Document:

Exhibit
      10.35

     

    AMENDMENT

     

    This
      AMENDMENT (the “Amendment”),
      dated
      as of August 15, 2007, is entered into by and among Zhongpin Inc. (formerly
      known as Strong Technical Inc.), a Delaware corporation (the “Company”),
      each
      of the parties listed below that is an original stockholder of the Company
      (collectively, the “Stockholders”),
      each
      of the parties listed below that is an original purchaser of the Company’s
      Series A Convertible Preferred Stock (collectively, the “Purchasers”)
      and
      Law Debenture Trust Company of New York, a New York banking corporation, as
      escrow agent (hereinafter referred to as the “Escrow
      Agent”),
      for
      the purpose of amending the terms of the Escrow Agreement dated as of January
      30, 2006 and amended as of December 21, 2006 (the “Escrow
      Agreement”)
      among
      the Company, the Stockholders, the Purchasers and the Escrow Agent. Capitalized
      terms used herein without definition shall have the meanings ascribed to such
      terms in the Escrow Agreement.

     

    WHEREAS,
      the Company, the Stockholders, the Purchasers and the Escrow Agent have agreed
      to make certain amendments to the Escrow Agreement as set forth
      herein;

    

    NOW,
      THEREFORE, in consideration of the above, and for other good and valuable
      consideration, the receipt and sufficiency of which is hereby acknowledged,
      the
      parties hereto agree as follows:

    

    1. Section
      4(a) to the Escrow Agreement shall be amended by to read as
      follows:

    

    “4. Disbursement
      of Escrow Deposit.

    

    (a) In
      the
      event the audited consolidated financial statements of the Company for the
      fiscal year ending December 31, 2006 ( “Fiscal 2006”), as filed by the Company
      with the U.S. Securities and Exchange Commission (the “Commission”) in the
      Company’s Annual Report on Form 10-K for Fiscal 2006, reflect a consolidated net
      loss for the Company for Fiscal 2006 or consolidated net income of the Company
      for Fiscal 2006 of less than $7,927,000 (the “2006 Guaranteed CNI”), the Escrow
      Agent shall, upon receipt of the related Accountant’s Certification (as defined
      below) for Fiscal 2006, deliver to the Transfer Agent (i) the certificates
      representing the number of Escrow Shares set forth opposite the name of each
      Purchaser under the heading “Number of Escrow Shares Fiscal 2006” on Schedule B
      hereto, (ii) the related Escrow Powers, (iii) the Transfer Instructions and
      (iv)
      the Transfer Opinion. In the event the audited consolidated financial statements
      of the Company for the fiscal year ending December 31, 2007 (“Fiscal 2007”), as
      filed by the Company with the Commission in the Company’s Annual Report on Form
      10-K for Fiscal 2007, reflect a consolidated net loss of the Company for Fiscal
      2007 or consolidated net income of the Company for Fiscal 2007 of less than
      $15,000,000 (the “2007 Guaranteed CNI”), the Escrow Agent shall, upon receipt of
      the related Accountant’s Certification for Fiscal 2007, deliver to the Transfer
      Agent (i) the certificates representing the number of Escrow Shares set forth
      opposite the name of each Purchaser under the heading “Number of Escrow Shares
      Fiscal 2007” on Schedule B hereto, (ii) the related Escrow Powers, (iii) the
      Transfer Instructions and (iv) the Transfer Opinion. The Company shall deliver
      to the Escrow Agent a copy of its Annual Report on Form 10-K for each of Fiscal
      2006 and Fiscal 2007 within two business days of the date such Annual Report
      is
      filed with the Commission, together with a certification (an “Accountant’s
      Certification”) from the Company’s independent auditor for such fiscal year
      certifying the amount of the Company’s consolidated net income or consolidated
      net loss, as the case may be, for such fiscal year. The Escrow Agent need only
      rely on the Accountant’s Certification of the Company’s independent auditor in
      determining the amount of the Company’s consolidated net income or consolidated
      net loss, as the case may be, for any fiscal year. Notwithstanding the
      foregoing, (i) for purposes of determining whether the 2006 Guaranteed CNI
      has
      been achieved, any expense, charge or other deduction from the Company’s
      revenues relating to the warrants granted to the Purchasers in December 2006
      shall be excluded from the calculation of the consolidated net income of the
      Company for purposes of this Section 4(a) even though the generally accepted
      accounting principles of the United States (“GAAP”) may require contrary
      treatment and (ii) for purposes of determining whether the 2006 Guaranteed
      CNI
      or the 2007 Guaranteed CNI have been achieved, the release of the Escrow Shares
      to the Stockholders as a result of the operation of this Section 4(a) shall
      not
      be deemed to be an expense, charge or other deduction from the Company’s
      revenues even though GAAP may require contrary treatment. If no Escrow Shares
      are to be transferred to the Purchasers pursuant to this Section 4 for Fiscal
      2006 or Fiscal 2007, as the case may be, the Escrow Agent shall promptly deliver
      to each Stockholder one of the stock certificates received by the Escrow Agent
      from such Stockholder, together with one of the stock powers executed by such
      Stockholder in blank.” 

     

    
      
        
        

      

      
        Ex.
          10.35
          - 1

        
          

        

      

      
        
        

      

    

     

    2. Except
      as
      specifically set forth in this Amendment, there are no other amendments,
      modifications or waivers to the Escrow Agreement, and all of the other terms
      and
      provisions of the Escrow Agreement remain in full force and effect.

    

    3. From
      and
      after the date hereof, all references to the Escrow Agreement shall be deemed
      references to the Escrow Agreement, as the case may be, modified
      hereby.

