Document:

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Exhibit 10.2

                                   AGREEMENT

                       Drawn up and signed 16 March 1999

         BETWEEN:   Orlite Industries (1959) Ltd. of 2 Ben Gurion St., Nes Ziona

                              (hereinafter: Orlite)

         AND:       Export Erez Ltd. of Nes Ziona Industrial Zone, Erez Border
                    Crossing

                               (hereinafter: Erez)

         WHEREAS    Orlite is engaged, among other things, in the production of
helmets and it has know-how and reputation in this field (hereinafter: field of
business);

         AND WHEREAS: Erez has know-how of the production of textiles, mainly
military textiles;

         AND WHEREAS: the parties wish to cooperate in various projects in the
field of business for overseas bodies;

         AND WHEREAS: for the purpose of joint activity the parties have agreed
to draw up an agreement and for this purpose they have agreed to establish a
limited partnership;

         AND WHEREAS: the parties wish to determine and to define the nature of
the legal relationship between them in the framework of the provisions of this
agreement;

         Therefore the parties have stipulated, agreed and declared as follows:

General

         1.1.     The preamble and attachments to this agreement form an
                  integral part of it.

         1.2.     The headings of the articles of this agreement are for
                  purposes of convenience only and are not to be considered when
                  interpreting the agreement.

2.       Declarations of the parties: Each of the parties declares and confirms
         that:

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                                                                          Page 2
Exhibit 10.2

         2.1.     For its part there is nothing to prevent or limit it according
                  to any law and/or agreement and/or any other cause from
                  entering into and executing this agreement.

         2.2.     The relationship according to this agreement, and performance
                  of all obligations arising out of it have been approved by all
                  the authorized bodies and no further consent or approval is
                  required for the purposes of signing this agreement and
                  carrying out the obligations arising out of it.

         2.3.     It has the necessary personnel, infrastructure, production
                  capacity and equipment in order to perform all its obligations
                  under this agreement, and any approvals and/or licenses
                  required, if required, and it fulfills all the necessary legal
                  requirements for the performance of its obligations under this
                  agreement.

3.       Setting up the limited partnership

         3.1.     The parties hereby unite in a limited partnership subject to
                  the conditions described in this agreement.

         3.2.     The name of the limited partnership will be: Erez - Light, or
                  any other name approved by the Registrar of Partnerships on
                  application by the parties (heretofore and hereinafter: the
                  limited partnership).

         3.3.     Erez will be the general partner in the limited partnership
                  (hereinafter: the general partner) and Orlite will be the
                  limited partner in the limited partnership (hereinafter: the
                  limited partner).

         3.4.     The provisions of this agreement comprise the regulations of
                  the limited partnership, and any change in this agreement is
                  equivalent to a change in the regulations of the limited
                  partnership.

         3.5.     As soon after the signing of this agreement as possible, the
                  parties will prepare and submit all the documents required to
                  register the limited partnership. The parties undertake to
                  sign any document that may be required for the purposes of
                  registering the limited partnership with the Registrar of
                  Partnerships.

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                                                                          Page 3
Exhibit 10.2

4.       The shares of the parties in the limited partnership: The share of each
         of the partners in the limited partnership - and without limiting
         and/or detracting from the generality of the above, including its
         capital, assets, reputation and profits, will be as follows:

                    a.   Party A - Orlite:             50%
                    b.   Party B - Erez:               50%

5.       Aims of the limited partnership and areas of its business activity

         5.1.     The aims of the limited partnership will be as follows:

                  5.1.1.   Executing various projects concerning the manufacture
                           and marketing of helmets for overseas customers.

                  5.1.2.   Executing various projects as decided by the limited
                           partnership.

                  5.1.3.   Forming a legal association for all legal intents and
                           purposes.

         5.2.     Without limiting and/or detracting from the generality of the
                  provisions of 5.1 above, the limited partnership may execute
                  the following: enter into contracts, borrow moneys from any
                  banking organization in Israel and/or from any person or group
                  of persons, to purchase and/or to hire equipment and/or means
                  of any kind required in the performance of its activities, to
                  employ trained staff and/or sub contractors and/or employees -
                  insofar as such activities, wholly or in part, are required
                  for the performance of the business activities of the limited
                  partnership.

         5.3.     The parties hereby agree that the limited partnership will be
                  forbidden to enter into relationships, directly or indirectly,
                  with customers in Israel, including the Defense Establishment,
                  and will be forbidden to manufacture for the IDF and the
                  Military helmets of any kind whatsoever.

