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<SEC-DOCUMENT>0001178913-08-000030.txt : 20080103
<SEC-HEADER>0001178913-08-000030.hdr.sgml : 20080103
<ACCEPTANCE-DATETIME>20080103151803
ACCESSION NUMBER:		0001178913-08-000030
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20080103
FILED AS OF DATE:		20080103
DATE AS OF CHANGE:		20080103

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NUR MACROPRINTERS LTD
		CENTRAL INDEX KEY:			0000946394
		STANDARD INDUSTRIAL CLASSIFICATION:	PRINTING TRADES MACHINERY & EQUIPMENT [3555]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26498
		FILM NUMBER:		08506027

	BUSINESS ADDRESS:	
		STREET 1:		5 DAVID NAVON STREET
		STREET 2:		MOSHAV MAGSHIMIM
		CITY:			PETAH-TIKVA ISRAEL
		STATE:			L3
		ZIP:			00000
		BUSINESS PHONE:		01197239087676

	MAIL ADDRESS:	
		STREET 1:		P O BOX 8440
		STREET 2:		MOSHAV MAGSHIMIM
		CITY:			ISRAEL
		STATE:			L3
		ZIP:			00000

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NUR ADVANCED TECHNOLOGIES LTD
		DATE OF NAME CHANGE:	19950607
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>zk74637.htm
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<HEAD>
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     <!-- Control Number: 74637                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   6-K                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>6-K</TITLE>
</HEAD>
<BODY>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>UNITED STATES </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=4>SECURITIES AND
EXCHANGE COMMISSION </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Washington, D.C. 20549 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>FORM 6-K </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>REPORT OF FOREIGN
PRIVATE ISSUER <BR>
PURSUANT TO RULE
13a-16 OR 15d-16 <BR>
UNDER THE SECURITIES
EXCHANGE ACT OF 1934 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the month of
January 2008 <BR>
Commission File Number:
000-26498 </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="5"><U><B>NUR Macroprinters
Ltd.</B></U> </FONT> <BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Translation
of registrant&#146;s name into English) </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Center Underline-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>12 Abba Hillel
Silver Street, Lod 71111, Israel </U><BR>
(Address
of principal executive offices) </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate by check mark whether the
registrant files or will file annual reports under cover of Form 20-F or Form 40-F. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Form 20-F <FONT size="3" face="Wingdings">x
</font> Form 40-F
<FONT size="3" face="Wingdings">o
</font> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate by check mark
if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule101(b)(1):
____ </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate by check mark
if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule101(b)(7):
____ </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate by check mark whether the
registrant by furnishing the information contained in this Form is also thereby furnishing
the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange
Act of 1934. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Yes <FONT size="3" face="Wingdings">o
</font> No <FONT size="3" face="Wingdings">x
</font> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If &#147;Yes&#148; is marked,
indicate below the file number assigned to the registrant in connection with Rule
12g3-2(b): 82- ________</FONT></P>


<p align=center>
<font size=2></font></p>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THIS FORM 6-K IS HEREBY INCORPORATED
BY REFERENCE INTO THE REGISTRANT&#146;S REGISTRATION STATEMENTS ON FORM F-3 (NOS.
333-144171, 333-115826, 333-114428, 333-47842 AND 333-92493) AND FORM S-8 (NOS. 333-102288
AND 333-92491), AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS SUBMITTED,
TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On January 3, 2008, NUR Macroprinters
Ltd. (the &#147;Company&#148;) issued a press release announcing that the annual meeting
of shareholders will be held on Thursday, January 31, 2008. The text of the press release
is attached hereto as Exhibit 1. At the shareholders meeting, the Company&#146;s
shareholders will be asked to approve the election of directors, to approve the
reappointment of NUR&#146;s independent auditors, to extend the term of the NUR&#146;s
1998 Share Option Plan for Non-Employee Directors, to approve the change of NUR&#146;s
corporate name and to approve the procurement of a &#147;runoff&#148; directors and
officers liability insurance policy. The text of the notice of the annual meeting of
shareholders and proxy statement is attached hereto as Exhibit 2. At the meeting,
NUR&#146;s shareholders will also discuss NUR&#146;s financial statements for the fiscal
year ended December 31, 2006 and receive a report in connection with the previously
publicized agreement to sell NUR&#146;s business to Hewlett-Packard Company (the
&#147;Agreement&#148;). A form of the Agreement is attached hereto as Exhibit 3. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following documents are attached
hereto and incorporated herein by reference: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 1. Press Release dated
January 3, 2008. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 2. Notice of the annual
general meeting of the shareholders and proxy statement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 3. Asset Purchase Agreement,
by and among NUR Macroprinters Ltd. and Hewlett-Packard Company, dated as of December 9,
2007. </FONT></P>

<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Signatures </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized. </FONT></P>



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<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NUR Macroprinters Ltd.<BR><BR>
<BR>By: /s/ David Reis<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
David Reis<BR>President and Chief Executive Officer</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: January 3, 2008 </FONT></P>

<p align=center>
<font size=2>3</font></p>
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<TYPE>EX-1
<SEQUENCE>2
<FILENAME>exhibit_1.htm
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     <!-- Control Number: 74637                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   6-K                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
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<P align=right><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 1</B></U> </FONT> </P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<IMG SRC="nur.jpg"></FONT></P>


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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95% align=right>
<FONT FACE="Times New Roman, Times, Serif" SIZE="6" ><B><I>NEWS</I></B> </FONT> </TD>
</TR>
</TABLE>


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<HR SIZE=1 NOSHADE WIDTH=100% ALIGN=LEFT>


<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="4"><U><B>FOR IMMEDIATE RELEASE</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>NUR ANNOUNCES ANNUAL
MEETING OF SHAREHOLDERS </FONT></H1>

<!-- MARKER FORMAT-SHEET="Footnote Rule-TNR" FSL="Workstation" -->
<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=center>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>LOD, Israel, January 3, 2008
&#150;<B> NUR Macroprinters Ltd. (NURMF.PK) (&#147;NUR&#148;)</B>, a leading supplier of
wide-format inkjet production printers for the printing industry, announced today that it
will hold its annual general meeting of shareholders on January 31, 2008 at 3:00 p.m.
Israel time, at NUR&#146;s offices located at 12 Abba Hillel Street, Northern Industrial
Park, Lod, Israel. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At the shareholders&#146; meeting,
NUR&#146;s shareholders will be asked to approve the election of directors, to approve the
reappointment of NUR&#146;s independent auditors, to extend the term of the NUR&#146;s
1998 Share Option Plan for Non-Employee Directors, to approve the change of NUR&#146;s
corporate name and to approve the procurement of a &#147;runoff&#148; directors and
officers liability insurance policy. At the meeting, NUR&#146;s shareholders will also
discuss NUR&#146;s financial statements for the fiscal year ended December 31, 2006 and
receive a report in connection with the previously publicized agreement to sell NUR&#146;s
business to Hewlett-Packard Company. Shareholders of record as of the close of business on
December 28, 2007 are entitled to vote at the shareholders&#146; meeting. NUR plans to
mail a proxy statement which describes the proposals to be considered at the
shareholders&#146; meeting and related materials on or about January 4, 2008. The proxy
statement and related materials will also be available in the &#147;Investors&#148;
section of NUR&#146;s website at <U>www.nur.com</U>. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>ABOUT NUR MACROPRINTERS
LTD.</B><BR>NUR Macroprinters (NURMF.PK) is a
leading supplier of wide-format inkjet printers for the printing industry. NUR develops,
manufactures and markets wide-format inkjet production printers and high-quality companion
inks for a wide variety of business enterprises including commercial printing companies,
sign printers, screen printers, billboard and media companies, photo labs, and digital
printing service providers. NUR&#146;s cost-effective, reliable printing solutions are
helping customers worldwide deliver the high quality and fast turnaround they need to meet
their clients&#146; exacting demands and succeed in today&#146;s competitive marketplace.
More information about NUR Macroprinters is available at <U>www.nur.com</U>. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#150; more &#150;  </FONT></P>


<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>SAFE HARBOR:</B><BR> This press release contains
forward-looking statements that involve substantial risks and uncertainties. All
statements, other than statements of historical facts, included in this press release
regarding our plans and objectives of management are forward-looking statements. The use
of certain words, including the words &#147;estimate,&#148; &#147;project,&#148;
&#147;intend,&#148; &#147;expect,&#148; &#147;believe&#148; and similar expressions are
intended to identify forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. We may not actually achieve the plans,
intentions or expectations disclosed in our forward-looking statements and you should not
place undue reliance on our forward-looking statements. Actual results or events could
differ materially from the plans, intentions and expectations disclosed in the
forward-looking statements we make. Various important factors could cause actual results
or events to differ materially from those which may be expressed or implied by our
forward-looking statements. These and other risks and uncertainties associated with our
business are described in greater detail in the filings we make from time to time with
Securities and Exchange Commission, including our Annual Report on Form 20-F. The
forward-looking statements are made as of this date and NUR does not undertake any
obligation to update any forward-looking statements, whether as a result of new
information, future events or otherwise. This press release is available at
<U>www.nur.com</U>. </FONT> </P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONTACT:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NUR
Macroprinters Ltd. <BR>Yossy Zylberberg
<BR>COO &amp; CFO
<BR>+972 (8) 9145466
<BR><U>yossyz@nur.com</U> </FONT></TD>
</TR>
</TABLE>
<BR>





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end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>exhibit_2.htm
<TEXT>
<HTML>
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     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\74637\a74637.eep -->
     <!-- Control Number: 74637                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   6-K                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>6-K</TITLE>
</HEAD>
<BODY>

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<P align=right><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 2</B></U> </FONT> </P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<IMG SRC="nur.jpg"></FONT></P>


<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NUR MACROPRINTERS LTD.
</B><BR>12 Abba Hillel Silver Street
<BR>Lod, Northern Industrial Park
<BR>Israel </FONT></P>

<HR SIZE=1 NOSHADE WIDTH=25% ALIGN=center>

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
<BR>To be held on January 31, 2008
<BR>3:00 p.m.</B> </FONT></P>

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<HR SIZE=1 NOSHADE WIDTH=25% ALIGN=center>





<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To Our Shareholders: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
annual meeting of shareholders of NUR Macroprinters Ltd. (referred to hereinafter as
&#147;<B>NUR</B>&#148; or the <B>&#147;Company</B>&#148;) will be held at our offices at
12 Abba Hillel Silver Street, Lod, Northern Industrial Park, Israel on January 31, 2008 at
3:00 p.m., Israel time, and thereafter as it may be adjourned from time to time (the
<B>&#147;Shareholders</B> <B>Meeting</B>&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
agenda of the meeting will be as follows: </FONT></P>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     To elect five members of the Company&#146;s Board of Directors to hold office
                    until the next annual meeting of shareholders and until their respective
                    successors are duly elected and qualified; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     To reappoint Kost Forer Gabbay &amp; Kasierer (a member of Ernst &amp; Young
                    Global) as the independent auditors of the Company for the fiscal year ended
                    December 31, 2007, and to authorize our Board of Directors to approve the
                    remuneration of the independent auditors in accordance with the volume and
                    nature of their services; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     To extend the term of the Company&#146;s 1998 Share Option Plan for
                    Non-Employee Directors for an additional ten-year term; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     To approve an amendment to the Company&#146;s Articles of Association and
                    Memorandum of Association changing the name of the Company; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     To approve the procurement of a &#147;Runoff&#148; liability insurance policy
          for the Company&#146;s and the Company&#146;s subsidiaries&#146; officers and
          directors;  </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<p align=center>
<font size=2>i</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     To receive a report in connection with the sale of the Company&#146;s business
                    to Hewlett-Packard Company; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     To discuss NUR&#146;s audited financial statements for the year ended December
                    31, 2006; and </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     To act upon any other matters that may properly come before the Shareholders
                    Meeting or any adjournment(s) thereof. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
Board of Directors recommends that you vote in favor of the foregoing proposals, all of
which are more fully described in the accompanying Proxy Statement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Only
shareholders of record at the close of business on December 28, 2007 (the &#147;<B>Record
Date</B>&#148;) are entitled to notice of, and to vote at, the Shareholders Meeting or any
adjournment(s) thereof. On the Record Date, the Company had 72,710,505 issued and
outstanding ordinary shares. Each ordinary share is entitled to one vote on each matter to
be voted on at the Shareholders Meeting. The Company&#146;s Amended and Restated Articles
of Association do not provide for cumulative voting for the election of directors or for
any other purpose. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
the proposals, with the exception of Proposal 4, are ordinary proposals, which require the
affirmative vote of a majority of the ordinary shares of the Company voted in person or by
proxy at the Shareholders Meeting on the matter presented for passage. Under Israeli law,
Proposal 4 requires the affirmative vote of 75% of the ordinary shares of the Company
voted in person or by proxy at the Shareholders Meeting on the matter presented for
passage. Proposal 5, as it applies to Messrs. Yuval Cohen and Hemi Raphael, requires that
the affirmative vote of a majority of the ordinary shares of the Company voted in person
or by proxy at the Shareholders Meeting on the matter presented for passage at the Meeting
shall include at least one-third of the votes of the shareholders represented at the
Meeting who do not have a personal interest in the matter (unless the total number of
shares of the non-interested shareholders voting against the proposal, if any, does not
represent more than one percent of the Company&#146;s outstanding voting rights, in which
case a simple majority of the voting rights represented at the Meeting is sufficient). The
votes of all shareholders voting on a proposal are counted. Abstentions and broker
non-votes will not be treated as either a vote &#147;for&#148; or &#147;against&#148; a
proposal. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
presence at the Shareholders Meeting, in person or by proxy, of two or more shareholders,
holding more than 33<SUP>1</SUP>/<SUB>3</SUB>% of the voting rights, will constitute a quorum. All ordinary shares
represented in person or by proxy (including broker non-votes and shares that abstain or
do not vote with respect to one or more of the matters to be voted upon) will be counted
for purposes of determining whether a quorum exists. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Joint
holders of ordinary shares should note that, pursuant to Article 27.6 of the
Company&#146;s Amended and Restated Articles of Association, the right to vote at the
Shareholders Meeting will be conferred exclusively upon the senior among the joint owners
attending the Shareholders Meeting, in person or by proxy, and for this purpose, seniority
will be determined by the order in which the names appear in the Company&#146;s register
of shareholders. </FONT></P>


<p align=center>
<font size=2>ii</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
expect to mail the Proxy Statement and the accompanying form of proxy attached hereto, to
shareholders of record (as determined above) on or about January 4, 2008. All expenses of
this solicitation will be borne by the Company. In addition to the solicitation of proxies
by mail, directors, officers, and employees of the Company, without receiving additional
compensation, may solicit proxies by telephone, in person, or by other means. Brokerage
firms, nominees, fiduciaries, and other custodians have been requested to forward proxy
solicitation materials to the beneficial owners of ordinary shares of the Company held of
record by such persons, and the Company will reimburse such brokerage, nominees,
fiduciaries, and other custodians for reasonable out-of-pocket expense incurred by them in
connection therewith. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
are cordially invited to attend the Shareholders Meeting. <B>Whether or not you plan to be
present at the Shareholders Meeting and regardless of the number of ordinary shares you
own, you are requested to complete and return the enclosed proxy, which is solicited by
the Company&#146;s Board of Directors, and mail it promptly in the accompanying envelope,
so that your votes may be recorded. Under the Company&#146;s Amended and Restated Articles
of Association, your proxy must be received by 3:00 p.m., Israel time, on January 29,
2008, (two days prior to the Shareholders Meeting), to be counted for the Shareholders
Meeting. </B>If you are present at the Shareholders Meeting and desire to vote in person,
you may revoke your appointment of proxy at the Shareholders Meeting so that you may vote
your shares personally. </FONT></P>


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<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By Order of the Board of Directors,<BR><BR>
<BR>By: /s/ Yuval Cohen<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Yuval Cohen<BR>Chairman of the Board of Directors</FONT></TD>
</TR>
</TABLE>
<BR>


<p align=center>
<font size=2>iii</font></p>
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<page>


<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NUR MACROPRINTERS LTD.
<BR>12 Abba Hillel Silver Street
<BR>Lod, Northern Industrial Park
<BR>Israel</B> </FONT></P>

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<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>PROXY STATEMENT FOR AN ANNUAL MEETING OF SHAREHOLDERS
<BR>To be held on January 31, 2008
<BR>3:00 p.m.</B> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
annual meeting of shareholders of NUR Macroprinters Ltd. will be held on January 31, 2008
at our offices, located at 12 Abba Hillel Silver Street, Lod, Northern Industrial Park,
Israel, at 3:00 p.m., Israel time (the &#147;<B>Shareholders</B> <B>Meeting</B>&#148;),
for the purposes set forth in the Company&#146;s Notice of Annual Meeting of Shareholders.
The enclosed form of proxy is solicited by our Board of Directors for use at the
Shareholders Meeting and at any adjournments of the Shareholders Meeting. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
proxy materials are being mailed to shareholders as of December 28, 2007 on or about
January 4, 2008. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
form of proxy for use at the Shareholders Meeting and a return envelope for the proxy are
enclosed. Upon the receipt of a properly signed and dated proxy in the form enclosed,
which is received in time and not revoked prior to the Shareholders Meeting, Mr. David
Reis, our President and Chief Executive Officer and Mr. Yosef Zylberberg, our Chief
Operating Officer and Chief Financial Officer, or either one of them, will vote, as proxy,
the ordinary shares represented thereby at the Shareholders Meeting in accordance with the
instructions indicated on the proxy, or, if no direction is indicated, in accordance with
the recommendation of the Board of Directors of the Company. In accordance with the
Company&#146;s Amended and Restated Articles of Association, your proxy must be received
by the Company by 3:00 p.m., Israel time, on January 29, 2008 (two days prior to the date
of the Shareholders Meeting) in order to be counted at the Shareholders Meeting. The
Company knows of no other matters to be submitted at the Shareholders Meeting other than
as specified in the Notice of Annual Meeting of Shareholders included with this Proxy
Statement. If any other business is properly brought before the Shareholders Meeting, it
is the intention of the person named as proxy to vote in respect thereof in accordance
with his best judgment. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
proxy may be revoked at any time prior to its exercise by notice in writing to the
Company, delivered at the Company&#146;s address above, indicating that its/his/her proxy
is revoked, or by submitting another proxy with a later date, or by attending the
Shareholders Meeting and voting in person after requesting that the proxy submitted be
revoked (shareholders who aren&#146;t registered directly with the Company&#146;s transfer
agent, Continental Stock Transfer &amp; Trust Company of New York, New York, must present
a legal proxy from their broker, bank or other nominee, in order to vote in person at the
Shareholders Meeting). </FONT></P>

<p align=center>
<font size=2>1</font></p>
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<page>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PRINCIPAL SHAREHOLDERS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth information regarding the beneficial ownership of NUR&#146;s
ordinary shares, by each person known by NUR, to the best of its knowledge, to be the
beneficial owner of more than 5% of our ordinary shares, as of December 10, 2007. Each of
our shareholders has identical voting rights with respect to its shares. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
our knowledge, except as otherwise indicated in the footnotes to this table, each
shareholder in the table has sole voting and investment power for the ordinary shares
shown as beneficially owned by them. </FONT></P>






<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Ordinary Shares<BR>
Beneficially Owned(1)</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Percentage of <BR>Ordinary Shares<BR>
Beneficially Owned</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#cceeff">
     <TD WIDTH="66%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Fortissimo Entities (2)</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>44,999,999</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>48.92</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Kanir Joint Investments (2005) Limited</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Partnership (3)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>15,000,001</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>18.96</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#cceeff">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Dan and Edna Purjes (4)(5)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>8,153,617</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>10.70</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Meitav Entities (6)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>5,375,091</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>7.30</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#cceeff">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Old Lane Luxemburg Master Fund S.a.r.l (7)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>4,814,815</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>6.52</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Bank Hapoalim B.M (8)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>4,908,396</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>6.32</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#cceeff">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Directors and Executive Officers, as a group (9)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>3,564,273</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>4.67</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
</TABLE>
<BR>





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          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          As used in this table, &#147;beneficial ownership&#148; means the sole or shared
          power to vote or direct the voting or to dispose or direct the disposition of
          any security. For purposes of this table, a person is deemed to be the
          beneficial owner of securities that can be acquired within 60 days from December
          10, 2007 through the exercise of any option or warrant. Ordinary shares issuable
          upon exercise of options or warrants held by a beneficial owner that are
          currently exercisable or exercisable within 60 days of the date of calculation
          are deemed outstanding for computing the ownership percentage of such person
          holding such options or warrants, but are not deemed outstanding for computing
          the ownership percentage of any other person. The amounts and percentages are
          based on a total of 72,695,505 ordinary shares outstanding as of December 10,
          2007. </FONT></TD>
          </TR>
          </TABLE>

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          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          According to information provided by the holders, the &#147;Fortissimo
          Entities&#148; consist of Fortissimo Capital Fund GP, LP
          (&#147;<B>FCF-GP</B>&#148;), Fortissimo Capital Fund (Israel), LP
          (&#147;<B>FCF-Israel</B>&#148;), Fortissimo Capital Fund (Israel-DP), LP
          (&#147;<B>FCF-Israel-DP</B>&#148;), and Fortissimo Capital Fund, LP
          (&#147;<B>FCF Cayman</B>&#148;). FCF-GP and FCF Cayman are limited partnerships
          incorporated in the Cayman Islands. FCF-Israel and FCF-Israel-DP are limited
          partnerships incorporated in Israel. FCF-Israel, FCF-Israel-DP and FCF Cayman
          invest together, in the framework of parallel private equity funds, which are
          managed by FCF GP. The holdings of the Fortissimo Entities consist of 40,237,488
          ordinary shares (including 17,244,638 ordinary shares issuable upon exercise of
          warrants) beneficially held by FCF-Israel, 3,586,229 ordinary shares (including
          1,536,955 ordinary shares issuable upon exercise of warrants) beneficially held
          by FCF-Israel-DP and 1,176,282 ordinary shares (including 504,121 ordinary
          shares issuable upon exercise of warrants) beneficially held by FCF Cayman. In
          October 2005, the Fortissimo Entities and Kanir Joint Investments (2005) Limited
          Partnership (&#147;<B>Kanir</B>&#148;) entered into a shareholders agreement.
          Pursuant to Rule 13d-5(b)(1) of the Securities Exchange Act of 1934 (the
          <B>&#147;Exchange Act&#148;</B>) the Fortissimo Entities may, together with
          Kanir, be deemed to be members of a &#147;Group&#148; whose aggregate beneficial
          ownership consists of the shares held by the Fortissimo Entities and Kanir, or
          60,000,000 in the aggregate, representing a beneficial ownership of 60.97% of
          the total outstanding shares. Each of the Fortissimo Entities disclaims
          beneficial ownership of the shares owned by Kanir. </FONT></TD>
          </TR>
          </TABLE>


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          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          According to information provided by the holder, Kanir is an Israeli limited
          partnership. The holdings of Kanir include 6,428,572 ordinary shares issuable
          upon exercise of warrants. In October 2005, the Fortissimo Entities and Kanir
          entered into a shareholders agreement. Pursuant to Rule 13d-5(b)(1) of the
          Exchange Act Kanir may, together with the Fortissimo Entities, be deemed to be
          members of a &#147;Group&#148; whose aggregate beneficial ownership consists of
          the shares held by the Fortissimo Entities and Kanir, or 60,000,000, in the
          aggregate, representing a beneficial ownership of 60.97% of the total
          outstanding shares. Kanir disclaims beneficial ownership of the shares owned by
          the Fortissimo Entities. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          According to information provided by the holders, Dan and Edna Purjes
          beneficially own 8,153,617 ordinary shares. These holdings consist of 7,844,379
          ordinary shares (including 3,331,731 ordinary shares issuable upon exercise of
          warrants) beneficially owned by Dan and Edna Purjes, 95,068 ordinary shares
          (including 14,423 ordinary shares issuable upon exercise of warrants)
          beneficially owned by Y Securities Limited and 214,170 ordinary shares
          (including 132,273 ordinary shares issuable upon exercise of warrants)
          beneficially owned by X Securities Limited. Pursuant to Rule 13d-5(b)(1) of the
          Exchange Act the holders may, together with The Purjes Foundation, First Purjes
          Descendants, LP and the Second Purjes Descendants, LP, be deemed to be members
          of a &#147;Group&#148; whose aggregate beneficial ownership consists of the
          shares owned by Dan and Edna Purjes and all such entities, or 8,438,821, in the
          aggregate, representing a beneficial ownership of 11.07% of the total
          outstanding shares. Based on information received from the holders, the holders
          do not posses voting or investment power over the shares held by The Purjes
          Foundation, First Purjes Descendants, LP and the Second Purjes Descendants, LP
          and disclaim beneficial ownership of such shares and the existence of a group
          between themselves and any of these entities. </FONT></TD>
          </TR>
          </TABLE>

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          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          According to a Voting Agreement between NUR and Dan Purjes dated January 23,
          2005 (the &#147;<B>Voting  Agreement</B>&#148;), Mr. Purjes and certain of his
          affiliates have granted to our Board of Directors or a nominee appointed by it
          voting control over the ordinary shares beneficially owned by them, coupled with
          an irrevocable proxy, and the Board of Directors or the nominee appointed by it
          will vote the shares in any meeting or actions of the shareholders and with
          respect to any matter submitted to the shareholders with the majority of votes
          of the other shareholders of NUR. </FONT></TD>
          </TR>
          </TABLE>


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          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          According to information provided by the holders, the &#147;Meitav
          Entities&#148; consist of Meitav Investment House Ltd. (&#147;<B>Meitav
          Investment</B>&#148;), Meitav Investment Management Ltd. (&#147;<B>Meitav
          Management</B>&#148;), Meitav Gemel Ltd. (&#147;<B>Meitav Gemel</B>&#148;),
          Meitav Mutual Fund Management (1982) Ltd. (&#147;<B>Meitav Mutual</B>&#148;),
          Meitav Pension Ltd. (&#147;<B>Meitav Pension</B>&#148;) and Meitav Underwriting
          Ltd. (&#147;<B>Meitav Underwriting</B>&#148;), all of which are Israeli
          companies, and of Michal and Avner Stepak. The 5,375,091 ordinary shares
          beneficially owned by the Meitav Entities consist of: (i) 845,000 ordinary
          shares (including 195,000 ordinary shares issuable upon exercise of warrants)
          held by Meitav Investment, (ii) 1,154,250 ordinary shares (including 146,250
          ordinary shares issuable upon exercise of warrants) held by Meitav Management,
          (iii) 2,512,431 ordinary shares (including 555,561 ordinary shares issuable upon
          exercise of warrants) held by Meitav Gemel for the benefit of beneficiaries of
          various provident, severance and education funds it manages, (iv) 32,650
          ordinary shares held by Meitav Mutual for the benefit of beneficiaries of
          various mutual funds it manages, (v) 40,000 ordinary shares held by Meitav
          Pension for the benefit of beneficiaries of various pension funds it manages,
          (vi) 550,000 ordinary shares held by Meitav Underwriting and (vii) 240,760
          ordinary shares (including 55,560 ordinary shares issuable upon conversion of
          warrants) held by Michal and Avner Stepak. Meitav Pension, Meitav Gemel, Meitav
          Mutual and Meitav Management are wholly owned subsidiaries of Meitav Investment
          and Meitav Underwriting is a majority-owned subsidiary of Meitav Management.
          Avner Stepak is the son of Zvi Stepak, a controlling shareholder of Meitav
          Investment, and the vice president of business development of Meitav Investment.
          Pursuant to Rule 13d-5(b)(1) of the Exchange Act, the Meitav Entities may be
          deemed to be members of a &#147;Group&#148; with one another. The ordinary
          shares held by Meitav Gemel, Meitav Mutual and Meitav Pension are held for the
          benefit of the beneficiaries of such funds and the Meitav Entities disclaim
          beneficial ownership of such shares. Each of the Meitav Entities, other than
          Meitav Investment, disclaims beneficial ownership of the ordinary shares held by
          the other Meitav Entities, except to the extent of their pecuniary interest
          therein. </FONT></TD>
          </TR>
          </TABLE>


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          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          According to information provided by the holder, Old Lane Luxemburg Master Fund
          S.a.r.l (&#147;<B>Old Lane</B>&#148;) is a private company registered in
          Luxemburg. The 4,814,815 ordinary shares held by Old Lane are held for the
          benefit of its shareholders as follows: (i) 2,869,630 ordinary shares (including
          662,222 ordinary shares issuable upon exercise of warrants) held for the benefit
          of Old Lane Cayman Master Fund L.P., a limited partnership registered in the
          Cayman Islands (&#147;<B>Old Lane Cayman</B>&#148;), (ii) 813,704 ordinary
          shares (including 187,778 ordinary shares issuable upon exercise of warrants)
          held in for the benefit of Old Lane HMA Master Fund, L.P., a limited partnership
          registered in the Cayman Islands (&#147;<B>Old Lane HMA</B>&#148;) and (iii)
          1,131,481 ordinary shares (including 261,111 ordinary shares issuable upon
          exercise of warrants) held for the benefit of Old Lane U.S. Master Fund L.P., a
          limited partnership registered in Delaware, USA (&#147;<B>Old Lane US</B>&#148;
          and, together with Old Lane Cayman and Old Lane HMA, the &#147;<B>Old Lane </B>
          <B>Entities</B>&#148;). Old Lane disclaims beneficial ownership of the shares
          held for the benefit of the Old Lane Entities. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<p align=center>
<font size=2>3</font></p>
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<page>


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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(8)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          According to information provided by the holder, Bank Hapoalim is an Israeli
          publicly traded company. The holdings of Bank Hapoalim consist of warrants to
          purchase 4,908,396 ordinary shares exercisable within 60 days. </FONT></TD>
          </TR>
          </TABLE>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          By virtue of his position as the sole shareholder and director of the general
          partner in FCF-GP, Mr. Yuval Cohen, the Chairman of our Board of Directors and a
          director nominee, may be deemed to beneficially own the ordinary shares and
          ordinary shares underlying warrants of NUR held by the Fortissimo Entities. By
          virtue of his position as a shareholder and director of the general partner in
          Kanir, and a limited partner in Kanir, Hemi Raphael, a member of our Board of
          Directors and a director nominee, may be deemed to beneficially own the ordinary
          shares and ordinary shares underlying warrants of NUR held by Kanir. The number
          reported in the table does not include unvested options held by members of our
          senior management that are expected to become fully vested following the closing
          of the sale of the Company&#146;s business to Hewlett-Packard as contemplated by
          an agreement entered into by the Company and Hewlett-Packard Company on December
          9, 2007. </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<p align=center>
<font size=2>4</font></p>
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<page>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MATTERS SUBMITTED TO
SHAREHOLDERS </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>ITEM 1</U> </FONT> </H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ELECTION OF DIRECTORS </FONT></H1>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Background </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Shareholders Meeting, the shareholders will elect directors to serve on the Board of
Directors. Our Amended and Restated Articles of Association provide for a Board of
Directors consisting of not less than four and no more than twelve members, as may be
determined from time to time at a general meeting of our shareholders. The directors
(other than the external directors) are elected annually at the Company&#146;s annual
meeting of shareholders and remain in office until the next annual meeting, unless a
director has previously resigned, vacated his/her office, or was removed in accordance
with the Company&#146;s Amended and Restated Articles of Association. In addition, the
Board of Directors may elect additional directors to the Board of Directors. Pursuant to
the Israeli Companies Law, 1999 (the &#147;<B>Companies Law</B>&#148;), the two external
directors of the Board of Directors serve for a period of three (3) years unless their
office is vacated earlier in accordance with the Company&#146;s then current articles of
association and the Companies Law. The Board of Directors is currently composed of the
following seven directors: Yuval Cohen, Eli Blatt, Shmoulik Barashi, Hemi Raphael, Oded
Akselrod, Lauri A. Hanover and Alon Lumbroso. Yuval Cohen, Eli Blatt, Shmoulik Barashi,
Hemi Raphael and Oded Akselrod are standing for reelection. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is unaware of any reason why any of the nominees, if elected, should be unable to
serve as a member of the Board of Directors. If any of the nominees are unable to serve,
David Reis and Yosef Zylberberg, the persons named in the proxy, or either one of them,
will vote the shares represented thereby &#147;<B>FOR</B>&#148; the election of other
nominees proposed by the Board of Directors. All nominees listed below have advised the
Board of Directors that they intend to serve as members of the Board of Directors if
elected. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following information is supplied with respect to each person nominated and recommended to
be elected by our Board of Directors and is based upon our records and information
furnished to the Board of Directors by the nominees. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
nominees for directors are: </FONT></P>



<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN=Bottom>
     <TH align=left><FONT FACE="Times New Roman" SIZE=1>Name</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Age</FONT><HR WIDTH=90% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH align=left><FONT FACE="Times New Roman" SIZE=1>Position with the Company</FONT><HR WIDTH=60% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#cceeff">
     <TD WIDTH="30%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">Yuval Cohen<SUP>(1)</SUP> </FONT></TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>45</FONT></TD>
     <TD WIDTH="60%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Chairman of the Board and Director</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2">Eli Blatt<SUP>(1)</SUP> </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>44</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#cceeff">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Shmoulik Barashi</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>45</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Hemi Raphael</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>56</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#cceeff">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">Oded Akselrod<SUP>(2)</SUP> </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>61</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD></TR>
</TABLE>
<BR>




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<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=LEFT>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Member
of the Company&#146;s Stock Option &amp; Compensation Committee. </FONT></TD>
</TR>
</TABLE>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Member
of the Company&#146;s Audit Committee. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>5</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Yuval
Cohen </I>has served as a director of NUR since October 2005. Mr. Cohen is the Founding
and Managing Partner of Fortissimo Capital Fund, which was established in January 2003.
From February 2002 through January 2003, Mr. Cohen worked on the formation of Fortissimo
and served on the boards of directors of several technology companies in Israel. From
September 1997 through February 2002, Mr. Cohen was a General Partner at Jerusalem Venture
Partners (JVP), an international venture capital firm with over $650 million under
management. As a General Partner of JVP, Mr. Cohen co-led fundraising efforts, and was
involved in all investment decisions and the management of various JVP portfolio
companies. Mr. Cohen led the investment and served on the board of several JVP portfolio
companies, including the following: Precise Software Solutions, Inc. (Nasdaq: PRSE, later
sold to Veritas &#150; Nasdaq:VRTS), T.sqware, Inc. (sold to Globespan, Inc., Nasdaq:
GSPN), PowerDsine Ltd. (Nasdaq: PDSN), Sheer Networks (sold to Cisco, Nasdaq: CSCO) and
XmPie (sold to Xerox, NYSE: XRX). From June 1996 through August 1997, Mr. Cohen was the
Vice President of Marketing at VDOnet Corporation, a provider of software solutions for
video over the Internet. From May 1995 through June 1996, Mr. Cohen served as the Vice
President of Business Development at DSP Group, Inc. (Nasdaq: DSPG), a provider of DSP
software and hardware solutions for communications and computer markets. From December
1991 through May 1995, Mr. Cohen served as the Manager of Business Development at Intel
Capital at Intel Corporation (Nasdaq: INTC). Mr. Cohen is the Chairman of the board of
directors of Telrad Networks Ltd. (&#147;<B>Telrad</B>&#148;), a telecommunication
equipment provider, of Soda Club Enterprises N.V. (&#147;<B>Soda Club</B>&#148;), a
manufacturer of home carbonation systems, and of Fortissimo Acquisition Corp., a special
purpose acquisition corporation formed by Fortissimo, and is a director of Hadasit
Bio-Holdings Ltd., a holding company of medical and biotech startup companies controlled
by Hadassah Hospital in Israel and publicly traded on the Tel Aviv Stock Exchange. Mr.
Cohen received an MBA from the Harvard Business School and a B.Sc. in Industrial
Engineering from Tel Aviv University. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Eli
Blatt </I>has served as a director of NUR since October 2005. Mr. Blatt joined Fortissimo
as a partner in January 2005. Prior to joining Fortissimo, from March 1999 through
December 2004, Mr. Blatt was the Chief Financial Officer and Vice President operations of
Noosh, Inc., a supplier of cross-enterprise e-business software solutions. At Noosh, Mr.
Blatt was responsible for the general management of Noosh&#146;s Finance and Operations
activities including the company&#146;s M&amp;A strategy and initiatives. From September
1997 through February 1999, Mr. Blatt was the Director of Operations at CheckPoint
Software Technologies Inc., an Internet security company, where he was responsible for OEM
operations, product licensing and customer service. From February 1995 through August
1997, Mr. Blatt served as the Operations Controller at Madge Networks (sold to Lucent).
From September 1993 through January 1995, Mr. Blatt held Finance and Operations positions
at Intel Corporation. Mr. Blatt serves on the boards of directors of Telrad, Fortissimo
Acquisition Corp, Soda Club and RadView Software Ltd. (&#147;<B>RadView</B>&#148;; OTC
BB:RDVWF), a provider of application testing software and services. Mr. Blatt received an
MBA degree from Indiana University and a B.Sc. degree in Industrial Engineering from Tel
Aviv University. Mr. Blatt also served as a fighter pilot in the Israeli air force. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Shmoulik
Barashi </I>has served as a director of NUR since October 2005. Mr. Barashi joined
Fortissimo as a partner in May 2005. From January 2001 through May 2005, Mr. Barashi
served as a senior partner in BDO Ziv Haft, one of the five largest accounting firms in
Israel. Ziv Haft is the Israeli representative office of the international accounting firm
of BDO. At BDO, Mr. Barashi specialized in corporate finance, IPO&#146;s, deal
structuring, business consultancy, auditing and tax. From March 1993 through December
2000, Mr. Barashi managed his own accounting firm, which he later merged into BDO Ziv
Haft. Mr. Barashi serves on the board of directors of Fortissimo Acquisition Corp and Soda
Club. Mr. Barashi received an MBA from Hebrew University (specialty &#150; finance) and an
LLM from Bar Ilan University. Mr. Barashi is a certified public accountant in Israel. </FONT></P>


