---

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Exhibit 4.13

SALE AND PURCHASE OF CAPTURE PROJECTS LIMITED

|                                                       |    
|------------------------------------------------------ | ---
|TOP IMAGE SYSTEMS UK LIMITED                           | (1)
|                                                      
|and                                                   
|                                                      
|TOP IMAGE SYSTEMS LIMITED                              | (2)
|                                                      
|and                                                   
|                                                      
|THE SHAREHOLDERS OF CAPTURE PROJECTS LIMITED AGREEMENT | (3)

| |                          | 
| | ------------------------ | 
| | Ref: SM05/RH02           | 
| | Burges Salmon LLP       
| | www.burges-salmon.com   
| | Tel: +44 (0)117 939 2000
| | Fax: +44 (0)117 902 4400



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# CONTENTS

|Clause | Heading                      | Page
|------ | ---------------------------- | ----
|       |                              |     
|1      | INTERPRETATION               | 4   
|2      | AGREEMENT FOR SALE           | 10  
|3      | PURCHASE CONSIDERATION       | 11  
|4      | CONDITIONS                   | 11  
|5      | RETENTION                    | 12  
|6      | COMPLETION                   | 14  
|7      | WARRANTIES BY THE WARRANTORS | 16  
|8      | LIMITATIONS OF LIABILITY     | 17  
|9      | PENSIONS                     | 17  
|10     | NAME                         | 17  
|11     | FUTURE ACTIVITIES            | 18  
|12     | POST COMPLETION MATTERS      | 19  
|13     | ASSIGNMENT                   | 19  
|14     | SUCCESSORS AND ASSIGNS       | 19  
|15     | FURTHER ASSURANCE            | 20  
|16     | TIME OF THE ESSENCE          | 20  
|17     | CONFIDENTIALITY              | 20  
|18     | ANNOUNCEMENTS                | 21  
|19     | INDEMNITY                    | 22  
|20     | COSTS                        | 22  



---

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|21                                                | TAX                           | 23
|------------------------------------------------- | ----------------------------- | --
|22                                                | AMENDMENTS AND WAIVER         | 23
|23                                                | ENTIRE AGREEMENT              | 23
|24                                                | FRAUD                         | 24
|25                                                | SURVIVAL OF OBLIGATIONS       | 24
|26                                                | RIGHTS OF THIRD PARTIES       | 24
|27                                                | NOTICES                       | 25
|28                                                | COUNTERPARTS                  | 26
|29                                                | GOVERNING LAW                 | 27
|30                                                | JURISDICTION                  | 27
|Schedule 1 - The Vendors                          | 29                           
|Schedule 2 - The Company                          | 30                           
|                                                  | Part A                        | 30
|                                                  | Part B                        | 31
|Schedule 3 - The Intellectual Property            | 32                           
|Schedule 4 - The Pension Schemes                  | 33                           
|Schedule 5 - The Properties                       | 34                           
|                                                  | Part A - Freehold Properties  | 34
|                                                  | Part B - Leasehold Properties | 34
|Schedule 6 - Completion Documents                 | 35                           
|Schedule 7 - The Warranties                       | 37                           
|Schedule 8 - Warranty Limitations                 | 47                           
|Schedule 9 - Conduct of Business                  | 50                           
|Schedule 10 - 2nd, 3rd& 4th Consideration Payment | 51                           



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|                                                                                         |    | 
|---------------------------------------------------------------------------------------- | -- | 
|Schedule 11 - Tax Deed                                                                   | 53
|Schedule 12 - Agreed Form Resignation Letters for Directors and Secretary of the Company | 63
|Schedule 13 - Vendors' Solicitors Form of Legal Opinion                                  | 64
|Schedule 14 - Service Agreement between Roger Stocker and the Company                    | 67



---

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THIS AGREEMENT is made on          day of April 2007

BETWEEN:

|(1) | Roger
Stocker and Edward Stocker, being the sole beneficial shareholders of Capture Projects
Limited whose full details and shareholdings are set out in Schedule 1,
which expression shall include the legal personal representatives of any
such persons (the "Vendors");
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | TOP
IMAGE SYSTEMS UK LIMITED(a company incorporated in England and Wales with registered
office at Amberley Place 107-111 Peascod Street Windsor SL4 1TE United Kingdom
("TIS UK" or the "Purchaser"); and
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | TOP
IMAGE SYSTEMS LIMITED.a company incorporated under the laws of Israel, ("TIS" or the
"Parent")
|--- | --------------------------------------------------------------------------------------------------

RECITALS:

|(A) | The
 Company  (as  defined  below)  is a private  company  limited  by shares  incorporated
 in  England  further          information about which is contained in Schedule 2.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(B) | The
Vendors are the beneficial  owners of and are able to procure the sale and transfer,
 free from  Encumbrances          (as defined below), of the Shares (as defined below).
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(C) | The
 Vendors  have  agreed to sell and the  Purchaser  has agreed to  purchase  all of the
 issued  shares in the          capital of the Company.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------

|(D) | The
Vendors can procure the sale to the Purchaser of all the shares in the share capital of
the Company.
|--- | --------------------------------------------------------------------------------------------------------

|(E) | TIS
engages in the development and worldwide  distribution and marketing of data capture
 software  solutions and          is currently active in the UK through its subsidiary,
TIS UK.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

IT IS AGREED as follows:

|1 | INTERPRETATION
|- | --------------

|1.1 | Definitions
|--- | -----------

In this Agreement unless the context
otherwise requires:

Accounts means the
audited accounts of the Company for the period commencing on 1 January 2005 and ending on
the Balance Sheet Date comprising (inter alia) the audited balance sheet and the audited
profit and loss account, the notes and the cash flow statement relating thereto and the
reports of the directors and auditors thereon; and which the Parent shall arrange (at its
own cost) to be prepared in accordance with US General Accepted Accounting Practices
(GAAP) standards for the purposes of this agreement;

3

---

---

Agreement means
this agreement and all schedules and recitals in and appendices to this agreement;

Auditors means: Peter
Howard Foreman & Co of 1 Wharfe Mews, Wetherby LS22 6LX;

Balance Sheet
Date means 31 December 2006;

Business means the
marketing and distribution of software solutions in the field of data capture and the
provision of integration services in the content capture field;

CAA means the Capital Allowances Act 2001;

Company means
Capture Projects Limited, a limited company organized under the laws of England and Wales
with principal offices at Waterside, Grange Park, Boston Road, Wetherby, Leeds LS22 5NB;

Completion means
completion of the sale and purchase of the Shares as contemplated in clause 6 of this
Agreement;

Completion
Date means the date on which Completion takes place;

Conditions means
the conditions precedent set out in clause 4.1;

Confidential
Information means all information or data of the Company in relation to the
Business (in whatever medium stored) which is of a confidential nature including but
without limitation, all business, financial, commercial, technical, operational,
organisational, legal, management and marketing information, data, know how and trade
secrets of the Company;

Consideration
means the 1st Consideration Payment, the 2nd Consideration Payment,
the 3rd Consideration Payment and the 4th Consideration Payment;

1stConsideration Payment means the sum of £1,800,000 (one million eight
hundred thousand Pounds) payable to the Vendors in accordance with clause 3.1;

2nd Consideration
Payment means the sum of £500,000 (five hundred thousand Pounds) payable
in accordance with the provisions of Schedule 10;

5

---

---

3rd Consideration
Payment means the sum of £200,000 payable to the Vendors in accordance
with the provisions of Schedule 10;

4th Consideration
Payment means a further payment of up to £200,000 payable to the Vendors
in accordance with the provisions of Schedule 10;

CPL means the
Company;

Disclosure
Letter means the letter (together with its attachments) of even date from the
Vendors to the Purchaser disclosing:

| | (a) | information
constituting exceptions to the Warranties; and
| | --- | ----------------------------------------------------------

| | (b) | particulars
of other matters referred to in this Agreement;
| | --- | -----------------------------------------------------------

Effective
Time means the time of Completion;

Employee means a
director or employee of the Company employed as at the date of this Agreement;

Encumbrance
includes any interest of any person including, without prejudice to the generality of the
foregoing, any fixed security, debenture, mortgage, charge, assignation, pledge, deposit
by way of security, bill of sale, lease, hire-purchase, credit-sale and other agreements
for payment on deferred terms, right to acquire, option, lien or right of pre-emption,
security interest, title retention or other right of retention or any other security
agreement or arrangement whatsoever;

Event includes any
act, omission, event or transaction and, without limitation, the receipt or accrual of any
income profits or gains, the declaration making or payment of any distribution, the
ownership of any asset membership of or ceasing to be a member of any group or partnership
or any other association, death, any residence or change in the residence of any person
for Tax purposes, the expiry of any period of time and Completion;

Expiry Date
means 12 months from the date of this Agreement;

Intellectual
Property means all inventions (whether patentable or not), patents, utility
models, designs (both registered and unregistered and including rights in semiconductor
topographies), copyright, database rights, domain names, trade and service marks (both
registered and unregistered) together with all applications for, rights to the grant of
and extensions of the same, and all other intellectual and industrial property including
but not limited to all similar or analogous rights throughout the world, in each case for
the full term of the relevant right;

6

---

---

Intellectual
Property Rights means all rights in and to the Intellectual Property
that is owned or licensed by the Company (including the Licensed Rights) and used or
proposed to be used by the Company in its businesses and including without limitation that
listed in Schedule 3;

Key Employee
means Roger Stocker.

Licensed
Rights means the Intellectual Property that is licensed to the Company.

Options means all
and any options over shares in the Company, whether vested, exercised, contingent or
otherwise;

Performance
Related Consideration means the 2nd Consideration Payment
the 3rd Consideration Payment and the 4thConsideration Payment
together;

Properties means
the properties set out in Schedule 5;

Purchasers
Accountants means Ernst & Young;

Purchasers
Group means the Purchaser, any holding company of the Purchaser and/or any
subsidiary of the Purchaser or of any holding company of the Purchaser;

Purchasers
Solicitors means Preiskel & Co LLP of 8-10 New Fetter Lane, London, EC4A
1RS.

Retention means
the amount of deduction from the Cash Consideration to be retained by the Purchaser until
the Expiry Date in accordance with clause 5;

SDLT means Stamp
Duty Land Tax introduced under the Finance Act 2003;

SEC means the U.S.
Securities and Exchange Commission.

Service
Agreement means the service agreement between the Company and Roger Stocker,
as set out in its entirety at Schedule 14;

Shares means (a)
collectively in relation to the Vendors, 100% of the entire issued share capital of the
Company on a fully diluted basis, including all Options (Fully Diluted
Basis) and (b) separately in relation to a Vendor, the shares in the Company
held by that Vendor as specified in Schedule 1 and includes any rights of the holder
attaching to, or accruing in relation to, those shares as at the date of this Agreement
and the Completion Date;

7

---

---

Shareholders means
all the holders of the entire issued share capital of the Company including Options whose
Shares and Options are set out in Schedule 1;

Tax and
Taxation has the meaning given to it in the Tax Deed;

TCGA means the
Taxation of Chargeable Gains Act 1992;

Taxes Act
means the Income and Corporation Taxes Act 1988;

Tax
Authority has the meaning given to it in the Tax Deed;

Tax Deed
means the deed in the form set out in Schedule 11;

Tax Statute
means any primary or secondary statute instrument, enactment, order, law, by-law, act,
rule or regulation making any provision for or in relation to Tax including, for the
avoidance of doubt any European Union directive which has direct effect or regulation;

Tax
Warranties means those Warranties set out in paragraph 11 of Schedule 7;

TMA means the
Taxes Management Act 1970;

VATA means
the Value Added Taxes Act 1994;

VAT
Regulations means the Value Added Tax Regulations 1995 (SI 1995/2518);

Vendors
Solicitors means Burges Salmon LLP;

Warranties means
the warranties set out in clause 7 and Schedule 7;

Warrantors
means the Vendors;

|1.2 | Interpretation
and Construction
|--- | -------------------------------

| | In
this Agreement, unless otherwise specified or the context otherwise requires:-
| | ---------------------------------------------------------------------------------

| | (a) | words
importing the singular only shall include the plural and vice versa;
| | --- | --------------------------------------------------------------------------

| | (b) | words
importing the whole shall be treated as including a reference to any part
                    thereof;
| | --- | ------------------------------------------------------------------------------------------------------------

| | (c) | words
importing any gender shall include all other genders;
| | --- | -----------------------------------------------------------

| | (d) | reference
to a Schedule, Appendix, Recital, Clause or Paragraph is to the
                    relevant schedule, appendix, recital, clause or paragraph of this
Agreement;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8

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---

| | (e) | reference
to this Agreement or to any other document is a reference to this
                    Agreement or to that other document as modified, amended, varied,
supplemented,                     assigned, novated or replaced from time to time;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | reference
to any provision of law is a reference to that provision as modified
                    or re-enacted from time to time except to the extent that any
modification or                     re-enactment takes effect after the date of execution
of this Agreement and has                     the effect of increasing or extending any
obligation or liability or otherwise                     adversely affects the rights of
any party to this Agreement;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g) | reference
to any statutory provision is a reference to any subordinate
                    legislation made under that provision from time to time;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | (h) | reference
to any legal term for any action, remedy, method of judicial
                    proceeding, legal document, legal status, court, official or any
legal concept,                     state of affairs or thing shall in respect of any
jurisdiction other than                     England be deemed to include that which most
approximates in that jurisdiction                     to the English legal term.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.3 | Headings
used in this Agreement shall not affect its construction or interpretation.
|--- | ------------------------------------------------------------------------------------

|1.4 | Obligations
and liabilities assumed by more than one person in this Agreement as a single party or
otherwise are assumed jointly and severally unless otherwise specified.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.5 | Other
references
|--- | ----------------

| | In
this Agreement a reference to:-
| | ----------------------------------

| | (a) | in
writing or written includes faxes and any
                    non-transitory form of visible reproduction or words but excludes
electronic                     mail and text messaging via mobile phone;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | a
document being in the agreed form means that it shall be in the
                    form agreed by the Vendors Solicitors and the Purchasers
Solicitors                     and signed or initialled by or on behalf of the Vendor and
the Purchaser for                     identification prior to the Purchasers
execution of this Agreement;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | a
person includes any individual, firm, company, corporation, body
                    corporate, government, state or agency of state, trust or foundation,
or any                     association, partnership or unincorporated body of two or more
of the foregoing                     (whether or not having separate legal personality
and wherever incorporated or                     established);
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9

