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Exhibit 4.16

AMENDED AND RESTATED

ASSET PURCHASE AGREEMENT

among

NOVA MEASURING
INSTRUMENTS LTD.

(Buyer)

and

HYPERNEX, INC.

(the
Corporation)

and

THE PERSONS LISTED ON
SCHEDULE 4(a)

(the
Stockholders)

dated

August 8, 2006



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TABLE OF CONTENTS

|    |                                                                               | Page
|--- | ----------------------------------------------------------------------------- | ----
|1.  | Acquisition Transaction                                                       | 1   
|2.  | Purchase Price; Payment to Employees                                          | 4   
|3.  | Employment Agreements, Agreements Not to Compete, Restricted Stock Agreements | 4   
|4.  | Representations, Warranties and Agreements of Corporation                     | 4   
|5.  | Representations, Warranties and Agreements of Buyer                           | 24  
|6.  | Continuation and Survival of Representations and Warranties                   | 26  
|7.  | Covenants of the Corporation and Stockholders Prior to Closing                | 26  
|8.  | Covenants of Buyer Prior to Closing                                           | 27  
|9.  | Conditions Precedent to Corporation's and Stockholders' Obligation to Close   | 27  
|10. | Conditions Precedent to Buyer's Obligation to Close                           | 28  
|11. | Termination                                                                   | 29  
|12. | Closing Date                                                                  | 30  
|13. | Deliveries by the Corporation at Closing                                      | 30  
|14. | Deliveries by Buyer at Closing                                                | 31  
|15. | Indemnification                                                               | 32  
|16. | Board Observer                                                                | 34  
|17. | Piggyback Registration Rights                                                 | 35  
|18. | Further Assurances                                                            | 35  
|19. | Dispute Resolution                                                            | 36  
|20. | Representative                                                                | 37  
|21. | Miscellaneous                                                                 | 37  



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# EXHIBITS:

Exhibit A-1
 Form of Employees Employment Agreement

Exhibit A-2 
Form of Employees Agreement Not to Compete

Exhibit
A-3(i)  Form of Employees Restricted Stock Agreement

Exhibit A-3(ii)
 Form of Managers Restricted Stock Agreement

Exhibit B 
Bill of Sale

Exhibit C
 Assignment of Registrable IP

- ii -

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# AMENDED AND RESTATED
ASSET PURCHASE AGREEMENT

This
AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (the Agreement), made this 8th
day of August, 2006 (the Execution Date), by and among Nova Measuring
Instruments Ltd., a company organized and existing under the laws of the State of Israel
(Buyer), HyperNex, Inc. a company organized and existing under the laws of the
State of Delaware (the Corporation) and the Persons (as hereinafter defined)
listed in Schedule 4(a) (each individually, a Stockholder and together
the Stockholders).

BACKGROUND

The
Corporation is engaged in the business of designing, developing, manufacturing and selling
metrology products and services which allow for rapid thin film phase identification, and
crystallographic texture and grain size data analysis (the Business).

The
Corporation, the Buyer and the Stockholders have entered into an Asset Purchase Agreement
(the Prior Agreement) dated April 24, 2006, for the acquisition of
substantially all the assets of the Corporation and the assumption of certain liabilities
of the Corporation all as set forth in the Prior Agreement.

The
parties now desire to amend and restate the Prior Agreement in its entirety such that
Buyer shall acquire substantially all the asset of the Corporation and assume certain
liabilities and the Corporation will sell and assign to the Buyer such assets and
liabilities all under the terms and conditions hereinafter set forth.

NOW
THEREFORE, in consideration of the premises and of the mutual covenants hereinafter set
forth, the parties hereto, intending to be legally bound, hereby agree as follows:

1.       Acquisition
Transaction.

| | (a)       Purchase
and Sale of Assets. On the Closing Date (as hereinafter           defined), upon
the terms and conditions herein set forth, Buyer agrees to           purchase from the
Corporation, and the Corporation agrees to sell, transfer,           convey and deliver
to Buyer, all of the Acquired Assets (as hereinafter defined)           in consideration
of the assumption of liabilities as provided in           subsection 1(c) and the
payment specified in Section 2. As used           herein, Acquired Assets shall
mean the Corporations right,           title to and interest in all of the
properties, rights and assets of the           Corporation, wherever situated, of every
kind, nature and description, tangible           or intangible, whether arising by
contract, law or otherwise, except for the           Excluded Assets (as hereinafter
defined), all as the same shall exist on the           Closing Date, including, without
limitation, the following:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)       all
account receivable due to the Corporation;
| | --------------------------------------------------------

| | (ii)       all
prepaid expenses and deposits;
| | ---------------------------------------------

| | (iii)       all
furniture, fixtures, equipment and other fixed assets and leasehold
          improvements used by the Corporation;
| | -----------------------------------------------------------------------------------------------------------------------------------



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| | (iv)       all
inventory and all work in production, preparation or process, in each case
          whether in the possession of the Corporation or third parties;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v)       all
lists, mailing lists, documents, information and records (whether in printed
          form or computer or other electronic media) related, in each case, to past,
          present and prospective customers of the Corporation;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vi)       copies
of all existing files, accounting records, correspondence, internal           reports and
contractual documents, including databases and records (whether in           printed form
or computer or other electronic media);
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vii)       all
promotional materials, market research studies, and sales media;
| | --------------------------------------------------------------------------------

| | (viii)       all
rights of the Corporation in the Corporation Intellectual Property (as
          hereinafter defined) including the right to the Corporations name
          HyperNex, Inc.;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ix)       all
rights, powers, privileges and claims arising under any contract, agreement,
          commitment or arrangement of any kind including all Company Agreements (as
          hereinafter defined);
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (x)       all
licenses, permits and approvals that are transferable or assignable;
| | ----------------------------------------------------------------------------------

| | (xi)       all
rights of the Corporation in the software, software systems, databases and
          database systems, whether owned, leased or licensed; and
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (xii)       all
of the goodwill and going concern value related to the Corporation and the
          Business.
| | --------------------------------------------------------------------------------------------------------------

| | (b)       Excluded
Assets. Notwithstanding any other provision of this Agreement,           the Acquired
Assets shall not include:
| | ------------------------------------------------------------------------------------------------------------------------------------

| | (i)       copies
of the Corporations company books and records of internal company
          proceedings, tax records and work papers that the Corporation required by law
to           retain;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii)       Corporations
charter, governing documents, corporate minute books and           stock transfer
records; and
| | -----------------------------------------------------------------------------------------------------------------------

| | (iii)       Corporations
rights under this Agreement.
| | ------------------------------------------------------

- 2 -

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| | (c)       Assumption
of Liabilities. With the exception of those liabilities           expressly assumed
by Buyer in accordance with the provisions of subsection 1(d)           (the Assumed
Liabilities), Buyer does not assume and shall in no           event be liable for
any debts, liabilities or obligations of the Corporation or           any Stockholder,
whether fixed or contingent, known or unknown, liquidated or           unliquidated,
secured or unsecured, or otherwise (Excluded           Liabilities). Without
limiting the foregoing, Buyer does not assume:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)       any
liability for Taxes (as hereinafter defined) payable for any periods prior           to
and including the Closing Date, unless specifically set forth on Schedule
          1(d)(i);
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii)       any
liability or obligation to any employee, director, officer or stockholder of
          the Corporation, including without limitation, any liability in connection with
          any Employee Benefit Plan (as hereinafter defined) not specifically set forth
on Schedule 1(d)(i);
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii)       any
trade payables not specifically set forth on Schedule 1(d)(i);
| | ------------------------------------------------------------------------------

| | (iv)       unless
specifically set forth on Schedule 1(d)(i), any liability or           obligation
for brokerage commissions, finders fees or professional           services of any
kind, including attorneys fees, incurred in connection           with the
negotiation and execution of this Agreement and the consummation of the
          transactions contemplated hereby whether or not disclosed in this Agreement;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v)       any
liability or obligation arising under any arbitration or litigation           proceeding,
whether or not disclosed in this Agreement, unless such liability is           pursuant
to a settlement agreement executed prior to the date hereof and           included herein
as an Assigned Contract (as hereinafter defined);
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vi)       any
liability or obligation arising from events occurring on or prior to the
          Closing Date, whether or not disclosed in this Agreement, arising from (A)
          environmental matters, (B) the infringement by the Corporation upon any
          intellectual property rights of others, or (C) the failure to comply with any
          requirements of law or any requirements of governmental bodies or agencies
          having jurisdiction over the Corporation, the Acquired Assets or the conduct of
          the Business; and
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vii)       any
liability or obligation arising as a result of, or which existence           constitutes,
a breach of any of the Corporations representations,           warranties or
covenants contained in this Agreement.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)       On
the Closing Date, upon the terms and conditions herein set forth, Buyer           agrees
to assume and become responsible for only the liabilities that are           Assumed
Liabilities. As used herein, Assumed Liabilities shall mean:
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)       all
liabilities and obligations set forth on Schedule 1(d)(i); and
| | ----------------------------------------------------------------------------

| | (ii)       all
liabilities, obligations and agreements accruing after the Closing Date           under
the terms of such agreements, contracts or arrangements specifically set           forth
on Schedule 1(d)(ii) (each, an Assigned Contract).
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 3 -

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2.       Purchase
Price; Payment to Employees.

| | (a)       In
consideration of the sale, conveyance, transfer and assignment of the           Acquired
Assets to Buyer, Buyer shall issue to the Corporation at the Closing,           One
Million Two Hundred and Eight Thousand (1,208,000) ordinary shares of Buyer,
          each having a par value of NIS 0.01 (Buyer Shares and the Buyer
          Shares issued pursuant to this subsection 2(a) are hereinafter collectively
          being referred to as the Consideration Shares).
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       To
encourage certain employees of the Corporation listed in Schedule 2(b)          (each,
an Employee and together the Employee) including           David
S. Kurtz, Krzystof J. Kozaczek and Paul Moran (each, a Manager          and
together the Managers) to dedicate their efforts and attention           to
the Buyers business and in consideration of the Employees executing           such
agreements and instruments as set forth in Section 3 herein, Buyer shall           issue
at the Closing, Three Hundred and Ninety Two Thousand (392,000) Buyer           Shares to
the Employees (collectively, Employees Shares) to be           allocated
among the Employees in accordance with the percentages set forth           opposite each
Employees name or as otherwise specified on Schedule           2(b).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       Allocation
of Consideration. Buyer and the Corporation shall agree to           allocate the
aggregate amount of Consideration Shares to be issued under this           Agreement,
among the Acquired Assets for all purposes (including financial           accounting and
tax purposes) substantially in accordance with the allocation           schedule set
forth on Schedule 2(c). Such allocation shall be binding           upon the
parties. Buyer, the Corporation and the Stockholders agree to           conform
with such allocation in reporting the sale of the Acquired Assets for           federal,
state and local income tax purposes, and in filing all information           returns,
including IRS Form 8594.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.       Employment
Agreements, Agreements Not to Compete, Restricted Stock           Agreements. At or
prior to Closing, Buyer (or such subsidiary of Buyer as           Buyer may direct) and
the Employees shall enter into employment agreements,           agreements not to compete
and restricted stock agreements substantially in the           forms attached hereto as
Exhibit A-1 (the Employees Employment           Agreements),
Exhibit A-2 (the Employees Agreements Not           to Compete),
Exhibit A-3(i) (Employees Restricted Stock           Agreements)
and Exhibit A-3(ii) (Managers Restricted           Stock Agreements).

4.       Representations,
Warranties and Agreements of Corporation. As material           inducement to Buyer
to enter into this Agreement and to close hereunder, the           Corporation hereby
makes the following representations, warranties and           agreements to and with
Buyer, which representations, warranties and agreements           shall be true and
correct as of the date of this Agreement and as of the Closing           Date:

| | (a)       Corporate
Status of the Corporation. The Corporation is a corporation           duly organized,
validly existing and in good standing under the laws of the           State of Delaware
and has the power and authority to own its properties and to           carry on its
business as it is now being conducted, and is duly qualified to do           business as
a foreign corporation in the jurisdictions specified in Schedule           4(a),
which constitute(s) all the jurisdictions in which the failure to so           qualify
would have an adverse effect on the Corporation. The           Stockholders listed
on Schedule 4(a) are the record and beneficial           holders of all the
issued and outstanding shares of capital stock of the           Corporation. Schedule 4(a) lists
(i) the authorized capital stock of           the Corporation; and (ii) the number of
shares of capital stock of the           Corporation held by each shareholder. Except as
set forth on Schedule 4(a) no shares of the capital stock of the Corporation
are           issued and outstanding or reserved for any purpose, and there is no
outstanding           option warrant or any other agreement or instrument granting any
Person the           right to acquire any shares of the capital stock of the Corporation.The
          minute books and stock records or similar documentation of the Corporation are
          complete and accurate in all material respects and all signatures included
          therein are the genuine signatures of the Persons indicated as signing. True,
          correct and complete copies of the Corporations minute books and stock
          records or similar documentation, including the Corporations Certificate
          of Incorporation and Bylawsand all amendments thereto to date, have been
          delivered to Buyer. The Corporation is not in default under or in violation of
          any provision of its Certificate of Incorporation or Bylaws.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 4 -

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| | (b)       Due
Authorization and Validity of Agreement. The Corporation has the           requisite
corporate power and authority to enter into, execute, deliver and           perform this
Agreement and the other agreements, documents or certificates being           executed
and delivered pursuant to this Agreement, and to consummate all           transactions
contemplated hereby. The execution, delivery and performance of           this Agreement
and each other document, instrument or agreement contemplated           hereby have been
duly authorized by all necessary corporate action on behalf of           Corporation and
on behalf of each Stockholder which is a corporate entity. This           Agreement
constitutes the valid and binding obligation of the Corporation and
          Stockholders enforceable in accordance with its terms except as enforceability
          may be limited by bankruptcy, insolvency, moratorium and other similar laws
          affecting creditors rights generally and by general principles of equity,
          whether considered in a proceeding at law or in equity.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       No
Violation or Approval. The execution, delivery and
          performance of this Agreement and the consummation of the transactions
          contemplated hereby and thereby, by the Corporation or any Stockholder will not
          result in a breach or violation of, or a default under, the Certificate of
          Incorporation of the Corporation, any statute applicable to the Corporation or
          any agreement to which the Corporation is a party or by which the Corporation
or           any of the Acquired Assets are bound, any fiduciary duty or any order,
judgment,           decree, rule or regulation of any court having jurisdiction over the
Corporation           or the Acquired Assets. No consent, approval, order or
authorization of, or           negotiation, declaration or filing with, any Federal,
state or municipal           authority or other Person is required of the Corporation in
connection with the           execution, delivery, and performance of this Agreement or
the consummation of           any of the transactions contemplated hereby or thereby, by
the Corporation.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)       Subsidiaries
and Joint Ventures. The Corporation does not own or control           and has never
owned or controlled any direct or indirect interest of any kind in           any
corporation, limited liability company, partnership, joint venture,           association
or any other Person.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)       Officers;
Directors; Bank Accounts. Set forth on Schedule 4(e) is           a correct
and complete list of all directors and officers of the Corporation,           all bank
accounts and safe deposit boxes of the Corporation and all persons           authorized
to sign checks drawn on such accounts and to have access to such safe           deposit
boxes.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 5 -