    

    4. Upon
      execution of this Amendment by the Company, the Stockholders and, pursuant
      to
      Section 13 of the Escrow Agreement, the Purchasers that were the original
      purchasers of at least a majority of the shares of the Company’s originally
      issued shares of Series A Preferred Stock, this Amendment shall be binding
      upon
      the parties hereto and their respective successors and permitted assigns and
      shall inure to the benefit of and be enforceable by each of the parties hereto
      and their respective successors and permitted assigns. THIS
      AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY
      THE
      LAWS OF THE STATE OF NEW YORK.
      This
      Amendment may be executed in any number of counterparts, each of which shall
      be
      original, but all of which shall constitute one instrument.

    

    [THE
      REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        Ex.
          10.35
          - 2

        
          

        

      

      
        
        

      

    

     

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

    

    
      	 	
              ZHONGPIN
                INC.

            
	 	 
	 	 
	 	
              By:

            	
              /s/
                Xianfu Zhu

            	 
	 	 	
              Name:

            	
              Xianfu
                Zhu

            
	 	 	
              Title:

            	
              Chief
                Executive Officer

            
	 	 
	 	
              LAW
                DEBENTURE TRUST COMPANY OF NEW YORK, as Escrow
                Agent

            
	 	 
	 	 
	 	
              By:

            	
              /s/Boris
                Treyger

            	 
	 	 	
              Name:

            	
              Boris
                Treygar

            
	 	 	
              Title:

            	
              Assistant
                Vice President

            
	 	 
	
              STOCKHOLDERS:

            
	 	 
	 	
              /s/
                Zhu Xianfu

            	 
	 	
              ZHU,
                Xianfu

            
	 	 
	 	
              /s/
                Ben Baoke

            	 
	 	
              BEN,
                Boake

            
	 	 
	 	
              /s/
                Liu Chaoyang

            	 
	 	
              LIU,
                Chaoyang

            
	 	 
	 	 
	 	
              /s/
                Wang Qinghe

            	 
	 	
              WANG,
                Qinghe

            
	 	 
	 	 
	 	
              /s/
                Si Shuichi

            	 
	 	
              SI,
                Shuichi

            
	 	 
	 	 
	 	
              /s/
                Wang Juanjuan

            	 
	 	
              WANG,
                Juanjuan

            
	 	 
	 	 
	 	
              /s/
                Lin Yousu

            	 
	 	
              LIN,
                Yousu

            
	 	 
	 	 
	 	 	 
	 	
              WANG,
                Qian

            	 
	 	 
	 	 
	 	 	 
	 	
              WANG,
                Yunchun

            

    

     

    
      
        
        

      

      
        Ex.
          10.35
          - 3

        
          

        

      

      
        
        

      

    

     

    
      	
              PURCHASERS:

            
	 	 
	 	
              ATLAS
                CAPITAL MASTER FUND LP

            
	 	 
	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	
              Robert
                H. Alpert

            
	 	 	
              Title:

            	
              Director

            
	 	 
	 	
              ATLAS
                CAPITAL (Q.P.), LP

            
	 	 
	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	
              Robert
                H. Alpert

            
	 	 	
              Title:

            	
              Director

            
	 	 
	 	 
	 	
              ATLAS
                CAPITAL OFFSHORE EXEMPT FUND, LTD.

            
	 	 
	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	
              Robert
                H. Alpert

            
	 	 	
              Title:

            	
              Director

            
	 	 
	 	 
	 	
              US
                SPECIAL OPPORTUNITIES TRUST PLC

            
	 	 
	 	 
	 	
              By:

            	
              /s/
                Russell Cleveland

            	 
	 	 	
              Name:

            	
              Russell
                Cleveland

            
	 	 	
              Title:

            	
              President

            
	 	 
	 	 
	 	
              CORDILLERA
                FUND, LP

            
	 	 
	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	
              Stephen
                J. Carter

            
	 	 	
              Title:

            	
              General
                Partner

            

    

     

    
      
        
        

      

      
        Ex.
          10.35 - 4

        
          

        

      

      
        
        

      

    

     

    
      	 	
              CRESTVIEW
                CAPITAL MASTER LLC

            
	 	 
	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	
              John
                A. Schmidt

            
	 	 	
              Title:

            	
              Member

            
	 	 
	 	 
	 	
              GRYPHON
                MASTER FUND, L.P.

            
	 	 
	 	 
	 	
              By:

            	
              /s/
                Warren W. Garden

            	 
	 	 	
              Name:

            	
              Warren
                W. Garden

            
	 	 	
              Title:

            	
              Authorized
                Agent

            
	 	 
	 	 
	 	
              GSSF
                MASTER FUND, L.P.

            
	 	 
	 	 
	 	
              By:

            	
              /s/
                Warren W. Garden

            	 
	 	 	
              Name:

            	
              Warren
                W. Garden

            
	 	 	
              Title:

            	
              Authorized
                Agent

            
	 	 
	 	 
	 	
              JAYHAWK
                CHINA FUND (CAYMAN), LTD.

            
	 	 
	 	 
	 	
              By:

            	
              /s/
                Michael D. Schmitz

            	 
	 	 	
              Name:

            	
              Michael
                D. Schmitz

            
	 	 	
              Title:

            	
              CFO
                of Investment Manager

            
	 	 
	 	 
	 	
              PINNACLE
                CHINA FUND, L.P.

            
	 	 
	 	 
	 	
              By:

            	
              /s/
                Barry M. Kitt

            	 
	 	 	
              Name:
                Barry M. Kitt

            
	 	 	
              Title:Manager,
                Kitt China Management, L.L.C., the Manager of Pinnacle China Management,
                L.L.C., the General Partner of Pinnacle China Advisors, L.P., the
                General
                Partner of Pinnacle China Fund, L.P.

