Document:

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                                                                Exhibit 10.2

                        TOLL MANUFACTURING AGREEMENT

                               BY AND BETWEEN

                                SOLUTIA INC.

                                     AND

                         PHOSPHORUS DERIVATIVES INC.

                           DATED NOVEMBER 4, 2005

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                        TOLL MANUFACTURING AGREEMENT

THIS TOLL MANUFACTURING AGREEMENT ("Agreement") made and entered into this
4th day of November, 2005 ("Commencement Date") by and between SOLUTIA INC.
("Manufacturer" or "Solutia"), a company organized and existing under the
laws of the state of Delaware with principal offices located at 575
Maryville Centre Drive, St. Louis, MO 63141, and Phosphorus Derivatives Inc.
("Purchaser"), a corporation organized and existing under the laws of
Delaware with principal offices located at 622 Emerson Road, Suite 500, St.
Louis, MO 63141.

                                  RECITALS

         A. Solutia, ICL Performance Products Holding Inc. ("Buyer"), Israel
Chemicals Limited, FMC Corporation and Astaris LLC have entered into an
Asset Purchase Agreement ("APA") dated September 1, 2005 pursuant to which
Buyer is acquiring certain assets of Astaris LLC.

         B. Solutia and Buyer are required to enter into this Agreement
under Sections 1.3(b) and 1.3(c) of the APA.

         C. Buyer has assigned its rights under the APA to enter into this
Agreement to Purchaser.

         NOW THEREFORE, the parties hereto, for and in consideration of the
covenants contained herein and other good and valuable consideration, hereby
agree as follows:

ARTICLE 1 - DEFINITIONS
-----------------------

For the purposes of this Agreement the following terms shall have the
following meanings:

1.01 "Agreement" shall mean this Toll Manufacturing Agreement dated the date
first above written.

1.02 "Anniversary Date" shall mean the date falling on the same day of the
Month as the Commencement Date at intervals of twelve (12) Months.

1.03 "Commencement Date" shall mean the date hereof.

1.04 "Demolition to Grade" and "Demolish to Grade" shall mean with respect
to the Manufacturing Site, removal of above grade columns, walls and
supports to grade level without excavation to a condition reasonably suited
for industrial use but shall not mean removal of below grade slabs,
foundations footings, underground piping, tanks, vaults or other underground
structures.

1.05 "Fixed Costs" shall have the meaning set forth in Schedule 4.01 hereto.
                                                       -------------

1.06 "FOB" shall mean the loading by Manufacturer of Product in tote bins or
cages (for export purposes) on trucks or in the case of bulk shipments in
railcars, all without further cost to Purchaser as provided in Section 5
hereof.

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1.07 "Government Regulations" shall mean any statute, law, ordinance or
regulation issued by any competent governing body or authority.

1.08 "Land" shall mean the parcel of land comprising the Manufacturing Site
which is depicted on the drawing attached hereto as Exhibit 1.08.
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1.09 "Lease and Operating Agreement" shall mean the Master Lease and
Operating Agreement between Solutia Inc. and Astaris LLC dated as of April 1,
2000.

1.10 "Manufacturing Site" shall mean that portion of Manufacturer's facility
located at 500 Monsanto Avenue, Sauget, IL 62201, that is occupied by the
P2S5 Unit.

1.11 "Month" or "Months" shall mean calendar month(s) and "day(s)" shall
mean calendar day(s) and "Working Day" shall mean a day during which the
Manufacturing Site is scheduled to be open, operating and transacting
business. "Calendar Year" shall mean the calendar year commencing on any
January 1st and ending on the immediately next succeeding December 31st.
"Year" shall mean any period of three hundred sixty five (three hundred and
sixty-six days in the event that the period includes the 29th day of
February) consecutive days following any given date during a Calendar Year.
"Calendar Quarter" shall mean the three consecutive month period during any
Calendar Year commencing on the first day of each of the months of January,
April, July and October. "Week" shall mean a seven (7) consecutive day
period commencing on each Monday.

1.12 "New Fixed Investments" or "NFI" shall have the meaning set forth in
Schedule 4.01 hereto.
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1.13 "Off-Grade Material" shall mean any product produced by Manufacturer
during the process of converting Raw Materials into Products, which product
does not meet the Specifications.

1.14 "P2S5" shall mean Phosphorous Pentasulfide.

1.15 "P2S5 Assets" shall mean the tangible assets, including building,
machinery and equipment owned by Solutia and used exclusively in the
manufacture of Product at the P2S5 Unit pursuant to the terms of this
Agreement.

1.16 "P2S5 Unit" shall mean the physical plant located at the Manufacturing
Site that produces and packages the Product and the ancillary areas
necessary or appropriate for the production, packaging, shipping and loading
of the Product and unloading and storage of Raw Materials and Packaging
Supplies.

1.17 "Product" shall mean P2S5 meeting the specifications set forth in
Schedule 1.17, as may be amended from time to time as provided herein (the
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"Specifications").

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1.18 "Production Capacity" shall mean, respectively, the Annual, Quarterly,
Monthly, Weekly and daily production capacity of the P2S5 Unit to produce
Product as set forth on Schedule 1.18 attached hereto.
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1.19 "Purchase Order" shall mean a purchase order for Product submitted to
Manufacturer by Purchaser and shall include the quantity of Product to be
ordered and the time of delivery.

1.20 "Raw Materials" shall mean sulfur and phosphorous meeting the
specifications set forth in Schedule 1.20 hereto ("RM Specifications").

1.21 "Residual Allocated Costs" shall mean, collectively, Utilities, Taxes,
New Fixed Investment and Fixed Costs (as adjusted pursuant to Schedule 4.01)
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as are applicable to the Manufacturing Site during the period provided in
Section 3.03 hereof.

1.22 "Subsidiary" shall mean any company or other form of legal entity in
which either party owns, directly or indirectly, sufficient interest in such
company or entity so as to be able to exercise control, or a company or
entity in which either party owns or controls at least fifty percent (50%)
of the maximum equity, voting or management interest permitted by the laws
of the country in which such company or entity is organized or exists.

1.23 "Taxes" shall have the meaning set forth in Schedule 4.01 hereto.
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1.24 "Technology" shall have the meaning set forth in Article 11 hereof.

1.25 "Term" shall have the meaning set forth in Section 3.01 hereof.

1.26 "Tolling Fee" shall have the meaning set forth in Article 4 hereof.

1.27 "Utilities" shall have the meaning set forth in Schedule 4.01 hereto.
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ARTICLE 2 - MANUFACTURE AND SUPPLY OF PRODUCT
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2.01 During the Term hereof Manufacturer hereby agrees to manufacture,
fabricate , package and supply Product exclusively for Purchaser in
quantities and at the times specified in the weekly Purchase Orders
submitted pursuant to Article 8 hereof and to package and load the Product
FOB the P2S5 Unit for delivery to Purchaser in accordance with Article 5. To
the best of Manufacturer's knowledge, the Specifications are complete for
production of all Product.

2.02 Purchaser shall provide, at its sole cost and expense, process
technical support as requested by Manufacturer from Purchaser's research and
development functional group as may, in Manufacturer's reasonable judgment,
be necessary to facilitate optimal manufacture of Product at the P2S5 Unit.

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2.03 Manufacturer and Purchaser shall participate in periodic meetings at
places and times to be agreed as may be necessary to coordinate and
facilitate discussion of issues regarding production, shipping and other
plant logistical matters and operational efficiencies.

2.04 Manufacturer shall cooperate with Purchaser as requested to
manufacture, fabricate, package and supply P2S5 products that have different
specifications than the Products at the commencement of the Term ("New
Products"), provided that Purchaser shall reimburse Manufacturer for any
incremental cost incurred by Manufacturer associated with the development
and manufacture of such New Products pursuant to the agreed specifications
thereof and upon such agreement, such New Products shall be deemed to be
Products hereunder.

ARTICLE 3 - TERM AND TERMINATION
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3.01 The term of this Agreement ("Term") shall be twenty-five (25) years
from the Commencement Date; provided, however, that either party may
terminate this Agreement upon eighteen (18) Months' prior written notice to
the other party, and the effective date of termination by Solutia under this
Section 3.01 may not be prior to the fifth (5th) Anniversary of the
Commencement Date.

3.02 In addition, each party shall have the right to terminate this
Agreement at any time "for cause" upon written notice to the other party in
the event of breach by the other party of any of the representations,
warranties, covenants, indemnities, terms or conditions of this Agreement
which is either (a) not curable by the breaching party's admission, or (b)
if curable, is not cured within sixty (60) Working Days after such written
notice thereof has been provided to the breaching party. If in the
reasonable judgment of the party claiming that the breach is not curable,
the party claiming breach shall provide the other party ten (10) Working
Days' written notice of such non-curable breach with sufficient
particularity as to the facts and issues so as to allow that party an
opportunity to respond.

3.03 In the event that Purchaser terminates this Agreement for any reason
other than pursuant to Section 3.02 hereof, or Manufacturer terminates this
Agreement pursuant to Section 3.02, Purchaser shall reimburse Manufacturer
for (i) all costs associated with Manufacturer's employees made redundant by
such termination pursuant to the terms of Manufacturer's employee severance
policy applicable to such employees, including without limitation
re-training, redeployment, separation and outplacements costs and expenses;
(ii) Manufacturer's Residual Allocated Costs for up to eighteen (18)
consecutive Months following the effective date of such termination; and
(iii) at Purchaser's sole costs and expense, the Demolition to Grade of the
P2S5 Unit, OR, at Purchaser's option, (x) Manufacturer shall transfer
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ownership of the P2S5 Assets and lease the Land to Purchaser pursuant to a
mutually acceptable lease agreement, or (y) Purchaser shall relocate, at
Purchaser's sole cost and expense, the P2S5 Assets and Demolish to Grade.
The obligations of Purchaser set forth in clauses (i) through (iii) above
shall be referred to hereinafter as "Purchaser's Exit Obligations".
Purchaser's Exit

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Obligations shall not include any obligation to investigate, remediate or
otherwise respond to the presence, release or threat of release of hazardous
substances or hazardous waste except to the extent and only the extent of
hazardous substances or waste generated or released and the proper disposal
thereof as a result of Purchaser's decontamination and relocation of the
P2S5 Assets and Demolition to Grade. If this Agreement is terminated by
Purchaser or by Manufacturer as provided in this Section 3.03, Manufacturer
shall use its reasonable best efforts to limit the duration and mitigate the
cost of such termination, including the employee redundancy costs and
continuing Residual Allocated Costs.

3.04 In the event that Manufacturer terminates this Agreement for any other
reason than pursuant to Sections 3.02 and 3.07 hereof, or Purchaser
terminates this Agreement pursuant to Section 3.02, at Purchaser's option,
either (x) Manufacturer shall transfer ownership of the P2S5 Assets to
Purchaser and lease the Land pursuant to a mutually acceptable lease
agreement, with rent no greater than that necessary to cover Manufacturer's
actual direct and indirect costs, consistent with Manufacturer's historical
accounting practices at the Manufacturing Site, applicable to a lease of
land within a facility with shared services for multiple tenants, or (y)
Purchaser, at its sole cost and expense, shall relocate the P2S5 Assets and
Demolish to Grade. Purchaser shall bear all costs and expenses of relocating
the P2S5 Assets and Demolition to Grade; provided, however, Purchaser's
obligation to bear such costs and expenses shall not include any obligation
to investigate, remediate or otherwise respond to the presence, release or
threat of release of hazardous substances or hazardous waste except to the
extent and only the extent of hazardous substances or waste generated or
released and the proper disposal thereof as a result of Purchaser's
decontamination and relocation of the P2S5 Assets and Demolition to Grade.

3.05 Purchaser shall have the right to terminate this Agreement for
"hardship" upon twelve (12) Month's prior written notice to Manufacturer in
the event that any one of the following conditions is satisfied: (a) with
respect to the Fixed Costs that are reset by Solutia each year in the annual
P2S5 Unit budget (the components of which are detailed in Schedule 4.01
                                                          -------------
hereto), the aggregate amount of such Fixed Costs reflected in the annual
budget for the following Calendar Year exceeds the budget for the current
Calendar Year by more than ten percent (10%) in the aggregate, provided,
that if Purchaser terminates for hardship under this Section 3.05(a) it will
be responsible for up to twenty percent (20%) of such increase in the then
current Fixed Costs during the 12 month notice period; (b) with respect to
the Fixed Costs that are reset by Solutia each year in the annual P2S5 Unit
budget, the aggregate amount of such Fixed Costs reflected in the annual
budget increases by more than thirty-five percent (35%) in the aggregate in
any five (5) consecutive year period during the Term hereof, provided, that
in such case, Purchaser shall be responsible during such twelve (12) Month
notice period for up to forty percent (40%) of such increase in Fixed Costs
in such five (5) consecutive Calendar Year period measured from the
commencement of such five (5) Calendar Year period; or (c) the aggregate
direct and indirect capital expenditure plus project expense by Manufacturer
exceed One Million Seven Hundred Twenty Five Thousand Dollars
($1,725,000.00) in any Calendar Year or Four Million Six Hundred Thousand
Dollars ($4,600,000.00) in any three (3) consecutive Calendar Year period
during the Term

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hereof. The deadline for Purchaser to deliver written notice of termination
under this Section 3.05 is thirty (30) days after the occurrence of the
condition giving rise to such right to terminate. If Purchaser terminates
this Agreement pursuant to this Article 3.05, in addition to any other
amounts set forth herein, it shall be responsible for Purchaser's Exit
Obligations.

3.06 Manufacturer shall notify Purchaser as soon as reasonably practicable
after Manufacturer receives written notice of termination of any lease and
operating agreement between Manufacturer and any third party at its Sauget,
Illinois site.

3.07 In the event that Manufacturer's aggregate actual amounts of the line
items included in Fixed Costs pursuant to Schedule 4.01 hereto exceed then
                                          -------------
current Fixed Costs by more than One Million Dollars ($1,000,000.00) during
any twelve (12) consecutive Month period and, to the extent Purchaser has
the right to do so hereunder, Purchaser declines to pay such increase in
Fixed Costs pursuant to this Agreement, Manufacturer shall have the right to
terminate this Agreement for "hardship" upon twelve (12) Months' prior
written notice to Purchaser. The deadline for Manufacturer to deliver
written notice of termination under this Section 3.07 is no later than
thirty (30) days after it receives written notice from Purchaser that it
declines to pay such increase in Fixed Costs. In such event Purchaser shall
be responsible for Purchaser's Exit Obligations.

3.08 No termination of this Agreement shall operate to discharge or relieve
any party of any obligations vested pursuant to this Agreement prior to the
effective date of such termination.

ARTICLE 4 - TOLLING FEE
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The price for Product supplied by Manufacturer hereunder (the "Tolling Fee")
shall be calculated as set forth in Schedule 4.01 hereto.
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ARTICLE 5 - DELIVERY
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Manufacturer shall deliver Product in the quantities and on the delivery
date(s) specified in the applicable Purchase Order twenty-four hours, seven
days per Week FOB in carrier vehicles arranged to be delivered by Purchaser
at the P2S5 Unit. Costs incurred by Manufacturer to load trucks and railcars
are included in the Tolling Fee. Manufacturer shall promptly notify
Purchaser of release of Product at the last process valve and upon request,
shall furnish Purchaser copies of all shipping documents. If at any time
Manufacturer fails to deliver Product in the quantity and on the delivery
date specified in the applicable Purchase Order in breach of its obligations
hereunder, Purchaser may cover such purchases of undelivered Product by
purchasing the same quantity of undelivered Product from another supplier on
commercially reasonable terms and may exercise any legal rights it may have
in law or in equity to seek recovery of any direct damages allegedly
incurred in connection with effecting cover that Purchaser could not have
reasonably mitigated; the foregoing is subject to

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Manufacturer's reservation of rights to assert any legal and equitable
defenses or excuse of performance that may be available generally or under
the terms of this Agreement.

