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EXHIBIT 4.(a).5

# ASSET PURCHASE
AGREEMENT

By and Among
Scitex Vision Ltd.
AndTech Ink (Pty) Ltd.
AndKovacs Investments 183 (Pty) Ltd.
AndKovacs Investments 319 (Pty) Ltd.
AndHewlett-Packard Company

Dated as of August 11, 2005



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TABLE OF CONTENTS

|                                                           |                                                         
|---------------------------------------------------------- | --------------------------------------------------------
|
|
|
|
|ARTICLE 1.   ASSETS AND LIABILITIES                        | 1                                                       
|1.1                                                        | PURCHASE AND SALE OF ACQUIRED ASSETS                    
|1.2                                                        | PURCHASE AND SALE OF ASSUMED LIABILITIES                
|ARTICLE 2.   PURCHASE PRICE AND CLOSING                    | 4                                                       
|2.1                                                        | PURCHASE PRICE                                          
|2.2                                                        | ADJUSTMENT OF PURCHASE PRICE                            
|2.3                                                        | CLOSING                                                 
|2.4                                                        | CLOSING DELIVERIES OF THE COMPANY                       
|2.5                                                        | CLOSING DELIVERIES OF THE BUYERS                        
|2.6                                                        | SIMULTANEOUS CLOSING                                    
|ARTICLE 3.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY | 9                                                       
|3.1                                                        | ORGANIZATION AND QUALIFICATION; SUBSIDIARIES            
|3.2                                                        | AGREEMENT AUTHORIZED AND ITS EFFECT ON OTHER OBLIGATIONS
|3.3                                                        | FINANCIAL STATEMENTS                                    
|3.4                                                        | NO UNDISCLOSED LIABILITIES                              
|3.5                                                        | ABSENCE OF CERTAIN CHANGES                              
|3.6                                                        | CONTRACTS                                               
|3.7                                                        | SUPPLIERS AND CUSTOMERS                                 
|3.8                                                        | TITLE TO PROPERTY; LEASED PROPERTY                      
|3.9                                                        | TAXES                                                   
|3.10                                                       | INTELLECTUAL PROPERTY                                   
|3.11                                                       | LITIGATION                                              
|3.12                                                       | ENVIRONMENTAL MATTERS                                   
|3.13                                                       | COMPLIANCE WITH OTHER LAWS; PERMITS                     
|3.14                                                       | BROKERS                                                 
|3.15                                                       | EMPLOYMENT MATTERS                                      
|3.16                                                       | PRODUCT WARRANTIES                                      
|3.17                                                       | USER DATA. EACH OF                                      
|3.18                                                       | RELATIONSHIPS WITH RELATED PERSONS                      
|3.19                                                       | GRANTS, INCENTIVES AND SUBSIDIES                        
|3.20                                                       | FOREIGN CORRUPT PRACTICES ACT                           
|3.21                                                       | HEDGING TRANSACTIONS                                    
|3.22                                                       | RECEIVABLES; BANK ACCOUNTS                              
|3.23                                                       | INVENTORY                                               
|3.24                                                       | INSURANCE                                               
|3.25                                                       | FULL DISCLOSURE                                         

i

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|                                                     |                                                               |   
|---------------------------------------------------- | ------------------------------------------------------------- | --
|
|
|
|
|ARTICLE 4.   REPRESENTATIONS AND WARRANTIES OF BUYER | 37                                                           
|4.1                                                  | ORGANIZATION                                                  | 37
|4.2                                                  | AUTHORITY                                                     | 37
|4.3                                                  | NONCONTRAVENTION                                              | 37
|4.4                                                  | APPROVALS                                                     | 38
|4.5                                                  | AVAILABLE FUNDS                                               | 38
|4.6                                                  | LITIGATION                                                    | 38
|4.7                                                  | BROKERS                                                       | 38
|ARTICLE 5.   COVENANTS                               | 39                                                           
|5.1                                                  | CONDUCT OF BUSINESS                                           | 39
|5.2                                                  | INVESTIGATION OF THE COMPANY'S BUSINESS BY THE BUYERS         | 42
|5.3                                                  | COMMERCIALLY REASONABLE EFFORTS                               | 42
|5.4                                                  | NON-SOLICITATION OF EMPLOYEES                                 | 46
|5.5                                                  | NON-COMPETE                                                   | 46
|5.6                                                  | CONFIDENTIAL INFORMATION                                      | 47
|5.7                                                  | NOTIFICATION OF CERTAIN MATTERS                               | 47
|5.8                                                  | PUBLIC ANNOUNCEMENTS                                          | 47
|5.9                                                  | EXCLUSIVE DEALINGS                                            | 48
|5.10                                                 | EMPLOYEE MATTERS                                              | 49
|5.11                                                 | TRANSITION PLANNING; TRANSITION                               | 51
|5.12                                                 | CONFIDENTIAL INFORMATION KNOWN TO CONTINUING EMPLOYEES        | 51
|5.13                                                 | KNOWLEDGE OF BUYERS                                           | 51
|5.14                                                 | TRANSFER TAX AND STAMP TAX                                    | 51
|5.15                                                 | PURCHASE PRICE ALLOCATION                                     | 51
|5.16                                                 | CHANGE OF NAME                                                | 52
|ARTICLE 6.   CONDITIONS TO CLOSING                   | 52                                                           
|6.1                                                  | CONDITIONS TO OBLIGATIONS OF EACH PARTY TO EFFECT THE CLOSING | 52
|6.2                                                  | CONDITIONS TO OBLIGATIONS OF THE BUYERS                       | 52
|6.3                                                  | CONDITIONS TO OBLIGATIONS OF THE COMPANY                      | 54
|ARTICLE 7.   TERMINATION                             | 55                                                           
|7.1                                                  | TERMINATION                                                   | 55
|7.2                                                  | EFFECT OF TERMINATION                                         | 56
|7.3                                                  | AMENDMENT                                                     | 56
|7.4                                                  | EXTENSION                                                     | 56

ii

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|                                          |                                                           |   
|----------------------------------------- | --------------------------------------------------------- | --
|
|
|
|
|ARTICLE 8.   SURVIVAL AND INDEMNIFICATION | 56                                                       
|8.1                                       | SURVIVAL OF REPRESENTATIONS AND WARRANTIES                | 56
|8.2                                       | ESCROW FUND; INDEMNIFICATION                              | 56
|8.3                                       | BUYER INDEMNIFICATION                                     | 62
|8.4                                       | INDEMNIFICATION IN CONNECTION WITH THE ADDITIONAL SELLERS | 63
|ARTICLE 9.   GENERAL PROVISIONS           | 64                                                       
|9.1                                       | ASSIGNMENT                                                | 64
|9.2                                       | PARTIES IN INTEREST                                       | 64
|9.3                                       | WAIVER; REMEDIES                                          | 64
|9.4                                       | FEES AND EXPENSES                                         | 64
|9.5                                       | NOTICES                                                   | 64
|9.6                                       | CAPTIONS; CURRENCY                                        | 66
|9.7                                       | ENTIRE DOCUMENT                                           | 66
|9.8                                       | SEVERABILITY                                              | 66
|9.9                                       | GOVERNING LAW; JURISDICTION                               | 66
|9.10                                      | SCHEDULES AND EXHIBITS; DISCLOSURE                        | 66
|9.11                                      | COUNTERPARTS                                              | 67
|9.12                                      | SPECIFIC PERFORMANCE                                      | 67
|9.13                                      | CONSTRUCTION INTERPRETATION                               | 67
|9.14                                      | OTHER REMEDIES                                            | 67
|ARTICLE 10.   DEFINITIONS                 | 67                                                       
|10.1                                      | CERTAIN DEFINITIONS                                       | 67
|10.2                                      | TERMS GENERALLY                                           | 80

iii

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# LIST OF SCHEDULES AND
EXHIBITS

|                 |                                                          
|---------------- | ---------------------------------------------------------
|
|
|
|
|Exhibit A        | Assignment and Assumption Agreement                      
|Exhibit B        | Budget and Operating Plan                                
|Exhibit C        | Escrow Agreement (to be attached prior to Closing)       
|Exhibit D        | General Assignment and Bill of Sale                      
|Exhibit E        | Products                                                 
|Exhibit F        | Transferred Technology                                   
|                 |                                                          
|Schedule 1.1(a)  | Company Subsidiaries Whose Shares are Being Purchased    
|Schedule 1.1(c)  | Excluded Subsidiaries                                    
|Schedule 1.2(b)  | Certain Assumed Liabilities                              
|Schedule 2.4(e)  | Board Resolution                                         
|Schedule 2.4(f)  | Opinion of HFN                                           
|Schedule 3       | Company Disclosure Schedule                              
|Schedule 5.1(a)  | Amendment or Change to Options                           
|Schedule 5.1(c)  | Amendment to Benefit Plans                               
|Schedule 5.1(m)  | Tax Election                                             
|Schedule 5.3(d)  | Consents List                                            
|Schedule 5.3(f)  | Company Employee                                         
|Schedule 6.2(g)  | Agreement between Company and Parent                     
|Schedule 6.2(h)  | Key Employees                                            
|Schedule 8.2(c)  | Deemed Losses                                            
|Schedule 8.3(b)  | Additional Liability for Buyer Indemnification           
|Schedule 8.4(a)  | Indemnification in connection with the Additional Sellers
|Schedule 10.1(b) | Acquired Contracts                                       

iv

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# ASSET PURCHASE
AGREEMENT

ASSET PURCHASE AGREEMENT dated as of
August 11, 2005 by and among (i) Hewlett-Packard Company (the Buyer),
(ii) Scitex Vision Ltd., a private company organized under the laws of the State of Israel
(the Company), and (iii) Tech Ink (Pty) Ltd., Kovacs Investments 183
(Pty) Ltd. and Kovacs Investments 319 (Pty) Ltd., companies incorporated under the laws of
South Africa (the Additional Sellers).

W  I  T  N  E  S  S  E  T  H  :

WHEREAS,
the Company and the Company Subsidiaries are engaged in the Business; and

WHEREAS, the
Company and the Additional Sellers wish to sell and assign to the Buyer (or one or more of
Buyers Affiliates) (collectively, the Buyers), and the Buyers
wish to purchase and assume from the Company and the Additional Sellers the Acquired
Assets and the Assumed Liabilities relating to the Business, all in consideration for the
Purchase Price and on the terms and conditions set forth herein; and

WHEREAS,
each of the Company, the Additional Sellers and the Buyer has determined the Transaction
desirable and in its best interests and has approved the Transaction pursuant to this
Agreement and all the other transactions contemplated hereby.

NOW,
THEREFORE, in consideration of the premises and of the mutual representations,
warranties, covenants and agreements hereinafter contained, the parties agree as follows:

# ARTICLE 1. ASSETS AND
LIABILITIES

1.1
Purchase and Sale of Acquired Assets.

| | (a)
          On the terms and subject to the conditions set forth in this Agreement (and the
          Assignment and Assumption Agreements and the General Assignments and Bills of
          Sale to be executed at the Closing), at the Closing, the Company and the
          Additional Sellers shall sell, convey, assign, transfer and deliver to the
          Buyers, and in reliance on the accuracy of the representations and warranties
          and the performance of the covenants of the Company and the Additional Sellers,
          the Buyers shall purchase, acquire and accept from the Company and the
          Additional Sellers, all of the Companys and the Additional Sellers          rights,
title and interest in and to the Acquired Assets, free and clear of all           Liens,
other than Permitted Liens, and without any further Liability that is not
          included in the Assumed Liabilities. All Company Subsidiaries whose shares
shall           be purchased by the Buyer (or one or more of Buyers Affiliates) are
set           forth in Schedule 1.1(a) attached hereto.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

1

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| | (b)
          Any Acquired Assets may be purchased by any Affiliate of the Buyer, as shall be
          designated by the Buyer, and any such Acquired Assets so purchased shall
require           separate instruments of transfer which shall be executed with such
Affiliate(s)           of Buyer. In the event that any Acquired Assets are owned or held
by an           Additional Seller, separate instruments of transfer shall be executed
with such           Additional Seller and each such Additional Seller shall be deemed to
be the           Company under this Agreement to the extent and with respect to the
Acquired           Assets purchased from such Additional Seller. In the event that any of
the           Buyers Affiliates purchases any Acquired Assets, the Buyer shall
cause           each such Buyers Affiliate to sign separate Assignment and
Assumption           Agreements and General Assignments and Bills of Sale, as applicable,
through           which each such Buyers Affiliate agrees to perform the
obligations of the           Buyer in the Agreement with respect to such Acquired Assets.
The Company and the           Buyer shall cause their respective subsidiaries and
Affiliates to execute such           separate instruments. In the event that the
assignment, transfer, conveyance or           delivery of any Acquired Asset to the Buyer
or any Affiliate thereof involves or           gives rise to any Liability, other than
such Liability which is an Assumed           Liability, then such Liability shall be
deemed to be an Excluded Liability as           further described in Section 1.2(b).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)
          Notwithstanding anything herein to the contrary, from and after the Closing
          Date, the Company and the Additional Sellers shall retain all of the right,
          title and interest in and to, and there shall be excluded from the sale,
          conveyance, assignment or transfer to the Buyers hereunder, all assets of the
          Company and the Additional Sellers other than the Acquired Assets (the
          Excluded Assets). Without limiting the generality of the
          foregoing, the Excluded Assets include all right, title and interest of the
          Company and any of the Company Subsidiaries in those assets identified on Schedule 1.1(c)
(the Excluded Subsidiaries).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)
          For the avoidance of doubt, the sale of the Acquired Assets and Assumes
          Liabilities by the Additional Sellers shall be effected by separate General
          Assignments and Bills of Sale and Assignment and Assumption Agreements, to be
          entered into by the Additional Sellers at the Closing, which documents shall
          constitute separate instruments of sale.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

1.2
Purchase and Sale of Assumed Liabilities.

| | (a)        On
the terms and subject to the conditions set forth herein, at the Closing, the
          Company and the Additional Sellers shall sell, convey, assign, transfer and
          deliver to the Buyer or one or more of Buyers Affiliates (as determined
by           the Buyer in its discretion), and in reliance on the accuracy of the
          representations and warranties and the performance of the agreements of the
          Company, the Buyer or one or more of the Buyers Affiliates (as determined
          by the Buyer in its discretion) shall assume, purchase, acquire and accept from
          the Company and the Additional Sellers, all of the Assumed Liabilities,
provided           that the Acquired Assets (other than shares of Company Subsidiaries)
and Assumed           Liabilities of the Company shall be acquired by a single Affiliate
of the Buyer           and the respective Acquired Assets and Assumed Liabilities of each
Additional           Seller shall be acquired by a single respective Affiliate of the
Buyer.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2

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| | (b)        The
Buyers shall not assume any of the Companys (or the Additional           Sellers)
Liabilities that are not included in the Assumed Liabilities.           Notwithstanding
anything in this Section 1.2 to the contrary, the           Assumed Liabilities
shall not include any Liabilities whether arising under any           Contract,
commitment, agreement, tort or otherwise, which were incurred after           the date
hereof unless incurred in accordance with the Budget and Operating           Plan, in the
ordinary course of business consistent with past practice or as           otherwise
permitted pursuant to Article 5. Without limitation of the foregoing,           the
Assumed Liabilities shall also exclude (i) all Liabilities arising out of or           in
connection with any Excluded Asset, (ii) all of the Companys (and the
          Additional Sellers) Liabilities with respect to costs and expenses
          incurred in connection with this Agreement and the transactions contemplated
          hereby, including the Transaction Expenses, as well as any cost or liability
          incurred in order to facilitate the transfer of the Acquired Assets at the
          Closing and which is not specifically listed in the Assumed Liabilities, (iii)
          any Liability arising from the Companys (or an Additional Sellers)
          failure to perform any of its commitments, obligations or agreements contained
          in this Agreement or in any Transaction Document, (iv) any and all Liabilities
          of the Company or any of the Additional Sellers for Taxes (including without
          limitation all Taxes applicable to Company or any of the Additional Sellers
          arising from or in connection with the transactions contemplated hereby or with
          any restructuring of the holdings of any Company Subsidiary), (v) any Action or
          threatened Action by or on behalf of any current or prior shareholder of the
          Company whether or not in connection with this Agreement or the transactions
          contemplated hereby, (vi) any Indebtedness, including, without limitation, any
          Indebtedness to Bank Hapoalim B.M. and Bank Discount, and any Indebtedness to
          Ciba Specialty Chemicals Inc. in connection with the loan granted to the
          Acquired Companies, (vii) any Liability of the Company or any of the Additional
          Sellers arising out of violations of laws, statutes, constitutions, treaties,
          rules, regulations, standards and directives binding as a matter of law,
          ordinances, codes, judgments, rulings, orders, writs, decrees, stipulations,
          injunctions and determinations of all Governmental Authorities (other than
          product liability and the absence of any Licenses, the absence of which,
          individually or in the aggregate, would not have a Material Adverse Effect)
          arising from any event or other non-compliance with any of the above occurring
          or related to the period prior to the Closing; (viii) any Liability arising
from           any act of fraud, (ix) any and all Liabilities of the Company or any of
the           Additional Sellers with respect to any non-compliance with Environmental
Laws           occurring or related to the period prior to the Closing, except as set
forth in Schedule 1.2(b) provided that the assumption by the Buyers of
          such Liabilities shall not limit or derogate from the Buyers rights to
          indemnification in connection with such Liabilities, as more fully set forth in
ARTICLE 8, and (x) any Liability of the Company or any of the           Additional
Sellers relating to or arising from a third-party claim that the           operation of
the Business of the Acquired Companies, including but not limited           to the
design, development, use, import, export, manufacture and sale of the           Products,
Transferred Technology or services (including products, technology or           services
currently under development) of the Acquired Companies infringes or
          misappropriates any Intellectual Property Right of any third party (other than
          of the Buyer or its Affiliates), all the above, occurring or related to the
          period prior to the Closing, except for such Liabilities set forth in Schedule
1.2(b) provided that the assumption by the Buyers of           such Liabilities shall
not limit or derogate from the Buyers rights to           indemnification in
connection with such Liabilities, as more fully set forth in ARTICLE 8. All
liabilities and obligations excluded under this Section 1.2 shall be referred
herein as Excluded           Liabilities.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3

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ARTICLE 2. PURCHASE PRICE AND CLOSING

2.1
Purchase Price. Subject to the terms and conditions set forth herein, in
consideration for the sale, assignment, conveyance, transfer and delivery of the Acquired
Assets and Assumed Liabilities being sold, conveyed, transferred, assigned, delivered and
assumed hereunder, the Buyer will pay, or cause the respective Buyer Affiliate to pay, to
the Company (and/or the Additional Sellers, in accordance with Section 5.15) the Purchase
Price (subject to adjustment in accordance with the provisions of Section 2.2)
plus value added tax against delivery by the Company of a value added tax invoice (to the
extent required by Law) and an exemption from withholding certificate (or, if the Company
fails to so provide Buyer with such exemption, Buyers shall withhold any amounts required
by law, to the extent required). Any payment to be made to the Additional Sellers
hereunder may be made by the Buyers in South African Rand (ZAR) (converted at the rate of
exchange quoted by the Standard Bank of South Africa Limited as the market buying rate of
the United States Dollars against South African Rand at or around 4:00 p.m. on the 5th Business
Day prior to the Closing Date, as quoted on the following website: http://www.standardbank.co.za/).
The payment of the Purchase Price shall be made as follows:

| | (a)        At
the Closing, the Buyer will deliver, or cause the respective Buyer Affiliate           to
deliver, to the Company (and/or the Additional Sellers, in accordance with
          Section 5.15), an aggregate sum of US$206,000,000 out of the Purchase
          Price, subject to adjustment in accordance with the provisions of Section
          2.2 (the Closing Date Purchase Price), by wire
          transfer of immediately available funds to the bank account designated by the
          Company by written notice to Buyer at least four (4) BusinessDays prior
          to the Closing.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        At
the Closing, the Buyer will deliver, or cause the respective Buyer Affiliate           to
deliver, to the Escrow Agent US$24,000,000out of the
          Purchase Price to be held by the Escrow Agent pursuant to the Escrow Agreement
          (the Escrow Amount). Such Escrow Amount shall be
beneficially           owned by the Company on its behalf or on behalf of the Additional
Sellers, as           applicable, and shall be available to compensate Buyers as provided
in ARTICLE 8.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2.2
Adjustment of Purchase Price. The Purchase Price shall be subject to adjustment
in accordance with the provisions of this Section.

| | (a)        At
least seven days prior to the Closing, the Company shall cause to be prepared
          and delivered to Buyer a draft of the consolidated balance sheet of the Company
          and the Company Subsidiaries as of the Closing (the Draft Closing Date
          Statements) and a certificate of an officer of the Company based on
          such Draft Closing Date Statements setting forth the Companys calculation
          of (i) the Draft Closing Net Working Capital, and (ii) the Draft Closing
Capital           Expenditure. The Draft Closing Date Statements shall present the
estimated Net           Working Capital as of the end of business on the Closing Date (Draft
          Closing Net Working Capital) and a projected detail of Capital
          Expenditures by the Company from June 30, 2005 until the end of business on the
          Closing Date (Draft Closing Capital Expenditure).
          Net Working Capital means balance sheet figures reflecting
          the excess of (X) all current assets of the Company and the Company
          Subsidiaries, other than those current assets that are Excluded Assets, over
(Y)           all current liabilities of the Company and the Company Subsidiaries, other
than           those current liabilities that are Excluded Liabilities, all determined on
a           consolidated basis in accordance with GAAP. Capital
          Expenditures means gross additions to fixed assets. For purposes of
          the Net Working Capital calculation only (as defined above), Excluded Assets
          shall consist of cash and Cash Equivalents and Restricted Deposits, determined
          in accordance with GAAP. Similarly, for the purposes of the Net Working Capital
          calculation only, Excluded Liabilities shall consist of short term credit and
          loans, determined in accordance with GAAP. In addition, for purposes of the Net
          Working Capital calculation only, (a) current liabilities shall not include any
          deferred Tax liabilities and (b) current assets shall not include any deferred
          Tax assets. The Company will deliver, together with the Draft Closing Date
          Statements, all the supporting work papers prepared for the calculation of
Draft           Closing Date Statements and such other supporting documentation as Buyer
shall           reasonably request.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4

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| | (b)        In
order to allow for the adjustment of the Purchase Price hereunder, the           Company
hereby agrees and undertakes that until the adjustment of the Purchase           Price
under this Section 2.2 is completed and consummated, it           shall reserve at
all times, a sum of at least US$2,000,000 free and clear of all           Liens for the
sole purpose of meeting its obligations under this Section           2.2 (the
Withheld Amounts).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)        Promptly
following the Closing, but in any event no later than 120 days           thereafter,
Buyers shall cause to be prepared and delivered to the Company an           unaudited
statement of the Net Working Capital of the Company and the Company
          Subsidiaries as of the end of business on the Closing Date (the Closing
          Net Working Capital), as well as a consolidated statement of Capital
          Expenditures from June 30, 2005 through the Closing Date (the Closing
          Capital Expenditure), prepared in accordance with GAAP (the
          Closing Date Statements).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)        Within
30 days after the earlier of (i) the receipt of the Closing Date           Statements by
the Company, and (ii) the expiration of such 120 day period if the           Buyers fail
to deliver Closing Date Statements within the 120-day period           prescribed in Section
2.2(c), the Company or its representatives shall           deliver in writing to the
Buyer any good faith objections that the Company may           have with respect to any
balances included on the Closing Date Statements (the           Notice of Dispute),
together with any supporting           documentation, in reasonable detail of any such
objections or calculations or,           if no Closing Date Statements were delivered by
the Buyers, the Company shall           deliver to the Buyer Closing Date Statements and
the Buyer shall have the right           to deliver to the Company a Notice of Dispute,
and the provisions of this Section 2.2(d) shall apply, mutatis mutandis.
Buyers will           deliver, together with the Closing Date Statements, all the
supporting work           papers prepared for the calculation of Closing Date Statements
and such other           supporting documentation as Company shall reasonably request. If
no Notice of           Dispute is received by the Buyer, or the Company, as applicable,
within 30 days           after (A) the Companys (or the Buyers, as
applicable) receipt of the           Closing Date Statements, or (B) the expiration of
the 120-day period, the           Closing Date Statements shall be determined final.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5

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| | (e)        Within
fourteen (14) days after delivery of the Notice of Dispute, Buyers and           the
Company shall attempt to resolve the underlying dispute in good faith, and           if
such parties cannot agree within such fourteen (14)-day period, such dispute
          shall be resolved by a nationally known independent firm of certified public
          accountants jointly chosen by the Buyers and the Company, which in the absence
          of an agreement shall be Deloitte Touche. The written decision of such
          accounting firm shall be rendered within no more than 60 days from the date
that           the matter is referred to such firm and shall be final and binding on the
          parties hereto and shall not be subject to dispute or review. Following any
such           dispute resolution (whether by mutual agreement of the parties or by
written           decision of the accounting firm), the Closing Date Statements and the
Closing           Net Working Capital and Closing Capital Expenditure (as determined in
such           dispute resolution) shall be determined final. Any fees or expenses
payable to           such accounting firm shall be shared equally between the Company and
the Buyers.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)        In
the event that, based on the Closing Date Statements, it transpires that as           of
the Closing Date, either (i) the Closing Net Working Capital is less than 99%
          of the Net Working Capital Target, or (ii) the Closing Capital Expenditure is
          less than 90% of the Net Capital Expenditure Target, then the Purchase Price
          shall be reduced on a dollar for dollar basis by the entire aggregate amount of
          such difference (of both (i) and (ii) above). In such event, the reduction in
          the Purchase Price shall be paid first by way of payment out of the Withheld
          Amounts from the Company to the Buyer (or a Buyer Affiliate designated by the
          Buyer) by wire transfer of immediately available funds to an account designated
          by the Buyer within three Business Days after the final determination of the
          amount of such reduction in the Purchase Price. In the event that the reduction
          in the Purchase Price is greater than the Withheld Amounts, then all the
          Withheld Amounts shall be deducted from the Purchase Price, and any reduction
in           excess of the Withheld Amounts (the Excess Reduction)
shall           be paid to the Buyers out of the Escrow Amount by way of transfer from
the           Escrow Fund to the Buyers of such Excess Reduction.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)        In
the event that, based on the Closing Date Statements, it transpires that as           of
the Closing Date, either (i) the Closing Net Working Capital is more than           101%
of the Net Working Capital Target, or (ii) the Closing Capital Expenditure           is
more than 110% of the Net Capital Expenditure Target, then the Purchase Price
          shall be increased on a dollar for dollar basis by the entire aggregate amount
          of such difference (of both (i) and (ii) above). In such event, the Buyer will
          pay to the Company (and/or the Additional Sellers, in accordance with Section
          5.15) any such increase in the Purchase Price by wire transfer of
          immediately available funds to an account designated by the Company within
three           Business Days after the final determination of the amount of such
increase in           the Purchase Price.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2.3
Closing. The closing of the transactions contemplated by this Agreement (the Closing)
will take place (i) at the offices of Meitar Liquornik Geva & Leshem Brandwein, 16
Abba Hillel Silver Road, Ramat-Gan 52506, Israel, at 10:00 a.m. Tel Aviv time on the
fifth Business Day following the satisfaction or waiver of all conditions set forth in ARTICLE
6, or (ii) at such other place, date and time as the Company and the Buyer may agree.
The date and time at which the Closing actually occurs is referred to herein as the Closing
Date.

