Document:

Exhibit 10.1

                            SHARE PURCHASE AGREEMENT

This Share Purchase Agreement (the "Agreement") is effective May 6, 2010,

BETWEEN:     WINCHESTER INTERNATIONAL RESORTS INC. (the "Purchaser"), a
             corporation existing under the laws of the United States of America
             registered in the state of Nevada, with its physical address
             located at:

             7014 Apache Drive
             Olive Branch, MS 38654

AND:         DAVID AND VICKIE CHUCHMUCH (the "Vendor"), individuals residing and
             existing under the laws of Alberta of Canada, with their head
             office located at:

             80010 - 475 AVE E.
             High River AB, T1V-1M2

WHEREAS the Vendor, through their Company; is in the Trailer Dealership
business;

With Veryl Norquay, acting as a representative for Winchester International
Resorts Inc.

AND WHEREAS the Vendor desires to sell 51% of Company shares, and the Purchaser
desires to purchase 51% of Company shares, and expertise of its management as a
going concern including, but not limited to, the assets and liabilities upon and
subject to the terms and conditions hereinafter set forth;

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the premises and
the covenants and agreements herein contained the parties hereto agree as
follows:

1. INTERPRETATION

1.1 DEFINITIONS

In this Agreement, unless something in the subject matter or context is
inconsistent therewith:

"Company" means Factory Outlet Trailers Inc.

"Accounting Records" means all books of account, accounting records and other
financial data and information of the Vendor relating to the Business for the
current fiscal year and the seven preceding fiscal years, including, without
limitation, all records, data or information which are material to the operation
of the Business, as well as all production, inventory, sales and customer
records in respect of such fiscal years. "Accounting Records" shall expressly
exclude any records relating to Taxes of the Vendor;

"Agreement" means this Share Purchase Agreement and all attached schedules as
supplemented, amended, restated or replaced from time to time;

"Assumed Liabilities" means the liabilities, debts and obligations of the
Company pertaining to the Business and the Purchased Shares which are
outstanding at time of closing.
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"Assumed Contracts" means the contracts (other than the Leases, the Equipment
Leases and the Excluded Warehouse Lease) pertaining to the Business and the
assets which are being assumed by the Purchaser at time of closing;

"Applicable Canadian Law means any domestic or foreign statute, Canada,
ordinance, rule, regulation, restriction or regulatory policy having the force
of Canada, by-law (zoning or otherwise), or Order that applies to the Company,
any of its predecessor corporations, the Business, the way the Business is
carried on or to any of the Purchased Shares;

"Business" means the business currently carried on by the Company of the Vendor
including, without limitation, the operation of retail establishments for the
sale of Trailer retail customers;

"Business Day" means a day other than a Saturday, Sunday or statutory holiday
Alberta, Canada;

"Closing" means the completion of the sale and all funds paid in full to, and
purchased by, the Purchaser of the Purchased Shares and the completion of all
other transactions contemplated by this Agreement which are to occur
contemporaneously with the purchase and sale of the Purchased Shares;

"Closing Date" means June 15, 2011 or such date when purchaser makes full and
final payment, or other Business Day as may be agreed to in writing between the
Vendor and the Purchaser as the date that the Closing shall take place;

"Closing Document" means any document, agreement, assignment or undertaking
delivered in relation to the Closing as provided in this Agreement except for
the Non Competition Agreement;

"Contractual Rights" means the full benefit of all unfilled customer purchase
orders, sales contracts and engagements relating to the Business, to which the
Vendor is entitled at the Closing Date, whether written or oral, including any
deposits made in connection therewith, and all forward commitments of the
Company for supplies or merchandise entered into in the ordinary course for use
in the Business, excluding however, any and all forward commitments for supplies
or merchandise which are at prices materially in excess of current market prices
or are not terminable without penalty on 60 days notice or less or are in excess
of the normal business requirements of the Business for the period ending 60
days after the Closing Date in respect of minilab supplies and consumables or in
excess of the normal business requirements of the Business for the period ending
60 days after the Closing Date in respect of merchandise for resale.

"Documents" means all title documents, advertising, promotional and marketing
materials, files, correspondence, technical information, agreements and other
documents in the possession or control of the Company relating to the Business
or the Purchased Shares;

"Employees" means those individuals in place at time of closing who are employed
by the Company in the Business at the Time of Closing on a full-time or
part-time basis (including any such individuals who are absent from work due to
short-term disability, pregnancy, maternity or parental leave, sick leave,
vacation, or any other reasonable cause);

"Encumbrance" means any encumbrance of any kind whatever and includes, without
limitation, a security interest, mortgage, lien, hypothec, pledge,
hypothecation, assignment, charge, trust or deemed trust (whether contractual,
statutory or otherwise arising), any easement, right of way (registered or
unregistered), restriction, encroachment or any other right or claim of others
of any kind whatever affecting the Purchased Shares, any covenant or other
agreement, restriction or limitation on the use or transfer of the Purchased
Shares;

"Equipment" means all fixed assets and tangible movable or personal property
owned by the Company and used in connection with the Business (other than an
Excluded Asset) and, without limiting the generality of the foregoing, include
all machines, machinery, trucks and other mobile equipment, fixtures, tools,
furniture, furnishings, vehicles, material handling equipment, typewriters,

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computers, photocopiers, office equipment, implements, tools and spare parts
owned by the Company and used in the Business (other than an Excluded Asset;

"Equipment Leases" means the lease of movable or personal property;

"Excluded Assets" means:

     a)   All cash, bank balances, monies securities in possession of personal
          bank accounts, trusts, investments and other depositories, term
          deposits and similar cash property of, owned or held by or for the
          account of the Vendor at the Closing Date;
     b)   the corporate and Tax records of the Vendor;
     c)   the interest of the Vendor in any Benefit Plans or any insurance
          policies covering the Purchased Shares or protecting the Business;
     d)   The following are personal assets of Vendor, which have been in
          personal possession of vendor and registered and insured under the
          corporation.
          a.   2006 Mercedes Benz CLK 320
          b.   2006 Lincoln Navigator
          c.   Chapparell Boat
          d.   Polaris Snow Mobile
          e.   Polaris Quad ATV
          f.   2007 Travel Supreme Coach
          g.   2010 EL 8518TTA3, Cargo Trailer
          h.   2006 Ford Dually Truck

"Excluded Liabilities" means all the liabilities, debts or obligations of the
Vendor, other than the Assumed Liabilities and the Post Closing Liabilities,
whether present or future, whether pertaining to the Business, the Purchased
Shares or otherwise, including, without limiting the generality of the
foregoing:

     i)   liabilities under any services, management or other contract
          (including any Non-Assignable Lease) entered into by the Vendor but
          excluding those liabilities relating to the Assumed Contracts, the
          Contractual Rights, Leases (other than the Non-Assignable Leases) and
          the Equipment Leases;
     ii)  liabilities to the Employees up to the Time of Closing for wages,
          accrued bonuses, earned vacations, vacation pay (accrued or
          otherwise), sick leave, and for notice of termination or pay in lieu
          of notice or severance pay (in each case, if the Employee is not
          offered employment ;
     iii)liabilities of the Vendor or related to the Purchased Shares, arising
          prior to the Closing Date, for any federal, provincial, local or
          foreign taxes, assessments, rates, charges or levies (including
          interest and penalties);
     iv)  Liabilities to the Vendor or any Affiliate or Associate of the
          Company, other than the Assumed Intracompany Payable;

"Execution Date" means the date on which both Vendor and Purchaser have executed
by the signing of this Agreement;

"Indemnified Party" means a Party to the Agreement who is the beneficiary under
the Agreement of an indemnity from another Party to the Agreement;

"Indemnifying Party" means a Party to the Agreement who has agreed herein to
indemnify another Party to the Agreement;

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"Intellectual Property Rights" means:

     a)   all intellectual property rights of or pertaining exclusively to the
          Business including, without limitation,

          i)   all trade marks, trade mark registrations, trade mark
               applications, rights under registered user applications, trade
               names and other trade mark rights;
          ii)  All copyrights and industrial designs and registrations thereof
               and applications therefore;
          iii) all inventions, patents, patent applications and patent rights
               (including any patents issuing on such applications or rights);
          iv)  All licenses and sublicenses.
          v)   all trade secrets and confidential information;
          vi)  all computer software and rights related thereto; and
          vii) all renewals, modifications and extensions of any of items (i)
               through (vi),

"Interim Period" means the period from the Execution Date to the Time of
Closing;

"Inventories" means all inventories of goods of every kind and nature and
wheresoever situate owned by the Vendor on the Closing Date relating to the
Business including without limitation, all finished goods.

"Leased Premises," means all premises leased by the Company under the Leases and
all fixtures and improvements thereon;

"Leases" means the leases or agreements in the nature of a lease of real
property to which the Vendor is a party, whether as lessor or lessee, which
relate to the Business, including the existing for retail location.

"Non-Competition Agreement" means the non-competition agreement to be entered
into between the Vendor and the Purchaser at the Time of Closing. Vendor agrees
not to own, manage, invest or otherwise affiliate himself with similar business
(other than together in joint efforts with Purchaser) for a term set forth of 5
years.

"Order" means any final and enforceable order or any judgment, injunction,
decree, award or writ of any court, tribunal, arbitrator or Governmental Agency;

"Parties" means the Purchaser and the Vendor collectively, and "Party" means any
one of them;

"Person" shall be broadly interpreted and includes, without limitation, an
individual, body corporate, partnership, joint venture, trust, association,
unincorporated organization, the Crown, any Governmental Agency or any other
entity recognized by Canada;

"Post Closing Liabilities" means

     i)   the liabilities of the Business which arise after the Closing Date and
          are incurred by the Purchaser as a consequence of the operation of the
          Business by the Purchaser and

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     ii)  the liabilities of the Business which arise after the Closing Date and
          are exhaustively detailed hereafter:

     a)   all liabilities and obligations of the Vendor under each of the
          Assumed Contracts and the Equipment Leases;
     b)   All liabilities and obligations of the Company under each of the
          Leases assigned to and assumed by the Purchaser hereunder;
     c)   All liabilities and obligations of the Company in respect of the
          Contractual Rights;
     d)   All liabilities and obligations of the Company in respect of
          processing, including any reserves or allowances therefore;
     e)   All liabilities and obligations of the Company in respect of
          warranties or repair contracts, including any reserves or allowances
          therefore;

The Post Closing Liabilities exclude any and all liabilities, which are
expressly described herein as being Excluded Liabilities.

"Provincial Legislation" means the Retail Sales Canada Revenue, the Workers'
Canada 2011, the Workers' Compensation Alberta Canada, the GST Canada the Retail
Sales Tax

"Purchase Price" means the purchase price to be paid by the Purchaser to the
Vendor for the Shares;

"Assets" means all of the assets, property and undertaking, other than the
Excluded Assets, owned and used by the Company or held by it for use in, or in
respect of the operation of, the Business, including the following:

     a)   All right, title and interest of the Company in, to and under the
          Leases and the Leased Premises (other than the Non-Assignable Leases
          and the relevant Leased Premises), all tenant allowances payable to
          the Company after the Closing Date, all leasehold improvements
          pertaining to the Leases and the Leased Premises, all fixtures located
          in, on or about the Leased Premises and all appurtenances thereto;
     b)   the Accounts Receivable;
     c)   the Inventories;
     d)   the Contractual Rights to the extent they are assignable;
     e)   to the extent they are assignable, all right, title and interest of
          the Company in, to and under, and the full benefit of, the Assumed
          Contracts and the Equipment Leases and all options, including options
          to purchase, thereunder;
     f)   the Equipment;
     g)   All right, title and interest of the Company in and to the
          Intellectual Property Rights;
     h)   The goodwill of the Business, including the exclusive right of the
          Purchaser to represent itself as carrying on the Business in
          succession to the Company and all right, title and interest of the
          Company in, to and in respect of the trade name of the Company and
          variations thereof used in association with the Business (which trade
          name and variations thereof shall not be amended without the prior
          written consent of the Vendor, acting reasonably) and all records and
          information relating to the suppliers, customers and Hired Employees

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          of the Business and all pertinent files, catalogues and promotional
          materials relating to the Business and the Purchased Shares;
     i)   To the extent the same are transferable, all deposits and prepaid
          expenses with any public utility or any municipal, governmental or
          other public authority relating to the Business or other deposits and
          prepaid expenses relating to the Business;
     j)   to the extent same are transferrable, the Warranty Rights; the
          Transferable Licenses;
     k)   All other rights, properties and assets (other than any Excluded
          Assets) owned by the Company and used or useful in the Business, of
          whatever nature or kind and wherever situated;

"Taxes" means all federal, provincial, municipal, territorial, foreign or other
taxes, imposts, rates, levies, assessments and government fees, license fees,
charges or dues lawfully levied, assessed or imposed in respect of the Business,
including, without limitation, all income, capital gains, sales, excise, use,
property, capital, goods and services, business transfer and value added taxes
and custom and import duties and includes all interest, fines and penalties with
respect thereto;

"Time of Closing" means Alberta Canada time, 12:00PM on the Closing Date;

"Transferable Licenses" means all rights and interest in and to all licenses,
permits and approvals issued to the Vendor by any Governmental Agency which are
transferable, with or without the consent of such Governmental Agency; and

"Warranty Rights" means the full benefit of all unexpired warranties, warranty
rights, guarantees, indemnities, undertakings and similar covenants (implied,
express or otherwise) against manufacturers or sellers which apply to any of the
Purchased Shares or to any products or services of the Business acquired by the
Company for resale and previously sold by the Company to third parties and all
security received by the Company therefore.

1.2 CURRENCY

All statements of or references to amounts in this Agreement are to lawful money
of Canada unless otherwise stated.

1.3 TENDER

Any tender of documents or money hereunder may be made upon the Vendor or their
respective counsel and money shall be tendered by official bank draft drawn upon
a Canadian chartered bank or by negotiable check payable in Canadian funds and
certified by a Canadian chartered bank.

1.4 PERFORMANCE ON HOLIDAYS

If any action is required to be taken pursuant to this Agreement on or by a
specified date which is not a Business Day, then such action shall be valid if
taken on or by the next succeeding Business Day.

1.5 CALCULATION OF TIME

In this Agreement, a period of days shall be deemed to begin on the first day
after the event which began the period and to end 12:00PM Alberta, Canada time
on the last day of the period. If, however, the last day of the period does not
fall on a Business Day, the period shall terminate at 12:00 PM (Alberta, Canada
time) on the next Business Day.

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1.6 ORDINARY COURSE

For the purposes of this Agreement a transaction or activity shall be considered
to be in the ordinary or normal course of business if it constitutes either (a)
an ordinary day-to-day or regular business activity of the Company pertaining to
the Business or (b) a business activity undertaken with the consent of the
Purchaser in contemplation of the Closing or which is an obligation of the
Company under this Agreement, conducted in a commercially reasonable and
business-like manner and, in the case of activities described in clause (a),
consistent with past practices of the Company in respect of the Business.

2. PURCHASE AND SALE

2.1 PURCHASE AND SALE AND PURCHASE PRICE

2.1.1 TERM AND CONDITIONS

Subject to the terms and conditions hereof, the Vendor agrees to sell, assign
and transfer to the Purchaser, the Purchased Shares as a going concern and the
Purchaser agrees to purchase them from the Vendor on the Closing Date. Purchase
price for the Purchased Shares (the "Purchase Price") shall be the amount, which
is equal to:

     a.   $4,400,000.00, to include 51% shares of the Company
     b)   The Final Net Worth of the Business at time of closing.

