Document:

Exhibit 4.10

                                  ATTUNITY LTD.

                       THE 2003 ISRAELI SHARE OPTION PLAN

   (*In compliance with Amendment No. 132 of the Israeli Tax Ordinance, 2002)

                                       1

<PAGE>

                                       2

                                TABLE OF CONTENTS

1. PURPOSE OF THE ISOP.........................................................3

2. DEFINITIONS.................................................................3

3. ADMINISTRATION OF THE ISOP..................................................6

4. DESIGNATION OF PARTICIPANTS.................................................7

5. DESIGNATION OF OPTIONS PURSUANT TO SECTION 102 .............................7

6. TRUSTEE.....................................................................8

7. SHARES RESERVED FOR THE ISOP................................................9

8. PURCHASE PRICE..............................................................9

9. ADJUSTMENTS................................................................10

10. TERM AND EXERCISE OF OPTIONS..............................................11

11. VESTING OF OPTIONS........................................................12

12. PURCHASE FOR INVESTMENT...................................................13

13. DIVIDENDS.................................................................13

14. RESTRICTIONS ON ASSIGNABILITY AND SALE OF OPTIONS.........................13

15. EFFECTIVE DATE AND DURATION OF THE ISOP...................................14

16. AMENDMENTS OR TERMINATION.................................................14

17. GOVERNMENT REGULATIONS....................................................14

18. CONTINUANCE OF EMPLOYMENT.................................................14

19. GOVERNING LAW & JURISDICTION..............................................14

20. TAX CONSEQUENCES..........................................................14

21. NON-EXCLUSIVITY OF THE ISOP...............................................15

22. MULTIPLE AGREEMENTS.......................................................15

                                       2

<PAGE>
                                       3

     This plan,  as amended from time to time,  shall be known as Attunity  Ltd.
     2003 Israeli Share Option Plan (the "ISOP").

1.   PURPOSE OF THE ISOP

     The ISOP is intended to provide an  incentive  to retain,  in the employ of
     the Company and its  Affiliates  (as defined  below),  persons of training,
     experience, and ability, to attract new employees, directors,  consultants,
     service  providers  and any other entity which the Board shall decide their
     services are considered  valuable to the Company, to encourage the sense of
     proprietorship  of such persons,  and to stimulate  the active  interest of
     such persons in the  development  and  financial  success of the Company by
     providing  them with  opportunities  to  purchase  shares  in the  Company,
     pursuant to the ISOP.

2.   DEFINITIONS

     For  purposes  of the ISOP and  related  documents,  including  the  Option
     Agreement, the following definitions shall apply:

     2.1  "Affiliate"  means any  "employing  company"  within  the  meaning  of
          Section 102(a) of the Ordinance.

     2.2  "Approved  102  Option"  means an Option  granted  pursuant to Section
          102(b) of the Ordinance and held in trust by a Trustee for the benefit
          of the Optionee.

     2.3  "Board" means the Board of Directors of the Company.

     2.4  "Capital Gain Option (CGO)" as defined in Section 5.4 below.

     2.5  "Cause" means,  (i) conviction of any felony involving moral turpitude
          or affecting  the Company;  (ii) any refusal to carry out a reasonable
          directive of the chief executive officer,  the Board or the Optionee's
          direct  supervisor,  which involves the business of the Company or its
          Affiliates and was capable of being  lawfully  performed time to cure;
          (iii) embezzlement of funds of the Company or its Affiliates; (iv) any
          breach  of the  Optionee's  fiduciary  duties or duties of care of the
          Company;  including  without  limitation  disclosure  of  confidential
          information of the Company; and (v) any conduct (other than conduct in
          good  faith)  reasonably  determined  by the  Board  to be  materially
          detrimental to the Company.

          In order to remove doubt, it is hereby  clarified that in any event of
          conflict  between the  definition of the term "Cause" in this ISOP and
          the  definition of the term "Cause" in certain  employment  agreement,
          the  definition  in this ISOP  shall  prevail in  connection  with the
          Option, with the Option Agreement and with this ISOP.

     2.6  "Chairman" means the chairman of the Committee.

     2.7  "Code" means the United States  Internal  Revenue Code of 1986, as now
          in effect or as hereafter amended.

                                       3
<PAGE>
                                       4

     2.8  "Committee" means a share option compensation  committee of the Board,
          designated  from time to time by the  resolution  of the Board,  which
          shall consist of no fewer than two members of the Board. The Committee
          shall consist of directors  who are "outside  directors" as defined in
          Section 162(m) of the Code and "Non-Employee  Directors" as defined in
          Rule 16b-3 promulgated by the Securities and Exchange Commission under
          the United States Securities Exchange Act of 1934.

     2.9  "Company" means Attunity Ltd., an Israeli company.

     2.10 "Companies Law" means the Israeli  Companies Law 5759-1999,  as now in
          effect or as hereafter amended.

     2.11 "Controlling  Shareholder"  shall have the  meaning  ascribed to it in
          Section 32(9) of the Ordinance.

     2.12 "Date of Grant" means,  the date of grant of an Option,  as determined
          by the Board or authorized  Committee and set forth in the  Optionee's
          Option Agreement.

     2.13 Employee"  means  a  person  who is  employed  by the  Company  or its
          Affiliates, including an individual who is serving as a director or an
          office holder, but excluding Controlling Shareholder.

     2.14 "Expiration date" means the date upon which an Option shall expire, as
          set forth in Section 10.2 of the ISOP.

     2.15 "Fair  Market  Value"  means  as of any  date,  the  value  of a Share
          determined as follows:

          (i) If the Shares are listed on any  established  stock  exchange or a
          national  market  system ,  including  without  limitation  the NASDAQ
          National  Market system,  or the NASDAQ  SmallCap Market of the NASDAQ
          Stock  Market,  the Fair Market Value shall be the closing sales price
          for such Shares (or the closing  bid, if no sales were  reported),  as
          quoted on such  exchange  or system for the last  market  trading  day
          prior  to  time of  determination,  as  reported  in the  Wall  Street
          Journal, or such other source as the Board deems reliable.

          Without  derogating  from  the  above,   solely  for  the  purpose  of
          determining  the tax  liability  pursuant to Section  102(b)(3) of the
          Ordinance,  if at the Date of Grant the Company's shares are listed on
          any  established  stock exchange or a national market system or if the
          Company's  shares will be  registered  for trading  within ninety (90)
          days following the Date of Grant,  the Fair Market Value of a Share at
          the Date of Grant shall be determined  in accordance  with the average
          value  of  the  Company's  shares  on the  thirty  (30)  trading  days
          preceding  the  Date of  Grant  or on the  thirty  (30)  trading  days
          following the date of registration for trading, as the case may be;

          (ii) If the Shares are  regularly  quoted by a  recognized  securities
          dealer but selling  prices are not  reported,  the Fair  Market  Value
          shall be the mean  between  the high bid and low asked  prices for the
          Shares  on  the  last   market   trading  day  prior  to  the  day  of
          determination, or;

                                       4

<PAGE>
                                       5

          (iii) In the absence of an established market for the Shares, the Fair
          Market Value thereof shall be determined in good faith by the Board.

     2.16 "ISOP"  means this 2003 Israeli  Share Option Plan,  as may be amended
          from time to time.

     2.17 "ITA" means the Israeli Tax Authorities.

     2.18 "Non-Employee"   means  a  consultant,   adviser,   service  provider,
          Controlling Shareholder or any other person who is not an Employee.

     2.19 "Ordinary Income Option (OIO)" as defined in Section 5.5 below.

     2.20 "Option" means an option to purchase one or more Shares of the Company
          pursuant to the ISOP.

     2.21 "102 Option" means any Option granted to Employees pursuant to Section
          102 of the Ordinance.

     2.22 "3(i) Option" means an Option granted  pursuant to Section 3(i) of the
          Ordinance to any person who is Non- Employee.

     2.23 "Optionee"  means a person who  receives or holds an Option  under the
          ISOP.

     2.24 "Option  Agreement"  means  the share  option  agreement  between  the
          Company and an Optionee  that sets out the terms and  conditions of an
          Option.