2.4
Closing Deliveries of the Company. At the Closing, the Company and the Additional
Sellers will deliver to the Buyers the following:

| | (a)        The
Acquired Assets, including (i) with respect to the Acquired Contracts,           a
complete, accurate and legible copy of each such Contract (including all
          amendments and supplements thereto); and (ii) with respect to all Software
          included in the Acquired Assets, a copy of all such Software (such delivery to
          be made by electronic means);
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6

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| | (b)        duly
executed General Assignments and Bills of Sale, and accompanying powers of
          attorney, which shall be in full force and effect;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)        the
specific assignments, bills of sale, endorsements, deeds and other good and
          sufficient instruments of conveyance and transfer reasonably requested by the
          Buyers, in form and substance reasonably satisfactory to the Buyer and its
          counsel, including, without limitation, the Assignment and Assumption
          Agreements, as shall be effective to vest in the Buyer or applicable Buyer
          Affiliate title to all the Acquired Assets, including, without limitation,
          assignment deeds and powers of attorney with respect to any and all Company
          Registrable Intellectual Property Rights, and all the applications to register
          any of the foregoing as well as physical possession (whether by way of actual
          delivery or, if more appropriate, by confirmation of handing over of possession
          to the control of a Buyers representative) of certain Acquired Assets
          acquired hereunder, whose physical delivery is reasonably required, including,
          without limitation, all source code of all Products and Software;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)        a
certificate executed by the president and chief executive officer of the
          Company (as authorized officer of the Company) in a form mutually agreed upon
by           the parties certifying that: (i) the representations and warranties of the
          Company set forth in Sections 3.8, 3.9, 3.10, and           3.12 are true and
correct in all material respects on and as of the           Closing, unless such
representation is not true on and as of the Closing due to           an inaccuracy as to
which the Company has notified the Buyer in writing that           such matter will be
treated as an Excluded Liability, (ii) all other           representations and warranties
of the Company hereunder are true and correct on           and as of the Closing, except
where the failure to be so true and correct would           not, individually or in the
aggregate, have a Material Adverse Effect (all of           the above, other than those
representations and warranties which were qualified           by terms such as material,
materially or Material           Adverse Effect which
representations and warranties as so qualified shall           be true and correct in all
respects on and as of the Closing and except that           each representation and
warrantee given as of a specific date need be true only           as of such date); (iii)
all covenants required by the terms hereof to be           performed and complied with by
the Company or the Additional Sellers on or           before the Closing Date have been
so performed and complied with in all material           respects, and (iv) all documents
to be executed and delivered by the Company or           the Additional Sellers at the
Closing have been executed by a duly authorized           officer of the Company or the
Additional Seller, as applicable;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)        fully
executed resolutions of the Board of Directors of the Company adopted by
          unanimous written consent in the form attached hereto as Schedule
          2.4(e).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)        an
opinion of Herzog, Fox, Neeman, counsel to the Company, dated as of the
          Closing, in the form attached hereto as Schedule 2.4(f);
| | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)        an
executed signature page of the Company to the Escrow Agreement;
| | -----------------------------------------------------------------------------

7

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| | (h)        a
written resignation from each of the officers and directors of each of the
          Company Subsidiaries (other than the Additional Sellers) effective as of the
          Closing Date.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)        duly
executed share transfer deeds or similar documents required under           applicable
Laws for the transfer of the shares of each of the Company           Subsidiaries (other
than the Additional Sellers), including duly executed share           certificates in the
name of the Buyer or an Affiliate thereof, as applicable.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (j)        all
other instruments, agreements, certificates, opinions and documents           reasonably
required to be delivered by the Company at or prior to the Closing           Date
pursuant to this Agreement.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2.5
Closing Deliveries of the Buyers.

| | (a)        At
the Closing, the Buyers will deliver the following:
| | -----------------------------------------------------------------

| | (1)        the
wired funds required to be delivered pursuant to Section 2.1(a) and the
Escrow Amount required to be           delivered to the Escrow Agent pursuant to Section
2.1(b);
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2)        a
certificate executed by an authorized officer of the Buyer in a form mutually
          agreed upon by the parties certifying that: (i) the representations and
          warranties of the Buyer hereunder are true and correct in all material respects
          on and as of the Closing (other than those representations and warranties which
          were qualified by terms such as material, or materially          which
representations and warranties as so qualified shall be true and correct           in all
respects on and as of the Closing and except that each representation and
          warrantee given as of a specific date need be true only as of such date); (ii)
          all covenants required by the terms hereof to be performed and complied with by
          each of the Buyers on or before the Closing Date have been so performed and
          complied with in all material respects, and (iii) all documents to be executed
          and delivered by each of the Buyers at the Closing have been executed by a duly
          authorized officer of the respective Buyer;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3)        duly
executed General Assignments and Bills of Sale as well as Assignment and
          Assumption Agreements, which shall be in full force and effect, and as shall be
          effective to vest in the Buyer or the applicable Buyer Affiliate title to all
          the Acquired Assets and Assumed Liabilities to be purchased and assumed by the
          Buyer or such Buyer Affiliate hereunder;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4)        an
executed signature page of the Buyers to the Escrow Agreement; and
| | --------------------------------------------------------------------------------

| | (5)        all
other instruments, agreements, certificates, opinions and documents           reasonably
required to be delivered by the Buyers at or prior to the Closing           Date pursuant
to this Agreement.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        To
consummate the Closing, Buyer will, or will cause the Buyers Affiliates
          to, wire the funds required to be delivered pursuant to Section           2.1 after
all the conditions to Closing specified in ARTICLE 6 have been satisfied.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8

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2.6
Simultaneous Closing. All transactions occurring at the Closing as specified in Sections
2.4 and 2.5 shall be deemed to take place simultaneously and no transaction shall be
deemed to have been completed and no document or certificate shall be deemed to have been
delivered until all transactions are completed and all documents delivered.

# ARTICLE 3.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The
Company (including for the purpose of this Article 3, the Additional Sellers) represents
and warrants to the Buyers that, except as expressly set forth and referred to with
respect to a particular representation in the disclosure schedule delivered to the Buyers
by the Company on the date of this Agreement as an inducement to the Buyers to enter into
this Agreement (the Company Disclosure Schedule), each of the
statements contained in this ARTICLE 3 is true and correct as of the date hereof
and will be true and correct at and as of the Closing Date, as follows:

3.1
Organization and Qualification; Subsidiaries

| | (a)        Each
of the Company and the Company Subsidiaries is a corporation duly organized           and
validly existing under the Laws of its jurisdiction of incorporation and has
          the requisite corporate power and authority to own, lease and operate its
assets           and properties, including the Acquired Assets, and to carry on the
Business as           it is now being conducted, and is duly qualified or licensed as a
foreign           corporation to do business, and, where such concept is applicable, is
in good           standing, in each jurisdiction where the character of the properties
owned,           leased or operated by it or the nature of its activities makes such
          qualification or licensing necessary.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        Section
3.1(b) of the Company Disclosure Schedule lists each of           the Companys
subsidiaries (other than the Excluded Subsidiaries) (each, a           Company
Subsidiary and, collectively, the Company           Subsidiaries),
the jurisdiction of incorporation of each Company           Subsidiary and the Companys
equity interest therein, and, if not directly           or indirectly wholly owned by the
Company, the identity and ownership interest           of each of the other owners of
such Company Subsidiary. Other than as set forth           on Section 3.1(b) of the
Company Disclosure Schedule, the           Company, directly or indirectly, owns 100%
of the outstanding equity interests           of each of the Company Subsidiaries. As of
the date hereof neither the Company           nor any Company Subsidiary has agreed, is
obligated to make or is bound (or has           bound its property) by any written
agreement or contract under which it is           legally obligated to make any future
investment (in the form of a loan, capital           contribution or otherwise) in any
other entity (other than the Company or a           wholly owned Company Subsidiary).
Other than the Companys interests in the           Company Subsidiaries and the
Excluded Subsidiaries or as set forth in Section           3.1(b) of the Company
Disclosure Schedule, neither the Company nor any Company           Subsidiary directly or
indirectly owns any equity, partnership or similar           interest in any Person. All
of the issued and outstanding shares of capital           stock of or other equity
interests in each Company Subsidiary (other than the           Additional Sellers) have
been duly authorized and validly issued and are fully           paid and nonassessable
and, except as set forth in Section 3.1(b) of the Company           Disclosure Schedule,
all such shares or interests owned by the Company or any           Company Subsidiary are
owned free and clear of all Liens.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9

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| | (c)        The
Company has delivered to Buyer a complete and correct copy of the Memorandum           of
Association and Articles of Association and all other organization documents           of
the Company as of the date of this Agreement, as well as a complete and           correct
copy of all similar organizational documents of each of the Company
          Subsidiaries (collectively, the Formation Documents). Such
          Formation Documents are in full force and effect and no other organizational
          documents are applicable to or binding upon the Company or any Company
          Subsidiary. The Company and each Company Subsidiary is not in violation in any
          respect of any of the provisions of the applicable Formation Documents.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)        All
statutory books and registers of the Acquired Companies have been properly           kept
in accordance with applicable Laws and regulations. All information,
          resolutions and other documents with respect to each Acquired Company have been
          duly filed or published in accordance with applicable Laws and regulations.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.2
Agreement Authorized and its Effect on Other Obligations.

| | (a)        Authorization
and Enforceability. The Company has all requisite power and           authority to
execute and deliver this Agreement, to perform its obligations           hereunder and,
to consummate the transactions contemplated hereby. The execution           and delivery
by the Company of this Agreement and the performance by the Company           of its
obligations hereunder have been duly and validly authorized by all           necessary
corporate action on the part of the Company. This Agreement has been           duly
executed and delivered by the Company and, assuming the due authorization,
          execution and delivery by the Buyers, constitutes a legal, valid and binding
          obligation of the Company, enforceable against it in accordance with its terms,
          except as such enforceability may be limited by bankruptcy, insolvency,
          reorganization, debtor relief or similar laws affecting the rights of creditors
          generally and by general principles of equity.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        Approvals. Except
as set forth in Section 3.2(b)           of the Company Disclosure Schedule, no
consent, approval, order or           authorization of, or registration, declaration or
filing with, any Governmental           Authority, is required by or with respect to the
Company or a Company Subsidiary           in connection with the execution and delivery
of this Agreement or the           consummation of the transactions contemplated hereby,
except for (A) the           requirements of any Governmental Authority under applicable
competition,           antitrust or foreign investment or trade regulatory Laws,
including the           applicable requirements of the HSR Act, (B) the approval of the
Israeli           Investment Center of the Israeli Ministry of Trade, Industry and Labor
(the           Investment Center), (C) the approval of the Office of
the           Chief Scientist of the Israeli Ministry of Trade, Industry and Labor
          (OCS), and (D) the approval, if applicable, of the Israeli
          Commissioner of Restrictive Trade Practices to the extent required pursuant to
          the Restrictive Trade Practices Act, 1988 (the Trade Practices
          Act).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (c)        No
Conflict. Except as set forth in Section           3.2(c) of the
Company Disclosure Schedule, assuming the receipt by           Closing of the all
required Consents, neither the execution and delivery of this           Agreement nor the
consummation of the transactions contemplated hereby will           (i) conflict
with or result in a violation or breach of any term or           provision of, nor
constitute a default under, the Formation Documents of any of           the Acquired
Companies; (ii) contravene, conflict with or result in a           violation or
breach of, or result in a default under, or result in the           acceleration or
cancellation of any obligation under, or give rise to a right by           any person to
terminate, cancel, modify or amend in any respect its obligations           under any
Contract to which any of the Acquired Companies is a party or by which           any of
them or their properties or assets are bound, (iii) contravene,           conflict
with or result in a violation of, or give any Governmental Authority or           other
Person the right to challenge the Transaction or to exercise any remedy or
          obtain any relief under, any legal requirement or any order, writ, injunction,
          judgment or decree to which the Acquired Companies, or any of the assets owned
          or used by the Acquired Companies, is subject, (iv) contravene, conflict
          with or result in a violation of any of the terms or requirements of, or give
          any Governmental Authority the right to revoke, withdraw, suspend, cancel,
          terminate, modify or exercise any right or remedy or require any refund or
          recapture with respect to, any Grant or benefit given by any Governmental
          Authority or under applicable Law (or any benefit provided or available
          thereunder) or other permit, license, consent, authorization, Grant, benefit,
or           right that is held by the Company or a Company Subsidiary or that otherwise
          relates to the business or assets of the Acquired Companies, (v) result in
          the imposition, creation or crystallization of any Lien upon or with respect to
          any asset or property owned, leased or used by the Acquired Companies, or
          (vi) with the passage of time, the giving of notice, or the taking of any
          action by a third person, or any combination thereof, have any of the effects
          set forth in clauses (i) through (v) of this Section. Section 3.2(c)
          of the Company Disclosure Schedule sets forth a complete and accurate list
          of (A) all holders of any outstanding Indebtedness of the Acquired
          Companies, the lessors of any property leased by the Acquired Companies, in
each           case whose consent is required in connection with the Transaction and
          (B) all other parties to any Contract to which any of the Acquired
          Companies is a party or bound whose consent is required in connection with the
          Transaction.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.3
Financial Statements.

| | (a)        The
Company has delivered to Buyer true and correct copies of (i) the audited
          consolidated financial statements (including any related notes thereto) of the
          Acquired Companies as of, and for the periods ended, December 31, 2004 and
2003,           including audited consolidated balance sheets of the Acquired Companies
as of           December 31, 2004 and 2003 and audited consolidated statements of
operations and           cash flows for the years ended December 31, 2004 and 2003,
together with a           signed report of the Companys independent auditors
attached thereto, (ii)           the unaudited financial statements (including any
related notes thereto) of each           of the Acquired Companies as of, and for the
periods ended, December 31, 2004           and 2003, including unaudited balance sheets
of each the Acquired Companies as           of December 31, 2004 and 2003 and unaudited
statements of operations and cash           flows of each the Acquired Companies for the
years ended December 31, 2004 and           2003, and (iii) the unaudited consolidated
financial statements of the Acquired           Companies as well unaudited financial
statements of each of the Acquired           Companies, as of, and for the period ended
June 30, 2005, including an unaudited           consolidated balance sheet of the
Acquired Companies as of June 30, 2005 and an           unaudited consolidated statement
of operations (but not cash flows) for the           period ended June 30, 2005
(collectively, the Financial           Statements). Except as set
forth in the notes thereto or in Section           3.3(a) of the Company Disclosure
Schedule, the Financial Statements           were prepared in accordance with United
States generally accepted accounting           principles (GAAP)
applied on a consistent basis during the           periods involved and fairly present,
in all material respects, the consolidated           financial position for the Acquired
Companies as of the date thereof and the           consolidated results of their
operations, cash flows and changes in financial           position for the periods then
ended, except that the unaudited Financial           Statements for the period ended June
30, 2005 are subject to normal year end           adjustments and lack footnotes and
other presentation materials.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11

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| | (b)        Except
as set forth in Section 3.3(b) of the Company Disclosure           Schedule, the
Company has established and maintains, adheres to and enforces           a system of
internal accounting controls which are effective in providing           assurance
regarding the reliability of financial reporting and the preparation           of
financial statements in accordance with GAAP (including the Financial
          Statements), including policies and procedures that (i) require the maintenance
          of records that in reasonable detail accurately and fairly reflect the
          transactions and dispositions of the assets of each of the Acquired Companies,
          (ii) provide assurance that transactions are recorded as necessary to permit
          preparation of financial statements in accordance with GAAP, and that receipts
          and expenditures of each of the Acquired Companies are being made only in
          accordance with appropriate authorizations of management of the Acquired
          Companies, and (iii) provide assurance regarding prevention or timely detection
          of unauthorized acquisition, use or disposition of the assets of each of the
          Acquired Companies. The Company is not aware of (i) any significant
          deficiencies, including material weaknesses, in the design or operation of
          internal control over financial reporting that are reasonably likely to
          adversely affect the Companys ability to record, process, summarize and
          report financial data, (ii) any fraud, whether or not material, that involves
          any of the Acquired Companies management or other employees who have a
          role in the preparation of financial statements or the internal accounting
          controls utilized by the Acquired Companies or (iii) any claim or allegation
          regarding any of the foregoing. Notwithstanding anything to the contrary in
this           Section 3.3(c) above, none of the above shall be construed as a
representation           with respect to the Companys compliance with Section 404
of the           Sarbanes-Oxley Act.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)        The
Company has made and kept (and given the Buyer access to) (i) all           records
and lists of the Company pertaining to the assets of each of the           Acquired
Companies, (ii) all records and lists of the Acquired Companies           pertaining
to the personnel of each of the Acquired Companies and (iii) all           financial
books, ledgers, files and reports of every kind maintained by the           Acquired
Companies, which, in each case, accurately and fairly reflect the           activities of
and information regarding each of the Acquired Companies that           should be
recorded therein.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.4
No Undisclosed Liabilities. Except as set forth in Section 3.4 of
the Company Disclosure Schedule, neither the Company nor any Company Subsidiary has
any obligation, expense, claim, deficiency, guaranty or endorsement of any type, whether
accrued, absolute, contingent, matured, unmatured or other (whether or not required to be
reflected in financial statements in accordance with GAAP), except liabilities which
individually or in the aggregate (i) have been reflected in the Financial Statements
or disclosed in the notes thereto (to the extent of such reflection or disclosure), (ii) have
arisen since the Financial Statements in the ordinary course of business consistent with
past practices and are not, in the aggregate, material, (iii) have been provided for in
the Budget and Operating Plan, or (iv) are executory obligations arising in the
ordinary course of business consistent with past practices which are not in the aggregate
material.

12

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3.5
Absence of Certain Changes. Since December 31, 2004, each of the Acquired
Companies has conducted the Business only in the ordinary course consistent with past
practice, and there has not been any Material Adverse Effect. Without limiting the
generality of the foregoing, except as set forth on the Financial Statements, or on Section
3.5 of the Company Disclosure Schedule, or as set forth in the Budget and Operating
Plan or incurred in the ordinary course of business consistent with past practice, from
and after December 31, 2004, neither the Company nor any Company Subsidiary has:

| | (a)        suffered
any loss to its property (whether through destruction, accident,           casualty,
expropriation, condemnation or otherwise) or its business, or incurred           any
liability, damage, award or judgment for injury to the property or business           of
others or for injury to any person (in each case, whether or not covered by
          insurance) in excess of $20,000 in any one case or $50,000 in the aggregate;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        made
any capital expenditure in excess of $20,000 or series of capital           expenditures
in excess of $50,000 in the aggregate;
| | -----------------------------------------------------------------------------------------------------------------------------------------------

| | (c)        made
any change in the rate of compensation, commission, bonus or other direct           or
indirect remuneration payable or to become payable to any of their respective
          directors, officers, employees or agents, or agreed or promised (orally or
          otherwise) to pay, conditionally or otherwise, any bonus or extra compensation
          or other employee benefit including any additional pension, profit sharing,
          bonus, incentive, deferred compensation, stock purchase, share option, share
          appreciation, group insurance, vacation pay, severance pay, retirement or other
          employee benefit plan, agreement or arrangement, or changed the terms of any
          existing Company Benefit Plan, for or to any of such directors, officers,
          employees or agents; except for any changes with respect to employees who are
          not senior employees provided such changes do not have a Material Adverse
Effect           in the aggregate, and provided however that notwithstanding the above,
the           Company may grant employees, a special bonus in connection with the
Transaction           contemplated hereunder;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)        sold,
assigned, leased or transferred any assets or properties, other than sales           of
inventory in the ordinary course of business;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)        amended,
renegotiated or terminated (other than by completion thereof) any           Contract;
| | ---------------------------------------------------------------------------------------------------------

| | (f)        made
any change in its accounting methods, policies, practices or principles;
| | ----------------------------------------------------------------------------------------

| | (g)        amended
its Formation Documents;
| | -------------------------------------------

| | (h)        made
any Tax election, changed any annual Tax accounting period, amended any Tax
          Return, settled or compromised any income Tax Liability, entered into any
          closing agreement, settled any Tax claim or assessment, surrendered any right
to           claim a Tax refund or failed to make the payments or consent to any
extension or           waiver of the limitations period applicable to any Tax claim or
assessment           unless such action was taken solely with respect to the Company or
the           Additional Sellers;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

13

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| | (i)        issued,
delivered, pledged or otherwise encumbered, sold or disposed of any           shares of
any Company Subsidiarys (other than the Additional Sellers)           capital stock
or other securities, or created, issued, delivered, pledged or           otherwise
encumbered, sold or disposed of any securities convertible into, or           rights with
respect to, or options or warrants to purchase or rights to           subscribe to, any
shares of any Company Subsidiarys (other than the           Additional Sellers)
capital stock or other securities, whether as a result of           any exercise thereof
or otherwise, other than such actions as are required in           order to consummate
the Transaction and give effect to the provisions of Schedule 1.1(a) and Schedule
1.1(c);
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (j)        split,
combined or reclassified any of any Company Subsidiarys (other than           the
Additional Sellers) shares of capital stock or issued or authorized the
          issuance of any other securities with respect to, in lieu of or in substitution
          for any of any Company Subsidiarys (other than the Additional Sellers)
          shares of capital stock;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (k)        incurred,
assumed or created any Indebtedness for borrowed money or guaranteed           any
Indebtedness for borrowed money of any other Person in excess of $20,000 in           any
one case;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (l)        made,
incurred, assumed, created or guaranteed any loan or made any advance or
          capital contribution to or investment in any Person;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | (m)        subjected
any of its assets or properties to any Lien or permitted any of its           assets or
properties to be subjected to any Lien;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | (n)        acquired
or agreed to acquire by merging or consolidating with, or by purchasing           a
substantial portion of the capital stock or assets of, or by any other manner,
          any business or any corporation, partnership, limited liability entity, joint
          venture, association or other business organization or Person, or division,
          operating unit or product line thereof;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (o)        (A)
entered into any transaction with any Affiliate, director, officer or
          shareholder of any Acquired Company or any Affiliate of any of the foregoing or
          (B) made, directly or indirectly, any payments or transferred, directly or
          indirectly, any funds or other property to or on behalf of any Affiliate,
          director, officer or shareholder of any Acquired Company or any Affiliate of
any           of the foregoing (other than reimbursements of ordinary and necessary
business           expenses of employees or directors of the Acquired Companies incurred
in           connection with their employment or service consistent with written policies
of           the Company);
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (p)        purchased
any real property or entered into any Lease (including any capitalized           lease
obligations);
| | -------------------------------------------------------------------------------------------------------------------------

| | (q)        settled
or compromised any Action; or
| | ------------------------------------------------

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| | (r)        entered
into any agreement or Contract (other than the Transaction Documents) to           take
any of the types of action described in this Section 3.5.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.6
Contracts

| | (a)        Section
3.6 of the Company Disclosure Schedule sets forth, under           the corresponding
subsection, all of the Contracts of each of the Acquired           Companies, or to which
each of the Acquired Companies are bound, described           below:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (1)        all
Contracts under which any of the Acquired Companies licenses or purchases           any
Transferred Intellectual Property from any third party (other than license
          agreements relating to third party off-the-shelf software that are available to
          Buyers with no additional cost or liability) whether or not such agreement
          involves any remaining obligations or liabilities of either party;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2)        all
Contracts under the terms of which the Acquired Companies: (A) are           likely
to pay or otherwise give monetary consideration of more than US$100,000           in the
aggregate during any calendar year or (B) are likely to pay or           otherwise
give consideration of more than US$200,000 in the aggregate over the           remaining
term of such Contract;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3)        all
research and development, broker, distributor, dealer, manufacturers
          representative, franchise, agency, sales promotion, market research, marketing,
          consulting and advertising Contracts;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4)        all
management Contracts and Consulting Agreements (or similar Contracts) which           are
not cancelable by the Acquired Companies on notice of 30 days or less           without
penalty or further payment;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (5)        all
Employment Agreements and Consulting Agreements between any of the Acquired
          Companies, on the one hand, and any officer, director or employee of the
          Acquired Companies, on the other hand, or any service, operating or management
          Contract with respect to any of property of the Acquired Companies (whether
          leased, owned or operated);
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (6)        (i) all
third party Indebtedness, Liabilities and commitments of others as           to which any
of the Acquired Companies is a guarantor, endorser, co-maker,           surety, or
accommodation maker, or is contingently liable therefor,           (ii) all letters
of credit, whether stand-by or documentary, issued by any           third party and (iii) all
other Contracts relating to Indebtedness of the           Acquired Companies;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (7)        all
Contracts, including, without limitation, any Company Benefit Plan, any of           the
benefits of which will be increased or otherwise modified, or the vesting,
          funding or delivery of benefits of which will be accelerated, by the occurrence
          of any of the transactions contemplated by this Agreement (either alone or in
          conjunction with any other event) or the value of any of the benefits of which
          will be calculated on the basis of any of the transactions contemplated by this
          Agreement;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (8)        all
Contracts of indemnification and all guaranties other than any Contract of
          indemnification entered into in connection with the sale or license of products
          or services in or the licensing of real property in the ordinary course of
          business;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

15

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| | (9)        all
Contracts with any Governmental Authority;
| | ---------------------------------------------------------

| | (10)        all
Contracts containing any provision or covenant prohibiting, impairing,           limiting
or restricting, or purporting to prohibit, impair, limit or restrict,           the
ability of any of the Acquired Companies to (i) sell or license any
          products or services of or to any other person, (ii) engage in any line of
          business, (iii) compete with or to obtain products or services from any
          person or limiting the ability of any person to provide products or services to
          any of the Acquired Companies in each case in any geographic area or during any
          period of time, (iv) grant any distribution or licensing rights or
          (v) acquire any property, assets or business;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (11)        all
Contracts currently in force relating to (i) the disposition or
          acquisition by any of the Acquired Companies of any material assets (other than
          sale of Inventory in the ordinary course of business) or pursuant to which any
          of the Acquired Companies has any ownership interest in any corporation,
          partnership, joint venture or other business enterprise other than a Company
          Subsidiary or (ii) capital expenditure or expenditures in excess of
$50,000           in any one case;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (12)        all
Contracts relating to the ownership or lease of real property (whether as
          lessor or lessee), used or operated by any of the Acquired Companies;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (13)        all
Contracts currently in force to license any third party to manufacture or
          reproduce any of the Acquired Companies products, services or technology
          and all Contracts currently in force to sell or distribute any of the Acquired
          Companies products, services or technology;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (14)        all
Contracts currently in force to provide source code to any third party for           any
product or technology;
| | -------------------------------------------------------------------------------------------------------------------------------

| | (15)        all
Licenses other than the sale of Products in the ordinary course of business;
| | --------------------------------------------------------------------------------------------

| | (16)        all
settlement agreements and similar Contracts under which any of the Acquired
          Companies have ongoing obligations under which they (A) are likely to pay or
          otherwise give consideration of more than US$100,000 in the aggregate during
any           calendar year or (B) are likely to pay or otherwise give consideration
of           more than US$200,000 in the aggregate over the remaining term of such
Contract;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (17)        all
shareholder agreements, voting agreements, buy-sell agreements, and other
          Contracts granting any party any rights to exercise control over any of the
          Company Subsidiaries, (other than the Additional Sellers) or any Company
          Subsidiarys (other than the Additional Sellers) capital stock; and
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

16

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| | (18)        all
other Contracts, whether or not made in the ordinary course of business,           which
are material to the Acquired Companies, taken as a whole, or the conduct           of the
Business, taken as a whole, or the absence of which could reasonably be
          expected to have, individually or in the aggregate, a Material Adverse Effect.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        Each
Contract: (i) is legal, valid and binding on each of the Acquired
          Companies which is a party thereto and, to the Knowledge of the Company, the
          other parties thereto, and is in full force and effect, except as such
          enforcement may be limited by applicable bankruptcy, insolvency,
reorganization,           moratorium, or other laws of general application affecting
enforcement of           creditors rights or by general principles of equity, and
(ii) upon           consummation of the Transaction, subject to obtaining the
consent of the           counterparty thereto, if required as set forth in Schedule
          5.3(c), shall continue in full force and effect to the same extent
          without penalty or other adverse consequence to Buyers or the Acquired
          Companies. Neither the Company nor any Company Subsidiary is in breach of, or
          default under, any Contract, nor is there any default or event of default or
          event which with notice or lapse of time, action by any third party, or
          combination thereof, would constitute a default by any of the Acquired
Companies           under any Contract. As of the date hereof, neither the Company nor
any Company           Subsidiary has received any written or oral notice, and otherwise
has no           Knowledge, of a default (which has not been cured), offset or
counterclaim under           any Contract, or any other written or oral communication
calling upon it to           comply with any provision of any Contract or asserting
noncompliance therewith           or asserting that the Acquired Companies have waived or
altered its rights           thereunder, nor have any of the Acquired Companies received
any written or oral           notice, and otherwise has no Knowledge, that any party to
any Contract intends           or is threatening to terminate or fail to exercise any
renewal or extension of           any Contract or is otherwise in breach or default
thereunder.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.7
Suppliers and Customers. (a) Section 3.7(a) of the Company Disclosure
Schedule contains a true and complete list of the Acquired Companies ten
largest customers in each of the regions which the Acquired Companies operate and the
sales to such customers with respect to the business of the Company during the
twelve-month period ended December 31, 2004.

| | (b)        Section
3.7(b) of the Company Disclosure Schedule contains a true           and complete list
of the Acquired Companies suppliers for components of           the Products and
the purchases by the Acquired Companies from such suppliers           during the
twelve-month period ended December 31, 2004.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)        Except
as set forth in Section 3.7(c) of the Company Disclosure           Schedule, since
December 31, 2004, none of the suppliers or customers set           forth in this Section
3.7 above has cancelled or otherwise           modified its relationship with the
Acquired Companies in a manner adverse to the           Companys Business, and (i) to
the Knowledge of the Company, no such           Person has communicated (orally or in
writing) to the officers, directors or           other managers of the Acquired Companies
any intention to do so, (ii) to the           Knowledge of the Company, no such Person
has any intention to do so, and           (iii) no officer of the Company has been
informed that the consummation of           the transactions contemplated hereby will
adversely affect any of such           relationships.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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3.8
Title to Property; Leased Property.

| | (a)        Each
of the Acquired Companies has good title to, or in the case of leased
          properties and assets, valid leasehold interests in, all of their properties
and           assets, including the Acquired Assets, free and clear of all Liens, except
for:           (i) Liens reflected in the balance sheet of the Company, included in the
          Financial Statements, (ii) Liens imposed by Law, such as carriers,
          warehousemans, mechanics, materialmens, landlords,
          laborers, suppliers, construction and vendors liens, incurred
          in good faith in the ordinary course of business and securing obligations which
          are not yet due or which are being contested in good faith by appropriate
          proceedings as to which the Company has, to the extent required by GAAP, set
          aside on its books adequate reserves; (iii) Liens for Taxes either not yet due
          and payable or which are being contested in good faith by appropriate legal or
          administrative proceedings; (iv) with respect to leasehold interests, liens
          incurred, created, assumed or permitted to exist and arising by, through or
          under a landlord or owner of the leased property, with or without consent of
the           lessee, none of which impairs the use of any parcel of property material to
the           operation of the business of the Company; (v) as set forth in Section
          3.8(a) of the Companys Disclosure Schedule, and (vi) any Liens
          arising in the ordinary course of business which do not interfere with the
          present use of the property affected thereby (collectively, Permitted
Liens).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        All
leases pursuant to which any of the Acquired Companies leases from others           real
or personal property (collectively, the Company Leases)           are
valid, binding and enforceable in accordance with their respective terms and           in
full force and effect, except as such enforcement may be limited by           applicable
bankruptcy, insolvency, reorganization, moratorium, or other laws of           general
application affecting enforcement of creditors rights or by           general
principles of equity, no amounts (other than immaterial amounts the           failure of
which to pay would not be material) payable under any Company Lease           are past
due, and there is not, under any of such leases, any existing default           or event
of default of any of the Acquired Companies or, to the Knowledge of the
          Company, any other party.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)        Section
3.8(c) of the Company Disclosure Schedule sets forth each           of the Company
Leases, as well as each real property owned by each of the           Acquired Companies
(the Owned Property), in each case setting           forth the
location of such property, the Acquired Company using, operating or           owning such
property, the monthly payment due in connection therewith, and the           term of the
lease thereunder. Each of the properties specified in Section           3.8(c) of the
Company Disclosure Schedule (including any easements,           rights of access,
rights of way or similar rights benefiting the properties)           (i) is in good
repair, free of defects and is otherwise adequate and           sufficient to permit the
continued use of such facility in the manner and for           the purpose to which it is
presently devoted, and (ii) has adequate and           sufficient access to and from
public areas. The Company Leases and the Owned           Property (taking into account
all liens and third party rights related thereto,           all zoning and other
restrictions applicable thereto, the condition, size and           all other aspects
thereof) are in all respects suitable and adequate to support           the operations of
the Acquired Companies and for the purposes to which they are           presently used.
The Acquired Companies are the sole tenants and occupants of the           Company Leases
and the Owned Property.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