---

---

| | (d) | a
business day means any day which is not a Saturday, a Sunday or a
                    public holiday in England, Israel or the United States;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | a
subsidiary means a subsidiary as defined in section 736 and 736A
                    of the Companies Act 1985;
| | --- | -------------------------------------------------------------------------------------------------------------------

| | (f) | a
subsidiary undertaking means a subsidiary undertaking as defined
                    in section 258 of the Companies Act 1985;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------

| | (g) | a
holding company  means a holding company as defined in section 736
                    and 736A of the Companies Act 1985; and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------

| | (h) | any
reference to a person being an associate of another shall be
                    interpreted in accordance with section 435 of the Insolvency Act
1986, and a                     person shall be regarded as being connected or
                    associated with any person which is an associate of his
and with any                     company of which any director is an associate of his.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2 | AGREEMENT
FOR SALE
|- | ------------------

|2.1 | Sale
and Purchase
|--- | -----------------

| | Subject
to the terms and conditions of this Agreement, the Vendors shall sell, with full title
guarantee, and the Purchaser shall purchase, as at the Effective Time, the Shares set
opposite their respective names in Schedule 1 representing, upon completion, 100% of the
issued and outstanding share capital of the Company on a Fully Diluted Basis.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.2 | Waiver
of rights
|--- | ----------------

| | The
Vendors hereby waive or agree to procure the waiver of any pre-emption rights which may
exist in relation to the Shares pursuant to the articles of association of the Company or
otherwise.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.3 | Simultaneous
acquisition
|--- | ------------------------

| | On
Completion the Purchaser shall not be obliged to complete the purchase of the Shares
unless the purchase of 100% of the Companys Shares has been completed. If for some
reason, after Completion takes place, it transpires that the Purchaser did not acquire
100% of the Shares on the day of Completion, the completion of the purchase of some of the
Shares shall not affect the rights of the Purchaser with respect to acquiring the entire
amount of any such remaining Shares.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10

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---

|2.4 | Covenants
for title
|--- | -------------------

| | Upon
Completion the Vendors shall be deemed to have given to the Purchaser full title guarantee
in respect of 100% of the issued shares and Options in the Company.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Warrantors warrant and represent that there are no other holders of shares in the Company
and that there are no option holders in the Company. The Warrantors shall indemnify the
Purchaser against all claims and demands and any expenses which may be made or incurred as
a consequence of such warranty and representation not being true and accurate as at the
date of Completion.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3 | PURCHASE
CONSIDERATION
|- | ----------------------

| | Consideration
| | -------------

|3.1 | The
purchase price for the Shares shall be the 1st Consideration Payment, the 2nd Consideration
Payment, the 3rd Consideration Payment and the 4th Consideration Payment, which shall be
satisfied by payment into the VendorsSolicitors client account.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.2 | £180,000 (one
 hundred and eighty  thousand  Pounds)  shall be retained by the  Purchaser  as the
 Retention  in          accordance with clause 5.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------

|4 | CONDITIONS
|- | ----------

|4.1 | Conditions
Precedent
|--- | --------------------

| | Completion
is in all respects conditional upon:
| | -----------------------------------------------

| | (a) | Parents
Board of Directors and, if required under Parents sole
                    discretion, Parents shareholders approving the transaction
contemplated by                     this Agreement;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | the
Purchaser acquiring legal and beneficial ownership of 100% of the entire
                    issued share capital of the Company on a Fully Diluted Basis;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | compliance
by the Warrantors with their obligations set out at clauses 6.2 (c)
                    & (d);
| | --- | ---------------------------------------------------------------------------------------------------------

| | (d) | the
Company having no liabilities (including contingent liabilities) which are
                    outstanding on the part of the Company, other than an overdraft that
is less                     than £200,000 or liabilities not exceeding £10,000
which have arisen                     in the ordinary course of business since the date
to which the Accounts were                     prepared;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11

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---

| | (e) | the
repayment in full prior to completion of all loans made to directors or
                    employees of the Company;
| | --- | -------------------------------------------------------------------------------------------------------------------------

| | (f) | the
overdraft of the Company being no greater than £200,000; and
| | --- | ----------------------------------------------------------------

| | (g) | there
having been no variation or amendment (whether in writing or verbally)
                    made to the terms of the Service Agreement as set out at Schedule 14.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.2 | Waiver
of conditions precedent
|--- | ------------------------------

| | The
Purchaser reserves the right to waive the Condition in clauses 4.1 provided that no such
waiver shall be permitted if the failure to satisfy such condition would constitute a
breach of applicable law.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.3 | Notification
of anticipated failure
|--- | -----------------------------------

| | Each
party shall notify the others immediately in writing on becoming aware of any matter which
may give rise to a condition which they are obliged to satisfy not being fulfilled.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.4 | Failure
to satisfy or waive conditions
|--- | --------------------------------------

| | If
any of the Conditions has not been fulfilled or waived by Completion then, without
prejudice to the accrued rights of the parties arising in respect of the any provisions of
this Agreement, and except for the provisions of clauses 17 (Confidentiality), 18
(Announcements), 20 (Costs), 29 (Governing Law) and 30 (Jurisdiction), this Agreement
shall cease to have effect without any party having any rights or claims towards the other
party and the Cash Consideration shall be returned to the Purchaser within 2 Business
Days..
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5 | RETENTION
|- | ---------

|5.1 | If
prior to the Expiry Date the Purchaser brings any claim against the Warrantors under this
Agreement in respect of which the Warrantors liability has been agreed in writing
or has been determined in the Purchasers favour by a court of competent
jurisdiction, the Purchaser shall be entitled to require the amount of such agreed or
determined liability to be paid immediately to the Purchaser, and such payment shall be
made out of the Retention (up to the amount of the Retention) within two Business Days of
the date on which it becomes due for payment as has been agreed or determined, such
payment being a deduction to any amounts owed by the Warrantors to the Purchaser as a
result of a Relevant Claim.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12

---

---

|5.2 | Subject
to any amounts due to be paid under clause, 5.1, and subject to clauses 5.3 to 5.6
inclusive, such amount of the Retention (less any bank charges payable in respect of such
account) shall be payable to the Vendors Solicitors on the Expiry Date.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.3 | Interest
accruing from time to time on the balance of the Retention shall be added and charges
shall be deducted pro rata to monies paid out of the Retention as and when such monies
are paid out.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.4 | If,
prior to the Expiry Date, the Purchaser has made a written claim under this Agreement
which has not been finally determined (which expression means determined by a court of
competent jurisdiction from which the Warrantors have not appealed within any applicable
time limit), or the Warrantors and the Purchaser have not agreed whether the Warrantors
are liable (a Disputed Claim), there shall be released to the
Warrantors on the Expiry Date the balance of the Retention remaining after deducting such
amount as the Warrantors Agent and the Purchaser shall agree as representing the
value of the Disputed Claim. In the absence of agreement, the amount to be deducted shall
be as determined by an independent accountant (to be agreed between the parties or
failing agreement to be appointed on the application of either party by the President for
the time being of the Institute of Chartered Accountants in England and Wales) as
representing his best estimate of the amount of the claim or claims.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.5 | Any
independent accountant appointed under clause 5.4 shall act as expert and not as
arbitrator and in the absence of manifest error, his determination shall be binding on
the parties. The parties shall bear in equal proportions the costs and expenses of any
accountant appointed under clause 5.4.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.6 | The
amount of the Retention retained under clause 5.4 (the Retained Amount)
shall be held as a continuing security for the Purchaser and shall be released to the
Vendors on the date being the earlier of:
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | the
date being twelve months following the Expiry Date;
| | --- | -------------------------------------------------------

| | (b) | the
date on which the Disputed Claim is settled.
| | --- | ------------------------------------------------

13

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|6 | COMPLETION
|- | ----------

|6.1 | Date
and place
|--- | --------------

| | Completion
shall take place on 11 April 2007, subject to satisfaction of clauses 4.1(a) and subject
to clause 4.2, clauses 4.1(c) and 4.1(d) or such later date as the parties may agree in
writing.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.2 | Warrantorsobligations
|--- | ----------------------

| | At
Completion the  Warrantors shall:
| | ------------------------------------

| | (a) | deliver,
give or make available to the Purchaser the documents listed in
                    Schedule 6 (Completion Documents);
| | --- | -------------------------------------------------------------------------------------------------------------------------------

| | (b) | procure
that a board meeting of the Company is held at which it shall be
                    resolved that:
| | --- | -----------------------------------------------------------------------------------------------------------

| | (i) | each
of the transfers in respect of the Shares be approved for registration and
                    that, subject only to the transfers being duly stamped, the Purchaser
shall be                     registered as the holder of the Shares concerned in the
Companys register                     of members and that share certificates in
respect thereof be executed by the                     Company and delivered to the
Purchaser at Completion;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | the
resignations of Peter Eggleston and Ted Stocker as directors and Elizabeth
                    Stocker as secretary of the Company be tabled and approved;
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | Gideon
Shmuel, Ido Schechter and Arie Rand shall be appointed directors of the
                    Company;
| | ----- | -----------------------------------------------------------------------------------------------------------

| | (iv) | Gideon
Shmuel be appointed as the secretary of the Company;
| | ---- | -----------------------------------------------------------

| | (v) | deliver
bank mandate forms replacing all existing authorities other than those
                    of Roger Stocker and Mark Powell relating to the bank accounts and
instructing                     Nat West Bank to add Ido Schechter and Arie Rand
forthwith to the mandate;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vi) | the
registered offices of the Company be changed to 8 The Square Stockley Park
                    Middlesex UB11 1FW United Kingdom; and
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------

| | (vii) | the
Service Agreement be approved.
| | ----- | ----------------------------------

14

---

---

| | (c) | repay
to the Company all moneys owing as at Completion by the Vendors to the
                    Company whether or not such sums are due for repayment and shall
provide a                     waiver and confirmation that the Vendors are not owed any
amounts by the Company                     whatsoever, including but not limited to
monies by way of dividends, employment,                     shareholders loan,
consultancy or for directors fees;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | procure
the discharge of all guarantees and like obligations given by the
                    Company in respect of the obligations of any other person, save for
the mortgage                     debenture dated November 1998 in favour of National
Westminster Bank PLC; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | execute
the Tax Deed;
| | --- | ---------------------

|6.3 | Purchasers
obligations
|--- | -----------------------

| | At
Completion the Purchaser, subject to compliance by the Warrantors with their completion
related obligations in clause 6.2, shall:
| | ------------------------------------------------------------------------------------------------------------------------------------

| | (a) | pay
the 1st Consideration Payment (less the Retention) by electronic
                    funds transfer to the Vendors Solicitors (the Vendors Solicitors
                    being hereby authorised by the Vendors entitled to the 1st                    Consideration
Payment to receive the 1st Consideration Payment) and
                    payment of the 1st Consideration Payment to the Vendors                    Solicitors
shall constitute a good and complete discharge to the Purchaser in
                    respect of its obligation to pay the 1st Consideration
Payment; and
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | deliver
to the Vendors Solicitors a counterpart of the Tax Deed duly
                    executed by the Purchaser;
| | --- | --------------------------------------------------------------------------------------------------------------------

|6.4 | Sale
of all Shares
|--- | ------------------

| | The
Purchaser shall not be obliged to complete the purchase of any of the Shares unless the
purchase of all the Shares and surrender of Options in whole is completed in accordance
with this Agreement so that the Purchaser acquires the full issued and to be issued share
capital of the Company.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.5 | Failure
to comply
|--- | -----------------

| | (a) | If
in any respect the obligations of either party set out in this clause 6 are
                    not complied with on the date specified in clause 6.1 the parties
shall not be                     obliged to complete this Agreement and may (without
prejudice to their rights                     under this Agreement):
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

15

---

---

| | (i) | defer
Completion to a date not more than forty eight (48) days after that date;
| | --- | -------------------------------------------------------------------------------

| | (ii) | proceed
to Completion as far as practicable (but not including completion of
                    some only of the Shares); or
| | ---- | -----------------------------------------------------------------------------------------------------------------------------

| | (iii) | waive
all or any of the requirements set out in clause 6.2 (if any of the
                    Vendors is the defaulting party) or clause 6.3 (if the Purchaser is
the                     defaulting party) at its discretion by means of a notice to that
effect in                     writing served on the other.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | If
and only if, the party not in default shall have deferred Completion in
                    accordance with clause 6.5(a)(i) for a period of at least twenty one
(21) days                     and the party in default is still unable to comply with the
obligations in this                     clause 6 by such date then the party not in
default may rescind this Agreement.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.6 | Continuing
obligations
|--- | ----------------------

| | The
Warranties and all other provisions of this Agreement in so far as the same shall not have
been performed at Completion shall not be extinguished or affected by Completion, or by
any other event or matter whatsoever, except by a specific and duly authorised written
waiver or release by the Purchaser.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7 | WARRANTIES
BY THE WARRANTORS
|- | ----------------------------

|7.1 | Accuracy
of warranties
|--- | ----------------------

| | Each
of the Warrantors jointly and severally warrants to the Purchaser that, save as fairly
disclosed in the Disclosure Letter, the Warranties are true and accurate in all material
respects as of the date of signing hereof and shall continue to be true and correct as of
the date of Completion.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.2 | Knowledge
of the Warrantors
|--- | ---------------------------

| | Where
any Warranty refers to the knowledge, information or belief of the Warrantors, they
undertake that they have made all reasonable enquiry into the subject matter of the
Warranty.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.3 | Information
supplied to the Warrantors
|--- | --------------------------------------

| | (a) | No
information supplied by or on behalf of any employee, agent or adviser of the
                    Company to the Warrantors in connection with the Warranties or the
preparation                     of the Disclosure Letter shall constitute a warranty or
representation as to the                     accuracy of such information provided
however that the effect and validity of                     any Warranty made by any
Warrantor based upon or in reliance on such information                     shall not be
affected.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

