
or director from liability for the breach of his duty of care, may
insure his liability for a breach of these duties, or indemnify him for
a breach, but only according to the following provisions:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">A
company may provide in its Articles of Association that an officer or a
director of the company may be exculpated, to the extent provided in
the Articles, from liability for the breach of his duty of care.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">A Company may provide in its Articles of Association that the
company may indemnify an officer or a director in such capacity,
for:</p>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">a monetary liability incurred
pursuant to a judgement, including a settlement or arbitration decision
approved by a court, in an action brought by a third
party;</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">reasonable legal expenses
incurred in an action brought against the director or officer by or on
behalf of the company or others;
and</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">reasonable legal expenses incurred
in defending criminal charges of which the director or officer was
acquitted, or as a result of a criminal charge that does not require
proving criminal intent of which the director or officer was
convicted.</td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">The indemnification provision in a company's
Articles of Association may be a blanket obligation to indemnify in
advance, provided it is limited to events the board of directors can
foresee when providing the obligation and that it is limited to a sum
the board of directors determines is reasonable in the circumstances,
or a provision permitting the company to indemnify an officer or a
director on an ad hoc basis after the fact.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">II-1</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">A Company may provide in its Articles of
Association that the company may insure an officer or a director. This
insurance may cover liability for breach of the duty of care or, to the
extent the officer or director acted in good faith and has a reasonable
basis to believe that the act would not prejudice the company, for the
breach of the duty of loyalty. A company's Articles of
Association may also allow it to insure officers and directors for
monetary liabilities incurred as a result of an act or omission
committed in connection with his serving as an officer or director of
the company.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">All of these provisions are specifically limited in
their scope by the Israeli Companies Law, which provides that a company
may not indemnify an officer or director nor enter into an insurance
contract that would provide coverage for any monetary liability
incurred as a result of any of the
following:</p>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">a breach by the officer or
director of the duty of loyalty, unless the officer or director acted
in good faith and has a reasonable basis to believe that the act would
not prejudice the company;</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">an
intentional or reckless breach by the officer or director of the duty
of care;</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">any act of omission done with
the intent to derive an illegal personal benefit; or</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">any fine levied against the director or
officer.</td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">The Registrant's Articles of Association, as
amended, provides as follows:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">The Company may exempt, in
advance, an officer of the Company from his liability, in whole or in
part, in respect of damage following breach of his duty of care towards
the Company.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Subject to the provisions of the Companies Law, the
Company may engage in a contract to insure the liability of an officer
of the Company, including an officer of the Company who is serving or
has served on its behalf or at its request as a director of another
company in which the Company holds shares, direct or indirectly, or in
which the Company has any interest (hereinafter: "Director
of Another Company") in respect of any liability imposed
upon him following an act which he carried out in his capacity as an
officer of the Company in any one of the following
events:</p>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">Breach of the duty of care
towards the Company or towards any other
person.</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">Breach of fiduciary duty
towards the Company, provided that the officer acted in good faith and
had reasonable grounds to assume that the act would not prejudice the
Company's interests.</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">Financial
liability which shall be imposed upon him in favor of another
person.</td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">The Company may indemnify an officer of the Company on
account of a liability or expense as specified below, which was imposed
upon him following an act which he carried out in his capacity as an
officer of the Company.</p>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">Financial
liability imposed upon him in favor of another person pursuant to a
judgment, including a compromise judgment, or an arbitrator's
award approved by a court.</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">Reasonable
litigation expenses, including legal fees paid by an officer or which
he war required to pay by a court, in a proceeding filed against him by
the Company or in its behalf or by another person, or in criminal
charges from which he was acquitted, or in criminal charges in which he
was convicted of an offense which does not require proof of mens
rea.</td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">The Company may give an undertaking in advance to indemnify
an officer in respect of a liability or expense as specified above,
provided that the undertaking is limited to types of events which, in
the opinion of the Board of Directors, may be foreseen, at the time of
giving the undertaking for indemnity, and to such amount as the Board
of Directors shall determine to be reasonable given the circumstances
of the matter, and provided that the total amount of the indemnity
shall not exceed 25% of the shareholders' equity of the
Company at the time of the indemnity, according to the last financial
statements, as of the date of making the actual payment of the
indemnity.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">The Company may also indemnify an officer of the
Company retroactively.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">II-2</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Subject to the provisions of the Companies
Law, the Company may indemnify any person, including an officer of the
Company, who is serving or has served on its behalf or at its request
as a director of another company in which the Company holds shares,
directly or indirectly, or in which the Company has any interest
(hereinafter "Director of Another Company")
in respect of any liability or expense as specified above, which shall
be imposed on him following an act which he carried out in his capacity
as a Director of Another Company, by means of retroactive indemnity or
by means of giving an undertaking to indemnify such person, provided
that the said undertaking is limited to types of events which, in the
opinion of the Board of Directors, may be foreseen, at the time of
giving the undertaking for indemnity, and to such amount as the Board
of Directors shall determine to be reasonable given the circumstances
of the matter.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">The above provisions of the Registrants Articles
of Association do not apply in respect of any of the following
events:</p>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">Breach of fiduciary duty, with
the exception of when an officer acted in good faith and had reasonable
grounds to assume that the act would not prejudice the Company's
interests.</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">Breach of duty of care
performed deliberately or
recklessly.</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">An action committed with
the intention of making personal gain,
unlawfully.</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">A penalty or fine imposed
on an officer.</td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Resolutions with respect to giving an exemption,
insurance, indemnity or giving an undertaking for indemnity to a
director and/or officer who is not a director shall be passed subject
