Document:

EXHIBIT 4.5

                                WARRANT AGREEMENT

         Agreement  made as of  _____________,  2005 between  Israel  Technology
Acquisition Corp., a Delaware corporation, with offices at 23 Karlibach St., Tel
Aviv 67132, Israel ("Company"),  and Continental Stock Transfer & Trust Company,
a New York  corporation,  with offices at 17 Battery  Place,  New York, New York
10004 ("Warrant Agent").

         WHEREAS,   the  Company  is  engaged  in  a  public  offering  ("Public
Offering") of Units  ("Units") and, in connection  therewith,  has determined to
issue and  deliver up to (i)  13,800,000  Warrants  ("Public  Warrants")  to the
public investors, and (ii) 600,000 Warrants to EarlyBirdCapital, Inc. ("EBC") or
its  designees  ("Representative's  Warrants"  and,  together  with  the  Public
Warrants, the "Warrants"),  each of such Public Warrants evidencing the right of
the holder  thereof to purchase one share of the  Company's  common  stock,  par
value $.0001 per share  ("Common  Stock"),  for $5.00,  subject to adjustment as
described herein; and

         WHEREAS,  the  Company  has  filed  with the  Securities  and  Exchange
Commission a Registration  Statement on Form S-1, No. 333-123331  ("Registration
Statement"), for the registration,  under the Securities Act of 1933, as amended
("Act") of, among other  securities,  the Warrants and the Common Stock issuable
upon exercise of the Warrants; and

         WHEREAS,  the Company desires the Warrant Agent to act on behalf of the
Company,  and the  Warrant  Agent is willing to so act, in  connection  with the
issuance,  registration,  transfer,  exchange,  redemption  and  exercise of the
Warrants; and

         WHEREAS,  the Company desires to provide for the form and provisions of
the Warrants,  the terms upon which they shall be issued and exercised,  and the
respective  rights,  limitation of rights,  and  immunities of the Company,  the
Warrant Agent, and the holders of the Warrants; and

         WHEREAS,  all acts and things  have been done and  performed  which are
necessary  to make the  Warrants,  when  executed  on behalf of the  Company and
countersigned  by or on behalf of the Warrant  Agent,  as provided  herein,  the
valid,  binding and legal  obligations  of the  Company,  and to  authorize  the
execution and delivery of this Agreement.

         NOW,  THEREFORE,  in  consideration  of the  mutual  agreements  herein
contained, the parties hereto agree as follows:

<PAGE>

1.  APPOINTMENT OF WARRANT AGENT.  The Company hereby appoints the Warrant Agent
to act as agent for the Company for the  Warrants,  and the Warrant Agent hereby
accepts such  appointment  and agrees to perform the same in accordance with the
terms and conditions set forth in this Agreement.

2. WARRANTS.

         2.1. FORM OF WARRANT.  Each Warrant shall be issued in registered  form
only, shall be in substantially the form of Exhibit A hereto,  the provisions of
which are  incorporated  herein  and shall be signed  by, or bear the  facsimile
signature of, the Chairman of the Board or President and Treasurer, Secretary or
Assistant  Secretary of the Company and shall bear a facsimile of the  Company's
seal. In the event the person whose facsimile signature has been placed upon any
Warrant  shall have ceased to serve in the capacity in which such person  signed
the Warrant before such Warrant is issued, it may be issued with the same effect
as if he or she had not ceased to be such at the date of issuance.

         2.2. EFFECT OF COUNTERSIGNATURE.  Unless and until countersigned by the
Warrant Agent pursuant to this  Agreement,  a Warrant shall be invalid and of no
effect and may not be exercised by the holder thereof.

         2.3. REGISTRATION.

                  2.3.1.  WARRANT  REGISTER.  The Warrant  Agent shall  maintain
books ("Warrant  Register"),  for the registration of original  issuance and the
registration  of transfer  of the  Warrants.  Upon the  initial  issuance of the
Warrants,  the Warrant  Agent shall issue and register the Warrants in the names
of the  respective  holders  thereof  in such  denominations  and  otherwise  in
accordance with instructions delivered to the Warrant Agent by the Company.