            
	 	 
	 	
              RENAISSANCE
                US GROWTH INVESTMENT TRUST PLC

            
	 	 
	 	
              By:

            	
              /s/
                Russell Cleveland

            	 
	 	 	
              Name:

            	
              Russell
                Cleveland

            
	 	 	
              Title:

            	
              President

            

    

     

    
      
        
        

      

      
        Ex.
          10.35
          - 5

        
          

        

      

      
        
        

      

       

    

    
      	 	
              MICHAEL
                ROSS

            
	 	 
	 	 
	 	
              SANDOR
                CAPITAL MATER FUND, LP

            
	 	 
	 	 
	 	
              By:

            	
              /s/
                John S. Lemak

            	 
	 	 	
              Name:

            	
              John
                S. Lemak

            
	 	 	
              Title:

            	
              General
                Partner

            
	 	 
	 	 
	 	
              SOUTHWELL
                PARTNERS, LP

            
	 	 
	 	 
	 	
              By:

            	
              /w/
                Wilson Jaeggli

            	 
	 	 	
              Name:

            	
              Wilson
                Jaeggli

            
	 	 	
              Title:

            	
              Managing
                Director

            
	 	 
	 	 
	 	
              SPECIAL
                SITUATIONS PRIVATE EQUITY FUND, L.P.

            
	 	 
	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	
              Austin
                W. Marxe

            
	 	 	
              Title:

            	
              General
                Partner

            
	 	 
	 	 
	 	
              SPECIAL
                SITUATIONS FUND III QP, L.P.

            
	 	 
	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	
              Austin
                W. Marxe

            
	 	 	
              Title:

            	
              General
                Partner

            
	 	 
	 	 
	 	
              SPECIAL
                SITUATIONS FUND III, L.P.

            
	 	 
	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	
              Austin
                W. Marxe

            
	 	 	
              Title:

            	
              General
                Partner

            

    

     

    
      
        
        

      

      
        Ex.
          10.35
          - 6

        
          

        

      

      
        
        

      

    

     

    
      	 	
              SRB
                GREENWAY OFFSHORE OPERATING FUND, L.P.

            
	 	
              By:
                SRB Management, L.P., General Partner

            
	 	
              By:
                BC Advisors, LLC, General Partner

            
	 	 
	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	
              Steve
                Becker

            
	 	 	
              Title:

            	
              Member

            
	 	 
	 	 
	 	
              SRB
                GREENWAY CAPITAL, L.P.

            
	 	
              By:
                SRB Management, L.P., General Partner

            
	 	
              By:
                BC Advisors, LLC, General Partner

            
	 	 
	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	
              Steve
                Becker

            
	 	 	
              Title:

            	
              Member

            
	 	 
	 	 
	 	
              SRB
                GREENWAY CAPITAL (QP), L.P.

            
	 	
              By:
                SRB Management, L.P., General Partner

            
	 	
              By:
                BC Advisors, LLC, General Partner

            
	 	 
	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	
              Steve
                Becker

            
	 	 	
              Title:

            	
              Member

            
	 	 
	 	 
	 	
              VISION
                OPPORTUNITY MASTER FUND, LTD.

            
	 	 
	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	
              Adam
                Benowitz

            
	 	 	
              Title:

            	
              Portfolio
                Manager

            
	 	 
	 	 
	 	
              WESTPARK
                CAPITAL, L.P.

            
	 	 
	 	 
	 	
              By:

            	
              /s/
                Patrick J. Brosnahan

            	 
	 	 	
              Name:

            	
              Patrick
                J. Brosnahan

            
	 	 	
              Title:

            	
              General
                Partner

            

    

     

    
      
        
        

      

      
        Ex.
          10.35
          - 7

        
          

        

      

      
        
        

      

    

     

    
      	 	
              WS
                OPPORTUNITY FUND INTERNATIONAL, LTD.

            
	 	
              By:
                WS Venture Management, L.P., as agent and
                attorney-in-fact

            
	 	
              By:
                WSV Management, L.L.C., General Partner

            
	 	 
	 	 
	 	
              By:

            	
              /s/
                Patrick Walker

            	 
	 	 	
              Name:

            	
              Patrick
                Walker

            
	 	 	
              Title:

            	
              Member

            
	 	 
	 	 
	 	
              WS
                OPPORTUNITY FUND, L.P.

            
	 	
              By:
                WS Venture Management, L.P., General Partner

            
	 	
              By:
                WSV Management, L.L.C., General Partner

            
	 	 
	 	 
	 	
              By:

            	
              /s/
                Patrick Walker

            	 
	 	 	
              Name

            	
              Patrick
                Walker

            
	 	 	
              Title:

            	
              Member

            
	 	 
	 	 
	 	
              WS
                OPPORTUNITY FUND (QP), L.P.

            
	 	
              By:
                WS Venture Management, L.P., General Partner

            
	 	
              By:
                WSV Management, L.L.C., General Partner

            
	 	 
	 	 
	 	
              By

            	
              /s/
                Patrick Walker

            	 
	 	 	
              Name:

            	
              Patrick
                Walker

            
	 	 	
              Title:

            	
              Member

            

    

     

    
      
        
        

      

      
        Ex.
          10.35
          - 8Unassociated Document

    
 

    EXHIBIT
      4.2

     

    Amendment
      to Purchase Agreement

     

    This
      Amendment (the “Amendment”) dated as of December 30, 2007 is among BluePhoenix
      Solutions Ltd.
      (“BluePhoenix” or the “Purchaser”), Codestream
      Software Ltd. (“Codestream”)
      and
      those individuals or entities listed on Exhibit A hereto (collectively the
      “Grantees” and each a “Grantee”).

     

    Recitals

     

    A. BluePhoenix and
      Codestream are parties to that certain Purchase Agreement (the “Purchase
      Agreement”) dated December 14, 2006, pursuant to which BluePhoenix has purchased
      certain assets of Codestream.