16

---

---

| | (b) | Each
of the Warrantors hereby undertakes to the Purchaser to waive any claim
                    which he may have against any employee, agent or adviser of the
Company in                     respect of any information referred to in clause 7.3(a).
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.4 | Reliance
|--- | --------

| | The
Purchaser has entered into this Agreement in reliance upon the Warranties.
| | ------------------------------------------------------------------------------

|7.5 | Payments
under Warranties to be deemed reduction of consideration
|--- | -----------------------------------------------------------------

| | Any
amount payable under this Agreement for breach of the Warranties shall be deemed to be a
reduction in the consideration payable for the Shares.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------

|8 | LIMITATIONS
OF LIABILITY
|- | ------------------------

|8.1 | Limitation
of Warrantors liability
|--- | -----------------------------------

| | The
provisions of Schedule 8 shall operate to limit the liability of the Warrantors under the
Warranties save those Warranties set out in paragraph 1 of Schedule 7.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.2 | No
limitation in case of fraud etc
|--- | ----------------------------------

| | The
provisions of clause 8.1 shall not operate to limit the liability of the Warrantors where
the liability arises as a result of fraud or gross negligence on the part of any of the
Warrantors the Company or any of the officers or employees of the Company, or any agents
or representatives of the Company or where a matter has been deliberately concealed or
withheld by any of the Warrantors or the Company or any of the officers or employees of
the company or any of the agents or representatives of the Company.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9 | PENSIONS
|- | --------

| | The
provisions of Schedule 4 set out the pension schemes that relate to the Company or any of
its officers or employees.
| | ------------------------------------------------------------------------------------------------------------------------

|10 | NAME
|-- | ----

|10.1 | Prohibition
on use of name
|---- | --------------------------

17

---

---

| | Each
of the Warrantors undertakes that he shall not, and shall procure that no company, in
which he or in which a former director of the Company in the twelve months prior to
completion holds over 5% of the shares, shall:
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | contain
in their name or trade under a name including the words Capture
                    Projects, CPL or any word or words which when read
together                     imply that any such company or business is or may be
connected in any way with                     the Company;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | in
any way hold themselves out as being in any way connected with the Company
                    other than Roger Stocker for as long as he remains an employee; or
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | apply
for registration of any trade mark or domain name that includes the words
                    Capture Projects or any word or words which when read together imply
that any                     such company or business is or may be connected in any way
with the Company or                     any word or words used in any trade mark or
domain name owned or used by the                     Company or any member of the group.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11 | FUTURE
ACTIVITIES
|-- | -----------------

|11.1 | Restrictions
on Warrantors
|---- | --------------------------

| | For
the purpose of assuring to the Purchaser the full benefit of the goodwill and connections
of the Company each of the Warrantors agrees with the Purchaser that he will not and shall
procure that no person who was a director of the Company in the twelve months prior to
completion will not:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | at
any time following Completion disclose to any person or use for any purpose,
                    and shall use all reasonable endeavours to prevent the publication or
disclosure                     of, any Confidential Information except:
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | where
the Confidential Information concerned enters the public domain otherwise
                    than as a result of a breach by the Warrantors of their obligations
under this                     clause 11.1; or
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | if
and to the extent that use or disclosure is made:
| | --- | ----------------------------------------------------

| | (i) | in
compliance with any requirement of law or regulation or pursuant to the order
                    of a court of competent jurisdiction; or
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------

18

---

---

| | (ii) | in
response to a requirement of the regulations of a recognised stock exchange
                    or any other applicable regulatory authority;
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | for
a period of 18 months following Completion either on his own account or
                    through any other person, so as to compete with the Business,
directly or                     indirectly solicit, interfere with, or endeavour to
entice away from the                     Purchaser any person who is immediately prior to
Completion or has, during the                     two years preceding Completion, been a
customer of the Company;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | for
a period of 18 months following Completion either on his own account or
                    through any other person, directly or indirectly solicit, interfere
with, or                     endeavour to entice away from the Purchaser any person who
is immediately prior                     to Completion or has, during the two years
preceding Completion, been an                     employee of the Company.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.2 | Severability
|---- | ------------

| | Each
of the Warrantors agrees that they consider that the restrictions contained in this clause
are no greater than is reasonable and necessary for the protection of the interests of the
Purchaser but if any such restriction shall be held to be void but would be valid if
deleted in part or reduced in application, such restriction shall apply with such deletion
or modification as may be necessary to make it valid and enforceable.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12 | POST
COMPLETION MATTERS
|-- | -----------------------

| | The
provisions of Schedule 9 shall apply to the Purchaser for the period commencing on the
Completion Date and ending on 31 December 2007.
| | ------------------------------------------------------------------------------------------------------------------------------------------

|13 | ASSIGNMENT
|-- | ----------

| | No
party shall without the prior written consent of the other parties assign, transfer or
otherwise delegate (in whole or in part) the benefit of or the rights or the obligations
under this Agreement.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|14 | SUCCESSORS
AND ASSIGNS
|-- | ----------------------

| | This
Agreement shall be binding on and enure for the benefit of the successors and permitted
assigns of the parties.
| | --------------------------------------------------------------------------------------------------------------------

19

---

---

|15 | FURTHER
ASSURANCE
|-- | -----------------

| | The
Vendors shall take all necessary steps and co-operate fully with the Purchaser to ensure
that it obtains the full benefit of this Agreement and shall execute such documents and
take such other steps (or procure other necessary parties to take such steps) as are
necessary or appropriate for vesting in the Purchaser all its rights and interests in the
Shares and the full benefit of this Agreement.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|16 | TIME
OF THE ESSENCE
|-- | -------------------

| | Time
shall be of the essence in this Agreement.
| | -----------------------------------------------

|17 | CONFIDENTIALITY
|-- | ---------------

|17.1 | Prohibition
on disclosure
|---- | -------------------------

| | Each
of the parties hereby undertakes with the others, that it shall preserve the
confidentiality of, and not directly or indirectly use, otherwise than for the purposes of
this Agreement, or disclose, details of the provisions or subject matter of this Agreement
or any information obtained by such party about the other parties business as a
result of negotiating, entering into or performing its obligations under this Agreement
except:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | in
the circumstances set out in clause 17.2 below; or
| | --- | -----------------------------------------------------

| | (b) | with
the prior written consent of the party to whose affairs such confidential
          information relates.
| | --- | -------------------------------------------------------------------------------------------------------------

|17.2 | Permitted
disclosures
|---- | ---------------------

| | The
circumstances referred to in clause 17.1 above are:
| | -------------------------------------------------------

| | (a) | where
the confidential information enters the public domain otherwise than as a
               result of a breach by any of the parties of its obligations in this clause
17;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | if
and to the extent that disclosure is made:
| | --- | ---------------------------------------------

| | (i) | in
compliance with any requirement of law or regulation or pursuant to the order
               of a court of competent jurisdiction; or
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | in
response to a requirement of the rules and/or regulations of the SEC, NASDAQ
               or any other recognised stock exchange or applicable regulatory authority
or                regulatory or governmental or fiscal body (including any
self-regulatory                organisation);
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

20

---

---

| | (iii) | required
by contractual obligations existing at the date hereof;
| | ----- | ----------------------------------------------------------------

| | (iv) | required
to vest the full benefit of this Agreement and any document to be                executed
pursuant to this Agreement in either party;
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------

| | (v) | disclosed
only to the professional advisers, auditors, insurers or bankers of                each
party under suitable conditions of confidentiality; or
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vi) | the
information was lawfully in that partys possession prior to its
               disclosure to such party by the other party;
| | ---- | --------------------------------------------------------------------------------------------------------------------------------

| | (vii) | provided
that any such information used or disclosable pursuant to this clause                17
(save for clauses (v) and (vi)) shall, so far as reasonably practicable, be
               used or disclosed only after consultation with the non-disclosing parties.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.3 | No
time limit
|---- | -------------

| | The
restrictions contained in clause 17 shall continue to apply after Completion without
limit of time.
| | -------------------------------------------------------------------------------------------------------

|18 | ANNOUNCEMENTS
|-- | -------------

|18.1 | Prohibition
on announcements
|---- | ----------------------------

| | Subject
to clause 18.2 and whether or not any restriction contained in clause 17 applies, no
announcement or disclosure concerning the matters provided for in this Agreement shall be
made or issued by or on behalf of any party without the prior written approval of the
others.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18.2 | Exceptions
|---- | ----------

| | The
provisions of clause 18.1 shall not apply to any matters required to be made:
| | ---------------------------------------------------------------------------------

| | (a) | in
compliance with any requirement of law or regulation or pursuant to the order
                    of a court of competent jurisdiction; or
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------

21

---

---

| | (b) | in
response to a requirement of the regulations of a recognised stock exchange
                    or other applicable regulatory authority or regulatory or
governmental or fiscal                     body (including any self-regulatory
organisation).
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18.3 | No
time limit
|---- | -------------

| | The
restriction contained in this clause 18 shall continue to apply after Completion without
limit of time.
| | -----------------------------------------------------------------------------------------------------------

|19 | INDEMNITY
|-- | ---------

|19.1 | For
the purposes of this clause:
|---- | --------------------------------

| | (a) | CPL
Employee shall mean an employee or consultant of the
                    Company who, at any time prior to Completion, held options pursuant
to the                     Companys Enterprise Management Incentive Option Scheme;
and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Claim shall
mean the commencement of legal proceedings                     against the Purchaser, CPL
or TIS UK by a CPL Employee;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------

|19.2 | Each
of the Warrantors shall indemnify the Purchaser (including its reasonable legal costs) in
respect of all successful Claims made within the three year period following Completion
as a consequence of:
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | any
claim (including any employment related claim) in which an option holder,
                    employee or former employee of the Company at any time makes that
refers to the                     fact that it has suffered loss or not been adequately
compensated by means of                     the surrender of Options.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | any
tax (including any National Insurance Contributions) liability of the
                    Company resulting from the exercise of the options comprised within
the Pool or                     from any exercise of Options, to the extent that the
liability has not been                     satisfied by option holder.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20 | COSTS
|-- | -----

| | All
expenses incurred by or on behalf of the parties, including all fees of professional
advisers employed by either of the parties in connection with the negotiation, preparation
and execution of this Agreement shall be borne solely by the party which incurred them.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

22

---

---

|21 | TAX
|-- | ---

|21.1 | Stamp
duty
|---- | ----------

| | The
Purchaser will be responsible for the payment of all stamp duty in respect of this
Agreement and the carrying into effect of this Agreement.
| | ------------------------------------------------------------------------------------------------------------------------------------------------

|22 | AMENDMENTS
AND WAIVER
|-- | ---------------------

|22.1 | Amendments
|---- | ----------

| | No
amendment or variation of this Agreement or any of the documents referred to in it shall
be effective unless it is in writing and signed by or on behalf of each of the parties.
References in this Agreement to documents in the agreed form shall, where
appropriate, be construed as references to such documents as so amended.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|22.2 | Waivers
and remedies
|---- | --------------------

| | (a) | The
rights of each party under this Agreement:-
| | --- | -----------------------------------------------

| | (i) | are
in addition to and not exclusive of rights or remedies under any applicable
                    law; and
| | --- | ------------------------------------------------------------------------------------------------------------

| | (ii) | may
be waived only in writing and specifically.
| | ---- | -----------------------------------------------

| | (b) | Delay
in exercising or non-exercise of any right or remedy under this Agreement
                    is not a waiver of that right or remedy.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Partial
exercise of any right or remedy under this Agreement shall not preclude
                    any further or other exercise of that right or remedy or any other
right or                     remedy under this Agreement.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | Waiver
of a breach shall not operate as a waiver of any subsequent breach.
| | --- | --------------------------------------------------------------------------

|23 | ENTIRE
AGREEMENT
|-- | ----------------

|23.1 | Entire
agreement
|---- | ----------------

| | (a) | Subject
always to Clause 24, each party acknowledges and agrees with the other
                    that this Agreement together with the Disclosure Letter and any other
agreements                     entered into pursuant to this Agreement (together the
Sale                     Documents) constitutes the entire agreement and
understanding between the                     parties in connection with the arrangements
contemplated by this Agreement and                     supersedes and extinguishes any
Pre-Contractual Statement not expressly set out                     in the Sale
Documents;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

23

---

---

| | (b) | he/it
has not entered into the Sale Documents in reliance upon any
                    Pre-Contractual Statement not expressly set out therein;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | he/it
shall not have any rights or remedies in relation to any Pre-Contractual
                    Statement not expressly set out in the Sale Documents.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

|23.2 | This
Clause shall not exclude any liability in respect of any Pre-Contractual Statements made
or given fraudulently or dishonestly by any party.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------

|23.3 | In
this clause Pre-Contractual Statement means any promise, warranty,
representation, covenant, undertaking, agreement, term or condition or statement of
whatever nature (including the heads of terms made between the Vendors and Purchaser and
dated ?) relating to the arrangements contemplated by this Agreement made or given by any
party or on their behalf at any time prior to the execution of this Agreement.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|24 | FRAUD
|-- | -----

| | This
clause shall not exclude any liability which any party would otherwise have to the other
or any right which either of them may have to rescind this Agreement in respect of any
statements made fraudulently by the other prior to the execution of this Agreement or any
rights which either of them may have in respect of fraudulent concealment by the other.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|25 | SURVIVAL
OF OBLIGATIONS
|-- | -----------------------

| | Notwithstanding
Completion each and every right and obligation of the Purchaser and the Vendors under this
Agreement shall, except in so far as fully performed at Completion, continue in full force
and effect.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|26 | RIGHTS
OF THIRD PARTIES
|-- | -----------------------

|26.1 | No
third party rights
|---- | ---------------------

| | A
person who is not a party to this Agreement has no rights under the Contracts (Rights of
Third Parties) Act 1999 to enforce, or to enjoy the benefit of, any term of this
Agreement.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

24

---

---

|27 | NOTICES
|-- | -------

|27.1 | Writing
|---- | -------

| | All
notices between the parties with respect to this Agreement shall be in writing and signed
by the party giving it.
| | ---------------------------------------------------------------------------------------------------------------------

|27.2 | Service
|---- | -------

| | Any
notice referred to in clause 27 shall be served by delivering it:
| | ---------------------------------------------------------------------

| | (a) | by
hand;
| | --- | --------

| | (b) | by
sending it by first-class pre-paid post (with a soft copy by email to the
                    addressee) , recorded delivery or registered delivery; or
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | by
fax,
| | --- | -------

| | to
the address of the addressee set out below, or to such other address as the addressee may
from time to time have notified for the purpose of this clause.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------

27.3 Deemed delivery

| | A
notice shall take effect from the time received or, if earlier, the time of deemed receipt
in accordance with this clause, unless a later time is specified in it. Notices shall be
deemed to have been received:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | if
delivered by hand, on the day of delivery;
| | --- | ---------------------------------------------

| | (b) | if
sent by first-class pre-paid post, recorded or registered delivery two (2)
                    business days after posting exclusive of the day of posting;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | if
sent by fax, at the time of transmission unless received after normal office
                    hours in the place of receipt in which case it shall be deemed to
have been                     received on the next business day in the place of receipt.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|27.4 | Proof
of service
|---- | ----------------

| | In
proving service:
| | -------------------

| | (a) | of
delivery by hand, it shall be necessary only to produce a receipt for the
                    communication signed by or on behalf of the addressee;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------