2.1.2 THE PURCHASE PRICE SHALL BE PAID AND SATISFIED AS FOLLOWS:

     a)   as to an amount (the "Closing Payment") equal to (i) $4,400,000.00
          plus (ii) to be paid out in the following schedule:

          a.   $50,000.00, Due within 1 week of executed contract
               (NON-REFUNDABLE)
          b.   $50,000.00 Due June 15, 2010 (NON-REFUNDABLE)
          c.   $75,000.00 Due July 15, 2010 (NON-REFUNDABLE)
          d.   $100,000.00 Due August 15, 2010 (NON-REFUNDABLE)
          e.   $125,000.00 Due September 15, 2010 (NON-REFUNDABLE)
          f.   $150,000.00 Due October 15, 2010 (NON-REFUNDABLE)
          g.   $500,000.00 Due November 15, 2010
          h.   $500,000.00 Due December 15, 2010
          i.   $500,000.00 Due January 15, 2011
          j.   $500,000.00 Due February 15, 2011
          k.   $500,000.00 Due March 15, 2011
          l.   $500,000.00 Due April 15, 2011
          a.   $500,000.00 Due May 15, 2011
          b.   $350,000.00 Due June 15, 2011

     b)   Purchaser has right to prepay monies outside of above schedule. In the
          event of early payment in full, closing date will be adjusted
          accordingly. At any time in the event a payment is missed after final
          non-refundable deposit on October 15, 2010; Vendor has option to make
          contract null and void. In the event that Vendor makes contract null
          and void all Refundable deposits are returned to purchaser. Vendor
          agrees to provide Balance sheet upon execution of contract and provide
          comparable financial position to purchaser on June 15, 2011 upon
          closing.
     c)   First "Re-Fundable deposit" of $500,000.00 to be made within 30 days
          of last "Non-Refundable" payment
     d)   Early payment of Non-Refundable deposits will be dealt with
          accordingly; each day of early payment will be given as grace period
          for the next payment;

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          a.   All refundable deposits to be held in "Trust", in interest
               bearing account (Interest is non-refundable and payable to
               Vendor) until such time of closing, or Vendor exercising
               cancelation of contract, held in "Trust" refundable to purchaser.

     e)   Vendor will provide a 10 Day Grace period, in which Vendor will advise
          purchaser to make payment within "Grace Period". If purchaser does not
          satisfy, Vendor has option to make contract null and void.
     f)   Vendor shall execute separate "Share Purchase Agreement" with Jon
          Martinez and Crystal Willows for remaining 49% shares of the Company.

          a.   Vendor to remain on staff with Company until such time that
               "Share Purchase Agreement" purchase price, between vendor and Jon
               Martinez with Crystal Willows is 50% satisfied. Vendor's
               remuneration to be $10,000.00 per month. During such time until
               Vendor's "Share Purchase Agreement" with Jon Martinez and Crystal
               Willows is fully satisfied, vendor shall have full software
               privileges and access to financial information deemed necessary
               by vendor to protect interest.
          b.   Jon Martinez with Crystal Willows will not sell her 49% shares of
               the Company until such time that "Share Purchase Agreement" is
               fully satisfied;

     g)   Vendor shall execute separate agreement for (1) Vendor (2) Winchester
          (3) Jon Martinez and Crystal Willows regarding Arkansas Dealership to
          begin.
     h)   Vendor, purchaser and Jon Martinez with Crystal Willows agree to
          `First Right of Refusal". Any and all potential dealings relating to
          the sale of any party's interest in Company will be subject to `First
          Right of Refusal".

2.2 CLOSING

The sale and purchase of the Purchased Shares shall be completed at the Time of
Closing at the offices of Vendors Attorney.

2.3 ALLOCATION OF PURCHASE PRICE

The Purchase Price shall be allocated among the Purchased Shares as provided in
Schedule of a flat fee purchase.

The Vendor agrees to indemnify and save harmless the Purchaser, and the
Purchaser agrees to indemnify and save harmless the Vendor, in respect of any
liability, loss, cost, expense, additional tax, interest, penalty or legal or
accounting fees paid or incurred by the indemnified party as a result of the
failure of the Vendor or the Purchaser (as the case may be) to perform its
respective obligations pursuant to this Section.

2.4 ACCOUNTS RECEIVABLE

After the Time of Closing, the Purchaser shall assume accounts receivable and
all rights herein.

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2.5 NON-ASSIGNABLE CONTRACTS

Neither this Agreement nor any Closing Document shall constitute an assignment
or an attempted assignment of any Non-Assignable Contract. To the extent
permitted by Applicable Canadian Law; each Non-Assignable Contract shall be held
by the Vendor in trust for the Purchaser and the covenants and obligations
thereunder shall be performed by the Purchaser in the name of the Company and
all benefits and obligations existing thereunder shall be for the account of the
Purchaser.

The Vendor shall take or cause to be taken such action in its name or otherwise
as the Purchaser may reasonably require so as to provide the Purchaser with the
benefits thereof and to effect collection of money to become due and payable
under the Non-Assignable Contracts and the Vendor shall promptly pay over to the
Purchaser all money received by it in respect of all Non-Assignable Contracts.
Upon the Closing, the Vendor authorizes the Purchaser, to the extent permitted
by Applicable Canadian Law and the terms of the Non-Assignable Contracts, at the
Purchaser's expense, to perform all of the Vendor's obligations under the
Non-Assignable Contracts and constitutes the Purchaser's attorney to act in its
name and on its behalf with respect thereto.

After the Closing Date, the Vendor agrees to assign Non-Assignable Contracts to
the Purchaser when such assignment is permitted and as the Purchaser may direct.
The Vendor shall use its commercially reasonable efforts to obtain all consents
required for the assignment of the Non-Assignable Contracts. The Vendor shall
not, however, be obliged to make any payments to any Person or to pay any other
charge or fee (except a payment to a contracting party to cover its expenses
associated with the consent in question) or make additional payments, guarantees
or financial contributions or arrangements (other than as remaining a party to
the Non-Assignable Contracts) or to institute legal or arbitration or other
proceedings to obtain such consents.

3. REPRESENTATIONS AND WARRANTIES

3.1. REPRESENTATIONS AND WARRANTIES OF THE VENDOR

The Vendor represents and warrants to the Purchaser as set out in the following
subsections of this Section and acknowledges that the Purchaser is relying upon
such representations and warranties in entering into this Agreement.

3.1.1 CORPORATE MATTERS

     a)   The Company is a corporation duly incorporated, organized and
          subsisting under the Canadian Law and has sufficient power, authority
          and right to enter into and deliver, and to observe and perform its
          covenants and obligations under this Agreement, the Closing Documents
          to which it is a party and under the Non Competition Agreement. The
          Vendor has taken all corporate action necessary to authorize the
          execution and delivery of, and the observance and performance of its
          covenants and obligations under this Agreement, the Closing Documents
          to which it is a party and under the Non-Competition Agreement.

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     b)   The Vendor has all necessary power and authority to own or lease the
          Purchased Shares and to carry on the Business as at present carried
          on. The Vendor possesses all Licenses material to the conduct of the
          Business. Neither the nature of the Business nor the location or
          character of any of the Purchased Shares requires the Company to be
          registered, licensed or otherwise qualified as an extra-provincial or
          foreign corporation or to be in good standing in any jurisdiction
          other than jurisdictions where it is duly registered, licensed or
          otherwise qualified and in good standing for such purpose.
     c)   This Agreement has been duly executed and delivered by the Vendor, and
          this Agreement constitutes a valid and binding obligation of the
          Vendor enforceable against the Vendor in accordance with its terms.

3.1.2 TITLE TO PURCHASED SHARES

Immediately prior to the Closing the Vendor shall be and, on Closing, the
Purchaser shall become, the beneficial owner of the Purchased Shares, with good
and marketable title thereto, free and clear of any title defects or
Encumbrances other than the Permitted Encumbrances. The Vendor is exclusively
entitled to possess and dispose of the Purchased Shares (subject only to the
necessity for obtaining any necessary consents to transfer in the case of the
Leases, Equipment Leases, Contractual Rights, Warranty Rights, Transferable
Licenses and the Assumed Contracts).

3.1.3 NO OPTIONS

No Person, other than the Purchaser, has any oral or written agreement, option,
or right, or any other right capable of becoming an agreement or option for the
purchase from the Company of the Business or any of the Purchased Shares.

3.1.4 THE FINANCIAL STATEMENTS

The Financial Statements have been prepared from the books and records of the
Company and, in the case of the financial statements for the year ended 2011,
such financial statements served as the basis for the consolidation of the
accounts of the Business with the other accounts of the Company as at such date
as presented in the audited financial statements of the Company as at June 15,
2011, and in accordance with the Statement of Accounting Principles.

THE FINANCIAL STATEMENTS:

     a)   Accurately disclose and present fairly the assets, liabilities
          (whether accrued, absolute, contingent or otherwise) and financial
          condition of the Company in respect of the Business and the results of
          the operations of the Company in respect of the Business, as at the
          dates thereof and for the periods covered thereby except that the
          Financial Statements do not have any notes attached thereto, and do
          not disclose liabilities required by General Accepted Accounting
          Principles to be disclosed in such notes; and
     b)   Reflect all proper accruals (except as noted in the Statement of
          Accounting Principles annexed as attached, as at the dates thereof and
          for the periods covered thereby, of all amounts under employment
          arrangements or the Benefit Plans for employees of the Company in
          respect of the Business (including management fees and employee
          incentives) which, though not payable until a time after the end of
          the relevant period, are attributable to activities undertaken during
          that period.

3.1.5 UNDISCLOSED LIABILITIES

The Company has no liabilities with respect to the Business (whether accrued,
absolute, contingent or otherwise, matured or unmatured) of any kind except:

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     a)   liabilities disclosed or provided for in the Financial Statements;

3.1.6 ABSENCE OF CHANGES

Since May 2000, except as disclosed:

     a)   The Company has conducted the Business in the ordinary course, has not
          incurred any debt, obligation or liability out of the ordinary course
          of business or of an unusual or extraordinary nature and has used its
          commercially reasonable efforts to preserve the Business and the
          Purchased Shares;
     b)   there has not been any change in the condition of the Purchased Shares
          or affairs, operations or condition (financial or otherwise) of the
          Business other than changes in the ordinary course of business, and
          such changes have not, either individually or in the aggregate, been
          materially adverse or have had or may be reasonably expected to have,
          either before or after the Time of Closing, a material adverse effect
          on the Business,
     c)   the Purchased Shares or the condition (financial or otherwise) of the
          Business except that operating losses have been incurred in the
          ordinary course of the Business as reflected on the 2010 financial
          statements of the Business which have been provided to the Purchaser
          and operating losses in the ordinary course of the Business have
          continued to be incurred after May 6, 2010; and
     d)   except for those contemplated by this Agreement, there has not been
          any termination, amendment or revocation of any License or any damage,
          destruction, loss, labor dispute or other event, development or
          condition of any character (whether or not covered by insurance) which
          has had, or could have, a material adverse effect on the Business or
          the Purchased Shares except for the operating losses referred to in
          (b) above or events or developments reflecting the seasonality of the
          Business or political, general economic or general retail industry
          conditions in Canada.

3.1.7 ABSENCE OF UNUSUAL TRANSACTIONS

Except as disclosed, since May 6, 2010, the Company has not with respect to the
Business:

     a)   transferred, assigned, sold or otherwise disposed of any of the
          Purchased Shares or cancelled any debts or claims of material value
          except in the ordinary course of business;
     b)   paid or incurred any material obligation or liability (fixed or
          contingent) other than obligations or liabilities included in the
          Financial Statements and obligations and liabilities incurred since
          the date thereof in the ordinary course of business or disclosed in
          this Agreement;
     c)   Settled any liability, claim, dispute, proceedings, suit or appeal
          pending against it, the Business or against any of the Purchased
          Shares.
     d)   suffered any extraordinary loss, or waived or settled any rights of
          material value, or entered into any commitment or transaction not in
          the ordinary course of business, where such loss, rights, commitment
          or transaction is material in relation to the Business;
     e)   except in the ordinary course of business, increased the compensation
          paid or payable to its existing employees or increased the benefits to
          which such employees are entitled under any Benefit Plan or created
          any new benefit or pension plan for any such employees;
     f)   except for Permitted Encumbrances and Encumbrances discharged at or
          prior to the Closing, created any Encumbrance on the Purchased Shares
          or suffered or permitted any such Encumbrance that has arisen on the
          Purchased Shares since that date to remain;

                                       11
<PAGE>
     g)   changed in any material respect its accounting practices or policies,
          including without limitation, any material change or reduction in any
          reserves or accruals for liabilities below levels consistent with its
          past practices as reflected in the Financial Statements;
     h)   Become aware as of the date hereof (without having made any enquiry)
          of the passing of any Applicable Canadian law that might reasonably be
          expected to have a material adverse effect on the Business, the
          Purchased Shares or the future prospects of the Business;
     i)   Entered into or become bound by any contract, agreement or
          arrangement, written or oral, not in the ordinary course of its
          business and involving or which may result in the payment of money by
          the Company with respect to all such transactions;
     j)   modified, amended or terminated any contract, agreement or arrangement
          to which it is or was a party, or waived or released any right of
          material value which it has or had, other than in the ordinary course
          of its business, other than those contracts to be cancelled on or
          before Closing;
     k)   incurred any debt, liability or obligation for borrowed money, or
          incurred any other debt, liability or obligation except in the
          ordinary course of its business;
     l)   Entered into any agreement (other than the Assumed Intracompany
          Payable) with a Person who does not deal at arm's length (within the
          meaning of the Canada's Income tax law with the Company (other than
          employment agreements with its officers and directors) or paid any
          bonus or consulting or management fees or any similar fees to any such
          Persons;
     m)   Made any capital expenditures in the aggregate; or authorized or
          agreed or otherwise become committed to do any of the foregoing.

3.1.8 TAX MATTERS

     a)   The Company is not liable for any Taxes due and unpaid which might
          result in a lien or Encumbrance affecting any of the Purchased Shares.
     b)   The Company has withheld from each payment made to any of its present
          or former employees, officers and directors, and to all persons who
          are non residents of Canada for the purposes of Canada's Income tax
          Law all amounts required by Canadian Law, and has remitted such
          withheld amounts within the prescribed periods to the appropriate
          Governmental Agency.
     c)   The Company is a registrant for the purposes of the goods and services
          tax provided for under Canada GST and provide its registration number.
     d)   The Company has paid all Taxes due under the Retail Sales Tax (GST) on
          the acquisition of its tangible personal property (as defined in the
          Retail Sales Tax GST Alberta Canada constituting Purchased Shares. The
          foregoing is accurate, mutatis mutandis, with respect to all sales or
          transfer taxes imposed under comparable legislation of other
          provinces.
     e)   The Company has never acquired or had the use of any of the Purchased
          Shares from a Person ("a Related Person") with whom the Company was
          not dealing at arm's length, as determined under Canada's Income Tax
          law. The Vendor shall neither acquire nor dispose of any of the
          Purchased Shares from or to any Related Person prior to the Time of
          Closing.
     f)   The Vendor is not a party to or bound by any agreement with, is not
          indebted to, and no amount is owing to the Vendor by any Person, not
          dealing at arm's length, within the meaning of Canada's Income Tax law
          with the Vendor except for oral contracts of employment with the
          officers of the Company and the Assumed Intracompany Payable.

                                       12
<PAGE>
3.1.9 BOOKS AND RECORDS

The Accounting Records are complete and accurate in all material respects and
the Companies books and records provide for all Taxes (other than income taxes,
capital gains taxes, capital taxes or similar taxes) that have become or may
become due and payable by the Company in respect of the Business on or before
the Time of Closing or are in respect of a period ending prior to the Time of
Closing.

The computer and other systems used in the Business, function properly and
provide information, which is accurate in all material respects as to the normal
transactions of the Business. The Company owns or holds valid licenses for all
software required to carry out its data processing requirements in relation to
the Business. The Documents are complete and accurate in all material respects.