     

    B. The
      Purchase Agreement provided for certain contingent consideration that could
      be
      paid to Codestream, or its Permitted Transferees, if certain conditions were
      met. The Company’s rights to that contingent consideration have been assigned to
      the Grantees, who are all Permitted Transferees.

     

    C. Capitalized
      terms used but not defined herein shall have the meaning set forth in the
      Purchase Agreement.

     

    The
      parties to the Purchase Agreement wish to amend the terms of the Purchase
      Agreement as set forth in this Amendment.

     

    Accordingly,
      and in consideration of the above recitals and other good and valuable
      consideration the receipt and sufficiency of which are hereby acknowledged,
      the
      parties agree as follows:

     

    
      	1.      	
              In
                settlement of the provisions of section 2.3 of the Purchase Agreement
                and
                the provisions of the Escrow Agreement signed December 14, 2007 (the
                “Escrow Agreement”), the parties agree as
                follows:

            

    

     

    
      	1.1    	
              An
                amount of GBP 425,000, representing all outstanding amounts due related
                to
                account receivables related to the Purchased Business, less an amount
                of
                GBP 390,000 already paid by BluePhoenix, shall be paid at Closing
                (as
                defined below) to Codestream. For the avoidance of doubt, it is hereby
                clarified that no additional payments are required to be made by
                the
                Purchaser in connection with the Purchased Business or relating to
                the
                Purchase Agreement, other as expressly specified in Section 2
                herein.

            

    

     

    
      	1.2    	
              The
                Escrow Amount GBP and accrued interest shall be released to Codestream,
                after deduction of the following
                amounts:

            

    

     

    
      	(a)    	
              the
                amount of GBP 206,868 released on June 27, 2007
                and;

            

    

     

    
      	(b)    	
              the
                amounts referred to in section 4 of the Escrow Agreement;
                and

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	(c)    	
              The
                amount of GBP 7,326 due as commission to a certain sale person, to
                be paid
                by the Purchaser to such sale
                person.

            

    

     

    In
      accordance with the foregoing, the amount remaining after deduction of the
      amounts specified under this section 1.2, (such remaining amount being the
      “Escrow Cash Amount”) will be paid to Codestream at Closing (as defined herein
      below). Upon payment of the Escrow Cash Amount, there will be no obligations
      on
      the part of BluePhoenix, Codestream or any Grantee in connection with the Escrow
      Agreement or in connection with Exhibit 2 attached to the Purchase
      Agreement.

     

    
      	1.3    	
              The
                parties agree that, upon payment of the Escrow Cash Amount by BluePhoenix
                to Codestream and except for the Contingent Consideration (as defined
                and
                as set forth in section 2 below), BluePhoenix will not owe Codestream
                any
                amount in connection with the Purchase Agreement or any appendices
                thereof.

            

    

     

    
      	2.    	
              Contingent
                Consideration

            

    

     

    
      	2.1    	
              The
                parties hereby agree that in consideration of the covenants and payments
                provided for in this Amendment, Section 3 of the Purchase Agreement
                is
                hereby terminated and shall have no further force or effect.
                

            

    

     

    
      	2.2    	
              The
                parties hereby agree that in
                further exchange for the Purchased Business, in the event that
                the terms and conditions set forth herein are fulfilled, the Purchaser
                shall
                pay and issue shares or cash to the Grantees as set forth herein,
                all
                under the terms and conditions set forth
                herein:

            

    

     

    Cash
      Payment

     

    
      	(a)    	
              At
                the Closing, Purchaser will pay the Grantees, in the proportions
                set forth
                on Exhibit A, an aggregate amount of
                US$300,000.

            

    

     

    
      	(b)    	
              On
                October 1, 2008, Purchaser will pay the Grantees, in the proportions
                set
                forth on Exhibit A, an aggregate amount of
                US$1,000,000.

            

    

     

    Issuance
      of Ordinary
      Shares

     

    
      	(c)    	
              If
                the First Condition Precedent (as defined herein) has occurred
                prior
                to
                March 31, 2008, the Purchaser shall not later than March 31, 2008
                issue to
                the Grantees proportionately to their respective interests set forth
                on
                Exhibit A, an aggregate of 400,000
                Ordinary Shares (the “First
                Issuance”).

            

    

     

    “First
      Condition Precedent”
      means
      that the UK Department of Works and Pensions, or any of its affiliates,
      (collectively, “DWP”) has not ceased utilizing the Codestream software for any
      of its internal operations.

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    
      	(d)    	
              If
                the Second Condition Precedent (as defined herein) has occurred prior
                to
                March 31, 2009, the Purchaser shall not later than March 31, 2009
                issue to
                the Grantees proportionately to their respective interests set forth
                on
                Exhibit A
                an
                aggregate of 600,000 Ordinary Shares (the “Second
                Issuance”).

            

    

     

    "Second
      Condition Precedent”
      means
      that any one or more of the following has occurred (i) the final two milestones
      for the OTMI Project have been billed by EDS to DWP, or (ii) EDS has paid
      maintenance on the OTMI licenses, or (iii) EDS has entered with BluePhoenix
      or
      any of its subsidiaries into a services agreement for OTMI Release 2 (also
      known
      as JSAPS), or (iv) EDS has entered with BluePhoenix or any of its subsidiaries
      into a maintenance agreement for the Enterprise License signed on September
      30,
      2007.

     

    
      	(e)    	
              Upon
                each of the First Issuance and the Second Issuance, Purchaser will
                deliver
                to each of the Grantees a certificate or certificates representing
                the
                Ordinary Shares issued by the Purchaser’s transfer agent in United States,
                representing the number of Ordinary Shares being issued to such Grantee
                in
                the percentages specified in Exhibit A attached hereto and bearing
                the
                following restrictive legend:

            

    

     

    THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
      THE
      ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES
      UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
      REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH
      ACT.