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| | (f)       Financial
Statements. The Corporation has provided the Buyer true and           complete copies
of the consolidated financial statements of the Corporation           consisting of (i) audited
consolidated balance sheets of the Corporation as           of December 31, 2005,
2004 and 2003, and the related audited consolidated           statements of income,
changes in owners equity and cash flows for the           calendar years then ended
(including the notes or other supplementary           information thereto) (the Year-End
Financial Statements), (ii) a           reviewed, unaudited consolidated balance
sheet of the Company as of March 31,           2006, and the related unaudited
consolidated statements of income, changes in           owners equity and cash
flows for the three months then ended; and (iii) an           unreviewed draft of the
consolidated balance sheets of the Company as of June           30, 2006 and the related
unreviewed consolidated statements of income, changes           in owners equity
and cash flows for the three months then ended ( such           statements set forth on
clauses (ii) and (iii) are hereinafter referred to as           the Interim
Financial Statements, and, collectively with the           Year-End Financial
Statements, the Financial Statements) copies of           all of which
constitute Schedule 4(f). The Financial           Statement were
prepared in accordance with US GAAP, consistently applied           throughout the
periods reported upon and with past periods (except for           inconsistencies
resulting from the revenue recognition policy restatement           described in the
financial statements for the year ended December 31, 2005), and           fairly and
accurately present the financial position of the Corporation as at           the dates of
such balance sheets, and the results of the operations and cash           flows of the
Corporation for the periods ended on such dates,except that           the Interim
Financial Statements are subject to normal and recurring year-end           adjustments.
The financial statements as of and for the one year period ended           December 31,
2005 were audited by Urish Popeck & Co., LLC whose reports are           included in
such financial statements. The financial statements for the one-year           periods
ended December 31, 2004 and 2003, were audited by Parente Randolph, LLP           whose
reports are included in such financial statements.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)       Title
to Assets. The Corporation has good and marketable           title to
all of the Acquired Assets in each case free and clear of any and all           liens,
pledges, claims, security interests, encumbrance, rights and options
          (collectively, Liens). No claim has been asserted by any Person to
          prevent or in any way limit the use by the Corporation of any of the Acquired
          Assets or challenging the validity or effectiveness of the Corporations
          ownership thereof, and the Corporation is not aware of any such claims. Except
          as set forth on Schedule 4(g), none of the rights of the
Corporation           in the Acquired Assets arises pursuant to contract rights (i) that
by their           terms are not assignable without the consent of the other contracting
party or           parties, (ii) that may be terminated by the other party thereto as a
result of           the consummation of the transactions contemplated by this Agreement,
or (iii) in           respect of which the consummation of the transactions contemplated
by this           Agreement would create a default. The Acquired Assets include all
assets           necessary to conduct the Business as presently conducted by the
Corporation.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h)       Real
Estate.
| | ----------------------

| | (i)       The
Corporation does not have any obligation or duty relating to, or any right,
          title or interest in, any real estate except for the single property disclosed
          on Schedule 4(h)(i) which the Corporation leases (the Leased
          Property). Except as set forth in Schedule 4(h)(i), the Leased
          Property is available to be used without restriction in the conduct and
          operation of the business of the Corporation. The Leased Property is in good
          operating condition and repair and does not require any repairs other than
          normal routine maintenance to maintain them in good condition and repair.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 6 -

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| | (ii)       The
Corporation has not received any written notice from any insurance company
          which has issued a policy with respect to the Leased Property or from any
public           official or board of fire underwriters (or other body exercising similar
          functions) claiming any defects or deficiencies in, or suggesting or requesting
          the performance of any repairs, alterations or other work to, the Leased
          Property, except for any written notices as to which all defects and suggested
          repairs, alterations or other work have been fully performed. The Corporation
          has not received any written notice from the applicable Landlord that such
          Landlords insurance premium for Landlords fire and extended
coverage           insurance for the building of which the Corporations Leased
Property is a           part has increased on account of the operations and activities
conducted by the           Corporation at its Leased Property.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii)       There
are no property management, service, equipment, supply, security,           maintenance,
construction, concession or other agreements with respect to or           affecting the
Leased Property that will burden Buyer after the date hereof,           except as
disclosed on Schedule 4(h)(iii).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv)       All
certificates of occupancy or similar documentation and all other licenses,
          permits, authorizations, consents, certificates and approvals required by all
          governmental authorities having jurisdiction over the Leased Property to the
          extent required to be obtained by the tenant or subtenant under the Lease (as
          hereinafter defined) for the Leased Property and any requisite certificates of
          the local board of fire underwriters (or other body exercising similar
          functions) have been issued for the Leased Property, have been paid for (to the
          extent applicable), are unconditional, valid and in full force and effect, and
          will not be invalidated, violated or otherwise adversely affected by the
          execution or performance of this Agreement or the consummation of any of the
          transactions contemplated herein. The Corporation is, to its knowledge, (A) in
          compliance with all provisions of the Americans with Disabilities Actand
          the regulations promulgated thereunder with respect to the Leased Property, and
          (B)in material compliance with all laws applicable to the use and
          occupancy by a tenant of the Leased Property.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v)       (A)
All leases or subleases and any and all amendments and supplements thereto
          (collectively, the Leases) of the Leased Property, whether oral or
          written, are disclosed on Schedule 4(h)(v), including for each its date,
          the name of the landlord (and owner if different from the landlord), the name
of           the lessee and any sublessee, the location and use of the property, the
monthly           base rental payment, any scheduled or formula increases or decreases in
base           rent, a description of any provisions for tax or expense pass-throughs,
the           amount of any security deposit, the lease expiration date, all options to
renew,           expansion rights, termination rights, unfunded tenant improvement
allowances and           rights of first offer or refusal to purchase or lease and
whether there are any           non-disturbance agreements from mortgagees or paramount
lessors; (B) The           Corporation has delivered to Buyer true, correct and complete
copies of all           Leases, and all such non-disturbance agreements; (C) except as
disclosed on Schedule 4(h)(v), the Corporation is the holder of the lessees
or           sublessees interest, as applicable, in each Lease and the Corporation
has           not assigned any Lease or any interest therein or subleased any portion of
the           Leased Property; (D) each Lease is in full force and effect; (E) the
Corporation           is paying its rent currently and has not asserted any claim for
set-off against           rent which has not been resolved; (F) the Corporation is not,
and, to the           knowledge of the Corporation, each landlord under any Lease is not,
in default           under any Lease, and no event has occurred which, with the giving of
notice or           passage of time or both, would constitute a default by the
Corporation or, to           the knowledge of the Corporation, any landlord under any
Lease; and (G) neither           the execution or performance of this Agreement nor the
consummation of any of           the transactions contemplated herein will result in a
breach of or constitute a           default under any of the Leases.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 7 -

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| | (i)        Personal
Property. Except as disclosed on Schedule 4(i), (A) the           Corporation
is the owner, lessee or licensee of all the personal property now           located in or
upon the premises occupied by the Corporation and of all personal           property that
it uses in the operation of its business (a complete list of which           is set forth
on Schedule 4(i), (B) all equipment, furniture and fixtures,           and other
tangible personal property of the Corporation is in good operating           condition
and repair and does not require any repairs other than normal routine
          maintenance to maintain such property in good operating condition and repair,
          and (C) all of the Corporations inventory carried at any value on
the           Corporations balance sheet of December 31, 2005 (including raw
          materials and work in process) is usable in the ordinary course of its business
          and is free from material defects and all finished goods are salable to the
          Corporations knowledge at customary profit margins in the ordinary course
          of its business.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (j)       Intellectual
Property.
| | --------------------------------

| | (i)       The
Corporation owns or has the right to use all patents, trademarks, service
marks, trade names, trade dress, domain names, logos, designs, corporate names
and copyrights (including issued patents, registrations and applications
pertaining thereto (whether or not filed) and extensions, continuations,
renewals or divisions of any such issued patents, registrations or
applications) and all other intellectual property rights, trade secrets,
processes, formulas, know-how, inventions, customer lists, supplier lists,
manufacturer lists, manuals and other confidential or proprietary information,
processes and formulae used in the Business or otherwise necessary for the
conduct of its Business (collectively, Intellectual Property), free
and clear of all Liens except as otherwise disclosed on Schedule 4(j)(i).
Schedule 4(j)(i) contains a complete and accurate list of all Intellectual
Property owned or used by the Corporation or used by the Corporation (Corporation
Intellectual Property), which includes a separate list of all U.S. and
foreign registered patents trademarks and service marks and applications for
registration of any marks, domain name registrations, all registered copyrights
and applications for registration of copyrights, and all filed patent
applications and issued patents and invention disclosures of the Corporation
(collectively, Registrable IP).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii)       Schedule 4(j)(ii) contains
a complete and accurate list of all of           the Corporations Intellectual
Property licensed by the Corporation           (Licensed Intellectual Property)
and all agreements for the use of           all such Licensed Intellectual Property. Schedule 4(j)(ii) contains
          a complete and accurate list of all domain name registrations owned or held by
          or for the Corporation, the dates of each registration and renewal, the
          registrars, user names and passwords for each registration, and any disputes
          regarding such domain names.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 8 -

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| | (iii)       The
Corporation has used reasonable efforts to ensure that any trade secret (A)
          have been treated as confidential and proprietary and (B) have been disclosed
by           the Corporation only to (1) employees and contractors who have had a need
          to know the contents thereof in connection with the performance of their
          duties to the Corporation and who have executed written agreements requiring
the           recipient to keep the information in strict confidence, or (2) existing or
          prospective customers and strategic business contacts who have executed written
          agreements requiring the recipient to keep the information in confidence. There
          has been no violation by any Person that has resulted, or would result, in the
          loss of protection of any trade secret or confidential information of the
          Corporation.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv)       Except
as disclosed in Schedule 4(j)(iv), all Persons who now, or have           been
during the three (3) year period prior to the date of this Agreement,
          employees, agents, consultants and/or contractors of the Corporation, who have
          contributed to or participated in any material way in the conception and/or
          development of Intellectual Property for or on behalf of the Corporation have
          executed nondisclosure agreements in the form provided to Buyer and either (A)
          have been a party to a work-for-hire arrangement or agreements with
          the Corporation in accordance with applicable law that has accorded the
          Corporation exclusive ownership of all tangible and intangible property thereby
          arising, or (B) have executed appropriate instruments of assignment in favor of
          the Corporation as assignee that have conveyed to the Corporation exclusive
          ownership of all tangible and intangible property thereby arising, with the
          result that the Corporation is the sole and exclusive owner of, without
          limitation, all right, title and interest in and to the Corporation
Intellectual           Property.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v)       The
existence and the manufacture, importation into any country in the world,
          offering for sale, license, lease, transfer, use, reproduction, distribution,
          modification or other exploitation by the Corporation of any Corporation
          Intellectual Property, as Corporation Intellectual Property, is or was, or is
          currently contemplated to be, sold, licensed, leased, transferred, used or
          otherwise exploited by such Persons, does not and will not (A) infringe on any
          patent, trademark, copyright or other intellectual property right of any
Person,           (B) constitute a misuse or misappropriation of any trade secret,
know-how,           process, proprietary information or other Intellectual Property of
any other           Person or (3) entitle any other Person to any interest therein,
or right to           compensation from the Corporation. The Corporation has not received
from any           other Person any notification with respect to any matters of the type
          contemplated by the immediately preceding sentence. There are no restrictions
on           the Corporations ability to manufacture, import, market, offer for
sale,           sell, license, lease, transfer, use, reproduce, distribute, modify,
disclose or           otherwise exploit any Corporation Intellectual Property. The
Corporation has no           knowledge of any infringement, misappropriation or other
violation of any           Corporation Intellectual Property by any third Person.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (k)       Software.
The Corporation has the right to use, or is indemnified for or           otherwise
protected from any risk for using, the computer software used by the
          Corporation in connection with its businesses. The Corporation has no knowledge
          of any claim or proceeding asserted or threatened in which infringement by such
          software upon the rights of any third parties is alleged. The Corporation has
          complied in all material respects with all of their software license
agreements.           The Corporation shall not be in breach of any software license
agreement as a           result of entering into this Agreement or by consummating any of
the           transactions contemplated hereunder.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (l)       Accounts
Receivable. Each of the accounts receivable of the Corporation           outstanding
as of the Closing Date constitutes on such date a valid claim in the           full
amount thereof against the debtor charged therewith on the books of the
          Corporation and was acquired in the ordinary course of the Corporations
          business. No account debtor has any valid set-off, deduction or defense with
          respect thereto and no account debtor has asserted any such set-off, deduction
          or defense. Such accounts receivable will be fully collected to the extent of
          the face value thereof.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (m)       Insurance.
The Corporation maintains insurance policies bearing the           numbers for the terms,
with the companies, in the amounts, having the named           insureds, providing the
general coverage, and with the premiums disclosed on Schedule 4(m). All of such
policies are in full force and effect, the           Corporation is not in default of any
provision thereof and all premiums due           (without regard to any grace period)
with respect to such policies have been           paid. The Corporation has not been
refused any insurance for which it has           applied and has not received notice from
any issuer of any policy issued to it           of the insurers intention to cancel
or refusal to renew any such policy           issued by such insurer. True, correct and
complete copies of all such policies           have been delivered to Buyer.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (n)       Liabilities.
At the Closing, the Corporation shall not have any           liabilities, whether fixed,
contingent, or otherwise, except as and to the           extent reflected in the
Financial Statements or disclosed on Schedule           4(n).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (o)       Contracts,
Leases, Agreements and Other Commitments.
| | --------------------------------------------------------------