6.       Management of the limited partnership:

         6.1.     The affairs of the limited partnership will be managed
                  according to the instructions and under the supervision of the
                  board of the limited partnership (hereinafter: the board). The
                  board will appoint 3 members (hereinafter: the members),
                  unless the partners decide otherwise.

         6.2.     Erez may appoint two of the board members. The third member
                  who will be appointed chairman of the board, will be appointed
                  by Erez from a list of names drawn up by

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                                                                          Page 4
Exhibit 10.2

                  Orlite. The chairman will have no additional casting vote in
                  any vote held by the board of the limited partnership.

         6.3.     Orlite may appoint an observer who will be present at all
                  board meetings, but will not participate in voting sessions
                  held there (hereinafter: the observer).

         6.4.     The board will meet regularly to conduct the affairs of the
                  limited partnership, at least once every two months.

         6.5.     A legal quorum at board meetings will be at least two members,
                  of whom one will be the chairman, or any two members plus the
                  observer.

         6.6.     The board will adopt resolutions by a majority of votes of the
                  members present at a meeting where there is a legal quorum and
                  when notification of such meeting was received at least 7 days
                  in advance.

         6.7.     Notwithstanding the above, resolutions concerning the
                  following issues will require prior written consent from
                  Orlite and will not be valid without receipt of such approval:

                  6.7.1.   Bringing a new member into the limited partnership.

                  6.7.2.   Using money and/or assets of the limited partnership
                           or using its credit otherwise than for the business
                           of the limited partnership.

                  6.7.3.   Creating liens in favor of a third party, including a
                           partial lien of a partner.

                  6.7.4.   Acquiring and/or realizing assets of the limited
                           partnership.

                  6.7.5.   Changing the purposes of the limited partnership.

                  6.7.6.   Changing the form of the association.

                  6.7.7.   Distribution of profits.

                  6.7.8.   Creating an obligation or investment of the limited
                           partnership in an amount greater than $5,000.

         6.8.     Erez will propose a person to be appointed as manager of the
                  limited partnership, and who will be responsible, among other
                  things, for the daily management of the limited partnership,
                  for marketing and purchasing. Orlite may require the
                  replacement of the

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Exhibit 10.2

                  manager for reasonable cause of failure in his job. The first
                  manager of the limited partnership will be Mr. Yosef
                  Postbinder.

7.       Business plan

         7.1.     The basis for the business activity of the limited partnership
                  will be a business plan to be prepared by the board of the
                  limited partnership and approved by the limited partnership.

         7.2.     On the basis of the business plan, the limited partnership
                  will prepare annual budgets and detailed activity budgets,
                  including cash flow, to act as the basis of the business
                  activity of the limited partnership.

8.       Undertakings of the parties

         8.1.     On signing this agreement, each of the parties will place at
                  the disposal of the limited partnership equipment as specified
                  in Attachment A to this agreement. After a period of two years
                  from the signing of this agreement, the limited partnership
                  will purchase the above equipment from the side that provided
                  it for payment of its value as determined by an assessor to be
                  appointed with the agreement of the parties.

         8.2.     Erez will place at the disposal of the limited partnership
                  production staff as required for the activities of the limited
                  partnership and will supervise their work. In return for the
                  production staff to be provided by Erez as stated, the limited
                  partnership will reimburse Erez for the cost of these
                  employees, including the generally accepted social benefits
                  provided by Erez.

         8.3.     The limited partnership will conduct its activities in the
                  offices of Erez and will receive from it office services, free
                  of charge. The office services will include, among other
                  things, allocation of rooms for the activities of the limited
                  partnership. In return for office equipment to be supplied by
                  Erez and for book-keeping, post, telephone and other such
                  services, the limited partnership will pay Erez sums to be
                  agreed between the parties.

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                                                                          Page 6
Exhibit 10.2

         8.4.     In return for the use of production space placed at the
                  disposal of the limited partnership by Erez, the limited
                  partnership will pay Erez a sum to be agreed between the
                  parties, based on the usual price per square meter in Erez
                  Industrial Zone.

         8.5.     Erez will bear the costs of the ongoing management of the
                  limited partnership, marketing costs and costs of maintaining
                  the limited partnership's production line. Notwithstanding
                  this provision, it is clarified that the limited partnership
                  will bear any extraordinary costs involved in marketing and
                  maintenance (such as participation in shows, producing
                  brochures and repairing faults involving considerable sums).