     

    
      	(f)    	
              The
                Closing shall take place, at the offices of the Purchaser in 8 Maskit
                Herzlia, Israel (the “Closing”) on a date to be mutually agreed upon
                between the Grantees’ Representative and the Purchaser, but not later than
                14 days following the date of this agreement, provided that the Grantees
                Representative provided the complete Exhibit A prior to the
                Closing.

            

    

     

    
      	2.3    	
              Notwithstanding
                the provisions of section 2.2, if each VWAP during any 10 consecutive
                Trading Days before March 31, 2008 or March 31, 2009, as the case
                may be,
                is less than US$6.00, the Grantees Representatives may, by joint
                written
                notice within 2 Trading Days of the end of
                any such 10 consecutive Trading Day period, on one occasion, require
                the
                Purchaser to pay cash consideration in lieu and stead of the issuance
                of
                the Ordinary Shares referred to in section 2.2(c) and (d) above,
                respectively. In such event, BluePhoenix will pay the Grantees cash
                in the
                respective amounts specified below and accrued interest at the rate
                equal
                to the applicable Screen Rate of the LIBOR (the London Interbank
                Offered
                Rate) for deposits in GBP having a maturity of three months plus
                1.5%,
                accrued from January 1, 2008. The cash amount to be paid to each
                Grantee
                shall be as specified in Exhibit A attached
                hereto.

            

    

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    In
      the
      event of cash payment instead of the First Issuance, Purchaser will pay the
      Grantees an aggregate amount of GBP 1,160,000, plus interest as stated above,
      not later than March 31, 2008. In the event of cash payment instead of the
      Second Issuance, Purchaser will pay the Grantees an aggregate amount of GBP
      1,740,000, plus interest as stated above, not later than March 31,
      2009.

     

    
      	3.    	
              Registration
                Rights.

            

    

     

    
      	3.1    	 

    

     

    
      	(a)    	
              Not
                later than March 31, 2008 (the “Filing Date”), Purchaser shall, at its
                expense, file a Registration Statement
                to
                permit or facilitate the resale of the First Portion Registrable
                Securities by the Grantees. Not later than March 31, 2009 (the “Second
                Filing Date”), Purchaser shall, at its expense, file a Registration
                Statement to permit or facilitate the resale of the Second Portion
                Registrable Securities by the Grantees. Purchaser may file one
                registration statement for the First Portion and Second Portion or
                include
                in any such registration statement up to 1,000,000 of any other Ordinary
                Shares. The Purchaser shall use reasonable efforts to effect each
                such
                registration as soon as practicable after the Filing Date and to
                keep such
                registration in effect until all the Registrable Securities have
                been sold
                or such earlier date as no registration would be required under the
                terms
                of Section 3.2(iii) below. Nevertheless, the Grantees acknowledge
                and
                agree that declaration of effectiveness may be delayed or withheld,
                and
                shall have no allegations or claims in this regard against the Purchaser,
                provided that the Purchaser is employing reasonable efforts to cause
                such
                registration statement to become effective. Purchaser shall provide
                Grantee’s Representative with a true and complete copy of each such
                registration statement and all amendments thereto. The Grantees
                acknowledge and agree that the registration rights granted pursuant
                to the
                terms hereof are subject in all respects to the prior rights in full
                of
                the holders set forth in the registration rights agreement, dated
                as of
                November 21, 2007, between the Purchaser and the holders named
                therein.

            

    

     

    
      	(b)    	
              Purchaser
                shall use its commercially reasonable efforts to register or qualify
                or
                cooperate with the selling Grantee in connection with the registration
                or
                qualification (or exemption from such registration or qualification)
                of
                such Registrable Securities for offer and sale under the securities
                or
                Blue Sky laws of such jurisdictions within the United States as any
                Grantee requests in writing, to keep each such registration or
                qualification (or exemption therefrom) effective and to do any and
                all
                actions necessary or advisable to enable the disposition in such
                jurisdictions of the Registrable Securities: provided however,
                that the Purchaser shall not be required to qualify generally to
                do
                business in any jurisdiction or where it is not then so qualified
                or to
                take any action that would subject it to general service of process
                in any
                such jurisdiction where it is not then so subject or subject Purchaser
                to
                any material tax in any such jurisdiction where it is not then so
                subject.

            

    

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    
      	(c)    	
              Purchaser
                shall use its commercially reasonable efforts to cause all Registrable
                Securities to be listed or quoted on the Nasdaq Global Market or
                any other
                securities exchange, quotation system or market, if any, on which
                similar
                securities issued by Purchaser are then listed or
                traded.

            

    

     

    
      	3.2    	
              Notwithstanding
                the foregoing, the Purchaser shall not be obligated to effect any
                such
                registration, qualification or compliance, pursuant to Section 3.1,
                (i) if Form F-3 is not available for such offering by a Grantee;
                (ii) if the Purchaser shall furnish to the Grantees a certificate
                signed by the President or CEO of the Purchaser stating that in the
                good
                faith judgment of the Board of Directors of the Purchaser it would
                be
                seriously detrimental to the Purchaser or its stockholders for such
                Form F-3 registration statement to be effected at such time, in which
                event the Purchaser shall have the right to defer the filing of the
                Form F-3 registration statement for a period of not more than one
                hundred twenty (120) days after the respective Filing Date or Second
                Filing Date; (iii) if the Registrable Securities may be sold without
                any
                restriction pursuant to Rule 144 (or any successor rule) or any other
                provision under Rule 144 that permits the Grantees to sell the Registrable
                Securities (provided that volume limitations that permit each Grantee
                to
                sell all their Registrable Securities in one given week shall not
                be
                considered restriction in this regard) as determined by the counsel
                to the
                Purchaser pursuant to a written opinion letter, addressed to the
                Purchaser's transfer agent to such effect; or (iv) if the Purchaser
                has
                already effected one or two F-3 registration statement under this
                Section
                3 covering the Registrable Securities. In connection with any sale
                by a
                Grantee under Rule 144, Purchaser shall cause its counsel to deliver
                such
                resale opinion regarding the removal of the restrictive legend from
                the
                applicable certificate as is required or customarily obtained in
                sales
                under Rule 144, provided that related legal expenses are paid to
                such
                counsel by the Grantee.