| | (i)       All
of the Company Agreements (as hereinafter defined) are in full force and           effect
and are valid, binding and enforceable against the Corporation and           against the
other respective parties thereto, in accordance with their           respective terms.
The Corporation and all other parties to all of the Company           Agreements have
performed all obligations required to be performed to date under           the Company
Agreements and neither the Corporation nor any such other party is           in default
or in arrears under the terms thereof, and no condition exists or           event has
occurred which, with the giving of notice or lapse of time or both,           would
constitute a default thereunder or otherwise result in any payment           obligations
on the part of the Corporation not reserved for in the books of the
          Corporation. Except as set forth in Schedule 4(o)(i), the execution
          of this Agreement and the consummation of the transactions contemplated hereby
          do not and will not, with or without the giving of notice, the lapse of time,
or           both, result in an impairment or termination of, or result in a breach of
any of           the terms or provisions of, or constitute a default under, or conflict
with, any           Company Agreement. None of the terms or provisions of any Company
Agreement           adversely affects, or with the passage of time may reasonably be
anticipated to           adversely affect, the business, prospects, conditions, affairs
or operations of           the Corporation or any of its properties or assets. The
Corporation has not           received any notice of any intention by any party to
terminate or amend any           Company Agreement.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii)       Schedule
4(o)(ii) discloses (A) all outstanding written and oral           proposals, bids,
offers or guaranties made by the Corporation, which, if           accepted, would result
in any or could impose any debts, obligations or           liabilities upon the
Corporation, and (B) all unexpired warranties relating to           the Corporations
products or services, detailing the products or services           covered by each
warranty (the Product Warranties).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (iii)       For
purposes of subsection 4(o) the term Company Agreements means           (A)
any material written, oral or implied contract or agreement, including but           not
limited to any contract or agreement for the purchase or sale of merchandise           or
for the rendition of services, (B) any material written, oral or implied           lease,
or (C) any written, oral or implied power of attorney, guaranty, surety
          arrangement or other commitment granted by the Corporation to or for the
benefit           of any third party. A material agreement, contract or lease
shall           mean an agreement, contract or lease pursuant to which the Corporation is
          obligated to pay, or provide services valued at, or is entitled to receive,
          amounts in excess of $5,000. Any lease of real property shall be deemed a
          material lease. Schedule 4(o)(iii) contains a complete list of all
          Company Agreements. True and correct copies of all Companys agreements
          have been provided to the Buyer.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (p)       Labor
Relations, Employees.
| | -------------------------------------

| | (i)       Set
forth on Schedule 4(p)(i) is a list (which with respect to any oral
          agreement, commitment or arrangement also contains a description) of:
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (A)       all
employment agreements to which the Corporation is a party or by which it is
          bound;
| | ----------------------------------------------------------------------------------------------------------

| | (B)       all
non-compete and non-solicitation agreements to which the Corporation is a           party
or by which it is bound;
| | --------------------------------------------------------------------------------------------------------------------------------

| | (C)       all
agreements protecting proprietary or confidential processes to which the
          Corporation is a party or by which it is bound; and
| | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | (D)       all
independent contractor or consulting agreements to which the Corporation is           a
party or by which it is bound.
| | ------------------------------------------------------------------------------------------------------------------------------------

| | (ii)       Set
forth on Schedule 4(p)(ii) is a list of all employees of the
          Corporation, broken down by location, together with their exempt or non-exempt
          status, rate of base compensation, compensation arrangement (including wage or
          salary increases, bonus or increase in any other direct or indirect
          compensation), job title, original date of hire, accrued vacation benefits,
sick           leave benefits (including information as to whether or not such benefits
are           payable in cash upon termination of employment) and any severance benefits
to           which each employee is entitled, and other similar benefits, for each
employee           of the Corporation performing services for the Corporation.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii)       The
Corporation has delivered to Buyer true, complete and correct copies of all           of
the documents referred to in Schedule 4(p)(i) hereof and all of the
          personnel policies, handbooks, procedures, and forms of employment applications
          relating to the employees of the Corporation.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (iv)       (A)
there is no union representing or purporting to represent any of the           employees
of the Corporation and the Corporation is not subject to any           collective
bargaining agreements with any union representing or purporting to           represent
the employees of the Corporation; (B) there have been no strikes,           slowdowns, or
other work stoppages, lockouts, grievance proceedings,           arbitrations, labor
disputes, lawsuits, administrative proceedings or           representation questions
pending or, to the knowledge of the Corporation,           threatened, between the
Corporation on the one hand, and any labor union           representing or purporting to
represent any employees of the Corporation, on the           other; (C) the Corporation
is in compliance and has at all times complied with           all laws relating to the
employment, and employment practices including, but not           limited to, equal
employment opportunity laws including the obligations not to           discriminate on
the basis of age, sex (including sexual harassment, religion,           national origin,
disability or any other status protected by Federal, state or           local law and the
obligation not to retaliate under Federal, state or local           law); wage and hour
laws including the Fair Labor Standards Act           (FLSA) and state law;
family medical leave laws including the Family           Medical Leave Act (FMLA)
and state law; immigration laws including           the Immigration Reform and Control
Act (IRCA); benefit-related laws           including the Consolidated Omnibus
Budget Reconciliation Act           (COBRA); health and safety laws including
the Occupational Safety           and Health Act (OSHA); law related to the
notice of layoff or           termination and payment in the absence thereof including
the Worker Adjustment           and Retraining Notification Act (WARN);
workers compensation and           collective bargaining laws including the National
Labor relations Act           (NLRA); the payment of social security,
unemployment compensation           and similar taxes. The Corporation is not liable for
any arrears of wages or any           taxes or penalties for failure to comply with any
of the foregoing; and (D)           there are no and since the Corporations
inception there have never been           any charges, suits, actions, administrative
proceedings or investigations,           and/or claims, instituted by or against,
pending, or, to the knowledge of the           Corporation, threatened against,
affecting, naming and/or involving the           Corporation, whether domestic or
foreign, before any court, governmental agency,           department, board of
instrumentality, or before any arbitrator (collectively           Actions),
concerning, or in any way related to the employees or to           the employment
practices of the Corporation, including, without limitation,           Actions involving
unfair labor practices, collective bargaining, failure to pay           wages or
overtime, breach of implied or express employment contract, wrongful           discharge
and/or any other restriction on the right of the Corporation to           terminate its
respective employees, employment discrimination or retaliation,           occupational
safety and health, workers compensation family and medical           leave,
violations of any whistleblower protection and notice of layoff or           termination;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v)       No
action has been taken that could result in an involuntary termination of the
          employment of a substantial number of the Corporation employees on or prior to
          the Closing Date which could give rise to any obligation under WARN or any
          similar state or local law.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vi)       There
are no express or implied agreements, policies, practices, or procedures,
          whether written or verbal, pursuant to which any employee or agent or
contractor           of the Corporation is not terminable at will. The Corporation has no
knowledge           of, or reason to believe that, any senior employee of the Corporation
will leave           the employ of the Corporation as a result of the transactions
contemplated           hereby.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (q)       Employee
Benefit Plans.
| | ---------------------------------

| | (i)       Schedule
4(q)(i) is a complete and accurate list of all employee benefit plans           which the
Corporation and any of its ERISA Affiliates (as hereinafter defined)           maintain,
sponsor, contribute to, are liable for (directly or indirectly) or are           bound,
legally or otherwise, including, without limitation, any profit sharing,
          deferred compensation, bonus, payroll, sick leave, consulting, stock option,
          stock purchase, stock bonus, employee stock ownership plan (within the meaning
          of Section 4975(e)(7) of the Code), pension, retainer, retirement, vacation,
          change of control, disability, severance, insurance, welfare or incentive pay
          policy, agreement, practice or arrangement; any plan, agreement or arrangement
          if providing for fringe benefits or perquisites to employees, officers,
          directors or agents of the Corporation and any of its ERISA Affiliates,
          including but not limited to benefits relating to employer supplied
automobiles,           clubs, medical, dental, hospitalization, life insurance and other
types of           insurance, retiree medical, retiree life insurance and any other type
of           benefits for retired and terminated employees; any employment agreement; and
any           other plan, policy agreement or arrangement whether or not an employee
          benefit plan (within the meaning of Section 3(3) of the Employee
          Retirement Income Security Act of 1974, as amended (ERISA) through
          the date of this Agreement) (herein referred to individually as Plan          and
collectively as Plans). For purposes of this Agreement,           ERISA
Affiliate means all Persons which are treated as being under           common
control with the Corporation, as the case may be or any ERISA Affiliate           under
Section 414(b), (c), (in) or (o) of the Internal Revenue Code of 1986, as
          amended (Code).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii)       Neither
the Corporation nor any ERISA Affiliate has ever been obligated to file           an IRS
Form 5500 with respect to any Plan. True and complete copies of the           following
documents with respect to any Plan of the Corporation and each ERISA           Affiliate,
as applicable, have been delivered to Buyer: (A) the most recent Plan           document
and trust agreement (including any amendments thereto), (B) all summary           plan
descriptions, (C) a written description of each material non written Plan,           (D)
each written communication to employees intended to describe a Plan or any
          benefit provided by such Plan, and (E) all correspondence with the IRS, the
          Department of Labor and the Pension Benefit Guaranty Corporation           (PBGC)
concerning any controversy.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii)       Each
Plan is and has been maintained in compliance in all material respects with
          applicable law, including but not limited to ERISA, and the Code and with any
          applicable contractual obligations.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv)       No
Plan is subject to Section 412 of the Code.
| | ---------------------------------------------------------

| | (v)       No
Plan is or ever has been subject to Title IV of ERISA.
| | -------------------------------------------------------------------

| | (vi)       There
are no pending or, to the knowledge of the Corporation, threatened claims,
          actions or lawsuits, other than routine claims for benefits in the ordinary
          course, asserted or instituted against (A) any Plan or its assets, or (B) any
          fiduciary with respect to any Plan for which the Corporation or any ERISA
          Affiliate may be directly or indirectly be liable, through indemnification
          obligations or otherwise.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (vii)       Neither
the Corporation nor any ERISA Affiliate has ever contributed to or been
          obligated to contribute to any Plan that is a multiemployer plan as
          defined in Section 4001(a)(3) of ERISA or that is subject to Title IV of ERISA.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (viii)       Neither
the Corporation nor any ERISA Affiliate has engaged, directly or           indirectly, in
a non-exempt prohibited transaction (as defined in Section 4975           of the Code or
Section 406 of ERISA) in connection with any Plan.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ix)       No
Plan is a nonqualified deferred compensation plan (as that term is used for
          purposes of Section 409A of the Code).
| | ------------------------------------------------------------------------------------------------------------------------------------------

| | (x)       During
the last two years there have been no amendments to any Plan, no written
          interpretation or announcement (whether or not written) by the Corporation or
          any ERISA Affiliate relating to any Plan, no Plan has been established, and
          there have been and are no negotiations, demands, or proposals which are
pending           that concern any Plan, which resulted in or could reasonably be
anticipated to           result in a material increase in (A) the accrued or promised
benefits of any           employees of the Corporation or any ERISA Affiliate and (B) the
level of expense           incurred in respect thereof.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (xi)       Neither
the Corporation nor any ERISA Affiliate sponsors, maintains or has           obligations,
direct, contingent or otherwise, with respect to any Plan that is           subject to
the laws of any country other than the United States.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (xii)       Neither
the Corporation nor any ERISA Affiliate sponsors, maintains or has           obligations,
direct, contingent or otherwise, with respect to any Plan that is           intended to
be a tax-qualified plan under Section 401 of the Code.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (xiii)       Each
Plan that provides welfare benefits has been operated in compliance with           all
requirements of Sections 601 through 608 of ERISA and Section 4980B of           the
Code and regulations thereunder, relating to the continuation of coverage           under
certain circumstances in which coverage would otherwise cease. Neither the
          Corporation nor any ERISA Affiliate has contributed to a nonconforming group
          health plan (as defined under Code Section 5000(c)) and no ERISA Affiliate has
          incurred a tax under Section 5000(a) of the Code which could become a liability
          of the Corporation or any ERISA Affiliate. No retired or former employee of the
          Corporation or any ERISA Affiliate is entitled to benefits under any Plan other
          than continuation of health coverage as required by Section 4980B of the Code
          and any such former employee or retiree who is covered pursuant to the
          requirements of Section 4980B is paying for such coverage at the maximum rate
          payment for continuation coverage may be required. The Corporation and each
          ERISA Affiliate has complied in all respects with the requirements of the
Health           Insurance Portability and Accountability Act of 1996 with respect to
each Plan           that provides welfare benefits. The Corporation does not maintain any
plan which           is an employee welfare benefit plan (as such term is
defined under           Section (1) of ERISA) that has provided any disqualified
benefit (as           such term is defined in Section 4976(b) of the Code) with
respect to which an           excise tax could be imposed under Section 4976.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (xiv)       Each
of the Corporation and its ERISA Affiliates has funded each Plan in           accordance
with the terms of such Plan through the date hereof, including the           payment of
applicable premiums on insurance contract funding a Plan, for           coverage provided
through the date hereof.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (xv)       Except
as contemplated herein or required by law, the execution of this           Agreement and
the consummation of the transactions contemplated hereby, do not           constitute a
triggering event under any Plan, policy, arrangement, statement,           commitment or
agreement which (either alone or upon the occurrence of any           additional or
subsequent event) will result in any obligation of the Corporation           or any ERISA
Affiliate to make any payment (whether of severance pay, including,           and not
limited to, salary, related vacation pay, pension pay and other similar
          payments and costs, or otherwise) or to accelerate, vest or increase the amount
          of benefits payable to any employee or former employee or director of the
          Corporation or any ERISA Affiliate. No Plan or agreement provides for the
          payment of severance benefits upon the termination of any employees
          employment. No amounts paid or payable by Corporation will fail to be
deductible           for federal income tax purposes by reason of Section 280G of the
Code.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (xvi)       The
balance sheets of the Corporation as of December 31, 2003, 2004 and 2005,
          properly and adequately reflect, in accordance with US GAAP consistently
applied           with prior periods, any and all liabilities and obligations of the
Corporation           and its ERISA Affiliates relating to any period ending on or prior
to the date           hereof to or in respect of current and former employees of the
Corporation or           any ERISA Affiliate or the Plans, for (A) unpaid compensation,
salaries, wages,           vacation pay, disability payments and other payroll items
(including, without           limitation, bonus, incentive or deferred compensation), (B)
unpaid           contributions, costs and expenses to or in respect of any Plans, and (C)
          severance or other termination benefits relating to, resulting from or arising
          in respect of any termination of employment occurring on or prior to the date
          hereof.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (r)       Litigation.
Except for the matters set forth on Schedule 4(r), (A)           Neither the
Corporation nor any of the Acquired Assets, is a party or is subject           to, or to
the knowledge of the Corporation, threatened with, any suit, action,
          arbitration, administrative or other proceeding, either at law or in equity, or
          governmental investigation by or before any court, governmental department,
          commission, board, agency or instrumentality, domestic or foreign; (B) to the
          knowledge of the Corporation, there is no basis for any suit, action,
          arbitration, or administrative or other proceeding against the Corporation; (C)
          there is no judgment, decree, award or order outstanding against the
          Corporation; (D) the Corporation is not contemplating the institution by it of
          any suit, action, arbitration, administrative or other proceeding; and (E) to
          the knowledge of the Corporation, there has been no occurrence that may
          result in a claim for damages against the Corporation. The insurance carriers
of           the Corporation have agreed to defend and indemnify the Corporation against
any           loss resulting to the Corporation therefrom.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (s)       Suppliers
and Customers. Schedule 4(s) is a complete and accurate           list of the
names of all suppliers and customers of the Corporation which           respectively
contribute more than 5% of all sales and services to, and orders           and use of
services from, the Corporation (Suppliers and           Customers, respectively).
The relationships of the Corporation with           its Suppliers and Customers are good
commercial working relationships and no           Supplier or Customer of the Corporation
has canceled or otherwise terminated,           or, to the knowledge of the Corporation,
threatened to cancel or otherwise           terminate, its relationship with the
Corporation, or has during the last twelve           (12) months decreased materially,
or, to the knowledge of the Corporation,           threatened to decrease or limit
materially, its business with the Corporation.           No interruptions or shortages in
the supply of raw materials and other key           supplies are threatened or
anticipated. To the knowledge of the Corporation (i)           no new products have been
developed by others that would result in a material           loss of business to the
Corporation, render the Corporations products           obsolete, or otherwise
place the Corporations products at a competitive           disadvantage; and (ii)
the acquisition of the Acquired Assets by Buyer will not           adversely affect the
relationship of the Buyer, as successor to the Corporation,           with any such
Supplier or Customer.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (t)       Conflicting
Interests. No director, officer or manager of the Corporation           (i) has any
pecuniary interest in any supplier or customer of the Corporation or           in any
other business enterprise with which the Corporation conducts business or           with
which the Corporation is in competition; (ii) is indebted to the           Corporation;
(iii) is a party to any transaction or agreement with the           Corporation (apart
from such Persons status as a director, officer or           manager as such); or
(iv) has any business or other interest in conflict with           the interests of the
Corporation.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (u)       Compliance
with Law and Regulations. The Corporation is in compliance           with, and has at
all times complied with, all requirements of U.S. Federal,           state, and local law
and, where applicable, their foreign equivalents, and all           requirements of all
governmental bodies or agencies having jurisdiction over it,           the conduct of its
business, the use of its properties and assets, and all           premises occupied by
it. Without limiting the foregoing,the Corporation           has paid all monies
to obtain, and has obtained and now holds, all licenses,           permits, certificates,
and authorizations needed or required for the conduct of           its business as
currently conducted and the current use of its properties and           the premises
occupied by it. The Corporation has properly filed all reports and           other
documents required to be filed with any Federal, state, local and foreign
          government or subdivision or agency thereof. The Corporation has not received
          any notice from any Federal, state or municipal authority or any insurance or
          inspection body that any of its properties, facilities, equipment, or business
          procedures or practices fails to comply with any applicable law, ordinance,
          regulation, building or zoning law, or requirement of any public authority or
          body. All licenses, permits, orders and approvals issued by any governmental
          body or agency currently in effect and pertaining to the Acquired Assets are
          listed on Schedule 4(u)and, except as noted on Schedule 4(u) none
          of the items so listed will lapse or expire as a result of the transactions
          contemplated hereby.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v)       Environmental
Matters.
| | --------------------------------

