Document:

EXHIBIT 4.18

                              OUTSOURCING AGREEMENT

This Outsourcing Agreement (this "Agreement"), entered into as of the 7th day of
November, 2004 by and between One Software Technologies (O.S.T.) Ltd., a company
organized and existing under the laws of the State of Israel (the "Contractor");
and Attunity  Software  Services (1991) Ltd. (a/k/a "Meyad") and Attunity Israel
(1992) Ltd.,  each a company  organized and existing under the laws of the State
of Israel (collectively, the "Company").

                                   WITNESSETH:

WHEREAS,  the Company provides, among other things, certain software services to
          certain  customers,  which it now  desires  to  outsource  to  another
          entity; and

WHEREAS,  the Contractor is prepared to provide the outsourcing  services to the
          Company upon the terms and conditions set forth herein; and

WHEREAS,  the  Contractor   possesses  the  appropriate   degree  of  knowledge,
          expertise,  staff and  equipment to perform the  outsourcing  services
          according to the terms and conditions set forth herein;

NOW THEREFORE, in consideration of their mutual covenants and agreements
hereinafter set forth, the parties hereto hereby agree as follows:

1.   Definitions

     In this Agreement,  the following  capitalized terms shall have the meaning
     ascribed to them below, unless otherwise provided herein:

     1.1. "Affiliate"  with  respect  to  any  entity  means  any  other  entity
          controlling,  controlled by or under common  control with such entity.
          As used  in this  definition,  the  term  "control"  means  direct  or
          indirect ownership or voting control of fifty percent (50%) or more of
          the equity or voting  securities  of the entity in  question or having
          the power to elect a majority  of the board of  directors  (or similar
          governing body) of the entity in question.

     1.2. "Confidential  Information"  means any information,  including but not
          limited to any  information  relating to either Party's product plans,
          designs,   costs,   prices,   finances,   marketing  plans,   business
          opportunities,  personnel,  research, development or know-how, that is
          provided in connection  with this Agreement  including but not limited
          to, the Customer's data and for Company, including but not limited to,
          the Intellectual Property Rights; provided however, that "Confidential
          Information"  will not  include  information  that:  (i) is or becomes
          publicly known or available  through no fault of the receiving  Party;
          (ii) the receiving Party can show it is independently developed by the
          receiving Party; (iii) is lawfully obtained from a third party who has
          the right to make such  disclosure;  or (iv) the  receiving  Party can
          show it was  known to the  receiving  Party  prior  to its  disclosure
          through no fault or breach of the receiving  Party or a third party of
          any confidentiality undertakings towards the disclosing Party.

     1.3. "Consultants"   means  the  individuals  engaged  by  the  Company  as
          consultants (the so-called "freelance" employees) immediately prior to
          the Effective Date in

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          connection with providing the Services, a list of which is included in
          Exhibit A1 hereto,  which also  includes  details  pertaining  the key
          terms of such engagement with the Company.

     1.4. "Consulting Fees", "Maintenance Fees" and "Fees" each have the meaning
          set forth in Section 8.1 (Fees).

     1.5. "Consulting  Services"  means  consulting  services  provided  by  the
          Company  to  certain  of its  Customers  (including  as related to the
          MF-ERP system,  otherwise  known as "Mancal 2000"),  which  Contractor
          shall  provide  as a  sub-contractor  for  Company  pursuant  to  this
          Agreement.  A  detailed  list of such  Customers,  along  with a brief
          description of the Consulting  Services provided to each Customer,  is
          attached as Exhibit B hereto as well as consulting  services performed
          pursuant to the New Agreements.

     1.6. "Customer" means a customer of the Company that,  immediately prior to
          the Effective Date,  received  Consulting  Services and/or Maintenance
          Services  from  the  Company,  in  accordance  with  Exhibits  B and C
          respectively.

     1.7. "Effective Date" has the meaning set forth in Section 2.1 (Term).

     1.8. "Employees"  means the employees  employed by the Company  immediately
          prior to the Effective Date in connection with providing the Services,
          a list of which is included in Exhibit A2 hereto,  which also includes
          details pertaining the key terms of such employees employment with the
          Company.

     1.9. "Employee  Declaration"  has the  meaning  set forth in Section  6.1.1
          (Employees).

     1.10."Hired   Employee"   has  the   meaning   set  forth  in  Section  6.1
          (Employees).

     1.11."Intellectual  Property  Rights" means patents,  patent  applications,
          patent rights,  trademarks,  copyrights  (including  those in computer
          programs,  drawings,  documentation and  specifications),  proprietary
          rights in information  (including in data, trade secrets,  inventions,
          discoveries,  know-how, formulae, processes, technical information and
          business information),  license rights under the intellectual property
          rights of third parties,  and all other  intellectual  property rights
          whether or not subject to statutory registration or protection.

     1.12."Maintenance   Services"  means  maintenance  services  and  ancillary
          services, including, but not limited to, management services, provided
          by the Company to certain  past and  existing  customers,  for "Mancal
          2000".  A  detailed  list  of  such  Customers,  along  with  a  brief
          description of the Maintenance  Services  provided to each Customer is
          attached as Exhibit C hereto as well as maintenance services performed
          pursuant to the New Agreements.

     1.13."Managers"  has  the  meaning  set  forth  in  Section  4.5  (Programs
          Manager).

     1.14."Minimum  Level" has the  meaning  set forth in Section  8.4  (Minimum
          Level).

     1.15."Parties"  means the parties to this  Agreement and "Party"  refers to
          either of Parties.

     1.16."Services"  shall mean the  Maintenance  Services  and the  Consulting
          Services.

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     1.17."Service  Agreements"  means  agreements  between  the Company and the
          Customers for the provision of the Consulting Services and Maintenance
          Services, including New Agreements.

     1.18. "Term" has the meaning set forth in Section 2.1 (Term).

     1.19."Working Day" means Sunday through Thursday,  except for days that are
          designated as statutory public holidays in Israel.

2.   Term of Agreement

     2.1. Term.  This  Agreement  will be  effective as of November 1, 2004 (the
          "Effective  Date")  and remain in effect for a period of two (2) years
          thereafter,  and thereafter as may be renewed  pursuant to Section 2.2
          below (the "Term"),  unless terminated  earlier pursuant to Section 11
          (Termination).

     2.2. Renewal.  This Agreement  shall be  automatically  renewed for two (2)
          successive  two (2) year periods,  unless one Party provides the other
          Party with written notice of its desire not to renew this Agreement at
          least ninety (90) days prior to the commencement of each such two-year
          period.

3.   Representations, Warranties and Covenants

     3.1. Contractor. Contractor hereby represents, warrants and covenants that:
          (a) all  corporate  actions  required  to be taken by or on  behalf of
          Contractor,  authorizing  the execution,  delivery and  performance of
          this Agreement (and all related  documents) have been duly taken, that
          Contractor  has full  authority to enter into this  Agreement  (and to
          execute all related  documents),  and the person/persons  signing this
          Agreement (and all related documents) on Contractor's  behalf are duly
          authorized  to bind it; and (b) subject to the  retention of the Hired
          Employees by the Contractor,  as provided under Section 6.1 hereunder,
          it has the necessary experience, expertise, capability and manpower to
          carry out its  obligations  and  undertakings  hereunder and under all
          other related documents and agreements ancillary hereto.

     3.2. Company.  Company hereby  represents,  warrants and covenants that all
          corporate  actions  required  to be taken by or on behalf of  Company,
          authorizing the execution,  delivery and performance of this Agreement
          (and  all  related  documents)  have  been  duly  taken,  it has  full
          authority to enter into this  Agreement  (and all related  documents),
          and the  person/or  persons  signing this  Agreement  (and all related
          documents) on Company's behalf are duly authorized to bind it.

     3.3. Cooperation  by Parties.  The Parties  will use good faith  efforts to
          reasonably  cooperate  with each other in all matters  relating to the
          provision of the Services,

4.   Services

     4.1. Services.  Contractor  shall (i)  perform  and  render  the  Services,
          including,  but not limited to, supplying manpower services to perform
          and render the Services;  and (ii) provide management services for the
          performance  of the Services,  subject to the terms and conditions set
          forth in this Agreement. The Contractor

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          acknowledges that certain Services require the allocation of employees
          for onsite (Customer's facility) maintenance and support on an ongoing
          basis.