            

    

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    
      	3.3    	
              Indemnities.
                In the event of any registration of Registrable Shares pursuant to
                this
                Section 3:

            

    

     

    3.3.1 The
      Purchaser will indemnify and hold harmless, to the fullest extent permitted
      by
      law, the Grantees and any underwriter for the Grantees, and each person, if
      any,
      who controls a Grantee or such underwriter, from and against any and all losses,
      damages, claims, liabilities, costs and expenses (including any amounts paid
      in
      any settlement effected with the Purchaser's reasonable consent) to which the
      Grantees or any such underwriter or controlling person may become subject under
      applicable law or otherwise, insofar as such losses, damages, claims,
      liabilities (or actions or proceedings in respect thereof), costs or expenses
      arise out of or are based upon (i) any untrue statement or alleged untrue
      statement of any material fact contained in the registration statement or
      included in the prospectus, as amended or supplemented, or (ii) the omission
      or
      alleged omission to state therein a material fact required to be stated therein
      or necessary to make the statements therein, in the light of the circumstances
      in which they are made, not misleading, or (iii) a violation of applicable
      securities laws by the Purchaser, and the Purchaser will reimburse the Grantees,
      such underwriter and each such controlling person of the Grantees or the
      underwriter, promptly upon demand, for any reasonable legal or any other
      expenses incurred by them in connection with investigating, preparing to defend
      or defending against such loss, claim, damage, liability, action or proceeding;
      provided,
      however,
      that
      the Purchaser will not be liable in any such case to the extent that any such
      loss, damage, liability, cost or expense arises out of or is based upon an
      untrue statement or alleged untrue statement or omission or alleged omission
      so
      made in conformity with information furnished in writing by a Grantee, such
      underwriter or such controlling persons; provided,
      further,
      that
      this indemnity shall not be deemed to relieve any underwriter of any of its
      due
      diligence obligations; provided,
      further,
      that
      the indemnity agreement contained in this subsection 3.3.1 shall not apply
      to amounts paid in settlement of any such claim, loss, damage, liability or
      action if such settlement is effected without the consent of the Purchaser,
      which consent shall not be unreasonably withheld. 

     

    3.3.2 Each
      Grantee participating in a registration hereunder will indemnify and hold
      harmless the Purchaser, each other Grantee participating in such registration,
      any underwriter for the Purchaser, and each person, if any, who controls the
      Purchaser or such underwriter or such other Grantee, from and against any and
      all losses, damages, claims, liabilities, costs or expenses (including any
      amounts paid in any settlement effected with the Grantee’ reasonable consent) to
      which the Purchaser or any such controlling person and/or any such underwriter
      and/or such other Grantee may become subject under applicable law or otherwise,
      insofar as such losses, damages, claims, liabilities (or actions or proceedings
      in respect thereof), costs or expenses arise out of or are based on (i) any
      untrue or alleged untrue statement of any material fact contained in the
      registration statement or included in the prospectus, as amended or
      supplemented, or (ii) the omission or the alleged omission to state therein
      a material fact required to be stated therein or necessary to make the
      statements therein, in the light of the circumstances in which they were made,
      not misleading, but only to the extent, that such untrue statement or alleged
      untrue statement or omission or alleged omission was made in such registration
      statement, prospectus filed therein, or any amendment or supplement thereto,
      in
      reliance upon and in conformity with written information furnished to the
      Purchaser by or on behalf of the Grantee expressly for use therein and each
      such
      Grantee will reimburse the Purchaser, each other Grantee participating in such
      registration, any underwriter and each such controlling person of the Purchaser
      or any underwriter, promptly upon demand, for any reasonable legal or other
      expenses incurred by them in connection with investigating, preparing to defend
      or defending against or appearing as a third-party witness in connection with
      such loss, claim, damage, liability, action or proceeding; provided,
      that
      this indemnity shall not be deemed to relieve any underwriter of any of its
      due
      diligence obligations; provided,
      further,
      that
      the indemnity agreement contained in this subsection 3.3.2 shall not apply
      to amounts paid in settlement of any such claim, loss, damage, liability or
      action if such settlement is effected without the consent of such Grantee,
      as
      the case may be, which consent shall not be unreasonably withheld. 

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    3.3.3 Promptly
      after receipt by an indemnified party pursuant to the provisions of Sections
      3.3.1 or 3.3.2 of notice of the commencement of any action involving the subject
      matter of the foregoing indemnity provisions, such indemnified party will,
      if a
      claim thereof is to be made against the indemnifying party pursuant to the
      provisions of said Section 3.3.1 or 3.3.2, promptly notify the indemnifying
      party of the commencement thereof; but the omission to notify the indemnifying
      party will not relieve it from any liability which it may have to any
      indemnified party unless the failure to notify is prejudiced of the defense.
      After notice from the indemnifying party to such indemnified party of its
      election so to assume the defense thereof, the indemnifying party will not
      be
      liable to such indemnified party pursuant to the provisions of said Sections
      3.3.1 or 3.3.2 for any legal or other expense subsequently incurred by such
      indemnified party in connection with the defense thereof, unless (i) the
      indemnifying party shall not have employed counsel reasonably satisfactory
      to
      the indemnified party to represent the indemnified party within 15 days after
      the notice of the commencement of the action, or (ii) the indemnifying party
      has
      authorized the employment of counsel for the indemnified party at the expense
      of
      the indemnifying party. No indemnifying party will consent to entry of any
      judgment or enter into any settlement that does not include as an unconditional
      term thereof the giving by the claimant or plaintiff to such indemnified party
      of a release from all liability in respect to such claim or
      litigation.

