---

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Exhibit 4.(b)2

# ASSET PURCHASE
AGREEMENT

BY AND BETWEEN

# ECTEL LTD.

AND

# COMPWISE LTD.

Dated as of March 24,
2008



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# TABLE OF CONTENTS

|     |                                                               |  
|---- | ------------------------------------------------------------- | -
|
|
|
|
|1.   | DEFINITIONS                                                   | 2
|    
|2.   | PURCHASE AND SALE OF ASSETS; ASSUMPTION OF LIABILITIES        | 2
|    
|2.1. | Purchase and Sale of Assets                                   | 2
|    
|2.2. | Excluded Assets                                               | 2
|    
|2.3. | Employees                                                     | 2
|    
|2.4. | Assumption of Liabilities                                     | 2
|    
|2.5. | Excluded Liabilities                                          | 3
|    
|2.6. | Further Conveyances and Assumptions; Consent of Third Parties | 3
|    
|3.   | CONSIDERATION                                                 | 4
|    
|3.1. | Consideration                                                 | 4
|    
|3.2. | Payment of Purchase Price                                     | 4
|    
|4.   | CLOSING AND TERMINATION                                       | 5
|    
|4.1. | Closing Date                                                  | 5
|    
|4.2. | Deliveries at Closing                                         | 5
|    
|4.3. | Termination of Agreement                                      | 6
|    
|4.4. | Procedure Upon Termination                                    | 7
|    
|4.5. | Effect of Termination                                         | 7
|    
|5.   | REPRESENTATIONS AND WARRANTIES OF SELLER                      | 7
|    
|5.1. | Organization and Good Standing                                | 7
|    
|5.2. | Subsidiaries                                                  | 7
|    
|5.3. | Authorization of Agreement                                    | 7
|    
|5.4. | Conflicts                                                     | 8
|    
|5.5. | Consents of Third Parties                                     | 8
|    
|5.6. | Financial Information; No Undisclosed Liabilities             | 8
|    
|5.7. | Title to Purchased Assets; Sufficiency                        | 9



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|      |                                                    |   
|----- | -------------------------------------------------- | --
|
|
|
|
|5.8.  | Absence of Certain Developments                    | 9 
|     
|5.9.  | Intellectual Property                              | 10
|     
|5.10. | Material Contracts                                 | 13
|     
|5.11. | Employee Matters                                   | 14
|     
|5.12. | Litigation                                         | 15
|     
|5.13. | Compliance with Laws; Permits                      | 15
|     
|5.14. | Insurance                                          | 15
|     
|5.15. | Accounts Receivable and Payable                    | 15
|     
|5.16. | Related Party Transactions                         | 16
|     
|5.17. | Customers and Suppliers                            | 16
|     
|5.18. | Product Warranty; Product Liability                | 16
|     
|5.19. | Financial Advisors                                 | 17
|     
|5.20. | Best Offer                                         | 17
|     
|5.21. | Full Disclosure                                    | 17
|     
|6.    | REPRESENTATIONS AND WARRANTIES OF PURCHASER        | 17
|     
|6.1.  | Organization and Good Standing                     | 17
|     
|6.2.  | Authorization of Agreement                         | 17
|     
|6.3.  | Conflicts; Consents of Third Parties               | 18
|     
|6.4.  | Full information                                   | 18
|     
|7.    | COVENANTS                                          | 18
|     
|7.1.  | Access to Information                              | 18
|     
|7.2.  | Conduct of the Business Pending the Closing        | 18
|     
|7.3.  | Shut Down                                          | 20
|     
|7.4.  | Regulatory and Other Authorizations; Consents      | 21
|     
|7.5.  | Change of Name                                     | 21
|     
|7.6.  | Non-Competition; Non-Solicitation; Confidentiality | 21



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|      |                                                  |   
|----- | ------------------------------------------------ | --
|
|
|
|
|9.    | CONDITIONS TO CLOSING                            | 24
|     
|9.1.  | Conditions Precedent to Obligations of Purchaser | 24
|     
|9.2.  | Conditions Precedent to Obligations of Seller    | 25
|     
|10.   | INDEMNIFICATION                                  | 26
|     
|10.1. | Survival of Representations and Warranties       | 26
|     
|10.2. | Indemnification                                  | 26
|     
|10.3. | Indemnification Procedures                       | 26
|     
|11.   | TAXES                                            | 27
|     
|11.1. | Tax Liability                                    | 27
|     
|11.2. | Cooperation on Tax Matters                       | 27
|     
|11.3. | Indemnification                                  | 28
|     
|12.   | MISCELLANEOUS                                    | 28
|     
|12.1. | Expenses                                         | 28
|     
|12.2. | Specific Performance                             | 28
|     
|12.3. | Governing Law; Consent to Jurisdiction           | 28
|     
|12.4. | Entire Agreement; Amendments and Waivers         | 28
|     
|12.5. | Notices                                          | 29
|     
|12.6. | Severability                                     | 29
|     
|12.7. | Binding Effect; Assignment                       | 29
|     
|12.8. | Counterparts                                     | 30



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# LIST OF EXHIBITS

|          |   |                 |   |                                         
|--------- | - | --------------- | - | ----------------------------------------
|
|
|
|
|Exhibit 1 | - | Definitions     |   |                                         
|          |  
|          |   | Appendix 1-18   | - | Seller's Knowledge.                     
|          |  
|          |   | Appendix 1-28.1 | - | Transferred Intellectual Property.      
|          |  
|          |   | Appendix 1-28.3 | - | Seller's Backlog                        
|          |  
|          |   | Appendix 1-28.5 | - | Purchased Contracts                     
|          |  
|          |   | Appendix 1-28.8 | - | Purchased Proposals                     
|          |  
|          |   | Appendix 1-30   | - | Purchased Equipment.                    
|          |  
|          |   | Appendix 1-31   | - | Purchased Intellectual Property Licenses
|          |  
|          |   | Appendix 1-41   | - | Transferred Software                    
|          |  
|          |   | Appendix 1-42   | - | Transferred Trademarks                  

|                 |   |                                                            
|---------------- | - | -----------------------------------------------------------
|
|
|
|
|Exhibit 2.6.5    | - | Seller's NDAs which shall not inure to Purchaser's benefit.
|                
|Exhibit 4.2.1.2A | - | Seller's Shareholders Resolution                           
|                
|Exhibit 4.2.1.2B | - | Seller's Board Resolution                                  
|                
|Exhibit 4.2.1.3  | - | Seller's Officer's Certificate                             
|                
|Exhibit 4.2.1.6  | - | Employees' Counsel Letter                                  
|                
|Exhibit 4.2.1.7  | - | Legal Opinion                                              
|                
|Exhibit 4.2.1.8  | - | Shareholders' Non-Compete Undertaking                      
|                
|Exhibit 4.2.2.1  | - | Purchaser's Officer's Certificate                          
|                
|Exhibit 8.2      | - | Employees to whom Purchaser may extend an employment offer.
|                
|Exhibit 9.1.6    | - | Certain employees non-compete undertaking.                 
|                
|Exhibit A        | - | Escrow Agreement.                                          



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ASSET PURCHASE AGREEMENT

This ASSET PURCHASE AGREEMENT
(the "Agreement"), dated as of March 24, 2008, between ECTEL LTD., an Israeli
company (company no. 52-004446-2) ("Purchaser"); and COMPWISE LTD., an Israeli company
(company no. 51-218746-9) ("Seller").

W I T N E S S E T H:

WHEREAS,      
Seller is engaged in the Business (as defined below);

WHEREAS,      
 the Business is conducted with certain assets and liabilities of Seller;

WHEREAS,       
Seller desires to sell, transfer and assign to Purchaser, and Purchaser desires to
acquire and assume from Seller, all of the Purchased Assets and Assumed Liabilities and
to hire certain Employees (each, as hereinafter defined).

NOW,
THEREFORE, the parties hereby agree as follows:

|1. | DEFINITIONS
|-- | -----------

For
purposes of this Agreement, the terms set forth in Exhibit 1shall have the
meanings ascribed thereto in such Exhibit.

|2. | PURCHASE
AND SALE OF ASSETS; ASSUMPTION OF LIABILITIES
|-- | ------------------------------------------------------

2.1.         Purchase
and Sale of Assets. On the terms and subject to           the conditions
set forth in this Agreement, at the Closing, Purchaser shall           purchase, acquire
and accept from Seller, and Seller shall sell, transfer, and           assign to
Purchaser all of Sellers right, title and interest in, to and           under the
Purchased Assets, free and clear of all Liens.

2.2.        Excluded
Assets. Notwithstanding anything in Section 2.1 to           the contrary,
the Purchased Assets shall not include, and the Seller is not           selling to
Purchaser and Purchaser is not purchasing from Seller, any of the           rights,
properties or assets, whether tangible or intangible, real, personal or           mixed
which are not defined as Purchased Assets under this Agreement (the           Excluded
Assets).

2.3.        Employees.
Seller acknowledges that the Purchaser is           entering into this agreement not only
to acquire and assume from Seller all of           the Purchased Assets and Assumed
Liabilities but also to hire certain Employees           as specified in Section 8 of
this Agreement.

2.4.        Assumption
of Liabilities. On the terms and subject to the           conditions set
forth in this Agreement, at the Closing, Purchaser shall assume           and acquire,
effective as of the Closing, all support and maintenance           obligations arising
under the Purchased Contracts which are required to be           performed following the
Closing Date, including with respect to products and           services delivered by
Seller prior to Closing(collectively, the Assumed           Liabilities):

2

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2.5.        Excluded
Liabilities. Purchaser will not assume or be           liable, directly or
indirectly, for any Excluded Liabilities. Excluded           Liabilities shall
mean all Liabilities of Seller other than the           Assumed Liabilities.

2.6.        Further
Conveyances and Assumptions; Consent of Third           Parties.

| | 2.6.1.        From
time to time following the Closing and without additional consideration to           the
Seller, Seller and Purchaser shall, and shall cause their respective           Affiliates
to, execute, acknowledge and deliver in a reasonably prompt manner,           all such
further conveyances, notices, assumptions, releases and such other           instruments,
and shall take such further actions, in each case, as may be           commercially
reasonably necessary or appropriate to assure fully to Purchaser           and its
respective successors or assigns, all of the properties, rights, titles,
          interests, remedies, powers and privileges intended to be conveyed to Purchaser
          under this Agreement and the Seller Documents, as defined in Section 5.3 below,
          and to assure fully to Seller and its Affiliates and their successors and
          assigns, the assumption of the Assumed Liabilities, and to otherwise make
          effective the transactions contemplated hereby and thereby, provided that          each
party shall bear its own expenses in connection with the foregoing.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.6.2.        Notwithstanding
anything to the contrary contained in this Agreement, to the           extent the sale,
assignment, transfer, or attempted sale, assignment, transfer           to the Purchaser
of any Purchased Asset is prohibited by any applicable law or           would require any
Governmental Body or third-party authorizations, approvals,           consents or waivers
and such authorizations, approvals, consents or waivers           shall not have been
obtained prior to the Closing Date, and the obtaining           thereof is not a
condition to the Closing, then following the Closing, and           without limiting the
provisions set forth in Section 7.3, the Seller shall be           deemed to hold the
respective Purchased Asset and all rights and privileges with           respect thereto
as a trustee for the sole benefit of the Purchaser and shall           manage such
Purchased Asset solely in accordance with instructions of the           Purchaser. The
parties shall use their respective reasonable best efforts, and           cooperate with
each other, in order to obtain promptly such authorizations,           approvals consents
or waivers. Pending such authorization, approval, consent or           waiver, the
parties shall cooperate with each other in any reasonable and lawful
          arrangements designed to provide to the Purchaser the benefits of use of such
          Purchased Asset. Once such authorization, approval, consent or waiver for the
          sale, assignment and transfer of a Purchased Asset not sold, assigned or
          transferred at the Closing is obtained, the Seller shall promptly assign,
          transfer or cause to be assigned and transferred, such Purchased Asset to the
          Purchaser for no additional consideration. To the extent that any such
Purchased           Asset cannot be transferred or the full benefits of use of any such
Purchased           Asset cannot be provided to the Purchaser at Closing, the Purchaser
and the           Seller shall enter into such arrangements for no additional
consideration from           the Purchaser (including subleasing or subcontracting if
permitted) to provide           to the Purchaser the operational equivalent of obtaining
such authorization,           approval, consent or waiver. Without limitation of the
foregoing, in the event           that, at the Closing, the registration of any
Transferred Intellectual Property           in the name of the Purchaser with the
relevant Governmental Body was not yet           completed and perfected. Then, without
limitation of any other rights of the           Purchaser, to the extent necessary to
grant to the Purchaser full and           unrestricted use of such Transferred
Intellectual Property, the Seller hereby           grants to the Purchaser, effective as
of the Closing and subject to any           Purchased Intellectual Property Licenses, an
irrevocable, perpetual, royalty           free, fully paid, worldwide, unrestricted,
exclusive license to make any use or           exploitation with respect thereto.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3

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| | 2.6.3.        In
the event that during the period of 24 months following the Closing, the
          Purchaser discovers any Contract, Software, Copyright, trademark or other item
          of Intellectual Property or any other asset owned by the Seller as of the
          Closing and used in conducting the Business prior to Closing (an
          Additional Asset), which is not included in the Purchased
          Assets or the Transferred Intellectual Property, then Purchaser may request the
          Seller in writing to license or transfer such Additional Asset, as applicable
          under this Section, to Purchaser in accordance with the provisions hereunder,
as           if such item had been identified as a Purchased Asset or Transferred
          Intellectual Property under this Agreement, for no additional consideration. As
          soon as practicable after receipt by the Seller, from the Purchaser, of such
          request as aforesaid, the Seller, shall provide written confirmation (unless
the           Seller, in good faith believes that such Purchased Asset should not be so
          treated) and, such item shall be deemed to have been transferred or licensed as
          described in this Section. If the Seller so discovers any such Additional
Asset,           it shall notify the Purchaser and, at Purchasers written request,
the           Seller shall be deemed to have licensed or transferred such Additional
Asset to           Purchaser in accordance with the terms of this Section.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.6.4.        To
the extent any amount due to Purchaser under a purchased Account Receivable           or
that is otherwise related to the Business, is paid by a Third Party to           Seller,
then Seller shall promptly forward such amounts in full to Purchaser.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.6.5.        The
Purchaser shall be entitled to benefit from the rights of the Seller under           all
the non-disclosure, non-competition (including non-solicitation, to the           extent
there is an actual breach thereof) and assignment agreements (not           including the
exhibits attached to this Agreement), provisions and arrangements           to which the
Seller is a party, which are related to the Purchased Assets, the           Transferred
Intellectual Property or current or former employees of Seller who           are or were
engaged in the Business (the NDA Agreements)           solely to the
extent that such NDA Agreements relate to the Purchased Assets, or           the
Transferred Intellectual Property, and except as set forth in Exhibit
          2.6.5. In case of a claimed infringement or breach by any Third
          Party under an NDA Agreement related to the Purchased Assets or the Transferred
          Intellectual Property, at the request of the Purchaser, Seller shall institute
          Legal Proceedings and take any other reasonable actions, at the reasonable
          direction of Purchaser, against such infringing or breaching party. All
expenses           incurred by Seller, including reasonable fees for the time spent by
          Sellers employees, shall be borne and paid by Purchaser (unless such
Legal           Proceedings also relate to protection of Sellers rights relating to
          activities other than the Business in which case such expenses shall be borne
by           Seller and Purchaser equally), and Seller shall not be required to take any
such           actions unless all such expenses are paid in advance or are otherwise
guaranteed           by Purchaser. Seller shall not settle or compromise or permit a
default or           consent to entry of any judgment without the consent of the
Purchaser, which           shall not be unreasonably withheld. Nothing herein shall
restrict           Purchasers rights to pursue any action to which it is legally
entitled           independently of Seller.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | CONSIDERATION.
|-- | --------------

3.1.        Consideration.
The aggregate consideration for the           Purchased Assets shall be (a) an amount in
cash equal to NIS 4,323,138(four           million three hundred twenty three thousand
one hundred and thirty eight New           Israeli Shekels) plus USD 35,674 (thirty five
thousand six hundred seventy four           United States dollars), plus EURO 5,405 (five
thousand four hundred and five           Euro), plus GBP 2,400 (two thousand four hundred
GBP) to be paid in accordance           with and subject to this Agreement (the Purchase
Price), and           (b) the assumption of the Assumed Liabilities (together
with the Purchase Price,           the Total Consideration).