18

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| | (d)        All
major items of equipment of the Acquired Companies are in good and           sufficient
operating condition and in a state of reasonable maintenance and           repair for the
continued conduct of the Acquired Companies Business on a           basis
consistent with past practice, ordinary wear and tear excepted, and are           free
from any known defects or Liens (other than Permitted Liens).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)        To
the Knowledge of the Company, there is no condemnation, expiration or other
          proceeding in eminent domain pending or threatened, affecting any parcel of
real           estate covered by the Company Leases or Owned Property or any portion
thereof or           interest thereon.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)        The
Acquired Assets include all assets, rights, properties, licenses and permits
          (other than Licenses required under Environmental Laws as to which Section
          3.12 shall apply), contracts and other benefits that are necessary for the
          Business as presently conducted and as presently contemplated to be conducted
by           the Acquired Companies, and, other than the Acquired Assets there are no
other           assets, properties or rights owned, used, held, or licensed by any of the
          Acquired Companies or any third party which are necessary for the Business as
          presently conducted or as presently contemplated to be conducted by the
Acquired           Companies. Without limiting the foregoing, as of the Closing no
Company           Subsidiary that is not an Acquired Company will own or hold any assets,
rights,           properties, licenses and permits, contracts or other benefits that are
used in           the Business.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)        Upon
the Closing, the Buyers shall have good, valid and marketable title to all           of
the Acquired Assets, free and clear of any Liens and any adverse claims by           any
Person, other than Permitted Liens, and to the Companys Knowledge, the
          Buyers shall have full right and power to the peaceful and quite usage and
          possession rights of the Acquired Assets so transferred. To the Companys
          Knowledge, the Buyers shall be subject to no limitations, obligations or
          restrictions with regard to the sale, license, distribution or other transfer
or           exploitation of the Acquired Assets, whether in the form transferred to it
or           after modification, except for any such limitation, obligations or
restrictions           that are created by Buyers or are derived from agreements to which
it is a           party.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h)        All
references to the Acquired Assets in this Section 3.8 shall           not include
the Transferred Intellectual Property.
| | ---------------------------------------------------------------------------------------------------------------------------------------

3.9
Taxes.

| | (a)
Tax Returns Filed; Taxes Paid. Except as set forth in Section
3.9(a) of the Company Disclosure Schedule, (i) all           returns,
declarations, claims for refund, information returns and reports           (Tax
Returns) of or with respect to any and all taxes,           charges, fees,
levies, assessments, duties or other amounts payable to any U.S.           federal, state
or local or Israeli or other taxing authority or agency,           including, without
limitation, (x) income, franchise, profits, gross           receipts, minimum,
alternative minimum, estimated, ad valorem, value added,           sales, use, service,
real or personal (tangible and intangible) property,           environmental, capital
stock, leasing, lease, user, license, registration,           payroll, withholding,
disability, employment, social security (or similar),           workers compensation,
unemployment compensation, utility, severance, excise,           stamp, windfall profits,
transfer and gains taxes, (y) customs, duties,           imposts, charges, levies or
other similar assessments of any kind, and           (z) interest, penalties and
additions to tax imposed with respect thereto           (all the above Tax or
Taxes) which are           required to be filed on or before the
Closing by or with respect to the Company           Subsidiaries have been or will be
duly and timely filed, (ii) all items of           income, gain, loss, deduction and
credit or other items required to be included           in each such Tax Return have been
or will be so included and all such           information and any other information
provided in each such Tax Return is true,           correct and complete, (iii) all
Taxes owed by any of the Company           Subsidiaries (other than the Additional
Sellers) which have become or will           become due have been or will be timely paid
in full, (iv) all Tax           withholding and deposit requirements imposed on or
with respect to any of the           Company Subsidiaries (other than the Additional
Sellers) have been or will be           satisfied in full in all respects, (v) no
penalty, interest or other charge           is or will become due with respect to the
late filing of any such Tax Return or           late payment of any such Tax, and (vi) there
are no Liens on any of the           assets of the Company or any Company Subsidiary that
arose in connection with           any failure (or alleged failure) to pay any Tax.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (b)        Open
and Closed Returns Disclosed.Section           3.9(b) of the Company
Disclosure Schedule lists all U.S. federal,           state or local or Israeli or
other income Tax Returns (excluding information           returns) filed with respect to
any of the Company Subsidiaries (other than the           Additional Sellers) for the
three taxable years ending prior to the date hereof,           indicates those Tax
Returns that have been audited, indicates those Tax Returns           that are currently
the subject of audit, and indicates those Tax Returns whose           audits have been
closed.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)        Extensions
Disclosed. Except as set forth in Section           3.9(c) of the
Company Disclosure Schedule, there is not in force any           extension of time
with respect to the due date for the filing of any Tax Return           of or with
respect to any of the Company Subsidiaries (other than the Additional           Sellers)
or any waiver or agreement for any extension of time for the assessment           or
payment of any Tax of or with respect to any of the Company Subsidiaries           (other
than the Additional Sellers).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)        Claims
Disclosed. There is no outstanding written claim from any taxing           authority
against any of the Company Subsidiaries (other than the Additional           Sellers) for
any Taxes, and no assessment, deficiency or adjustment has been           asserted,
proposed or to the Companys Knowledge threatened by any taxing           authority
with respect to any Tax Return of or with respect to any of the           Company
Subsidiaries (other than the Additional Sellers) with respect to any           period for
which the statute of limitations on the assessment of Tax           deficiencies has not
expired other than those disclosed (and to which are           attached true and complete
copies of all audit or similar reports) in Section           3.9(d) of the Company
Disclosure Schedule. To the Companys           Knowledge, no claim has ever
been made by a taxing authority in a jurisdiction           where any of the Company
Subsidiaries (other than the Additional Sellers) do not           file Tax Returns that
any of the Company Subsidiaries (other than the Additional           Sellers) is or may
be subject to taxation in that jurisdiction and, to the           Knowledge of the
Company, there is no such jurisdiction that could properly make           such a claim.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)        Scheduled
Tax Liabilities Sufficient. The total amounts set           up as
Liabilities for current and deferred Taxes in the Financial Statements are
          sufficient to cover the payment of all Taxes, whether or not assessed or
          disputed, which are, or are hereafter found to be, or to have been, due by or
          with respect to any of the Company Subsidiaries (other than the Additional
          Sellers) up to and through the periods covered thereby.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

20

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| | (f)        Tax
Allocation Agreements. The Company has previously delivered to the           Buyer
true and complete copies of each written Tax allocation or sharing           agreement
and a true and complete description of each unwritten Tax allocation           or sharing
arrangement affecting any of the Company Subsidiaries (other than the
          Additional Sellers). No payments are due or will become due by any of the
          Company Subsidiaries (other than the Additional Sellers) pursuant to any such
          agreement or arrangement or any Tax indemnification agreement except as set
          forth in Section 3.9(f) of the Company Disclosure Schedule.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)        Change
of Accounting Method. None of the Company Subsidiaries will be           required to
defer any amount of income in respect of any taxable period prior to           the
Closing Date to any taxable period beginning after the Closing Date as a           result
of a change in accounting method for any taxable period ending on or           before the
Closing Date or pursuant to any agreement with any taxing authority           with
respect to any such taxable period.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h)        Partnerships;
Foreign Corporations. Except as set forth in Section           3.9(h) of the
Company Disclosure Schedule, none of the property of           any of the Company
Subsidiaries (other than the Additional Sellers) is held in           an arrangement that
is classified as a partnership for Tax purposes, and none of           the Company
Subsidiaries (other than the Additional Sellers) is, or owns any           interest in
any, controlled foreign corporation (as defined in section 957 of           the Code), or
other entity the income of which is required to be included in the           income of
any of the Acquired Companies.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)        Section 341(f)
Election. Neither the Company nor any of the Company           Subsidiaries has made
an election under section 341(f) of the Code.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (j)        Business
Attributes. Section 3.9(j) of the Company Disclosure           Schedule sets
forth with respect to each of the Acquired Companies the           amount of any deferred
gain or loss allocable to each of the Acquired Companies           arising out of any
intercompany transaction, as defined in Treasury Regulations           section 1.1502-13.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (k)        Activity
Limitations. Neither the Company nor any Company           Subsidiary
has entered into any agreement or arrangement with any taxing           authority that
requires it to take any action or to refrain from taking any           action, except for
the undertaking in connection with the grant of an           Approved Enterprise status
and the undertaking in connection with           the grant of options under Section 102
of the Ordinance.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (l)        Franchise
Taxes. Notwithstanding anything to the contrary herein, any           franchise Tax
paid or payable with respect to any of the Company Subsidiaries           (other than the
Additional Sellers) shall be allocated to the taxable period           during which the
income, operations, assets or capital comprising the base of           such Tax is
measured, regardless of whether the right to do business for another           taxable
period is obtained by the payment of such franchise Tax.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (m)        Affiliated
Groups. Except as set forth in Section           3.9(m) of the
Company Disclosure Schedule, no Company Subsidiary           (i) has been a
member of an affiliated group filing a consolidated federal           income Tax Return
or (ii) has any liability for Taxes of any person under           Treasury
Regulations section 1.1502-6 (or any similar provision of U.S. federal,           state
or local or Israeli or other law), as a transferee or successor, by           contract or
otherwise.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (n)        United
States Real Property Holding Corporation. Neither the Company nor           any
Company Subsidiary has been a United States real property holding           corporation
within the meaning of section 897(c)(2) of the Code since the           incorporation.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (o)        Tax
Incentives. Section 3.9(o) of the Company Disclosure           Schedule, lists
each Tax incentive currently in effect granted to each of           the Acquired
Companies under the laws of the State of Israel or under any other           applicable
Laws, the period for which such Tax incentive applies, and the nature           of such
tax incentive. Each of the Acquired Companies has complied with all
          requirements of Israeli law (or other applicable Laws) to be entitled to claim
          all such incentives. The consummation of the Transaction will not adversely
          affect the remaining duration of the incentive or require any recapture of any
          previously claimed incentive, and no consent or approval of any Governmental
          Authority is required, other than as contemplated by Schedule
          5.3(c), prior to the consummation of the Transaction in order to
          transfer to and preserve the entitlement of the Buyers to any such incentive.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.10
Intellectual Property.

| | (a)        Section
3.10(a) of the Company Disclosure Schedule lists all the           Transferred
Intellectual Property (including but not limited to registration           numbers,
application serial numbers, dates of use, any further actions and           payments
related thereto that are required following the date hereof, etc.) as           well as
any and all proceedings or actions before any court, tribunal (including           the
PTO or equivalent authority anywhere in the world) related to any of the
          Transferred Intellectual Property. To the extent any of the Transferred
          Intellectual Property are not registered or the subject of an application to
          register, they shall be identified as accurately and concisely as reasonable
          under the circumstances. For all Transferred Intellectual Property listed on Section
3.10(a) of the Company Disclosure Schedule, the Schedule           identifies the
Company or Company Subsidiary that is the owner, and to the           Knowledge of the
Company, also identifies such Transferred Intellectual Property           related to ink
manufactured in Israel and such Transferred Intellectual Property           related to
ink manufactured in South Africa.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        Except
as set forth in Section 3.10(b) of the Company Disclosure           Schedule, to
the Knowledge of the Company there are no facts or           circumstances that would
render any of the Transferred Intellectual Property           invalid or unenforceable.
Without limiting the foregoing, the Company has no           Knowledge of any
information, materials, facts, or circumstances, including any           information or
fact that would constitute prior art, that would render any of           the Transferred
Intellectual Property invalid or unenforceable, or would           adversely affect any
pending application to register any the Transferred           Intellectual Property and
the Company has not Knowingly misrepresented or failed           to disclose, any facts
or circumstances in any application for any the           Transferred Intellectual
Property that would constitute fraud or a           misrepresentation with respect to
such application or registration or that would           otherwise affect the validity or
enforceability of any the Transferred           Intellectual Property.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (c)        Except
as set forth in Section 3.10(c) of the Company Disclosure           Schedule, (i) each
of the Transferred Intellectual Property, including           all the Company Registered
Intellectual Property Rights, is free and clear of           any third-party interests
including any Liens, (ii) the Acquired Companies           are the exclusive owners
or exclusive licensees of all the Transferred           Intellectual Property (including
all improvements, derivative works and the           like), (iii) the Acquired
Companies have obtained (by agreement or           operation of law) a valid and
enforceable assignment sufficient to irrevocably           transfer all Transferred
Intellectual Property (including the right to seek past           and future damages with
respect thereto) from third parties for all Intellectual           Property developed or
owned by those third parties and which has been, currently           is or planned to be
used, required or needed in the conduct of the Acquired           Companies Business
as currently conducted, (iv) the Acquired           Companies do not license any of
the Transferred Intellectual Property to third           parties, or permit third parties
to use any of the Transferred Intellectual           Property, on terms other than
substantially standard payment and other terms           which it offers to all third
parties, and (v) none of the Acquired           Companies owes any royalties or
payments to any third party for using or           licensing to others any of the
Transferred Intellectual Property.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)        Except
as set forth in Section 3.10(d) of the Company Disclosure           Schedule, the
Transferred Intellectual Property, constitutes all of the           Intellectual Property
used in or necessary to the conduct of the Business of the           Acquired Companies
as it has been and currently is conducted, or currently           planned to be
conducted, including, without limitation, the design, development,           manufacture,
use, import and sale of Products, Transferred Technology and           services
(including products, technology or services currently under           development) of the
Acquired Companies.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)        The
Company has made available to the Buyer or its counsel a copy of all           Contracts
to which any of the Acquired Companies is a party, a third-party           beneficiary,
or otherwise bound by such Contract with respect to any Transferred
          Intellectual Property. Except as set forth in Section 3.10(e) of the
          Company Disclosure Schedule, to the Knowledge of the Company, (i) all
          such Contracts (a) are in full force and effect, (b) are not the subject of any
          dispute regarding the rights and obligations specified in such Contract, or
          performance under such Contract, and (c) are freely assignable by the Acquired
          Companies without the payment of any additional amounts or consideration other
          than ongoing fees, royalties or payments which the Acquired Companies would
          otherwise be required to pay, (ii) the consummation of the Transaction and
          the other transactions contemplated by this Agreement will neither violate nor
          result in the alteration, amendment, breach, modification, cancellation,
          termination or suspension of such Contracts, and (iii) neither the Company, any
          Company Subsidiary nor any other party is in breach of or has failed, to
perform           under, any such Contracts and, to the Companys Knowledge, no
other party           to any such Contract is in breach thereof or has failed to perform
thereunder.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

23

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| | (f)        The
operation of the Business of the Acquired Companies as currently conducted           or
as currently contemplated to be conducted by the Acquired Companies,           including
but not limited to the design, development, use, import, export,           manufacture
and sale of the Products, Transferred Technology or services           (including
products, technology or services currently under development) of the           Acquired
Companies does not, and to the extent conducted by the Buyers in the           same
manner following the Closing will not, infringe or misappropriate any
          Intellectual Property Right of any third party. Except as set forth in Section
3.10(f) of the Company Disclosure Schedule, the Acquired           Companies have not
received notice of, nor, to the Knowledge of the Company, do           any facts or
circumstances exist that could reasonably be expected to give rise           to, any
lawsuit, claim, demand, proceeding or investigation involving matters of           the
type contemplated by the immediately preceding sentence.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)        All
registrations for the Company Registered Intellectual Property Right are           valid
and subsisting, and all necessary registration, maintenance and renewal           fees in
connection with such Company Registered Intellectual Property Rights           have been
paid and all reasonably necessary documents and certificates in           connection with
such Company Registered Intellectual Property Rights have been           filed with the
relevant patent, copyright, trademark or other authorities in the           United
States, Israel and other jurisdictions, as the case may be, for the           purposes of
maintaining such Company Registered Intellectual Property Rights.           Except as set
forth in Section 3.10(g) of the Company Disclosure           Schedule, there are
no actions that must be taken by the Company within 60           days of the Closing
Date, including the payment of any registration, maintenance           or renewal fees or
the filing of any responses to the PTO, actions, documents,           applications or
certificates for the purposes of maintaining, perfecting or           preserving or
renewing any the Company Registered Intellectual Property Rights.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h)        To
the Knowledge of the Company, other than as set forth in Section           3.10(h) of
the Company Disclosure Schedule, the Transferred           Intellectual Property does
not include any open source, shareware, freeware code           or other freely available
software that is subject to restrictions on use. Section 3.10(h) of the Company
Disclosure Schedule lists all           software or other material that is or is
required to be distributed as           freeware, free software, open
source           software or under a similar licensing or distribution model
(including but           not limited to any license which complies with the Open Source
Initiative           Corporations (OSI) open source definition or which is, or is
equivalent           to, a license approved by OSI) that the Acquired Companies use or
license, and           identifies that which is incorporated into, combined with, or
distributed in           conjunction with any Acquired Companies Products or
services           (Incorporated Open Source Software) copies of which
have been           provided to the Buyer. The Acquired Companies use and
distribution of each           component of Incorporated Open Source Software complies
with all material           provisions of the applicable license agreement, and in no
case does such use or           distribution give rise under such license agreement to
any rights in any third           parties under any Company Intellectual Property Rights
or obligations for the           Acquired Companies with respect to any Company
Intellectual Property Rights,           including without limitation any obligation to
disclose or distribute any such           Intellectual Property in source code form, to
license any such Intellectual           Property for the purpose of making derivative
works, or to distribute any such           Intellectual Property without charge.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)        To
the Knowledge of the Company, no person is infringing or misappropriating any
          of the Transferred Intellectual Property.
| | -----------------------------------------------------------------------------------------------------------------------------------------------

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| | (j)        The
Acquired Companies have taken all commercially reasonable steps to protect           the
Acquired Companies rights in confidential information and trade           secrets
of the Acquired Companies or as required by any other person who has           provided
its confidential information or trade secrets to the Acquired           Companies. All
personnel who are currently or formerly have been employees,           agents,
consultants and contractors of the Acquired Companies who have           contributed to
or participated in the conception and development of all           Intellectual Property
for or on behalf of the Acquired Companies have executed           nondisclosure
agreements in substantially similar form to the form provided by           the Company to
the Buyer and either (i) have been a party to a           work-for-hire arrangement
or agreements with the Acquired Companies           in accordance with applicable
national and state law that has accorded the           Acquired Companies full, exclusive
and original ownership of all tangible and           intangible property thereby arising,
or (ii) have executed appropriate           instruments of assignment in favor or
the Acquired Companies as assignee that           have conveyed to the Acquired
Companies, effective, and exclusive ownership of           all tangible and intangible
property thereby arising. To the Companys           Knowledge, none of the Companys
officers or employees has entered into any           agreement relating to the
prohibition or restriction of competition or           solicitation of customers, or any
other similar restrictive agreement or           covenant, whether written or oral, with
any Person which would materially           inhibit the performance of their duties in
connection with the Companys           business.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (k)        Except
as disclosed in Section 3.10(k) of the Company Disclosure           Schedule,
neither the Company nor any Company Subsidiary has taken any of           the following
actions: (i) disclosing or providing access to the Company Source           Code, other
than pursuant to those source code escrow agreements listed in Section 3.10(l) of the
Company Disclosure Schedule, or to           employees and consultants of the
Acquired Companies while bound by           confidentiality obligations to the Acquired
Companies; (ii) disclosing any of           Acquired Companies trade secrets to a
third party without an appropriate           non-disclosure agreement; (iii) providing
access to the Transferred Intellectual           Property to a third party without
restrictions on unauthorized copying,           unauthorized sale or transfer,
recompilation, disassembly or reverse-engineering           and other industry-standard
restrictions on use; or (iv) embedding,           incorporating, distributing or
modifying third-party software, including open           source software, or other
third-party material.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (l)        Except
as set forth in Section 3.10(l) of the Company Disclosure           Schedule, to
the Companys Knowledge, no event has occurred, and no           circumstance or
condition exists, that (with or without notice or lapse of time)           will, or would
reasonably be expected to, result in the disclosure or delivery           by Company or
any Company Subsidiary or any other party acting on Companys           or any
Company Subsidiarys behalf to any third party of any Company Source           Code,
except disclosure to escrow agents pursuant to escrow agent agreements           listed
in Section 3.10(l) of the Company Disclosure Schedule. Section 3.10(l) of the
Company Disclosure Schedule sets forth           each contract, agreement and
instrument by and between Company, or any Company           Subsidiary, and any escrow
agents pursuant to which Company or any Company           Subsidiary has deposited, or is
or may be required to deposit, with an escrow           holder or any other party, any
Company Source Code (Company Escrow           Agreements). The
execution of this Agreement and the consummation of           the Transaction or any of
the other transactions contemplated by this Agreement,           in and of itself, will
not result in the release from escrow of any Company           Source Code. The Company
and the Company Subsidiaries are not currently in           breach of any Contract that
would give rise to a third party having the right to           release the Company Source
Code from escrow. Neither the Company nor any Company           Subsidiary is in breach
of, nor have either failed to perform under, any Company           Escrow Agreement. To
the Companys Knowledge, no other party to any such           Company Escrow
Agreement is in breach thereof or has failed to perform           thereunder.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (m)        Except
as set forth in Section 3.10(m) of the Company Disclosure           Schedule, to
the Knowledge of the Company, neither this Agreement nor the           transactions
contemplated by this Agreement, including the assignment to the           Buyers, by
operation of law or otherwise, of any Contracts to which any of the           Acquired
Companies is a party, will result in (i) the Buyers granting to           any third
party any right to or with respect to any Transferred Intellectual           Property
owned by, or licensed to, either of them, or (ii) either the           Buyers being
bound by, or subject to, any non-compete or other restriction on           the operation
or scope of their respective businesses.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (n)        Section
3.10(n) of the Company Disclosure Schedule lists all           items of Transferred
Intellectual Property, in each case that is owned by the           Company or a Company
Subsidiary, as of the date hereof which were developed with           funding provided by
or are subject to restriction, constraint, control,           supervision, or limitation
imposed by any Governmental Authority or           quasi-Governmental Authority. Except
as set forth in Section 3.10(n)           of the Company Disclosure Schedule, (i)
other than restrictions generally           imposed by any Governmental Authority or
quasi-Governmental Authority on           software companies subject to the applicable
jurisdiction, all Transferred           Intellectual Property in each case that is owned
by the Company or a Company           Subsidiary is freely transferable, conveyable, and
assignable by Company and           Buyers to any entity located in any jurisdiction in
the world without any           restriction, constraint, control, supervision, or
limitation that could be           imposed by the OCS (or any other Governmental
Authority or quasi-Governmental           Authority) and (ii) other than restrictions
generally imposed by any           Governmental Authority or quasi-Governmental Authority
on software companies           subject to the applicable jurisdiction, no restriction,
constraint, control,           supervision, or limitation whatsoever is currently imposed
by the OCS (or any           other Governmental Authority or quasi-Governmental
Authority) on the place,           method and scope of exploitation of any Transferred
Intellectual Property owned           by the Company or a Company Subsidiary (including
the operation of the Business           as it is currently conducted, including, without
limitation, the design,           development, use, import, branding, advertising,
promotion, marketing,           manufacture and sale of Transferred Intellectual Property
and any Products,           Transferred Technology a services currently under development
by Company or any           Company Subsidiary).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.11
Litigation. Except to the extent set forth in Section 3.11 of the Company
Disclosure Schedule, there is no suit, Action, or legal, administrative, arbitration,
or other proceeding or governmental investigation pending, or to the Knowledge of the
Company, threatened, against or affecting the Company or a Company Subsidiary or any of
their respective officers or managers in their respective capacities as such at law or in
equity, or before any Governmental Authority, and the Company has no Knowledge of any
basis for the foregoing (except, with respect to Environmental Laws, to the extent set
forth in Section 3.12 of the Company Disclosure Schedule). All suits, Actions, or legal,
administrative, arbitration, or other proceedings or governmental investigations
disclosed in Section 3.11 of the Company Disclosure Schedule have been reserved
for appropriately (in accordance with GAAP) on the Financial Statements, and will be
appropriately reserved for (in accordance with GAAP) in any Company financial statement
filed subsequent to the date hereof. No Governmental Authority has provided the Company
with written notice challenging or questioning the legal right of the Company to conduct
the Business as conducted at that time or as presently conducted.

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3.12        Environmental
Matters

| | (a)        Except
as set forth in the Financial Statements filed prior to the date hereof           or in
Section 3.12(a) of the Company Disclosure Schedule,           (i) each of the
Acquired Companies is in compliance with all applicable           Laws and Licenses
relating to or regulating (A) the pollution, contamination or           protection of
air, soil, surface water or groundwater; or (B) emissions,           discharges,
releases, disposal, migration or handling of any Hazardous Material;           or (C)
human health or safety relating to Hazardous Material; or (D) the           registration
of chemical substances (collectively, Environmental           Laws),
which compliance includes, but is not limited to, the           possession by each of the
Acquired Companies of all permits and other           governmental authorizations
required under applicable Environmental Laws, and           compliance with the terms and
conditions thereof; (ii) neither the Company           nor any Company Subsidiary
has received written (or, to the Companys           Knowledge, oral) notice of, or,
is the subject of, any action, cause of action,           claim, or to the Companys
Knowledge  investigation, demand or notice           by any Person or Governmental
Authority alleging liability under or           non-compliance with any Environmental Law
(an Environmental           Claim) including, without limitation,
relating to any contractor,           subcontractor or agent of the Acquired Companies or
for the business, or           relating in any way to any prior facilities, locations, or
business of the           Acquired Companies; and (iii) there are no conditions or
circumstances that           are reasonably likely to result in any Liability of the
Company or a Company           Subsidiary under any Environmental Law, prevent or
interfere with any such           compliance thereunder in the future including, without
limitation, relating to           any contractor, subcontractor or agent of the Acquired
Companies or for the           business, or relating in any way to any prior property,
facilities, locations,           or business owned, leased or otherwise occupied or used
by the Acquired           Companies. The Company has provided to the Buyer all
environmental assessments,           reports, data, results of investigations, or
compliance or other environmental           audits conducted by or for the Acquired
Companies, or otherwise relating to the           Acquired Companies business or
properties (whether owned, leased or           operated).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        Without
in any way limiting the generality of the foregoing, (i) all           on-site and
off-site locations where any of the Acquired Companies previously or           currently
stored, disposed or arranged for the disposal of Hazardous Materials           are
specifically identified in Section 3.12(b) of the Company           Disclosure Schedule,
(ii) all underground storage tanks, and the           capacity and contents of such
tanks owned, operated, leased or controlled by the           Acquired Companies, or
located on property owned by the Acquired Companies, or           to the Companys
Knowledge, otherwise located on property leased or           operated, or controlled by
the Acquired Companies are specifically identified in Section 3.12(b) of the Company
Disclosure Schedule,           (iii) there is no asbestos contained in or
forming part of any building,           building component, structure or office space
owned, leased, operated or           controlled by the Acquired Companies, and (iv) no
polychlorinated biphenyls           (PCBs) or PCB-containing items are used or stored by
the Acquired Companies at           any property owned, leased, operated or controlled,
or used or stored at any           property owned by the Acquired Companies, or to the
Companys Knowledge,           otherwise located on properties leased, operated or
controlled by the Acquired           Companies.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (c)        There
are no Environmental Claims that are pending or, to the Companys
          Knowledge, threatened, against any of the Acquired Companies or against any
          person whose liability for any Environmental Claim any of the Acquired
Companies           have or are reasonably likely to have been retained or assumed by any
of the           Acquired Companies either contractually or by operation of law, and the
Company           has no Knowledge of any basis for the foregoing.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)        Section
3.12(d) of the Company Disclosure Schedule sets forth for each           product,
substance, preparation, or mixture which is manufactured, processed,           sold or
distributed by the Acquired Companies, each and every chemical substance           or
component of such product, substance, preparation or mixture.Except           as
set forth in Section 3.12(d) of the Company Disclosure           Schedule, the
Acquired Companies have not sold, processed, used or           distributed any chemical
products, or any substances, preparations, mixtures or           products containing any
chemical, in any country (including, without limitation,           the U.S., European
Union, Switzerland, New Zealand, Australia, Japan,           Philippines, Republic of
Korea, Canada and the Peoples Republic of China)           which has chemical
registration requirements (including, without limitation, and           by way of
example, the Toxic Substances Control Act, 15 U.S.C. Section 2601 et           seq. and
related foreign laws) except in compliance with all such requirements.           Except
as set forth in Section 3.12(d) of the Company Disclosure           Schedule, for
each jurisdiction in which products manufactured or           distributed by any of the
Acquired Companies are currently are sold or           distributed, whether by the
Acquired Companies or by third parties who acquired           such products for
commercial sale or distribution directly or indirectly from           any of the Acquired
Companies, all such products comply with: (i) any chemical           registration
requirements applicable to such product or to any chemical           substance contained
in such product, and (ii) any Environmental Laws which limit           or restrict the
presence of solvents or other Hazardous Materials in products           sold or
distributed.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)        For
purposes of this Agreement, a Hazardous Material means           (i) any
regulated, hazardous, toxic or dangerous waste, emission, substance           or material
(including gases, liquids and solids) defined as such in (or for the           purposes
of) any Environmental Law, including Environmental Laws relating to or           imposing
liability or standards or conduct concerning any regulated, hazardous,           toxic or
dangerous waste, emission, substance or material, (ii) petroleum,
          petroleum products, asbestos or asbestos containing materials, polychlorinated
          biphenyls, radon or lead or lead-based paints or materials and (iii) any
          other chemical, material or substance, exposure to or emission of which is
          prohibited, limited or regulated by any Governmental Authority pursuant to any
          Environmental Law and which poses or could reasonably be expected to pose a
          hazard to the health and safety of any person or property including workers at
          or users of any properties of any of the Acquired Companies, or cause damage to
          the environment or natural resources.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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3.13
Compliance with Other Laws; Permits.

| | (a)        Except
as set forth in the Financial Statements or in Section3.13 of           the Company
Disclosure Schedule or as required pursuant to any Environmental           Law (as to
which Section 3.12 applies), none of the Acquired Companies are in           violation of
or in default with respect to, or in alleged violation of or           alleged default
with respect to, any applicable law or any applicable rule,           regulation, or any
writ or decree of any Governmental Authority, or delinquent           with respect to any
report required to be filed with any Governmental Authority.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        Except
as set forth in Section 3.13 of the Company Disclosure           Schedule or as
required pursuant to any Environmental Law (as to which           Section 3.12 applies)
(i) each of the Acquired Companies holds all permits,           licenses, variances,
exemptions, orders and approvals and other authorizations           from Governmental
Authorities which are required for the operation of the           Business (including the
Acquired Assets) of the Acquired Companies taken as a           whole (collectively, the
Company Permits) (ii) each of the           Acquired Companies has
been and is in compliance in all respects with the terms           of the Company Permits
and any conditions placed thereon, (iii) the Company has           no Knowledge of any
reason it or any Company Subsidiary would not be able to           renew any of the
Company Permits required to operate or use any of the Acquired           Companies assets
for their current or anticipated purposes and uses, and           (iv) there are no
permits, licenses, variances, exemptions, orders or approvals           or other
authorizations from Governmental Authorities held by the Acquired           Companies, or
required for the Acquired Companies business, that are           required to be
transferred or reissued, or that are otherwise prohibited from           being
transferred or reissued, as a result of the transactions contemplated by           this
Agreement.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.14
Brokers. Except as set forth in Section 3.14 of the Company Disclosure Schedule,
no broker, finder, investment banker, or any other third party is entitled to any
brokerage, finders or other fee or commission in connection with the transactions
contemplated by this Agreement or the Transaction Documents based upon arrangements made
by or on behalf of the Acquired Companies.