     

    3.4 If
      recovery is not available under the foregoing indemnification provisions, for
      any reason other than as specified therein, the parties entitled to
      indemnification by the terms thereof shall be entitled to contribution to
      liabilities and expenses. In determining the amount of contribution to which
      the
      respective parties are entitled, there shall be considered the parties’ relative
      knowledge and access to information concerning the matter with respect to which
      the claim was asserted, the opportunity to correct and prevent any statement
      or
      omission, and any other equitable considerations appropriate under the
      circumstances. 

     

    
      	4.    	
              Adjustments.

            

    

     

    
      	4.1    	
              If
                the Purchaser, at any time prior to issuance of the Ordinary Shares
                hereunder, shall: (A) pay a stock dividend or otherwise make a
                distribution or distributions on Ordinary Shares or any other equity
                or
                equity equivalent securities payable in Ordinary Shares, (B) subdivide
                outstanding Ordinary Shares into a larger number of shares, (C) combine
                (including by way of reverse stock split) outstanding Ordinary Shares
                into
                a smaller number of shares, or (D) issue by reclassification of the
                Ordinary Shares any Ordinary Shares, then the number of Ordinary
                Shares
                issued hereunder shall be adjusted accordingly. Any adjustment made
                pursuant to this Section shall become effective immediately after
                the
                record date for the determination of shareholders entitled to receive
                such
                dividend or distribution and shall become effective immediately after
                the
                effective date in the case of a subdivision, combination or
                re-classification.

            

    

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    
      	4.2    	
              If
                at any time before either the First Issuance or the Second Issuance
                is
                completed, Purchaser shall issue securities by reclassification of
                its
                Ordinary Shares (whether pursuant to a merger, consolidation or
                otherwise), then the rights represented under this Amendment to receive
                Ordinary Shares shall thereafter represent the right to acquire such
                number and kind of securities as would have been issuable as a result
                of
                such change with respect to the Ordinary Shares that were subject
                to the
                rights hereunder prior to that event. In addition, in the event of
                a
                Change of Control of Purchaser, Grantee’s rights to receive the First
                Issuance and Second Issuance shall immediately be accelerated and
                such
                Ordinary Shares shall be issued to Grantees within 14 days following
                such
                Change of Control. For purposes of this paragraph, “Change of Control”
                shall mean (a) a purchase of all or substantially all of the share
                capital
                of BluePhoenix by a certain entity or a person; or (b) a sale of
                all or
                substantially all of the assets of
                BluePhoenix.

            

    

     

    
      	5.    	
              Purchaser
                Representations and Covenants.

            

    

     

    
      	5.1    	
              The
                Purchaser hereby represents and warrants that the Ordinary Shares
                are the
                class of securities of the Purchaser that is qualified for trading
                on the
                Nasdaq National Market as of the date hereof and that Form F-3 is
                available to Purchaser with respect to the Ordinary
                Shares.

            

    

     

    
      	5.2    	
              The
                Purchaser covenants that it will at all times reserve and keep available
                out of its authorized and unissued Ordinary Shares solely for the
                purpose
                of issuance of Ordinary Shares hereunder such number of Ordinary
                Shares as
                shall from time to time be sufficient to comply with Purchaser obligations
                hereunder; and if at any time the number of authorized but unissued
                Ordinary Shares shall not be sufficient to comply with Purchaser
                obligations to issue Ordinary Shares hereunder, in addition to such
                other
                remedies as shall be available to the Grantee, the Purchaser will
                take
                such corporate action as may be necessary to increase its authorized
                but
                unissued Ordinary Shares to such number of shares as shall be sufficient
                for such purposes.

            

    

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    
      	6.    	
              Grantee
                Representations and Covenants.
                

            

    

     

    
      	6.1    	
              At
                the time of signing this agreement, each of the Grantees is an “accredited
                investor” as defined in Rule 501(a) under the Securities Act. Each Grantee
                has not been formed solely for the purpose of acquiring the Ordinary
                Shares. None of the Grantees is a registered broker-dealer under
                Section
                15 of the Exchange Act.

            

    

     

    
      	6.2    	
              Investment
                Intent of the Grantee.
                This agreement is entered into subject to certain investment
                representations of the Grantee set forth herein and may be transferred
                or
                exchanged only in compliance with the provisions herein, the Purchase
                Agreement and applicable federal and state securities laws and
                regulations. 

            

    

     

    
      	7.    	
              Taxes.
                All tax consequences and obligations regarding any other compulsory
                payments arising from this agreement and the transactions contemplated
                hereunder, including, payment of interest and issuance of Ordinary
                Shares,
                shall be borne solely by the Grantees, including, without limitation,
                stamp duty. The Purchaser shall withhold any withholding taxes it
                is
                required to under applicable law, including, without limitation,
                withholding tax applicable to any interest payment made
                hereunder.

            

    

     

    
      	8.    	
              No
                Current Rights as Shareholder.
                For the avoidance of doubt, the Grantees shall not have any rights,
                including without limitation any shareholders rights, with respect
                to the
                Ordinary Shares to be issued hereunder, unless a certificate is properly
                issued as set forth herein above. 

            

    

     

    
      	9.    	
              Definitions.
                In addition to the terms defined elsewhere in this Agreement:
                (a) capitalized terms that are not otherwise defined herein have the
                meanings given to such terms in the Purchase Agreement (as defined
                herein), and (b) the following terms have the meanings indicated
                in this
                Section 9:

            

    

     

    “Grantees”
are
      the
      persons or entities listed on Exhibit A attached hereto;

     

    “Grantees
      Representatives”
are
      David Brunel and Guillaume Toussaint;

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended.