to any law.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">A resolution to approve an exemption, insurance or
indemnity in the Articles of Association of the Company and the
alteration thereof shall be passed with such majority as specified in
the Companies Law.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">The Company's board of directors may
resolve to indemnify and insure the Company's office holders with
respect to liabilities resulting from this offering to the extent that
these liabilities are not covered by insurance. In the opinion of the
U.S. Securities and Exchange Commission, however, indemnification of
directors and office holders for liabilities arising under the
Securities Act is against public policy and therefore
unenforceable.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM 7.&nbsp;&nbsp;&nbsp;&nbsp;EXEMPTION FROM REGISTRATION
CLAIMED.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Not applicable.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">II-3</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">ITEM 8.&nbsp;&nbsp;&nbsp;&nbsp;EXHIBITS.</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px; width: 602px; padding-top: 6px" align="center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="8"></td>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="539"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; border-bottom: 1px solid #000000 ;padding-top: 8pt" align="center" valign="bottom" colspan="3">Exhibit<br>No.</td>
<td style="padding-top: 8pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; border-bottom: 1px solid #000000 ;padding-top: 8pt" align="left" valign="bottom" colspan="3">Description</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 8pt" align="center" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt" align="center" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">4.1</font></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 8pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 8pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt" align="left" valign="top" colspan="3">2003
Stock Option Plan (English translation) (incorporated by reference;
previously filed as an exhibit to the Company's Registration
Statement on Form F-1 (File No. 333-111849)).</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 8pt" align="center" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt" align="center" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">4.2</font></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 8pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 8pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt" align="left" valign="top" colspan="3">2004 Stock Option Plan (English translation)
(incorporated by reference; previously filed as an exhibit to the
Company's Registration Statement on Form F-1 (File No.
333-111849)).</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 8pt" align="center" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt" align="center" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">4.3</font></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 8pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 8pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt" align="left" valign="top" colspan="3">Management Contract,
dated as of April 4, 2003, between Lipman Electronic Engineering Ltd.
and Jacob Perry Management Services Ltd. (English translation)
(incorporated by reference; previously filed as an exhibit to the
Company's Registration Statement on Form F-1 (File No.
333-111849)).</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 8pt" align="center" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt" align="center" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">4.4</font></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 8pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 8pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt" align="left" valign="top" colspan="3">Form of Stock Option
Agreement for stock option grants issued outside of a plan (English
Translation).</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 8pt" align="center" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt" align="center" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">4.5</font></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 8pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 8pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt" align="left" valign="top" colspan="3">Form of Stock Option
Agreement for stock option grants issued outside of a plan (English
Translation).</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 8pt" align="center" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt" align="center" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">5.1</font></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 8pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 8pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt" align="left" valign="top" colspan="3">Opinion of Shnitzer,
Gotlieb, Sharon &amp; Co. (filed herewith).</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 8pt" align="center" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt" align="center" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">23.1</font></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 8pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 8pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt" align="left" valign="top" colspan="3">Consent of Counsel (contained in Exhibit
5.1).</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 8pt" align="center" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt" align="center" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">23.2</font></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 8pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 8pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt" align="left" valign="top" colspan="3">Consent of Independent Auditors
(filed herewith).</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 8pt" align="center" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt" align="center" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">24.1</font></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 8pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 8pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt" align="left" valign="top" colspan="3">Power of Attorney
(filed herewith).</td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM 9.&nbsp;&nbsp;&nbsp;&nbsp;UNDERTAKINGS.</p>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">(a)&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">The undersigned Registrant hereby
undertakes:</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="26"></td>
<td><img src="spacer.gif" height="1" width="523"></td>
</tr>
<tr>
<td align="left" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; font-style: normal; width: 40pt"></td>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 20pt">(1)&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 396pt">To file, during any
period in which offers or sales are being made, a post-effective
amendment to this Registration Statement:</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="79"></td>
<td><img src="spacer.gif" height="1" width="26"></td>
<td><img src="spacer.gif" height="1" width="496"></td>
</tr>
<tr>
<td align="left" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; font-style: normal; width: 60pt"></td>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 20pt">(i)&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 376pt">To include any prospectus required
by Section 10(a)(3) of the Securities Act of 1933;</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="79"></td>
<td><img src="spacer.gif" height="1" width="26"></td>
<td><img src="spacer.gif" height="1" width="496"></td>
</tr>
<tr>
<td align="left" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; font-style: normal; width: 60pt"></td>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 20pt">(ii)&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 376pt">To reflect in the prospectus any
facts or events arising after the effective date of the registration
statement (or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represent a fundamental change in the
information set forth in the Registration Statement. Notwithstanding
the foregoing, any increase or decrease in volume of securities offered
(if the total dollar value of securities offered would not exceed that
which was registered) and any deviation from the low or high end of the
estimated maximum offering range may be reflected in the form of
prospectus filed with the Commission pursuant to Rule 424(b) if, in
aggregate, the changes in volume and price represent no more than 20