         8.6.     Orlite will allow the limited partnership to make use of its
                  accumulated know-how in the area of helmet production and will
                  provide the limited partnership, at is expense, with
                  professional training, assistance and technical support on all
                  aspects of the manufacture of the helmets. In addition, Orlite
                  will be responsible for and will bear the costs of planning
                  the production line to be set up by the limited partnership.

                  It is hereby agreed and clarified that all know-how relating
                  to helmet production which will accumulate with the limited
                  partnership and/or with the personnel supplied to the limited
                  partnership by Erez is and will remain at all stages the
                  exclusive property of Orlite. Erez and/or the limited
                  partnership will not be entitled to make any use of this
                  know-how except in the framework of this agreement. It is also
                  agreed that this undertaking is fundamental to the agreement
                  and will continue to be valid even if the agreement is
                  terminated for any reason whatsoever.

         8.7.     Planning the technical activities of the limited partnership
                  and examining quotations submitted to the limited partnership
                  will be carried out by both parties.

         8.8.     The limited partnership will bear the cost of all payments to
                  be paid to the sub contractors with which it works. The method
                  of dividing between the parties the remaining costs of the
                  limited partnership not expressly determined in this agreement
                  will be decided between the parties.

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                                                                          Page 7
Exhibit 10.2

         8.9.     Each of the parties will have the right of first refusal for
                  executing certain works for the limited partnership and/or for
                  supplying services to the limited partnership, whether
                  directly or by means of an associate, at the discretion of
                  that party and at a competitive price, and on condition that
                  is offer is the best offer for the limited partnership
                  according to the criteria and regulations to be determined by
                  the parties, or at most, up to 10% higher than the price of
                  other offers.

         8.10.    If the limited partnership is interested in purchasing raw
                  materials manufactured by Erez, Erez must supply these raw
                  materials to the limited partnership at cost plus 10%. Erez
                  will submit to Orlite, at Orlite's request, confirmation from
                  an accountant concerning the cost prices of the said raw
                  materials.

9.       Investments of the parties

         9.1.     On its establishment, the limited partnership will open a bank
                  account in a branch to be determined by the board.

         9.2.     Any investment in the limited partnership will be effected by
                  the parties according to the share of each party in the
                  limited partnership, whether as an investment or as a loan, as
                  decided by the board.

         9.3.     On opening the account, each party will place at the disposal
                  of the limited partnership the sum of NIS50,000 as owner's
                  loans, linked to the consumer price index, to be repaid within
                  two years.

         9.4.     The parties and/or their employees will not be entitled to
                  debit the limited partnership, to act in its name or to
                  represent it in any way except according to the provisions of
                  this agreement and/or with the explicit written and signed
                  agreement of the parties. In the event that either of the
                  parties or their representatives act in such a way as to cause
                  a breach of the provisions of this clause, the party in breach
                  will compensate the limited partnership or the other party for
                  any damage or loss or expense arising out of such breach.

10.      Distribution of profits of the limited partnership:

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Exhibit 10.2

         10.1.    The limited partnership will distribute, in each financial
                  year in which the limited partnership has a profit, only after
                  repayment of the owners' loans given to the limited
                  partnership as provided in clause 9.3 above, all the
                  distributable profits for that year, unless the parties agree
                  otherwise.

         10.2.    It is hereby clarified that the cost of manufacturing the
                  helmets will be determined according to standard production
                  times for helmets to be agreed between the parties, according
                  to the actual cost of the raw materials used in helmet
                  production and indirect and overhead costs as agreed between
                  the parties. In the event of a disagreement between the
                  parties on any matter relating to determination of helmet
                  production costs, each of the sides may ask to have the matter
                  referred for decision to the offices of Accountant
                  Somech-Chaikin as sole final arbitrator, and his decision will
                  be as binding on the parties as an arbitrator's decision. This
                  arbitration will be subject to the provisions of the First
                  Addition to the Law of Arbitration, 5728- 1968, but the
                  arbitrator must decide according to the substantive law and
                  laws of evidence, and must give reasons for his decision.

11.      Limited partners

         11.1.    Any limited partners will not participate in the management of
                  the limited partnership or in the management of its business
                  and will not carry out any legal activity in the name of the
                  limited partnership.

         11.2.    Any limited partners will not be responsible for the debts of
                  the limited partnership over and above the sums they invested
                  in the limited partnership.

12.      Terms of trust and honesty between the parties: The parties will be
         frank, open and loyal to each other, will give each other full and true
         information on all matters concerning the affairs of v and will avoid
         any action against the interests of the company and/or the interests
         and/or the good of the other party.