| | (i)       The
Corporation and to the knowledge of the Corporation, any predecessor of the
          Corporation is and at all times have been in compliance with all Environmental
          Laws (as hereinafter defined) governing their business, operations, properties
          and assets, which compliance includes, but is not limited to: (A) the
possession           by the Corporation of all permits and other governmental
authorizations required           under applicable Environmental Laws, which permits are
in full force and effect,           and compliance with the terms and conditions thereof,
(B) all requirements           relating to the Discharge (as hereinafter defined) and
Handling of Regulated           Substances (as hereinafter defined) and Wastes (as
hereinafter defined); (C) all           requirements relating to notice, record keeping
and reporting; and (D) all           applicable writs, orders, judgments, injunctions,
governmental communications,           decrees, informational requests or demands issued
pursuant to, or arising,           under, any Environmental Law (Environmental
Demands). The           Corporation has not received any communication from any
governmental authority,           employee, group or third party alleging that it is not
in such full compliance           or that it has investigatory or remedial obligations or
other liability pursuant           to Environmental Law. To the knowledge of the
Corporation, there are no           circumstances that may prevent or interfere with such
full compliance or give           rise to investigatory or remedial obligations or other
liabilities pursuant to           any Environmental Law in the future. All permits and
other governmental           authorizations currently held by the Corporation pursuant to
any Environmental           Laws and Environmental Demands issued to the Corporation are
identified in Schedule 4(v).
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 16 -

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| | (ii)       There
are no Environmental Claims (as hereinafter defined) pending or, to the
          knowledge of the Corporation, threatened against the Corporation or, to the
          knowledge of the Corporation, against a predecessor of the Corporation.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii)       No
Regulated Substances (as hereinafter defined) is present on or under or is
          migrating from any of the Leased Properties other than Regulated Substances in
          concentrations, quantities, types and/or locations as customarily used in the
          conduct of the Corporations business, and that will not require
          remediation pursuant to any applicable Environmental Law.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv)       No
portion of any of the Leased Properties constitutes land which is restricted           by
applicable Environmental Law due to its physical characteristics, including
          without limitation, a wetland or waterway, or land which is geologically
          unsuited for any use related to the conduct of the business of the Corporation
          or by virtue of a use restriction in connection with environmental remediation.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v)       No
underground or above-ground storage tanks are present on any of the Leased
          Properties.
| | -------------------------------------------------------------------------------------------------------------

| | (vi)       No
mold at levels posing a risk to the health of occupants is present on any of
          the Leased Properties nor do any conditions exist which are conducive to the
          growth of mold.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vii)       No
asbestos or asbestos-containing materials is present on any of the Leased
          Properties.
| | --------------------------------------------------------------------------------------------------------------

| | (viii)       The
Corporation has provided Buyer with all (i) permits and governmental
          authorizations and applications for same; (ii) reports and other submissions to
          any governmental authority in connection with any Environmental Law; (iii)
          records required to be maintained pursuant to Environmental Laws; (iv)
          Environmental Demands; (v) Environmental Claims; and (vi) records and reports
of           any environmental tests pertaining to, or any environmental assessments of,
any           of the Leased Properties.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ix)       None
of the Leased Properties are located in any state or province having a law
          requiring the performance of environmental investigation and remediation upon
          the sale of a business, or, in the event of the Leased Properties are located
in           such a jurisdiction, the operations conducted by the Corporation at such
Leased           Property(ies) are not subject to any such law.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 17 -

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| | (x)       For
purposes of this Agreement:
| | -----------------------------------------

| | (A)       Discharge means
any manner of spilling, leaking, dumping,           discharging, release or emitting, as
any of such terms may further be defined in           any Environmental Law, into any
medium including, without limitation           groundwater, surface water, soil or air.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (B)       Environmental
Claim means any notice, Lien, claim, action, cause of           action, order,
communication, investigation, request for information or           proceeding (written or
oral) by any Person alleging potential liability           (including, without
limitation, potential liability for investigatory costs,           cleanup, removal or
remediation costs, governmental response costs, natural           resource damages,
property damages, personal injuries, or penalties) arising out           of, based on or
resulting from (a) the presence, or threatened Discharge into           the environment
of any Regulated Substance at any location, whether or not owned           or operated by
the Corporation, and (b) circumstances forming the basis of any           violation, or
alleged violation, of, or liability pursuant to any Environmental           Law.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (C)       Environmental
Law means any and all U.S. or Canadian Federal, state,           provincial,
regional, county and local or foreign laws, regulations, codes,           orders, plans,
common law injunctions, decrees, rulings, and judicial or           administrative
interpretations thereof, which govern, purport to govern, or           relate to
pollution, protection of the environment (including, without           limitation, ground
water, surface water, soil and air) and public health and           safety, including,
without limitation: the Comprehensive Environmental Response,           Compensation and
Liability Act of 1980, as amended by the Superfund Amendment           and
Reauthorization Act of 1986, 42 U.S.C. 9601, et seq.
          (collectively, CERCLA); the Solid Waste Disposal Act, as amended by
          the Resource Conservation and Recovery Act of 1976 and subsequent Hazardous and
          Solid Waste Amendments of 1984, 42 U.S.C. 6901, et seq.
          (collectively, RCRA); the Hazardous Materials Transportation Act,
as           amended, 49 U.S.C. 1801, et seq.; the Clean Water Act, as
amended,           33 U.S.C. 1311, et seq.; the Clean Air Act, as amended,
42 U.S.C.           7401, et seq.; the Toxic Substances Control Act, as
amended, 15           U.S.C. 2601, et seq. (the TSCA); the
Emergency           Planning and Community Right-to-Know Act of 1986, as amended, 42
U.S.C. 11001, et seq. (EPCRA); and the Occupational Safety and
          Health Act of 1970, as amended, 29 U.S.C. 65 1, et seq.           (OSHA)
and their Canadian counterparts.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (D)       Handling means
any manner of generating, accumulating, storing,           treating, disposing of,
transporting, transferring, labeling, handling,           manufacturing, processing or
using, as any such terms may further be defined in           any Environmental Law, of
any Regulated Substance.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (E)       Regulated
Substance shall be broadly construed to include without           limitation any
chemical, pollutant, contaminant, material, waste, toxic or           hazardous
substance, petroleum, petroleum product, asbestos, asbestos containing
          material, and polychlorinated biphenyl regulated, listed, identified or
          controlled by, under or pursuant to any Environmental Law.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (F)       Waste shall
be broadly construed to include bulky wastes,           construction and demolition
debris, garbage, solid wastes, liquid wastes,           recyclable materials, sludge,
special wastes, used oils, hazardous waste and           plant and yard trash as those
terms are defined under any Environmental Law.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (w)       Tax
Matters.
| | ----------------------

| | (i)       Definitions.
The following terms shall have the meanings set forth in           this subsection 4(w)
for purposes of this subsection 4(w) of this Agreement           (except for Tax and
Taxes, which shall have said meaning           for all purposes of this
Agreement):
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Affiliated
Group means any affiliated group within the meaning of Code Section 1504(a) or
similar group defined under a similar provision of state, local or foreign law.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Codemeans
the Internal Revenue Code of 1986, as amended, or any successor statute. All references
to specific sections of the Internal Revenue Code shall be deemed to include any
provisions of the Internal Revenue Code (or a related statute) which replace or supersede
the sections in effect at the time this Agreement is executed.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Regulationor
Treasury Regulation means regulations issued under the Code as such
regulations may be amended. All references herein to specific sections of the Regulations
shall be deemed also to refer to any provisions of the Regulations which replace or
supersede the sections in effect at the time of the execution of this Agreement.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Returnand
Returns mean any return, report, declaration, estimate, information
statement, claim for refund, notice, form or any other kind of document, including any
schedule or attachment thereto, and including amended versions of any of the foregoing,
relating to or required to be filed in connection with any Tax.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Taxand
Taxes means any Federal, state (including District of Columbia), provincial,
local, foreign (including possessions or territories of the United States) or other tax
(whether income, gross receipts, franchise, excise, customs, sales, use, value added, ad
valorem, real or personal property, license, transfer, employment, social security or any
other kind of tax or payment in lieu of tax no matter how denominated including any
amount payable by the Corporation pursuant to a tax-sharing or other agreement relating
to the sharing or payment of tax), or any assessment, levy, impost, withholding, fee or
other governmental charge in the nature of a tax, and shall include all additions to tax,
interest, penalties and fines with respect thereto.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii)       Tax
Matters Relating to the Corporation.
| | ---------------------------------------------------

| | (A)       Except
as set forth on Schedule 4(w)(ii)(A), the Corporation has at all           times
filed or will file when due in a timely fashion all Returns that are           required
to be filed on or before the date hereof or the Closing Date by or with           respect
to the Corporation (taking into account all extensions of time within           which to
file to which they are entitled or which they may have been granted).           All such
Returns are correct and complete. Except as set forth on Schedule           4(w)(ii)(A),
the Corporation is not the current beneficiary of any extension           of time within
which to file any Return. No claim has been made by a taxing           authority in a
jurisdiction where the Corporation does not file Returns that any           of them is or
may be subject to or liable for any Tax imposed by that           jurisdiction.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (B)       All
Taxes for which the Corporation is liable and that are due on or before the
          date hereof or the Closing Date (whether or not shown to be due on any Return)
          have been paid when due in a timely fashion (taking into account all extensions
          of time within which to pay to which they are entitled or which they may have
          been granted). There are no Liens on any assets of the Corporation that arose
in           connection with any failure (or alleged failure) to pay any Tax other than
Liens           for Taxes not yet due and payable or for Taxes that the Corporation is
          contesting in good faith through appropriate proceedings as set forth on Schedule 4(w)(ii)(B).
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (C)       The
Corporation has withheld or collected and paid or deposited all Taxes           required
to have been withheld or collected and paid or deposited in connection           with
amounts paid or owing to any employee, independent contractor, creditor,
          stockholder, member, partner or other third party.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (D)       No
taxing authority has asserted or to the knowledge of the Corporation,
          threatened to assert, or provided notice of its intention to assert or
          consideration of asserting any adjustment, deficiency or assessment for any
          Taxes against the Corporation, and no basis exists for any such adjustment,
          deficiency or assessment which would result in additional Taxes owed by the
          Corporation for any period for which Returns have been filed. Schedule
          4(w)(ii)(D) lists all Federal, state, provincial, local, and foreign income
          Returns filed with respect to the Corporation and indicates those Returns of
the           Corporation that have been audited and those Returns of the Corporation
with           respect to Taxes of the Corporation that currently are the subject of
audit.           Corporation has delivered to Buyer correct and complete copies of all
Federal,           state, local and foreign income tax Returns filed, examination reports
issued,           and statements of deficiencies assessed against or agreed to by the
Corporation           or statements of deficiencies for which Corporation may be liable.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (E)       Except
as set forth on Schedule 4(w)(ii)(E), the Corporation has not           waived any
statute of limitations in respect of Taxes or agreed to any extension           of time
with respect to a Tax adjustment, assessment or deficiency except for           such
waivers or extensions which, by their terms, have elapsed as of the date of
          this Agreement.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (F)       Except
as set forth on Schedule 4(w)(ii)(F), the Corporation does not           have any
income or gain that may be reportable for a period ending after the           date hereof
or the Closing Date without the receipt of an equal amount of cash,           which is
attributable to a transaction occurring in or a change in accounting           method
made for a period ending on or prior to the date hereof or the Closing           Date.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (G)       There
are no currently outstanding requests made by the Corporation or any
          Stockholder for tax rulings, determinations or information that could affect
the           Taxes of the Corporation.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (H)       The
Corporation has not been obligated to deduct and withhold Taxes under Code
          Sections 1441 or 1445.
| | -------------------------------------------------------------------------------------------------------------------------

| | (I)       No
Stockholder is a foreign corporation within the meaning of Code Section
          7701(a)(5).
| | ----------------------------------------------------------------------------------------------------------

| | (J)       The
Corporation is not and has not been, within the past six years, a party to           any
Tax allocation or sharing agreement. The Corporation has not been a member           of
an Affiliated Group defined in Code Section 1504(a) filing a consolidated
          federal income Tax Return and has any liability for the Taxes of any Person
          (other than the Corporation) under Regulation Section 1.1502-6 (or any similar
          provision of state, local, or foreign law), or as a transferee or successor by
          contract or otherwise. The Corporation has not been a member of a group of
          companies filing a unitary, consolidated, combined state or foreign Return.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (K)       Schedule
4(w)(ii)(K) sets forth the following information with respect of           the
Corporation as of the beginning of its current taxable year: (a) the federal
          income tax basis in its assets; and (b) the amount of any net operating loss,
          net capital loss, unused investment or other credit, unused foreign tax credit,
          or excess charitable contribution allocable to the Corporation.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (L)       