     

    “Ordinary
      Shares”
means
      the ordinary shares, NIS 0.01 par value per share, of the Purchaser and shares
      of any other class into which such shares may hereafter have been reclassified
      or changed.

     

    “Purchase
      Agreement”
means
      the Purchase Agreement, dated as of December 14, 2006, to which the Purchaser,
      CodeStream Software limited and the shareholders named therein are parties,
      as
      amended, modified or supplemented from time to time in accordance with its
      terms.

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    “Principal
      Market”
      initially means the Nasdaq National Market and shall also include the New York
      Stock Exchange, the NASDAQ Capital Market, the American Stock Exchange or the
      Tel Aviv Stock Exchange, whichever is at the time the principal trading exchange
      or market for the Ordinary Shares, based upon share volume.

     

    “Registrable
      Securities”
means
      the Ordinary Shares issued under Section 2.2(c) and 2.2(d). First
      Portion Registrable Securities
      means
      the Ordinary Shares issued under Section 2.2(c). Second
      Portion Registrable Securities
      means
      the Ordinary Shares issued under Section 2.2(d).

     

    “Registration
      Statement”
means
      a
      registration statement meeting the requirements set forth herein, covering
      among
      other things the resale of the Ordinary Shares issued hereunder and naming
      the
      Grantees as a “selling shareholders” thereunder.

     

    “Rule
      144”
      means
      Rule 144 promulgated by the SEC pursuant to the Securities Act, as such Rule
      may
      be amended from time to time, or any similar rule or regulation hereafter
      adopted by the SEC having substantially the same effect as such
      Rule.

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder.

     

    “Trading
      Day”
means
      any day during which the Nasdaq Global Market shall be open for
      business.

    

    “VWAP”
means,
      for any date, the price determined by the first of the following clauses that
      applies: (a) if the Ordinary Shares are then listed or quoted on the Principal
      Market, the daily volume weighted average price of the Ordinary Shares for
      such
      date (or the nearest preceding date) as reported by Bloomberg Financial L.P.
      (based on a trading day from 9:30 a.m. Eastern Time to 4:02 p.m. Eastern Time);
      (b) if the Ordinary Shares are not then listed or quoted on the Principal
      Market and if prices for the Ordinary Shares are then quoted on the OTC Bulletin
      Board, the volume weighted average price of the Ordinary Shares for such date
      (or the nearest preceding date) on the OTC Bulletin Board; (c)  if the
      Ordinary Shares are not then listed or quoted on the OTC Bulletin Board and
      if
      prices for the Ordinary Shares are then reported in the “Pink Sheets” published
      by Pink Sheets LLC (or a similar organization or agency succeeding to its
      functions of reporting prices), the most recent bid price per share of the
      Ordinary Shares so reported prior to the day in question; or (d) in all
      other cases, the fair market value of an Ordinary Share as determined by the
      Purchaser’s Board of Directors in good faith.

     

    IN
      WITNESS THE PARTIES HAVE SIGNED THIS PURCHASE AGREEMENT ON THE DATE AND YEAR
      FIRST ABOVE WRITTEN.

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    
      	 	 	 	
              (1)
                BLUEPHOENIX
                SOLUTIONS LTD

            
	 	 	 	 
	 	 	 	
              /s/Arik
                Kilman

            
	 	 	 	
              Acting
                by:

            	 
	 	 	 	
              Name: 

            	
              Arik
                Kiman

            
	 	 	 	
              Title: 

            	
              CEO

            
	 	 	 	 
	 	 	 	
              BLUEPHOENIX SOLUTIONS UK LTD

            
	 	 	 	 
	 	 	 	
              /s/Arik
                Kilman

            
	 	 	 	
              Acting
                by:

            	 
	 	 	 	
              Name: 

            	
              Arik
                Kiman

            
	 	 	 	
              Title: 

            	
              CEO

            
	 	 	 	 
	 	 	 	
              (2) CODESTREAM SOLUTIONS LTD.

            
	 	 	 	 
	 	 	 	/s/David
              Brunel
	 	 	 	
              Acting
                by:

            	 
	 	 	 	
              Name: 

            	
              David
                Brunel

            
	 	 	 	
              Title: 

            	
               

            
	 	 	 	 
	 	 	 	
              (3)
                signed as a deed and delivered by

            
	 	 	 	
              Pine
                Street Investments II

            
	 	 	 	
              /s/David
                Brunel

            
	 	 	 	
              By:David
                Brunel

            
	 	 	 	 	 
	 
	
              Acting
                by:

            	 	 	
              Acting
                by:

            	
               

            
	
              Name: 

            	 	 	
              Name: 

            	
               

            
	
              Title: 
                

            	 	 	
              Title: 

            	
               

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              (4)
                signed as a deed and delivered by

            
	 
	
              
                /s/
                  W. Henry Vandeveer

              

            
	
              W.
                Henry
                Vandeveer

            
	 
	 
	
              In
                the presence of: 

            
	
              Signature
                of Witness:

            
	 
	/s/
	
              Name
                of Witness:

            
	 
	 
	
              Address:

            
	 
	 

    

    

    
      	
              (5)
                signed as a deed and delivered
                by

	 	
              FCPR
                NORD EUROPE I

            
	 	
              By:

            	
              UFG
                Private Equity

            
	 	 	 
	 	
              By:

            	/s/
	 	
              Name:

            	 
	 	
              Title:
                Investment
                Director

            
	 	 	 
	 	 	 
	
              (6)
                signed as a deed and delivered by

            
	 FCPI
              DIADEME INNOVATION I
	 	
              By:
                UFG
                Private Equity

            
	 	 	 
	 	
              By:

            	/s/
	 	
              Name:

            	 
	 	
              Title:
                Investment
                Director

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