                  2.3.2.   REGISTERED  HOLDER.  Prior  to  due  presentment  for
registration  of transfer of any Warrant,  the Company and the Warrant Agent may
deem and treat the person in whose name such Warrant  shall be  registered  upon
the  Warrant  Register  ("registered  holder"),  as the  absolute  owner of such
Warrant and of each Warrant represented thereby (notwithstanding any notation of
ownership or other writing on the Warrant  Certificate made by anyone other than
the Company or the Warrant Agent), for the purpose of any exercise thereof,  and
for all other  purposes,  and neither the Company nor the Warrant Agent shall be
affected by any notice to the contrary.

                                       2
<PAGE>

         2.4.  DETACHABILITY  OF WARRANTS.  The securities  comprising the Units
will not be separately  transferable  until 90 days after the date hereof unless
EBC informs the Company of its decision to allow earlier separate  trading,  but
in no event will EBC allow  separate  trading of the  securities  comprising the
Units until the  Company  files a Current  Report on Form 8-K which  includes an
audited  balance  sheet  reflecting  the  receipt  by the  Company  of the gross
proceeds of the Public Offering  including the proceeds  received by the Company
from  the  exercise  of  the   Underwriter's   over-allotment   option,  if  the
over-allotment option is exercised prior to the filing of the Form 8-K.

         2.5  WARRANTS  AND  REPRESENTATIVE'S   WARRANTS.  The  Representative's
Warrants  shall  have  the same  terms  and be in the  same  form as the  Public
Warrants  except with respect to the Warrant Price as set forth below in Section
3.1.

3.       TERMS AND EXERCISE OF WARRANTS

         3.1. WARRANT PRICE.  Each Public Warrant shall,  when  countersigned by
the  Warrant  Agent,  entitle  the  registered  holder  thereof,  subject to the
provisions  of such Public  Warrant and of this Warrant  Agreement,  to purchase
from the Company the number of shares of Common  Stock  stated  therein,  at the
price of $5.00 per whole share, subject to the adjustments provided in Section 4
hereof and in the last  sentence  of this  Section  3.1.  Each  Representative's
Warrant shall, when  countersigned by the Warrant Agent,  entitle the registered
holder thereof,  subject to the provisions of such Representative's  Warrant and
of this Warrant Agreement,  to purchase from the Company the number of shares of
Common Stock stated therein,  at the price of $____ per whole share,  subject to
the adjustments  provided in Section 4 hereof.  The term "Warrant Price" as used
in this  Warrant  Agreement  refers to the price per share at which Common Stock
may be  purchased  at the time a Warrant is  exercised.  The Company in its sole
discretion may lower the Warrant Price at any time prior to the Expiration Date.

         3.2.  DURATION OF WARRANTS.  A Warrant may be exercised only during the
period  ("Exercise  Period")  commencing on the later of (i) the consummation by
the Company of a merger,  capital stock  exchange,  asset  acquisition  or other
similar business combination  ("Business  Combination") (as described more fully
in  the  Company's  Registration  Statement)  and  (ii)  __________,  2006,  and
terminating  at 5:00  p.m.,  New York City time on the  earlier  to occur of (i)
___________,  2009 or (ii) the date  fixed for  redemption  of the  Warrants  as
provided in Section 6 of this Agreement ("Expiration Date"). Except with respect
to the  right to  receive  the  Redemption  Price  (as set  forth in  Section  6
hereunder),  each Warrant not exercised on or before the  Expiration  Date shall
become void, and all rights  thereunder and all rights in respect  thereof under
this Agreement shall cease at the close of business on the Expiration  Date. The

                                       3
<PAGE>

Company in its sole  discretion  may  extend the  duration  of the  Warrants  by
delaying the Expiration Date.