3.2.        Payment
of Purchase Price. Payment of the Purchase Price           shall be
effected by the transfer, at the Closing, of the Purchase Price to the           Escrow
Agent to be held by the Escrow Agent pursuant to the Escrow Agreement

4

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|4. | CLOSING
AND TERMINATION
|-- | -----------------------

4.1.        Closing
Date. Subject to the satisfaction of the conditions           set forth in
Sections 9.1 and 9.2 hereof, the closing of the purchase and sale           of the
Purchased Assets and the assumption of the Assumed Liabilities (the Closing)
shall take place at the offices of Meitar,           Liquornik, Geva & Leshem,
Brandwein, located at 16 Abba Hillel Rd.,           Ramat-Gan, Israel (or at such other
place as the parties may designate in           writing) at 10:00 a.m. (Israel. time) on
a date to be specified by the parties           (the Closing Date),
which date shall be no later than the           second Business Day after satisfaction or
waiver of the conditions set forth in           Section 9, unless another time or date,
or both, are agreed to in writing by the           parties hereto.

4.2.        Deliveries
at Closing. At the Closing, the following           actions and
occurrences will take place, all of which shall be deemed to have           occurred
simultaneously and no action shall be deemed to have been completed and           no
document or certificate shall be deemed to have been delivered, until all
          actions are completed and all documents and certificates delivered.

| | 4.2.1.        Seller
shall deliver to Purchaser:
| | ------------------------------------------------

| | 4.2.1.1.        Assets.  The
Purchased Assets, in a manner as set forth in           this Agreement.
| | ----------------------------------------------------------------------------------------------------

| | 4.2.1.2.         Shareholders and
Board Resolutions. Shareholders and Board resolutions in the form
attached as Exhibit 4.2.1.2.
| | ---------------------------------------------------------------------------------------------------------------------------------

| | 4.2.1.3.        Officers
Certificate.  A certificate signed by a           director of Seller and
another executive officer or director of Seller           authorized to such effect by
the Board Directors of Seller, in the form attached           as Exhibit 4.2.1.2.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.2.1.4.         Confirmation
regarding Liens.  A written confirmation from the Companies Registrar
and the Registrars of Pledges confirming that there is no Lien over any of the
Purchased Assets.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.2.1.5.        Promissory
Note.  (i) A written, irrevocable, signed           instruction
letter, provided to Seller, by each Person who holds convertible           promissory
notes of the Seller (other than Fish Holdings Ltd., Dseymi Ltd. and           Moshe Indig
(the Three PN Holders)), instructing Seller to           convert Sellers
aggregate debt to each such Person into a specified number           of shares of Seller
and waiving any existing or future claims against the Seller           and/or Purchaser
with respect to such convertible promissory note (including           conversion
thereof), subject to the closing of the transaction contemplated           herein; (ii) A
written, irrevocable, signed letter from each of the Three PN           Holders, in a
form satisfactory to Purchaser, confirming that each of the Three           PN Holders
has no objection to the transactions contemplated hereby, and waives           any claim
against Seller and/or Purchaser in connection therewith; and (iii) A           written
confirmation of the Seller that (a) all debt convertible into securities           of the
Seller has been converted, except for the debt to the Three PN Holders;           and (b)
the Persons who holds convertible promissory note of the Seller           immediately
prior to the Closing (other than the Minority Creditors) have waived           any
existing or future claims against the Seller and/or the Purchaser with           respect
to such convertible promissory note (including conversion thereof).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5

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| | 4.2.1.6.        Employees Counsel
Letter. A letter, substantially in           the form of Exhibit 4.2.1.6,
signed by legal counsel for           all of Sellers current and former employees
to whom Seller is indebted (as           set forth in Schedule 5.6.3)
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.2.1.7.        Legal
Opinion. An opinion of S. Freidman & Co., legal           counsel to
the Seller, addressed to the Purchaser and dated as of the Closing           Date, in the
form of Exhibit 4.2.1.7.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.2.1.8.        Shareholders
Confidentiality, Non-Compete / Non-Solicitation,           Non-Publicity Undertakings.
A Confidentiality, Non-Compete           non-Solicitation Non-Publicity undertaking in
the form of Exhibit           4.2.1.8,signed by each of Dynamic
Participaties B.V. and West EndTechnology Investments Ltd.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.2.1.9.        Escrow
Agreement. The Escrow Agreement, duly executed by           the Seller and
the Escrow Agent.
| | -------------------------------------------------------------------------------------------------------------------

| | 4.2.2.        Purchaser
shall deliver to Seller:
| | ------------------------------------------------

| | 4.2.2.1.        Officers
Certificate. A certificate signed by           an executive officer
of Purchaser dated as of the Closing Date, in the form           attached as Exhibit
4.2.2.1;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.2.2.2.        Escrow
Agreement. The Escrow Agreement duly executed by           Purchaser.
| | --------------------------------------------------------------------------------------------

| | 4.2.2.3.        Purchase
Price. Purchaser shall deliver the Purchase Price           to the Escrow
Agent.
| | ---------------------------------------------------------------------------------------------------------

4.3.           Termination
of Agreement. This Agreement may be terminated           prior to the
Closing as follows:

| | 4.3.1.        At
the election of Seller or Purchaser, on or after May 8, 2008, if the Closing
          shall not have occurred by the close of business on such date, provided
          that the terminating party is not in material default of any of its
          obligations hereunder or has not caused any of the conditions set forth in
          Section 9 not to have occurred;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.3.2.        By
mutual written consent of Seller and Purchaser;
| | ----------------------------------------------------------------

| | 4.3.3.        By
Seller or Purchaser if there shall be in effect a final non-appealable Order           of
a Governmental Body of competent jurisdiction restraining, enjoining or
          otherwise prohibiting the consummation of the transactions contemplated hereby
          or a material portion thereof;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.3.4.        By
Purchaser if there shall have been a material breach by Seller or any
          Shareholder of any representation, warranty, covenant or agreement of Seller or
          such Shareholder set forth in this Agreement, which breach would give rise to a
          failure of a condition set forth in Sections 9.1.1 or 9.1.2 and is incapable of
          being cured or, if capable of being cured, shall not have been cured within 15
          days following receipt by Seller of notice of such breach from Purchaser; or
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.3.5.        By
Seller if there shall have been a material breach by Purchaser of any
          representation, warranty, covenant or agreement of Purchaser set forth in this
          Agreement, which breach would give rise to a failure of a condition set forth
in           Sections 9.2.1 or 9.2.2 and is incapable of being cured or, if capable of
being           cured, shall not have been cured within 15 days following receipt by
Purchaser           of notice of such breach from Seller. This Section 4.3.5 shall not
apply to the           payment of the Purchase Price, provided, however, that
presentation of a           confirmation from Purchasers bank that the required
amounts have been           transferred shall be considered as payment of the Purchase
Price.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6

---

---

4.4.        Procedure
Upon Termination. In the event of termination and           abandonment by
Purchaser or Seller, or both, pursuant to Section 4.3           hereof, written
notice thereof shall forthwith be given to the other party or           parties, and this
Agreement shall terminate, except for Sections 4.5, 12.3,           12.3, and 12.5 of
this Agreement, which shall remain in full force and effect.

4.5.        Effect
of Termination. In the event that this Agreement is           validly
terminated as provided herein, then each of the parties shall be           relieved of
their duties and obligations arising under this Agreement after the           date of
such termination and such termination shall be without liability to the
          terminating party; provided, however, that nothing in this Section 4.5
          shall relieve Purchaser or Seller of any liability for a willful and material
          breach of this Agreement prior to the effective date of such termination.

|5. | REPRESENTATIONS
AND WARRANTIES OF SELLER
|-- | ----------------------------------------

Except
as otherwise set forth in the disclosure schedule delivered by the Seller to the Purchaser
on the date hereof (the Disclosure Schedule), the Seller represents and
warrants to the Purchaser as of the date hereof and as of the Closing Date as set forth
below:

5.1.        Organization
and Good Standing. Seller is a company duly           organized and
validly existing under the laws of the State of Israel and Seller           has all
requisite corporate power and authority to own, lease and operate the           Purchased
Assets and to carry on the Business as now conducted. Seller is duly           qualified
or authorized to do business as a foreign corporation and is in good           standing
under the laws of each jurisdiction in which the conduct of the           Business or
ownership of Purchased Assets requires such qualification or           authorization,
except where failure to be so qualified would not have a Material           Adverse
Effect. Sellers Memorandum of Association Articles of Associations           as in
effect on the date hereof have been provided to Purchaser.

5.2.        Subsidiaries.
Schedule 5.2 sets forth           a list of each Subsidiary and each
other Affiliate of Seller that is currently           engaged, has in the past engaged or
currently intends to engage in the Business           or that has title to any Purchased
Asset or Assumed Liability, together with its           jurisdiction of organization, as
well as all other Subsidiaries and Affiliates           of Seller. Except as set forth in
Schedule 5.2, each such           Subsidiary and Affiliate is duly
organized and validly existing under the Laws           of its jurisdiction of
organization and has all requisite corporate or similar           power and authority to
own, lease, use and operate the Purchased Assets owned,           leased, used or
operated by it and is duly qualified to do business and is in           good standing as
a foreign corporation or other entity (in any jurisdiction that           recognizes such
concept) in each jurisdiction where the ownership, lease, use or           operation of
its properties and assets comprising the Purchased Assets requires           such
qualification, except where failure to comply would not have a Material           Adverse
Effect.

5.3.        Authorization
of Agreement. Seller has all requisite power,           authority and
legal capacity to execute and deliver this Agreement and Seller           has all
requisite power, authority and legal capacity to execute and deliver           each other
agreement, document, instrument or certificate contemplated by this           Agreement
or to be executed by Seller in connection with the consummation           of the
transactions contemplated by this Agreement (together, the Seller Documents),
to perform their respective obligations           hereunder and thereunder and to
consummate the transactions contemplated hereby           and thereby. The execution and
delivery of this Agreement and the Seller           Documents and the consummation of the
transactions contemplated hereby and           thereby have been duly authorized by all
requisite corporate action on the part           of Seller, except for Sellers
stockholder approval which will be obtained           prior to Closing. This Agreement
has been, and each of the Seller Documents will           be at or prior to the Closing,
duly and validly executed and delivered by Seller           which is a party thereto and
(assuming the due authorization, execution and           delivery by the other parties
hereto and thereto) this Agreement constitutes,           and each of Seller Documents
when so executed and delivered will constitute,           legal, valid and binding
obligations of Seller, enforceable against Seller in           accordance with their
respective terms.

7

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Seller
has not: (i) received any notice from any applicable Governmental Body in their
respective states of incorporation that its registration may be revoked, stricken or
erased; (ii) admitted an inability to pay its debts generally as they become due,
filed or consented to the filing against it of a petition in bankruptcy, liquidation
winding up, stay of proceedings, plan of arrangement or any similar proceeding, or
(iii) consented to the appointment of a receiver, liquidator, trustee or special
manager for itself or for any substantial part of its properties, or made any
determination in respect of the distribution of its assets (the forgoing collectively
referred to below as Bankruptcy Events). No notice, written or oral,
has been received of any Action for, or the intent of any Person to request to seek or
pursue, any remedy under or in connection with a Bankruptcy Event and the Seller is not
aware of any such intent of any Person. The board of directors of the Seller and the Board
of Directors of each Shareholder have determined that, considering the financial position
and Liabilities of the Seller following the Closing, no reasonable concern exists that the
Seller will be unable to fulfill the obligations of the Seller to its creditors and its
obligations under this Agreement.

5.4.        Conflicts.
The execution, delivery and performance of this           Agreement or any Seller
Documents by the Seller does not and will not           (a) violate or conflict with
the [Memorandum of Association], Articles of           Association or any other
organizational or charter documents of Seller;           (b) conflict with or
violate any Law or Order; (c)  result in any           breach of, or constitute a
default (or event which with the giving of notice or           lapse of time, or both,
would become a default) under, or give to any Person any           rights of termination,
amendment, acceleration or cancellation of any note,           bond, mortgage, indenture,
contract, agreement, lease, license, permit,           franchise or other instrument to
which the Seller is a party or to which any           properties of Seller is subject; or
(d) result in the creation of any Lien           on any assets held, leased,
licensed, owned or used by Seller.

5.5.        Consents
of Third Parties. Except as set forth in Schedule 5.5,
the execution and delivery of this Agreement           and the Seller Documents by the
Seller does not, and the performance of this           Agreement by the Seller,
including, without limitation, transfer and assignment           of all the Purchased
Assets, will not, require any consent, approval,           authorization or other action
by, or filing with or notification to, any           Governmental Body or any other
Person.