<p align=center>
<font size=2>6</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Hemi
Raphael</I> has served as a director of NUR since June 2006. Mr. Raphael is an
entrepreneur and a businessman involved in various real estate and financial investments.
Prior thereto, from 1984 to 1994, Mr. Raphael was a partner at the law firm of Goldberg
Raphael &amp; Co. Mr. Raphael also serves as a director of Cargal Ltd. since May 2004,
Cargal Flexible Packaging Ltd. since May 2005, Cargal Corrugated Board Packaging Ltd.
since December 2005, C.I.- Cardboard Industries Ltd. since May 2004, Adar M.F. Management
Ltd. since November 2005, Plasto-Sac Ltd. (TASE: PLSK) since June 2007 and Oristan Ireland
Ltd. since April 2006. Mr. Raphael holds an LLB degree from the School of Law at the
Hebrew University of Jerusalem and he is a member of the Israeli Bar Association and the
California Bar Association. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Oded
Akselrod</I> has served as a director of NUR since February 2002. Mr. Akselrod is the
Israeli representative of Plainfield Assets Management, a U.S. investment fund. He was the
general manager of the Investment Corp. of United Mizrahi Bank Ltd., a wholly owned
subsidiary of United Mizrahi Bank Ltd. that was merged into United Mizrahi Bank Ltd. on
October 2004. Prior to joining the Investment Corp. of United Mizrahi Bank, from 1994 to
1997, Mr. Akselrod held the position of general manager of Apex-Leumi Partners Ltd. as
well as Investment Advisor of Israel Growth Fund. Prior thereto, from 1991 to 1994, Mr.
Akselrod served as general manager of Leumi &amp; Co. Investment Bankers Ltd. Mr. Akselrod
began his career in various managerial positions in the Bank Leumi Group including member
of the management team of Bank Leumi, deputy head of the international division, head of
the commercial lending department of the banking division, member of all credit committees
at the Bank, assistant to Bank Leumi&#146;s CEO and head of international lending division
of Bank Leumi Trust Company of New York. Mr. Akselrod holds a Bachelor&#146;s degree in
Agriculture Economics from Hebrew University, Jerusalem and an MBA degree from Tel Aviv
University. Mr. Akselrod is also a director of Gadish Global Ltd., Gadish Investments in
Provident Funds Ltd., Gadish Global Financial Services (2007) Ltd and Shalag Industries
Ltd. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally,
we have two external directors serving on our Board of Directors (whose terms expire in
November 2009): </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Lauri
A. Hanover </I>has served as an external director of NUR since November 2003. Ms. Hanover
was the senior vice president and chief financial officer of Lumenis Ltd. from 2004
through October 2007. Prior to that, she served as the corporate vice president and chief
financial officer of NICE Systems Ltd. from 2000 to 2004. She previously served as
executive vice president and chief financial officer of Sapiens International Corporation
N.V., from 1997 to 2000.&nbsp; From 1984 to 1997, Ms. Hanover served in a variety of
financial management positions, including corporate controller at Scitex Corporation Ltd.
and from 1981 to 1984 as financial analyst at Philip Morris Inc. (Altria).&nbsp; Ms.
Hanover holds a Bachelor&#146;s degree in finance from the Wharton School of Business and
a Bachelor-of-Arts degree from the College of Arts and Sciences, both of the University of
Pennsylvania.&nbsp; Ms. Hanover also holds a Master&#146;s degree in business
administration from New York University.&nbsp; Ms. Hanover has served on the Board of
Directors of Nova Measuring Instruments Ltd. since 2000. Ms. Hanover qualifies as an
external director according to the Companies Law. </FONT></P>

<p align=center>
<font size=2>7</font></p>
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<page>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Alon
Lumbroso </I>has served as an external director of NUR since November 2006. Mr. Lumbroso
serves as the Chief Executive Officer of Larotec Ltd. since the end of 2005. Mr. Lumbroso
previously served as Chief Executive Officer of Mindguard Ltd., from 2003 to 2004. From
2000 to 2003, Mr. Lumbroso served as the managing director of the European subsidiary of
Creo, Inc. Prior to that, Mr. Lumbroso served in a various executive positions, including
VP Operations, VP Marketing and managing director of the Asian Pacific subsidiary of
Scitex Corporation. In his positions with Scitex Corporation and Creo, Mr. Lumbroso was
responsible for sales, marketing and service of prepress and digital printing equipment,
including wide format digital printers. Mr. Lumbroso serves as the Chairman of
Bioexplorers Ltd. and as a director of Larotec Ltd. Mr. Lumbroso holds an MBA from Bar
Ilan University and a B.Sc. in Industrial Engineering from Tel-Aviv University. Mr.
Lumbroso qualifies as an external director according to the Companies Law. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries,
fees, commissions and bonuses paid with respect to all of our directors and senior
management as a group (including the directors and members of our senior management who
left during 2006 and 2007) in the fiscal year ended December 31, 2006 was $2.6 million,
out of which an amount of $0.1 million was related to pension, retirement and other
similar benefits. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proposal </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Shareholders Meeting, the Board of Directors will propose that the following
resolution be adopted: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;RESOLVED,
to elect each of Yuval Cohen, Eli Blatt, Shmoulik Barashi, Hemi Raphael and Oded Akselrod,
as directors of the Company to hold office until the next annual meeting of the
Company&#146;s shareholders and until their respective successors are duly elected and
qualified.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the receipt of a properly signed and dated proxy and unless otherwise instructed in the
proxy, either of the persons named in the enclosed proxy will vote the shares represented
thereby <B>&#147;FOR</B>&#148; the above-mentioned proposal. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>ITEM 2</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>REAPPOINTMENT OF
INDEPENDENT AUDITORS </FONT></H1>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Background </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders
will be asked to reappoint Kost Forer Gabbay &amp; Kasierer, a member of Ernst &amp; Young
Global, as our independent auditors for the year ending December 31, 2007 and to authorize
the Board of Directors, following the approval of the Audit Committee, to approve their
fees in accordance with the volume and nature of their services. Kost Forer Gabbay &amp;
Kasierer have been our independent auditors since 1995. </FONT></P>

<p align=center>
<font size=2>8</font></p>
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<page>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth the fees paid by the Company and its subsidiaries to Ernst
&amp; Young during 2005 and 2006: </FONT></P>





<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=6><FONT FACE="Times New Roman" SIZE=1>(in thousands of U.S. dollars)</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
</TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>2005</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>2006</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#cceeff">
     <TD WIDTH="65%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">Audit Fees<SUP>(1)</SUP> </FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="8%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 313</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 263</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Audit-Related Fees</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#cceeff">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">Tax Fees<SUP>(2)</SUP> </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 207</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>  74</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>All Other Fees</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=1></TD><TD></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#cceeff">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 520</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 337</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=3></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=3></TD><TD></TD></TR>
</TABLE>
<BR>





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<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=LEFT>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Professional services rendered by our independent auditor for the audit of our
          annual financial statements or services that are normally provided by the
          accountants in connection with statutory and regulatory filings or engagements. </FONT></TD>
          </TR>
          </TABLE>


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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Professional services rendered by our independent registered public accounting
          firm for international and local tax compliance and tax advice services,
          including approved enterprise issues and transfer pricing. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proposal </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Shareholders Meeting, the Board of Directors will propose that the following
resolution be adopted: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;RESOLVED,
to reappoint Kost Forer Gabbay &amp; Kasierer (a member of Ernst &amp; Young Global) as
the independent auditors of the Company for the fiscal year ended December 31, 2007, and
until the next annual meeting of shareholders, and that the Board of Directors, with the
approval of the Audit Committee, be, and it hereby is, authorized to approve the payment
of fees of said independent auditors, considering the volume and nature of their
services.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the receipt of a properly signed and dated proxy and unless otherwise instructed in the
proxy, either of the persons named in the enclosed proxy will vote the shares represented
thereby <B>&#147;FOR&#148;</B> the above-mentioned proposal. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>ITEM 3</U> </FONT> </H1>

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<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>EXTENSION
OF TERM OF 1998 SHARE OPTION PLAN FOR NON-EMPLOYEE DIRECTORS</B> </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Background </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
1998, the Company approved the 1998 Share Option Plan for Non-Employee Directors (the
&#147;<B>Plan</B>&#148;) to provide for grants of options to purchase ordinary shares to
non-employee directors of NUR. The Plan, as amended, is administered, subject to Board
approval, by the Non-Employee Director Share Option Committee. </FONT></P>

<p align=center>
<font size=2>9</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the Plan, each non-employee director that served on the 1998 &#147;Grant Date,&#148; as
defined below, automatically received an option to purchase 10,000 ordinary shares on such
Grant Date and will receive an option to purchase an additional 10,000 ordinary shares on
each subsequent Grant Date thereafter, provided that he or she is a non-employee director
on the Grant Date and has remained a non-employee director for the entire period since the
previous Grant Date. The &#147;Grant Date&#148; means, with respect to 1998, October 26,
1998, and with respect to each subsequent year, August 1 of such year. Directors first
elected or appointed after the 1998 Grant Date, will automatically receive on their first
day as a directors an option to purchase up to 10,000 ordinary shares prorated based on
the number of full months of service between the prior Grant Date and the next Grant Date.
Each such non-employee director would also automatically receive, as of each subsequent
Grant Date, an option to purchase 10,000 ordinary shares provided that he or she is a
non-employee director on the Grant Date and has served as a non-employee director for the
entire period since the previous Grant Date. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
exercise price of the option shares under the Plan is 100% of the fair market value of
such ordinary shares at the applicable Grant Date. The fair market value means, as of any
date, the average closing bid and sale prices of the ordinary shares for the date in
question as furnished by the National Association of Securities Dealers, Inc. through
Nasdaq or any similar organization if Nasdaq is no longer reporting such information, or
such other market on which the ordinary shares are then traded, or if not then traded, as
determined in good faith (using customary valuation methods) by resolution of the members
of the Board of Directors of NUR, based on the best information available to it. The
exercise price is required to be paid in cash. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
term of each option granted under the Plan is ten years from the applicable date of grant.
All options granted vest immediately upon the date of grant. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to Section 8.2 of the Plan, the Plan will expire on December 8, 2008 (ten years following
its adoption), unless earlier terminated by the Board. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
aggregate number of shares currently reserved for issuance under the Plan is 750,000 and
the aggregate number of shares underlying options granted and outstanding as of December
10, 2007 was 120,001. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
order to allow the Company to continue to use the Plan and grant options to current and
future non-employee directors, the Audit Committee and Board of Directors have adopted,
subject to the approval of the shareholders, an amendment to the Plan extending its term
for an additional ten-year period. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proposal </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Shareholders Meeting, the Board of Directors will propose that the following
resolution be adopted: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;RESOLVED,
to amend Section 8.2 of the Company&#146;s 1998 Share Option Plan for Non-Employee
Directors (the <B>&#147;Plan</B>&#148;) to provide for an extension of the term of the
Plan for an additional ten-year period, so that the Plan will expire, unless terminated
earlier by the Board, on December 8, 2018.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the receipt of a properly signed and dated proxy and unless otherwise instructed in the
proxy, either of the persons named in the enclosed proxy will vote the shares represented
thereby <B>&#147;FOR&#148;</B> the above-mentioned proposal. </FONT></P>

<p align=center>
<font size=2>10</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>ITEM 4</U> </FONT> </H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CHANGE OF
COMPANY&#146;S NAME </FONT></H1>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Background </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
December 7, 2007, the Company entered into a definitive agreement for the sale of the
Company&#146;s business to Hewlett-Packard Company (the &#147;<B>Transaction</B>&#148;).
As part of the terms of the Transaction, the Company agreed to cease using all trademarks
connected to the Company&#146;s business commencing at the closing of the Transaction and
to, within 90 days following the closing of the Transaction, cease to do business under a
corporate name that incorporates the transferred trademarks. The closing of the
Transaction is subject to fulfillment of various closing conditions. Please see &#147;Item
6 &#150; Report with respect to the Sale of the Company&#146;s Business to Hewlett-Packard
Company&#148; for more information regarding the Transaction. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changing
our name requires an amendment to our Articles of Association and Memorandum. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s Board of Directors has chosen to change the Company&#146;s name to
&#147;Orana Corporation Ltd.&#148;, subject to applicable law and regulations. In the
event that for regulatory or other reasons the name &#147;Orana Corporation Ltd.&#148; is
not approved or feasible, if this proposal is authorized, the Board of Directors will be
authorized to select a new company name. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Meeting, the shareholders will be asked to approve, subject to and effective
immediately following the closing of the Transaction, the amendment to the Company&#146;s
Articles of Association and Memorandum of Association changing the Company&#146;s name. If
so approved by the shareholders, the Company will amend its Articles and Memorandum of
Association following the closing of the Transaction. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Required Vote </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to Section 24(1) of the Companies Law, the approval of this proposal requires the
affirmative vote of 75% of the ordinary shares of the Company voted in person or by proxy
at the Shareholders Meeting. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proposal </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Shareholders Meeting, the Board of Directors will propose that the following
resolution be adopted: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;RESOLVED,
that the name of the Company shall, subject to and following the closing of the sale of
the Company&#146;s business to Hewlett-Packard Company, be changed to: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Name
in Hebrew appears here] </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Orana
Corporation Ltd. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or,
if not feasible, such other name selected and approved by the Board of Directors, and that
the Company&#146;s Articles and Memorandum of Association be amended accordingly.&#148; </FONT></P>

<p align=center>
<font size=2>11</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the receipt of a properly signed and dated proxy and unless otherwise instructed in the
proxy, either of the persons named in the enclosed proxy will vote the shares represented
thereby <B>&#147;FOR&#148;</B> the above-mentioned proposal. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>ITEM 5</U> </FONT> </H1>

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<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>PROCUREMENT
OF A &#147;RUNOFF&#148; INSURANCE POLICY FOR THE COMPANY&#146;S<BR> DIRECTORS AND
OFFICERS</B> </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Background </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
required pursuant to the Companies Law, the Company&#146;s shareholders have in the past
approved the procurement and maintenance of directors and officers liability insurance. In
connection with the Transaction, and in addition to the ongoing directors and officers
liability insurance maintained by the Company, the Audit Committee and Board of Directors
approved, subject to shareholders approval, the procurement of a &#147;Runoff&#148;
insurance policy for the Company&#146;s directors and officers and/or directors and
officers of the Company&#146;s subsidiaries, including those serving at the time of the
signing and closing of the Transaction (the &#147;<B>Runoff Policy</B>&#148;). The Runoff
Policy will provide insurance coverage, commencing upon closing of the Transaction, for at
least a seven-year term for wrongful acts by covered directors and officers prior to the
closing of the Transaction. The Runoff Policy also will cover claims made by shareholders
in respect of alleged wrongful acts of the Company. The Runoff Policy will provide that in
the event of loss arising from a covered claim for which payment is due under the
provisions of the Runoff Policy both to the Company and to any of the insured directors
and officers, the order of payments will provide that any insured directors and officers
will be paid up to the maximum coverage amount, and only then the Company will be paid any
amounts due to it under the Runoff Policy. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Runoff Policy will require a one-time premium payment of up to US$275,000, will be in
effect for at least a seven-year period commencing with the closing of the Transaction and
will provide coverage for a limit of liability of US$10 million per occurrence and in the
aggregate for the insurance period. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Shareholders Meeting, the shareholders will be asked to approve, subject to and
following the closing of the Transaction, the procurement of a &#147;Runoff&#148;
directors and officers liability insurance. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Required Vote </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to Sections 270(3) and 273 of the Companies Law, the approval of this proposal requires
the approval of the Company&#146;s Audit Committee, Board of Directors and the affirmative
vote of a majority of the ordinary shares of the Company voted in person or by proxy at
the Shareholders Meeting. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.
          Yuval Cohen, our Chairman of the Board and a director nominee, and Mr. Hemi
          Raphael a member of our Board of Directors and a director nominee, are each
          deemed to be &#147;controlling shareholders&#148; of the Company for purposes
of           Section 268 of the Companies Law due to the Voting Agreement between the
          Fortissimo Entities and Kanir and to their positions with such entities.
          Therefore, pursuant to Sections 270(4) and 275 of the Companies Law, the
          approval of this proposal by the Shareholders Meeting with respect to Messrs.
          Cohen and Raphael is also required to satisfy at least one of the following
          conditions: (i) the shares voting in favor of the matter include at least
          one-third of the shares voted by shareholders who do not have a personal
          interest in the matter or (ii) the total number of shares voted against the
          matter does not exceed 1% of the Company&#146;s outstanding voting rights.  </FONT></P>

<p align=center>
<font size=2>12</font></p>
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<page>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to Section 276 of the Companies Law, all shareholders are asked to indicate on the
enclosed proxy card whether or not they have a personal interest in the approval of this
proposal. Under the Companies Law, a &#147;personal interest&#148; of a shareholder (i)
includes a personal interest of any member of the shareholder&#146;s immediate family (or
spouses thereof) or a personal interest of a company with respect to which the shareholder
(or such a family member thereof) serves as a director or the chief executive officer,
owns at least 5% of the shares or has the right to appoint a director or the chief
executive officer and (ii) excludes an interest arising solely from the ownership of
shares in the Company. The Fortissimo Entities and Kanir both have a &#147;personal
interest&#148; in the approval of this proposal with respect to Messrs. Cohen and Raphael. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proposal </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Shareholders Meeting, the Board of Directors will propose that the following
resolution be adopted: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;RESOLVED, that, subject to the
closing of the Transaction, the Company procure a directors and officers liability
insurance policy with a coverage amount of US$10 million that will be in effect for a
period of at least seven years from the date of closing of the Transaction, will apply to
obligations and liabilities of the Company&#146;s directors and officers who served in
office in the Company and/or in the Company&#146;s subsidiaries, before the date of
closing of the Transaction for any wrongful acts that preceded such date, all this being
subject to the conditions of the current directors and officers liability insurance policy
and its exclusions, and that
the terms of such policy may provide that any natural person insured thereunder will have
access to any compensation available under the policy before the Company.&#148; </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the receipt of a properly signed and dated proxy and unless otherwise instructed in the
proxy, either of the persons named in the enclosed proxy will vote the shares represented
thereby <B>&#147;FOR&#148;</B> the above-mentioned proposal. </FONT></P>

<p align=center>
<font size=2>13</font></p>
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<page>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>ITEM 6</U> </FONT> </H1>

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<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>REPORT
WITH RESPECT TO THE SALE OF THE COMPANY&#146;S BUSINESS TO<BR> HEWLETT-PACKARD COMPANY</B> </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Background </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
December 9, 2007, the Company entered into a definitive agreement with Hewlett-Packard
Company (&#147;<B>HP</B>&#148;), under which HP will acquire substantially all the assets of the
Company for $117.5 in cash on a cash free and debt free basis. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the terms of the agreement HP will pay $117.5 million in cash to the Company, of which
$14.5 million will be held in an indemnity escrow account ($9.5 million for 18 months and
$5 million for 24 months). The Company will retain approximately $5.5 million in cash and
will use approximately $20.8 million of the proceeds to repay the Company&#146;s loans to
its lender banks. The Company has also retained several additional assets and liabilities
and is evaluating the tax consequences of the transaction. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
closing of the Transaction is subject to certain regulatory approvals and other customary
closing conditions. The Transaction is intended to be completed as soon as all required
approvals have been obtained. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Transaction was approved by the Company&#146;s Audit Committee and Board of Directors. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s
Board of Directors has not yet determined, and may not determine prior to the Shareholders
Meeting, the future plans of the Company following consummation of the Transaction,
including, without limitation, whether to distribute the proceeds from the Transaction to
shareholders, the timing of any such distributions and/or whether to operate and/or
acquire any business following the sale of the Company&#146;s current business in the
Transaction. If the Company&#146;s Board of Directors shall convene prior to the date of
the Shareholders Meeting and make any such determinations, these determinations will be
appropriately publicized by the Company prior to and at the meeting. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
general terms of the Transaction will be presented at the Shareholders Meeting. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This item will not
involve a vote of the shareholders. </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>ITEM 7</U> </FONT> </H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSIDERATION OF THE
ANNUAL FINANCIAL STATEMENTS </FONT></H1>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Background </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
required by the Companies Law, the Company&#146;s independent auditors&#146; report and
audited consolidated financial statements for the fiscal year ended December 31, 2006,
will be presented for discussion at the Shareholders Meeting. </FONT></P>

<p align=center>
<font size=2>14</font></p>
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<page>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s audited financial statements for the year ended December 31, 2006 are
included in the Company&#146;s Annual Report on Form 20-F, which was filed with the
Securities and Exchange Commission (SEC) on June 29, 2007. The Annual Report is also
available on the Company&#146;s website at http://www.nur.com. You may read and copy this
report without charge at the SEC&#146;s public reference room at 100 F Street, N.W.,
Washington, D.C. 20549. Copies of such material may be obtained by mail from the Public
Reference Branch of the SEC at such address, at prescribed rates. Please call the SEC at
1-800-SEC-0330 for further information on the public reference room. The Company&#146;s
SEC reports are also available to the public at the SEC&#146;s website at
http://www.sec.gov. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This item will not
involve a vote of the shareholders. </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROPOSALS OF
SHAREHOLDERS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
shareholder of the Company who intends to present a proposal at the Shareholders Meeting
must satisfy the requirements of the Companies Law in order to have a proposal presented
at the Shareholders Meeting. Under the Companies Law, only shareholders who severally or
jointly hold at least one percent (1%) of the Company&#146;s outstanding voting rights are
entitled to request that the Board of Directors include a proposal, in a future
shareholders&#146; meeting, provided that such proposal is appropriate to be discussed in
such meeting. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OTHER BUSINESS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors is not aware of any other matters that may be presented at the
Shareholders Meeting other than those mentioned in the attached Company&#146;s Notice of
Annual Meeting of Shareholders. If any other matters do properly come before the
Shareholders Meeting, it is intended that David Reis and Yosef Zylberberg, the persons
named as proxies, or either one of them, will vote, pursuant to his discretionary
authority, according to his best judgment, in the interest of the Company. </FONT></P>


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<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By Order of the Board of Directors,<BR><BR>
<BR>By: /s/ Yuval Cohen<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Yuval Cohen<BR> Chairman of the Board of Directors</FONT></TD>
</TR>
</TABLE>
<BR>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Lod,
Israel<BR>
Date:
January 3, 2008</FONT></P>

<p align=center>
<font size=2>15</font></p>
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     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\74637\a74637.eep -->
     <!-- Control Number: 74637                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   6-K                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>6-K</TITLE>
</HEAD>
<BODY>

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<HR ALIGN=LEFT WIDTH=100% SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE STYLE="margin-top: -10px">

<P align=right><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 3</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ASSET PURCHASE
AGREEMENT </FONT></H1>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By and Among </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Nur Macroprinters Ltd. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>And </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Hewlett-Packard Company </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated as of December 9,
2007 </FONT></P>

<p align=center>
<font size=2></font></p>
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<page>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>TABLE OF CONTENTS</U></FONT></P>




<TABLE CELLPADDING=0 CELLSPACING=3 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Page</FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=90% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B><a href="#zk301"> ARTICLE 1. ASSETS AND LIABILITIES</a></B> </FONT></TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>1&nbsp;</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 &nbsp;&nbsp;&nbsp;&nbsp;PURCHASE AND SALE OF ACQUIRED ASSETS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 &nbsp;&nbsp;&nbsp;&nbsp;PURCHASE AND SALE OF ASSUMED LIABILITIES</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B><a href="#zk302">ARTICLE 2. PURCHASE PRICE AND CLOSING</a></B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>3&nbsp;</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 &nbsp;&nbsp;&nbsp;&nbsp;PURCHASE PRICE</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 &nbsp;&nbsp;&nbsp;&nbsp;PURCHASE PRICE ADJUSTMENT</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>4&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 &nbsp;&nbsp;&nbsp;&nbsp;CLOSING</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>6&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 &nbsp;&nbsp;&nbsp;&nbsp;CLOSING DELIVERABLES OF THE COMPANY</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>6&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 &nbsp;&nbsp;&nbsp;&nbsp;CLOSING DELIVERABLES OF THE BUYERS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>7&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 &nbsp;&nbsp;&nbsp;&nbsp;SIMULTANEOUS CLOSING</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>7&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B><a href="#zk303">ARTICLE 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY</a></B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>8&nbsp;</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 &nbsp;&nbsp;&nbsp;&nbsp;ORGANIZATION AND QUALIFICATION; SUBSIDIARIES</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>8&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 &nbsp;&nbsp;&nbsp;&nbsp;AGREEMENT AUTHORIZED AND ITS EFFECT ON OTHER OBLIGATIONS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>9&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 &nbsp;&nbsp;&nbsp;&nbsp;CAPITALIZATION</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>10&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 &nbsp;&nbsp;&nbsp;&nbsp;COMPANY DOCUMENTS; FINANCIAL STATEMENTS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>10&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 &nbsp;&nbsp;&nbsp;&nbsp;NO UNDISCLOSED LIABILITIES</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>12&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 &nbsp;&nbsp;&nbsp;&nbsp;ABSENCE OF CERTAIN CHANGES</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>12&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 &nbsp;&nbsp;&nbsp;&nbsp;CONTRACTS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>14&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 &nbsp;&nbsp;&nbsp;&nbsp;SUPPLIERS AND CUSTOMERS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>16&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 &nbsp;&nbsp;&nbsp;&nbsp;TITLE TO PROPERTY; LEASED PROPERTY</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>16&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 &nbsp;&nbsp;TAXES</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 &nbsp;&nbsp;INTELLECTUAL PROPERTY</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>20&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 &nbsp;&nbsp;LITIGATION</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>24&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13 &nbsp;&nbsp;ENVIRONMENTAL, HEALTH AND SAFETY MATTERS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>25&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14 &nbsp;&nbsp;COMPLIANCE WITH OTHER LAWS; PERMITS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>27&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15 &nbsp;&nbsp;BROKERS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>27&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16 &nbsp;&nbsp;EMPLOYMENT MATTERS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>28&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17 &nbsp;&nbsp;PRODUCT WARRANTIES</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>31&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18 &nbsp;&nbsp;RELATIONSHIPS WITH RELATED PERSONS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>32&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.19 &nbsp;&nbsp;GRANTS, INCENTIVES AND SUBSIDIES</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>32&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20 &nbsp;&nbsp;FOREIGN CORRUPT PRACTICES ACT</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>33&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.21 &nbsp;&nbsp;HEDGING TRANSACTIONS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>33&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.22 &nbsp;&nbsp;RECEIVABLES; BANK ACCOUNTS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>33&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.23 &nbsp;&nbsp;INVENTORY</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>33&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.24 &nbsp;&nbsp;INSURANCE</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>34&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.25 &nbsp;&nbsp;FULL DISCLOSURE</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>34&nbsp;</FONT></TD></TR>
</table>
<BR>

<p align=center>
<font size=2>i</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<TABLE CELLPADDING=0 CELLSPACING=3 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT  WIDTH=90%><FONT FACE="Times New Roman" SIZE="2"><B><a href="#zk304">ARTICLE 4. REPRESENTATIONS AND WARRANTIES OF BUYERS</a></B> </FONT></TD>
     <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman" SIZE="2"><B>34&nbsp;</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 &nbsp;&nbsp;&nbsp;&nbsp;ORGANIZATION</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>34&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 &nbsp;&nbsp;&nbsp;&nbsp;AUTHORITY</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>34&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 &nbsp;&nbsp;&nbsp;&nbsp;NON-CONTRAVENTION</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>35&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 &nbsp;&nbsp;&nbsp;&nbsp;AVAILABLE FUNDS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>35&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B><a href="#zk305">ARTICLE 5. COVENANTS</a></B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>35&nbsp;</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 &nbsp;&nbsp;&nbsp;&nbsp;CONDUCT OF BUSINESS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>35&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 &nbsp;&nbsp;&nbsp;&nbsp;REGULAR REPORTING</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>38&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 &nbsp;&nbsp;&nbsp;&nbsp;INVESTIGATION OF THE COMPANY'S BUSINESS BY THE BUYERS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>38&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 &nbsp;&nbsp;&nbsp;&nbsp;ENVIRONMENTAL INVESTIGATIONS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>38&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 &nbsp;&nbsp;&nbsp;&nbsp;TRANSFERS OF ENVIRONMENTAL PERMITS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>38&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 &nbsp;&nbsp;&nbsp;&nbsp;COMMERCIALLY REASONABLE EFFORTS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>39&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 &nbsp;&nbsp;&nbsp;&nbsp;NON-SOLICITATION OF EMPLOYEES</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>42&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 &nbsp;&nbsp;&nbsp;&nbsp;NON-COMPETE</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>42&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 &nbsp;&nbsp;&nbsp;&nbsp;CONFIDENTIAL INFORMATION</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>43&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 &nbsp;&nbsp;NOTIFICATION OF CERTAIN MATTERS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>44&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 &nbsp;&nbsp;PUBLIC ANNOUNCEMENTS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>44&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 &nbsp;&nbsp;EXCLUSIVE DEALING</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>44&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13 &nbsp;&nbsp;EMPLOYEE MATTERS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>45&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14 &nbsp;&nbsp;TRANSITION</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>47&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15 &nbsp;&nbsp;CONFIDENTIAL INFORMATION KNOWN TO CONTINUING BUSINESS EMPLOYEES</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>47&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.16 &nbsp;&nbsp;AFFILIATE ARRANGEMENTS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>48&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.17 &nbsp;&nbsp;KNOWLEDGE OF THE BUYERS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>48&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.18 &nbsp;&nbsp;TRANSFER TAXES</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>48&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.19 &nbsp;&nbsp;CHANGE OF NAME</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>48&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B><a href="#zk306">ARTICLE 6. CONDITIONS TO CLOSING</a></B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>48&nbsp;</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 &nbsp;&nbsp;&nbsp;&nbsp;CONDITIONS TO OBLIGATIONS OF EACH PARTY TO EFFECT THE CLOSING</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>48&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 &nbsp;&nbsp;&nbsp;&nbsp;CONDITIONS TO OBLIGATIONS OF THE BUYERS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>49&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 &nbsp;&nbsp;&nbsp;&nbsp;CONDITIONS TO OBLIGATIONS OF THE COMPANY</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>51&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B><a href="#zk307">ARTICLE 7. TERMINATION</a></B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>51&nbsp;</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 &nbsp;&nbsp;&nbsp;&nbsp;TERMINATION</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>51&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 &nbsp;&nbsp;&nbsp;&nbsp;EFFECT OF TERMINATION</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>52&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 &nbsp;&nbsp;&nbsp;&nbsp;AMENDMENT</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>52&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 &nbsp;&nbsp;&nbsp;&nbsp;EXTENSION</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>52&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B><a href="#zk308">ARTICLE 8. SURVIVAL AND INDEMNIFICATION</a></B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>53&nbsp;</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 &nbsp;&nbsp;&nbsp;&nbsp;SURVIVAL OF REPRESENTATIONS AND WARRANTIES</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>53&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 &nbsp;&nbsp;&nbsp;&nbsp;ESCROW FUND; INDEMNIFICATION</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>53&nbsp;</FONT></TD></TR>
</table>
<BR>

<p align=center>
<font size=2>ii</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<TABLE CELLPADDING=0 CELLSPACING=3 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT  WIDTH=90%><FONT FACE="Times New Roman" SIZE="2"><B><a href="#zk309">ARTICLE 9. GENERAL PROVISIONS</a></B> </FONT></TD>
     <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman" SIZE="2"><B>58&nbsp;</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 &nbsp;&nbsp;&nbsp;&nbsp;ASSIGNMENT</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>58&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 &nbsp;&nbsp;&nbsp;&nbsp;PARTIES IN INTEREST</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>58&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 &nbsp;&nbsp;&nbsp;&nbsp;WAIVER; REMEDIES</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>59&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 &nbsp;&nbsp;&nbsp;&nbsp;FEES AND EXPENSES</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>59&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 &nbsp;&nbsp;&nbsp;&nbsp;NOTICES</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>59&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 &nbsp;&nbsp;&nbsp;&nbsp;CAPTIONS; CURRENCY</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>60&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 &nbsp;&nbsp;&nbsp;&nbsp;ENTIRE DOCUMENT</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>60&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 &nbsp;&nbsp;&nbsp;&nbsp;SEVERABILITY</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>60&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 &nbsp;&nbsp;&nbsp;&nbsp;GOVERNING LAW; JURISDICTION</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>61&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 &nbsp;&nbsp;SCHEDULES AND EXHIBITS; DISCLOSURE</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>61&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.11 &nbsp;&nbsp;COUNTERPARTS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>61&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.12 &nbsp;&nbsp;SPECIFIC PERFORMANCE</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>61&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.13 &nbsp;&nbsp;CONSTRUCTION; INTERPRETATION</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>61&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.14 &nbsp;&nbsp;OTHER REMEDIES</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>61&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B><a href="#zk310">ARTICLE 10. DEFINITIONS</a></B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>61&nbsp;</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 &nbsp;&nbsp;DEFINITIONS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>61&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 &nbsp;&nbsp;TERMS GENERALLY</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>76&nbsp;</FONT></TD></TR>
</TABLE>
<BR>

<p align=center>
<font size=2>iii</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>LIST OF SCHEDULES AND
EXHIBITS</U> </FONT> </H1>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=30% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Exhibit A</FONT></TD>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Assignment and Assumption Agreement</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Exhibit C</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Escrow Agreement</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Exhibit D</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>General Assignments and Bills of Sale</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Exhibit E</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Products</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Schedule 1.1(c)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Excluded Assets</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Schedule 1.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Excluded Liabilities</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Schedule 2.0</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Selling Subsidiaries</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Schedule 2.4(d)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Board Resolutions</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Schedule 2.4(e)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Opinion of Counsel</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Schedule 3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Company Disclosure Schedule</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Schedule 5.6(e)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Environmental Matters</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Schedule 5.13(b)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2">Business Employees <I>[to be added after the date hereof]</I> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Schedule 5.16</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Contracts to be Terminated</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Schedule 6.2(g)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Consent Required Contracts</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Schedule 6.2(i)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Key Employees</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Schedule 6.2(l)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>InterCompany Indebtedness</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Schedule 8.2(b)(6)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>IP Matters</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Schedule 8.2(c)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Deemed Losses</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Schedule 10.1(a)(10)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Acquired Subsidiaries</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Schedule 10.1(dddd)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Indebtedness Exclusion</FONT></TD></TR>
</TABLE>
<BR>

<p align=center>
<font size=2>iv</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>ASSET PURCHASE
AGREEMENT </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ASSET PURCHASE AGREEMENT dated as of
December&nbsp;9, 2007 by and among (i) Hewlett-Packard Company (the
&#147;<U>Buyer</U>&#148;), and Nur Macroprinters Ltd., a public company organized under
the laws of the State of Israel (the &#147;<U>Company</U>&#148;). </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>W &nbsp;I &nbsp;T &nbsp;N &nbsp;E &nbsp;S &nbsp;S &nbsp;E &nbsp;T &nbsp;H &nbsp;: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>,
the Company and the Company Subsidiaries are engaged in the Business; and </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the
Company and the Selling Subsidiaries listed in <U>Schedule 2.0</U> (&#147;<U>Selling
Subsidiaries</U>&#148;) wish to sell and assign to the Buyers, and the Buyers wish to
purchase and assume from the Company and the Selling Subsidiaries the Business through the
acquisition of the Acquired Assets (as defined below) and the assumption of the Assumed
Liabilities (as defined below) relating to the Business, all in consideration for the
Purchase Price (as defined below) and on the terms and conditions set forth herein; and </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>,
the board of directors of the Company, has determined the Transaction (as defined below)
desirable and in the best interests of the Company and its subsidiaries and has approved
the Transaction pursuant to this Agreement and all the other transactions contemplated
hereby. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW,
THEREFORE</B>, in consideration of the premises and of the mutual representations,
warranties, covenants and agreements hereinafter contained, the parties agree as follows: </FONT></P>