     4.2. Additional Obligations.

          4.2.1. The Contractor shall punctually and diligently provide, execute
               and perform the Services, providing the Company and the Customers
               with the benefits of Contractor's best, informed and professional
               judgment and expertise and, with respect to Maintenance Services,
               in  accordance  with the general  terms of  services  provided in
               Exhibit D hereto.  Without  derogating  from the  foregoing,  the
               Contractor  shall  perform the Services in a manner that will not
               cause the  Company  to be in breach of any of the New  Agreements
               (as defined in Section 4.4).

          4.2.2. Without  derogating  from Section 4.2.1 above,  the  Contractor
               shall perform the Maintenance Services at least in the same level
               as Exhibit D hereto.

          4.2.3. During the Term, the Contractor  shall obtain and maintain,  at
               its  own  expense,  industry  standard  insurance  coverage  from
               reputable insurance companies. The Contractor, upon the Company's
               request,   shall  provide  the  Company  with  evidence  of  this
               insurance coverage signed by an authorized  representative of the
               insurance  company.  The  coverage   documentation  must  contain
               customary  provisions for thirty (30) day advance  written notice
               to the Company of any change, non-renewal or cancellation.

          4.2.4. Contractor undertakes to promote the activity of the Services.

     4.3. Customer's  Decisions.  Without  derogating  from  the  generality  of
          Section 4.2 above,  it is further hereby agreed that in respect of the
          Service  Agreements  and in relation to the  provision,  carrying out,
          completion and warranty of the Services hereunder:  (a) the Contractor
          shall  conduct the Services in a manner which shall be no less then as
          specified in Exhibit I attached  hereto;  and (b) the Contractor shall
          not be  entitled  as against  the  Company to  dispute,  or  otherwise
          challenge or allege  invalidity or  inapplicability  of any Customer's
          decision that is or becomes at any time finally binding on the Company
          under the Service Agreements.

     4.4. New  Services/Customers.  In  the  event  of the  provision  of new or
          extended  services to a Customer(s)  and/or new  customers  during the
          Term,  the  Contractor  may negotiate  and execute such  agreements on
          behalf  of  the  Company   (which   Services  shall  be  performed  by
          Contractor);  provided that (i) such agreement(s) are for provision of
          services in the ordinary  course of business and are  consistent  with
          the Company's  pricing  policy and  guidelines  set forth in Exhibit E
          hereto,  as may be  modified  from time to time,  (ii) the  Company is
          notified of such  agreement(s)  and the terms  thereof,  and (iii) any
          agreement (or a series of related  agreements) which is for amounts or
          value that exceeds $20,000 (except that with respect to new customers,
          amounts  or value  that  exceeds  $10,000)  , , shall  be  subject  to
          Company's  prior  written  consent,  which  shall not be  unreasonably
          withheld  (the "New  Agreements").  For the  avoidance  of doubt,  the
          invoices for services  shall be issued by the Company , the agreements
          will be signed by the company and where  applicable  the Company  will
          confirm the PO'S issued by customers.

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     4.5. Managers.  As part of the management of the Services,  each of Company
          and Contractor will designate a person to be a single point of contact
          to handle  matters  related to the day-to-day  administration  of this
          Agreement, including, but not limited to, maintaining and assisting in
          renewal of  Customer  contacts  and  Services  (the  "Managers").  The
          initial Manager on behalf of the Company shall be: Menachem Brouk; and
          the  initial  Manager  for the  Consulting  Services  on behalf of the
          Contractor  shall be:  Itzik  Bonim,  and the initial  Manager for all
          other services under this Agreement on behalf of the Contractor  shall
          be David Alush.

5.   Reports, Quality and Inspection

     5.1. Reports.  The Company shall be entitled to full  transparency  insofar
          such data pertains to the Services  (including the Competing  Services
          (as defined below)),  including performance thereof by the Contractor.
          Without  derogating  from the  foregoing,  (i) the Company  shall have
          access to the  Contractor's  management and control  computer  systems
          and/or books insofar such data pertains to the Services,  and (ii) the
          Contractor  shall provide to the Company,  promptly upon the Company's
          request and in any event at least on a monthly  basis,  reports on the
          Services  provided  by it to the  Customers,  in  form  and  substance
          reasonably acceptable to the Company.

     5.2. Inspections. In the event that the Company receives a complaint from a
          Customer  regarding  the  Services  or  the  Contactor's   performance
          thereof,  the  Contractor  shall allow the Company to perform  quality
          control audits and inspections of the Services,  during usual business
          hours and upon reasonable prior notice.

6.   Employees, Equipment and Facilities

     6.1. Employees.

          6.1.1. Within ten (10) days from the Effective  Date,  the  Contractor
               will offer employment (and a  representative  of the Company will
               assist Contractor in coordinating the same) to all or part of the
               Employees and Consultants, effective as of January 1, 2005 ("Hire
               Date"),  it being  understood  that the proposed salary and other
               terms  of  such  Employee  or  Consultant   employment  with  the
               Contractor   shall  be  the  same  as  the  current   salary  (or
               remuneration as to Consultants)  and other terms of employment of
               such Employee (or engagement with  Consultant).  Each Employee or
               Consultant who accepts the  Contractor's  offer of employment and
               signs an  Employee  Declaration  shall be referred to herein as a
               "Hired  Employee".  Each of the Hired Employees will be requested
               to execute and deliver (i) to the Contractor a declaration  that,
               among other things, he or she acknowledges his or her willingness
               to be employed by or engage with (as relevant) the  Contractor as
               of the Hire Date on the  conditions  specified in the  Contractor
               offer (an "Employee  Declaration"),  (ii) to the Company a waiver
               that, among other things, he or she acknowledges that the Company
               has fulfilled all of its  obligations  towards the Hired Employee
               and that he or she has no claims  whatsoever  against the Company
               and/or the  Contractor  with respect to or stemming from the term
               of his or hers employment or engagement,  respectively,  with the
               Company.  It is hereby agreed by the parties that (i) the Parties
               shall coordinate the processing of salary payments to the Hired

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               Employees during a transition  period starting from the Effective
               Date and  ending  on the Hire  Date,  and (ii)  Contractor  shall
               reimburse  the Company for the salaries and social  benefits paid
               to Hired  Employees for the period between the Effective Date and
               the Hire Date.

          6.1.2. To the extent that, after consultation  between the Parties, an
               Employee is being transferred rather than being terminated as set
               forth  hereinabove,   then,  within  sixty  (60)  days  from  the
               Effective Date, the Company shall transfer to Contractor the full
               amounts of all social  benefits  allocated by the Company for the
               Hired  Employees,  including,  but not limited to, severance pay,
               recreation  pay,  vacation  pay,  sick  pay,   retirement  funds,
               managers'   insurance    policies,    education   funds   ("Keren
               Hishtalmut")  and any  other  funds  to  which  any of the  Hired
               Employees is entitled as of the Hire Date as specified in Exhibit
               A1 or A2.

          6.1.3. The  Company  shall  indemnify  Contractor  against any losses,
               damages or  expenses  incurred by  Contractor  as a result of any
               claim or suit raised by any Hired Employee, whose cause of action
               arises out of or relates to a period prior to termination of such
               Hired Employee's  employment by the Company. The Contractor shall
               indemnify  Company  against  any  losses,   damages  or  expenses
               incurred  by Company  as a result of any claim or suit  raised by
               any  Hired  Employee,  whose  cause of  action  arises  out of or
               relates  to  a  period   following   termination  of  such  Hired
               Employee's employment by the Company.

     6.2. Equipment.  Certain computer equipment currently in use by the Company
          for providing and  rendering the Services to the  Customers,  as fully
          detailed in Exhibit F hereto, shall be purchased by the Contractor for
          the  consideration of $32,805 as specified in Exhibit F, in 24 monthly
          installments  against issuance of invoice by the Company, and shall be
          delivered to Contractor's facilities, at the Contractor's expense (the
          "Equipment").  The  Company  shall have the  right,  within 10 days of
          execution  of this  Agreement,  to single out certain  equipment  from
          Exhibit F,  which  total net book  value as stated  thereof  shall not
          exceed  $8,000,  as  Equipment  which  shall not be  purchased  by the
          Contractor  according to this  Agreement.  The Parties shall both have
          the right to use the  Equipment  during the Term for Attunity  Connect
          activity, as to the Company, and the Services, as to the Contractor.