The unpaid Taxes of the Corporation
did not as of the date hereof and will not through the
Closing Date exceed $150,000.
| | ------------------------------------------------------------------------------------------------------------------------------------

| | (M)       The
Corporation has not made any payments, is not obligated to make any           payments,
and is not a party to any agreement or arrangement that could obligate           it to
make payments of any excess parachute payment within the           meaning of
Code Section 280G.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (N)       With
respect to the Corporations contractors, consultants and other
          independent personnel (the Contractors), the Corporation has
          evaluated and classified the Contractors as independent contractors and
          employees in accordance with Internal Revenue Service rules and regulations.
The           Corporation has maintained, monitored and continues to maintain and monitor
          those Contractors who are independent contractors to assure compliance with
          Internal Revenue Service rules and regulations.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (x)       Conduct
of Business; No Material Adverse Change. Since December 31, 2005,           the
Corporation has conducted its business in a good and diligent manner in the
          ordinary and usual course consistent with past practice, and there has not
been:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)       any
material damage, destruction or loss (whether or not covered by insurance)           with
respect to any assets or properties owned or leased by the Corporation;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (ii)       any
material change by the Corporation in its accounting methods, principles or
          practices;
| | ---------------------------------------------------------------------------------------------------------------

| | (iii)       any
declaration, setting aside or payment of any dividends on or distributions           in
respect of any of the capital stock of the Corporation , or any redemption,
          purchase or other acquisition by the Corporation of any of its securities;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv)       any
increase in the benefits under, or the establishment or amendment of, any
          bonus, insurance, severance, retention, change of control, deferred
          compensation, pension, retirement, profit sharing, option (including, without
          limitation, the granting of stock options, stock appreciation rights,
          performance awards, or restricted stock awards), stock purchase or other
          employee benefit plan, or any increase in the compensation payable or to become
          payable to directors, consultants, officers or employees of the Corporation,
          except for any increases in salaries or wages payable or to become payable in
          the ordinary course of business and consistent with past practice;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v)       any
payment by the Corporation to any director or officer or any Affiliate of           any
of the foregoing, whether as a loan or otherwise, except regular           compensation
and usual benefit payments made in the ordinary course of business           consistent
with past practice;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vi)       any
entry by the Corporation into any contract with any director or officer, of           the
Corporation or any Affiliate of the foregoing other than on an arms-length
          basis;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vii)       any
material acquisition of any assets, business or Person (other than the           purchase
of assets from suppliers or vendors in the ordinary course of           business);
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (viii)       any
sale, transfer, lease, exchange or other disposition of any material assets           or
properties owned or leased by the Corporation (other than in the ordinary
          course of business consistent with past practice);
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ix)       any
capital expenditures made by or on behalf of the Corporation in excess of
          $10,000 in the aggregate;
| | ----------------------------------------------------------------------------------------------------------------------------

| | (x)       any
waiver, release, discharge, transfer or cancellation by the Corporation of           any
material rights or claims, other than in the ordinary course of business;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (xi)       the
creation of any Lien on any assets or properties owned or leased by the
          Corporation, except in the ordinary course of business or pursuant to a Loan
          Agreement dated June 1, 2006 between the Corporation and Buyer;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (xii)       any
disclosure of any confidential information, except to employees and           contractors
who reasonably need to know of the same and owe a duty of           confidentiality to
the Corporation; or
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (xiii)       any
agreement or commitment by the Corporation to do any of the foregoing.
| | ---------------------------------------------------------------------------------------

| | (y)       Shares
Not Registered. The Corporation and the Stockholders acknowledge           and agree
that the Consideration Shares have not been registered under the           Securities Act
of 1933 (the Securities Act), or registered or           qualified under any
state securities laws (State Acts), and are           restricted
securities within the meaning of SEC Rule 144. The           Corporation, and
to the extent that Buyer Shares have been distributed by the           Corporation to the
Stockholders, the Stockholders are acquiring the           Consideration Shares for the
Corporations or each Stockholders own           account, as a principal, for
investment purposes and not with a view to or for           the sale or other disposition
thereof. The Corporation and the Stockholders           agree that they will not sell,
assign, distribute or otherwise dispose of the           Consideration Shares in
violation of the Securities Act or any applicable State           Act. The Corporation
and the Stockholders acknowledge and agree that the stock           certificates
representing the Buyer Shares that may be issued to the Corporation           under this
Agreement shall bear a restrictive legend substantially reading as           follows:
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE ACT) NOR HAVE THEY BEEN APPROVED BY THE UNITED
STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES REGULATORY AUTHORITIES OF ANY
STATE OF THE UNITED STATE NEITHER THE SECURITIES NOR ANY INTEREST OR PARTICIPATION
THEREIN MAY BE OFFERED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED, ENCUMBERED OR IN ANY OTHER
MANNER TRANSFERRED OR DISPOSED OF IN THE UNITED STATES OR TO A U.S. PERSON (AS
DEFINED IN REGULATIONS PROMULGATED UNDER THE ACT) UNLESS EFFECTED PURSUANT TO AND IN
COMPLIANCE WITH AN AVAILABLE EXEMPTION OR OTHERWISE REGISTERED UNDER THE ACT.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (z)        No
Broker or Finder. Except for its obligation to Needham & Company,           Inc.,
none of the Corporation or the Stockholders have incurred any obligation,
          contingent or otherwise, to a broker, finder, agent or other intermediary for
          introducing the parties in connection with, or otherwise procuring, this
          Agreement or the transaction(s) contemplated hereby.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (aa)        Statements
and Other Documents Not Misleading. Other than with respect to           Buyers
representations, warranties and agreements contained in Section 5           herein and
such documents to be delivered by Buyer pursuant to Section 13           herein, neither
this Agreement, including all Exhibits and Schedules, nor the           closing
documents, contains or will contain any untrue statement of any material           fact
or omits or will omit to state any material fact necessary to be stated in
          order to make any statement contained therein, document or other instrument not
          false or misleading.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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5.        Representations,
Warranties and Agreements of Buyer. As material           inducement to the
Corporation to enter into this Agreement and to close           hereunder, the Buyer
makes the following representations, warranties and           agreements to and with the
Corporation, which representations, warranties and           agreements shall be true and
correct as of the date of this Agreement and as of           the Closing Date:

| | (a)        Corporate
Status. Buyer is a corporation duly organized, validly existing           and in good
standing under the laws of the State of Israel, and has the           corporate power and
authority to execute, deliver and perform this Agreement and           the documents
contemplated hereby. The Buyers authorized capital consists           of 40,000,000
ordinary shares, par value of NIS 0.01 per share (the Buyer           Shares).
As of March 31, 2006, 15,480,144 Buyer Shares were issued and           outstanding and
approximately390,000 Buyer Shares may be issued upon           exercise of
outstanding options granted pursuant to various stock option and           stock award
programs of Buyer. All Buyer Shares to be issued pursuant to           subsections 2(a)
and 2(b) will be, when so issued, duly authorized, validly           issued, fully paid
and nonassessable, and will not be issued in violation of any           preemptive
rights. Since the close of business on the Capital Structure Date, no           shares of
capital stock or other equity securities of Buyer have been issued or           reserved
for issuance or become outstanding, other than Buyer Shares described           in this
subsection 5(a) that have been issued upon the exercise of outstanding           options.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        Authority.
Buyer has the requisite corporate power and authority to           execute and deliver
this Agreement, to perform its obligations hereunder and, to           consummate the
transactions contemplated hereby. This Agreement and the           documents contemplated
hereby to be executed and delivered by Buyer have been           duly executed and
delivered by Buyer, or will be duly executed and delivered by           Buyer, and
constitute, or will constitute when executed and delivered, the           legal, valid
and binding obligations of Buyer, enforceable against Buyer, in           accordance with
their respective terms, except as enforceability hereof and           thereof may be
limited by bankruptcy, insolvency, moratorium and other similar           laws affecting
creditors rights generally and by general principles of           equity (whether
considered in a proceeding in equity or at law or under           applicable legal
codes).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)        Governmental
Authorization. The execution, delivery and performance by           Buyer of this
Agreement and the consummation by Buyer of the transactions           contemplated hereby
require no action by or in respect of, or filing with, any           governmental body,
agency, official or authority other than (i) the filing by           Buyer of a current
report on form 6-K with the U. S. Securities and Exchange           Commission (the Commission);
(ii) the filing of a Notice of Sale of           Securities on Form D with the Commission
and such state agencies as required           under any applicable State Act; and (iii)
the filing of a copy thereof with           Israeli Securities Authority and the Tel Aviv
Stock Exchange.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)        Non-Contravention.
The execution and delivery of this Agreement, the           consummation of the
transactions provided for herein, and the fulfillment of the           terms hereof by
Buyer do not and will not, with or without the giving of notice,           the lapse of
time, or both, result in the breach of any of the terms and           provisions of, or
constitute a default under, or conflict with, or cause any           acceleration of any
obligation of Buyer under, any agreement, indenture or other           instrument by
which Buyer is bound; Buyers Articles of Association; any           judgment,
decree, order, or award of any court, governmental body, or           arbitrator; or any
applicable law, rule, or regulation.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (e)        Buyers
Reports and Financial Statements.
| | ----------------------------------------------------

| | (i)       Since
January 1, 2003, Buyer has filed all material forms, reports, schedules,
          statements and other documents with the Commission relating to periods
          commencing on or after such date required to be filed by it pursuant to the
U.S.           federal securities laws and the Commission rules and regulations
thereunder           (such forms, reports, schedules, statements and other documents, in
each case,           as amended, being hereinafter referred to as the Buyer
Commission           Filings). As of their respective dates, the Buyer Commission
Filings           complied in all material respects with all applicable requirements of
the U.S.           Federal securities laws and the Commission rules and regulations
promulgated           thereunder, applicable to a Foreign Private Issuer as
such term is           defined in SEC Rule 405 and SEC Rule 3b-4, including, to the
extent applicable,           the Sarbanes-Oxley Act of 2002 and the rules and regulations
promulgated           thereunder, did not contain any untrue statement of a material fact
or omit to           state a material fact required to be stated therein or necessary in
order to           make the statements therein, in light of the circumstances under which
they were           made, not misleading.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii)       Except
as set forth on Schedule 5(e)(ii), each of the consolidated           financial
statements of Buyer contained in the Buyer Commission Filings complied           as to
form in all material respects with applicable accounting requirements and           the
published rules and regulations of the Commission applicable thereto, has           been
prepared in accordance with US GAAP (except (A) as may be indicated therein           or
in the notes or schedules thereto) and (B) in the case of unaudited quarterly
          consolidated statements, as permitted by applicable commission rules and
          regulations) and presents fairly, in all material respects, the consolidated
          financial position of Buyer as of the dates thereof and the consolidated
results           of its operations and changes in cash flows for the periods then ended
(subject,           in the case of unaudited quarterly statements, to normal year-end
audit           adjustment).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)       Other
than with respect to the Corporations representations, warranties           and
agreements contained in Section 4 herein, and such documents to be delivered           by
the Corporation pursuant to Section 14 herein, neither this Agreement,
          including all Exhibits and Schedules, nor the closing documents, contains or
          will contain any untrue statement of any material fact concerning Buyer or
omits           or will omit to state any material fact concerning Buyer necessary to be
stated           in order to make any statement contained therein, document or other
instrument           not false or misleading.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)       No
Broker or Finder. Except for its obligation to SVB Alliant, Buyer has           not
taken any action, or incurred any obligation, contingent or otherwise, which
          would give rise to a valid claim against Stockholders and/or the Corporation by
          a broker, finder, agent or other intermediary for introducing the parties in
          connection with, or otherwise procuring, this Agreement or the transaction(s)
          contemplated hereby.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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6.       Continuation
and Survival of Representations and Warranties.

| | (a)       The
representations and warranties of the parties hereunder shall survive the
          consummation of the transaction provided for in this Agreement and shall expire
          after fifteen months from the Closing Date, except for the representations and
          warranties that are set forth in subsection 4(b), 4(g), 4(w), 5(a) and 5(b)
          which shall expire upon expiration of the applicable statute of limitations,
and           provided further that there shall be no expiration with respect to Knowing
          Misrepresentations on the part of the Corporation or Buyer . Knowing
          Misrepresentation shall mean any breach of a representation or warranty
          that is qualified as to the Corporations or Buyers knowledge, or
any           knowing breach of a representation or warranty that is not qualified as to
the           Corporations or Buyers knowledge as to which the Corporation or
          Buyer had actual knowledge of its falsity. To the knowledge,          knowing or
similar expressions shall mean (i) with respect to the           Corporation, the actual
knowledge of the Managers, the Corporations           officers and the members of
the Corporations Board of Directors as of the           date hereof, and (ii) with
respect to the Buyer, the actual knowledge of Giora           Dishon and Dror David.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       Each
representation, warranty and covenant contained herein is independent of           all
other representations, warranties and covenants contained herein (whether or
          not covering an identical or a related subject matter) and must be
independently           and separately complied with and satisfied. Exceptions or
qualifications to any           representations or warranties contained herein shall not
be construed as           exceptions or qualifications to any other warranty or
representation. No           representation or warranty of the Corporation contained
herein shall be deemed           to have been waived, affected or impaired by any
investigation made by, or           knowledge of, Buyer.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7.       Covenants
of the Corporation and Stockholders Prior to Closing.