     2.25 "Ordinance"  means the 1961 Israeli Income Tax Ordinance [New Version]
          1961  as  now  in  effect  or as  hereafter  amended  and  regulations
          promulgated thereunder.

     2.26 "Purchase Price" means the price for each Share subject to an Option.

     2.27 "Section  102" means  section 102 of the Ordinance as now in effect or
          as hereafter amended.

     2.28 "Share"  means the  ordinary  shares,  NIS 0.1 par value each,  of the
          Company.  2.29  "Successor  Company"  means any entity the  Company is
          merged to or is acquired by, in which the Company is not the surviving
          entity.

     2.30 "Transaction"  means (i) merger,  acquisition or reorganization of the
          Company  with one or more other  entities  in which the Company is not
          the surviving  entity,  (ii) a sale of all or substantially all of the
          assets or shares of the Company not covered by paragraph (1) above.

     2.31 "Trustee" means any individual  appointed by the Company to serve as a
          trustee and approved by the ITA, all in accordance with the provisions
          of Section 102(a) of the Ordinance.

     2.32 "Unapproved  102 Option" means an Option  granted  pursuant to Section
          102(c) of the  Ordinance  and not held in trust by a  Trustee  for the
          benefit of the Optionee.

                                       5
<PAGE>

                                       6

     2.33 "Vested  Option"  means any  Option,  which has  already  been  vested
          according to the Vesting Dates.

     2.34 "Vesting Dates" means, as determined by the Board or by the Committee,
          the date as of which the  Optionee  shall be entitled to exercise  the
          Options  or part of the  Options,  as set forth in  section  11 of the
          ISOP.

3.   ADMINISTRATION OF THE ISOP

     3.1  The Board shall have the power to administer the ISOP either  directly
          or upon  the  recommendation  of the  Committee,  all as  provided  by
          applicable  law  and  in  the  Company's   Articles  of   Association.
          Notwithstanding the above, the Board shall automatically have residual
          authority:  (i) if no Committee  shall be constituted or; (ii) if such
          Committee shall cease to operate for any reason or; (iii) with respect
          to the rights not delegated by the Board to the Committee.

     3.2  The  Committee  shall  select one of its members as its  Chairman  and
          shall hold its meetings at such times and places as the Chairman shall
          determine.  The Committee shall keep records of its meetings and shall
          make such rules and  regulations for the conduct of its business as it
          shall deem advisable.

     3.3  The  Committee  shall have the power to recommend to the Board and the
          Board  shall  have the full  power and  authority  to:  (i)  designate
          participants;   (ii)   determine  the  terms  and  provisions  of  the
          respective  Option  Agreements,  including,  but not  limited  to, the
          number of Options to be granted to each Optionee, the number of Shares
          to be covered by each Option,  provisions  concerning the time and the
          extent  to which the  Options  may be  exercised  and the  nature  and
          duration of  restrictions  as to the  transferability  or restrictions
          constituting  substantial  risk of forfeiture and to cancel or suspend
          awards,  as  necessary;  (iii)  determine the Fair Market Value of the
          Shares covered by each Option; (iv) make an election as to the type of
          Approved 102 Option; and (v) designate the type of Options.

          The  Committee  shall have full power and  authority to :(i) alter any
          restrictions  and  conditions of any Options or Shares  subject to any
          Options (ii) interpret the provisions and supervise the administration
          of the ISOP;  (iii) accelerate the right of an Optionee to exercise in
          whole or in part, any previously  granted  Option;  (iv) determine the
          Purchase Price of the Option;  (v) prescribe,  amend and rescind rules
          and  regulations  relating  to the  ISOP;  and  (vi)  make  all  other
          determinations deemed necessary or advisable for the administration of
          the ISOP.

     3.4  Notwithstanding  the above,  the  Committee  shall not be  entitled to
          grant  Options to the  Optionees,  however,  it will be  authorized to
          issue Shares  underlying  Options which have been granted by the Board
          and duly  exercised  pursuant to the  provisions  herein in accordance
          with section 112(a)(5) of the Companies Law.

                                       6
<PAGE>
                                       7

     3.5  The Board shall have the authority to grant, at its discretion, to the
          holder of an  outstanding  Option,  in exchange for the  surrender and
          cancellation  of such  Option,  a new Option  having a purchase  price
          equal to, lower than or higher than the Purchase Price of the original
          Option so surrendered and canceled and containing such other terms and
          conditions  as the  Committee  may  prescribe in  accordance  with the
          provisions of the ISOP.

     3.6  Subject to the Company's  Articles of  Association,  all decisions and
          selections  made  by  the  Board  or  the  Committee  pursuant  to the
          provisions  of the ISOP  shall be made by a  majority  of its  members
          except that, subject to the provisions of the Companies Law, no member
          of the Board or the Committee  shall vote on, or be counted for quorum
          purposes,  with  respect  to any  proposed  action of the Board or the
          Committee  relating  to any Option to be granted to that  member.  Any
          decision  reduced to writing shall be executed in accordance  with the
          provisions of the Company's  Articles of Association,  as the same may
          be in effect from time to time.

     3.7  The  interpretation  and construction by the Board or the Committee of
          any provision of the ISOP or of any Option Agreement  thereunder shall
          be final and conclusive unless otherwise determined by the Board.

     3.8  Subject to the  Company's  Articles of  Association  and the Company's
          decision,  and to all approvals legally required,  including,  but not
          limited to the  provisions  of the  Companies  Law, each member of the
          Board or the Committee  shall be indemnified  and held harmless by the
          Company  against  any  cost  or  expense   (including   counsel  fees)
          reasonably  incurred by him, or any liability  (including any sum paid
          in settlement of a claim with the approval of the Company) arising out
          of any act or  omission  to act in  connection  with the  ISOP  unless
          arising  out of such  member's  own fraud or bad faith,  to the extent
          permitted by applicable law. Such indemnification shall be in addition
          to any rights of indemnification  the member may have as a director or
          otherwise under the Company's Articles of Association,  any agreement,
          any vote of shareholders or disinterested directors,  insurance policy
          or otherwise.

4.   DESIGNATION OF PARTICIPANTS

     4.1  The persons eligible for  participation in the ISOP as Optionees shall
          include any Employees  and/or  Non-Employees  of the Company or of any
          Affiliate;  provided,  however, that (i) Employees may only be granted
          102 Options;  (ii) Non-Employees may only be granted 3(i) Options; and
          (iii) Controlling Shareholders may only be granted 3(i) Options.

     4.2  The grant of an Option hereunder shall neither entitle the Optionee to
          participate  nor  disqualify the Optionee from  participating  in, any
          other  grant of Options  pursuant  to the ISOP or any other  option or
          share plan of the Company or any of its Affiliates.

     4.3  Anything in the ISOP to the  contrary  notwithstanding,  all grants of
          Options  to  directors  and office  holders  shall be  authorized  and
          implemented in accordance  with the provisions of the Companies Law or
          any successor act or regulation, as in effect from time to time.

5.   DESIGNATION OF OPTIONS PURSUANT TO SECTION 102

     5.1  The Company may  designate  Options  granted to Employees  pursuant to
          Section 102 as Unapproved 102 Options or Approved 102 Options.

                                       7
<PAGE>

                                       8

     5.2  The  grant of  Approved  102  Options  shall be made  under  this ISOP
          adopted by the Board as  described  in Section 15 below,  and shall be
          conditioned  upon the  approval of this ISOP by the ITA as required by
          Section 102.

     5.3  Subject to the  provisions  of Section 5.6 below,  Approved 102 Option
          may either be  classified  as Capital Gain Option  ("CGO") or Ordinary
          Income Option ("OIO").

     5.4  Approved 102 Option  elected and  designated by the Company to qualify
          under the capital gain tax treatment in accordance with the provisions
          of Section 102(b)(2) shall be referred to herein as CGO.

     5.5  Approved 102 Option  elected and  designated by the Company to qualify
          under  the  ordinary  income  tax  treatment  in  accordance  with the
          provisions of Section 102(b)(1) shall be referred to herein as OIO.