percent change in the maximum aggregate offering price set forth in the
"Calculation of Registration Fee" table in
the effective registration statement; and</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="79"></td>
<td><img src="spacer.gif" height="1" width="26"></td>
<td><img src="spacer.gif" height="1" width="496"></td>
</tr>
<tr>
<td align="left" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; font-style: normal; width: 60pt"></td>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 20pt">(iii)&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 376pt">To include any material
information with respect to the plan of distribution not previously
disclosed in the registration statement or any material change to such
information in the registration statement.</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="26"></td>
<td><img src="spacer.gif" height="1" width="523"></td>
</tr>
<tr>
<td align="left" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; font-style: normal; width: 40pt"></td>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 20pt">(2)&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 396pt">That, for the purpose of
determining any liability under the Securities Act of 1933, each such
post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering
of such securities at that time shall be deemed to be the initial bona
fide offering thereof;</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="26"></td>
<td><img src="spacer.gif" height="1" width="523"></td>
</tr>
<tr>
<td align="left" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; font-style: normal; width: 40pt"></td>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 20pt">(3)&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 396pt">To
remove from registration by means of a post-effective amendment any of
the securities being registered which remain unsold at the termination
of the offering.</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">(b)&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">The undersigned
Registrant hereby undertakes that, for purposes of determining any
liability under the Securities Act of 1933, each filing of the
Registrant's annual report pursuant to </td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">II-4</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 40pt">&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">
Section 13(a) or Section 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of
an employee benefit plan's annual report pursuant to Section
15(d) of the Securities Exchange Act of 1934) that is incorporated by
reference in the registration statement shall be deemed to be a new
registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the
initial BONA FIDE offering thereof.</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="53"></td>
<td><img src="spacer.gif" height="1" width="549"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 40pt">(c)&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 416pt">Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to directors,
officers and controlling persons of the Registrant pursuant to the
foregoing provisions, or otherwise, the Registrant has been advised
that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and
is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a director, officer or
controlling person of the Registrant in the successful defense of any
action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered,
the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by
it is against public policy as expressed in the Act and will be
governed by the final adjudication of such
issue.</td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">II-5</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>






<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">SIGNATURES</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Pursuant to the requirements of the Securities Act of 1933, as
amended, the Registrant certifies that it has reasonable grounds to
believe that it meets all of the requirements for filing on Form S-8
and has duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in City of Rosh
Haayin, Israel, on the 20<sup>th</sup> day of February, 2004.</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px; width: 602px; padding-top: 12px" align="center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="285"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="8"></td>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="24"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="8"></td>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="253"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="left" valign="top" colspan="3">&nbsp;</td>
<td style="padding-top: 0pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="left" valign="top" colspan="7"><b>LIPMAN
ELECTRONIC ENGINEERING LTD.</b></td>
</tr>
<tr>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 16pt" align="left" valign="top" colspan="3">&nbsp;</td>
<td style="padding-top: 16pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 16pt" align="left" valign="top" colspan="3">By:</td>
<td style="padding-top: 16pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 16pt" align="left" valign="top" colspan="3">/s/
Isaac Angel</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="left" valign="top" colspan="3">&nbsp;</td>
<td style="padding-top: 0pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="left" valign="top" colspan="3">&nbsp;</td>
<td style="padding-top: 0pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="left" valign="top" colspan="3">Isaac Angel<br>
President and Chief Executive
Officer</td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">POWER OF ATTORNEY</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">KNOW
ALL PERSONS BY THESE PRESENTS, that each person whose signature appears
below constitutes and appoints Isaac Angel and Mike Lilo, or either of
them, as his true and lawful attorneys-in-fact and agents, with full
power of substitution and resubstitution, for him and in his name,
place and stead, in any and all capacities, to sign any and all
amendments (including pre- or post- effective amendments) to this
Registration Statement and any additional registration statement
pursuant to Rule 462 under the Securities Act and to file the same,
with all exhibits thereto, and other documents in connection therewith,
with the Securities and Exchange Commission, granting unto said
attorneys-in-fact and agents, and each of them, full power and
authority to do and perform each and every act and thing requisite and
necessary to be done in connection therewith, as fully to all intents
and purposes as he might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or either of
them, or their or his substitute or substitutes, may lawfully do or
cause to be done by virtue hereof.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Pursuant to the requirements
of the Securities Act of 1933, this Registration Statement has been
signed by the following persons in the capacities and on the dates
indicated:</p>
<table cellpadding="0" cellspacing="0" border="0" width="593">
<tr>
<td><img src="spacer.gif" height="1" width="218"></td>
<td><img src="spacer.gif" height="1" width="16"></td>
<td><img src="spacer.gif" height="1" width="234"></td>
<td><img src="spacer.gif" height="1" width="16"></td>
<td><img src="spacer.gif" height="1" width="109"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: bold; font-size: 8pt; font-style: normal; line-height: 12pt; border-bottom: 1px solid #ffffff;" align="center">Signature</td>
<td></td>
<td style="font-family: serif; font-weight: bold; font-size: 8pt; font-style: normal; line-height: 12pt; border-bottom: 1px solid #ffffff;" align="center">Title</td>
<td></td>
<td style="font-family: serif; font-weight: bold; font-size: 8pt; font-style: normal; line-height: 12pt; border-bottom: 1px solid #ffffff;" align="center">Date</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" align="center">/s/
Jacob Perry</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="left">Chairman of the Board of
Directors</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="center">February 20, 2004</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" align="center" valign="top"><img src="spacer.gif" height="25" width="1" align="top">Jacob
Perry</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" align="center">/s/
Isaac Angel</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="left">President and
Chief Executive Officer (Principal Executive Officer)</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="center">February 20, 2004</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" align="center" valign="top"><img src="spacer.gif" height="25" width="1" align="top">Isaac Angel</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" align="center">/s/ Mike