<a name=zk301></a>

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<H1 ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 1. ASSETS AND
LIABILITIES </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;1.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Purchase
and Sale of Acquired Assets.</U> </FONT> </P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
the terms and subject to the conditions set forth in this Agreement, at the
          Closing, the Company and the Selling Subsidiaries shall sell, convey, assign,
          transfer and deliver to the Buyers, and in reliance on the accuracy of the
          representations and warranties and the performance of the covenants of the
          Company and the Selling Subsidiaries, the Buyers shall purchase, acquire and
          accept from the Company and the Selling Subsidiaries, all of the Company&#146;s
          and the Selling Subsidiaries&#146; rights, title and interest in and to the
          Acquired Assets, free and clear of all Liens, other than Permitted Liens, and
          without any further Liability that is not included in the Assumed Liabilities.
          The identity of the Buyers for the specific Acquired Assets shall be specified
          in the General Assignments and Bill of Sales delivered at Closing. In the event
          that as a result of Buyer&#146;s request to have the Company or a Selling
          Subsidiary sell assets to a Buyer&#146;s Affiliate in a jurisdiction outside
the           jurisdiction of such selling entity, any incremental costs of such transfer
          incurred by the seller, if any, due to such transfer being to a foreign
          jurisdiction, shall be borne by the Buyers.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>1</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Acquired Assets purchased by any Affiliates of the Buyer (the           &#147;<U>Additional
Buyers</U>&#148;) (or by any other Affiliate of the Buyers)           may require
separate instruments of transfer that shall be executed with such           Additional
Buyers (or Affiliate of Buyers). In the event that any Acquired           Assets are
owned or held by a Selling Subsidiary, separate instruments of           transfer shall
be executed with such Selling Subsidiaries and except to the           extent stated
otherwise, reference to the &#147;Company&#148; in this Agreement           shall include
the Selling Subsidiaries. The Company and the Buyer shall cause           their
respective subsidiaries and Affiliates to execute such separate           instruments. In
the event that the assignment, transfer, conveyance or delivery           of any Acquired
Asset to the Buyers or any Affiliate thereof involves or gives           rise to any
Liability, other than such Liability which is an Assumed Liability,           then such
Liability shall be deemed to be an Excluded Liability as further           described in
<U>Section 1.2(b)</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
anything herein to the contrary, from and after the Closing           Date, the Company
and the Selling Subsidiaries shall retain all of the right,           title and interest
in and to, and there shall be excluded from the sale,           conveyance, assignment or
transfer to the Buyers hereunder, all assets of the           Company and the Selling
Subsidiaries other than the Acquired Assets (the           &#147;<U>Excluded Assets</U>&#148;).
Without limiting the generality of the           foregoing, the Excluded Assets include
all right, title and interest of the           Company and any of the Company
Subsidiaries in those assets identified on <U>Schedule&nbsp;1.1(c)</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;1.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Purchase
and Sale of Assumed Liabilities.</U> </FONT> </P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
the terms and subject to the  conditions  set forth  herein,  at the Closing  the
 Company and the Selling  Subsidiaries  shall sell,       convey,  assign,  transfer  and
deliver to the Buyers or one or more of the Buyers'  Affiliates  (as  identified  herein
and in the General       Assignments  and Bills of Sales),  and in reliance  on the
 accuracy of the  representations  and  warranties  and the  performance  of the
      agreements  of the Company and the  Selling  Subsidiaries,  the Buyers or one or
more of the Buyers'  Affiliates  shall  assume,  purchase,       acquire and accept from
the Company and the Selling Subsidiaries, all of the Assumed Liabilities. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Buyers shall not assume any of the Company's (or the Selling Subsidiaries')
Liabilities that are not included in the Assumed Liabilities. Notwithstanding
anything in this <U>Section 1.2</U> to the contrary, the Assumed Liabilities shall not
include any Liabilities whether arising under any Contract, commitment,
agreement, tort or otherwise, that should have been reflected or provided for on the
Financial Statements in accordance with GAAP but were not so reflected on such
Financial Statements, or which were incurred after the date hereof not in the
ordinary course of business. Without limitation of the foregoing, the Assumed
Liabilities shall also exclude (i) all Liabilities arising out of or in
connection with any Excluded Asset or any agreement among the Company and any of the
Company Subsidiaries or among any such Company Subsidiaries, (ii) all of the
Company's (or Selling Subsidiaries') Liabilities with respect to costs and
expenses incurred in connection with this Agreement and the transactions
contemplated hereby, including the Transaction Expenses, as well as any cost or
liability incurred in order to facilitate the transfer of the Acquired Assets to the
Buyers at the Closing and which is not an Assumed Liabilities, (iii) all
Liabilities with respect to all Selling Group Company Employees and Consultants,
including without limitation under any Company Benefit Plan or Employment
Agreement, and all claims for vacation days, severance payments, recuperation
payments or other similar benefits against the Selling Group Companies and any
Liability arising from accidents, occurrences, misconduct, negligence, breach of
fiduciary duty, in each case that arose or relate to the period prior to the Closing,
irrespective of whether such claims are made prior to or after the Closing, other
than the Liabilities in connection with the Continuing Business Employees included in
the Assumed Liabilities, (iv) all Liabilities with respect to payments to any
Selling Group Company Employees in connection with the Transaction, including
any bonuses, acceleration rights, change of control rights and the like, (v) all
Liabilities arising out of or in connection with any activity or matter which is
not part of the Business, except to the extent specifically included in items of the
Financial Statements that are included in the Assumed Liabilities, (vi)
any Liability arising from the Company's (or Selling Subsidiaries') failure
to perform any of its commitments, obligations or agreements contained in this
Agreement or in any Transaction Document, (vii) any and all Liabilities of the
Company or any of the Company Subsidiaries for Taxes including without limitation all
Taxes applicable to Company or any of the Company Subsidiaries arising from or in
connection with the transactions contemplated hereby, except for Taxes incurred
with respect to the operation of the Acquired Assets as a business after the date
hereof in the ordinary course of business, (viii) any Action or threatened
Action by or on behalf of any current or prior shareholder of the Company whether or
not in connection with this Agreement or the transactions contemplated hereby,
(ix) any Indebtedness of the Selling Group Companies and all Liabilities
associated with the termination or amendment of any such Indebtedness or other
financing arrangements, (x) any and all Liabilities under, or resulting from
non-compliance with, Environmental Laws occurring or related to the period prior to
the Closing, irrespective of whether a claim is made in respect thereof prior to or
after the Closing, (xi) any Liability arising out of, under, or in connection
with Contracts that are not Acquired Contracts, (xii) any Liability arising out of,
under, or in connection with any breach of an Acquired Contract occurring prior to
the Closing Date, other than a breach of warranty to a customer in the ordinary course of
business and other than a breach for non-payment not exceeding 63 days past due,
and (xiii) any Liability arising out of, under, or in connection with those
matters set forth in <U>Schedule 1.2</U> attached hereto. Without limitation, all
liabilities and obligations excluded under this <u>Section 1.2</u>, including all
Liabilities which are not Assumed Liabilities, shall be referred herein as "<u>Excluded
Liabilities</u>." </FONT> </P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<a name=zk302></a>

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<H1 ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 2. PURCHASE
PRICE AND CLOSING </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Purchase
Price</U>. Subject to the terms and conditions set forth herein, in consideration for the
sale, assignment, conveyance, transfer and delivery of the Acquired Assets being sold,
conveyed, transferred, assigned and delivered hereunder, the Buyer will pay, or cause the
respective Buyer Affiliate to pay, to the Company the Purchase Price (subject to
adjustment in accordance with the provisions of Section 2.2) against delivery by the
Company of a value added tax invoice and an exemption from withholding certificate (or,
if the Company fails to so provide Buyer with such exemption, Buyer shall withhold any
amounts required by law). The payment of the Purchase Price shall be made as follows:  </FONT></P>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Closing the Buyer will deliver,  or cause the respective Buyer Affiliate to deliver,
 to the Company, a sum of US$103,000,000 out       of the Purchase  Price, by wire
transfers of immediately  available funds to the bank accounts  designated by the Company
by written notice       to Buyer at least four (4) Business Days prior to the Closing. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Closing the Buyer will deliver to the Escrow Agent a sum of US$ 14,500,000 out of
the Purchase Price to be held by the Escrow Agent pursuant to the Escrow Agreement
(the "<U>Escrow Amount</U>"). Such Escrow Amount shall be beneficially owned by the Company
and shall be available to compensate the Buyers as provided in <U>ARTICLE 8</U>. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>3</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Closing the Buyer will deliver,  or cause the respective  Buyer Affiliate to deliver,
 to the Company the applicable  value added       tax required to be paid hereunder
against delivery by the Company of a value added tax invoice. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;2.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Purchase
Price Adjustment.</U> The Purchase Price shall be subject to adjustment in accordance with
the provisions of this Section: </FONT> </P>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
"<U>Target Net Debt</U>" shall equal a sum of US$15,300,000. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Closing
Cash Balance</U>" means the total amount of Cash of the Selling Group Companies other than
the Acquired Subsidiaries at Closing, provided that the Closing Cash Balance shall
not include any Cash held by the Acquired Subsidiaries, and provided further however
that in calculating the Closing Cash Balance there shall be added to the amount
of such Cash (i) the aggregate amount of any costs or expenses paid by the
Selling Group Companies in connection with the termination of any Selling Group Company
Employee (other than costs associated with the transfer of the Continuing
Employees from a Selling Subsidiary to a Buyer), (ii) the aggregate amount of any
Transaction Expenses paid by the Selling Group Companies, (iii) the aggregate
amount of any costs and expenses paid by the Selling Group Companies after the
date hereof in excess of $100,000 in connection with the Environmental Matters,
and (iv) the aggregate amount of any other costs and expenses paid by the
Selling Group Companies after the date hereof in respect of matters which are Excluded
Liabilities, and there shall be deducted from the amount of such Cash any
proceeds actually received by the Company from the date hereof through the Closing (X)
from the exercise of options or warrants to purchase shares of the Company, and (Y)
from Excluded Assets. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Closing
Net Debt</U>" means the Indebtedness of the Selling Group Companies as of the Closing,
less the Closing Cash Balance; provided that for the purpose of this <U>Section
2.2</U> (including the calculation of the Target Net Debt), Indebtedness shall only
refer to the Indebtedness of the Selling Group Companies to Bank Hapoalim B.M,
Bank Leumi le-Israel B.M and Israel Discount Bank Ltd., in connection with
existing credit and loan facilities but excluding guarantees. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
the date that is at least fourteen days prior to the Closing until the Closing, the
Selling Group Companies shall provide the Buyer (or its appointee) access to
the books and records of the Selling Group Companies to verify the Company's
calculation of the estimated Closing Cash Balance and the estimated Closing
Net Debt (the "<U>Estimated Closing Net Debt</U>"). At least 3 days prior to the
Closing, the Company shall deliver to the Buyer a certificate setting forth the
calculation thereof (the "<U>Draft Closing Cash Statement</U>"). </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that the Estimated Closing Net Debt is higher than the Target Net Debt, then
60% of such difference shall be added to the Purchase Price (on a dollar for
dollar basis) at the Closing, and 40% shall be retained by the Buyer (the "<U>Positive
Withheld Amount</U>"). </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that the Estimated Closing Net Debt is lower than the Target Net Debt, then
the Purchase Price shall be decreased on a dollar for dollar basis by (i) the
entire aggregate amount of such difference at the closing and (ii) 40% of such
difference (the "<U>Negative Withheld Amount</U>"). </FONT> </P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>4</font></p>
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<page>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
"<U>Withheld Amount</U>" shall mean either the Positive Withheld Amount or the Negative Withheld
Amount, as applicable. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promptly
following the Closing, but in any event no later than 90 days thereafter, the Buyer
shall calculate the final Closing Cash Balance and the final Closing Net Debt
(the "<U>Final Closing Net Debt</U>") and deliver to the Company a certificate setting
forth the calculation thereof (the "<U>Closing Cash Statement</U>") together with any
supporting documentation. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the Company has any good faith objections with respect to any balances included on the
Closing Cash Statement, the Company shall provide a written notice specifying the
details of the dispute (the "<U>Notice of Dispute</U>"), to the Buyer within 30 days after
receipt of the Closing Cash Statement ("<U>Dispute Period</U>"), together with any
supporting documentation, in reasonable detail of any such objections. The Buyer
and the Company shall attempt to resolve the underlying dispute in good faith as
promptly as possible after the delivery of the Notice of Dispute. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the parties  cannot resolve the underlying  dispute in the Notice of Dispute within a
fourteen  (14)-day  period after receipt by the       Buyer of the Notice of Dispute,
 such dispute shall be resolved by a nationally  known  independent  firm of certified
 public  accountants       jointly  chosen by the Buyer and the  Company,  which in the
absence of an agreement  shall be Deloitte &amp; Touche . The written  decision of       such
 accounting  firm shall be  rendered  within no more than 30 days from the date that the
matter is  referred to such firm and shall be       final and binding on the parties
hereto and shall not be subject to dispute or review.  Following any such dispute
 resolution  (whether by       mutual agreement of the parties or by written decision of
the accounting firm), the Closing Cash Statement,  the Closing Cash Balance,  and
      the Final Closing Net Debt (as  determined in such dispute  resolution)  shall be
determined  final.  Any fees or expenses  payable to such       accounting firm shall be
shared equally between the Company and the Buyer. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that based on the Closing Date  Statements it transpires  that as of the
Closing Date,  the Final Closing Net Debt is equal       to the Estimated Net Debt, then
the Buyer shall release to the Company the entire Withheld Amount. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(l) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that based on the Closing Date  Statements it transpires  that as of the
Closing Date, the Final Closing Net Debt is higher       than the  Estimated  Net Debt,
 then the Buyer shall  release to the Company the entire  Withheld  Amount and the
 Purchase  Price shall be       increased on a dollar for dollar basis by the entire
aggregate  amount of such  difference,  which difference shall be paid by the Buyer to
      the Company by wire transfer of immediately  available  funds to an account
 designated by the Company within three Business Days after the       final determination
of the amount of such increase in the Purchase Price. </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>5</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(m) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that based on the Closing Date Statements it transpires that as of the
Closing Date, the Final Closing Net Debt is lower than the Estimated Net Debt,
then the Purchase Price shall be further reduced on a dollar for dollar basis by the
entire aggregate amount of such difference. In the event that the reduction in
the Purchase Price is less than the Withheld Amounts, then any remaining amounts
out of the Withheld Amounts (after reduction of the Purchase Price) shall
be paid by the Buyer to the Company by wire transfer of immediately available
funds to an account designated by the Company within three Business Days after the final
determination of the amount of such reduction in the Purchase Price. In the event
that the reduction in the Purchase Price is greater than the Withheld Amounts, then
all the Withheld Amounts shall be deducted from the Purchase Price, and any
reduction in excess of the Withheld Amounts (the "<U>Excess Reduction</U>") shall be
paid to the Buyer out of the Escrow Amount by way of transfer from the Escrow Fund
to the Buyer of such Excess Reduction. </FONT> </P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(n) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
no event shall the Purchase Price be increased by the provisions of this <U>Section 2.2</U> by
more than US$5,500,000. </FONT> </P></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Closing</U>.
The closing of the transactions contemplated by this Agreement (the &#147;<U>Closing</U>&#148;)
will take place (i) at the offices of Meitar Liquornik Geva &amp; Leshem Brandwein, 16
Abba Hillel Silver Road, Ramat-Gan 52506, Israel, at 10:00 a.m. Tel Aviv time on the
fifth Business Day following the satisfaction or waiver of all conditions set forth in <U>ARTICLE
6</U>, or (ii) at such other place, date and time as the Company and the Buyer may agree.
The date and time at which the Closing actually occurs is referred to herein as the &#147;<U>Closing
Date</U>&#148;.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Closing
Deliverables of the Company</U>. At or prior to the Closing, the Company and the Selling
Subsidiaries will deliver to the Buyers the following:  </FONT></P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Acquired Assets, including (i) with respect to the Acquired Contracts, a complete,
accurate and legible copy of each such Contract (including all amendments and
supplements thereto); (ii) with respect to the Acquired Contracts that were Consent
Required Contracts as of the date of this Agreement, a written consent by the
third parties thereto to the transfer and assignment of such Consent Required
Contract to the Buyers; (iii) with respect to the Contracts to be terminated
pursuant to <U>Section 5.16</U> hereof, written evidence of such termination; and (iv)
with respect to all Software included in the Acquired Assets, a copy of all such
Software (such delivery to be made by electronic means); </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;duly
executed General Assignments and Bills of Sale, and accompanying powers of attorney,
which shall be in full force and effect; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;specific
 assignments,  bills of sale,  endorsements,  deeds and other  good and  sufficient
 instruments  of  conveyance  and  transfer       reasonably  requested  by the Buyers,
 in form and  substance  reasonably  satisfactory  to the Buyer and its counsel,
 including,  without       limitation,  the  Assignment  and  Assumption  Agreements,  as
shall be effective  to vest in the Buyers title to all the Acquired  Assets,
      including,  without  limitation,  assignment  deeds and powers of attorney  with
 respect to any and all Company  Registrable  Intellectual       Property  Rights,  and
all the  applications  to register  any of the  foregoing as well as physical  possession
 (whether by way of actual       delivery or, if more  appropriate,  by  confirmation of
handing over of possession to the control of a Buyers'  representative)  of certain
      Acquired Assets acquired hereunder, whose physical delivery is reasonably required,
 including, without limitation, all source code (to the       extent owned by the
Company) of all Products and Software; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;fully
executed resolutions of the board of directors of the Company and the boards of
directors of the Selling Subsidiaries duly adopted in the form attached hereto
as <U>Schedule 2.4(d)</U>; </FONT> </P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>6</font></p>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an
opinion of Ephraim Abramson &amp; Co. Law Offices, counsel to the Company, dated as of
the Closing, in the form attached hereto as <U>Schedule 2.4(e)</U>; </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an
executed signature page of the Company to the Escrow Agreement; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
copy of all Consents as set forth in <U>Schedule 6.2(g)</U>; </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
written resignation from each of the officers and directors of each of the Acquired
Subsidiaries effective as of the Closing Date; </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;duly
executed share transfer deeds or similar  documents  required under  applicable  Laws for
the transfer of the shares of each of the       Acquired Subsidiaries, including duly
executed share certificates in the name of the applicable Buyers. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
other instruments,  agreements,  certificates, opinions and documents reasonably required
to be delivered by the Company at or prior       to the Closing Date pursuant to this
Agreement. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;2.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Closing
Deliverables of the Buyers.</U>   </FONT> </P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Closing, the Buyers will deliver the following: </FONT></P></TD>
</TR>
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<BR>

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<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
wired funds required to be delivered pursuant to <U>Section 2.1</U>; </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(2) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;duly
executed General Assignments and Bills of Sale, which shall be in full force and effect; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(3) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an
executed signature page of the Buyers to the Escrow Agreement; and </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(4) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
other instruments,  agreements,  certificates,  opinions and documents reasonably
required to be delivered by the Buyers at or prior to the Closing Date pursuant to this
Agreement. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
consummate the Closing, the Buyer will or will cause the Buyer's Affiliates to, wire
the funds required to be delivered pursuant to <U>Section 2.1</U> after all the conditions
to Closing specified in <U>ARTICLE 6</U> have been satisfied. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Simultaneous
Closing</U>. All transactions occurring at the Closing as specified in <U>Sections 2.4
and 2.5</U> shall be deemed to take place simultaneously and no transaction shall be
deemed to have been completed and no document or certificate shall be deemed to have been
delivered until all transactions are completed and all documents delivered.  </FONT></P>

<p align=center>
<font size=2>7</font></p>
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<a name=zk303></a>

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<H1 ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 3.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company (including for the purpose of this <U>Article 3</U>, the Selling Subsidiaries)
represents and warrants to the Buyers except as expressly set forth or referred to with
respect to a particular representation in the disclosure schedule delivered to the Buyers
by the Company on the date of this Agreement as an inducement to the Buyers to enter into
this Agreement (the &#147;<U>Company Disclosure Schedule</U>&#148;): </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;3.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Organization
and Qualification; Subsidiaries</U> </FONT> </P>

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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as provided in Section <U>3.1(a) of the Company Disclosure Schedule</U>, each of the Company,
Selling Subsidiaries and the Acquired Subsidiaries is a corporation duly
organized and validly existing under the Laws of its jurisdiction of incorporation
and has the requisite corporate power and authority to own, lease and operate its
assets and properties, including the Acquired Assets, and to carry on the
Business as it is now being conducted, and is duly qualified or licensed as a foreign
corporation to do business, and, where such concept is applicable, is in good
standing, in each jurisdiction where the character of the properties owned, leased or
operated by it or the nature of its activities makes such qualification or
licensing necessary. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section
3.1(b) of the Company Disclosure Schedule</U> lists each of the Company subsidiaries
(each, a "<U>Company Subsidiary</U>" and, collectively, the "<U>Company Subsidiaries</U>"),
the jurisdiction of incorporation of each Company Subsidiary and the Company's equity
interest therein, and, if not directly or indirectly wholly owned by the Company,
the identity and ownership interest of each of the other owners of such Company
Subsidiary. Other than as set forth on <U>Section 3.1(b) of the Company Disclosure
Schedule</U>, the Company, directly or indirectly, owns 100% of the outstanding
equity interests of each of the Company Subsidiaries. As of the date hereof, neither the
Company nor any Company Subsidiary has agreed, is obligated to make or is bound
(or has bound its property) by any written agreement or contract under which it is
legally obligated to make any future investment (in the form of a loan, capital
contribution or otherwise) in any other entity (other than the Company or a
wholly owned Company Subsidiary). Other than the Company's interests in the Company
Subsidiaries, neither the Company nor any Company Subsidiary directly or
indirectly owns any equity, partnership or similar interest in any Person.
Other than as set forth in <U>Section 3.1(b) of the Company Disclosure Schedule</U>, all
of the issued and outstanding shares of capital stock of or other equity interests
in each Company Subsidiary have been duly authorized and validly issued and are fully
paid and non-assessable and all such shares or interests owned by the Company or
any Company Subsidiary are owned free and clear of all Liens. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has delivered to the Buyer a complete and correct copy of the Memorandum of
Association and Articles of Association, as applicable, and all other
organization documents of the Company, the Selling Subsidiaries and the Acquired
Subsidiaries (collectively, the "<U>Formation Documents</U>"). Such Formation Documents
are in full force and effect and no other organizational documents are applicable to or
binding upon the Company or any Company Subsidiary. Each of the Company, the
Selling Subsidiaries and Acquired Subsidiaries is not in violation in any
respect of any of the provisions of the applicable Formation Documents. </FONT> </P></TD>
</TR>
</TABLE>
<BR>


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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
statutory books and registers of the Company,  Selling Subsidiaries and Acquired
 Subsidiaries have been properly kept in accordance       with applicable  Laws and
 regulations.  All  information,  resolutions  and other  documents with respect to each
of the Company,  Selling       Subsidiaries and Acquired Subsidiaries have been duly
filed or published in accordance with applicable Laws and regulations. </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>8</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;3.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Agreement
Authorized and its Effect on Other Obligations.</U> </FONT> </P>

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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Authorization
and Enforceability</U>. The Company has all requisite power and authority to execute and
deliver this Agreement, to perform its obligations hereunder and, to consummate
the transactions contemplated hereby. The execution and delivery by the Company of
this Agreement and the performance by the Company of its obligations hereunder
have been duly and validly authorized by all necessary corporate action on the part
of the Company. This Agreement has been duly executed and delivered by the Company and
constitutes a legal, valid and binding obligation of the Company, enforceable
against it in accordance with its terms, except as such enforceability may be limited
by bankruptcy, insolvency, reorganization, debtor relief or similar laws
affecting the rights of creditors generally and by general principles of
equity. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Approvals</U>.
Except as set forth in <U>Section 3.2(b) of the Company Disclosure Schedule</U>, no consent,
approval, order or authorization of, or registration, declaration or filing
with, any Governmental Authority, is required by or with respect to the Company or a
Company Subsidiary in connection with the execution and delivery of this Agreement
or the consummation of the transactions contemplated hereby, except for (A) the
requirements of any Governmental Authority under applicable competition, antitrust
or foreign investment or trade regulatory Laws, including the applicable
requirements of the HSR Act, (B) the approval of the Israeli Investment Center of the
Israeli Ministry of Trade, Industry and Labor (the "<U>Investment Center</U>"), (C)
the approval of the Office of the Chief Scientist of the Israeli Ministry of
Trade, Industry and Labor ("<U>OCS</U>"), and (D) the approval, if applicable, of the
Israeli Commissioner of Restrictive Trade Practices to the extent required
pursuant to the Restrictive Trade Practices Act, 1988 (the "<U>Trade Practices Act</U>"). </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Conflict</U>. Except as set forth in <U>Section 3.2(c) of the Company Disclosure Schedule</U>,
assuming the receipt by Closing of all the required Consents, neither the
execution and delivery of this Agreement nor the consummation of the transactions
contemplated hereby will (i) conflict with or result in a violation or breach of
any term or provision of, nor constitute a default under, the Formation Documents;
(ii) contravene, conflict with or result in a violation or breach of, or result
in a default under, or result in the acceleration or cancellation of any
obligation under, or give rise to a right by any person to terminate, cancel,
modify or amend in any respect its obligations under any material Acquired
Contract to which any of the Selling Group Companies is a party or by which any of them
or their properties or assets are bound or any other material Contract to which
any of the Selling Group Companies is a party and which hinders, restricts,
impairs or limits the ability of the Selling Group Companies to consummate the
transactions contemplated hereunder, (iii) contravene, conflict with or result
in a violation of, or give any Governmental Authority or other Person the right to
challenge the Transaction or to exercise any remedy or obtain any relief under, any
legal requirement or any order, writ, injunction, judgment or decree to which the
Selling Group Companies or any Acquired Assets and Assumed Liabilities, are subject, (iv)
contravene, conflict with or result in a violation of any of the terms or
requirements of, or give any Governmental Authority the right to revoke, withdraw,
suspend, cancel, terminate, modify or exercise any right or remedy or require
any refund or recapture with respect to, any Grant or benefit given by any
Governmental Authority or under applicable Law (or any benefit provided or
available thereunder) or other material permit, license, consent,
authorization, Grant, benefit, or right that is held by the Company or a Company
Subsidiary or that otherwise relates to the Business or Acquired Assets or the
assets of the Acquired Subsidiaries, (v) result in the imposition, creation or
crystallization of any Lien upon or with respect to any Acquired Assets or asset
or property owned, leased or used by the Acquired Subsidiaries other than
Permitted Liens, or (vi) with the passage of time, the giving of notice, or the
taking of any action by a third person, or any combination thereof, have any of
the effects set forth in clauses (i) through (v) of this Section. <U>Section 3.2(c) of the
Company Disclosure Schedule</U> sets forth a complete and accurate list of (A) all
holders of any outstanding Indebtedness of the Company or the Company Subsidiaries and
the lessors of any property leased by the Company or the Company Subsidiaries,
in each case whose consent is required in connection with the Transaction and
(B) all other parties to any Acquired Contract to which the Company or the Company
Subsidiaries is a party or bound whose consent is required in connection with the
Transaction. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>9</font></p>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;3.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Capitalization.</U> </FONT> </P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in the Formation Documents or in <U>Section 3.3(a)of the Company Disclosure
Schedule</U>: (i) none of the outstanding shares or other securities in the Acquired
Subsidiaries, and no holder of any such shares or securities or any other Person, is
entitled or subject to any preemptive right, right of participation or similar
right; (ii) none of the outstanding shares or other securities in the Acquired
Subsidiaries, and no holder of such shares or securities, is subject to any right of
first offer or refusal; and (iii) there are no contracts, undertakings or
agreements or voting trusts or other agreements or understandings relating to the voting
or registration of, or restricting any person from purchasing, selling, pledging
or otherwise disposing of, or granting any option or similar right with respect
to, any shares or other securities in the Acquired Subsidiaries. The Company is not
under any obligation, or bound by any contract pursuant to which it may become
obligated, to repurchase, redeem or otherwise acquire any shares or securities
in the Acquired Subsidiaries. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section
3.3(b) of the Company Disclosure Schedule</U> sets forth the outstanding Indebtedness
of each of the Selling Group Companies. Except as set forth in <U>Section 3.3(b)of
the Company Disclosure Schedule</U>, no Indebtedness of the Acquired Subsidiaries
contains (a) any restriction upon (i) the repayment, prepayment or redemption
of such Indebtedness without penalty, make-whole payments or similar
obligation, (ii) the incurrence of Indebtedness by any of the Acquired
Subsidiaries, or (iii) the ability of any of the Acquired Subsidiaries to
grant any Liens on its properties or assets, or (b) any obligation to maintain
minimum equity, capital, net worth, profitability or income. </FONT> </P></TD>
</TR>
</TABLE>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;3.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Company
Documents; Financial Statements.</U> </FONT> </P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since
January 1, 2006, the Company has filed all reports, schedules, forms, registration
statements and other documents required to be filed by the Company with the U.S.
Securities and Exchange Commission (the "<U>SEC</U>") under the Securities Act of 1933, as
amended, (the "<U>Securities Act</U>"), the Securities Exchange Act of 1934, as amended,
and the regulations promulgated thereunder (the "<U>Exchange Act</U>") and applicable
rules and regulations of the SEC thereunder (such filings, the "<U>Company Reports</U>"). </FONT> </P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>10</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of their respective filing dates, the Company Reports complied,  in all material
 respects,  with the applicable  requirements of the       Securities Act and the
Exchange Act, as the case may be, and applicable  rules and regulations of the SEC
thereunder,  and, did not contain       any untrue  statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements       therein, in light of the circumstances under which they were made, not
misleading. </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in Section 3.5(c) of the Company Disclosure Schedules,  the Selling Group
Companies maintain disclosure controls and       procedures required by Rule 13a-15 or
15d-15 under the Exchange Act. </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as disclosed in the Company's  most recent 20-F The Selling Group  Companies  maintain a
system of internal  accounting  controls       sufficient to provide  reasonable
 assurance  that:  (i)  transactions  are executed in accordance  with  management's
 general or specific       authorizations;  (ii) transactions are recorded as necessary
to permit  preparation of financial  statements in conformity with GAAP and to
      maintain asset accountability;  (iii) access to assets is permitted only in
accordance with management's general or specific authorization;       and (iv) the
recorded  accountability  for assets is compared with the existing assets at reasonable
 intervals and  appropriate  action is       taken with respect to any  differences.
 Without  limiting the  generality  of the  foregoing,  to the  Company's  Knowledge  and
except as       disclosed in the Company's most recent 20-F,  there are no material
 weaknesses in the design or operation of the Selling Group  Companies'       internal
 controls  over  financial  reporting  that could  reasonably  be expected to  adversely
 affect the ability of the Selling  Group       Companies to record, process, summarize
and report financial information. </FONT></P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
with respect to those Company Subsidiaries set forth in <U>Section 3.4(e) of the Company
Disclosure Schedule, </U>the Company has delivered to the Buyers true and correct
copies of (i) the audited consolidated financial statements (including any related notes
thereto) of the Company as of, and for the periods ended, December 31, 2005 and
2006, including audited consolidated balance sheets of the Company as of December
31, 2005 and 2006 and audited consolidated statements of operations and cash flows for
the years ended December 31, 2006 and 2005, together with a signed report of the
Company's independent auditors attached thereto, (ii) the unaudited financial
statements (or trial balances, including related notes thereto, if any) of
each of the Company, the Selling Subsidiaries and the Acquired Subsidiaries
as of, and for the periods ended, December 31, 2006 and 2005, including unaudited
balance sheets (or trial balance, as applicable) of each of the Company, the
Selling Subsidiaries and the Acquired Subsidiaries as of December 31, 2006 and 2005and
unaudited statements of operations (or trial balance, as applicable), and (iii)
the unaudited consolidated financial statements of the Company as well as the
unaudited financial statements of each of the Selling Subsidiaries and the Acquired
Subsidiaries (or trial balance, as applicable), as of, and for the period
ended, June 30, 2007, including an unaudited consolidated balance sheet of the Company
as of June 30, 2007 and an unaudited consolidated statement of operations of
the Company (but not cash flows) for the period ended June 30, 2007 (collectively,
the "<U>Financial Statements</U>"). The Financial Statements were prepared in accordance with
the published regulations of the SEC (including regulations relating to the
preparation of audited annual financial statements for inclusion in annual reports filed
with the SEC) and in accordance with United States generally accepted accounting
principles ("<U>GAAP</U>") applied on a consistent basis during the periods involved
and fairly present, in all material respects, the consolidated financial position for
the Selling Group Companies as of the date thereof and the consolidated results
of their operations, cash flows and changes in financial position for the periods
then ended. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>11</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Company has made and kept (and given the Buyer  access to) (i) all  customary  records
and lists of the Company  pertaining  to the       assets of each of the Selling  Group
 Companies,  (ii) all  customary  records and lists of the Selling Group  Companies
 pertaining to the       personnel of each of the Selling  Group  Companies  and  (iii)
all  customary  financial  books,  ledgers,  files and reports of every kind
      maintained by the Selling Group Companies,  which, in each case,  accurately and
fairly reflect the activities of and information regarding       each of the Selling
Group Companies that should be recorded therein. </FONT></P></TD>
</TR>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Undisclosed Liabilities<I></I></U><I>.</I> Except as otherwise disclosed in this
Agreement or the Company Disclosure Schedule, neither the Company nor any Company
Subsidiary has any obligation, expense, claim, deficiency, guaranty or endorsement of any
type, whether accrued, absolute, contingent, matured, unmatured or other (whether or not
required to be reflected in financial statements in accordance with GAAP), except
liabilities which individually or in the aggregate (i)&nbsp;have been reflected in the
Financial Statements or disclosed in the notes thereto (to the extent of such reflection
or disclosure), (ii)&nbsp;have arisen since the Financial Statements in the ordinary
course of business consistent with past practices, or which are not, in the aggregate
material, or (iii)&nbsp;are executory obligations arising in the ordinary course of
business consistent with past practices, none of which is, individually or in the
aggregate, material to the business, cash flows, results of operations, assets or
financial condition of the Selling Group Companies, taken as a whole.<U></U> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Absence
of Certain Changes</U>. Since December 31, 2006, each of the Selling Group Companies has
conducted the Business only in the ordinary course consistent with past practice, and
there has not been any Material Adverse Effect. Without limiting the generality of the
foregoing, except as set forth on Section 3.6 of the Company Disclosure Schedule, from
and after December 31, 2006, neither the Company nor any Company Subsidiary has:  </FONT></P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;suffered
any loss to its property (whether through destruction,  accident,  casualty,
 expropriation,  condemnation or otherwise) or its       business,  or incurred  any
 liability,  damage,  award or judgment  for injury to the  property or business of
others or for injury to any       person (in each case, whether or not covered by
insurance) in excess of $50,000 in any one case or $200,000 in the aggregate; </FONT></P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;made
any capital expenditure in excess of $100,000; </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;sold,
 assigned,  leased or  transferred  any material  assets or  properties,  other than
sales of inventory in the ordinary  course of       business; </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;made
any change in its accounting methods, policies, practices or principles; </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;amended
the Formation Documents; </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;made
any Tax  election,  changed  any annual Tax  accounting  period,  amended  any Tax
Return,  settled or  compromised  any income Tax       Liability, entered into any
closing agreement,  settled any Tax claim or assessment,  surrendered any right to claim
a Tax refund or failed       to make the payments or consent to any extension or waiver
of the limitations period applicable to any Tax claim or assessment; </FONT></P></TD>
</TR>
</TABLE>
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<p align=center>
<font size=2>12</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issued,
delivered,  pledged or otherwise encumbered, sold or disposed of any shares of the
Acquired Subsidiaries' capital stock or other       securities, or created, issued,
delivered,  pledged or otherwise encumbered, sold or disposed of any securities
convertible into, or rights       with respect to, or options or warrants to purchase or
rights to subscribe  to, any shares of the Acquired  Subsidiaries'  capital stock or
      other securities, whether as a result of any exercise thereof or otherwise; </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;split,
 combined or reclassified any of the Acquired  Subsidiaries'  shares of capital stock or
issued or authorized the issuance of any       other securities with respect to, in lieu
of or in substitution for any of its shares of capital stock; </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;declared,
 set aside,  paid or made any dividend or other  distribution with respect to any of its
shares of capital stock, or otherwise       made any payments to any of its  shareholders
in their capacity as such, or redeemed,  repurchased or otherwise  acquired any shares of
its       capital stock or other securities or any rights, options or warrants to acquire
any such shares or other securities; </FONT></P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;incurred,
 assumed or created any  Indebtedness for borrowed money or guaranteed any Indebtedness
for borrowed money of any other Person       except with regard to Indebtedness that are
not in excess of $20,000 in any one case; </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;made,
 incurred,  assumed,  created or  guaranteed  any loan or made any advance  (other than
the making of employee  loans and employee       advances for travel and  entertainment
 in the ordinary course of business  consistent  with past practices) or capital
 contribution to or       investment in any Person; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(l) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;subjected
any of its assets or properties to any Lien or permitted any of its assets or properties
to be subjected to any Lien;  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(m) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;acquired
or agreed to acquire by merging or  consolidating  with, or by purchasing a substantial
 portion of the capital stock or assets       of, or by any other manner, any business or
any corporation,  partnership,  limited liability entity,  joint venture,  association or
other       business organization or Person, or division, operating unit or product line
thereof; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(n) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)
entered into any transaction with any Affiliate,  director,  officer or shareholder of
any Selling Group Company or any Affiliate of       any of the foregoing or (B) made,
directly or indirectly, any payments or transferred,  directly or indirectly, any funds
or other property       to or on behalf of any Affiliate,  director,  non-employee
 officers or shareholder of any Selling Group Company or any Affiliate of any of
      the foregoing  (other than payment of director fees or management  fees in the
ordinary  course,  reimbursements  of ordinary and necessary       business  expenses of
employees or directors  of the Selling  Group  Companies  incurred in  connection  with
their  employment  or service       consistent with written policies of the Company); </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(o) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;purchased
any real property or entered into any Lease  (including  any  capitalized  lease
 obligations)  whose annual  payment  exceeds       $100,000 per year; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(p) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;settled
or compromised any Action in excess of $100,000; or </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(q) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;entered
into any agreement or Contract (other than the Transaction Documents) to take any of
the types of action described in this <U>Section 3.6</U>. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>13</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;3.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Contracts</U> </FONT> </P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section
3.7 of the Company Disclosure Schedule</U> sets forth, under the corresponding subsection,
all of the Contracts currently in force of each of the Selling Group Companies, or
to which each of the Selling Group Companies are bound, described below: </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
Contracts under which any of the Selling Group Companies licenses or purchases any
Transferred  Intellectual Property from any third party (other than license agreements
 relating to third party  off-the-shelf  software that are available to Purchaser with no
additional cost or liability) whether or not such agreement involves any remaining
obligations or liabilities of either party; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(2) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Contracts under the terms of which the Selling Group Companies:  (A) are likely to pay or
otherwise give  consideration of more than US$100,000 in the aggregate  during any
calendar year or (B) are likely to pay or otherwise  give  consideration  of more than
 US$200,000 in the aggregate over the remaining term of such Contract; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(3) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
all research and development,  broker, distributor,  dealer, manufacturer's
 representative,  franchise, agency, market research and marketing Contracts and, (ii)
all sales promotion, consulting and advertising Contracts -that are in excess of $100,000
per year; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(4) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
management  Contracts and Consulting  Agreements (or similar  Contracts)  which are not
cancelable by the Selling Group Companies on notice of 90 days or less without penalty; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(5) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
all third party Indebtedness,  Liabilities and commitments of others as to which any of
the Selling Group Companies is a guarantor, endorser,  co-maker,  surety,  or
 accommodation  maker, or is contingently  liable  therefor,  (ii) all  letters of
credit,  whether stand-by or documentary,  issued by the Selling  Group  Companies or any
third party on behalf of Selling  Group  Companies  and  (iii) all  other  Contracts
relating to Indebtedness of the Selling Group Companies which value is in excess of
$50,000 </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(6) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Contracts,  including,  without  limitation,  any Company  Benefit Plan, any of the
benefits of which will be increased or otherwise modified,  or the  vesting,  funding or
 delivery  of  benefits  of which  will be  accelerated,  by the  occurrence  of any of
the  transactions contemplated  by this  Agreement  (either  alone or in  conjunction
 with any other  event) or the value of any of the  benefits of which will be calculated
on the basis of any of the transactions contemplated by this Agreement; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Contracts of indemnification  and all guaranties other than (i) any Contract of
indemnification  entered into in connection with the sale or license of products or
services in the  ordinary  course of business or (ii) the  licensing of real  property in
the  ordinary  course of business (iii) Officers and Directors Indemnification or (iv)
any Indemnification and Guaranty relating to Excluded Liabilities; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(8) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Contracts with any Governmental Authority; </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>14</font></p>
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<page>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(9) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Contracts containing any provision, penalty or covenant that has the effect of
prohibiting,  impairing,  limiting or restricting, or purporting  to prohibit,  impair,
 limit or restrict,  the ability of any of the Selling  Group  Companies to (i) sell or
license any products or services of or to any other person,  (ii) engage in any line of
business,  (iii) compete  with or to obtain  products or services from any person or
limiting the ability of any person to provide  products or services to any of the Selling
Group  Companies in each case in any geographic area or during any period of time, (iv)
grant any distribution or licensing rights or (v) acquire any property, assets or
business; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(10) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Contracts  relating to (i) the  disposition or acquisition by any of the Selling Group
 Companies of any Acquired Assets or pursuant to which any of the Selling  Group
 Companies  has any  ownership  interest in any  corporation,  partnership,  joint
 venture or other  business enterprise  other than a Company  Subsidiary or (ii) a
 capital  expenditure  or  expenditures  that has not been  completed  with respect to
the Business and in excess of $100,000; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(11) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Contracts relating to the ownership or lease of real property (whether as lessor or
lessee),  used or operated by any of the Selling Group Companies; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(12) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
all Contracts to license any third party to  manufacture or reproduce any of the Selling
Group  Companies'  products,  services,  or technology,  and (ii) all  Contracts to sell
or  distribute  any of the Selling Group  Companies'  products,  services or technology
in excess of $100,000 individually; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(13) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Contracts to provide source code to any third party for any product or technology; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(14) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
 Contracts  for the license,  sale or  distribution  of the Selling Group  Companies'
 Products not yet fully paid,  which include a "dongle" or similar provision allowing the
respective  Selling Group Company to shut-down the operation of such Product in certain
 circumstances by remote access; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(15) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
settlement  agreements and similar  Contracts under which any of the Selling Group
 Companies have ongoing  obligations in excess of $100,000 per year; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(16) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
shareholder  agreements,  voting  agreements,  buy-sell  agreements,  and other Contracts
 granting any party any rights to exercise control over any  the Acquired Subsidiaries'
capital stock; and </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(17) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
other Acquired Contracts,  whether or not made in the ordinary course of business, which
are material to the conduct of the Business or the absence of which Contract could
reasonably be expected to have a Material Adverse Effect. </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>15</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Acquired Contract set forth in Section 3.7 of the Company's Disclosure Schedule: (i)
is valid and binding on any of the Selling Group Companies party thereto and to
the Company's Knowledge the other parties thereto, and is in full force and effect
except for the Contract listed on <U>Section 3.2(c) of the Company Disclosure
Schedule</U> and (ii) upon consummation of the Transaction and receipt of any
required Consents, shall continue in full force and effect without penalty or
other adverse consequence to the Buyers or the Acquired Subsidiaries. Neither the
Company nor any Company Subsidiary is in breach of, or default under, any Acquired
Contract or any other Contract set forth in Section 3.7 of the Company's
Disclosure Schedule which may have any effect on the Business or the Acquired Assets
other than as specifically set forth in <U>Section 3.7(b) of the Company's Disclosure
Schedule</U> or with respect to trade payables that are not more than 63 days overdue,
nor is there any existing default or event of default or event which with notice or
lapse of time, action by any third party, or combination thereof, would
constitute a default by any of the Selling Group Companies under any such Contract. As
of the date hereof, neither the Company nor any Company Subsidiary has received
any written notice, and otherwise has no Knowledge, of a default (which has not
been cured), offset or counterclaim under any Acquired Contract or any other Contract
set forth in Section 3.7 of the Company's Disclosure Schedule which may have any
effect on the Business or the Acquired Assets, or any other written communication
calling upon it to comply with any provision of such Contract or asserting
noncompliance therewith or asserting that the Selling Group Companies have
waived or altered their rights thereunder, nor have any of the Selling Group Companies
received any written notice, and otherwise has no Knowledge, that any party to
any such Contract intends or is threatening to terminate or fail to exercise any renewal
or extension of any such Contract or is otherwise in breach or default thereunder. </FONT> </P></TD>
</TR>
</TABLE>
<BR>