13.      Duration of the limited partnership: The parties agree that the limited
         partnership between the parties is for an unlimited period.

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                                                                          Page 9
Exhibit 10.2

14.      Confidentiality: The parties hereby undertake to preserve
         confidentiality and not to disclose or reveal in any way, to any person
         or other entity any information that it has or will have in its
         possession concerning the business of the limited partnership, its
         plans or the business of the other party, apart from information that
         is already public knowledge. Also, each party to this agreement
         undertakes to make every reasonable effort to prevent such information
         reaching third parties. This provision will not apply if one party is
         required to disclose such information to a qualified authority
         according to law. In such case, the disclosing party will inform the
         other party.

15.      No competition

         15.1.    Erez undertakes for the period of activity of the limited
                  partnership and for 3 years thereafter not to engage directly
                  or indirectly in the field of business as defined in this
                  agreement, except in the framework of the limited partnership,
                  and in any similar and/or competing business and/or whose
                  subject is the aims and business of the limited partnership
                  and/or to establish and/or to be a partner in the
                  establishment and/or active management of any entity whose
                  purposes are the same as those of the limited partnership, as
                  long as it is a limited partner in the limited partnership.
                  Notwithstanding the above, Orlite declares that it does not
                  intend to carry out export deals for helmets, apart from
                  special cases (such as the export of UHMWPE helmets).

         15.2.    In order to remove all doubt, it is hereby clarified that
                  nothing in this agreement is intended to prevent Orlite
                  engaging in the field of business and in any other activity
                  that it may decide on outside the framework of the limited
                  partnership.

16.      Absence of employer- employee relationship: There is no employee-
         employer relationship between the staff supplied by Erez to the limited
         partnership and Orlite, and between each of the parties to this
         agreement and the other, or between either of the parties to this
         agreement and anyone employed by the other party to the agreement. Each
         of the parties is responsible for arranging all matters concerning the
         employee-employer relationship between it and its employees. If in
         spite of the foregoing,

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                                                                         Page 10
Exhibit 10.2

         and in opposition to the explicit intention of the parties, it is
         determined that Orlite is the employer of Erez employees or of anyone
         employed by the limited partnership or acting on its behalf in the
         performance of the agreement, Erez undertakes to compensate Orlite
         immediately for all costs and damages caused to Orlite for this reason.

17.      Dissolution of the limited partnership

         17.1.    The limited partnership will be dissolved by a resolution
                  adopted unanimously by all members of the board.

         17.2.    Without detracting from the right of each party to any remedy
                  according to this agreement or according to any law, it is
                  agreed that each party may request the dissolution of the
                  limited partnership and termination of this agreement in each
                  of the following circumstances:

                  17.2.1.  If foreclosure is imposed on the share in the limited
                           partnership of one of the parties, and not canceled
                           within 90 days.

                  17.2.2.  If a liquidation order is given against one of the
                           partners, or if one of the partners takes a decision
                           of voluntary liquidation, unless such voluntary
                           liquidation is for the purposes of re-organization.

         17.3.    In the case of dissolution of the limited partnership the
                  parties will work together to liquidate and divide the assets
                  of the limited partnership in the most efficient way.

         17.4.    The parties hereby agree that in the event of dissolution of
                  the limited partnership as stated, the parties will act
                  according to the following order of priorities:

                  17.4.1.  The limited partnership will continue to exist for 3
                           months from the date of the dissolution decision.

                  17.4.2.  A general and full accounting will be made of the
                           assets, inventory, credits, debits and obligations of
                           the limited partnership.

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Exhibit 10.2

                  17.4.3.  The assets, equipment and inventory will be realized,
                           subject to the provision that each party will have
                           right of first refusal to purchase the equipment and
                           inventory placed at the disposal of the limited
                           partnership by the other party.

                  17.4.4.  The debts will be paid, obligations will be released,
                           and the costs of dissolving the limited partnership
                           will be paid.

                  17.4.5.  The limited partnership will repay loans given by the
                           parties and/or either of them.

         17.5.    Any balance remaining will be divided between the parties
                  according to their share of the limited partnership.

18.      General

         18.1.    Each party undertakes to indemnify the other party for any
                  damage caused to it due to any action and/or omission contrary
                  to the provisions of this agreement.

         18.2.    The accountant of the limited partnership will be the
                  Somech-Chaikin Accounting Offices or any other firm, as chosen
                  by Orlite.