         3.3. EXERCISE OF WARRANTS.

                  3.3.1.  PAYMENT.  Subject to the provisions of the Warrant and
this Warrant Agreement,  a Warrant, when countersigned by the Warrant Agent, may
be exercised by the registered  holder thereof by surrendering it, at the office
of the Warrant Agent, or at the office of its successor as Warrant Agent, in the
Borough of Manhattan, City and State of New York, with the subscription form, as
set forth in the Warrant, duly executed,  and by paying in full, in lawful money
of the United States,  in cash,  good certified check or good bank draft payable
to the order of the  Company (or as  otherwise  agreed to by the  Company),  the
Warrant  Price for each full  share of Common  Stock as to which the  Warrant is
exercised and any and all applicable  taxes due in connection  with the exercise
of the  Warrant,  the  exchange  of the Warrant  for the Common  Stock,  and the
issuance  of the  Common  Stock;  provided,  however,  that with  respect to any
Warrants  purchased by the Company's initial  stockholders  during the six-month
period  following  separate  trading of the Warrants  included in the  Company's
Units,  in  the  event  of  redemption   pursuant  to  Section  6  hereof,  such
stockholders  may pay the Warrant Price by  surrendering  his or her Warrant for
that number of shares of Common Stock equal to the quotient obtained by dividing
(x) the product of the number of shares of Common Stock  underlying the Warrant,
multiplied  by the  difference  between the Warrant  Price and the "Fair  Market
Value"  (defined  below) by (y) the Fair Market  Value.  The "Fair Market Value"
shall mean the average  reported  last sale price of the Common Stock for the 10
trading days ending on the 3rd trading day prior to the date on which the notice
of redemption is sent to holders of Warrant pursuant to Section 6 hereof.

                  3.3.2. ISSUANCE OF CERTIFICATES.  As soon as practicable after
the  exercise of any Warrant  and the  clearance  of the funds in payment of the
Warrant Price, the Company shall issue to the registered  holder of such Warrant
a certificate or  certificates  for the number of full shares of Common Stock to
which he is  entitled,  registered  in such name or names as may be  directed by
him, her or it, and if such Warrant shall not have been exercised in full, a new
countersigned  Warrant for the number of shares as to which such  Warrant  shall
not have been exercised. Notwithstanding the foregoing, the Company shall not be
obligated to deliver any securities pursuant to the exercise of a Warrant unless
a  registration  statement  under the Act with  respect to the  Common  Stock is
effective.  Warrants  may not be  exercised  by, or  securities  issued  to, any
registered holder in any state in which such exercise would be unlawful.

                  3.3.3. VALID ISSUANCE.  All shares of Common Stock issued upon
the proper  exercise of a Warrant in  conformity  with this  Agreement  shall be
validly issued, fully paid and nonassessable.

                                       4
<PAGE>

                  3.3.4.  DATE OF  ISSUANCE.  Each person in whose name any such
certificate  for  shares of Common  Stock is issued  shall for all  purposes  be
deemed to have  become the holder of record of such  shares on the date on which
the  Warrant  was  surrendered  and  payment  of the  Warrant  Price  was  made,
irrespective  of the date of delivery of such  certificate,  except that, if the
date of such  surrender and payment is a date when the stock  transfer  books of
the Company are closed, such person shall be deemed to have become the holder of
such shares at the close of business  on the next  succeeding  date on which the
stock transfer books are open.

                  3.3.5. INTENTIONALLY OMITTED.

4. ADJUSTMENTS.

         4.1. STOCK DIVIDENDS - SPLIT-UPS. If after the date hereof, and subject
to the  provisions  of Section 4.6 below,  the number of  outstanding  shares of
Common Stock is increased by a stock dividend payable in shares of Common Stock,
or by a split-up of shares of Common Stock, or other similar event, then, on the
effective date of such stock dividend,  split-up or similar event, the number of
shares of Common Stock  issuable on exercise of each Warrant  shall be increased
in proportion to such increase in outstanding shares of Common Stock.

         4.2.  AGGREGATION OF SHARES.  If after the date hereof,  and subject to
the provisions of Section 4.6, the number of outstanding  shares of Common Stock
is  decreased  by  a   consolidation,   combination,   reverse  stock  split  or
reclassification  of shares of Common Stock or other similar event, then, on the
effective  date  of  such  consolidation,   combination,  reverse  stock  split,
reclassification or similar event, the number of shares of Common Stock issuable
on exercise of each Warrant shall be decreased in proportion to such decrease in
outstanding shares of Common Stock.