| | (a)       Between
the date of this Agreement and the Closing Date the Corporation shall,           and the
Stockholders will cause the Corporation to, conduct the Business in the
          ordinary course and preserve intact the organization of the Corporation,
          maintain relations and good will with suppliers, customers, landlords,
          creditors, employees, agents and others having business relationships with the
          Corporation, and pay all of its obligations to suppliers, creditors and others
          in a timely manner.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       Between
the date of this Agreement and the Closing Date the Corporation shall,           and the
Stockholders will cause the Corporation to, use its reasonable efforts           to avoid
taking (or failing to take) any action which they know or should know           would
result in the inaccuracy of, or the breach or violation of, any of the
          representations, warranties, covenants and agreements of the Corporation set
          forth herein.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       Between
the date of this Agreement and the Closing Date, the Corporation and the
          Stockholders shall promptly notify Buyer in writing if they become aware of any
          fact or condition that causes or constitutes an inaccuracy in, or the breach or
          violation of, any of the representations, warranties, covenants or agreements
of           the Corporation and the Stockholders set forth herein.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)       Between
the date of this Agreement and the Closing Date the Corporation shall           and
Stockholders shall cause the Corporation to, afford Buyer (and its           attorneys,
accountants, representatives and agents) during normal business           hours, upon
reasonable advance notice, with full and free access to the           Corporations
premises, accounts, books and records, personnel, properties,           assets,
contracts, financial and tax information, and such other documents, data           and
information as Buyer may reasonably request, and to provide Buyer with such
          copies thereof as Buyer may reasonably request; provided, however, that Buyer
          shall schedule such access in such a way as to avoid material disruption of the
          normal business operations of the Corporation.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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8.       Covenants
of Buyer Prior to Closing.

| | (a)       Between
the date of this Agreement and the Closing Date, Buyer shall use its           reasonable
efforts to avoid taking (or failing to take) any action which it           knows or
should know would result in the inaccuracy of, or the breach or           violation of,
any of the representations, warranties, covenants and agreements           of Buyer set
forth herein.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       Between
the date of this Agreement and the Closing Date, Buyer shall promptly           notify
the Corporation in writing if Buyer becomes aware of any fact or           condition that
causes or constitutes a material inaccuracy in, or the material           breach or
violation of, any of the representations, warranties, covenants or           agreements
of Buyer.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       Buyer
shall use commercially reasonable efforts to maintain a presence in State
          College, Pennsylvania, which location will serve as the principal place of
          business for the Managers.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9.       Conditions
Precedent to Corporations and Stockholders Obligation           to Close.
Corporations and Stockholders obligation to sell the           Acquired
Assets, to take the other actions required to be taken by the           Corporation at
Closing, and to otherwise close the transactions subject to this           Agreement, is
subject to the satisfaction, at or prior to Closing, of each of           the following
conditions (any of which may be waived, in whole or in part, by           the
Corporation):

| | (a)       All
of Buyers representations and warranties in this Agreement must have           been
accurate in all material respects as of the date of this Agreement and must           be
accurate in all material respects as of the Closing Date as if made on the
          Closing Date, except for changes contemplated by this Agreement or consented to
          in writing by Corporation.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       All
of the covenants and obligations that Buyer is required to perform or comply
          with pursuant to this Agreement at or prior to Closing must have been performed
          and complied with in all material respects, except as otherwise consented to in
          writing by the Corporation.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       Buyer
must have delivered each of the documents required to be delivered to the
          Corporation pursuant to Section 14.
| | ---------------------------------------------------------------------------------------------------------------------------------------

| | (d)       Buyer
must have issued the Consideration Shares and the Employees Shares.
| | -----------------------------------------------------------------------------------

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| | (e)       There
shall be (i) in effect no injunction, decree, or order of any court of
          competent jurisdiction that prohibits the sale of the Acquired Assets to Buyer,
          or that otherwise prohibits this Agreement or the consummation of the
          transactions contemplated by this Agreement, that has been adopted or issued,
or           has otherwise become effective, since the date of this Agreement, and (ii)
no           action or litigation pending or threatened in writing by any Person since
the           date of this Agreement in which (A) an injunction is or may be sought
against           this Agreement or the transactions contemplated by this Agreement, or
(B) relief           is or may be sought against any party hereto as a result of this
Agreement or           the transactions contemplated hereby, and in which in the good
faith judgment of           the Corporation (relying on the advice of its legal counsel),
such Person has a           reasonable possibility of prevailing and such relief would
have a material           adverse effect on the Buyer or the Corporation as a whole.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10.       Conditions
Precedent to Buyers Obligation to Close. Buyers           obligation to
buy the Acquired Assets, to assume the Assumed Liabilities, to           issue the
Consideration Shares or the Employee Shares, to take the other actions           required
to be taken by Buyer at Closing, and to otherwise close the           transactions
pursuant to this Agreement, is subject to the satisfaction, at or           prior to
Closing, of each of the following conditions (any of which may be           waived, in
whole or in part, by Buyer):

| | (a)       All
of the representations and warranties of the Corporation in this Agreement           must
have been accurate in all material respects as of the date of this           Agreement
and must be accurate in all material respects as of the Closing Date           as if made
on the Closing Date, except for changes contemplated by this           Agreement or
consented to in writing by Buyer.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       All
of the covenants and obligations that the Corporation is required to perform           or
comply with pursuant to this Agreement at or prior to Closing must have been
          performed and complied with in all material respects, except as otherwise
          consented to in writing by Buyer.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       The
Corporation must have delivered each of the documents required to be           delivered
to Buyer pursuant to Section 13.
| | ---------------------------------------------------------------------------------------------------------------------------------------

| | (d)       Buyer
shall have negotiated and executed new agreements in form and substance
          satisfactory to Buyer amending the agreements listed on Schedule 10(d) with
the Persons listed therein.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)       There
shall not have occurred any theft, loss, damage, or destruction to or of a
          material portion of the assets, properties, or business of the Corporation,
          whether or not covered by insurance.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)       There
shall be (A) in effect no injunction, decree, or order of any court of
          competent jurisdiction that prohibits the sale of the Acquired Assets to Buyer,
          or that otherwise prohibits this Agreement or the consummation of the
          transactions contemplated by this Agreement, that has been adopted or issued,
or           has otherwise become effective, since the date of this Agreement, and (B) no
          action or litigation pending or threatened in writing by any Person since the
          date of this Agreement in which (x) an injunction is or may be sought against
          this Agreement or the transactions contemplated by this Agreement, or (y)
relief           is or may be sought against any party hereto as a result of this
Agreement or           the transactions contemplated hereby, and in which in the good
faith judgment of           Buyer (relying on the advice of its legal counsel), such
Person has a reasonable           possibility of prevailing and such relief would have a
material adverse effect           on Buyer, the Corporation or the Business.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (g)       There
shall not have been a material adverse change in the financial condition           and in
the results of operations of, and there shall not have been any material
          adverse change in the condition of the assets of or in the business prospects
of           the Corporation (taken as a whole).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h)       Buyer
shall have completed its due diligence review of the Corporation and the
          results of such review shall be satisfactory to Buyer. (i) Buyers Board
of           Directors shall have approved the consummation of the transactions
contemplated           by this Agreement.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11.       Termination.

| | (a)       This
Agreement may be terminated, and the purchase of the Acquired Assets, the
          assumption of the Assumed Liabilities and the other transactions contemplated
by           this Agreement may be abandoned, as follows:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)       By
the mutual written consent of the Buyer and the Corporation.
| | -------------------------------------------------------------------------

| | (ii)       By
the Corporation, if any of the conditions set forth in Section 9 has not
          been satisfied or waived in writing by the Corporation on or prior to Closing.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii)       By
Buyer, if any of the conditions set forth in Section 10 have not been
          satisfied or waived in writing by Buyer on or prior to Closing.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv)       By
Buyer or the Corporation, if Closing has not been consummated (for any reason
          other than a breach or violation of any representation, warranty, covenant or
          agreement contained in this Agreement by the party seeking such termination) on
          or before August 31, 2006 (or such later date, as to which the Corporation and
          Buyer, in their respective sole and absolute discretion, may agree in writing).
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v)       By
Buyer, if the Corporation in good faith files on or before Closing any           petition
in bankruptcy, reorganization, liquidation or receivership, or a           petition in
bankruptcy, reorganization, liquidation or receivership is filed on           or before
Closing against the Corporation by any Person not a party to this           Agreement and
is not withdrawn or dismissed on or before Closing.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vi)       By
the Corporation, if Buyer in good faith files on or before Closing any           petition
in bankruptcy, reorganization, liquidation or receivership, or a           petition in
bankruptcy, reorganization, liquidation or receivership is filed on           or before
Closing against the Buyer by any Person not a party to this Agreement           and is
not withdrawn or dismissed on or before Closing.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       If
the Corporation terminates this Agreement in accordance with           subsection 11(a),
the Corporation shall give Buyer prompt written notice of           such termination,
including in reasonable detail the basis for such termination.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (c)       If
Buyer terminates this Agreement in accordance with subsection 11(a),           Buyer
shall give the Corporation prompt written notice of such termination,           including
in reasonable detail the basis for such termination.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)       The
termination of this Agreement shall render null and void, and of no further
          force or effect, all of the rights and obligations of the parties under this
          Agreement; provided, however, that no such termination shall be deemed to
          relieve any defaulting or breaching party from any liability to the other
          parties hereto, or to otherwise eliminate, reduce or affect in any way any
cause           of action, action or claim, whether at law, in equity or otherwise, which
any           non-defaulting and non-breaching party may or shall have against the
defaulting           or breaching party under or arising out of this Agreement, or to be
deemed an           election of remedies which precludes, waives or otherwise affects any
of the           foregoing.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12.       Closing
Date. The Closing of the transactions provided for in this           Agreement
(herein sometimes called the Closing) shall take place at           the
offices of Buyers counsel, Wolf, Block, Schorr and Solis-Cohen LLP,           1650
Arch Street, 22nd Floor, Philadelphia, PA, at 11:30 a.m. on August 3, 2006,           or
at such other place, date and time as shall be agreed to in writing between
          Buyer and the Corporation. The date and time of Closing is sometimes herein
          called the Closing Date.

13.       Deliveries
by the Corporation at Closing. At the Closing, the Corporation           will deliver
or cause to be delivered to Buyer the following in form and           substance
reasonably acceptable to counsel to Buyer:

| | (a)       Bill
of Sale in the form attached hereto as Exhibit B;
| | ------------------------------------------------------------------

| | (b)       Assignment
of Registrable IP in the form attached hereto as Exhibit           C;
| | --------------------------------------------------------------------------------------------

| | (c)       a
certified copy of the Certificate of Incorporation of the Corporation, and all
          amendments thereto, issued by the Department of State of Delaware and dated as
          of a date within thirty (30) days prior to the Closing Date;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)       good
standing and no tax Lien certificates for the           Corporation
issued by each jurisdiction in which the Corporation is incorporated           or
qualified to do business as a foreign corporation, all of which shall be           dated
as of a date within thirty (30) days prior to the Closing Date;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)       the
Employees Employment Agreements duly executed and delivered by each Employee           on
or prior to the Closing Date, each substantially in the form attached hereto           as
Exhibit A-1";
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)       the
Employees Agreements Not to Compete duly executed and delivered by each
          Employee on or prior to the Closing Date, each substantially in the form
          attached hereto as Exhibit A-2";
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)       the
Employees Restricted Stock Agreements duly executed and delivered by each
          Employee (other than the Managers) on or prior to Closing Date each
          substantially in the form attached hereto as Exhibit A-3(i)";
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (h)       the
Managers Restricted Stock Agreements duly executed and delivered by each
          Manager on or prior to Closing Date each substantially in the form attached
          hereto as Exhibit A-3(ii)";
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)       a
certificate executed by the Chief Executive Officer of the Corporation
          certifying as to the matters set forth in subsection 10(a) and subsection
10(b);
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (j)       a
certificate of the Secretary dated the Closing Date, certifying the           Corporations
certificate of incorporation, bylaws and resolutions of           Corporations
board of directors and Stockholders relating to this           agreement and the
transactions provided for herein including without limitation,           any waiver by
each Stockholder of any right, preference or privilege to which           such
Stockholder is entitled in connection with the transactions contemplated
          hereby; and
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (k)       all
such further documents, instruments and agreements which may be reasonably
          requested by Buyer or its counsel to assign the Assigned Contracts and effect
          and carry out any provision of this Agreement.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

14.       Deliveries
by Buyer at Closing. At the Closing, Buyer will deliver or           cause to be
delivered to, as the case may be, to the Corporation, the following:

| | (a)       the
duly executed stock certificates representing the Consideration Shares;
| | -------------------------------------------------------------------------------------

| | (b)       a
Certificate of the Secretary of Buyer, dated as of the Closing Date,           confirming
that all necessary corporate action has been taken to authorize the           execution
and delivery of this Agreement by Buyer;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       the
Employees Employment Agreements duly executed and delivered on or prior to           the
Closing Date, each substantially in the form attached hereto as Exhibit           A-1",
the terms of each taken as a whole being, with respect to each           employee, no
less favorable than the terms each such Employee received from the           Corporation
immediately prior to the date hereof;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)       the
Employees Agreements Not to Compete duly executed and delivered on or prior           to
the Closing Date, each substantially in the form attached hereto as Exhibit
          A-2";
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)       the
Employees Restricted Securities Agreement duly executed and delivered by           each
Employee (other than the Managers) on or prior to Closing Date, each
          substantially in the form attached hereto as Exhibit A-3(i)";
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)       the
Managers Restricted Securities Agreement duly executed and delivered by each
          Manager on or prior to Closing Date, each substantially in the form attached
          hereto as Exhibit A-3(ii)";
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)       a
certificate executed by the President or Chief Executive Officer of Buyer
          certifying as to the matters set forth in subsections 9(a) and 9(b); and
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 31 -

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| | (h)       all
such further documents, instruments and agreements which may be reasonably
          requested by the Corporation or counsel to the Corporation to effect and carry
          out any provision of this Agreement.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