         18.3.    All the costs of this agreement, including related documents,
                  stamping and registration of the limited partnership at the
                  Registrar of Partnerships will be borne by the partners in
                  equal parts.

         18.4.    Erez and/or the limited partner will act to obtain the "Sigat"
                  permits required for producing the helmets.

         18.5.    This agreement expresses the full agreement between the
                  parties concerning the subjects and matters dealt with herein,
                  and it replaces and cancels any exhibit, agreement,
                  negotiation, procedure, memorandum, statements of principle,
                  offers, summaries, letters of intention and/or undertakings,
                  and any other document, unless specifically included in this
                  agreement or its attachments, or adopted by or referred to in
                  this agreement or its attachments.

         18.6.    Any correction, change or addition to this agreement will only
                  be valid when drawn up in writing and signed by all the
                  parties to the agreement.

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                                                                         Page 12
Exhibit 10.2

         18.7.    Any notification under this agreement will be in writing and
                  delivered to its addressee in person or sent by registered
                  mail to the address in the preamble to the agreement, and then
                  will be considered to have reached its destination within 72
                  hours of being handed in for delivery.

         IN WITNESS WHEREOF, the parties have set their hands

Orlite Industries (1959) Ltd.                Export Erez Ltd.<PAGE>

EXHIBIT 10.3                                                       PAGE NUMBER 1
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         AGREEMENT setting forth the terms and conditions upon which TPG CAPITAL
CORPORATION ("TPG") is engaged by EXPORT EREZ LTD. together with any successors
(collectively "Export Erez") to effect transactions ("the Transactions")
intended to merge the Company into a reporting company and for related matters.

1.       SERVICES PROVIDED.

         Following its engagement, TPG and others, including Jovanda Ltd. and
its affiliates, will:

         1.1.     Advise Export Erez on the structure of the Transactions and
actions to be taken by Export Erez in preparation for the completion of the
Transactions;

         1.2.     Merge Export Erez with or assist in transferring its assets
into an existing Delaware corporation ("the Business Combination") which is or
will become a reporting company under ss.12(g) of the Securities and Exchange
Act of 1934, as amended ("the Company" hereinafter shall mean the Delaware
corporation following the Business Combination, unless the context requires
otherwise);

         1.3.     Prepare, assist in preparing or review the agreement for the
Business Combination ("Business Combination Agreement");

         1.4.     Prepare and file with the Securities and Exchange Commission a
Form 10 or Form 8-K describing the Company.

         1.5.     Cause the Company to obtain a trading symbol for its
securities on the NASD OTC Bulletin Board or other appropriate trading market.

         1.6.     Introduce the Company to one or more market makers for the
purpose of making an orderly and efficient market in the Company's securities;

         1.7.     When and if the Company meets such requirements, apply for
admission to quotation of the Company's securities on the Nasdaq Stock Market
and/or their listing on a regional or national stock exchange, if requested by
the Company;

         1.8.     Take any other actions reasonably required of it to complete
the Transactions as contemplated by this agreement.

2.       BUSINESS COMBINATION.

         2.1.     TPG will provide, at its expense, a Delaware corporation with
audited financial statements showing no assets or liabilities which will be or
which TPG will cause to become a reporting company under ss.12(g) of the
Securities and Exchange Act of 1934 ("the 1934 Act").

         2.2.     Export Erez will merge into or transfer assets to the Delaware
corporation. Upon the effective date of the Business Combination, the officers,
directors and bylaws of Export Erez will become the officers, directors and
bylaws of the Delaware corporation. The name of the Delaware corporation
following the Business Combination will be chosen by Export Erez.

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EXHIBIT 10.3                                                       PAGE NUMBER 2
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         2.3.     The Delaware corporation will have authorized capital of
100,000,000 shares of common stock, $.0001 par value per share, and 20,000,000
shares of preferred stock, $.0001 par value per share.

         2.4.     Upon the effective date of the Business Combination, there
will be issued and outstanding (i) 500,000 common shares to TPG (ii) a common
stock purchase warrant (described below) granted to TPG and (iii) such common
stock and other securities as designated by the Company in the Business
Combination Agreement.

         2.5.     The Company may issue additional securities from time to time
as approved by its board of directors without any obligation to offer or issue
any part of such additional securities to TPG or its affiliates. However, the
Company shall not take any steps at any time (whether by reverse stock split or
otherwise) to reduce the number of common shares of the Company received or to
be received by TPG hereunder.