Lilo</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="left">Chief Financial Officer
(Principal Financial and Accounting Officer)</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="center">February
20, 2004</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" align="center" valign="top"><img src="spacer.gif" height="25" width="1" align="top">Mike Lilo</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" align="center">/s/ Meir Shamir</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="left">Director</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="center">February 20,
2004</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" align="center" valign="top"><img src="spacer.gif" height="25" width="1" align="top">Meir
Shamir</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" align="center">/s/ Ishay Davidi</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="left">Director</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="center">February 20,
2004</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" align="center" valign="top"><img src="spacer.gif" height="25" width="1" align="top">Ishay
Davidi</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" align="center">/s/ Aharon Lipman</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="left">Director</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="center">February 20,
2004</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" align="center" valign="top"><img src="spacer.gif" height="25" width="1" align="top">Aharon
Lipman</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" align="center">/s/ Rami Lipman</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="left">Director</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="center">February 20,
2004</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" align="center" valign="top"><img src="spacer.gif" height="25" width="1" align="top">Rami
Lipman</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">II-6</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<table cellpadding="0" cellspacing="0" border="0" width="593">
<tr>
<td><img src="spacer.gif" height="1" width="218"></td>
<td><img src="spacer.gif" height="1" width="16"></td>
<td><img src="spacer.gif" height="1" width="234"></td>
<td><img src="spacer.gif" height="1" width="16"></td>
<td><img src="spacer.gif" height="1" width="109"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: bold; font-size: 8pt; font-style: normal; line-height: 12pt; border-bottom: 1px solid #ffffff;" align="center">Signature</td>
<td></td>
<td style="font-family: serif; font-weight: bold; font-size: 8pt; font-style: normal; line-height: 12pt; border-bottom: 1px solid #ffffff;" align="center">Title</td>
<td></td>
<td style="font-family: serif; font-weight: bold; font-size: 8pt; font-style: normal; line-height: 12pt; border-bottom: 1px solid #ffffff;" align="center">Date</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" align="center">/s/ Avraham
Nussbaum</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="left">Director</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="center">February 20,
2004</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" align="center" valign="top"><img src="spacer.gif" height="25" width="1" align="top">Avraham
Nussbaum</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" align="center">/s/ Mordecai
Gorfung</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="left">Director</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="center">February 20,
2004</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" align="center" valign="top"><img src="spacer.gif" height="25" width="1" align="top">Mordecai
Gorfung</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" align="center">/s/ Linda Harnevo</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="left">Director</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="center">February 20,
2004</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" align="center" valign="top"><img src="spacer.gif" height="25" width="1" align="top">Linda
Harnevo</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" align="center">/s/ Izhak Davidi</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="left">Director</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="center">February 20,
2004</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" align="center" valign="top"><img src="spacer.gif" height="25" width="1" align="top">Izhak
Davidi</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" align="center">/s/ Jonathan
Kaplan</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="left">Director</td>
<td rowspan="3"></td>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" valign="top" rowspan="3" align="center">February 20, 2004</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt;" align="center" valign="top"><img src="spacer.gif" height="25" width="1" align="top">Jonathan Kaplan</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:12pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<font style="font-weight: normal; font-style: italic">Authorized Representative<br>in the United
States: </font>
</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px; width: 602px; padding-top: 12px" align="center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="24"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="8"></td>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="253"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="8"></td>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="285"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="left" valign="top" colspan="7"><b>LIPMAN
U.S.A.,
INC.</b></td>
<td style="padding-top: 0pt "><img src="spacer.gif" height="1" width="2"></td>
</tr>
<tr>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 16pt" align="left" valign="top" colspan="3">By:</td>
<td style="padding-top: 16pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 16pt" align="left" valign="top" colspan="3">/s/
Mony Zenou</td>
<td style="padding-top: 16pt "><img src="spacer.gif" height="1" width="2"></td>
</tr>
<tr>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="left" valign="top" colspan="3">&nbsp;</td>
<td style="padding-top: 0pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="left" valign="top" colspan="3">Name: Mony Zenou<br>Title:
<font style="letter-spacing: pt;">&nbsp;&nbsp;</font>President and Chief Executive Officer &mdash;
Lipman
U.S.A.</td>
<td style="padding-top: 0pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt" align="left" valign="top" colspan="3">&nbsp;</td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">II-7</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>






<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">INDEX
TO
EXHIBITS</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px; width: 602px; padding-top: 12px" align="center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="8"></td>
<td height="1" width="15"><img src="spacer.gif" height="1" width="1"></td>
<td height="1" width="10"><img src="spacer.gif" height="1" width="523"></td>
<td height="1" width="25"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; border-bottom: 1px solid #000000 ;padding-top: 16pt" align="center" valign="bottom" colspan="3">Exhibit<br>&nbsp;&nbsp;No.&nbsp;&nbsp;</td>
<td style="padding-top: 16pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; border-bottom: 1px solid #000000 ;padding-top: 16pt" align="left" valign="bottom" colspan="3">Description</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 16pt" align="right" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 10pt; text-indent: -10pt;  padding-top: 16pt" align="right" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">4.1</font></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 16pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 16pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 16pt" align="" valign="top" colspan="3">2003
Stock Option Plan (English translation) (incorporated by reference;
previously filed as an exhibit to the Company's Registration
Statement on Form F-1 (File No. 333-111849)).</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 16pt" align="right" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 10pt; text-indent: -10pt;  padding-top: 16pt" align="right" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">4.2</font></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 16pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 16pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 16pt" align="" valign="top" colspan="3">2004 Stock Option Plan (English translation)
(incorporated by reference; previously filed as an exhibit to the
Company's Registration Statement on Form F-1 (File No.