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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
of the Contracts listed on <U>Section 3.7 of the Company's Disclosure Schedule</U> has been
provided (or made available) to the Buyers. </FONT> </P></TD>
</TR>
</TABLE>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Suppliers
and Customers.</U>  </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section
3.8(a) of the Company Disclosure Schedule</U> contains a list of the Selling Group
Companies&#146; 10 largest customers and the sales to such customers with respect to the
Business during the twelve-month period ended December 31, 2006. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section
3.8(b) of the Company Disclosure Schedule</U> contains a list of the Selling Group
Companies' ten largest suppliers and the amount purchased by the Selling Group
Company from such suppliers during the twelve-month period ended December 31, 2006. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Title
to Property; Leased Property.</U> </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company and each Company Subsidiary has good title to, or in the case of leased
properties and assets, valid leasehold interests in, the Acquired Assets, free and clear
of all Liens, and the Acquired Subsidiaries have good title to, or in the case of leased
properties and assets, valid leasehold interests in, all their properties and assets;
except for: (i) Liens reflected in the balance sheet of the Company, dated as of December&nbsp;31,
2006, included in the Financial Statements; (ii) Liens imposed by Law, such as carriers&#146;,
warehouseman&#146;s, mechanics&#146;, material men&#146;s, landlords&#146;, laborers&#146;,
suppliers&#146;, construction and vendors&#146; liens, incurred in good faith in the
ordinary course of business and securing obligations which are not yet due or which are
being contested in good faith by appropriate proceedings as to which the Company has, to
the extent required by GAAP, set aside on its books adequate reserves; (iii) Liens for
Taxes either not yet due and payable or which are being contested in good faith by
appropriate legal or administrative proceedings; (iv) with respect to leasehold
interests, liens incurred, created, assumed or permitted to exist and arising by, through
or under a landlord or owner of the leased property, with or without consent of the
lessee, none of which impairs the use of any parcel of property material to the operation
of the business of the Company or the value of such property for the purpose of such
business; and (v) any Liens arising in the ordinary course of business which do not
interfere with the present use of the property affected thereby (collectively, &#147;<U>Permitted
Liens</U>&#148;).  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>16</font></p>
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<page>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
leases pursuant to which the Company or any Company Subsidiary leases from others real
or personal property (collectively, the "<U>Company Leases</U>") are valid, binding
and enforceable on the Selling Group Company in accordance with their respective terms
and in full force and effect, no amounts (other than immaterial amounts the
failure of which to pay would not be material) payable under any Company Lease are
more than 60 days past due, and there is not, under any of such leases, any existing
default or event of default of the Company or any Company Subsidiary or, to the
Knowledge of the Company, any other party. </FONT> </P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section
3.9(c) of the Company Disclosure Schedule</U> sets forth each of the Company real property
leases, as well as each real property owned by each of the Selling Group
Companies (the "<U>Owned Property</U>")true, correct and complete copies of which were
provided to the Buyer. Each of the properties specified in <U>Section 3.9(c) of the
Company Disclosure Schedule</U> (including any easements, rights of access, rights of
way or similar rights benefiting the properties) (i) is adequate and sufficient to
permit the continued use of such facility in the manner and for the purpose to
which it is presently devoted, and (ii) has adequate and sufficient access to and
from public areas. The Company Leases and the Owned Property (taking into
account all liens and third party rights related thereto, all zoning and other
restrictions applicable thereto, the condition, size and all other aspects
thereof) are in all respects suitable and adequate to support the operations of the
Selling Group Companies and for the purposes to which they are presently used. </FONT> </P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
major items of  equipment  of the Selling  Group  Companies  are in  sufficient
 operating  condition  and in a state of  reasonable       maintenance  and repair for
the  continued  conduct of the  Business  on a basis  consistent  with past  practice,
 ordinary  wear and tear       excepted, and are free from any known defects or Liens
(other than Permitted Liens). </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
is no condemnation,  expiration or other proceeding in eminent domain pending or to the
Company's Knowledge threatened,  affecting       any parcel of real estate  owned by the
Company  and  Acquired  Subsidiaries  or covered by the  Company  Leases or any portion
 thereof or       interest thereon. </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Acquired Assets include all assets, rights,  properties,  licenses and permits,
 contracts and other benefits that are necessary for       the Business as presently
 conducted  and,  other than Cash and the Acquired  Assets and the Excluded  Assets,
 there are no other  assets,       properties or rights owned, used, held, or licensed by
the Company or any of the Company  Subsidiaries which are necessary for the Business
      as presently conducted or as currently contemplated to be conducted. </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Except
as set forth in section 3.9(g) to the Company Disclosure Schedule</U>, at and as of the
Closing the Buyers shall have good, valid and marketable title to all of the
Acquired Assets, free and clear of any Liens and to the Knowledge of the Company, any
adverse claims by any Person, other than Permitted Liens, and the Buyers shall
have full right and power to the peaceful and quiet usage and possession rights of
the Acquired Assets so transferred as heretofore used by the Selling Group Companies. To
the Company's Knowledge, except as set forth in <U>Section 3.9(g) to the Company
Disclosure Schedule</U>, at and as of the Closing the Buyers shall be subject to no
limitations, obligations or restrictions with regard to the sale, license,
distribution or other transfer or exploitation of the Acquired Assets, in the
form transferred to it, except for any such limitation, obligations or restrictions that
are created by the Buyers or are derived from agreements to which it is a party,
including the Acquired Contracts or are otherwise applicable to the Buyers (otherwise
than as a result of the Transaction). </FONT> </P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>17</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
references to the Acquired Assets in this <U>Section 3.9</U> shall not include the Transferred
Intellectual Property. </FONT> </P></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;3.10 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Taxes</U>. </FONT> </P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Tax
Returns Filed; Taxes Paid</U>. Except as set forth in <U>Section 3.6(a) of the
Company Disclosure Schedule</U>, (i) all returns, declarations, claims for
refund, information returns and reports ("<U>Tax Returns</U>") of or with respect to any and
all taxes, charges, fees, levies, assessments, duties or other amounts payable
to any taxing authority or agency, including, without limitation, (x) income,
franchise, profits, gross receipts, minimum, alternative minimum, estimated,
ad valorem, value added, sales, use, service, real or personal (tangible and
intangible) property, environmental, capital stock, leasing, lease, user,
license, registration, payroll, withholding, disability, employment, social
security (or similar), workers compensation, unemployment compensation, utility,
severance, excise, stamp, windfall profits, transfer and gains taxes, (y)
customs, duties, imposts, charges, levies or other similar assessments of any
kind, and (z) interest, penalties and additions to tax imposed with respect
thereto (all the above "<U>Tax</U>" or "<U>Taxes</U>") which are required to be filed on or
before the Closing by or with respect to the Acquired Subsidiaries have been or will be
duly and timely filed, (ii) all items of income, gain, loss, deduction and
credit or other items required to be included in each such Tax Return have been or
will be so included and all such information and any other information provided
in each such Tax Return is true, correct and complete, (iii) all Taxes owed by
any of the Acquired Subsidiaries which have become or will become due have been or
will be timely paid in full, (iv) all Tax withholding and deposit requirements
imposed on or with respect to any of the Acquired Subsidiaries have been or will be
satisfied in full in all respects, (v) no penalty, interest or other charge is
or will become due with respect to the late filing of any such Tax Return or late
payment of any such Tax, and (vi) there are no Liens on any of the assets of the Company
or any Company Subsidiary that arose in connection with any failure (or alleged
failure) to pay any Tax other than Permitted Liens. </FONT> </P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Open
and Closed Returns Disclosed.</U> &nbsp;&nbsp; <U>Section 3.6(b) of the Company Disclosure Schedule</U> lists all income Tax Returns (excluding information returns) filed with
respect to any of the Acquired Subsidiaries for the three taxable years ending prior to
the date hereof, indicates those Tax Returns that have been audited, indicates
those Tax Returns that are currently the subject of audit, and indicates those
Tax Returns whose audits have been closed. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Extensions
Disclosed</U>. Except as set forth in <U>Section 3.6(c) of the Company Disclosure Schedule</U>,
there is not in force any extension of time with respect to the due date for the
filing of any Tax Return of or with respect to any of the Acquired Subsidiaries or any
waiver or agreement for any extension of time for the assessment or payment of any
Tax of or with respect to any of the Acquired Subsidiaries. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>18</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Claims
Disclosed</U>. There is no outstanding written claim from any taxing authority against
any of the Acquired Subsidiaries for any Taxes, and no assessment, deficiency
or adjustment has been asserted, proposed or threatened in writing by any taxing
authority with respect to any Tax Return of or with respect to any of the
Acquired Subsidiaries with respect to any period for which the statute of
limitations on the assessment of Tax deficiencies has not expired other than
those disclosed (and to which are attached true and complete copies of all audit or
similar reports) in <U>Section 3.6(d) of the Company Disclosure Schedule</U>. No written
claim has ever been made by a taxing authority in a jurisdiction where any of the
Acquired Subsidiaries do not file Tax Returns that any of the Acquired Subsidiaries is
or may be subject to taxation in that jurisdiction and, to the best Knowledge of
the Company, there is no such jurisdiction that could properly make such a claim. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Scheduled
Tax Liabilities Sufficient</U>. The total amounts set up as Liabilities for current
and deferred Taxes in the Financial Statements of each Acquired Subsidiary are
sufficient to cover the payment of all Taxes, whether or not assessed or disputed,
which are, or are hereafter found to be, or to have been, due by or with respect
to any of the Acquired Subsidiaries up to and through the periods covered thereby. </FONT> </P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Tax
Allocation Agreements</U>. The Acquired Subsidiaries are not a party to and are not bound by
any Tax allocation or sharing agreement. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Change
of Accounting Method</U>. None of the Acquired Subsidiaries will be required to include any
amount in income for any taxable period beginning after the Closing Date as a
result of a change in accounting method for any taxable period ending on or before the
Closing Date or pursuant to any agreement with any taxing authority with respect to
any such taxable period. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Partnerships</U>.
Except as set forth in <U>Section 3.6(h) of the Company Disclosure Schedule</U>, none of
the property of any of the Acquired Subsidiaries is held in an arrangement that is
classified as a partnership for Tax purposes, and as of immediately prior to the
Closing, none of the Acquired Subsidiaries will own any interest in any other
entity or Person and do not have any joint or several Tax Liability from any
affiliation with any other entity Person. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Business
Attributes</U>. <U>Section 3.6(i) of the Company Disclosure Schedule</U> sets forth the following
information with respect to each of the Acquired Subsidiaries as of the most
recent practicable date: (i) the basis of each of the Acquired Subsidiaries in their
assets, with depreciable property combined and grouped according to class
lives; and (ii) the amount of any net operating loss, net capital loss, unused
investment or other credit, unused non-U.S. Tax, or excess charitable contribution
allocable to each of the Acquired Subsidiaries. </FONT> </P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(j) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Activity
Limitations</U>. None of the Acquired Subsidiaries has entered into any agreement or
arrangement with any taxing authority that requires it to take any action or to
refrain from taking any action. </FONT> </P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(k) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>United
States Real Property Holding Corporation</U>. None of the Acquired Subsidiaries has
been a United States real property holding corporation within the meaning of
section 897(c)(2) of the Code since the incorporation. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>19</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(l) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Tax
Incentives</U>. <U>Section 3.6(l) of the Company Disclosure Schedule</U>, lists each Tax
incentive granted to each of the Company, the Selling Subsidiaries and the
Acquired Subsidiaries under the laws of the State of Israel or under any other
applicable Laws, the period for which such Tax incentive applies, and the nature of
such tax incentive. Each of the Company, the Selling Subsidiaries and the Acquired
Subsidiaries has complied with all requirements of Israeli law (or other
applicable Laws) to be entitled to claim all such incentives. Subject to the
receipt of the approvals set forth in <U>Section 3.2(b) of the Company Disclosure
Schedule</U>, the consummation of the Transaction will not adversely affect the
remaining duration of the incentive or require any recapture of any previously
claimed incentive, and no consent or approval of any Governmental Authority is
required, other than as contemplated by <U>Section 3.2(b) of the Company
Disclosure Schedule</U>, prior to the consummation of the Transaction in order to
transfer to and preserve the entitlement of the Buyers to any such incentive. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(m) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Approved
Enterprise</U>. Except as set forth in <U>Section 3.10(m) of the Company Disclosure
Schedule</U>, the Company is qualified by the Investment Center as an "Approved
Enterprise" (an "<U>Approved Enterprise</U>") within the definition of the Law for the
Encouragement of Capital Investments (1959), as amended, all of the Company's
income derived from the Approved Enterprise has qualified, qualifies and is expected
to continue to qualify (assuming no changes to the current operation of the
Business) for the reduced Tax rates applicable to Approved Enterprises, in
accordance with their respective terms, and its research and development activities as
currently conducted outside of Israel have not, will not and are not expected to
cause the Company to lose its qualification as an Approved Enterprise or cause any of
the Company's income derived from the Approved Enterprise to fail to be
eligible for the reduced Tax rates applicable to Approved Enterprises. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(n) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Transfer
Pricing</U>. The Company, the Selling Subsidiaries and the Acquired Subsidiaries are in
compliance with all material transfer pricing requirements in all jurisdictions in
which the Company, the Selling Subsidiaries and the Acquired Subsidiaries do business.
None of the transactions between the Selling Group Companies on the one hand, and
the Acquired Subsidiaries on the other hand would reasonably be expected to be
subject to adjustment, apportionment, allocation or recharacterization under Section 482
of the Code or any similar U.S. state or local or non-U.S. Law, and all of such
transactions have been effected on an arm's length basis. The Company has made
available to Buyer all intercompany Contracts to which the Acquired Subsidiaries
are a party relating to transfer pricing. </FONT> </P></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;3.11 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Intellectual
Property</U>. </FONT> </P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section
3.11(a) of the Company Disclosure Schedule</U> lists all the Transferred Intellectual
Property (including but not limited to registration numbers, application
serial numbers) as well as any and all outstanding proceedings or actions before any
court, tribunal (including the PTO or equivalent authority anywhere in the world)
related to any of the Transferred Intellectual Property. To the extent any of
the Transferred Intellectual Property are not registered or the subject of an
application to register, they shall be identified as accurately and concisely as
reasonable under the circumstances. For all Transferred Intellectual Property listed on
<U>Section 3.11(a) of the Company Disclosure Schedule</U>, the Schedule identifies the
Company or Company Subsidiary that is the owner, to the extent applicable. </FONT> </P></TD>
</TR>
</TABLE>
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<p align=center>
<font size=2>20</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in <U>Section 3.11(b) of the Company Disclosure Schedule</U>, to the
Company's Knowledge there are, no facts or circumstances that would render any
of the Transferred Intellectual Property invalid or unenforceable. Without limiting the
foregoing, the Company knows of no information, materials, facts, or
circumstances, including any information or fact that would constitute prior art,
that would render any of the Transferred Intellectual Property invalid or
unenforceable, or would adversely affect any pending application to register any
of the Transferred Intellectual Property and the Company has not knowingly
misrepresented, or knowingly failed to disclose, any facts or circumstances
in any application for any the Transferred Intellectual Property that would constitute
fraud or a misrepresentation with respect to such application or registration or
that would otherwise affect the validity or enforceability of any of the
Transferred Intellectual Property. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in <U>Section 3.11(c) of the Company Disclosure Schedule</U>, (i) each of the
Transferred Intellectual Property, including all the Company Registered
Intellectual Property Rights, is free and clear of any third-party interests
including any Liens, (ii) the Selling Group Companies are the exclusive owners
or exclusive licensees of all the Transferred Intellectual Property (including all
improvements, derivative works and the like) except with regard to Incorporated
Open Source Software (as defined herein), (iii) the Selling Group Companies
have obtained (by agreement or operation of law) a valid and enforceable assignment
sufficient to irrevocably transfer all Transferred Intellectual Property
(including the right to seek past and future damages with respect thereto) from third
parties for all Intellectual Property developed or owned by those third parties
and which currently is or is currently planned by the Selling Group Companies to
be, used, required or needed in the conduct of the Selling Group Companies' Business,
(iv) the Selling Group Companies do not license any of the Transferred
Intellectual Property to third parties, or permit third parties to use any of the
Transferred Intellectual Property, on terms other than substantially standard
payment and other terms which it offers to all third parties, and (v) none of
the Selling Group Companies owes any royalties or payments to any third party for
using or licensing to others any of the Transferred Intellectual Property. </FONT> </P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in <U>Section 3.11(d) of the Company Disclosure Schedule</U>, the Transferred
Intellectual Property, constitutes all of the Intellectual Property used in or
necessary to the conduct of the Business of the Selling Group Companies as it has been,
currently is and currently planned to be conducted, including, without
limitation, the design, development, manufacture, use, import and sale of
Products, Transferred Technology and services (including products, technology
or services currently under development) of the Selling Group Companies. </FONT> </P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has made available to the Buyer or its counsel a copy of all Contracts to
which any of the Selling Group Companies is a party, a third-party beneficiary,
or otherwise bound by such Contract with respect to any Transferred Intellectual
Property. Except as set forth in <U>Section 3.11(e) of the Company Disclosure
Schedule</U>, (i) all such Contracts (a) are in full force and effect, (b) to the Company's
Knowledge are not the subject of any dispute regarding the rights and obligations
specified in such Contract, or performance under such Contract, and (c) are
freely assignable by the Selling Group Companies without the payment of any additional
amounts or consideration other than ongoing fees, royalties or payments which the
Selling Group Companies would otherwise be required to pay, (ii) the consummation
of the Transaction and the other transactions contemplated by this Agreement will
neither violate nor result in the alteration, amendment, breach, modification,
cancellation, termination or suspension of such Contracts, and (iii) neither the
Company, any Company Subsidiary nor any other party is in breach of or has failed,
to perform under, any such Contracts except for past due payments for less than 60
days and, to the Company's Knowledge, no other party to any such Contract is in
breach thereof or has failed to perform thereunder. </FONT> </P></TD>
</TR>
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<p align=center>
<font size=2>21</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in <U>Section 3.11(f) of the Company Disclosure Schedule</U>, the operation of the
Business of the Selling Group Companies as currently conducted or is currently
contemplated to be conducted by the Selling Group Companies, including but not
limited to the design, development, use, import, export, manufacture and sale of
the Products, Transferred Technology or services (including products, technology
or services currently under development) of the Selling Group Companies does not, and
will not when conducted by the Buyers in substantially the same manner following
the Closing, infringe or misappropriate any Intellectual Property Right of any third
party or constitute unfair competition or trade practices under the laws of any
jurisdiction in which the Company operates or distributes its products. Except
as set forth in <U>Section 3.11(f) of the Company Disclosure Schedule</U>, the Selling Group
Companies have not received written notice of, nor, to the Knowledge of the
Company, do any facts or circumstances exist that could reasonably be expected to
give rise to, any lawsuit, claim, demand, proceeding or investigation involving
matters of the type contemplated by the immediately preceding sentence. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
registrations for the Company Registered Intellectual Property Right are valid and
subsisting, and all necessary registration, maintenance and renewal fees in
connection with such Company Registered Intellectual Property Rights have been paid
and all reasonably necessary documents and certificates in connection with such
Company Registered Intellectual Property Rights have been filed with the
relevant patent, copyright, trademark or other authorities in the United States,
Israel and other jurisdictions, as the case may be, for the purposes of
maintaining such Company Registered Intellectual Property Rights except Registered
Intellectual Property Right which the Company has allowed to lapse in the
ordinary course of business. Except as set forth in <U>Section 3.11(g) of the Company
Disclosure Schedule</U>, there are no actions that must be taken by the Company
within 60 days of the Closing Date, including the payment of any
registration, maintenance or renewal fees or the filing of any responses to the
PTO, actions, documents, applications or certificates for the purposes of
maintaining, perfecting or preserving or renewing any the Company Registered Intellectual
Property Rights. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
than as set forth in <U>Section 3.11(h) of the Company Disclosure Schedule</U>, the Transferred
Intellectual Property does not include any open source, shareware, freeware
code or other freely available software that is subject to restrictions on use. <U>Section
3.11(h) of the Company Disclosure Schedule </U>lists all software or other material
that is or is required to be distributed as "freeware," "free software,"
"open source software" or under a similar licensing or distribution model
(including but not limited to any license which complies with the Open Source
Initiative Corporation's (OSI) open source definition or which is, or is equivalent
to, a license approved by OSI) that the Selling Group Companies use or license,
and identifies that which is incorporated into, combined with, or distributed in
conjunction with any Selling Group Companies' Products or services
("<U>Incorporated Open Source Software</U>") copies of which have been provided to the
Buyer. The Selling Group Companies' use and distribution of each component of
Incorporated Open Source Software complies with all material provisions of the
applicable license agreement, and in no case does such use or distribution give
rise under such license agreement to any rights in any third parties under any
Company Intellectual Property Rights or obligations for the Selling Group
Companies with respect to any Company Intellectual Property Rights, including
without limitation any obligation to disclose or distribute any such Intellectual
Property in source code form, to license any such Intellectual Property for the purpose
of making derivative works, or to distribute any such Intellectual Property without
charge. </FONT> </P></TD>
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<font size=2>22</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the Knowledge of the Company, no person is infringing or misappropriating any of the
Transferred Intellectual Property. </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Selling Group Companies have taken all commercially  reasonable steps to protect the
Selling Group Companies' rights in confidential       information  and trade  secrets of
the Selling  Group  Companies  or as  required by any other  person who has  provided
 its  confidential       information  or trade secrets to the Selling Group  Companies.
 All  personnel who are currently or formerly have been  employees,  agents,
      consultants  and  contractors of the Selling Group  Companies who have  contributed
to or participated in the conception and development of       all Intellectual  Property
for or on behalf of the Selling Group Companies have executed  nondisclosure  agreements
in form provided by the       Company to the Buyer and either  (i) have been a party to a
 "work-for-hire"  arrangement or agreements with the Selling Group Companies in
      accordance with applicable  national and state law that has accorded the Selling
Group Companies full,  exclusive and original ownership of       all  Intellectual
 Property Rights thereby arising,  or (ii) have  executed  appropriate  instruments of
assignment in favor or the Selling       Group  Companies as assignee that have conveyed
to the Selling Group  Companies,  effective,  and exclusive  ownership of all
 Intellectual       Property Rights thereby arising.  To the Company's  Knowledge,  none
of the Company's  officers or employees has entered into any agreement       relating to
the  prohibition or restriction of competition or  solicitation  of customers,  or any
other similar  restrictive  agreement or       covenant, with any Person which would
materially inhibit the performance of their duties in connection with the Company's
business. </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(k) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as disclosed in <U>Section 3.11(k) of the Company Disclosure Schedule</U>, neither the Company
nor any Company Subsidiary has taken any of the following actions: (i)
disclosing or providing access to the Company Source Code, except to employees and
consultants of the Selling Group Companies while bound by confidentiality
obligations to the Selling Group Companies; (ii) disclosing any of Selling Group
Companies' trade secrets to a third party without a commercially reasonable
appropriate non-disclosure agreement; (iii) providing access to the Transferred
Intellectual Property to a third party without restrictions on unauthorized copying,
unauthorized sale or transfer, recompilation, disassembly or reverse-engineering
and other industry-standard restrictions on use; or (iv) embedding, incorporating,
distributing or modifying third-party software, including open source software, or
other third-party material, other than as permitted by their respective licenses. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(l) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in <U>Section 3.11(l) of the Company Disclosure Schedule</U>, no event has
occurred, and no circumstance or condition exists, that (with or without notice
or lapse of time) will, or would reasonably be expected to, result in the disclosure or
delivery by Company or any Company Subsidiary or any other party acting on the
Company's or any Company Subsidiary's behalf to any third party of any Company
Source Code, except disclosure to escrow agents pursuant to escrow agent agreements
listed in <U>Section 3.11(l) of the Company Disclosure Schedule</U>. <U>Section 3.11(l) of
the Company Disclosure Schedule</U> sets forth each contract, agreement and instrument by
and between the Company, or any Company Subsidiary, and any escrow agents pursuant
to which Company or any Company Subsidiary has deposited, or is or may be required
to deposit, with an escrow holder or any other party, any Company Source Code ("<U>Company
Escrow Agreements</U>"). The execution of this Agreement and the consummation of the
Transaction or any of the other transactions contemplated by this Agreement, in and
of itself, will not result in the release from escrow of any Company Source Code.
The Company and the Company Subsidiaries are not currently in breach of any
Contract that would give rise to a third party having the right to release the Company
Source Code from escrow. Neither the Company nor any Company Subsidiary is in
breach of, nor have either failed to perform under, any Company Escrow Agreement. To
the Company's Knowledge, no other party to any such Company Escrow Agreement is in
breach thereof or has failed to perform thereunder. </FONT> </P></TD>
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<p align=center>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(m) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in <U>Section 3.11(m) of the Company Disclosure Schedule,</U> neither this
Agreement nor the transactions contemplated by this Agreement, including the
assignment to the Buyers, by operation of law or otherwise, of any Acquired Contracts
to which any of the Selling Group Companies is a party, will result in (i) the
Buyers granting to any third party any right to or with respect to any
Transferred Intellectual Property owned by, or licensed to, either of them, or
(ii) either the Buyers being bound by, or subject to, any non-compete or other
restriction on the operation or scope of their respective businesses. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(n) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section
3.11(n) of the Company Disclosure Schedule</U> lists all items of Transferred Intellectual
Property, in each case that is owned by the Company or a Company Subsidiary, as
of the date hereof which were developed with funding provided by or are subject to
restriction, constraint, control, supervision, or limitation imposed by any
Governmental Authority or quasi-Governmental Authority. Except as set forth in
<U>Section 3.11(n) of the Company Disclosure Schedule</U>, (i) other than restrictions
generally imposed by any Governmental Authority or quasi-Governmental Authority
on software companies subject to the applicable jurisdiction, all Transferred
Intellectual Property in each case that is owned by the Company or a Company
Subsidiary is freely transferable, conveyable, and assignable by Company and the Buyers
to any entity located in any jurisdiction in the world without any restriction,
constraint, control, supervision, or limitation that could be imposed by the OCS
(or any other Governmental Authority or quasi-Governmental Authority) and (ii)
other than restrictions generally imposed by any Governmental Authority or
quasi-Governmental Authority on software companies subject to the applicable
jurisdiction, no restriction, constraint, control, supervision, or
limitation whatsoever is currently imposed by the OCS (or any other Governmental
Authority or quasi-Governmental Authority) on the place, method and scope of
exploitation of any Transferred Intellectual Property owned by the Company or a
Company Subsidiary (including the operation of the Business as it is currently
conducted, including, without limitation, the design, development, use,
import, branding, advertising, promotion, marketing, manufacture and sale of
Transferred Intellectual Property and any Products, Transferred Technology a
services currently under development by Company or any Company Subsidiary). </FONT> </P></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.12 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Litigation</U>.
 Except to the extent set forth in <U>Section 3.12 of the Company Disclosure Schedule</U>,
there is no Action pending except those not in excess of $20,000 individually, or to the
Knowledge of the Company, threatened, against or affecting the Acquired Assets, the
Acquired Subsidiaries or any of the officers or directors of a Selling Group Company (in
their capacity as such), or before any Governmental Authority. All Actions disclosed (or
required to be disclosed) in <U>Section 3.12 of the Company Disclosure Schedule</U> have
been reserved for appropriately (in accordance with GAAP) on the Financial Statements. No
Governmental Authority has provided the Company with written notice challenging or
questioning the legal right of the Company to conduct the Business as conducted at that
time or as presently conducted.  </FONT></P>