3.15
Employment Matters.

| | (a)        Section
3.15(a) of the Company Disclosure Schedule contains           (i) a
complete list of the Business Employees, stating for each Business           Employee the
identity of the Acquired Company employing such employee and           (ii) a true
and complete list of all remuneration payable and other           compensation and
benefits provided which the Acquired Companies or any Company           ERISA Affiliate
(as defined below) is bound to provide (whether at present or in           the future) to
each such employee, or any Person connected with any such           employee, and
includes, if any, particulars of all profit sharing, equity           compensation,
incentive and bonus arrangements to which the Acquired Companies           are a party,
whether legally binding or not.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (b)        For
purposes of this Agreement, Company Benefit Plan means           each
deferred compensation and each bonus or other incentive compensation, stock
          purchase, stock option and other equity compensation plan, program, agreement
or           broad-based arrangement; each severance or termination pay, medical,
surgical,           hospitalization, life insurance and other welfare plan,
fund or           program (within the meaning of section 3(1) of the Employee Retirement
Income           Security Act of 1974, as amended (ERISA), whether or
not           subject to ERISA); each profit-sharing, stock bonus or other pension          plan,
insurance plans, education fund, provident fund or other similar fund or
          program (within the meaning of section 3(2) of ERISA, whether or not subject to
          ERISA); and each other employee benefit plan, fund, program, agreement or
          broad-based arrangement, in each case, that is sponsored, maintained or
          contributed to or required to be contributed to or entered into by the Company
          or a Company Subsidiary or by any trade or business, whether or not
incorporated           (Company ERISA Affiliate), that together with
the Company           would be deemed a single employer within the meaning of
section           4001(b) of ERISA, or to which the Company, a Company Subsidiary or a
Company           ERISA Affiliate is party, whether written or oral, for the benefit of
any           employee or former employee of the Company or any Company Subsidiary.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)        Section  3.15(c)
of the Company Disclosure Schedule contains           an accurate and complete list
of each Employment Agreement and each Company           Benefit Plan. The Company has
delivered or made available to Buyer           (i) correct and complete copies of
all documents embodying each Company           Benefit Plan and each Employment Agreement
including all amendments thereto and           all related trust documents, (ii) the
three (3) most recent annual reports           (Form Series 5500 and all schedules
and financial statements attached           thereto), if any, required under ERISA or the
Code in connection with each           Company Benefit Plan, (iii) if the Company
Benefit Plan is funded, the most           recent annual and periodic accounting of
Company Benefit Plan assets,           (iv) the most recent summary plan description
together with the           summary(ies) of material modifications thereto, if any,
required under ERISA           with respect to each Company Benefit Plan, (v) all
material written           agreements and contracts relating to each Company Benefit
Plan, including but           not limited to administrative service agreements, group
insurance contracts and           stock award agreements or notices, (vi) all
communications material to any           employee or employees relating to any Company
Benefit Plan and any proposed           Company Benefit Plans, in each case, relating to
any material amendments,           terminations, establishments, increases or decreases
in benefits, acceleration           of payments or vesting schedules or other events
under any Company Benefit Plan           which would result in any liability to the
Acquired Companies or any Company           ERISA Affiliate, (vii) all material
correspondence to or from any           governmental agency relating to any Company
Benefit Plan, (viii) all COBRA           forms and related notices, (ix) all
policies pertaining to fiduciary           liability insurance covering the fiduciaries
for each Company Benefit Plan,           (x) all discrimination tests for each
Company Benefit Plan for the three           (3) most recent plan years, (xi) the
most recent IRS determination or           opinion letter issued with respect to each
Company Benefit Plan, (xii) visa and           work permit information with respect to
current Business Employees and (xiii)           any change in control agreements. None of
the Acquired Companies nor any Company           ERISA Affiliate has any plan or
commitment to establish any new Company Benefit           Plan or Employment Agreement,
to modify any Company Benefit Plan or Employment           Agreement (except to the
extent required by Law or to conform any such Company           Benefit Plan or
Employment Agreement to the requirements of any applicable Law,           in each case as
previously disclosed to Buyer in writing, or as required by this           Agreement), or
to adopt or enter into any Company Benefit Plan or Employment           Agreement, except
as permitted by Section 5.1(a) or 5.1(i).
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (d)        Each
of the Acquired Companies and the Company ERISA Affiliates has performed in           all
material respects all obligations required to be performed by them under           each
Company Benefit Plan, and each Company Benefit Plan has been established           and
maintained in all material respects in accordance with its terms and in
          material compliance with all applicable laws, statutes, orders, rules and
          regulations, including but not limited to ERISA or the Code. All the Company
          Benefit Plans that are intended to be qualified under Section 401(a) of
the           Code have received determination letters from the IRS after January 1,
2000           to the effect that such Company Benefit Plans are qualified and the plans
and           the trusts related thereto are exempt from federal income taxes under
          Sections 401(a) and 501(a), respectively, of the Code, no such
          determination letter has been revoked and, to the Knowledge of Company,
          revocation has not been threatened, and no such Company Benefit Plan has been
          amended since the date of its most recent determination letter or application
          therefor in any respect, and no act or omission has occurred, that would
          reasonably be expected to result in the loss of its qualification. No
          prohibited transaction, within the meaning of Section 4975 of
          the Code or Sections 406 and 407 of ERISA, and not otherwise exempt under
          Section 408 of ERISA, has occurred with respect to any Company Benefit
          Plan. None of the Acquired Companies nor any Company ERISA Affiliate is subject
          to any penalty or tax with respect to any Company Benefit Plan under
          Section 502(i) of ERISA or Sections 4975 through 4980 of the Code.
          Each of the Acquired Companies and each Company ERISA Affiliate has timely made
          all contributions and other payments required by and due under the terms of
each           Company Benefit Plan. There are no actions, suits or claims pending, or,
to the           Knowledge of Company, threatened (other than routine claims for
benefits)           against any Company Benefit Plan or against the assets of any Company
Benefit           Plan. Except to the extent limited by applicable Law, each Company
Benefit Plan           can be amended, terminated or otherwise discontinued after the
Closing Date in           accordance with its terms, without material liability to the
Acquired Companies           or any Company ERISA Affiliates (other than ordinary
administration expenses).           There are no audits, inquiries or proceedings pending
or, to the Knowledge of           Company, threatened by the IRS or other Governmental
Authority with respect to           any Company Benefit Plan. No Company Benefit Plan has
assets that include           securities issued by an Acquired Company or a Company ERISA
Affiliate. Each           Employment Agreement and Consulting Agreement has been operated
and administered           in all material respects in accordance with its terms and
applicable Law.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)        None
of the Acquired Companies nor any Company ERISA Affiliate has ever           maintained,
established, sponsored, participated in, or contributed to, any           (i) Company
Benefit Plan which is an employee pension benefit           plan, within the
meaning of Section 3(2) of ERISA and is subject to           Title IV of ERISA
or Section 412 of the Code, (ii) such pension           plan which is a multiemployer
plan, as defined in Section 3(37)           of ERISA, (iii) multiple
employer plan as defined in ERISA or           the Code, or (iv) a funded
welfare plan within the meaning of           Section 419 of the Code. No
Company Benefit Plan provides health benefits           that are not fully insured
through an insurance contract.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)        None
of the Acquired Companies nor any Company ERISA Affiliate has, in any           material
respect, violated any of the health care continuation requirements of           the
COBRA, the requirements of the Family Medical Leave Act of 1993, as amended,
          the requirements of the Health Insurance Portability and Accountability Act of
          1996, the requirements of the Womens Health and Cancer Rights Act of
1998,           the requirements of the Newborns and Mothers Health
Protection Act           of 1996, or any amendment to each such act, or any similar
provisions of foreign           and state laws applicable to Business Employees.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (g)        The
consummation of the transactions contemplated by this Agreement will not,
          either alone or in combination with another event (other than, in the case of
          clauses (i) and (ii) below, the termination of employment of a Continuing
          Employee by the Buyers following the Closing Date), (i) entitle any current or
          former employee, officer or director of the Company or any Company Subsidiary
to           severance pay, unemployment compensation or any other payment, (ii)
accelerate           the time of payment or vesting, or increase the amount of
compensation due any           such employee, officer or director, except, in the case of
clauses (i) and (ii)           above, (x) as required by applicable Law, (y) as set forth
in Section           3.15(g) of the Company Disclosure Schedule or (iii) result in
the           payment of any excess parachute payment within the meaning of
          Section 280G of the Code (or any corresponding provision of applicable foreign
          and state Law). Other than the foregoing or as set forth in Section
          3.15(g) of the Company Disclosure Schedule, there are no obligations
          of the Company or any Company Subsidiary to make severance payments in amounts
          which are materially greater than the amounts prescribed by applicable Law.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h)        Except
as set forth in Section 3.15(h) of the Company Disclosure           Schedule There
are no pending or, to the Companys Knowledge,           threatened, claims by or on
behalf of any Company Benefit Plan, Employment           Agreement or Consulting
Agreement, by any employee or beneficiary covered under           any such Company
Benefit Plan, Employment Agreement or Consulting Agreement, or           otherwise
involving any such Company Benefit Plan, Employment Agreement or           Consulting
Agreement (other than routine claims for benefits).
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)        Except
with respect to Israeli Company Employees (which employees are addressed           in Section
3.15(k)below): and except as set forth in Section           3.15(i) of the
Company Disclosure Schedule: (i) the Company and           the Company
Subsidiaries are, and have been at all times, in compliance with all           applicable
federal, state and local Laws, rules and regulations (including           without
limitation the National Labor Relations Act) as well as any national,           industry
or company collective agreement, order or award, respecting employment,           pension
and social security, employment practices, terms and conditions of           employment,
wages and hours and occupational health and safety and are not           engaged in any
unfair labor practices; and (ii) within the past five years there           have not been
nor are there any pending administrative charges, arbitration           proceedings, or
lawsuits brought by or on behalf of any current or former           employee or group of
current or former employees against the Company or any of           the Company
Subsidiaries. Neither the Company nor any Company Subsidiary is now,           nor during
the last five years has been, the subject of any complaint, charge,
          investigation, audit, suit or other legal process with respect to any of
          its/their employees, independent contractors or consultants by a Governmental
          Authority. None of the employees of the Company or any Company Subsidiary (in
          their capacities as such) is, or within the last five years has been, the
          subject of a representation petition before the National Labor Relations Board
          or any other Governmental Authority.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (j)        Within
the past five years, except with respect to Israeli Company Employees           (which
employees are addressed in Section 3.15(k) below),           (i) no work
stoppage or labor strike against the Company or any Company           Subsidiary has
occurred, is pending or, to the Knowledge of the Company,           threatened; (ii) neither
the Company nor any Company Subsidiary has had to           their Knowledge any
activities or proceedings of any labor union to organize any           employees of the
Company or any Company Subsidiary; and (iii) neither the           Company nor any
Company Subsidiary has been or is a party to, or bound by, any           collective
bargaining agreement or union contract and no collective bargaining           agreement
is being negotiated by the Company or any Company Subsidiary.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (k)        All
employees of the Company are listed in Section 3.15(k) of the           Company
Disclosure Schedule (the Israeli Company           Employees). For
purposes of this Section 3.15, the term           Israeli Company Employee shall
be construed to include consultants           and freelancers who devote a majority of
their working time in Israel to the           business of the Company or a Company
Subsidiary (each of whom are identified in Section 3.15(k) of the Company Disclosure
Schedule). With respect           to the Israeli Company Employeesexcept as set
forth Section 3.15(k)           of the Company Disclosure Schedule: (i) the
Company is not a party to           any collective bargaining contract, collective labor
agreement or other contract           or arrangement with a labor union, trade union or
other organization or body           involving any of the Israeli Company Employees, and
the Company has not           recognized or received a demand for recognition from any
collective bargaining           representative with respect to any of the Israeli Company
Employees; (ii) the           Company is in compliance with all applicable legal
requirements and contracts           relating to employment, employment practices, wages,
bonuses, overtime payments,           withholding requirements and other matters relating
to compensation and terms           and conditions of employment with respect to the
Israeli Company Employees;           (iii) all of the Israeli Company Employees are
subject to termination upon up to           thirty (30) days prior written notice under
the termination notice provisions           included in employment agreements or
applicable law; (iv) Companys           obligations to provide statutory severance
pay to the Israeli Company Employees           pursuant to the Severance Pay Law
(5723-1963) are fully funded or accrued on the           Companys Financial
Statements and (v) there are no pending administrative           charges, arbitration
proceedings, or lawsuits brought by or on behalf of any           current or former
Israeli Company Employee or group of current or former Israeli           Company
Employees against the Company or any of the Company Subsidiaries.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (l)        Other
than as set forth on Section 3.15(k) of the Company Disclosure           Schedule,
(i) neither the Company nor any Company Subsidiary engages any           Israeli
employees whose employment would require special licenses or permits and           (ii)
there are no unwritten Company policies or customs that, by extension,           could
entitle Israeli Company Employees to benefits in addition to what they are
          entitled by Law or under the terms of employment agreements (including, by way
          of example but without limitation, unwritten customs or practices concerning
the           payment of statutory severance pay when it is not legally required).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (m)        All
individuals who are or were performing consulting or other services for the
          Business are or were correctly classified by the Acquired Companies as either
          independent contractors or employees, as the case may
          be. Section 3.15(m) of the Company Disclosure Schedule contains
          an accurate and complete list of each Consulting Agreement, stating the
identity           of the Acquired Company which has engages such Consultant. The Company
has           delivered to Buyer correct and complete copies of all documents embodying
each           Consulting Agreement, including all amendments thereto.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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3.16
Product Warranties. (a) Each Product, including software, manufactured, sold,
licensed, leased, or delivered by each of the Acquired Companies (or by a third party on
their behalf) has been in conformity with all applicable contractual commitments and all
express and implied warranties with respect to such Products, (b) no Product
manufactured, sold, licensed, leased, or delivered by the Acquired Companies (or by a
third party on their behalf) is subject to any guaranty, warranty, or other indemnity
beyond the applicable standard terms and conditions of sale, license, or lease or beyond
that implied or imposed by applicable Law, except for warranties extended for no more
than 2 years beyond such standard warranty term of up to 1 year. Copies of the standard
terms and conditions of sale, license, or lease for the Products of the Acquired
Companies have been delivered to Buyer.

3.17
User Data. Each of the Acquired Companies is in compliance with all applicable
laws, regulations, orders, contracts, its policies and any other commitments, obligations
or representations concerning privacy and personal data protection relating to its
employees, customers, suppliers, service providers, or any other third parties from or
about whom such Acquired Company has obtained personal data (Privacy Obligations).
No Privacy Obligations will impose any restrictions upon Buyers ability to use,
possess, disclose or transfer such personal data in the manner that each of the Acquired
Companies has used, possessed, disclosed or transferred such or similar personal data
during its use prior to Closing. None of the Acquired Companies has any notice of any
claims or alleged claims that any of them have violated Privacy Obligations and to the
Companys Knowledge, no governmental agency is investigating to determine whether
any of the Acquired Companies has violated any Privacy Obligations.

3.18
Relationships with Related Persons. Except as set forth and identified in Section
3.18 of the Company Disclosure Schedule, (i) there are no Contracts or other
transactions between any of the Acquired Companies, on the one hand, and any director or
executive officer of any of the Acquired Companies or any of their respective Affiliates,
on the other hand; (ii) there are no Contracts or other transactions between any of the
Acquired Companies, on the one hand, and Parent, the Excluded Subsidiaries or any of the
Additional Sellers, on the other hand; (iii) no Affiliate of any of the Acquired
Companies (other than the Company or any Company Subsidiary) is a distributor, supplier,
vendor, customer, client, lessor, licensor, debtor, creditor, competitor or service
provider to the any of the Acquired Companies, (iv) no director or executive officer of
any of the Acquired Companies or any of their respective Affiliates has any interest in
any of the assets or properties of any of the Acquired Companies, and (v) there are no
other Contracts, transactions, arrangements or agreements of the type listed in Section
270 of the Israeli Companies Law to which any of the Acquired Companies is a party, other
than, in any instance, with respect to compensation paid to officers or directors of any
of the Acquired Companies.

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3.19
Grants, Incentives and SubsidiesSection 3.19 of the Company Disclosure Schedule provides
a complete list of all grants, incentives and subsidies (collectively, Grants)
from the Government of the State of Israel or any agency thereof, or from any foreign
governmental or administrative agency, granted to any of the Acquired Companies,
including, without limitation, (i) Approved Enterprisefrom the Investment
Center (an Approved Enterprise) within the definition of the Law for
the Encouragement of Capital Investments (1959), as amended, and (ii) grants from the
OCS. The Company has delivered to Buyer, prior to the date hereof, correct copies of all
letters of approval (and other correspondence that evidences changes to the terms of such
letters of approval) under which such Grants were granted to the Acquired Companies.
Without limiting the generality of the foregoing, Section 3.19 of the Company
Disclosure Schedule includes the aggregate amounts of each Grant, and the aggregate
outstanding obligations thereunder of each of the Acquired Companies with respect to
royalties, or the outstanding amounts to be paid by the OCS to the Company or any Company
Subsidiary. Each of the Acquired Companies is in compliance with the terms and conditions
of their respective Grants and, except as disclosed in Section 3.19 of the Company
Disclosure Schedule hereto, have duly fulfilled all the undertakings relating thereto
required to be fulfilled prior to the date hereof. To the Knowledge of the Company, the
OCS has not notified the Company that it intends to revoke or materially modify any of
the Grants or that it believes that the Acquired Companies are not in compliance with the
terms of any Grant. The Companys research and development activities outside of
Israel as presently conduct have not and are not reasonably expected to cause the Company
to lose its qualification as an Approved Enterprise or cause any of the Companys
income to fail to be eligible for the reduced Tax rates applicable to Approved
Enterprises.

3.20
Foreign Corrupt Practices Act. The activities of each of the
Acquired Companies and their respective officers, directors and employees has complied,
and the operations, including the Business, of each of the Acquired Companies has
complied, with all applicable laws governing corrupt or illicit business practices,
including, without limitation, laws dealing with improper or illegal payments, gifts or
gratuities or the payment of money or anything of value directly or indirectly to any
person (whether a government official or private individual) for the purpose of illegally
or improperly inducing any person or government official, or political party or official
thereof, or any candidate for any such position, in making any decision or improperly
assisting any person in obtaining or retaining business or taking any other action
favorable to such person, or dealing with business practices in relation to investments
outside of the United States (including, by way of example, if applicable, the U.S.
Foreign Corrupt Practices Act, as amended).

3.21
Hedging Transactions Except as set forth in Section 3.21 of the Company
Disclosure Schedule, no Acquired Company has entered into any hedging transaction or
arrangement.

3.22
Receivables; Bank Accounts.

| | (a)        All
receivables of each of the Acquired Companies represent valid third party
          obligations arising from third party sales actually made or services actually
          performed, and are recognized as receivables in accordance with GAAP. None of
          the Acquired Companies is required under GAAP to write-off as uncollectible any
          notes, accounts receivable or other assets, except write-offs in the ordinary
          course of business charged to applicable reserves (which reserves are adequate
          and appropriate in amount) or which are immaterial in amount, and, to the
          Companys Knowledge, no facts or circumstances exist that could,
          individually or taken together, reasonably be expected to result in the
Acquired           Companies becoming required under GAAP to write-off as uncollectible
any notes,           accounts receivable or other assets, in excess of existing reserves,
except           write-offs which, individually or in the aggregate, would be immaterial
in           amount.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (b)        Section
3.22(b) of the Company Disclosure Schedule sets forth a           complete and
accurate list of (i) all bank accounts, investment accounts, lock           boxes and
safe deposit boxes maintained by or on behalf of each of the Acquired
          Companies, including the location and account numbers of all such bank
accounts,           investment accounts, lock boxes and safe deposit boxes, (ii) the
names of all           Persons authorized to take action with respect to such bank
accounts, investment           accounts, lock boxes and safe deposit boxes or who have
access thereto, and           (iii) the names of all Persons holding general or special
powers of attorney           from the Acquired Companies.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.23
Inventory. All Inventory of each of the Acquired Companies used in the conduct of
the Business reflected on the Financial Statements or acquired since the date thereof was
acquired and has been maintained in the ordinary course of business; is of good and
merchantable quality; consists substantially of a quality, quantity and condition
useable, leasable or saleable in the ordinary course of business. Section 3.23 of the
Company Disclosure Schedule hereto sets forth allowances by the Company for a reserve
for excess and obsolete Inventory.

3.24
Insurance.Section 3.24 of the Company Disclosure Schedule contains
a complete and accurate list and description of all of the Acquired Companies insurance
policies currently in effect including the Acquired Companies liability insurance
policies currently in effect with expiration dates, including whether such policies are
occurrence or claims made, of all workers compensation
arrangements and of all hazard and property insurance policies of the Acquired Companies
currently in effect, all such insurances from financially sound and reputable insurers
and which the Company reasonably believes are of the type and in amounts customarily
carried by Persons conducting businesses similar to those of the Acquired Companies.
Complete copies of each such insurance policy or arrangement and its attachments have
been delivered to the Buyer prior to the execution of this Agreement. Such insurance
policies or arrangements are valid, outstanding and enforceable and all premiums with
respect thereto which have become due have been paid. Each of the Acquired Companies has
given timely notice to the insurer under each insurance policy of all claims that may be
insured thereby. Neither the Company nor any Company Subsidiary has received any notice
that any insurance policy is not in full force and effect, and to the Knowledge of the
Company there does not exist any event, circumstance or condition (including the
Transaction) that would cause (or would be reasonably likely to cause) any such insurance
policy not to be in full force and effect. Except as set forth in Section 3.24 of the
Company Disclosure Schedule, neither the Company nor any Company Subsidiary has
received during the past three years from any insurance carrier to which it has applied
for any insurance or with which it has carried any insurance (i) any refusal of coverage
or notice of limitation of coverage or any notice that a defense will be afforded with
reservation of rights or (ii) any notice of cancellation or any other indication that any
insurance policy is no longer in full force or effect or will not be reviewed or that the
issuer of any insurance policy is not willing or able to perform its obligations
thereunder. To the Knowledge of the Company no termination of, or premium increase, has
been threatened with respect to, any of such policies.

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3.25
Full Disclosure. The representations and warranties made by the
Company (as modified by the Company Disclosure Schedule) in this Agreement, and the
statements made in any exhibit, schedule or certificate furnished by the Company pursuant
to this Agreement and taken as a whole, do not contain, or will not contain at the
Closing Date, any untrue statement of a material fact, or omit or will omit at the
Closing Date to state any material fact necessary in order to make the statements
contained herein or therein, in the light of the circumstances under which made, not
misleading.

# ARTICLE 4.
REPRESENTATIONS AND WARRANTIES OF BUYER

The
Buyer represents and warrants to the Company that each of the statements contained in this
ARTICLE 4 (including any Schedules hereto) is true and correct as of the
date hereof and will be true and correct at and as of the Closing Date, as follows:

4.1
Organization. Each of the Buyers is, or will be prior to the Closing, a
corporation duly organized, validly existing and is in good standing under the laws of
the jurisdiction of its incorporation. Each of the Buyers has, or will have prior to the
Closing, all requisite corporate power and authority to carry on its business as it is
currently conducted and to own, lease and operate its properties where such properties
are now owned, leased or operated.

4.2
Authority. Each of the Buyers, or will have prior to the Closing, has all
requisite corporate power and authority to execute and deliver each Transaction Document
delivered or to be delivered by the Buyers, as applicable, and to perform all of its
obligations hereunder and thereunder. The execution, delivery and performance by each of
the Buyers of each Transaction Document delivered or to be delivered by the Buyers, as
applicable, and the consummation by the Buyers of the Transaction have been or will be
duly authorized by all necessary and proper action on the part of the Buyers,
respectively. This Agreement has been duly executed and delivered by the Buyer and,
assuming the due authorization, execution and delivery by the other parties thereto,
constitutes the legal, valid and binding obligation of the Buyer, enforceable against it
in accordance with its terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to or affecting the
enforcement of creditors rights in general or by general principles of equity. Each
other Transaction Document to be delivered by each of the Buyers will be duly executed
and delivered by each of the Buyers and, when so executed and delivered, will constitute
the legal, valid and binding obligation of the Buyers, enforceable against the Buyers in
accordance with its terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to or affecting the
enforcement of creditors rights in general and by general principles of equity.

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4.3
Noncontravention. Subject to the receipt of all required regulatory,
administrative and Governmental Authorities and Consents, none of the execution, delivery
or performance by the Buyers of any Transaction Document or the consummation by the
Buyers of the Transaction does or will, with or without the giving of notice or the lapse
of time or both, conflict with, or result in a breach or violation of, or a default under
(i) the respective organizational documents of the Buyers, (ii) any applicable Law,
or (iii) contravene, conflict with or result in a violation of, or result in a default
under, or result in the acceleration or cancellation of any obligation under, or give
rise to a right by any person to terminate, cancel, modify or amend in any respect its
obligations under any Contract to which any of the Buyers is a party or by which any of
them or their properties or assets are bound, (iv) or give any Governmental
Authority or other Person the right to challenge the Transaction or to exercise any
remedy or obtain any relief under, any legal requirement or any order, writ, injunction,
judgment or decree to which the Buyers, or any of the assets owned or used by the Buyers,
is subject, (v) contravene, conflict with or result in a violation of any of the
terms or requirements of, or give any Governmental Authority the right to revoke,
withdraw, suspend, cancel, terminate, modify or exercise any right or remedy or require
any refund or recapture with respect to, any Grant or benefit given by any Governmental
Authority or under applicable Law (or any benefit provided or available thereunder) or
other permit, license, consent, authorization, Grant, benefit, or right that is held by
any of the Buyers, (v) result in the imposition, creation or crystallization of any
Lien upon or with respect to any asset or property owned, leased or used by the Buyers,
or (vi) with the passage of time, the giving of notice, or the taking of any action
by a third person, or any combination thereof, have any of the effects set forth in
clauses (i) through (vi) of this Section, except, in each case, for such contraventions,
conflicts, violations, breaches, accelerations, cancellations, revocations, withdrawals,
suspensions, terminations, modifications, rights, remedies or Liens, which individually
or in the aggregate would not delay, hinder or impair any of the Transactions.

4.4
Approvals. No consent, approval, order or authorization of, or registration,
declaration or filing with, any Governmental Authority, is required by or with respect to
any of the Buyers in connection with the execution and delivery of this Agreement or the
consummation of the transactions contemplated hereby, except for (A) the approvals set
forth in Section 3.2(b), (B) the requirements of any Governmental Authority under
applicable competition, antitrust or foreign investment or trade regulatory Laws,
including the applicable requirements of the HSR Act, and (C) the approval, if
applicable, of the Israeli Commissioner of Restrictive Trade Practices to the extent
required pursuant to the Restrictive Trade Practices Act.

4.5
Available Funds. The Buyer has sufficient funds to enable it to consummate the
Transactions.

4.6
Litigation. There is no suit, Action, or legal, administrative, arbitration, or
other proceeding or governmental investigation pending, or to the best knowledge of the
Buyer, threatened, against or affecting any of the Buyers or any of their respective
officers or managers in their respective capacities as such at law or in equity, or
before any Governmental Authority, which seeks to, or could, delay, hinder or impair any
of the Transactions.

4.7
Brokers. Except for Citigroup Global Markets Inc., no broker, finder, investment
banker, or any other third party is entitled to any brokerage, finders or other fee
or commission in connection with the transactions contemplated by this Agreement or the
Transaction Documents based upon arrangements made by or on behalf of the Buyer.