5.6.         Financial
Information; No Undisclosed Liabilities.

| | 5.6.1.        Schedule
5.6.1 sets forth the audited, consolidated balance           sheet of the
Seller as of December 31, 2005 and December 31, 2006, and the           related
statements of shareholders equity, cash flow and results of           operations of
the Seller for the year ended December 31, 2005 and for the year           ended December
31, 2006, and the unaudited balance sheet of the Seller as of           October 31, 2007
(collectively, the Financial Statements).           Such Financial
Statements are true and correct, were prepared in accordance with           GAAP, applied
on a basis consistent with past practice and present fairly the           financial
position and results of operations of the Seller, as of the dates and           for the
periods indicated.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 5.6.2.        Seller
has provided purchaser with all relevant information in connection with           the
preparation of Sellers unaudited financial statements for the year of
          2007 (the 2007 FS). Neither the information nor any other
          statement or certificate made or delivered by the Seller in connection with the
          preparation of the 2007 FS contains any untrue statement of a fact or omits to
          state a fact necessary for the preparation of the 2007 FS. There is no fact or
          information relating to the business, prospects, condition (financial or
          otherwise), affairs, operations, or assets of the Seller known by the Seller,
          that has not been disclosed to the Purchaser in connection with the preparation
          of the October Balance Sheet.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.6.3.        Seller
does not have any indebtedness or currently existing Liabilities of any           kind
with respect to the Purchased Assets, the Assumed Liabilities and the           Business
or otherwise, other than those set forth in Schedules           5.6 and
Schedule 5.6.3. Schedules           5.6 and 5.6.3 include, inter alia, the names           of the Persons (including,
without limitation, any of the Sellers former           or current employees,
shareholders, suppliers and any applicable Governmental           Body) with respect to
which each Liability is incurred (the           Creditors).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.7.        Title
to Purchased Assets; Sufficiency. The Seller holds           good and
marketable title to and has valid interests in all of the Purchased           Assets free
and clear of any and all Liens (collectively, Permitted           Liens).
The Seller is not in default or in breach of any provision           which is required to
be performed by it under any of its leases or licenses and           holds a valid
ownership, leasehold or licensed interest in the Purchased Assets           not outright
owned by it. The Purchased Assets are in good operating condition           and repair,
reasonable wear and tear excepted, and conform in all material           respects with
all applicable Laws. The Purchased Assets include all assets,           rights,
properties, licenses and permits, contracts and other benefits that are
          necessary in order to allow the Purchaser to continue after the Closing to
          conduct the Business as presently conducted and as contemplated to be
conducted,           and, other than the Purchased Assets there are no other assets,
properties or           rights owned, used, held, or licensed by the Seller or any third
party which are           necessary in order to allow the Purchaser to continue after the
Closing to           conduct the Business as presently conducted and as contemplated to
be conducted.           The Purchaser has good, valid and marketable title to all of the
Purchased           Assets, free and clear of any Liens and any adverse claims by any
Person, and           the Purchaser shall have full right and power to the peaceful and
quite usage           and possession rights of the Purchased Assets so transferred. The
Purchaser           shall be subject to no limitations, obligations or restrictions with
regard to           the sale, license, distribution or other transfer or exploitation of
the           Purchased Assets, whether in the form transferred to it or after
modification,           except for any such limitation, obligations or restrictions that
are created by           Purchaser or are derived from agreements to which it is a party
(including           Purchased Intellectual Property Licenses).

5.8.        Absence
of Certain Developments. Except as expressly           contemplated by
this Agreement or as set forth in Schedule           5.8, since
December 31, 2006 (i) Seller has conducted the           Business only in the
Ordinary Course of Business and (ii) there has not           been any event, change,
occurrence or circumstance that has had or could           reasonably be expected to have
a Material Adverse Effect as of the date hereof.           Without limiting the
generality of the foregoing, since December 31, 2006:

| | 5.8.1.        There
has not been any damage, destruction or loss, whether or not covered by
          insurance, with respect to the Purchased Assets;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 5.8.2.        Seller
has not sold, leased, transferred, assigned, conveyed or otherwise           disposed of
any of its respective assets of the Business (whether tangible or           intangible);
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.8.3.        Seller
has not mortgaged, pledged or subjected to any Lien any of the Purchased
          Assets, or acquired any assets used or held for use in the Business;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.8.4.        Seller
has not granted any license or sublicense of any rights under or with           respect
to the Transferred Intellectual Property;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.8.5.        Seller
has not made any loan (other than advances of expenses) or entered into           any
other transaction with Employees or its Affiliates, has not granted any           bonuses
to such Employees or increased the compensation of any Employee; and
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.8.6.        Seller
has not agreed, committed, arranged or entered into any understanding to           do
anything set forth in this Section 5.8.
| | --------------------------------------------------------------------------------------------------------------------------------------------------

5.9.        Intellectual
Property.

| | 5.9.1.        Schedule
5.9.1 sets forth an accurate and complete list of           all Patents,
registered Marks, pending applications for registrations of any           Marks,
unregistered Marks used since January 1, 2002, registered Copyrights and
          pending applications for the registration of Copyrights which are included in
          the Transferred Intellectual Property. Schedule 5.9.1 lists
          all of the jurisdictions in which each such item of Transferred Intellectual
          Property has been issued or registered or in which any such application for
such           issuance or registration has been filed. Each item of Transferred
Intellectual           Property is valid and subsisting, and has not been abandoned or
passed into the           public domain.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.9.2.        Except
as disclosed on Schedule 5.9.2, Seller is the           sole
and exclusive owner of all right, title and interest in and to all the
          Transferred Intellectual Property, including the Patents, the Marks, the
          Copyright and the Software included therein. All Transferred Intellectual
          Property either (i) was invented or created by employees of Seller, acting
          within the scope of their employment, or by Third Parties (including
          consultants, independent contractors, representatives, former employees or
          agents of Seller), all of which employees and Third Parties have validly and
          irrevocably assigned all of their rights, title and interest including
          Intellectual Property rights therein, to Seller or the Subsidiaries, and no
          Third Party (including any employee of Seller) owns or has any rights, title
and           interest to any of such Transferred Intellectual Property, or (ii) is duly
and           validly licensed to Seller or any of the Subsidiaries for use, license or
sale           in the manner currently used, licensed or sold by Seller or the
Subsidiaries in           the operation of the Business, as it is currently conducted, in
either case,           free and clear of all Liens or obligations to others (except for
such           obligations to customers under agreements specified in Schedule 5.9.5).
Except as disclosed on Schedule 5.9.2, no Person who has
licensed any           Transferred Intellectual Property to Seller or any of the
Subsidiaries has any           ownership rights or license rights to improvements or
derivative works made by           Seller or any of the Subsidiaries with respect to such
Transferred Intellectual           Property.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.9.3.        The
operation of the Business as currently conducted, including the use of the
          Transferred Intellectual Property in connection with the Business, and the
          present business practices and methods of Seller and the Subsidiaries as part
of           the Business, do not infringe, misappropriate or constitute the unauthorized
use           of any Intellectual Property of any Person, violate the right to privacy or
          publicity of any person, defame or libel any Person, constitute unfair
          competition or trade practices under the laws of any jurisdiction, and do not
          violate, infringe, misappropriate or constitute an unauthorized use, of any
          other right of any Person. The Transferred Intellectual Property, including the
          Purchased Intellectual Property Licenses, include all of the Intellectual
          Property currently used by Seller in the Business as currently conducted, and
in           Sellers reasonable business judgment, the Transferred Intellectual
          Property, including the Purchased Intellectual Property Licenses, constitute
          Intellectual Property which is sufficient to conduct the Business as currently
          being conducted, without giving effect to any intended use by Purchaser after
          the Closing that is in any material way different from the conduct of the
          business by Seller prior to Closing.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 5.9.4.        Except
with respect to licenses of commercial off-the-shelf Software, and except
          pursuant to the Purchased Intellectual Property Licenses listed on Schedule 5.9.5,
Seller is not required, obligated, or           under any Liability, to make any payments
by way of royalties, fees or otherwise           to any owner, licensor of, or other
claimant to any Transferred Intellectual           Property, or to any other person, with
respect to the use thereof or in           connection with the conduct of the Business as
currently conducted.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.9.5.        Schedule 5.9.5 sets
forth a complete and accurate list           of all material Contracts currently in
effect to which Seller is a party which           are related to the Business (i) consisting
of any Purchased Intellectual           Property Licenses, (ii) pursuant to which Seller
has granted to any Third Party           any right to use, license or sell any of the
Transferred Intellectual Property,           (iii) containing a covenant limiting the
ability of the Seller to exploit any of           the Transferred Intellectual Property
or (iv) containing an agreement to           indemnify any Person against any claim that
the use or other exploitation of the           Transferred Intellectual Property by such
Third Party violates, infringes,           misappropriates or constitutes an unauthorized
use of any Intellectual Property           rights or any other rights of any Person.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.9.6.        Each
of the Purchased Intellectual Property Licenses is in full force and effect
          and, is the legal, valid and binding obligation of the parties thereto,
          enforceable against Seller, or to the Knowledge of Seller against the other
          parties thereto, in accordance with its terms. Seller is not in material
default           under any Purchased Intellectual Property License, nor, to the
Knowledge of           Seller, is any other party to a Purchased Intellectual Property
License in           material default thereunder, and no event has occurred that with the
lapse of           time or the giving of notice or both would constitute a default
thereunder. No           party to any of the Purchased Intellectual Property Licenses has
exercised any           termination rights with respect thereto.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.9.7.        No
Transferred Trade Secret relating to the Business as presently conducted has
          been authorized to be disclosed or has been actually disclosed by Seller to any
          employee, Affiliate or any Third Party other than pursuant to a non-disclosure
          agreement restricting the disclosure and use of such Transferred Trade Secret.
          Seller has taken reasonable security measures to protect the secrecy,
          confidentiality and value of all the Trade Secrets of Seller that constitute
          part of the Transferred Intellectual Property and any other non-public,
          proprietary information, including invention disclosures, not covered by any
          Patents owned by Seller that constitute part of the Transferred Intellectual
          Property, which measures are reasonable in the industry in which Seller
operate.           Except as set forth in Schedule 5.9.7, each
employee,           consultant, independent contractor, representative and agent of
Seller that was           engaged in the past three years has entered into a written
non-disclosure and           invention assignment agreement with Seller.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.9.8.        As
of the date hereof, Seller is not the subject of any pending Legal Proceeding
          brought by any Person against Seller, or to the Knowledge of Seller, any
          threatened Legal Proceedings which involves a claim of infringement,
          unauthorized use, or violation of any Intellectual Property or other right, or
          which challenges the ownership, use, validity or enforceability of any
          Transferred Intellectual Property or to Sellers Knowledge any Purchased
          Intellectual Property Licenses. Seller has not received written (including,
          without limitation, by electronic mail) notice of any such threatened claim
          against Seller of infringement, unauthorized use, or violation of any
          Intellectual Property or other right, or challenging the ownership, use,
          validity or enforceability of any Transferred Intellectual Property or any
          Purchased Intellectual Property Licenses.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 5.9.9.        Seller
has no Knowledge of any facts or information that: (i) would render           any
Transferred Intellectual Property or any Purchased Intellectual Property
          License invalid or unenforceable, or (ii) would adversely affect or impede
          the ability of Seller to use any Transferred Intellectual Property or any
          Purchased Intellectual Property Licenses in the conduct of the Business as it
is           currently conducted. Seller has no Knowledge of any misrepresentation or
failure           to disclose, any fact or circumstances in any application or other
filing with           respect to, any Transferred Intellectual Property that would
constitute fraud or           a misrepresentation with respect to such application or
other filing or that to           Sellers Knowledge would otherwise affect the
validity or enforceability of           any registration with respect to any Transferred
Intellectual Property.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.9.10.        All
registration, maintenance, renewal or any other fees in connection with each
          item of Transferred Intellectual Property have been paid, and all material
          documents and certificates in connection with Transferred Intellectual Property
          have been filed with the relevant authorities for the purpose of maintaining
the           registrations, recordation, filings and effectiveness with respect to any
          Transferred Intellectual Property. There are no actions that must be taken by
          Seller, or the Purchaser within forty five (45) days following the Closing
Date,           including the payment of any registration, maintenance or renewal fees or
the           filing of any responses to office actions, documents, applications or
          certificates for the purposes of obtaining, maintaining, perfecting, preserving
          or renewing any Transferred Intellectual Property registered in, or for which
          application was made. To the maximum extent provided for by, and in accordance
          with, Laws, Seller has recorded in a timely manner each assignment of
registered           Transferred Intellectual Property assigned to Seller with the
relevant           governmental authority, including the United States Patent and
Trademark Office           or their respective counterparts in any relevant foreign
jurisdiction, as the           case may be.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.9.11.        To
the Knowledge of Seller, no Person is infringing, violating, misusing or
          misappropriating any Transferred Intellectual Property of Seller or to
          Sellers Knowledge any Purchased Intellectual Property Licenses, and no
          such claims have been made in writing against any Person by Seller.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.9.12.        There
are no Orders to which Seller is a party or by which Seller is bound which
          restrict the rights to use any of the Transferred Intellectual Property or any
          Purchased Intellectual Property Licenses.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.9.13.        The
consummation of the transactions contemplated hereby will not result in the
          loss or impairment of Purchasers right to own or use any portion of the
          Transferred Intellectual Property or any Purchased Intellectual Property
          Licenses, assuming receipt of the consents under such Purchased Intellectual
          Property Licenses specified in Appendix 1-31.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.9.14.        To
Sellers Knowledge, no present or former employee, consultant,           independent
representative, agent or contractor of Seller has any right, title,           or
interest, directly or indirectly, in whole or in part, in any Transferred
          Intellectual Property. To the Knowledge of Seller, no employee, consultant,
          independent representative, agent or contractor of Seller is, as a result of or
          in the course of such employees, consultants or independent
          contractors engagement by Seller in connection with the Transferred
          Intellectual Property, in default or breach of any material term of any
          non-disclosure agreement, assignment of invention agreement or similar
          agreement.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 5.9.15.        Schedule
5.9.15 sets forth (i) a complete and accurate list           of all
Software that is owned exclusively by Seller and is used in the operation           of
the Business and (ii) a complete and accurate list of all Software that is           used
by Seller in the operation of the Business that is not exclusively owned by
          Seller, except for standard off the shelf Software.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.9.16.        The
Software referred to in clause (i) of Section 5.9.15 operate in a manner           which
is substantially in conformity and compliance with all specifications           relating
thereto or to the design, performance, operation, test, support and           maintenance
of such Software, and other documentation relating to such technical
          specifications. All Software included as Purchased Assets shall be delivered at
          Closing (i) free of any viruses, including any Trojan horse, worm, harmful or
          disruptive component, or computer programming code intentionally constructed to
          damage, interfere with or otherwise adversely effect other codes, computer
          programs, data files or operations, and (ii) free of any code that would
disable           or shut down, in whole or in part, any material computer program,
including any           device or method that permits any person to circumvent the normal
security of           the Software.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.9.17.        Schedule
5.9.17 sets forth a complete list of all Contracts           pursuant to
which any source code that relates to, or is part of, any           Transferred
Intellectual Property has been placed in escrow for the benefit of           any Third
Party. Neither the execution of this Agreement, the Seller Documents           nor any of
the transactions contemplated hereby or thereby will cause the           release of or
give any Person the right to demand any source code or other data           or
information from any escrow agreement or similar arrangement to which the
          Seller is party and which relate to or is part of any Transferred Intellectual
          Property.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.9.18.        Except
as set forth in Schedule 5.9.18, Seller does not use           or
has the right to use any Software which is open source or           free
software or subject to any public license or to any license the           terms of
which are analogous to the foregoing, under the terms of which it may           be
required to, among others, disclose or distribute any such Intellectual
          Property in source code form, to license any such Intellectual Property for the
          purpose of making derivative works, or to distribute any such Intellectual
          Property without charge
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.9.19.        Schedule
5.9.19 contains a list of all research and           development projects
currently in progress which are conducted by Seller that           relate both to the
Business.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.10.        Material
Contracts. Schedule 5.10          contains a complete
and accurate list of all Material Contracts as of the date           hereof. Each of the
Material Contracts is in full force and effect and is the           legal, valid and
binding obligation upon Seller, enforceable against them in           accordance with its
terms. Seller is not in material default under any Material           Contract, nor, to
the Knowledge of Seller, is any other party to any Material           Contract in
material default thereunder, and no event has occurred that with the           lapse of
time or the giving of notice or both would constitute a default           thereunder. No
party to any of the Material Contracts has exercised any           termination rights
with respect thereto. Seller has not waived any material           rights under any
Material Contract. Seller has, and will transfer to Purchaser           at the Closing,
good and valid title to the Material Contracts, free and clear           of all Liens,
subject to receipt of any necessary Third Party consents. Seller           has delivered
or otherwise made available to Purchaser true, correct and           complete copies of
all of the Material Contracts, together with all amendments,           modifications or
supplements thereto. Except as set forth in Schedule           5.10,
there are no outstanding obligations or undertakings,           including without
limitation, maintenance, support and warranty and similar           obligations under any
of the Material Contracts, which are required to be           performed following the
Closing. The terms of the Material Contracts which are           required to be performed
by Seller and that after Closing will be required to be           performed by Purchaser,
are not, as of the date hereof, in any violation of any           applicable Law.