         4.3  ADJUSTMENTS  IN EXERCISE  PRICE.  Whenever the number of shares of
Common Stock  purchasable  upon the  exercise of the  Warrants is  adjusted,  as
provided in Section 4.1 and 4.2 above,  the Warrant  Price shall be adjusted (to
the nearest cent) by multiplying  such Warrant Price  immediately  prior to such
adjustment  by a  fraction  (x) the  numerator  of which  shall be the number of
shares of Common Stock purchasable upon the exercise of the Warrants immediately
prior to such  adjustment,  and (y) the denominator of which shall be the number
of shares of Common Stock so purchasable immediately thereafter.

         4.4. REPLACEMENT OF SECURITIES UPON REORGANIZATION, ETC. In case of any
reclassification or

                                       5
<PAGE>

reorganization  of the  outstanding  shares of Common Stock (other than a change
covered by Section  4.1 or 4.2 hereof or that  solely  affects  the par value of
such shares of Common Stock),  or in the case of any merger or  consolidation of
the Company  with or into another  corporation  (other than a  consolidation  or
merger in which the  Company  is the  continuing  corporation  and that does not
result in any  reclassification  or reorganization of the outstanding  shares of
Common Stock),  or in the case of any sale or conveyance to another  corporation
or entity of the  assets or other  property  of the  Company as an  entirety  or
substantially  as an entirety in connection with which the Company is dissolved,
the Warrant  holders  shall  thereafter  have the right to purchase and receive,
upon the basis and upon the terms and  conditions  specified in the Warrants and
in lieu of the shares of Common  Stock of the  Company  immediately  theretofore
purchasable and receivable upon the exercise of the rights represented  thereby,
the  kind and  amount  of  shares  of stock  or  other  securities  or  property
(including cash) receivable upon such reclassification,  reorganization,  merger
or  consolidation,  or upon a  dissolution  following any such sale or transfer,
that the Warrant holder would have received if such Warrant holder had exercised
his,  her  or  its  Warrant(s)  immediately  prior  to  such  event;  and if any
reclassification  also results in a change in shares of Common Stock  covered by
Section 4.1 or 4.2, then such adjustment shall be made pursuant to Sections 4.1,
4.2,  4.3 and this  Section  4.4.  The  provisions  of this  Section  4.4  shall
similarly  apply to successive  reclassifications,  reorganizations,  mergers or
consolidations, sales or other transfers.

         4.5.  NOTICES OF  CHANGES IN  WARRANT.  Upon  every  adjustment  of the
Warrant Price or the number of shares  issuable upon exercise of a Warrant,  the
Company shall give written  notice  thereof to the Warrant  Agent,  which notice
shall state the Warrant Price resulting from such adjustment and the increase or
decrease,  if any,  in the number of shares  purchasable  at such price upon the
exercise  of a  Warrant,  setting  forth in  reasonable  detail  the  method  of
calculation  and the facts  upon  which  such  calculation  is  based.  Upon the
occurrence of any event specified in Sections 4.1, 4.2, 4.3 or 4.4, then, in any
such event, the Company shall give written notice to each Warrant holder, at the
last  address set forth for such holder in the warrant  register,  of the record
date or the  effective  date of the event.  Failure to give such notice,  or any
defect therein, shall not affect the legality or validity of such event.

         4.6. NO FRACTIONAL SHARES.  Notwithstanding  any provision contained in
this Warrant  Agreement to the contrary,  the Company shall not issue fractional
shares upon exercise of Warrants.  If, by reason of any adjustment made pursuant
to this  Section  4, the  holder  of any  Warrant  would be  entitled,  upon the
exercise of such  Warrant,  to receive a  fractional  interest  in a share,  the
Company  shall,  upon such  exercise,  round up to the nearest  whole number the
number of the shares of Common Stock to be issued to the Warrant holder.