<p align=center>
<font size=2>24</font></p>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;3.13 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Environmental,
Health and Safety Matters</U> </FONT> </P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in <U>Section 3.13(a) of the Company Disclosure Schedule</U> (i) the Selling
Group Companies are currently in compliance with, and have for the three (3) years
prior to the date hereof complied in all respects with, and have not received any
written notice or other communication asserting or alleging a violation of,
Environmental Laws or Environmental Orders in relation to the Business or the
Acquired Assets. The Selling Group Companies have not during the last three
years, in relation to the Business or Acquired Assets, generated, transported,
stored, used, managed, manufactured, sold, reclaimed, recycled or disposed of any
Hazardous Materials, or any product containing a Hazardous Material, except in
compliance with Environmental Laws, (ii) each of the Products and the manufacture,
processing, sale, distribution, import or export thereof is in compliance with
all applicable Laws of each jurisdiction in which such Product is or has been
manufactured, processed, sold, distributed, imported or exported whether by the
Selling Group Companies or otherwise, including, without limitation,
Environmental Laws and Laws which pertain to: electrical safety; energy
consumption of energy-using products or components; the presence (or absence) of
specified substances in electrical or electronic products, batteries or products
generally; labeling of product or product packaging as respects product content or as
respects health, safety or environmental effects or attributes or as respects
required end-of-life handling or disposition of products or product packaging; and
coverage under approved scheme for end-of-life collection and return of products or
of product packaging, (iii) each of the Chemical Products is, and for the three
(3) years prior to the date hereof has been, manufactured, processed, sold,
distributed, imported or exported whether by the Company or Company Subsidiaries
or otherwise in compliance with Chemical Control Laws and other Environmental Laws of
each jurisdiction in which such Chemical Product is currently or has been sold,
whether by the Company or Company Subsidiaries or otherwise on their behalf,
(iv) all Chemical Products and each and every chemical substance contained in such
Chemical Products may be lawfully manufactured, shipped and imported into each and
every Inventory Jurisdiction in accordance with Chemical Control Laws and other
Environmental Laws, (v) the Selling Group Companies have provided to the Buyers
for each and every Chemical Product a complete and accurate Material Safety Data Sheet
(MSDS) in accordance with applicable Laws of the United States or Safety Data
Sheet (SDS) prepared in accordance with applicable Laws of the European Union, (vi)
all of the Chemical Products are compliant with packaging or labeling requirements,
transportation restrictions, marketing or use restrictions, restrictions on
the presence of solvents or volatile organic chemicals or other restrictions on its
chemical content under Chemical Control Laws or other Environmental Laws, except
as indicated on the MSDS or SDS, as applicable, provided by the Company or Company
Subsidiaries to the Buyers. </FONT> </P></TD>
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<p align=center>
<font size=2>25</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in <U>Section 3.13(b) of the Company Disclosure Schedule</U>, neither the Company
or Company Subsidiaries, the Business nor the Acquired Assets is subject to any
existing, pending or, to the Knowledge of the Company, threatened, and the Selling
Group Companies have not caused or taken any action during the last three years
that could reasonably be expected to result in, Liability under or relating to
Environmental Laws or Environmental Orders (including without limitation
Liabilities arising out of the manufacture, processing, distribution, use or
sale of any Products) in relation to the Business or Acquired Assets. Without limiting
the generality of the foregoing: (i) to the Company's Knowledge, neither the
Business or Acquired Assets, nor the Selling Group Companies in relation to the
Business or Acquired Assets, is related to or subject to any investigation or evaluation
by any Governmental Entity as to whether any Remedial Action is needed to respond
to a Release or threatened Release of any Hazardous Materials, (ii) the Selling Group
Companies have no Knowledge of any fact or circumstance that could reasonably be
expected to: involve the Business or Acquired Assets in any litigation or impose
any Liability under or relating to Environmental Laws or Environmental Orders (including
without limitation Liabilities arising out of the manufacture, processing,
distribution, use or sale of any Products), (iii) during the last three years the
Selling Group Companies have filed all notices required under any Environmental
Law indicating a past or present use, management, handling, transport,
recycling, reclamation, treatment, generation, storage or Release of Hazardous
Materials in relation to the Business or Acquired Assets, (iv) there is not now,
and there was not previously, at, on, in or under any of the Acquired Assets: (A) any
underground or above ground storage tank, surface impoundment, lagoon or other
containment facility (past or present) for the temporary or permanent storage,
treatment or disposal of Hazardous Materials (B) any landfill or solid waste
disposal area, (C) any asbestos-containing material except in compliance with
Environmental Law, or (D) any Release of Hazardous Materials which has not been fully
remediated in accordance with Environmental Laws, (v) with the exception of
validly issued Environmental Permits and obligations assumed in the ordinary course
of business, neither the Company or Company Subsidiaries with respect to the
Business and the Acquired Assets, or the Business or the Acquired Assets is
subject to any Environmental Order from, or contractual or other obligation with, any
Governmental Entity or other person in respect of which Loss may be incurred
under or in relation to Environmental Laws, (vi) no event, and no action or failure to
act by the Company or Company Subsidiaries has occurred with respect to the
Business or the Acquired Assets that has resulted in exposure of the Selling Group
Company Employees or any third parties to any amount of any Hazardous Material that may
now or in the future constitute a threat to human health or the environment or
subject the Business, the Acquired Assets or the Buyers to Liability. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Selling Group Companies (i) currently hold all Environmental Permits necessary for
the conduct or operation of the Business and the Acquired Assets (including for the
avoidance of doubt those which relate to the generation, transportation, manufacture,
disposal of, or sale of any product containing, a Hazardous Material) as such
Business and Acquired Assets are currently being conducted and operated, (ii) in
relation to the Business or the Acquired Assets, are currently in compliance and have
not received any written notice or other communication asserting or alleging a
violation with respect to, all Environmental Permits, and to the Knowledge of the
Company or the Company's environmental, health or safety personnel there are no
facts or circumstances reasonably likely to result in the revocation, suspension
or revision of any Environmental Permits, and (iii) <U>Section 3.13(c) of the Company
Disclosure Schedule</U> contains a list of all Environmental Permits necessary for
the conduct or operation of the Business and the Acquired Assets, as currently conducted
and operated, and identifies all Environmental Permits that are required to be
transferred or reissued, or that are otherwise prohibited from being
transferred or reissued, as a result of the transactions contemplated by this
Agreement. </FONT> </P></TD>
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<p align=center>
<font size=2>26</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in <U>Section 3.13(d) of the Company Disclosure Schedule</U>, (i) the Company
has disclosed and made available to the Buyers all information, including
without limitation all studies, analyses, audits, assessments, reports, data and test
results, in its possession, custody or control relating to (A) the environmental
conditions at, on, in, under or about the Acquired Assets, and (B) Hazardous
Materials used, managed, handled, transported, treated, generated, stored or
Released in relation to the Business or the Acquired Assets at any time, and (ii)
to the Company's Knowledge, there are no Environmental Laws or Environmental Orders
applicable to the Business or the Acquired Assets that would require the Company or
Company Subsidiaries, the Buyer or any other party to provide notice to, to take
actions to satisfy, or to obtain the approval of, any Governmental Entity as a
condition to the consummation of the transactions contemplated by this
Agreement. The Selling Group Companies have complied with all disclosure
obligations imposed by Environmental Laws with respect to the transactions
contemplated by this Agreement. </FONT> </P></TD>
</TR>
</TABLE>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;3.14 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with Other Laws; Permits</U>. </FONT> </P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in the Financial Statements or in <U>Section 3.14 of the Company Disclosure
Schedule</U>, none of the Company, the Selling Subsidiaries or the Acquired
Subsidiaries are in violation of or in default with respect to, or in alleged violation
of or alleged default with respect to, any applicable law or any applicable rule,
regulation, or any writ or decree of any Governmental Authority, or delinquent
with respect to any report required to be filed with any Governmental Authority. </FONT> </P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
of the Selling Group Companies holds all permits, licenses, variances, exemptions,
orders and approvals and other authorizations from Governmental Authorities
which are required for the operation of the Business (including the Acquired Assets) of
the Selling Group Companies taken as a whole (collectively, the "<U>Company
Permits</U>"). Each of the Selling Group Companies has been and is in compliance in all
material respects with the terms of the Company Permits and any conditions
placed thereon. The Company does not know of any reason it would not be able to
renew any of the Company Permits required to operate or use any of the Selling Group
Companies' assets for their current purposes and uses. There are no permits,
licenses, variances, exemptions, orders or approvals or other authorizations from
Governmental Authorities held by the Selling Group Companies, or required for
the Selling Group Companies' business in any material respect, that are
required to be transferred or reissued, or that are otherwise prohibited from being
transferred or reissued, as a result of the transactions contemplated by this
Agreement. </FONT> </P></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.15 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Brokers</U>.
 Except as set forth in <U>Section 3.15 of the Company Disclosure Schedule</U>, no
broker, finder, investment banker, or any other third party is entitled to any brokerage,
finder&#146;s or other fee or commission in connection with the transactions contemplated
by this Agreement or the Transaction Documents based upon arrangements made by or on
behalf of the Company or Selling Group Companies.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;3.16 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Employment
Matters.</U> </FONT> </P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section
3.16(a) of the Company Disclosure Schedule</U> contains (i) a complete list of the Selling
Group Company Employees, stating for each Selling Group Company Employee the
identity of the Selling Group Company employing such employee and (ii) a true and
complete list of all remuneration payable and other compensation and benefits
provided which the Selling Group Companies or any Company ERISA Affiliate (as
defined below) is bound to provide (whether at present or in the future) to each
such employee, or any Person connected with any such employee, and includes,
if any, particulars of all profit sharing, equity compensation, incentive and bonus
arrangements to which the Selling Group Companies are a party, whether legally
binding or not. Unless set forth opposite such employee's name in <U>Section 3.16(a) of
the Company Disclosure Schedule</U>, all of the Selling Group Company Employees are
"at will" employees subject to termination upon up to one (1) month prior written
notice under the termination notice provisions included in their Employment Agreements or
applicable Law. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the purposes of this Agreement, "<U>Company Benefit Plan</U>" means each deferred
compensation and each bonus or other incentive compensation, stock purchase,
stock option and other equity compensation plan, program, agreement or broad-based
arrangement; each severance or termination pay, medical, surgical,
hospitalization, life insurance and other "welfare" plan, fund or program (within the
meaning of section 3(1) of the Employee Retirement Income Security Act of 1974,
as amended ("<U>ERISA</U>"), whether or not subject to ERISA); each profit-sharing,
stock bonus or other "pension" plan, insurance plans, education fund, provident fund or
other similar fund or program (within the meaning of section 3(2) of ERISA,
whether or not subject to ERISA); and each other employee benefit plan, fund,
program, agreement or broad-based arrangement, in each case, that is sponsored,
maintained or contributed to or required to be contributed to or entered into by
the Company or a Company Subsidiary or by any trade or business, whether or not
incorporated ("<U>Company ERISA Affiliate</U>"), that together with the Company would
be deemed a "single employer" within the meaning of section 4001(b) of ERISA, or to
which the Company, a Company Subsidiary or a Company ERISA Affiliate is party,
whether written or oral, for the benefit of any employee or former employee of the
Company or any Company Subsidiary. </FONT> </P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section
3.16(c) of the Company Disclosure Schedule</U> contains an accurate and complete list of
each Company Benefit Plan. The Company has made available to the Buyer (i) correct
and complete copies of all documents embodying each Company Benefit Plan and each
form of Employment Agreement and all related trust documents, (ii) the three (3)
most recent annual reports (Form Series 5500 and all schedules and financial
statements attached thereto), if any, required under ERISA or the Code in
connection with each Company Benefit Plan, (iii) if the Company Benefit Plan is
funded, the most recent annual and periodic accounting of Company Benefit Plan assets,
(iv) the most recent summary plan description together with the summary(ies)
of material modifications thereto, if any, required under ERISA with respect
to each Company Benefit Plan, (v) all material correspondence to or from any
governmental agency relating to any Company Benefit Plan (vi) all policies
pertaining to fiduciary liability insurance covering the fiduciaries for each
Company Benefit Plan, (vii) all discrimination tests for each Company Benefit
Plan for the three (3) most recent plan years, (viii) the most recent IRS determination
or opinion letter issued with respect to each Company Benefit Plan, and (ix) visa
and work permit information with respect to current Selling Group Company
Employees. Except as provided in <U>Section 3.16(c) of the Company Disclosure Schedule</U>,
none of the Selling Group Companies nor any Company ERISA Affiliate has any plan
or commitment to establish any new Company Benefit Plan or Employment Agreement, to
modify any Company Benefit Plan or Employment Agreement (except to the extent
required by Law or to conform any such Company Benefit Plan or Employment
Agreement to the requirements of any applicable Law, in each case as previously
disclosed to the Buyer in writing, or as required by this Agreement), or to adopt
or enter into any Company Benefit Plan or Employment Agreement. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
of the Selling Group Companies and the Company ERISA Affiliates has performed in all
material respects all obligations required to be performed by them under each
Company Benefit Plan, and each Company Benefit Plan has been established and
maintained in all material respects in accordance with its terms and in material
compliance with all applicable laws, statutes, orders, rules and regulations,
including but not limited to ERISA or the Code. All the Company Benefit Plans that
are intended to be qualified under Section 401(a) of the Code have received
determination letters (or written opinions or advisory letters upon which the Selling
Group Companies, the Company or the Company ERISA Affiliates, as applicable, are
entitled to rely) from the IRS after January 1, 2000 to the effect that such Company
Benefit Plans are qualified and the plans and the trusts related thereto are
exempt from federal income taxes under Sections 401(a) and 501(a), respectively,
of the Code, no such determination letter (or written opinion or advisory letter as
above) has been revoked and, to the best Knowledge of the Company, revocation has
not been threatened, and no such Company Benefit Plan has been amended since the date of
its most recent determination letter or application therefor in any respect, and no
act or omission has occurred, that would reasonably be expected to result in the
loss of its qualification. No "prohibited transaction," within the meaning of
Section 4975 of the Code or Sections 406 and 407 of ERISA, and not otherwise
exempt under Section 408 of ERISA, has occurred with respect to any Company Benefit
Plan. None of the Selling Group Companies nor any Company ERISA Affiliate is
subject to any penalty or tax with respect to any Company Benefit Plan under
Section 502(i) of ERISA or Sections 4975 through 4980 of the Code. Each of the
Selling Group Companies and each Company ERISA Affiliate has timely made all
contributions and other payments required by and due under the terms of each Company
Benefit Plan. Except as set forth in <U>Section 3.16(d) of the Company Disclosure
Schedule</U>, there are no actions, suits or claims pending, or, to the best Knowledge
of the Company, threatened (other than routine claims for benefits) against any Company
Benefit Plan or against the assets of any Company Benefit Plan. Except to the
extent limited by applicable law, each Company Benefit Plan can be amended,
terminated or otherwise discontinued after the Closing Date in accordance with
its terms, without material liability to the Selling Group Companies or any
Company ERISA Affiliates (other than ordinary administration expenses). There are no
audits, inquiries or proceedings pending or, to the best Knowledge of Company or
any Company ERISA Affiliates, threatened by the IRS or other Governmental Authority
with respect to any Company Benefit Plan. No Company Benefit Plan has assets
that include securities issued by a Selling Group Company or a Company ERISA
Affiliate. Each Employment Agreement and Consulting Agreement has been operated
and administered in all material respects in accordance with its terms and
applicable Law. </FONT> </P></TD>
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</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None
of the Selling Group Companies nor any Company ERISA Affiliate has ever  maintained,
 established,  sponsored,  participated in, or       contributed to, any (i) Company
 Benefit Plan which is an "employee  pension benefit plan," within the meaning of Section
3(2) of ERISA and       is subject to  Title IV  of ERISA or  Section 412  of the Code,
 (ii) such  pension  plan  which is a  "multiemployer  plan," as defined in       Section
3(37) of ERISA,  (iii) "multiple employer plan" as defined in ERISA or the Code, or (iv)
a "funded welfare plan" within the meaning       of Section 419 of the Code.  No Company
Benefit Plan provides health benefits that are not fully insured through an insurance
contract. </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None
of the Selling Group  Companies  nor any Company  ERISA  Affiliate  has, in any material
 respect,  violated any of the health care       continuation  requirements  of the
COBRA,  the  requirements of the Family Medical Leave Act of 1993, as amended,  the
 requirements of the       Health  Insurance  Portability and  Accountability  Act of
1996, the  requirements of the Women's Health and Cancer Rights Act of 1998, the
      requirements of the Newborns' and Mothers' Health  Protection Act of 1996, or any
amendment to each such act, or any similar  provisions of       foreign and state laws
applicable to the Selling Group Company Employees. </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None
of the Selling  Group  Companies  nor any Company  ERISA  Affiliate  has violated
 Section 402  of the  Sarbanes-Oxley  Act and the       execution of this Agreement and
the consummation of the transactions  contemplated hereby will not, to the best Knowledge
of Company, cause       such a violation. </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
consummation of the transactions contemplated by this Agreement will not, either alone
or in combination with another event (other than, in the case of clauses (x) and
(y) below or the termination of employment of a Continuing Employee by the Buyers
following the Closing Date), (i) entitle any current or former employee, officer
or director of the Company or any Company Subsidiary to severance pay,
unemployment compensation or any other payment, (ii) accelerate the time of
payment or vesting, or increase the amount of compensation due to any such
employee, officer or director, except, in the case of clauses (i) and (ii) above, (x)
as required by applicable Law, (y) as set forth in <U>Section 3.16(h) of the Company
Disclosure Schedule</U> or (iii) result in the payment of any "excess parachute payment"
within the meaning of Section 280G of the Code (or any corresponding provision of
U.S. state or local Law). Other than the foregoing, there are no obligations of
the Company or any Company Subsidiary to make severance payments in amounts that are
materially greater than the amounts prescribed by applicable Law. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
are no pending,  or to the Company's  Knowledge  threatened  or  anticipated  claims by
or on behalf of any Company  Benefit Plan,       Employment  Agreement or Consulting
 Agreement,  by any employee or  beneficiary  covered under any such Company  Benefit
Plan,  Employment       Agreement or Consulting  Agreement,  or otherwise  involving any
such Company Benefit Plan,  Employment  Agreement or Consulting  Agreement       (other
than routine claims for benefits). </FONT></P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(j) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in <U>Section 3.16(j) of the Company's Disclosure Schedule</U> (i) the Company and
the Company Subsidiaries are, and have been at all times, in compliance with all
applicable federal, state and local Laws, rules and regulations (including without
limitation the National Labor Relations Act) as well as any national,
industry or company collective agreement, order or award, respecting
employment, pension and social security, employment practices, terms and
conditions of employment, wages and hours and workplace safety and are not engaged
in any unfair labor practices; (ii) the Selling Group Companies' obligations to provide
statutory severance pay to the Selling Group Company Employees pursuant to
severance Laws, including without limitation, under the Israeli Severance Pay Law
(5723-1963), are fully funded or accrued on the Company's Financial Statements as
of the date of such, and (iii) within the past two years there have not been nor
are there any pending administrative charges, arbitration proceedings, or lawsuits
brought by or on behalf of any current or former employee or group of current or
former employees against the Company or any of the Company Subsidiaries. Neither the
Company nor any Company Subsidiary is now, nor during the last two years has been,
the subject of any complaint, charge, or to the Company's Knowledge investigation,
audit, suit or other legal process with respect to any of its/their employees,
independent contractors or consultants by a Governmental Authority. None of the
employees of the Company or any Company Subsidiary (in their capacities as such) is,
or within the last two years has been, the subject of a representation petition
before the National Labor Relations Board or any other Governmental Authority. </FONT> </P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within
the past two years:  (i) no work stoppage or labor strike against the Company or any
Company Subsidiary has occurred,  is pending       or, to the  Knowledge of the Company,
 threatened;  (ii) neither  the Company nor any Company  Subsidiary  has had to their
 Knowledge  any       activities  or  proceedings  of any labor union to organize any
employees of the Company or any Company  Subsidiary;  and (iii) neither the       Company
nor any Company Subsidiary has been or is a party to, or bound by, any collective
bargaining agreement,  collective labor agreement       or other contract or arrangement
 with a labor union,  trade union or other  organization  or body, no collective
 bargaining  agreement is       being  negotiated by the Company or any Company
 Subsidiary,  and the Company has not recognized or received a demand for recognition
 from       any collective bargaining representative with respect to any of the Selling
Group Company Employees. </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(l) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
than as set forth on <U>Section 3.16(l) of the Company Disclosure Schedule</U>, (i) neither
the Company nor any Company Subsidiary engages any Business Employee whose
employment would require special licenses or permits and (ii) there are no unwritten
company policies or customs that, by extension, could entitle Selling Group
Company Employees to benefits in addition to what they are entitled by Law or
under the terms of employment agreements (including, by way of example but
without limitation, unwritten customs or practices concerning the payment of
statutory severance pay when it is not legally required). </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(m) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
individuals who are or were performing consulting or other services for the Business are
correctly classified by the Selling Group Companies as either "independent
contractors" or "employees," as the case may be, other than individuals working
through manpower companies. <U>Section 3.16(m) of the Company Disclosure Schedule</U> contains an accurate and complete list of each Consulting Agreement, stating the
identity of the Selling Group Company that has engaged such Consultant. The Company has
delivered to the Buyers correct and complete copies of all documents embodying
each Consulting Agreement, including all amendments thereto and all related trust
documents providing for annual payments in excess of $100,000. </FONT> </P></TD>
</TR>
</TABLE>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.17 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U> Product
Warranties</U>. (a) &nbsp;&nbsp;Each Product, including software, manufactured, sold, licensed,
leased, or delivered by each of the Selling Group Companies (or by a third party on their
behalf) has been in conformity with all applicable contractual commitments and all
express and implied warranties with respect to such Products, (b) except as set forth in
<U>Section 3.17 of the Company&#146;s Disclosure Schedule</U> none of the Company or the
Company Subsidiaries has any liability for replacement or repair thereof or other damages
in connection therewith, and (c) except as set forth in <U>Section 3.17 of the Company&#146;s
Disclosure Schedule</U> no Product manufactured, sold, licensed, leased, or delivered by
the Selling Group Companies (or by a third party on their behalf) is subject to any
guaranty, warranty, or other indemnity beyond the applicable standard terms and
conditions of sale, license, or lease or beyond that implied or imposed by applicable
Law, excluding with respect to (b) and (c) sales of the Products in the ordinary course.
Copies of the standard terms and conditions of sale, license, or lease for the Products
of the Selling Group Companies have been delivered to the Buyer.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.18 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Relationships
with Related Persons</U>. Except as set forth and identified in <U>Section 3.18 of the
Company Disclosure Schedule</U>, (i) there are no Contracts or other transactions between
any of the Selling Group Companies, on the one hand, and any director or executive
officer of any of the Selling Group Companies or any of their respective Affiliates, on
the other hand ; (ii) no Affiliate of any of the Selling Group Companies (other than the
Company or any Company Subsidiary) is a distributor, supplier, vendor, customer, client,
lessor, licensor, debtor, creditor, competitor or service provider to any of the Selling
Group Companies, (iii) no director or executive officer of any of the Selling Group
Companies or any of their respective Affiliates has any interest in any of the Acquired
Assets, and (iv) there are no other Contracts, transactions, arrangements or agreements
of the type relating to the Business, listed in Section 270 of the Israeli Companies Law
to which any of the Selling Group Companies is a party, other than, in any instance, with
respect to compensation paid to officers or directors of any of the Selling Group
Companies or indemnification agreement or insurance policies.  </FONT></P>

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<TD><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.19 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Grants,
Incentives and Subsidies Section 3.19 of the Company Disclosure Schedule</U> provides a
complete list of all grants, incentives and subsidies (collectively, &#147;<U>Grants</U>&#148;)
from the Government of the State of Israel or any agency thereof, or from any foreign
governmental or administrative agency, granted to any of the Selling Group Companies,
including, without limitation, (i) &#147;Approved Enterprise&#148; from the Investment
Center and (ii) grants from the OCS. The Company has delivered to the Buyer, prior to the
date hereof, correct copies of all letters of approval (and other correspondence that
evidences changes to the terms of such letters of approval) under which such Grants were
granted to the Selling Group Companies. <U>Section 3.19 of the Company Disclosure Schedule</U> details
all material undertakings of the Selling Group Companies given in connection with the
Grants. Without limiting the generality of the foregoing, <U>Section 3.19 of the Company
Disclosure Schedule</U> includes the aggregate amounts of each Grant, and the aggregate
outstanding obligations thereunder of each of the Selling Group Companies with respect to
royalties, or the outstanding amounts to be paid by the OCS to the Company or any Company
Subsidiary. Each of the Selling Group Companies is in compliance with the terms and
conditions of their respective Grants and, except as disclosed in <U>Section 3.19 of the
Company Disclosure Schedule</U> hereto, have duly fulfilled, all the undertakings
relating thereto required to be fulfilled prior to the date hereof. To the Knowledge of
the Company, the OCS does not intend to revoke or materially modify any of the Grants.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<font size=2>32</font></p>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.20 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Foreign
Corrupt Practices Act</U>. The Company (including any of its officers or directors)
has not taken or failed to take any action which would cause it to be in violation of the
Foreign Corrupt Practices Act of 1977, as amended, or any rules or regulations
thereunder. Neither the Company nor, to the Company&#146;s Knowledge, any third party
acting on behalf of the Company, has offered, paid, promised to pay, or authorized,
directly or indirectly, the giving of money or anything of value to any Official, or to
any other person while knowing or being aware of a high probability that all or a portion
of such money or thing of value will be offered, given or promised, directly or
indirectly, to any Official, for the purpose of: (i) influencing any act or decision of
such Official in his, her or its official capacity, including a decision to fail to
perform his, her or its official duties or functions; or (ii) inducing such Official to
use his, her or its influence with any Governmental Authority to affect or influence any
act or decision of such Governmental Authority, or to obtain an improper advantage in
order to assist the Company or any third party in obtaining or retaining business for or
with, or directing business to, Company. For purposes of this Agreement, an &#147;Official&#148; shall
include any appointed or elected official, any government employee, any political party,
party official, or candidate for political office, or any officer, director or employee
of any Governmental Entity.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.21 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Hedging
Transactions. </U>Except as set forth in <U>Section 3.21 of the Company Disclosure
Schedule</U>, no Selling Group Company has entered into any hedging transaction or
arrangement that are outstanding or in effect.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;3.22 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Receivables;
Bank Accounts.</U> </FONT> </P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
receivables of each of the Selling Group Companies  represent  valid third party
 obligations  arising       from third party sales  actually made or services  actually
 performed,  and are recognized as receivables in       accordance  with  GAAP.  None  of
the  Selling  Group  Companies  is  required  under  GAAP to  write-off  as
      uncollectible  any notes,  accounts  receivable or other assets,  except write-offs
in the ordinary course of       business  charged to applicable  reserves  (which
 reserves are adequate and  appropriate in amount) or which       are  immaterial  in
amount,  and, to the  Company's  Knowledge,  no facts or  circumstances  exist that could
      reasonably be expected to result in the Selling Group  Companies  becoming
 required  under GAAP to write-off       as uncollectible  any notes,  accounts
 receivable or other assets,  except write-offs in the ordinary course       charged to
applicable reserves or which, individually or in the aggregate, would be immaterial in
amount. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section
 3.22(b) of the Company  Disclosure  Schedule</U>  sets forth a complete and accurate  list
of (i) all       bank accounts,  investment accounts,  lock boxes and safe deposit boxes
maintained by or on behalf of each of       the Acquired Subsidiaries,  including the
location and account numbers of all such bank accounts,  investment       accounts,  lock
boxes and safe deposit  boxes,  (ii) the names of all Persons  authorized to take action
with       respect to such bank  accounts,  investment  accounts,  lock boxes and safe
deposit  boxes or who have access       thereto,  and (iii) the names of all Persons
 holding general or special powers of attorney from the Acquired       Subsidiaries. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.23 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Inventory</U>.
All Inventory of each of the Selling Group Companies used in the conduct of the
Business reflected on the Financial Statements or acquired since the date thereof was
acquired and has been maintained in the ordinary course of business; is of good and
merchantable quality; consists substantially of a quality, quantity and condition
useable, leasable or saleable in the ordinary course of business except as otherwise
reflected on the Financial Statements or as otherwise dealt with in the ordinary course
of business since then.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.24 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Insurance</U>. Each
of the Selling Group Companies has given timely notice to the insurer under each
insurance policy of all claims that may be insured thereby. Neither the Company nor any
Company Subsidiary has received any notice that any insurance policy is not in full force
and effect, and to the Knowledge of the Company there does not exist any event,
circumstance or condition (including the Transaction) that would cause (or would be
reasonably likely to cause) any such insurance policy not to be in full force and effect.
Neither the Company nor any Company Subsidiary has received during the past two years
from any insurance carrier to which it has applied for any insurance or with which it has
carried any insurance (i) any refusal of coverage or notice of limitation of coverage or
any notice that a defense will be afforded with reservation of rights or (ii) any notice
of cancellation or any other indication that any insurance policy is no longer in full
force or effect or will not be reviewed or that the issuer of any insurance policy is not
willing or able to perform its obligations thereunder. Except as set forth in <U>Section
3.24 of the Company&#146;s Disclosure Schedule</U> in the last two years to the Knowledge
of the Company no termination has been threatened with respect to, any of such policies.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.25 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Full
Disclosure</U>. None of the representations or warranties made by the Company (as
modified by the Company Disclosure Schedule) in this Agreement, and none of the
statements made in any exhibit, schedule or certificate furnished by the Company pursuant
to this Agreement contains, or will contain at the Closing Date, any untrue statement of
a material fact, or omits or will omit at the Closing Date to state any material fact
necessary in order to make the statements contained herein or therein, in the light of
the circumstances under which made, not misleading.  </FONT></P>

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<H1 ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 4.
REPRESENTATIONS AND WARRANTIES OF BUYERS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Buyer, on its behalf and on
behalf of the Additional Buyers, represents and warrants to the Company that each of the
statements contained in this <U>ARTICLE 4</U> (including any Schedules hereto) is true and
correct as of the date hereof and will be true and correct at and as of the Closing Date,
as follows: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Organization</U>.
Each of the Buyers is a corporation duly organized, validly existing and is in good
standing under the laws of the jurisdiction of its incorporation. Each of the Buyers has
all requisite corporate power and authority to carry on its business as it is currently
conducted and to own, lease and operate its properties where such properties are now
owned, leased or operated.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Authority</U>.
Each of the Buyers has all requisite corporate power and authority to execute and deliver
each Transaction Document delivered or to be delivered by the Buyers, as applicable, and
to perform all of its obligations hereunder and thereunder and to consummate the
transaction contemplated hereby. The execution, delivery and performance by each of the
Buyers of each Transaction Document delivered or to be delivered by the Buyers, as
applicable, and the consummation by the Buyers of the Transaction have been or will be
duly authorized by all necessary and proper action on the part of the Buyers,
respectively. This Agreement has been duly executed and delivered by each of the Buyers
and constitutes the legal, valid and binding obligation of each of the Buyers,
enforceable against them in accordance with its terms, except as such enforceability may
be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating
to or affecting the enforcement of creditors&#146; rights in general and by general
principles of equity. Each other Transaction Document to be delivered by each of the
Buyers will be duly executed and delivered by each of the Buyers and, when so executed
and delivered, will constitute the legal, valid and binding obligation of the Buyers,
enforceable against the Buyers in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws relating to or affecting the enforcement of creditors&#146; rights in
general and by general principles of equity.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Non-contravention</U>.
Subject to the receipt of all required regulatory, administrative and Governmental
Authorities and Consents, none of the execution, delivery or performance by the Buyers of
any Transaction Document or the consummation by the Buyers of the Transaction does or
will, with or without the giving of notice or the lapse of time or both, conflict with,
or result in a breach or violation of, or a default under (i) the respective
organizational documents of the Buyers, or (ii)&nbsp;any applicable Law.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;4.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Available
Funds.</U> The Buyer has available sufficient funds to enable it to consummate the
Transactions. </FONT> </P>

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<H1 ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 5. COVENANTS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conduct
of Business</U>. Except as contemplated by this Agreement or consented to by the Buyer in
writing (which consent shall not be unreasonably withheld or delayed), during the period
from the date hereof and continuing until the earlier of the termination of this
Agreement pursuant to its terms or the Closing Date, the Company shall, and shall cause
each Company Subsidiary to, carry on its business in the usual, regular and ordinary
course in substantially the same manner as heretofore conducted and in material
compliance with all applicable Laws, and with respect to incurring any expense, cost or
liability under the ordinary course of business, and use its commercially reasonable
efforts consistent with past practices and policies to (i) preserve intact its present
business organization, (ii) keep available the services of its present officers and
management level employees and (iii) preserve its relationships with customers,
suppliers, distributors, licensors, licensees, brokers, agents, creditors and others with
which it has material business dealings. Without limiting the generality of the
foregoing, except as contemplated by this Agreement, during the period from the date
hereof and continuing until the earlier of the termination of this Agreement pursuant to
its terms or the Closing Date, without the prior written consent of Buyer (which consent
shall not be unreasonably withheld or delayed), the Company shall not and shall not
permit any Company Subsidiary to (unless required by Law, in each case after consultation
with counsel and, to the extent reasonably feasible, prior written notification of at
least five (5) days to Buyer) do any of the following:  </FONT></P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;transfer
or license  exclusively to any Person or entity or otherwise  extend,  amend or modify
any rights       to the  Transferred  Intellectual  Property,  or enter  into any
 agreements  or make  other  commitments  or       arrangements  to grant,  transfer  or
license to any Person  future  rights to any  Transferred  Intellectual       Property,
 in each case other than entering into,  amending or modifying  licenses in the ordinary
 course of       business consistent with past practices; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;declare,
 set  aside  or pay any  dividends  on  (except  dividends  declared  or paid by a
 wholly  owned       subsidiary  of the Company to the Company or another  wholly  owned
 subsidiary  of the  Company) or make any       other  distributions  (whether in cash,
 stock,  equity  securities or property)  with respect to any capital       stock; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;purchase,
 redeem or  otherwise  acquire,  directly  or  indirectly,  any shares of  capital  stock
of the       Company or any Company Subsidiary except with respect to capitalization of
intercompany debt; </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>35</font></p>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issue,
 deliver,  sell,  authorize,  pledge or  otherwise  encumber or propose any of the
 foregoing  with       respect to any shares of stock of the  Acquired  Subsidiaries
 (other  than the  issuance  of shares on a pro       rata basis in connection with a
capitalization  of intercompany  debt) or any securities  convertible into or
      exercisable or  exchangeable  for shares of stock of the Acquired  Subsidiaries,
 or  subscriptions,  rights,       warrants  or options  to  acquire  any such  shares or
any  securities  convertible  into or  exercisable  or       exchangeable for such
shares,  or enter into other  agreements or commitments of any character  obligating it
      to issue any such shares or convertible securities; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cause,
permit or propose any amendments to the Formation Documents; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
 acquire or agree to acquire  any equity  interest  in or a portion of the assets or
 property  of any       Person or  division  thereof,  (ii)  otherwise  acquire or agree
to acquire all or  substantially  all of the       assets of any of the foregoing,  or
enter into any joint ventures,  strategic  partnerships or alliances,  or       (iii)
invest in any third party; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;except
in the ordinary  course of business  consistent  with past  practice,  (i) sell,  lease,
 mortgage,       pledge,  license,  encumber,  convey,  assign,  sublicense  or otherwise
 dispose of or transfer any Acquired       Assets,  other  than the  sale,  lease,
 licensing,  encumbrance,  conveyance,  assignment,  sublicensing  or       disposition
of property or assets in any single transaction or series of related  transactions
 having a fair       market  value not in excess of an aggregate  amount of $50,000,
 (ii) materially  modify,  amend or terminate       any existing  material  lease,
 license or Contract  affecting  the use,  possession or operation of any such
      Acquired  Assets,  or  (iii) grant or otherwise  create or consent to the creation
of any material  easement,       covenant,  restriction,  assessment  or charge
 affecting  any owned real property or leased real property or       any material part
thereof; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;incur
any Indebtedness for borrowed money or guarantee any such  Indebtedness of another
Person,  issue or       sell any debt  securities or options,  warrants,  calls or other
rights to acquire any debt securities of the       Company,  in each case other than in
 connection  with (A) the financing of ordinary  course trade  payables,       (B)
borrowings  under the Company's  existing credit  facility or (C) the collection of
accounts  receivable,       notes or commercial paper, in the ordinary course of business
consistent with past practice; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
except pursuant to Company Benefit Plans in existence prior to the date hereof, adopt
or amend any material Company Benefit Plan or enter into any employment
contract or amend any Employment Agreement; (ii) increase the salaries or wage
rates or fringe benefits (including granting or increasing rights to severance
or indemnification) of, or pay any bonus or other compensation to, its directors,
officers, employees or consultants except, in each case, as may be required by
Law or any existing Company Benefit Plan or Employment Agreement; (iii)
layoff any employee who is either a Key Employee or with the title of Vice
President or higher of the Company or any Company Subsidiary (except for termination
for "cause") or effect any reduction (which is material with respect to the
Company's operations in a particular country) in workforce (other than as
otherwise indicated by the Buyers that would not be Continuing Business
Employees ); or (iv) enter into, or perform, any transaction (other than an
immaterial transaction) with or for the benefit of any officer, director or other
affiliate of the Company or any Company Subsidiary (other than in the ordinary
course of business or pursuant to the agreements set forth in <U>Section 3.16(h) of the
Company Disclosure Schedule</U>). </FONT> </P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>36</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;modify,
 amend or terminate,  in any material respect,  any Acquired Contract or waive, delay the
exercise       of, release or assign any material  rights or material  claims  thereunder
 other than in the ordinary course       of business; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;except
 as  required  by Law or by  GAAP,  revalue  any of its  assets  or make  any  material
 change  in       accounting methods, principles or practices; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(l) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;enter
into,  renew or modify any  Contracts  that,  had they been  executed  on or as of the
date  hereof,       would have been  required to be listed in <U>Section 3.7 of the Company
 Disclosure  Schedule</U> other than in the       ordinary course of business; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(m) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regarding
the Acquired  Subsidiaries  or adversely  effecting the Acquired  Assets or Assumed
 Liabilities       (i)  except as  required  by Law or by any  Governmental  Authority
 and  except  for  elections  made in the       ordinary  course  of  business,  make
 any  material  Tax  election  or  Tax  accounting  method  change,  or       (ii)
consent  to any extension or waiver of any  limitation  period with respect to Taxes or
(iii) other than       in  consultation  in good faith with the Buyer or as explicitly
 provided  herein,  enter into any settlement       with any Tax authority  relating to
any Tax ruling,  whether or not initiated  prior to the execution of this       Agreement; </FONT></P></TD>
</TR>
</TABLE>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(n) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
enter into any agreement  providing for the  employment or  consultancy  of any person on
a full-time,       part-time,  consulting or other basis or otherwise  providing
 compensation or other benefits to any officer,       director,  employee or consultant,
 (ii) grant rights to severance to Continuing  Employees other than (x) as       required
by applicable Law or (y) in a manner  consistent with the Company's  standard  practice
(so long as,       in the case of clause (y), the amount of severance  does not exceed
that  required by  applicable  Law if the       employee were terminated by the Company); </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(o) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;pay,
 discharge,  compromise,  satisfy,  cancel or  forgive  any debts or claims or rights
 (or  series of       rights,  debts or claims)  involving,  individually or in the
aggregate,  consideration  in excess of $50,000       except in the ordinary course of
business  consistent  with past practice and except for regularly  scheduled
      repayments under existing Indebtedness; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(p) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;settle
or compromise  any pending or  threatened  Action other than a settlement in respect of
an Excluded       Liability which includes only monetary payments which are paid prior to
the Closing; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(q) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;apply
for or accept any grants or other funding from the OCS or any other Governmental
Authority, other than under currently outstanding applications disclosed on
<U>Section 3.19 of the Company Disclosure Schedule</U>, or take any action or fail to take
any action in material violation of, or that would adversely affect the terms
and conditions of any grants or benefits received or receivable from any
Governmental Authority, including without limitation the OCS and the Investment
Center; </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(r) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;prepay
any amounts which may become due as a result of, or in connection with, the Closing; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(s) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;commence
any litigation proceedings; or </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>37</font></p>
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<page>

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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(t) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;agree
or commit to take any of the actions  described  in <U>Sections  5.1(a)  through  5.1(q)</U>
 other than in       the ordinary course of business. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Regular
Reporting</U>. Subject to compliance with applicable Law, from the date of this Agreement
until the earlier of the termination of this Agreement in accordance with its terms or
the Closing Date, the Company shall confer on a regular basis with one or more
representatives of the Buyers, designated in writing by Buyers, to report on operational
matters that are material and other matters reasonably requested by the Buyers. The
Company shall promptly provide the Buyer with all filings made with any Governmental
Authority in connection with this Agreement, the Transaction and the transactions
contemplated hereby. Any Financial Statements referred to in <U>Section 3.4(e) of the
Company Disclosure Schedule</U>, shall be provided by the Company to the Buyer within 30
days from the date hereof.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Investigation
of the Company&#146;s Business by the Buyers</U>. From the date hereof through the
Closing Date, the Company will provide to the Buyers and their Representatives reasonable
access during normal business hours to the properties, books, records, employees and
Representatives of the Selling Group Companies to make or cause to be made such
investigation of the Selling Group Companies and of the assets and liabilities and
financial and legal condition of the Selling Group Companies as the Buyers deem necessary
or advisable, provided that any such investigation shall not interfere unnecessarily with
the normal operations of the Selling Group Companies. The Company will furnish to the
Buyers and their Representatives<SUB></SUB>such financial and operating data and other
information with respect to the Selling Group Companies and the Acquired assets and
Assumed Liabilities of the Selling Group Companies as the Buyers shall from time to time
reasonably request. All information obtained by or on behalf of the Buyers pursuant to
this Section shall be kept confidential in accordance with the provisions of the Non
Disclosure Agreement, dated May 8, 2007, between the Company and the Buyer (the &#147;<U>NDA</U>&#148;).  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Environmental
Investigations</U>. The Company covenants and agrees that the Buyers may retain
environmental consultants and attorneys to conduct an environmental assessment of the
Acquired Assets. Such environmental assessment may consist of any activities deemed by
the Buyers or its consultants to be necessary or appropriate, including without
limitation physical inspections of the real properties, assets, equipment and facilities,
review of all relevant records in the possession or under the control of the Company or a
Company Subsidiary, review of relevant Governmental Entity records and contact with
Governmental Entity personnel, conduct of sampling activities and any other investigatory
activities. The Company and the Company Subsidiaries shall provide the Buyers&#146; environmental
consultants and attorneys access to the Acquired Assets, upon reasonable notice, for
purposes of conducting the environmental assessment.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Transfers
of Environmental Permits</U>. The Selling Group Companies shall give all notices to third
parties (after having provided the Buyer with reasonable opportunity to review and
comment on such notices), and the parties shall use commercially reasonable efforts (in
consultation with one another), to obtain all approvals, consents, ratifications, waivers
or authorizations from Governmental Entities or third parties necessary to validly
assign, transfer or obtain any Environmental Permits (and any pending applications for
any Environmental Permits) required for the lawful operation of the Business or to
operate the Acquired Assets following the Closing in substantially the same manner as
presently conducted, including, without limitation, any notifications, consents or
approvals required for the transfer or re-issuance of Environmental Permits in the Buyers&#146; name
and any notifications, consents or approvals required under applicable environmental
property transfer laws. The Parties shall use commercially reasonable efforts to complete
the assignment, transfer or issuance of such Permits and applications on or before the
Closing. In the event such assignment, transfer or issuance is not completed on or before
the Closing, the Company&#146;s and the Selling Subsidiaries&#146; obligations under this
section shall continue, and the Company (and the Selling Subsidiary, as the case may be)
shall maintain for the Buyers&#146; benefit the existing Environmental Permits in full
force and effect, until the assignment, transfer or issuance of all such Permits and
applications is completed.  </FONT></P>