333-111849)).</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 16pt" align="right" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 10pt; text-indent: -10pt;  padding-top: 16pt" align="right" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">4.3</font></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 16pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 16pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 16pt" align="" valign="top" colspan="3">Management Contract,
dated as of April 4, 2003, between Lipman Electronic Engineering Ltd.
and Jacob Perry Management Services Ltd. (English translation)
(incorporated by reference; previously filed as an exhibit to the
Company's Registration Statement on Form  F-1 (File
No.  333-111849)).</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 16pt" align="right" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 10pt; text-indent: -10pt;  padding-top: 16pt" align="right" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">4.4</font></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 16pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 16pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 16pt" align="" valign="top" colspan="3">Form of Stock
Option Agreement for stock option grants issued outside of a plan
(English  Translation).</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 16pt" align="right" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 10pt; text-indent: -10pt;  padding-top: 16pt" align="right" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">4.5</font></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 16pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 16pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 16pt" align="" valign="top" colspan="3">Form of
Stock Option Agreement for stock option grants issued outside of a plan
(English  Translation).</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 16pt" align="right" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 10pt; text-indent: -10pt;  padding-top: 16pt" align="right" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">5.1</font></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 16pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 16pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 16pt" align="" valign="top" colspan="3">Opinion
of Shnitzer, Gotlieb, Sharon &amp; Co. (filed herewith).</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 16pt" align="right" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 10pt; text-indent: -10pt;  padding-top: 16pt" align="right" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">23.1</font></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 16pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 16pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 16pt" align="" valign="top" colspan="3">Consent of Counsel (contained in Exhibit
5.1).</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 16pt" align="right" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 10pt; text-indent: -10pt;  padding-top: 16pt" align="right" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">23.2</font></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 16pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 16pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 16pt" align="" valign="top" colspan="3">Consent of Independent Auditors
(filed herewith).</td>
</tr>
<tr>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-top: 16pt" align="right" valign="top" colspan="1">&nbsp;</td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal;  font-style: normal;  border-bottom: 3px double #ffffff; padding-left: 10pt; text-indent: -10pt;  padding-top: 16pt" align="right" valign="top" colspan="1" nowrap="nowrap"><font style="background-color: #ffffff;">24.1</font></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;     border-bottom: 3px double #ffffff; padding-top: 16pt " align="left" valign="top" nowrap="nowrap">&nbsp;</td>
<td style="padding-top: 16pt "><img src="spacer.gif" height="1" width="2"></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 16pt" align="" valign="top" colspan="3">Power of Attorney
(filed herewith).</td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>



</BODY>
</HTML>
[{"type": "S-8", "sequence": "1", "filename": "file001.htm", "description": "FORM S-8", "secsgml_size_bytes": 124523}]
{"company-data": {"conformed-name": "LIPMAN ELECTRONICS ENGINEERING LTD", "cik": "0001270484", "assigned-sic": "3578"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-112993", "film-number": "04619998"}, "mail-address": {"street1": "11 HAAMAL ST", "street2": "PARK AFEK", "city": "ROSH HAAYIN ISRAEL", "state": "L3", "zip": "9999999999"}}
As
filed with the Securities and Exchange Commission on February 20,
2004
Registration No.
333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
FORM S-8
REGISTRATION STATEMENT
Under
THE SECURITIES ACT OF
1933
LIPMAN
ELECTRONIC ENGINEERING LTD.
(Exact Name of
Registrant as Specified in Its
Charter)
Israel
Not
applicable
(State
or Other Jurisdiction of
Incorporation or
Organization)
(I.R.S. Employer
Identification
Number)
11 Haamal
Street, Park Afek
Rosh Haayin 48092
Israel
(Address, including zip code, of principal
executive offices)
Lipman Electronic
Engineering Ltd. 2003 Stock Option Plan
Lipman Electronic
Engineering Ltd. 2004 Stock Option Plan
Management Contract between
Lipman Electronic Engineering Ltd.
and Jacob Perry Management
Services Ltd.
Individual Stock Option Grants Outside of a Plan
(Full Title of the Plans)
Lipman U.S.A.,
Inc.
50 Gordon Drive
Syosset, NY 11791
(516) 484-9898
(Name, address, including zip code, and telephone
number, including area code, of agent for
service)
Copies
of all communications, including all communications sent to the agent
for service, should be sent to:
NEIL
GOLD, ESQ.
Fulbright & Jaworski L.L.P.
666 Fifth Avenue
New York, New York 10103
(212) 318-3000
Facsimile: (212)
318-3400
DAVID GOTLIEB, ADV.
Shnitzer, Gotlieb,
Sharon & Co.
7 Menachem Begin Rd.
Ramat-Gan 52521,
Israel
(972-3) 754-9922
Facsimile: (972-3)
754-9920
CALCULATION
OF REGISTRATION
FEE
Title
Of Each Class of
Securities To Be
Registered
Amount To
Be
Registered (1)
Proposed Maximum
Offering Price Per
Share
Proposed Maximum
Aggregate Offering
Price
Amount Of
Registration
Fee
Ordinary Shares, NIS 1.00
nominal value per
share
1,470,150
see
chart
below
$36,584,587
$4,636.00
(1)
This
registration statement shall also cover any additional indeterminable
number of Ordinary Shares as may be required pursuant to Lipman
Electronic Engineering Ltd. 2003 Stock Option Plan, the Lipman
Electronic Engineering 2004 Stock Option Plan, the Management Contract
between Lipman Electronic Engineering Ltd. and Jacob Perry Management
Services Ltd. and grants outside of a plan, in the event of a stock
dividend, stock split, recapitalization or other similar change in the
Ordinary Shares.
The following chart
illustrates the calculation of the registration
fee:
Number
of Shares
Offering Price Per Share
Maximum
Aggregate
Offering
Price
2004
Stock Option
Plan
550,000
$41.60
(2)
$22,880,000
2003 Stock Option
Plan
320,000
$22.00
(2)
$7,040,000
Management Contract between
Lipman Electronic Engineering Ltd. and Jacob Perry Management Services
Ltd.