     6.3. Facilities.  Certain  facilities  currently  leased by the  Company in
          connection with providing and rendering the Services to the Customers,
          as fully  detailed  in  Exhibit  G1  hereto,  shall be  sub-let by the
          Company  to the  Contractor,  subject  to the  same  terms  (including
          payment  of  rent)  and  conditions  as the  Company's  lease  of such
          facilities,  which lease  agreement  is attached as Exhibit G2 hereto,
          for the duration of the Term. It is hereby  clarified that  Contractor
          shall bear only 80% of all payment of rent and other expenses relating
          to the Facilities and the remaining 20% shall be borne by the Company.
          Upon  termination  or  expiration  of this  Agreement  for any  reason
          whatsoever,  all of such sub-leases shall terminate. The Company shall
          have the right to use the Facilities  during the Term for its Attunity
          Connect activity.

7.   Customers

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     7.1. Service   Agreements.   For  the   avoidance  of  doubt,   renewal  or
          modification  of Services  Agreements and entering into new agreements
          with  new  customers  of the  Company  shall be made  pursuant  to the
          provisions of Section 4.4 above.

8.   Fees; Payment

     8.1. Fees.  In  full  consideration  of the  Services  provided  hereunder,
          Contractor will be entitled to receive from the Company:

          8.1.1. Consulting  Fees:  95% of revenues of the Company  derived from
               Consulting Services as of the Effective Date ("Consulting Fees");
               and

          8.1.2. Maintenance  Fees: 57% of revenues of the Company  derived from
               Maintenance  Services  as of the  Effective  Date,  based  on the
               Company' quarterly  consolidated  financial reports,  except that
               with respect to revenues (within each year) that are in excess of
               US$586,000,  70% of such  excess  annual  revenues  ("Maintenance
               Fees" and together with the Consulting Fees, the "Fees").

          The  Fees  cover  all  costs,  expenses,   reimbursements,   etc.  and
          Contractor shall not be entitled to any additional  compensation other
          than that stated hereinabove.

     8.2. Payment of  Consulting  Fees.  Payment of the  Consulting  Fees by the
          Company to the Contractor shall be made on a monthly basis,  within 15
          days following receipt of a monthly invoice (issued subject to receipt
          of the relevant  data from  Company).  The monthly  invoices  shall be
          calculated  so that 80% of the  Consulting  Fees  shall be paid to the
          Contractor upon invoicing the Customer for Consulting Services and the
          remaining 20% of the  Consulting  Fees shall be paid to the Contractor
          upon the  Company's  actual  receipt of payment  from the Customer for
          such Consulting Services, in the monthly payment immediately following
          such payment by the Customer.

     8.3. Payment of Maintenance  Fees.  Payment of the Maintenance  Fees by the
          Company to the Contractor shall be made on a monthly basis,  within 15
          days following receipt of a monthly invoice (issued subject to receipt
          of the relevant  data from  Company).  The monthly  invoices  shall be
          calculated  so that 80% of the  Maintenance  Fees,  calculated  as one
          twelfths of the annual  maintenance  fees recognized by the Company in
          the preceding  month shall be paid to the Contractor no later than the
          15th  day  of  the  following  month  and  the  remaining  20%  of the
          Maintenance  Fees shall be paid to the  Contractor  upon the Company's
          actual  receipt  of payment  from the  Customer  for such  Maintenance
          Services, in the monthly payment immediately following such payment by
          the Customer.  It is hereby  clarified that as to the maintenance fees
          paid by Customers to Company preceding the Effective Date and relating
          to Services to be performed  following the Effective Date,  Contractor
          shall be entitled to fees  pro-rata to the time  Maintenance  Services
          are provided by it according to this Agreement,  calculated  according
          to the  prepaid  incomes  and incomes  receivable  attached  hereto as
          Exhibit H.

     8.4. Minimum Level for Contractor.  In the event that,  commencing with the
          second quarter  (i.e.,  after the lapse of two  consecutive  quarters)
          following the  Effective  Date,  Contractor's  actual costs solely for
          providing the Services hereunder shall be

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          equal to or  exceed  95% of the Fees  ("Minimum  Level"),  for any two
          consecutive   quarters,   as   reported  in   Contractors'   quarterly
          consolidated and reviewed financial reports,  then Contractor shall be
          entitled, within 30 days following the publication of said reports, to
          request the  Company to increase  the Fees in a manner that will allow
          Contractor to receive Fees,  starting the next quarter and thereafter,
          that will meet the Minimum  Level.  Should the Company  object to such
          request or not respond to it within 7 days thereafter,  the Contractor
          may, within 7 days thereafter,  terminate this Agreement in accordance
          with Section 11 (Termination) by providing the Company a 60 days prior
          written notice.

     8.5. Minimum Consulting Services Level.  Notwithstanding  Section 6.1 above
          and without derogating from Section 10.3 below,  Contractor undertakes
          to  employ  at least  nine (9)  Employees  and/or  Consultants  in the
          provision of  Consulting  Services  during the Term.  Should,  despite
          Contractor's efforts to employ such service providers in the provision
          of Consulting  Services in accordance with this Agreement,  the number
          of such Employees and/or  Consultants (or substitute service providers
          engaged in Consulting  Services  under this  Agreement)  shall be less
          then nine (9) (the  "Service  Providers"),  calculated  on a quarterly
          average of the revenue  derived  from  Consulting  Services,  then the
          Parties shall negotiate in good faith a way to rectify the situation.

     8.6. Supporting   Material.   All  invoices   issued   hereunder  shall  be
          accompanied  by  reasonable  documentation  and/or  explanatory  notes
          supporting the invoiced charges.  For the sake of clarification,  such
          supporting   material  will  be  acceptable  under  this  Section  8.5
          irrespective  of whether  it is  contained  in,  and/or  delivered  in
          electronic and/or computerized  formats or whether it is contained in,
          and/or delivered in, a non-electronic medium.

     8.7. Tax. All Fees are  exclusive of V.A.T.,  if  applicable.  Any payments
          made by the Company to the Contractor under this Agreement are subject
          to any  withholding  tax  obligations  pursuant to applicable law. Any
          stamp tax which shall be due, if due,  shall be borne  equally by both
          parties.

     8.8. Nonpayment by Customers.  To the extent that any Customer fails to pay
          the  Company  and  thereby  Contractor  is not paid  (when due) by the
          Company  with  respect to  Services  provided to such  Customer,  then
          Contractor  may cease  providing the Services to such Customer upon 14
          days prior written notice to the Company.  Similarly,  if any Customer
          fails to pay the Company for any Services provided to such Customer by
          Contractor, the Company may instruct Contractor to cease providing the
          Services to such Customer upon 7 days prior written notice.  In either
          event, the parties shall consult prior to making any decision to cease
          providing  the  Services  and, at the  Company's  reasonable  request,
          Contractor  shall cooperate with the Company in its efforts to collect
          fees from Customers.

9.   Indemnification

     9.1. Indemnity.  Subject to Company's  fulfillment of its obligations under
          Section 8 hereinabove,  the Contractor  shall, at all times indemnify,
          hold harmless, and defend Company, its officers, directors,  insurers,
          Affiliates,  agents and  employees  from and against any and all loss,
          cost, liability or expense (including costs and

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          reasonable fees of attorneys and other  professionals)  arising out of
          or in  connection  with  the  provision  of  the  Services  hereunder,
          including  that a  contractual  obligation  of the  Company  under the
          Services Agreement was breached as a result of the Services or was not
          performed.

     9.2. Cooperation.  Company will provide prompt written notice to Contractor
          of any claim or the  assertion of a claim by a third party giving rise
          to the  indemnity set forth in Section 9.1 above,  provided,  however,
          that any  failure  to do so shall not  limit any of the  rights of the
          Company  (except  and  only  to the  extent  such  failure  materially
          prejudices  the defense of such legal  proceeding).  Upon such notice,
          Contractor  shall have the right to defend  against any such claims or
          actions filed against Company,  and to select counsel for such defense
          reasonably  acceptable  to Company,  and  Contractor,  at its expense,
          shall pay all costs and expenses associated  therewith.  Company shall
          cooperate  reasonably  with  Contractor,  in  supporting  the  defense
          against the claim or assertion.