ARTICLE 6 - INVOICING AND PAYMENT OF TOLLING FEE; WORKING FUND; AUDIT RIGHTS
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6.01 Manufacturer shall invoice Purchaser once per Month on or about the end
of each Month for all amounts due from Purchaser for the preceding Month,
and Purchaser shall pay such invoice by wire transfer or direct debit in
immediately available funds within fifteen (15) days of delivery of
Manufacturer's invoice. The delivery date for invoices that Manufacturer
transmits by e-mail shall be deemed to be the date on which Manufacturer
receives electronic confirmation of receipt of such e-mail from the e-mail
address designated by Purchaser for submission of invoices hereunder. If
e-mail is unavailable, the Manufacturer shall send such invoices by
facsimile to the facsimile telephone number designated by Purchaser for
alternate means of submission of invoices hereunder.

6.02 Purchaser shall be obligated to replenish on a Monthly basis an advance
payment ("Working Fund") to enable Manufacturer to cover reasonably
estimated average Monthly costs and expenses, including inventory carrying
costs, such as dedicated and shared raw materials and stores, for supplying
the Products hereunder. Upon execution hereof, Manufacturer shall credit
toward Purchaser's Working Fund obligation hereunder the working fund
balance of $911,968 previously deposited by Astaris LLC under the Lease and
Operating Agreement. Within fifteen (15) days after Manufacturer notifies
Purchaser of the difference, Purchaser shall pay Manufacturer the difference
between the amount credited in the preceding sentence and the Working Fund
amount required hereunder. The Working Fund shall be adjusted annually by
Calendar Year based on the previous Calendar Year's historical Monthly
costs, and reasonably estimated Monthly costs for the succeeding Calendar
Year or at any other time on account of any significant change in costs,
subject to the mutual agreement of the parties, which agreement will not be
unreasonably withheld. Any payments required to effect any adjustments in
the Working Fund balance shall be paid within fifteen (15) days of delivery
of written notice to Purchaser of the amount of the adjustment.

Upon expiration or termination of this Agreement, any balance remaining in
the Working Fund shall be applied first against any undisputed payments then
owed Manufacturer (including Purchaser's Exit Obligations) by Purchaser and
any remaining balance shall then be returned to Purchaser by the later of
sixty (60) days after termination or expiration of this Agreement or
satisfaction of Purchaser's undisputed payment obligations hereunder.

6.03 At Purchaser's request, Manufacturer's computation of actual costs of
supplying Product hereunder (meaning Utilities, NFI, Tote Bins, and Taxes)
and application of the indices (meaning Labor, Medical, and CPI) as provided
in Schedule 4.01 to this Agreement may be subject to an annual audit, but
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not more than once in any Calendar Year. Such audit shall be conducted at
Purchaser's sole cost and expense during normal

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business hours at the Manufacturing Site by an independent certified public
accounting firm (the "Auditor"). Purchaser shall nominate in writing a
proposed Auditor for Manufacturer's reasonable approval and Manufacturer
shall have fifteen (15) Working Days to approve or object to the engagement
of such Auditor. The Audit shall be completed within sixty (60) days after
the later of the date (x) the audit commences or (y) Manufacturer has
furnished the Auditor with the materials reasonably requested by the Auditor
at the commencement of the Audit; provided: (i) the Auditor shall enter into
a customary confidentiality agreement with Manufacturer in a form reasonably
acceptable to Manufacturer, and (ii) Manufacturer's data is conclusively
presumed correct once an audit has been performed and such data is
unchallenged or confirmed as correct in such audit, or, if unaudited, after
two (2) years from the date of entry into Manufacturer's books. Any dispute
between the parties with respect to the computation by Manufacturer of
actual costs shall be conclusively determined by another independent
internationally recognized firm of certified public accountants (the "CPA
Firm") mutually acceptable to the parties, and such determination shall be
final and binding upon the parties. The CPA Firm shall enter into a
confidentiality agreement as provided in clause (i) above and its fees and
expenses shall be paid by the party with the incorrect computation of actual
costs, as determined by the CPA Firm.

ARTICLE 7 - SUPPLY OF RAW MATERIALS
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7.01 Purchaser shall supply all necessary tote bins and cages (collectively
referred to herein as "Packaging Supplies") and Raw Materials at no cost to
Manufacturer which are necessary for the manufacture, fabrication, packaging
and supply of Product hereunder. Purchaser shall supply Raw Materials and
Packing Supplies on a timely basis and in sufficient quantities for the
Manufacturer to meet Purchaser's forecasts for ordering Product.
Manufacturer agrees to produce Product in accordance with the conversion
ratio as set forth in Schedule 7.01 hereto, subject to no more than a two
                      -------------
percent (2%) deviation from the yields shown therein, as determined on a
Calendar Year basis which determination shall be provided to Purchaser
within thirty (30) days after the end of such Calendar Year.

7.02 All Raw Materials provided by Purchaser hereunder shall be of
sufficient quality to adhere to the RM Specifications. Purchaser shall
provide certificates of analysis with each Raw Material shipment.
Manufacturer shall not be liable to manufacture or deliver any of the
Products for which Purchaser has failed at any time to provide adequate
quantities of Raw Materials.

7.03 Manufacturer shall be entitled to refuse to take delivery at any time
of any Raw Materials which do not meet the RM Specifications.

7.04 Manufacturer shall receive, store and process all Raw Materials in
compliance with applicable Government Regulations. Manufacturer shall
maintain customary operations, maintenance and security measures to
safeguard Raw Material, Packaging Supplies and Product against pilferage and
theft. Notwithstanding the foregoing, all Raw Materials and Packaging
Supplies provided by Purchaser to Manufacturer shall remain at

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all times the property of the Purchaser and the risk of loss with respect to
such Raw Materials and Packaging Supplies shall remain with Purchaser while
the same are in Manufacturer's possession and control, and with respect to
Raw Materials either while remaining in original Raw Material form or as
modified when incorporated into Product.

ARTICLE 8 - FORECASTS AND PURCHASE ORDERS
-----------------------------------------

8.01 On or before October 1 during each Calendar Year of the Term hereof,
Purchaser shall provide Manufacturer a non-binding annual forecast
describing on a Monthly basis Purchaser's reasonably best estimate of the
total quantity of Product Purchaser will require during the following
Calendar Year but not in excess of the Annual Production Capacity. If
Manufacturer reasonably believes it will be unable to supply the quantities
in the annual forecast, Manufacturer shall advise Purchaser in writing
within thirty (30) days of the date of Manufacturer's receipt of the annual
forecast and the parties will discuss in good faith in an effort to agree
upon mutually acceptable alternative quantities and delivery dates.
Commencing on the date hereof and thereafter during the Term hereof, not
later than seven (7) Working Days prior to the beginning of each Month,
Purchaser shall provide Manufacturer a non-binding three (3) Month forecast
containing Purchaser's reasonably best estimate of the Monthly volume of
Product Purchaser will require, but not in excess of the Quarterly
Production Capacity. Purchase Orders of Product within the Monthly
forecasted volume, but not in excess of the Monthly Production Capacity,
shall be submitted in writing or electronically on a weekly basis and
adjusted to reflect customer patterns, Raw Material delivery and finished
goods logistics. Weekly Purchase Orders shall not exceed the Weekly
Production Capacity. Purchase Orders shall specify quantity of Product to be
produced and delivered and the delivery time. In no event, shall the
cumulative volume per Purchase Orders from any 12 consecutive months exceed
the Annual Capacity.

8.02 Purchaser will accept quantities of Product as ordered which meet the
Specifications.

8.03 With respect to each delivery of Product hereunder Manufacturer shall
furnish as to each Purchase Order (which will specify the customer of
Purchaser for which the Product is to be produced), the production lot
identification and a certificate of analysis.

8.04 Manufacturer shall be entitled to schedule routine shutdowns of the
P2S5 Unit from time to time so as to be able to perform necessary
maintenance. Manufacturer will coordinate timing of such shutdowns with
Purchaser to limit, to the extent reasonably possible, interruption of
supply of Product and to ensure, the extent reasonably possible, customer
orders are met.

8.05 In the event that Purchaser requests that Manufacturer increase
production capacity at the P2S5 Unit above the Production Capacity, the
actual capital expenditures and project expenses related to such expansion
shall be borne by Purchaser as part of the Tolling Fee. If Purchaser is not
willing to bear such costs, Manufacturer shall be under no obligation to
increase capacity.

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ARTICLE 9 - RELATIONSHIP OF THE PARTIES
---------------------------------------

It is expressly agreed that the relationship between Manufacturer and
Purchaser hereunder is that of vendor and vendee and that Manufacturer is an
independent contractor, and is not an agent of Purchaser. Neither party, nor
their respective officers, employees or agents thereof are or will be deemed
to be employees, agents, partners, co-venturers or representatives, legal or
otherwise, of the other party or any affiliate thereof for any purpose
whatsoever. Neither party shall have the right or authority to assume or
create any obligation or responsibility, express or implied, on behalf of or
in the name of the other party, or to bind the other party in any manner
whatsoever.

ARTICLE 10 - PRODUCT ANALYSIS AND SAMPLES
-----------------------------------------

10.01 Manufacturer will analyze Product for compliance with Specifications
in accordance with the laboratory analysis standards set forth in Schedule
                                                                  --------
10.01 hereto. Purchaser may, upon reasonable advance written notice to
-----
Manufacturer, witness Product analysis conducted by Manufacturer. In
addition to the certificate of analysis to be provided by Manufacturer as
provided in Section 8.03 hereof, Manufacturer shall, upon request by
Purchaser, provide supporting documentation with respect to the applicable
certificate of analysis. Manufacturer shall change the laboratory analysis
standards set forth in Schedule 10.01, upon Purchaser's request or
requirement or the requirement of any Government Regulations, provided
Purchaser agrees to pay any incremental cost to Manufacturer of such change
as part of the Tolling Fee.

10.02 During the Term hereof, Manufacturer shall maintain its standard
production and quality control records for Product supplied hereunder and
retain them for the time period no less than that required under
Manufacturer's then current corporate record retention policy. If
Manufacturer proposes to dispose of any of the foregoing records pursuant to
its then current record retention policy, Purchaser, at its option, upon its
written notification to Manufacturer requesting that such records be
transferred to Purchaser and upon such notification Manufacturer shall
deliver the records to Purchaser. Such records shall be available for
inspection by Purchaser during the applicable record retention period during
normal business hours and upon reasonable advance written request to
Manufacturer.

10.03 Upon the written request of Purchaser, Manufacturer shall maintain at
the P2S5 Unit samples of each production lot or batch for a period of up to
six (6) Months after the production thereof.

10.04 In the event of a disagreement between Purchaser and Manufacturer with
respect to the compliance of any batch or lot of Product with the
Specifications, Purchaser shall have the right to request that a mutually
acceptable independent third party laboratory ("Laboratory") resolve the
dispute based upon the retained sample as provided hereinabove, or if there
is no such retained sample as a result of Purchaser not having requested
such a sample be retained, then upon such Laboratory's analysis of the
alleged

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non-conforming Product. The findings of such Laboratory shall be final and
binding upon the parties hereto. The prevailing party in such dispute shall
be responsible for the costs incurred to engage the Laboratory.

10.05 At Purchaser's sole cost and expense, Manufacturer will cooperate with
Purchaser to perform special testing of Product to support Purchaser's
customer's requirements.

ARTICLE 11 - LICENSE GRANT
--------------------------

Purchaser hereby grants, or shall cause its affiliates to grant, during the
Term hereof to Manufacturer a non-exclusive, royalty-free license to use
Purchaser's and, as applicable, its affiliates' patents, know-how and all
other technology and confidential or proprietary information (collectively,
"Technology") for the sole purpose of and to the extent required for
manufacturing Product for Purchaser hereunder.

ARTICLE 12 - LIMITED WARRANTY, LIMITATION OF LIABILITY
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12.01 Manufacturer warrants that for a period after delivery of Product of
sixty (60) days for domestic deliveries and ninety (90) days for
international deliveries, Product supplied by Manufacturer shall comply with
the Specifications. Any noncompliance in Off-Grade Material to the extent
caused by (i) a failure of Raw Materials to comply with the RM
Specifications or (ii) Manufacturer's use (but not misuse) of the
Technology, is not covered by this warranty. If Purchaser discovers that any
Product does not comply with Specifications and notifies Manufacturer in
writing during the applicable warranty period, Manufacturer shall replace
such Off-Grade Material, including for these purposes reworking or blending
of the Off-Grade Material with new Product meeting the Specifications. In
the event that, in Manufacturer's reasonable judgment, blending of the
Off-Grade Material is not likely to remedy the noncompliance with
Specifications, Purchaser agrees to use its reasonable best efforts to
market such Off-Grade Material and if successful, no further claim as to
such Off-Grade Material shall be made by Purchaser. Notwithstanding the
foregoing, Manufacturer shall reimburse Purchaser in the exercise of such
reasonable best efforts for any reasonable discounts granted by Purchaser to
its customers that purchase Off-Grade Material to the extent that such
discount was offered solely as an inducement to purchase product that does
not comply with the Specifications.

12.02 THIS LIMITED WARRANTY IS THE SOLE AND EXCLUSIVE WARRANTY MADE BY
MANUFACTURER AND IS IN LIEU OF AND EXCLUDES ALL OTHER REPRESENTATIONS OR
WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, ARISING BY OPERATION OF LAW,
CUSTOM, CONDUCT, USAGE OF TRADE OR OTHERWISE, INCLUDING WITHOUT LIMITATION,
WARRANTIES AS TO MERCHANTABILITY OR FITNESS FOR PARTICULAR PURPOSE, AND THE
RIGHTS AND REMEDIES OF PURCHASER PROVIDED HEREIN ARE EXCLUSIVE OF ANY OTHER
RIGHTS OR REMEDIES OF PURCHASER. PURCHASER'S EXCLUSIVE REMEDY FOR BREACH OF
THE WARRANTY IN SECTION 12.01 WITH RESPECT TO ANY PRODUCT IS TO RECEIVE A
TIMELY

                                                                          12

<PAGE>
<PAGE>

REPLACEMENT OF, OR IF NOT TIMELY REPLACED, A CREDIT FOR SUCH PRODUCT.

12.03 IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER (WHETHER BASED
IN CONTRACT, NEGLIGENCE, STRICT LIABILITY OTHER TORT OR OTHERWISE) FOR
SPECIAL, INDIRECT, CONSEQUENTIAL OR INCIDENTAL DAMAGES.

ARTICLE 13 - INSURANCE
----------------------

13.01 Each party shall maintain comprehensive general liability insurance,
including product liability coverage and workers compensation liability, as
well as property damage and business interruption insurance, in each case,
with limits of no less than $1,000,000 per occurrence and a combined single
limit of not less than $2,000,000, and with deductibles (or self-insured
retentions) of no more than $1,000,000. Purchaser shall be responsible for
the deductibles and self-insured retentions under Manufacturer's insurance
policies. To the extent permitted by Manufacturer's insurance policies,
Purchaser will have the right upon notice to Manufacturer to control the
defense of any claims within Manufacturer's policy deductibles (or
self-insured retentions) that arise out of the operation of the P2S5 Unit or
Product supplied by Manufacturer hereunder, other than any claims asserted
by Purchaser against Manufacturer.

13.02 (a) In addition to maintaining its customary and ordinary commercial
general liability insurance and product liability, property damage and
business interruption insurance policies (the "Manufacturer's Corporate
Policies"), Manufacturer will procure product liability and property damage
and business interruption insurance coverage applicable solely to the P2S5
Unit ("P2S5 Unit Insurance") with policy limits equal to the then current
deductible or self-insured retention under the applicable Manufacturer's
Corporate Policies. The P2S5 Unit Insurance will contain its own deductible
or self-insured retention amount of not more than one million dollars
($1,000,000).