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5.11.        Employee
Matters.

| | 5.11.1.        Schedule
5.11.1 contains a list of the names of all the           employees who are
employed by Seller in connection with the Business (the           Employees),
and all consultants who are providing services to           the Seller in connection with
the Business (the Consultants),           including their title, their
employment start date, and the terms of their           employment including salaries,
social and other benefits and entitlements.           Except as disclosed in Schedule
5.11.1,   Seller is not in           default with respect to any of its
obligations relating to the salaries or           benefits owed to the Employees or the
Consultants. All Employees involved in the           Business are engaged by the Seller,
and other than the Employees, there are no           other employees or consultants
involved in the Business and engaged by the           Seller.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.11.2.        Seller
is not a party to any collective bargaining agreement with any labor           union
applicable to the Employees. To the best of Sellers Knowledge there           are
no representation or certification proceedings or petitions seeking a
          representation or certification proceeding pending or threatened to be brought
          or filed with any labor relations tribunal involving the Employees.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.11.3.        Except
as set forth in Schedule 5.11.3, there are no
          grievances, unfair labor practices or employment discrimination charges,
          complaints or claims of the employees against Seller that is either pending,
or,           to the best of Sellers Knowledge, threatened before any Governmental
Body.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.11.4.        No
Employee is or will be entitled to any compensation, bonus, severance pay or
          any other benefits or entitlements on account of or resulting from any action
          taken by Seller in connection with any of the transactions contemplated under
          the Agreement or on account of or resulting from the termination of any
          Employees or their recruitment by the Purchaser except (i) as set forth in
Schedule 5.11.4, (ii) rights and benefits provided
          under applicable Law but solely to the extent so provided in such applicable
          Laws, and (iii) amounts due from Seller Employee Plans which have been
          fully funded and will be payable solely by such Employee Plans.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.11.5.        Schedule
5.11.5 contains an accurate and complete list of           each Employee
Plan and each Employee Agreement. Seller has made available to the           Purchaser or
its counsel true, complete and correct copies of (i) the most           recent plan
documents, adoption agreements, summary plan descriptions, and all           amendments
thereto for each Employee Plan, and (ii) the most recent actuarial           and audit
reports for each Employee Plan for which such reports are available.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.11.6.        Each
Employee Plan, including plans maintained for the benefit of Employees           outside
of Israel, has been established and maintained in accordance with its           terms and
all applicable Laws and (i) all contributions to each such Employee           Plan
required through the Closing Date have been and will be made by Seller,           (iii)
each Employee Plan is either fully funded (or fully insured) based upon
          generally accepted local actuarial and accounting practices and procedures or
          adequate accruals for each Employee Plan have been made in Sellers
          financial statements in accordance with GAAP, (iii) there are no judicial,
          regulatory, arbitration or similar proceedings, inquiries, investigations or
          audits pending, or, to the Sellers knowledge, threatened or anticipated
          (other than routine claims for benefits) against any Employee Plan or against
          the assets of any Employee Plan; (iv)  Seller is not subject to any
penalty           or Tax with respect to any Employee Plan and (v) no event has occurred
and no           condition or circumstance has existed or exists which may reasonably be
expected           to result in the disqualification of such Employee Plan.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 5.11.7.        Except
as set forth on Schedule 5.11.7, all amounts           that
Seller is legally or contractually required either (i) to deduct from           any
Employees salary or to transfer to such Employees pension or
          provident, life insurance, incapacity insurance, continuing education fund or
          other similar fund or (ii) to withhold from any Employees salary and
          pay to any Governmental Body as required by applicable Laws have, in each case,
          been duly deducted, transferred, withheld and paid, and Seller does not have
any           outstanding obligation to make any such deduction, transfer, withholding or
          payment.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.12.        Litigation.
Except as set forth on Schedule 5.12, there is no Legal
Proceeding or           governmental investigation pending or, to the Knowledge of
Seller, threatened by           or against Seller (including without limitation, any
claims for assessment or           collection of Taxes on any Purchased Assets) or that
seeks to impair, prohibit           or restrain the ability of Seller to enter into this
Agreement or any Seller           Document, as applicable, or to consummate any of the
transactions contemplated           hereby or thereby and (ii) Seller is not subject to
any Order, and to the           Knowledge of Seller, there are no Orders threatened to be
imposed on Seller in           respect of the Business or any Purchased Asset.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.13.        Compliance
with Laws; Permits.

| | 5.13.1.        Except
as set forth in Schedule 5.13, Seller is, and at all           times
has been, in compliance in all material respects with all Laws applicable           to
the Business or the Purchased Assets. Seller has not received any written or
          other notice of or been charged with the violation of any Law affecting the
          Business or the Purchased Assets. To the Knowledge of Seller, Seller is not
          under investigation with respect to the violation of any Laws affecting the
          Business or the Purchased Assets.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.13.2.        Seller
holds all Permits which are required for the operation of the Business as
          currently conducted. Seller is not in default or violation (and no event has
          occurred which, with notice or the lapse of time or both, would constitute a
          default or violation) in any material respect of any term, condition or
          provision of any such Permit.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.14.        Insurance.
The Seller does not carry any insurance coverage           with respect to its assets
and/or operations. Since January 1, 2002, no material           claim by Seller for
coverage under any insurance policy (or any predecessor           policies) has been
denied.

5.15.        Accounts
Receivable and Payable.

| | 5.15.1.        Schedule
5.15.1 sets forth the Sellers expected           Backlog, deferred
revenues and Purchased Accounts Receivable of the Business as           of December 31,
2007, all of which form part of the Purchased Assets.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.15.2.        All
the Purchased Accounts Receivable have arisen from bona fide transactions in
          the ordinary course of business. All the Purchased Accounts Receivable
reflected           on the Financial Statements and Schedule 5.15.1 hereto
were           recorded in a manner consistent with past practice and in accordance with
GAAP           consistently applied. Seller has not taken any action to cause the
Purchased           Accounts Receivables not to be collectible in accordance with their
terms, such           as waiver or extension of payment terms. All goods and services to
be delivered           underlying the Purchased Accounts Receivable have been fully and
timely           delivered in accordance with their respective terms. None of the
Purchased           Accounts Receivable (i) are subject to any setoffs or counterclaims
or (ii) for           goods and services on sale or return basis or other repurchase
arrangements.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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5.16.        Related
Party Transactions. Neither the Seller, any           Affiliate of Seller
or any of their respective officers, directors, shareholders           or employees (i) owns
any direct or indirect interest of any kind in, or           controls or is a director,
officer, employee or partner of, or consultant to, or           lender to or borrower
from or has the right to participate in the profits of,           any Person which is (A) a
competitor, supplier, customer, creditor or           debtor of the Business, or (B) a
participant in any transaction to which           Seller is a party on behalf of the
Business or (ii) is a party to any           Contract with Seller acting on behalf
of the Business.

5.17.        Customers
and Suppliers.

| | 5.17.1.        Schedule
5.17 sets forth a list of all customers of the           Business during
the period from January 1, 2006 to June 30 , 2007 and all           suppliers that Seller
believes are the major suppliers of the Business.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.17.2.        Except
as set force in Schedule 5.17.2, since January 1,           2006, no
customer or supplier of the Business listed in Schedule           5.17 has
terminated its relationship with Seller or materially           reduced or changed the
pricing or other terms of its business with Seller and no           customer or supplier
listed on Schedule 5.17 has indicated to           Seller that it intends to
terminate or materially reduce the scope or pricing           terms of its business with
Seller.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.17.3.        To
Sellers best Knowledge, and after having conducted a thorough
          investigation, except as set force in Schedule 5.17.3,
          Seller is not in default under any oral or written contract with any customer,
          and no event has occurred that, with the lapse of time or the giving of notice
          or both, would constitute a default thereunder.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.17.4.        Schedule
5.17.4 lists Sellers installed base of           systems in the
Business, by customer, including location of each system, date of           installation,
and warranty and service obligations.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.17.5.        Seller
has made available to Purchaser copies of all Contracts currently           outstanding
between Seller and customers of Seller in the Business and all other           Contracts
of Seller that, are relevant for the continuation of the Business by           Purchaser.
Seller has also used commercially reasonable efforts to provide           Purchaser with
information regarding ongoing contacts with potential customers.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.18.        Product
Warranty; Product Liability.

| | 5.18.1.        Except
as set forth on Schedule 5.18, each product           manufactured,
sold or delivered by Seller under any Purchased Contract has been           in conformity
with all product specifications and all express and implied           warranties. Seller
does not have any Liability for replacement or repair of any           such products or
other damages in connection therewith or any other customer or           product
obligations. Seller has provided Purchaser with true and complete copies           of all
warranties, warranty policies, service and maintenance agreements related           to
the Purchased Assets and Assumed Liabilities. All such warranties are in
          conformity with the requirements of applicable Laws. Schedule
          5.18 sets forth a true and accurate list of all warranty claims
          in respect of the Business or the Purchased Assets since January 1, 2006
          requiring from Seller either disconnection of a product, replacement of a
          product or payment of damages or penalties (whether liquidated or not).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 5.18.2.        Seller
has not, in conducting the Business committed any act or failed to commit           any
act, which resulted in, and there has been no occurrence which gives rise to           or
form the basis of, any product and professional Liability or Liability for
          breach of warranty (whether covered by insurance or not) on the part of Seller
          with respect to products included in the Business and that were designed,
          manufactured, assembled, repaired, maintained, delivered or installed or
          services rendered prior to the Closing.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.19.        Financial
Advisors. No person has acted, directly or indirectly,           as a broker,
finder or financial advisor for Seller in connection with the           transactions
contemplated by this Agreement that would result in the obligation           of Purchaser
to pay any finders fee, brokerage fee, commission or similar           payment in
connection with the transactions contemplated hereby.

5.20.        Best
Offer. Since the beginning of 2007, Seller has           conducted several
negotiations with potential purchasers for the sale of           Sellers business
or Sellers shares. None of such negotiations           materialized due to
commercial reasons. Seller is not aware of any superior           offer currently
available to Seller with respect to the purchase of           Sellers Business or
shares. Seller is of the opinion that the transaction           contemplated by this
Agreement is the best offer available to Seller as of the           date hereof and as of
the Closing.

5.21.        Full
Disclosure. Neither this Agreement, the Disclosure           Schedule or
any Exhibit , Appendix or Schedule hereto or thereto, nor any           documents,
certificates or other items prepared or supplied or to be prepared or           supplied
by the Seller with respect to the transactions contemplated hereby           contains or
will contain an untrue statement or omits to state a material fact           necessary to
make the statements contained herein or therein, in light of the           circumstances
under which they were made and taken as a whole, not misleading.           No statement
made by the Seller with respect to the transactions contemplated           hereby
contains or will contain an untrue fact or omits to state a material fact
          necessary to make such statements, in light of the circumstances under which
          they were made and taken as a whole, knowingly misleading. There is no material
          fact which Seller has not disclosed to Purchaser in writing which adversely
          affects or could adversely affect the Business or the prospects, condition
          (financial and otherwise), operations, property or affairs of Seller. It is
          hereby agreed that any effect which results in damages of USD30,000 (thirty
          thousand United States dollars) or more shall for the purpose of this section
          5.21 be deemed to be a material adverse effect.

|6. | REPRESENTATIONS
AND WARRANTIES OF PURCHASER
|-- | -------------------------------------------

Purchaser
hereby represents and warrants to Seller as of the date hereof and as of the Closing Date
as set forth below:

6.1.        Organization
and Good Standing. Purchaser is a corporation           duly organized,
validly existing and in good standing under the laws of the           State of Maryland
and has all requisite corporate power and authority to own,           lease and operate
its business.