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# ARTICLE 5. COVENANTS

5.1
Conduct of Business. Except as contemplated by this Agreement or consented to by
Buyer in writing (which consent shall not be unreasonably withheld or delayed), during
the period from the date hereof and continuing until the earlier of the termination of
this Agreement pursuant to its terms or the Closing Date, the Company shall, and shall
cause each Company Subsidiary to, carry on its business in the usual, regular and
ordinary course in substantially the same manner as heretofore conducted and in material
compliance with all applicable Laws (including the making of payments to the Acquired
Companies suppliers, vendors, etc., as such become due), and with respect to
incurring any expense, cost or liability solely in accordance with and as permitted under
the Budget and Operating Plan or otherwise in the ordinary course of business consistent
with past practice, and to use its commercially reasonable efforts consistent with past
practices and policies to (i) preserve intact its present business organization, (ii)
keep available the services of its present officers and management level employees and
(iii) preserve its relationships with customers, suppliers, distributors, licensors,
licensees, brokers, agents, creditors and others with which it has material business
dealings. Without limiting the generality of the foregoing, except as contemplated by
this Agreement, during the period from the date hereof and continuing until the earlier
of the termination of this Agreement pursuant to its terms or the Closing Date, and with
respect to incurring any expense, cost or liability, not permitted under or inconsistent
with the Budget and Operating Plan or otherwise in the ordinary course of business
consistent with past practice, without the prior written consent of Buyer (which consent
shall not be unreasonably withheld or delayed), the Company shall not and shall not
permit any Company Subsidiary to (unless required by Law, in each case after consultation
with counsel and, to the extent reasonably feasible, prior written notification of at
least five (5) days to Buyer) to do any of the following:

| | (a)        accelerate,
amend or change the period of exercisability of options or           restricted stock, or
reprice options granted under any employee, consultant,           director or other stock
plans or authorize cash payments in exchange for any           options granted under any
of such plans, other than as set forth in Schedule           5.1(a);
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        transfer
or license exclusively to any Person or entity or otherwise extend,           amend or
modify any rights to the Transferred Intellectual Property, or enter           into any
agreements or make other commitments or arrangements to grant, transfer           or
license to any Person future rights to any Transferred Intellectual Property,
          in each case other than entering into, amending or modifying licenses in the
          ordinary course of business consistent with past practices;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)        purchase,
redeem or otherwise acquire, directly or indirectly, any shares of           capital
stock of any Company Subsidiary (other than the Additional Sellers),           other than
such actions as are required in order to consummate the Transaction           and give
effect to the provisions of Schedule 1.1(a) and Schedule           1.1(c);
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)        issue,
deliver, sell, authorize, pledge or otherwise encumber or propose any of           the
foregoing with respect to any shares of stock of any Company Subsidiary or           any
securities convertible into or exercisable or exchangeable for shares of           stock
of any Company Subsidiary (other than the Additional Sellers), or
          subscriptions, rights, warrants or options to acquire any such shares or any
          securities convertible into or exercisable or exchangeable for such shares, or
          enter into other agreements or commitments of any character obligating it to
          issue any such shares or convertible securities;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (e)        cause,
permit or propose any amendments to the Formation Documents;
| | ------------------------------------------------------------------------------

| | (f)        (i)
acquire or agree to acquire any equity interest in or a portion of the           assets
or property of any Person or division thereof, (ii) otherwise acquire or           agree
to acquire all or substantially all of the assets of any of the foregoing,           or
enter into any joint ventures, strategic partnerships or alliances, or (iii)
          invest in any third party; all of the above, other than such actions with
          respect to the Company Subsidiaries and Excluded Subsidiaries as are required
in           order to consummate the Transaction and give effect to the provisions of Schedule
1.1(a) and Schedule 1.1(c);
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)        make
any capital expenditure, except for capital expenditures which, on a           quarterly
basis, are not in excess of the average quarterly capital expenditures           over the
last three quarters of 2004;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h)        except
in the ordinary course of business consistent with past practice, (i)           sell,
lease, mortgage, pledge, license, encumber, convey, assign, sublicense or
          otherwise dispose of or transfer any properties or assets, other than the sale,
          lease, licensing, encumbrance, conveyance, assignment, sublicensing or
          disposition of property or assets in any single transaction or series of
related           transactions having a fair market value not in excess of an aggregate
amount of           $50,000, (ii) materially modify, amend or terminate any existing
material           lease, license or Contract affecting the use, possession or operation
of any           such properties or assets, or (iii) grant or otherwise create or
consent to           the creation of any material easement, covenant, restriction,
assessment or           charge affecting any owned real property or leased real property
or any material           part thereof;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)        (i)
except pursuant to Company Benefit Plans in existence prior to the date           hereof,
adopt or amend any material Company Benefit Plan, or (ii) enter into any
          agreement providing for the employment or consultancy of any person on a
          full-time, part-time, consulting or other basis or otherwise providing
          compensation or other benefits to any officer, director, employee or
consultant,           if the compensation to be paid and payable on an annualized basis
to such person           (x) will exceed $100,000 or (y) together with the compensation
to be paid and           payable on an annualized basis to all other such persons hired
on or after the           date hereof, will increase the Companys annual payroll as
compared to its           annual payroll as of the date of this Agreement by more than
$1,000,000, and           other than offer letters and agreements that are entered into
in the ordinary           course of business consistent with past practice with employees
who are           terminable at will with no longer than 30 day termination
notice,           and who are not officers of the Company, or amend any Employment
Agreement;           (iii) increase the salaries or wage rates or fringe benefits
(including           granting or increasing rights to severance or indemnification)
(other than           increases in the ordinary course of business consistent with past
practice or as           required by any existing employment agreement or collective
bargaining           agreements) of its directors, officers, employees or consultants
except, in each           case, as may be required by Law or any existing Company Benefit
Plan; (iv)           layoff any employee who is either a Key Employee or with the title
of Vice           President or higher of the Company or any Company Subsidiary (except
for           termination for cause) or effect any reduction (which is
material           with respect to the Companys operations in a particular country)
in           workforce; or (v) enter into, or perform, any transaction (other than an
          immaterial transaction) with or for the benefit of any officer, director or
          other affiliate of the Company or any Company Subsidiary (other than in the
          ordinary course of business or pursuant to the agreements set forth in Section
3.18 of the Company Disclosure Schedule); provided           however that
notwithstanding the above, the Company may grant employees a           special bonus in
connection with the Transaction contemplated hereunder.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (j)        modify,
amend or terminate, in any material respect, any Contract or waive,           delay the
exercise of, release or assign any material rights or material claims
          thereunder;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (k)        except
as required by Law or by GAAP, revalue any of its assets or make any           material
change in accounting methods, principles or practices;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (l)        enter
into, renew or modify any Contracts that, had they been executed on or as           of
the date hereof, would have been required to be listed in Section           3.6 of the
Company Disclosure Schedule;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (m)        (i)
except as required by Law or by any Governmental Authority, or as set forth           in
Section 5.1(m) of the Company Disclosure Schedule make any material           Tax
election or Tax accounting method change, or (ii) consent to any           extension
or waiver of any limitation period with respect to Taxes or (iii)           other than in
consultation in good faith with Buyer or as explicitly provided           herein, engage
in any discussions with any Tax authority relating to any Tax           ruling, whether
or not initiated prior to the execution of this Agreement;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (n)        [reserved]
| | ---------------------

| | (o)        pay,
discharge, compromise, satisfy, cancel or forgive any debts or claims or           rights
(or series of rights, debts or claims) involving, individually or in the
          aggregate, consideration in excess of $50,000 except for regularly scheduled
          repayments under existing indebtedness;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (p)        settle
or compromise any pending or threatened suit, Action or claim which is           material
or which relates to the transactions contemplated hereby;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (q)        apply
for or accept any grants or other funding from the OCS or any other
          Governmental Authority, other than under currently outstanding applications
          disclosed on Section 3.19 of the Company Disclosure Schedule, or
          take any action or fail to take any action in material violation of, or that
          would adversely affect the terms and conditions of any grants or benefits
          received or receivable from any Governmental Authority, including without
          limitation the OCS and the Investment Center; or
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (r)        agree
or commit to take any of the actions described in Sections           5.1(a) through
5.1(q) other than in accordance with the           Budget and Operating Plan and in
the amounts set forth therein.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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Subject
to compliance with applicable Law, from the date of this Agreement until the earlier of
the termination of this Agreement in accordance with its terms or the Closing Date, the
Company shall confer on a regular basis with one or more representatives of Buyers to
report on operational matters that are material and other matters reasonably requested by
Buyers. The Company shall promptly provide the Buyer with all filings made with any
Governmental Authority in connection with this Agreement, the Transaction and the
transactions contemplated hereby.

5.2
Investigation of the Companys Business by the Buyers. From the date hereof
through the Closing Date, the Company will provide to the Buyers and their
Representatives reasonable access during normal business hours to the properties, books,
records, employees and Representatives of the Acquired Companies to make or cause to be
made such investigation of the Acquired Companies and of the assets and liabilities and
financial and legal condition of the Acquired Companies as the Buyers deems necessary or
advisable, provided that any such investigation shall not interfere unnecessarily with
normal operations of the Acquired Companies. The Company will furnish to the Buyers and
their Representativessuch financial and operating data and other information
with respect to the Acquired Companies and the assets and Liabilities of the Acquired
Companies as the Buyers shall from time to time reasonably request. All information
obtained by or on behalf of the Buyers pursuant to this Section shall be kept
confidential in accordance with the provisions of the Non Disclosure Agreement, dated
January 28, 2005, between the Company and the Buyer (the NDA).

5.3
Commercially Reasonable Efforts.

| | (a)        Subject
to the terms and conditions of this Agreement and applicable Law, the           Company
and the Buyers will use their commercially reasonable efforts to take,           or cause
to be taken, all actions, and to do, or cause to be done, all things           reasonably
necessary, proper or advisable under applicable Laws and regulations           or
otherwise to consummate and make effective the Transaction as soon as
          practicable, including such actions or things as any other party hereto may
          reasonably request in order to cause any of the conditions to such other
          partys obligation to consummate such transactions specified in ARTICLE
6 to be fully satisfied including without limitation           (i) make all
filings required by Law to be made by them in connection with           the Transaction
Documents or the consummation of the Transaction, and (ii) use           their
commercially reasonable efforts to obtain all Consents and orders of all
          Persons required to be obtained in connection with the execution, delivery and
          performance of the Transaction Documents and the consummation of the
          Transaction;.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        From
time to time, as and when requested by any party to this Agreement, the           other
parties will execute and deliver, or cause to be executed and delivered,           all
such documents and instruments and will take, or cause to be taken, all such
          reasonable actions, as such other party may reasonably deem necessary or
          desirable to consummate the Transaction.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)        Company
will use its best efforts to fully identify to the Buyer and list in           writing
prior to the Closing which Company or Company Subsidiary is the owner of           each
item of Transferred Intellectual Property, and which item of Transferred
          Intellectual Property is related to ink manufactured in Israel and which item
of           Transferred Intellectual Property is related to ink manufactured in South
          Africa.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (d)        Notwithstanding
anything to the contrary contained in this Agreement, to the           extent the sale,
assignment, transfer, conveyance or delivery or attempted sale,           assignment,
transfer, conveyance or delivery to the Buyers of any Acquired Asset           is
prohibited by any applicable Law or would require any Governmental Authority           or
third-party authorizations, approvals, consents, or waivers and such
          authorizations, approvals, consents or waivers shall not have been obtained
          prior to the Closing Date, and the obtaining thereof is not a condition to the
          Closing, then following the Closing, and without limiting the provisions set
          forth in ARTICLE 5, the Company shall be deemed to hold the
          respective Acquired Asset and all rights and privileges with respect thereto as
          a trustee for the sole benefit of the Buyers and shall manage such Acquired
          Asset solely in accordance with instructions of the Buyers, and the parties
          shall use their respective commercially reasonable efforts, and cooperate with
          each other, to obtain promptly such authorizations, approvals, consents or
          waivers, including without limitation such Consents set forth in Schedule
          5.3(d). Pending such authorization, approval, consent, or waiver,
          (i) the parties shall cooperate with each other in any reasonable and lawful
          arrangements designed to provide to the Buyers the benefits of use of such
          Acquired Asset, and (ii) the Buyers shall bear all costs and expenses and
Losses           relating to the maintenance of such Acquired Asset. Once such
authorization,           approval, consent or waiver for the sale, assignment, transfer,
conveyance or           delivery of an Acquired Asset not sold, assigned, transferred,
conveyed or           delivered at the Closing is obtained, the Company shall promptly
assign,           transfer convey or deliver, or cause to be assigned, transferred,
conveyed and           delivered, such Acquired Asset to the Buyers for no additional
consideration. To           the extent that any such Acquired Asset cannot be transferred
or the full           benefits of use of any such Acquired Asset cannot be provided to
the Buyers           following the Closing, the Buyers and the Company shall enter into
such           arrangements for no additional consideration from the Buyers (including
          subleasing or subcontracting if permitted) to provide to the Buyers the
          operational equivalent of obtaining such authorization, approval, consent or
          waiver. Without limitation of the foregoing, in the event that at the Closing
          the registration of any Transferred Intellectual Property in the name of the
          Buyers at the relevant Governmental Authority was not yet completed and
          perfected then without limitation of any other rights of the Buyers, to the
          extent necessary to grant to the Buyers full and unrestricted use of such
          Transferred Intellectual Property, the Company hereby grants to the Buyers,
          effective as of the Closing and subject to any Third Party Licenses, an
          irrevocable, perpetual, royalty free, fully paid, worldwide, unrestricted,
          exclusive license to make any use or exploitation with respect thereto,
          including without limitation the right to grant sublicenses. In the event that
          any Acquired Asset was not duly transferred or assigned to the Buyers or its
          Affiliates at the Closing, and notwithstanding, the Closing was completed, then
          the Company shall take any action after the Closing, as reasonably requested by
          Buyers, to allow Buyers to enforce any rights or privileges of the Company
under           or with respect to such Acquired Assets, including pursuit of legal
proceedings,           solely for the benefit of and at the expense of Buyers, and the
Company shall           fully cooperate with Buyers in order to allow Buyers to achieve
the desired           result in this regard.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (e)        To
the extent possible and without additional cost to the Company, Company will
          add Buyer as beneficiaries to all insurance policiesof the Company
          related to the Acquired Assets or the Transferred Intellectual Property which
          stay in force and effect following the Closing Date (the Business
          Insurance Policies), provided the insurance company waives any right
          it might have against the Company for subrogation. In case Buyer is not added
as           a beneficiary to a Business Insurance Policy, Buyer shall be entitled to
benefit           from the rights of the Company under such Business Insurance Policies,
and the           Company shall take all commercially reasonable actions, at the
reasonable           direction of Buyer, in order to receive any amounts that are owed
under any           Business Insurance Policies related to Acquired Assets or the
Transferred           Intellectual Property. For avoidance of doubt, no Business
Insurance Policy           shall be required to be maintained after its currently
scheduled expiration. All           expenses incurred by the Company with respect to the
foregoing, including           reasonable fees for the time spent by the Companys
employees, shall be           borne and paid by Buyer, except that if proceedings for
collection of funds           under the Business Insurance Policy relate also to funds
that are due to the           Company with respect to any Excluded Assets or Excluded
Liabilities, than such           expenses shall be borne by the Company and Buyer pro
rata based on the amount of           insurance proceeds actually paid to each party.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)        The Acquired
Companies shall cooperate with Buyer in the review of           regulatory matters affecting
the Acquired Companies and, in           particular, upon the reasonable request of
Buyer, shall take such           actions, implement such registrations, submit such
permit applications and           seek such approvals as may be required by
Environmental Laws to ensure           that the Acquired Companies and their products
are in           compliance with all Environmental Laws as of, and immediately after, the
          Closing in all countries in which those products are sold as of the
          Closing. The Company shall instruct the employee of the Company named in Schedule
5.3(f) to serve as the primary contact person during the period           prior to
the Closing for the Buyer on all matters related to compliance with
          Environmental Laws.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)        Effective
at the Closing, the Company and the Additional Sellers hereby           constitute and
appoint Buyers the true and lawful attorneys (separately and           jointly) of the
Company and the Additional Sellers, with full power of           substitution, in the
name of the Company, the Additional Sellers or Buyers, but           on behalf of and for
the benefit of Buyers and at Buyers cost and expense:           (i) to demand
and receive from time to time any and all the Acquired Assets           and to make
endorsements and give receipts and releases for and with respect to           the same
and any part thereof; (ii) to institute, prosecute and settle any           and all
actions or proceedings that Buyers may deem proper in order to collect,           assert
or enforce any claim, right or title of any kind in or to the Acquired           Assets;
(iii) to defend or settle any or all actions or proceedings with           respect
to any of the Acquired Assets (other than actions or proceedings which           the
Company acknowledges and agrees in a written instrument signed by the           Company
and delivered to Buyers constitute Excluded Liabilities); and           (iv) to do
all such acts and things in relation to the matters set forth in           the preceding
clauses (i) through (iii) as Buyers shall deem necessary or           desirable. The
Company and the Additional Sellers hereby acknowledge that the           appointment
hereby made and the powers hereby granted are coupled with an           interest and are
not and shall not be revocable by it in any manner or for any           reason. The
Company and the Additional Sellers shall deliver to Buyers at the           Closing an
acknowledged power of attorney to the foregoing effect executed by           the Company.
Without limiting the foregoing, in the event that the Company or           the Additional
Sellers receive, at any time after the Closing, any payments           related to the
Business (including without limitation from any customer or under           any
Contract), the Company or the Additional Seller, as the case may be, shall
          promptly transfer such payment to the Buyer (or any Buyer Affiliate designated
          by Buyer). In the event that Buyer or any of its Affiliates receive, at any
time           after the Closing, any payments related solely to an Excluded Asset and
not to           the Business, the Buyer or any such Buyer Affiliate, as the case may be,
shall           promptly transfer such payment to the Company.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (h)        In
the event that during the period of 24 months following the Closing, any of           the
Buyers discover any Contract, Software, Copyright, Trademark or other item           of
Intellectual Property or other asset owned by the Company or an Additional
          Seller as of the Closing and used in conducting the Business prior to Closing
          (an Additional Asset), which is not included in the Acquired
          Assets or the Transferred Intellectual Property, then Buyers may request the
          Company or such Additional Seller in writing to license or transfer such
          Additional Asset, as applicable under this Section, to Buyers in accordance
with           the provisions hereunder, as if such item had been identified as an
Acquired           Asset or Transferred Intellectual Property under this Agreement, for
no           additional consideration. As soon as practicable after receipt by the
Company,           or such Additional Seller, from the Buyers of such request as
aforesaid, the           Company, or such Additional Seller, shall provide written
confirmation (unless           the Company, or such Additional Seller, in good faith
believes that such           Additional Asset should not be so treated) and, such item
shall be deemed to           have been transferred or licensed as described in this
Section. If the Company           or any Additional Seller so discovers any such
Additional Asset, it shall notify           Buyers and, at Buyers written request,
the Company or such Additional           Seller shall be deemed to have licensed or
transferred such Additional Asset to           Buyers in accordance with the terms of
this Section.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)        Without
limiting the foregoing, from and after the Closing Date, the Company and           the
Additional Sellers shall (at its own expense) use commercially reasonable
          efforts to do all things necessary, proper or advisable under applicable Laws,
          including signing and delivery any documents and instruments, as reasonably
          requested by the Buyers to put the Buyers in effective and registered
          possession, ownership and control of the Acquired Assets. No party nor any of
          its subsidiaries shall take any action that is intended to have the effect of,
          or is reasonably expected to have the effect of, delaying, impairing or
impeding           the receipt of any required approvals or the satisfaction of any
condition in ARTICLE 6.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (j)        Without
limiting the foregoing, from and after the Closing, the Buyer shall           provide the
Company with commercially reasonable assistance, cooperation, access           to
personnel and information (at the expense of the requesting party) as
          reasonably requested by the Company in order to comply with any applicable Law
          or to defend against any claim that constitutes an Excluded Liability. Any
          information obtained under this Section 5.3(j) will be kept
          confidential as contemplated by Section 5.6 hereof, except as may
          be otherwise necessary in connection with any filing with any Governmental
          Authority pursuant to applicable Law.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (k)        The
Company shall use its best efforts, prior to the Closing, register any and           all
data bases required to be registered by it under applicable Law with the
          Israeli Registrar of Data Bases.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (l)        Anything
contained in this Agreement to the contrary notwithstanding, none of           the
parties to this Agreement or their Affiliates will be required to commence
          litigation or divest or hold separate any business or assets or limit or
          restrict its rights or ability to engage in any business (other than pursuant
to Section 5.5) in connection with the consummation of the
          Transaction.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.4
Non-Solicitation of Employees. For a period of two years from and after the
Closing Date, without the prior written consent of the Buyer, the Company and its
Controlled Affiliates will not solicit, hire or retain as an employee, independent
contractor or consultant, any person employed by an Acquired Company on the date hereof
or on the Closing Date and will not, and will cause its Controlled Affiliates not to,
during such period, induce or attempt to induce any such employee to terminate his or her
employment with an Acquired Company or the Buyers by resignation, retirement or
otherwise. The term solicit, hire or retain shall not be deemed to include
generalized searches for employees through media advertisements that are not focused on
individuals that are employed by the Buyers or any of their Affiliates or successors.

5.5
Non-Compete.

| | (a)        For
a period of three years after the Closing Date, the Company and its           Controlled
Affiliates will not, directly or indirectly (on their own behalf or           in the
service or on behalf of others), without the written consent of the           Buyer,
enter into, engage in, manage, operate, control, invest or acquire any           interest
in, or otherwise engage or participate in, or own any beneficial           interest in,
any business engaged directly or indirectly in the Business,           wherever located.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        The
Buyers and the Company agree that, if any provision of this Section 5.5 should
be adjudicated to be invalid or           unenforceable, such provision shall be deemed
deleted herefrom with respect, and           only with respect, to the operation of such
provision in the particular           jurisdiction in which such adjudication was made;
provided, however, that to the extent any such provision may be made valid
and           enforceable in such jurisdiction by limitations on the scope of the
activities,           geographical area or time period covered, the Buyers and the
Company agree that           such provision instead shall be deemed limited to the
extent, and only to the           extent, necessary to make such provision enforceable to
the fullest extent           permissible under the Laws and public policies applied in
such jurisdiction.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)        The
covenants contained in this Section 5.5 shall be           construed and
enforced independently of any other provision of this Agreement or           any other
understanding or agreement between the Buyers and the Company, and the
          existence of any claim or cause of action of the Company against the Buyers, of
          whatever nature, shall not constitute a defense to the enforcement against the
          Company of the covenants contained in this Section 5.5.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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5.6
Confidential Information.

| | (a)        From
and after the Closing Date, to the maximum extent permitted by applicable           Law,
all technical, marketing and other information relating to or included in           the
Acquired Assets, the Business or the Business Information shall at all times           be
and remain the sole and exclusive property of the Buyers, and the Buyers may
          freely use, disclose, transfer, sell or assign such information. At all times
          after the Closing Date, the Company and its directors, officers, employees,
          agents and Representatives shall maintain in strictest confidence, and shall
not           disclose to third parties or use for their benefit or for the benefit of
any           third party, any and all non public information concerning the Buyers, the
          Acquired Assets, the Business and the Business Information, except as may be
          required by Law.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        In
the event that the Company, or any of its Affiliates or Representatives are
          required by Law to disclose any such information, the Company will promptly
          notify the Buyers in writing, to the extent possible under the circumstances
          pursuant to Law, so that the Buyers may seek a protective order or other motion
          to prevent or limit the production or disclosure of such information. If such
          motion has been denied, has not been promptly prosecuted or is pending and
          unresolved at the time disclosure of such information is required by Law, then
          the Person required to disclose such information may disclose only such portion
          of such information which (i) based on advice of such Persons outside
          legal counsel is required by Law to be disclosed (provided that the Person
          required to disclose such information will use all reasonable efforts to
          preserve the confidentiality of the remainder of such information) or (ii) the
          Buyer consents in writing to having disclosed. Such Person will not, and will
          not permit any of its Affiliates or its or their Representatives to, oppose any
          motion for confidentiality brought by the Buyer or any Acquired Company. Such
          Person will continue to be bound by its obligations pursuant to this Section 5.6 for
any information that is not required to be           disclosed, or that has been afforded
protective treatment, pursuant to such           motion.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)        Without
limitation of the foregoing, the NDA shall continue to be in full force           and
effect at any time after the date hereof.
| | --------------------------------------------------------------------------------------------------------------------------------------------------

5.7
Notification of Certain Matters. Between the date of this Agreement and the
earlier of the Closing or termination of this Agreement, Buyers, on the one hand, and the
Company, on the other hand, shall give prompt notice to the other of: (a) the occurrence
or non-occurrence of any event, the occurrence or non-occurrence of which is likely to
cause any representation or warranty of such party contained in this Agreement to be
untrue or inaccurate at or prior to the Closing, and (b) any failure of such party to
comply with or satisfy any covenant, condition or agreement to be complied with or
satisfied by it hereunder. Notwithstanding anything in the immediately preceding sentence
to the contrary, the delivery of any notice pursuant to this Section 5.7 shall
not (i) limit or otherwise affect any remedies available to the party receiving such
notice or (ii) constitute an acknowledgment or admission of a breach of this
Agreement. No disclosure by any party pursuant to this Section 5.7shall be
deemed to amend or supplement the Company Disclosure Schedule or prevent or cure any
misrepresentation, breach of warranty or breach of covenant.

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5.8
Public Announcements. Except for the joint announcement of the execution and
delivery of this Agreement, the timing and content of which have been mutually agreed by
the parties hereto, no party hereto shall issue any press release or otherwise make any
public announcement with respect to this Agreement, the Transaction or the other
transactions contemplated hereby without first consulting with the Buyer and the Company
and providing such party with reasonable opportunity to review and comment upon such
press release or public announcement. Notwithstanding the foregoing, if such an
announcement is required by applicable Law or any listing agreement with a national
securities exchange or quotation system (including Nasdaq or the Tel Aviv Stock Exchange)
the party required to make such announcement shall (to the extent feasible under the
circumstances) (i) provide notice to and a copy of such as promptly as practicable in
advance of such announcement and, use all reasonable efforts to consult with the other
party and take the views of the other party with respect to such announcement into
account prior to making such announcement.

5.9
Exclusive Dealings. Between the date hereof and the earlier of the Closing and the
termination of this Agreement, the Company shall not (and the Company shall use
reasonable efforts to cause its Representatives not to), directly or indirectly, take any
of the following actions with any party other than the Buyers and their designees: (i) solicit,
knowingly encourage, initiate or participate in any negotiations or discussions with
respect to, any offer or proposal to acquire or license all or substantially all, or a
significant portion, of Companys business, technologies or properties or any of
Companys equity whether by merger, purchase of assets, equity purchase (including
convertible securities), license, tender offer or otherwise (including any option or
right with respect to any of the foregoing), or enter into any agreement providing for,
or effect, any such transaction, (ii) disclose any information not customarily
disclosed in the ordinary course of business to any person concerning Companys
business, technologies or properties or afford to any person or entity including, but not
limited to, financing parties (other than Bank Hapoalim B.M. and Bank Discount, in
connection with existing requirements), access to its properties, books or records, (iii) assist
or cooperate with any person to (x) make any proposal to purchase all or any portion of
Companys equity or (y) license all or any material portion of Companys
assets, or (iv) enter into any agreement or arrangement with any person providing for the
acquisition or licensing of all or any significant portion of Company (whether by way of
merger, purchase of assets, equity purchase, license, tender offer or otherwise). In the
event that prior to the Termination Date, the Company shall receive, or shall become
aware that any of their respective Representatives has received, any offer or proposal,
directly or indirectly, of the type referred to in clause (i) or (iii) above, or any
request for disclosure or access pursuant to clause (ii) above, Company shall notify
the Buyer of such offer or proposal, within twenty-four hours thereof, and will cooperate
with the Buyer by furnishing any information the Buyer may reasonably request with
respect thereto. The Company agrees to immediately terminate any current discussions with
third parties with respect to any of the foregoing and each represents that it has the
right to so terminate any such discussions. Without limiting the foregoing, it is
understood that any violation of the restrictions set forth above by any Representative
of the Company, shall be deemed to be a breach of this Agreement by the Company.

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5.10
Employee Matters.

| | (a)        The
Company shall provide such assistance to Buyers in the solicitation and           hiring
of the Business Employees, including but not limited to, the Israeli           Company
Employees and the Business Employees of the Additional Sellers (the           Foreign
Company Employees), as Buyers shall reasonably request.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        Prior
to the Closing Date and subject to Buyers receiving proper evidence that           each
such employee has a legal right to work in his or her country of current
          employment, each Israeli Company Employee and Foreign Company Employee listed
in Section 3.15(a) of the Company Disclosure Scheduleshall be given an
          Offer Letter by Buyers. Each such Offer Letter will (a) be subject to and
          in compliance with Buyers standard human resources policies and
procedures           in the relevant country, (b) offer employment in a manner that
preserves           the tenure such Business Employee accrued during his or her term of
employment           by the Company (or Company Subsidiary) for purposes of determining
any benefits           to be received by such Business Employee to the extent that
service or length of           employment is an applicable factor for determining
benefits under any benefit           plan of the Buyers, (c) provide that the offer
of employment will be           conditional on the completion of the transactions
contemplated by this Agreement           and that such offer of employment will be
effective as of the Closing Date, and           (d) provide for terms that, taken as a
whole, are not less favorable than the           terms of the relevant Business Employees
current terms of employment           disclosed to Buyer in this Agreement or the
schedules attached hereto.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)        The
Company shall pay such Continuing Israeli Employees and Continuing Foreign
          Employees all benefits, that such Continuing Israeli Employees and Continuing
          Foreign Employees may be eligible to receive under an Employment Agreement, a
          Company Benefit Plan or applicable Law, including, without limitation, all
          wages, bonuses, commissions, pay for other compensated absences and other
          remuneration (including mandatory or discretionary benefits) due to such
          Continuing Israeli Employees and Continuing Foreign Employees as of the close
of           business on the Closing Date, and shall further pay any related payroll
          deductions (such as employee benefit plan contributions and employment Taxes)
          with respect thereto, regardless of whether such amounts have been accrued on
          the books of the Company at the close of business on the Closing Date, but
          excluding such payments which are Assumed Liabilities and the funds for which
          will be transferred to Buyers at the Closing.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)        Prior
to the Closing Date, the Company shall (i) provide the Buyer with an           account of
all benefits accrued by the Continuing Employees as of the Closing           Date and
(ii) provide the Buyer with all books and records relating to           contributions
made by the Company on behalf of the Continuing Employees to any           Company
Benefit Plans.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)        At
the Closing, the Company shall assign and transfer to Buyers all its rights           in
all such Company Benefit Plans with respect to the relevant Continuing           Israeli
Employees and Foreign Company Employees, and such Company Benefit Plans           shall
be deemed Acquired Assets hereunder. Without derogating from the other
          provisions of this Section 5.10, at the Closing, the Company
          shall cash out and redeem any vacation days accumulated as of the Closing of
any           Continuing Employees in excess of vacation days that any such Continuing
          Employee is eligible for pursuant to his or her Employment Agreement in 1 year
          of employment, and the Continuing Employees will be permitted to carry
over           any remaining vacation balance outstanding as of the Closing under the
          Companys (or Company Subsidiarys) vacation programs (subject to any
          right that Buyer may have for redeeming and cashing out any additional accrued
          vacation).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (f)        The
Company shall be solely responsible for (A) claims of Continuing Employees           and
their eligible beneficiaries and dependents for workers compensation and
          unemployment compensation and claims under Company Benefit Plans that are
          incurred before the Closing Date and (B) claims relating to COBRA coverage, or
          similar statutory requirements in non-U.S. jurisdictions, attributable to
          qualifying events occurring on or before the Closing Date with
          respect to any Continuing Employees and their eligible beneficiaries and
          dependents. Buyers shall be solely responsible for (A) claims of Continuing
          Employees and their eligible beneficiaries and dependents for workers
          compensation and unemployment compensation and claims under the Acquired
          Companys and Buyers welfare plans that are incurred on or after
          Closing Date and (B) claims relating to COBRA coverage, or similar statutory
          requirements in non-U.S. jurisdictions, attributable to qualifying
          events occurring on or after the Closing Date with respect to Continuing
          Employees and their beneficiaries and dependents.  The Buyers          assumption
of an Assumed Liability shall not be construed as indicating an           obligation to
maintain a particular benefit program or to pay a benefit in           a particular
form where such an obligation is not otherwise required by Law and           except as
specifically provided for herein, nothing in this Agreement shall be           construed
to require Buyers to continue any Company Benefit Plan or Employment           Agreement
or to prevent amendment, modification or termination of the current           terms of
employment of any Continuing Employee after the Closing.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)        Except
to the extent specifically required by Law, Buyers shall be under no
          obligation to continue to maintain any Company Benefit Plan or other
          employment-related policy, program or practice of any Company Subsidiary or,
          except with respect to Continuing Israeli Employees and to Continuing Foreign
          Employees, to recognize a Continuing Business Employees years of service
          with any Company Subsidiary for purposes of any employee benefit program
          maintained by any Buyer. For the avoidance of doubt, and except as provided in
Sections 3.15(a) or 3.15(g) of the Company Disclosure           Schedule, Buyers
shall grant Continuing Employees of Scitex Vision America           Inc. credit for prior
service with Scitex Vision America Inc. only for purposes           of determining the
rate of vacation accrual under Buyers local U.S.           vacation program.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h)        Effective
as of no later than the day immediately preceding the Closing Date,           Scitex
Vision America Inc. shall terminate its group severance plans or policies           and
each of Acquired Companies and any Company ERISA Affiliate shall terminate           any
and all Company Benefit Plans intended to include a Code Section 401(k)
          arrangement (unless Buyer provides written notice to Company that such Company
          Benefit Plans shall not be terminated). Unless Buyer provides such written
          notice to Company, no later than three business days prior to the Closing Date,
          Company shall provide Buyer with evidence that such Company Benefit Plan(s)
have           been terminated (effective no later than the day immediately preceding the
          Closing Date).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (i)        Without
limitation to the foregoing, in the event that any Continuing Employee           ceases
to be employed by the Buyers after the Closing Date, the Buyers shall be           solely
responsible for any severance or other payments due to the employee as a           result
of such termination of employment.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.11
Transition Planning; Transition. During the period between the signing of this
Agreement and the earlier of the Closing or termination of this Agreement, the Company
and Buyers shall cooperate with one another in creating joint plans for the transition of
the Business and the Acquired Assets from the Company to Buyers at and after the Closing.
The Company shall not take any action that is intended to have the effect of discouraging
any lessor, licensor, user, customer, supplier, or other business associate of the
Business from maintaining the same business relationship with Buyers after the Closing as
it maintained with the Acquired Companies prior to the Closing. Following the Closing,
the Company shall use reasonable efforts to refer all user and customer inquiries
relating to the Business to Buyers.