3.1.10 LEASES, MATERIAL CONTRACTS, ETC.

     a)   Except for the Assumed Contracts, the contracts and Contractual Rights
          listed, the Equipment Leases, the Leases and the Contractual Rights,
          the Company is not a party to or bound by any material contract or
          commitment, whether oral or written, which relates to the Business.
          True and correct copies of the Assumed Contracts, the Equipment
          Leases, the Leases [and the Contractual Rights] have been made
          available for inspection by the Purchaser or its agents prior to the
          date hereof.
     b)   With respect to the Leases,

          i)   The lease of property with a physical address of 80010 475th AVE
               SE High River AB, T1V 1M2 and all other required payments under
               each Lease which have become due have been duly paid and the
               covenants, obligations and conditions contained in each Lease
               have been duly observed and performed in all material respects by
               the Company,
          ii)  subject to obtaining any necessary consents from J5 Investments
               to assign the Lease and the fulfillment of any other conditions
               set forth in such Lease to assign the Lease, the Vendor has the
               full right, power and authority to assign each such Lease and its
               interest in the Leased Premises related thereto to the Purchaser;
               and
          iii) Subject to obtaining any necessary consents of J5 Investments to
               assign the Lease and the fulfillment of any other conditions set
               forth in such Lease to assign the Lease, and subject to payment
               of rent and other amounts payable by the Purchaser and
               performance by the Purchaser of the Company covenants contained
               in each Lease upon assignment,
          iv)  The Purchaser may enter into and upon and hold the Leased
               Premises subject to and demised by that Lease for its own use and
               benefit for the residue of the term granted by such Lease and any
               renewals thereof, without interruption by the Vendor or any other
               person claiming through or under the Vendor.

     c)   The Assumed Contracts, Leases, Equipment Leases and Contractual Rights
          are all in good standing and in full force and effect with no
          amendments and are enforceable in accordance with their terms. The
          Vendor has complied with all material terms thereof and has not waived
          any material rights thereunder and no material default or breach
          exists in respect thereof on the part of any of the Company thereto

                                       13
<PAGE>
          and no event has occurred which, after the giving of notice or the
          lapse of time or both, would constitute such a material default or
          breach.
     d)   The Vendor has not permitted any other party to terminate, suspend or
          amend any Assumed Contract, Lease, Equipment Lease and Contractual
          Right. There has been no assignment, subletting or granting of any
          license (or occupation or otherwise) of or in respect of any of the
          Assumed Contracts, Leases, Equipment Leases and Contractual Rights.
     e)   All amounts payable to the Company after the Closing Date under the
          Assumed Contracts, Leases, Equipment Leases and the Contractual Rights
          are still due and owing to the Company without any right of set off.
          There are no quotations, orders or tenders for contracts which remain
          open for acceptance. The Company is not a party to any Assumed
          Contract or Contractual Right, which it does not have the capacity to
          perform, including the necessary personnel, equipment and supplies.

3.1.11 ACCOUNTS RECEIVABLE

     a)   The Vendor has the full right and authority to assign to the Purchaser
          the Accounts Receivable and the security held by the Company, which is
          related to such Accounts Receivable.
     b)   Each Account Receivable and the security related thereto shall be
          valid and subsisting at the Time of Closing.
     c)   The rights of the Vendor in respect of each Account Receivable and
          under the security related thereto will have been enforced by the
          Vendor up to the Time of Closing in accordance with the Companies
          customary business practices and will not have been waived, modified
          or compromised in any manner which will affect the Purchaser's ability
          to benefit from or enforce its rights under an Account Receivable or
          its related security.
     d)   The amounts remaining to be paid under each Account Receivable at the
          Time of Closing will be inherited by the purchaser as part of the flat
          fee purchase.

3.1.12 CONSENTS, APPROVALS, ETC.

Except as set out in the Leases, the Assumed Contracts, the Equipment Leases,
the Contractual Rights and the Transferable Licenses (or the Applicable Canadian
law related to such Transferable Licenses), no consent, approval, License, Order
or authorization, registration, declaration or filing with any Governmental
Agency or other Person is required to be obtained or made by the Vendor in
connection with (a) the Closing, (b) the execution and delivery by the Vendor of
this Agreement, the Closing Documents to which it is a party or the Non
Competition Agreement or (c) the observance and performance by the Vendor of its
obligations under this Agreement, the Closing Documents to which it is a party
and the Non Competition Agreement except pursuant to the Competition Act Canada,
the Bulk Sales Legislation, the Provincial Legislation or as required by the
Applicable Canadian law to perfect the assignment of the Accounts Receivable.
There is no requirement under any Transferable License, Assumed Contract,
Equipment Lease, Lease or Contractual Right to give any notice to, or to obtain
the consent of, any party to such a contract or license in connection with the
Closing except as required by the terms thereof (or the Applicable Canadian law
related to such Transferable Licenses). The Vendor is not aware of any reason
why any of the landlords of the Leased Premises would refuse to give such
consent except by reason of a potential breach of the radius clauses which may
be contained in such Leases or in a lease of one of Purchaser's retail outlets.

3.1.13 ABSENCE OF GUARANTEES

In respect of the Business, the Vendor has not given nor agreed to give, or is a
party to or bound by, any indemnification or guarantee of indebtedness or other

                                       14
<PAGE>
obligations of third parties or any other commitment by which the Business is,
or is contingently, responsible for such indebtedness or other obligations.

3.1.14 RESTRICTIONS ON BUSINESS

The Vendor is not a party to any agreement, lease, mortgage, security document,
obligation or instrument, or subject to any restriction imposed by any
Governmental Agency or subject to any Applicable Canadian law or Order which
restricts or interferes with the conduct of the Business as currently conducted
or its current use of the Purchased Shares or which limits or restricts or
otherwise materially adversely affects the Purchased Shares or the financial
condition of the Business, other than Applicable Canadian law or Orders or
restrictions of general application to the Business and any restrictions which
may be contained in the Leases or the Equipment Leases.

3.1.15 ABSENCE OF CONFLICTING AGREEMENTS

Neither the execution nor delivery of this Agreement or any Closing Document by
the Vendor nor the consummation of the transactions contemplated hereby will:

     a)   contravene or violate in any material respect or result in any
          material breach of (with or without the giving of notice or lapse of
          time, or both) or acceleration of any obligation under:

          i)   subject to giving the requisite notice of the proposed
               transaction under the Competition Act (Canada), any Applicable
               Canadian Law;
          ii)  Any License, permit, concession or franchise of the Company;
          iii) The articles, by-laws, directors or shareholders resolutions of
               the Company;
          iv)  except for the Leases, the Equipment Leases, Contractual Rights,
               Warranty Rights and the Assumed Contracts the consent to the
               assignment or transfer of which may be required from landlords
          v)   Or other third parties thereunder in connection with the Closing,
               the provisions of any material indenture, mortgage, lease,
               agreement, instrument, arrangement or understanding to which the
               Company is a party or is bound;

     b)   relieve any other party to any Lease, Equipment Lease, Assumed
          Contract, Contractual Right or Warranty Right, of that party's
          obligations thereunder or enable it to terminate its obligations
          thereunder except as described in such Lease, Equipment Lease,
          Contractual Rights, Warranty Rights or Assumed Contract; or
     c)   Result in the creation or imposition of any material Encumbrance on
          the Business or any of the Purchased Shares other than the Permitted
          Encumbrances.

3.1.16 COMPLIANCE WITH APPLICABLE CANADIAN LAW

Prior to May 6, 2010, the Company has conducted the Business in compliance in
all material respects with all Applicable Canadian law and not in breach of any
Applicable Canadian law except for breaches which in the aggregate are
immaterial or which are described in the Phase I Assessment. Since May 6, 2010,
the Company is conducting the Business currently carried on by it in compliance
in all material respects with all Applicable Canadian law, and not in breach of
any Applicable Canadian law except for breaches which in the aggregate are
immaterial.

                                       15
<PAGE>
The Vendor has received no orders, notices, complaints or similar requirements
relating to the Business or the Company relating to the Business issued by any
building, environmental, fire, health, labour or police authorities or by any
other Governmental Agency which have not been resolved to the satisfaction of
the issuing body and there are no matters under discussion by the Company or its
agents with any Governmental Agency relating to orders, notices or similar
requirements.

3.1.17 COLLECTIVE AGREEMENTS

There is no collective agreement to which the Vendor is a party in respect of
the Business or which relates to the Business. No trade union, council of trade
unions, employee bargaining agency or affiliated bargaining agent holds
bargaining rights with respect to any Employees of the Business by way of
certification, interim certification, voluntary recognition, related employer or
successor rights, or has applied or, to the knowledge of the Vendor, threatened
to apply to be certified as the bargaining agent of any of such Employees. No
work stoppage or other labour dispute in respect of the Business is pending or,
to the knowledge of the Vendor, threatened.

3.1.18 INSURANCE

The Company has the assets insured by reputable insurers against loss or damage
as is appropriate to the Business and the assets in such amounts and against
such risks as are customarily carried and insured against by owners of
comparable businesses, properties and assets, and such insurance coverage will
be continued in full force and effect to and including the Closing Date.

3.1.19 LEASES

The Company is not a party to or bound by any leases of real property other than
the Leases and the Excluded Warehouse Lease in respect of the Business and all
interests held by the Company as lessee under the Leases are free and clear of
all Encumbrances other than the Permitted Encumbrances. Each of the Leases
permits the Company to carry on the Business as presently carried on.

3.1.20 NO EXPROPRIATION

The Company has not received any notice of expropriation of all or any of the
Leased Premises or the assets. The Vendor is not aware of any expropriation
proceeding pending or threatened against or affecting any of the Leased Premises
or the assets.

3.1.21 LICENSES

The only Licenses held by the Vendor which are material or necessary for the
operation of the Business and the ownership of the Purchased Shares and said
Licenses are in full force and effect unamended. The Company is in compliance in
all material respects with all provisions of the Licenses and there are no
proceedings in progress, or to the best of the knowledge of the Vendor, pending
or threatened, which may result in revocation, cancellation, suspension or any
adverse modification of any of the Licenses.

3.2. REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

The Purchaser represents and warrants to the Vendor as set out in the following
subsections of this Section and acknowledges that the Vendor is relying upon
such representations and warranties in entering into this Agreement.

                                       16
<PAGE>
3.2.1 INCORPORATION

The Purchaser is a corporation duly continued, organized and subsisting under
the laws of the United States of America.

3.2.2 CORPORATE POWER AND DUE AUTHORIZATION

The Purchaser has good and sufficient power, authority and right to enter into
and deliver, and to observe and perform its covenants and obligations under,
this Agreement and the Closing Documents to which it is a party. The Purchaser
has taken all corporate action necessary to authorize the execution and delivery
of, and the observance and performance of its covenants and obligations under,
this Agreement and the Closing Documents to which it is a party.

3.2.3 ENFORCEABILITY OF OBLIGATIONS

This Agreement has been duly executed and delivered by the Purchaser and this
Agreement constitutes a valid and binding obligation of the Purchaser
enforceable against it in accordance with its terms.

3.2.4 ABSENCE OF CONFLICTING AGREEMENTS

None of the execution and delivery of, or the observance and performance by the
Purchaser of any covenant or obligation under, this Agreement or any Closing
Document to which it is a party or the Closing contravenes or results in (with
or without the giving of notice or lapse of time, or both) or will contravene or
violate in any material respect or result in any material breach or default of,
or acceleration of any obligation under:

     a)   Subject to giving the requisite notice of the proposed transaction
          under the Competition Act Canada and any Applicable Canadian Law.
     b)   any License of the Purchaser;
     c)   the articles, by-laws, directors' or shareholders' resolutions of the
          Purchaser;

3.2.5 CONSENTS AND APPROVALS

     a)   No consent, approval, License, Order or authorization, registration,
          declaration or filing with any Governmental Agency is required by the
          Purchaser in connection with (a) the Closing or (b) the execution and
          delivery by the Purchaser of this Agreement and the Closing Documents
          to which it is a party, or (c) the observance and performance by the
          Purchaser of its obligations under this Agreement and the Closing
          Documents to which it is a party except pursuant to the Competition
          Act Canada and except for those consents under certain leases required
          to be obtained .
     b)   The Purchaser is not aware of any reason why any of the landlords of
          the Leased Premises would refuse to give such consent except by reason
          of a potential breach of the radius clauses which may be contained in
          such Leases or in a lease for one of the Purchaser's retail outlets.

                                       17
<PAGE>
3.3. INTERPRETATION

Each representation and warranty made by a Party in this Agreement shall be
treated as a separate representation and warranty in respect of each statement
made and, except in the event of inconsistency, the interpretation of any
statement made shall not be restricted by reference to or inference from any
other statement made in a representation and warranty of such Party.

3.4. QUALIFICATION OF REPRESENTATIONS AND WARRANTIES

Any representation or warranty made by a Party as to the enforceability of this
Agreement or any Closing Document or any other agreement or contract is subject
to the following qualifications:

     a)   Specific performance, injunction and other equitable remedies are
          discretionary and, in particular, may not be available where damages
          are considered an adequate remedy;
     b)   Enforcement may be limited by bankruptcy, insolvency, liquidation,
          reorganization, reconstruction and other Canadian law generally
          affecting enforceability of creditors' rights.

3.5. NON-WAIVER

No investigations made by or on behalf of the Purchaser at any time shall waive,
diminish the scope of or otherwise affect any representation or warranty made by
the Vendor in this Agreement or in any Closing Document. No waiver by the
Purchaser of any condition, in whole or in part, shall operate as a waiver of
any other condition.

3.6. KNOWLEDGE OF THE VENDOR

Where any representation or warranty contained in this Agreement is expressly
qualified by reference to the "knowledge" of the Vendor, it shall be deemed to
refer to the knowledge of each of the senior officers of the Company, and the
Vendor confirms that at least one of its senior officers has made due and
diligent inquiry of such Persons (including appropriate officers of the Company)
as it considers necessary as to the matters that are the subject of such
representations and warranties.

4. OTHER COVENANTS OF THE COMPANY

4.1. CONDUCT OF BUSINESS PRIOR TO CLOSING

During the Interim Period, except as otherwise contemplated by the terms of this
Agreement, the Vendor shall act as follows.

4.2. CONDUCT BUSINESS IN ORDINARY COURSE

The Vendor shall:

     a)   use commercially reasonable efforts to preserve and protect the
          Business and its income, the goodwill and the reputation of the
          Business, and retain at its service the employees necessary to the
          operation of the Business, and maintain good business relationships
          with its customers, suppliers and distributors, except in respect of
          the contracts, commitments and arrangements;
     b)   carry on the Business with reasonable diligence and in the ordinary
          course, keep accurate Accounting Records and not make any modification
          in its usual sales, purchasing, accounting or management practices,
          except in respect of the contracts, commitments and arrangements
          hereof and, without limiting the generality of the foregoing, ensure
          that all accruals or reservations, taken or made, are consistent with
          prior years' practices; and

                                       18
<PAGE>
     c)   Without the prior written consent of the Purchaser (not to be
          unreasonably withheld), not enter into any transaction which, if
          entered into before the date of this Agreement, could cause any
          representation or warranty of the Company contained herein to be
          incorrect in any material respect or constitute a material breach of
          any covenant or agreement of the Company contained herein.

4.3. CONTRACTS

Without the prior written consent of the Purchaser (not to be unreasonably
withheld), the Vendor shall not enter into any new contracts, agreements,
leases, obligations, or commitments relating to the Business or the Leased
Premises which are not in the ordinary course of business nor shall it renew,
cancel, or exercise rights or options in respect of, any Leases, Equipment
Leases, Assumed Contracts or Contractual Rights. The Vendor shall observe and
perform in all material respects in a timely manner all of its covenants and
obligations under each Lease, Equipment Lease, Assumed Contract or Contractual
Right up to the Time of Closing. The Vendor shall enforce all of its rights
under each Lease, Equipment Lease, Assumed Contract or Contractual Right up to
the Time of Closing if there is a material default by another party thereto.

4.4. CONTINUE INSURANCE

The Vendor shall ensure that until the Closing Date all policies of insurance
maintained by the Vendor relating to the Business continue in force and good
standing and that all claims under such policies are presented in a due and
timely manner.

4.5. COMPLY WITH CANADIAN LAW

The Company shall comply in all material respects with all Applicable Canadian
law affecting the operation of the Business.

4.6. CONDUCT OF BUSINESS PRIOR TO CLOSING

During the Interim Period, except as otherwise contemplated by the terms of this
Agreement, the Vendor shall act as follows.

4.7. CONDUCT BUSINESS IN ORDINARY COURSE

4.8. COOPERATION

The Purchaser shall cooperate with the Vendor during the Interim Period in order
to permit the Closing to be consummated. In particular but without limiting the
generality of the foregoing, the Purchaser shall provide to the lessors under
the Leases all such information relating to the Purchaser [including financial
information], information relating to its business experience and the business
experience of the individuals who ultimately control and operate the Purchaser
and with respect to their ability to perform their obligations under the Leases
and operate the Business.

4.9. DISCLOSURE

Each Party shall immediately disclose in writing to the other Party any matter,
which becomes known to it prior to the Closing Date, which is inconsistent in
any material respect with any of the representations or warranties of either
Party contained herein. No such disclosure, however, shall cure any
misrepresentation or breach of warranty;

                                       19
<PAGE>
4.10.INJUNCTIONS

If any court having jurisdiction over either or both of the Company or the
Business issues any injunction, decree or similar order before the Time of
Closing which would prohibit or materially restrict or hinder the Closing, the
Company shall use their respective reasonable efforts to have such injunction,
decree or order dissolved or otherwise eliminated as promptly as possible and,
in any event, prior to the Time of Closing.