6.2.        Authorization
of Agreement. Purchaser has full corporate           power and authority
to execute and deliver this Agreement and each other           agreement, document,
instrument or certificate contemplated by this Agreement or           to be executed by
Purchaser in connection with the consummation of the           transactions contemplated
hereby and thereby (the Purchaser           Documents), and to
consummate the transactions contemplated hereby and           thereby. The execution,
delivery and performance by Purchaser of this Agreement           and each Purchaser
Document have been duly authorized by all necessary corporate           action on behalf
of Purchaser. This Agreement has been, and each Purchaser           Document will be at
or prior to the Closing, duly executed and delivered by           Purchaser and
(assuming the due authorization, execution and delivery by the           other parties
hereto and thereto) this Agreement constitutes, and each Purchaser           Document
when so executed and delivered will constitute, legal, valid and           binding
obligations of Purchaser, enforceable against Purchaser in accordance           with
their respective terms.

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6.3.        Conflicts;
Consents of Third Parties.

| | 6.3.1.        Neither
of the execution and delivery by Purchaser of this Agreement and of           Purchaser
Documents, nor the compliance by Purchaser with any of the provisions           hereof or
thereof will (i) conflict with, or result in a violation of, any           provision
of the organizational documents of Purchaser, (ii) violate any           statute,
rule, regulation or Order of any Governmental Body by which Purchaser           is bound,
or (iii) any applicable Law.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.3.2.        No
consent, waiver, approval, Order, Permit or authorization of, or declaration           or
filing with, or notification to, any Person or Governmental Body is required           on
the part of Purchaser in connection with the execution and delivery of this
          Agreement or Purchaser Documents or the compliance by Purchaser with any of the
          provisions hereof or thereof.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6.4.        Full information.
Without derogating from the           Sellers representations set forth in this
Agreement, the Purchaser           represents that it has had an opportunity to ask
questions and receive answers           from the Seller regarding the Seller, its
business and the terms and conditions           pursuant to which the Purchased Assets
are being sold and the Assumed           Liabilities are being assumed. The Purchaser has
also received from the Seller           certain documents and responses to its questions
and requests. Purchaser is           aware of the nature of the Transferred Software
owned by the Seller and found           same satisfactory and it is willing to purchase
such Transferred Software owned           by the Seller based upon its own inquiries.

|7. | COVENANTS
|-- | ---------

7.1.        Access
to Information. Seller agrees that, prior to the           Closing Date,
Purchaser shall be entitled, through its officers, employees           and
representatives, to make such reasonable investigation of the properties,           and
operations of Seller and such examination of the books and records and to           make
extracts and copies of such books and records of Seller , in each case,
          including without limitation, correspondence with contacts at potential
          customers of the Business. Any such investigation and examination shall be
          conducted during regular business hours and under reasonable circumstances and
          Seller shall reasonably cooperate fully therein. No investigation by Purchaser
          prior to or after the date of this Agreement shall diminish or obviate any of
          the representations, warranties, covenants obligations or agreements of Seller
          or Purchaser or of any of their respective Affiliates contained in this
          Agreement or the Seller Documents. All information referred to in this Section
          7.1 shall be subject to the Mutual Non Disclosure Agreement between Seller and
          Purchaser, dated May15, 2007, which shall continue to be in full force and
          effect.

7.2.        Conduct
of the Business Pending the Closing.

| | 7.2.1.        From
and after the date hereof and until the Closing Date, except as otherwise
          expressly provided by this Agreement or with the prior written consent of
          Purchaser, which shall not be unreasonably withheld, Seller shall:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.1.1.        use
their reasonable commercial efforts to (A) preserve the present Business
          operations, organization (including all Employees) and goodwill of the Business
          and (B) preserve the present relationships with Persons having business
dealings           with Seller in the conduct of, or relating to, the Business, including
customers           and suppliers;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 7.2.1.2.        maintain
(A) all of the Purchased Assets in their current condition, ordinary           wear and
tear excepted and (B) insurance upon all of the Purchased Assets           in such
amounts and of such kinds comparable to that in effect on the date of           this
Agreement;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.1.3.        (A)
maintain the books, accounts and records of Seller relating to the Business           in
the ordinary course of business, (B) continue to collect accounts
          receivable and pay accounts payable and other Liabilities and Taxes consistent
          with past practice in the Ordinary Course of Business, utilizing normal
          procedures and without materially discounting or accelerating payment of such
          accounts, and (C) comply with all material contractual and other
          obligations applicable to the operation of the Business, including those
          included in the Purchased Contracts;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.1.4.        maintain
all Permits relating to the Business in full force and effect;
| | ---------------------------------------------------------------------------------------

| | 7.2.1.5.        provide
Purchaser with prompt notice of any material damage, destruction or           loss,
whether or not covered by insurance, with respect to the Purchased Assets           or
any other event that could reasonably be expected to have a Material Adverse
          Effect;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.1.6.        pay
all maintenance and similar fees and take all other appropriate actions as
          necessary to prevent the abandonment, loss or impairment of all Transferred
          Intellectual Property;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.1.7.        comply
in all material respects with all applicable Laws; and consult with           Purchaser
regarding all material terms including financial terms of all           negotiations with
customers of the Business for the supply of goods or services           or in preparation
of responses to RFPs or bids for tenders in connection           with the Business,
it being clarified that Purchaser shall have no veto rights           with respect
thereto, however, Purchaser shall have no obligation to assume any           proposal
that was not so approved by Purchaser;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.1.8.        not
take any action which would adversely affect the ability of the parties to
          consummate the transactions contemplated by this Agreement.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.2.        Except
as otherwise expressly provided by this Agreement or with the           prior written
consent of Purchaser, which shall not be unreasonably withheld,           Seller shall
not:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.2.1.        hire
any new employee to serve in the Business or, except as required under this
          Agreement, terminate any Employee, or, except as may be required pursuant to
any           applicable Law, (A) increase the level of compensation of any Employee, (B)
          increase the coverage or benefits available under any (or create any new)
          Employee Plan made to, for, or with any of the Employees or otherwise modify or
          amend or terminate any such Employee Plan, , or (C) enter into any
          employment, deferred compensation, severance, consulting or similar agreement
          (or amend any such agreement) to which Seller is a party or involving Employee
          in his or her capacity as an Employee;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.2.2.        subject
the Purchased Assets to any Lien or otherwise encumber or permit, allow           or
suffer to be encumbered, any of the Purchased Assets (whether tangible or
          intangible), except under any applicable Law;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 7.2.2.3.        acquire
any material properties or assets in connection with the Business or           sell,
assign, license, transfer, convey, lease or otherwise dispose of any of           the
Purchased Assets ;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.2.4.        enter
into or agree to enter into any merger or consolidation with any           corporation or
other entity;
| | -----------------------------------------------------------------------------------------------------------------------------

| | 7.2.2.5.        cancel
or compromise any debt or claim or waive or release any material right of
          Seller in respect of the Purchased Assets;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.2.6.        enter
into any commitment for capital expenditures relating to the Business in           excess
of $1,000 for any individual commitment and $5,000 for all commitments in           the
aggregate;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.2.7.        make
any expenditures in excess of $1,000 for any individual expenditure and           $10,000
for all expenditures in the aggregate, provided however,that           Seller
shall be allowed to make the following expenditures which shall not be           counted
towards the abovementioned caps:payment of monthly rent in           accordance
with Sellers currently in force lease agreement, and payment of
          municipality property tax (Arnona) and utilities fess (i.e.,
          electricity, water, telephone and internet);
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.2.8.        introduce
any material change with respect to the operation of the Business,           including
any material change in the types, nature, composition or quality of           products or
services, or make any material change in product specifications or           terms of
distributions of such products;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.2.9.        enter
into any transaction relating to the Business which is not in the ordinary
          course of business or modify or renew any Purchased Contract;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.2.10.        enter
into any Contract;
| | -----------------------------------------

| | 7.2.2.11.        Terminate,
materially amend, restate, supplement or waive any material rights           under any (A) Material
Contract or Purchased Intellectual Property License           or (B) Permit;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.2.12.        make
or change any election in respect of Taxes, adopt or change any accounting
          method in respect of Taxes, file any amendment to a Tax Return, enter into any
          closing agreement, settle any claim or assessment in respect of Taxes, or
          consent to any extension or waiver of the limitation period applicable to any
          claim or assessment in respect of Taxes, in each case related primarily to the
          Business, the Purchased Assets or the Assumed Liabilities, except, in each
case,           with respect to any of the foregoing that relates to the Taxes payable in
          connection with this transaction, provided that,Purchaser shall not
          unreasonably withhold its consent to the making or changing of such election if
          such election could not have a material adverse effect on the Seller and/or the
          Purchaser; or
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2.2.13.        agree
to do anything prohibited by this Section 7.2.2
| | ----------------------------------------------------------------------

7.3.        Shut
Down.

| | 7.3.1.        As
promptly as practicable after the execution and delivery of this Agreement,           the
Seller will take prompt actions to dispose of all its Liabilities and bring           the
Seller to an orderly shut down.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 7.3.2.        Immediately
after the Closing, the Seller shall take all required actions in           order to
liquidate the Seller, including without limitation, obtaining board           consent and
convening an extraordinary shareholders meeting for the purpose of           approving
such liquidation and the appointment of the liquidator, to the extent
          applicable.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7.4.        Regulatory
and Other Authorizations; Consents. The Seller           shall use its
reasonable best efforts to obtain all authorizations, consents,           orders and
approvals of all Governmental Bodies and any third Persons that may           be or
become necessary for the execution and delivery of, and the performance of           the
obligations pursuant to, this Agreement including for the transfer of all           the
Purchased Assets hereunder without any additional liability or obligation to
          the Purchaser, other than the Assumed Liabilities, and will cooperate fully
with           the Purchaser and such Governmental Body and third Persons in promptly
seeking           to obtain all such authorizations, consents, orders and approvals, both
before           and after Closing. The Purchaser will, to the extent reasonably
necessary,           cooperate with Seller with respect to the Sellers efforts to
obtain the           authorizations, consents, orders and approvals contemplated by this
Section 7.3.           In the event that under this Agreement, any authorizations,
consents, orders and           approvals are not a condition to the Closing, then Seller
shall continue to be           bound by this Section 7.3 after the Closing in order to
obtain the foregoing as           soon as reasonably possible after the Closing

7.5.        Change
of Name. Until the Closing, the Seller shall change           its name and
shall immediately cease using the Trademarks, the trade-names and           domain names
included in the Transferred Intellectual Property, and shall, as of           the Closing
, cease to do business under a corporate name or trade name that           incorporates
such Trademarks or trade names or any marks or names substantially           similar or
confusingly similar thereto and the Purchaser shall be entitled to           fully use
such Trademarks, the trade-names and domain names included in the           Transferred
Intellectual Property as well as corporate name. Following the           Closing,
Purchaser shall be entitled to take all steps necessary for the removal           of the
name of the Seller from any Register of Record of Trademark registered           users in
any office or agency of any government or organization, and the Seller           will
render any assistance required by the Purchaser in connection with such
          removal.

7.6.        Non-Competition;
Non-Solicitation; Confidentiality.

| | 7.6.1.        In
order that the Purchaser may have and enjoy the full benefit of the Purchased
          Assets, Seller, shall not, directly or indirectly, from the Closing Date hereof
          until the expiration of 24 (twenty four) months after the Closing (the
          Non-Compete Period): (i) own, manage operate, finance, join,
          control or participate in the ownership, management, financing, operation,
          business or control of or otherwise be involved in any way in any business or
          Person anywhere in the world that at any time during the Non-Compete Period:
(a)           engages in the developing, producing, offering, distributing, selling or
          supporting of products or services similar to, or directly or indirectly
          competitive with, the products and services that are included in the Business,
          as conducted and as proposed to be conducted; (b) engages in any activity
          concerning Intellectual Property that is competitive with the Transferred
          Intellectual Property or any other technology developed or contemplated to be
          developed by the Purchaser during the Non-Compete Period, in each case, which
          are directly or indirectly related to, derived from, on the basis of, or
          resulting from, directly or indirectly, the Transferred Intellectual Property;
          or (c) is otherwise directly or indirectly competing with the Purchaser or any
          of its Subsidiaries; or (ii) initiate or maintain any contact with any Person
          associated with Seller in the past and/or the present regarding all matters
          relating to the Purchased Assets in a manner that interferes with the use of
the           Purchased Assets by Purchaser after Closing. The Seller acknowledges that
the           consideration received by the Seller hereunder is paid in consideration, in
          part, for the non-compete obligations hereunder and that in light of the nature
          of this transaction, the interest that the Seller has in the success of the
          Purchaser and the critical significance of the non-compete covenant to the
          Purchasers business and to its willingness to enter into this Agreement
          and pay the Purchase Price, the non-compete covenant is reasonable and fair in
          the circumstances.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 7.6.2.        To
the extent the Company is not liquidated prior to the expiration of 24           (twenty
four) months after the Closing, the Seller shall not, until the           expiration of
24 (twenty four) months after the Closing, and shall cause all the           Affiliates
directly or indirectly controlled by Seller not to: (i) cause,           solicit,
induce or encourage any Employees who become employees of Purchaser (or           any
Affiliate thereof) to leave such employment or otherwise engage any such
          individual, provided that nothing herein shall be deemed to be a limitation on
          soliciting, retaining or engaging such person if the termination of his or her
          engagement by Purchaser or its Affiliates was not the result of a prohibited
          solicitation hereunder, provided that a period of at least 90 days after such
          termination has elapsed; (ii) solicit, induce or encourage any Employees
          who shall have received offers of engagement by Purchaser and have refused such
          offers, to become or continue to be employees or consultants of Seller,
provided           that such restriction shall expire 180 days after the later of Closing
or           termination of such Employees by Seller, or (iii) cause, induce or
          encourage any material actual or prospective client, customer, supplier or
          licensor of the Business (including any existing or former customer of Seller
          and any Person that becomes a client or customer of the Business after the
          Closing) or any other Person who has a business relationship with the Business,
          to terminate or adversely modify any such actual or prospective relationship.
In           addition, to the extent that, during the period of three years after
Closing,           Seller is approached by any potential customer in the Business, then
Seller           shall refer such potential customer to the Purchaser.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.6.3.        From
and after the date hereof, Seller shall not and shall cause their           respective
Affiliates controlled by them and their respective employees,           officers and
directors not to, directly or indirectly, disclose, reveal, divulge           or
communicate to any Person other than authorized employees, officers and
          directors of Seller or use or otherwise exploit for its own benefit or for the
          benefit of anyone other than the Purchaser, any Purchaser Related Confidential
          Information.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | For
purposes of this Section 7.6, "Purchaser Related Confidential Information" shall
mean the transactions contemplated hereby and any Trade Secrets or other confidential
information with respect to the Purchased Assets, the Assumed Liabilities or the
Business. Purchaser Related Confidential Information does not include, and
there shall be no obligation hereunder with respect to, information that (i) is in
the public domain at the time of disclosure by Purchaser or subsequently becomes so
through no fault of Seller; (ii) was known to Seller or in its possession at the
time of disclosure without any confidentiality obligation; (iii) is furnished to
Seller by a third party having a lawful right to do so; (iv) was explicitly approved
for release by written authorization of Purchaser; or (v) is disclosed in response
to a valid order of a court or other governmental body with jurisdiction over Seller or
Purchaser, but only to the extent of and for the purposes of such order, provided,
however, that Seller shall first notify Purchaser in writing of the order, and permit
Purchaser to seek an appropriate protective order.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.6.4.        The
covenants and undertakings contained in this Section 7.6 relate to matters
          which are of a special, unique and extraordinary character and a violation of
          any of the terms of this Section 7.6 will cause irreparable injury to the
          Purchaser, the amount of which will be impossible to estimate or determine and
          which cannot be adequately compensated. Therefore, the Purchaser will be
          entitled to an injunction, restraining order or other equitable relief from any
          court of competent jurisdiction in the event of any breach of this Section 7.6.
          The rights and remedies provided by this Section 7.6 are cumulative and in
          addition to any other rights and remedies which Purchaser may have hereunder or
          at Law or in equity. In the event that Purchaser were to seek damages for any
          breach of this Section 7.6, the portion of the Purchase Price which is
allocated           by the parties to the foregoing covenant shall not be considered a
measure of or           limit on such damages.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 7.6.5.        The
parties hereto agree that, if any court of competent jurisdiction in a final
          non-appealable judgment determines that a specified time period, a specified
          geographical area, a specified business limitation or any other relevant
feature           of this Section 7.6 is unreasonable, arbitrary or against public
policy, then a           lesser time period, geographical area, business limitation or
other relevant           feature which is determined to be reasonable, not arbitrary and
not against           public policy may be enforced against the applicable party.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7.7.        Publicity.
Seller and any Affiliate thereof shall not issue           any press release or
announcement concerning the transactions contemplated           hereby without the prior
consent of the Purchaser. Seller will assist the           Purchaser in the preparation
of a release or announcement and subject to           applicable Law, Purchaser shall
provide the Seller reasonable time to comment on           such release or announcement
in advance of such issuance.