5.12
Confidential Information known to Continuing Employees. The parties agree that
confidential information of the Company related to the Business and known to the
Continuing Employees is included in the Acquired Assets under this Agreement.
Accordingly, to the extent a Continuing Employee hired by Buyers would, as a result of an
employment or other agreement between the Company and that Continuing Employee, be
restricted from disclosing confidential information to Buyers or from using information
on Buyers behalf or otherwise in connection with the Continuing Employees
employment by Buyers, the Company agrees to, and hereby does waive, in favor of Buyers,
any right that it may have to enforce such restrictions and consents to Buyers use
and disclosure of such information for its own benefit and on its own behalf, without
restriction.

5.13
Knowledge of Buyers. Any due diligence review, audit or other investigation or
inquiry undertaken or performed by or on behalf of Buyers shall not limit, qualify,
modify or amend the representations, warranties or covenants of, or indemnities by, the
Company made or undertaken pursuant to this Agreement, irrespective of the knowledge and
information received (or which should have been received) therefrom by Buyers.

5.14
Transfer Tax and Stamp Tax. Notwithstanding anything to the contrary herein, the
Company shall be liable for, and hereby agrees to pay, any and all Taxes relating to any
stamp tax due and payable by the Company or any Company Subsidiary, whether or not shown
on any Tax Return, or any stamp tax claimed to be due and reasonably sought, by any
Governmental Authority for any period (or portion of any period), or any actions taken or
contracts executed, up to and including the Closing Date. Notwithstanding the above, each
of the Company and the Buyer (or Buyer shall cause Buyers Affiliate to) shall share
equally, in any Transfer Taxes, including without limitation, any stamp tax imposed by
the State of Israel or any other foreign Governmental Authority, in connection with the
execution of this Agreement or any Transaction Document.

5.15
Purchase Price Allocation. The Buyer, the Company and Standard & Poors
shall work together so as to allocate the purchase price among the Acquired Assets by and
as of the Closing Date. In the event of a disagreement between the Buyer and the Company
as to any portion of such allocation or valuation which cannot be amicably resolved,
Standard &Poors shall have the final determination with respect thereto, and
Buyer and Company agree to be bound by such determination. The Buyer shall provide the
Company promptly following the receipt thereof with (i) copies of all documentation
delivered by Standard & Poors to the Buyer used or produced in the preparation
of such valuation and allocation, subject to obtaining the approval of Standard & Poors,
and (ii) the final report of Standard & Poors. The parties shall use
commercially reasonable efforts to have the report of Standard & Poors to be
delivered no less than 14 days prior to the Closing.

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5.16
Change of Name. From and after the Closing, the Company shall immediately cease
using the Trademarks, the trade-name and Domain Name included in the Transferred
Intellectual Property, and shall, within 180 days as of the Closing, cease to do business
under a corporate name or trade name that incorporates such Trademarks or trade names or
any marks or names substantially similar or confusingly similar thereto provided that the
Company shall, within 30 days as of the Closing, make all such filings required in order
to effect all the above covenants in this Section. Buyers shall be entitled to take all
steps necessary for the removal of the name of the Company from any Register of Record of
Trademark registered users in any office or agency of any government or organization, and
the Company will render any assistance required by the Buyers in connection with such
removal.

# ARTICLE 6. CONDITIONS TO
CLOSING

6.1
Conditions to Obligations of Each Party to Effect the Closing. The respective
obligations of each party to this Agreement to effect the Transaction shall be subject to
the satisfaction at or prior to the Closing Date of the following conditions, any of
which may be waived, in writing, by mutual agreement of Buyer and the Company:

| | (a)        No
Order; Antitrust Approvals. No Governmental Authority shall have           enacted,
issued, promulgated, enforced or entered any statute, rule, regulation,
          executive order, decree, injunction or other order (whether temporary,
          preliminary or permanent) which is in effect and which has the effect of making
          the Transaction illegal or otherwise prohibiting consummation of the
          Transaction. All material approvals and waiting periods under applicable
          antitrust or merger regulation laws, if any, required to be obtained or to have
          expired, as the case may be, prior to the Transaction in connection with the
          transactions contemplated hereby shall have been obtained or expired, as the
          case may be.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        Governmental
Authority Approvals. All Governmental Authority approvals           required for the
consummation of the Transaction shall have been obtained           including, without
limitation, the approvals of the OCS, the Investment Center           and, if applicable,
the Israeli Commissioner of Restrictive Trade Practices.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6.2
Conditions to Obligations of the Buyers. The obligations of the Buyers to effect
the Transaction are subject to the satisfaction or waiver by the Buyers at or prior to
the Closing Date of each of the following conditions:

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| | (a)        Representations
and Warranties. (i) The representations and warranties of           the Company set
forth in Sections 3.8, 3.9, 3.10, and           3.12 are true and correct in all material
respects on and as of the           Closing, unless such representation is not true on
and as of the Closing due to           an inaccuracy as to which the Company has notified
the Buyer in writing that           such matter will be treated as an Excluded Liability,
and (ii) all other           representations and warranties of the Company set forth in
ARTICLE           3 shall be true and correct in all respects on and as of the
Closing, except           where the failure to be so true and correct would not,
individually or in the           aggregate, have a Material Adverse Effect, (all of the
above, other than those           representations and warranties which were qualified by
terms such as           material, materially or Material
Adverse           Effect which representations and warranties as so qualified shall
be true           and correct in all respects on and as of the Closing and except that
any           representation and warranty given as of a specific date need be true only
as of           such date).
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        Performance
of Obligations of the Company. Each and all of the covenants           and agreements
of the Company and the Additional Sellers to be performed or           complied with
pursuant to the Transaction Documents on or prior to the Closing           Date shall
have been fully performed and complied with in all material respects,           and the
Company shall have delivered to the Buyer a certificate signed by an           officer of
the Company confirming the foregoing as of the Closing Date.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)        Litigation,
Etc. No Action shall have been threatened in writing,           instituted or pending
(i) which is reasonably likely (A) to make illegal, or to           delay or otherwise
directly or indirectly restrain or prohibit, the consummation           of the
Transaction or to result in material damages in connection with the
          Transaction, (B) to prohibit ownership or operation by the Buyers or any
          Acquired Company of all or a portion of the Business or Acquired Assets or all
          or a portion of the Business or Acquired Assets of the Buyers or any of their
          Affiliates or to compel the Buyers or the Acquired Companies to dispose of or
          hold separately the Business or Acquired Assets to be sold, conveyed,
          transferred, assigned and delivered hereunder or the Business or Acquired
Assets           or all or a portion of the business or assets of the Buyers or any of
their           Affiliates as a result of the Transaction or (C) to impose limitations on
the           ability of the Buyers or any of their Affiliates effectively to exercise
full           rights of ownership of the Business and the Acquired Assets to be sold,
          conveyed, transferred, assigned and delivered hereunder or (ii) which
          otherwise has had a Material Adverse Effect.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)        No
Material Adverse Change. There shall not exist any condition,           circumstance
or state of facts, and there shall not have been any event,           occurrence, change,
development or circumstance, which has had or will have a           Material Adverse
Effect.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)        Closing
Deliverables. The Buyers shall have received all closing           deliverables as
set forth in Section 2.4 in form and substance           acceptable to the Buyers.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)        Intercompany
Indebtedness. No Intercompany Indebtedness (other than           Indebtedness owed to
or by the Company or an Additional Seller, which is neither           an Acquired Asset
nor an Assumed Liability) shall exist as of the Closing. Any           Indebtedness as of
the Closing that is payable to the Company or any of the           Additional Sellers by
any of the Company Subsidiaries (other than the Additional           Sellers) shall be
included in the Acquired Assets.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (g)        Trademark
Rights. Parent shall have granted Buyer a perpetual license to           certain
trademarks, in accordance with the terms set forth in and the form of           agreement
attached hereto as Schedule 6.2(g), which agreement           shall be in full
force and effect on and as of the Closing.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h)        New
Employment Arrangements. At least 75% of the employees of the           Acquired
Companies named in Schedule 6.2(h) (the           Key Employees),
and (i) seventy-five percent (75%) of all           Administration (finance, IT, HR)
Israeli Company Employees and Foreign Company           Employees, (ii) seventy-five
percent (75%) of all Operations Israeli Company           Employees and Foreign Company
Employees, (iii) seventy-five percent (75%) of all           Marketing Israeli Company
Employees and Foreign Company Employees, and (iv)           seventy-five percent (75%) of
all R&D Israeli Company Employees and Foreign           Company Employees, shall have
entered into employment arrangements with Buyers           pursuant to their execution of
an Offer Letter complying with Section 5.10(b)(d)           which indicates that,
conditioned upon the Closing, such employee agrees to be           an employee of Buyers
after the Closing, and shall be employees of the Company           or the Additional
Sellers immediately prior to the Closing.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)        Release
of Liens. The Company shall deliver a written confirmation and           consent from
each Person listed in the Company Disclosure Schedule as having any           Lien over
any of the Acquired Assets or any Person who as of the Closing Date           shall have
any such Lien, that such Lien has been removed and is no longer in           effect as of
the Closing.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (j)        Termination
of Certain Company Benefit Plans. Buyer shall have           received from
Company evidence that Scitex Vision America Inc. shall terminate           its group
severance plans or policies and any and all Company Benefit Plans           intended to
include a Code Section 401(k) arrangement have been terminated           pursuant to
resolution of Company or Company ERISA Affiliates Board of           Directors (the
form and substance of which shall have been subject to prior           review and
approval of Buyer), effective no later than the day immediately           preceding the
Closing Date.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6.3
Conditions to Obligations of the Company. The obligations of the Company and the
Additional Sellers to effect the Transaction are subject to the satisfaction or waiver by
the Company at or prior to the Closing Date of each of the following conditions:

| | (a)        Representations
and Warranties. The representations and warranties of the           Buyers set forth
in ARTICLE 4 shall be true and correct in all           material respects on and
as of the Closing Date (other than those           representations and warranties which
were qualified by terms such as           material, or materially which
representations and           warranties as so qualified shall be true and correct in all
respects on and as           of the Closing and except that each representation and
warrantee given as of a           specific date need be true only as of such date).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        Performance
of Obligations of the Buyers. Each and all of the covenants           and agreements
of the Buyers to be performed or complied with pursuant to the           Transaction
Documents on or prior to the Closing Date shall have been fully           performed and
complied with in all material respects.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (c)        Closing
Deliverables. The Company shall have received all closing           deliverables as
set forth in Section 2.5(a) in form and substance           acceptable to the
Company.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE 7. TERMINATION

7.1
Termination. This Agreement may be terminated and the Transaction abandoned at any
time prior to the Closing Date:

| | (a)        by
the mutual written agreement of the Buyer and the Company;
| | ------------------------------------------------------------------------

| | (b)        by
written notice by the Buyer to the Company or by the Company to the Buyer, if
          the Closing Date shall not have occurred on or before January 31, 2006 (the
          Termination Date), except that neither the Buyer, on the one
          hand, nor the Company, on the other hand, may so terminate this Agreement if
the           absence of such occurrence is due to the failure of the Buyers, on the one
hand,           or the Company, on the other hand, to be in compliance with its
obligations           under this Agreement.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)        by
written notice by the Buyer to the Company or by the Company to the Buyer, if
          there shall be any Law that makes consummation of the Transaction illegal or
          otherwise prohibited or if any court of competent jurisdiction or other
          Governmental Authority shall have issued an order, decree or ruling or taken
any           other action permanently restraining, enjoining or otherwise prohibiting
the           consummation of the Transaction, and such order, decree, ruling or other
action           shall not be subject to appeal or shall have become final and
unappealable;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)        By
Buyer, if they are not in material breach of their obligations under this
          Agreement and there has been a material breach of any representation, warranty,
          covenant or agreement contained in this Agreement on the part of the Company
and           (i) the Company is not using its commercially reasonable efforts to
cure           such breach, or has not cured such breach within 15 days, after notice of
such           breach has been give by Buyer to the Company; provided, however,
that, no           cure period shall be required for any such breach which by its nature
cannot be           cured and (ii) as a result of such breach, one or more of the
conditions           set forth in Section 6.1 or Section 6.2          would
not be satisfied at or prior to the Closing;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)        By
the Company, if the Company is not in material breach of its obligations           under
this Agreement and there has been a material breach of any representation,
          warranty, covenant or agreement contained in this Agreement on the part of
          Buyers and (i) Buyers are not using their commercially reasonable efforts
          to cure such breach, or has not cured such breach within 15 days, after notice
          of such breach has been give by the Company to Buyer; provided, however,
          that no cure period shall be required for any such breach which by its nature
          cannot be cured and (ii) as a result of such breach, one or more of the
          conditions set forth in Section 6.1 or Section 6.3 would
not be satisfied at or prior to the           Closing;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)        By
Buyer, if there shall have occurred any event or condition of any character
          that has had or is reasonably likely to have a Material Adverse Effect; or
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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7.2
Effect of Termination. In the event of the termination of this Agreement pursuant
to Section 7.1, this Agreement (other than with respect to Section 5.13,
this Section 7.2, and ARTICLE 8, Section 9.4,Section 9.9 and any
related definitional provisions which shall continue in effect) shall thereafter become
void and have no effect, without any liability on the part of any party or its
Representatives in respect thereof, except that nothing herein will relieve any party
from Liability for any willful and material breach of any representation, warranty,
covenant or agreement in this Agreement that occurred prior to the date of termination.

7.3
Amendment. Subject to applicable Law, this Agreement may be amended at any time by
execution of an instrument in writing signed by all parties hereto.

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

# ARTICLE 8. SURVIVAL AND
INDEMNIFICATION

8.1
Survival of Representations and Warranties.  The representations and
warranties of the Company contained in this Agreement, or in any certificate or other
instrument delivered pursuant to this Agreement, shall terminate on the second
anniversary of the Closing Date (the Survival Date); provided, however,
that Buyers rights under Section 8.2(b)(2) hereof and any claim based on
fraud shall survive until the expiration of the applicable statute of limitations. The
representations and warranties of Buyers contained in this Agreement, or in any
certificate or other instrument delivered pursuant to this Agreement, shall terminate at
the Closing.

8.2
Escrow Fund; Indemnification. (a) (a) By virtue of this Agreement and as security
for the indemnity provided for in this Section 8.2, at the Closing, the
Company will be deemed to have received and deposited with the Escrow Agent the Escrow
Amount without any act of the Company, such deposit of the Escrow Amount to constitute an
escrow fund (the Escrow Fund) to be governed by the terms set forth
herein. The Escrow Fund shall be deposited into an interest bearing account and interest
earned thereon will be held and distributed in accordance with this Section 8.2.

| | (b)        Indemnification.
The Company agrees to indemnify and hold Buyers and           their respective officers,
directors, employees and Affiliates (each, an           Indemnified Party and
collectively, the Indemnified Parties) harmless against all claims,
losses, liabilities, damages,           deficiencies, costs and expenses, including
reasonable attorneys fees and           expenses of investigation and defense
(hereinafter individually a Loss and collectively Losses)
paid,           incurred, accrued or sustained by the Indemnified Parties, or any of
them, that           are incident to, arise out of, in connection with, or relate to:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (1)        any
breach or inaccuracy of a representation or warranty of the Company           contained
in this Agreement or in any certificate or other instruments delivered           pursuant
to this Agreement;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2)        any
failure by the Company or an Additional Seller to perform or comply with any
          covenant or other agreement applicable to it contained in this Agreement or in
          any certificate or other instruments delivered pursuant to this Agreement;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3)        any
Excluded Assets and any Excluded Liability (whether absolute, accrued,
          contingent or otherwise) existing prior to or after the Closing or arising out
          of facts or circumstances related to the Excluded Asset or Excluded Liability,
          existing prior to or after the Closing, whether or not such liabilities,
          obligations or claims were known at the time of the Closing and whether or not
          it is ultimately determined that such liabilities are owed by the Company;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4)        any
Liability of the Company or the Company Subsidiaries scheduled in Schedule 1.2(b) hereof
(whether or not referenced in the Company           Disclosure Schedule); or
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (5)        any
Liability of the Company or the Company Subsidiaries scheduled in Schedule 8.3(b) or
in Schedule 8.4(a), subject to           the provisions of Section 8.3 or
Section 8.4, as           applicable.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)        Deemed
Losses. For the purposes of this ARTICLE 8, any           Losses incurred in
connection with the matters listed on Schedule 8.2(c), shall be subject to
indemnification by the           Company in the manner set forth in this Article 8.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)        Basket.
No Indemnified Party may recover any Losses unless and until one           or more Officers
Certificates identifying a Loss or Losses in excess of           $200,000 in the
aggregate (the Basket Amount) has or have           been delivered to
the Escrow Agent, in which case such Indemnified Party shall           be entitled to
recover all Losses so identified to the extent then available in           the Escrow
Fund. Notwithstanding the foregoing, Buyers shall be entitled to           recover for,
and the limitation set forth in the preceding sentence regarding           the Basket
Amount shall not apply as a threshold to, any and all claims or           payments made
with respect to (i) all Losses incurred pursuant to Section 8.2(c) hereof,
or (ii) fraud or knowing or           willful breach or inaccuracy of a
representation or warranty or breach of a           covenant contained herein.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (e)        Escrow
Period. Subject to the following requirements, the Escrow Fund           shall be in
existence immediately following the Closing and shall terminate at           5:00 p.m.,
local time, on the first business day after the thirtieth (30th) day           after the
Survival Date (the Escrow Period); provided that           the Escrow
Period shall not terminate with respect to the aggregate amount of           Losses (the
Withheld Funds) (i) specified in any           Officers
Certificate delivered to the Escrow Agent prior to the           termination of the
Escrow Period and (ii) for which indemnification in full has           not been received
pursuant to this ARTICLE 8 in satisfaction           thereof (such Losses being
referred to as Unsatisfied           Losses). It is agreed between the
parties that a sum of US$1,000,000           of the Escrow Amount shall be dedicated
solely for the payment of any Taxes of           the Company Subsidiaries (other than the
Additional Sellers) due for the period           beginning January 1, 2005 and ending at
the Closing which have not been paid as           of the Closing and which shall be paid
by the Buyers after the Closing (the           Tax Escrow). Buyer
shall use commercially reasonable efforts           to mitigate any Tax Liability of a
Company Subsidiary relating to periods prior           to the Closing, and shall consult
with the Company in good faith prior to           entering into any arrangement or
agreement with any Governmental Authority with           respect to such matter. The Tax
Escrow shall be in existence immediately           following the Closing and shall
terminate on the first anniversary of the           Closing Date (Tax Escrow
Survival Date). In the event that on           the Tax Escrow Survival Date,
any funds shall remain in escrow out of the Tax           Escrow, then such remaining
funds shall be released to the Company promptly           following the Tax Escrow
Survival Date. In the event that the Tax Escrow is not           sufficient to allow for
the payment of all such Taxes, then any such Taxes in           excess of the Tax Escrow
shall be paid as follows: (i) 80% shall be borne by the           Company by way of
release of funds from the Escrow Amount to the Buyer, and (ii)           20% shall be
paid by the Buyer (or a Buyer Affiliate). If the Company, by           written notice to
Buyer and the Escrow Agent within thirty (30) days of the           termination of the
Escrow Period (it being understood that any contest relating           to any Officers
Certificate must be made within thirty (30) days of           delivery of such Officers
Certificate), contests Buyers          determination of the existence or value of
such Losses, the existence or value           of such Losses shall be finally determined
pursuant to the procedures set forth           in Section 8.2(i) hereof.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)        Distribution
upon Termination of Escrow Period. Promptly after the           expiration of the
Escrow Period, the Escrow Agent shall deliver to the Company           any funds
remaining in the Escrow Fund, together with any interest earned           thereon, except
that the Escrow Agent shall retain the Withheld Funds in the           Escrow Fund until
the claim(s) to which they relate are resolved. Subsequently,           Buyer shall
notify the Company and the Escrow Agent promptly after the           resolution of any
impending claim specifying the amount of Losses in connection           therewith for
which no indemnification has been received pursuant to this ARTICLE 8 in
satisfaction thereof. Upon receipt of such notice,           the Escrow Agent will (i) distribute
the respective Withheld Funds to the           Buyer from the Escrow Fund equal to the
amount of such Losses in accordance with           the provisions of Section 8.2(g) hereof
to the extent then           available in the Escrow Fund; provided that the claim to
which such Losses           relate is not being contested pursuant to Section 8.2(h)          hereof
and (ii) promptly thereafter distribute to the Company the remaining
          respective Withheld Funds, together with any interest earned thereon, after
          giving effect to the distribution to Buyer in accordance with clause (i)
          immediately above.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)        Claims
Upon Escrow Fund. Upon receipt by the Escrow Agent at any time on           or before
the termination of the Escrow Period of an Officers Certificate,           the
Escrow Agent shall, subject to the provisions of Section 8.2(h) hereof,
deliver to Buyer, as promptly as           practicable, an amount from the Escrow Fund
equal to such Losses (the           Payment Amount).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h)        Objections
to Claims against the Escrow Fund. At the time of delivery of           any Officers
Certificate to the Escrow Agent, a duplicate copy of such           certificate shall be
delivered to the Company, and for a period of thirty (30)           days after such
delivery, the Escrow Agent shall make no delivery to Buyer of           any Escrow Amount
pursuant to Section 8.2(g) hereof unless           the Escrow Agent shall
have received written authorization from the Company to           make such delivery.
After the expiration of such 30-day period, the Escrow Agent           shall make
delivery of the Payment Amount pursuant to Section 8.2(g); provided that no
such payment or delivery           may be made if the Company shall object in a written
statement to the claim made           in the Officers Certificate, and such
statement shall have been delivered           to the Escrow Agent prior to the expiration
of such 30-day period.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (i)        Resolution
of Conflicts. In case the Company shall object in writing to           any claim or
claims made in any Officers Certificate to recover Losses           from the Escrow
Fund within thirty (30) days after delivery of such           Officers Certificate,
the Company and Buyers shall attempt in good faith           to agree upon the rights of
the respective parties with respect to each of such           claims. If the Company and
Buyer should so agree, a memorandum setting forth           such agreement shall be
prepared and signed by both parties and, in the case of           a claim against the
Escrow Fund, shall be furnished to the Escrow Agent. The           Escrow Agent shall be
entitled to rely on any such memorandum and make           distributions from the Escrow
Fund in accordance with the terms thereof. If,           after a good faith attempt to
agree the Company and the Buyer are unable to           agree on a resolution of the
matter, the parties shall submit the matter to           non-binding mediation which
shall be conducted in Tel Aviv, Israel by a single,           neutral advisor reasonably
acceptable to the Buyer and the Company (the           Advisor). The
costs and expenses of both the mediation and           the Advisor will be shared equally
by the Company and the Buyer. The Advisor           shall be an individual with at least
ten (10) years experience in the mediation           of business disputes. The mediation
shall commence within 30 days after the date           the parties mutually determined in
writing that they were unable to reach           resolution. The Advisor shall establish
a procedure for reaching resolution           which shall at least set forth rules and
process for: (i) the exchange of           documents and short narrative statements
summarizing each partys position,           (ii) any expedited discovery, (iii) the
format for any hearings, meetings or           discussions, and (iv) the period in which
the process will be completed. At the           conclusion of the mediation, the Advisor
shall issue a final written report that           will include his or her findings and
conclusions, as well as recommendations for           resolution. The parties agree to
subsequently review the Advisors final           written report and to meet at
least once within 30 days after the date of the           Advisors final written
report to further attempt to reach good faith           resolution based on this report.
If within 30 days after the date of such first           meeting the parties remain
unable to reach resolution, then they shall be free           to litigate the matter, in
accordance with the provisions of Section           9.9.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (j)        Third-Party
Claims. (A) In the event Buyers become aware of a third-party           claim
relating to allegations of Intellectual Property infringement or           challenging
the rights of the Buyers to Intellectual Property Rights, for which
          indemnification may by sought under this ARTICLE 8, which Buyers
          reasonably believes may result in a Loss that is indemnifiable hereunder,
Buyers           shall notify the Company of such claim, and the Company shall be
entitled, at           its expense, to participate in, but not to determine or conduct,
the defense of           such claim. Delay or failure in so notifying the Company shall
relieve the           Company of its obligations under this ARTICLE 8 only to the
          extent, if at all, that the Company is adversely and materially prejudiced by
          reason of such delay or failure. If there is any such third-party claim that,
if           adversely determined would give rise to a right of recovery for Losses
          hereunder, then any amounts incurred or accrued in defense of such third-party
          claim, regardless of the outcome of such claim, shall be deemed Losses
          hereunder. Buyers shall have the right in their sole discretion to conduct the
          defense of such claim; provided that the Buyer shall not enter into any
          settlement agreement with respect to any such third party claim without
          obtaining the prior consent of the Company, which consent shall not be
          unreasonably withheld. In the event that, notwithstanding the preceding
          sentence, the Buyer shall enter into a settlement agreement without attempting
          to obtain the consent of the Company, or shall enter into a settlement
agreement           from which the Company has reasonably withheld its consent, the Buyer
shall not           be entitled to indemnification hereunder with respect to Losses
suffered by the           Buyer in connection with such third party claim. The Buyer
shall keep the           Company reasonably and promptly informed of material progress
and developments           in those aspects of the matter that relate to the Buyers
claim for           indemnification hereunder and provide the Company with copies of all
relevant           documents and such other information in its possession as may be
requested by           the Company.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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(B)
          In the event Buyers become aware of a third-party claim other than a claim
          relating to allegations of Intellectual Property infringement or challenging
the           rights of the Buyers to Intellectual Property Rights, for which
indemnification           may by sought under this ARTICLE 8, which Buyer
reasonably           believes may result in a Loss that is indemnifiable hereunder,
Buyers shall           notify the Company of such claim. Delay or failure in so notifying
the Company           shall relieve the Company of its obligations under this ARTICLE 8          only
to the extent, if at all, that the Company is adversely and materially
          prejudiced by reason of such delay or failure. The Company may elect, by
          providing the Buyer with written notice to such effect within fourteen (14)
days           of receiving notice from the Buyer, to assume the conduct of any defense
of such           third party claim with counsel chosen by the Company that is reasonable
          acceptable to the Buyer, on the following terms: (i) the Company shall
          acknowledge to the Buyer at such time in writing its full liability for such
          third party claim and agree to indemnify the Indemnified Parties against all
          Losses, without regard to any limitations set forth in this ARTICLE 8and
regardless of whether there are sufficient funds in the Escrow Fund to           cover
the amount of such Losses that may be incurred in connection with           such
third party claim, including, without limitation, costs which an           Indemnified
Party may incur in taking any such action as the Company may           require; and (ii)
the Company shall keep the Buyer reasonably and promptly           informed of the
progress of the third party claim and provide the Buyer with           copies of all
relevant documents and such other information in its possession as           may be
requested by the Buyer. If the Company elects not to defend against,           negotiate,
settle or otherwise deal with any such claim which relates to any           Losses
indemnified against hereunder, the Buyer shall defend against, negotiate,
          settle or otherwise deal with such claim; provided that the Buyer shall not
          enter into any settlement agreement with respect to any such third party claim
          without obtaining the prior consent of the Company, which consent shall not be
          unreasonably withheld. In the event that, notwithstanding the preceding
          sentence, the Buyer shall enter into a settlement agreement without attempting
          to obtain the consent of the Company, or shall enter into a settlement
agreement           from which the Company has reasonably withheld its consent, the Buyer
shall not           be entitled to indemnification hereunder with respect to Losses
suffered by the           Buyer in connection with such third party claim. The foregoing
notwithstanding,           the Buyer shall be entitled to maintain or resume control of
any such third           party claim in the event that it reasonably determines at any
time that the           Company does not have the financial capability (taking into
account the amount           available in the Escrow Fund) to defend such claim and
to fulfill its           indemnification obligation hereunder in respect of such claim;
any such decision           by the Buyer to maintain or assume the defense of
such claim shall not           derogate from the indemnification obligations of the
Company hereunder. If the           Company shall assume the defense of any such third
party claim, the Buyer may           participate, at his or its own expense, in the
defense of such third party           claim; provided, however, that the
Buyer shall be entitled to           participate in any such defense with separate
counsel at the expense of the           Company if (i) so requested by the Company to
participate or (ii) in the           reasonable opinion of counsel to the Buyer a
conflict or potential conflict           exists between the Buyer and the Company that
would make such separate           representation advisable; and provided, further,
that the Company           shall not be required to pay for more than one such counsel
for the Buyer in           connection with any third party claim.