25

---

---

| | (b) | by
post, it shall be necessary only to prove that the communication was
                    contained in an envelope which was duly addressed and posted in
accordance with                     this clause; and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | by
fax, it shall be necessary only to produce the senders transmission
                    slip bearing the addressees fax number showing the fax received
by the                     addressee.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|27.5 | Addresses
for notices
|---- | ---------------------

| | The
addresses and fax numbers of the parties for the purposes of this clause are:
| | ---------------------------------------------------------------------------------

| |                                           |                                  
| | ----------------------------------------- | ---------------------------------
| | The Vendors                               |                                  
| | Address:                                  | c/o Roger Stocker                
| |                                           | Fairfield, Knaresborough Road,   
| |                                           | Little Ribston,                  
| |                                           | N Yorks, LS22 4ET                
| |                                           | Fax +44 1676 542350:             
| |                                          
| | The Purchaser or the Parent              
| | Address:                                  | 2 Habarzel Street, Tel Aviv 69710
| |                                           | Israel                           
| | For the attention of:                     | Arie Rand                        
| | Fax number:                               | + 972 3 6846664                  
| |                                          
| | With a copy to the Purchaser's Solicitors

|27.6 | Electronic
transmission
|---- | -----------------------

| | (a) | Any
notice given under this Agreement shall not be validly served if only sent
                    by electronic mail, by text messaging via mobile phone or other
electronic means                     other than fax.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
Vendors hereby acknowledge their consent to receive from TIS materials which
                    are sent from time to time to shareholders, such as Annual Report and
Proxy                     Statement, via electronic mail. The E-mail addresses of the
Vendors are set out                     in [Schedule 1].
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|28 | COUNTERPARTS
|-- | ------------

|28.1 | Execution
in counterparts
|---- | -------------------------

| | This
Agreement may be signed in any number of counterparts and by the parties on separate
counterparts, but shall not be effective until each party has signed at least one
counterpart.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

26

---

---

|28.2 | One
Agreement
|---- | -------------

| | Each
counterpart shall constitute an original of this Agreement but all counterparts shall
together constitute one and the same agreement.
| | ------------------------------------------------------------------------------------------------------------------------------------------

|29 | GOVERNING
LAW
|-- | -------------

| | This
Agreement shall be governed by and construed in accordance with the laws of England,
without regard to conflicts of laws.
| | ------------------------------------------------------------------------------------------------------------------------------

|30 | JURISDICTION
|-- | ------------

| | In
relation to any legal action or proceedings arising out of or in connection with this
Agreement, including all questions as to the interpretation and performance hereof, this
Agreement shall be governed by the substantive laws the England and Wales, without regard
to principles of conflict of laws that would require the application of the laws of any
other jurisdiction provided however that any issues related to the issuance of shares or
options in TIS, shall be governed by the US applicable law and regulations including
NASDAQ rules. Any claims or proceedings brought by the Vendors in connection with this
Agreement shall be served only in and finally settled under the exclusive jurisdiction of
the courts of the State of Israel, whereas any claims or proceedings brought by TIS or the
Purchaser in connection with this Agreement shall be served only in and finally settled
under the exclusive jurisdiction of the courts of England and Wales provided however that
in any event, claims related to the issuance of shares or options in TIS shall be served
only in and finally settled under the exclusive jurisdiction of the courts of the State of
New York.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

IN WITNESS whereof this Agreement has
been duly entered into as a deed on the date first above written

|                             |                                             
|---------------------------- | --------------------------------------------
|SIGNED as a DEED by          | )                                           
|TOP IMAGE SYSTEMS LIMITED    | )                                           
|acting by:                   | )...........................................
|                             | Director                                    
|                            
|                             | ........................................... 
|                             | Director/Secretary                          
|                            
|                            
|SIGNED as a DEED by          | )                                           
|TOP IMAGE SYSTEMS UK LIMITED | )                                           
|acting by:                   | )...........................................
|                             | Director                                    
|                            
|                             | ........................................... 
|                             | Director/Secretary                          

27

---

---

|                           |                                                      
|-------------------------- | -----------------------------------------------------
|SIGNED and DELIVERED       | )                                                    
|as a Deed by ROGER STOCKER | )                                                    
|in the presence of:        | )....................................................
|                           | Signature of Roger Stocker                           

|                   |                                            
|------------------ | -------------------------------------------
|Witness Signature: | ...........................................
|                   |                                            
|Name:              | ...........................................
|                   |                                            
|Address:           | ...........................................
|                   |                                            
|                   | ...........................................
|                   |                                            
|                   | ...........................................
|                   |                                            
|Occupation:        | ...........................................

|                                           |                                                      
|------------------------------------------ | -----------------------------------------------------
|SIGNED and DELIVERED                       | )                                                    
|as a Deed by ROGER STOCKER as attorney for | )                                                    
|EDWARD STOCKER under a power of attorney   | )                                                    
|dated 27 February 2007                     | )                                                    
|in the presence of:                        | )....................................................
|                                           | Signature of Roger Stocker                           
|                                           | as attorney for Edward Stocker                       

|                   |                                            
|------------------ | -------------------------------------------
|Witness Signature: | ...........................................
|                   |                                            
|Name:              | ...........................................
|                   |                                            
|Address:           | ...........................................
|                   |                                            
|                   | ...........................................
|                   |                                            
|                   | ...........................................
|                   |                                            
|Occupation:        | ...........................................

28

---

---

Schedule 1

The Vendors

|Shareholders   | CPL Shares held                       | Percentage of Total IssuedCPL shares(%)
|-------------- | ------------------------------------- | ---------------------------------------
|Roger Stocker  | 92,390 Ordinary Shares of £0.10 each  | 32.589065                              
|Edward Stocker | 191,110 Ordinary Shares of £0.10 each | 67.410935                              

29

---

---

# Schedule 2

The Company

Part A

|                                                     |                                                                   
|---------------------------------------------------- | ------------------------------------------------------------------
|Name:                                                | Capture Projects Limited                                          
|                                                    
|Registered Number:                                   | 3613282                                                           
|                                                    
|Previous Names:                                      | None                                                              
|                                                    
|Date and Place of incorporation:                     | 11/08/1998 England & Wales                                        
|                                                    
|Registered office:                                   | 1 Wharfe Mews, Cliffe Terrace, Wetherby West Yorkshire LS22 6LX   
|                                                    
|Authorised share capital:                            | £1,000,000 divided into: 10,000,000 Ordinary Shares of £0.10p each
|                                                    
|Issued share capital:                                | 283,500 Ordinary Shares of £0.10p each                            
|                                                    
|Shareholders:                                       
|                                                    
|Name                                                 | No. of shares                                                     
|Edward Stocker                                       | 191,110 Ordinary                                                  
|Roger John Stocker                                   | 92,390 Ordinary                                                   
|Directors (full names, addresses and date of birth): | Peter William Eggleston                                           
|                                                     | 49 Salisbury Road                                                 
|                                                     | Redland                                                           
|                                                     | Bristol                                                           
|                                                     | BS6 7AS                                                           
|                                                    
|                                                     | DOB: 13/06/1961                                                   
|                                                    
|                                                     | Edward John Stocker OBE                                           
|                                                     | Red Hill Farm Wood End Lane                                       
|                                                     | Fillongley                                                        
|                                                     | Warwickshire                                                      
|                                                     | CV7 8DB                                                           
|                                                    
|                                                     | DOB: 24/04/1939                                                   
|                                                    
|                                                     | Roger John Stocker                                                
|                                                     | Fairfield                                                         
|                                                     | Knaresborough Road                                                
|                                                     | Little Ribston                                                    
|                                                     | North Yorkshire                                                   
|                                                     | LS22 4ET                                                          
|                                                    
|                                                     | DOB: 20/03/1967                                                   

30

---

---

|                                    |                                                                                                  
|----------------------------------- | -------------------------------------------------------------------------------------------------
|Secretary (full name and address):  | Elizabeth Louise Stocker                                                                         
|                                    | Fairfield                                                                                        
|                                    | Knaresborough Road                                                                               
|                                    | Little Ribston                                                                                   
|                                    | North Yorkshire                                                                                  
|                                    | LS22 4ET                                                                                         
|                                   
|                                    | DOB: 25/02/1968                                                                                  
|                                   
|Accounting reference date:          | 31 December                                                                                      
|                                   
|Auditors:                           | Peter Howard Foreman & Co                                                                        
|                                   
|Charges, debentures and guarantees: | Mortgage Debenture in favour of National Westminster Bank PLC (all monies) dated 26 November 1998

Part B

The Warrantors warrant that the
Company has no subsidiaries.

31

---

---

# Schedule 3

The Intellectual
Property

Registered UK Trade Mark no. 221
6583 for E-POSITORY in classes 09 and 42

Registered Community Trade Mark no.
002021236 for AUGANISER in Classes 09 and 42

Registered Community Trade Mark no.
002019743 for AUGUST ADVANCE in Classes 09 and 42

The rights to the
www.captureprojects.com domain name registration

All business and trade secrets,
confidential information owned, developed or otherwise acquired by the Company.

32

---

---

# Schedule 4

The Pension Schemes

The Warrantors warrant that there are
no occupational pension schemes, nor personal pension plans in operation that relate to
the Companys officers or employees other than: those referred to in the Disclosure
Letter.

33

---

---

# Schedule 5

The Properties

Part A

Freehold Properties

There are no freehold properties.

The leasehold properties are: set out
in Part B to this Schedule.

Part B

Leasehold Properties

Property 1

Date: 31 August 2001

|Property: |  | Unit
3 Waterside, Wetherby
|--------- |  | --------------------------

|Parties: |  | (1)
A P Walker, T C Rush and R N Pudney ;
|-------- |  | -----------------------------------------

| |  | (2)
Esteem Systems Plc
| |  | ----------------------

Property 2

|Date: |  | 5
September 2002 [expires 20 April 07]
|----- |  | --------------------------------------

|Property: |  | First
Floor, Lanes House, 66-68 Bristol Road, Portishead
|--------- |  | --------------------------------------------------------

|Parties: |  | (1)
Terence Vaughan Crumpton, Susan Crumpton and Brunel Trustees Limited; and
|-------- |  | -----------------------------------------------------------------------------

| |  | (2)
the Company
| |  | ---------------

34

---

---

# Schedule 6

Completion Documents

|1 | Duly
executed transfers of the Shares in favour of the Purchaser together with the relative
share certificates or indemnities in the agreed form in respect of lost share
certificates.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2 | Such
waivers or consents as the Purchaser may require to enable the Purchaser or its nominees
to be registered as holders of the Shares or shares in the Subsidiaries.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3 | Power
of attorney in the agreed form and the Tax Deed duly executed by the Warrantors.
|- | --------------------------------------------------------------------------------------

|4 | The
resignations as deeds of each of, Peter Eggleston and Ted Stocker as directors of the
Company in which each of them shall acknowledge in the agreed terms set out in Schedule
12 that he or she has no claims against the Company for compensation for loss of
employment or office or otherwise.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5 | The
resignation as a deed of Elizabeth Stocker set out in Schedule 12 as the secretary of the
Company in which she shall acknowledge in the agreed terms that she has no claims against
the Company for compensation for loss of office or otherwise.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6 | All
the statutory books of the Company (which shall be written up to date) together with its
certificate of incorporation (and any certificate of incorporation on change of name) and
common seals.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7 | The
leases and other title documents relating to the Properties.
|- | ----------------------------------------------------------------

|8 | The
Service Agreement duly executed by Roger Stocker.
|- | -----------------------------------------------------

|9 | bank
mandate forms replacing all existing authorities other than those of Roger Stocker and
Mark Powell relating to the bank accounts plus bank mandates instructing Nat West Bank to
add Ido Schechter and Arie Rand forthwith to the mandate and copies of statements of each
bank account of the Company made up to a date not earlier than two business days before
Completion.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10 | Certified
 copies of the board  minutes  of the  Company in respect  of the board  meetings  held
to approve  the Agreement.
|-- | ----------------------------------------------------------------------------------------------------------------------------

|11 | Evidence
of the due fulfilment of the conditions specified at clause 4.1 (to the extent relevant).
|-- | --------------------------------------------------------------------------------------------------

35

---

---

|12 | Duly
executed powers of attorney, stock transfer forms and exercise of Options, evidencing the
transfer to the Vendors of 100% of the issued shares of the Company and confirming that
there are no options (whether vested, exercised, contingent or otherwise) outstanding as
at Completion.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13 | A
legal opinion from the Vendors' solicitors in the form set out in Schedule 13.
|-- | --------------------------------------------------------------------------------

36

---

---

# Schedule 7

The Warranties

|1 | AUTHORITY,
CAPACITY AND TITLE
|- | -----------------------------

|1.1 | Authority
and Capacity of the Warrantors:
|--- | -----------------------------------------

| | Each
of the Warrantors has full power and authority to enter into and perform this Agreement
and the Tax Deed and this Agreement and the Tax Deed when executed will constitute valid
and binding obligations on each Warrantor, in accordance with their respective terms.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.2 | Ownership
of the Shares
|--- | -----------------------

| | (a) | The
Warrantors are entitled to negotiate and sell and transfer to the Purchaser
                    the full legal and beneficial ownership of 100% of CPL shares, on a
Fully                     Diluted Basis, without the further consent of any third party.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | No
person has the right (whether exercisable now or in the future and whether
                    contingent or not) to call for the allotment, issue, sale or transfer
of any                     share or loan capital of the Company under any option or other
agreement                     (including conversion rights and rights of pre-emption) and
there are no claims,                     charges, liens, equities or encumbrances on the
shares of the Company.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2 | SUPPLY
OF INFORMATION
|- | ---------------------

|2.1 | Accuracy
and adequacy of information disclosed to the Purchaser.
|--- | ----------------------------------------------------------------

|2.2 | All
information contained in this Agreement, the Disclosure Letter (but not its attachments),
the answers to the Purchasers due diligence questions letter dated 7 September
2006, submitted by Roger Stocker by email on 5 February 2007, plus all other information
provided to the Purchaser in email or otherwise in writing during the due diligence
process was when given true, complete and accurate in all material respects and none of
the Warrantors is aware of any fact or matter or circumstances not disclosed in writing
to the Purchaser which renders any such information materially untrue, inaccurate or
misleading as of the date of Completion.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.3 | The
copies of the Accounts, the Management Accounts and the memorandum and articles of
association of the Company delivered to the Purchaser are complete and accurate copies of
the originals thereof and, in the case of the memorandum and articles of association,
contain full details of the rights and restrictions attaching to the share capital of the
Company and have attached to them. The attachments to the Disclosure Letter contain
copies of all such resolutions and agreements as are required by law to be delivered to
the Registrar of Companies for registration and all other resolutions passed by the
Company or any class of members, other than resolutions relating to ordinary business at
any annual general meeting of the Company.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