7.8.        Notification
of Certain Matters. Each party shall give           prompt notice to the
other parties of (i) the occurrence or nonoccurrence           of any event which
has caused or would be likely to cause any representation or           warranty contained
in this Agreement by such first party to be untrue or           inaccurate in any
material respect at or prior to the Closing; (ii) any           material failure by
such first party to comply with or satisfy in any material           respect any covenant
condition or agreement to be complied with or satisfied by           it hereunder; (iii)
any material notice or other material communication of which           such party has
knowledge from any Governmental Body or other Person in           connection with the
transactions contemplated by this Agreement; (iv) any           Actions commenced or to
the knowledge of such party threatened against, relating           to, involving or
otherwise affecting, the Purchased Assets which, if pending on           the date of this
Agreement, would individually or in the aggregate have or would           reasonably be
expected to have a Material Adverse Effect or which relate to the           consummation
of the transactions contemplated by this Agreement; or (v) any           other material
adverse effect or any event that would materially impair such           partys
ability to perform its obligations under this Agreement. The           delivery of any
notice pursuant to this Section 7.8 shall not cure such breach           or
non-compliance or limit or otherwise affect the remedies available hereunder           to
the party receiving such notice.

|8. | EMPLOYEES
AND EMPLOYEE BENEFITS.
|-- | --------------------------------

8.1.        Seller
shall provide such assistance to Purchaser in the solicitation and hiring           of
such Employees as Purchaser shall reasonably request, without the same
          constituting any obligation or undertaking by the Seller that such solicitation
          will be successful.

8.2.        The
Purchaser may, prior to the Closing, make employment offers to each Employee
          listed in Exhibit 8.2 on Purchasers standard form.

8.3.        Termination
of Employees Employment. In furtherance           of the foregoing,
Seller shall terminate all Employee Agreements and other           employment
arrangements with the Employees effective as of the Closing Date and           Seller
shall be liable for and shall pay all amounts due to such Employees with
          respect to their employment by Seller and all severance payments or other
          termination benefits (if any), due to any of the Employees as a result of the
          termination of their employment with Seller, subject to any settlement
          agreements to be entered into by Seller and such Employees (subject to
          applicable Law).

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8.4.        Nothing
contained in this Agreement shall confer upon any Employee any right           with
respect to continuance of employment by the Purchaser, nor shall anything
          herein interfere with the right of the Purchaser or the Seller to terminate the
          employment of any of the Employees at any time, with or without cause, in
          accordance with the provisions of the respective employment agreements
          therewith. No provision of this Agreement shall create any third party
          beneficiary rights for any Employee, or any beneficiary or dependents thereof,
          with respect to the compensation, terms and conditions of employment and
          benefits that may be provided to any Employee by the Purchaser or under any
          benefit plan which the Purchaser may maintain.

|9. | CONDITIONS
TO CLOSING
|-- | ---------------------

9.1.        Conditions
Precedent to Obligations of Purchaser. The           obligation of
Purchaser to consummate the transactions contemplated by this           Agreement is
subject to the fulfillment, on or prior to the Closing Date, of           each of the
following conditions, unless waived by it prior to Closing:

| | 9.1.1.        the
representations and warranties of Seller set forth in this Agreement shall           be
true and correct as of the date of this Agreement and as of the Closing as
          though made at and as of the Closing, except to the extent such representations
          and warranties expressly relate to an earlier date (in which case such
          representations and warranties shall be true and correct on and as of such
          earlier date);
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.1.2.        Seller
shall have performed and complied in all material respects with all           obligations
and agreements required in this Agreement to be performed or           complied with by
it prior to the Closing Date and Purchaser shall have received           copies of such
board and stockholders resolutions of Seller approving this           Agreement and
the transactions contemplated hereby;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.1.3.        (i) no
Legal Proceedings shall have been instituted against Seller or           Purchaser
seeking to substantially restrain or prohibit the consummation of the
          transactions contemplated hereby, and (ii) no written legal threat thereof
          shall be outstanding which is reasonably likely to be successful, and
          (iii) there shall not be in effect any Order by or any objection from a
          Governmental Body of competent jurisdiction restraining, enjoining or otherwise
          prohibiting or objecting to the consummation of the transactions contemplated
          hereby;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.1.4.        the
parties hereto shall have obtained any consent, approval, order or
          authorization of, or registration, declaration or filing with, any Governmental
          Body or Third Party, including without limitation, those Third Parties listed
in Schedule 5.5, required to be obtained or made in connection
          with the execution and delivery of this Agreement or the performance of the
          transactions contemplated herein; all in a form reasonably satisfactory to
          Purchaser;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.1.5.        each
and every one of those Employees listed on Exhibit 8.2 shall have
entered into a binding employment agreement with           Purchaser or any Affiliate
thereof;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.1.6.        each
and every one of those Employees who are employed by Seller upon execution           of
this Agreement and who shall not have, by Closing, signed an employment
          agreement with Purchaser, shall have entered into a binding non-compete
          agreement with Purchaser or any Affiliate thereof, in the form attached hereto
          as Exhibit 9.1.6 or substantially similar thereto;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 9.1.7.        there
shall not have occurred a Material Adverse Effect;
| | ----------------------------------------------------------------------

| | 9.1.8.        the
Purchaser shall have received all closing deliverables as set forth in           Section
4.2.1 in form and substance acceptable to the Purchaser;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.1.9.        the
Purchaser shall have received an executed resolution of the Sellers
          shareholders, approving, subject to Closing, the change of the name of the
          Seller to any other name that is not substantially similar or confusingly
          similar to Sellers current name; and
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.1.10.        No
customer has terminated its relationship with Seller or materially reduced or
          changed the pricing or other terms of its business with Seller and no customer
          has indicated to Seller that it intends to terminate or materially reduce the
          scope or pricing terms of its business with Seller.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.1.11.        Seller
shall have paid in full all payments required to be made to Third Parties           in
connection with the purchase of any Third Party Software, Hardware or           services
which are required to be delivered to any customer of the Seller under           any
Purchased Contract and for which payment has been received or will be           received
prior to the Closing by Seller [this may be part of the payments list.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9.2.        Conditions
Precedent to Obligations of Seller. The           obligation of Seller to
consummate the transactions contemplated by this           Agreement is subject to the
fulfillment, prior to or on the Closing Date, of           each of the following
conditions:

| | 9.2.1.        The
representations and warranties of Purchaser set forth in this Agreement           shall
be true and correct as of the date of this Agreement and as of the Closing           as
though made at and as of the Closing, except to the extent such           representations
and warranties expressly relate to an earlier date (in which           case such
representations and warranties shall be true and correct on and as of           such
earlier date);
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.2.2.        Purchaser
shall have performed and complied in all material respects with all           obligations
and agreements required by this Agreement to be performed or           complied with by
Purchaser on or prior to the Closing Date;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.2.3.        (i)
no Legal Proceedings shall have been instituted against Seller or Purchaser
          seeking to substantially restrain or prohibit the consummation of the
          transactions contemplated hereby, and (ii) there shall not be in effect any
          Order by or any objection from a Governmental Body of competent
          jurisdiction restraining, enjoining or otherwise prohibiting or objecting to
the           consummation of the transactions contemplated hereby;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.2.4.        the
parties hereto shall have obtained the consent, approval, order or
          authorization of, or registration, declaration or filing with, any Governmental
          Body required to be obtained or made in connection with the execution and
          delivery of this Agreement or the performance of the transactions contemplated
          herein in a form reasonably satisfactory to Seller; and
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.2.5.        the
Seller shall have received all closing deliverables as set forth in Section
          4.2.2 in form and substance acceptable to the Seller.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------

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|10. | INDEMNIFICATION.
|--- | ----------------

10.1.        Survival
of Representations and Warranties. The           representations and
warranties of the parties contained in Sections 5 and 6 of           this Agreement shall
survive the Closing through and including 24 months           following the Closing Date,
other than (i) claims for intentional           misrepresentation or fraud, or (ii) the
representations and warranties           included in Sections 5.7 (Title to Purchased
Assets; Sufficiency), 5.9           (Intellectual Property), 5.11 (Employee Matters) and
5.13 (Compliance with Laws;           Permits); all of which shall survive the Closing
until the expiration of the           applicable statute of limitations (in each case,
the Survival           Period); provided, however, that any
obligations to indemnify           and hold harmless shall not terminate with respect to
any Losses as to which the           Person to be indemnified shall have given notice
(stating in reasonable detail           the basis of the claim for indemnification) to
the indemnifying party in           accordance with Section 10.3.1 before the
termination of the applicable           Survival Period.

10.2.        Indemnification.
Subject to Section 10.1, the Seller           hereby agrees to indemnify and hold
Purchaser, its Affiliates and their           respective directors, officers, employees,
agents, attorneys, representatives,           successors and assigns (collectively, the
Purchaser Indemnified           Parties) harmless from and against:

| | 10.2.1.        any
and all direct losses, liabilities, obligations, direct damages, costs and
          expenses (individually, a Loss and, collectively,
          Losses) based on, arising under or resulting from the
failure           of any representation or warranty of Seller set forth in this Agreement
or in           any Seller Document, to be true and correct at the date hereof and at the
          Closing Date;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10.2.2.        any
and all Losses based on, arising under or resulting from the breach of any
          covenant or other agreement on the part of Seller under this Agreement or any
          Seller Document;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10.2.3.        any
and all Losses based on, arising under or resulting from any Excluded Asset           or
any Excluded Liability; and
| | ---------------------------------------------------------------------------------------------------------------------------------------

| | 10.2.4.        any
and all notices, actions, suits, proceedings, claims, demands, assessments,
          judgments, costs, penalties and expenses, including reasonable attorneys          and
other professionals fees and disbursements (collectively,           Expenses)
incident to any and all Losses with respect to           which indemnification is
provided hereunder.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10.3.        Indemnification
Procedures.

| | 10.3.1.        Legal
Proceedings. In the event that any Legal Proceedings           shall be
instituted or that any claim or demand (Claim) shall           be
asserted by any Person in respect of which payment may be sought under           Section 10.2
hereof, the indemnified party shall reasonably and promptly           cause written
notice of the assertion of any Claim of which it has knowledge           which is covered
by this indemnity to be forwarded to the indemnifying party; provided, however,
that the failure to give any such notice shall not           release the indemnifying
party from any obligations hereunder except to the           extent it is actually
prejudiced thereby. The indemnifying party shall have the           right, at its sole
expense, to be represented by counsel of its choice, which           must be reasonably
satisfactory to the indemnified party, and to defend against,           negotiate, settle
or otherwise deal with any Claim which relates to any Losses           indemnified
against hereunder. If the indemnifying party elects to defend           against,
negotiate, settle or otherwise deal with any Claim which relates to any           Losses
indemnified against hereunder, it shall within fifteen (15) days (or           sooner, if
the nature of the Claim so requires) notify the indemnified party of           its intent
to do so. If the indemnifying party elects not to defend against,           negotiate,
settle or otherwise deal with any Claim which relates to any Losses           indemnified
against hereunder or fails to notify the indemnified party of its           election as
herein provided, the indemnified party may defend against,           negotiate, settle or
otherwise deal with such Claim. If the indemnified party           defends any Claim
pursuant to the preceding sentence, then the indemnifying           party shall reimburse
the indemnified party for the Expenses of defending such           Claim upon submission
of periodic bills. If the indemnifying party shall assume           the defense of any
Claim, the indemnified party may participate, at its own           expense, in the
defense of such Claim; provided, however, that such           indemnified party
shall be entitled to participate in any such defense with one           separate counsel
at the expense of the indemnifying party if so requested by the           indemnifying
party to participate. The parties hereto agree to cooperate fully           with each
other in connection with the defense, negotiation or settlement of any           such
Claim. Notwithstanding anything in this Section 10.3 to the contrary,           neither
the indemnifying party nor the indemnified party shall, without the           written
consent of the other party, settle or compromise any indemnifiable Claim           or
permit a default or consent to entry of any judgment unless the settlement
          consists exclusively of the payment of money damages and the claimant and such
          party provide to such other party an unqualified release from all liability in
          respect of the indemnifiable Claim.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 10.3.2.        Escrow
Fund. NIS 2,000,000 out of the Purchase Price (the           Escrow
Fund) shall be deposited with the Escrow Agent at           Closing, and shall
be used as a primary source for Purchaser Indemnified Parties           to recover any
amount to which they may be entitled from Seller according to           this Agreement.
The use of the Escrow Fund shall be governed by the Escrow           Agreement.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10.3.3.        Tax
Treatment of Indemnity Payments. Seller and Purchaser           agree to
treat any indemnity payment made pursuant to this Section 10 as an           adjustment
to the Purchase Price for all Tax purposes. If, notwithstanding the           treatment
required by the preceding sentence, any indemnification payment           received by the
Purchaser is determined to be taxable by any Taxing Authority,           the Seller shall
also indemnify the Purchaser for any Taxes incurred by reason           of the receipt of
such payment and any Expenses incurred by the Purchaser, in           connection with
such Taxes (or any asserted deficiency, claim, demand, action,           suit,
proceeding, judgment or assessment, including the defense or settlement
          thereof, relating to such Taxes).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11. | TAXES.
|--- | ------