         (b) In lieu of such P2S5 Unit Insurance coverage for product
liability, Purchaser may, at its option, include Manufacturer as a named
insured under Purchaser's product liability insurance policy.

         (c) At the request of the Purchaser, no later than thirty (30) days
prior to each annual renewal by Manufacturer of the P2S5 Unit Insurance
("P2S5 Insurance Renewal Date"), Manufacturer will provide Purchaser
reasonably sufficient information for Purchaser to evaluate procuring its
own quotation for insurance to replace the P2S5 Unit Insurance for the
applicable renewal period. Manufacturer shall in each case proceed to obtain
its own P2S5 Unit Insurance renewal quotations. At the request of Purchaser
not later than ten (10) days prior to the P2S5 Insurance Renewal Date, the
parties will jointly evaluate their respective quotations, including
descriptions or copies of the then current Manufacturer's Corporate Policies
and P2S5 Unit Insurance sufficient for Purchaser to obtain bids for
comparable insurance, and if Purchaser's quotation (i) is from an insurance
company rated at least A by AM Best, (ii) has a premium of at least a five

                                                                          13

<PAGE>
<PAGE>

percent (5%) below the quotation obtained by Manufacturer, (iii) provides
coverage at least as comprehensive as Manufacturer's quotation, (iv) is not
duplicative of Manufacturer's Corporate Policies and (iv) does not conflict
with, compromise, limit, prejudice or increase the cost of or otherwise have
an adverse effect on Manufacturer's Corporate Policies' or the renewal
thereof. Manufacturer will subscribe for such insurance coverage proposed by
Purchaser and such insurance shall then become the P2S5 Unit Policy for the
applicable renewal period. In such event, the Solutia Insurance line item of
Fixed Costs pursuant to Schedule 4.01 hereto shall be reset to account for
                        -------------
the lower premium.

13.03 Purchaser shall, with respect to Manufacturer's Corporate Policies, be
responsible for any increase in premiums or retroactive premium adjustment
attributable to insurance proceeds and recoveries received by Manufacturer
for claims arising out of the operation of the P2S5 Unit or Product supplied
by Manufacturer hereunder.

ARTICLE 14 - INDEMNIFICATION
----------------------------

14.01 Subject to Purchaser's obligation under Article 13 hereof to bear the
cost of Manufacturer's insurance policy deductibles, each party agrees to
indemnify, defend and hold the other party and its affiliates and their
respective officers, directors, partners, equityholders, stockholders,
employees, agents and representatives (the "Indemnified Persons") harmless
from and in respect of any and all losses, claims, liabilities, obligations,
damages, fines, penalties and costs (in each case including reasonable
out-of-pocket expenses (including reasonable fees and expenses of counsel,
experts and accountants and reasonable fees and expenses to enforce this
indemnity)) (each a "Loss" and collectively, "Losses"), that are asserted
                     ----                     ------
against or paid, suffered or incurred by any Indemnified Persons which,
directly or indirectly, arise out of any third party personal injury or
property damage claims arising out of or resulting from the negligent acts
or omissions of the other party hereunder.

14.02 If there occurs an event which a party asserts is an indemnifiable
event pursuant to Section 14.01, the Indemnified Persons shall notify the
other party obligated to provide indemnification (the "Indemnifying Party")
promptly in writing specifying the facts constituting the basis for such
claim and the amount, to the extent known, of the claim asserted. If such
event involves (i) any third party claim or (ii) the commencement of any
Proceeding by a third person (such third party claim and Proceeding
hereinafter referred to collectively as a "Third Party Claim"), the party
seeking indemnification will give such Indemnifying Party prompt written
notice of such Third Party Claim or the commencement of such Proceeding;
provided, however, that the failure to provide prompt notice as provided
--------  -------
herein (whether with respect to a Third Party Claim or otherwise) will
relieve the Indemnifying Party of its obligations hereunder only to the
extent that such failure prejudices the Indemnifying Party hereunder. In
case any such Third Party Claim shall be brought against any party seeking
indemnification, it shall notify the Indemnifying Party of the commencement
thereof promptly in writing specifying the facts constituting the basis for
such claim and the amount, to the extent known, of the claim asserted. The
Indemnifying Party shall be entitled to participate

                                                                          14

<PAGE>
<PAGE>

therein and to assume the defense thereof, with counsel selected by the
Indemnifying Party; provided that the Indemnifying Party notifies the
                    --------
Indemnified Party in writing of its election to assume such defense within
twenty (20) Working Days of receipt of notice from the Indemnified Party of
such Third Party Claim. After notice from the Indemnifying Party to the
Indemnified Persons of such election so to assume the defense thereof, the
Indemnifying Party shall not, except as provided in this Section 14.02, be
liable to the Indemnified Persons for any legal expenses of other counsel or
any other expenses subsequently incurred by such party or parties in
connection with the defense thereof. Notwithstanding the Indemnifying
Party's election to so assume the defense of any such Third Party Claim, the
Indemnified Party shall have the right to employ separate counsel at its
sole cost and expense and participate in (but not control) such defense. The
Indemnifying Party and the Indemnified Party agree to cooperate with each
other and their respective counsel in connection with the defense,
negotiation or settlement of any such Third Party Claim, including providing
access to any relevant books and records and properties. If the Indemnifying
Party assumes the defense of a Third Party Claim, no settlement or
compromise thereof may be effected by the Indemnifying Party without the
written consent of the Indemnified Party (which consent shall not be
unreasonably withheld or delayed. If the Indemnifying Party elects not to
assume the defense of a Third Party Claim, the Indemnified Party may assume
the defense of any such Third Party Claim with counsel selected by the
Indemnified Party, and the Indemnifying Party shall bear reasonable fees and
expenses of such counsel.

ARTICLE 15 - OWNERSHIP AND RISK OF LOSS
---------------------------------------

Title to, and risk of loss for or damage and other incidents to, the Raw
Materials and Packaging Supplies supplied by Purchaser shall remain with
Purchaser at all times. Title to, risk of loss for or damage and incidents
of ownership shall pass to Purchaser at the time Product is loaded into
totes or railcars at the P2S5 Unit.

ARTICLE 16 - CONFIDENTIALITY; COVENANT NOT TO COMPETE
-----------------------------------------------------

16.01 Manufacturer shall treat and maintain, and cause its employees and
agents to treat and maintain, as Purchaser's confidential property, and not
use or disclose to others during the Term hereof and for three (3) years
following termination of this Agreement any information (including any
technical information, experience or data) regarding Purchaser's products,
plans, programs, operations, or customers which may be heretofore or
hereafter disclosed to, or come within the knowledge of, Manufacturer, its
directors, officers, employees or agents in the performance of this
Agreement, without in each instance securing the prior written consent of
Purchaser.

16.02 Each party shall treat and maintain, and cause its employees and
agents to treat and maintain, the other party's information as confidential
property, and not use or disclose to others any information (including any
technical information, experience or data) regarding the other party's
products, plans, programs, plants, processes, costs, equipment, operations,
or customers which may be heretofore or hereafter disclosed to, or come
within the knowledge of a party, its directors, officers, employees or
agents in the

                                                                          15

<PAGE>
<PAGE>

performance of this Agreement, without in each instance securing the prior
written consent of the other party.

16.03 The provisions of this Article 16 shall not apply to any information
referred to in this Article which the disclosing party establishes (i) has
been published and has become part of the public domain other than by acts
or omissions of that party, its employees or agents, (ii) has been furnished
or made known to the disclosing party by third parties (not including for
these purposes FMC) without restriction on disclosure or use, or (iii) was
lawfully in the disclosing party's possession (except for these purposes
Purchaser's Technology) prior to disclosure thereof by the other party and
was not acquired by the party, its employees or agents directly or
indirectly from the disclosing party or its employees or agents. Specific
information shall not be deemed to fall within any of these exceptions
merely because it is within the scope of more general information which
falls into one or more of these exceptions.

16.04 During the first five (5) years during the Term hereof, Manufacturer
shall not directly or indirectly, as an owner, equityholder, manager,
operator, consultant, member, partner, licensor, contractor, agent or in any
other capacity, engage, or provide any financing or lease or license any
assets to any person that engages or, to the knowledge of such Manufacturer,
intends to engage in any business or other enterprise that develops,
manufacturers, produces, distributes, licenses, mines, markets or sells any
Product; provided, however, that Manufacturer is not hereby prevented from
investing in or acquiring any equity or debt securities in a person if (x)
the investment is for passive investment purposes only (e.g., pension fund
investment) without any participation in the management of such person and
the securities owned by Manufacturer, do not comprise more than two percent
(2%) of the total issued and outstanding debt or equity securities of such
person or (y) if the condition in the preceding subclause (x) is not
fulfilled, Manufacturer completely divests itself, or enters into a
definitive written agreement for the sale, of the debt or equity securities
as promptly as practicable and in any event prior to the six (6) month
anniversary of the closing of such investment. Further, commencing on the
date hereof and for a period of five (5) years after the expiration or
termination hereof, Manufacturer shall not, directly or indirectly,
manufacture or sell Product or any product which can reasonably replace or
be substituted for Product produced hereunder; provided, however, that,
                                               --------  -------
commencing upon the sixth anniversary of this Agreement during the period
prescribed in the preceding clause of this sentence: (i) Manufacturer's
pension funds are not hereby prevented from investing in or acquiring any
equity or debt securities in a person which might be engaged in any business
in competition with the Product and (ii) Manufacturer is not prevented from
(x) investing in or acquiring any equity or debt securities in any person if
the investment is for passive investment purposes only (that is without any
participation in the management of such person) or (y) acquiring a
controlling stake in, and active management of, any person provided that
such person does not derive more than twenty percent (20%) of its net
revenue from any product which competes with any Product produced under this
Agreement or (z) if the condition in the preceding subclause (y) is not
fulfilled, Manufacturer completely divests itself, or enters into a
definitive written agreement for the sale of that portion of the business of
any such person which does sell products which compete with the Products as

                                                                          16

<PAGE>
<PAGE>

promptly as practicable and in any event prior to the twelve (12) month
anniversary of the closing of such investment or acquisition.

ARTICLE 17 - PERMITS AND LICENSES; COMPLIANCE WITH LAW
------------------------------------------------------

17.01 During the Term hereof, Manufacturer hereby undertakes to make timely
applications to all competent authorities and obtain and maintain, at its
expense all licenses, consents, permits and other authorizations required to
operate the P2S5 Unit, including the renewals thereof. Commencing on the
second anniversary of the date of this Agreement, Purchaser shall indemnify
Manufacturer against liability arising from any claim by a third party
alleging that its rights have been infringed by reason of use by
Manufacturer of the Technology supplied hereunder.

17.02 Manufacturer and Purchaser each agree to perform their respective
obligations hereunder in compliance with Government Regulations. Pursuant to
the provisions contained in Schedule 4.01, Purchaser agrees to reimburse
                            -------------
Manufacturer for any operating expenses, capital and project expenses
required by Manufacturer to be incurred to comply with new or existing
environmental laws or amendments thereto or Government Regulations
applicable to the production of Product at the P2S5 Unit during the Term so
as to enable Manufacturer to lawfully continue to manufacture Product
hereunder in accordance with its then current manufacturing process. For the
avoidance of doubt, Purchaser shall not be responsible for costs incurred to
correct non-compliance with environmental laws or Government Regulations
first occurring prior to or after the Term. In connection with
Manufacturer's activity hereunder, Manufacturer shall be responsible for any
and all costs of environmental investigation and remediation and other
response actions with respect to the environmental condition of the
Manufacturing Site and for any fines or other sanctions or impositions
assessed in connection with Manufacturer's activities hereunder for
noncompliance with Government Regulations related to protection of the
environment. Manufacturer shall have the sole responsibility for procuring
all required permits in Manufacturer's name and shall comply with all
permits required by applicable Government Regulation, and comply with all
Government Regulations with respect to storage, transportation, treatment,
recycling, and disposal of any solid or hazardous wastes generated in
connection with Manufacturer's activities.

ARTICLE 18 - FORCE MAJEURE
--------------------------

18.01 Neither party shall be responsible for any failure to comply with the
terms of this Agreement, or for any delay in performance of, or failure to
perform under this Agreement, where such failure or delay is due to causes
beyond the reasonable control of the party failing to perform, including,
but not be restricted to, fire, storm, flood, earthquake, explosion,
accident, acts of the public enemy, war, riots, terrorism, rebellion,
insurrection, sabotage, epidemic, quarantine restrictions, labor disputes,
labor strikes, lockouts, boycotts, labor shortages, transportation embargoes
or failures or delays or interruptions in transportation or shortages of
transportation equipment, inability to secure necessary raw materials or
machinery, failure of machinery, acts of God, acts of any government,
whether national, municipal or otherwise, or any agency thereof, and

                                                                          17

<PAGE>
<PAGE>

judicial or legislative action, new or amended laws or regulations, orders
of courts or acts of civil or military authorities.

18.02 A strike, lockout or other labor disturbance shall be deemed to be
beyond the reasonable control of the party whose performance is prevented by
such strike or labor disturbance, and nothing in this Agreement shall be
construed as requiring either party to accede to the demands of employees
that such party considers contrary to its interests, whether or not those
employees are represented by a union or other organization.

18.03 The party claiming excuse from performance shall send prompt written
notice to the other party declaring force majeure and setting forth a brief
description of the event of force majeure and the extent of the excuse
claimed. Such notice of force majeure shall be deemed accepted by the
recipient unless objected to in writing within ten (10) days after receipt
thereof. The requirement of giving prompt written notice of an event of
force majeure shall be a covenant only and shall not be deemed to be a
condition.

18.04 If due to a force majeure event either party is unable to perform any
of its obligations under this Agreement (other than obligations of Purchaser
to pay invoices for Product previously delivered in the performance of this
Agreement), then the performance of the party unable to perform shall be
excused to the extent made necessary by such force majeure event and during
it continuance; provided, however, that the party unable to perform shall
use its commercially reasonable efforts to remedy or overcome, unless
commercially impracticable, such force majeure event. Manufacturer may, for
example, make partial delivery to Purchaser in proportions that are
reasonable under the circumstances. Deliveries suspended or not made by
reason of this Article 18 shall be cancelled without obligation or
liability, but this Agreement shall otherwise remain unaffected.

ARTICLE 19 - NOTICES
--------------------

Any notice, demand, or communication required or permitted to be given
hereunder by any provision of this Agreement shall be in writing and shall
be deemed to have been sufficiently given or served for all purposes if (a)
personally delivered, when delivered, (b) mailed by certified first class
mail, prepaid with return receipt requested, on the earlier of the date
actually delivered and the fifth (5th) Business Day after mailing, (c) sent
by a nationally recognized overnight courier service, to the recipient at
the address below indicated, on the earlier of the date actually delivered
and the third (3rd) Business Day after sending or (d) delivered by facsimile
which is confirmed in writing by sending a copy of such facsimile to the
recipient thereof when confirmation thereof is received:

                                                                          18

<PAGE>
<PAGE>

         If to the Purchaser or ICL:

                           Israel Chemicals Limited
                           Millennium Tower
                           23 Aranha Street
                           Tel Aviv 61070, Israel
                           Attention:  Alexander Paz
                           972-3-684-4434 (telecopier)

                  With a copy (which shall not constitute notice to the
                  Buyer or ICL) to:

                           Shavit Bar-On Gal-On Tzin Nov Yagur, Law Offices
                           Sonol Tower - 20th Floor
                           52 Menachem Begin Road
                           Tel Aviv 67137 Israel
                           Attention: Ilan Shavit
                           972-3-791-2801 (telecopier)

                  With a copy (which shall not constitute notice to the
                  Buyer or ICL) to:

                           Dechert LLP
                           4000 Bell Atlantic Tower
                           1717 Arch Street
                           Philadelphia, PA 19103
                           Attention:  William G. Lawlor, Esq.
                           (215) 994-2222 (telecopier)

         If to Manufacturer: To each of the following addresses/locations

                           Solutia Inc.
                           575 Maryville Centre Drive
                           St. Louis, MO 63141
                           Facsimile: 314-674-7904
                           Attn: General Manager B2B Chemicals

                  With a copy to:

                           Solutia Inc.
                           575 Maryville Centre Drive
                           St. Louis, MO 63141
                           Facsimile: 314-674-5469
                           Attn: General Counsel

                                                                          19

<PAGE>
<PAGE>

                  With a copy (which shall not constitute notice to any
                  Owner or Seller) to:

                           Kirkland & Ellis LLP
                           Citigroup Center
                           153 E. 53rd Street
                           New York, NY 10022
                           Attention: Thomas W. Christopher, Esq.
                           (212) 446-6460 (telecopier)

ARTICLE 20 - SUCCESSORS AND ASSIGNS
-----------------------------------

No party may assign or otherwise transfer any of its rights, or delegate the
performance of its obligations under this Agreement without the prior
written consent of the other party, which consent shall not be unreasonably
withheld. Any change in control of a party shall be deemed to be an
assignment for purposes of this Article 20 requiring consent of the other
party. Any attempted assignment, transfer or delegation without such consent
shall be void and of no effect. For purposes of this Article 20, a change in
control shall be deemed to occur if substantially all of the assets or more
than 35% of the equity securities or voting control of the equity securities
or voting interest of a party is acquired by a single party or several
parties acting in concert.