10.  Confidentiality; Proprietary Information.

     10.1.Confidentiality.   Each  Party  shall   protect   the  other   Party's
          Confidential  Information from unauthorized  dissemination and use its
          best  efforts  to  prevent  inadvertent   disclosure  of  Confidential
          Information to others,  and shall treat the  Confidential  Information
          with at least the same  degree of care  that each such  Party  uses to
          protect its own like information,  but at a minimum, with a reasonable
          degree of care or, a higher  standard of care if reasonable  under the
          circumstances. Each Party shall not use the other Party's Confidential
          Information  for purposes  other than those  necessary to perform this
          Agreement and only employees of the receiving Party who have a need to
          know such  Confidential  Information  will have access  thereto.  Each
          Party  shall  not  disclose  to  third   parties  the  other   Party's
          Confidential  Information  without  the prior  written  consent of the
          other  Party.  Immediately  upon  termination  or  expiration  of this
          Agreement,  or upon the request of a Party prior to the termination or
          expiration  of this  Agreement,  each  Party  shall  return  the other
          Party's  Confidential  Information,  and all  copies  thereof  and all
          documents  or  things  containing  any  portion  of  any  Confidential
          Information,  or obtain  written  approval for the  destruction of the
          other Party's Confidential Information, and all copies thereof, and in
          such case, shall provide a written  certificate of destruction  within
          thirty (30) days after such  destruction.  It is hereby clarified that
          both parties  shall be entitled to disclose  Confidential  Information
          pursuant to any  statutory  or  regulatory  authority  or court order;
          provided it gives  notice to the other  Party as soon as possible  and
          such disclosure is made only to the extent so required.

     10.2.Proprietary  Information.  All Confidential Information of the Company
          and any improvements to any designs,  plans,  inventions,  concepts or
          ideas  of  the  Company,   including,   without   limitation,   during
          Contractor's  performance under this Agreement, are proprietary to the
          Company  and  shall  at their  inception  be and  remain  the sole and
          exclusive  property  of the  Company.  Parties  agree  that any  idea,
          discovery  or  improvement,  which is  conceived  or first  reduced to
          practice  by any  Party  in  connection  with any  work  performed  by
          Contractor or Hired  Employees using the  Confidential  Information of
          the Company, shall be the sole property of the Company.

10.3. Supply of Services.

                                       9

<PAGE>

     10.3.1. During the Term,  the  Contractor  may not,  directly or indirectly
          (including  through its Subsidiaries,  of which it holds more than 50%
          of the share capital or voting  rights)  supply  services  which:  (i)
          substitute  one service  provider  (Employee,  Consultant or the like)
          with  another,  to render  Consultant  Services  actually  rendered to
          Customers;  (ii) expand the number of service providers to Customer at
          the services  actually rendered to it; or (iii) are related to "Mancal
          2000"  (collectively,   the  "Competing  Services"),  except  if  such
          services are provided on behalf of the Company in accordance  with the
          provisions  of  this  Agreement.  To  the  extent  this  Agreement  is
          terminated, then for a period of one year thereafter, Contractor shall
          not, directly or indirectly, supply the Competing Services.

     10.3.2. In the event that Customer shall desire,  or should  Contractor (or
          any of its subsidiaries) shall desire to offer a Customer,  to replace
          "Mancal  2000" with an  alternative  ERP system,  Contractor  shall be
          entitled  to do so subject to the prior  written  approval of Company.
          Notwithstanding  the aforesaid,  this provision shall not apply to any
          sale by Contractor to, Delcol and Iscar, all such sales not subject to
          this Agreement.

11.  Termination

     11.1.Termination.   Either  Party  may   terminate   this   Agreement   (i)
          immediately,  if the other  Party shall  voluntary  file a petition in
          bankruptcy  or  if  any  involuntary   petition  under  bankruptcy  or
          insolvency laws is instituted  against the other Party and not stayed,
          enjoined,  or  discharged  within  forty-five  (45)  days  from  their
          commencement;  and (ii) if the other Party's failure to perform any of
          its obligations  under this Agreement was not cured within thirty (30)
          days after providing it with written notice  requiring to correct such
          failure and, with regard to the Company,  if the Company failed to pay
          the  Contractor  its fees and such failure was not cured within thirty
          (30) days after  providing  it with  written  notice  requiring  it to
          correct such failure;  (iii) upon mutual written  consent;  or (iv) by
          Contractor, as set forth in Section 8.4 above.

     11.2.Termination by Contractor.  Contractor shall have a right to terminate
          this  Agreement  if (i)  less  than  fifteen  (15)  of  the  Employees
          (including  Consultants)  from the list  attached  as  Exhibit  A1 and
          Exhibit  A2,  or  (ii)  less  than  3 of  those  Employees  (including
          Consultants)  from the list  attached as Exhibit A1 and Exhibit A2 who
          are  indicated as key  Employees  (by an asterisk on those  exhibits),
          accept  Contractor's  offer of  employment  as set forth in Section 6.
          Contractor's  right  to  terminate  this  Agreement  as  aforesaid  is
          exercisable  for a period of 10 days  following the Effective Date and
          this  Section  11.2  shall be  deemed  null and  void  within  10 days
          following the Effective Date.

     11.3.Effect  of  Termination.   Upon  termination  or  expiration  of  this
          Agreement for any reason whatsoever:

          11.3.1.  Contractor  will,  to the  extent and at times  specified  by
               Company, stop all outstanding  Services,  incur no further direct
               costs,  which are not essential to its performance of obligations
               under this  Agreement,  and protect all property in which Company
               has or may acquire an  interest.  Company will have the option to
               request that Contractor  complete work in process pursuant to any
               Services provided on the date of termination and, in such

                                       10
<PAGE>

               case,  Contractor  shall  complete  such   work-in-process;   for
               remaining work-in-process not to be completed as per Company stop
               work  order,   provided  Company  payment  of  all  fees  due  to
               Contractor  as of  the  termination  and a  reasonable  pro  rata
               percentage of the finished Services price;

          11.3.2. Company will compensate  Contractor for all Services performed
               by  Contractor  as of the  termination  date  pursuant to Section
               11.3.1 above;

          11.3.3. Company may, at its sole  discretion  and subject to Employees
               consent,  re-hire  any Hired  Employee  that  transferred  to the
               employ of the Contractor  pursuant to and subject to the terms of
               Section 6.1 (Employees), mutatis mutandis, or any other employees
               that are employed at that time by the  Contractor  to perform and
               render the Services.  It is hereby  clarified that should Company
               request  Contractor  to complete  work in process as specified in
               Section 11.3.1 above, Company shall be entitled to re-hire only a
               part of such  Employees  that is not necessary for  Contractor to
               complete work in process (and once the work is completed, Company
               be entitled to rehire those Employees as well).

          11.3.4. Upon  termination  or  expiration  of this  Agreement  for any
               reason whatsoever,  the Equipment shall be promptly resold to the
               Company in good and working  condition except for reasonable wear
               stemming from normal and reasonable  use, at the prices stated in
               Exhibit F, less depreciated cost according to generally  accepted
               accounting principles.

          11.3.5. All of the sub-leases of facilities  sub-let by the Company to
               the  Contractor,  as  detailed in Exhibit  G1,  shall  terminate,
               pursuant to the provisions of Section 6.3 (Facilities).

          11.3.6. Each Party will return to the other,  freight  collected,  all
               materials that contain the other's  Confidential  Information and
               all copies  thereof and all  documents or things  containing  any
               portion of any  Confidential  Information,  or if the other Party
               gives written  instructions  to do so, destroy all such materials
               and copies  thereof and all  documents or things  containing  any
               portion of any Confidential Information,  and provide the other a
               written  certificate of destruction within thirty (30) days after
               such destruction.

          11.3.7.  Contractor  will  reasonable  ensure  a  smooth  and  orderly
               transition of the provision of the Services to Company.

12.  General Terms

     12.1.Relationship  of the  Parties.  Each of the Parties  will at all times
          during  the  Term  act  as,  and  will  represent  itself  to  be,  an
          independent contractor.  Without derogation from Section 4.4 above, no
          Party  will have any  right or  authority  to  assume  or  create  any
          obligations or to make any  representations or warranties on behalf of
          the other  Party  whether  express,  implied,  the  appearance  of, or
          otherwise to bind the other Party in any respect whatsoever.

     12.2.Assignment.  The rights and  liabilities  of the  Parties  hereto will
          inure to the benefit of the Parties  and their  respective  successors
          and permitted assigns. This

                                       11
<PAGE>

          Agreement is not  assignable by the Parties  without the prior written
          consent of the other  Party.  Notwithstanding  the  foregoing,  either
          Party may assign its rights and  obligations  hereunder  to (i) any of
          its Affiliates  and/or (ii) any assignee in connection  with a merger,
          consolidation or acquisition of all or substantially all of the assets
          of the  party by such  assignee,  provided,  that  such  Affiliate  or
          assignee  shall  agree in  writing to be bound by this  Agreement  and
          deliver such instrument to the non-assigning party.