11.1.        Tax
Liability.

| | 11.1.1.        Seller
shall be solely liable for any capital or income tax which may be imposed           on it
in connection with the transaction contemplated hereby.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.1.2.        Except
as otherwise provided in this Agreement, as among the parties hereto, (i)           the
Seller shall be responsible for and pay all Taxes levied or imposed upon, or           in
connection with, the Purchased Assets or the conduct or operation of the
          Business on or before the Closing Date, (ii) Purchaser shall be responsible for
          and pay all Taxes incurred in connection with the use of the Purchased Assets
by           Purchaser after the Closing Date.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11.2.        Cooperation
on Tax Matters. Purchaser and Seller shall           furnish or cause to
be furnished to each other, as promptly as practicable, such           information and
assistance relating to the Purchased Assets and the Assumed           Liabilities as is
reasonably necessary for the preparation and filing of any Tax           Return, claim
for refund or other required filings relating to Tax matters, for           the
preparation for any Tax audit, for the preparation for any Tax protest, for           the
prosecution or defense of any suit or other proceeding relating to Tax           matters,
or as may be reasonably requested by a party from time to time so as to           allow
such party to comply with any filing or reporting obligation imposed on           such
party under applicable Law or requested by such partys auditors.

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11.3.        Indemnification.
Subsequent to the Closing Date, the Seller           shall indemnify and hold harmless
Purchaser and its Affiliates from and against           (i) any Taxes of the Seller for
any taxable year or taxable period that ends on           or before the Closing Date, (ii) any
Taxes of the Seller for any taxable           year or taxable period that commences
before and ends after the Closing Date           (Straddle Period)
which are allocable to the portion of such           Straddle Period deemed to end on the
Closing Date (on a pro-rata basis) and           (iii) all Taxes of any member of an
affiliated, consolidated, combined or           unitary group of which the Seller (or any
predecessor of any of the foregoing)           is or was a member on or prior to the
Closing Date, local or foreign law or           regulation. The indemnity obligations of
this Section shall include, in           addition to the Taxes set forth in clauses
(i) through (iii) also all Losses and           Expenses incurred by Purchaser and its
Affiliates in connection therewith

|12. | MISCELLANEOUS
|--- | -------------

12.1.        Expenses.
Except as otherwise provided in this Agreement,           each of Seller and Purchaser
shall bear its own expenses incurred in connection           with the negotiation and
execution of this Agreement and each other agreement,           document and instrument
contemplated by this Agreement and the consummation of           the transactions
contemplated hereby and thereby.

12.2.        Specific
Performance. The parties acknowledge and agree           that the breach
of this Agreement would cause irreparable damage to the parties           and that the
parties will not have an adequate remedy at law. Therefore, the           obligations of
the parties under this Agreement, including Sellers           obligation to sell
the Purchased Assets to Purchaser and Purchasers           obligation to pay the
Purchase Price, shall be enforceable by a decree of           specific performance issued
by any court of competent jurisdiction, and           appropriate injunctive relief may
be applied for and granted in connection           therewith. Such remedies shall,
however, be cumulative and not exclusive and           shall be in addition to any other
remedies which any party may have under this           Agreement.

12.3.        Governing
Law; Consent to Jurisdiction. This Agreement           shall be governed
by, and construed in accordance with, the laws of the State of           Israel, without
giving effect to the principles thereof relating to conflict of           laws,
applicable to agreements made and to be performed within such state. The
          parties submit to the exclusive jurisdiction of the competent courts of Tel
          Aviv-Jaffa in any dispute related to this Agreement.

12.4.        Entire
Agreement; Amendments and Waivers. This Agreement           (including the
schedules and exhibits hereto and all other Seller Documents and           Purchaser
Documents) represents the entire understanding and agreement between           the
parties hereto with respect to the subject matter hereof and can be amended,
          supplemented or changed, and any provision hereof can be waived, only by
written           instrument making specific reference to this Agreement signed by the
party           against whom enforcement of any such amendment, supplement, modification
or           waiver is sought. No action taken pursuant to this Agreement, including
without           limitation, any investigation by or on behalf of any party, shall be
deemed to           constitute a waiver by the party taking such action of compliance
with any           representation, warranty, covenant or agreement contained herein. The
waiver by           any party hereto of a breach of any provision of this Agreement shall
not           operate or be construed as a further or continuing waiver of such breach or
as a           waiver of any other or subsequent breach. No failure on the part of any
party to           exercise, and no delay in exercising, any right, power or remedy
hereunder shall           operate as a waiver thereof, nor shall any single or partial
exercise of such           right, power or remedy by such party preclude any other or
further exercise           thereof or the exercise of any other right, power or remedy.
All remedies           hereunder are cumulative and are not exclusive of any other
remedies provided by           law.

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12.5.        Notices.
All notices and other communications under this           Agreement shall be in writing
shall be given or made by delivery in person (and           shall be deemed to have been
duly given upon such delivery), by E-Mail (and           shall be deemed to have been
duly given one business day after dispatch with a           return delivery confirmation
is transmitted by recipient) , by overnight courier           service (and shall be
deemed to have been duly given two days after delivery to           the courier service),
by facsimile (and shall be deemed to have been duly given           after transmission in
full with electronic confirmation of transmission if           delivered during recipients
business hours, or on the next Business Day if           delivered after recipients
business hours), or by registered or certified           mail (postage prepaid, return
receipt requested) (and shall be deemed to have           been duly given five days after
delivery to the mail service) to the respective           parties at the following
addresses (or to such other address or facsimile number           as a party may have
specified by notice given to the other party pursuant to           this provision):

| | If
to Seller:Compwise Ltd.2 Bergman St.Rehovot Science Park, Rehovot,76705Fax: +972-8-946-0559If to Purchaser, to:ECtel Ltd.
10 Amal St., Park Afek Rosh Ha'ayin 48092, IsraelFax: +972-3-900-2199 Attn: Legal Counsel
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12.6.        Severability.
If any term or other provision of this           Agreement is invalid, illegal, or
incapable of being enforced by any law or           public policy, all other terms or
provisions of this Agreement shall           nevertheless remain in full force and effect
so long as the economic or legal           substance of the transactions contemplated
hereby is not affected in any manner           materially adverse to any party. Upon such
determination that any term or other           provision is invalid, illegal, or
incapable of being enforced, the parties           hereto shall negotiate in good faith
to modify this Agreement so as to effect           the original intent of the parties as
closely as possible in an acceptable           manner in order that the transactions
contemplated hereby are consummated as           originally contemplated to the greatest
extent possible.

12.7.        Binding
Effect; Assignment. This Agreement shall be binding           upon and
inure to the benefit of the parties and their respective successors and
          permitted assigns. Nothing in this Agreement shall create or be deemed to
create           any third party beneficiary rights in any person or entity not a party
to this           Agreement except as provided below. No assignment of this Agreement or
of any           rights or obligations hereunder may be made by either Seller or
Purchaser (by           operation of law, or otherwise) without the prior written consent
of the other           party hereto and any attempted assignment without the required
consents shall be           void; provided, however, that Purchaser may assign
this Agreement and any           or all rights or obligations hereunder (including,
without limitation,           Purchasers rights to purchase the Purchased Assets
and assume the Assumed           Liabilities and Purchasers rights to seek
indemnification hereunder) to           any Affiliate thereof; provided however,
that Purchaser shall           remain liable for all of its obligations hereunder. Upon
any such permitted           assignment, the references in this Agreement to Purchaser
shall also apply to           any such assignee unless the context otherwise requires.

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12.8.        Counterparts.
This Agreement may be executed in one or more           counterparts, each of which will
be deemed to be an original copy of this           Agreement and all of which, when taken
together, will be deemed to constitute           one and the same agreement.

 Signature
page follows 

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IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be executed by their respective officers thereunto
duly authorized, as of the date first written above.

|COMPWISE LTD. By: 
Name:Title:
|--------------------------------------------

|ECTEL LTD.By:
Name:Title:
|---------------------------------------

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EXHIBIT 1

# DEFINITIONS

For purposes of this Agreement, the
following terms shall have the meanings specified herein:

|1. | Accounts
Receivable means all accounts and notes receivable                     from
customers related to or arising out of the Business or the Purchased Assets
                    in connection with the sale of products or provision of services.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Action means
(a) action, suit, claim, charge, cause of action                     or suit (whether in
contract or tort or otherwise), litigation (whether at law                     or in
equity, whether civil or criminal), controversy, assessment, arbitration,
                    investigation, hearing, complaint, demand or other proceeding to,
from, by or                     before any arbitrator, court, tribunal or other
Governmental Authority.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Affiliate means,
with respect to any Person, any other Person                     that, directly or
indirectly through one or more intermediaries, controls, or is
                    controlled by, or is under common control with, such Person, and the
term                     control (including the terms controlled
by and                     under common control with) means the
possession, directly or                     indirectly, of the power to direct or cause
the direction of the management and                     policies of such Person, whether
through ownership of voting securities, by                     contract or otherwise
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | Backlog means
the amount of specified products and services                     that are scheduled to
be delivered by Seller in connection with the Business                     after the
Closing pursuant to, and calculated in accordance with, valid and
                    binding agreements or firm purchase orders.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | Business means
development of Software products and                     solutions, sale of Software
License and installation integration, support,                     training and
consultancy of the following:
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.1. | Solutions
that enable customers amongst them telecoms, to maximize their tariff
                    profitability, improve the retention of profitable customers and
detect revenue                     leakage.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.2. | Solutions
for Business Intelligence purposes, including complete telecom pricing
                    solution, financial impact analysis, competitive benchmarking and
portfolio                     profitability management.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.3. | Solutions
for Operational Business Intelligence- customer retention, with
                    prioritized retention activities according to accurate assessment of
customer                     profitability and ability to automatically recommend
appropriate customer                     tariffs.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.4. | Solutions
for Revenue Assurance  rating and billing verification, along
                    with compliance for telecom consumer protection regulation.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
above solutions include but are not limited to the following three products:
| | --------------------------------------------------------------------------------

| | 5.5. | TP
Impact  a pricing solution that provides executives with powerful
          insights to help them understand and confidently manage the impact of price
          changes, whether they are amendments to a current portfolio or the impact of a
          competitors new offer. The product harnesses customer usage patterns to
          give thorough, detailed yet straightforward analysis to executives.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 5.6. | TP
Care  a business intelligence tool that allows the service provider to
          make informed decisions and focus effort cost effectively on appropriate
          customers based on there profitability. The product gives competitive advantage
          that both service providers and their customers can appreciate.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.7. | TP
Assurance  a rating and billing verification tool that allows providers
          to validate the accuracy of there rating engines and bill cycles thus
preventing           loss and increasing customer satisfaction. The product enables
service providers           to find and prevent billing errors, and also helps them to
meet their legal and           regulatory obligations.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | Business
Day means any day of the year (other than Fridays)           on which national
banking institutions in Israel are open to the public for           conducting business
and are not required by law to close.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | Contract means
any contract, agreement, indenture, note,           bond, loan, lease, commitment,
consensual obligation, binding promise,           undertaking, understanding or other
arrangement or agreement, whether written or           oral.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | Documents means
all files, documents, instruments,           correspondence, papers, books, reports,
records, tapes, microfilms, photographs,           letters, budgets, forecasts, ledgers,
journals, customer lists, customer files,           supplier lists, regulatory filings,
operating data and plans, technical           documentation (design specifications,
functional requirements, operating           instructions, logic manuals, flow charts,
etc), user documentation (installation           guides, user manuals, training
materials, release notes, working papers, etc.),           marketing and advertising
documentation (sales brochures, flyers, pamphlets,           promotional materials, web
pages, etc.), and other similar materials, in each           case in whatever form,
including printed and electronic media.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. | Employee
Agreement means, with respect to Seller, each           employment and
consulting agreement and each bonus, relocation, repatriation,           expatriation, or
similar agreement between Seller and any Employee
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | Employee
Plan means each bonus, incentive compensation, stock           option, deferred
compensation, profit-sharing, retirement, pension, welfare,           severance pay,
supplemental income, group insurance, death benefit, or other           fringe benefit
plans, arrangements or trust agreements covering Employees and           pursuant to
which Seller has any liability contingent or otherwise.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11. | Escrow
Agent means Schwartz, Lerner, Duvshani Trustees (2003)           (company no.
51-340200-8)
|--- | ---------------------------------------------------------------------------------------------------

|12. | Escrow
Agreement means an escrow agreement by and among the           Purchaser, the
Seller and the Escrow Agent in the form of Exhibit A attached hereto.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

|13. | Excluded
Contracts means any Contract other than the           Purchased Contracts.
|--- | -------------------------------------------------------------------------------------