         2.6.     The common shares received or to be received by TPG hereunder
represent an equity interest in the Company only and not in Export Erez Ltd. If,
at any time, the Company distributes any or all of the securities of Export Erez
Ltd. owned by the Company neither TPG nor any affiliate will assert any claim
against such securities.

3.       PAYMENTS.

         3.1.     Export Erez will pay TPG $140,000 for its services and the
services of its affiliates in regard to the Transactions. Payment of this amount
will be made $35,000 on execution of this agreement, $35,000 on the Business
Combination, $35,000 on the filing of a Form 10 or Form 8-K with the Securities
and Exchange Commission, and $35,000 on filing for a trading symbol for the
Company's securities.

         3.2.     In the event that Export Erez is a foreign corporation, or for
other reasons TPG deems sufficient, TPG may request Export Erez, and Export Erez
agrees, to deposit an amount equal to the remaining payments to be made after
execution of this agreement in escrow under an escrow agreement satisfactory to
both parties.

         3.3.     Export Erez hereby grants TPG a 5-year transferrable warrant
("TPG Warrant") to acquire up to 250,000 registered shares of the Company's
common stock at a strike price of $1.00 per share. The Company will execute and
deliver to TPG a form of common stock purchase warrant agreement, warrant and
warrant exercise subscription not inconsistent with the terms provided herein.

         3.4.     The TPG Warrant and the common stock underlying the TPG
Warrant ("TPG Warrant Shares") shall be adjusted upon any future stock issue,
stock dividend, stock split, merger, acquisition, recapitalization or other
transaction affecting the amount of the securities issued by the Company so that
the percentage held by TPG or its assigns of the common stock of the Company
obtained from time to time upon exercise of its TPG Warrant shall not be
diluted.

         3.5.     At the election of the Company, TPG will cause the preparation
and filing with the Securities and Exchange Commission of the periodic reports
required by the Securities Exchange Act of 1934 to include Forms 3, 4, 5, 8-K,
10-Q (or 10-QSB) and 10-K (or 10-KSB)

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EXHIBIT 10.3                                                       PAGE NUMBER 3
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for the twelve months following the Business Combination at a fixed fee of
US$15,000 payable US$1,250 per month.

4.       EXPENSES.

         4.1.     TPG will bear its expenses incurred in regard to the
Transactions, including, without limitation, travel, telephone, duplication
costs, and postage.

         4.2.     Export Erez will pay its own and third-party expenses (other
than those of TPG) including, without limitation, Federal, underwriting and
market making costs, corporate financial relations, accounting fees, duplicating
costs and other expenses of the Company.

5.       AGREEMENT TO COMPLETE TRANSACTIONS.

         5.1.     Export Erez agrees that it will timely take all steps
necessary to complete the Transactions to include, without limitation, causing
audited financial statements to be prepared in proper form for Export Erez;
obtaining consents of the Board of Directors and the shareholders of Export
Erez, as required; causing all necessary documents to be properly and timely
prepared, executed, approved or ratified, and filed, as appropriate; making
timely and fully all required payments related to the registration and listing
of the Company's securities for public trading, including filing fees; and
timely taking all other actions reasonably required of it to complete the
Transactions.

         5.2.     In the event that Export Erez does not timely take all such
steps and do all such things as may be reasonably required of it to complete the
Transactions, TPG will be entitled to (i) retain the securities of the Company
acquired or to be acquired by TPG or its affiliates under this agreement and
(ii) receive in full all payments to be due to it or its affiliates through and
upon completion of the Transactions as though those events had occurred
provided, however, that Export Erez will not be obligated to make any payment
under this paragraph if the failure to complete the Transactions is due to any
improper actions or failure to act by TPG or its affiliates. Upon payment of the
"break up" fee provided for herein, all obligations of the parties under this
agreement will cease except for obligations which expressly or by their nature
survive termination.

         5.3.     Notwithstanding any other provisions of this agreement, it is
expressly agreed and understood that (i) Export Erez will have sufficient time
to complete the Transactions taking into consideration any delays arising from
its need to comply with Israeli law, accounting or other matters and (ii) the
only stock interest to be retained by TPG upon a default under this agreement
will be in the public company and not in Export Erez.

6.       PERFORMANCE OF SERVICES BY OTHERS.

         From time to time, the achievement of certain results desired by the
Company, including the promotion of interest in its public securities, may be
enhanced by the services of other parties. These parties may include
consultants, advertising agencies, market makers, investment bankers, financial
analysts and similar persons who may, directly or indirectly, assist in creating
interest in the Company's securities. All compensation, costs and expenses of
such parties will be borne by the Company.