4.11.ACTION BY THE VENDOR

During the Interim Period, the Vendor shall at its expense take all commercially
reasonable action which may be necessary and which is in its control to ensure
that its representations and warranties contained herein shall be true and
correct in all material respects at the Time of Closing.

4.12.COMPETITION ACT

The Purchaser and the Vendor shall jointly give the requisite notice of the
proposed transaction under the Competition Act of Canada within 60 Business Days
following the execution date hereof.

5. INDEMNIFICATION

5.1 DEFINITIONS

"Claim" means any act, omission or statement of facts and any demand, action,
suit, proceeding, claim, assessment, judgment or settlement or compromise
relating thereto which may give rise to a right to indemnification;

"Direct Claim" means any Claim by an Indemnified Party against an Indemnifier,
which does not result from a Third Party Claim;

"Indemnifier" means any Party obligated to provide indemnification under this
Agreement;

"Indemnified Party" means any Person entitled to indemnification under this
Agreement;

"Indemnity Payment" means any amount of Loss required to be paid;

"Loss" means any and all loss, liability, damage, cost, expense, charge, fine,
penalty or assessment, resulting from or arising out of any Claim, including the
out-of-pocket costs and expenses of any action, suit, proceeding, demand,
assessment, judgment, settlement or compromise relating thereto and all
interest, punitive damages, fines and penalties and reasonable legal fees and
expenses incurred in connection therewith; and

"Third Party Claim" means any Claim asserted against an Indemnified Party by any
Person who is not a Party or an Affiliate of such a Party and includes any
assessment or reassessment of Taxes by any applicable taxing authority.

5.2 INDEMNIFICATION BY THE VENDOR

Vendor shall indemnify, defend and save harmless the Purchaser and each of its
directors, officers and employees from and against any and all Loss suffered or
incurred by any one or more of them, as a direct or indirect result of, or
arising in connection with:

     a)   any misrepresentation or breach of warranty made or given by the
          Vendor in any Closing Document;
     b)   Any failure by the Vendor to observe or perform any covenant or
          obligation contained in this Agreement or any Closing Document to be
          observed or performed by it.

                                       20
<PAGE>
5.3 INDEMNIFICATION BY THE PURCHASER

Subject to the limits set forth in Section 5.10, the Purchaser shall indemnify,
defend and save harmless the Vendor and the Companies directors, officers and
employees from and against any and all Loss suffered or incurred by any one or
more of them, as a direct or indirect result of, or arising in connection with:

     a)   Any misrepresentation or breach of any warranty made or given by the
          Purchaser in this Agreement;
     b)   Any misrepresentation or breach of warranty made or given by the
          Purchaser in any Closing Document; or
     c)   Any failure by the Purchaser to observe or perform any covenant or
          obligation contained in this Agreement or any Closing Document to be
          observed or performed by it.

6.1 LITIGATION

No court order shall have been entered that enjoins, restrains, prohibits or
restricts the Closing. Neither of the Vendor or Purchaser, nor any of their
respective directors, officers, employees or agents, shall be a defendant or
third party to or threatened with any litigation or proceedings before any court
or Governmental Agency which, in the opinion of the Purchaser, acting
reasonably, could prevent or restrict that Party from performing in any material
respect any of its obligations in this Agreement, any of the Closing Documents
or the Non-Competition Agreement or which could expose that Party to material
damages.

6.2 NON-COMPETITION AGREEMENT

The Vendor shall have executed and delivered to the Purchaser, a Non-Competition
Agreement.

7.1 RELEASE OF VENDOR FROM LEASE COVENANTS

The Purchaser agrees that if, after the Closing, it exercises any option to
extend the term of or to renew any Lease, it will use its commercially
reasonable efforts to obtain the landlord's release of the Vendor from all
obligations under such Lease in respect of the extension or renewal term
provided that the refusal of the Purchaser to provide economic incentives or
guarantees other than as required by the terms of Lease to or in favor of the
other parties to the Lease will not be deemed to be unreasonable. The Vendor
shall be entitled to participate with the Purchaser in the latter's efforts to
obtain such releases.

6. GENERAL

8.1 FURTHER ASSURANCES

Each of the Vendor and the Purchaser shall from time to time execute and deliver
all such further documents and instruments and do all acts and things as the
other Party may, either before or after the Closing Date, reasonably require to
effectively carry out or better evidence or perfect the full intent and meaning
of this Agreement, the Closing Documents and the Non-Competition Agreement.

8.2 TIME OF THE ESSENCE

Time shall be of the essence of this Agreement.

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<PAGE>
8.3 EXPENSES

Each of the Vendor/Purchaser hereto shall pay its respective legal and
accounting costs and expenses incurred in connection with the preparation,
execution and delivery of this Agreement and all documents and instruments
executed pursuant hereto and any other costs and expenses whatsoever and
howsoever incurred.

8.4 ENTIRE AGREEMENT

This Agreement, together with the Closing Documents and the Non-Competition
Agreement constitutes the entire agreement between the vendor with respect to
the subject matter hereof and cancels and supersedes any prior understandings
and agreements between the Purchaser with respect thereto. There are no other
representations, warranties, terms, conditions, undertakings or collateral
agreements, express, implied or statutory, between the Vendor and the Purchaser
other than as expressly set forth in this Agreement, in the Closing Documents or
in the Non-Competition Agreement.

8.5 CONFIDENTIALITY

Except to the extent required by Canadian Law or by the rules of any stock
exchange, the Vendor hereto agree that no disclosure or public announcement with
respect to this Agreement or the transactions herein contemplated shall be made
by any Party hereto prior to the Closing without the prior written consent of
the other Party. Where either Party intends to make such disclosure or public
announcement, it shall only do so after consulting with the other Party.

8.6 GOVERNING CANADIAN LAW

This Agreement shall be governed by and construed in accordance with the laws of
Canada and of the Province of Alberta and the applicable laws herein.

8.7 ATTORNMENT

For the purpose of all legal proceedings this Agreement shall be deemed to have
been performed in the Province of Alberta and the courts of the Province of
Alberta shall have jurisdiction to entertain any action arising under this
Agreement. The Vendor and the Purchaser each hereby attorns to the jurisdiction
of the courts of the Province of Alberta.

8.8 COUNTERPARTS

This Agreement may be executed in any number of counterparts. Each executed
counterpart shall be deemed to be an original. All executed counterparts taken
together shall constitute one agreement.

IN WITNESS WHEREOF, each party to this agreement has caused it to be executed at
[place of execution] on the date indicated above.

PURCHASER                                    VENDOR

-----------------------------------          -----------------------------------
Authorized Signature                         Authorized Signature

-----------------------------------          -----------------------------------
Print Name and Title                         Print Name and Title

                                       2220-F

                                                                  EXHIBIT 4.1(i)

                            ASSET PURCHASE AGREEMENT

     THIS ASSET PURCHASE AGREEMENT (the "AGREEMENT") is made and entered into as
of December 9, 2009, by and between VocalTec Communications Ltd., an Israeli
company (the "PURCHASER"), and Outsmart Ltd., a company organized under the laws
of the State of Israel (the "SELLER").

                              W I T N E S S E T H :

     WHEREAS, the Seller provides convergence solutions for telecom operators
(the "BUSINESS"); and

     WHEREAS, the Seller wishes to sell to the Purchaser, and the Purchaser
wishes to purchase from the Seller, certain assets of the Seller relating to the
operation of the Business, and in connection therewith, the Purchaser has agreed
to assume certain liabilities of the Seller relating to the purchased assets, on
the terms and conditions set forth in this Agreement.

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows, intending to be legally bound:

                                   ARTICLE I.
                           PURCHASE AND SALE OF ASSETS

     1.01 PURCHASE AND SALE OF ASSETS.

     Upon the terms and subject to the conditions set forth in this Agreement,
the Seller hereby agrees to sell to the Purchaser, and the Purchaser hereby
agrees to purchase from the Seller, free and clear of any Encumbrance, all of
the right, title and interest of the Seller in the assets set forth in Schedule
1.01 (collectively, the "ASSETS"), as well as the following (solely to the
extent directly related to or associated with the Assets):

          a) all customer, marketing, distribution and license contracts to
     which Seller is a party, or other contracts or outstanding purchase order
     relating to the Assets (the "CONTRACTS"), provided that any such contract
     or purchase order shall be deemed a 'Contract' only after and to the extent
     it is lawfully assigned to the Purchaser pursuant to its terms;

          b) all rights, claims and causes of action against third parties;

          c) all existing and pending governmental licenses and permits which
     constitute an integral part of an Asset ("PERMITS");

          d) all current insurance and indemnity claims;

          e) all goodwill;

          f) all client customer, and prospects lists and records, production
     reports and records, service and warranty records, equipment logs,
     operating guides and manuals, creative materials, advertising materials,
     promotional materials, studies, reports, correspondence and other similar
     documents and records;

          g) all insurance benefits relating to the Assets or the Assumed
     Liabilities (as defined below), unless expended in accordance with this
     Agreement; and

          h) certain fixed assets and inventory of the Seller listed in Schedule
     1.01 (the "FIXED ASSETS").

Notwithstanding the foregoing, the transfer of the Assets pursuant to this
Agreement shall not include the assumption of any Liabilities unless the
Purchaser expressly assumes such Liabilities pursuant to Section 1.03.

     1.02 EXCLUDED ASSETS. Notwithstanding anything to the contrary in Section
1.01, the Seller shall not sell to Purchaser, and Purchaser will not purchase
from the Seller, any assets of the Seller not included specifically as Assets in
Schedule 1.01 (the "EXCLUDED ASSETS"). The Excluded Assets include:

          a) all Leases to which Seller is a party;

          b) any insurance policies of the Seller, other than rights relating to
     claims arising on or prior to the Closing Date in connection with the
     Assets;

          c) all rights of the Seller under this Agreement and the other
     agreements and instruments executed and delivered in connection with this
     Agreement;

          d) any share capital of the Seller;

          e) the minute book, share transfer book and corporate seal of the
     Seller;

          f) inventory and fixed assets (except those listed in Schedule 1.01)
     of the Seller;

          g) all cash, Accounts Receivable, marketable securities and any bank
     deposits and any interest to be received thereon held by the Seller as of
     the Closing Date;

          h) all claims, causes of action, rights of recovery and rights of
     set-off of any kind against any person or entity arising out of or relating
     to the Excluded Assets; and

          i) Seller's employee benefit plans or programs.

     1.03 LIMITED ASSUMPTION OF LIABILITIES. On the Closing Date, the Purchaser
will assume the following (and only the following) liabilities and/or
obligations of the Seller: (a) (i) all liabilities and obligations of the Seller
in respect of the Contracts to the extent arising after the Closing Date,
including Seller's existing product warranty obligations provided pursuant to
any of the Contracts to the extent (subject to Section 1.03(d) below) relating
to post-Closing periods, and (ii) all obligations of the Seller to deliver
features under each transferred Contract (regardless if such features were to be
delivered before or after the Closing Date) in accordance with the terms of such
transferred Contracts), (b) all liabilities incurred in, resulting from or
arising out of the use, operation or control of the Assets after the Closing
Date, (c) all obligations to pay royalties to the Office of Chief Scientist of
the Israeli Ministry of Industry, Trade and Labor ("OCS") and the Canada-Israel
Industrial Research and Development Foundation ("CIIRDF") in respect of the
Assets after the Closing Date, (d) all bonds that have been issued by the Seller
to its customers pursuant to any Contract that is an Asset, which bonds are
outstanding on the Closing Date and are set forth in Schedule 1.03, shall be
replaced, at the Closing, with Purchaser's bonds, and (e) any bonds required in
connection with any purchase order accepted by the Seller following the date of
the Letter of Intent which was executed by the parties on November 9, 2009 (the
"LETTER OF INTENT") (which purchase order has been approved by Purchaser) shall
be placed by the Purchaser (collectively, the "ASSUMED LIABILITIES"). Except for
the Assumed Liabilities, the Purchaser shall not assume or be responsible for
any claims against or commitments, contracts, agreements, obligations or other
liabilities of the Seller, whether known or unknown, asserted or unasserted,
accrued or un-accrued, absolute or contingent, liquidated or un-liquidated, due
or to become due, and whether contractual, statutory, or otherwise. Without
limiting the generality of the foregoing, the parties acknowledge that the
Purchaser shall not assume or in any way be responsible for any of the following
liabilities or obligations of Seller:

          a) liabilities in respect of indebtedness of the Seller (other than as
     included in the Assumed Liabilities);

          b) product liability and warranty claims arising out of or in any way
     relating to or resulting from any product or service of the Seller sold,
     performed or delivered on or prior to the Closing Date, provided that
     claims relating to Seller's product warranty obligations that are in effect
     as of the Closing Date, which claims arise under any Contract that is an
     Asset, with respect to events occurring following the Closing Date, shall
     be the responsibility of Purchaser, and provided further that the Purchaser
     shall be responsible for addressing (and bearing all costs associated
     therewith) any inquiry, request or demand for repairs, service or
     maintenance, arising under any of the Contracts following the Closing Date;

          c) taxes, duties, levies, assessments and other charges, including any
     penalties, interests and fines with respect thereto, payable by the Seller
     to any Governmental Authority, including taxes arising out of the
     transactions contemplated by this Agreement;

          d) liabilities with respect to the Hired Employees (as defined in
     Section 4.01a)) with respect to the period ending upon the effective
     termination date of the employment or consulting relationship of such Hired
     Employees with the Seller, including, without limitation any claim and/or
     demand relating to any period prior to the Closing Date in connection with
     employment-related matters;

          e) any Liability of the Seller or claim for Liability of the Seller
     related to any lawsuit or threatened lawsuit or claim based upon actions,
     omissions or events occurring on or prior to the Closing Date which have
     not been expressly assumed herein;

          f) any Liability related to Excluded Assets;

          g) any Liability to a third party for infringement of such third
     party's rights by the Seller prior to the Closing;

          h) all Liabilities incurred by Seller in connection with this
     Agreement and the transactions contemplated herein;

          i) Liabilities of Seller for any breach or failure to perform any of
     Seller's covenants and agreements contained in, or made pursuant to, this
     Agreement, or, prior to the Closing Date, any Contract;

          j) Liabilities of Seller for any violation of or failure to comply
     with any statute, law, ordinance, rule or regulation (collectively, "LAWS")
     or any order, writ, injunction, judgment, plan or decree (collectively,
     "ORDERS") of any Governmental Authority relating solely to the period prior
     to the Closing Date;

          k) all obligations of Purchaser to pay royalties to the Office of
     Chief Scientist of the Israeli Ministry of Industry, Trade and Labor
     ("OCS") in respect of the Assets relating solely to the period prior to and
     ending on November 30, 2009; and

          l) all obligations of Purchaser to pay royalties to the Canada Israel
     Industrial Research and Development Foundation ("CIIRDF") in respect of the
     Assets relating solely to the period prior to and ending on November 30,
     2009.

     1.04 CONSENTS TO ASSIGNMENT.

     Nothing in this Agreement nor the consummation of the transactions
contemplated hereby shall be construed as an attempt or agreement to assign any
Asset, including any Contract, Permit, certificate, approval, authorization or
other right, which by its terms or by applicable law is non-assignable without
the consent of a third party or a Governmental Authority or agency or is
cancelable by a third party in the event of an assignment ("NON-ASSIGNABLE
ASSETS") unless and until such consent shall have been obtained. Each party
shall, and shall cause its respective Affiliates to, use their reasonable best
efforts to obtain such consents prior to the Closing Date, and Seller shall
assist Purchaser in contacting and coordinating meetings with Seller's customers
in order to facilitate the obtaining of such consent prior to the Closing Date.
If any such consent shall not be obtained prior to the Closing Date, Purchaser
shall have the authority to approach the third parties under such Non-assignable
Assets in order to bring to the completion of the assignment of such assets. In
the event that at the Closing the registration of any transferred Intellectual
Property Asset in the name of the Purchaser at the relevant Governmental
Authority was not yet completed and perfected, then, without limitation of any
other rights of the Purchaser, to the extent necessary to grant to the Purchaser
full and unrestricted use of such transferred Intellectual Property Asset, the
Seller hereby grants to the Purchaser, effective as of the Closing Date, an
irrevocable, perpetual, royalty free, fully paid, worldwide, unrestricted,
exclusive license to make any use or exploitation with respect thereto. The
Seller further grants the Purchaser, effective as of the Closing Date, a power
of attorney, appointing Purchaser as an authorized signatory of the Seller in
connection with the registration in the name of the Purchaser of any
Intellectual Property that is part of the Assets that shall not be registered in
the name of the Purchaser through the Closing, in substantially the form
attached hereto as Schedule 1.04.