37

---

---

|3 | ACCOUNTS
AND RECORDS
|- | --------------------

|3.1 | Latest
Accounts
|--- | ---------------

| | The
Accounts have been prepared in accordance with the law and on a basis consistent with that
adopted in preparing the Accounts for the previous two financial periods/period commencing
1 January 2005 to 31 December 2006 and in accordance with accounting principles, standards
and practices generally accepted at the date of this Agreement in the United Kingdom so as
to give a true and fair view of the state of affairs of the Company at the Balance Sheet
Date and of the profits or losses for the period concerned and as at that date make:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | appropriate
provision for all actual liabilities;
| | --- | -------------------------------------------------

| | (b) | proper
provision (or note in accordance with good accountancy practice) for all
          contingent liabilities; and
| | --- | ---------------------------------------------------------------------------------------------------------------------

| | (c) | provision
reasonably regarded as adequate for all bad and doubtful debts.
| | --- | -------------------------------------------------------------------------

|3.2 | Extraordinary
Items
|--- | -------------------

| | The
profits of the Company for the two years ended on the Balance Sheet Date as shown by the
Accounts and the trend of profits thereby shown have not (except as disclosed in such
accounts) been affected by inconsistencies in accounting practices, by the inclusion of
non-recurring items of income or expenditure, by transactions entered into otherwise than
on normal commercial terms or by any other factors or extraordinary items rendering such
profits for all or any of such periods exceptionally high or low.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.3 | Book
Debts
|--- | ----------

| | None
of the book debts which were included in the Accounts or which have subsequently arisen
have been outstanding for more than three months from their due dates for payment or have
been released on terms that the debtor has paid less than the full value of his debt and
all such debts have realised or will realise in the normal course of collection their full
value as indicated in the Accounts or in the books of the Company after taking into
account the provision for bad and doubtful debts made in the Accounts. For the avoidance
of doubt, a debt shall not be regarded as realising its full value to the extent that it
is paid, received or otherwise recovered in circumstances in which such payment, receipt
or recovery is or may be void, voidable or otherwise liable to be reclaimed or set aside.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

38

---

---

|3.4 | Accounting
and Other Records
|--- | ----------------------------

| | The
statutory books, books of account and other records of whatsoever kind of the Company are
up-to-date and maintained in accordance with all applicable legal requirements on a proper
and consistent basis and contain adequate records of all matters required to be dealt with
in such books and all such books and records. All accounts, documents and returns required
by law to be delivered or made to the Registrar of Companies have been delivered or made.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.5 | The
Management Accounts
|--- | -----------------------

| | The
Management Accounts have been prepared in good faith with reasonable skill and care and on
bases and principles which are consistent with those used in the preparation of the
unaudited management accounts of the Company for the financial year ended on the Balance
Sheet Date.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.6 | Changes
since the Balance Sheet Date
|--- | ------------------------------------

| | Since
the Balance Sheet Date:
| | -----------------------------

| | (a) | the
Companys business has been carried on in the ordinary course, without
                    any interruption or alteration in its nature, scope or manner, and so
as to                     maintain the same as a going concern;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | the
Company has not entered into any transaction or assumed or incurred any
                    liabilities (including contingent liabilities) or made any payment
not provided                     for in the Accounts otherwise than in the ordinary
course of carrying on its                     business;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | the
Companys profits have not been affected by inconsistencies in
                    accounting practices, by the inclusion of non-recurring items of
income or                     expenditure, by transactions entered into otherwise than on
normal commercial                     terms or by any other factors;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

39

---

---

| | (d) | the
Company has not entered into any unusual, long term or onerous commitments
                    or contracts;
| | --- | ----------------------------------------------------------------------------------------------------------------

| | (e) | the
Companys business has not been materially and adversely affected by
                    fluctuations in monthly sales figures in excess of £10,000 per
month and                     the Warrantors have not received any notice of any facts
which are likely to                     give rise to any such effects;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | no
dividend or other distribution has been declared, made or paid to the
                    Companys members;
| | --- | ---------------------------------------------------------------------------------------------------------------

| | (g) | the
Company has not allotted or issued or agreed to issue any share or loan
                    capital; and
| | --- | ------------------------------------------------------------------------------------------------------------

| | (h) | the
Company has not made or received any surrender relating to group relief or
                    the benefit of advance corporation tax.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------

|4 | FINANCE
|- | -------

|4.1 | Borrowings
|--- | ----------

| | (a) | The
amounts borrowed by the Company (as determined in accordance with the
                    provisions of the relevant instrument) do not exceed any limitation
on its                     borrowing contained in its Articles of Association or in any
debenture or other                     deed or document binding upon it.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
Company has no outstanding loan capital, nor has it factored any of its
                    debts, or engaged in financing of a type which would not require to
be shown or                     reflected in the Accounts or borrowed any money which it
has not repaid, save                     for borrowings disclosed in the Disclosure
Letter.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Full
particulars of all bank accounts of the Company are contained in the
                    Disclosure Letter including the credit or debit balances (reconciled
to show all                     unpresented cheques) as of a date not more than two days
prior to the date of                     this Agreement since which no payment has been
made or instructed to be made out                     of, or cheques drawn on, such
accounts.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

40

---

---

| | (d) | Full
particulars of all debentures, acceptance credits, overdraft, loans or
                    other financial facilities outstanding or available to the Company
are contained                     in the Disclosure Letter and there are attached to it
accurate copies of all                     documents relating to such facilities and
neither the Vendor[s] nor the Company                     has done anything whereby the
continuance of any such facilities in full force                     and effect might be
affected or prejudiced.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.2 | Liabilities
|--- | -----------

| | There
are no liabilities (including contingent liabilities) which are outstanding on the part of
the Company, other than those liabilities disclosed in the Accounts or liabilities not
exceeding £10,000 which have arisen in the ordinary course of business since the
date to which such accounts were prepared.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5 | BANK
ACCOUNTS
|- | -------------

| | Full
written details of all bank accounts of the Company are contained in the Disclosure
Letter, including copy statements of each account being not more than two days old, to
Completion and together with details of all current outgoing standing orders, direct
debits or similar instructions.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6 | INSURANCE
|- | ---------

| | Particulars
of the insurances of the Company are contained in the Disclosure Letter and in respect of
all such insurances:
| | --------------------------------------------------------------------------------------------------------------------------

| | (a) | all
premiums have been duly paid to date;
| | --- | -----------------------------------------

| | (b) | full
details of all claims outstanding or expected have been disclosed to the
          Purchaser.
| | --- | --------------------------------------------------------------------------------------------------

|7 | CONTRACTS
|- | ---------

| | Written
details of all material current contracts of the Company (that is ones representing
£10,000 per annum) and the standard terms and conditions for customers have been
supplied to the Purchaser and are contained in the Disclosure Letter. All such contracts
are on arms length terms and in the ordinary course of business and do not contain any
change of control or similar provisions.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

41

---

---

|8 | CUSTOMERS
|- | ---------

| | So
far as the Warrantors are aware the entry into this Agreement will not result in the loss
by the Company of any customer/s or supplier/s representing 5% or more of such
companys sales or purchases.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9 | LEGAL
MATTERS
|- | -------------

|9.1 | Litigation
|--- | ----------

| | Details
of all current claims made by or against the Company have been fully disclosed to the
Purchaser and are contained in the Disclosure Letter. There are no circumstances likely to
lead to any such claims which have not been disclosed to the Purchaser in writing.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.2 | Avoidable
Transactions
|--- | ----------------------

| | The
Company has not been party to any transactions which in the event of the insolvency of the
Company could lead to such transaction being voidable or otherwise set aside.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.3 | Warranties
and Indemnities
|--- | --------------------------

| | Full
details of the Companys terms and conditions of sale or warranty have been supplied
to the Purchaser and no product has been supplied or sold or service provided on any other
terms.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.4 | Directors
and Officers
|--- | ----------------------

| | Details
of the Companys directors and other officers appear in Schedule 2 and none of such
persons has at any time been bankrupt in any jurisdiction or subject to a disqualification
order.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10 | EMPLOYEES,
ETC
|-- | --------------

|10.1 | Particulars
|---- | -----------

| | Particulars
of the start dates, notice periods, remuneration, benefits and other entitlements of all
current employment or consultancy arrangements of the Company with any person are
contained in the Disclosure Letter. There are no actual, pending or potential claims
resulting from the termination of any employment or consultancy.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

42

---

---

|10.2 | Pensions
|---- | --------

| | There
are no pension or similar schemes operated or proposed by the Company for any Employee or
former employee and details of any sickness, accident, life cover, permanent health or
other scheme currently available or offered to Employees are set out in the Disclosure
Letter. There are no current proposals to create any new, or enhance the current, such
benefits for employees.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.3 | Recent
Terminations
|---- | -------------------

| | No
employment or consultancy arrangement of the Company has been terminated or become the
subject of notice in the last six months. No agreement with any Customer of the Company
was terminated (other than expiry in the ordinary course of business) in the last six
months.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.4 | The
Companys human resource specialists were consulted on all employee and consultant
terminations and their procedures followed, and the Company is covered by their insurance
against any possible Claims brought by employees and consultants.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.5 | The
Companys human resources officer has a validly executed compromise agreement signed
by Adrian Cobb in the terms of the signed agreement emailed by Roger Stocker to the
Purchasers Solicitors on 12 February 2007 and that the payments due to Adrian Cobb
pursuant to his termination have been paid by the Company by the agreed payment dates.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11 | TAXATION
MATTERS
|-- | ----------------

|11.1 | Tax
returns and compliance
|---- | --------------------------

| | (a) | The
Company has submitted to all relevant Tax Authorities by the requisite dates
                    every computation return and all information for the purpose of Tax
howsoever                     required by law and each such computation return and
information was and remains                     true complete and accurate in all
material respects and leaves no material                     matter unresolved regarding
the Tax affairs of the Company.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
Company has discharged every liability of or in respect of Tax (Tax
                    liability) in connection with any Event occurring on or before
Completion                     and in respect of which the date for payment has been
postponed by agreement                     with the relevant Tax authority.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

43

---

---

| | (c) | The
Company has properly made all deductions withholdings and retentions
                    required to be made in respect of any actual or deemed payment made
or benefit                     provided on or before Completion and has accounted for all
such deductions                     withholdings and retentions to each relevant Tax
Authority and complied with all                     its obligations under Tax Statutes in
connection therewith and without prejudice                     to the generality of the
foregoing the Company has properly operated PAYE under                     Part II of the
Income Tax (Earnings & Pensions) Act 2003 or any regulations                     made
thereunder.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.2 | Value
Added Tax
|---- | ---------------

| | The
Company is registered as a taxable person for the purposes of VAT.
| | ----------------------------------------------------------------------

|11.3 | Tax
avoidance
|---- | -------------

| | The
Company has never knowingly been party to or concerned with any scheme or arrangement of
which the main purpose or one of the main purposes was the avoidance of or a reduction in
liability to Tax.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.4 | Overseas
dealings
|---- | -----------------

| | (a) | The
Company has always exclusively been resident in the UK for Tax purposes and
                    no circumstance or arrangement exists which would or may cause the
Company to                     cease to be resident in the UK for Tax purposes.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
Company does not have any subsidiary in the UK and has not at any time had
                    any permanent establishment outside the UK or any interest in any
non-resident                     body corporate or entity.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12 | ASSETS
|-- | ------

|12.1 | Title
to the Assets
|---- | -------------------

| | All
of the assets of the Company including all debts due to such company which are either
included in the Accounts or have been acquired or become due since the Balance Sheet Date
are the absolute property of the Company free from any Encumbrances.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.2 | Plant,
Machinery and Computer Systems
|---- | -------------------------------------

| | The
plant and machinery used by the Company and the computer systems operated by the Company
have been regularly and properly maintained and are believed by the Warrantors to be
adequate for the requirements of its business as presently carried on.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

44

---

---

|12.3 | Intellectual
Property
|---- | ---------------------

| | Details
of any registered intellectual property which is owned by the Company has been disclosed
in writing to the Purchaser (and is contained in the Disclosure Letter) and all material
intellectual property rights used by the Company (including the rights to any domain names
used and any software used in the computer systems) are either fully owned by the Company
or are available for use pursuant to a written licence from a third party for an unlimited
time without any requirement for the payment of fees.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13 | FREEHOLD
AND LEASEHOLD PROPERTY
|-- | -------------------------------

| | Save
for that set out in Schedule 5, the Company does not hold any leasehold property nor
freehold property.
| | ------------------------------------------------------------------------------------------------------------

|14 | EFFECT
OF SALE OF THE SHARES
|-- | ----------------------------

| | Compliance
with this Agreement does not and will not conflict with or result in the breach of or
constitute a default under any agreement or instrument to which the Company is now a party
or relieve any other party to a contract with the Company of its obligations under such
contract or entitle such party to terminate such contract, whether summarily or by notice.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15 | DEPENDENCE
ON INDIVIDUAL SUPPLIERS OR CUSTOMERS
|-- | -----------------------------------------------

| | Neither
more than 10% per cent of the aggregate amount of all the purchases, nor more than ten per
cent of the aggregate amount of all the sales, of the Company are obtained or made from or
to the same supplier or customer (including any person, firm or company in any way
connected with such supplier or customer) nor is any material source of supply to the
Company, or any material outlet for the sales of the Company, in jeopardy or likely to be
in jeopardy.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|16 | COMMISSIONS
AND FINDERS FEES
|-- | -----------------------------

| | No
one is entitled to receive from the Company any finders fee, brokerage or other
commission in connection with the purchase of shares in the Company.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------

|17 | JOINT
VENTURE, PARTNERSHIPS ETC
|-- | -------------------------------

| | The
Company is not, and has not agreed to become, a member of any joint venture, consortium,
partnership or other unincorporated association and the Company is not and has not agreed
to become a party to any agreement or arrangement for participating with others in any
business sharing commissions or other income.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

45

---

---

|18 | AGENCY
AGREEMENTS AND AGREEMENTS RESTRICTING BUSINESS
|-- | -----------------------------------------------------

| | The
Company is not a party to any agency, distributorship, marketing, purchasing,
manufacturing or licensing agreement or arrangement or any agreement or arrangement which
restricts its freedom to carry on its business in any part of the world in such manner as
it thinks fit.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