ARTICLE 21 - MISCELLANEOUS
--------------------------

21.01 This Agreement constitutes the full understanding of the parties, a
complete allocation of risks between them and a complete and exclusive
statement of the terms and conditions of their agreement with respect to the
supply by Manufacturer and the purchase by Purchaser of Product and all
prior agreements, negotiations, dealings and understandings relating
thereto, whether written or oral, regarding the subject matter hereof, are
hereby superseded and merged into this Agreement. No conditions, usages of
trade, course of dealing or performance, understanding or agreement
purporting to modify, vary, explain or supplement the terms or conditions of
this Agreement shall be binding unless hereafter made in writing and signed
by the party to be bound, and no modification shall be effected by the
acknowledgment or acceptance of any forms containing terms or conditions at
variance with or in addition to those set forth in this Agreement. The terms
and conditions of this Agreement shall control the rights of the parties
notwithstanding any inconsistent or additional terms and conditions
contained in any purchase order, acknowledgment, invoice, or other similar
order or shipping document which may be used by either party.

21.02 No waiver by either party with respect to any breach or default or of
any right or remedy and no course of dealing or performance shall be deemed
to constitute a continuing waiver of any other breach or default of any
other right or remedy, unless such waiver be expressed in writing signed by
the party to be bound.

21.03 Headings as to the contents of particular Articles are inserted for
convenience only and do not form part of this Agreement.

                                                                          20

<PAGE>
<PAGE>

21.04 The validity, interpretation and performance of this Agreement and any
dispute connected herewith shall be governed by and construed in accordance
with the laws of the Illinois. In considering any dispute hereunder, the
parties expressly agree that this Agreement shall be construed as being
between residents of Illinois performing a contract solely with in Illinois
and that all laws, court precedents, custom practice and usage relating to
conflicts of laws shall be disregarded in their entirety in determining the
parties' rights and obligations hereunder.

21.05 If any term, condition or provision of this Agreement or any
application thereof shall be held invalid or unenforceable, the remainder of
this Agreement, or any other application of such term, condition or
provision, shall not be affected thereby and this Agreement shall be
construed, enforced and performed so as to implement the parties' intent
hereunder as if such invalid or unenforceable provision did not exist.

21.06 Purchaser will be entitled to inspect the Manufacturing Site and P2S5
Unit upon reasonable advance written notice to Manufacturer. Manufacturer
will supervise and provide reasonable assistance and support for visits to
the Manufacturing Site and P2S5 Unit by Purchaser's customers.

         IN WITNESS WHEREOF, the parties hereto have each caused this
Agreement to be executed in two original copies by their respective duly
authorized representatives the day and year first above written.

SOLUTIA INC.

By: /s/ James M. Sullivan
   ---------------------------------
   Name: James M. Sullivan
   Title: Senior Vice President and
          Chief Financial Officer

PHOSPHORUS DERIVATIVE INC.

By: /s/ Alexander Maurer
   ---------------------------------
   Name: Alexander Maurer
   Title: Vice President

                                                                          21

<PAGE>
<PAGE>

Schedules
---------

1.08     Land

1.17     Product Specifications

1.18     Production Capacity

1.20     Raw Materials Specifications

4.01     Tolling Fee

7.01     Conversion Ratio

10.01    Laboratory Analysis StandardsWWW.EXFILE.COM, INC. -- 13929 -- MEDIS TECHNOLOGIES LTD. -- EXHIBIT 10.1 TO FORM 10-Q

    EXHIBIT
      10.1

     

    Capital
      Equipment Purchase Agreement

    

    More
      Energy Ltd.

    2
      Yodfat
      Street

    Global
      Park, PO Box 1112

    Lod
      71291

    Israel

    and

    Ismeca
      Europe Automation SA

    Rue
      de
      l’Helvétie 283

    CH
      - 2301
      La Chaux-de-Fonds 

    Switzerland

    

    are
      the
      parties to the present agreement.

    

    WHEREAS

    More
      Energy Ltd. (“More Energy” or “Customer”) and Ismeca Europe Automation SA
      (“Ismeca” or “Seller”) have agreed to enter into this Purchase Agreement under
      which Customer will purchase from Seller the Deliverables (defined herein),
      all
      in accordance with the terms of this Agreement. Customer will issue a formal
      Purchase Order to implement this Purchase Agreement:

     

    EFFECTIVE
      DATE.
      The
      Effective Date of this Purchase Agreement shall be September 21st, 2005.

    

    1.     ENTIRE
      AGREEMENT AND SELLER’S BASIC UNDERTAKING 

    

    
      	1.1	
              This
                Purchase Agreement contains the complete, final and exclusive agreement
                between More Energy and Seller regarding the goods and services ordered
                under this Agreement and the corresponding PO. Except as otherwise
                explicitly agreed by More Energy in writing, conflicting, different
                or
                additional terms (including, but not limited to, those set forth
                in the PO
                and in the Proposal) are expressly rejected and acceptance of this
                offer
                is expressly limited to the terms set forth
                herein.

            

    

    

    
      	1.2	
              Seller
                hereby undertakes to carry out the project hereunder, including the
                delivery of Equipment, Documentation and Services as described in
                detail
                in Annex 1 hereto, in accordance with the highest standards in the
                industry and in compliance with the Program Schedule attached hereto
                as
                Annex 2 and the Specification attached hereto as Annex 3, as same
                may be
                updated and modified by mutual written agreement of Seller and Customer
                from time to time.

            

    

    

    2.    PRICE
      AND INVOICING

    

    
      	
              2.1
                

            	
              The
                prices for the Equipment, Documentation and Services are as indicated
                below and in Annex 1 hereto, are payable in Swiss Francs, and shall
                remain
                in effect during the duration of the project unless modified by mutual
                agreement. 

            

    

    

    
      	
            	 	
              Prices
                made to Seller are indicated in Swiss Francs and are fixed and not
                subject
                to any escalation.

            

    

    

    
      	2.2	
              Prices
                are net excluding shipping, insurance and, packing, in accordance
                with the
                EXW conditions of the 2003 Incoterms, excluding VAT, without any
                deductions. They shall 

            

    

    

    
      
        Capital
          Equipment Purchase Agreement

        
        

      

      
        -1-

        
          

        

      

      
         

      

    

    
      

      
        	 	
                be
                  valid for the Order as defined in the Confirmation however they
                  may be
                  modified by Ismeca and More Energy in case of changes made by the
                  Customer
                  to its Order (specifications, deadlines, quantities, etc. of the
                  Product
                  or the Component) or in case of a delay following a reason attributable
                  to
                  the Customer. Seller’s prices for the Equipment do not include the
                  following items which, when applicable, shall appear as separate
                  additional items on the appropriate invoice:

              

      

       

    

    
      
        
          
            
              
                
                  
                    
                      	
                            	
                              a.

                            	
                              Sales
                                and use
                                taxes.

                            

                    

                  

                

              

            

          

        

      

    

    
      
        
          
            	
                  	
                    b.

                  	
                    Customs,
                      duties, licenses, import duties, and export
                      fees.

                  

          

        

      

    

    
      
        
          	
                	
                  c.

                	
                  Packing,
                    shipping, transportation, insurance or freight to the production
                    site or
                    sites (as determined by More
                    Energy).

                

        

      

    

    
      	
            	
              d.

            	
              Installation
                of the equipment at the production site or
                sites.

            

    

    
      	
            	e.	
              Site
                acceptance tests (SAT)

            

    

    

    At
      such
      time as the Parties define the scope of work for d and e above, Seller shall
      quote same based upon its standard hourly rate for the Seller personnel to
      be
      involved in the effort, plus reasonable out of pocket expenses, and the parties
      will negotiate a mutually acceptable price.

    

    
      	2.3	
              Seller
                shall issue individual invoices for required milestone payments per
                line.
                Payment for the Equipment shall be separated into five equipment
                groups or
                sub-systems, respectively:

            

    

     

    
      	·  	
              Machine
                1-
                CHF 2’914’000

            

    

    
      	·  	
              Machine
                2-
                CHF 1’321’000

            

    

    
      	·  	
              Machine
                3 and its’ associated Leak Tester - CHF
                2’726’300

            

    

    
      	·  	
              Machine
                4 and its’ associated Leak Tester - CHF
                980’000

            

    

    
      	·  	
              Machine
                5 and the Machine buffers / interface - CHF
                4’051’000

            

    

    
      	·  	
              PCB
                cutting machine, pouch machine, packaging, and Line Supervision -
                $ CHF
                2’077’000

            

    

    

    
      	2.4	
              Invoices
                will be generated for each of the above sub-systems and are to be
                based on
                the following schedule.

            

    

    

    
      	
            	a.	
              15%
                of
                the line amount at order placement.

            

    

    
      	
            	b.	
              15%
                of
                the line amount at completion of mechanical design review for each
                such
                sub-systems.

            

    

    
      	
            	c.	
              30%
                of
                the line amount at system “power up” for each such sub-systems.
                

            

    

    
      	
            	d.	
              30%
                of
                the line amount following successful pre-acceptance at our facility
                (see
                section 3.4 below regarding partial acceptance and partial
                payment)

            

    

    
      	
            	e.	
              10%
                of
                the line amount following a final acceptance at the production
                site.

            

    

    

    Invoices
      shall be paid by Customer net thirty (30) days after its receipt of the original
      invoice and (except for a above) a Certificate of Milestone Completion signed
      by
      Seller and Customer’s designated representatives. 

    

    3.    ACCEPTANCE
      CRITERIA

    

    There
      are
      to be two acceptance test runs, one at Seller’s plant to confirm system
      conformance with the Specification and the Acceptance Test Criteria, and one
      at
      the production site to reconfirm confirm system conformance with the
      Specification and the Acceptance Test Criteria after shipping and
      reinstallation. The Parties will, in accordance with the Program Schedule,
      mutually agree on a detailed Test Plan for each acceptance test as well as
      Acceptance Test Criteria for successful passage of such tests.

    

    
      
        Capital
          Equipment Purchase Agreement

        
        

      

      
        -2-

        
          

        

      

      
         

      

       

    

    The
      pre-acceptance test run will be for two complete runs of four hours each and
      will occur at Seller’s plant. The test will assemble and test the More Energy
      product as described in Annex 1. Seller will provide engineering and technician
      support and conduct the acceptance test run. Customer may have its project
      engineer, and any other personnel its selects, present for these test runs.
      During the test run, the machine shall comply with the Acceptance Test Criteria,
      as well as meet the following criteria:

     

    
      	3.1	
              The
                machine shall achieve a net throughput, after reductions for downtime
                and
                yield losses, of at least 8’996 accepted units (which represents an
                average overall line efficiency of 85% and yield of 98% at the rated
                system throughput rate of 45 parts per minute). For this test run
                the
                system will start from a “full machines / full buffers” condition and the
                counters reset at that point. Note; system throughput is the determining
                factor; cycle rates of individual assembly cells may fluctuate in
                order to
                meet the target throughput rate. 

            

    

     

    
      	3.2	
              Downtime
                and yield losses due to non-machine causes shall not count against
                machine
                performance.
                Downtime and yield losses due to non-machine causes may result from
                the
                following:

            

    

    

    ·  Shortage
      of bulk parts in feeding systems

    ·  Depletion
      of fluids in dispensing systems

    ·  Out-of-specification
      components 

    ·  Operator
      failure

    ·  Downtime
      directly caused by processes which are mandated by Customer

    ·  Failure
      of air, vacuum, or incoming power supplies

    

    Preliminary
      acceptance shall occur upon successful completion of this test as evidenced
      by
      the signature of both Customer and Seller’s designated representatives on a
      Milestone Completion Certificate. In the event of any failures in the test,
      Seller shall correct the failed items on a timely basis and submit the system
      or
      relevant subsystem for retest in accordance with the mutually agreed Test Plan
      and Acceptance Test Criteria. 

    

    
      	3.3	
              A
                second and final Acceptance Test will be performed at the production
                facility (currently expected to be at CELESTICA’s facility in Ireland),
                consisting of three complete runs of four hours each. These tests
                are to
                confirm that no damage resulted from transit, and that the installation
                has been correctly completed. The same Acceptance Test Criteria shall
                apply to this final Acceptance Test. Final acceptance shall occur
                upon successful completion of this test as evidenced by the signature
                of
                both Customer and Seller’s designated representatives on a Milestone
                Completion Certificate. In the event of any failures in the test,
                Seller
                shall correct the failed items on a timely basis and submit the system
                or
                relevant subsystem for retest in accordance with the mutually agreed
                Test
                Plan and Acceptance Test Criteria. The Seller’s cost for such retest shall
                be at its own expense. 

            

    

    

    
      	3.4	
              When
                possible, the entire line will be tested together as a complete system.
                When for reasons of component availability and or process related
                issues a
                full line pre-acceptance is not possible, the parties agree to accept
                (test run) individual sections of the line using the same acceptance
                criteria as indicated above. In this case, pre-acceptance of a section
                will result in a 15% payment to Ismeca for the respective section
                approved
                by Customer with the 15% balance (under 2.4(d) above) being payable
                together with the final acceptance under 2.4(e) above. Invoicing
                of
                accepted sections of the line (pro-rata based upon their relative
                values
                as indicated in above in 

            

    

    
       

      
        
          Capital
            Equipment Purchase Agreement

          
          

        

        
          -3-

          
            

          

        

        
           

        

      

       

      
        	 	
                section
                  2.3) will occur following pre-acceptance. Shipping of accepted
                  sections of
                  the complete line will occur when mutually agreed by More Energy
                  and
                  Ismeca. 

              

      

       

      4.    INDEPENDENT
        AGREEMENTS

    

    

    This
      Purchase Agreement expressly overrides any other terms and conditions regarding
      the Goods and Services (including, but not limited to, the terms and conditions
      set forth in the PO and the terms and conditions set forth in the
      Proposal).

     

    5.    CHANGES

    

    The
      system described in Annex 1 represents Seller’s best understanding of the
      assembly and test requirements of the product being assembled as set froth
      in
      the Specification set forth in Annex 3. Should changes occur in More Energy’s
      product or assembly processes which impact the equipment design, or should
      new
      assembly or test requirements come to light, Seller reserves the right to
      request equitable adjustments to the price and/or delivery of the equipment.
      All
      such changes will be communicated in writing via a “Project Change Notice”
      (PCN). Notwithstanding the above, any deficiencies in the design or workmanship
      of the system set forth in Annex 1 to meet the Specifications set forth in
      Annex
      3 will be corrected at the sole expense of Seller on a timely and expeditious
      basis so as not to delay the overall Program Schedule. 