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(C)
          In the event that the Company does not elect to assume the defense of a third
          party claim pursuant to the foregoing clause (B), or in the event that the
Buyer           exercises its right pursuant to the foregoing clause (B) to defend such
third           party claim notwithstanding any election to the contrary by the Company,
then           any amounts incurred or accrued in defense of such third-party claim,
regardless           of the outcome of such claim, shall be deemed Losses hereunder, if
such           third-party claim is such that if adversely determined it would give rise
to a           right of recovery for Losses hereunder. The Company shall be entitled, at
its           expense, to participate in, but not to determine or conduct, the defense of
such           claim. The Buyer shall keep the Company reasonably and promptly informed
of           material progress and developments in those aspects of the matter that
relate to           the Buyers claim for indemnification hereunder and provide the
Company           with copies of all relevant documents and such other information in its
          possession as may be requested by the Company.

(D)
          The parties hereto agree to cooperate fully with each other in connection with
          the defense, negotiation or settlement of any third party claim, including
          providing reasonable access to personnel and information in connection with the
          defense of such claim or to minimize any Losses. Notwithstanding anything in
          this Section 8.2(j) to the contrary, with respect to any attorneys          fees
incurred by an Indemnified Party in the defense of a third party claim,           only
80% of such fees shall be considered Losses hereunder.

| | (k)        Escrow
as the Sole Remedy. Except as set forth in Section 8.2(j)(B) with           respect
to third party claims the defense of which is assumed by the Company,           the
Escrow Fund shall be the sole and exclusive source of satisfaction of any           claim
made by the Indemnified Parties for any Losses resulting from the matters           set
forth in this ARTICLE 8 and the liability of the Company           under this
Agreement in respect thereof to any Indemnified Party shall not           exceed, in the
aggregate, the Escrow Amount; provided, however, that           nothing herein
shall limit any remedy of an Indemnified Party for (i)           fraud or (ii) Buyers rights
under Section 8.2(b)(2) hereof,           and nothing herein shall limit the
liability of the Company for any knowing or           willful breach of any
representation, warranty or covenant if the Transaction           does not close.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (l)        Materiality;
No Right of Contribution. For the purpose of this ARTICLE 8 only, when
determining whether there has been a breach           or inaccuracy of any representation
or warranty of the Company, any           representation or warranty given or made by the
Company that is qualified in           scope as to materiality (including Material
Adverse Effect) shall be deemed to           be made or given without such qualification.
There shall be no right of           contribution from the Buyers with respect to any
Loss claimed by an Indemnified           Party.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (m)        Treatment
of Indemnification Payments. All indemnification payments under           this
Agreement shall be treated by the parties as an adjustment to the Purchase
          Price
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (n)        Net
Losses. Notwithstanding anything to the contrary contained herein,           the
parties acknowledge that (i) any insurance proceeds that are actually           obtained
by the Indemnified Party with respect to Losses, (ii) any Tax benefit           that is
actually realized by the Indemnified Party arising from the facts and
          circumstances giving rise to such Losses and (iii) any recoveries that are
          actually obtained by the Indemnified Party from any third party shall be taken
          into account in calculation of the Losses incurred or suffered by the
          Indemnified Party to the extent the Indemnified Partys Losses could be
          reduced as a result thereof.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (o)        Subrogation.After any indemnification payment is made to the Buyers           pursuant to this Section
8.2, the Company shall, only to the           extent of such payment, be subrogated
to all rights (if any) of the Buyers           against any third party in connection with
the Losses to which such payment           relates. Without limiting the generality of
the preceding sentence, the Buyers,           upon receiving an indemnification payment
pursuant to the preceding sentence           shall execute, upon the written request of
the Company, any instrument           reasonably necessary to evidence such subrogation
rights.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8.3
Buyer Indemnification.

| | (a)        The
Buyer agrees to indemnify and hold the Company harmless against 50% of all
          Losses paid, incurred, accrued or sustained by the Company, that arise out of
or           relate to any of the Excluded Liabilities that are described in Section
          1.2(b)(vii), 1.2(b)(ix) (other than with respect to such           Liabilities
set forth in Schedule 8.3(b)) or 1.2(b)(x),           other than the liabilities
that are set forth in Schedule 1.2(b);           provided however, that Buyers
indemnification obligations hereunder shall           in no event exceed, in the
aggregate, US$1,000,000.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        In
addition to the above, the Buyer agrees to indemnify and hold the Company
          harmless against 33.33% of Losses of up to US$6,000,000 paid, incurred, accrued
          or sustained by the Company, that arise out of or relate to the matter set
forth           in Schedule 8.3(b); provided however, that Buyers
          indemnification obligations under this subsection (b) shall in no event exceed,
          in the aggregate, US$2,000,000, of which the first sum of up to US$1,000,000
          shall be paid by the Buyer in addition to the Purchase Price hereunder, and the
          remaining US$1,000,000 shall be made from the Escrow Funds. In addition to the
          Buyers indemnification obligations, Losses of up to US$5,000,000 that
          arise out of or relate to the matter set forth in Schedule 8.3(b)          and
that are not indemnified by Buyer under this subsection 8.3(b),           shall be made
from the Escrow Fund, by way of release of such amount of Escrow           Funds to the
Company. For the sake of clarity, any Losses that arise out of or           relate to the
matter set forth in Schedule 8.3(b) (excluding the           indemnification
payments by Buyer to Company in accordance with this subsection)           shall be
deemed Excluded Liabilities hereunder.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (c)        For
the avoidance of doubt, (i) Buyers indemnification obligation under
          Section 8.3(a) and the indemnification obligation of up to US$1,000,000
          from the Escrow Funds under Section 8.3(b) shall not be cumulative (i.e.
          the Buyers indemnification obligations from the Escrow Fund shall not
          exceed an aggregate total of US$1,000,000), (ii) Buyers aggregate
          indemnification obligations under this Section 8.3 shall in no
          event exceed, in the aggregate, US$2,000,000, and (iii) the aggregate amount
          that may be released from the Escrow Funds under Section 8.3(b) shall in
          no event exceed, in the aggregate, US$6,000,000 (or such smaller amount, if the
          Escrow Funds contain less than US$6,000,000 not due to be released to the Buyer
          or subject to a conflict as set forth in Section 8.2(i) at such
          time).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)        Except
as specifically set forth in Section 8.3(b), Buyer shall           satisfy its
indemnification obligations hereunder from the Escrow Funds, by way           of release
of such amount of Escrow Funds required for the indemnification           hereunder to
the Company. For the sake of clarity, any indemnification by Buyer           from the
Escrow Funds (and any other release of Escrow Funds to the Company           under Section
8.3(b)) shall be on account of the Purchase Price           and shall not require the
Buyer to pay any additional sums, whether to the           Escrow Fund or otherwise.
Buyer shall use commercially reasonable efforts to           mitigate any Liability set
forth in this Section 8.3above and           specifically agrees that with
respect to the Liability set forth in Schedule           8.3(b), not to agree to
any settlement related to such Liability           without the consent of the Company
(not to be unreasonably withheld); provided           that Buyer may settle any such
claim if Buyer agrees to not use the Escrow Funds           to pay the respective
settlement and the settlement does not otherwise create           any Liability on the
Company. The Company hereby agrees and acknowledges that it           will participate in
50% of any legal and consulting expenses of the Buyer           incurred at any time
after the Closing in connection with the settlement of the           Liability set forth
in Schedule 8.3(b) (or any other process for           solving such Liability),
which participation shall not exceed US$500,000 and           which shall be a Deemed
Loss under Section 8.2(c) and paid from the           Escrow Fund.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)        The
Buyers obligations under this Section 8.3 shall           terminate on the
Survival Date.
| | ---------------------------------------------------------------------------------------------------------

8.4
Indemnification in connection with the Additional Sellers.

| | (a)        The
parties agree that any Loss paid, incurred, accrued or sustained by the           Buyers,
that arise out of or relate to the matter set forth in Schedule           8.4(a) (which
are deemed Assumed Liabilities hereunder) shall be allocated           between the Buyer
and the Company as follows: (i) 80% shall be borne by the           Company by way of
release of funds from the Escrow Amount to the Buyer, and (ii)           20% shall be
paid by the Buyer (or a Buyer Affiliate), provided however, that           the Companys
obligations under this Section 8.4 shall not           exceed the then-outstanding
Escrow Amount, and Buyers obligations under           this Section 8.4 shall
not exceed US$2,000,000 (unless the Losses           thereunder exceed the
then-outstanding Escrow Amount, in which case Buyers           obligations
hereunder shall equal the amount of such Losses in excess of the           Escrow
Amount).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (b)        The
obligations of the parties under this Section 8.4 shall           terminate on the
Survival Date.
| | ----------------------------------------------------------------------------------------------------------------

# ARTICLE 9. GENERAL
PROVISIONS

9.1
Assignment. No party to this Agreement will convey, assign or otherwise transfer
any of its rights or obligations under any Transaction Document without the prior written
consent of the Company (in the case of an assignment by the Buyers) or of the Buyers (in
the case of an assignment by the Company), except that the Buyers may (without obtaining
any consent) assign any of their respective rights, interests or obligations under any
Transaction Documents, in whole or in part, to any Affiliate of the Buyers or to any
successor to all or any portion of its business. No assignment of this Agreement will
relieve the assigning party of its obligations hereunder.

9.2
Parties in Interest. This Agreement is binding upon and is for the benefit of the
parties hereto and their respective successors and permitted assigns. This Agreement is
not made for the benefit of any Person not a party hereto, and no Person other than the
parties hereto or their respective successors and permitted assigns will acquire or have
any benefit, right, remedy or claim under or by reason of this Agreement, except that the
Indemnified Parties will be entitled to the rights to indemnification provided to the
Indemnified Parties hereunder.

9.3
Waiver; Remedies. No failure or delay on the part of the Buyers or the Company in
exercising any right, power or privilege under any Transaction Document will operate as a
waiver thereof, nor will any waiver on the part of the Buyers or the Company of any
right, power or privilege under any Transaction Document operate as a waiver of any other
right, power or privilege under any Transaction Document, nor will any single or partial
exercise of any right, power or privilege thereunder preclude any other or further
exercise thereof or the exercise of any other right, power or privilege under any
Transaction Document.

9.4
Fees and Expenses. Each of the Parties hereto shall bear the expenses incurred by
it relating to the transactions contemplated by this Agreement, including without
limitation fees and expenses of counsel, subject to such other arrangements as may be
expressly set forth in the other documents executed or to be executed in connection with
this Agreement. Notwithstanding the foregoing, fees and expenses relating to joint
filings will be shared equally by the parties hereto.

9.5
Notices. All notices, requests, claims, demands and other communications required
or permitted to be given under any Transaction Document shall be in writing and will be
delivered by hand or telecopied or sent, postage prepaid, by registered, certified or
express mail or reputable overnight courier service and will be deemed given when so
delivered by hand or telecopied, or three business days after being so mailed (one
business day in the case of overnight courier service). All such notices, requests,
claims, demands and other communications will be addressed as set forth below, or
pursuant to such other instructions as may be designated in writing by the party to
receive such notice in accordance with this Section 9.5:

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If to the Buyers:

| | Hewlett-Packard
Company Inkjet Commercial Division Avda.Graells, 501 08174-Sant Cugat del Valles
Barcelona, Spain
| | -----------------------------------------------------------------------------------------------------------------

| | Attention:
Enrique Lores, Vice President & General Manager Fax: 34 93 582 2510
| | ------------------------------------------------------------------------------

| | with
copies to (which shall not constitute notice):
| | ---------------------------------------------------

| | Hewlett-Packard
Company                                 3000 Hanover Street
                                Palo Alto, CA 94304
                                Attention:  General Counsel
                                Fax:  (650) 857-2012
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Hewlett-Packard
Company                                 3000 Hanover Street
                                Palo Alto, CA 94304
                                Attention:  Senior Vice President, Strategy and Corporate
Development                                 Fax:  (650) 852-8378
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | with
a copy to (which shall not constitute notice):
| | ---------------------------------------------------

| | Meitar
Liquornik Geva & Leshem Brandwein                                 16 Abba Hillel Silver
Road                                 Ramat-Gan 52506
                                Israel    Attention:
 Clifford M. J. Felig                         Telecopy:   972-3-610-3111
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|If to the Company: | Scitex Vision Ltd.  5c Hatzoran
Street,  P.O. Box 8743
 Netanya Industrial Park,
 Netanya, 42505 Israel
Attention: Chief Financial Officer
Fax: 972-9-982-4778
|------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | And
Following the Closing:  Scitex Vision Ltd.
 C/o: Scitex Corporation Ltd.
 3, Azrieli Center, Triangular Tower
 43rdFloor Tel Aviv
67023, Israel Attention: Chief Financial Officer
Fax: 972-3-607-5884
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | Herzog,
Fox & Neeman  Asia House  4
Weizmann Street  Tel Aviv 64239, Israel
Attention: Ehud Sol                   Chaim FriedlandFax: 972-3-696-6464
| | ----------------------------------------------------------------------------------------------------------------------------------------------------

9.6
Captions; Currency. The article and section captions herein and the table of
contents hereto are for convenience of reference only, do not constitute part of this
Agreement and will not be deemed to limit or otherwise affect any of the provisions
hereof. Unless otherwise specified, all references herein to numbered articles and
sections are to articles and sections of this Agreement and all references herein to
exhibits or schedules are to exhibits or schedules to this Agreement. Unless otherwise
specified, all references contained in any Transaction Document, in any exhibit or
schedule referred to therein or in any instrument or document delivered pursuant thereto
to dollars or $ shall mean United States Dollars.

9.7
Entire Document. This Agreement and the other Transaction Documents collectively
constitute the entire agreement between the parties with respect to the subject matter
hereof and this Agreement and the other Transaction Documents supersede all prior
negotiations, agreements and understandings of the parties of any nature, whether oral or
written, relating thereto.

9.8
Severability. If any provision of any Transaction Document or the application
thereof to any Person or circumstance is determined by a court of competent jurisdiction
to be invalid, void or unenforceable, the remaining provisions thereof, or the
application of such provision to Persons or circumstances other than those as to which it
has been held invalid or unenforceable, shall remain in full force and effect and shall
in no way be affected, impaired or invalidated thereby.

9.9
Governing Law; Jurisdiction This Agreement shall be governed by and construed in
accordance with the laws of the State of Israel, without giving effect to the principles
thereof relating to conflict of laws, applicable to agreements made and to be performed
within such state. The competent courts of Tel Aviv-Jaffa shall have exclusive
jurisdiction to hear all disputes arising in connection with this Agreement and no other
courts shall have any jurisdiction whatsoever with respect to such disputes.

9.10
Schedules and Exhibits; Disclosure All schedules and exhibits attached hereto are
hereby incorporated in and made a part of this Agreement as if set forth in full herein.
Capitalized terms used in any other Transaction Document or in the schedules or exhibits
hereto or thereto but not otherwise defined therein will have the respective meanings
assigned to such terms in this Agreement.

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9.11
Counterparts. This Agreement may be executed in separate counterparts, each such
counterpart being deemed to be an original instrument, and all such counterparts will
together constitute the same agreement.

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

9.13
Construction; Interpretation. The parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of
intent or interpretation arises, this Agreement shall be construed as if drafted jointly
by the parties and no presumption or burden of proof shall arise favoring or disfavoring
any party by virtue of the authorship of any of the provisions of this Agreement.

9.14
Other Remedies. Except as otherwise provided herein, any and all remedies herein
expressly conferred upon a party will be deemed cumulative with and not exclusive of any
other remedy conferred hereby, or by law or equity upon such party, and the exercise by a
party of any one remedy will not preclude the exercise of any other remedy.

# ARTICLE 10. DEFINITIONS

10.1
Certain Definitions. For purposes of this Agreement, the following terms shall
have the following meanings:

(a)
 Acquired Assets means all of the assets required for the Business,
including without limitation, the following:

| | (1)        the
Transferred Intellectual Property (whether or not included in the Financial
          Statements);
| | -----------------------------------------------------------------------------------------------------------------

| | (2)        the
Business Information;
| | ------------------------------------

| | (3)        all
rights, benefits and privileges under the Acquired Contracts;
| | ----------------------------------------------------------------------------

| | (4)        all
franchises, permits, licenses, agreements, waivers and authorizations from           or
with any Governmental Authority relating to the Business, to the extent
          transferable;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (5)        all
Inventory (whether or not included in the Financial Statements);
| | -------------------------------------------------------------------------------

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| | (6)        all
assets included on the Financial Statements, including, without limitation,           all
prepaid expenses, other than prepaid expenses of directors and officers
          liability insurance;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (7)        all
Fixtures and Equipment (whether or not included in the Financial           Statements);
| | ------------------------------------------------------------------------------------------------------

| | (8)        all
accounts and other receivables of the Company and any of the Company
          Subsidiaries (whether or not included in the Financial Statements); all claims,
          causes of action, choices in action, rights of recovery and rights of set off
          pertaining to or arising out of the Acquired Assets or the Assumed Liabilities;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (9)                     all
assets related to the Business acquired by any of the Acquired Companies
          subsequent to the date hereof;
| | ---------------------------------------------------------------------------------------------------------------------------------------------

| | (10)        all
shares and other equity interests of the Company in all the Acquired           Companies
(other than the Additional Sellers), including, but not limited to, as           set
forth on Schedule 1.1(a);
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (11)        All
of the goodwill associated with the Businessand the Trademarks           included
in the Transferred Intellectual Property;
| | -------------------------------------------------------------------------------------------------------------------------------------------

| | (12)        All
bank accounts of the Company Subsidiaries (other than the Additional           Sellers);
and
| | ------------------------------------------------------------------------------------------------------------

| | (13)        any
and all rights to or arising from any of the foregoing; provided, however,           for
the avoidance of doubt, such rights shall not include any rights that
          constitute or that are derived from an Excluded Asset.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The
term Acquired Assets does not include (i) the shares of Company or the
Additional Sellers, (ii) Intercompany Indebtedness, and (iii) cash, Cash Equivalents and
Restricted Deposits of the Company and the Company Subsidiaries, including those set forth
on the Financial Statements. Cash shall be determined net of amounts necessary to cover
outstanding checks (which are not otherwise stale) that have been mailed or otherwise
delivered by the Company or a Company Subsidiary but have not cleared (such amount, the
Float). The amount of the Float shall not be taken into account
for purposes of calculating Net Working Capital.

(b)
 Acquired Contracts means (i) all agreements currently in
          effect for the licensing of any of the Products by the Acquired Companies to
          customers, and all other agreements, contracts and arrangements relating to the
          Business to which any of the Acquired Companies is a party, and are listed in
Schedule 10.1(b) hereto or such other agreements and contracts           relating
to the Business entered into after the date hereof and prior to the           Closing
with the written consent of the Buyer (except such consent shall not be
          required for Contracts related to matters permitted under ARTICLE V), and (ii)
          all other agreements and contracts in effect as of the Closing to which any of
          the Acquired Companies is a party and are related directly or indirectly to the
          Acquired Assets or the Business (the Other Contracts),
          provided that any Other Contract of which the Buyers are made aware after the
          Closing Date shall become an Acquired Contract subject to the specific consent
          of the Buyer. Notwithstanding anything in the foregoing sentence to the
          contrary, the Companys directors and officers insurance policy
shall           not constitute an Acquired Contract.

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(c)
 Acquired Companies means the Company and all the Company
          Subsidiaries other than the Excluded Subsidiaries.

(d)
 Action means any legal, administrative, governmental or
          regulatory proceeding or other action, suit, proceeding, claim, arbitration,
          mediation, alternative dispute resolution procedure, inquiry or investigation
by           or before any arbitrator, mediator, court or other Governmental Authority.

(e)
        ;Additional Asset shall
have the meaning as set forth in Section 5.3(h).

(f)
 Additional Sellers has the meaning set forth in the preamble
          to this Agreement.

(g)
 Affiliate means (i) in the case of an individual, each other
          member of such individuals Family and any Person or entity that is
          directly or indirectly Controlling, Controlled by or under common Control with
          such individual or any one or more members of such individuals Family;
and           (ii) in the case of any other Person, any Person or entity that is directly
or           indirectly Controlling, Controlled by or under common Control with such
Person.

(h)
 Agreement means this Asset Purchase Agreement, including all
          Exhibits and Schedules hereto, as the same may be amended, modified or
          supplemented from time to time in accordance with its terms.

(i)
 Approved Enterprise shall have the meaning as set forth in Section
3.9.

(j)
 Assignment and Assumption Agreement means one or more
          Assignment and Assumption Agreements to be executed by the Buyers and the
          Company (or any of the Company Subsidiaries) at the Closing in the form of Exhibit
A.

(k)
 Assumed Liabilities means (i) all Liabilities of the Company
          that are related to the Business other than Excluded Liabilities, and (ii) all
          Liabilities set forth in Schedule 1.2(b) (subject to the provisions of
Article 8).

(l)
 Basket Amount shall have the meaning as set forth in Section 8.2.

(m)
 Budget and Operating Plan means the budget and operating plan
          attached hereto as Exhibit B for the operation of the Company and the
          Company Subsidiaries from the date hereof until the Closing Date as may be
          amended from time to time by the Company with the express prior written consent
          of the Buyer, which Budget and Operating Plan also includes a statement of a
          separate operational cash flow.

(n)
Business shall mean all of the business of the Company,
          including all of the Companys business conducted through the Company
          Subsidiaries, as of or prior to the Closing.

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(o)
 Business Day means any day other than a Saturday, Sunday or
          any other day on which banking institutions in the State of New York or the
          State of Israel are not open for the transaction of normal banking business.

(p)
 Business Employees means the employees, including officers,
          employed by any of the Acquired Companies on the date hereof and listed in Section
3.15(a) of the Disclosure Schedule and any additional           employees to be
employed by the Acquired Companies.

(q)
 Business Information means all books, records, files and
          documentation of the Acquired Companies in any media prepared, used or held for
          use by any Person, related directly or indirectly, in whole or in part, to the
          Business, the Acquired Assets or the Assumed Liabilities, including but not
          limited to, all business records, audit records, tangible data, computer
          software, electronic media and management information systems, disks, files,
          customer lists, supplier lists, blueprints, specifications, designs, drawings,
          operation or maintenance manuals, bids, personnel records, policy and
          instruction manuals and directories, all Products documentation, invoices,
          credit records, sales, market and promotional literature of any kind, tax,
          financial and accounting records and all other books and records relating to
the           Acquired Assets, the Assumed Liabilities and the Business. Notwithstanding
the           foregoing, Business Information shall not include corporate records of the
          Company and the Additional Sellers and such information that relates primarily
          to Excluded Assets or Excluded Liabilities.

(r)
 Business Insurance Policies shall have the meaning as set
          forth in Section 5.3(e).

(s)
Buyer or Buyers has the meaning set forth
          in the preamble to this Agreement.

(t)
 Capital Expenditure shall have the meaning as set forth in Section
2.2.

(u)
          Cash Equivalents means:

| | (1)        any
evidence of third-party Indebtedness to the Company with a maturity of one           year
or less issued or directly and fully guaranteed or insured by an Approved
          Jurisdiction or any agency or instrumentality thereof, providedthat the
          full faith and credit of an Approved Jurisdiction (or similar concept under the
          laws of the relevant Approved Jurisdiction) is pledged in support thereof;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2)        checks,
deposits, certificates of deposit or acceptances with a maturity of one           year or
less of any institution having combined capital and surplus and           undivided
profits (or any similar capital concept) of not less than $100 million           (or the
equivalent in another currency);
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3)        commercial
paper with a maturity of one year or less issued by a corporation           (other than
an Affiliate of the Company) organized under the laws of an Approved
          Jurisdiction and rated at least A-1 by Standard & Poors
          Ratings Service or P-1 by Moodys Investors Service; and
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (4)        repurchase
agreements and reverse repurchase agreements relating to marketable           direct
obligations issued or unconditionally guaranteed by the government of an
          Approved Jurisdiction maturing within one year from the date of acquisition.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

For
the avoidance of doubt, an investment in an investment fund which invests substantially
all of its assets in investments described above in this definition or which is
itself rated at least AAA or A-1 by Standard & Poors
Ratings Service or Aaa or P-1 by Moodys Investors Service
constitutes a Cash Equivalent. For the purposes of this definition of Cash
Equivalents, Approved Jurisdiction means the United States of America,
the State of Israel, the United Kingdom, Switzerland and any member nation of the European
Union as presently constituted.

(v)              Closing shall
have the meaning as set forth in Section           2.3.

(w)              Closing
Date shall have the meaning as set forth in Section 2.3.

(x)    
          Closing Date Statements shall have the meaning as set forth
          in Section 2.2.

(y)    
          Closing Date Purchase Price shall have the meaning as set
          forth in Section 2.1(a).

(z)    
          COBRA means the Consolidated Omnibus Budget Reconciliation
          Act of 1985.

(aa)    
          Code means the U.S. Internal Revenue Code of 1986, as
          amended.

(bb)    
          Company has the meaning set forth in the preamble to this
          Agreement.

(cc)    
          Company Benefit Plan shall have the meaning as set forth in
          Section 3.15.

(dd)    
          Company Disclosure Schedule shall have the meaning as set
          forth in ARTICLE 3.

(ee)    
          Company ERISA Affiliate shall have the meaning as set forth
          in Section 3.15.

(ff)    
          Company Escrow Agreements shall have the meaning as set forth
          in Section 3.10.

(gg)    
          Company Intellectual Property Rights means any Intellectual
          Property Rights that are owned by or licensed to the Company or a Company
          Subsidiary.

(hh)    
          Company Leases shall have the meaning as set forth in
          Section 3.8.

(ii)    
          Company Permits shall have the meaning as set forth in
          Section 3.13.

(jj)    
          Company Registered Intellectual Property Rights means
          Registered Intellectual Property Rights owned by the Company or a Company
          Subsidiary.

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(kk)    
          Company Source Code means, collectively, any software or any
          material portion or aspect of the software source code, or any material
          proprietary information or algorithm contained in or relating to any software
          source code, of any Company Intellectual Property Rights or any product or
          technology currently under development by Company or any Company Subsidiary.

(ll)    
          Company Subsidiary or Company Subsidiaries
          shall have the meaning as set forth in Section 3.1.

(mm)    
          Consents means consents, approvals, requirements, exemptions,
          orders, waivers, allowances, novations, authorizations, declarations, filings,
          registrations and notifications.

(nn)    
          Consultants means the consultants, contractors and service
          providers, whether individuals or entities, engaged by the Acquired Companies on
          the date hereof and listed in Section 3.15(m) of the Disclosure
          Schedule.

(oo)    
          Consulting Agreement means, with respect to the Acquired
          Companies, each consulting agreement as to which there are unsatisfied
          obligations (contingent or otherwise) between the Acquired Companies and any
          Consultants, as to which unsatisfied obligations (contingent or otherwise) of
          the Acquired Companies are outstanding.

(pp)    
          Continuing Business Employees shall mean any Business
          Employee (other than Israeli Company Employees and Foreign Company Employees)
          who remains an employee of a Company Subsidiary at the Closing in accordance
          with his then existing Employment Agreement.

(qq)    
          Continuing Employees shall mean the Continuing Business
          Employees, the Continuing Israeli Employees and the Continuing Foreign
          Employees.

(rr)    
          Continuing Foreign Employees shall mean any Foreign Company
          Employee who becomes an employee of Buyer (or an Affiliate thereof) as a result
          of accepting an offer of employment from Buyer (or an Affiliate thereof)
          pursuant to the terms of an Offer Letter.

(ss)    
          Continuing Israeli Employees shall mean any Israeli Company
          Employee who becomes an employee of Buyer (or an Affiliate thereof) as a result
          of accepting an offer of employment from Buyer (or an Affiliate thereof)
          pursuant to the terms of an Offer Letter.

(tt)    
          Control (including, with correlative meanings, the terms
          Controlling, Controlled by and under common
          Control with), as used with respect to any Person, means the possession,
          directly or indirectly, of the power to direct or cause the direction of the
          management and policies of such Person, whether through ownership of voting
          securities or partnership interests, by contract, office or otherwise.

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(uu)    
          Contracts means, with respect to any Person, all agreements,
          undertakings, contracts, obligations, arrangements, promises, understandings and
          commitments (whether written or oral and whether express or implied) (i) to
          which such Person is a party, (ii) under which such Person has any rights, (iii)
          under which such Person has any Liability or (iv) by which such Person, or any
          of the assets or properties owned or used by such Person, is bound, including
          all license agreements, manufacturing agreements, supply agreements, purchase
          orders, sales orders, distributor agreements, sales representation agreements,
          warranty agreements, indemnity agreements, service agreements, employment and
          consulting agreements, guarantees, credit agreements, notes, mortgages, security
          agreements, financing leases, leases (including Leases), comfort letters,
          derivative agreements, confidentiality agreements, joint venture agreements,
          partnership agreements, binding open bids, powers of attorney, binding memoranda
          of understanding and binding letters of intent, including, in each case, all
          amendments, modifications and supplements thereto and waivers and consents
          thereunder.