120,000
$15.53
(2)
$1,863,600
Stock option grants issued
outside of a plan (3)
68,250
$21.58
(2)
$1,472,835
Stock option grants issued
outside of a plan (4)
411,900
$8.08
(2)
$3,328,152
TOTAL:
1,470,150
—
$36,584,587
REGISTRATION
FEE:
—
—
$4,636.00
(2)
Pursuant
to Rule 457(h), the aggregate offering price and the fee have been
computed on the basis of the price at which the options may be
exercised. The offering price per share set forth for such shares is
the exercise price per share at which such options are
exercisable.
(3)
Stock Option Grants to
employees issued outside of a plan at an offering price of $21.58 per
share.
(4)
Stock Option Grants to
employees issued outside of a plan at an offering price of $8.08 per
share.
PART
I
INFORMATION REQUIRED IN THE SECTION 10(A) PROSPECTUS
ITEM 1.    PLAN INFORMATION.
The documents containing the
information specified in this Item 1 will be sent or given to
employees, directors and others as specified by Rule 428(b)(1). In
accordance with the rules and regulations of the Securities and
Exchange Commission (the "Commission") and
the instructions to Form S-8, such documents are not being filed with
the Commission either as part of this Registration Statement or as
prospectuses or prospectus supplements pursuant to Rule 424.
ITEM 2.
REGISTRATION INFORMATION AND EMPLOYEE
PLAN ANNUAL INFORMATION.
The documents containing the
information specified in this Item 2 will be sent or given to
employees, directors or others as specified by Rule 428(b)(1). In
accordance with the rules and regulations of the Commission and the
instructions to Form S-8, such documents are not being filed with the
Commission either as part of this Registration Statement or as
prospectuses or prospectus supplements pursuant to Rule
424.
I-1
PART
II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
ITEM 3.
INCORPORATION OF DOCUMENTS BY
REFERENCE.
The following documents filed by Lipman Electronic
Engineering Ltd. (the "Company" or the
"Registrant") with the Commission pursuant to
the Securities Act of 1933, as amended (the "Securities
Act") and the Securities Exchange Act of 1934, as amended
(the "Exchange Act") are incorporated by
reference in this Registration Statement:
(a) Description of
ordinary shares contained in the Registrant's registration
statement on Form F-1 (File No. 333-111849) as declared effective on
January 28, 2004 and in the Registrant's registration statement
on Form 8-A filed pursuant to the Exchange Act filed on January 12,
2004.
All documents subsequently filed by the Registrant with
the Commission pursuant to Sections 13(a), 13(c), 14 and 15(d) of the
Exchange Act, prior to the filing of a post-effective amendment which
(i) indicates that all securities offered under this Registration
Statement have been sold or (ii) which deregisters all securities
remaining unsold, shall be deemed to be incorporated by reference into
this Registration Statement and to be a part of this Registration
Statement from the date of filing of such documents.
ITEM
4.    DESCRIPTION OF SECURITIES.
Not applicable.
ITEM
5.    INTEREST OF NAMED EXPERTS AND COUNSEL.
Not
applicable.
ITEM 6.    INDEMNIFICATION OF DIRECTORS AND
OFFICERS.
Under the Israeli Companies Law, a company is
prohibited from exculpating an officer or director from liability for
the breach of his duty of loyalty. The company may exculpate an officer
or director from liability for the breach of his duty of care, may
insure his liability for a breach of these duties, or indemnify him for
a breach, but only according to the following provisions:
A
company may provide in its Articles of Association that an officer or a
director of the company may be exculpated, to the extent provided in
the Articles, from liability for the breach of his duty of care.
A Company may provide in its Articles of Association that the
company may indemnify an officer or a director in such capacity,
for:
•
a monetary liability incurred
pursuant to a judgement, including a settlement or arbitration decision
approved by a court, in an action brought by a third
party;
•
reasonable legal expenses
incurred in an action brought against the director or officer by or on
behalf of the company or others;
and
•
reasonable legal expenses incurred
in defending criminal charges of which the director or officer was
acquitted, or as a result of a criminal charge that does not require
proving criminal intent of which the director or officer was
convicted.
The indemnification provision in a company's
Articles of Association may be a blanket obligation to indemnify in
advance, provided it is limited to events the board of directors can
foresee when providing the obligation and that it is limited to a sum
the board of directors determines is reasonable in the circumstances,
or a provision permitting the company to indemnify an officer or a
director on an ad hoc basis after the fact.
II-1
A Company may provide in its Articles of
Association that the company may insure an officer or a director. This
insurance may cover liability for breach of the duty of care or, to the
extent the officer or director acted in good faith and has a reasonable
basis to believe that the act would not prejudice the company, for the
breach of the duty of loyalty. A company's Articles of
Association may also allow it to insure officers and directors for
monetary liabilities incurred as a result of an act or omission
committed in connection with his serving as an officer or director of
the company.
All of these provisions are specifically limited in
their scope by the Israeli Companies Law, which provides that a company
may not indemnify an officer or director nor enter into an insurance
contract that would provide coverage for any monetary liability
incurred as a result of any of the
following:
•
a breach by the officer or
director of the duty of loyalty, unless the officer or director acted
in good faith and has a reasonable basis to believe that the act would
not prejudice the company;
•
an
intentional or reckless breach by the officer or director of the duty
of care;
•
any act of omission done with
the intent to derive an illegal personal benefit; or
•
any fine levied against the director or
officer.
The Registrant's Articles of Association, as
amended, provides as follows:
The Company may exempt, in
advance, an officer of the Company from his liability, in whole or in
part, in respect of damage following breach of his duty of care towards
the Company.