    

    Further,
      More Energy is entitled, at any time, to request changes to the specifications
      for the Goods and/or Services or any other matters relating to performance
      under
      this Purchase Agreement; provided that the price and/or delivery schedule may
      be
      equitably adjusted with More Energy to reflect additional costs and/or schedule
      adjustments required by the changes. Any change requested that has an impact
      on
      Equipment cost, scope, and or delivery, must be approved of in writing by More
      Energy, if necessary with the appropriate “Project Change Notice” issued, before
      Seller will make such changes. Any claim for adjustment is waived unless made
      in
      writing within thirty (30) days after receipt of More Energy written change
      order. Seller shall not make any change or deviation to Goods and/or Services
      covered specifically by the Proposal, PO, and/or this Purchase Agreement, except
      with More Energy’s prior written consent. Upon approval by More Energy of the
      initial design, any process changes, design changes or deviations considered
      by
      Seller must be submitted to More Energy in writing for review. If changes are
      submitted for approval, the information submitted must include a complete
      description of the change and the effect of the change will have on all
      characteristics of the product. 

    

    6.    WARRANTY

    

    Seller
      warrants, for a period of one (1) year or 8,760 system operating hours
      (whichever comes first) after date of final Acceptance by Customer, the
      equipment to be furnished hereunder will be in full conformity with the
      specifications, drawings, and/or other description furnished by More Energy
      and
      that all items furnished hereunder will be free from defects in design,
      workmanship, materials, and manufacture, and will be fit for the use intended
      by
      More Energy. Such warranty shall be in addition to any warranties of broader
      scope and service warranties and guarantees given to More
      Energy by Seller, shall survive inspection test, acceptance of and payment
      for
      the equipment and shall run to More Energy, its successors and assigns.

    

    All
      warranty service, other than easily accomplished part replacement, shall be
      conducted by Seller or its agents at the production facility in a manner which
      does not 

     

    
      
        Capital
          Equipment Purchase Agreement

        
        

      

      
        -4-

        
          

        

      

      
         

      

    

     

    unreasonably
      disrupt More Energy’s operations, and without additional cost to More Energy.
      Seller will pay all freight for repair and replacement parts under warranty
      sent
      to Seller and back to the More Energy issuing location. All equipment and
      software upgrades, revisions, modifications, etc. will be included in the
      warranty period. 

    

    Seller
      will make every effort to respond to requests by More Energy for warranty
      services within 24 hours of request and in no event shall a response require
      longer than 48 hours. More Energy shall have the right to repair warranty
      defects if Seller is unable or unwilling to repair such warranty defects within
      48 hours of notification of such defects. In the event More Energy elects to
      take this action, it shall be entitled to deduct from any amounts owing to
      Seller the direct and incidental costs incurred in remedying the breach of
      warranty or bill Seller for same if no such payments are due

    

    The
      warranties and representations described in this purchase agreement are in
      lieu
      of other warranties imposed by custom or law of any jurisdiction. Except as
      otherwise expressly set forth herein, Seller shall have no responsibility for
      incidental, indirect, special, punitive or consequential damages, except if
      such
      damages result from: (1) a breach of any or all of Seller’s representations and
      warranties set forth herein, or (2) Seller’s negligence. 

    

    7.    INTELLECTUAL
      PROPERTY PROTECTION AND RIGHTS

    
    

    
      
        Seller
          warrants that the Goods (including but not limited to software) do not
          infringe
          upon any third party’s intellectual property, including patents, copyrights,
          trademarks or trade secrets, and that Seller has all necessary rights to
          sell or
          license the Goods. All rights and interest in the direct liquid fuel cell
          technology of Customer, including any derivative or improvement thereto,
          whether
          developed separately or in connection with this Agreement, shall at all
          times
          belong exclusively to More Energy. Seller will not disclose any Customer
          information or data to any third party without Customer’s prior express written
          consent, nor will Seller use Customers information or data for any purpose
          other
          than the performance of this Purchase Agreement, as amended by the Parties
          from
          time to time. The
          diagrams, drawings, sketches, plans, descriptions, specifications, etc.
          of each
          Party shall remain solely and wholly the property of the Party that prepared
          them and may not be used for other purposes or disclosed to any third party,
          without the prior written authorisation of the Party that prepared them.
          Drawings, etc. that Ismeca has to forward to its subcontractors, confidentially
          and only on loan, for the purpose of performing the task entrusted to them
          shall
          form an exception
          to this rule. 

      

    

     

    8.    TERMINATION
      

    

    More
      Energy may, at any time, direct Seller to suspend or cancel all or any part
      of
      the work. In the event of a suspension and/or cancellation:

    

    
      	8.1	
              More
                Energy shall give to Seller immediate written notice of cancellation
                and/or suspension of delivery and the extent thereof. The effective
                date
                of cancellation and/or suspension of delivery shall be the date Seller
                receives written notice from More Energy, More Energy's proof that
                Seller
                received written notice shall be certified by mail, return receipt
                requested.

            

    

    

    
      	8.2	
              More
                Energy shall pay to Seller all of Seller's costs and expenses incurred
                in
                conjunction with the project, plus a cancellation fee of an additional
                6%
                of the aggregate of such cost and expenses to the date of such
                cancellation. The term “cost

            

    

    

    
      
        Capital
          Equipment Purchase Agreement

        
        

      

      
        -5-

        
          

        

      

      
         

      

      
        

        
          	 	
                  and
                    expenses incurred” includes, without limitation, fees for Seller's
                    services, cost plus Seller's standard mark up for purchased items
                    or
                    services, and commitments to subcontractors and vendors for services
                    and
                    materials in connection with the project. All costs and expenses
                    incurred
                    shall be calculated and paid according to Seller, then Current
                    Time and
                    Material fee at scheduled rates. Seller shall deliver to Customer
                    all of
                    the goods paid for hereunder.

                

        

         

      

    

    
      	8.3	
              Advance
                payments made by More Energy to Seller shall be applied to the
                cancellation charges.

            

    

    

    
      	
              8.4

            	
              a)
                In the event Ismeca 1) breaches any of its material obligations under
                this
                Agreement notwithstanding its good faith efforts to perform this
                Agreement
                in accordance with its terms, then Ismeca will use extraordinary
                efforts
                to cure such breach in the shortest time possible but in no event
                to
                exceed 30 days after receiving written notice from the Customer specifying
                the breach and specifically referring to this section of the Agreement.
                If
                Ismeca demonstrates to Customer’s satisfaction that additional effort
                would impose a disproportionate financial burden on Ismeca to the
                impact
                of the breach on Customer, then Ismeca shall propose to the Customer
                alternate compensatory services of value equivalent to the loss to
                the
                Customer because of Ismeca's breach (such as additional equipment
                to
                achieve the specification throughput performance, extended warranty,
                spare
                parts free of charge, and/or other free services of substantial value
                to
                the Customer as determined together with the
                Customer).

            

    

    

    
      	 	
              b)
                Notwithstanding the aforesaid, in the event the breach by Ismeca
                substantially impacts the underlying assumptions of this Agreement
                as to
                the throughput performance of the line, Ismeca shall within one week
                of
                identifying such breach, inform Customer in writing of the ability
                to cure
                same and the time required to do so. If Ismeca cannot cure such breach
                within 60 days of Customer’s written notice, then the Customer shall be
                entitled to, in addition to any of its other rights at law or equity,
                terminate this Agreement in whole or in part, at its discretion,
                and
                Seller will be obligated to refund to Customer the monies paid to
                Seller
                with respect to the terminated part of this Agreement with interest
                at
                LIBOR plus 6% from the date of the original payment by Customer and
                any
                terminated equipment shall be returned to Ismeca. For purposes of
                this
                clause alone, a substantial impact shall mean if the line falls short
                of
                the agreed Specification throughput at the specified quality as measured
                at the FAT or SAT by more than 7.5% (i.e., an average gross rate
                which is
                below 45 devices per minute less 7.5% - or an average which is below
                41
                devices per minute gross cycle rate. In the event Customer does not
                exercise its right to terminate, Ismeca shall remain fully responsibility
                to take all necessary steps to cure the breach and to minimize the
                schedule impact on Customer. 

            

    

     

    11.   FORCE
      MAJEURE

     

    Neither
      party shall be liable for delays in delivery or performance, or for failure
      to
      manufacture, delivery or perform under this paragraph, due to, through no fault
      of the party, an act of God, an act of civil or military authority, Governmental
      Priority, strike or other labour disturbances, flood, epidemic, war, or Riot.
      Seller shall not be liable for delays in delivery or performance due to an
      act
      of More Energy that More Energy knew would delay the performance of Seller
      under
      the PO and this agreement, provided that Seller provides More Energy advance
      written notice of action to be performed by More Energy and the date by which
      such action must be taken to avoid delays. Either party 

     

    
      
        Capital
          Equipment Purchase Agreement

        
        

      

      
        -6-

        
          

        

      

      
         

      

    

     

    will
      notify the other party promptly of any material delay excused by this paragraph
      and will specify the revised delivery date as soon as practicable.

    

    12.   LIMITATIONS
      

    

    Any
      actions or claims by either party under this Purchase Agreement for breach,
      non
      performance or otherwise shall be commenced within twelve (12) months after
      the
      occurrence giving rise to the action or claim.

    

    13.   APPLICABLE
      LAW; JURISDICTION 

    

    All
      disputes in connection with this Contract of the execution there of shall be
      settled by negotiation between two parties whenever possible. The
      place
      of performance and exclusive jurisdiction shall lie in Israel, and all legal
      relations shall be governed exclusively by Israeli Law. 

    

     

    
      
        	More Energy 	Ismeca Europe Automation
                SA 
	 	 
	Signature : _/s/
                Gennadi Finkelshtain_ 	Signature:_/s/_Erik
                Poulsen_______ 
	Name: Gennadi
                Finkelshtain________ 	Name: _____Erik
                Poulsen________ 
	Title:__General
                Manager__________ 	Title: ___Director,
                Sales__________ 
	 	 
	Signature : _/s/
                Israel Fisher________ 	Signature :
                _____________________ 
	Name: Israel
                Fisher_______________ 	Name: ______
                __________________ 
	Title:__Senior
                Vice President Finance_ 	Title: _________________________ 

      

    

     

    
      
        Capital
          Equipment Purchase Agreement

        
        

      

      
        -7-

        
          

        

      

      
        
        

        

      

    

     

    
      

        

        

        

        Confidential

        

        

        

        

        FUEL
          CELL

        

        Automatic
          Assembly and Test

        

        High
          Volume Production Line

        

        For

        

        MORE
          ENERGY(MEDIS)

        

        

        

        

        

        

        ANNEX
          1
          TO PURCHASE AGREEMENT

        

        dated

        

        15th
          September 2005

        

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          

        

      

      

        

        

        

        TABLE
          OF
          CONTENTS

        

        

        

        

          
            	 	 	 
	
                    1.

                  	
                    INTRODUCTION

                  	
                    3

                  
	
                    2.

                  	
                    THE
                      PRODUCT

                  	
                    4

                  
	
                    3.

                  	
                    DESCRIPTION
                      OF THE EQUIPMENT

                  	
                    5

                  
	
                    3.1.

                  	
                    MACHINE
                      BASE: ISMELINE AND ISMEDIAL

                  	
                    5

                  
	
                    3.2.

                  	
                    FUNCTIONAL
                      DESCRIPTION

                  	
                    8

                  
	
                    4.

                  	
                    CONTROLS

                  	
                    28

                  
	
                    5.

                  	
                    [SUBJECT
                      TO A REQUEST FOR CONFIDENTIAL TREATMENT;

                  	 
	 	
                    SEPARATELY
                      FILED WITH THE COMMISSION] (HMI)

                  	
                    29

                  
	
                    5.1.

                  	
                    STATISTICS

                  	
                    30

                  
	
                    5.2.

                  	
                    ELECTRICAL

                  	
                    30

                  
	
                    5.3.

                  	
                    ISMECA
                      STANDARDS

                  	
                    31

                  
	
                    5.4.

                  	
                    LINE
                      MULTI MACHINE

                  	
                    31

                  
	
                    6.

                  	
                    WORKING
                      ENVIRONMENT

                  	
                    32

                  
	
                    7.

                  	
                    SCOPE
                      OF WORK

                  	
                    33

                  
	
                    8.

                  	
                    COMPONENTS
                      REQUIRED FOR EQUIPMENT TEST

                  	
                    34

                  
	
                    9.

                  	
                    PRICE
                      AND DELIVERY

                  	
                    35

                  
	
                    9.1.

                  	
                    DELIVERY
                      TIME

                  	
                    35

                  
	
                    9.2.

                  	
                    PAYMENT
                      TERMS

                  	
                    36

                  
	
                    9.3.

                  	
                    WARRANTY

                  	
                    36

                  
	
                    9.4.

                  	
                    MAINTENANCE
                      CONTRACT

                  	
                    36

                  
	
                    9.5.

                  	
                    TRAINING
                      OF YOUR PERSONNEL

                  	
                    36

                  
	
                    9.6.

                  	
                    INSTALLATION
                      AND COMMISSIONING

                  	
                    36

                  
	
                    9.7.

                  	
                    CONFIDENTIALITY

                  	
                    36

                  
	
                    10.

                  	
                    APPENDIX
                      PACK

                  	
                    37

                  
	
                    11.

                  	
                    CONTACTS

                  	
                    38

                  
	
                    12.

                  	
                    GENERAL
                      CONDITIONS OF SALE AND DELIVERY 

                  	 

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          

          Annex
            1 to Purchase Agreement

        

      

      
         

        1.  INTRODUCTION

         

        This
          Annex 1 to the Purchase Agreement between More Energy ltd., a subsidiary
          of
          Medis Technologies Ltd. (hereinafter “More/Medis”) and Ismeca Europe Automation
          SA (hereinafter “Ismeca”) sets forth a detailed description of the production
          line to be designed and built by Ismeca for More/Medis for the assembly
          and test
          of the More/Medis Fuel
          Cell product as defined in the More/Medis
          Specification dated 24th
          May
          2005, together with related project and line documentation and certain
          services
          (e.g., testing and training). The production line is sometimes herein referred
          to as the system or the Equipment.

        

        This
          production line has been designed by Ismeca to meet the More/Medis
          Specifications and is based on Ismeca’s standard [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          and [Subject to a request for confidential treatment; Separately filed
          with the
          Commission] platform
          bases.

        

        The
          production line design is a Fully
          Automatic Stand - Alone Production Line with a design life of twenty (20)
          years.
          The
          system will operate at an Output
          Rate of > 1.80 Million Devices per Month
          gross.
          Using your calculation as written in your RFQ, when calculated through
          - 1.80 M
          / 27.9 days utilizing an 85% up time / efficiency with a 98% yield we achieve
          a
45
          parts per minute gross cycle rate.
          (Based
          upon the More/Medis specification calculations Ismeca estimates around
          1.50
          Million Devices per month net
          output).

        

        The
          system is based largely on mechanical cam driven operations and synchronisations
          rather than electronic drives. 

        

        Ismeca
          has partnered with 6 suppliers to work with it to build the line,as follows:.
          [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          have
          been
          consulted for all welding processes, [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          for
          all
          leak testing requirements, [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          for
          the
          vacuum forming of the pouches, together with [Subject
          to a request for confidential treatment; Separately filed with the
          Commission],
          [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          and
          [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          for
          the
          final packaging. Ismeca’s
          forté is automated assembly, line integration / interfacing and Project
          Management and Ismeca selcts as its
          partners
          companies which are leaders within their field to optimize the final line’s
          performance. NOTWITHSTANDING THE ABOVE, ISMECA REMAINS DIRECTLY RESPONSIBLE
          TO
          MORE/MEDIS FOR THE PERFORMANCE OF THE PRODUCTION LINE AND ALL OF ITS ELEMENTS
          IN
          ACCORDANCE WITH THIS PURCHASE AGREEMENT.