15.       Indemnification.

| | (a)       Indemnification
of Buyer. Subject to any provisions hereof to the           contrary, the Corporation
the Stockholders and the Managers hereby, jointly and           severally, indemnify and
agree to hold harmless Buyer, its successors and           assigns and each such entitys
officers, directors, shareholders and agents           (collectively, the Buyer
Indemnified Parties) (each of whom shall be           a third party beneficiary
hereof) from, against and in respect of the amount of           any and all Corporation
Deficiencies (as hereinafter defined); provided,           however, that other than as
specifically set forth herein, each           Stockholders liability for
Corporation Deficiencies shall be several and           not joint.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       Definition
of Corporation Deficiencies. As used in this           Section 15, Corporation
Deficiencies means any and all loss or           damage incurred by the Buyer
Indemnified Parties resulting from:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)       any
misrepresentation, breach of any representation or warranty, or any
          non-fulfillment of any representation, warranty, covenant or agreement on the
          part of the Corporation contained in Section 4 herein;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii)       the
conduct of the Corporations business to the extent not constituting an
          Assumed Liability;
| | -------------------------------------------------------------------------------------------------------------------

| | (iii)       any
Excluded Liability; or
| | --------------------------------------

| | (iv)       any
and all actions, suits, proceedings, demands, assessments, penalties,
          liabilities, judgments, reasonable attorneys fees, costs, expenses and
          interest incident to any of the foregoing.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       Indemnification
of the Corporation and Stockholders. Subject to any           provisions hereof to
the contrary, Buyer hereby indemnifies and agrees to hold           harmless the
Corporation and the Stockholders, and each of their respective           successors and
assigns and each such entitys officers, directors,           shareholders and
agents (collectively the Seller Indemnified           Parties) (each of whom
shall be a third party beneficiary hereof) from,           against and in respect of the
amount of any and all Buyer Deficiencies (as           hereinafter defined).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)       Definition
of Buyer Deficiencies. As used in this Section 15,           Buyer
Deficiencies means any and all loss or damage incurred by the           Corporation
or the Stockholders resulting from:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)       any
misrepresentation, breach of any representation or warranty, or any
          non-fulfillment of any representation, warranty, covenant or agreement on the
          part of the Buyer contained in Section 5 herein;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii)       any
Assumed Liability;
| | ---------------------------------

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| | (iii)       any
liability or obligation arising from the conduct of the business by Buyer           after
the Closing Date to the extent that such liability or obligation would not           be
the result of any Corporation Deficiency set forth in subsection 15(b); or
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv)       any
and all actions, suits, proceedings, demands, assessments, penalties,
          liabilities, judgments, reasonable attorneys fees, costs, expenses and
          interest incident to any of the foregoing.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)       Procedures
for Establishment of Deficiencies.
| | -------------------------------------------------------

| | (i)       In
the event that any claim shall be asserted against a party which, if           sustained,
would result in a Deficiency, the indemnified party, within a           reasonable time
after learning of such claim, shall notify the indemnifying           party of such
claim, and shall extend to the indemnifying party a reasonable           opportunity to
defend against such claim, at the indemnifying partys sole           expense and
through legal counsel reasonably satisfactory to the indemnified           party,
provided that the indemnifying party proceeds in good faith,           expeditiously and
diligently. The indemnified party shall, at its option and           expense, have the
right to participate in any defense undertaken by the           indemnifying party with
legal counsel of its own selection. If the indemnifying           party, in the
reasonable judgment of the indemnified party, has failed to           prosecute such
defense in good faith in an expeditious and diligent manner, the           indemnified
party shall have the right to defend and/or settle such claim on           behalf of the
indemnifying party. No settlement or compromise of any claim which           may result
in a Deficiency may be made by the indemnifying party without the           prior written
consent of the indemnified party unless the proposed settlement is           solely a
monetary settlement and prior to such settlement or compromise the           indemnifying
party acknowledges in writing the indemnifying party obligation to           pay in full
the amount of the settlement and all associated expenses and the           indemnified
party is furnished with either (A) security reasonably satisfactory           to the
indemnified party that the indemnifying party will in fact pay such           amount and
expenses, or (B) a full release from the claimant in form and           substance
reasonably satisfactory to the indemnified party.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii)       In
the event that the indemnified party asserts the existence of any Deficiency,
          the indemnified party shall give written notice to the indemnifying party of
the           nature and amount of the Deficiency asserted. The indemnified party shall
          reasonably cooperate with such actions as the indemnifying party may seek to
          take to mitigate the impact of any alleged breach. Such request shall not be
          deemed to constitute an admission of liability on the part of the indemnifying
          party. If the indemnifying party, within a period of fifteen (15) business days
          after the giving of such notice by the indemnified party, shall not give
written           notice to the indemnified party announcing its intention to contest
such           assertion of the indemnified party (such notice by the indemnifying party
being           hereinafter called the Contest Notice), such assertion of the
          indemnified party shall be deemed accepted and the amount of the Deficiency
          shall be deemed established. In the event, however, that a Contest Notice is
          given to the indemnified party within said 15-day period, then the contested
          assertion of a Deficiency may be established pursuant to the provisions of
          Section 19 herein.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (iii)       The
indemnified and indemnifying parties may agree in writing, at any time, as           to
the existence and amount of a Deficiency, and, upon the execution of such
          agreement, such Deficiency shall be deemed established.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)       Payment
of Deficiencies. Subject to the limitations set forth in           subsection (g),
the indemnifyingparty hereby agree to pay in cash the           amount of each
established Deficiency to the indemnified party within five (5)           business days
after the final establishment thereof. Any amounts not paid by the           indemnifying
party when due under this subsection 15(f) shall bear interest from           the due
date thereof until the date paid at a rate equal to 3% over the           prime rate as
published from time to time in The Wall Street           Journal.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)       Limitation.
| | ---------------------

| | (i)       With
the exception of (A) any Deficiencies resulting from any misrepresentation           or
breach of representation or warranty contained in subsections 4(b),           4(g),
4(w), 5(a) and 5(b) herein or (B) any claims of Knowing Misrepresentation           on
the part of any party to this Agreement, there shall be no liability for any
          Deficiencies resulting from any misrepresentation or breach of representation
or           warranty on the part of either the Corporation under Section 4 or Buyer
under           Section 5.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii)       With
respect to Deficiencies resulting from any (A) misrepresentation or breach           of
representation or warranty contained in subsections 4(b), 4(g), 4(w),           5(a)
and 5(b) herein; or (B) any Knowing Misrepresentation, neither party shall           be
liable or otherwise responsible for that portion of any such Deficiencies           that
exceeds an amount equal to the value at the Closing Date of the Buyer           Shares
issuable pursuant to this Agreement. The Corporation, the Stockholders or           the
Managers, may satisfy and discharge such liability by tendering back to the
          Buyer the Buyer Shares received by them pursuant to this Agreement, such Buyer
          Shares being deemed to have the value of such Buyer Shares at the Closing Date.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii)       Notwithstanding
any of the foregoing, any party to this Agreement shall have           unlimited recourse
against any other party that has committed any Knowing           Misrepresentation.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

16.       Board
Observer. As of Closing, and for so long as the Corporation           continues to
hold, or in the event that following distribution of Buyer Shares           by the
Corporation to the Stockholders the Stockholders continue to hold, in the
          aggregate, Buyer Shares in an amount equal to 7.1% of the outstanding capital
          stock of Buyer, the Representative shall be entitled to designate one
individual           (the Observer) to attend and observe any regular or
special meeting           of the board of directors of the Buyer and shall be entitled to
receive all           information distributed to the board of directors of the Buyer at
the time of           the original distribution of such information; provided, however,
that the           Observer shall agree to hold in confidence and trust and to act in a
fiduciary           manner with respect to all information so provided and to be bound by
the           Buyers code of ethics, policies and procedures; and provided further,
that           the Buyer reserves the right to withhold any information and to exclude
the           Observer from any meeting or portion thereof for any reason if access to
such           information or attendance at such meeting could affect any evidentiary
privilege           between Buyer and its advisors or otherwise adversely affects Buyer.
The initial           Observer will be Craig Gomulka.

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17.       Piggyback
Registration Rights. At any time after the Buyer Shares issued           to the
Corporation pursuant to this Agreement have been distributed to the
          Stockholders by the Corporation, and/or the Employees Shares have been vested
          and distributed to the Employees or their designees, if Buyer at any time
          proposes to register any of its securities under the Securities Act for sale to
          the public (except with respect to registration statements on Forms S-4,
          F-4 or S-8 or another form not available for registering the Buyer Shares to be
          issued under this Agreement for sale to the public), each such time it will
give           written notice of its intention to do so to the Representative who will
provide           notice of the same to all persons who received Buyer Shares hereunder.
Upon the           written request of any of such holders made to the Representative
within fifteen           (15) days after receipt of such notice, and forwarded to Buyer
within five (5)           days thereafter, Buyer will, subject to the limits contained in
this Section 17,           use its best efforts to cause all such Buyer Shares then held
by such holders           which are sought to be registered hereunder, to be registered
under the           Securities Act and qualified for sale under any state blue sky law,
all to the           extent requisite to permit such sale or other disposition by such
holders of the           Buyer Shares so registered; provided, however, that if Buyer is
advised in           writing in good faith by any managing underwriter of the Buyers
securities           being offered in a public offering pursuant to such registration
statement that           the amount to be sold by Persons other than the Buyer
(collectively,           Selling Security Holders) is greater than the amount
which can be           offered without adversely affecting the offering, Buyer may reduce
the amount           offered for the accounts of all Selling Security Holders (including
the           Stockholders and other holders of Buyer Shares hereunder) who have a
          contractual, incidental piggy back right to include such securities
          in a registration statement to a number deemed satisfactory by such managing
          underwriter; provided, however, that no reduction shall be made
in           the amount of Buyer Shares offered for the accounts of the Stockholders and
          other holders hereunder unless such reduction is imposed pro rata with respect
          to all securities whose holders have or may hereafter acquire a contractual,
          incidental piggy back right to include such securities in the
          registration statement as to which inclusion has been requested pursuant to
such           right. Notwithstanding the foregoing, Buyers obligation to register
the           Buyer Shares under this Section 17 shall terminate at such time when the
holders           thereof may sell all of such Buyer Shares, without limitation or
restriction, as           to timing and amount, pursuant to Rule 144 of the
Securities Act.

18.       Further
Assurances. Buyer, the Corporation and Stockholders agree to           execute and
deliver all such other instruments and take all such other action as           any party
may reasonably request from time to time, after the date hereof and           without
payment of further consideration, in order to effectuate the           transactions
provided for herein. The parties shall cooperate fully with each           other and with
their respective counsel and accountants in connection with any           steps required
to be taken as part of their respective obligations under this           Agreement,
including, without limitation, the preparation of financial           statements and
preparation and filing of Tax Returns.

- 35 -

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19.       Dispute
Resolution.

| | (a)       In
the event of a dispute between the parties, including indemnification claims
          pursuant to Section 15, the parties shall first promptly attempt in good faith
          to resolve such dispute for a period of not less than thirty (30) calendar
days.           If such good faith efforts are not successful within such 30-day period,
at any           time thereafter, any party may give the other written notice of a
dispute (a           Dispute Notice), the parties shall attempt in good faith
to agree to           the appointment of an independent mediator (a Mediator)
to assist           the parties in resolving the dispute. Should the parties agree to a
Mediator,           the matter shall be referred to such Mediator for resolution in
accordance with           the usual practices and procedures of such Mediator; provided,
however, that no           party shall have an obligation to participate in any mediation
after a date           which is thirty (30) calendar days after the applicable Dispute
Notice was           served. The parties shall cooperate with the Mediator and shall
provide any           relevant information requested by the Mediator. If the parties
cannot agree on           the selection of a Mediator within twenty (20) calendar days
after delivery of           the Dispute Notice, or if the dispute is not resolved by the
Mediator as           provided herein, then the dispute shall be determined by
arbitration in           accordance with the provisions of subsection 19(b) hereunder.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       Any
dispute which is not settled or otherwise resolved through the provisions of
          subsection 19(a) above shall be determined by arbitration in Philadelphia,
          Pennsylvania by a single arbitrator in accordance with the rules of the
American           Arbitration Association (AAA) or any other rules agreed
upon by the           parties, except that (i) every person named on any list of
potential arbitrators           shall be a neutral and impartial lawyer with excellent
academic and professional           credentials who has practiced law for at least
fifteen (15) years, specializing           in either general commercial litigation or
general corporate and commercial           matters, and who has had experience, and is
generally available to serve, as an           arbitrator, and (ii) each party shall be
entitled to strike on a peremptory           basis, for any reason or no reason, any or
all of the names of potential           arbitrators on any list submitted to the party by
the AAA as well as any person           selected by the AAA to serve as an arbitrator by
administrative appointment. In           the event the parties cannot agree on the
selection of the arbitrator from the           one or more lists submitted by the AAA
within thirty (30) calendar days after           the AAA transmits to the parties its
first list of potential arbitrators, AAA           shall nominate three Persons who meet
the criteria set forth herein. Each party           shall be entitled to strike one of
such three nominees on a peremptory basis           within five (5) calendar days after
its receipt of such list of nominees,           indicating its order of preference with
respect to the remaining nominees. If           two of such nominees have been stricken
by the parties to the dispute, the           unstricken nominee shall be the arbitrator.
Otherwise, the selection of the           arbitrator shall be made by the AAA from the
remaining nominees in accordance           with the parties mutual order of
preference, or by random selection in the           absence of a mutual order of
preference. The arbitrator shall base his or her           award on the terms of this
Agreement, on applicable law and judicial precedent,           shall include in such
award the findings of fact and conclusions of law upon           which the award is based
and shall not grant any remedy or relief that a court           could not grant under
applicable law. The arbitration shall be governed by the           substantive laws of
the Commonwealth of Pennsylvania applicable to contracts           made and to be
performed therein, without regard to conflicts of laws rules.           Judgment on the
award rendered by the arbitrator(s) may be entered in any court           having
jurisdiction thereof.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       If
any party to a dispute fails to proceed with the dispute resolution           procedures
set forth in this Section 19 or unsuccessfully seeks to stay such           proceedings,
or fails to comply with any arbitration award, or is unsuccessful           in vacation
or modifying the award pursuant to a petition or application for           judicial
review, the other party shall be entitled to be awarded costs,           including
reasonable attorneys fees, paid or incurred by such other party           in
successfully compelling such proceedings or defending against the attempt to
          stay, vacate or modify such arbitration award and/or successfully defending or
          enforcing the award.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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20.       Representative.