     5.6  The  Company's  election of the type of Approved 102 Options as CGO or
          OIO granted to  Employees  (the  "Election"),  shall be  appropriately
          filed with the ITA before the Date of Grant of an Approved 102 Option.
          Such Election shall become effective beginning the first Date of Grant
          of an Approved  102 Option  under this ISOP and shall remain in effect
          until the end of the year  following the year during which the Company
          first granted  Approved 102 Options.  The Election  shall obligate the
          Company to grant only the type of Approved  102 Option it has elected,
          and shall apply to all Optionees who were granted Approved 102 Options
          during  the  period  indicated  herein,  all in  accordance  with  the
          provisions of Section  102(g) of the  Ordinance.  For the avoidance of
          doubt,  such  Election  shall not prevent the  Company  from  granting
          Unapproved 102 Options simultaneously.

     5.7  All  Approved  102  Options  must be held in  trust by a  Trustee,  as
          described in Section 6 below.

     5.8  For the avoidance of doubt,  the designation of Unapproved 102 Options
          and Approved 102 Options shall be subject to the terms and  conditions
          set  forth  in  Section  102  of the  Ordinance  and  the  regulations
          promulgated thereunder.

     5.9  With  regards to Approved  102  Options,  the  provisions  of the ISOP
          and/or the Option  Agreement  shall be  subject to the  provisions  of
          Section  102 and the Tax  Assessing  Officer's  permit,  and the  said
          provisions and permit shall be deemed an integral part of the ISOP and
          of the Option Agreement.  Any provision of Section 102 and/or the said
          permit which is  necessary in order to receive  and/or to keep any tax
          benefit  pursuant to Section 102, which is not expressly  specified in
          the ISOP or the Option Agreement, shall be considered binding upon the
          Company and the Optionees.

                                       8
<PAGE>

                                       9

6.   TRUSTEE

     6.1  Approved 102 Options  which shall be granted under the ISOP and/or any
          Shares  allocated or issued upon exercise of such Approved 102 Options
          and/or other shares received subsequently following any realization of
          rights,  including without limitation bonus shares, shall be allocated
          or issued to the Trustee and held for the benefit of the Optionees for
          such period of time as  required  by Section  102 or any  regulations,
          rules or orders or  procedures  promulgated  thereunder  (the "Holding
          Period").  In the case the  requirements  for Approved 102 Options are
          not met,  then the Approved  102 Options may be treated as  Unapproved
          102 Options,  all in accordance with the provisions of Section 102 and
          regulations promulgated thereunder.

     6.2  Notwithstanding  anything  to the  contrary,  the  Trustee  shall  not
          release any Shares  allocated or issued upon  exercise of Approved 102
          Options prior to the full payment of the  Optionee's  tax  liabilities
          arising from Approved 102 Options which were granted to him and/or any
          Shares allocated or issued upon exercise of such Options.

     6.3  With respect to any Approved 102 Option,  subject to the provisions of
          Section  102 and any  rules or  regulation  or  orders  or  procedures
          promulgated  thereunder,  an Optionee  shall not sell or release  from
          trust any Share  received  upon the exercise of an Approved 102 Option
          and/or any share received  subsequently  following any  realization of
          rights, including without limitation, bonus shares, until the lapse of
          the  Holding  Period  required  under  Section  102 of the  Ordinance.
          Notwithstanding  the above,  if any such sale or release occurs during
          the Holding  Period,  the sanctions under Section 102 of the Ordinance
          and under any rules or regulation or orders or procedures  promulgated
          thereunder shall apply to and shall be borne by such Optionee.

     6.4  Upon  receipt  of  Approved  102  Option,  the  Optionee  will sign an
          undertaking  to release the Trustee  from any  liability in respect of
          any action or decision  duly taken and bona fide  executed in relation
          with the ISOP,  or any  Approved  102  Option or Share  granted to him
          thereunder.

7.   SHARES RESERVED FOR THE ISOP; RESTRICTION THEREON

     7.1  The  Company  has  reserved   1,500,000  (one  million  five  hundred)
          authorized but unissued Shares, for the purposes of the ISOP, the 2001
          Employee  Stock Option  Plan,  and for the purposes of any other share
          option  plans  which may be  adopted  by the  Company  in the  future,
          subject  to  adjustment  as set forth in  Section 9 below.  Any Shares
          which  remain  unissued  and which are not subject to the  outstanding
          Options at the  termination of the ISOP shall cease to be reserved for
          the purpose of the ISOP, but until termination of the ISOP the Company
          shall at all  times  reserve  sufficient  number of Shares to meet the
          requirements  of the ISOP.  Should any Option for any reason expire or
          be canceled  prior to its  exercise  or  relinquishment  in full,  the
          Shares  subject  to such  Option may again be  subjected  to an Option
          under the ISOP or under the Company's other share option plans.

                                       9

<PAGE>

                                       10

     7.2  Each Option  granted  pursuant to the ISOP,  shall be  evidenced  by a
          written Option Agreement between the Company and the Optionee, in such
          form as the Board or the  Committee  shall from time to time  approve.
          Each Option Agreement shall state, among other matters,  the number of
          Shares  to  which  the  Option  relates,  the type of  Option  granted
          thereunder  (whether  a CGO,  OIO,  Unapproved  102  Option  or a 3(i)
          Option),  the  Vesting  Dates,  the  Purchase  Price  per  share,  the
          Expiration  Date and such other terms and  conditions as the Committee
          or the Board in its discretion  may prescribe,  provided that they are
          consistent with this ISOP.  Unless otherwise  explicitly  expressed in
          the Option Agreement or in this Plan, in any event of conflict between
          the  provisions  of  this  ISOP  and  the  provisions  of  the  Option
          Agreement, the provisions of this Option Agreement shall prevail.

8.   PURCHASE PRICE

     8.1  The  Purchase  Price  of each  Share  subject  to an  Option  shall be
          determined  by the  Committee in its sole and absolute  discretion  in
          accordance with  applicable  law,  subject to any guidelines as may be
          determined by the Board from time to time. Each Option  Agreement will
          contain the Purchase Price determined for each Optionee.

     8.2  The Purchase Price shall be payable upon the exercise of the Option in
          a form satisfactory to the Committee, including without limitation, by
          cash or check.  The Committee shall have the authority to postpone the
          date of payment on such terms as it may determine.

     8.3  The Purchase Price shall be denominated in the currency of the primary
          economic  environment  of, either the Company or the Optionee (that is
          the  functional  currency of the Company or the  currency in which the
          Optionee is paid) as determined by the Company.

9.   ADJUSTMENTS

     Upon the occurrence of any of the following  described  events,  Optionee's
     rights to purchase  Shares  under the ISOP shall be  adjusted as  hereafter
     provided:

     9.1  In the event of Transaction,  the unexercised Options then outstanding
          under the ISOP  shall be  assumed or  substituted  for an  appropriate
          number of shares of each  class of shares or other  securities  of the
          Successor Company (or a parent or subsidiary of the Successor Company)
          as were  distributed  to the  shareholders  of Ordinary  Shares of the
          Company in connection and with respect to the Transaction. In the case
          of  such  assumption  and/or  substitution  of  Options,   appropriate
          adjustments  shall be made to the Purchase Price so as to reflect such
          action and all other  terms and  conditions  of the Option  Agreements
          shall  remain  unchanged,  including  but not  limited to the  vesting
          schedule,  all subject to the  determination  of the  Committee or the
          Board,  which  determination  shall be in their  sole  discretion  and
          final.  The Company  shall notify the Optionee of the  Transaction  in
          such  form and  method as it deems  applicable  at least ten (10) days
          prior to the effective date of such Transaction.

     9.2  Notwithstanding the above and subject to any applicable law, the Board
          or the Committee shall have full power and authority to determine that
          in certain Option Agreements there shall be a clause instructing that,
          if in any such  Transaction  as  described  in section 9.1 above,  the
          Successor  Company (or parent or subsidiary of the Successor  Company)
          does not agree to

                                       10
<PAGE>

                                       11

          assume or  substitute  for the  Options,  the  Vesting  Dates shall be
          accelerated so that any unvested  Option or any portion  thereof shall
          be  immediately  vested as of the date which is ten (10) days prior to
          the effective date of the Transaction and any Options not exercised by
          ten (10) days prior to the effective date of the Transaction  shall be
          null  and void and no  consideration  whatsoever  shall be paid to the
          Optionees in connection with such Options.