<p align=center>
<font size=2>38</font></p>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;5.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Commercially
Reasonable Efforts.</U> </FONT> </P>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the terms and  conditions  of this  Agreement  and  applicable  Law, the Company and
the Buyers       will use their  commercially  reasonable  efforts to take, or cause to
be taken,  all actions,  and to do, or       cause  to be  done,  all  things  reasonably
 necessary,  proper  or  advisable  under  applicable  Laws  and       regulations or
otherwise to consummate and make effective the Transaction as soon as  practicable,
 including       such  actions  or  things as any other  party  hereto  may  reasonably
 request  in order to cause any of the       conditions to such other party's  obligation
to  consummate  such  transactions  specified in <U>ARTICLE 6</U> to be       fully  satisfied
 including  without  limitation  (i) make all filings  required by Law to be made by them
in       connection  with the  Transaction  Documents  or the  consummation  of the
 Transaction,  and (ii) use  their       commercially  reasonable  efforts to obtain all
Consents and orders of all Persons required to be obtained in       connection with the
execution,  delivery and performance of the  Transaction  Documents and the  consummation
      of the  Transaction,  and (iii) assign and transfer from the Acquired  Subsidiaries
to the Company or another       Company Subsidiary, all outstanding litigation claims . </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
time to time, as and when  requested by any party to this  Agreement,  the other parties
 hereto will       execute and deliver,  or cause to be executed and  delivered,  all
such  documents and  instruments  and will       take, or cause to be taken,  all such
 reasonable  actions,  as such other party hereto may  reasonably  deem       necessary
or desirable to consummate the Transaction. </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>39</font></p>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
anything to the contrary contained in this Agreement, to the extent the
sale, assignment, transfer, conveyance or delivery or attempted sale,
assignment, transfer, conveyance or delivery to the Buyers of any Acquired
Asset is prohibited by any applicable Law or would require any Governmental
Authority or third-party authorizations, approvals, consents, or waivers
and such authorizations, approvals, consents or waivers shall not have been
obtained prior to the Closing Date, and the obtaining thereof is not a condition
to the Closing, then following the Closing, and without limiting the provisions
set forth in <U>ARTICLE 5</U>, the Company shall be deemed to hold the respective Acquired
Asset and all rights and privileges with respect thereto as a trustee for
the sole benefit of the Buyers and shall manage such Acquired Asset solely in
accordance with instructions of the Buyers, and the parties shall use their
respective commercially reasonable efforts, and cooperate with each other, to
obtain promptly such authorizations, approvals, consents or waivers. Pending
such authorization, approval, consent, or waiver, the parties shall cooperate
with each other in any reasonable and lawful arrangements designed to provide to
the Buyers the benefits of use of such Acquired Asset. Once such authorization,
approval, consent or waiver for the sale, assignment, transfer, conveyance or
delivery of an Acquired Asset not sold, assigned, transferred, conveyed or
delivered at the Closing is obtained, the Company shall promptly assign,
transfer convey or deliver, or cause to be assigned, transferred, conveyed and
delivered, such Acquired Asset to the Buyers for no additional consideration.
To the extent that any such Acquired Asset cannot be transferred or the full
benefits of use of any such Acquired Asset cannot be provided to the Buyers
following the Closing, the Buyers and the Company shall enter into such
arrangements for no additional consideration from the Buyers (including
subleasing or subcontracting if permitted) to provide to the Buyers the
operational equivalent of obtaining such authorization, approval, consent or
waiver. Without limitation of the foregoing, in the event that at the Closing the
registration of any Transferred Intellectual Property in the name of the
Buyers at the relevant Governmental Authority was not yet completed and
perfected then without limitation of any other rights of the Buyers, to the extent
necessary to grant to the Buyers full and unrestricted use of such Transferred
Intellectual Property, the Company hereby grants to the Buyers, effective as
of the Closing and subject to any Third Party Licenses, an irrevocable,
perpetual, royalty free, fully paid, worldwide, unrestricted, exclusive license to
make any use or exploitation with respect thereto, including without limitation
the right to grant sublicenses. In the event that any Acquired Asset was not
duly transferred or assigned to the Buyers or its Affiliates at the Closing,
and notwithstanding, the Closing was completed, then the Company shall take any
action after the Closing, as reasonably requested by the Buyers, to allow the
Buyers to enforce any rights or privileges of the Company under or with respect
to such Acquired Assets, including pursuit of legal proceedings, solely for
the benefit of and at the expense of the Buyers, and the Company shall fully cooperate
with the Buyers in order to allow the Buyers to achieve the desired result in this
regard. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
at the Closing, the Selling Group Companies shall terminate all their respective
insurance policies (the "<U>Business Insurance Policies</U>") related to the Acquired
Assets or the Transferred Intellectual Property, and shall pay all costs
associated with the termination of the Business Insurance Policies or for the
purchase of any run-off policies. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Selling Group Companies shall cooperate with the Buyer in the review of regulatory
matters affecting the Selling Group Companies and, in particular, upon the
reasonable request of the Buyer, shall take such actions, implement such
registrations, submit such permit applications and seek such approvals as may be
required by Environmental Laws to insure that the Selling Group Companies
and their products are in compliance with all Environmental Laws as of, and
immediately after, the Closing in all countries in which those products are sold
as of the Closing. Without derogating from the generality of the foregoing, the
Selling Group Companies shall take such actions required in connection with
Environmental Laws as set forth in <U>Schedule 5.6(e)</U> attached hereto (the
"<U>Environmental Matters</U>") in cooperation and consultation with the Buyer. The
costs related to such Environmental Matters shall be borne by the Company, provided
however that Buyer will bear the cost for the initial $100,000 of out-of-pocket
costs and expenses related thereto, in the manner provided for in <U>Section 2.2</U>. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>40</font></p>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
at the  Closing,  the Company and the Selling  Subsidiaries  hereby  constitute  and
appoint the       Buyers  as  the  true  and  lawful  attorneys  (separately  and
 jointly)  of the  Company  and  the  Selling       Subsidiaries,  with full power of
 substitution,  in the name of the Company,  the Selling  Subsidiaries  and       Buyer,
 but on behalf of and for the benefit of the Buyer and at the Buyer's cost and expense:
 (i) to demand       and receive  from time to time any and all the Acquired  Assets and
to make  endorsements  and give  receipts       and releases for and with respect to the
same and any part thereof;  (ii) to institute,  prosecute and settle       any and all
actions or  proceedings  that the Buyers may deem  proper in order to collect,  assert or
enforce       any claim,  right or title of any kind in or to the  Acquired  Assets;
 (iii) to  defend or settle any or all       actions  proceedings with respect to any of
the Acquired Assets (other than actions or proceedings  which the       Company
 acknowledges  and agrees in a written  instrument  signed by the Company and delivered
to the Buyers       that  constitute  Excluded  Liabilities);  and (iv) to do all such
acts and things in relation to the matters       set forth in the  preceding  clauses (i)
through (iii) as the Buyers shall deem  necessary or desirable.  The       Company and
the Selling  Subsidiaries  hereby  acknowledge  that the  appointment  hereby made and
the powers       hereby  granted are coupled  with an interest and are not and shall not
be revocable by them in any manner or       for any  reason.  The  Company  and the
 Selling  Subsidiaries  shall  deliver to the  Buyers at the  Closing       acknowledged
 powers  of  attorney  to  the  foregoing  effect  executed  by  the  Company  and  the
 Selling       Subsidiaries. </FONT></P></TD>
</TR>
</TABLE>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
case that during the period of 18 months following the Closing, any of the Buyers
discover any Contract, Software, Copyright, Trademark or other item of
Intellectual Property or other asset owned by the Company or a Selling Subsidiary
and used in conducting the Business prior to Closing (an "<U>Additional
Asset</U>"), which is not included in the Acquired Assets or the Transferred
Intellectual Property, then the Buyers may request the Company or a Selling
Subsidiary in writing to license or transfer such Additional Asset, as
applicable under this Section, to the Buyers in accordance with the provisions
hereunder, as if such item had been identified as an Acquired Asset or
Transferred Intellectual Property under this Agreement, for no additional
consideration. As soon as practicable after receipt by the Company from the
Buyers of such request as aforesaid, the Company or a Selling Subsidiary shall
provide written confirmation (unless the Company in good faith believes that
such Additional Asset should not be so treated) and, such item shall be deemed to
have been transferred or licensed as described in this Section. If the Company or a
Selling Subsidiary so discovers any such Additional Asset, it shall notify the
Buyers and, at the Buyers' written request, the Company or the applicable
Selling Subsidiary shall be deemed to have licensed or transferred such
Additional Asset to the Buyers in accordance with the terms of this Section. In the
event that the Company or a Selling Subsidiary receive, at any time after the
Closing, any payments related to the Business, the Company or the Selling
Subsidiary, as the case may be, shall promptly transfer such payment to the
Buyer (or the applicable Buyer Affiliate). In the event that Buyer or a Buyer
Affiliate receive, at any time after the Closing, any payments related
solely to an Excluded Asset or from any litigation proceedings of an Acquired
Subsidiary existing prior to the Closing and not to the Business, the Buyer or
any such Buyer Affiliate, as the case may be, shall promptly transfer such payment
to the Company. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Without
limiting the foregoing, from and after the Closing Date, the Company and the
Selling Subsidiaries shall (at its own expense) do all things necessary, proper
or advisable under applicable Laws, including signing and delivery of any
documents and instruments, as reasonably requested by the Buyers to put the
Buyers in effective and registered possession, ownership and control of the Acquired
Assets. No party nor any of its subsidiaries shall take any action that is
intended to have the effect of, or is reasonably expected to have the effect
of, delaying, impairing or impeding the receipt of any required approvals or
the satisfaction of any condition in <U>ARTICLE 6</U>. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>41</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anything
contained in this Agreement to the contrary notwithstanding, none of the parties
to this Agreement or their Affiliates will be required to commence
litigation or divest or hold separate any business or assets or limit or
restrict its rights or ability to engage in any business (other than
pursuant to <U>Section 5.8</U>) in connection with the consummation of the Transaction. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the period until the Closing,  the Company will promptly  (after  becoming  aware) notify
the Buyer       of any security incident relating to its information  technology systems,
 including without limitation,  any       incidents involving loss or potential loss of
intellectual property or personally  identifiable  information.       The parties shall
work together  between the date hereof and the Closing with respect to the  following:
 (i)       compliance to PCI DSS V1.1, (ii)  completion of a PCI SAQ, (iii)  mitigation
of identified  network  security       vulnerabilities,  (iv)  mitigation of identified
OS security  vulnerabilities,  (v)  mitigation of identified       Application  Security
 vulnerabilities,  (vi) apply and validate security patches,  (vii) deploy and validate
      AV tools,  and (viii)  migration of  non-supported  version of operating  systems
to supported  versions with       patches. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer
shall use reasonable  commercial  efforts to provide the Company with information
 necessary for the       Company to comply with  regulations  applicable to the Company
which are reasonably  requested.  Requests for       such  information  shall be
delivered  to a designated  representative  from Buyer's  Strategy and  Corporate
      Development group. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Non-Solicitation
of Employees</U>. For a period of three years from and after the Closing Date, without
the prior written consent of the Buyer, the Company shall not, and will cause its
Affiliates not to, solicit, hire or retain as an employee, independent contractor or
consultant any Continuing Business Employees, and will cause its Affiliates not to,
during such period, induce or attempt to induce any such employee to terminate his or her
employment with the Buyers by resignation, retirement or otherwise. The term &#147;solicit,
hire or retain&#148; shall not be deemed to include generalized searches for employees
through media advertisements that are not focused on individuals that are employed by the
Buyers or any of their Affiliates or successors.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;5.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Non-Compete.</U> </FONT> </P>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
a period of three years after the Closing Date,  the Company will not, nor will any of
its  Affiliates       (excluding  Independent  Director  of the  Selling  Group  Company)
 directly  (on their own behalf or in the       service or on behalf of others),  without
the written  consent of the Buyer,  enter into,  engage in, manage,       operate,
 control,  invest or acquire any  interest  in, or otherwise  engage or  participate  in,
or own any       beneficial  interest in, any business  engaged  directly in the
 Business as  presently  conducted,  wherever       located  except  where such
 ownership  is not above 5% of such  business.  Notwithstanding  the above,  with
      respect to  Affiliates,  this  non-compete  provision  shall  relate to large,
 wide,  or super  wide  format       printing business. </FONT></P></TD>
</TR>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Buyers and the Company agree that if any provision of this <U>Section 5.8</U> should be
adjudicated to be invalid or unenforceable, such provision shall be deemed
deleted herefrom with respect, and only with respect, to the operation of such
provision in the particular jurisdiction in which such adjudication was made;
<U>provided</U>, <U>however</U>, that to the extent any such provision may be made valid and
enforceable in such jurisdiction by limitations on the scope of the activities,
geographical area or time period covered, the Buyers and the Company agree that
such provision instead shall be deemed limited to the extent, and only to the
extent, necessary to make such provision enforceable to the fullest extent permissible
under the Laws and public policies applied in such jurisdiction. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<font size=2>42</font></p>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
covenants contained in this <U>Section 5.8 </U>shall be construed and enforced independently
of any other provision of this Agreement or any other understanding or agreement
between the Buyers and the Company, and the existence of any claim or cause of
action of the Company against the Buyers, of whatever nature, shall not
constitute a defense to the enforcement against the Company of the covenants
contained in this <U>Section 5.8</U>. </FONT> </P></TD>
</TR>
</TABLE>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;5.9 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Confidential
Information.</U> </FONT> </P>

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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
and after the Closing  Date,  to the maximum  extent  permitted by  applicable  Law,  all
 technical,       marketing  and other  information  relating  to or  included  in the
 Acquired  Assets,  the  Business or the       Business  Information  shall at all times
be and remain the sole and  exclusive  property of the Buyers,  and       the Buyers may
freely  use,  disclose,  transfer,  sell or assign  such  information.  At all times
after the       Closing Date, the Company and its directors,  officers,  employees,
agents and representatives shall maintain       in  strictest  confidence,  and shall not
 disclose  to third  parties  or use for their  benefit  or for the       benefit of any
third party, any and all non-public  information  concerning the Buyers,  the Acquired
Assets,       the Assumed Liabilities, the Business and the Business Information, except
as may be required by Law. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the  event  that the  Company  or any of its  Affiliates  or  Representatives  are
 required  by Law to       disclose  any such  information,  the Company will  promptly
 notify the Buyers in writing so that the Buyers       may seek a  protective  order or
other  motion to  prevent  or limit the  production  or  disclosure  of such
      information.  If such motion has been denied,  has not been promptly  prosecuted or
is pending and unresolved       at the time  disclosure of such  information  is required
by Law,  then the Person  required to disclose such       information  may disclose  only
such portion of such  information  which (i) based on advice of such Person's
      outside  legal  counsel is required by Law to be  disclosed  (provided  that the
Person  required to disclose       such information  will use all reasonable  efforts to
preserve the  confidentiality  of the remainder of such       information)  or (ii) the
Buyer  consents in writing to having it  disclosed.  Such Person will not, and will
      not permit any of its Affiliates or its or their  Representatives  to, oppose any
motion for  confidentiality       brought by the Buyer or any Selling Group Company.
 Such Person will continue to be bound by its  obligations       pursuant to this
 <U>Section 5.9</U>  for any  information  that is not required to be  disclosed,  or that has
been       afforded protective treatment, pursuant to such motion. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Without
 limitation of the  foregoing,  the NDA shall  continue to be in full force and effect at
any time       after the date hereof in accordance with its terms. </FONT></P></TD>
</TR>
</TABLE>
<BR>


<p align=center>
<font size=2>43</font></p>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.10 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notification
of Certain Matters</U>. Between the date of this Agreement and the earlier of the Closing
or termination of this Agreement, the Buyers, on the one hand, and the Company, on the
other hand, shall give prompt notice to the other of: (a) the occurrence or
non-occurrence of any event, the occurrence or non-occurrence of which it is aware which
is likely to cause any representation or warranty of such party contained in this
Agreement to be untrue or inaccurate at or prior to the Closing in any material respect,
and (b) any failure of such party to comply with or satisfy any covenant, condition or
agreement to be complied with or satisfied by it hereunder. Notwithstanding anything in
the immediately preceding sentence to the contrary, the delivery of any notice pursuant
to this <U>Section&nbsp;5.10</U> shall not (i)&nbsp;limit or otherwise affect any
remedies available to the party receiving such notice or (ii)&nbsp;constitute an
acknowledgment or admission of a breach of this Agreement. No disclosure by any party
pursuant to this <U>Section&nbsp;5.10</U> shall be deemed to amend or supplement the
Company Disclosure Schedule or prevent or cure any misrepresentation, breach of warranty
or breach of covenant.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.11 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Public
Announcements</U>. Except for the joint announcement of the execution and delivery of
this Agreement, the timing and content of which have been mutually agreed by the parties
hereto, no party hereto shall issue any press release or otherwise make any public
announcement with respect to this Agreement, the Transaction or the other transactions
contemplated hereby without first consulting with the Buyer and the Company and providing
such party with reasonable opportunity to review and comment upon such press release or
public announcement. Notwithstanding the foregoing, if such an announcement is required
by applicable Law or any listing agreement with a national securities exchange or
quotation system the party required to make such announcement shall provide notice to and
a copy of such as promptly as practicable in advance of such announcement and, will use
all reasonable efforts to consult with the other party and take the views of the other
party with respect to such announcement into account prior to making such announcement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.12 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exclusive
Dealing</U>. Between the date hereof and the earlier of the Closing and the termination
of this Agreement, the Company shall not (and shall use reasonable efforts to cause its
Representatives and Affiliates not to), directly or indirectly, take any of the following
actions with any party other than Buyer and its designees: (i)&nbsp;solicit, knowingly
encourage, initiate or participate in any negotiations or discussions with respect to,
any offer or proposal to acquire or license all or substantially all, or a significant
portion (other than its products in the ordinary course of business), of the Company&#146;s
business, technologies or properties or any of the Company&#146;s equity whether by
merger, purchase of assets, equity purchase (including convertible securities), license,
tender offer or otherwise (including any option or right with respect to any of the
foregoing), or enter into any agreement providing for, or effect, any such transaction;
(ii)&nbsp;disclose any information not customarily disclosed in the ordinary course of
business to any person concerning the Company&#146;s business, technologies or properties
or afford to any person or entity including, but not limited to, financing parties,
access to its properties, books or records; (iii)&nbsp;assist or cooperate with any
person to: (a) make any proposal to purchase all or any portion of the Company&#146;s
equity; or (b) license all or any material portion of the Company&#146;s assets; or (iv)
enter into any agreement or arrangement with any person providing for the acquisition or
licensing of all or any significant portion of the Company (whether by way of merger,
purchase of assets, equity purchase, license, tender offer or otherwise). In the event
that the Company shall receive, or shall become aware that any of its officers, managers,
employees, members, agents, representatives or affiliates has received, any offer or
proposal, directly or indirectly, of the type referred to in clause&nbsp;(i) or (iii)
above, or any request for disclosure or access pursuant to clause&nbsp;(ii) above, it
shall notify Buyer of such offer or proposal within twenty-four hours thereof, including
without limitation information as to the specific terms of such offer or proposal, as the
case may be, and will cooperate with Buyer by furnishing any information Buyer may
reasonably request with respect thereto. The Company agrees to immediately terminate any
current discussions with third parties with respect to any of the foregoing and
represents that it has the right to so terminate any such discussions. Without limiting
the foregoing, it is understood that any violation of the restrictions set forth above by
any officer, manager, member, agent, representative or affiliate of the Company shall be
deemed to be a breach of this Agreement by the Company.  </FONT></P>

<p align=center>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;5.13 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Employee
Matters.</U> </FONT> </P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company shall provide such  assistance  to the Buyers in the  solicitation  and hiring of
the Business       Employees, as the Buyers shall reasonably request. </FONT></P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to the Closing Date and subject to the Buyer  receiving  proper evidence that each such
employee has       a legal  right to work in his or her  country  of  current
 employment,  each  Business  Employee  listed  in       <U>Schedule  5.13(b) to be attached
 hereto</U>  shall be given an Offer  Letter by the Buyer or a Buyer  Affiliate.       Such
Offer Letters will (a) be subject to and in compliance with Buyer's  standard human
 resources  policies       and procedures in the applicable  jurisdictions,  (b) offer
 employment in a manner that preserves the tenure       of any U.S.  Continuing  Business
 Employees  accrued  during their term of  employment by the Company or the       Selling
 Subsidiary  for the purposes of determining  their rate of vacation  accrual under the
Buyer group's       standard  procedure,  and for  eligibility to participate in, and
vesting of benefits under the Buyer group's       401(k) plan;  (c) provide any
 Continuing  Business  Employees  outside the U.S.  credit for service with the
      Buyers as required by applicable  Law,  (d) provide  that the offers of employment
will be conditional on the       completion of the  transactions  contemplated  by this
 Agreement and that such offers of employment  will be       effective  as of the
 Closing  Date,  and (e)  during at least the first year  following  the  Closing  Date,
      provide for terms that,  taken as a whole,  are not less  favorable  than the terms
of the relevant  Business       Employee's  current  terms of  employment  disclosed  to
Buyer in this  Agreement or the  schedules  attached       hereto.  The parties  shall
 co-operate  in good faith in  receiving  waivers  from the  Continuing  Business
      Employees with respect to their employment with the Selling Group Companies. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company and Selling  Subsidiaries shall pay such Continuing  Business Employees all
benefits that such       Continuing  Business  Employees may be eligible to receive under
an Employment  Agreement,  a Company Benefit       Plan or applicable  Law,  including,
 without  limitation,  all wages,  bonuses,  commissions,  pay for other
      compensated  absences and other  remuneration  (including  mandatory or
 discretionary  benefits) due to such       Continuing  Business  Employees  as of the
close of  business  on the  Closing  Date,  including  any related       payroll
 deductions (such as employee benefit plan  contributions and employment Taxes) with
respect thereto,       regardless  of whether  such  amounts  have been accrued on the
books of the Company at the close of business       on the Closing Date, but excluding
such payments which are Assumed  Liabilities  and the funds for which will       be
transferred to the Buyers at the Closing. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to the Closing  Date,  Company  shall (i) provide the Buyer with an account of all
benefits  accrued       by the  Continuing  Business  Employees  as of the Closing Date
and (ii) provide the Buyer with all books and       records relating to contributions
 made by the Company on behalf of the Continuing  Business Employees to any       Company
Benefit Plans. </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>45</font></p>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to the Closing, (i) each of the Selling Group Companies shall make all such payments,
transfers and fund all such amounts required to be placed with the Company
Benefit Plans that would have been required to be transferred and paid to
all the Continuing Business Employees had the employment of such Continuing
Business Employees been terminated at the Closing, and (ii) the Company shall
assign and transfer to the Buyer all its rights in all such Company Benefit
Plans (other than any Company Options which shall constitute Excluded
Liabilities) with respect to the relevant Continuing Business Employees, and
such Company Benefit Plans shall be deemed Acquired Assets hereunder. The parties
shall apply for the approval from the Income Tax Authorities (the "<U>ITA</U>")
regarding the transfer of the provident and pension funds, severance payments
funds, managers' insurance policies and education funds relating to the
Continuing Business Employees of the Company (together, the "<U>Funds</U>") from the
Company's account to the Buyer's account. At the Closing, the Company will
transfer title to the Funds to Buyer. The Company and the Buyer undertake to make
all appropriate filings with the ITA and all Funds' policy managers. Without
limitation to the foregoing, in the event that any Continuing Employee ceases to
be employed by the Buyers after the Closing Date, the Buyers shall be solely
responsible for any severance or other payments due to the employee as a result
of such termination of employment. Notwithstanding the foregoing <U>Subsection
5.13(e)</U>, in the event that the ITA does not require, as a condition to giving the
approval specified above, that the Funds of the Continuing Business Employees
employed by the Company be fully funded at or prior to the Closing, then the
Company shall not be required to fund any deficits existing thereunder which arose
under the ordinary course of business, provided however that in such event the
Company shall be liable for any such deficit with respect to any Continuing
Business Employee who is terminated by the Buyer during the 12-month period
following the Closing, and such deficit shall be a Deemed Loss indemnifiable from
the Escrow Funds as provided for in ARTICLE 8. The Buyer shall provide the Company
with commercially reasonable assistance and cooperation in the Company's
discussions with the ITA regarding the above matters, including with respect to
obtaining a waiver from the ITA regarding the funding of the Funds at Closing,
including assumption of such deficit under the terms hereunder (under such
reasonable terms as shall be agreed to by Buyer and the Company). </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to the Closing,  the Acquired  Subsidiaries  shall terminate the employment of all
employees who are       not Continuing  Business  Employees,  and shall be solely
 responsible  for the payment of all amounts due to       such employees in connection
with their  employment and termination  thereof,  including  without  limitation
      any severance pay and for all claims of such employees. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company and Selling  Subsidiaries  shall be solely  responsible for (A) claims of
Continuing  Business       Employees  and their  eligible  beneficiaries  and  dependents
 for  workers  compensation  and  unemployment       compensation  and claims  under
 Company  Benefit  Plans that are  incurred  before the Closing  Date and (B)
      claims  relating  to  COBRA  coverage,   or  similar  statutory   requirements  in
 non-U.S.   jurisdictions,       attributable  to "qualifying  events"  occurring on or
before the Closing Date with respect to any Continuing       Business  Employees and
their eligible  beneficiaries and dependents.  The Buyers shall be solely responsible
      for (A) claims of the  Continuing  Business  Employees and their  eligible
 beneficiaries  and dependents for       workers  compensation  and  unemployment
 compensation  and claims under the Selling Group  Company's and the       Buyer's
 welfare  plans that are  incurred  on or after the  Closing  Date and (B) claims
 relating  to COBRA       coverage, or similar statutory  requirements in non-U.S.
 jurisdictions,  attributable to "qualifying events"       occurring after the Closing
Date with respect to the Continuing  Business  Employees and their  beneficiaries
      and dependents.  Accruals for severance  benefits and other employee benefit
 programs as of the Closing with       respect to the  Continuing  Business  Employees
 shall be assumed  by the Buyers and will be  included  as an       Assumed   Liability
  solely  to  the  extent  such  accruals  are  fully   provided  for  in  the  Financial
      Statements. The  Buyers'  assumption  of such an Assumed  Liability,  shall not be
construed as indicating an       obligation to maintain a particular  benefit  program or
to pay a benefit in a particular  form where such an       obligation is not otherwise
required by Law and except as specifically  provided for herein,  nothing in this
      Agreement  shall be  construed  to require the Buyers to  continue  any Company
 Benefit  Plan or  Employment       Agreement or to prevent  amendment,  modification  or
 termination  of the current terms of employment of any       Continuing Business
Employee after the Closing. </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company shall  indemnify and hold harmless  Buyer from and against all Losses  suffered
or incurred by       Buyer as a result of or arising  directly  or  indirectly  out of,
in  connection  with or  pursuant  to, any       claims by any Continuing Business
 Employees,  including but not limited to any claims related to any Company       Benefit
Plan or Employment  Agreement,  other than claims by Continuing  Business  Employees
 with respect to       their employment with the Buyers at any time following the Closing. </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
to the  extent specifically  required by Law, the Buyers shall be under no  obligation
 to continue       to maintain any Company Benefit Plan or other  employment-related
 policy, program or practice of any Company       Subsidiary. </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
as of no later than the day  immediately  preceding the Closing Date,  each of the
Selling Group       Companies and any Company ERISA  Affiliate  shall terminate any and
all group severance plans or policies and       any Company Benefit Plans intended to
include a Code  Section 401(k)  arrangement  (unless the Buyer provides       written
 notice to the Company that such Company  Benefit  Plans shall not be  terminated).
 Unless the Buyer       provides  such written  notice to the Company,  no later than
three  business days prior to the Closing Date,       the Company  shall provide the
Buyer with evidence  that such Company  Benefit  Plan(s) have been  terminated
      (effective no later than the day immediately preceding the Closing Date). </FONT></P></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.14 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Transition</U>.
During the period between the signing of this Agreement and the earlier of the Closing or
termination of this Agreement, the Company and the Buyers shall cooperate with one
another in creating joint plans for the transition of the Business and the Acquired
Assets from the Company and the Selling Subsidiaries to the Buyers at and after the
Closing. The Company shall not take any action that is intended to have the effect of
discouraging any lessor, licensor, user, customer, supplier, or other business associate
of the Business from maintaining the same business relationship with the Buyers after the
Closing as it maintained with the Selling Group Companies prior to the Closing. Following
the Closing, the Company shall use reasonable efforts to refer all user and customer
inquiries relating to the Business to the Buyers.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.15 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Confidential
Information known to Continuing Business Employees</U>. The parties agree that
confidential information of the Company related to the Business and known to the
Continuing Business Employees is included in the Acquired Assets under this Agreement.
Accordingly, to the extent a Continuing Business Employee hired by the Buyers would, as a
result of an employment or other agreement between the Company and that Continuing
Business Employee, be restricted from disclosing confidential information to the Buyers
or from using information on the Buyers&#146; behalf or otherwise in connection with the
Continuing Business Employee&#146;s employment by the Buyers, the Company agrees to, and
hereby does waive, in favor of the Buyers, any right that it may have to enforce such
restrictions and consents to the Buyers&#146; use and disclosure of such information for
its own benefit and on its own behalf, without restriction.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.16 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Affiliate
Arrangements</U>. The Company shall terminate, or cause the termination of, all contracts
or other agreements of the Acquired Subsidiaries with any Selling Group Companies as set
forth on <U>Schedule 5.16</U>.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.17 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Knowledge
of the Buyers</U>. Any due diligence review, audit or other investigation or inquiry
undertaken or performed by or on behalf of the Buyers shall not limit, qualify, modify or
amend the representations, warranties or covenants of, or indemnities by the Company made
or undertaken pursuant to this Agreement, irrespective of the knowledge and information
received (or which should have been received) there from by the Buyers.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.18 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Transfer
Taxes</U>. The Company and Buyer shall each pay 50% of all Transfer Taxes (other than
value added tax on the Purchase Price), if any, imposed or levied by reason of, in
connection with or attributable to, this Agreement or the transactions contemplated
hereby. The Buyers will use commercially reasonable efforts to cooperate with the Company
to transfer the Acquired Assets in a manner that is expected to minimize any such
Transfer Taxes.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.19 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Change
of Name</U>. From and after the Closing, the Company shall immediately cease using the
Trademarks, the trade-name and Domain Name included in the Transferred Intellectual
Property, and shall, within 90 days as of the Closing, cease to do business under a
corporate name or trade name that incorporates such Trademarks or trade names or any
marks or names substantially similar or confusingly similar thereto provided that the
Company shall, within 30 days as of the Closing, make all such filings required in order
to effect all the above covenants in this Section. The Buyers shall be entitled to take
all steps necessary for the removal of the name of the Company from any Register of
Record of Trademark registered users in any office or agency of any government or
organization, and the Company will render any assistance required by the Buyers in
connection with such removal.  </FONT></P>

<a name=zk306></a>

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<H1 ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 6. CONDITIONS TO
CLOSING </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions
to Obligations of Each Party to Effect the Closing</U>. The respective obligations of
each party to this Agreement to effect the Transaction shall be subject to the
satisfaction at or prior to the Closing Date of the following conditions, any of which
may be waived, in writing, by mutual agreement of the Buyer and the Company:  </FONT></P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Order; Antitrust Approvals</U>. No Governmental Authority shall have enacted, issued,
promulgated, enforced or entered any statute, rule, regulation, executive
order, decree, injunction or other order (whether temporary, preliminary or
permanent) which is in effect and which has the effect of making the Transaction
illegal or otherwise prohibiting consummation of the Transaction. All material
approvals and waiting periods under applicable antitrust or merger regulation
laws, if any, required to be obtained or to have expired, as the case may be,
prior to the Transaction in connection with the transactions contemplated hereby
shall have been obtained or expired, as the case may be. </FONT> </P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governmental
Authority Approvals</U>. All Governmental Authority approvals required for the
consummation of the Transaction shall have been obtained including, without limitation,
the approvals of the OCS, the Investment Center and, if applicable, the Israeli
Commissioner of Restrictive Trade Practices. </FONT> </P></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions
to Obligations of the Buyers</U>. The obligations of the Buyers to effect the Transaction
are subject to the satisfaction or waiver by the Buyers at or prior to the Closing Date
of each of the following conditions:  </FONT></P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
and Warranties</U>. The representations and warranties set forth in <U>ARTICLE 3</U> shall be
true and correct in all material respects as of the date of this Agreement and
on and as of the Closing (other than those representations and warranties which
were qualified by terms such as "material", "materially" or "Material Adverse
Effect" which representations and warranties as so qualified shall be true and correct
in all respects on and as of the Closing), and the Company shall have delivered
to the Buyers a certificate confirming the foregoing as of the Closing. </FONT> </P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Performance
of Obligations of the Company</U>. Each and all of the covenants and agreements of the
Company and the Company Subsidiaries to be performed or complied with pursuant to
the Transaction Documents on or prior to the Closing Date shall have been fully
performed and complied with, and the Company shall have delivered to the
Buyers a certificate signed by an officer of the Company confirming the foregoing as
of the Closing Date. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Litigation,
Etc</U>. No Action shall have been threatened, instituted or pending (i) which is
reasonably likely (A) to make illegal, or to delay or otherwise directly or
indirectly restrain or prohibit, the consummation of the Transaction or to
result in material damages in connection with the Transaction, (B) to prohibit
ownership or operation by the Buyers or any Acquired Subsidiary of all or a material
portion of the Business or Assets or all or a material portion of the Business
or Assets of the Buyers or any of their Affiliates or to compel the Buyers or the
Acquired Subsidiary to dispose of or hold separately the Business or Assets to be
sold, conveyed, transferred, assigned and delivered hereunder or the Business or
Assets or all or a portion of the business or assets of the Buyers or any of
their Affiliates as a result of the Transaction or (C) to impose limitations
on the ability of the Buyers or any of their Affiliates effectively to
exercise full rights of ownership of the Business and the Assets to be sold,
conveyed, transferred, assigned and delivered hereunder or (ii) which otherwise
has had a Material Adverse Effect. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Material Adverse Change</U>. There shall not exist any condition, circumstance or state
of facts, and there shall not have been any event, occurrence, change,
development or circumstance, which has had a Material Adverse Effect. </FONT> </P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Consents</U>.
All Consents and orders of all Persons (including from Governmental Authorities)
required to be obtained prior to the Closing in connection with the
execution, delivery and performance of the Transaction Documents by the
Company or the consummation of the Transaction by the Company shall have been
obtained and shall be in full force and effect. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Closing
Deliverables</U>. The Buyers shall have received all closing deliverables as set forth in
<U>Section 2.4</U> in form and substance acceptable to the Buyer. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Consent
Required Contracts</U>. All Consents required by third parties in connection with the
assignment of the Consent Required Contracts set forth on <U>Schedule 6.2(g)</U> shall
have been obtained and shall be in full force and effect. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination
of Agreements</U>. The Selling Group Companies shall have terminated each of those
Contracts identified on <U>Schedule 5.16</U>, and each such Contract shall be of no
further force or effect. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>New
Employment Arrangements</U>. At least 80% of the employees named in <U>Schedule 6.2(i)</U> (the "<U>Key Employees</U>"), and (i) 80% of all R&amp;D Business Employees listed in
<U>Schedule 5.13(b)</U>, (ii) 80% of all Sales Business Employees listed in <U>Schedule
5.13(b)</U>, (iii) 80% of all Services Business Employees listed in <U>Schedule
5.13(b)</U>, and (iv) 80% of all Manufacturing Business Employees listed in <U>Schedule
5.13(b)</U>, have agreed to be an employee of the Buyers after the Closing and
remain employees of the Company or a Selling Subsidiary immediately prior to
the Closing; provided however that any Business Employee who is provided with an
Offer Letter which is contingent upon such employee agreeing to relocate to a facility
located more than 50 kilometers from his then-current employment facility and
who refuses to accept such Offer Letter, shall not be taken into consideration for
the purpose of determining whether the above thresholds have been met. Any
employee of an Acquired Subsidiary shall be deemed to have agreed to be an employee of
the Buyers after the Closing if they have agreed in writing to continue to be
employed by the Acquired Subsidiary following the Closing. </FONT> </P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(j) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Release
of Liens</U>. The Company shall deliver a written confirmation and consent from each
Person listed in the Company Disclosure Schedule as having any Lien over any of
the Acquired Assets or any Person who as of the Closing Date shall have any such
Lien, that such Lien has been removed and is no longer in effect. </FONT> </P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(k) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination
of Certain Company Benefit Plans</U>. Buyer shall have received from Company evidence
that any and all group severance plans or policies and any Company Benefit
Plans intended to include a Code Section 401(k) arrangement have been
terminated pursuant to resolution of the Company or the Company ERISA Affiliate's
board of directors (the form and substance of which shall have been subject to prior
review and approval of Buyer), effective no later than the day immediately
preceding the Closing Date. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(l) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Intercompany
Indebtedness</U>. No Intercompany balances between the Company and a Selling Subsidiary on
the one hand, and any Acquired Subsidiary on the other hand shall exist as of
the Closing, except for the confirmed and reconciled intercompany balances
arising from operational transactions (i.e. internal transfer of goods and
services meant for purchase by customers) listed on <U>Schedule 6.2(l)</U> attached hereto
that will be acquired by the Buyers from the Company or the Selling Subsidiaries
specified therein (and will have the opposite balance of those in the
Acquired Subsidiaries). The Company will use reasonable efforts to reduce such
assumed balances to zero prior to or at the Closing and shall provide Buyer with all
documents related to such intercompany balances being assumed. All other
intercompany balances between any of the Selling Group Companies (other than
with an Acquired Subsidiary) shall be Excluded Assets and Excluded Liabilities
hereunder. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(m) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Nur
Europe S.A</U>. Nur Europe S.A. shall have fully assigned and transferred (i) its capital
lease listed in <U>Section 3.9(c) of the Company Disclosure Schedule</U> and all
related fixed assets (the "<U>Belgium Capital Lease</U>"), (ii) its shares in Nur UK
Limited and Nur Hungary Trading Software and Licensing LLC, and any other
Company Subsidiary in which its holds any shares or securities, (iii) all its
obligations to any Belgium Governmental Authority, related to or arising from
the grants previously received by Nur Europe S.A. from such authorities, and
(iv) all outstanding litigation claims to which it is a party (as a defendant
or a plaintiff) (to the extent legally permitted); all of which shall be
transferred to the Company or a Company Subsidiary, and shall be either Excluded
Liabilities or Excluded Assets. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(n) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Demo
Sublease in Belgium</U>. Nur Europe S.A. shall have entered into a sublease agreement with
the Selling Group Company acquiring the Belgium Capital Lease, for the sublease
of the demo facility leased under the Belgium Capital Lease, for a period of 60
days following the Closing at cost. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(o) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>MFG/PRO</U>.
Create a duplicate of MFG/PRO to operate under Buyer's trading structure, to the
reasonable satisfaction of Buyer. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions
to Obligations of the Company</U>. The obligations of the Company to effect the
Transaction are subject to the satisfaction or waiver by the Company at or prior to the
Closing Date of each of the following conditions:  </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
and Warranties</U>. The representations and warranties of the Buyers set forth in <U>ARTICLE
4</U> shall be true and correct in all respects as of the date of this Agreement and
shall be true and correct in all material respects on and as of the Closing (other
than those representations and warranties which were qualified by terms such as
"material", or "materially" which representations and warranties as so qualified
shall be true and correct in all respects on and as of the Closing), and
each of the Buyer and the Additional Buyer shall have delivered to the Company
a certificate signed by an executive officer thereof confirming the foregoing as
of the Closing Date. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Performance
of Obligations</U>. Each and all of the covenants and agreements of the Buyers to be
performed or complied with pursuant to the Transaction Documents on or prior
to the Closing Date shall have been fully performed and complied with, and the
Buyer shall have delivered to the Company a certificate signed by an executive
officer thereof confirming the foregoing as of the Closing Date. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Closing
Deliverables</U>. The Company shall have received all closing deliverables as set forth in
<U>Section 2.5(a)</U> in form and substance acceptable to the Company. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