46

---

---

# Schedule 8

Warranty Limitations

|1 | LIMIT
ON INDIVIDUAL RELEVANT CLAIMS
|- | -----------------------------------

The Warrantors shall have no
liability whatsoever in respect of any individual claim arising under the Warranties or
the Tax Warranties (a Relevant Claim) unless:

|1.1 | the
amount that would otherwise be recoverable from the Warrantors in respect of that
Relevant Claim (the Claim Amount) exceeds £20,000 in which case the
Warrantors shall be liable for the whole of the Claim Amount and not just the excess:
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.2 | notice
of the Relevant Claim (stating in reasonable detail, so far as known to the Purchaser,
the nature of the Relevant Claim and, so far as practicable, the Claim Amount) has been
given to the Warrantors:
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | on
or before the second anniversary of Completion in the case of a Relevant
                    Claim under the Warranties (other than the Tax Warranties); or
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | on
or before the sixth anniversary of Completion in respect of any Relevant
                    Claim under the Tax Warranties.
| | --- | -------------------------------------------------------------------------------------------------------------------------------

|2 | MAXIMUM
LIMIT FOR ALL RELEVANT CLAIMS
|- | -------------------------------------

|2.1 | Other
than in the event of fraud or gross negligence, the Warrantors shall be jointly liable in
respect of all Relevant Claims up to a maximum that shall not exceed the Consideration
irrespective of the percentage of the Consideration actually received by the Warrantor.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.2 | To
the extent that a Relevant Claim is validly made, the Warrantors may satisfy such claim
by (a) forfeiting all or part of the Retention and/or (b) forfeiting all or part of the
Performance Related Consideration that has accrued due or transferring the same to the
Purchaser or as it may direct for no consideration.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3 | OTHER
LIMITATIONS ON RELEVANT CLAIMS
|- | ------------------------------------

|3.1 | The
Purchaser shall not be entitled to make any Relevant Claim:
|--- | ---------------------------------------------------------------

| | (a) | to
the extent that provision or allowance for the matter or liability which
               would otherwise give rise to the claim in question has been taken into
account                in the Accounts; or
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

47

---

---

| | (b) | in
respect of any matter fairly disclosed in any document specifically
               referenced in the Disclosure Letter; or
| | --- | -----------------------------------------------------------------------------------------------------------------------------

| | (c) | it
arises directly as a result of:
| | --- | ----------------------------------

| | (i) | the
payment after the Completion Date of any unusual or abnormal dividend by the
               Company;
| | --- | --------------------------------------------------------------------------------------------------------

| | (ii) | the
change after the Completion Date of the date to which Company makes up its
               accounts; or
| | ---- | ----------------------------------------------------------------------------------------------------------

| | (iii) | the
cessation of any business carried on by the Company; or
| | ----- | -----------------------------------------------------------

| | (iv) | it
would not have arisen but for a change in legislation made after the date of
               this Agreement (whether relating to taxation, rates of taxation or
otherwise) or                any amendment to or the withdrawal of any practice
previously published by the                HM Revenue & Customs or other taxation
authority, in either case occurring                after Completion, whether or not that
change, amendment or withdrawal purports                to be effective retrospectively
in whole or in part; or
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v) | to
the extent that the claim would have been recoverable under a policy of
               insurance had the Purchaser or the Company maintained in force insurance
cover                similar to that current for the business at the Completion Date; or
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vi) | to
the extent that the claim arises from the Purchasers failure to perform
               its obligations under this Agreement,
| | ---- | --------------------------------------------------------------------------------------------------------------------------------

| | and
to the extent that any claim is increased as a result of any of the matters set out in
this subclause, the Warrantors shall not be liable in respect of the amount by which any
claim is so increased.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4 | SET-OFF
|- | -------

The Warrantors shall not be liable to
make any payment for breach of the Warranties or the Tax Warranties nor shall the
Purchaser exercise any right of set-off or counterclaim against or otherwise withhold
payment of any sums stated to be payable by the Purchaser to the Warrantors pursuant to
this Agreement unless and until such liability has been agreed, adjudged payable in legal
or arbitration proceedings or in the absence of agreement or judgment at the time of
payment of any deferred or contingent Consideration, the Parties shall appoint an
independent accountant in accordance with clauses 5.4 and 5.5 of the main body of this
Agreement to determine the amount that may be retained/set-off by the Purchaser.

48

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|5 | DOUBLE
RECOVERY
|- | ---------------

The Purchaser shall not be entitled
to recover any sum in respect of any claim under this Agreement or the Trust Deed or
otherwise obtain reimbursement or restitution more than once in respect of the same loss
or damage and, for the avoidance of doubt a claim brought under the Tax Deed shall be
reduced by the amount recovered under a claim pursuant to the Agreement in respect of the
same subject matter and vice versa.

Where a claim may be made under the
Warranties or the Tax Deed in respect of the same subject matter, a claim shall be made
and pursued under the Tax Deed before a claim is made under the Warranties in respect of
such subject matter.

49

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# Schedule 9

Conduct of Business

|1. | The
Parent agrees that during the period from Completion until 31 December 2007,
                    it shall exercise its powers to procure that:
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | neither
TIS UK nor CPL nor any other company in which the respective businesses
                    of TIS UK and CPL may have been merged will transact any of the
business                     described below without the prior written approval of Roger
Stocker (such                     consent not to be unreasonably withheld):
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1 | The
making of any petition or passing of any resolution for winding-up, or the making of an
application for an Administration Order in respect of, CPL.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2 | The
formation or acquisition of any subsidiary of CPL.
| | - | ------------------------------------------------------

| | 3 | Any
change of the accounting reference date of the relevant or a material change to its
accounting policies other than as recommended by the Parent auditors.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | to
discharge Edward Stockers guarantee to Nat West Bank plc in relation to
          the overdraft by no later than 25th May 2007.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------

|2 | The
Parent further agrees that if the Purchaser fails to pay any part of the Consideration
including the Retention when required to do so under this Agreement, the Parent will
make such payment on the Purchasers behalf within 30 days of written notification
by the Vendors that the Purchaser has failed to make such due payment.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

50

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# Schedule 10

2nd
3rd and 4th Consideration Payments

# DEFINITIONS

| | Consolidated
Revenuesmeansthe total combined revenues of TIS UK and the
Company during the Performance Period, which shall exclude inter-company sales.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------

| | Performance
Period means the period commencing on 1 January 2007 and ending on 31 December
2007;
| | --------------------------------------------------------------------------------------------------

|1 | GENERAL
|- | -------

|1.1 | Entitlement
to the 2nd, 3rd and 4th Consideration Payments in each
case is entirely contingent on compliance with all the respective targets set out in this
Schedule 10, all of which shall be measured in accordance with US GAAP and after applying
a transfer price as detailed in section 1.2 below, being the charge made by the Parent
for the software and support.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.2 | For
the purpose of calculating the revenue and net operating profit for the purposes of
Schedule 10:
|--- | ----------------------------------------------------------------------------------------------------

| | (a) | the
Company will act as a stand-alone operation and profit centre during 2007;
| | --- | ------------------------------------------------------------------------------

| | (b) | Charges
from TIS UK or other TIS group companies to the Company will be handled
                    through the purchase of Eflow at 40% discount from the price list;
and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Where
a deal is sold through a third party, charges from TIS UK or other TIS
                    group companies to the Company will be handled through the purchase
of Eflow at                     55% discount from the price list.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2 | 2ND
CONSIDERATION PAYMENT
|- | -------------------------

|2.1 | The
Purchaser shall pay the Vendors (by means of payment to the Vendors Solicitors or
directly to Roger Stocker at the Purchasers discretion) the 2ndConsideration
Payment of £500,000 within 60 days following publication of the audited accounts
for the Performance Period, save that the 2nd Consideration Payment shall not
be payable if the Company does not achieve both a revenue in excess of £2.5 million
and an operating profit (i.e. the operating profit of the Company before the deduction of
tax as shown in those audited accounts) of £250,000 during the Performance Period.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

51

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|2.2 | In
the event that TIS UK and the Company will complete a merger prior to 31 December 2007,
the Purchaser shall pay the 2nd Consideration Payment of £500,000 to the
Vendors within 30 days of the Completion of such merger and the provisions of paragraph
1.1 above shall not operate to prevent such payment.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3 | 3RD
CONSIDERATION PAYMENT
|- | -------------------------

|3.1 | Within
60 days following publication of the audited accounts for the Performance Period the
Purchaser shall pay to the Vendors the 3rd Consideration Payment of £200,000 save
that the 3rd Consideration Payment shall not be payable if:
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | Consolidated
Revenues are not equal to or in excess of £5 million; or
| | --- | ---------------------------------------------------------------------

| | (b) | the
net operating profit (i.e. the operating profit of the Company before the
                    deduction of tax as shown in those audited accounts) element of the
Consolidated                     Revenues is not equal to or in excess of 5%, which shall
be determined after                     internal transfer charges. The transfer charges
will be agreed by the two                     parties as part of the business planning
process.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.2 | Any
amounts of the 3rd Consideration Payment due for payment shall be available for set-off
against any indemnification or warranty claims pursuant to this Agreement.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4 | 4TH CONSIDERATION
PAYMENT
|- | -------------------------

|4.1 | Within
30 days following publication of the audited accounts for the Performance Period, the
Purchaser shall pay to the Vendors the 4th Consideration Payment of up to
£200,000 save that the 4th Consideration Payment shall not be payable if
there is an overdraft in the Companys bank account on 31 December 2007 (New
 Overdraft) provided however that if the New Overdraft is lower than £200,000,
the Company will pay the Vendors an amount equal to the difference between £200,000
and the New Overdraft (Difference). The payment of the Difference
shall be considered a full payment of the 4th Consideration Payment.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.2 | In
the event that TIS UK and the Company will complete a merger prior to 31 December 2007,
the Purchaser shall pay the 4th Consideration Payment in accordance with the
provisions of the above paragraph 4.1, save that the date of such merger shall replace 31
December 2007 as the point at which the New Overdraft is to be assessed. If the New
Overdraft is less than £200,000 at the date of the merger, then the 4thConsideration
amounting to the Difference shall be paid within 30 days following publication of the
audited accounts that cover the merger,
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

52

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# Schedule 11

Tax Deed

|1 | DEFINITIONS
AND INTERPRETATION
|- | ------------------------------

|1.1 | In
this Tax Deed words and expressions defined in the Agreement shall (unless the context
otherwise requires) have the same meaning for the purposes of this Tax Deed and the
following words and expressions have the following meanings:-
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Accounting Period | has the meaning ascribed to it in section 12 of ICTA;
|------------------- | -----------------------------------------------------

|Accounting Standards | SSAPs,  FRSs,  UITF  Abstracts,  SORPs and all  other  generally  accepted
 accounting                                     principles applicable to a United Kingdom
company;
|---------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Actual  Taxation
Liability | in relation to the  Company,  a liability of the Company to make a
payment of or of an                                     amount in respect of, Taxation,
 whether or not such Taxation is also or alternatively
                                    chargeable  against  or  attributable  to any other
 person  and  whether  or not such                                     Taxation has been
discharged on or before Completion;
|---------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Agreement | means
an agreement of today's date between the  Warrantors  and the  Purchaser for the
                                    sale and purchase of the entire issued share capital
of the company;
|----------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Claim | any
 assessment,  notice,  demand or other  document  issued or action taken by, or on
                                    behalf  of, any  Taxation  Authority,  or any
 self-assessment  return,  from which it                                     appears
 that the  Company is subject  to, is sought to be made  subject  to, or might
                                    become subject to, any Taxation Liability;
|------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Customs | H
M Revenue & Customs;
|--------- | ----------------------

|Default Rate | 2% above the base rate of HSBC Bank plc from time to time;
|-------------- | ----------------------------------------------------------

|Event | any
 event,  occurrence,  transaction,  act or  omission  (or any  event,  occurrence,
                                    transaction,  act or  omission  which is deemed to
take place for the  purposes of any                                     Taxation)
including the sale and purchase of the Shares pursuant to this Agreement;
|------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

53

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|Relief | any
loss, allowance,  exemption,  set-off,  deduction, credit or other relief relating
                                    to any Taxation or to the computation of income,
 profits or chargeable  gains for the                                     purposes of any
Taxation  which has been taken into account in the  production  of the
                                    Accounts;
|-------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Tax and
Taxation | (a) | all forms of tax, levy,  duty,  charge,  impost,  withholding
or other amount whenever                                     created or imposed  and
 whether of the  United  Kingdom or  elsewhere,  payable to or
                                    imposed by any Taxation Authority but excluding,  for
the avoidance of doubt,  council                                     tax,  local
 authority  rates or any  other  such  charges  which  are  deductible  in
                                    computing income for tax purposes; and
|-------------------- | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | all
charges,  interest,  penalties  and fines  incidental  or relating to any Taxation
                                    falling within (a) above or to any failure to submit,
 or timely to submit, or to fail                                     fully or accurately
to complete any return,  form, account or computation  required by
                                    any Taxation Authority;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Taxation Authority | the Inland  Revenue,  Customs,  HM Revenue and Customs or any other
revenue,  customs,                                     fiscal,  governmental,  statutory,
state, provincial,  local governmental or municipal
                                    authority,  body or person,  whether of the United
 Kingdom or elsewhere  competent to                                     impose, assess or
collect any Taxation;
|-------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Taxation Liability | in relation to the Company, any Actual Taxation Liability .
|-------------------- | -----------------------------------------------------------

|unavailability | in
relation  to a Relief,  the  reduction,  modification,  claw- back,  counteraction,
                                    disallowance or cancellation of, or failure to
obtain,  that Relief, and "unavailable"                                     shall be
construed accordingly.
|---------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Warrantors' Relief | means any loss,  allowance,  exemption,  set-off,  deduction,  credit or
other  relief                                     relating to any Taxation or to the
 computation of income profits or chargeable  gains
                                    for the purpose of Taxation  which has not been taken
into  account in the  production                                     of the Accounts;  or
which arises outside the ordinary course of business  between the
                                    Balance Sheet Date and Completion.
|-------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.2 | In
determining for the purposes of this Tax Deed whether a charge on, or power to sell,
mortgage or charge, any share or asset exists at any time, the fact that any Taxation has
not become payable or may be paid by instalments shall be disregarded, and such Taxation
shall be treated as becoming due, and the charge on, or power to sell, mortgage or charge
as arising, on the date of the transfer of value or other Event as a result of, in
respect of, or by reference to, which it becomes payable or arises.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.3 | For
the purposes of this Tax Deed the following Taxation Liabilities of any person shall be
treated as arising otherwise than, or as a result of an act, omission or transaction
otherwise than, in the ordinary course of trading of that person:-
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