     9.3  For the purposes of section 9.1 above,  an Option shall be  considered
          assumed or  substituted  if,  following  the  Transaction,  the Option
          confers the right to purchase or receive, for each Share underlying an
          Option  immediately  prior  to  the  Transaction,   the  consideration
          (whether  shares,  options,  cash,  or other  securities  or property)
          received in the  Transaction by holders of Ordinary Shares held on the
          effective date of the Transaction  (and if such holders were offered a
          choice  of  consideration,  the type of  consideration  chosen  by the
          holders of a majority of the outstanding shares);  provided,  however,
          that if such  consideration  received in the Transaction is not solely
          ordinary shares (or their  equivalent) of the Successor Company or its
          parent or  subsidiary,  the  Committee  may,  with the  consent of the
          Successor  Company,  provide for the consideration to be received upon
          the  exercise  of the  Option to be solely  ordinary  shares (or their
          equivalent) of the Successor Company or its parent or subsidiary equal
          in Fair  Market  Value  to the per  Share  consideration  received  by
          holders of a majority of the  outstanding  shares in the  Transaction;
          and  provided  further  that  the  Committee  may  determine,  in  its
          discretion, that in lieu of such assumption or substitution of Options
          for options of the Successor Company or its parent or subsidiary, such
          Options  will be  substituted  for any other type of asset or property
          including cash which is fair under the circumstances.

     9.4  If  the  Company  is   voluntarily   liquidated  or  dissolved   while
          unexercised  Options  remain  outstanding  under the ISOP, the Company
          shall  immediately  notify  all  unexercised  Option  holders  of such
          liquidation,  and the Option  holders shall then have ten (10) days to
          exercise any  unexercised  Vested Option held by them at that time, in
          accordance  with the exercise  procedure  set forth  herein.  Upon the
          expiration of such ten-days period, all remaining  outstanding Options
          will terminate immediately.

     9.5  If the outstanding  shares of the Company shall at any time be changed
          or exchanged by declaration of a share dividend (bonus shares),  share
          split,  combination  or exchange of shares,  recapitalization,  or any
          other like event by or of the Company,  and as often as the same shall
          occur,  then the number,  class and kind of the Shares  subject to the
          ISOP or subject to any Options  therefore  granted,  and the  Purchase
          Prices,  shall  be  appropriately  and  equitably  adjusted  so  as to
          maintain  the  proportionate  number of Shares  without  changing  the
          aggregate Purchase Price, provided,  however, that no adjustment shall
          be made by reason of the  distribution of subscription  rights (rights
          offering)  on  outstanding  shares.  Upon  happening  of  any  of  the
          foregoing,  the class and aggregate number of Shares issuable pursuant
          to the ISOP (as set forth in  Section 7  hereof),  in respect of which
          Options have not yet been exercised,  shall be appropriately adjusted,
          all as will be  determined by the Board whose  determination  shall be
          final.

10.  TERM AND EXERCISE OF OPTIONS

     10.1 Options shall be exercised by the Optionee by giving written notice to
          the Company  and/or to any third party  designated by the Company (the
          "Representative"), in such form and method as

                                       11
<PAGE>

                                       12

          may be determined by the Company and when  applicable,  by the Trustee
          in accordance  with the  requirements  of Section 102,  which exercise
          shall be effective  upon receipt of such notice by the Company  and/or
          the  Representative  and the  payment  of the  Purchase  Price  at the
          Company's or the  Representative's  principal office. The notice shall
          specify the number of Shares with respect to which the Option is being
          exercised.

     10.2 Options,  to the  extent not  previously  exercised,  shall  terminate
          forthwith  upon the  earlier  of: (i) the date set forth in the Option
          Agreement;  and (ii) the  expiration of any extended  period in any of
          the events set forth in section 10.5 below.

     10.3 The Options may be  exercised  by the Optionee in whole at any time or
          in part from  time to time,  to the  extent  that the  Options  become
          vested and  exercisable,  prior to the  Expiration  Date, and provided
          that, subject to the provisions of section 10.5 below, the Optionee is
          employed  by or  providing  services  to  the  Company  or  any of its
          Affiliates, at all times during the period beginning with the granting
          of the Option and ending upon the date of exercise.

     10.4 Subject to the  provisions  of  section  10.5  below,  in the event of
          termination of Optionee's employment or services,  with the Company or
          any of its  Affiliates,  all  Options  granted to such  Optionee  will
          immediately  expire.  A notice of termination of employment or service
          shall be deemed to  constitute  termination  of employment or service.
          For the avoidance of doubt, in case of such  termination of employment
          or service,  the unvested  portion of the Optionee's  Option shall not
          vest and shall not become exercisable.

     10.5 Notwithstanding  anything  to  the  contrary  hereinabove  and  unless
          otherwise determined in the Optionee's Option Agreement, an Option may
          be exercised after the date of termination of Optionee's employment or
          service with the Company or any Affiliates during an additional period
          of time beyond the date of such termination,  but only with respect to
          the number of Vested Options at the time of such termination according
          to the Vesting Dates, if:

          (i)  termination  is without  Cause,  in which event any Vested Option
               still in force and unexpired may be exercised  within a period of
               ninety (90) days after the date of such termination; or-

          (ii) termination is the result of death or disability of the Optionee,
               in which event any Vested Option still in force and unexpired may
               be exercised within a period of twelve (12) months after the date
               of such termination; or -

          (iii)prior  to the  date  of such  termination,  the  Committee  shall
               authorize  an extension of the terms of all or part of the Vested
               Options beyond the date of such  termination  for a period not to
               exceed the period  during  which the Options by their terms would
               otherwise have been exercisable.

          For avoidance of any doubt, if termination of employment or service is
          for Cause,  any  outstanding  unexercised  Option  (whether  vested or
          non-vested),  will immediately expire and terminate,  and the Optionee
          shall not have any right in connection to such outstanding Options.

     10.6 To avoid  doubt,  the  Optionees  shall not have any of the  rights or
          privileges of shareholders of

                                       12
<PAGE>

                                       13

          the Company in respect of any Shares  purchasable upon the exercise of
          any Option,  nor shall they be deemed to be a class of shareholders or
          creditors of the Company for purpose of the  operation of sections 350
          and 351 of the Companies  Law or any successor to such section,  until
          registration of the Optionee as holder of such Shares in the Company's
          register of  shareholders  upon  exercise of the Option in  accordance
          with the  provisions  of the ISOP,  but in case of Options  and Shares
          held by the  Trustee,  subject to the  provisions  of Section 6 of the
          ISOP.

     10.7 Any form of Option  Agreement  authorized by the ISOP may contain such
          other  provisions  as the  Committee  may,  from  time to  time,  deem
          advisable.

     10.8 With respect to Unapproved  102 Option,  if the Optionee  ceases to be
          employed by the Company or any Affiliate, the Optionee shall extend to
          the  Company  and/or its  Affiliate a security  or  guarantee  for the
          payment  of tax due at the time of sale of Shares,  all in  accordance
          with the provisions of Section 102 and the rules, regulation or orders
          promulgated thereunder.

11.  VESTING OF OPTIONS

     11.1 Subject  to the  provisions  of  the  ISOP,  each  Option  shall  vest
          following  the Vesting  Dates and for the number of Shares as shall be
          provided in the Option Agreement.  However,  subject to the provisions
          of  Section  10.5  above,  no Option  shall be  exercisable  after the
          Expiration Date.

     11.2 An Option may be subject to such  other  terms and  conditions  on the
          time or times  when it may be  exercised,  as the  Committee  may deem
          appropriate. The vesting provisions of individual Options may vary.

