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| To: |
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| Bank Leumi LeIsrael Ltd. |
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| Dear Sir/Madam, |
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|   | 1. | Definitions |
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|   | [Stamp and signatures: |
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|   | BluePhoenix Solutions Ltd.] |
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|   | 2. | Financial Criteria |
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|   | [Stamp and signatures: |
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|   | BluePhoenix Solutions Ltd.] |
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|   | We undertake to furnish you with the following reports: |
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|   | 3.1 | Consolidated Financial Statements of the Company,  by not later than 31.3 of each year, that includes, inter alia, a balance sheet, profit and loss report, cash flow report and any other report that is required by the competent authority (hereinafter: “Financial Statements”), which are furnished annually and audited by an external certified CPA for the year ended 31.12 of the previous year. |
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|   | 3.2 | Quarterly Financial Statements of the Company, consolidated and reviewed by an external certified CPA, by not later than 60 days after the end of each quarter, which refer to the previous quarter. |
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|   | 3.3 | Reports signed and certified by the CFO of the Company,  by not later than 30 days from the end of each quarter, with respect to the inventory, debtors, and liabilities of the Company to the banking system and the creditors of the Company. The aforementioned reports shall, inter alia, include the following details: |
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|   | 3.3.1 | Inventory Report – which includes details regarding raw materials in transit (which have been paid for by the Company), production in process, auxiliary materials and finished products; for example, the report about the components of the aforementioned inventory will include details regarding credit supplied by the Company’s creditors in respect of the inventory and details of the credit secured by bank guarantees. |
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|   | 3.3.2 | Debtors Report – which includes details of debtors in Israel, foreign debtors, checks and bills for collection, advance payments by customers (which are not against a bank guarantee) as well as details of debtors’ aging and noting the names of the main customers. |
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|   | [Stamp and signatures: |
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|   | BluePhoenix Solutions Ltd.] |
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|   | 3.3.3 | A report about the total liabilities to the banking system and to other secured creditors (detailed separately according to each of the banks and other creditors) – which includes details about short term credit (from financing export shipments), long term loans, import letters of credit of the Company, guarantees and the total obligo [credit facilities]. |
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|   | 3.3.4 | A report of other outstanding liabilities – which includes details of liabilities to employees (in respect of salaries, leave, compensation and pensions), contributions to income tax at source in respect of the employees, liabilities to competent authorities and liabilities to governmental institutions (such as: income tax, purchase tax, national insurance, property tax, etc.). |
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|   | 3.4 | Pursuant to the bank’s requirements: any report, document or other information accompanied by other remarks, if necessary, including, but without derogating from the generality of the foregoing, a detailed business plan and reports that the Company will give to its shareholders, which shall be given in the way and in the format required by the bank. |
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|   | 4. | Undertaking to Furnish Other Reports |
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|   | 5. | Validity of the Undertakings |
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|   | Our aforesaid undertakings shall remain in force and effect as long as any amounts whatsoever are owed to you, or become payable to you in the future, on account of loans, credit and/or other banking services that you have given and/or will give us in the future and/or as long as the undertakings and guarantees in your favor or for your benefit remain in force. |
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|   | In any event that we fail to meet the financial Criteria, in whole or in part, or if we breach any of our other express undertakings set forth in this Letter, in whole or in part, then – in addition to any other relief to which you are entitled pursuant to the law or pursuant to any of our other obligations towards you that is included or will be included in the future in any other document – you shall be entitled to present all or part of our debts and obligations towards you for immediate repayment, and to collect them from us together with any amount which, in the opinion of the bank, is required to recover the losses and/or expenses incurred by the bank as a result of presenting the amounts for immediate repayment, as aforesaid. |
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|   | [Stamp and signatures: |
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|   | BluePhoenix Solutions Ltd.] |
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|   | It is clarified that the failure of the bank to institute proceedings, in respect of a breach of a prior undertaking or as a result of a failure to fulfill one or more of our undertakings to the bank, whether that undertaking is included in this Letter or included or shall be included in any other document, shall not be deemed negligence or a waiver of the bank of its rights and/or justification or an excuse to continue committing  the breach and/or to commit any other breach or other nonfulfillment of any of the terms and conditions or our obligations, as aforesaid. |
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|   | For the avoidance of doubt, nothing stated above shall derogate from our undertakings towards you pursuant to any document whatsoever and/or according to the law, and nothing stated shall derogate from any cause of action to present [any amounts] for immediate payment, which is available and/or which will become available to you pursuant to any document whatsoever and/or under the law. |
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|   | Upon the coming into force of this Letter of Undertaking, the validity of the Letter of Undertaking, which was signed by us in favor of the bank on 11.8.2009 (hereinafter: the “Letter of Undertakingof 2009”), shall be cancelled. |
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|   | For the avoidance of doubt, as long as this Letter of Undertaking does not enter into force, the Letter of Undertaking of 2009 shall remain in force without any change. |
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|   |   |   | [Stamp and signatures:BluePhoenix Solutions Ltd.] |
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|   |   |   |                                              |   |

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