      

       

      
        	
                15th
                  Septmber 2005

              	
                Ismeca
                  Europe Automation SA

              	
                Page
                  3/43 

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          

          Annex
            1 to Purchase Agreement

        

      

       

      

        
           

           

           

           

           

           

           

           

           

           

           

           

           

          
            	
                    15th
                      Septmber 2005

                  	
                    Ismeca
                      Europe Automation SA

                  	
                    Page
                      4/43 

                  

          

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            

            Annex
              1 to Purchase Agreement

          

        

         

        2.  THE
          PRODUCT

         

        

        

        The
          preliminary design of the product consists of the following 19 individual
          components. The supply format for each component shall be defined in final
          spec
          documents in accordance with agreement schedule, however the starting
          assumptions are: 

        

        
          	
                	*	
                  *

                

        

        
          	
                	*	
                  *

                

        

        
          	
                	*	
                  *

                

        

        
          	
                	*	
                  *

                

        

        
          	
                	*	
                  *

                

        

        
          	
                	*	
                  *

                

        

        
          	
                	*	
                  TBD

                

        

        
          	
                	*	
                  TBD

                

        

        
          	
                	*	
                  TBD

                

        

        
          	
                	*	
                  TBD

                

        

        
          	
                	*	
                  TBD

                

        

        
          	
                	*	
                  TBD

                

        

        
          	
                	*	
                  TBD

                

        

        
          	
                	*	
                  TBD

                

        

        
          	
                	*	
                  TBD

                

        

        
          	
                	*	
                  *

                

        

        
          
            	
                  	*	
                    *

                  

          

        

        
          	
                	*	
                  *

                

        

        
          	
                	*	
                  *

                

        

        _____

        *[Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        
           

          
            	
                    15th
                      Septmber 2005

                  	
                    Ismeca
                      Europe Automation SA

                  	
                    Page
                      5/43 

                  

          

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            

            Annex
              1 to Purchase Agreement

          

        

      

       

      
        
          	3.  	
                  DESCRIPTION
                    OF THE EQUIPMENT

                

        

         

        The
          line
          will operate at an Output Rate
          of > 1.80 Million Devices per month, gross.

         

        
          	3.1. 	
                  MACHINE
                    BASE: [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission] and
                    [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission]

                

        

         

        The
          line
          is based on using 2 different standard Ismeca base chassis’. Set forth below are
          details of the Ismeca [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          and
          [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          chassis,
          both of which are structured using similar cam driven designs. Most of
          the
          Ismeca standard station designs are compatible to both chassis types,
          incorporating both internal and external mounting for our stations /
          modules.

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        The
          [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          SC
          is a
          synchronized cam actuated linear system. The indexing segments are [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]
          apart
          and designed specifically for multi up high speed automation. Each segment
          can
          support a mass of [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]
          in
          weight. The [Subject
          to a request for confidential treatment; Separately filed with the Commission]
           SC speed capacity is greater than [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]
          cycles
          per minute.

        

        The
          [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          SC
          indexer is a rugged execution designed and built to run flawlessly in production
          environments. It provides excellent indexing smoothness and positioning
          accuracy
[Subject
          to a request for confidential treatment; Separately filed with the Commission]
          in
          real
          fast index time. The welded steel frame is enclosed with stainless steel
          doors,
          and the safety enclosure is made of folded and welded stainless steel panels.
          The wide roof opening allows air flow.

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        The
          [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          SC
          has
          been designed for a high level of compatibility with the rotating 

        
           

          
            	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

        [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          SC
          standard base using the same ‘bricks’ (modules and objects). The synchronized
          cam driven stations are similar to those of the [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          SC
          and
          Pallet Free Linear; thus keeping Ismeca standardization throughout.

         

         

         

         

         

         

         

         

         

      

      
         

        
          	
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          Annex
            1 to Purchase Agreement

        

      

       

      

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        The
          [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]’ [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          chassis
          is synchronised by cams. The [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          indexer
          is a rugged execution designed and built to run flawlessly in production
          environments. It provides excellent indexing smoothness and positioning
          accuracy. [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          Proven
          standard modules used by Ismeca today will be implemented where possible,
          however, where engineering trials of ‘special stations’ are needed, this will be
          discussed between both parties.

        

        

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        

        
           
An
          example of a similar machine

        

        
           

          
            	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

         

        
          	3.2.  	
                  FUNCTIONAL
                    DESCRIPTION

                

        

         

        

        Description
          of the machines / stations

        

         

        The
          parts
          are assembled in nests on the various machine platforms. Some open stations
          are
          provided to allow for easy access to the machine stations and for future
          retrofits yet to be decided or discussed.

         

         

        As
          a
          general rule, each time a part is presented and loaded onto the machine,
          its
          presence is checked. The method is either to use a sensor to check for
          the part
          presence or to check the gripper position. Closed loop logic is used throughout
          the machine.

         

        Hopper
          sizes for all bowl feeds will be sufficient to run for a minimum of [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          production
          - Size of hoppers for ergonomic reasons are to be discussed.

        

        It
          is
          foreseen to include a [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          part
          tray
          buffer between machines for all buffers mentioned herein. 

        

        

        Machine
          1a and 1b

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Please
          refer to the drawing 050604-100-B attached.

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        

        Machine
          1a

        [Subject
          to a request for confidential treatment; Separately filed with the Commission],
          here we work 2 up.

        

        Station
          # 1 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 2 - Check Part Presence

        Here
          we
          check the position and presence of the parts.

      

      
         

        
          	
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          Annex
            1 to Purchase Agreement

        

      

       

      

        

        Station
          # 3 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          

        

        Station
          # 4 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        Using
          a
[Subject
          to a request for confidential treatment; Separately filed with the Commission]
          we
          check
          the qualities of the laser mark, if any BAD parts are found then they are
          rejected later.

        

        Station
          # 5 - Free Station

        

        Station
          # 6 - Free Station

        

        Station
          # 7 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 8 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        What
          we have just achieved

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 9 - Free Station

        

        Station
          # 10 - Free Station

        

        Station
          # 11 - Reject of Failed Parts / Check Station or Audit Station
          (Option)

        Failed
          parts are rejected here; parts are picked then placed into separate reject
          bins.
[Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 12 - Free Station

        

        Station
          # 13 - Flip then Offload GOOD Assembled Products onto a Conveyor (Into
          Machine
          1b)

        Here
          we
          pick the part, flip it by 180°’s then offload them onto a tooled conveyor, this
          conveyor drives the assemblies forward directly into machine
          1b.

      

      
         

        
          	
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          Annex
            1 to Purchase Agreement

        

      

       

      
        Station
          # 14 - Free Station

        

        Station
          # 15 - Free Station

        

        Station
          # 16 - Check and Clean Empty Nests

        Here
          we
          check to ensure the nests are empty [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        

        Machine
          1b

        [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          -
          here we work 4 up.

         

        Station
          # 1 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission] (From Machine 1a)

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 2 - Check Parts Presence

        Here
          we
          check the position and presence of the parts

        

        Station
          # 3 - Free Station

        

        Station
          # 4 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 5 - Check Parts Presence

        Here
          we
          check the position and presence of the parts

        

        Station’s
          6 to 9 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station’s
          10 to 16 - Free Stations

        

        Station
          # 17 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 18 - Check Part Presence

        Here
          we
          check the position and presence of the parts.

      

      
         

        
          	
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          Annex
            1 to Purchase Agreement

        

      

       

      
        

        Station
          # 19 - Free Station

        

        Station’s
          20 to 23 - [Subject to a request for confidential treatment; Separately
          filed
          with the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        What
          we have just achieved

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 24 - Free Station

        

        Station’s
          25 to 28 - [Subject to a request for confidential treatment; Separately
          filed
          with the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        
           

          
            	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

        Station
          # 29 - Reject of Failed Parts / Check Station or Audit Station
          (Option)

        Failed
          parts are rejected here; parts are picked then placed into separate reject
          bins.
[Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 30 -Offload GOOD Assembled Products (Core Assemblies) onto a Conveyor
          (Into
          Machine 1c)

        Here
          we
          offload onto a tooled conveyor the Core Assemblies. [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

         

        Station’s
          31 to 41 - Free Stations

        

        Station
          # 42 - Check and Clean Empty Nests

        Here
          we
          check to ensure the nests are empty [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          

        

        

        Machine
          2

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Please
          refer to the drawing 050604-200-B attached.

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

         

        [Subject
          to a request for confidential treatment; Separately filed with the Commission],
          here we work 2 up.

        

        Station
          # 1 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission](From Machine 1c)

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 2 - Check Parts Presence

        Here
          we
          check the position and presence of the parts.

        

        Station
          # 3 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 4 - Check Parts Presence

        Here
          we
          check the position and presence of the parts.

        
           

          
            	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

        Station
          # 5 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 6 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 7 - Free Station

        

        Station
          # 8 - Free Station

        

        Station
          # 9 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 10 - Check Parts Presence

        Here
          we
          check the position and presence of the parts.

        

        Station’s
          11 to 16 - Free Stations

        

        Station
          # 17 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 18 - Check Parts Presence

        Here
          we
          check the position and presence of the parts.

        

        Station
          # 19 - Free Station

        

        Station
          # 20 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 21 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 22 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

      

      
         

        
          	
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          Annex
            1 to Purchase Agreement

        

      

       

      

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        What
          we have just achieved

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 23 - Free Station

        

        Station
          # 24 - Reject of Failed Parts / Check Station or Audit Station
          (Option)

        Failed
          parts are rejected here; parts are picked then placed into separate reject
          bins.
[Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 25 - Offload GOOD Assembled Products to Conveyor / [Subject to a request
          for
          confidential treatment; Separately filed with the Commission](Into Machine
          5)

        Here
          only
          GOOD assembled products are offloaded onto a tooled conveyor; [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]
          into
          machine 5.

        

        Station’s
          26 to 31 - Free Stations

        

        Station
          # 32 - Check and Clean Empty Nests

        Here
          we
          check to ensure the nests are empty [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        

        Machine
          3

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Please
          refer to the drawing 050604-300-B attached.

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

         

        Assembly
          of the above is whilst working 2 up.

        
           

          
            	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

        Machine
          3a

        

        Station
          # 1 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 2 - Check Part Presence

        Here
          we
          check the position and presence of the parts.

        

        Station
          # 3 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]We
          foresee it only necessary to use [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]
          for this
          operation.

        

        Station
          # 4 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        Using
          [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          we
          check
          the quality of the laser marks, if any BAD parts are found then they are
          rejected later.

        

        Station
          # 5 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 6 - Check Part Presence

        Here
          we
          check the position and presence of the parts.

        

        Station
          # 7 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        Having
          consulted with [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]we
          recommend to use a welder type of [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          in
          nest
          1. Vacuum extraction is foreseen around this station if dust is generated
          during
          the welding process.

        

        Station
          # 8 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission](Nest 2)

        Having
          consulted with [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          we
          recommend to use a welder type of [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          in
          nest
          2. Vacuum extraction is foreseen around this station if dust is generated
          during
          the welding process.

        
           

          
            	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

        Station
          # 9 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 10 - Check Part Presence

        Here
          we
          check the position and presence of the parts.

        

        Station
          # 11 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission] (Nest 1)

        Having
          consulted with [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          we
          recommend to use a welder type of [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          in
          nest
          1. Vacuum extraction is foreseen around this station if dust is generated
          during
          the welding process.

        

        Station
          # 12 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission] (Nest 2)

        Having
          consulted with [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          we
          recommend to use a welder type of [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          in
          nest
          2. Vacuum extraction is foreseen around this station if dust is generated
          during
          the welding process.

        

        Station
          # 13 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 14 - Check Part Presence

        Here
          we
          check the position and presence of the parts.

        

        Station’s
          15 to 21 - Free Stations

        

        Station
          # 22 - De - [Subject to a request for confidential treatment; Separately
          filed
          with the Commission] (Nest 1)

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]
          in nest
          1.

        

        Station
          # 23 - De - [Subject to a request for confidential treatment; Separately
          filed
          with the Commission] (Nest 2)

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]in
          nest
          2.

        

        Station
          # 24 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        
           

          
            	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 25 - Free Station

        

        Station
          # 26 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission] (Nest 1)

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission].

        

        Station
          # 27 - Free Station

        

        Station
          # 28 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission](Nest 2)

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 29 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 30 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 31 - Check Part Presence

        Here
          we
          check the position and presence of the parts.

        

        Station
          # 32 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission](Nest 1)

        Having
          consulted with [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]we
          recommend to use a welder type of [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          in
          nest
          1. Vacuum extraction is foreseen around this station if dust is generated
          during
          the welding process.

        

        Station
          # 33 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission](Nest 2)

        Having
          consulted with [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]we
          recommend to use a welder type of 

        
           

          
            	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]in
          nest
          2. Vacuum extraction is foreseen around this station if dust is generated
          during
          the welding process.

        

        What
          we have just achieved

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 34 - Reject of Failed Parts / Check Station or Audit Station
          (Option)

        Failed
          parts are rejected here; parts are picked then placed into separate reject
          bins.
[Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 35 -Offload GOOD Assembled Products ([Subject to a request for confidential
          treatment; Separately filed with the Commission]) onto a Conveyor (Into
          Machine
          3b)

        Here
          we
          offload onto a tooled conveyor the [Subject
          to a request for confidential treatment; Separately filed with the
          Commission].
          This
          conveyor drives the assemblies forward into the [Subject
          to a request for confidential treatment; Separately filed with the
          Commission].

         

        Station’s
          36 to 41 - Free Stations

        

        Station
          # 42 - Check and Clean Empty Nests

        Here
          we
          check to ensure the nests are empty and indeed by using a vacuum manifold
          we
          clean the nests of any debris.

        

        

        Machine
          3b

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        Having
          discussed with [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]we
          will
          require a process time of around [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Machine
          4

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Please
          refer to the drawing 050604-400-B attached.

        
           

          
            	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

         

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 1 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission](From Machine 3b)

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 2 - Check Parts Presence

        Here
          we
          check the position and presence of the parts.

        

        Station
          # 3 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 4 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 5 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 6 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 7 - Free Station

        

        Station
          # 8 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 9 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        
           

          
            	
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                      Europe Automation SA

                  	
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                      20/43 

                  

          

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            

            Annex
              1 to Purchase Agreement

          

        

      

       

      

        Station’s
          10 to 16 - Free Stations

        

        Station
          # 17 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 18 - Free Station

        

        Station
          # 19 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 20 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        What
          we have just achieved

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Note:
          [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station’s
          21 to 23 - Free Stations

        

        Station
          # 24 - Reject of Failed Parts / Check Station or Audit Station
          (Option)

        Failed
          parts are rejected here; parts are picked then placed into separate reject
          bins.
[Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 25 - Offload GOOD Filled Products to Conveyor / [Subject to a request
          for
          confidential treatment; Separately filed with the Commission](Into Machine
          5a)

        Here
          only
          GOOD filled products are offloaded onto a tooled conveyor; [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]
          or
          directly into machine 5a.

        

        Station’s
          26 to 31 - Free Stations

        

        Station
          # 32 - Check and Clean Empty Nests

        Here
          we
          check to ensure the nests are empty [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        
           

          
            	
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                      Europe Automation SA

                  	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

        

        Machine
          4b

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        

        Machines
          5a and 5b

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Please
          refer to the drawing 050604-500-B attached.

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

         

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        

        Machine
          5a

        Station
          # 1 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission] (From Machine 4)

        The
          [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          are
          fed
          on a tooled conveyor belt from machine 4. Here we pick 4 [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          and
          place
          them onto the [Subject
          to a request for confidential treatment; Separately filed with the
          Commission].

        

        Station
          # 2 - Check Parts Presence

        Here
          we
          check the position and presence of the parts.