     12.3.Publicity.  Unless  otherwise  agreed by the  Parties  in  writing  or
          required  by law,  regulation  or under the  requirement  of any stock
          exchange, all press releases, conferences,  interviews or other public
          announcements,  in whatever form, in relation to this Agreement, shall
          be coordinated by the Parties prior to  publication.  Even if required
          by law,  regulation  or the  requirement  of any stock  exchange,  the
          Parties  will use their  reasonable  best efforts to discuss with each
          other the  content of any notice  required  prior to  dispatch  of the
          same.

     12.4.No Third-Party  Beneficiaries.  This Agreement is for the sole benefit
          of  the  Parties  and  their  permitted  assigns  and  nothing  herein
          expressed  or implied will give or be construed to give to any person,
          other  than the  Parties  and such  permitted  assigns,  any  legal or
          equitable rights hereunder.

     12.5.Severability   of  Provisions.   If  for  any  reason  an  arbitration
          proceeding or a court of competent jurisdiction finds any provision of
          this Agreement or portion thereof to be unenforceable,  such provision
          shall be  construed,  to the  extent  feasible,  so as to  render  the
          provision  enforceable,  and if no feasible  interpretation would save
          such  provision,  it  shall be  severed  from  the  remainder  of this
          Agreement,  which  shall  remain in full force and  effect  unless the
          severed  provision is essential and material to the rights or benefits
          received by any Party  hereto.  In such event,  the Parties  shall use
          their best efforts to negotiate,  in good faith,  a substitute,  valid
          and  enforceable  provision or agreement that most nearly  effectuates
          the Parties' intent in entering into this Agreement.

     12.6.Waivers and  Amendments.  This  Agreement may be amended,  superceded,
          cancelled,  renewed or  extended,  and the terms hereof may be waived,
          only by a written  instrument signed by the Parties or, in the case of
          a waiver, by the Party waiving compliance. No delay on the part of any
          Party in  exercising  any right,  power or privilege  hereunder  shall
          operate  as a  waiver  thereof.  Failure  by a Party  to  enforce  any
          provision  of this  Agreement  will not be  deemed a waiver  of future
          enforcement  of that or any other  provision.  Both Parties  expressly
          reject any  pre-printed  terms and  conditions  of any Purchase  Order
          acknowledgment  or any other form or document of either  Party  unless
          expressly agreed in writing.

     12.7.Notices.  All notices required or permitted under this Agreement shall
          be in writing,  will reference this Agreement and will be deemed given
          when: (i) delivered personally;  (ii) sent by facsimile when confirmed
          by  counter-facsimile;  (iii) five (5) Working Days (if within Israel)
          or seven (7) Working Days (if internationally)  after having been sent
          by registered or certified  mail,  return receipt  requested,  postage
          prepaid; or (iv) within three (3) Working Days when sent by commercial
          overnight carrier.  All  communications  will be sent to the addresses
          set  forth  below  or  such  other  address  or  addresses  as  may be
          designated  by a Party by giving  written  notice  to the other  Party
          pursuant to this Section.

                                       12

<PAGE>

          If to Company:

          Attunity Israel (1992) Ltd. and Attunity Software Services (1991) Ltd.
          c/o Attunity Ltd.
          8 Aba Even Boulevard
          Herzelia Pituach, 46733
          Facsimile: 09-9541042
          Attention: CEO

          If to Contractor:

          One Software Technologies (O.S.T.) Ltd.
          21 Habarzel Street
          Ramat Hachaial, Tel-Aviv 69710
          Facsimile: 03-7677601
          Attention: CEO

     12.8.Resolution  of  Conflicts.  In the event of any  controversy  or claim
          arising out of or in  connection  with this  Agreement,  there will be
          three levels of escalation: (i) the first level of escalation shall be
          limited to fifteen days of discussion  between,  a  representative  of
          Contractor and a representative  of Company,  (ii) the second level of
          escalation shall be limited to fifteen days of discussion  between the
          AVPs of Contractor and Company, and (iii) the third and final level of
          escalation shall be limited to fifteen days of discussion between each
          of  the  general   managers  of  Contractor  and  Company.   Any  such
          controversy  or claim not so  resolved  shall be  finally  settled  by
          arbitration  in accordance  with the Israeli  Arbitration  Law,  1968,
          before a  single  arbitrator  experienced  in  information  technology
          contracts  law,  to be  appointed  jointly  and in good  faith  by the
          Parties.  The arbitrator  shall give his reasoned  decision in writing
          and his  decision  shall be  binding  and  conclusive  on the  parties
          hereto.

     12.9.Governing Law;  Jurisdiction.  This Agreement  shall be subject solely
          to and interpreted in accordance with the laws of the State of Israel,
          without  giving  effect to its conflict of laws,  principles or rules.
          Without  derogating from Section 12.8 above, any dispute arising under
          or in relation to this  Agreement  shall be resolved  in, and the sole
          and exclusive  jurisdiction  shall be of, the competent  court for Tel
          Aviv-Jaffa   district,   and  each  of  the  parties   hereby  submits
          irrevocably to the jurisdiction of such courts.

     12.10. Entire Agreement. This Agreement (including Exhibits),  contains the
          entire  agreement  between  the  Parties  with  respect to the subject
          matter hereof and thereof,  and  terminates  and  supersedes all prior
          agreements, understandings, negotiations and discussions, whether oral
          or written, between the Parties.

     12.11.  Counterparts.  This Agreement may be executed by the Parties hereto
          in  two  or  more  separate   counterparts,   including  by  facsimile
          transmission, each of which when so executed and delivered shall be an
          original,  but all such counterparts shall together constitute one and
          the same instrument.

     12.12. Headings.  The headings in this Agreement are for reference only and
          shall not affect the interpretation of this Agreement.

                                       13
<PAGE>

     12.13. Further  Assurances.  The  Parties  shall use their best  efforts to
          fulfill or obtain the fulfillment of the conditions to this Agreement,
          including,  without  limitation,  the  execution  and  delivery of any
          document or other  papers,  the  execution  and  delivery of which are
          conditions precedent to this Agreement.

     12.14.  Variations  in Pronouns.  All pronouns and any  variations  thereof
          refer to the masculine, feminine or neuter, singular or plural, as the
          context may require.

     12.15. Limitation of Liability. Except for Section 6.1.3 above, in no event
          will  any  Party  be  liable  to the  other  for any  indirect  and/or
          consequential  damage or loss  resulting  from or  arising  out of the
          carrying out of its obligations  under this Agreement.  In any event a
          Party's total and accumulative  liability to the other Party or to any
          other third party in connection  with this Agreement  shall not exceed
          an amount of US$1,000,000.

     12.16. Survival.  The duties,  obligations  and rights of the Parties under
          Sections  3, 6.2,  6.3,  9, 10, 11,  12.8 and 12.9 shall  survive  the
          termination  or  expiration  of this  Agreement and shall inure to the
          benefit of the Parties, their successors and assigns.

                  [remainder of page intentionally left blank]

                                       14
<PAGE>

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

Attunity Software Services (1991) Ltd.   One Software Technologies (O.S.T.) Ltd.

BY:                                      BY:
   ------------------------                  -----------------------

NAME:                                    NAME:
      ---------------------                   ----------------------

TITLE:                                   TITLE:
       --------------------                    ---------------------

Attunity Israel (1992) Ltd.

BY:
   ------------------------

NAME:
      ---------------------

TITLE:
       --------------------

                    [Signature Page to Outsourcing Agreement]

                                       15

<PAGE>

                                List of Exhibits
                                ----------------

Exhibit A1: List of Consultants (freelance)

Exhibit A2: List of Employees

Exhibit B: List of Customers of Consulting Services and brief description

Exhibit C: List of Customers of Maintenance Services and brief description

Exhibit D: General Terms/Level of Services (as provided by One)

Exhibit E: Guidelines for New Agreements

Exhibit F: Equipment to be sold and price therefor

Exhibit G1: Facilities to be sublet

Exhibit G2: Lease agreements

Exhibit H: Prepaid incomes and incomes receivable

Exhibit I: General Terms/Level of Services (as provided by the Company)

                                       16EXHIBIT 10.1

                       POWERHOUSE TECHNOLOGIES GROUP, INC.
                        2004 OMNIBUS STOCK INCENTIVE PLAN

            This 2004 OMNIBUS STOCK INCENTIVE PLAN (the "Plan") is hereby
established by PowerHouse Technologies Group, Inc., a Delaware corporation (the
"Company"), adopted by the Company's Board of Directors (the "Board") as of the
23rd day of November, 2004, and approved by the Company's stockholders as of the
16th day of December, 2004.