12.  PURCHASE FOR INVESTMENT

     The Company's  obligation  to issue or allocate  Shares upon exercise of an
     Option  granted  under  the ISOP is  expressly  conditioned  upon:  (a) the
     Company's  completion of any registration or other  qualifications  of such
     Shares  under  all   applicable   laws,   rules  and   regulations  or  (b)
     representations   and   undertakings   by  the   Optionee   (or  his  legal
     representative,  heir or legatee,  in the event of the Optionee's death) to
     assure that the sale of the Shares complies with any registration exemption
     requirements  which the Company in its sole discretion shall deem necessary
     or advisable.  Such required  representations  and undertakings may include
     representations   and   agreements   that  such   Optionee  (or  his  legal
     representative,  heir,  or  legatee):  (a) is  purchasing  such  Shares for
     investment  and not with any  present  intention  of selling  or  otherwise
     disposing thereof;  and (b) agrees to have placed upon the face and reverse
     of any  certificates  evidencing such Shares a legend setting forth (i) any
     representations  and  undertakings  which  such  Optionee  has given to the
     Company or a reference  thereto and (ii) that,  prior to effecting any sale
     or other  disposition of any such Shares,  the Optionee must furnish to the
     Company an opinion of counsel,  satisfactory to the Company, that such sale
     or  disposition   will  not  violate  the  applicable   laws,   rules,  and
     regulations,  whether of the State of Israel or of the United States or any
     other State having jurisdiction over the Company and the Optionee.

                                       13
<PAGE>

                                       14

13.  DIVIDENDS

     With respect to all Shares (but excluding,  for avoidance of any doubt, any
     unexercised  Options)  allocated  or issued  upon the  exercise  of Options
     purchased by the  Optionee  and held by the Optionee or by the Trustee,  as
     the case may be, the  Optionee  shall be entitled to receive  dividends  in
     accordance  with the quantity of such Shares,  subject to the provisions of
     the Company's  Articles of  Association  (and all  amendments  thereto) and
     subject to any applicable  taxation on distribution of dividends,  and when
     applicable  subject  to the  provisions  of  Section  102  and  the  rules,
     regulations or orders promulgated thereunder.

14.  RESTRICTIONS ON ASSIGNABILITY AND SALE OF OPTIONS

     14.1 No Option or any right with respect  thereto,  purchasable  hereunder,
          whether fully paid or not, shall be assignable,  transferable or given
          as collateral or any right with respect to it given to any third party
          whatsoever,  except as specifically allowed under the ISOP, and during
          the lifetime of the Optionee each and all of such Optionee's rights to
          purchase Shares hereunder shall be exercisable only by the Optionee.

          Any  such  action  made  directly  or  indirectly,  for  an  immediate
          validation or for a future one, shall be void.

     14.2 As long as Options  and/or Shares are held by the Trustee on behalf of
          the Optionee, all rights of the Optionee over the Shares are personal,
          can not be transferred,  assigned, pledged or mortgaged, other than by
          will or pursuant to the laws of descent and distribution.

15.  EFFECTIVE DATE AND DURATION OF THE ISOP

     The ISOP shall be  effective  as of the day it was adopted by the Board and
     shall terminate at the end of ten (10) years from such day of adoption.

16.  AMENDMENTS OR TERMINATION

     The Board may at any time, but when applicable, after consultation with the
     Trustee,  amend,  alter,  suspend  or  terminate  the ISOP.  No  amendment,
     alteration,  suspension or  termination of the ISOP shall impair the rights
     of any Optionee,  unless mutually agreed otherwise between the Optionee and
     the Company,  which agreement must be in writing and signed by the Optionee
     and the Company.  Termination of the ISOP shall not affect the  Committee's
     ability to exercise  the powers  granted to it  hereunder  with  respect to
     Options granted under the ISOP prior to the date of such termination.

                                       14
<PAGE>

                                       15

17.  GOVERNMENT REGULATIONS

     The ISOP,  and the  granting  and  exercise of Options  hereunder,  and the
     obligation  of the Company to sell and deliver  Shares under such  Options,
     shall be subject to all applicable laws, rules, and regulations, whether of
     the State of  Israel or of the  United  States  or any other  State  having
     jurisdiction over the Company and the Optionee,  including the registration
     of the  Shares  under the United  States  Securities  Act of 1933,  and the
     Ordinance and to such  approvals by any  governmental  agencies or national
     securities exchanges as may be required.  Nothing herein shall be deemed to
     require the Company to register the Shares under the securities laws of any
     jurisdiction.

18.  CONTINUANCE OF EMPLOYMENT OR HIRED SERVICES

     Neither the ISOP nor the Option  Agreement  with the Optionee  shall impose
     any  obligation  on the Company or an  Affiliate  thereof,  to continue any
     Optionee in its employ or service, and nothing in the ISOP or in any Option
     granted  pursuant  thereto  shall  confer  upon any  Optionee  any right to
     continue in the employ or service of the Company or an Affiliate thereof or
     restrict the right of the Company or an Affiliate thereof to terminate such
     employment or service at any time.

19.  GOVERNING LAW & JURISDICTION

     The ISOP shall be governed by and construed and enforced in accordance with
     the laws of the  State of Israel  applicable  to  contracts  made and to be
     performed  therein,  without giving effect to the principles of conflict of
     laws. The competent courts of Tel-Aviv, Israel shall have sole jurisdiction
     in any matters pertaining to the ISOP.

20.  TAX CONSEQUENCES

     20.1 Any tax consequences arising from the grant or exercise of any Option,
          from the payment for Shares covered thereby or from any other event or
          act  (of  the  Company  and/or  its  Affiliates,  the  Trustee  or the
          Optionee),  hereunder,  shall be borne  solely  by the  Optionee.  The
          Company and/or its Affiliates  and/or the Trustee shall withhold taxes
          according to the requirements  under the applicable  laws,  rules, and
          regulations,  including withholding taxes at source. Furthermore,  the
          Optionee  shall agree to indemnify the Company  and/or its  Affiliates
          and/or the Trustee and hold them harmless against and from any and all
          liability for any such tax or interest or penalty  thereon,  including
          without limitation, liabilities relating to the necessity to withhold,
          or to have  withheld,  any  such  tax  from  any  payment  made to the
          Optionee.

     20.2 The Company and/or, when applicable, the Trustee shall not be required
          to release any Share  certificate  to an Optionee  until all  required
          payments have been fully made.

21.  NON-EXCLUSIVITY OF THE ISOP

     The  adoption of the ISOP by the Board shall not be  construed as amending,
     modifying or rescinding any previously  approved incentive  arrangements or
     as creating any  limitations  on the power of the Board to adopt such other
     incentive  arrangements  as  it  may  deem  desirable,  including,  without
     limitation, the granting of Options otherwise than under the ISOP, and such
     arrangements may be either applicable generally or only in specific cases.

                                       15

<PAGE>
                                       16

     For the  avoidance  of doubt,  prior grant of options to  Optionees  of the
     Company under their employment agreements,  and not in the framework of any
     previous option plan, shall not be deemed an approved incentive arrangement
     for the purpose of this Section.

22.   MULTIPLE AGREEMENTS

     The terms of each Option may differ from other  Options  granted  under the
     ISOP at the same time, or at any other time.  The Board may also grant more
     than one Option to a given Optionee during the term of the ISOP,  either in
     addition to, or in substitution for, one or more Options previously granted
     to that Optionee.