        

        Station
          # 3 -[Subject to a request for confidential treatment; Separately filed
          with the
          Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station’s
          4 to 6 - Free Stations

        

        Station
          # 7 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission](From Machine 2)

        
           

          
            	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

        The
          [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]are
          fed
          on a tooled conveyor belt from machine 2. Here we pick 4 [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          and
          place
          them on top the [Subject
          to a request for confidential treatment; Separately filed with the
          Commission].

        

        Station
          # 8 - Check Parts Presence

        Here
          we
          check the position and presence of the parts.

        

        Station
          # 9 -[Subject to a request for confidential treatment; Separately filed
          with the
          Commission]

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station’s
          10 to 16 - Free Stations

        

        Station’s
          17 to 20 - [Subject to a request for confidential treatment; Separately
          filed
          with the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        What
          we have just achieved

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 21 - Free Station

        

        Station’s
          22 to 25 - [Subject to a request for confidential treatment; Separately
          filed
          with the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station’s
          26 to 28 - Free Stations

        

        Station
          # 29 - Reject FAILED Parts (Extra Care Taken)

        Failed
          parts are rejected here; parts are picked then placed into separate reject
          bins.
[Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

         

        Station
          # 30 -Offload GOOD Assembled Products onto a Conveyor (Into Machine
          5b)

        Here
          we
          offload onto a tooled conveyor the core assembly and [Subject
          to a request for confidential treatment; Separately filed with the
          Commission].
          This

        
           

          
            	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

        conveyor
          drives the assemblies forward into the [Subject
          to a request for confidential treatment; Separately filed with the
          Commission].

         

        Station
          # 31 - Free Station

        

        Station
          # 32 - Check and Clean Empty Nests

        Here
          we
          check to ensure the nests are empty and indeed by using a vacuum manifold
          we
          clean the nests of any debris.

        

        

        Machine
          5b

        Station
          # 1 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 2 - Check Part Presence

        Here
          we
          check the position and presence of the parts.

        

        Station
          # 3 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 4 - Vision Inspect Label

        Using
          a
          vision system [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          we
          check
          that the label is present and indeed check that its details are
          correct.

        

        Station
          # 5 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 6 - Check Part Presence

        Here
          we
          check the position and presence of the parts.

        

        Station
          # 7 - Free Station

        

        Station
          # 8 - Free Station

        

        Station
          # 9 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        
           

          
            	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

        Station
          # 10 - Check Part Presence

        Here
          we
          check the position and presence of the parts.

        

        Station’s
          11 to 16 - Free Stations

        

        Station
          # 17 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission](From Machine 5a)

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 18 - Check Parts Presence

        Here
          we
          check the position and presence of the parts.

        

        Station
          # 19 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 20 - Check Part Presence

        Here
          we
          check the position and presence of the parts.

        

        Station
          # 21 - [Subject to a request for confidential treatment; Separately filed
          with
          the Commission]

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 22 - Check Heights

        Here
          we
          check the heights of the final assembled products.

        

        Et
          voila - The final assembled product

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        The
          Final Tested Assembled Product

        

        

        Station
          # 23 - Free Station

        

        Station
          # 24 - Reject of Failed Parts / Check Station or Audit Station
          (Option)

        Failed
          parts are rejected here; parts are picked then placed into separate reject
          bins.
[Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Station
          # 25 -Offload GOOD Assembled Final Product onto a Conveyor (Into Packaging
          Machine)

        
           

          
            	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

        Here
          we
          offload onto a tooled conveyor the final products. This conveyor drives
          the
          assemblies forward into the packaging machine.

         

        Station’s
          26 to 31 - Free Stations

        

        Station
          # 32 - Check and Clean Empty Nests

        Here
          we
          check to ensure the nests are empty [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        
           

          
            	
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                      Septmber 2005

                  	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

        Packaging
          Machine

        Ismeca
          have worked with several packaging suppliers in the past for various different
          packaging requirements, your request is to put the final assembled product
          into
          a [Subject
          to a request for confidential treatment; Separately filed with the
          Commission].
          To do
          this we need to use [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          separate
          suppliers with Ismeca to undertake full integration / interfacing / project
          management for all.

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Ismeca
          will interface and control product flow with the aid of conveyors between
          machines, something Ismeca has made several times before. The complete
          packaging
          module has been priced as an option.

        

        

        Operators
          Required to Run this Line

        We
          estimate that [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          operators
          will be required to run our fully automatic production line (excluding
          part
          supplies).

        
           

          
            	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

         

        
          	4.  	
                  CONTROLS

                

        

         

         

        

         

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        Each
          machine is considered as a standalone unit. The selected [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          is
          [Subject
          to a request for confidential treatment; Separately filed with the
          Commission].
          Communication between the [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          and
          the
[Subject
          to a request for confidential treatment; Separately filed with the Commission]
          is
          made
          through a [Subject
          to a request for confidential treatment; Separately filed with the
          Commission].
          [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          The
          program is based on a [Subject
          to a request for confidential treatment; Separately filed with the
          Commission].
          

        

        The
          software documentation structure is created [Subject
          to a request for confidential treatment; Separately filed with the
          Commission].
          Each
          machine has its’ own set of documentation including [Subject
          to a request for confidential treatment; Separately filed with the
          Commission].

        

        Ismeca
          has vast large experience with using [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          on
          large
          projects such as this.

      

      
         

        
          	
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                    Septmber 2005

                	
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          Annex
            1 to Purchase Agreement

        

      

       

      

         

        
          	5.  	
                  [SUBJECT
                    TO A REQUEST FOR CONFIDENTIAL TREATMENT; SEPARATELY FILED WITH
                    THE
                    COMMISSION] (HMI)

                

        

         

        

        The
          [Subject
          to a request for confidential treatment; Separately filed with the Commission]
          (HMI)
          will be implemented using an [Subject
          to a request for confidential treatment; Separately filed with the
          Commission].
          It
          offers a user-friendly means of communicating with the machine through
          menus.

        

        

        

        [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

        

        

        In
          addition to the HMI, the machine will include external operator buttons
          (start,
          stop, breakdown, open doors) and a status light tree.

        

        

           

          
            	
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                      Europe Automation SA

                  	
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          Annex
            1 to Purchase Agreement

        

      

       

      

         

        
          	5.1.  	
                  STATISTICS

                

        

         

        

        The
          following set of statistics is visible in our standard
          configuration:

        

         

        
          	 	
                  [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission]

                

        

         

         

        
          	 	
                  [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission]

                

        

         

         

        
          	 	
                  [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission]

                

        

         

         

        
          	 	
                  [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission]

                

        

         

         

        
          	 	
                  [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission]

                

        

         

         

        
          	 	
                  [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission]

                

        

         

         

        
          	 	
                  [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission]

                

        

         

         

        
          	 	
                  [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission]:

                

        

         

         

        
          	 	
                  [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission]

                

        

         

        
          	 	
                  [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission]

                

        

         

        
          	 	
                  [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission]

                

        

         

        
          	 	
                  [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission]

                

        

         

         

        
          	 	
                  [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission]

                

        

         

         

        
          	 	
                  [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission]

                

        

         

         

        
          	 	
                  [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission]

                

        

         

         

        
          	 	
                  [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission]

                

        

         

        
           

          
            	
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                      Septmber 2005

                  	
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                      Europe Automation SA

                  	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

        In
          addition to the HMI, the machine will include external operator buttons
          and a
          status light tree.

        

        

         

        
          	5.2.  	
                  ELECTRICAL

                

        

         

        

        The
          machine has a stand alone electrical cabinet which includes power and control
          voltage distribution, the programmable controller, safety circuitry, and
          all
          motor drivers. The cabinet is constructed using modular elements and
          incorporates a blower for ventilation. High voltage lines are kept separate
          from
          24V control circuits and a minimum of 20% space is reserved for future
          expansion. An aerial cable tray links the cabinet to the main machine.
          

        

        
           

          
 

        

        
          
             

            
              	
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                        Europe Automation SA

                    	
                      Page
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            Annex
              1 to Purchase Agreement

          

        

      

      

         

        
          	5.3.  	
                  ISMECA
                    STANDARDS

                

        

         

        In
          order
          to satisfy all applicable norms, (machine directives 98/37/CE, 89/336/CEE
          and
          73/23/CEE), our standard system configuration includes:

         

         

        
          	l 	
                  Emergency
                    Stop switches and door wiring per EN60204

                

        

         

         

        
          	l 	
                  Control
                    circuits wired with redundant relays

                

        

         

         

        
          	l 	
                  Shielded
                    connections for high voltage wiring

                

        

         

         

        
          	l 	
                  Shielded
                    motor cables

                

        

         

         

        
          	l 	
                  Global
                    EMC filtering used at the system
                    entry

                

        

         

         

        
          	l 	
                  Local
                    EMC filtering used at each motor
                    driver

                

        

         

         

        
          	l 	
                  24VDC
                    used on all control circuits

                

        

         

         

        
          	5.4.  	
                  Line
                    multi machine

                

        

         

        

        Each
          Machine PLC is connected by Ethernet to a collection PC (data collector)
          to be
          able to reach your part tracking requirements (Chapter 3.0 of your Product
          Design RFQ). Each part must be identified by a unique code which will be
          read on
          each machine. (2D Matrix or barcode)

        

        The
          final
          specification must define the data storage requirements on the main PC.
          The
          collection PC so far is not part of the price and scope of this Agreement.
          However, part tracking data, to be collected by each machine, is included
          in the
          price and scope of this Agreement.

        
           

          
            	
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                      Septmber 2005

                  	
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                      Europe Automation SA

                  	
                    Page
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            Annex
              1 to Purchase Agreement

          

        

      

      

         

        
          	6.  	
                  WORKING
                    ENVIRONMENT

                

        

         

        The
          equipment is designed to operate in the following environment:

         

         

        
          	l 	
                  Compressed
                    air, non - lubricated: 5 bars minimum, 4-5 m3/h
                    requirement. 

                

        

         

         

        
          	l 	
                  Electrical
                    power: 415VAC +/- 5%, 3P+N, 50Hz, 10-20 Amps
                    estimated.

                

        

         

         

        
          	l 	
                  Ambient
                    temperature: 20 ̊ +/- 2 ̊ C.

                

        

         

         

        
          	l 	
                  Relative
                    humidity: 50% =/- 10%,
                    non-condensing.

                

        

         

         

        
          	l 	
                  Machine
                    size is approx: 31.70Mtrs x 25.60
                    Mtrs.

                

        

         

         

        (Potentially
          smaller after further discussions) 

        
           

          
            	
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                      Europe Automation SA

                  	
                    Page
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            Annex
              1 to Purchase Agreement

          

        

         

        

           

          
            	7.  	
                    SCOPE
                      OF WORK
                      AND DELIVERABLES

                  

          

           

          The
            following items (except 2 below) are within the scope of this Agreement
            and are
            included in the price set forth herein:

           

          
            	1  	
                    It
                      is Ismeca’s standard policy to conduct bi-weekly project review meetings
                      with Customers. The location will be determined dependant upon
                      project
                      progress or possibly carried out via telephone or video conference.
                      

                  

          

           

           

          
            	2  	
                    Ismeca
                      undertakes installation and commissioning at the Customer's
                      premises
                      (Celestica) or those premises directed to.  Seller currently
                      estimates a 20 day process for that
                      purpose.

                  

          

           

           

          
            	3  	
                    FMEA’s
                      of the Ismeca equipment are part of standard Ismeca project
                      management and
                      therefore are included.

                  

          

           

           

          
            	4  	
                    A
                      pre-acceptance run (FAT) for your product is foreseen and is
                      made together
                      with our Ismeca Quality Assurance Group. It is foreseen to
                      do an 8 hour
                      production run.

                  

          

           

           

          
            	5  	
                    The
                      equipment complies with EC standards of safety, electromagnetic
                      compatibility and low voltage. 24Volt DC control sensors are
                      used.

                  

          

           

           

          
            	6  	
                    It
                      is foreseen that with a mechanical adjustment the inhibiting
                      or disabling
                      of stations will be possible.

                  

          

           

           

          
            	7  	
                    The
                      Following is a current list of the deliverable items under
                      this
                      Agreement:

                  

          

           

           

          
            	7.1  	
                    Training
                      of Customer’s personnel and its contractor’s personnel. This is performed
                      prior to and during the acceptance period at Seller’s premises. Additional
                      training can occur during and after installation (if needed)
                      also at the
                      contractor’s premises after final acceptance. A training plan will be
                      decided at the FMEA stage.

                  

          

           

           

          
            	7.2  	
                    The
                      Equipment and an initial lay in of spare parts (spare parts
                      are TBD and
                      not yet priced).

                  

          

           

           

          
            	7.3  	
                    Documentation,
                      including hard copies in adequate numbers and pc readable soft
                      copies,
                      which include the following:

                  

          

           

           

          7.3.1  Drawings
            of wear parts are provided in .dwg or .dxf format files and/or
            hardcopies

           

           

          7.3.2  Electric
            schematics are provided in CADELEC format files and/or hardcopies

           

           

          7.3.3  
            User
            manuals and maintenance manuals are delivered with the machine in quantities
            to
            be agreed. 

           

           

          7.3.4  An
            Ismeca
            standard statistics package is included in the machines cost.

           

           

          7.3.5  The
            following list of additional documents:

           

          
             

            
              	
                      15th
                        Septmber 2005

                    	
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                        Europe Automation SA

                    	
                      Page
                        34/43 

                    

            

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

              

              Annex
                1 to Purchase Agreement

            

          

        

      

       

      
         

        
          	 	
                  1.

                	
                  BOM
                    (Bill of material) listing every part of the line and referencing
                    drawing
                    number if a custom part and OEM number if its a purchased part.
                    

                

        

         

        
          	 	
                  2.
                    

                	
                  Mechanical
                    Assembly drawings. 

                

        

         

        
          	 	
                  3.
                    

                	
                  Detailed
                    Mechanical part drawings. 

                

        

         

        
          	 	
                  4.
                    

                	
                  Station
                    Electrical and Pneumatic Schematics.

                

        

         

        
          	 	
                  5.
                    

                	
                  Base
                     Electrical and Pneumatic Schematics.

                

        

         

        
          	 	
                  6.
                    

                	
                  Operating
                    Manuals. 

                

        

         

        
          	 	
                  7.
                    

                	
                  Maintenance
                    Manuals. 

                

        

         

        
          	 	
                  8.
                    

                	
                  OEM
                    manuals : For example where Ismeca may purchase equipment from
                    [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission] or
                    [Subject
                    to a request for confidential treatment; Separately filed with
                    the
                    Commission] they
                    must ensure that documentation is complete and pass on with the
                    overall
                    system. 

                

        

         

        
          	 	
                  9.
                    

                	
                  Copy
                    of PLC codes, Motion Controller programs, Vision System Codes
                    and test
                    system codes. 

                

        

         

        
          	 	
                  10.
                    

                	
                  Specification
                    for services detailing what vacuum, air, power, ventilation/Extraction
                    requirements per module and supply layout with detail of module
                    layout and
                    positions for service Drops. 

                

        

         

        
          	 	
                  11.
                    

                	
                  FMEA
                    Output. 

                

        

         

        
          	 	
                  12.
                    

                	
                  Buyoff
                     Reports

                

        

         

         

        
          	8  	
                  It
                    is understood by the Parties that there are a number of changes
                    that will
                    occur prior to the final freezing of the Specification and Equipment
                    definition. Appropriate and fair cost and schedule adjustments
                    will be
                    made (increase or decrease, as the case may be) by mutual agreement
                    of the
                    Parties in writing where the changes are significant. Ismeca
                    will generate
                    all proposals to the best possible detail level with the information
                    given
                    to include engineering time, design time and material costs,
                    etc. After
                    customer approval Ismeca reserves the right to make ‘change amendments’
                    after the successful completion of the FMEA.