                                       6
<PAGE>

         4.7. FORM OF WARRANT.  The form of Warrant need not be changed  because
of any  adjustment  pursuant to this Section 4, and  Warrants  issued after such
adjustment  may state the same Warrant Price and the same number of shares as is
stated in the Warrants initially issued pursuant to this Agreement. However, the
Company  may at any time in its sole  discretion  make any change in the form of
Warrant  that the  Company  may deem  appropriate  and that does not  affect the
substance thereof,  and any Warrant thereafter issued or countersigned,  whether
in exchange or substitution for an outstanding  Warrant or otherwise,  may be in
the form as so changed.

5.       TRANSFER AND EXCHANGE OF WARRANTS.

         5.1.  REGISTRATION  OF TRANSFER.  The Warrant Agent shall  register the
transfer,  from  time to time,  of any  outstanding  Warrant  upon  the  Warrant
Register,  upon surrender of such Warrant for transfer,  properly  endorsed with
signatures properly  guaranteed and accompanied by appropriate  instructions for
transfer.  Upon any such transfer, a new Warrant representing an equal aggregate
number of Warrants shall be issued and the old Warrant shall be cancelled by the
Warrant Agent. The Warrants so cancelled shall be delivered by the Warrant Agent
to the Company from time to time upon request.

         5.2.  PROCEDURE FOR SURRENDER OF WARRANTS.  Warrants may be surrendered
to the Warrant Agent,  together with a written request for exchange or transfer,
and thereupon the Warrant Agent shall issue in exchange therefor one or more new
Warrants as requested by the registered  holder of the Warrants so  surrendered,
representing an equal aggregate number of Warrants;  provided,  however, that in
the event that a Warrant  surrendered  for transfer bears a restrictive  legend,
the  Warrant  Agent  shall not cancel  such  Warrant  and issue new  Warrants in
exchange therefor until the Warrant Agent has received an opinion of counsel for
the Company  stating that such transfer may be made and  indicating  whether the
new Warrants must also bear a restrictive legend.

         5.3.  FRACTIONAL  WARRANTS.  The Warrant Agent shall not be required to
effect any  registration  of  transfer  or  exchange  which  will  result in the
issuance of a warrant certificate for a fraction of a warrant.

         5.4. SERVICE CHARGES.  No service charge shall be made for any exchange
or registration of transfer of Warrants.

         5.5.  WARRANT  EXECUTION  AND  COUNTERSIGNATURE.  The Warrant  Agent is
hereby authorized to countersign and to deliver, in accordance with the terms of
this Agreement, the Warrants required to be issued pursuant to the provisions of
this Section 5, and the Company,  whenever  required by the Warrant

                                       7
<PAGE>

Agent,  will supply the Warrant  Agent with  Warrants duly executed on behalf of
the Company for such purpose.

6. REDEMPTION.

         6.1.  REDEMPTION.  Subject to Section 6.4 hereof,  not less than all of
the  outstanding  Warrants may be redeemed,  at the option of the Company,  upon
prior  consent of EBC,  at any time after they become  exercisable  and prior to
their  expiration,  at the office of the Warrant Agent, upon the notice referred
to in  Section  6.2.,  at the price of $.01 per  Warrant  ("Redemption  Price"),
provided  that the last sales price of the Common  Stock has been at least $8.50
per share,  on each of twenty (20)  trading  days within any thirty (30) trading
day period ending on the third business day prior to the date on which notice of
redemption  is given.  The  provisions  of this Section 6.1 may not be modified,
amended or deleted without the prior written consent of EBC.

         6.2.  DATE FIXED  FOR,  AND  NOTICE  OF,  REDEMPTION.  In the event the
Company shall elect to redeem all of the Warrants,  the Company shall fix a date
for the  redemption.  Notice of redemption  shall be mailed by first class mail,
postage  prepaid,  by the  Company not less than 30 days prior to the date fixed
for redemption to the registered holders of the Warrants to be redeemed at their
last addresses as they shall appear on the registration books. Any notice mailed
in the manner herein provided shall be  conclusively  presumed to have been duly
given whether or not the registered holder received such notice.