<a name=zk307></a>

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<H1 ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 7. TERMINATION </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;7.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination</U>.
This Agreement may be terminated and the Transaction abandoned at any time prior to
the Closing Date: </FONT> </P>


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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
the mutual written agreement of the Buyer and the Company; </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>51</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
written notice by the Buyer to the Company or by the Company to the Buyer, if the
Closing Date shall not have occurred on or before May 31, 2008 (the "<U>Termination
Date</U>"), except that neither the Buyers, on the one hand, nor the Company, on
the other hand, may so terminate this Agreement if the absence of such
occurrence is due to the failure of the Buyers, on the one hand, or the Company
on the other hand, to be in compliance with its obligations under this Agreement. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
written  notice by the Buyer to the Company or by the  Company to the Buyer,  if there
shall be any Law       that makes  consummation  of the  Transaction  illegal or
otherwise  prohibited  or if any court of competent       jurisdiction  or other
 Governmental  Authority  shall  have  issued an order,  decree or ruling or taken any
      other  action  permanently   restraining,   enjoining  or  otherwise  prohibiting
 the  consummation  of  the       Transaction,  and such order,  decree,  ruling or other
 action  shall not be subject to appeal or shall have       become final and unappealable; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
the Buyers,  if they are not in material  breach of their  obligations  under this
 Agreement and there       has been a  material  breach  of any  representation,
 warranty,  covenant  or  agreement  contained  in this       Agreement  on the part of
any  Selling  Group  Company  and  (i) the  Company  is not using its  commercially
      reasonable  efforts to cure such breach,  or has not cured such breach  within 15
days,  after notice of such       breach has been give by the Buyer to the Company;
 provided,  <I>however</I>, that, no cure period shall be required       for any such breach
which by its nature  cannot be cured and (ii) as a result of such breach,  one or more of
      the conditions set forth in <U>Section 6.1</U> or <U>Section 6.2</U> would not be satisfied at or
prior to the Closing; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
the Company,  if the Company is not in material  breach of their  obligations  under this
Agreement and       there has been a material breach of any  representation,  warranty,
 covenant or agreement  contained in this       Agreement on the part of the Buyers and
(i) the Buyers are not using their  commercially  reasonable  efforts       to cure such
breach,  or has not cured such breach within 15 days,  after notice of such breach has
been give       by the Company to the Buyer;  provided,  <I>however</I>,  that no cure period
 shall be required for any such breach       which by its nature cannot be cured and (ii)
as a result of such breach,  one or more of the  conditions  set       forth in <U>Section
6.1</U> or <U>Section 6.3</U> would not be satisfied at or prior to the Closing; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
the  Buyers,  if there shall have  occurred  any event or  condition  of any  character
 that has had a       Material Adverse Effect; or </FONT></P></TD>
</TR>
</TABLE>
<BR>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;7.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Effect
of Termination</U>. In the event of the termination of this Agreement pursuant to <U>Section&nbsp;7.1</U>,
this Agreement (other than with respect to <U>Section&nbsp;5.17</U>, confidentiality, and
this <U>Section&nbsp;7.2</U>, which shall continue in effect) shall thereafter become
void and have no effect, without any liability on the part of any party or its
Representatives in respect thereof, except that nothing herein will relieve any party
from Liability for any willful and material breach of any representation, warranty,
covenant or agreement in this Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;7.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment</U>.
Subject to applicable Law, this Agreement may be amended at any time by execution of an
instrument in writing signed by the Buyer and the Company.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;7.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Extension</U>.
At any time prior to the Closing Date, any party hereto may, to the extent legally
allowed, (i) extend the time for the performance of any of the obligations or other acts
of the other parties hereto, (ii) waive any inaccuracies in the representations and
warranties made to such party contained herein or in any document delivered pursuant
hereto and (iii) waive compliance with any of the agreements or conditions for the
benefit of such party contained herein. Any agreement on the part of a party hereto to
any such extension or waiver shall be valid only if set forth in an instrument in writing
signed on behalf of such party. Delay in exercising any right under this Agreement shall
not constitute a waiver of such right.  </FONT></P>

<p align=center>
<font size=2>52</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<a name=zk308></a>

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<H1 ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 8. SURVIVAL AND
INDEMNIFICATION </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Survival
of Representations and Warranties</U>.&nbsp; The representations and warranties of the
Company and Selling Subsidiaries contained in this Agreement, shall terminate eighteen
(18) months following the Closing Date (the &#147;<U>Survival Date</U>&#148;); provided,
<I>however</I>, that the representations and warranties contained in <U>Section&nbsp;3.2(a)</U>
(Authorization and Enforceability) shall survive until the expiration of the
applicable statutory limitations. The representations and warranties of the Buyers
contained in this Agreement shall terminate at the Closing.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Escrow
Fund; Indemnification</U>. (a) By virtue of this Agreement and as security for the
indemnity provided for in this <U>Section&nbsp;8.2</U>, at the Closing, the Company will
be deemed to have received and deposited with the Escrow Agent the Escrow Amount without
any act of the Company, such deposit of the Escrow Amount to constitute an escrow fund
(the &#147;<U>Escrow Fund</U>&#148;) to be governed by the terms set forth herein. The
Escrow Fund shall be deposited into an interest bearing account and interest earned
thereon will be held and distributed in accordance with this <U>Section&nbsp;8.2</U>.  </FONT></P>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification</U>.
The Company and the Selling Subsidiaries jointly and severally agree to indemnify and
hold the Buyers and their respective officers, directors, employees and
Affiliates (any, an "<U>Indemnified Party</U>" and collectively, the "<U>Indemnified
Parties</U>") harmless against all claims, losses, Liabilities, damages,
deficiencies, costs and expenses, including reasonable attorneys' fees and
expenses of investigation and defense (hereinafter individually a "<U>Loss</U>" and
collectively "<U>Losses</U>") paid, incurred or sustained by the Indemnified Parties, or
any of them, that arise out of, in connection with, or relate to: </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
breach or  inaccuracy of a  representation  or warranty of the Selling  Group  Companies
 contained in this  Agreement  as of the date of this  Agreement  or on and as of the
Closing Date with the same force and effect as if such representation or warranty was
made on and as of the Closing Date; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(2) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
 failure by the  Company or a Selling  Subsidiary  to perform  or comply  with any
 covenant  or other agreement  applicable  to it  contained in this  Agreement or in any
 certificate  or other  instruments  delivered pursuant to this Agreement; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(3) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
 payment  to, or claim by, the OCS,  excluding  any  payment to the OCS  related  to the
 transfer  of know-how or other rights of the Company  outside of Israel which  payment
is also  creditable  against the transfer of know-how or other rights of Buyer or its
Affiliates outside of Israel; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(4) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
payment to, or claim by, any Belgium  Governmental  Authority,  related to or arising
 from the grants previously received by the Selling Group Companies from such authorities; </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>53</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(5) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
Excluded  Assets and any Excluded  Liability  (whether  absolute,  accrued,  contingent
 or otherwise) existing  prior to or after the Closing or arising out of facts or
 circumstances  related to the Excluded Asset or Excluded  Liability,  existing  prior to
or after the  Closing,  whether or not such  liabilities,  obligations  or claims were
known at the time of the Closing and whether or not it is ultimately  determined that
such  liabilities are owed by the Company; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(6) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Intellectual Property Matter set forth in Schedule 8.2(b)(6) attached hereto (the "<U>IP
Matter</U>"); or </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Environmental Matters. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Deemed
Losses</U>. For the purposes of this <U>ARTICLE 8</U>, any of the matters listed on <U>Schedule
8.2(c)</U>, shall also be deemed to be a Loss. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Basket</U>.
No Indemnified Party may recover any Losses unless and until one or more Officer's
Certificates identifying a Loss or Losses in excess of US$450,000 in the
aggregate (the "<U>Basket Amount</U>") has or have been delivered to the Escrow Agent,
in which case such Indemnified Party shall be entitled to recover all Losses so
identified to the extent then available in the Escrow Fund. Notwithstanding the
foregoing, the Buyers shall be entitled to recover for, and the Basket Amount
shall not apply as a threshold to, any and all claims or payments made with
respect to (i) all Losses incurred pursuant to <U>Section 8.2(b)(3)</U>, <U>8.2(b)(4)</U>
or <U>8.2(b)(5)</U> hereof, (ii) all Losses incurred pursuant to <U>Section 8.2(c)</U> hereof, and
(iii) fraud or knowing or willful breach of a representation or warranty or breach
of a covenant contained herein </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Escrow
Period</U>. Subject to the following requirements, the Escrow Fund shall be in existence
immediately following the Closing and shall terminate at 5:00 p.m., local time,
on the first business day 24 months after the Closing Date (the "<U>Escrow
Period</U>"); provided that the Escrow Period shall not terminate with respect
to the aggregate amount of Losses (the "<U>Withheld Funds</U>") (i) specified in any Officer's
Certificate delivered to the Escrow Agent prior to the termination of the
Escrow Period and (ii) for which indemnification in full has not been
received pursuant to this <U>ARTICLE 8</U> in satisfaction thereof (such Losses
being referred to as "<U>Unsatisfied Losses</U>"). If the Company, by written notice to
Buyer and the Escrow Agent within ten (10) days of the termination of the Escrow
Period (it being understood that any contest relating to any Officer's
Certificate must be made within sixty (60) days of delivery of such Officer's
Certificate to the Company), contests the Buyers' determination of the existence or
value of such Losses, the existence or value of such Losses shall be finally
determined pursuant to the procedures set forth in <U>Section 8.2(i)</U> hereof. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Distribution
upon Termination of Escrow Period</U>. Promptly following the first business day after
the thirtieth (30th) day after the Survival Date, the Escrow Agent shall
deliver to the Company an amount of $US9,500,000 out of the Escrow Funds (less any
Escrow Funds previously distributed), except that the Escrow Agent shall retain
any Withheld Funds existing at such time in the Escrow Fund until the claim(s) to which
they relate are resolved. Promptly after the expiration of the Escrow
Period, the Escrow Agent shall deliver to the Company any funds remaining in
the Escrow Fund, together with any interest earned thereon, except that the
Escrow Agent shall retain the Withheld Funds in the Escrow Fund until the claim(s) to
which they relate are resolved. Subsequently, the Buyer shall notify the Company
and the Escrow Agent promptly after the resolution of any impending claim
specifying the amount of Losses in connection therewith for which no
indemnification has been received pursuant to this <U>ARTICLE 8</U> in satisfaction thereof.
Upon receipt of such notice, the Escrow Agent will (i) distribute the
respective Withheld Funds to the Buyer from the Escrow Fund equal to the amount
of such Losses in accordance with the provisions of <U>Section 8.2(g)</U> hereof to
the extent then available in the Escrow Fund; provided that the claim to which such
Losses relate is not being contested pursuant to <U>Section 8.2(h)</U> hereof and (ii)
promptly thereafter distribute to the Company the remaining respective Withheld
Funds, together with any interest earned thereon, after giving effect to the
distribution to Buyer in accordance with clause (i) immediately above. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>54</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Claims
Upon Escrow Fund</U>. Upon receipt by the Escrow Agent at any time on or before the
termination of the Escrow Period of an Officer's Certificate, the Escrow
Agent shall, subject to the provisions of <U>Section 8.2(h)</U> hereof, deliver to
the Buyer, as promptly as practicable, an amount from the Escrow Fund equal to
such Losses (the "<U>Payment Amount</U>"); provided however that after the Survival Date
and until the end of the Escrow Period, the Indemnified Parties may make
claims against the Escrow Fund solely with respect to the IP Matter. Unless
otherwise agreed to in writing by the Company, and without derogating from the
Indemnified Parties' right to make claims against the Escrow Fund as provided herein,
the Indemnified Parties shall be entitled to actually recover Losses from the
Escrow Funds only in respect of such Losses actually paid, sustained or incurred
by Buyer as set forth in the relevant Officer's Certificate. </FONT> </P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Objections
to Claims against the Escrow Fund</U>. Simultaneously with the delivery of any
Officer's Certificate to the Escrow Agent, a duplicate copy of such
certificate shall be delivered to the Company, and for a period of sixty (60)
days after delivery to the Escrow Agent, the Escrow Agent shall make no
delivery to the Buyer of any Escrow Amount pursuant to <U>Section 8.2(g)</U> hereof
unless the Escrow Agent shall have received written authorization from the
Company to make such delivery. After the expiration of such 60-day period, the
Escrow Agent shall make delivery of the Payment Amount pursuant to <U>Section 8.2(g)</U>;
provided that no such payment or delivery may be made if the Company shall object
in a written statement to the claim made in the Officer's Certificate, and such
statement shall have been delivered to the Escrow Agent prior to the expiration
of such 60-day period. </FONT> </P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Resolution
of Conflicts</U>. In case the Company shall object in writing to any claim or claims made
in any Officer's Certificate to recover Losses from the Escrow Fund within sixty
(60) days after delivery of such Officer's Certificate, each party may submit the
matter to binding arbitration, to a single arbitrator appointed by the
Chairman of the Israeli Bar Association, who shall have at least 10 years of experience
in arbitration (the "<U>Arbitrator</U>"). Such arbitration shall be conducted in the
State of Israel/Tel Aviv, in the English language. The Arbitrator shall
determine his/her own procedure, which may or may not require the submission of
written arguments by the parties or the holding of hearings. The Arbitrator shall
not be bound by procedure law or rules of evidence, but will rule in accordance
with the substantive law of the State of Israel. The execution of this
Agreement by the parties shall be deemed as execution of an arbitration
agreement, in accordance with the Israeli Arbitration Law (1968). The parties
to the arbitration shall be entitled to be represented at any arbitration
hearing by legal counsel. The Arbitrator shall endeavor to render his/her
decision (the "<U>Arbitration Award</U>"), within thirty (30) days following the date
of commencement of the deliberation, but shall not lose jurisdiction by reason of
his/her failure to respect this period. The Arbitration Award must be made in
writing stating the reasons upon which it is based and a copy thereof must be
delivered to each party to the arbitration. The Arbitrator, in the
Arbitration Award, shall apportion costs and expenses in the manner he sees fit,
taking into consideration the intent of the parties as set forth herein. The
intent of the parties is to have the party who is most at fault for the time and
cost of arbitration to be required to pay for the costs thereof in order that
each party has significant economic incentive to work together to resolve any
differences that may arise between them. The arbitration award and/or
determination shall be final and binding and judgment may be entered thereon in
any court of competent jurisdiction. </FONT> </P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(j) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Third-Party
Claims</U>. </FONT> </P></TD>
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<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event Buyers become aware of a third-party claim relating to allegations of
Intellectual Property infringement or challenging the rights of the Buyers to
Intellectual Property Rights, for which indemnification may by sought under this
<U>ARTICLE 8</U>, which Buyers reasonably believes may result in a Loss that is indemnifiable
hereunder, Buyers shall notify the Company of such claim, and the Company shall be
entitled, at its expense, to participate in, but not to determine or conduct, the
defense of such claim. Delay or failure in so notifying the Company shall relieve the
Company of its obligations under this <U>ARTICLE 8</U> only to the extent, if at all, that the
Company is adversely and materially prejudiced by reason of such delay or
failure. If there is any such third-party claim that, if adversely determined would
give rise to a right of recovery for Losses hereunder, then any amounts incurred or
accrued in defense of such third-party claim, regardless of the outcome of such
claim, shall be deemed Losses hereunder. Buyers shall have the right in their sole
discretion to conduct the defense of such claim; provided that the Buyer shall not
enter into any settlement agreement with respect to any such third party claim without
obtaining the prior consent of the Company, which consent shall not be unreasonably
withheld or delayed. The Buyer shall keep the Company reasonably and promptly
informed of material progress and developments in those aspects of the matter that
relate to the Buyer's claim for indemnification hereunder and provide the Company with
copies of all relevant documents and such other information in its possession as may
be requested by the Company; </FONT> </P></TD>
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<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(2) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event Buyers become aware of a third-party claim other than a claim relating to
allegations of Intellectual Property infringement or challenging the rights of the
Buyers to Intellectual Property Rights, for which indemnification may by sought
under this <U>ARTICLE 8</U>, which Buyer reasonably believes may result in a Loss that is
indemnifiable hereunder, Buyers shall notify the Company of such claim. Delay or
failure in so notifying the Company shall relieve the Company of its obligations under
this <U>ARTICLE 8</U> only to the extent, if at all, that the Company is adversely and
materially prejudiced by reason of such delay or failure. The Company may elect, by
providing the Buyer with written notice to such effect within fourteen (14) days of
receiving notice from the Buyer, to assume the conduct of any defense of such third
party claim with counsel chosen by the Company that is reasonable acceptable to the
Buyer, on the following terms: (i) the Company shall acknowledge to the Buyer at
such time in writing its full liability for such third party claim and agree to indemnify
the Indemnified Parties against all Losses, without regard to any limitations set
forth in this <U>ARTICLE 8</U> and regardless of whether there are sufficient funds in the
Escrow Fund to cover the amount of such Losses that may be incurred in connection
with such third party claim, including, without limitation, costs which an Indemnified
Party may incur in taking any such action as the Company may require provided that with
respect to any Losses, other than Losses resulting from Unlimited Claims, such
Losses shall first be satisfied from the Escrow Funds; and (ii) the Company shall keep
the Buyer reasonably and promptly informed of the progress of the third party claim
and provide the Buyer with copies of all relevant documents and such other information
in its possession as may be requested by the Buyer. If the Company elects not to
defend against, negotiate, settle or otherwise deal with any such claim which relates
to any Losses indemnified against hereunder, the Buyer shall defend against,
negotiate, settle or otherwise deal with such claim; provided that the Buyer shall
not enter into any settlement agreement with respect to any such third party claim
without obtaining the prior consent of the Company, which consent shall not be
unreasonably withheld or delayed. The foregoing notwithstanding, the Buyer shall be
entitled to maintain or resume control of any such third party claim in the event
that it reasonably determines at any time that the Company does not have the financial
capability (taking into account the amount available in the Escrow Fund) to defend
such claim and to fulfill its indemnification obligation hereunder in respect of
such claim; any such decision by the Buyer to maintain or assume the defense of such
claim shall not derogate from the indemnification obligations of the Company hereunder.
If the Company shall assume the defense of any such third party claim, the Buyer may
participate, at his or its own expense, in the defense of such third party claim;
<U>provided</U>, <U>however</U>, that the Buyer shall be entitled to participate in any such
defense with separate counsel at the expense of the Company if (i) so requested by
the Company to participate or (ii) in the reasonable opinion of counsel to the Buyer
a conflict or potential conflict exists between the Buyer and the Company that would
make such separate representation advisable; and <U>provided</U>, <U>further</U>, that the Company
shall not be required to pay for more than one such counsel for the Buyer in connection
with any third party claim. </FONT> </P></TD>
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<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(3) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that the Company  does not elect to assume the  defense of a third  party
 claim  pursuant to the foregoing  clause (2), or in the event that the Buyer exercises
its right pursuant to the foregoing  clause (2) to defend  such third party  claim,  then
any amounts  incurred  or accrued in defense of such  third-party  claim, regardless of
the outcome of such claim,  shall be deemed Losses hereunder,  if such third-party claim
is such that if  adversely  determined  it would give rise to a right of recovery  for
Losses  hereunder.  The Company  shall be entitled,  at its expense,  to  participate
 in, but not to determine  or conduct,  the defense of such claim.  The Buyer shall keep
the Company  reasonably  and  promptly  informed of material  progress and  developments
 in those aspects of the matter that relate to the Buyer's claim for  indemnification
 hereunder and provide the Company with copies of all relevant documents and such other
information in its possession as may be requested by the Company. </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(k) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Escrow
as the Sole Remedy</U>. The Escrow Fund shall be the sole and exclusive source of
satisfaction of any claim made by the Indemnified Parties for any Losses
resulting from the matters set forth in this <U>ARTICLE 8</U> and the liability of the
Company under this Agreement in respect thereof to any Indemnified Party shall
not exceed, in the aggregate, the Escrow Amount; provided, <I>however</I>, that nothing
herein shall limit any remedy of an Indemnified Party for (i) any willing,
knowing or intentional breach of any representation, warranty or covenant
contained herein, (ii) fraud, or (iii) indemnification under <U>Sections 8.2(b)(2)</U>
(solely with respect to a breach of Sections 5.7, 5.8, and 5.9), <U>8.2(b)(5)</U> and
Section 8.2(c) (collectively, "<U>Unlimited Claims</U>") provided that the first
US$1,000,000 of Losses arising under Sections 8.2(b)(5) and 8.2(c), shall first
be satisfied from the Escrow Funds, to the extent available. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(l) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Materiality;
No Right of Contribution</U>. For the purpose of this <U>ARTICLE 8</U> only, when determining
whether there has been a breach or inaccuracy of any representation or
warranty of the Company or a Selling Subsidiary, any representation or
warranty given or made by the Company or a Selling Subsidiary that is qualified
in scope as to materiality (including Material Adverse Effect) shall be deemed to
be made or given without such qualification. There shall be no right of
contribution from the Buyers with respect to any Loss claimed by an Indemnified
Party. </FONT> </P></TD>
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<BR>


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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(m) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Treatment
of Indemnification Payments</U>. All indemnification payments under this Agreement
shall be treated by the parties as an adjustment to the Purchase Price. </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(n) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subrogation</U>.
After any indemnification payment is made to the Buyers pursuant to this <U>ARTICLE 8</U>,
the Company shall, only to the extent of such payment, be subrogated to all
rights (if any) of the Buyers against any third party in connection with the
Losses to which such payment relates. Without limiting the generality of the
preceding sentence, the Buyers, upon receiving an indemnification payment pursuant to
the preceding sentence shall execute, upon the written request of the
Company, any instrument reasonably necessary to evidence such subrogation
rights. </FONT> </P></TD>
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<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(o) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Net
Losses</U>. Notwithstanding anything to the contrary contained herein, the parties
acknowledge that any insurance proceeds that are actually obtained by the
Indemnified Party with respect to Losses shall be taken into account in
calculation of the Losses incurred or suffered by the Indemnified Party to the extent
the Indemnified Party's Losses are actually reduced as a result thereof
(including by reimbursement of the Company if such insurance proceeds are
actually received after indemnification is made). The parties specifically
agree that the above shall not be construed or interpreted in any way to impose any
obligation on a party to purchase insurance or otherwise make any claim for
proceeds from any then-existing insurance. The provisions of this Section shall
not apply to self-insurance. </FONT> </P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(p) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Consequential Damages</U>. Notwithstanding anything to the contrary elsewhere in this
Agreement, no party shall, in any event, be liable to any other Person for any
consequential or indirect damages of such other Person, including loss of
future revenue, income or profits, diminution of value or loss of business
reputation or opportunity relating to the breach or alleged breach hereof. </FONT> </P></TD>
</TR>
</TABLE>
<BR>


<a name=zk309></a>

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<H1 ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 9. GENERAL
PROVISIONS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment</U>.
No party to this Agreement will convey, assign or otherwise transfer any of its rights or
obligations under any Transaction Document without the prior written consent of the
Company (in the case of an assignment by the Buyers) or of the Buyers (in the case of an
assignment by the Company), except that the Buyers may (without obtaining any consent)
assign any of their respective rights, interests or obligations under any Transaction
Documents, in whole or in part, to any Affiliate of the Buyers or to any successor to all
or any portion of its business. No assignment of this Agreement will relieve the
assigning party of its obligations hereunder.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Parties
in Interest</U>. This Agreement is binding upon and is for the benefit of the parties
hereto and their respective successors and permitted assigns. This Agreement is not made
for the benefit of any Person not a party hereto, and no Person other than the parties
hereto or their respective successors and permitted assigns will acquire or have any
benefit, right, remedy or claim under or by reason of this Agreement, except that the
Indemnified Parties will be entitled to the rights to indemnification provided to the
Indemnified Parties hereunder.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Waiver;
Remedies</U>. No failure or delay on the part of the Buyers or the Company in exercising
any right, power or privilege under any Transaction Document will operate as a waiver
thereof, nor will any waiver on the part of the Buyers or the Company of any right, power
or privilege under any Transaction Document operate as a waiver of any other right, power
or privilege under any Transaction Document, nor will any single or partial exercise of
any right, power or privilege thereunder preclude any other or further exercise thereof
or the exercise of any other right, power or privilege under any Transaction Document.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Fees
and Expenses</U>. Each of the Parties hereto shall bear the expenses incurred by it
relating to the transactions contemplated by this Agreement, including without limitation
fees and expenses of counsel, subject to such other arrangements as may be expressly set
forth in the other documents executed or to be executed in connection with this
Agreement, except that the Company shall bear all the costs and expenses of the Acquired
Subsidiaries.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
All notices, requests, claims, demands and other communications required or permitted to
be given under any Transaction Document shall be in writing and will be delivered by hand
or faxed or sent, postage prepaid, by registered, certified or express mail or reputable
overnight courier service and will be deemed given when so delivered by hand or faxed, or
three business days after being so mailed (one business day in the case of overnight
courier service). All such notices, requests, claims, demands and other communications
will be addressed as set forth below, or pursuant to such other instructions as may be
designated in writing by the party to receive such notice in accordance with this <U>Section&nbsp;9.5</U>:  </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If to the Buyers:</FONT></P>

























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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Hewlett-Packard Company<BR>
Inkjet Commercial Division<BR>
Avda. Graells, 501<BR>
08174-Sant Cugat del Valles<BR>
Barcelona, Spain<BR>
Attention: Enrique Lores, Vice President &amp; General Manager<BR>
Fax: 34 93 582 2510<BR>
<BR>
with a copy to (which shall not constitute notice):<BR>
<BR>
Hewlett-Packard Company<BR>
3000 Hanover Street<BR>
Palo Alto, CA 94304<BR>
Attention:  General Counsel<BR>
Fax:  (650) 857-2011<BR>
<BR>
Hewlett-Packard Company<BR>
3000 Hanover Street<BR>
Palo Alto, CA 94304<BR>
Attention:  Senior Vice President, Strategy and Corporate Development<BR>
Fax:  (650) 852-8378
</FONT></TD>
</TR>
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<BR>


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<font size=2>59</font></p>
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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">with a copy to (which shall not constitute notice):<BR>
<BR>
Meitar Liquornik Geva &amp; Leshem Brandwein<BR>
16 Abba Hillel Silver Road<BR>
Ramat-Gan 52506<BR>
Israel<BR>
<U>Attention</U>: Clifford M. J. Felig<BR>
<U>Telecopy</U>: 972-3-610-3111 </FONT>
</TD>
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<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If to the Company or a Selling
Subsidiary: </FONT></P>



















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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Nur Macroprinters Ltd.<BR>
c/o: Fortissimo Capital Fund GP<BR>
14 Hamelacha Street<BR>
Rosh Haayin, 48091<BR>
Israel<BR>
Attention: Yuval Cohen<BR>
Fax: 972-3-915-7411<BR>
<BR>
with a copy to (which shall not constitute notice):<BR>
<BR>
Gornitzky &amp; Co.<BR>
Rothschild 45, Beit Zion<BR>
Tel Aviv, 65784<BR>
Israel<BR>
Attention: Chaim Friedland and Benjamin Waltuch<BR>
Fax: 972-3-560-6555
</FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Captions;
Currency</U>. The article and section captions herein and the table of contents hereto
are for convenience of reference only, do not constitute part of this Agreement and will
not be deemed to limit or otherwise affect any of the provisions hereof. Unless otherwise
specified, all references herein to numbered articles and sections are to articles and
sections of this Agreement and all references herein to exhibits or schedules are to
exhibits or schedules to this Agreement. Unless otherwise specified, all references
contained in any Transaction Document, in any exhibit or schedule referred to therein or
in any instrument or document delivered pursuant thereto to dollars or &#147;$&#148; shall
mean United States Dollars.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire
Document</U>. This Agreement and the other Transaction Documents collectively constitute
the entire agreement between the parties with respect to the subject matter hereof and
this Agreement and the other Transaction Documents supersede all prior negotiations,
agreements and understandings of the parties of any nature, whether oral or written,
relating thereto.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
If any provision of any Transaction Document or the application thereof to any Person or
circumstance is determined by a court of competent jurisdiction to be invalid, void or
unenforceable, the remaining provisions thereof, or the application of such provision to
Persons or circumstances other than those as to which it has been held invalid or
unenforceable, shall remain in full force and effect and shall in no way be affected,
impaired or invalidated thereby.  </FONT></P>

<p align=center>
<font size=2>60</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.9 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
Law; Jurisdiction</U>. This Agreement shall be governed by and construed in accordance
with the laws of the State of Israel, without giving effect to the principles thereof
relating to conflict of laws, applicable to agreements made and to be performed within
such state. The competent courts of Tel Aviv-Jaffa shall have exclusive jurisdiction to
hear all disputes arising in connection with this Agreement and no other courts shall
have any jurisdiction whatsoever with respect to such disputes.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.10 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Schedules
and Exhibits; Disclosure</U>. All schedules and exhibits attached hereto are hereby
incorporated in and made a part of this Agreement as if set forth in full herein.
Capitalized terms used in any other Transaction Document or in the schedules or exhibits
hereto or thereto but not otherwise defined therein will have the respective meanings
assigned to such terms in this Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.11 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.
This Agreement may be executed in separate counterparts, each such counterpart being
deemed to be an original instrument, and all such counterparts will together constitute
the same agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.12 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Specific
Performance</U>. In the event of any actual or threatened default in, or breach of, any
of the terms, conditions and provisions of any Transaction Document, the party or parties
who are or are to be thereby aggrieved will have the right of specific performance and
injunctive relief giving effect to its or their rights under such Transaction Document,
in addition to any and all other rights and remedies at law or in equity, and all such
rights and remedies will be cumulative. The parties agree that any such breach or
threatened breach would cause irreparable injury, that the remedies at law for any such
breach or threatened breach, including monetary damages, are inadequate compensation for
any loss and that any defense in any action for specific performance that a remedy at law
would be adequate is waived.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.13 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Construction;
Interpretation</U>. The parties have participated jointly in the negotiation and drafting
of this Agreement. In the event an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the parties and no
presumption or burden of proof shall arise favoring or disfavoring any party by virtue of
the authorship of any of the provisions of this Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.14 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Other
Remedies</U>. Except as otherwise provided herein (including as set forth in <U>Section
8.2(j)(1)</U>), any and all remedies herein expressly conferred upon a party will be
deemed cumulative with and not exclusive of any other remedy conferred hereby, or by law
or equity upon such party, and the exercise by a party of any one remedy will not
preclude the exercise of any other remedy.  </FONT></P>

<a name=zk310></a>

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<H1 ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 10. DEFINITIONS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;10.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U>.
For purposes of this Agreement, the following terms shall have the following meanings: </FONT> </P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Acquired
Assets</U>" means all of the assets required for the Business, including without
limitation, the following: </FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Transferred Intellectual Property (whether or not included in the Financial Statements); </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
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<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(2) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Business Information; </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(3) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
rights, benefits and privileges under the Acquired Contracts; </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>61</font></p>
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<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(4) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
franchises, permits, licenses, agreements, waivers and authorizations from           or
with any Governmental Authority relating to the Business, to the extent
          transferable;  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(5) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Inventory (whether or not included in the Financial Statements);  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(6) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
assets included on the Financial Statements, including, without limitation,           all
prepaid expenses, other than prepaid expenses of directors and officers
          liability insurance;  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Fixtures and Equipment (whether or not included in the Financial           Statements);  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(8) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
accounts and other receivables of the Company and any of the Company
          Subsidiaries (whether or not included in the Financial Statements); all claims,
          causes of action, choices in action, rights of recovery and rights of set off
          pertaining to or arising out of the Acquired Assets or the Assumed Liabilities;  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(9) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
assets related to the Business acquired by any of the Selling Group           Companies
subsequent to the date hereof;  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(10) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
shares and other equity interests of the Company in those Company           Subsidiaries
set forth in <U>Schedule 10.1(a)(10)</U>;  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(11) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of the goodwill associated with the Business<B></B>and the Trademarks           included
in the Transferred Intellectual Property;  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(12) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
bank accounts of the Acquired Subsidiaries; and  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(13) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
and all rights to or arising from any of the foregoing, however, for the
          avoidance of doubt, such rights shall not include any rights that constitute or
          that are derived from an Excluded Asset.  </FONT></P></TD>
</TR>
</TABLE>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
term &#147;Acquired Assets&#148; does not include (i) the shares of Company or the Selling
Subsidiaries, (ii) Intercompany Indebtedness, and (iii) cash, Cash Equivalents and
Restricted Deposits of the Company and the Company Subsidiaries, including those set forth
on the Financial Statements. Cash shall be determined net of amounts necessary to cover
outstanding checks (which are not otherwise stale) that have been mailed or otherwise
delivered by the Company or a Company Subsidiary but have not cleared (such amount, the
&#147;<U>Float</U>&#148;).&nbsp; </FONT></P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Acquired
Contracts</U>&#148; means (i) all agreements currently in           effect for the
licensing of any of the Products to customers, and all other           agreements,
contracts and arrangements relating to the Business or such other           agreements
and contracts relating to the Business entered into after the date           hereof and
prior to the Closing with the written consent of the Buyer, (ii) all           other
agreements and contracts in effect as of the Closing that are related           directly
or indirectly to the Acquired Assets or the Business (the           &#147;<U>Other </U><U>Contracts</U>&#148;),
(iii) the Amendment Required           Contracts, and (iv) the Consent Required
Contracts, provided that (a) any           liabilities under any of the Acquired
Contracts will be assumed only to the           extent of (x) the amounts of such
liabilities that are either included in the           Financial Statements or
specifically listed in the Assumed Liabilities as           described below or (y)
obligations and liabilities incurred by the Buyers under           such Acquired
Contracts after the Closing Date, but excluding, for the avoidance           of doubt,
all Excluded Liabilities, and (b) any Other Contract of which the           Buyers are
made aware after the Closing Date shall become an Acquired Contract           subject to
the specific consent of the Buyer. Notwithstanding anything in the           foregoing
sentence to the contrary, the Company&#146;s directors and           officers&#146; insurance
policy shall not constitute an Acquired Contract.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Acquired
Subsidiaries</U>&#148; means those Company Subsidiaries listed           in <U>Schedule
10.1(a)(10)</U>.  </FONT></P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Action</U>&#148; means
any legal, administrative, governmental or           regulatory proceeding or other
action, suit, proceeding, claim, arbitration,           mediation, alternative dispute
resolution procedure, inquiry or investigation by           or before any arbitrator,
mediator, court or other Governmental Authority.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Additional
Asset</U>&#148; shall have the meaning as set forth in <U>Section 5.6(g)</U>.  </FONT></P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Additional
Buyers</U>&#148; has the meaning set forth in the preamble           to this Agreement.  </FONT></P></TD>
</TR>
</TABLE>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Affiliate</U>&#148; means
(i) each other member of such           individual&#146;s Family; and (ii) any Person or
entity that is directly or           indirectly Controlling, Controlled by or under
common Control of the subject           Person, such individual or any one or more
members of such individual&#146;s           Family.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agreement</U>&#148; means
this Asset Purchase Agreement, including all           Exhibits and Schedules hereto, as
the same may be amended, modified or           supplemented from time to time in
accordance with its terms.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Approved
Enterprise</U>&#148; shall have the meaning as set forth in <U>Section 3.10(m)</U>.  </FONT></P></TD>
</TR>
</TABLE>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Assignment
and Assumption Agreements</U>&#148; means one or more           Assignment and Assumption
Agreements to be executed by the Buyers and the           Company (or the Selling
Subsidiaries) at the Closing in the form of <U>Exhibit  A</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Assumed
Liabilities</U>&#148; means (i) all Liabilities of the Company           that are related
to the Business other than Excluded Liabilities, including,           without limitation,
the following:  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
obligations and liabilities of the Selling Group Companies arising under the
          Acquired Contracts, whether absolute, accrued, contingent or otherwise, which
          obligations and liabilities are either (a) included in the Financial Statements
          but solely up to the amounts included in the Financial Statements, or (b) are
          obligations and liabilities incurred by the Buyers under such Acquired
Contracts           after the Closing Date, but excluding, for the avoidance of doubt,
all Excluded           Liabilities, or (c) are other liabilities included in the
definition of           &#147;Assumed Liabilities&#148;;  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>63</font></p>
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<page>