                

        

         

        Components
          required for equipment test

         

         

        The
          Customer will supply Ismeca, free of charge, at the dates requested and
          in the
          quantities defined by the constructor, with the components necessary for
          equipment adjustment and buy-off.

         

         

        The
          components supplied will conform to the drawings in every respect and be
          of good
          quality.

        
           

          
            	
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                      Septmber 2005

                  	
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                      Europe Automation SA

                  	
                    Page
                      35/43 

                  

          

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            

            Annex
              1 to Purchase Agreement

          

        

      

       

      
         

        
          	8.  	
                  PRICE
                    AND DELIVERY

                

        

         

        The
          price
          of the equipment described in this Annex 1 (IN SWISS FRANCS): 

         

        
          	 	For Machine 1 	CHF * 	 
	 	 	 	 
	 	For Machine 2 	CHF * 	 
	 	 	 	 
	 	For Machine 3 	CHF * 	 
	 	 	 	 
	 	For Machine 3 * 	CHF * 	 
	 	 	 	 
	 	For Machine 4  	CHF * 	 
	 	 	 	 
	 	For Machine 4 * 	CHF * 	 
	 	 	 	 
	 	For Machine 5 	CHF * 	 
	 	 	 	 
	 	Machine buffers / interface 	CHF * 	 
	 	 	 	 
	 	*
                  machine 	CHF * 	 
	 	 	 	 
	 	*
                  machine 	CHF * 	 
	 	 	 	 
	 	Packaging Line 	CHF * 	 
	 	 	 	 
	 	Line Supervision for machines 	 	* 
	 	 	 	 
	 	Line Supervision on PC 	CHF 	TBD 
	 	 	 	 
	 	Line total 	CHF 14’069’300 	 
	 	 	 	 
	 	Approx. Cost for line #2
                  (TBC) 	CHF 11’800’000 	 

        

         

         

        * [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

         

         

        
          	8.1.  	
                  DELIVERY TIME

                

        

         

         

        Delivery
          of the complete line will depend upon the availability of final and firm
          information on component designs and on the processes needed for assembly
          and
          test. Following our meeting in Switzerland and the estimates made at that
          time
          we have prepared an aggressive schedule which has line acceptance on December
          15
          2006, this based upon the firm order for this equipment being placed during
          the
          second week in September, 2005. 

        
           

          
            	
                    15th
                      Septmber 2005

                  	
                    Ismeca
                      Europe Automation SA

                  	
                    Page
                      36/43 

                  

          

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            

            Annex
              1 to Purchase Agreement

          

        

      

       

      
        
          	8.2.  	
                  INTENTIONALLY
                    LEFT BLANK

                

        

         

        
          	8.3.  	
                  WARRANTY

                

        

         

        The
          warranty is 12 months unlimited hours. The warranty period starts after
          completion of the Site Acceptance Test. Based in the UK we have a Customer
          Field
          Service Department. It is also Ismeca’s policy that ALL European Customer Field
          Engineers also speak English. Ismeca’s norm is to provide telephone assistance
          within 24hrs. With a maximum of 48hr. on-site service - our goal is to
          be
          faster. 

         

        
          	8.4.  	
                  MAINTENANCE
                    CONTACT

                

        

         

        Routine
          Maintenance Contracts can be proposed on request. (As per option 7 above)
          Included in such contracts Ismeca can offer regular routine maintenance
          visits
          to assist with machine maintenance and machine on-going training. 

         

        
          	8.5.  	
                  TRAINING OF
                    YOUR PERSONNEL

                

        

         

        Training
          of customer’s personnel is included in this Annex 1 and is carried out during
          machine acceptance, both in Ismeca and on the premises of that disclosed
          by the
          customer. A training plan will be discussed during the FMEA and agreed
          between
          both parties.

         

        
          	8.6.  	
                   INSTALLATION
                    AND COMMISSIONING

                

        

         

        Ismeca
          undertakes machine installation and commissioning on your premises in Ireland.
          We plan to have sufficient persons for a period of time not to exceed 20
          days.
          As option above TBC.

         

        
          	8.7.  	
                  CONFIDENTIALITY

                

        

         

         

        Each
          party undertakes to treat the information exchanged as
          confidential.

        
           

          
            	
                    15th
                      Septmber 2005

                  	
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                      Europe Automation SA

                  	
                    Page
                      37/43 

                  

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          

          Annex
            1 to Purchase Agreement

        

      

       

      
        
          	9.  	
                  APPENDIX
                    PACK

                

        

         

         

        
          	Full line machine layout
                  drawing 	050604.100.B 	2D 
	 	 	 
	Machine layout drawing for machine
                  1 	050604.200.B 	2D 
	 	 	 
	Machine layout drawing for machine
                  2 	050604.300.B 	2D 
	 	 	 
	Machine layout drawing for machine
                  3  	050604.400.B 	2D 
	 	 	 
	Machine layout drawing for machine
                  4 	050604.500.B 	2D 
	 	 	 
	Machine layout drawing for machine
                  5 	050606.000.A 	2D 
	 	 	 
	Machine layout drawing for packaging
                  line 	050606.100.A 	2D 
	 	 	 
	Machine layout for * 	050606.100.A 	2D 
	 	 	 
	Machine layout drawing for * 	050515.000.A  	2D 

        

         

         

        __________

         

         

        * [Subject
          to a request for confidential treatment; Separately filed with the
          Commission]

         

         

        For
          and
          on behalf of

        Ismeca
          Europe Automation SA

         

         

        
          	 	 
	
                   

                  Serge
                    Peguiron

                   

                  Chief
                    Executive Officer

                   

                	
                   

                  Erik
                    Poulsen

                   

                  Director
                    Sales & Marketing

                

        

         

        
           

          
            	
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                      Septmber 2005

                  	
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                      Europe Automation SA

                  	
                    Page
                      83/43 

                  

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          

          Annex
            1 to Purchase Agreement

        

      

       

      
         

        
          	10.  	
                  CONTACTS

                

        

         

        

        More
          Energy 

        

        Gennadi
          Finkelshtain 

        General
          Manager

        

        2
          Yodfat
          Street

        Global
          Park

        PO
          Box
          1112

        Lod
          71291

        Israel

        Phone:
          +972-8-9188650

        Mobile. +972
          -54-441343

        Fax.
           +972
          8
          9152000

        Email. more@medisel.co.il

        

        

        Celestica
          Ireland 

        

        John
          Kennedy

        Device
          Engineer

        

        Celestica
          Ireland

        Parkmore
          Business Park West

        Ballybrit

        Galway

        Ireland

        Tel. +353
          (0)91 705000

        Fax.
           +353
          (0)91 705001

        Email. jkenned@celestica.com

        

        

        John
          Elwood

        General
          Manager

        

        Celestica
          Ireland

        Parkmore
          Business Park West

        Ballybrit

        Galway

        Ireland

        Tel. +353
          (0)91 705000

        Fax.
           +353
          (0)91 705001

        Ema

      

      
         

        
          	
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                    Septmber 2005

                	
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                    Europe Automation SA

                	
                  Page
                    39/43 

                

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          

          Annex
            1 to Purchase Agreement

        

      

       

      

        Ismeca
          Europe Automation SA

        

        Jean-Paul
          Boillon

        Director,
          Engineering

        

        Ismeca
          Europe Automation

        283,
          rue
          de l'Helvétie

        CH-2301
          La Chaux-de-Fonds

        Switzerland

        Tel. +41
          (0)32
          9 257 111 

        Fax.
           +41
          (0)32
          9 257 575

        Email. jpboillon@ismeca.com
          

        

        

        

        Serge
          Peguiron

        CEO

        

        Ismeca
          Europe Automation

        283,
          rue
          de l'Helvétie

        CH-2301
          La Chaux-de-Fonds

        Switzerland

        Tel. +41
          (0)32
          9 257 111 

        Fax.
           +41
          (0)32
          9 257 115

        Email. speguiron@ismeca.com
          

        

        

         

        General
          Conditions of Sale and Delivery, 

        

        

        
          	
                  1.
                    

                	
                  Scope
                    of application 

                

        

        

        
          	 	
                  The
                    following terms are in addition to the terms set forth in the
                    main body of
                    the Purchase Agreement. In the event of a contradiction the terms
                    in the
                    main body of the Purchase Agreement shall control.
                    

                

        

        

        
          	
                  2.
                    

                	
                  Conclusion
                    of contract - written form

                

        

        

        
          	 	
                  Any
                    declaration or act made or performed by the Parties and having
                    a legal
                    effect shall be made in writing. 

                

        

        

        
          	
                  3.
                    

                	
                  Intentionally
                    Left Blank 

                

        

        

        
          	
                  4.

                	
                  Computer
                    programs necessary for the use of the Product
                    

                

        

        

        Where
          the
          use of the Product by the Customer involves the use of computer programs
          (source
          or other programs), hereinafter called the Programs,
          provided by 

        
           

          
            	
                    15th
                      Septmber 2005

                  	
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                      Europe Automation SA

                  	
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            Annex
              1 to Purchase Agreement

          

        

      

       

      

        Ismeca
          with the Product or after its delivery, the Customer and any contractor
          or
          vendor to the Customer shall be granted a perpetual simple
          user licence, hereinafter called the Licence,
          limited and bound to that Product alone;
          the use
          of the Programs for other purposes or by third parties shall be forbidden
          save
          with the prior written agreement of Ismeca. 

        

        
          	 	
                  Should
                    the Customer resell the Product to a third party, the Licence
                    shall
                    

                

        

        automatically
          be transferred to that party on the same conditions, and so forth thereafter.
          

        

        
          	
                  5.

                	
                  Intentionally
                    Left Blank 

                

        

         

        
          	6.	
                  Intentionally
                    Left Blank

                

        

         

        
          	
                  7.

                	
                  Making
                    available to Ismeca the Components necessary for testing the
                    Product
                    

                

        

        

        
          	 	
                  The
                    Customer shall, on the dates and in the quantities defined in
                    the
                    

                

        

        Confirmation,
          make available to Ismeca the Components necessary to perform the Acceptance
          Tests on the Product; the Components provided should in all respects comply
          with
          the drawings and be of regular quality. 

        

        
          	 	
                  The
                    Customer shall be liable for the consequences of any delays,
                    insufficient

                

        

        quantities
          or non-standard or irregular quality Components. 

         

        
          	8.	
                  Intentionally
                    Left Blank 

                

        

         

        
          	
                  9.

                	
                  Intentionally
                    Left Blank

                

        

        

        
          	10.	
                  Intentionally
                    Left Blank 

                

        

         

        
          	
                  11.

                	
                  Intentionally
                    Left Blank

                

        

         

        
          	12.	
                  Intentionally
                    Left Blank

                

        

         

        
          	
                  13.

                	
                  Transfer
                    of Title and Risks and
                    Benefits

                

        

        

        The
          transfer of title, risks and benefits to the Equipment to the Customer
          shall
          occur as soon as Ismeca places the Product in the possession of the carrier
          in
          the premises of Ismeca after successful completion of the Acceptance Tests
          as
          evidenced by a Certificate of Milestone Completion signed by Customer and
          Seller.

         

        Upon
          receipt of the Product, the Customer alone shall be responsible for unpacking
          it and ensuring that it be appropriately stored at its place of destination.
          

         

        
          	
                  14.

                	
                  Transport,
                    insurance and packing 

                

        

        

           

          
            	
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                      Europe Automation SA

                  	
                    Page
                      41/43 

                  

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          

          Annex
            1 to Purchase Agreement

        

      

       

      
        Transport
          and insurance shall be at the risk and cost of the Customer. Other than
          for
          standard machines, the Customer shall also pay the packaging costs.

         

        Unless
          otherwise indicated by the Customer, but at the Customer's cost, Ismeca
          shall,
          in consultation with Customer, select the carrier, the mode of transport
          and the
          packing and it shall, likewise at the Customer's cost, have the Product
          covered
          by an insurer of its choice against the usual transport risks.

         

        The
          packing materials are not returnable. 

         

        
          	
                  15.

                	
                  Technical
                    support of the Customer by Ismeca

                

        

        

        Except
          for the training and technical assistance included in the scope of this
          Annex,
          the cost of technical Customer support and the training of its staff, as
          provided by Ismeca on the request of the Customer, will be invoiced to
          the
          Customer, be it in relation to the installation, start-up, use, maintenance,
          etc. of the Products, or provided subsequently. 

         

        
          	16.	
                  Intentionally
                    Left Blank

                

        

         

        
          	
                  17.

                	
                  Guarantee
                    

                

        

        

        Ismeca
          guarantees that the Equipment complies with its Specification and this
          Annex 1
          as both are modified from time to time by written agreement of the Customer
          and
          Seller and embodies no design, constructional, assembly or material defect
          and
          can be used under normal conditions, provided the indications in the Ismeca
          instruction file are followed and the prescribed maintenance is carried
          out. In
          this respect the design life of the Equipment is twenty (20) years.

        
           

            The
              length of the guarantee shall be 12 months from the acceptance of the
              Product,
              but no more than 15 months from when Ismeca makes the Product
available
              to the carrier, whichever the sooner. The length of the guarantee on
              Products
              either repaired or replaced by Ismeca under its guarantee shall be
              12
              months from the time of the repair or delivery. Parts suffering wear
              and tear
              shall form an exception and are not guaranteed unless otherwise mentioned
              in
              this Agreement. 

          

        

        
        

        
          
            At
              Ismeca's discretion, the Product or the defective component may be
              repaired or
              replaced free of charge under the guarantee. The defects must be such
              as to be
              identifiable to and reasonably accepted by Ismeca. 

          

        

        
        

        
          
            Unless
              the Customer lacks the technical capacity itself to perform the necessary
              work
              and if no suitable local technical support is available, Ismeca will
              have the
              choice of having the necessary repair work performed by its own staff
              in
              situ
              or
asking
              the Customer to have the work done at Ismeca's expense, or asking a 
              technical
              team to do it for the account and at the expense of Ismeca.

          

        

        

        All
          other
          claims are excluded, especially with regard to damages in respect of
direct
          or
          indirect damages, loss of production, lost earnings, etc., as is the possibility
          for the Customer to reduce or rescind the Order in question or any other
          order

      

      
         

        
          	
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                    Europe Automation SA

                	
                  Page
                    42/43 

                

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          

          Annex
            1 to Purchase Agreement

        

      

       

      
        already
          confirmed. This exclusion does not apply to cases of grave misfeasance
          or wilful
          misconduct on the part of Ismeca. 

         

        The
          guarantee does not cover damage resulting from normal wear, improper
treatment,
          lack of maintenance, excessive use or failure to observe the instructions
          for use. 

         

        Any
          direct intervention, repair, modification or transformation performed on
          the
          Product or the Programs by the Customer or by a third party after the Product
          or
          the Programs leave Ismeca, without prior written permission from Ismeca,
          will
invalidate
          the Ismeca guarantee on the corresponding part of the Product or the Programs
          and will render any outstanding balance of payment immediately callable.
          

         

        
          	18.	
                  Intentionally
                    Left Blank 

                

        

         

        
          	
                  19.

                	
                  Intentionally
                    Left Blank 

                

        

         

        
          	
                  20.

                	
                  Invalidation
                    of a clause 

                

        

        

        If
          one or
          more of the terms of the present General Conditions should be or 

         

        become
          partially or completely invalid, the remainder of the present General Conditions
          shall remain entirely valid. The Parties shall consult on the invalidated
          term
          or terms to find a replacement solution whose legal and economic scope
          would be
          as close as possible to that of the term or terms invalidated. 

         

        
          	
                  21.

                	
                  Authentic
                    version 

                

        

        

        
          	 	
                  Only
                    the English version of the present General Conditions shall be
                    authentic.
                    

                

        

        

        
          	22.	
                  Intentionally
                    Left Blank

                

        

      

      
         

        
          	
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                    Septmber 2005

                	
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                    Europe Automation SA

                	
                  Page
                    43/43 

                

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Annex
            1 to Purchase Agreement

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