     1.05 PURCHASE PRICE. The aggregate purchase price for the Assets shall be $
285,000 (the "PURCHASE PRICE"), plus applicable VAT, payable in cash and
unregistered ordinary shares of the Purchaser, par value NIS 0.13 per share (the
"ORDINARY SHARES"), valued as specified herein, as follows:

          a) An amount in cash of US$185,000 less the amount of US$50,000
     extended by the Purchaser to the Seller pursuant to that certain Debenture
     dated as of November 22, 2009 attached hereto as Schedule 1.06(a) (the
     "DOWN PAYMENT"; the amount in cash including the Down Payment is referred
     to herein as the "CASH PAYMENT").

          b) On the Closing Date, the Purchaser shall deliver to the Seller
     irrevocable instructions to the Purchaser's transfer agent, instructing
     such transfer agent to issue to the Seller Ordinary Shares of the Purchaser
     having an aggregate value of $100,000, as calculated below (the "CLOSING
     SHARES PAYMENT"), of which a certificate representing the Ordinary Shares
     constituting the Escrow Shares (as defined below) shall be instructed to be
     delivered to the Escrow Agent, on behalf of the Seller, as provided herein.
     The Ordinary Shares constituting the Closing Shares Payment shall be valued
     at the average closing price of the Purchaser's Ordinary Shares on the
     Nasdaq Capital Market during the five (5) Business Days ending on (and
     including) the Business Day prior to the date hereof (the "ORDINARY SHARES
     PRICE").

          c) The "ESCROW SHARES" to be placed in escrow shall be 30% of the
     Ordinary Shares constituting the Closing Shares Payment which Purchaser, at
     the Closing, shall, pursuant to the Indemnification Escrow Agreement,
     deliver to the escrow agent named therein (the "ESCROW AGENT").

          d) Payment of the Purchase Price shall be subject to applicable
     Israeli tax withholding requirements, unless Seller provides Purchaser a
     copy of a valid approval of the Israeli Tax Authority establishing an
     exemption from such tax withholding obligations, to the reasonable
     satisfaction of Purchaser. To the extent that amounts are withheld from any
     payment, such amounts shall be treated for all purposes of this Agreement
     as having been paid to the Seller. The Purchaser hereby represents that
     with respect to all payments made to the Seller at the Closing, Seller has
     provided the Purchaser with a copy of a valid and proper approval of the
     Israeli Tax Authority establishing an exemption from such tax withholding
     obligations.

          e) Except as specifically set forth in Section 1.03 above, Seller
     shall be responsible for any documentary and transfer taxes and any sales,
     use or other taxes that are customarily imposed on sellers, and which are
     imposed on Seller by reason of the transfers of the Assets provided
     hereunder and any deficiency, interest or penalty asserted with respect
     thereto, as may be required by law.

     1.06 ADJUSTMENTS TO PURCHASE PRICE.

          a) Seller shall be entitled to receive 10% of any amount in excess of
     $1,075,000 (such excess amount is referred to as the "FIRST EXCESS AMOUNT")
     actually received by Purchaser (or any of its affiliates) pursuant to
     bookings (i.e. binding purchase orders from customers) that are received by
     Purchaser (or any of its affiliates) during the period following the
     Closing Date through December 31, 2010 (the "FIRST EARNOUT PERIOD"), in
     each case with respect to sales of Seller's technology, products or any
     part thereof (provided that when such Seller's technology, product or any
     part thereof is bundled with other products of Purchaser, the amount deemed
     to be booked on account of such product or technology, as applicable, shall
     be the portion out of the total price of the product ordered by the
     customer attributable to the Seller's product or Intellectual Property
     purchased hereunder, which attribution shall be based on the higher of (i)
     Seller's price list attached hereto as Schedule 1.07, and (ii) Purchaser's
     (or any of its affiliates') attribution in its price lists to Seller's part
     of the bundled products (to the extent such attribution exists), provided
     that in each such case, if the Purchaser (or any of its affiliates)
     provides any discount in connection with the relevant sale, the discount
     shall apply pro-rata to both Purchaser's (or any of its affiliates') and
     Seller's technology or products, as applicable. For the avoidance of doubt,
     if Purchaser makes no attribution in its price lists to Seller's part of
     the bundled products, the portion out of the total price allocated to the
     Seller's product or Intellectual Property so purchased shall be based on
     Seller's price list attached hereto as Schedule 1.07. If the Closing of the
     transaction contemplated herein occurs between December 9, 2009 and
     December 31, 2009, the threshold amount for the First Excess Amount will be
     reduced from $1,075,000 as set forth below:

---------------------------------------- ---------------------------------------
              Date of Closing              Threshold of First Excess Amount
---------------------------------------- ---------------------------------------
      Between December 9 and 16, 2009                 $1,050,000
---------------------------------------- ---------------------------------------
     Between December 17 and 24, 2009                 $1,025,000
---------------------------------------- ---------------------------------------
     Between December 25 and 31, 2009                 $1,000,000
---------------------------------------- ---------------------------------------

          b) In addition, the Seller shall be entitled to receive 10% of any
     amount in excess of $1,612,500 (such excess amount is referred to as the
     "SECOND EXCESS AMOUNT" and, together with the First Excess Amount, the
     "EARNOUT AMOUNT") actually received by the Purchaser (or any of its
     affiliates) pursuant to bookings (i.e. binding purchase orders from
     customers) that are received by Purchaser (or any of its affiliates) during
     the 12-month period following the First Earnout Period (the "SECOND EARNOUT
     PERIOD" and, together with the First Earnout Period, the "EARNOUT PERIOD"),
     in each case with respect to sales of Seller's technology, products or any
     part thereof (provided that when such Seller's product or any part thereof
     or any of Seller's technology is bundled with other products of the
     Purchaser, the amount deemed to be so booked on account of such product or
     technology, as applicable, shall be the portion out of the total price of
     the product ordered by the customer attributable to the Seller's product or
     Intellectual Property purchased hereunder, which attribution shall be based
     on the higher of (i) Seller's price list attached hereto as Schedule 1.07,
     and (ii) Purchaser's (or any of its affiliates') attribution in its price
     lists to Seller's part of the bundled products (to the extent such
     attribution exists), provided that in each such case, if the Purchaser (or
     any of its affiliates) provides any discount in connection with the
     relevant sale, the discount shall apply pro-rata to both Purchaser's (or
     any of its affiliates') and Seller's technology or products, as applicable.
     For the avoidance of doubt, if Purchaser makes no attribution in its price
     lists to Seller's part of the bundled products, the portion out of the
     total price allocated to the Seller's product or Intellectual Property so
     purchased shall be based on Seller's price list attached hereto as Schedule
     1.07. If the Closing of the transaction contemplated herein occurs between
     December 9, 2009 and December 31, 2009, the threshold amount for the First
     Excess Amount will be reduced from $1,612,500 as set forth below:

----------------------------------------- --------------------------------------
              Date of Closing               Threshold of First Excess Amount
----------------------------------------- --------------------------------------
      Between December 9 and 16, 2009                  $1,575,000
----------------------------------------- --------------------------------------
     Between December 17 and 24, 2009                  $1,537,500
----------------------------------------- --------------------------------------
     Between December 25 and 31, 2009                  $1,500,000
----------------------------------------- --------------------------------------

          c) Purchaser shall prepare and deliver to the Seller, not later than
     thirty (30) days after receipt by it (or any of its affiliates) of any
     amount under any booking received by it (or any of its affiliates) during
     any of the First Earnout Period and the Second Earnout Period, (i) a
     statement setting forth the calculation made in accordance with Sections
     1.07(a) or 1.07(b) (each such statement, an "EARNOUT Statement"), and (ii)
     the applicable Earnout Amount as reflected in the applicable Earnout
     Statement, by wire transfer of immediately available funds to an account
     designated by the Seller to the Purchaser in writing.

          d) Purchaser shall permit the authorized representatives of Seller (or
     the representatives of the Major Shareholder), subject to a customary
     confidential undertaking by Seller (or the Major Shareholder, as
     applicable), access at all reasonable times, upon reasonable prior notice,
     and without unduly interfering with the operations of the Purchaser, to
     examine Purchaser's books and records, solely to the extent necessary so as
     to validate the accuracy of the Earnout Statements. Seller (or Major
     Shareholder, as applicable) shall bear the expenses resulting from such
     audit, provided, however, that such expenses shall be borne by the
     Purchaser in the event that the audit reveals that the Earnout Amount
     supposed to be paid to Seller is at least ten percent (10%) higher than the
     Earnout Amount actually paid by Purchaser for the applicable period. Seller
     may, within fifteen Business Days following receipt by Seller of an Earnout
     Statement, object in writing to the Earnout Statement. If Seller has not
     objected to the Earnout Statement within such period, Seller shall be
     deemed to have agreed to such statement. In case Seller objects in writing
     within such period to the Earnout Statement, Seller and Purchaser shall
     attempt in good faith for a period of five Business Days to agree upon the
     rights of the Seller with respect to the Earnout Statement. If Seller and
     Purchaser reach agreement, a memorandum setting forth such agreement shall
     be prepared and signed by them. If no such agreement is reached, either
     Purchaser or Seller may demand resolution of the matter in a court of
     competent jurisdiction in accordance with Section 8.06.

                                  ARTICLE II.
                    REPRESENTATIONS AND WARRANTIES OF SELLER

     The Seller hereby represents and warrants to Purchaser as of the date
hereof and as of the Closing Date (unless another date is expressly set forth
below or in the Disclosure Schedule attached hereto) that:

     2.01 EXISTENCE AND POWER. The Seller is a corporation duly organized and
validly existing under the laws of the State of Israel, and the Seller has all
requisite power and authority, corporate or otherwise, and all governmental
licenses and permits required to carry on the Business as now conducted.

     2.02 AUTHORIZATION.

          a) Except as set forth on Schedule 2.04, the execution, delivery and
     performance by the Seller of this Agreement and all other documents and
     agreements to be executed by the Seller in connection herewith (the
     "RELATED DOCUMENTS") and the consummation by the Seller of the transactions
     contemplated hereby require no action by or in respect of, or filing with,
     any Governmental Authority.

          b) The Seller has all requisite power and authority, corporate or
     otherwise, to execute and deliver this Agreement and all Related Documents
     and to perform its obligations hereunder and thereunder. The execution,
     delivery and performance of this Agreement and the Related Documents by the
     Seller have been duly authorized by all necessary corporate action on the
     part of the Seller, and no other action on the part of the Seller is
     necessary to authorize this Agreement or the Related Documents or to
     consummate the transactions contemplated hereby and thereby. This Agreement
     and the Related Documents have been duly executed and delivered by the
     Seller and constitute the valid and legally binding obligation of the
     Seller, enforceable against the Seller in accordance with their respective
     terms, except as such enforceability may be limited by laws governing
     bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance
     or other similar laws, without limitation, relating to or affecting
     creditors' rights generally. Each Related Document to be delivered by the
     Seller following the date hereof will be duly executed and delivered by the
     Seller and, when so executed and delivered, will constitute the legal,
     valid and binding obligation of the Seller, enforceable against the Seller
     in accordance with its terms, except as such enforceability may be limited
     by laws governing bankruptcy, insolvency, reorganization, moratorium,
     fraudulent conveyance or other similar laws, without limitation, relating
     to or affecting creditors' rights generally.

     2.03 NON-CONTRAVENTION. Except as set forth in Schedule 2.03, the
execution, delivery and performance by the Seller of this Agreement and the
Related Documents do not and will not, with or without the giving of notice or
the lapse of time or both:

          a) contravene, violate or conflict with the articles of association of
     the Seller;

          b) assuming compliance with the matters referred to in Section 2.02a),
     contravene, violate or conflict with, or constitute a violation of, any
     provision of any Law or Order binding upon or applicable to the Seller;

          c) conflict with, result in a breach or violation of, or constitute a
     default under, or result in a contractual right to cause the termination or
     cancellation of or loss of a benefit under, or right to accelerate, any
     agreement, contract or other instrument binding upon the Seller or license,
     franchise, permit or other similar authorization held by the Seller; or

          d) result in the creation or imposition of any Encumbrance on any
     Asset.

     2.04 GOVERNMENTAL APPROVALS; CERTAIN CONSENTS. Other than as listed in
Schedule 2.04, no notices, reports or other filings are required to be made by
Seller with, nor are any consents, registrations, approvals, permits or
authorizations are required to be obtained by Seller from any Governmental
Authority or under any Contract in connection with the execution, delivery and
performance of this Agreement by Seller.

     2.05 LIABILITIES.

     Other than the Assumed Liabilities, there are no liabilities, claims, or
obligations, whether accrued, absolute, contingent, anticipated, or otherwise,
whether due or to become due, attached to or otherwise associated with the
Assets.

     2.06 ABSENCE OF CERTAIN CHANGES. Since June 30, 2009, there has not been
any Material Adverse Effect on the Assets or any event, occurrence or state of
circumstances or facts which as of the date hereof is reasonably expected to
have a Material Adverse Effect on the Assets.

     2.07 TITLE TO ASSETS.

     The Seller holds, and effective as of Closing Date, subject to the terms
herein, the Seller shall deliver to Purchaser, good and marketable title to and
valid interests in all of the Assets (including, without limitation, in all of
the Intellectual Property assets that form part of the Assets) free and clear of
any and all Encumbrances. The Seller is not in default or in breach of any
material provision which is required to be performed by it under any of its
leases or licenses and holds a valid ownership, leasehold or licensed interest
in the Assets not outright owned by the Seller. The Assets conform in all
material respects to all applicable Laws, and with respect to the Fixed Assets,
are also in good operation condition and repair.