|14. | GAAP means
generally accepted accounting principles in effect           in Israel on the date on
which they are to be applied pursuant to this           Agreement, applied consistently
throughout the relevant periods.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|15. | Governmental
Body means any:  a)  state,           commonwealth, municipality,
district or other jurisdiction of any nature,           (b) federal, state, local,
municipal, foreign or other government,           (c) governmental, quasi
governmental or regulatory body of any nature,           including any governmental
division, subdivision, department, , or body, or           (d) Court , public or
private arbitrator or other public tribunal.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|16. | Hardware means
any and all computer and computer-related           hardware or equipment, including, but
not limited to, computers, file servers,           facsimile servers, scanners, color
printers, laser printers and related           peripherals.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17. | Intellectual
Property means all intellectual property rights,           of whatever kind,
whether or not patentable, including all: (i) patents,           designs and utility
models and applications therefor, including continuations,           divisionals,
continuations-in-part, re-examinations, renewals, extensions,           provisionals and
reissues of patent applications and patents issuing thereon and           equivalent or
similar rights anywhere in the world in inventions and           discoveries, including
invention disclosures (collectively, Patents), (ii) trademarks,
service marks, trade names,           service names, brand names, trade dress rights,
logos, Internet domain names and           addresses and general-use e-mail addresses,
together with the goodwill           associated with any of the foregoing throughout the
world, and all applications,           registrations and renewals thereof (collectively,
Marks),           (iii) copyrights and registrations and
applications therefor, including in           and to works of authorship, moral rights,
mask works and all other rights           corresponding thereto throughout the world,
whether published or unpublished,           including rights to prepare, reproduce,
perform, display and distribute           copyrighted works and copies, compilations,
collective works, and derivative           works thereof (collectively, Copyrights),
and (iv) Software.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18. | Knowledge
of Seller or Sellers           Knowledge means the
actual knowledge of the officers, directors and           other employees of Seller set
forth in Appendix 1-18. An           individual will be deemed to
have Knowledge of a particular fact or           matter if such individual is
actually aware of such fact or matter or if such           individual should have
reasonably become aware of such fact or matter after           making due inquiry or
otherwise in the course of performing his or her duties.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19. | Law means
all laws, statutes, constitutions, treaties, rules,           regulations, standards and
directives binding as a matter of law, ordinances,           applicable rulings, orders,
writs, decrees, stipulations, judgments, injunctions           and determinations of all
Governmental Authorities.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20. | Legal
Proceeding means any judicial, administrative or           arbitral action,
suit, litigation, proceeding (including civil, criminal,           administrative,
investigative or appellate proceeding), by or before any           Governmental Body.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21. | Liability means
any debt, obligation or liability, absolute           or contingent, accrued or
unaccrued, direct or indirect, known or unknown           liquidated or unliquidated, or
due or to become due, whether in contract, tort,           strict liability or otherwise
and whether implied, vicarious, derivative, joint,           several or secondary.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|22. | Lien means
any lien, pledge, mortgage, deed of trust,           security interest, preference,
lease, charge, option, right of first refusal,           trust, equitable interest,
servitude, proxy, voting trust or agreement, transfer           restriction under any
shareholder or similar agreement, interference,           restriction on the use of any
asset or the possession, exercise or transfer of           any attribute of ownership of
any asset, or any claim with respect to any of the           foregoing.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|23. | Material
Adverse Effect means any event, change, effect,           condition or
circumstance that, when taken individually or together with all           other adverse
events, changes or effects, is or is reasonably likely (a) to be           materially
adverse to the Purchased Assets, as a whole; or (b) to be materially           adverse to
the Business as a whole and to the ability of the Purchaser to           continue such
Business after the Closing as conducted prior to the Closing; or           (c) to prevent
or materially delay consummation of the transactions contemplated           by this
Agreement or performance by Seller of any material obligations under           this
Agreement or the Seller Documents, excluding any such effect described in
          clauses (a)  (c) above, resulting from or arising in connection with (i)
          material changes or conditions generally affecting the industries or markets
          related to the Business only to the extent that such changes or conditions do
          not have a disproportionate adverse effect on the Seller relative to other
          similarly situated companies, and (ii) material changes in general economic,
          capital markets, regulatory or political conditions only to the extent that
such           changes do not have a disproportionate adverse effect on the Seller
relative to           other similarly situated companies.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|24. | Material
Contracts means all the Purchased Contracts and all           the following
Contracts: (a) customer agreements involving the receipt of           payment in
2006 or thereafter of more than $5,000 annually or involving           continued
performance of services by Purchaser after the Closing;           (b) Contracts
involving the obligation of Seller (with respect to any           portion of the
Business) to purchase products, materials, supplies, advertising,           equipment or
services for more than $10,000 annually; (c) joint venture or           partnership
agreements and Contracts providing for the formation of a joint           venture,
long-term alliance or partnership or involving an equity investment or           sharing
of profits by Seller (with respect to any portion of the Business);           (d) Contracts
(including Employee Agreements) that by their express terms           affect or limit the
freedom in any material manner of the Business or any           portion thereof, or any
of the Purchased Assets, to compete in any line of           business or with any Person
or in any geographic area; (e) Contracts (or a           group of related Contracts)
under which Seller (in each case, with respect to           any portion of the Business
or any of the Purchased Assets or Assumed           Liabilities) has created, incurred,
assumed, or guaranteed any indebtedness or           that relates to the lending of
amounts, or providing for the creation of any           Lien upon any Purchased Asset; (f) leases,
subleases or similar agreements           under which Seller is a lessee or sublessee of
tangible personal property used           or held for use in any portion of the Business;
(g) joint research and           development Contracts involving the Business; (h) Contracts
concerning the           marketing or distribution by Third Parties of any products or
services of the           Business (including Contracts requiring the payment of any
sales or marketing or           distribution commissions or granting to any Person rights
to market, distribute           or sell such products or services); (i) other
Contracts relating to the           Business involving annual payments to or from Third
Parties in excess of $2,500;           (j) any Contract obligating the Seller (in
each case, with respect to any           portion of the Business or any of the Purchased
Assets or Assumed Liabilities)           to guarantee the performance of any other
Person; (k) any Contract with any           Governmental Body; (l) any power of
attorney, proxy or similar instrument           (in each case, with respect to any
portion of the Business or any of the           Purchased Assets or Assumed Liabilities);
(m) any requirement or output           Contract relating to the Business; (n) any
Contract relating to the           Business to indemnify any Person or to share in or
contribute to the Liability           of any Person, (o) all Contracts which include
a provision for their           termination or any change of any term thereof as a result
of a change in control           event, or a sale of all or any of the assets of Seller
(in each case, with           respect to any portion of the Business or any of the
Purchased Assets or Assumed           Liabilities), and (p) all Contracts which
include a provision for their           termination or any change of any term thereof as
a result of their assignment.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|25. | Order means
any temporary, preliminary or permanent order,           injunction, judgment, decree,
edict, pronouncement, determination, reported           decision, published opinion,
verdict, sentence, stipulation, subpoena, ruling,           writ, assessment or award
that is or has been issued, made, entered, rendered or           otherwise put into
effect by or under the authority of any Court, administrative           agency or other
Governmental Body or any arbitrator or arbitration panel or any           Contract with
any Governmental Body that is or has been entered into in           connection with any
Legal Proceeding.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|26. | Permits means
any approvals, authorizations, consents,           licenses, permits or certificates of a
Governmental Body.
|--- | ----------------------------------------------------------------------------------------------------------------------------

|27. | Person means
any individual, corporation, partnership,           limited liability company, joint
venture, association, joint-stock company,           trust, estate, Governmental Body or
other entity.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|28. | Purchased
Assets shall mean the following assets
|--- | --------------------------------------------------

| | 28.1. | the
Transferred Intellectual Property, including all works-in-progress and
          Transferred the Purchased Equipment, including as set forth on Appendix
          1-28.1;
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 28.2. | All
of the goodwill associated with the Businessand the Transferred
          Trademarks included in the Transferred Intellectual Property, including all
          rights associated with the Sellers name, domain name and web site.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 28.3. | (i)
the Accounts Receivable outstanding as of Closing together with all related
          Contracts and all related Liabilities that arise from facts or circumstances
          occurring after the Closing, and such related Contracts and Liabilities that
          arise from facts or circumstances occurring after the Closing (the
          Purchased Accounts Receivable); and (ii) all Backlog created
          prior to the date hereof and included in Appendix 1-28.3          and
all Backlog created after the date hereof, in each case, together with all
          related Contracts and all related Liabilities that arise from facts or
          circumstances occurring after the Closing;
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 28.4. | the
Purchased Intellectual Property Licenses, it being acknowledged that to the
          extent that any Purchased Intellectual Property License relates also to
          Sellers business or operations other than the Business, then, at
          Sellers election, in lieu of such license being transferred and assigned
          to Purchaser as a Purchased Asset, Seller may cause the grant of a new
identical           license from the relevant vendor to Purchaser so as to allow Seller
to continue           to be a party to the existing Purchased Intellectual Property
License for the           purpose of its other business activities, except for the
Business;
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 28.5. | all
rights of Seller under the Purchased Contracts including those listed in Appendix
1-28.5; provided,however, that if           prior to the
Closing, Seller fails to complete any deliverable pursuant to a           Purchased
Contract Purchaser may notify Seller that it has elected to exclude           such
Contract from the Purchased Assets and such Contract will be considered an
          Excluded Asset;
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 28.6. | (i)
all Documents that are used in the Business related to the Purchased assets
          (ii) all Documents that relate to the Transferred Intellectual Property, and
          (iii) copies of Documents relating both to the Business and to the Excluded
          Assets and Excluded Liabilities;
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 28.7. | all
Permits used or held for use as of Closing in the Business or relating to           the
Purchased Assets (or any portion thereof), except for any Permits that are
          corporate Permits of Seller, such as Permits that qualify Seller to operate in
          any jurisdiction, and except for Permits that relate generally to the
operations           or Seller and not specifically with respect to the Business or the
operation of           the Purchased Assets;
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 28.8. | all
proposals submitted by Seller prior to the date hereof to potential           customers
of the Business which proposals are still outstanding and all pipeline           of the
Seller related to the Business, all of which is listed in Appendix           1-28.8 hereof
(the Purchased Proposals);
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 28.9. | all
rights of Seller under or pursuant to all warranties, representations and
          guarantees made by suppliers, manufacturers and contractors to the extent
          relating to or affecting any Purchased Assets, subject to the provisions of
          section 2.6.2;
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 28.10. | all
performance and other bonds, security and other similar deposits related to           any
Purchased Contracts ; and
| | ------ | -----------------------------------------------------------------------------------------------------------------------

| | 28.11. | all
rights in, to and under claims for refunds, rebates or other discounts due           from
suppliers or vendors and rights to offset in respect thereof under the
          Purchased Contracts and arising after the Closing Date.
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|29. | Purchased
Contracts means all Contracts listed on Appendix 1-28.5 or
such other agreements and contracts           relating to the Business entered into after
the date hereof and prior to the           Closing with the written consent of the
Purchaser and any other Contract of           which the Purchaser is made aware prior to
or after the Closing Date relating to           the Business, subject to the specific
consent of Purchaser.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|30. | Purchased
Equipment means all the tangible property used,           owned or leased by
the Seller, used for the conduct of the Business and listed           on Appendix
1-30.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|31. | Purchased
Intellectual Property Licenses means any grant to           Seller of a right
to use a Third Partys Intellectual Property in           connection with the
Business and which is listed on Appendix           1-31.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|32. | Software means
any and all (i) computer programs,           including any and all software
implementations of algorithms, models and           methodologies, whether in source code
or object code, (ii)           computer-based databases and compilations, (iii) descriptions,
          flow-charts and other work product used to design, plan, organize and develop
          any of the foregoing, screens, user interfaces, report formats, firmware,
          development tools, templates, menus, buttons and icons, and (iv) all
          Documents including user manuals and other training documentation related to
any           of the foregoing.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|33. | Subsidiary means
any Person of which a majority of the           outstanding voting securities or other
voting equity interests are owned,           directly or indirectly, by Seller.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|34. | Tax or
Taxes means (i) any and all           taxes, charges, fees,
imposts, levies or other assessments, including, without           limitation, all net
income, gross income, gross receipts, alternative or add-on           minimum tax,
capital, sales, use, ad valorem, value added, transfer, franchise,           profits,
inventory, capital stock, license, withholding, payroll, employment,           social
security, unemployment, excise, severance, stamp, occupation, property,
          premium, environmental or windfall profit tax, and estimated taxes, customs
          duties, fees, assessments and charges of any kind whatsoever, (ii) all
          interest, penalties, fines, additions to tax or additional amounts imposed by
          any Taxing Authority in connection with any item described in clause (i),
          and (iii) any liability in respect of any items described in clauses (i)
          and/or (ii) payable by reason of contract, assumption, transferee liability, or
          operation of Law.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|35. | Taxing
Authority means the Israeli Tax Authorities and any           other
Governmental Body responsible for the imposition, assessment, collection           or
administration of any Tax.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|36. | Tax
Return means any return, statement, declaration, notice,           certificate,
report or other document that is or has been filed with or           submitted to, or is
or was required to be filed with or submitted to any           Governmental Body in
connection with the determination, assessment, collection,           or payment of any
Tax or in connection with the administration, implementation           or enforcement of
or compliance with any Law related to any Tax (including any           attachments
thereto, and any amendment thereof) including, but not limited to,           any
information return, claim for refund, amended return or declaration of
          estimated Tax, and including, where permitted or required, combined,
          consolidated or unitary returns for any group of entities that includes Seller,
          or any of its Affiliates.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|37. | Third
Party means any Person not an Affiliate of the other           referenced
Person or Persons.
|--- | ----------------------------------------------------------------------------------------------------

|38. | Trade
Secrets means trade secrets under applicable law and           other
proprietary rights in discoveries, concepts, ideas, know-how, formulae,
          inventions, compositions, manufacturing and production processes and
techniques,           technical data, procedures, designs, drawings, specifications,
databases,           algorithms, methods, programs, subroutines, tools, apparatus,
improvements,           customer lists, supplier lists, pricing and cost information, and
business and           marketing information, plans and proposals, and all recordings,
graphs,           drawings, reports, analyses, and other writings, and other tangible
embodiments           of the foregoing, in any form whether or not specifically listed
herein.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|39. | Transferred
Copyright means the Copyrights relating to the           Transferred Software
and its related Documents.
|--- | ----------------------------------------------------------------------------------------------------------------------

|40. | Transferred
Intellectual Property means any and all of the           rights, titles and
interest in registered and unregistered Intellectual           Property, used, licensed
or owned by Seller, related directly or indirectly, in           whole or in part, to the
Business, including without limitation, the Transferred           Copyrights, Transferred
Software, Transferred Marks, Transferred Trade Secrets           and the Network
Identifiers.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|41. | Transferred
Software means the Software listed on Appendix 1-41.
|--- | ------------------------------------------------------------------

|42. | Transferred
Trademarks means the Marks listed on Appendix 1-42.
|--- | -----------------------------------------------------------------

|43. | Transferred
Trade Secrets means the Trade Secrets owned by           Seller which are
related to the Transferred Software and the Transferred           Copyright.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

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