                                      * * *

                                       16Exhibit 4.12

                        Employment and Services Agreement
                        ---------------------------------

                     Duly made and executed in Haifa, Israel
                           as of the ___ of March 2004

                                 by and between

                                  Attunity Ltd.
                              Company no. 520038019
                of Einstein Building, Tirat Carmel 39101, Israel
                            (Hereinafter "ATTUNITY")

                                                               OF THE FIRST PART
                                                               -----------------
                                       And

                                   Arie Gonen
                               I.D. NO. 00168950/4
                               2 Pinhas Lavon St.
                                  Haifa, Israel
                              (Hereinafter "GONEN")
                                                              OF THE SECOND PART
                                                              ------------------

WHEREAS        GONEN has acted as CEO and Chairman of the Board of ATTUNITY from
               October 1, 1987 until  November 22, 2000 and  has acted as Active
               Chairman  since November 22, 2000   until  September 1,  2002 and
               since  September 1, 2002 has  acted as  Chairman  and Interim CEO
               until the  date hereof; and

WHEREAS        ATTUNITY  wishes  to appoint GONEN as Chairman and CEO  and GONEN
               agrees to serve as  Chairman and  CEO  Attunity  on the terms and
               conditions set forth  herein;

NOW,  THEREFORE,  in condition of the mutual  promises  and  undertaking  of the
parties, it is hereby agreed as follows:

1.   DUTIES AND RESPONSIBILITIES
     ---------------------------

     1.1. Subject to the terms and  conditions of this Agreement (i) GONEN shall
          serve as Chairman of the Board of ATTUNITY,  and (ii) GONEN shall also
          serve as CEO of ATTUNITY.

<PAGE>

     1.2. During the term of GONEN's employment, GONEN shall:

          1.2.1. Devote his full  working  time and best efforts to the business
               and  affairs  of  ATTUNITY  and  the  performance  of his  duties
               hereunder  (this Section 1.2.1 is not  applicable to the Services
               Period as described in section 7 herein); and

          1.2.2. Not engage in or be associated  with,  directly or  indirectly,
               any competitive business, duties or pursuits; and

          1.2.3. Not undertake or accept any other paid or unpaid  employment or
               occupation  or  engage  in or be  associated  with,  directly  or
               indirectly,  any  other  businesses,  duties or  pursuits  to the
               extent such activities will materially  interfere with his duties
               hereunder  (this Section 1.2.1 is not  applicable to the Services
               Period as described in section 7 herein).

     1.3. GONEN  agrees  that  during  a one year  period  ("One  Year  Period")
          starting  January 25, 2004 and ending  January  24,  2005,  GONEN will
          spend at  least  sixty  six  percent  (66%) of his time in the  United
          States.  However,  GONEN will be entitled to spend less than sixty six
          percent (66%) of his time in the United States upon the  occurrence of
          any of the following events:

          1.3.1. GONEN's  employment  is  terminated  by  Attunity  (except  for
               Justifiable Cause).

          1.3.2. GONEN stop serving as CEO at the Company's request.

          1.3.3. GONEN's is  requested by the Board of Directors of ATTUNITY not
               to spend sixty six percent (66%) of his time in the United States
               during the One Year Period.

          1.3.4. Change of Control.

     1.4. For the purposes of this agreement, "Change of Control" shall mean:

          1.4.1. The  approval  by the  stockholders  of ATTUNITY of a merger or
               consolidation of ATTUNITY with any other corporation,  other than
               a merger  or  consolidation  which  would  result  in the  voting
               securities  of ATTUNITY  outstanding  immediately  prior  thereto
               continuing to represent (either

<PAGE>

               by remaining outstanding or by being converted into securities of
               the  surviving  entity)  sixty percent (60%) or more of the total
               voting power  represented by the voting securities of ATTUNITY or
               such surviving entity  outstanding  immediately after such merger
               consolidation; or

          1.4.2. Any "person" (as that term is used in Sections  13(d) and 14(d)
               of the Securities  Exchange Act of 1934, as amended) becoming the
               "beneficial owner" (as defined in Rule 13d-3 under the Securities
               Exchange Act of 1934,  as amended),  directly or  indirectly,  of
               securities  of  ATTUNITY  representing  60% or more of the  total
               voting power  represented by ATTUNITY's then  outstanding  voting
               securities;

2.   TERM AND TERMINATION

     2.1. This Agreement shall commence as of January 1, 2004 and will remain in
          effect until the end of the term of the Services Period (as defined in
          Section 7.2 below),  unless earlier  terminated in accordance with the
          terms and provisions of this Section 2.

     2.2. ATTUNITY  shall have the right to terminate this Agreement at any time
          for  Justifiable  Cause (as  hereunder  defined) as  determined by the
          board of  directors of ATTUNITY,  by giving  GONEN  written  notice of
          termination  for  cause.  In  such  event,   this  Agreement  and  the
          employment  relationship shall be deemed  effectively  terminated upon
          the time of delivery of such notice.

          The term "Justifiable  Cause" shall mean (a) a serious breach of trust
          including but not limited to theft, embezzlement,  breach of fiduciary
          duty,  prohibited  disclosure  to  unauthorized  person or entities of
          confidential or proprietary information of or relating to ATTUNITY and
          the engaging by GONEN in any prohibited businesses  competitive to the
          business of ATTUNITY and its  subsidiaries,  affiliates  or associated
          companies,  or (b) any willful  failure to perform  competently any of
          GONEN's  fundamental  functions  or duties  hereunder  or other  cause
          justifying termination or dismissal under applicable law.

     2.3. During the period  following the  Termination  of Employment  Date (as
          defined in Section 7.1 below), GONEN shall cooperate with ATTUNITY and
          use his best

<PAGE>

          efforts to assist the integration into ATTUNITY's  organization of the
          person or persons who will assume GONEN's responsibilities.

     3.   COMPENSATION

          3.1. Commencing   January  1,  2004  and  until  the   Termination  of
               Employment  Date (as defined in Section 7 below),  ATTUNITY shall
               pay  GONEN as  compensation  a  monthly  gross  salary  of ninety
               thousand  (90,000) New Israel Shekels  ("NIS")  payable until the
               9th of the following month (the "Gross Salary"). The Gross Salary
               payable each month shall be linked to the Israeli  Consumer Price
               Index published by the Israeli Central Statistic Bureau. The base
               index will be the index of December 2003. The Gross Salary can be
               only  increased  as a result of changes in the  Israeli  Consumer
               Price Index. Such  compensation  shall be comprehensive and all -
               inclusive  in that it shall be deemed  to  include  all  overtime
               payments according to the terms of the Working Hours and Rest Law
               5711 - 1951 or any  other  similar  law or  provision  which  may
               apply.

          3.2. GONEN  shall be  entitled  to the use of an  automobile  owned by
               ATTUNITY  ("Company  Car"),  the price of which  will not  exceed
               seventy  five  thousand  ($75,000)  US  Dollars.  ATTUNITY  shall
               reimburse  GONEN for all expenses  relating to the use and upkeep
               of such  automobile.  ATTUNITY  will  replace such Company Car at
               least every  forty-eight  (48) months.  Upon  termination of this
               Agreement for any reason,  GONEN will have the option to purchase
               such   automobile   at  its  book  value  at  the  time  of  such
               termination.  GONEN will keep his  Company Car for six (6) months
               commencing  from the Termination of Employment Date as set for in
               Section 7 herein.

          3.3. GONEN  shall  be  entitled  to full  reimbursement  for his  home
               telephone expenses, including calls made abroad.

          3.4. GONEN  shall  be   entitled   to  a  refund  for   all-reasonable
               entertainment and living expenses both in Israel and abroad, upon
               the  furnishing  of  receipts,  relating to his  employment  with
               ATTUNITY.

          3.5. ATTUNITY and GONEN shall obtain and maintain  Managers  Insurance
               (Bituach  Menahalim)  in the  customary  form  for the  exclusive
               benefit of GONEN. ATTUNITY shall pay an amount equal to 13.33% of
               each monthly Gross Salary payment towards the premiums payable in
               respect of such insurance. GONEN shall pay, by deduction from

<PAGE>

               salary, 5% of each monthly Gross Salary and ATTUNITY shall pay an
               additional  amount equal to 2.5% of each monthly Gross Salary for
               insurance  against  disability.  It is hereby agreed that GONEN's
               benefits under the foregoing insurance shall come in lieu of, and
               as full and final  substitution  for severance pay to which GONEN
               may otherwise be entitled under applicable law.

               When GONEN's  employment  is  terminated  for  whatsoever  reason
               (except  for  Justifiable  Cause)  GONEN  will be  entitled  to a
               severance  payment that is calculated at two times his last Gross
               Salary (as described in Section 3.1)  multiplied by the number of
               years since October 1, 1987,  less the amount  accumulated in the
               severance  component of the Manager Insurance specified above and
               GONEN's Managers Insurance will transferred to GONEN.