     2.08 INTELLECTUAL PROPERTY.

          a) The Seller owns all right, title and interest in and to or is duly
     licensed to use, all of the Intellectual Property that is part of the
     Assets. To the Seller's Knowledge, the operation of such Intellectual
     Property does not infringe, misappropriate or otherwise violate or misuse
     any Intellectual Property of any third party ("THIRD PARTY INTELLECTUAL
     PROPERTY ASSETS").

          b) Schedule 2.08b) lists and describes: (i) all patents and patent
     applications and all registered and unregistered trademarks, trade names
     and service marks, registered and unregistered copyrights, and mask-works
     included in the Intellectual Property Assets that form part of the Assets,
     including the jurisdictions in which each such Intellectual Property Asset
     has been issued or registered or in which any application for such issuance
     and registration has been filed; (ii) all licenses, sublicenses and other
     agreements as to which the Seller is a party and pursuant to which any
     person or entity is authorized to use any Intellectual Property Assets; and
     (iii) all licenses, sublicenses and other agreements as to which the Seller
     is a party and pursuant to which the Seller is authorized to use any Third
     Party Intellectual Property Assets. Other than as set forth in Schedule
     2.08b), the Seller has not (i) licensed to any party any of the
     Intellectual Property that is part of the Assets, whether in source code
     form or otherwise or (ii) entered into any exclusive agreements with any
     party relating to any Intellectual Property that is part of the Assets.

          c) There has been no unauthorized use, disclosure, infringement or
     misappropriation by the Seller of any Third Party Intellectual Property
     Asset licensed by or through the Seller in connection with the Assets, and
     to the Knowledge of the Seller by any third party with respect to the
     Intellectual Property that is part of the Assets, including any employee,
     consultant, or former employee or consultant of the Seller. Except as set
     forth in Schedule 2.08c), the Seller has not entered into any agreement to
     indemnify any other person or entity against any charge of infringement of
     any Intellectual Property that is part of the Assets.

          d) To the Seller's Knowledge, all Intellectual Property (whether
     registered or not) that is part of the Assets is valid, enforceable and
     subsisting. The Seller (i) has not been sued and is not aware of the
     possible basis for any suit, action or proceeding which involves a claim of
     infringement of any Intellectual Property that is part of the Assets or
     violation of any Third Party Intellectual Property Assets; (ii) has no
     Knowledge that any Intellectual Property that is part of the Assets
     infringes any Third Party Intellectual Property Assets; and (iii) has not
     brought and is not aware of the possible basis for bringing any action,
     suit or proceeding for infringement of any Intellectual Property that is
     part of the Assets or breach of any license or agreement involving any
     Intellectual Property that is part of the Assets against any third party.

          e) The Seller has secured valid written non-disclosure and invention
     assignment agreements from all consultants and employees who contributed to
     the creation or development of the Seller's Intellectual Property that is
     part of the Assets of all rights to such contributions.

          f) Except with respect to licenses of commercial off-the-shelf
     software, and except pursuant to the licenses listed on Schedule 2.08b),
     the Seller is not required, obligated or under any liability, to make any
     payments by way of royalties, fees or otherwise to any owner, licensor of,
     or other claimant to any Intellectual Property that is part of the Assets,
     or to any Person, with respect to the use thereof.

          g) The consummation of the transactions contemplated hereby will not
     result in the loss or impairment of Purchaser's right to own or use any
     portion of the Intellectual Property that is part of the Assets or any
     Contracts currently in effect to which the Seller is a party granting the
     Seller a right to use a Third Party Intellectual Property Asset (the
     "INTELLECTUAL PROPERTY LICENSES"), assuming receipt of the consents under
     such Intellectual Property Licenses specified in Schedule 2.08b).

          h) Schedule 2.08h) sets forth a complete list of all contracts
     pursuant to which any source code that relates to, or is part of, any
     Intellectual Property has been placed in escrow for the benefit of any
     third party.

          i) Except as set forth in SCHEDULE 2.08I), the Seller has not used in
     the development, compilation or creation of its products or under its
     current development of Intellectual Property, nor has it embedded,
     incorporated or bundled any open source, copy left or community source code
     in any of its products, made available to, distributed to, or conveyed to,
     any third party, generally available or in development, including but not
     limited under any GNU Affero General Public License, GNU General Public
     License, GNU Lesser General Public License, Mozilla Public License, BSD
     license, Open Source Initiative License, MIT, Apache, and/or Public Domain
     licenses, or any other "open source" of freeware type licenses
     (collectively, "OPEN SOURCE SOFTWARE"). The use by the Seller of any Open
     Source Software will not require the distribution of, or access to, any
     source code of the Seller, or restrict the Seller's ability to charge for
     distribution of, or to use of its products for commercial purposes, or
     permit third parties to reverse engineer or modify the Seller's proprietary
     software. The Seller has complied with all material requirements, including
     copyright notice requirements and providing copies of licenses, for all
     licenses for Open Source Software, including those set forth on SCHEDULE
     2.08(i). The Seller has not been sued and is not aware of the possible
     basis for any suit, action or proceeding which involves a claim relating to
     non-compliance with the licenses for Open Source Software used by it.

     2.09 PRODUCT WARRANTY. Each product that is part of the Assets and each
service rendered by the Seller with respect thereto has been in material
conformity with all applicable laws, contracts and all express and implied
warranties, and the Seller is not aware of any Liability that it may currently
have thereunder, and the Seller is not aware of any basis for any present or
future action giving rise to any such Liability relating to any such Asset.
There is no litigation, action, suit, proceeding or governmental investigation
pending or, to the Seller's Knowledge, threatened against, the Seller involving
or relating to product warranty claims related to the Assets. Except as set
forth in Schedule 2.09, no product that is part of the Assets nor any service
rendered by the Seller in connection with such product is subject to any
guaranty, warranty or other indemnity or similar Liability.

     2.10 PRODUCT LIABILITY. The Seller does not have any Liability, and to the
Seller's Knowledge there is no basis for, any present or future action against
it giving rise to any such Liability, arising out of any injury to individuals
or property as a result of the ownership, possession or use of any product that
is part of the Assets. There is no litigation, action, suit, proceeding or
governmental investigation pending or, to the Seller's Knowledge, threatened
against, the Seller involving or relating to product liability claims related to
the Assets.

     2.11 MATERIAL CONTRACTS. Except as set forth on Schedule 2.11, each of the
Contracts that are part of the Assets may be transferred to the Purchaser
without the consent of any person. All of the Contracts that are part of the
Assets are valid, binding and in full force and effect against the Seller and
the other party or parties thereto. Except as set forth in Schedule 2.11, the
Seller is not in default, and no notice of alleged default has been received by
the Seller under any of such Contracts, and, to the Seller's Knowledge, no other
party thereto is in default thereunder, and, to the Seller's Knowledge, there
exists no condition or event which, with or without notice or lapse of time or
both, would constitute a default under any of such Contracts by the Seller or
any other party thereto. Except as set forth on Schedule 2.11, none of the
execution, delivery or performance of any Related Document or consummation of
the transactions hereunder will, under the terms of any such Contract (A) result
in any increase in any payment or change in any term, (B) give rise to any right
of amendment, termination, cancellation or acceleration of any right or
obligation or to a loss of benefit or (C) result in any Person having any
termination, repayment or repurchase rights. To the Seller's Knowledge, there
are no features which the Seller has undertaken under any transferred Contract
to deliver to any customer prior to the Closing which have not been delivered.

     2.12 LICENSES AND PERMITS.

          a) All governmental Permits relating to the Assets are valid and in
     full force and effect and will not be terminated or impaired or become
     terminable as a result of the consummation of the transactions contemplated
     hereby and all necessary renewal applications have been timely filed. There
     are no Permits which have not been obtained by the Seller which are
     required for the operation of all or any portion of the Assets.

          b) No written investigation, inquiry or review by any Governmental
     Authority with respect to the Assets is pending or, to the Seller's
     Knowledge, threatened, nor has any Governmental Authority advised the
     Seller of an intention to conduct any such investigation, inquiry or
     review.

     2.13 EMPLOYEES.

Seller is, and at all times has been, in compliance in all material respects
with all applicable Laws respecting employment, including employment practices,
terms and conditions of employment and wages and hours, severance pay,
termination pay, and social benefits, in each case, with respect to all Hired
Employees. There are no pending or, to the best Knowledge of Seller, threatened
or written claims or proceedings, nor does Seller have any knowledge of any
circumstances that would be reasonably expected to result in any claim or
proceedings, against Seller under any worker's compensation policy with respect
to any Hired Employee.

     2.14 COMPLIANCE WITH LAWS; NO DEFAULTS.

          a) The Seller is not (i) in violation of any Law or Order of any court
     or Governmental Authority to which the Assets are subject, or (ii) to the
     Seller's Knowledge, subject to any claim asserted by any Governmental
     Authority that the Assets are in violation of any legal requirement.

          b) As of the date hereof, the Seller is not in default under, and to
     the Seller's Knowledge, no condition exists that with notice or lapse of
     time or both would constitute a default under, any Contract or other
     instrument binding upon the Seller with respect to the Assets or any
     license, authorization, permit, consent or approval held by the Seller
     relating to the Assets.

     2.15 LEGAL PROCEEDINGS.

          a) No judgment, ruling, order, writ, decree, stipulation, settlement,
     injunction or determination by or with any arbitrator, court or other
     Governmental Authority, which relates to or affects the Assets or the
     Assumed Liabilities is in effect.

          b) There is no order in which relief is sought involving, affecting,
     or relating to the ownership, operation or use of the Assets or that would
     prevent, delay or make illegal the transactions contemplated by this
     Agreement and there is no litigation, action, suit, proceeding or
     governmental investigation pending or, to the Seller's Knowledge,
     threatened against, involving, affecting or relating to the Assets or the
     transactions contemplated by this Agreement.

     2.16 REGULATION S.

          a) The Seller is not, and the Seller is not acquiring the Closing
     Shares Payment to be issued thereto hereunder, for the account or benefit
     of, a "U.S. Person" as defined in Rule 902 of Regulation S ("REGULATION S")
     promulgated under the Securities Act.

          b) The Seller was not organized under the laws of any United States
     jurisdiction, and was not formed for the purpose of investing in securities
     not registered under the Securities Act.

          c) As of the date hereof, the Seller was outside the United States.

          d) The Seller acknowledges that the Ordinary Shares constituting the
     Closing Shares Payment are deemed to be "restricted securities" as defined
     in Rule 144 promulgated under the Securities Act. Any resale of such
     Ordinary Shares will be made only in accordance with the provisions of
     Regulation S, pursuant to registration of the securities under the
     Securities Act, or pursuant to an exemption from such registration.
     Securities acquired upon a resale will continue to be deemed to be
     restricted securities, notwithstanding that they were acquired in a resale
     transaction made pursuant to Rules 901 or 904 of Regulation S. The Seller
     acknowledges, agrees and covenants that it will not engage in hedging
     transactions with regard to the Closing Shares Payment prior to the
     expiration of the distribution compliance period specified in Rule 903 of
     Regulation S, unless in compliance with the Securities Act.

          e) The Seller acknowledges and agrees that certificates representing
     the Closing Shares Payment (including the Escrow Shares) will contain one
     or more legends to the effect that transfer of such securities is
     prohibited except in accordance with the provisions of Regulation S,
     pursuant to registration under the Securities Act or pursuant to an
     available exemption from registration.

          f) The Seller acknowledges that the Closing Shares Payment are being
     offered and sold to it in reliance on specific provisions of U.S. federal
     and state securities laws and that the Purchaser is relying upon the truth
     and accuracy of the representations, warranties, agreements,
     acknowledgments and understandings of the Seller set forth herein in order
     to determine the applicability of such provisions.

                                  ARTICLE III.
                REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

     The Purchaser represents and warrants to the Seller that:

     3.01 EXISTENCE AND POWER. The Purchaser is a corporation duly organized and
validly existing under the laws of the State of Israel, and has all requisite
power and authority, corporate or otherwise, and all governmental licenses and
permits required to carry on the Business as now conducted.

     3.02 CORPORATE AUTHORIZATION.

          a) The Purchaser has all requisite power and authority, corporate or
     otherwise, to execute and deliver this Agreement and all Related Documents
     and to perform its obligations hereunder and thereunder. The execution,
     delivery and performance of this Agreement and the Related Documents by
     Purchaser have been duly authorized by all necessary corporate action on
     the part of the Purchaser, and no other action on the part of the Purchaser
     is necessary to authorize this Agreement or the Related Documents or to
     consummate the transactions contemplated hereby and thereby. This Agreement
     and the Related Documents have been duly executed and delivered by the
     Purchaser and constitute the valid and legally binding obligation of the
     Purchaser, enforceable against Purchaser in accordance with their
     respective terms, except as such enforceability may be limited by laws
     governing bankruptcy, insolvency, reorganization, moratorium, fraudulent
     conveyance or other similar laws, without limitation, relating to or
     affecting creditors' rights generally. Each Related Document to be
     delivered by Purchaser following the date hereof will be duly executed and
     delivered by Purchaser and, when so executed and delivered, will constitute
     the legal, valid and binding obligation of Purchaser, enforceable against
     Purchaser in accordance with its terms, except as such enforceability may
     be limited by laws governing bankruptcy, insolvency, reorganization,
     moratorium, fraudulent conveyance or other similar laws, without
     limitation, relating to or affecting creditors' rights generally.

     3.03 NON-CONTRAVENTION. The execution, delivery and performance by
Purchaser of this Agreement and the Related Documents do not and will not, with
or without the giving of notice or the lapse of time or both:

          a) contravene, violate or conflict with the incorporation documents of
     Purchaser;

          b) assuming compliance with the matters referred to in Section 3.02(a)
     contravene, violate or conflict with, or constitute a violation of, any
     provision of any law, regulation, judgment, injunction, order or decree
     binding upon or applicable to Purchaser; or

          c) conflict with, result in a breach or violation of, or constitute a
     default under, or result in a contractual right to cause the termination or
     cancellation of or loss of a benefit under, or right to accelerate, any
     agreement, contract or other instrument binding upon Purchaser.

     3.04 GOVERNMENTAL APPROVALS; CERTAIN CONSENTS. Other than as listed in
Schedule 3.04, no notices, reports or other filings are required to be made by
Purchaser with, nor are any consents, registrations, approvals, permits or
authorizations required to be obtained by Purchaser from, any Governmental
Authority in connection with the execution, delivery and performance of this
Agreement or the Related Documents by Purchaser.

     3.05 LIENS ON THE CLOSING SHARES PAYMENT. All shares to be delivered by the
Purchaser pursuant to this Agreement shall be duly and validly issued, fully
paid, free and clear of all Encumbrances or any other third party rights, and on
the Closing the Purchaser shall irrevocably instruct its transfer agent to
register such shares in the name of the Seller in the Company's register of
shareholders.

     3.06 REPORTS. Since January 2008, Purchaser has filed in a timely manner
all reports, schedules, forms, statements and other documents required to be
filed by it with the United States Securities and Exchange Commission (the
"SEC") pursuant to the reporting requirements of the Securities Exchange Act of
1934, as amended (the "EXCHANGE ACT"), and the rules and regulations promulgated
thereunder and to the extent applicable to the Purchaser (the "SEC DOCUMENTS").
Each of the SEC Documents, as of the respective dates thereof (or, if amended or
superseded by a filing or submission, as the case may be, prior to the Closing
Date, then on the date of such filing or submission, as the case may be), did
not contain any untrue statement of a material fact nor omit to state a material
fact necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading. Each SEC Document, as
it may have been subsequently amended by filings or submissions, as the case may
be, filed or submitted by Purchaser with the SEC prior to the date hereof,
complied in all material respects with the requirements of the Exchange Act and
the rules and regulations promulgated thereunder applicable to such SEC
Document.

                                  ARTICLE IV.
                               COVENANTS OF SELLER

     4.01 CONDUCT OF THE BUSINESS.

          a) From the date hereof until the end of the notice period for each of
     the Hired Employees (as hereinafter defined), the Seller shall not, without
     the prior written consent of the Purchaser, and except for changes made in
     the ordinary course of business consistent with past practices or as
     required pursuant to any existing agreement or applicable law, (i) grant
     any severance, termination or change of control pay or benefits to any of
     the employees or consultants of the Seller listed in Schedule 4.01(a) (such
     employees and consultants who shall accept or have accepted Purchaser's
     employment offer shall be referred to as the "HIRED EMPLOYEES"), (ii)
     increase in or accelerate vesting or benefits payable under any existing
     severance or termination pay policies or employment agreements to any
     employee listed on Schedule 4.01(a), (iii) increase the salary or other
     compensation (including, without limitation, bonuses, profit sharing,
     deferred compensation or other employee benefits) payable or to become
     payable to any employee of the Seller listed on Schedule 4.01(a), or (iv)
     agree or commit to do any of the foregoing;

     4.02 DELIVERY OF ASSETS. Throughout the Closing Date and one day following
the Closing Date, Seller shall use reasonable efforts to facilitate the transfer
of the Assets to the Purchaser.