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EXHIBIT 10.3                                                       PAGE NUMBER 4
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7.       ACTIONS AND UNDERSTANDINGS FOLLOWING THE BUSINESS COMBINATION.

         7.1.     Export Erez understands the obligations and responsibilities
that will arise in regard to its becoming a reporting company and the trading of
its securities in the public market. Export Erez understands that in order to
achieve the greatest market interest in its securities it, its officers and its
directors, all or some, will be required to continuously interact with the
financial community. This interaction will include, without limitation, timely
filing of reports under the Securities Exchange Act of 1934, including audited
financial statements; annual reports to shareholders and shareholder meetings;
issuing periodic press releases; and meetings and discussions with existing and
prospective brokers, market makers, investment bankers and institutions.

         7.2.     Export Erez understands that the completion of the
Transactions will not, in itself, result in capital investment in the Company.
The public status of the Company and its introduction to market makers and
others in the financial community may result in investment interest. However,
investment interest will depend upon the success of the Company, market
conditions and other factors over which neither TPG nor its affiliates have any
control.

         7.3.     Export Erez understands that the ultimate judgement of the
financial community of the investment merits of the Company will depend upon the
Company's ability to successfully carry out its business plans and operations,
to operate at a profit and similar business considerations. Export Erez
represents in good faith that it currently has no reason to believe that it will
be not be able to complete the Transactions and to achieve its business
objectives.

         7.4.     Export Erez understands that the first trading in the
Company's securities may be limited, and that to increase the amount, depth and
market price of its Company's securities will require both time and effort by
the Company to develop relations with market makers and to create strong and
stable trading of the Company's securities.

         7.5.     For not less than 36 months following effective date of the
Registration Statement, the Company will timely make all required Federal, state
and other filings necessary to allow the public trading of the Company's
securities and, if the Company's securities are then quoted on the Nasdaq Stock
Market or listed on any regional or national exchange, will take all actions
necessary to maintain such status for the Company's securities.

         7.6.     During the Transactions and so long as TPG or an affiliate is
a shareholder of the Company, it will provide TPG continuing and reasonable
access as requested to all information concerning the Company's operations,
past, current and intended, including, without limitation, full access to the
financial records of the Company.

8.       NOTICES.

         Any notices required or permitted under this agreement shall be deemed
to have been given when delivered in writing by hand, certified mail (return
receipt requested) or commercial courier, such as FedEx, to the following
addresses or to such other addresses as may have been given to each party in the
manner provided for in this paragraph.

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EXHIBIT 10.3                                                       PAGE NUMBER 5
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         In the case of Export Erez

         Export Erez Ltd.
         Industrial Zone Erez
         PO Box 779
         Ashkelon, Israel 78101

         In the case of TPG to

         TPG Capital Corporation
         1504 R Street N.W.
         Washington, D.C. 20009

9.       NON-COMPETITION WITH TPG CAPITAL.

         9.1.     Export Erez understands that TPG and its affiliates are
engaged in, and receive income from, assisting other companies in becoming
public through mergers with or the contribution of assets into existing public
companies.

         9.2.     Export Erez agrees that except as provided in this agreement
neither it nor any of its officers, directors, agents, employees or affiliates
will at any time or times without the written consent of TPG engage, directly or
indirectly, in assisting any entity or person to engage in a Business
Combination with any public company created or utilized for the purpose of
allowing private companies to become public.

         9.3.     In the event that Export Erez engages, or seeks to engage, in
any transactions prohibited hereby, Export Erez agrees that it (i) hereby
consents to an injunction in any court of competent jurisdiction against such
prohibited transactions (ii) will disgorge to TPG all proceeds of whatever kind
it received or is to receive, when received, from engaging or seeking to engage
in such prohibited transactions and (iii) will pay all costs and reasonable
attorney's fees incurred by TPG in enforcement of the provisions of this
paragraph.

10.      ARBITRATION.

         10.1.    SCOPE. The parties hereby agree that any and all claims
(except only for requests for injunctive or other equitable relief) whether
existing now, in the past or in the future as to which the parties or any
affiliates may be adverse parties, and whether arising out of this agreement or
from any other cause, will be resolved by arbitration before the American
Arbitration Association within the District of Columbia.

         10.2.    CONSENT TO JURISDICTION, SITUS AND JUDGEMENT. The parties
hereby irrevocably consent to the jurisdiction of the American Arbitration
Association and the situs of the arbitration within the District of Columbia.
Any award in arbitration may be entered in any domestic or foreign court having
jurisdiction over the enforcement of such awards.