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<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(2) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all liabilities
and obligations of the Selling Group Companies for compensation           and benefits to
the Continuing Business Employees that are either (a) included           in the Financial
Statements but solely up to the amounts included in the           Financial Statements,
or (b) incurred after the date hereof and prior to the           Closing Date in the
ordinary course of business , and which in each case, the           funds with respect
thereto have been transferred and assigned to the Buyers,           provided however,
that &#147;Assumed Liabilities&#148; shall not include (x) any           obligation to
contribute any amounts to any Company Benefit Plan or to continue           any existing
Company Benefit Plan, or (y) any other obligation under currently           existing
Company Benefit Plans, except to the extent set forth in clauses (a)           and (b) of
this subsection (2) or in subsection (3) below;  </FONT></P></TD>
</TR>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Basket
Amount</U>&#148; shall have the meaning as set forth in <U>Section 8.2</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business</U>&#148; shall
mean all of the business of the Company,           including all of the Company&#146;s
business conducted through the Company           Subsidiaries, as of or prior to the date
hereof and as of and prior to the           Closing.  </FONT></P></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business
Day</U>&#148; means any day other than a Saturday, Sunday or           any other day on
which banking institutions in the State of New York or the           State of Israel are
not open for the transaction of normal banking business.  </FONT></P></TD>
</TR>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business
Employees</U>&#148; shall mean those Selling Group Company           Employees to whom
the Buyers have made offers of employment pursuant to an Offer           Letter.  </FONT></P></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business
Information</U>&#148; means all books, records, files and           documentation of the
Selling Group Companies in any media prepared, used or held           for use by any
Person, related directly or indirectly, in whole or in part, to           the Business,
the Acquired Assets or the Assumed Liabilities, including but not           limited to,
all business records, audit records, tangible data, computer           software,
electronic media and management information systems, disks, files,           customer
lists, supplier lists, blueprints, specifications, designs, drawings,           operation
or maintenance manuals, bids, personnel records, policy and           instruction manuals
and directories, all Products documentation, invoices,           credit records, sales,
market and promotional literature of any kind, tax,           financial and accounting
records and all other books and records relating to the           Acquired Assets, the
Assumed Liabilities and the Business. Notwithstanding the           foregoing, Business
Information shall not include such documents and records           that relate
exclusively to Excluded Assets or Excluded Liabilities.  </FONT></P></TD>
</TR>
</TABLE>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business
Insurance Policies</U>&#148; shall have the meaning as set           forth in <U>Section
5.6(d)</U>.  </FONT></P></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Buyer</U>&#148; or
&#147;<U>Buyers</U>&#148; has the meaning set forth           in the preamble to this
Agreement.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Cash</U>&#148; means
cash, short-term investments, long-term           investments and Cash Equivalents all
measured in accordance with GAAP and shall           exclude any amounts necessary to
cover outstanding checks (which are not           otherwise stale) that have been mailed
or otherwise delivered by the Company or           a Company Subsidiary but have not
cleared.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>64</font></p>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Cash
Equivalents</U>&#148; means:  </FONT></P></TD>
</TR>
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<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
evidence of third-party Indebtedness to the Company with a maturity of one           year
or less issued or directly and fully guaranteed or insured by an Approved
          Jurisdiction or any agency or instrumentality thereof, <I>provided </I>that the
          full faith and credit of an Approved Jurisdiction (or similar concept under the
          laws of the relevant Approved Jurisdiction) is pledged in support thereof;  </FONT></P></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;checks,
deposits, certificates of deposit or acceptances with a maturity of one           year or
less of any institution having combined capital and surplus and           undivided
profits (or any similar capital concept) of not less than $100 million           (or the
equivalent in another currency);  </FONT></P></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;commercial
paper with a maturity of one year or less issued by a corporation           (other than
an Affiliate of the Company) organized under the laws of an Approved
          Jurisdiction and rated at least &#147;A-1&#148; by Standard &amp; Poor&#146;s
          Ratings Service or &#147;P-1&#148; by Moody&#146;s Investors Service; and  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;repurchase
agreements and reverse repurchase agreements relating to marketable           direct
obligations issued or unconditionally guaranteed by the government of an
          Approved Jurisdiction maturing within one year from the date of acquisition.  </FONT></P></TD>
</TR>
</TABLE>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the avoidance of doubt, an investment in an investment fund which invests substantially
all of its assets in&nbsp;investments described above in this definition or which is
itself rated at least &#147;AAA&#148; or &#147;A-1&#148; by Standard &amp; Poor&#146;s
Ratings Service or &#147;Aaa&#148; or &#147;P-1&#148; by Moody&#146;s Investors Service
constitutes a Cash Equivalent. For the purposes of this definition of &#147;Cash
Equivalents&#148;, &#147;Approved Jurisdiction&#148; means the United States of America,
the State of Israel, the United Kingdom, Switzerland and any member nation of the European
Union as presently constituted. </FONT></P>

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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Chemical
Control Laws</U>&#148; means all Laws that govern the           manufacture, processing,
sale or distribution, import or export of Chemical           Products, including, by way
of example and without limitation, inventory,           pre-market notification
requirements, and other requirements imposed in the           United States under the
Toxic Substances Control Act, 15 U.S.C. Section 2601 et           seq. and in the
European Union under the Dangerous Substances Directive 67/548/           EEC and
European Community Regulation on chemicals and their safe use (EC           1907/2006).  </FONT></P></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Chemical
Products</U>&#148; means products manufactured, processed,           sold, or distributed
by the Company that are chemical substances, or that           contain or are comprised
of chemical substances, preparations or mixtures of           chemical substances,
including but not limited to inks, cleaning solvents,           maintenance fluids and
media coatings; but excluding raw materials that are           embedded in the Company&#146;s
printers.  </FONT></P></TD>
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</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(w)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing</U>&#148; shall
have the meaning as set forth in <U>Section           2.3</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing
Cash Balance</U>&#148; shall have the meaning as set forth in <U>Section 2.2</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing
Date</U>&#148; shall have the meaning as set forth in <U>Section 2.3</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>


<p align=center>
<font size=2>65</font></p>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(z)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing
Net Debt</U>&#148; shall have the meaning as set forth in <U>Section 2.2</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(aa)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing
Cash Statement</U>&#148; shall have the meaning as set forth in <U>Section 2.2</U>.  </FONT></P></TD>
</TR>
</TABLE>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(bb)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>COBRA</U>&#148; means
the Consolidated Omnibus Budget Reconciliation           Act of 1985.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(cc)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Code</U>&#148; means
the U.S. Internal Revenue Code of 1986, as           amended.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(dd)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company</U>&#148; has
the meaning set forth in the preamble to this           Agreement.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ee)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company
Benefit Plan</U>&#148; shall have the meaning as set forth in <U>Section 3.16</U>.  </FONT></P></TD>
</TR>
</TABLE>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ff)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company
Disclosure Schedule</U>&#148; shall have the meaning as set           forth in <U>ARTICLE
3</U>.  </FONT></P></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(gg)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company
ERISA Affiliate</U>&#148; shall have the meaning as set forth           in <U>Section 3.16</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(hh)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company
Escrow Agreements</U>&#148; shall have the meaning as set forth           in <U>Section
3.10</U>.  </FONT></P></TD>
</TR>
</TABLE>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company
Intellectual Property Rights</U>&#148; means any Intellectual           Property Rights
that are owned by or licensed to the Company or a Company           Subsidiary.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(jj)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company
Leases</U>&#148; shall have the meaning as set forth in <U>Section 3.9</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(kk)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company
Options</U>&#148; means options to purchase shares of the           Company granted and
those obligations to grant such options to employees,           consultants or directors
set forth on <U>Section 3.16(a) of the Company           Disclosure </U><U>Schedule</U> under
or subject to the terms of the Company           Benefit Plan or pursuant to other
specific agreements approved by the board of           directors of the Company.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ll)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company
Permits</U>&#148; shall have the meaning as set forth in <U>Section 3.14</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(mm)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company
Registered Intellectual Property Rights</U>&#148; means           Registered Intellectual
Property Rights owned by the Company or a Company           Subsidiary.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(nn)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company
Reports</U>&#148; shall have the meaning as set forth in <U>Section 3.4(a)</U>.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(oo)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company
Source Code</U>&#148; means, collectively, any software or any           material portion
or aspect of the software source code, or any material           proprietary information
or algorithm contained in or relating to any software           source code, of any
Company Intellectual Property Rights or any product or           technology currently
under development by Company or any Company Subsidiary.  </FONT></P></TD>
</TR>
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<p align=center>
<font size=2>66</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(pp)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company
Subsidiary</U>&#148; or &#147;<U>Company Subsidiaries</U>&#148;          shall have the
meaning as set forth in <U>Section 3.1</U>.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(qq)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consents</U>&#148; means
consents, approvals, requirements, exemptions,           orders, waivers, allowances,
novations, authorizations, declarations, filings,           registrations and
notifications.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(rr)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consent
Required Contracts</U>&#148; shall mean the Contracts related           to the Business
identified on <U>Schedule&nbsp;6.2(g)</U>.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ss)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consultants</U>&#148; means
the consultants, contractors and service           providers, whether individuals or
entities, engaged by the Selling Group           Companies on the date hereof and listed
in <U>Section 3.16(m) of the Disclosure </U><U>Schedule</U>.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(tt)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consulting
Agreement</U>&#148; means, with respect to the Selling Group           Companies, each
consulting agreement as to which there are unsatisfied           obligations (contingent
or otherwise) between the Selling Group Companies and           any Consultants, as to
which unsatisfied obligations (contingent or otherwise)           of the Selling Group
Companies are outstanding.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(uu)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Continuing
Business Employees</U>&#148; shall mean any Business           Employee who either
becomes an employee of the Buyers (or an Affiliate thereof)           as a result of
accepting an offer of &#147;at-will&#148; employment from the           Buyers (or an
Affiliate thereof) pursuant to the terms of an Offer Letter, or           otherwise
agrees in writing to remain an employee of an Acquired Subsidiary post           Closing.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(vv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Control</U>&#148; (including,
with correlative meanings, the terms           &#147;Controlling&#148;, &#147;Controlled
by&#148; and &#147;under common           Control with&#148;), as used with respect to
any Person, means the possession,           directly or indirectly, of the power to
direct or cause the direction of the           management and policies of such Person,
whether through ownership of voting           securities or partnership interests, by
contract or otherwise.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ww)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Contracts</U>&#148; means,
with respect to any Person, all agreements,           undertakings, contracts,
obligations, arrangements, promises, understandings and           commitments (whether
written or oral and whether express or implied) (i) to           which such Person is a
party, (ii) under which such Person has any rights, (iii)           under which such
Person has any Liability or (iv) by which such Person, or any           of the assets or
properties owned or used by such Person, is bound, including           all license
agreements, manufacturing agreements, supply agreements, purchase           orders, sales
orders, distributor agreements, sales representation agreements,           warranty
agreements, indemnity agreements, service agreements, employment and           consulting
agreements, guarantees, credit agreements, notes, mortgages, security
          agreements, financing leases, leases (including Leases), comfort letters,
          derivative agreements, confidentiality agreements, joint venture agreements,
          partnership agreements, binding open bids, powers of attorney, binding
memoranda           of understanding and binding letters of intent, including, in each
case, all           amendments, modifications and supplements thereto and waivers and
consents           thereunder.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(xx)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Copyrights</U>&#148; means
any copyrights, copyrights registrations and           applications therefor, and mask
works and mask work registrations and           applications therefor, and all other
rights corresponding thereto.  </FONT></P></TD>
</TR>
</TABLE>
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<p align=center>
<font size=2>67</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(yy)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Dispute
Period</U>&#148; shall have the meaning as set forth in <U>Section 2.2</U>.  </FONT></P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(zz)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Domain
Names</U>&#148; means the domain names used by, or obtained for           use by any
Selling Group Company in the course of carrying on its business.  </FONT></P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(aaa)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Draft
Closing Cash Statement</U>&#148; shall have the meaning as set           forth in <U>Section
2.2</U>.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(bbb)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Employment
Agreement</U>&#148; means, with respect to the Selling Group           Companies, each
employment agreement as to which there are unsatisfied           obligations (contingent
or otherwise) of the Selling Group Companies or any           Company ERISA Affiliate and
each signing bonus, relocation, repatriation,           expatriation, or similar
agreement between the Selling Group Companies or any           Company ERISA Affiliate
and any Selling Group Company Employee, as to which           unsatisfied obligations
(contingent or otherwise) of the Selling Group Companies           or any Company ERISA
Affiliate are outstanding.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ccc)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental
Laws</U>&#148; means all federal, state, local and           foreign Laws issued,
promulgated, approved or entered relating to environmental           matters, the
protection of the environment, the protection of human health and           safety, or
exposure to Hazardous Materials, including without limitation           Chemical Control
Laws, workplace health and safety Laws, packaging and labeling           Laws and Laws
relating to the Release or threatened Release of Hazardous           Materials to the
environment (including, without limitation, ambient air,           surface water, ground
water, land surface or subsurface strata) or otherwise           relating to the
presence, manufacture, processing, distribution, use, treatment,           storage,
disposal, transport or handling of Hazardous Materials.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ddd)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental
Order</U>&#148; means any order, judgment, injunction,           award, decree or writ
relating to environment matters or imposed pursuant to           Environmental Laws.  </FONT></P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(eee)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental
Permits</U>&#148; means all Permits required by or issued           pursuant to
applicable Environmental Laws.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(fff)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ERISA</U>&#148; shall
have the meaning as set forth in <U>Section           3.16</U>.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ggg)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Escrow
Agent</U>&#148; means the Person selected by the Buyer and the           Company to act
as escrow agent under the Escrow Agreement.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(hhh)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Escrow
Agreement</U>&#148; means an escrow agreement by and among the           Buyers, the
Company and the Escrow Agent in substantially the form of <U>Exhibit           C</U> hereto.  </FONT></P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Escrow
Amount</U>&#148; shall have the meaning as set forth in <U>Section 2.1(b)</U>.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(jjj)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Escrow
Fund</U>&#148; shall have the meaning as set forth in <U>Section           8.2</U>.  </FONT></P></TD>
</TR>
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<p align=center>
<font size=2>68</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(kkk)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Escrow
Period</U>&#148; shall have the meaning as set forth in <U>Section 8.2</U>.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(lll)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Estimated
Closing Net Debt</U>&#148; shall have the meaning as set           forth in <U>Section 2.2</U>.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(mmm)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exchange
Act</U>&#148; shall have the meaning as set forth in <U>Section 3.4(a)</U>.   </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(nnn) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Excluded
Assets</U>&#148; shall have the           meaning as set forth in <U>Section 1.1</U>. </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ooo)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Excluded
Liabilities</U>&#148; shall have the meaning as set forth in <U>Section 1.2(b)</U>.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ppp)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Family</U>&#148; of
an individual includes (i) such individual, (ii)           the individual&#146;s spouse,
siblings, or ancestors, (iii) any lineal           descendent of such individual, or
their siblings, or ancestors or (iv) a trust           for the benefit of any of the
foregoing.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(qqq)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Final
Closing Net Debt</U>&#148; shall have the meaning as set forth in <U>Section 2.2</U>.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(rrr)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Financial
Statements</U>&#148; shall have the meaning as set forth in <U>Section 3.4</U>.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(sss)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Fixtures
and Equipment</U>&#148; means all office equipment, telecom           equipment and any
material or machines, as well as all furniture, fixtures,           furnishings,
leasehold improvements, vehicles, computer and computer related           hardware,
equipment (including research and development equipment) and other           tangible
personal property used, owned or leased by the Selling Group Companies,           whether
or not related to the Business, except to the extent included in the           Excluded
Assets, provided that any of the foregoing that is leased by Selling           Group
Companies is subject to the terms and conditions of the applicable lease           to the
extent such lease was provided to the Buyer and is referred to in <U>Section 3.9(a) of
the Disclosure Schedule</U>.  </FONT></P></TD>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ttt)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Formation
Documents</U>&#148; shall have the meaning as set forth in <U>Section 3.1</U>.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(uuu)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Funds</U>&#148; shall
have the meaning as set forth in <U>Section           5.13(e)</U>.  </FONT></P></TD>
</TR>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(vvv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>GAAP</U>&#148; shall
have the meaning as set forth in <U>Section           3.4</U>.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(www)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>General
Assignments and Bills of Sale</U>&#148; shall mean those           certain agreement(s)
executed by the Company and the Selling Subsidiaries and           delivered to the
Buyers at the Closing, the form of which is attached hereto as <U>Exhibit&nbsp;D</U>.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(xxx)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Governmental
Authority</U>&#148; means, in any jurisdiction, including           the State of Israel
and the United States, any (i)&nbsp;national, federal,           state, local, foreign or
international government, (ii)&nbsp;court, arbitral or           other tribunal, (iii)&nbsp;governmental
or quasi-governmental authority of any           nature (including any political
subdivision, instrumentality, branch,           department, official or entity) or (iv)&nbsp;agency,
commission, authority or           body exercising, or entitled to exercise, any
administrative, executive,           judicial, legislative, police, regulatory or taxing
authority or power of any           nature.  </FONT></P></TD>
</TR>
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<p align=center>
<font size=2>69</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(yyy)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Grants</U>&#148; shall
have the meaning as set forth in <U>Section           3.19</U>.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(zzz)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Hazardous
Materials</U>&#148; means all hazardous substances, wastes,           extremely hazardous
substances, hazardous materials, hazardous wastes, hazardous           constituents,
solid wastes, special wastes, toxic substances, pollutants,           contaminants,
petroleum or petroleum derived substances or wastes, and related           materials,
including without limitation any such materials defined, listed,           regulated or
identified under or described in any Environmental Laws (including,           by way of
example and without limitation, spent solvents, PCBs,           urea-formaldehyde, radon,
lead or lead based paints or materials, asbestos and           asbestos containing
materials).  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(aaaa)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>HSR
Act</U>&#148; means the Hart-Scott-Rodino Antitrust Improvements           Act of 1976,
as amended.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(bbbb)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Incorporated
Open Source Software</U>&#148; shall have the meaning as           set forth in <U>Section
3.10</U>.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(cccc)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indemnified
Party</U>&#148; shall have the meaning as set forth in <U>Section 8.2</U>.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(dddd)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indebtedness</U>&#148; means
(i)&nbsp;all mortgages, indentures, loans           or credit agreements, security
agreements or other agreements or instruments           relating to the borrowing of
money or extension of credit or for the deferred           purchase price of property or
services (other than current trade liabilities           incurred in the ordinary course
of business and payable in accordance with           customary practices) and other than
Intercompany Indebtedness, (ii)&nbsp;any           other indebtedness which is evidenced
by a note, bond, debenture or similar           instrument, (iii)&nbsp;all obligations
under conditional sale or other title           retention agreements relating to property
purchased, (iv)&nbsp;capital lease or           sale-leaseback obligations, (v)&nbsp;all
liabilities secured by any Lien on any           property, and (vi)&nbsp;any guarantee or
assumption of any of the foregoing in           clauses (i) through (v), or guaranty of
minimum equity, capital, net worth,           profitability or income or any make-whole
or similar obligation with respect to           itself, its subsidiaries or affiliates,
or a third party. Notwithstanding the           above, the definition of Indebtedness
shall exclude those Acquired Contracts           listed on <U>Schedule 10.1(dddd)</U>.  </FONT></P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(eeee)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Intellectual
Property</U>&#148; means any or all of the following:           (i)&nbsp;Copyrights
whether registered or unregistered, moral rights, works of           authorship
including, without limitation, software programs, computer programs,           source
code and executable code, whether embodied in software, firmware or           otherwise,
documentation, designs, files, records, data and mask works,           (ii)&nbsp;Patents
whether registered or unregistered, inventions (whether or not           patentable),
know how, improvements, technology, methods, processes, tools and           designs, (iii)&nbsp;proprietary
and confidential information, trade secrets and           know how, (iv)&nbsp;databases,
data compilations and collections and technical           data, (v)&nbsp;Trademarks
whether registered or unregistered, (vi)&nbsp;domain           name registrations, web
addresses and sites, and (vii) all other intellectual           property (whether
registered or unregistered) and all applications and economic           rights of authors
and inventors, however denominated, for any such rights,           anywhere in the world.  </FONT></P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ffff)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Intellectual
Property Rights</U>&#148; means all rights in any           Intellectual Property.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(gggg)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Intercompany
Indebtedness</U>&#148; means any Indebtedness between any           of the Acquired
Subsidiaries on one hand, and any of the other Selling Group           Companies on the
other hand.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(hhhh)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Inventory</U>&#148; means
all inventory held for resale and all other           raw materials, work in process,
finished products, spares, wrapping, supply and           packaging items related to the
Business, except to the extent included in the           Excluded Assets.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iiii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Inventory
Jurisdictions</U>&#148; means each and every country, region           or province in
which any Chemical Product is or has been sold, whether by the           Company or
otherwise, and which has Laws that govern the sale or distribution,           import or
export of Chemical Products (including, by way of example and without
          limitation, inventory, pre-market notification requirements, and other
          requirements imposed in the United States under the Toxic Substances Control
          Act, 15 U.S.C. Section 2601 et seq. and in the European Union under the
          Dangerous Substances Directive 67/548/EEC and European Community Regulation on
          chemicals and their safe use (EC 1907/2006)), including, without limitation,
the           United States, the member states of the European Union, the EEA States, New
          Zealand, Australia, Japan, Philippines, India, Republic of Korea, Canada,
          Switzerland, the People&#146;s Republic of China, and the Canadian province of
          Ontario.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(jjjj)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Investment
Center</U>&#148; shall have the meaning as set forth in <U>Section 3.2</U>.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(kkkk)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>IRS</U>&#148; means
the United States Internal Revenue Service.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(llll)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Israeli
Companies Law</U>&#148; means the Israeli Companies Law &#150;          1999, together
with the rules and regulations promulgated thereunder.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(mmmm)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ITA</U>&#148; shall
have the meaning as set forth in <U>Section           5.13(e)</U>.  </FONT></P></TD>
</TR>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(nnnn)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Key
Employees</U>&#148; means those employees listed in <U>Schedule           6.2(i)</U>.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(oooo)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Knowledge</U>&#148; means
with respect to any fact, circumstance, event           or other matter in question,
actual knowledge, or, if the Person should have           become aware of such fact or
matter after making due inquiry in the course of           performing his or her duties.
Knowledge of the Company shall be deemed to be the           Knowledge of the Company&#146;s
CEO, CFO and any other person reporting directly           to the Company&#146;s CEO. For
the purpose of this definition, due inquiry shall           not be deemed to require the
performance of any patent search.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(pppp)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Laws</U>&#148; means
all laws, statutes, constitutions, treaties,           rules, regulations, policies,
standards, directives, ordinances, codes,           judgments, rulings, orders, writs,
decrees, stipulations, injunctions and           determinations of all Governmental
Authorities.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(qqqq)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Leases</U>&#148; means
all leases, subleases, licenses, rights to           occupy or use and other Contracts
with respect to real, personal or mixed           property, including, in each case, all
amendments, modifications and supplements           thereto and waivers and consents
thereunder.  </FONT></P></TD>
</TR>
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<p align=center>
<font size=2>71</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(rrrr)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Liability</U>&#148; means
any and all claims, debts, liabilities,           obligations and commitments of whatever
nature, fixed, absolute or contingent,           matured or unmatured, disputed or
undisputed, accrued or unaccrued, liquidated           or unliquidated, secured or
unsecured, joint or several or due or to become due,           vested or unvested,
executory, determined, determinable or otherwise and           whenever or however
arising (including those arising out of any Contract or           tort, whether based on
negligence, strict liability or otherwise) regardless of           whether the same would
be required by GAAP to be reflected as a liability in           financial statements or
disclosed in the notes thereto.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ssss)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Licenses</U>&#148; means
all Consents, licenses, permits, certificates,           variances, exemptions,
franchises and other approvals or authorizations issued,           granted, given,
required or otherwise made available by any Governmental           Authority.  </FONT></P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(tttt)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lien</U>&#148; means
any charge, claim, community property interest,           equitable interest, lien,
encumbrance, option, proxy, pledge, security interest,           mortgage, right of first
refusal, right of preemption, transfer or retention of           title agreement, or
restriction by way of security of any kind or nature,           including any restriction
on use, voting, transfer, receipt of income or           exercise of any other attribute
of ownership.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(uuuu)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loss</U>&#148; or
&#147;<U>Losses</U>&#148; shall have the meaning as           set forth in <U>Section 8.2</U>.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(vvvv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Material
Adverse Effect</U>&#148; means any effect, change, event,           circumstance or
condition which, individually or in the aggregate, has or could           reasonably be
expected to have a material adverse effect on (A)&nbsp;the           business, assets
(including intangible assets), cash flows, results of           operations or financial
condition of the Company and the Company Subsidiaries           taken together as a
whole, in each case whether or not covered by insurance,           (B)&nbsp;the ability
of the Company to consummate the Transaction.  </FONT></P></TD>
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</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(wwww)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>NDA</U>&#148; shall
have the meaning as set forth in <U>Section 5.3</U> </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(xxxx)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>NIS</U>&#148; means
New Israeli Shekel, the lawful currency of the           State of Israel.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(yyyy)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Negative
Withheld Amount</U>&#148; shall have the meaning as set forth           in <U>Section 2.2</U>.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(zzzz)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Notice
of Dispute</U>&#148; shall have the meaning as set forth in <U>Section 2.2</U>.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(aaaaa)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>OCS</U>&#148; shall
have the meaning as set forth in <U>Section           3.2</U>.  </FONT></P></TD>
</TR>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(bbbbb)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Offer
Letter</U>&#148; shall mean an offer letter of           &#147;at-will&#148; employment
on the Buyer&#146;s standard form.  </FONT></P></TD>
</TR>
</TABLE>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ccccc)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Officer&#146;s
Certificate</U>&#148; shall mean a certificate signed by           any Indemnified Party
(or in the case of an Indemnified Party that is not a           natural Person, an
officer thereof): (i) stating that such Indemnified Party has           paid, sustained,
incurred, or accrued, or reasonably anticipates that it will           have to pay,
sustain, incur, or accrue Losses, and (ii) specifying in reasonable           detail the
individual items of Losses included in the amount so stated and the           basis for
such Losses or anticipated Losses, and the nature of the           misrepresentation or
breach of warranty to which such item is related.  </FONT></P></TD>
</TR>
</TABLE>
<BR>


<p align=center>
<font size=2>72</font></p>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ddddd)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Ordinance</U>&#148; shall
mean the Israeli Income Tax Ordinance [New           Version] &#150; 1961.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(eeeee)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Patents</U>&#148; means
all United States, European, Israeli and other           patents, designs, ornamental and
utility models and applications therefor and           all reissues, divisions,
re-examinations, renewals, extensions, provisionals,           continuations and
continuations-in-part thereof, and equivalent or similar           rights anywhere in the
world in inventions and discoveries including without           limitation invention
disclosures.  </FONT></P></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(fffff)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permits</U>&#148; means
any permits, consents, licenses, certificates,           registrations, certificates of
occupancy or use, variances, orders, governmental           authorizations or approvals,
or any other permits.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ggggg)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted
Liens</U>&#148; shall have the meaning as set forth in <U>Section 3.9</U>.  </FONT></P></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(hhhhh)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Person</U>&#148; means
any individual, firm, partnership, joint           venture, trust, company, corporation,
limited liability entity, unincorporated           organization, estate or other entity
(including a Governmental Authority).  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iiiii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Positive
Withheld Amount</U>&#148; shall have the meaning as set forth           in <U>Section 2.2</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(jjjjj)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Products</U>&#148; means
the products listed in <U>Exhibit E</U>          hereto.  </FONT></P></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(kkkkk)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>PTO</U>&#148; means
the United States Patent and Trademark Office.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(lllll)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Purchase
Price</U>&#148; means an aggregate of US$ [117,500,000]           subject to adjustment
as set forth in <U>Section </U><U>2.2</U>, plus Value           Added Tax if applicable.  </FONT></P></TD>
</TR>
</TABLE>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(mmmmm)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registered
Intellectual Property Rights</U>&#148; means all registered           Patents (including
registrations and applications to register), Trademarks           (including
registrations and applications to register), Domain Names (including
          registrations and applications to register) and Copyrights (including
          registrations and applications to register).  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(nnnnn)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Release</U>&#148; means
any release, spill, emission, leaking, pumping,           injection, deposit, disposal,
discharge, dispersal, leaching or migration into           the environment or out of any
property, including the movement of any materials           through or in the air, soil,
surface water, ground water or property.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ooooo)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Remedial
Action</U>&#148; means all actions to (a) abate, contain,           ameliorate, clean up,
remove, treat, remediate or in any other way address any           Hazardous Materials;
(b) prevent the Release of Hazardous Materials so that they           do not migrate or
endanger or threaten to endanger human health or welfare or           the indoor or
outdoor environment; or (c) perform studies, investigations, and           pre- or
post-remedial monitoring and care; and (d) otherwise correct a condition           of
noncompliance with Environmental Laws.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ppppp)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Representatives</U>&#148; means,
with respect to any Person, such           Person&#146;s Affiliates, directors, officers,
employees, agents, consultants,           advisors and other representatives, including
legal counsel, accountants and           financial advisors.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>73</font></p>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(qqqqq)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Restricted
Deposits</U>&#148; means cash that is held at a bank that           cannot be accessed or
released and whose sole purpose is to secure and provide           the Company with a
credit line.  </FONT></P></TD>
</TR>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(rrrrr)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>SEC</U>&#148; shall
have the meaning as set forth in <U>Section           3.4(a)</U>.  </FONT></P></TD>
</TR>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(sssss)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities
Act</U>&#148; shall have the meaning as set forth in <U>Section 3.4(a)</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ttttt)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Selling
Group Companies</U>&#148; means the Company and the Company           Subsidiaries.  </FONT></P></TD>
</TR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(uuuuu)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Selling
Group Company Employees</U>&#148; means the employees,           including officers,
employed by the Selling Group Companies on the date hereof           and listed in <U>Section
3.16(a) of the Disclosure Schedule</U>.  </FONT></P></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(vvvvv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Software</U>&#148; shall
mean any and all computer software and code,           including assemblers, applets,
compilers, source code, object code, data           (including image and sound data),
design tools and user interfaces, in any form           or format, however fixed
including source code listings and documentation.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(wwwww)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Survival
Date</U>&#148; shall have the meaning as set forth in <U>Section 8.1</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(xxxxx)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Target
Net Debt</U>&#148; shall have the meaning as set forth in <U>Section 2.2</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(yyyyy)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tax</U>&#148; shall
have the meaning as set forth in <U>Section           3.10(a)</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(zzzzz)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tax
Return</U>&#148; shall have the meaning as set forth in <U>Section           3.10(a)</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(aaaaaa)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Technology</U>&#148; shall
mean all technology, information related to,           constituting or disclosing, any
technology, and all tangible copies and           embodiments of technology in any media,
including all know-how, show-how,           techniques, trade secrets, inventions
(whether or not patented or patentable),           algorithms, routines, Software, files,
databases, works of authorship or           processes  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(bbbbbb)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Termination
Date</U>&#148; shall have the meaning as set forth in <U>Section 7.1</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(cccccc)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Third
Party License Agreements</U>&#148; means the license agreements           listed in <U>Section
3.7(a)(1) of the </U><U>Disclosure Schedule</U> relating           to the Transferred
Intellectual Property.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(dddddd)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Trademarks</U>&#148; means
trademarks and service marks, trade names,           brand names, corporate names, logos,
slogans, trade dress, and other words,           designations, labels, symbols, designs,
colors, color combinations or product           configurations.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>74</font></p>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(eeeeee)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Trade
Practices Act</U>&#148; has the meaning set forth in <U>Section           3.2</U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ffffff)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Transaction</U>&#148; means
the transactions contemplated by the           Transaction Documents.  </FONT></P></TD>
</TR>
</TABLE>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(gggggg)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Transaction
Documents</U>&#148; means this Agreement and all other           instruments,
certificates and agreements delivered or required to be delivered           by Sellers,
the Company, the Buyers or any of their Representatives pursuant to           this
Agreement.  </FONT></P></TD>
</TR>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(hhhhhh)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Transaction
Expenses</U>&#148; means all fees and expenses incurred by           the Company in
connection with or related to this Agreement, the Transaction           Documents or the
Transaction. Transaction Expenses shall also include 50% of any           legal costs and
filing expenses for antitrust filings and approvals hereunder,           including by way
of reimbursement of Buyer for such expenses incurred by Buyer           or counsel
thereto with respect to any joint filings.  </FONT></P></TD>
</TR>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iiiiii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Transferred
Intellectual Property</U>&#148; means any and all of the           rights, titles and
interest in registered and unregistered Intellectual           Property, used, licensed
or owned by the Selling Group Companies, related           directly or indirectly, in
whole or in part, to the Business, including without           limitation all Company
Intellectual Property Rights, all Company Registered           Intellectual Property
Rights, Company Source Code, Software, provided that with           respect to any
Transferred Intellectual Property identified in <U>Section           3.11(c) </U><U>of
the Disclosure Schedule</U> as being subject to any Third           Party License
Agreement, then such Transferred Intellectual Property is subject           to the terms
and conditions of the relevant Third Party License Agreements.  </FONT></P></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(jjjjjj)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Transfer
Taxes</U>&#148; shall mean all sales, use, value-added, gross           receipts, excise,
registration, stamp, duty, transfer and other similar taxes           and governmental
fees.  </FONT></P></TD>
</TR>
</TABLE>
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<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(kkkkkk)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Transferred
Technology</U>&#148; shall mean all Technology owned or           transferable by the
Selling Group Companies related to the Business or the           Acquired Assets. To the
extent that any Software constitutes Transferred           Technology, all versions and
releases of such Software, and Software from which           such Software was derived,
in both source and object code form, shall be           included as Transferred
Technology.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(llllll)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Unsatisfied
Losses</U>&#148; shall have the meaning as set forth in <U>Section 8.2</U>.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(mmmmmm)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Withheld
Amount</U>&#148; shall have the meaning as set forth in <U>Section 2.2</U>.  </FONT></P></TD>
</TR>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(nnnnnn)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Withheld
Funds</U>&#148; shall have the meaning as set forth in <U>Section 8.2(e)</U>.  </FONT></P></TD>
</TR>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;10.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Terms
Generally.</U> The definitions in <U>Section&nbsp;10.1</U> shall apply equally to both
the singular and plural forms of the terms defined. Whenever the context may require, any
pronoun shall include the corresponding masculine, feminine and neuter forms. The words
&#147;include&#148;, &#147;includes&#148; and &#147;including&#148; shall be deemed to be
followed by the phrase &#147;without limitation&#148;. The words &#147;herein&#148;,
&#147;hereof&#148; and &#147;hereunder&#148; and words of similar import refer to this
Agreement (including the Exhibits and Schedules to this Agreement) in its entirety and
not to any part hereof unless the context shall otherwise require. All references herein
to Articles, Sections, Exhibits and Schedules shall be deemed references to Articles and
Sections of, and Exhibits and Schedules to, this Agreement unless the context shall
otherwise require. Unless the context shall otherwise require, any references to any
agreement or other instrument or statute or regulation are to it as amended and
supplemented from time to time (and, in the case of a statute or regulation, to any
successor provisions). Any reference to any supranational, national, federal, state,
local, or foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires otherwise. Any reference
in this Agreement to a &#147;day&#148; or a number of &#147;days&#148; (without explicit
reference to &#147;Business Days&#148;) shall be interpreted as a reference to a calendar
day or number of calendar days. If any action is to be taken or given on or by a
particular calendar day, and such calendar day is not a Business Day, then such action
may be deferred until the next Business Day.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date first above written. </FONT></P>




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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Nur Macroprinters Ltd.<BR><BR>
<BR>By:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>Title:</FONT></TD>
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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Hewlett-Packard Company<BR><BR>
<BR>By:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>Title:</FONT></TD>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#150; Signature Page
to Asset Purchase Agreement &#150; </FONT></P>


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