            1. Purpose. The purpose of the Plan is to maintain the ability of
the Company and its subsidiaries to attract and retain highly qualified and
experienced employees, officers, directors, agents, consultants, advisors and
independent contractors and to give such persons a continued proprietary
interest in the success of the Company and its subsidiaries and align such
persons' interests and efforts with the interests of the Company's stockholders.
Pursuant to the Plan, such employees, officers, directors, agents, consultants,
advisors and independent contractors will be offered the opportunity to acquire
the Company's Common Stock, par value $0.0001 per share (the "Common Stock"),
through the grant of options, stock appreciation rights in tandem with such
options, the award of restricted stock under the Plan, bonuses payable in stock
or a combination thereof. Unless the context clearly indicates otherwise,
references herein to "option" or "options" shall include any tandem stock
appreciation right that may be granted in connection with such option or options
in accordance with Section 6(f) hereof. As used herein, the term "subsidiary"
shall mean any present or future corporation which is or would be a "subsidiary
corporation" of the Company as the term is defined in Section 424(f) of the
Internal Revenue Code of 1986, as amended from time to time (the "Code").

            2. Administration of the Plan. The Plan shall be administered by the
Compensation Committee of the Board (the "Committee"), as appointed from time to
time by the Board. With respect to participation by Insiders (as defined below)
in the Plan, at any time that any class of equity security of the Company is
registered pursuant to Section 12 of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), the Plan shall be administered in compliance with
the requirements, if any, of Rule 16b-3 promulgated under the Exchange Act. If
the Company is a "publicly held corporation" within the meaning of Section
162(m) of the Code, the Board may establish a committee of "outside directors"
within the meaning of Section 162(m) to approve the grant of any award that
might reasonably be anticipated to result in the payment of employee
remuneration that would otherwise exceed the limit on employee remuneration
deductible for income tax purposes pursuant to Section 162(m). Under such
circumstances, references herein to "Committee" shall mean such duly constituted
committee. As used herein, the term "Insider" means an "officer" of the Company
within the meaning of Rule 16a-1(f) promulgated under the Exchange Act, a
director of the Company or any other person whose transactions in the Company's
securities are subject to Section 16 of the Exchange Act.

            A majority of the members of the Committee shall constitute a
quorum. The vote of a majority of a quorum shall constitute action by the
Committee. In administering the Plan, the Committee may adopt rules and
regulations for carrying out the Plan. The interpretation and decision with
regard to any question arising under the Plan made by the Committee shall be
final

<PAGE>

and conclusive on all persons participating or eligible to participate in
the Plan. The Committee may consult with counsel, who may be counsel to the
Company, and shall not incur any liability for any action taken in good faith in
reliance upon the advice of counsel. The Committee shall determine the
employees, officers, directors, agents, consultants, advisors and independent
contractors to whom, and the time or times at which, grants or awards shall be
made and the number of shares to be included in the grants or awards. Within the
limitations of the Plan, the number of shares for which options will be granted
from time to time and the periods for which the options will be outstanding will
be determined by the Committee.

            Each option or stock or other awards granted pursuant to the Plan
shall be evidenced by an option agreement or award agreement (an "Agreement").
An Agreement shall not be a precondition to the granting of options or stock or
other awards; however, no person shall have any rights under any option or stock
or other awards granted under the Plan unless and until the person to whom such
option or stock or other award shall have been granted shall have executed and
delivered to the Company an Agreement. The Committee shall prescribe the form of
all Agreements. A fully executed original of the Agreement shall be provided to
both the Company and the recipient of the grant or award.

            3. Shares of Stock Subject to the Plan. The total number of shares
that may be optioned or awarded under the Plan is 1,125,000 shares of Common
Stock, except that said number of shares shall be adjusted as provided in
Section 13 hereof. Any shares subject to an option which for any reason expires
or is terminated unexercised and any restricted stock that is forfeited may
again be optioned or awarded under the Plan. Shares subject to the Plan may be
either authorized and unissued shares or issued shares acquired by the Company
or its subsidiaries.

            4. Eligibility. Awards under the Plan may be granted to employees,
officers, directors, agents, consultants, advisors and independent contractors
of the Company and its subsidiaries. For purposes of the foregoing sentence,
employees, officers, directors, agents, consultants, advisors and independent
contractors shall include prospective employees, officers, directors, agents,
consultants, advisors and independent contractors to whom awards are granted in
connection with written offers of an employment or other service relationship
with the Company or its subsidiaries; provided, however, that no such award
shall vest, become exercisable or be issued prior to the date on which such
person commences service. The maximum number of shares of Common Stock that
shall be available for the grant of options intended to be incentive stock
options, as defined in Section 422 of the Code, shall be 1,125,000 shares
(subject to adjustment as provided in Section 13 hereof). The employees,
officers, directors, agents, consultants, advisors and independent contractors
who shall receive awards or options under the Plan shall be selected from time
to time by the Committee, in its sole discretion, from among those eligible,
which may be based upon information furnished to the Committee by the Company's
management, and the Committee shall determine, in its sole discretion, the
number of shares to be covered by the award or awards and by the option or
options granted to each such person selected. Such key salaried employees and
directors who are selected to participate in the Plan shall be referred to
collectively herein as "Participants." In no event shall any Participant who is
a key employee be granted stock options with respect to more than 125,000 shares
of Common Stock in any calendar year (subject to adjustment as provided in
Section 13 hereof).

                                      -2-
<PAGE>

            5. Duration of the Plan. No award or option may be granted under the
Plan more than ten years from the date the Plan receives stockholder approval,
but awards or options theretofore granted may extend beyond that date.

            6. Terms and Conditions of Stock Options. All options granted under
this Plan shall be either incentive stock options, as defined in Section 422 of
the Code, or options other than incentive stock options; provided, however, that
all options granted to persons who are not employees of the Company shall be
nonstatutory stock options not intended to qualify as incentive stock options
entitled to special tax treatment under Section 422 of the Code. Each such
option shall be subject to all the applicable provisions of the Plan, including
the following terms and conditions, and to such other terms and conditions not
inconsistent therewith as the Committee shall determine.

            (a) The option price per share shall be determined by the Committee.
However, subject to Section 6(k) hereof, the option price of incentive stock
options shall not be less than 100% of the Fair Market Value of a share of
Common Stock at the time the option is granted. For purposes of the Plan, the
"Fair Market Value" on any date, means (i) if the Common Stock is listed on a
national securities exchange or quotation system, the closing sales prices on
such exchange or quotation system on such date or, in the absence of reported
sales on such date, the closing sales price on the immediately preceding date on
which sales were reported, (ii) if the Common Stock is not listed on a national
securities exchange or quotation system, the mean between the bid and asked
prices as quoted by the NASDAQ for such date or (iii) if the Common Stock is
neither listed on a national securities exchange or quotation system nor quoted
by NASDAQ, the fair value as determined by such other method as the Committee
determines in good faith to be reasonable.

            (b) Each option shall be exercisable pursuant to the attainment of
such performance goals and/or during and over such period ending not later than
ten years from the date it was granted, as may be determined by the Committee
and stated in the Agreement. In no event may an option be exercised more than
ten years from the date the option was granted.

            (c) Unless otherwise provided in the Agreement, no option shall be
exercisable within six months from the date of the granting of the option. An
option shall not be exercisable with respect to a fractional share of Common
Stock or with respect to the lesser of 50 shares or the full number of shares
then subject to the option. No fractional shares of Common Stock shall be issued
upon the exercise of an option. If a fractional share of Common Stock shall
become subject to an option by reason of a stock dividend or otherwise, the
optionee shall not be entitled to exercise the option with respect to such
fractional share.

            (d) Each Agreement shall state whether the option(s) evidenced
thereby will or will not be treated as incentive stock option(s).