Subject to the provisions of the Companies Law, the
Company may engage in a contract to insure the liability of an officer
of the Company, including an officer of the Company who is serving or
has served on its behalf or at its request as a director of another
company in which the Company holds shares, direct or indirectly, or in
which the Company has any interest (hereinafter: "Director
of Another Company") in respect of any liability imposed
upon him following an act which he carried out in his capacity as an
officer of the Company in any one of the following
events:
•
Breach of the duty of care
towards the Company or towards any other
person.
•
Breach of fiduciary duty
towards the Company, provided that the officer acted in good faith and
had reasonable grounds to assume that the act would not prejudice the
Company's interests.
•
Financial
liability which shall be imposed upon him in favor of another
person.
The Company may indemnify an officer of the Company on
account of a liability or expense as specified below, which was imposed
upon him following an act which he carried out in his capacity as an
officer of the Company.
•
Financial
liability imposed upon him in favor of another person pursuant to a
judgment, including a compromise judgment, or an arbitrator's
award approved by a court.
•
Reasonable
litigation expenses, including legal fees paid by an officer or which
he war required to pay by a court, in a proceeding filed against him by
the Company or in its behalf or by another person, or in criminal
charges from which he was acquitted, or in criminal charges in which he
was convicted of an offense which does not require proof of mens
rea.
The Company may give an undertaking in advance to indemnify
an officer in respect of a liability or expense as specified above,
provided that the undertaking is limited to types of events which, in
the opinion of the Board of Directors, may be foreseen, at the time of
giving the undertaking for indemnity, and to such amount as the Board
of Directors shall determine to be reasonable given the circumstances
of the matter, and provided that the total amount of the indemnity
shall not exceed 25% of the shareholders' equity of the
Company at the time of the indemnity, according to the last financial
statements, as of the date of making the actual payment of the
indemnity.
The Company may also indemnify an officer of the
Company retroactively.
II-2
Subject to the provisions of the Companies
Law, the Company may indemnify any person, including an officer of the
Company, who is serving or has served on its behalf or at its request
as a director of another company in which the Company holds shares,
directly or indirectly, or in which the Company has any interest
(hereinafter "Director of Another Company")
in respect of any liability or expense as specified above, which shall
be imposed on him following an act which he carried out in his capacity
as a Director of Another Company, by means of retroactive indemnity or
by means of giving an undertaking to indemnify such person, provided
that the said undertaking is limited to types of events which, in the
opinion of the Board of Directors, may be foreseen, at the time of
giving the undertaking for indemnity, and to such amount as the Board
of Directors shall determine to be reasonable given the circumstances
of the matter.
The above provisions of the Registrants Articles
of Association do not apply in respect of any of the following
events:
•
Breach of fiduciary duty, with
the exception of when an officer acted in good faith and had reasonable
grounds to assume that the act would not prejudice the Company's
interests.
•
Breach of duty of care
performed deliberately or
recklessly.
•
An action committed with
the intention of making personal gain,
unlawfully.
•
A penalty or fine imposed
on an officer.
Resolutions with respect to giving an exemption,
insurance, indemnity or giving an undertaking for indemnity to a
director and/or officer who is not a director shall be passed subject
to any law.
A resolution to approve an exemption, insurance or
indemnity in the Articles of Association of the Company and the
alteration thereof shall be passed with such majority as specified in
the Companies Law.
The Company's board of directors may
resolve to indemnify and insure the Company's office holders with
respect to liabilities resulting from this offering to the extent that
these liabilities are not covered by insurance. In the opinion of the
U.S. Securities and Exchange Commission, however, indemnification of
directors and office holders for liabilities arising under the
Securities Act is against public policy and therefore
unenforceable.
ITEM 7.    EXEMPTION FROM REGISTRATION
CLAIMED.
Not applicable.
II-3
ITEM 8.    EXHIBITS.
Exhibit
No.
Description
4.1
2003
Stock Option Plan (English translation) (incorporated by reference;
previously filed as an exhibit to the Company's Registration
Statement on Form F-1 (File No. 333-111849)).
4.2
2004 Stock Option Plan (English translation)
(incorporated by reference; previously filed as an exhibit to the
Company's Registration Statement on Form F-1 (File No.
333-111849)).
4.3
Management Contract,
dated as of April 4, 2003, between Lipman Electronic Engineering Ltd.
and Jacob Perry Management Services Ltd. (English translation)
(incorporated by reference; previously filed as an exhibit to the
Company's Registration Statement on Form F-1 (File No.
333-111849)).
4.4
Form of Stock Option
Agreement for stock option grants issued outside of a plan (English
Translation).
4.5
Form of Stock Option
Agreement for stock option grants issued outside of a plan (English
Translation).
5.1
Opinion of Shnitzer,
Gotlieb, Sharon & Co. (filed herewith).
23.1
Consent of Counsel (contained in Exhibit
5.1).
23.2
Consent of Independent Auditors
(filed herewith).
24.1
Power of Attorney
(filed herewith).
ITEM 9.    UNDERTAKINGS.