     4.03 COVENANT NOT TO COMPETE.

          a) In consideration of the Purchaser's consummation of the
     transactions contemplated by this Agreement and for other good and valuable
     consideration, for a period of three (3) years from and after the Closing
     Date, each of the Seller and its Major Shareholder, will not, directly or
     indirectly (whether as an owner, proprietor, partner, shareholder, officer,
     employee, independent contractor, director, joint venturer, consultant,
     lender or investor), solicit or engage in the Prohibited Business. For
     purposes of this Section 4.03, the "PROHIBITED BUSINESS" means offering to
     provide or providing any product or service competitive with the Business,
     anywhere in the world. The parties agree that this Section 4.03 shall not
     prohibit the ownership by the Seller or its Major Shareholder, solely as an
     investment, of securities of a person engaged in the Prohibited Business if
     (i) the Seller or its Major Shareholder is not an "affiliate" (as such term
     is defined in Rule 405 promulgated under the Securities Act of 1933) of the
     issuer of such securities, (ii) such securities are publicly traded on a
     national securities exchange and (iii) the Seller or its Major Shareholder
     does not, directly or indirectly, beneficially own more than 5% of the
     class of which such securities are a part. Each of the Seller and its Major
     Shareholder acknowledges and agrees that the limitations imposed by this
     Section 4.03 (a) are necessary to protect legitimate business interests of
     the Purchaser and the Purchaser's rights to use and benefit from the
     goodwill, Intellectual Property and Confidential Information that has been
     acquired by the Purchaser pursuant hereto and that the limitations as to
     time, geographic area, and scope of activity being restrained are
     reasonable and do not impose a greater restraint than is necessary to
     protect the aforementioned goodwill, Intellectual Property, Confidential
     Information and other business interests of the Purchaser acquired herein.

          b) For a period of three (3) years from and after the Closing Date,
     each of the Seller and its Major Shareholder shall not, directly or
     indirectly, (i) discourage any person from accepting employment with the
     Purchaser or any Affiliate of the Purchaser or (ii) hire or solicit the
     employment or services of, or cause or attempt to cause to leave the
     employment or service of the Purchaser or any Affiliate of the Purchaser,
     any Person who or which is employed by, or otherwise engaged to perform
     services for, the Purchaser or any affiliate of the Purchaser (whether in
     the capacity of employee, consultant, independent contractor or otherwise)
     or who is offered a position by the Purchaser in connection with the
     transactions contemplated hereby.

          c) The parties hereby agree that if either the Seller or its Major
     Shareholder violates this Section 4.03, it would be difficult to determine
     the entire cost, damage or injury, which the Purchaser and its Affiliates
     would sustain. Each of the Seller and its Major Shareholder acknowledges
     that if it violates this Section 4.03, the Purchaser will have no adequate
     remedy at law and in that event, in addition to Purchaser's rights under
     Section 9.07, Purchaser may obtain a monetary judgment against the Seller
     or its Major Shareholder, as applicable, for any damage caused to the
     Purchaser or its Affiliates that may result from any breach by such party
     of this Section 4.03. If the final judgment of a court of competent
     jurisdiction declares that any term or provision of this Section 4.03 is
     invalid or unenforceable, the parties agree that the court making the
     determination of invalidity or unenforceability shall have the power to
     reduce the scope, duration or geographic area of the term or provision, to
     delete specific words or phrases, or to replace any invalid or
     unenforceable term or provision with a term or provision that is valid and
     enforceable and that comes closest to expressing the intention of the
     invalid or unenforceable term or provision, and this Section 4.03 shall be
     enforceable as so modified after the expiration of the time within which
     the judgment may be appealed.

     4.04 CHANGE OF NAME. Within 30 days after the Closing Date, the Seller
shall provide evidence to the Purchaser of the change of the Seller's name, or
any trademarks, trade names or logos of the Seller which are not part of the
Assets, in each case by removing the word "Outsmart". Seller shall further cease
any use of the name "Outsmart" immediately following such change of name.

     4.05 ASSIGNMENT LETTERS. Within 3 days after the Closing Date, the Seller
shall provide to Purchaser copies of all (i) requests for consents required for
the assignment of the Assets, and (ii) notices related to the assignment of the
Assets, all in forms ready to be sent to Seller's customers and vendors
notifying such third parties about the assignment of the Assets, or requesting
such third parties' consent for the assignment of the Assets, as relevant to
each such third party. The letters indicated in items (i) and (ii) shall be sent
by Seller as soon as practicable after such letters are counter-signed by
Purchaser.

                                   ARTICLE V.
                        COVENANTS OF SELLER AND PURCHASER

     The Seller and the Purchaser hereto agree that:

     5.01 BEST EFFORTS; FURTHER ASSURANCES. Subject to the terms and conditions
of this Agreement, the Seller and the Purchaser will use their best efforts to
take, or cause to be taken, all reasonable actions and to do, or cause to be
done, all reasonable things necessary or desirable under applicable laws and
regulations to consummate the transactions contemplated by this Agreement
promptly after the date hereof. The Seller and the Purchaser each agrees to
execute and deliver such other documents, certificates, agreements, corporate
and shareholder approvals, and other writings and to take such other reasonable
actions as may be reasonably necessary or desirable in order to consummate or
implement expeditiously the transactions contemplated by this Agreement promptly
after the date hereof, including, without limitation, with respect to the bonds
set forth in Schedule 5.01 hereto which were required in connection with any
purchase order accepted by the Seller following the date of the Letter of Intent
(which purchase order has been approved by Purchaser) which bonds shall be
placed by the Purchaser, but without expanding the obligations and
responsibilities of any party hereunder.

     5.02 CERTAIN FILINGS. The Seller and the Purchaser shall cooperate with one
another (a) in determining whether any action by or in respect of, or filing
with, any Governmental Authority is required, or any actions, consents,
approvals or waivers are required to be obtained from parties to any material
contracts, in connection with the consummation of the transactions contemplated
by this Agreement, and (b) in taking such actions or making any such filings,
furnishing information required in connection therewith and seeking timely to
obtain any such actions, consents, approvals or waivers, including each notice,
report or other document required to be delivered by either party to, or filed
by either party with, any Governmental Authority with respect to the
consummation of the transactions contemplated hereunder. Seller and Purchaser
shall use all reasonable efforts to obtain, as promptly as practicable after the
date of this Agreement, the approvals of the OCS, CIIRDF and any other consents
and approvals that may be required pursuant to Israeli or foreign legal
requirements in connection with the consummation of the transactions
contemplated hereunder.

     5.03 REGISTRATION OF SHARES. The Purchaser shall use its best reasonable
efforts to include the Ordinary Shares underlying the Closing Shares Payment in
any registration statement that it files with the SEC during the six (6) months
following the issuance of such Ordinary Shares to Seller, provided that if such
registration statement is filed pursuant to an underwritten offering, either for
the account of the Purchaser or for the account of other selling shareholders,
the inclusion of such Ordinary Shares in such registration statement shall be
subject to customary underwriter's cut backs. The Seller will indemnify
Purchaser and each of its officers and directors, against all claims, losses,
damages and liabilities (or actions in respect thereof) arising out of or based
on any untrue statement (or alleged untrue statement) of a material fact
contained in any such registration statement and provided by Seller, or any
omission (or alleged omission) by Seller to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and will reimburse the Purchaser and each of its officers and
directors, or the underwriters, for any legal or any other expenses reasonably
incurred in connection with investigating or defending any such claim, loss,
damage, liability or action, in each case to the extent, but only to the extent,
that such untrue statement (or alleged untrue statement) or omission (or alleged
omission) is made in such registration statement, in reliance upon and in
conformity with written information furnished to the Purchaser by the Seller;
provided, however, that this undertaking of the Seller shall not apply to
amounts paid in settlement of any loss if such settlement is effected without
the consent of the Seller (which consent shall not be unreasonably withheld,
delayed or conditioned), and provided, further, that the obligations of the
Seller hereunder shall be limited to an amount equal to the proceeds received by
the Seller from its sale of shares pursuant to such registration. The Purchaser
will indemnify Seller and each of its shareholders, officers and directors,
against all claims, losses, damages and liabilities (or actions in respect
thereof) arising out of or based on any untrue statement (or alleged untrue
statement) of a material fact contained in any such registration statement, or
any omission (or alleged omission) to state therein a material fact required to
be stated therein or necessary to make the statements therein not misleading,
and will reimburse the Seller and each of its shareholders, officers and
directors, for any legal or any other expenses reasonably incurred in connection
with investigating or defending any such claim, loss, damage, liability or
action, unless such untrue statement (or alleged untrue statement) or omission
(or alleged omission) is made in such registration statement, in reliance upon
and in conformity with written information furnished to the Purchaser by the
Seller; provided, however, that this undertaking of the Purchaser shall not
apply to amounts paid in settlement of any loss if such settlement is effected
without the consent of the Purchaser (which consent shall not be unreasonably
withheld, delayed or conditioned). Prior to effecting such registration
statement, Seller will enter into and deliver any other agreement or undertaking
which is customary and which the Purchaser, or an underwriter in an underwritten
offering, reasonably requests.

     5.04 PUBLIC ANNOUNCEMENTS. The parties shall not issue any press release or
otherwise announce this transaction without mutual agreement to the terms of the
press release, or make any public statement with respect to this Agreement or
the transactions contemplated hereby, except as may be required by applicable
law or the regulations of any stock exchange or other trading market, in which
case the disclosing party shall provide the other party with reasonable notice
and reasonable opportunity to comment upon such disclosure.

     5.05 EMPLOYMENT MATTERS. For any Hired Employee whose notice period
continues after the Closing, such Hired Employee shall continue to remain an
employee of Seller but take assignments only as directed or approved by the
Purchaser and Purchaser shall be responsible to pay in full all salary, benefits
and rights to the Seller for such Hired Employees whose notice period continues
after the Closing, as of December 1, 2009, in accordance with the provisions
below. The notice periods of each of Ronny Barak, Jacob Bros and Gamliel Romano,
were extended by 1 month, 2 months and 3 months, respectively, as of December 1,
2009. Purchaser shall indemnify the Seller for all salary, benefits and rights
payable by Seller to such Hired Employees (the "HIRED EMPLOYEES COMPENSATION")
payable at the last Business Day of each of the months indicated above. For the
avoidance of doubt, applicable VAT shall be added to any payment to the Seller
of the Hired Employees Compensation, against the issuance and delivery to
Purchaser of an invoice for such amount. In addition, as promptly as possible
following the Closing, the Purchaser shall indemnify the Seller and Jacob Bros
for the expenses incurred by the Seller and Jacob Bros in connection with the
two flights of Jacob Bros together with the Purchaser's CEO during November and
December 2009, against written evidence reasonably satisfactory to Purchaser
with respect to such expenses.

                                   ARTICLE VI.
                                     CLOSING

     6.01 CLOSING.

          a) The closing of the transactions contemplated by this Agreement (the
     "CLOSING") is taking place at the offices of Meitar Liquornik Geva & Leshem
     Brandwein, Law Offices, 16 Abba Hillel Road, Ramat Gan on the date hereof
     (the "CLOSING DATE"). The Closing may take place by delivery and exchange
     of documents by facsimile or electronic mail with originals to follow by
     overnight courier.

          b) At the Closing, the transactions listed in this Article VI shall
     occur, which transactions shall be deemed to take place simultaneously and
     no transaction shall be deemed to have been completed or any document
     delivered until all such transactions have been completed and all required
     documents delivered.

          c) At the Closing, Seller shall issue and deliver to Purchaser an
     invoice for the amount of the Purchase Price plus the applicable VAT
     amount.

     6.02 DELIVERIES AND ACTIONS BY THE SELLER. At the Closing, the Seller shall
deliver, or cause to be delivered, to Purchaser:

          a) the Assets;

          b) the Patent Assignment Agreement, substantially in the Form of
     Exhibit 6.02(b) attached hereto (the "PATENT ASSIGNMENT AGREEMENT"), duly
     executed by the Seller;

          c) a Bill of Sale, transferring the Assets to the Purchaser,
     substantially in the form of Exhibit 6.02(c) attached hereto (the "BILL OF
     SALE"), duly executed by the Seller;

          d) all files and documents in its possession relating to the Assets,
     including all operating statistics, warranties and maintenance records,
     registrations, permits and certifications, operating manuals, customer and
     prospects database, in any form or media, whether documentary, written,
     magnetic, and including all information saved on Seller's servers which is
     related to the sales and marketing of Seller and/or to the Assets;

          e) copies of all consents and approvals required in connection with
     the execution, delivery and performance of this Agreement;

          f) a certificate of the Chief Executive Officer of the Seller,
     certifying as to (i) the incumbency of all officers of the Seller executing
     this Agreement and agreements executed in connection herewith, and (ii) the
     resolutions of the Board of Directors of the Seller authorizing the
     execution, delivery and performance of this Agreement and the transactions
     contemplated hereby;

          g) an Assignment of Contracts substantially in the form of Exhibit
     6.02(g) attached hereto (the "ASSIGNMENT OF CONTRACTS") , duly executed by
     the Seller, together with all consents required to be obtained under the
     terms of any Contract prior to the transfer of such Contract pursuant to
     this Agreement;

          h) an Indemnification Escrow Agreement in substantially the form of
     Exhibit 6.02(h) attached hereto, duly executed by the Seller;

          i) audited financial statements of the Seller for and as of the year
     ended December 31, 2007, accompanied by an opinion of certified auditors,
     and reviewed financial statements of the Seller for and as of the six
     months ended on June 30, 2009 and June 30, 2008. Within 30 days following
     the Closing, the Seller shall deliver to the Purchaser the audited
     financial statements of the Seller for and as of the year ended December
     31, 2008, accompanied by an opinion of certified auditors (final drafts of
     which have been provided to Purchaser);

          j) the power of attorney referred to in Section 1.04;

          k) the Certificate of Assignment of Obligations and Rights as required
     by the OCS, duly executed by the Seller;

          l) written confirmation of payment by Seller of the pre Closing
     royalty payment obligations to each of the OCS and CIIRDF; and

          m) such other separate instruments of sale, assignment or transfer
     reasonably required by the Purchaser for the consummation of the
     transactions contemplated hereby.

     6.03 DELIVERIES AND ACTIONS BY THE PURCHASER. At the Closing, the Purchaser
shall deliver, or cause to be delivered, to the Seller:

          a) (i) the Cash Payment less the Down Payment, and (ii) a cash amount
     equal to the VAT payable in respect of the Purchase Price in immediately
     available funds to an account designated by Seller in writing prior to the
     Closing;

          b) irrevocable written instructions from the Purchaser to its transfer
     agent, instructing the transfer agent to issue to the Seller the shares
     constituting the Closing Shares Payment in two certificates, the first
     representing all such shares less the Escrow Shares (which certificate
     shall be instructed to be delivered to the Seller), and the second
     representing the Escrow Shares (which certificate shall be instructed to be
     delivered to the Escrow Agent); and

          c) a certificate of the Chief Executive Officer of the Purchaser
     certifying as to (i) the incumbency of all officers of Purchaser executing
     this Agreement and any Related Documents and (ii) the resolutions of the
     Board of Directors of Purchaser authorizing the execution, delivery and
     performance by Purchaser of this Agreement and the transactions
     contemplated hereby;

          d) an Indemnification Escrow Agreement in substantially the form of
     Exhibit 6.02(i) attached hereto, duly executed by the Purchaser; and

          e) the Certificate of Assignment of Obligations and Rights as
     required by the OCS, duly executed by the Purchaser.

     6.04 CONDITIONS TO THE OBLIGATIONS OF EACH PARTY. The obligations of the
Purchaser and the Seller to consummate the Closing are subject to the
satisfaction, or waiver by the parties, of the following conditions:

          a) No provision of any applicable Law or Order shall (i) prohibit the
     consummation of the Closing or (ii) restrain, prohibit or otherwise
     interfere with the transactions contemplated by this Agreement.

          b) All actions by or in respect of or filings with any Governmental
     Authority required to permit the consummation of the Closing, and all third
     party consents necessary in connection with the consummation of the
     Closing, shall have been obtained.

          c) No proceeding challenging this Agreement or the transactions
     contemplated hereby or seeking to prohibit, alter, prevent or materially
     delay the Closing shall have been instituted by any person before any
     court, arbitrator or governmental body, agency or official nor shall they
     be pending.

          d) Purchaser, Seller and the Escrow Agent shall have executed and
     delivered the Indemnification Escrow Agreement.

     6.05 CONDITIONS TO THE OBLIGATIONS OF THE PURCHASER. The obligation of the
Purchaser to consummate the Closing is subject to the satisfaction (or waiver in
writing by the Purchaser) of the following conditions:

          a) (i) The Seller shall have performed in all material respects all of
     its covenants and obligations hereunder required to be performed by it at
     or prior to the Closing Date, (ii) the representations and warranties of
     the Seller contained in this Agreement and in any certificate or other
     writing delivered by the Seller pursuant hereto, shall be true and correct
     in all material respects at and as of the Closing Date as if made as of
     that date (except to the extent such representations and warranties
     expressly relate to an earlier date (in which case such representations and
     warranties shall be true and correct on and as of such earlier date)); and
     (iii) the Purchaser shall have received a certificate signed by the Chief
     Executive Officer of the Seller confirming the matters set forth in clauses
     (i) and (ii).

          b) There shall have not occurred any event or development,
     individually or in the aggregate, resulting in a Material Adverse Effect
     with respect to the Assets.

     6.06 CONDITIONS TO OBLIGATIONS OF SELLER. The obligation of the Seller to
consummate the Closing is subject to the satisfaction (or waiver in writing by
the Seller) of the following conditions:

          a) (i) The Purchaser shall have performed in all material respects all
     of its covenants and obligations hereunder required to be performed by it
     at or prior to the Closing Date, (ii) the representations and warranties of
     the Purchaser contained in this Agreement and in any certificate or other
     writing delivered by the Purchaser pursuant hereto shall be true and
     correct in all material respects at and as of the Closing Date, as if made
     at and as of such date (except to the extent such representations and
     warranties expressly relate to an earlier date (in which case such
     representations and warranties shall be true and correct on and as of such
     earlier date); and (iii) the Seller shall have received a certificate
     signed by an officer of the Purchaser, confirming the matters set forth in
     clauses (i) and (ii).