          3.6. GONEN shall be entitled to "Keren  Hishtalmut"  as customary  for
               all ATTUNITY employees.

          3.7. GONEN shall be  entitled  to paid annual  vacation of twenty five
               (25)  working  days,  based on five (5) working  days week,  with
               respect  to and  during  each  twelve  (12)  month  period of his
               employment hereunder.  Such vacation, in respect to any year, may
               be  carried  forward.  GONEN  will be  entitled  to be  paid  for
               unutilized accrued vacation on a yearly basis. However, Gonen has
               waived his accrued vacation until December 31, 2002.

          3.8. In the event that GONEN  shall be  required  by ATTUNITY to spend
               time abroad, he shall be entitled to a special grant equal to the
               amount of days he has spent outside Israel  multiplied by a daily
               rate of one  hundred  and  thirty  four  US  Dollars  ($134),  in
               addition to the reimbursement of his expenses as specified in 3.4
               above.

          3.9. GONEN shall be entitled  to a bonus  according  to the Bonus Plan
               attached hereto as Schedule 1. In addition,  commencing 2002, the
               Board  of  Directors   will  be  entitled  to  award  GONEN  with
               additional  bonuses,  which shall not exceed One Hundred Thousand
               US Dollars ($100,000) per calendar year.

          3.10.Subject to GONEN's  fulfillment of his obligations  under Section
               1.3 herein, GONEN has been granted six hundred thousand (600,000)
               stock options to purchase Ordinary Shares of ATTUNITY pursuant to
               ATTUNITY's  2003  Employee  Stock Option Plan at a price of $1.92
               per share to be vested only upon a Change of Control.

<PAGE>

               Those options are exercisable upon a Change of Control as defined
               above.

          3.11.GONEN  agrees  and  accepts   that  in  January   2002   ATTUNITY
               implemented a 20%  temporary  salary  reduction  plan for all its
               employees and as long as this reduction plan for all employees is
               not changed  Gonen's  Gross  Salary will be reduced by 20%.  This
               reduction  will not  apply to  section  3.5  regarding  which the
               salary mentioned in section 3.1 shall prevail.

4.   PROPRIETARY INFORMATION

     4.1. GONEN  acknowledges  and  agrees  that  ATTUNITY  possesses  and  will
          continue  to  possess  and  acquire  information,  trade  secrets  and
          technology  that has been created,  discovered  or  developed,  or has
          otherwise  become known to ATTUNITY in the field of computer  software
          and services, including without limitation, information and technology
          that has been  assigned  or  otherwise  conveyed  to  ATTUNITY,  which
          information has commercial  value in the business in which ATTUNITY is
          engaged.  Such  information,  whether  documentary,  written  oral  or
          computer  generated,  shall  be  deemed  to  be  and  referred  to  as
          "Proprietary Information",  which includes but is not limited to trade
          marks,  trade  secrets,  copyrights,  processes,  formulas,  data  and
          know-how, improvements,  inventions,  techniques, products, forecasts,
          third party products and know-how and customer lists.

     4.2. Proprietary  Information  shall  be  deemed  to  include  any  and all
          proprietary  information  disclosed  by or on behalf of  ATTUNITY  and
          irrespective of form but excluding  information  that (a) was known to
          GONEN prior to his  association  with ATTUNITY and can be so proven by
          GONEN;  (b) shall have become a part of the public knowledge except as
          a result of breach of this  Agreement  by GONEN;  (c) shall  have been
          received  by GONEN from a third  party  having no  obligation  towards
          ATTUNITY;  (d) reflects  general skills and  experience  gained during
          GONEN's employment by ATTUNITY;  or (e) reflects  information and data
          generally  known  within the  industries  or trades in which  ATTUNITY
          competes.

     4.3. GONEN agrees and declares that all  Proprietary  Information,  patents
          and other rights in connection therewith shall be the sole property of
          ATTUNITY and it's assigns. At all times, both during his employment by
          ATTUNITY and after its termination, GONEN will not use or disclose any
          Proprietary  Information  or  anything  relating  thereto  without the
          written consent

<PAGE>

          of  ATTUNITY  except as may be  necessary  in the  ordinary  course of
          performing his duties hereunder.

     4.4. Should,  for any  reason,  any one or more of the terms  contained  in
          Sub-Paragraphs  4.1.  4.2.  And  4.3 of this  Section  4 be held to be
          excessively  broad with regard to time,  geographic scope or activity,
          that term shall be  construed  in a manner to enable it to be enforced
          to the extant compatible with applicable law.

     4.5. GONEN's  undertakings  in this  Paragraph 4 shall remain in full force
          and effect for two (2) years after termination of this Agreement.

5.   NON-COMPETITION

     GONEN  agrees  and  undertakes  that he will not,  during  the term of this
     Agreement  (including  the  Service  Period)  and for a period  of one year
     thereafter:

     5.1. Directly or  indirectly,  as owner,  partner,  joint  venturer,  stock
          holder,  employee,   broker,  agent,  principal,   trustee,  corporate
          officer,  director,  licensor,  licensee  or any  capacity  whatsoever
          engage in, become  financially  interested in, be employed by, or have
          any  connection  with in Israel or any other  country any  business or
          venture  worldwide that is engaged in any activities  involving either
          (a) products or services  similar to the actual products then produced
          by ATTUNITY or its  subsidiaries  or  affiliates,  or (b)  information
          processes,   technology   or  equipment  in  which   ATTUNITY  or  its
          subsidiaries or affiliates then has a proprietary interest;  provided,
          however that GONEN may own any securities of any corporation  which is
          engaged in such business and is and is publicly-owned and trade but in
          any  amount  not to  exceed at any one time ten  percent  (10%) of any
          class of stock or  securities  of such  company,  so long as he has no
          active role in the publicly-owned and traded company as traded company
          as director, employee, consultant or otherwise.

     5.2. Employ (other that through  ATTUNITY or its  subsidiaries)  any person
          employed by ATTUNITY  during the  previous  twelve (12) months for any
          purpose or in any place in any  business in which he is deemed to be a
          control  person as defined  under any  Israeli or U.S.  securities  or
          banking laws or regulations.

     5.3. Should,  for any  reason,  any one or more of the terms  contained  in
          Sub-Paragraphs 5.1 and 5.2 of this

<PAGE>

          Section  5 be  held to be  excessively  broad  with  regard  to  time,
          geographic scope or activity, that term shall be construed in a manner
          to enable it to be enforced to the extent  compatible  with applicable
          law.

6.   NO RESTRICTION ON EMPLOYMENT

     GONENrepresents  and  warrants  that on the  date  hereof  he is free to be
     employed by ATTUNITY  upon the terms  contained in this  Agreement and that
     there are no  employment  contracts,  consulting  contracts or  restrictive
     covenants preventing full performance of his duties hereunder.

7.   TERMINATION OF GONEN's EMPLOYMENT AND THE SERVICES PERIOD

     7.1. ATTUNITY  has the  right  to  change  GONEN's  position  as CEO  while
          continuing  GONEN's  employment  with  ATTUNITY,  and such  change  of
          position shall not  constitute  termination of employment for purposes
          of this Section 7 of this Agreement or for any other purpose. ATTUNITY
          shall give GONEN at least  thirty (30) days notice of the  termination
          of his  employment  with  ATTUNITY.  If GONEN wishes to terminate  his
          employment with Attunity,  he shall give ATTUNITY at least thirty (30)
          days written  notice.  (collectively  the  "Termination  of Employment
          Date")

     7.2. After the Termination of Employment  Date, GONEN shall not be entitled
          to the Gross  Salary  and the other  benefits  specified  in Section 3
          above  (except as expressly  specified in Section 3.2 and according to
          Sections  3.9 and  3.10) and the  following  provisions  will  instead
          apply:

          7.2.1. For a period  of  thirty  six  (36)  months  commencing  on the
               Termination  of Employment  Date (the "Services  Period"),  GONEN
               undertakes  to provide up to fifty four (54) hours of  consulting
               services  per month to  ATTUNITY  and not more than One  thousand
               nine hundred forty four (1,944) hours on an  accumulative  basis.
               The Board of ATTUNITY will exclusively  determine  GONEN's duties
               and title during the Services  Period.  GONEN will be entitled to
               all the  payments  under this  Section 7.2 herein  regardless  of
               whether ATTUNITY utilizes GONEN's services.