         6.3.  EXERCISE  AFTER  NOTICE  OF  REDEMPTION.   The  Warrants  may  be
exercised,  for cash (or on a "cashless  basis" in accordance  with Section 3 of
this Agreement with respect to any of the Company's initial stockholders) at any
time after notice of redemption shall have been given by the Company pursuant to
Section 6.2. hereof and prior to the time and date fixed for redemption.  On and
after the  redemption  date,  the record  holder of the  Warrants  shall have no
further rights except to receive, upon surrender of the Warrants, the Redemption
Price.

         6.4  OUTSTANDING  WARRANTS  ONLY.  The  Company  understands  that  the
redemption  rights  provided  for by this  Section 6 apply  only to  outstanding
Warrants.  To the  extent a person  holds  rights  to  purchase  Warrants,  such
purchase  rights shall not be  extinguished  by redemption.  However,  once such
purchase  rights are exercised,  the Company may redeem the Warrants issued upon
such exercise  provided that the criteria for  redemption is met. The provisions
of this  Section 6.4 may not be modified,  amended or deleted  without the prior
written consent of EBC.

                                       8
<PAGE>

7. OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS OF WARRANTS.

         7.1.  NO  RIGHTS  AS  STOCKHOLDER.  A  Warrant  does  not  entitle  the
registered  holder thereof to any of the rights of a stockholder of the Company,
including,  without  limitation,  the  right  to  receive  dividends,  or  other
distributions,  exercise  any  preemptive  rights  to vote or to  consent  or to
receive notice as stockholders in respect of the meetings of stockholders or the
election of directors of the Company or any other matter.

         7.2. LOST, STOLEN,  MUTILATED, OR DESTROYED WARRANTS. If any Warrant is
lost, stolen,  mutilated, or destroyed, the Company and the Warrant Agent may on
such terms as to indemnity or otherwise as they may in their  discretion  impose
(which  shall,  in the  case  of a  mutilated  Warrant,  include  the  surrender
thereof),  issue a new  Warrant  of like  denomination,  tenor,  and date as the
Warrant so lost,  stolen,  mutilated,  or destroyed.  Any such new Warrant shall
constitute a substitute  contractual  obligation of the Company,  whether or not
the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any time
enforceable by anyone.

         7.3.  RESERVATION  OF  COMMON  STOCK.  The  Company  shall at all times
reserve and keep  available a number of its  authorized  but unissued  shares of
Common  Stock  that will be  sufficient  to permit the  exercise  in full of all
outstanding Warrants issued pursuant to this Agreement.

         7.4. REGISTRATION OF COMMON STOCK. The Company agrees that prior to the
commencement  of the  Exercise  Period,  it shall file with the  Securities  and
Exchange Commission a post-effective amendment to the Registration Statement, or
a new registration  statement,  for the registration,  under the Act, of, and it
shall take such action as is necessary  to qualify for sale,  in those states in
which the  Warrants  were  initially  offered by the  Company,  the Common Stock
issuable upon exercise of the Warrants. In either case, the Company will use its
best  efforts  to  cause  the  same to  become  effective  and to  maintain  the
effectiveness  of  such  registration  statement  until  the  expiration  of the
Warrants in accordance with the provisions of this Agreement.  The provisions of
this  Section  7.4 may not be  modified,  amended or deleted  without  the prior
written consent of EBC.

                                       9
<PAGE>

8. CONCERNING THE WARRANT AGENT AND OTHER MATTERS.

         8.1.  PAYMENT OF TAXES. The Company will from time to time promptly pay
all taxes and charges that may be imposed upon the Company or the Warrant  Agent
in  respect  of the  issuance  or  delivery  of shares of Common  Stock upon the
exercise of Warrants, but the Company shall not be obligated to pay any transfer
taxes in respect of the Warrants or such shares.