            (e) Each option may be exercised by giving written notice to the
Company specifying the number of shares to be purchased, which shall be
accompanied by payment in full including, if required by applicable law, taxes,
if any. Payment, except as provided in the Agreement, shall be made as follows:

                                      -3-
<PAGE>

            (i) in United States dollars by certified check or bank draft; or

            (ii) by tendering to the Company shares of Common Stock already
      owned for at least six months by the person exercising the option, which
      may include shares received as the result of a prior exercise of an
      option, and having a Fair Market Value on the date on which the option is
      exercised equal to the cash exercise price applicable to such option; or

            (iii) by a combination of United States dollars and shares of Common
      Stock as aforesaid; or

            (iv) in accordance with a cashless exercise program established by
      the Committee in its sole discretion under which either (A) if so
      instructed by the optionee, shares may be issued directly to the
      optionee's broker or dealer upon receipt of the purchase price in cash
      from the broker or dealer, or (B) shares may be issued by the Company to
      an optionee's broker or dealer in consideration of such broker's or
      dealer's irrevocable commitment to pay to the Company that portion of the
      proceeds from the sale of such shares that is equal to the exercise price
      of the option(s) relating to such shares; or

            (v) in such other manner as permitted by the Committee at the time
      of grant or thereafter.

            No optionee shall have any rights to dividends or other rights of a
stockholder with respect to shares of Common Stock subject to such optionee's
option until such optionee has given written notice of exercise of such
optionee's option and paid in full for such shares.

            (f) Except as provided in the Agreement, an option may be exercised
only if at all times during the period beginning with the date of the granting
of the option and ending on the date of such exercise, the grantee was an
employee or director of either the Company or of a subsidiary of the Company or
of another corporation referred to in Section 421(a)(2) of the Code. The
Agreement shall provide whether, and if so, to what extent, an option may be
exercised after termination of continuous employment, but any such exercise
shall in no event be later than the termination date of the option. If the
grantee should die, or become permanently disabled as determined by the
Committee in accordance with the Agreement, at any time when the option, or any
portion thereof, shall be exercisable by such grantee, the option will be
exercisable within a period provided for in the Agreement, by the optionee or
person or persons to whom such optionee's rights under the option shall have
passed by will or by the laws of descent and distribution, but in no event at a
date later than the termination of the option. The Committee may require medical
evidence of permanent disability, including medical examinations by physicians
selected by the Committee in its sole discretion.

            (g) The option by its terms shall be personal and shall not be
transferable by the optionee otherwise than by will or by the laws of descent
and distribution as provided in Section 6(g) hereof. During the lifetime of an
optionee, the option shall be exercisable only by the optionee. In the event any
option is exercised by the executors, administrators, heirs or distributees of
the estate of a deceased optionee as provided in Section 6(g) hereof, the
Company shall be under no obligation to issue Common Stock thereunder unless and
until the Company is

                                      -4-
<PAGE>

satisfied that the person or persons exercising the option are the duly
appointed legal representative of the deceased optionee's estate or the proper
legatees or distributees thereof.

            (h) Notwithstanding any intent to grant incentive stock options, an
option granted will not be considered an incentive stock option to the extent
that it, together with any earlier incentive stock options, permits the exercise
for the first time in any calendar year of more than $100,000 in Fair Market
Value of Common Stock (determined at the time of grant).

            (i) The Committee may, but need not, require such consideration from
an optionee at the time of granting an option as it shall determine, either in
lieu of, or in addition to, the limitations on exercisability provided in
Section 6(e) hereof.

            (j) No incentive stock option shall be granted to an employee who
owns or would own immediately before the grant of such option, directly or
indirectly, stock possessing more than 10% of the total combined voting power of
all classes of stock of the Company. This restriction does not apply if, at the
time such incentive stock option is granted, the option price is at least 110%
of the Fair Market Value of one share of Common Stock, as determined in
accordance with Section 6(a) hereof, on the date of grant and the incentive
stock option by its terms is not exercisable after the expiration of five years
from the date of grant.

            (k) An option and any Common Stock received upon the exercise of an
option shall be subject to such other transfer restrictions and/or legending
requirements that are specified in the Agreement.

            7. Terms and Conditions of Restricted Stock Awards. All awards of
restricted stock under the Plan shall be subject to all the applicable
provisions of the Plan, including the following terms and conditions, and to
such other terms and conditions not inconsistent therewith as the Committee
shall determine.

            (a) Awards of restricted stock may be in addition to or in lieu of
option grants.

            (b) During a period set by, and/or until the attainment of
particular performance goals based upon criteria established by, the Committee
at the time of each award of restricted stock (the "restriction period") as
specified in the Agreement, the recipient shall not be permitted to sell,
transfer, pledge or otherwise encumber the shares of restricted stock, except
that such shares may be used, if the Agreement so permits, to pay the option
price of any option granted under the Plan, provided that an equal number of
shares delivered to the recipient shall carry the same restrictions as the
shares so used.

            (c) If so provided in the Agreement, shares of restricted stock
shall become free of all restrictions if (i) the recipient dies, (ii) the
recipient's employment terminates by reason of permanent disability, as
determined by the Committee, (iii) the recipient retires under specific
circumstances set forth in the Agreement or (iv) there is a Change in Control
(as defined in Section 9 hereof) of the Company. The Committee may require
medical evidence of permanent disability, including medical examinations by
physicians selected by it. If the Committee determines that any such recipient
is not permanently disabled, the restricted stock held by such recipient shall
be forfeited and revert to the Company.

                                      -5-
<PAGE>

            (d) Unless and to the extent otherwise provided in the Agreement in
accordance with Section 7(c) hereof, shares of restricted stock shall be
forfeited and revert to the Company upon the recipient's termination of
employment or directorship during the restriction period, except to the extent
the Committee, in its sole discretion, finds that such forfeiture might not be
in the best interest of the Company and, therefore, waives all or part of the
application of this provision to the restricted stock held by such recipient.

            (e) Stock certificates for restricted stock shall be registered in
the name of the recipient but shall be appropriately legended and returned to
the Company by the recipient, together with a stock power endorsed in blank by
the recipient. The recipient shall be entitled to vote shares of restricted
stock and shall be entitled to all dividends paid thereon, except that dividends
paid in Common Stock or other property shall also be subject to the same
restrictions.

            (f) Restricted stock shall become free of the foregoing restrictions
upon expiration of the applicable restriction period, and the Company shall then
deliver Common Stock certificates evidencing such stock to the recipient.

            (g) Restricted stock and any Common Stock received upon the
expiration of the restriction period shall be subject to such other transfer
restrictions and/or legending requirements that are specified in the Agreement.

            8. Bonuses Payable in Stock. In lieu of cash bonuses otherwise
payable under the Company's or applicable subsidiary's compensation practices to
employees and directors eligible to participate in the Plan, the Committee, in
its sole discretion, may determine that such bonuses shall be payable in Common
Stock or partly in Common Stock and partly in cash. Such bonuses shall be in
consideration of services previously performed and as an incentive toward future
services and shall consist of shares of Common Stock subject to such terms as
the Committee may determine in its sole discretion. The number of shares of
Common Stock payable in lieu of a bonus otherwise payable shall be determined by
dividing such amount by the Fair Market Value of one share of Common Stock on
the date the bonus is payable.

            9. Change in Control.

            (a) In the event of a Change in Control of the Company, the
Committee may, in its sole discretion, provide that any of the following
applicable actions be taken as a result, or in anticipation, of any such event
to assure fair and equitable treatment of Participants:

            (i) accelerate restriction periods for purposes of vesting in, or
      realizing gain from, any outstanding option or shares of restricted stock
      awarded pursuant to the Plan;

            (ii) offer to purchase any outstanding option or shares of
      restricted stock made pursuant to the Plan from the holder for its
      equivalent cash value, as determined by the Committee, as of the date of
      the Change in Control; or

            (iii) make adjustments or modifications to outstanding options or
      with respect to restricted stock as the Committee deems appropriate to
      maintain and protect the rights and interests of the Participants
      following such Change in Control.

                                      -6-
<PAGE>

            Any such action approved by the Committee shall be conclusive and
binding on the Company, its subsidiaries and all Participants; provided,
however, that notwithstanding the foregoing, under no circumstances shall the
Committee take or approve any action that would result in an "Excess Parachute
Payment," as defined in Section 280G(b) of the Code.