(a)
The undersigned Registrant hereby
undertakes:
(1)
To file, during any
period in which offers or sales are being made, a post-effective
amendment to this Registration Statement:
(i)
To include any prospectus required
by Section 10(a)(3) of the Securities Act of 1933;
(ii)
To reflect in the prospectus any
facts or events arising after the effective date of the registration
statement (or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represent a fundamental change in the
information set forth in the Registration Statement. Notwithstanding
the foregoing, any increase or decrease in volume of securities offered
(if the total dollar value of securities offered would not exceed that
which was registered) and any deviation from the low or high end of the
estimated maximum offering range may be reflected in the form of
prospectus filed with the Commission pursuant to Rule 424(b) if, in
aggregate, the changes in volume and price represent no more than 20
percent change in the maximum aggregate offering price set forth in the
"Calculation of Registration Fee" table in
the effective registration statement; and
(iii)
To include any material
information with respect to the plan of distribution not previously
disclosed in the registration statement or any material change to such
information in the registration statement.
(2)
That, for the purpose of
determining any liability under the Securities Act of 1933, each such
post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering
of such securities at that time shall be deemed to be the initial bona
fide offering thereof;
(3)
To
remove from registration by means of a post-effective amendment any of
the securities being registered which remain unsold at the termination
of the offering.
(b)
The undersigned
Registrant hereby undertakes that, for purposes of determining any
liability under the Securities Act of 1933, each filing of the
Registrant's annual report pursuant to
II-4
Section 13(a) or Section 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of
an employee benefit plan's annual report pursuant to Section
15(d) of the Securities Exchange Act of 1934) that is incorporated by
reference in the registration statement shall be deemed to be a new
registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the
initial BONA FIDE offering thereof.
(c)
Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to directors,
officers and controlling persons of the Registrant pursuant to the
foregoing provisions, or otherwise, the Registrant has been advised
that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and
is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a director, officer or
controlling person of the Registrant in the successful defense of any
action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered,
the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by
it is against public policy as expressed in the Act and will be
governed by the final adjudication of such
issue.
II-5
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as
amended, the Registrant certifies that it has reasonable grounds to
believe that it meets all of the requirements for filing on Form S-8
and has duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in City of Rosh
Haayin, Israel, on the 20
th
day of February, 2004.
LIPMAN
ELECTRONIC ENGINEERING LTD.
By:
/s/
Isaac Angel
Isaac Angel
President and Chief Executive
Officer
POWER OF ATTORNEY
KNOW
ALL PERSONS BY THESE PRESENTS, that each person whose signature appears
below constitutes and appoints Isaac Angel and Mike Lilo, or either of
them, as his true and lawful attorneys-in-fact and agents, with full
power of substitution and resubstitution, for him and in his name,
place and stead, in any and all capacities, to sign any and all
amendments (including pre- or post- effective amendments) to this
Registration Statement and any additional registration statement
pursuant to Rule 462 under the Securities Act and to file the same,
with all exhibits thereto, and other documents in connection therewith,
with the Securities and Exchange Commission, granting unto said
attorneys-in-fact and agents, and each of them, full power and
authority to do and perform each and every act and thing requisite and
necessary to be done in connection therewith, as fully to all intents
and purposes as he might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or either of
them, or their or his substitute or substitutes, may lawfully do or
cause to be done by virtue hereof.
Pursuant to the requirements
of the Securities Act of 1933, this Registration Statement has been
signed by the following persons in the capacities and on the dates
indicated:
Signature
Title
Date
/s/
Jacob Perry
Chairman of the Board of
Directors
February 20, 2004
Jacob
Perry
/s/
Isaac Angel
President and
Chief Executive Officer (Principal Executive Officer)
February 20, 2004
Isaac Angel
/s/ Mike
Lilo
Chief Financial Officer
(Principal Financial and Accounting Officer)
February
20, 2004
Mike Lilo
/s/ Meir Shamir
Director
February 20,
2004
Meir
Shamir
/s/ Ishay Davidi
Director
February 20,
2004
Ishay
Davidi
/s/ Aharon Lipman
Director
February 20,
2004
Aharon
Lipman
/s/ Rami Lipman
Director
February 20,
2004
Rami
Lipman
II-6
Signature
Title
Date
/s/ Avraham
Nussbaum
Director
February 20,
2004
Avraham
Nussbaum
/s/ Mordecai
Gorfung
Director
February 20,
2004
Mordecai
Gorfung
/s/ Linda Harnevo
Director
February 20,
2004
Linda
Harnevo
/s/ Izhak Davidi
Director
February 20,
2004
Izhak
Davidi
/s/ Jonathan
Kaplan
Director
February 20, 2004
Jonathan Kaplan
Authorized Representative
in the United
States:
LIPMAN
U.S.A.,
INC.
By:
/s/
Mony Zenou
Name: Mony Zenou
Title:
President and Chief Executive Officer —
Lipman
U.S.A.
II-7
INDEX
TO
EXHIBITS
Exhibit
No.
Description
4.1
2003
Stock Option Plan (English translation) (incorporated by reference;
previously filed as an exhibit to the Company's Registration
Statement on Form F-1 (File No. 333-111849)).
4.2
2004 Stock Option Plan (English translation)
(incorporated by reference; previously filed as an exhibit to the
Company's Registration Statement on Form F-1 (File No.
333-111849)).
4.3
Management Contract,
dated as of April 4, 2003, between Lipman Electronic Engineering Ltd.
and Jacob Perry Management Services Ltd. (English translation)
(incorporated by reference; previously filed as an exhibit to the
Company's Registration Statement on Form  F-1 (File
No.  333-111849)).
4.4
Form of Stock
Option Agreement for stock option grants issued outside of a plan
(English  Translation).
4.5
Form of
Stock Option Agreement for stock option grants issued outside of a plan
(English  Translation).
5.1
Opinion
of Shnitzer, Gotlieb, Sharon & Co. (filed herewith).
23.1
Consent of Counsel (contained in Exhibit
5.1).
23.2
Consent of Independent Auditors
(filed herewith).
24.1
Power of Attorney
(filed herewith).