         8.2. RESIGNATION, CONSOLIDATION, OR MERGER OF WARRANT AGENT.

                  8.2.1.  APPOINTMENT OF SUCCESSOR  WARRANT  AGENT.  The Warrant
Agent, or any successor to it hereafter appointed,  may resign its duties and be
discharged from all further duties and liabilities  hereunder after giving sixty
(60) days' notice in writing to the Company.  If the office of the Warrant Agent
becomes  vacant by  resignation  or incapacity to act or otherwise,  the Company
shall  appoint  in writing a  successor  Warrant  Agent in place of the  Warrant
Agent. If the Company shall fail to make such appointment  within a period of 30
days after it has been notified in writing of such  resignation or incapacity by
the Warrant Agent or by the holder of the Warrant (who shall,  with such notice,
submit  his  Warrant  for  inspection  by the  Company),  then the holder of any
Warrant may apply to the  Supreme  Court of the State of New York for the County
of New York for the  appointment  of a successor  Warrant Agent at the Company's
cost. Any successor  Warrant Agent,  whether appointed by the Company or by such
court, shall be a corporation organized and existing under the laws of the State
of New York, in good standing and having its principal  office in the Borough of
Manhattan,  City and  State of New  York,  and  authorized  under  such  laws to
exercise  corporate  trust powers and subject to  supervision  or examination by
federal or state authority. After appointment, any successor Warrant Agent shall
be vested  with all the  authority,  powers,  rights,  immunities,  duties,  and
obligations of its  predecessor  Warrant Agent with like effect as if originally
named as Warrant Agent  hereunder,  without any further act or deed;  but if for
any reason it becomes  necessary or appropriate,  the predecessor  Warrant Agent
shall  execute  and  deliver,  at the  expense  of the  Company,  an  instrument
transferring  to such  successor  Warrant Agent all the authority,  powers,  and
rights of such  predecessor  Warrant  Agent  hereunder;  and upon request of any
successor  Warrant  Agent the Company  shall  make,  execute,  acknowledge,  and
deliver  any and all  instruments  in  writing  for more  fully and  effectually
vesting in and  confirming to such successor  Warrant Agent all such  authority,
powers, rights, immunities, duties, and obligations.

                  8.2.2.  NOTICE  OF  SUCCESSOR  WARRANT  AGENT.  In the event a
successor  Warrant  Agent  shall be  appointed,  the  Company  shall give notice
thereof to the  predecessor  Warrant Agent and the transfer agent for the Common
Stock not later than the effective date of any such appointment.

                                       10
<PAGE>

                  8.2.3.   MERGER  OR   CONSOLIDATION   OF  WARRANT  AGENT.  Any
corporation  into which the Warrant  Agent may be merged or with which it may be
consolidated or any corporation  resulting from any merger or  consolidation  to
which the Warrant  Agent shall be a party shall be the  successor  Warrant Agent
under this Agreement without any further act.

         8.3. FEES AND EXPENSES OF WARRANT AGENT.

                  8.3.1.  REMUNERATION.  The  Company  agrees to pay the Warrant
Agent  reasonable  remuneration for its services as such Warrant Agent hereunder
and will reimburse the Warrant Agent upon demand for all  expenditures  that the
Warrant Agent may reasonably incur in the execution of its duties hereunder.

                  8.3.2.  FURTHER  ASSURANCES.  The  Company  agrees to perform,
execute,   acknowledge,  and  deliver  or  cause  to  be  performed,   executed,
acknowledged,  and delivered all such further and other acts,  instruments,  and
assurances  as may  reasonably be required by the Warrant Agent for the carrying
out or performing of the provisions of this Agreement.

         8.4. LIABILITY OF WARRANT AGENT.

                  8.4.1.   RELIANCE  ON  COMPANY  STATEMENT.   Whenever  in  the
performance of its duties under this Warrant Agreement,  the Warrant Agent shall
deem it necessary or desirable  that any fact or matter be proved or established
by the Company prior to taking or suffering any action  hereunder,  such fact or
matter  (unless  other  evidence  in  respect  thereof  be  herein  specifically
prescribed)  may be  deemed  to be  conclusively  proved  and  established  by a
statement  signed by the  President  or Chairman of the Board of the Company and
delivered to the Warrant  Agent.  The Warrant Agent may rely upon such statement
for any action taken or suffered in good faith by it pursuant to the  provisions
of this Agreement.