(vv)    
          Copyrights means any copyrights, copyrights registrations and
          applications therefor, and mask works and mask work registrations and
          applications therefor, and all other rights corresponding thereto anywhere in
          the world.

(ww)    
          Damages means any and all losses, Liabilities, claims,
          damages, deficiencies, diminutions in value, fines, payments, Taxes, Liens,
          costs and expenses, whether asserted or reasonably expected to be asserted,
          fixed, absolute or contingent, matured or unmatured, accrued or unaccrued,
          liquidated or unliquidated or due or to become due, and whenever or however
          arising and whether or not resulting from third party claims. In addition and
          without limiting the foregoing, Damages also include the reasonable costs and
          expenses of any and all Actions or other legal matters; all amounts paid in
          connection with any demands, assessments, judgments, settlements and compromises
          relating thereto; interest and penalties with respect thereto; and costs and
          expenses, including reasonable attorneys, accountants and other
          experts fees and expenses, incurred in investigating, preparing for or
          defending against any such Actions or other legal matters or in asserting,
          preserving or enforcing an Indemnitees rights hereunder.

(xx)    
          Domain Names means the domain names used by, or obtained for
          use by the Company in the course of carrying on its business.

(yy)    
          Draft Closing Date Statements shall have the meaning as set
          forth in Section 2.2.

(zz)    
          Draft Closing Capital Expenditure shall have the meaning as
          set forth in Section 2.2.

(aaa)    
          Draft Closing Net Working Capital shall have the meaning as
          set forth in Section 2.2.

(bbb)    
          Employment Agreement means, with respect to the Acquired
          Companies, each employment agreement as to which there are unsatisfied
          obligations (contingent or otherwise) of the Acquired Companies or any Company
          ERISA Affiliate and each signing bonus, relocation, repatriation, expatriation,
          or similar agreement between the Acquired Companies or any Company ERISA
          Affiliate and any Business Employee, as to which unsatisfied obligations
          (contingent or otherwise) of the Acquired Companies or any Company ERISA
          Affiliate are outstanding.

(ccc)    
          Environmental Claim shall have the meaning as set forth in
          Section 3.12.

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(ddd)    
          Environmental Laws shall have the meaning as set forth in
          Section 3.12.

(eee)    
          ERISA shall have the meaning as set forth in Section
          3.15.

(fff)    
          Escrow Agent means the Person selected by the Buyer and the
          Company to act as escrow agent under the Escrow Agreement.

(ggg)    
          Escrow Agreement means an escrow agreement by and among the
          Buyer, the Company and the Escrow Agent the form of Exhibit C to be
          attached hereto prior to the Closing.

(hhh)    
          Escrow Amount shall have the meaning as set forth in
          Section 2.1(b).

(iii)    
          Escrow Fund shall have the meaning as set forth in Section
          8.2.

(jjj)    
          Escrow Period shall have the meaning as set forth in
          Section 8.2.

(kkk)    
          Excess Reduction shall have the meaning as set forth in
          Section 2.2.

(lll)    
          Excluded Assets shall have the meaning as set forth in
          Section 1.1.

(mmm)    
          Excluded Liabilities shall have the meaning as set forth in
          Section 1.2(b).

(nnn)    
          Excluded Subsidiaries shall have the meaning as set forth in
          Section 1.1(c).

(ooo)    
          Family of an individual includes (i) such individual, (ii)
          the individuals spouse, siblings, or ancestors, (iii) any lineal
          descendent of such individual, or their siblings, or ancestors or (iv) a trust
          for the benefit of any of the foregoing.

(ppp)    
          Financial Statements shall have the meaning as set forth in
          Section 3.3.

(qqq)    
          Fixtures and Equipment means all office equipment, telecom
          equipment and any material or machines, as well as all furniture, fixtures,
          furnishings, leasehold improvements, vehicles, computer and computer related
          hardware, equipment (including research and development equipment) and other
          tangible personal property used, owned or leased by the Acquired Companies,
          whether or not related to the Business, except to the extent included in the
          Excluded Assets, provided that any of the foregoing that is leased by Acquired
          Companies is subject to the terms and conditions of the applicable lease to the
          extent such lease was provided to the Buyer and is referred to in Section
          3.8(a) of the Disclosure Schedule.

(rrr)    
          Foreign Company Employees shall have the meaning as set forth
          in Section 5.10.

(sss)    
          Formation Documents shall have the meaning as set forth in
          Section 3.1.

(ttt)    
          GAAP shall have the meaning as set forth in Section
          3.3.

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(uuu)    
          General Assignment and Bill of Sale shall mean those certain
          agreement(s) to be executed by the Company (or any of the Company Subsidiaries)
          and the Buyers at the Closing, the form of which is attached hereto as
          Exhibit D.

(vvv)    
          Governmental Authority means, in any jurisdiction, including
          the State of Israel and the United States, any (i)  national, federal,
          state, local, foreign or international government, (ii) court, arbitral or
          other tribunal, (iii) governmental or quasi-governmental authority of any
          nature (including any political subdivision, instrumentality, branch,
          department, official or entity) or (iv) agency, commission, authority or
          body exercising, or entitled to exercise, any administrative, executive,
          judicial, legislative, police, regulatory or taxing authority or power of any
          nature.

(www)    
          Grants shall have the meaning as set forth in Section
          3.19.

(xxx)    
          Hazardous Material shall have the meaning as set forth in
          Section 3.12.

(yyy)    
         HSR Act means the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

(zzz)    
          Incorporated Open Source Software shall have the meaning as
          set forth in Section 3.10.

(aaaa)    
          Indemnified Party shall have the meaning as set forth in
          Section 8.2.

(bbbb)    
          Indebtedness means, other than current trade liabilities and
          suppliers debt incurred in the ordinary course of business and payable in
          accordance with customary practices and other than Intercompany Indebtedness,
          (i) all mortgages, indentures, loans or credit agreements, security
          agreements or other agreements or instruments relating to the borrowing of money
          or extension of credit or for the deferred purchase price of property or
          services, (ii) any other indebtedness which is evidenced by a note, bond,
          debenture or similar instrument, (iii) all obligations under conditional
          sale or other title retention agreements relating to property purchased,
          (iv) capital lease or sale-leaseback obligations, (v) all liabilities
          secured by any Lien on any property, and (vi) any guarantee or assumption
          of any of the foregoing in clauses (i) through (v), or guaranty of minimum
          equity, capital, net worth, profitability or income or any make-whole or similar
          obligation with respect to itself, its subsidiaries or affiliates, or a third
          party.

(cccc)    
          Intellectual Property means any or all of the following:
          (i) Copyrights whether registered or unregistered, moral rights, works of
          authorship including, without limitation, software programs, computer programs,
          source code and executable code, whether embodied in software, firmware or
          otherwise, documentation, designs, files, records, data and mask works,
          (ii) Patents whether registered or unregistered, inventions (whether or not
          patentable), know how, improvements, technology, methods, processes, tools and
          designs, (iii) proprietary and confidential information, trade secrets and
          know how, (iv) databases, data compilations and collections and technical
          data, (v) Trademarks whether registered or unregistered, (vi) domain
          name registrations, web addresses and sites, and (vii) all other intellectual
          property (whether registered or unregistered) and all applications and economic
          rights of authors and inventors, however denominated, for any such rights,
          anywhere in the world.

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(dddd)    
          Intellectual Property Rights means all rights in any
          Intellectual Property.

(eeee)    
          Intercompany Indebtedness means any Indebtedness between any
          of the Acquired Companies and the Excluded Subsidiaries.

(ffff)    
          Inventory means all inventory held for resale and all other
          raw materials, work in process, finished products, spares, wrapping, supply and
          packaging items related to the Business, except to the extent included in the
          Excluded Assets.

(gggg)    
          Investment Center shall have the meaning as set forth in
          Section 3.2.

(hhhh)    
          IRS means the United States Internal Revenue Service.

(iiii)    
          Israeli Company Employees shall have the meaning as set forth
          in Section 3.15.

(jjjj)    
          Israeli Companies Law means the Israeli Companies Law 
          1999, together with the rules and regulations promulgated thereunder.

(kkkk)    
          Key Employees means those employees of the Acquired Companies
          listed on Schedule 6.2(h).

(llll)    
          Knowledge means the knowledge (including receipt of notice)
          of the Chief Executive Officer of the Company (Dov Ofer) and anyone reporting to
          the CEO, in each case after due inquiry, and the members of the Board of
          Directors of the Company.

(mmmm)    
          Laws means all laws, statutes, constitutions, treaties,
          rules, regulations, standards and directives binding as a matter of law,
          ordinances, codes, judgments, rulings, orders, writs, decrees, stipulations,
          injunctions and determinations of all Governmental Authorities.

(nnnn)    
          Leases means all leases, subleases, licenses, rights to
          occupy or use and other Contracts with respect to real, personal or mixed
          property, including, in each case, all amendments, modifications and supplements
          thereto and waivers and consents thereunder.

(oooo)    
          Liability means any and all claims, debts, liabilities,
          obligations and commitments of whatever nature, whether asserted or reasonably
          expected to be asserted, known or unknown, fixed, absolute or contingent,
          matured or unmatured, accrued or unaccrued, liquidated or unliquidated or due or
          to become due, and whenever or however arising (including those arising out of
          any Contract or tort, whether based on negligence, strict liability or
          otherwise) regardless of whether the same would be required by GAAP to be
          reflected as a liability in financial statements or disclosed in the notes
          thereto.

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(pppp)    
          Licenses means all Consents, licenses, permits, certificates,
          variances, exemptions, franchises and other approvals or authorizations issued,
          granted, given, required or otherwise made available by any Governmental
          Authority.

(qqqq)    
          Lien means any charge, claim, community property interest,
          equitable interest, lien, encumbrance, option, proxy, pledge, security interest,
          mortgage, right of first refusal, right of preemption, transfer or retention of
          title agreement, or restriction by way of security of any kind or nature,
          including any restriction on use, voting, transfer, receipt of income or
          exercise of any other attribute of ownership.

(rrrr)    
          Loss or Losses shall have the meaning as
          set forth in Section 8.2.

(ssss)    
          Material Adverse Effect means any effect, change, event,
          circumstance or condition which, individually or in the aggregate, has or could
          reasonably be expected to have a material adverse effect on (A) the
          business, assets (including intangible assets), prospects (but prospects is
          solely a part of this definition for purposes of the provisions of Section
          6.2), cash flows, results of operations or financial condition of
          the Company and the Company Subsidiaries taken together as a whole, in each case
          whether or not covered by insurance, or (B) the ability of the Company to
          consummate the Transaction.

(tttt)    
          NDA shall have the meaning as set forth in Section
          5.2.

(uuuu)    
          Net Working Capital shall have the meaning as set forth in
          Section 2.2.

(vvvv)    
          Net Capital Expenditure Target shall mean a sum of
          US$1,700,000, which sum is based on the Closing Date being October 31, 2005 and
          which sum shall be adjusted on a pro rata basis in the event that the Closing
          Date is on a date other than October 31, 2005, as mutually agreed between the
          Company and Buyer.

(wwww)    
          Net Working Capital Target shall mean a sum of US$35,600,000.

(xxxx)    
          NIS means New Israeli Shekel, the lawful currency of the
          State of Israel.

(yyyy)    
          Notice of Dispute shall have the meaning as set forth in
          Section 2.2.

(zzzz)    
          OCS shall have the meaning as set forth in Section
          3.2.

(aaaaa)    
          Offer Letter shall mean an offer letter of employment on
          Buyers standard form or similar document in accordance with applicable
          law.

(bbbbb)    
          Officers Certificate shall mean a certificate signed by
          any Indemnified Party (or in the case of an Indemnified Party that is not a
          natural Person, an officer thereof): (i) stating that such Indemnified Party has
          paid, sustained, incurred, or accrued, or reasonably anticipates that it will
          have to pay, sustain, incur, or accrue Losses, and (ii) specifying in reasonable
          detail the individual items of Losses included in the amount so stated and the
          basis for such Losses or anticipated Losses, and the nature of the
          misrepresentation or breach of warranty to which such item is related.

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(ccccc)    
          Ordinance shall mean the Israeli Income Tax Ordinance [New
          Version]  1961.

(ddddd)    
          Owned Property shall have the meaning as set forth in
          Section 3.8.

(eeeee)    
          Parent means Scitex Corporation Ltd., a company incorporated
          under the laws of the State of Israel.

(fffff)    
          Patents means all United States, European, Israeli and other
          patents, designs, ornamental and utility models and applications therefor and
          all reissues, divisions, re-examinations, renewals, extensions, provisionals,
          continuations and continuations-in-part thereof, and equivalent or similar
          rights anywhere in the world in inventions and discoveries including without
          limitation invention disclosures.

(ggggg)    
          Payment Amount shall have the meaning as set forth in
          Section 8.2.

(hhhhh)    
          Permitted Liens shall have the meaning as set forth in
          Section 3.8.

(iiiii)    
          Person means any individual, firm, partnership, joint
          venture, trust, corporation, limited liability entity, unincorporated
          organization, estate or other entity (including a Governmental Authority).

(jjjjj)    
          Privacy Obligations shall have the meaning as set forth in
          Section 3.17.

(kkkkk)    
          Products means all products sold by the Acquired Companies
          including, without limitation, the products listed in Exhibit E hereto.

(lllll)    
          PTO means the United States Patent and Trademark Office.

(mmmmm)    
          Purchase Price means an aggregate of US$ 230,000,000 subject
          to adjustment as set forth in Section 2.2.

(nnnnn)    
          Registered Intellectual Property Rights means all Patents
          (including registrations and applications to register), Trademarks (including
          registrations and applications to register), Domain Names (including
          registrations and applications to register) and Copyrights (including
          registrations and applications to register).

(ooooo)    
          Representatives means, with respect to any Person, such
          Persons Affiliates, directors, officers, employees, agents, consultants,
          advisors and other representatives, including legal counsel, accountants and
          financial advisors.

(ppppp)    
          Restricted Deposits means cash that is held at a bank that
          can not be accessed or released and whose sole purpose is to secure and provide
          the Company with a credit line.

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(qqqqq)    
          Seller Indemnified Party shall have the meaning as set forth
          in Section 8.3.

(rrrrr)    
          Shares means Ordinary Shares, NIS 0.01 par value per share,
          of the Company.

(sssss)    
          Software shall mean any and all computer software and code,
          including assemblers, applets, compilers, source code, object code, data
          (including image and sound data), design tools and user interfaces, in any form
          or format, however fixed including source code listings and documentation.

(ttttt)    
          Survival Date shall have the meaning as set forth in
          Section 8.1.

(uuuuu)    
          Tax shall have the meaning as set forth in Section
          3.9.

(vvvvv)    
          Tax Escrow shall have the meaning as set forth in Section
          8.2(e).

(wwwww)    
          Tax Return shall have the meaning as set forth in Section
          3.9.

(xxxxx)    
          Technology shall mean all technology, information related to,
          constituting or disclosing, any technology, and all tangible copies and
          embodiments of technology in any media, including all know-how, show-how,
          techniques, trade secrets, inventions (whether or not patented or patentable),
          algorithms, routines, Software, files, databases, works of authorship or
          processes

(yyyyy)    
          Termination Date shall have the meaning as set forth in
          Section 7.1.

(zzzzz)    
          Third Party License Agreements means the license agreements
          listed in Section 3.6(a)(1) of the Disclosure Schedule relating
          to the Transferred Intellectual Property.

(aaaaaa)    
          Trademarks means trademarks and service marks, trade names,
          brand names, corporate names, logos, slogans, trade dress, and other words,
          designations, labels, symbols, designs, colors, color combinations or product
          configurations.

(bbbbbb)    
          Trade Practices Act has the meaning set forth in Section
          3.2.

(cccccc)    
          Transaction means the transactions contemplated by the
          Transaction Documents.

(dddddd)    
          Transaction Documents means this Agreement and all other
          instruments, certificates and agreements delivered or required to be delivered
          by Sellers, the Company, the Buyers or any of their Representatives pursuant to
          this Agreement.

(eeeeee)    
          Transaction Expenses means all fees and expenses incurred by
          the Company in connection with or related to this Agreement, the Transaction
          Documents or the Transaction.

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(ffffff)    
          Transferred Intellectual Property means any and all of the
          rights, titles and interest in registered and unregistered Intellectual
          Property, used, licensed or owned by the Acquired Companies, related directly or
          indirectly, in whole or in part, to the Business, including without limitation
          all Company Intellectual Property Rights, all Company Registered Intellectual
          Property Rights, Company Source Code, Software, provided that with respect to
          any Transferred Intellectual Property identified in Section 3.10(c)
          of the Disclosure Schedule as being subject to any Third Party License
          Agreement, then such Transferred Intellectual Property is subject to the terms
          and conditions of the relevant Third Party License Agreements.

(gggggg)    
          Transfer Taxes shall mean all sales, use,, gross receipts,
          excise, registration, duty, transfer and other similar taxes and governmental
          fees.

(hhhhhh)    
          Transferred Technology shall mean all Technology owned or
          transferable by the Acquired Companies related to the Business or the Acquired
          Assets, including all Technology listed on Exhibit F. To the extent that
          any Software constitutes Transferred Technology, all versions and releases of
          such Software, and Software from which such Software was derived, in both source
          and object code form, shall be included as Transferred Technology

(iiiiii)    
          Unsatisfied Losses shall have the meaning as set forth in
          Section 8.2.

(jjjjjj)    
          Withheld Amounts shall have the meaning as set forth in
          Section 2.2.

(kkkkkk)    
          Withheld Funds shall have the meaning as set forth in
          Section 8.2.

10.2
Terms Generally. The definitions in Section 10.1 shall apply equally
to both the singular and plural forms of the terms defined. Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and neuter
forms. The words include, includes and including shall
be deemed to be followed by the phrase without limitation. The words herein,
hereof and hereunder and words of similar import refer to this
Agreement (including the Exhibits and Schedules to this Agreement) in its entirety and
not to any part hereof unless the context shall otherwise require. All references herein
to Articles, Sections, Exhibits and Schedules shall be deemed references to Articles and
Sections of, and Exhibits and Schedules to, this Agreement unless the context shall
otherwise require. Unless the context shall otherwise require, any references to any
agreement or other instrument or statute or regulation are to it as amended and
supplemented from time to time (and, in the case of a statute or regulation, to any
successor provisions). Any reference to any supranational, national, federal, state,
local, or foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires otherwise. Any reference
in this Agreement to a day or a number of days (without explicit
reference to Business Days) shall be interpreted as a reference to a calendar
day or number of calendar days. If any action is to be taken or given on or by a
particular calendar day, and such calendar day is not a Business Day, then such action
may be deferred until the next Business Day.

[Remainder of Page
Intentionally Left Blank]

80

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IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date first above written.

| |  | Scitex Vision Ltd.By: 
Name:Title:
| |  | ------------------------------------------------

|Tech Ink (Pty) Ltd.By: 
Name:Title: | Kovacs Investments 183 (Pty) Ltd.By: 
Name:Title:
|------------------------------------------------- | ---------------------------------------------------------------

|Kovacs Investments 319 (Pty) Ltd.By: 
Name:Title:
|---------------------------------------------------------------

|Hewlett-Packard CompanyBy: 
Name:Title:
|-----------------------------------------------------

 Signature Page
to Asset Purchase Agreement 

81

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# FIRST AMENDMENT TO THE ASSET PURCHASE AGREEMENT

THIS
FIRST AMENDMENT TO THE ASSET PURCHASE AGREEMENT (the Amendment) is
entered into effective as of November 1, 2005 by and among (i) Hewlett-Packard Company
(the Buyer), (ii) Scitex Vision Ltd., a private company organized under
the laws of the State of Israel (the Company), and (iii) Tech Ink (Pty)
Ltd., Kovacs Investments 183 (Pty) Ltd. and Kovacs Investments 319 (Pty) Ltd., companies
incorporated under the laws of South Africa (the Additional Sellers).

W I T N E S S E T H:

WHEREAS,
the parties have entered into that certain Asset Purchase Agreement dated August 11, 2005
(the Agreement); and

WHEREAS,
the parties wish to amend certain provisions in the Agreement as set forth herein.

NOW,
THEREFORE, in consideration of the covenants, promises and representations set forth
herein, and for other good and valuable consideration, the parties agree as follows:

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

| | Unless
otherwise defined herein, capitalized terms used in this Amendment shall have the meaning
ascribed to them under the Agreement.
| | --------------------------------------------------------------------------------------------------------------------------------------

|2. | Swfe
D&S BVBA
|-- | -------------

| | Without
derogating from the provisions of the Agreement, the parties specifically agree that any
Liability in connection with, arising from or relating to, Swfe D&S BVBA, including
without limitation, any Tax Liability that may have been assumed by Scitex Vision Europe
N.V. prior to the Closing, shall be deemed an Excluded Liability under the Agreement.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Transaction
Expenses
|-- | --------------------

| | Clause
(ii) of Section 1.2(b) of the Agreement shall be amended and replaced with the following:
| | ------------------------------------------------------------------------------------------------

| | (ii)
                      all of the Companys (and the Additional Sellers)
Liabilities with                     respect to costs and expenses incurred in connection
with this Agreement and the                     transactions contemplated hereby,
including the Transaction Expenses, as well as                     any cost or liability
incurred by any of the Acquired Companies in order to                     facilitate the
transfer of the Acquired Assets at the Closing and which is not
                    specifically listed in the Assumed Liabilities,
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | Section
2.2(h)
|-- | --------------

| | The
following clause (h) shall be added to Section 2.2 of the Agreement:
| | ------------------------------------------------------------------------



---

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| | (h)
                      The Closing Date Statements will include a calculation of cash (for
purposes of                     this Section 2.2(h) cash is defined as cash
per the Company                     Subsidiaries bank statements excluding the
Float) and Cash Equivalents and                     Restricted Deposits, as well as any
Indebtedness assumed by the Buyers.  In                     the event there is an
excess of such cash and Cash Equivalents and Restricted                     Deposits over
such Indebtedness, then the Buyer will pay to the Company (and/or                     the
Additional Sellers, in accordance with Section ý5.15) any such excess
                    by wire transfer of immediately available funds to an account
designated by the                     Company, such payment to be made simultaneously
with any payment or amendment to                     the Purchase Price, in accordance
with the other provisions of this Section 2.2                     above.  In the
event there is a deficit of such cash and Cash Equivalents                     and
Restricted Deposits over such Indebtedness, then the Company shall pay such
                    deficit to the Buyers by wire transfer of immediately available funds
to an                     account designated by the Buyer, such payment to be made
simultaneously with any                     payment or amendment to the Purchase Price,
in accordance with the other                     provisions of this Section 2.2 above. Any
payments to be made under this                     Section 2.2(h) shall not be made from
the Withheld Amounts or the Escrow                     Amount.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | Section
5.10(e)
|-- | ---------------

| | Section
5.10(e) of the Agreement shall be deleted and replaced in its entirety as follows:
| | ------------------------------------------------------------------------------------------

| | (e)
                      At the Closing, the Company shall assign and transfer to Buyers all
its rights                     in all such Company Benefit Plans with respect to the
relevant Continuing                     Israeli Employees and Foreign Company Employees,
and such Company Benefit Plans                     shall be deemed Acquired Assets
hereunder.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Without
derogating from the other provisions of this Section 5.10, at the Closing, the
following shall apply with respect to all accumulated vacation days of the Continuing
Employees employed by Scitex Vision America Inc.: (X) the Company shall, prior to the
Closing, cash out and redeem any vacation days accrued as of the Closing by each such
Continuing Employee in excess of the maximum number of vacation days that each such
Continuing Employee is eligible to accrue with respect to his or her first year of
employment with the Buyer pursuant to the Buyers vacation policy in effect as of the
Closing (such maximum number of vacation days is referred to as the Buyer Maximum
Number of Vacation Days), and (Y) each such Continuing
Employee will be permitted to carry over any remaining accrued vacation days
outstanding as of the Closing and not cashed out and redeemed pursuant to the preceding
clause (X) up to the Buyer Maximum Number of Vacation Days (subject to any right that
Buyers may have for redeeming and cashing out any additional accrued vacation). With
respect to all other Continuing Employees, the Company shall not be required to cash out
or redeem any vacation days accrued by any such Continuing Employee as of the Closing, and
any such Continuing Employee will be permitted to carry over any accrued vacation days
balance outstanding and not cashed out or redeemed by the Company as of the Closing under
the Companys (or Company Subsidiarys) vacation programs (subject to any right
that Buyer may have for redeeming and cashing out any additional accrued vacation).
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|6. | Section
5.15 Purchase Price Allocation
|-- | --------------------------------------

| | Section
5.15 of the Agreement shall be deleted and replaced in its entirety as follows:
| | ---------------------------------------------------------------------------------------

| | The
Buyer, the Company and Duff and Phelps shall work together so as to allocate
the identifiable intangible assets of the Purchase Price and establish an
allocation methodology for the goodwill portion of the Purchase Price among the Acquired
Assets by and as of the Closing Date. In the event of a disagreement between the Buyer and
the Company as to any portion of such allocation or valuation which cannot be amicably
resolved, Duff and Phelps shall have the final determination with respect thereto, and
Buyer and Company agree to be bound by such determination. The Buyer shall provide the
Company promptly following the receipt thereof with (i) copies of all documentation
delivered by Duff and Phelps to the Buyer used or produced in the preparation of such
valuation and allocation, subject to obtaining the approval of Duff and Phelps, and (ii)
the final report of Duff and Phelps. The parties shall use commercially reasonable efforts
to have the report of Duff and Phelps to be delivered no less than 14 days prior to the
Closing.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | Purchase
Price
|-- | --------------

| | Notwithstanding
anything to the contrary in the Agreement, the parties agree that any value added tax due
in connection with the Closing Date Purchase Price to be paid to the Company (but not to
the Additional Sellers) shall not be paid at the Closing, but shall be paid within 30 days
following the Closing, against delivery by the Company of a value added tax invoice (to
the extent required by Law).
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | Hold
Separate Agreement
|-- | -----------------------

| | The
parties agree that in connection with that certain Hold Separate Agreement entered into on
the date hereof, the parties hereby waive any condition to Closing in connection with the
subject matter thereof.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. | Disclosure
Schedules
|-- | --------------------

| | Attached
hereto as Exhibit A are modifications to the Company Disclosure
Schedule in respect of matters arising or events occurring after the date of the Agreement
but prior to the Closing. The attached does not modify or qualify the representations and
warranties of the Company (including the schedules thereto) as of the date of the
Agreement, as presented in the Agreement (including the schedules thereto) on the date
thereof.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | Additional
Sellers
|--- | ------------------

| | In
connection with the liquidation of any of the Additional Sellers following the Closing,
the parties agree as follows:
| | ------------------------------------------------------------------------------------------------------------------------



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| | 10.1. | The
Additional Sellers shall not commence any liquidation proceedings (as
                    hereinafter defined) in the Republic of South Africa prior to 6
months following                     the Closing. For purposes of this Section 10, the
term commence any                     liquidation proceedings shall mean the
lodging with the Registrar of                     Companies of the Republic of South
Africa of any resolution by an Additional                     Seller for the voluntary
liquidation of such Additional Seller.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10.2. | Upon
the expiration of the 6-month period specified in Section 10.1 above, in
                    the event of the Company or any of the Additional Sellers deciding to
commence                     liquidation proceedings in relation to any of the Additional
Sellers, the                     Company will, prior to the commencement of such
liquidation proceedings,                     automatically and without the need for any
further action or documentation, cede                     and assume all representations,
warranties, obligations, agreements and                     covenants of the Additional
Sellers under the Agreement and any representations                     and warranties so
assumed by the Company shall be deemed to be provided by the                     Company
on behalf the Additional Sellers.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10.3. | Subject
to such assumption by the Company as provided for in Section 10.2 above,
                    the Buyer hereby consents to the liquidation of the Additional
Sellers,                     commencing at any time 6 months after the Closing without
the need for any                     further action or documentation by the Buyer in
connection therewith.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10.4. | The
parties hereto agree that the resolution of any Additional Seller to pay a
                    dividend in anticipation of liquidation or the actual payment of such
dividend                     shall not, in and of itself, constitute a commencement of
liquidation                     proceedings for purposes of this Section 10.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11. | Buyer
Representations
|--- | ---------------------

| | The
first sentence in Section 4.1 of the Agreement shall be amended and replaced with the
following:
| | ----------------------------------------------------------------------------------------------------

| | 4.1
Organization. Each of the Buyers is, or will be prior to the Closing, a corporation duly
organized, validly existing and is in good standing (where such concept exists) under the
laws of the jurisdiction of its incorporation.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|12. | General
Provisions
|--- | ------------------

| | 12.1. | Entire
Agreement
| | ----- | ----------------

| | Except
as set forth in this Amendment, all other terms and conditions of the Agreement shall
remain unchanged. This Amendment shall be deemed for all intents and purposes as an
integral part of the Agreement. The Agreement and this Amendment constitute the entire
agreement of the parties hereto with respect to the subject matter hereof and supersede
all prior agreements and undertakings, both written and oral, between the parties hereto
with respect to the subject matter hereof.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 12.2. | Further
Assurances; Interpretation
| | ----- | ----------------------------------

| | Each
of the parties shall perform such further acts and execute such further documents as may
reasonably be necessary to carry out and give full effect to the provisions of this
Amendment and the intentions of the parties as reflected hereby.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 12.3. | Counterparts
| | ----- | ------------

| | This
Amendment may be executed in one or more counterparts, and by the different parties
hereto in separate counterparts, each of which when executed shall be deemed to be an
original but all of which taken together shall constitute one and the same agreement.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


Signature page to follow 



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IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the
date first above written.

|Tech Ink (Pty) Ltd.By: 
Name:Title: | Scitex Vision Ltd.By: 
Name:Title:
|------------------------------------------------- | ------------------------------------------------

|Kovacs Investments 319 (Pty) Ltd.By: 
Name:Title: | Kovacs Investments 183 (Pty) Ltd.By: 
Name:Title:
|--------------------------------------------------------------- | ---------------------------------------------------------------

|Hewlett-Packard CompanyBy: 
Name:Title:
|-----------------------------------------------------



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