54

---

---

| | 1.3.1 | any
Taxation Liability of that person which is payable by or otherwise recoverable from that
person by reason of the failure by any other person to pay or otherwise discharge any
liability to Taxation;
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1.3.2 | any
Taxation Liability of that person arising in respect of any distribution (as defined in
Part VI of ICTA) or deemed distribution made by that person, the creation, cancellation
or re-organisation of any share or loan capital by that person, the making of any loan or
advance by that person, the creation, cancellation, satisfaction, waiver or repayment of
any intra-group indebtedness by that person or, in the case of a company, that company
being, becoming or ceasing to be, or being treated as ceasing to be, related to any other
person for the purposes of any Taxation;
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1.3.3 | any
Taxation Liability of that person arising from any cessation, closure, rationalisation or
reorganisation of any material part of any trade or business carried on by that person;
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1.3.4 | any
Taxation Liability of that person arising by reason of any change in the date to which
that person makes up its accounts.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------

|1.4 | References
in this Tax Deed to any Event shall include any combination of two or more Events, and
references to any Event occurring or being deemed for the purposes of any Taxation to
occur on or before Completion shall include any combination of two or more Events,
provided that, in that case, one or more of those Events shall occur or be so deemed to
occur on or before Completion otherwise than in the ordinary course of trading of the
Company and those Events which shall occur after Completion shall have occurred:-
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1.4.1 | pursuant
to a legally binding commitment entered into by, or on behalf of, the Company on or
before Completion; and
| | ----- | -------------------------------------------------------------------------------------------------------------------

| | 1.4.2 | in
the ordinary course of trading of the Company as carried on immediately before Completion.
| | ----- | ---------------------------------------------------------------------------------------------

|1.5 | References
 in this Tax Deed to any person  being  related to any other  person for the  purposes of
any Taxation          shall include:-
|--- | ------------------------------------------------------------------------------------------------------------------------------------------

| | 1.5.1 | that
person having control (within the meaning of any of sections 416 (or any one or more
subsections of that section), 767B(4) and 840 of ICTA) of that other person;
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1.5.2 | that
person being connected (within the meaning of section 839 of ICTA) with that other
person;
| | ----- | -----------------------------------------------------------------------------------------------

| | 1.5.3 | any
other person having such control of, or being so connected with, that person and that
other person;
| | ----- | -------------------------------------------------------------------------------------------------------

| | 1.5.4 | that
person being the holding company of that other person or being a subsidiary of either
that other person or any other person of which that other person is also a subsidiary;
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1.5.5 | that
person being a direct or indirect participant in the management, control or capital of
that other person (for the purposes of schedule 28AA to ICTA), and so that where one
person is related to another person each shall be regarded as being related to the other.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

55

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|2 | COVENANT
|- | --------

|2.1 | Subject
to the limitations in Schedule 8 of the Agreement the Warrantors covenant with the
Purchaser to pay to the purchaser or at its direction, to the Company an amount or
amounts to a value equal to each of the following:-
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.1.1 | any
Actual Taxation Liability (not being inheritance tax nor any charges, interest, penalties
and fines incidental or relating to inheritance tax) of the Company arising as a result
of, in respect of, or by reference to:-
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | any
Event occurring, or deemed for the purposes of any Taxation to occur, on or
               before Completion; or
| | --- | --------------------------------------------------------------------------------------------------------------------

| | (b) | any
income, profits or chargeable gains (not falling within clause 2.1.1(a))
               earned, accrued or received, or deemed for the purposes of any Taxation to
be                earned, accrued or received, on or before, or in respect of any period
ending on                or before, Completion (excluding any latent gain based on a
re-valuation of the                Companys goodwill);
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.1.2 | any
liability of the Company to pay or repay any other person (other than any Taxation
Authority any amount under any agreement or other arrangement entered into on or before
Completion relating to corporation tax and/or value added tax;
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.1.3 | any
Actual Taxation Liability of the Company which is the liability to Taxation of any other
person and for which the Company is liable by reason of having been, at any time on or
before Completion, related to:-
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | that
other person for the purposes of any Taxation;
| | --- | ---------------------------------------------------

| | (b) | any
person which is or has been at any time related to that other person for the
               purposes of any Taxation;
| | --- | -------------------------------------------------------------------------------------------------------------------------

| | 2.1.4 | any
liability of the Company to account for PAYE and NICs in respect of the period prior to
Completion;
| | ----- | -------------------------------------------------------------------------------------------------------

| | 2.1.5 | any
Taxation Liability of the Company resulting from the exercise of options in the Company
where such options were in existence prior to Completion; and
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.1.6 | any
reasonable costs and expenses properly incurred by the Purchaser or the Company (or any
of them) (other than costs of any employee or officer of the Purchaser and/or the Company
spending time on such matters) in connection with any successful claim under this clause
2.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.2 | Any
payments made pursuant to this Tax Deed shall, so far as possible, be treated, as an
adjustment to the consideration paid or payable for the Shares.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------

|3 | LIMITATIONS
|- | -----------

|3.1 | The
 Warrantors  shall not be liable  under this Tax Deed in respect of any  Taxation
 Liability of any person to          the extent that:-
|--- | --------------------------------------------------------------------------------------------------------------------------------------------

| | 3.1.1 | Provision
 has been  made for such  Taxation  Liability  in the  Accounts  (including  the notes to
such                   Accounts); or
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------

56

---

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| | 3.1.2 | such
Taxation Liability arises or is increased as a result of:-
| | ----- | ---------------------------------------------------------------

| | (a) | the
coming into force after Completion of, or any introduction or change after
               Completion in, any law, rule, regulation or published practice of any
Taxation                Authority of general application; or
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | any
change after Completion in the rates of Taxation; or
| | --- | --------------------------------------------------------

| | 3.1.3 | such
Taxation Liability would not have arisen but for any act, omission or transaction done,
made or carried out by the Purchaser and the Company (or any of them) or any of their
respective directors, employees or agents:-
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | on
or before Completion, at the written request of the Purchaser; or
| | --- | --------------------------------------------------------------------

| | (b) | after
Completion, where such act, omission or transaction was done, made or           carried
out:-
| | --- | ---------------------------------------------------------------------------------------------------

| | (i) | otherwise
than as required by law or pursuant to a legally binding commitment           of that
person created on or before Completion; or
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | otherwise
than in the ordinary course of trading of that person as carried on           immediately
before Completion; or
| | ---- | -------------------------------------------------------------------------------------------------------------------------

| | 3.1.4 | the
Purchaser or that person has received from any other person (other than the Company) a
payment in respect of such Taxation Liability; or
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------

| | 3.1.5 | such
Taxation Liability arises in the ordinary course of trade between the Balance Sheet Date
and Completion; or
| | ----- | ----------------------------------------------------------------------------------------------------------------

| | 3.1.6 | such
Taxation Liability would not have arisen but for a change in the accounting reference
date or a change in the accounting policies or practices applying to, or in any way
affecting, that person, introduced or having effect after Completion, other than a change
which is required in order to comply with the Accounting Standards applying to that
person;
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.1.7 | such
Taxation Liability is interest, a penalty or fine arising from a failure to pay Taxation
to a Taxation Authority within a reasonable time after the Warrantors have made a payment
of an amount in respect of the Taxation Liability; or
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.1.8 | such
Taxation Liability has been made good by insurers or otherwise compensated for without
cost to the Purchaser or the Company; or
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------

| | 3.1.9 | profits,
income and gains to which such Taxation Liability is attributable were actually earned or
received by or actually accrued to the Company prior to Completion but were not reflected
in the Accounts; or
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.1.10 | such
Taxation Liability arises or is increased as a result of the failure or omission of the
Company after Completion to make any valid claim, election, surrender or disclaimer, to
give any valid notice or consent or to do any other thing under the provisions of any
enactment or regulation relating to Taxation, the making, giving or doing of which was
taken into account in computing the provisions for Taxation in the Accounts or in
computing the amount of any repayment of Taxation which appears in the Accounts; or
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

57

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| | 3.1.11 | such
Taxation Liability arises or is increased as a result of any claim, election, surrender
or disclaimer made or notice or consent given after Completion by the Company under the
provisions of any enactment or regulation relating to Taxation, other than any claim,
election, surrender, disclaimer, notice or consent assumed to have been made, given or
done in computing the amount or any allowance, provision or reserve in the Accounts; or
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.1.12 | such
Taxation Liability would not have arisen but for a cessation, or any change in the nature
or conduct, of any trade carried on by the Company at Completion, being a cessation or
change occurring on or after Completion; or
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.1.13 | a
Warrantors Relief is available to be used so as to reduce or eliminate the Taxation
Liability in question; or
| | ------ | ----------------------------------------------------------------------------------------------------------------

| | 3.1.14 | such
Taxation  Liability in stamp duty payable on the purchase of the Shares pursuant to this
Agreement;                   or
| | ------ | -----------------------------------------------------------------------------------------------------------------------------

| | 3.1.15 | such
Taxation Liability arises or is increased as a result of any failure of the Purchaser or
the Company to comply with any of their respective obligations under this Tax Deed.
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.2 | The
provisions of Schedule 8 to the Agreement shall apply to this Tax Deed.
|--- | ---------------------------------------------------------------------------

|4 | WITHHOLDINGS
AND GROSS-UP
|- | -------------------------

| | If,
at any time, any applicable law, regulation or regulatory requirement requires the
Warrantors to make any deduction or withholding from any sums payable to the Purchaser
under this Tax Deed, the amount so due shall be increased to the extent necessary to
ensure that, after the making of such deduction or withholding, the Purchaser receives, on
the due date for such payment, a net sum equal to the sum which it would have received had
no such deduction or withholding been required to be made.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5 | OVERPROVISIONS
|- | --------------

|5.1 | The
Warrantors may, by notice, on or before the sixth anniversary of Completion, request the
Purchaser, at the Warrantors expense, to procure that the auditors for the time
being of any Company report whether in their opinion a provision for Taxation in the
Accounts was, insofar as it relates to the Company, too great (an Overprovision)
and the Purchaser shall instruct such auditors to deal expeditiously with the production
of the report and shall provide, or procure that the Company provide, any reasonable
information or reasonable assistance required for the purpose of enabling the auditors to
produce such report.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.2 | Subject
to sub-clause 5.4, the amount of the Overprovision shall:
|--- | -----------------------------------------------------------------

| | 5.2.1 | first
be set against any payment then due from the Warrantors under this Tax Deed; and
| | ----- | --------------------------------------------------------------------------------------

| | 5.2.2 | to
the extent that there is an excess, a refund shall be made to the Warrantors of any
previous payment made by the Warrantors under this Tax Deed (to the extent not previously
refunded) up to the amount of such excess;
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.2.3 | to
the extent there is still an excess, the remainder of the excess shall be carried forward
and set off against any future payment or payments which become due from the Warrantors
under this Tax Deed.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

58

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|5.3 | If
any report has been made under sub-clause 5.1, the Warrantors or the Purchaser may at any
time on or before the sixth anniversary of Completion request the auditors, at the
expense of the party so requesting, for the time being of any Company to review the
report in the light of all relevant circumstances, including any facts which have become
known only since that report was made, and to report whether in their opinion the earlier
report remains correct or whether, in the light of those circumstances, it should be
amended.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.4 | If
following a request under sub-clause 5.3 the auditors issue an amendment to the earlier
report and the amount of any Overprovision is revised, that revised amount shall be
substituted for the amount previously reported and, if an adjustment is required by
virtue of the substitution, it shall be made as soon as practicable by or to the
Warrantors in line with the provisions of clause 5.2 and if that results in a payment
then the payment shall be made as soon as practicable.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6 | CORRESPONDING
BENEFIT
|- | ---------------------

|6.1 | If,
as a result of any Taxation Liability which has given rise to a payment by the Warrantors
under this Tax Deed, the Company (or any successor to all or any part of its business) or
the Purchaser receives a repayment of Tax (a benefit) or receives a relief
which reduces the Companys liability to make an actual payment of Tax (a saving)
which it would not have received or made but for the circumstances giving rise to a claim
under this Tax Deed, then:
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.1.1 | the
Purchaser shall procure that full details of the benefit or saving are given to the
Warrantors as soon as practicable and in any event within 21 days of receipt of the
benefit or saving in question;
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.1.2 | the
Purchaser shall procure that, as soon as practicable and in any event within 21 days of
the date when the benefit is received or saving in question is made (being the date when
Taxation would otherwise have been due to avoid interest or penalties which Taxation is
not due by virtue of the saving), any payment already made by the Warrantors in respect
of the claim is forthwith repaid to the Warrantors up to the amount of the benefit or
saving and that any interest or repayment supplement received relating to the benefit or
saving so far as repaid is also forthwith paid to the Warrantors; and
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.1.3 | any
amount of the benefit or saving (including any interest or repayment supplement) that is
not so paid to the Warrantors shall be carried forward and set off against any future
liability of the Warrantors under this Tax Deed.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.2 | If
the Purchaser or the Company is or may be entitled to recover from a person (including
any Taxation Authority, but excluding the Warrantors) a sum in respect of any claim which
gives rise to a liability on the part of the Warrantors under this Tax Deed, then:
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.2.1 | the
Purchaser or the Company shall give the Warrantors full details of the entitlement as
soon as practicable and in any event within 21 days of the Purchaser or the Company
becoming aware of those details;
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.2.2 | the
Purchaser shall at the request of the Warrantors and if the Warrantors indemnify the
Purchaser against all reasonable costs and expenses incurred thereby take all appropriate
steps to recover or to procure the recovery of the sum, keeping the Warrantors fully
informed of the progress of any action taken;
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 6.2.3 | the
Purchaser shall as soon as practicable and in any event within 21 days of recovery of any
sum, pay the lesser of:
| | ----- | ---------------------------------------------------------------------------------------------------------------------

| | (a) | an
amount equal to the payment already made by the Warrantors in respect of the
               relevant claim; and
| | --- | ------------------------------------------------------------------------------------------------------------------

| | (b) | an
amount equal to the sum received (including any interest or repayment
               supplement received on or in respect of that sum and less all reasonable
costs,                charges and expenses incurred by the Company or the Purchaser in
obtaining such                sum (save to the extent already reimbursed by the
Warrantors).
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7 | CONDUCT
OF CLAIMS
|- | -----------------