                                  ARTICLE VII.
                                 INDEMNIFICATION

     7.01 INDEMNIFICATION BY THE SELLER. The Seller hereby agrees to indemnify,
defend and hold harmless the Purchaser and each of its Representatives
(collectively, "PURCHASER INDEMNIFIED PERSONS") from and against any losses,
liabilities, claims, obligations, damages (including diminution in value), costs
and expenses (including reasonable attorneys' fees and all other reasonable
expenses incurred in investigating, preparing, or defending any litigation or
proceeding, commenced or threatened) (collectively, "PURCHASER DAMAGES") arising
out of or resulting from:

          a) any breach of any representation or warranty of the Seller in this
     Agreement or in any other certificate or document the Seller has delivered
     pursuant to this Agreement or any claim by a third party which if true
     would be such a breach;

          b) any breach by the Seller of any of its covenants or obligations in
     this Agreement or in any agreement or other document executed or delivered
     pursuant to this Agreement; or

          c) any liabilities relating to the Assets with respect to the period
     ending on the Closing Date, except for the Assumed Liabilities;

     7.02 INDEMNIFICATION PROCEDURE FOR THIRD-PARTY CLAIMS. Promptly after
receipt by Purchaser Indemnified Persons entitled to indemnification hereunder
(the "INDEMNIFIED PARTY") of written notice of the institution of any legal
proceeding, or of any claim or demand, asserted by a third party (a "THIRD PARTY
CLAIM") against the Indemnified Party with respect to which a claim for
indemnification is to be made pursuant to Section 7.01 herein, the Indemnified
Party shall give written notice to the Seller (the "INDEMNIFYING PARTY") of such
Third Party Claim. The Indemnifying Party shall be entitled to participate in
and to assume the defense of such Third Party Claim with counsel reasonably
satisfactory to the Indemnified Party, and after notice from the Indemnifying
Party to such Indemnified Party of such assumption of defense, and provided that
the Indemnifying Party continues to diligently pursue such defense, the
Indemnifying Party shall not be liable to such Indemnified Party for any legal
or other expenses subsequently incurred by the latter in connection with the
defense thereof. Notwithstanding the foregoing, an Indemnified Party shall in
all cases be entitled to control its defense, including the selection of
separate counsel (at the cost and expense of the Indemnifying Party), of any
Third Party Claim if such claim: (i) may result in injunctions or other
equitable remedies in respect of the Indemnified Party which would affect its
business or operations in any materially adverse manner; (ii) may result in
material liabilities which may not be fully indemnified hereunder; (iii) may
have a material adverse effect on the business or the financial condition of the
Indemnified Party (including a Material Adverse Effect on the earnings or
ongoing business relationships of the Indemnified Party) even if the
Indemnifying Party pays all indemnification amounts in full; or (iv) the
anticipated defendants in any such situation, proceeding or action include both
the Indemnified Party and the Indemnifying Party, and the Indemnified Party
shall have reasonably concluded that there may be legal defenses available to it
which are different from, additional to or inconsistent with those available to
the Indemnifying Party. The Indemnifying Party will not enter into any
settlement with respect to such Third Party Claim without the prior written
consent of the Indemnified Party unless such settlement (a) requires solely the
payment of reasonable money damages by the Indemnifying Party and (b) includes
as an unconditional term thereof the release by the claimant or the plaintiff of
the Indemnified Party and the persons for whom the Indemnified Party is acting
or who are acting on behalf of the Indemnified Party from all liability in
respect of the proceeding giving rise to the Third Party Claim.

     7.03 LIMITATIONS ON INDEMNIFICATION.

          a) Seller's total aggregate liability under Section 7.01 shall be
     limited to the Escrow Shares and/or any and all cash proceeds from the sale
     of any or all of the Escrow Shares (the "PROCEEDS") during the Escrow
     Period as defined in the Indemnification Escrow Agreement, and the Escrow
     Shares and/or Proceeds shall be the Indemnified Parties' sole recourse and
     exclusive remedy. Such indemnification shall be made first out of any
     Proceeds held by the Escrow Agent (if any) and, to the extent that the
     indemnification amount exceeds such cash amounts, out of the Escrow Shares
     held by the Escrow Agent, with the value of such Escrow Shares based on a
     price per share equal to the Ordinary Shares Price.

          b) Except in the case of fraud or willful misconduct by Seller, Seller
     shall not be liable under this Agreement for special, punitive, exemplary,
     consequential, or indirect damages, or lost profits, whether based on
     contract, tort, strict liability, other Laws or otherwise.

     7.04 EXCLUSIVE REMEDY. Except for Purchaser Damages incurred in connection
with, arising out of or resulting from fraud or willful misconduct, the
indemnification set forth in this Article VII shall be Purchaser's sole remedy
with respect to any breach by Seller of any term of this Agreement; provided
that in respect of any claims based on fraud or willful misconduct by the
Seller, the aggregate maximum liability of the Seller shall in no event exceed
the aggregate Purchase Price actually received by it.

     7.05 NO RIGHT TO OFFSET. For the avoidance of doubt and notwithstanding
anything herein to the contrary, the Purchaser shall not be entitled to offset
any amount due to it under this Agreement from any amount payable to the Seller
following the Closing (including without limitation from the First Excess
Amount, Second Excess Amount or Hired Employees Compensation).

                                  ARTICLE VIII.
                                  MISCELLANEOUS

     8.01 SURVIVAL. The representations and warranties of the Purchaser and the
Seller contained in this Agreement shall survive the Closing for a period of six
(6) months after the Closing Date.

     8.02 NOTICES. All notices, requests and other communications to either
party hereunder shall be in writing (including facsimile, telecopy or similar
writing) and shall be deemed given when delivered:

                       If to Purchaser, to:
                       Ido Gur, CEO
                       VocalTec Communications Ltd.
                       60 Medinat Ha Yehudim Street, Herzliya Pituach 46140,
                       Israel
                       Telephone: (972) 9-970-3849
                       Facsimile: (972) 9-9549323

                       with a copy (which shall not constitute notice) to:

                       Meitar Liquornik Geva & Leshem Brandwein, Law Offices
                       16 Abba Hillel Road, Ramat Gan 52506, Israel
                       Attention: Mike Rimon, Adv.
                       Telephone: (972) 3-610-3811
                       Facsimile: (972) 3-610-3687

     If to Seller, to: Jacob Bros, CEO
                       Outsmart Ltd.
                       1 Hayarden Street, Airport City, POB 112, Lod 71111,
                       Israel
                       Telephone: (972)3-9728605
                       Facsimile: (972)3-9728601

                       with a copy (which shall not constitute notice) to:

                       Naschitz, Brandes & Co., Advocates
                       5 Tuval Street, Tel-Aviv 67897, Israel
                       Attention: Gil Brandes, Adv.
                       Telephone: (972)3-6235022
                       Facsimile: (972) 3-6235106

     Each of the above persons may change their address or facsimile number or
telephone number by notice to the other persons in the manner set forth above.

     8.03 AMENDMENTS; NO WAIVERS.

          a) Any provision of this Agreement may be amended or waived if, and
     only if, such amendment or waiver is in writing and signed, in the case of
     an amendment, by the Purchaser and the Seller, or in the case of a waiver,
     by the party against whom the waiver is to be effective.

          b) No failure or delay by any party in exercising any right, power or
     privilege hereunder shall operate as a waiver thereof nor shall any single
     or partial exercise thereof preclude any other or further exercise thereof
     or the existence of any other right, power or privilege. The rights and
     remedies herein provided shall be cumulative and not exclusive of any
     rights or remedies provided by law.

     8.04 EXPENSES. All costs and expenses incurred in connection with this
Agreement shall be paid by the party incurring such cost or expense.

     8.05 SUCCESSORS AND ASSIGNS. The provisions of this Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective successors and permitted assigns. No party to this Agreement may
assign, delegate or otherwise transfer any of its rights or obligations under
this Agreement without the consent of the other party hereto, provided that
following the Closing the Seller may assign only its rights under this Agreement
to the Major Shareholder or the Major Shareholder's limited and general partners
(or any of their trustees) and provided further that Purchaser may assign its
rights and obligations under this Agreement to any of its subsidiaries or
Affiliates, but no such assignment shall relieve Seller or Purchaser of their
respective obligations hereunder which shall thereafter be joint and several as
between Seller or Purchaser and their respective assignee. Neither this
Agreement nor any provision hereof is intended to confer upon any person other
than the parties hereto any rights or remedies hereunder.

     8.06 GOVERNING LAW. This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of Israel without regard to
the conflict of laws provisions thereof. Any dispute arising under or in
relation to this Agreement shall be resolved exclusively in the competent court
in Tel Aviv-Jaffa, and each of the parties hereby irrevocably submits to the
exclusive jurisdiction of such court.

     8.07 SPECIFIC PERFORMANCE. Each of the parties acknowledges and agrees that
the other party would be damaged irreparably in the event any of the provisions
of this Agreement are not performed in accordance with their specific terms or
otherwise are breached. Accordingly, each of the parties agrees that the other
party shall be entitled to an injunction or injunctions to prevent breaches of
the provisions of this Agreement and to enforce specifically this Agreement and
the terms and provisions hereof, in addition to any other remedy to which it may
be entitled, at law or in equity.

     8.08 COUNTERPARTS; EFFECTIVENESS. This Agreement may be signed in any
number of counterparts, each of which shall be an original, with the same effect
as if the signatures thereto and hereto were upon the same instrument. Facsimile
copies of signature pages shall have the same legal effect as signed originals.
This Agreement shall become effective when each party hereto shall have received
a counterpart hereof signed by the other party hereto.

     8.09 ENTIRE AGREEMENT. This Agreement, the Schedules and Exhibits hereto,
and any other documents referred to herein constitute the entire agreement
between the parties with respect to the subject matter hereof and supersede all
prior agreements, understandings and negotiations, both written and oral,
between the parties with respect thereto. No representation, inducement,
promise, understanding, condition or warranty not set forth herein has been made
or relied upon by either party hereto.

     8.10 CONSTRUCTION. The parties have participated jointly in the negotiation
and drafting of this Agreement. In the event an ambiguity or question of intent
or interpretation arises, this Agreement shall be construed as if drafted
jointly by the parties and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any of the
provisions of this Agreement. The following rules of construction shall apply to
this Agreement:

          (a) Any reference to any local or foreign statute or law shall be
     deemed also to refer to all rules and regulations promulgated thereunder,
     unless the context requires otherwise.

          (b) The headings and titles herein are for convenience only and shall
     have no significance in the interpretation hereof.

     8.11 SEVERABILITY. Any part of this Agreement, which is found to be void,
invalid, illegal or unenforceable, shall be severed from this Agreement and
ineffective to the extent of that voidness, invalidity, illegality or
unenforceability. Such voidness, invalidity, illegality or unenforceability will
not invalidate, affect or impair the remaining provisions of this Agreement. If
a court of competent jurisdiction determines that the terms in respect of which
covenants in this Agreement are to be entered are unreasonable or unenforceable
for any reason, then this Agreement shall be reread and construed with such
terms, as may be applicable, as determined to be reasonable by a court of
competent jurisdiction and the Agreement shall be amended and construed
accordingly hereby.

     8.12 CERTAIN DEFINITIONS.

     "ACCOUNTS RECEIVABLE" shall mean (a) all trade accounts receivable and
other rights to payment from customers of Seller and the full benefit of all
security for such accounts or rights to payment, including all trade accounts
receivable representing amounts receivable in respect of goods shipped or
products sold or services rendered to customers of Seller, (b) all other
accounts or notes receivable of Seller and the full benefit of all security for
such accounts or notes and (c) any claim, remedy or other right related to any
of the foregoing.

     "AFFILIATE" shall mean, with respect to a Person, another Person that,
directly or indirectly, through one or more intermediaries, controls or is
controlled by, or is under common control with, such first Person. For this
definition, "CONTROL" (and its derivatives) means the possession, directly or
indirectly, or as trustee or executor, of the power to direct or cause the
direction of the management and policies of a Person, whether through ownership
of voting equity interests, as trustee or executor, by Contract or credit
arrangements or otherwise.

     "BUSINESS DAY" means a day other than Saturday, Sunday or any day on which
banks located in Israel are authorized or obligated to close.

     "ENCUMBRANCES" means any mortgages, pledges, liens, encumbrances, charges
or other security interests.

     "GOVERNMENTAL AUTHORITY" means any state, county, municipality or any other
political subdivision of any of the foregoing, including (A) any court,
governmental department, tribunal, arbitrator or panel of arbitrators,
authority, agency, body, board, bureau, commission, official or other
instrumentality of the State of Israel, the United States of America or any
nation, state, province, county, city or other political subdivision or similar
governing entity, (B) any person or entity exercising executive, legislative,
regulatory, judicial or administrative functions and (C) any governmental,
quasi-governmental or non-governmental body (whether executive, legislative,
judicial or administrative) administering, regulating or having general
oversight over the Business.

     "INTELLECTUAL PROPERTY" or "INTELLECTUAL PROPERTY ASSETS" means all
software, inventions, art works, patents, patent applications, processes, shop
rights, formulas, brand names, trade secrets, know-how, service marks, trade
names, trademarks, trademark applications, copyrights, source and object codes,
customer lists, drawings, ideas, algorithms, processes, computer software
programs or applications (in code and object code form), tangible or intangible
proprietary information and any other intellectual property and similar items
and related rights owned by or licensed to the Seller or used in the Business,
together with any goodwill associated therewith and all rights of action on
account of past, present and future unauthorized use or infringement thereof.

     "KNOWLEDGE" or "AWARE OF" (or a similar phrase) of the Seller means the
actual knowledge or awareness, as applicable, of either of the Company's CEO or
the Company's CFO or the knowledge or awareness, as applicable, that the
Company's CEO or the Company's CFO would be reasonably expected to have of such
fact, circumstance, event or other matter after reasonable inquiry.

     "LEASE" shall mean any lease or rental agreement pertaining to the
occupancy by the Seller or the use by the Business of any improved space on any
Real Property.

     "LIABILITIES" shall mean with respect to any Person, any liability or
obligation of such Person of any kind, character or description, whether known
or unknown, absolute or contingent, accrued or un-accrued, disputed or
undisputed, liquidated or un-liquidated, secured or unsecured, joint or several,
due or to become due, vested or unvested, executory, determined, determinable or
otherwise, and whether or not the same is required to be accrued on the
financial statements of such Person.

     "MAJOR SHAREHOLDER" means Thales Technologies L.P., a limited partnership
organized under the laws of the state of Israel. For the avoidance of doubt, the
partners and officers of Thales Technologies L.P. shall not be deemed Major
Shareholders under this Agreement.

     "MATERIAL ADVERSE EFFECT" with respect to the Assets shall mean any change
or event (or any that, insofar as is reasonably foreseen, is reasonably expected
to result in any change or event) that is adversely affecting or is reasonably
expected to adversely affect in a material manner the Assets.

     "PERSON" means an individual or a corporation, company, limited liability
company, sole proprietorship, joint venture, partnership, trust, estate,
unincorporated organization, association, or other entity.

     "REPRESENTATIVES" shall mean, with respect to any Person, such Person's
Affiliates, directors, officers, employees, agents, consultants, advisors and
other representatives, including legal counsel, accountants and financial
advisors.

                            -SIGNATURE PAGE FOLLOWS-

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers effective as of the day
and year first above written but executed on the dates set forth below.

                                    PURCHASER:

                                    VOCALTEC COMMUNICATIONS LTD.

                                    By: ________________________________________
                                    Name: ______________________________________
                                    Title: _____________________________________

                                    SELLER:

                                    OUTSMART LTD.

                                    By: ________________________________________
                                    Name: ______________________________________
                                    Title: _____________________________________

AGREED AND ACKNOWLEDGED SOLELY FOR THE PURPOSE OF SECTION 4.03:

MAJOR SHAREHOLDER:

THALES TECHNOLOGIES L.P

By: ________________________________________
Name: ______________________________________
Title: _____________________________________

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