               GONEN  recognizes  that from time to time the Board might require
               from GONEN to provide more

<PAGE>

               than fifty four (54) hours per month.  In such events  GONEN will
               make his best  effort to  comply  with  such  requests,  however,
               GONEN's accumulative commitment will not exceed one thousand nine
               hundred forty four (1,944) hours for the Services Period.

          7.2.2. In the event that GONEN will be  required by ATTUNITY to travel
               abroad, a full day will be calculated at eight (8) hours and will
               include  GONEN's  flying time.  In such an event,  GONEN shall be
               entitled to a payment  that is equal to the amount of days he has
               spent  outside  Israel  multiplied by a daily rate of one hundred
               thirty four US Dollars ($134),  in addition to the  reimbursement
               of his reasonable expenses, in accordance with ATTUNITY'S expense
               reimbursement policy.

          7.2.3. In  consideration  for  GONEN's  availability  to  provide  the
               Consulting  Services during the Services  Period,  ATTUNITY shall
               pay GONEN thirty six (36) monthly  payments of thirteen  thousand
               five hundred US Dollars ($13,500) plus VAT (the  "Payments"),  to
               be paid by the 25th of each month.  GONEN will  furnish  ATTUNITY
               with an invoice for each month by the 30th of the month. Payments
               will   be  made  in  NIS  in   accordance   with  a  last   known
               representative exchange rate published by the Bank of Israel.

               These  monthly  payments  will  not be  changed  as  long  as the
               cumulative  commitment specified in section 7.2.1 will not exceed
               one  thousand  nine  hundred  forty  four  (1,944)  hours for the
               Services Period.

     7.3. In the event that  ATTUNITY  wishes to  terminate  GONEN's  employment
          agreement  with ATTUNITY due to the failure of ATTUNITY to achieve its
          financial  milestones  agreed  to from  time to time by GONEN  and the
          Board of Directors of ATTUNITY,  in writing,  ATTUNITY  shall have the
          right to pay GONEN a one-time, upfront lump-sum payment of two hundred
          and fifty thousand US Dollars  ($250,000) instead of the payments that
          GONEN is entitled to receive during the Services  Period  described in
          sections  7.2.1,  7.2.2,  and 7.21.3 and GONEN will not be required to
          provide the related services.

     7.4. The parties  acknowledge that during the Services  Period,  there will
          not be any employer - employee

<PAGE>

          relationship between ATTUNITY and GONEN and GONEN will be acting as an
          independent contractor.

8.   GENERAL PROVISIONS

     8.1. This  Agreement  shall not be amended,  modified or varied by any oral
          agreement or representation or otherwise than by a written  instrument
          executed by both parties or by their duly authorized representative.

     8.2. No failure,  delay or  forbearance  of either party in exercising  any
          power or right  hereunder  shall in any way restrict or diminish  such
          party's rights and powers under this Agreement, or operate as a waiver
          of any of the terms or conditions hereof.

     8.3. If any term or provision of this Agreement shall be declared  invalid,
          illegal,  or  unenforceable,  to the extent that a court shall deem it
          reasonable  to  enforce  such  term or  provision  and if such term or
          provision shall be unreasonable to enforce to any extent, such term or
          provision  shall be severed  and all  remaining  terms and  provisions
          shall be unaffected and shall continue in full force and effect.

     8.4. The terms and  conditions  of this  Agreement  supersede  those of all
          previous agreements and arrangements, either written or oral, relating
          to the subject  hereof,  including the  Employment  Agreement  between
          ATTUNITY and GONEN dated  January 1, 1996 and  including the Agreement
          dated September 1, 2002.

     8.5. This  Agreement  is  personal  to GONEN and GONEN  shall not assign or
          delegate his rights or duties to a third  party,  whether by contract,
          will or operation of law,  without  ATTUNITY's  prior written consent,
          except moneys and compensation rights that may be passed to his heirs.

     8.6. This Agreement shall inure to the benefit of ATTUNITY's successors and
          assigns.

     8.7. Each  notice  and/or  demand  given  by one  party  pursuant  to  this
          Agreement  shall be given in writing  and shall be sent by  registered
          mail to the other  party at the  address  appearing  in the caption of
          this  Agreement or by facsimile and such notice and/or demand shall be
          deemed given at the  expiration of twelve (12) hours after dispatch by
          facsimile,  three (3) days from the date of mailing by registered mail
          or immediately if

<PAGE>

          delivered by hand.  Such address  shall be effective  unless notice of
          change in address is provided by registered mail to the other party.

     8.8. Any dispute  arising out of or in connection with this Agreement will,
          in the  failure of the  parties  to reach an  amicable  agreement,  be
          finally  settled by a single  arbitrator  appointed in accordance with
          the  agreement  of the  parties.  In the absence of  agreement  within
          twenty  one (21) days from the  written  request  of one party for the
          appointment  of  an  arbitrator,  the  chairman  of  the  Israeli  Bar
          Association shall appoint an arbitrator.

          The  arbitrator   shall  be  a  lawyer   knowledgeable   in  the  laws
          appertaining to computers and software.  The arbitrator shall be bound
          in his  deliberations  by the substantive  laws of the State of Israel
          and shall provide the parties with written reasons for his decision.

     8.9  This  Agreement  is subject to the  required  corporate  approvals  of
          Attunity.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year first above written.

Attunity Ltd.                                                    Arie Gonen

------------------------------------                             -------------

<PAGE>

                             SCHEDULE 1 - BONUS PLAN

GONEN will receive a bonus according to the following:

1.   Commencing  January 1, 2004 and until December 31, 2007,  ATTUNITY will pay
     GONEN nine percent (9%) of all licenses and maintenance  revenues  received
     by ATTUNITY from International Distributors, which the Board assigned GONEN
     to appoint (including the International  Distributors were appointed during
     2002).  This bonus will be paid  within  sixty (60) days of the  receipt of
     payments from the Internal  Distributors.  However,  this yearly bonus will
     not  exceed  the lower of (i) five  percent  (5%) of the  yearly net profit
     excluding  impairment of intangible Assets of ATTUNITY and (ii) one hundred
     thousand US Dollars ($100,000) per year.

2.   GONEN will also  receive an  additional  bonus that is equal to six percent
     (6%) of revenues received from Oracle (Transparent  Gateway) in 2004. These
     bonuses will be paid within  fourteen  (14) days of the receipt of payments
     from Oracle.

3.   In the event that GONEN will be  assigned  by the Board to raise  funds for
     ATTUNITY  in any form  including  equity  and  convertible  debentures  and
     exercise of Warrants.  GONEN will be entitled to three-year warrants at the
     closing  price  of fund  raising  deal of up to seven  percent  (7%) of the
     amount of shares  that were  issued  in the fund  raising  deal,  the exact
     percentage to be determined by the Board of ATTUNITY. To remove doubt, this
     provision will only apply to investors introduced to ATTUNITY by GONEN.

4.   In the event that ATTUNITY  will be acquired in a merger or an  acquisition
     transaction,  GONEN will be entitled  to a fee that is up to seven  percent
     (7%) of the total value of the  consideration  paid for  ATTUNITY in such a
     transaction,  the  exact  percentage  to be  determined  by  the  Board  of
     ATTUNITY.  However,  the percentage will be no less than three percent (3%)
     in the  event  that the  closing  of the  acquisition  occurs  on or before
     December  31,  2004;  two percent  (2%) if the  closing of the  acquisition
     transaction  occurs at any time  between  January 1, 2005 and  December 31,
     2005 and one  percent  (1%) if the closing of the  acquisition  transaction
     occurs  at any  time  between  January  1,  2006  and  December  31,  2007.
     Thereafter,  GONEN shall not be entitled to any fee in  connection  with or
     relating to an acquisition transaction.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]