|7.1 | If
the Purchaser or the Company shall become aware of any Claim which is likely to give rise
to a liability on the Warrantors under this Tax Deed, the Purchaser shall give notice of
or procure that notice of is given as soon as reasonably practicable to the Warrantors.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.2 | As
regards any Claim and subject to the provisions of clause 7.3 the Purchaser shall take or
shall procure that the Company shall take such action as the Warrantors may by written
notice given to the Purchaser reasonably request to cause the Claim to be withdrawn or to
dispute, resist, appeal against, compromise or defend the Claim and any determination or
adjudication in respect thereof or to apply to postpone (so far as legally possible) the
payment of any Tax pending the determination of any appeal but subject to the Purchaser
and the Company being indemnified to their reasonable satisfaction by the Warrantors
against all losses (including any additional Taxation Liability), interest, costs,
damages and expenses which may be incurred by the Purchaser or the Company, and Provided
that:
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.1 | any
request made by the Warrantors pursuant to this clause 7.2 shall be made within a
reasonable time of receipt by the Warrantors of any notice given by the Purchaser to the
Warrantors in accordance with clause 7.1 and if, on the expiry of a period of 21 days
commencing on the date of receipt by the Warrantors of such notice, the Warrantors shall
not have given to the Purchaser notice of their intentions in respect of the Claim or
shall not have provided satisfactory indemnities in accordance with this clause 7.2 the
Purchaser and the Company shall be entitled to satisfy or settle or deal with the Claim
on such terms as they shall in their discretion reasonably think fit but without
prejudice to their rights and remedies under this Tax Deed;
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.2 | the
Purchaser and the Company shall not be obliged to comply with any request of the
Warrantors which involves contesting any assessment for Taxation before any court or any
other appellate body (other than the General or Special Commissioners of HM Revenue &Customs
or a VAT Tribunal) unless they have been advised in writing by tax counsel of at least 5
years call instructed by agreement between the Purchaser and the Warrantors at the
expense of the Warrantors that an appeal against the assessment for Taxation in question
will, on the balance of probabilities, be won by the Purchaser or, as the case may be,
the Company;
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.3 | neither
the Purchaser nor the Company shall be obliged to take any action which it reasonably
considers to be materially prejudicial to the Taxation affairs of any company in the
group of companies of which the Purchaser is for the time being a member.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|8 | TAX
RETURNS
|- | -----------

|8.1 | The
Warrantors (or their duly authorised agents) shall at the expense of the Company prepare
the Companys corporation tax returns and computations for all accounting periods
ended on the Balance Sheet Date (the Pre-Completion Periods) and deal with
all matters and correspondence relating thereto (together, the Pre-Completion Tax
Matters). The Purchaser shall procure, and shall cause the Company to procure, that the
Warrantors (or their duly authorised agents) are provided promptly with any information
received by the Purchaser or the Company, or of which the Purchaser or the Company
becomes aware, which may be relevant to the Pre-Completion Tax Matters, and with such
reasonable assistance (which may include assistance from employees of the Purchaser and
the Company) as the Warrantors may reasonably require in connection with the
Pre-Completion Tax Matters. The Purchaser shall also procure, and shall cause the Company
to procure, that the Warrantors (or their duly authorised agents) are afforded such
access to the books, accounts and records of, or relating to, the Company as they may
reasonably require in connection with the Pre-Completion Tax Matters. The Warrantors
shall give the Purchaser a reasonable opportunity to comment on any documents and
correspondence in respect of Pre-Completion Tax Matters prior to submission and shall
take account of the Purchasers reasonable comments.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.2 | The
Purchaser shall procure that the Company shall (i) authorise, sign and submit to the
relevant Taxation Authority the corporation tax returns of the Company relating to the
Pre-Completion Periods and such other ancillary information, accounts, statements and
reports as the Warrantors (or their duly authorised agents) may reasonably direct; (ii)
make such claims and elections and give such consents in relation to the Pre-Completion
Periods as the Warrantors (or their duly authorised agents) may direct save in respect of
any such claims, surrenders or elections which will give rise to a Taxation Liability;
and (iii) comply with all procedural requirements in respect of the making or giving of
such returns, ancillary information, accounts, statements and reports or such claims,
elections or consents save that the Purchaser shall not be obliged to procure that the
Company takes any action as is mentioned in this clause 8.2 in relation to any
corporation tax return or ancillary document that is not true and accurate in all
material respects.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.3 | In
the event that Roger Stocker is no longer a director of the Company, where any of the
Companys corporation tax returns and computations are required to be submitted for,
or in respect of, any period in which Completion occurs (a Straddle Period),
a draft of the relevant document shall be submitted by the Purchaser to the Warrantors at
least 21 days before its intended submission to any Taxation Authority and the Purchasers
and shall be given access to all information necessary to determine its accuracy. In
addition, the Warrantors shall be kept informed by the Purchaser of any negotiations
regarding the Taxation liabilities of the Company relating to the Straddle Period and
before any agreement is reached with such Taxation Authority in respect of those Taxation
liabilities, details of the proposed agreement shall be given by the Buyer to the Sellers
at least 21 days before the proposed conclusion of such agreement.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.4 | If,
within 21 days of receiving any draft return or computation, the Warrantors make any
representations to the Purchaser, those representations shall, to the extent they are
reasonable, be reflected in the returns and/or computations.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|8.5 | For
the avoidance of doubt, in the event that any matter constitutes a Claim, the provisions
of clause 7 shall take precedence over the provisions of this clause 8 and the Claim
shall be conducted in accordance with the provisions of clause 8.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9 | BUYER'S
INDEMNITY
|- | -----------------

|9.1 | Subject
as provided below, the Purchaser hereby covenants with Warrantors to pay to the
Warrantors by way of adjustment to the Consideration, an amount equal to any of the
following:
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.1.1 | any
Actual Tax Liability or increased Actual Tax Liability of any of the Warrantors which
arises as a result of the Company ceasing after Completion to be resident in the United
Kingdom for the purposes of any Taxation; or
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.1.2 | any
Actual Tax Liability or increased Actual Tax Liability of any of the Warrantors which
arises by virtue of the operation of Section 767A, 767AA and 767B ICTA 1988 in
circumstances where the taxpayer company (as referred to in Section 767A(1) ICTA ) is the
Company.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.2 | If
the Purchaser is liable under 9.1 the Purchaser shall pay to the Warrantors an amount
equal to any costs or expenses reasonably and properly incurred by the Warrantors in
connection with any such Actual Tax Liability or increased Actual Tax Liability (or claim
therefor) as is mentioned in sub-clause 9.1 or in successfully taking any action under
this clause 9.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.3 | Clause
4 (gross-up) of this Tax Deed shall apply to the covenant in clause 9.1 above, as if
references to the Warrantors are to the Purchasers and vice versa, and making such other
adjustments as may be required to give effect to this clause.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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# Schedule 12

Agreed Form
Resignation Letters for Directors and Secretary of the Company

# FORM OF RESIGNATION
LETTER

Dear Sirs

I resign from the office of
[Director/Secretary] with Capture Projects Limited with immediate effect and acknowledge
and confirm that:

| | (a) | I
have no claim whatsoever against Capture Projects Limited, TIS UK Limited or
                    any of their parent companies, their servants, officers, agents etc
for breach                     of contract, compensation for loss of office or employment
or loss of pension                     rights which I acknowledge shall terminate with
immediate effect; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | there
is no agreement or arrangement outstanding under which Capture Projects
                    Limited has or could have an obligation to me whether now or in the
future in                     each case up to and including the date of this letter; and
I waive, release and                     forever discharge Capture Projects Limited and
TIS UK Limited against all                     actions, proceedings, claims, demands and
costs which I may now have or would                     have had but for the execution of
this deed.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                    |   |                                   
|------------------- | - | ----------------------------------
|Signed as a deed by | ) |                                   
|                    | ) | __________________________________
|in the presence of: | ) |                                   

________________________     Signature of the Witness
________________________     Name of the Witness
________________________     Address of the Witness
________________________
________________________
________________________     Occupation of the Witness

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# Schedule 13

Vendors
Solicitors Form of Legal Opinion

|To: | Top
Image Systems UK Limited (registered no. 04993167)
Amberley Place
107-111
Peascod Street
Windsor
SL4 1TE
|--- | ------------------------------------------------------------------------------------------------------------

Dear Sirs

# Capture Projects Limited

We serve as counsel to Edward Stocker
and Roger Stocker, who are either registered as, or otherwise entitled to, the entire
issued share capital of Capture Projects Limited (the Shareholders and
Company respectively). We have been asked by the Shareholders to render this
opinion in connection with the execution and delivery of a Share Purchase Agreement
including all its Schedules, dated as of 11 April 2007, entered into by and between the
Vendors and the Purchaser (as defined in the said Agreement) (collectively the
Agreement).

In connection with rendering the
opinions set forth below, we have examined originals or copies, certified or otherwise
identified to our satisfaction, of (i) the Agreement (ii) the Companys statutory
Company Books; and (iii) the Companys Articles of Association (the
Articles); and all the documents included in (i) through (iii) above,
including all schedules thereto (collectively the Transaction Documents) as
well as such documents, records, contracts, agreements, certificates and written
statements supplied to us by the Company as we deem necessary for such purpose. In our
examination, we have relied upon and have not independently verified the following
assumptions: (i) the genuineness of all signatures on all documents in connection with
which this opinion is rendered, (ii) the authenticity of all documents submitted to us as
originals, (iii) the conformity to original documents of all documents submitted to us as
certified copies or photocopies, and the authenticity of the originals of such latter
documents.

In making our examination of
documents executed by corporate or other entities other than the Company, we have assumed
that such entities had the power, corporate or other, to enter into and perform all
obligations thereunder and have also assumed that due authorization by all requisite
action, corporate or other, and due execution and delivery by such entities of such
documents and the validity and binding effect thereof.

In rendering the opinions set forth
below, we have relied, as to matters of fact, upon and assumed the accuracy and
authenticity, without independent investigation, of information and documents supplied to
us by the Company and its officers. In addition, we have assumed that the representations
and warranties as to factual matters made by the Company and the Warrantors and by the
Purchasers in clause 7 and schedule 7 of the Agreement respectively are true and correct.

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Any statement herein qualified by the
phrase to the best of our knowledge, or knowledge is intended to
indicate that during the course of our representation in connection with the Transaction
Documents, no information that would give us actual knowledge of, or reasonable belief
concerning, the inaccuracy or incompleteness of such statement has come to the attention
of the lawyers in this firm who have rendered legal services to the Company or its
shareholders of the existence or absence of any facts which would contradict our opinions
set forth below. Unless specifically stated otherwise herein, we have made no independent
factual investigation for the purpose of rendering an opinion to the best of our
knowledge. No reference as to our knowledge of any matters bearing on the accuracy
of any such statement should be drawn from the fact of our representation of the
Shareholders. There is no assurance that all material facts were disclosed to us.

Unless specified otherwise,
references to the Company refer only to the Company itself, and do not refer
to any parent or subsidiary corporations or any other entities which may be affiliated
with the Company.

The opinions expressed herein are
limited to English law, and we express no opinion as to the effect, on the matters covered
by this opinion, of the laws of any jurisdiction other than those of England and Wales.

Subject to the limitations,
qualifications, and exceptions set forth herein, we are of the opinion that as of the date
hereof and upon the consummation of the transactions contemplated by the Transaction
Documents:

|1. | The Company is duly organized and validly existing under the laws of England and
          Wales. The Company has all requisite corporate power and authority to carry on
          its business as now being conducted.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | The registered and outstanding capitalization of the Company immediately prior
          to completion of the Agreement as shown on the Companys register with the
          Registrar of Companies (as complemented by the information in the attached note)
          is as follows:
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a. | Authorised Share Capital. The authorized share capital of the Company is
               £1,000,000 divided into 10,000,000 ordinary shares of £0.10 each.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

| | b. | Ordinary Shares. There exists only one class of shares.
| | -- | -------------------------------------------------------

| | c. | Issued Share Capital: the entire issued share capital of the Company is
               as stated in the Agreement and comprises 265,250 ordinary shares of £0.10,
               all of which are beneficially owned by the Vendors, there being no shareholder
               or person with rights over the shares in the Company to our knowledge other than
               the Vendors.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | d. | Rights to Acquire Shares. To our knowledge, there exist no options,
               warrants, conversion privileges or other rights (or agreements for any such
               rights) outstanding to purchase or otherwise obtain from the Company any of the
               Companys shares. In particular, the employees of the Company have either
               exercised or waived all rights they may have in relation to the Companys
               unapproved share option scheme and there are no persons to our knowledge that
               have any options or other rights over any of the shares of the Company.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | We do not represent the Company in any legal proceedings, and we are not aware
          of any legal proceedings in which the Company is involved or of any pending or
          threatened actions, suits, claims, investigations or other proceedings (either
          legal or administrative), filed or authorized by the Company or against it. To
          our knowledge, the Company has not received any written threat that questions
          the validity of the Transaction Documents or the right of the Company to enter
          into the Transaction Documents.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|4. | To our knowledge, the execution, delivery or performance of the Transaction
          Documents and the transactions contemplated thereunder by the Company do not
          require any prior approval or consent from any person or entity in England and
          Wales.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In addition to any assumptions,
qualifications and other matters set forth elsewhere herein, the opinions set forth above
are subject to the following matters as to which we express no opinion:

|1. | Any representation or warranty made or given in the Agreement by any of the
          parties thereto, or by any other person or entity, or to the adequacy, accuracy
          or completeness of the statements and disclosures contained in the Agreement or
          the schedules and exhibits thereto, though we have no reason to believe that any
          such representation or warranty is not materially correct.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | The applicability or effect of any fraudulent transfer or similar law on the
          Transaction Documents or any transaction contemplated thereby;
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Tax consequences (including but not limited to income, sale or transfer taxes)
          arising out of the Agreements or any transaction contemplated therein;
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

Except as otherwise noted, we
disclaim any undertaking to advise you of changes that may have been brought to our
attention hereafter.

This opinion is rendered only to you
under the Transaction Documents and is solely for your benefit in connection with the
transactions described therein. This opinion may not be used or relied upon by you for any
other purpose, or circulated to, quoted or relied upon by any other person or entity for
any purpose, or disclosed, quoted, filed with a government agency or otherwise referred to
in any context whatsoever without our prior written consent. Notwithstanding the above, we
hereby consent to your disclosing this opinion before any government authority, NASDAQ or
the US SEC, if requested to do so by any such entity.

Yours faithfully

BURGES SALMON LLP

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Service
Agreement between Roger Stocker and the Company  N/A

67

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