| | (a)       For
purposes of this Agreement, the Representative shall meanDon Jones.
All actions of the Representative shall be made personally by the
          Representative, and no Representative shall be permitted to assign or delegate
          its rights or duties, whether by operation of law or otherwise. In the event of
          the death, incapacity, incompetency, disability or resignation of the
          Representative, the Corporation, or if dissolved at such time, the remaining
          Stockholders shall elect a new Representative who shall have full authority to
          take all actions required or permitted to be taken by the Representative under
          this Agreement. Prompt written notice of the election of a substitute
          Representative shall be provided to Buyer by the substitute Representative so
          elected, and Buyer shall be entitled to rely on the authority of any substitute
          Representative elected pursuant to the procedures set forth in this subsection
          20(a).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       In
addition to, and not in substitution of, the provisions set forth in           subsection
20(a), the Corporation and each of the Stockholders hereby authorizes           the
Representative to take any and all actions (or not to take any or all           actions),
and/or to prepare, determine, calculate, negotiate, execute and           deliver any and
all agreements, notices, consents, determinations, documents and           other
instruments, which the Corporation or any such Stockholder (or the
          Representative on behalf of the Corporation of any such Stockholder) is
required           or permitted to take, prepare, determine, calculate, negotiate,
execute and/or           deliver under or pursuant to this Agreement and/or as
contemplated by this           Agreement, all in the name of and on the behalf of the
Corporation or any such           Stockholder, including, but not limited to, the making
and execution of any           amendments to this Agreement, the giving and receipt of
any notices or consents           pursuant hereto, the execution of any and all documents
required to be executed           in order to complete Closing hereunder or appropriate
or incidental to so           complete Closing hereunder, to calculate, determine,
negotiate and give notice           of or otherwise with respect to any adjustment to any
issuance of Buyer Shares           to be made pursuant to this Agreement, to accept
service of process in           connection with any claim related to this Agreement and
to prosecute, defend or           settle in the Representatives discretion all
indemnification disputes           (including hiring of counsel and other litigation
assistance). From and after           the Closing, Buyer shall be entitled to deal
exclusively with the Representative           with respect to any matter arising under
this Agreement. Such appointment shall,           to the fullest extent permitted by law,
survive the dissolution or liquidation           of the Corporation, the death,
disability, incapacity, or incompetency of any           Stockholder.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

21.       Miscellaneous.

| | (a)       Indulgences,
Etc. Neither the failure nor any delay on the part of any           party to exercise
any right, remedy, power or privilege under this Agreement           shall operate as a
waiver thereof, nor shall any single or partial exercise of           any right, remedy,
power or privilege preclude any other or further exercise of           the same or of any
other right, remedy, power or privilege, nor shall any waiver           of any right,
remedy, power or privilege with respect to any occurrence be           construed as a
waiver of such right, remedy, power or privilege with respect to           any other
occurrence. No waiver shall be effective unless it is in writing and           is signed
by the party asserted to have granted such waiver.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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---

| | (b)       Controlling
Law. This Agreement and all questions relating to its           validity,
interpretation, performance and enforcement (including, without           limitation,
provisions concerning limitations of actions), shall be governed by           and
construed in accordance with the laws of the Commonwealth of Pennsylvania,
          notwithstanding any conflict-of-laws doctrines of such state or other
          jurisdiction to the contrary, and without the aid of any canon, custom or rule
          of law requiring construction against the draftsman.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       Confidentiality;
Public Announcements. From and after the Closing, the           Corporation and the
Stockholders will treat and hold as such all of the           Confidential Information,
refrain from using any of the Confidential Information           except in connection
with this Agreement, and deliver promptly to the Buyer or           destroy, at the
request and option of the Buyer, all tangible embodiments (and           all copies) of
the Confidential Information which are within the Corporation or           the
Stockholders possession. In the event that the Corporation or any of           the
Stockholders, as the case may be, is requested or required (by oral question           or
request for information or documents in any legal proceeding, interrogatory,
          subpoena, civil investigative demand, or similar process) to disclose any
          Confidential Information, the Corporation or any such Stockholder shall notify
          the Buyer promptly of the request or requirement so that the Buyer may seek an
          appropriate protective order or waive compliance with the provisions of this
          subsection 20(c). If, in the absence of a protective order or the receipt
          of a waiver hereunder, the Corporation or any such Stockholder, as the case may
          be, is, on the advice of counsel, compelled to disclose any Confidential
          Information to any tribunal or else stand liable for contempt, the Corporation
          or any such Stockholder may disclose the Confidential Information to the
          tribunal; provided, however, that such Stockholder shall use reasonable best
          efforts to obtain, at the request of the Buyer at its sole expense, an order or
          other assurance that confidential treatment will be accorded to such portion of
          the Confidential Information required to be disclosed as the Buyer shall
          designate. Confidential Information shall mean confidential
          information and trade secrets of the Corporation, including without limitation,
          (i) the identity, lists or descriptions of any customers, referral sources or
          organizations; (ii) financial statements, cost reports or other financial
          information; (iii) contracts proposals, or bidding information; (iv) business
          plans, product roadmaps and training operations, methods and manuals; (v)
          personnel records; and (vi) fee structure and management systems, policies or
          procedures, including related forms and manuals and (vii) any data, software,
          reports, formulae, drawings, sketches and other information disclosed by the
          Corporation to any Stockholder and was identified as confidential or
proprietary           in connection with such disclosure. The Representative shall
consult with Buyer           and Buyer shall consult with the Representative before
issuing any press release           or otherwise making any public statements with
respect to this Agreement, the           transactions contemplated hereby and any
negotiations in connection therewith           and, except as may be required under
applicable law, as provided above, shall           not issue any such press release or
make any such public statement prior to such           consultation.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)       No
Fractional Shares. No fractional shares may be issued in connection           with
this Agreement. Any number of Buyer Shares which may be issued pursuant to           any
provision of this Agreement shall be rounded to the nearest whole number.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)       Expenses.
Except as otherwise provided herein, each party shall pay the           fees and expenses
of its own advisers, counsel, accountants and other experts,           if any, and all
other expenses incurred by such party incident to the           negotiation, preparation,
execution, delivery and performance of this Asset           Purchase Agreement and any
documents or instrument contemplated in connection           therewith.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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---

| | (f)       Notices.
All notices, requests, demands and other communications required           or permitted
under this Agreement shall be in writing and shall be deemed to           have been duly
given, made and received only when delivered (personally, by           courier service
such as Federal Express, or by other messenger), when sent by           electronic
facsimile, addressed as set forth below:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | If
to Buyer:
| | --- | ------------

| | Nova
Measuring Instruments Ltd. 
P. O. Box 266 
Rehovoth 76100 
Israel 
Attention: Dror David 
Fax:  972-8-9407776
| | ------------------------------------------------------------------------------------------------------------------

| | with
a copy, given in the manner prescribed above, to:
| | ------------------------------------------------------

| | David
Gitlin, Esquire 
Wolf, Block, Schorr and Solis-Cohen LLP 
1650 Arch Street 
Philadelphia, PA 19103 
Telephone: 215-977-2284 
Fax: 215-405-3884
| | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | If
to Stockholder(s):
| | ---- | ---------------------

| | to
their respective addresses as set forth on Schedule 4(a)
| | -----------------------------------------------------------

| | (iii) | If
to the Corporation:
| | ----- | ----------------------

| | HyperNex,
Inc. 
3006 Research Drive 
State College, PA 16803 
Telephone:  814-235-0606 
Fax: 814-235-0605
| | ---------------------------------------------------------------------------------------------------------

| | with
a copy, given in a matter prescribed above, to:
| | ----------------------------------------------------

| | Michael
L. Hund, Esquire 
Buchanan Ingersoll PC 
213 Market Street, 3rd Floor 
Harrisburg, PA 17101 
Telephone: 717-237-4866 
Fax: 717-233-0852
| | -----------------------------------------------------------------------------------------------------------------------------------------------

- 39 -

---

---

| | (iii) | If
to the Representative:
| | ----- | -------------------------

| | Don
Jones 
c/o Draper Triangle Ventures L.P. 
Two Gateway Center, 20th Floor 
Pittsburgh, PA 15222 
Telephone:412-288-9800
| | --------------------------------------------------------------------------------------------------------------------------

| | Any
party may alter the address to which communications or copies are to be sent by giving
notice of such change of address in conformity with the provisions of this subsection for
the giving of notice.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)        Exhibits
and Schedules. All Exhibits and Schedules attached hereto are           hereby
incorporated by reference into, and made a part of, this Agreement.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h)        Binding
Nature of Agreement. This Agreement shall be binding upon and           inure to the
benefit of the parties hereto and their respective successors and           assigns,
except that the Corporation and the Stockholders may not assign or           transfer
their rights or obligations under this Agreement other than by           operation of law
without the prior written consent of Buyer (which consent shall           not be
unreasonably delayed, conditioned or withheld).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)        Execution
in Counterparts. This Agreement may be executed in any number           of
counterparts, each of which shall be deemed to be an original as against any
          party whose signature appears thereon, and all of which shall together
          constitute one and the same instrument.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (j)        Provisions
Separable. The provisions of this Agreement are independent of           and
separable from each other, and no provision shall be affected or rendered
          invalid or unenforceable by virtue of the fact that for any reason any other or
          others of them may be invalid or unenforceable in whole or in part. However, in
          the event any provision of this Agreement shall be held or declared invalid or
          unenforceable in whole or in part by any court of competent jurisdiction, such
          court shall (to the full extent permitted by applicable law) revise or reform
          the Agreement, and/or take such other action as may be necessary or
appropriate,           with respect to such invalid or unenforceable provision so as to
carry out the           intent of the parties as expressed in this Agreement in a manner
that is not so           invalid or unenforceable.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (k)        Entire
Agreement. This Agreement contains the entire understanding           between the
parties hereto with respect to the subject matter hereof, and           supersedes all
prior and contemporaneous agreements and understandings,           inducements or
conditions, express or implied, oral or written.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (l)        Section
Headings. The Section headings in this Agreement are for           convenience only;
they form no part of this Agreement and shall not affect its           interpretation.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (m)        Gender
and Number. Words used herein, regardless of the number and gender
          specifically used, shall be deemed and construed to include any other number,
          singular or plural, and any other gender, masculine, feminine or neuter, as the
          context indicates is appropriate.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 40 -

---

---

| | (n)        Number
of Days. In computing the number of days for purposes of this           Agreement,
all days shall be counted, including Saturdays, Sundays and Holidays;           provided,
however, that if the final day of any time period falls on a Saturday,           Sunday
or Holiday; then the final day shall be deemed to be the next day which           is not
a Saturday, Sunday or such Holiday. For purposes of this Section,           Holiday shall
mean a day, other than a Saturday or Sunday, on which           national banks are or may
elect to be closed.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# [Intentionally left
blank]

- 41 -

---

---

IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered by
their proper and duly authorized officers, effective on the date first above written.

| | NOVA MEASURING INSTRUMENTS, LTD.
By: /s/ Giora Dishon
Name: Giora Dishon
Title: President and Chief Executive Officer
HYPERNEX, INC.
By: /s/ David S. Kurtz
Name: David Kurtz
Title: President
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---

STOCKHOLDERS:

(numbers
next to each Stockholders Name reflect such Stockholders holding of the
capital stock of the Corporation)

|80,093 - A 
49,050 - A2 | DRAPER TRIANGLE VENTURES L.P.
By:    Draper Triangle Partners, LLC, its
       General Partner
By: ________________________________________
Name: ______________________________________
Title: _______________________________________
Date: _______________________________________
|----------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|402 - A         
                
                
                
                
                
                
                
10,556 - Common 
1,548 - A       
                
45,000 - Common 
1,548 - A       
                
1,548 - A       
                
                
1,548 - A       
613 - A2 | DRAPER TRIANGLE VENTURES
CO-INVESTMENT FUND, L.P.
By:    Draper Triangle Partners, LLC, its
       General Partner
By: ________________________________________
Name: ______________________________________
Title: _______________________________________
Date: _______________________________________
___________________________________________
Robert Anderson
Date: _______________________________________
___________________________________________  
David S. Kurtz
Date: _______________________________________
___________________________________________  
Gary Hillman
Date: _______________________________________
SONHENDER PARTNERSHIP L.P.
By:    Sonhender, Inc., its General Partner
By: ________________________________________
Name: ______________________________________
Title: _______________________________________
Date: _______________________________________
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---

|1,548 - A       
613 - A2        
                
1,548 - A       
                
                
3,096 - A       
1,226 - A2      
                
4,644 - A       
1,839 - A2
                
                
                
                
12,384 - A      
4,906 - A2
                
                
                
                
28,008 - A      
3,065 - A2      
                
                
                
26,000 - Common 
                
                
20,624 - Common | ___________________________________________      
Brian M. McInerney
Date: _______________________________________
___________________________________________      
William F. Stotz
Date: _______________________________________
___________________________________________      
James D. Roberge
Date: _______________________________________
H. L. PAC PARTNERSHIP
By: ________________________________________
Name: ______________________________________
Title: _______________________________________
Date: _______________________________________
GLEN ARDEN ASSOCIATES
By: ________________________________________
Name: ______________________________________
Title: _______________________________________
Date: _______________________________________
ADVANCED TECHNOLOGY MATERIALS,
INC.
By: ________________________________________
       Daniel P. Sharkey, Chief Financial Officer
Date: _______________________________________
___________________________________________      
Krzysztof J. Kozaczek
Date: _______________________________________
___________________________________________      
Paul Moran
Date: _______________________________________
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---

|10,556 - Common 
                
                
                
42,765 - A2     
                
                
                
                
                
                
1,196 - A2      
                
                
                
                
                
2,023 - A2      
                
                
                
                
                
45,984 - A2 | CREATIVE DESIGN CORPORATION
By: ________________________________________
       Gary Hillman, President
Date: _______________________________________
DRAPER FISHER JURVETSON FUND VI, L.P.
By:    Draper Fisher Jurvetson Management
       Company VI, LLC, its General Partner
By: ________________________________________
Name: ______________________________________
Title: _______________________________________
Date: _______________________________________
DRAPER FISHER JURVETSON PARTNERS
VI, LLC
By: ________________________________________
Name: ______________________________________
Title: _______________________________________
Date: _______________________________________
DRAPER ASSOCIATES, L.P.
By:    ___________________, its General Partner
By: ________________________________________
Name: ______________________________________
Title: _______________________________________
Date: _______________________________________
CID SEED FUND, L.P.
By:    CID Seed Fund Partners I, its General
       Partner
By: ________________________________________
Name: ______________________________________
Title: _______________________________________
Date: _______________________________________
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---

|8,124 - A2 | BEN FRANKLIN TECHNOLOGY PARTNERS,
CENTRAL AND NORTHERN PENNSYLVANIA
By: ________________________________________
Name: ______________________________________
Title: _______________________________________
Date: _______________________________________
|---------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---