            For purposes hereof, "Change in Control" means a change in control
of the Company of a nature that would be required to be reported in response to
Item 6(e) of Schedule 14A of Regulation 14A under the Exchange Act, whether or
not the Company is subject to the Exchange Act at such time; provided, however,
that without limiting the generality of the foregoing, such a Change in Control
shall in any event be deemed to occur if and when:

            (i) any person (as such term is used in Sections 13(d) and 14(d)(2)
      of the Exchange Act), the Company, its subsidiaries and affiliates (as
      defined in Rule 12b-2 under the Exchange Act), becomes the beneficial
      owner (as defined in Rule 13d-3 under the Exchange Act), directly or
      indirectly, of securities of the Company representing 50% or more of the
      combined voting power of the Company's then outstanding securities;

            (ii) stockholders approve a merger or consolidation as a result of
      which securities representing less than 50% of the combined voting power
      of the outstanding voting securities of the surviving or resulting
      corporation will be beneficially owned, directly or indirectly, in the
      aggregate by the former stockholders of the Company;

            (iii) stockholders approve either (A) an agreement for the sale or
      disposition of all or substantially all of the Company's assets to an
      entity which is not a subsidiary of the Company, or (B) a plan of complete
      liquidation;

            (iv) the persons who were members of the Board immediately before
      the completion of a tender offer by any person other than the Company or a
      subsidiary or affiliate of the Company, or before a merger, consolidation,
      or contested election, or before any combination of such transactions,
      cease to constitute a majority of the Board as a result of such
      transaction or transactions; provided, however, that any individual
      becoming a director subsequent to the date thereof whose election, or
      nomination for election by the Company's stockholders, was approved by a
      vote of at least a majority of the directors then comprising the Board
      shall be considered as though such individual were a member of the Board
      immediately prior to such date; or

            (b) In no event, however, may (i) any option be exercised prior to
the expiration of six months from the date of grant (unless otherwise provided
for in the Agreement), or (ii) any option be exercised after ten years from the
date it was granted.

            10. Transfer, Leave of Absence. For the purpose of the Plan: (a) a
transfer of an employee from the Company to a subsidiary or affiliate of the
Company, whether or not incorporated, or vice versa, or from one subsidiary or
affiliate of the Company to another, and (b) a leave of absence, duly authorized
in writing by the Company or a subsidiary or affiliate of the Company, shall not
be deemed a termination of employment.

            11. Rights of Participants.

                                      -7-
<PAGE>

            (a) No person shall have any rights or claims under the Plan except
in accordance with the provisions of the Plan and the applicable Agreement.

            (b) Nothing contained in the Plan or the applicable Agreement shall
be deemed to give any Participant the right to be retained in the service of the
Company or its subsidiaries.

            12. Tax Withholding Obligations.

            (a) If required by applicable law, the payment of taxes, upon the
exercise of an option pursuant to Section 6(e) hereof or a stock appreciation
right pursuant to Section 6(f) hereof, shall be in cash at the time of exercise
or on the applicable tax date under Section 83 of the Code, if later; provided,
however, that tax withholding obligations may be met by the withholding of
Common Stock otherwise deliverable to the optionee pursuant to procedures
approved by the Committee; and provided, further, that the amount of Common
Stock so withheld shall not exceed the minimum required withholding obligation.

            (b) If required by applicable law, recipients of restricted stock,
pursuant to Section 7 hereof, shall be required to pay taxes to the Company upon
the expiration of restriction periods or such earlier dates as elected pursuant
to Section 83 of the Code; provided, however, that tax withholding obligations
may be met by the withholding of Common Stock otherwise deliverable to the
recipient pursuant to procedures approved by the Committee. If tax withholding
is required by applicable law, in no event shall Common Stock be delivered to
any awardee until such awardee has paid to the Company in cash the amount of
such tax required to be withheld by the Company or has elected to have such
awardee's withholding obligations met by the withholding of Common Stock in
accordance with the procedures approved by the Committee or otherwise entered
into an agreement satisfactory to the Company providing for payment of
withholding tax.

            (c) The Company shall first withhold from any cash bonus described
in Section 8 hereof an amount of cash sufficient to meet its tax withholding
obligations before the amount of Common Stock paid in accordance with Section 8
hereof is determined.

            13. Changes in Capital; Reorganization.

            (a) Upon changes in the outstanding Common Stock by reason of a
stock dividend, stock split, reverse stock split, subdivision, recapitalization,
an extraordinary dividend payable in cash or property, combination or exchange
of shares, separation, reorganization, merger, consolidation or liquidation, and
the like, the aggregate number and class of shares of Common Stock available
under the Plan as to which stock options and restricted stock may be awarded,
the number and class of shares under (i) each option and the option price per
share and (ii) each award of restricted stock shall, in each case, be
correspondingly adjusted by the Committee, such adjustments to be made in the
case of outstanding options without change in the total price applicable to such
options.

            (b) Any adjustments or other action pursuant to this Section 13
shall be made by the Board and the Board's determination as to what adjustments
shall be made or actions taken, and the extent thereof, shall be final and
binding.

                                      -8-
<PAGE>

            14. Miscellaneous Provisions.

            (a) The Plan shall be unfunded. The Company shall not be required to
establish any special or separate fund or to make any other segregation of
assets to assure the issuance of shares or the payment of cash upon exercise of
any option or stock appreciation right under the Plan. Proceeds from the sale of
shares of Common Stock pursuant to options granted under this Plan shall
constitute general funds of the Company. The expenses of the Plan shall be borne
by the Company.

            (b) It is understood that the Committee may, at any time and from
time to time after the granting of an option or the award of restricted stock or
bonuses payable in Common Stock hereunder, specify such additional terms,
conditions and restrictions with respect to such option or stock as may be
deemed necessary or appropriate to ensure compliance with any and all applicable
laws, including, without limitation, terms, restrictions and conditions for
compliance with federal and state securities laws and methods of withholding or
providing for the payment of required taxes.

            (c) If at any time the Committee shall determine, in its discretion,
that the listing, registration or qualification of shares of Common Stock upon
any national securities exchange or quotation system or under any state or
federal law, or the consent or approval of any governmental regulatory body, is
necessary or desirable as a condition of, or in connection with, the sale or
purchase of shares of Common Stock hereunder, no option may be exercised or
restricted stock or stock bonus may be transferred in whole or in part unless
and until such listing, registration, qualification, consent or approval shall
have been effected or obtained, or otherwise provided for, free of any
conditions not acceptable to the Committee.

            (d) By accepting any benefit under the Plan, each Participant and
each person claiming under or through such Participant shall be conclusively
deemed to have indicated such Participant's or person's acceptance and
ratification, and consent to, any action taken under the Plan by the Committee,
the Company or the Board.

            (e) THE PLAN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF DELAWARE WITHOUT GIVING EFFECT TO THE PRINCIPLES OF
CONFLICTS OF LAWS THEREOF.

            15. Limitations of Liability.

            (a) Any liability of the Company or any of its subsidiaries to any
participant with respect to any option or award shall be based solely upon
contractual obligations created by the Plan and the Agreement.

            (b) None of the Company or any of its subsidiaries, or any member of
the Committee or the Board, or any other person participating in any
determination of any question under the Plan, or in the interpretation,
administration or application of the Plan, shall have any liability to any party
for any action taken or not taken in connection with the Plan, except as may
expressly be provided by statute.

                                      -9-
<PAGE>

            16. Amendments and Termination. The Board may, at any time, amend,
alter or discontinue the Plan; provided, however, that no amendment, alteration
or discontinuation shall be made which, without the approval of the
stockholders, would:

            (a) except as is provided in Section 13 hereof, increase the maximum
number of shares of Common Stock reserved for the purpose of the Plan;

            (b) except as is provided in Section 13 hereof, decrease the option
price of an option to less than 100% of the Fair Market Value of a share of
Common Stock on the date of the granting of the option;

            (c) change the class of persons eligible to receive an award of
restricted stock, options or bonuses payable in Common Stock under the Plan; or

            (d) extend the duration of the Plan.

            The Committee may amend the terms of any award of restricted stock
or option theretofore granted, retroactively or prospectively, but no such
amendment shall impair the rights of any holder without such holder's written
consent.

            17. Duration. The Plan shall become effective as of the date on
which it is approved by a majority of the Company's stockholders, which approval
must occur within the period ending 12 months after the date the Plan is adopted
by the Board. The Plan shall terminate upon the earliest of the following dates
or events to occur:

            (a) the adoption of a resolution of the Board terminating the Plan;

            (b) the date on which all shares of Common Stock subject to the Plan
are purchased in accordance with the provisions of the Plan; or

            (c) ten years from the date hereof.

                                      -10-

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