         10.3.    APPLICABLE LAW. The law applicable to the arbitration and this
agreement shall be that of the District of Columbia, determined without regard
to its provisions which would otherwise apply to a question of conflict of laws.

         10.4.    DISCLOSURE AND DISCOVERY. The arbitrator may, in its
discretion, allow the parties to make reasonable disclosure and discovery in
regard to any matters which are the subject of

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EXHIBIT 10.3                                                       PAGE NUMBER 6
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the arbitration and to compel compliance with such disclosure and discovery
order. The arbitrator may order the parties to comply with all or any of the
disclosure and discovery provisions of the Federal Rules of Civil Procedure, as
they then exist, as may be modified by the arbitrator consistent with the desire
to simplify the conduct and minimize the expense of the arbitration.

         10.5.    RULES OF LAW. Regardless of any practices of arbitration to
the contrary, the arbitrator will apply the rules of contract and other law of
the jurisdiction whose law applies to the arbitration so that the decision of
the arbitrator will be, as much as possible, the same as if the dispute had been
determined by a court of competent jurisdiction.

         10.6.    FINALITY AND FEES. Any award or decision by the American
Arbitration Association shall be final, binding and non-appealable except as to
errors of law or the failure of the arbitrator to adhere to the arbitration
provisions contained in this agreement. Each party to the arbitration shall pay
its own costs and counsel fees except as specifically provided otherwise in this
agreement.

         10.7.    MEASURE OF DAMAGES. In any adverse action, the parties shall
restrict themselves to claims for compensatory damages and\or securities issued
or to be issued and no claims shall be made by any party or affiliate for lost
profits, punitive or multiple damages.

         10.8.    COVENANT NOT TO SUE. The parties covenant that under no
conditions will any party or any affiliate file any action against the other
(except only requests for injunctive or other equitable relief) in any forum
other than before the American Arbitration Association, and the parties agree
that any such action, if filed, shall be dismissed upon application and shall be
referred for arbitration hereunder with costs and attorney's fees to the
prevailing party.

         10.9.    INTENTION. It is the intention of the parties and their
affiliates that all disputes of any nature between them, whenever arising,
whether in regard to this agreement or any other matter, from whatever cause,
based on whatever law, rule or regulation, whether statutory or common law, and
however characterized, be decided by arbitration as provided herein and that no
party or affiliate be required to litigate in any other forum any disputes or
other matters except for requests for injunctive or equitable relief. This
agreement shall be interpreted in conformance with this stated intent of the
parties and their affiliates.

11.      ASSIGNMENT.

         For regulatory reasons or to better carry out the Transactions, TPG may
assign this agreement to an affiliated corporation provided that such affiliated
corporation agrees to all the terms and conditions of this agreement. Such
assignment will not relieve TPG of any of its obligations under this agreement.

12.      TERMINATION.

         TPG may terminate this agreement, without further obligation or
liability, at any time (i) that TPG has a reasonable basis to believe that any
aspect of the transactions covered by this agreement would constitute a fraud or
deception on the market or (ii) that the Company fails to meet its obligations
under this agreement in a manner which would constitute a material

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EXHIBIT 10.3                                                       PAGE NUMBER 7
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breach. In any such case, TPG will be entitled to the break up fee provided for
in this agreement.

13.      MISCELLANEOUS

         13.1.    COVENANT OF FURTHER ASSURANCES. The parties agree to take any
further actions and to execute any further documents which may from time to time
be necessary or appropriate to carry out the purposes of this agreement.

         13.2.    SCOPE OF AGREEMENT. This agreement constitutes the entire
understanding of the parties. No undertakings, warranties or representations
have been made other than as contained herein, and no party shall assert
otherwise. This agreement may not be changed or amended orally.

         13.3.    CURRENCY. All references to currency in this agreement are to
United States Dollars.

         13.4.    REVIEW OF AGREEMENT. Each party acknowledges that it has had
time to review this agreement and, as desired, consult with counsel. In the
interpretation of this agreement, no adverse presumption shall be made against
any party on the basis that it has prepared, or participated in the preparation
of, this agreement.

14.      EFFECTIVE DATE.

         The effective date of this agreement is November 9, 1998.

         IN WITNESS WHEREOF, the parties have approved and executed this
agreement.

TPG CAPITAL CORPORATION                      EXPORT EREZ LTD.

-----------------------------------          -----------------------------------
President                                    President

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