                  8.4.2. INDEMNITY.  The Warrant Agent shall be liable hereunder
only for its own negligence, willful misconduct or bad faith. The Company agrees
to  indemnify  the  Warrant  Agent  and  save it  harmless  against  any and all
liabilities,  including  judgments,  costs  and  reasonable  counsel  fees,  for
anything done or omitted by the Warrant Agent in the execution of this Agreement
except as a result of the Warrant Agent's negligence, willful misconduct, or bad
faith.

                                       11
<PAGE>

                  8.4.3.   EXCLUSIONS.   The   Warrant   Agent   shall  have  no
responsibility with respect to the validity of this Agreement or with respect to
the validity or execution of any Warrant (except its countersignature  thereof);
nor shall it be  responsible  for any breach by the  Company of any  covenant or
condition  contained  in this  Agreement  or in any  Warrant;  nor  shall  it be
responsible to make any  adjustments  required under the provisions of Section 4
hereof or responsible for the manner,  method,  or amount of any such adjustment
or the  ascertaining  of the  existence  of facts  that would  require  any such
adjustment;   nor  shall  it  by  any  act  hereunder  be  deemed  to  make  any
representation  or warranty as to the authorization or reservation of any shares
of Common Stock to be issued  pursuant to this Agreement or any Warrant or as to
whether any shares of Common  Stock will when issued be valid and fully paid and
nonassessable.

         8.5.  ACCEPTANCE OF AGENCY. The Warrant Agent hereby accepts the agency
established  by this Agreement and agrees to perform the same upon the terms and
conditions  herein set forth and among other things,  shall account  promptly to
the Company with respect to Warrants exercised and concurrently account for, and
pay to the Company, all moneys received by the Warrant Agent for the purchase of
shares of Common Stock through the exercise of Warrants.

9.       MISCELLANEOUS PROVISIONS.

         9.1. SUCCESSORS.  All the covenants and provisions of this Agreement by
or for the benefit of the  Company or the Warrant  Agent shall bind and inure to
the benefit of their respective successors and assigns.

         9.2.  NOTICES.  Any  notice,  statement  or demand  authorized  by this
Warrant  Agreement to be given or made by the Warrant  Agent or by the holder of
any Warrant to or on the Company shall be  sufficiently  given when so delivered
if by hand or overnight delivery or if sent by certified mail or private courier
service  within  five  days  after  deposit  of such  notice,  postage  prepaid,
addressed  (until  another  address is filed in writing by the Company  with the
Warrant Agent), as follows:

                           Israel Technology Acquisition Corp.
                           23 Karlibach St.
                           Tel Aviv 67132
                           Israel
                           Attn: Chairman

Any notice, statement or demand authorized by this Agreement to be given or made
by the holder of any Warrant or by the Company to or on the Warrant  Agent shall
be sufficiently  given when so delivered if by hand or overnight  delivery or if
sent by certified mail or private courier service within five days after deposit

                                       12
<PAGE>

of such notice,  postage  prepaid,  addressed (until another address is filed in
writing by the Warrant Agent with the Company), as follows:

                           Continental Stock Transfer & Trust Company
                           17 Battery Place
                           New York, New York 10004
                           Attn: Compliance Department

with a copy in each case to:

                           Kramer Levin Naftalis & Frankel LLP
                           1177 Avenue of the Americas
                           New York, New York 10036
                           Attn: Richard Gilden, Esq.

and

                           Graubard Miller
                           The Chrysler Building
                           405 Lexington Avenue
                           New York, New York 10174
                           Attn: David Alan Miller, Esq.

and

                           EarlyBirdCapital, Inc.
                           275 Madison Avenue, Suite 1203
                           New York, New York 10016
                           Attn: Steven Levine

         9.3. APPLICABLE LAW. The validity,  interpretation,  and performance of
this Agreement and of the Warrants shall be governed in all respects by the laws
of the State of New York,  without  giving effect to conflicts of law principles
that  would  result  in the  application  of the  substantive  laws  of  another
jurisdiction.  The Company  hereby  agrees that any action,  proceeding or claim
against it arising  out of or  relating  in any way to this  Agreement  shall be
brought and enforced in the courts of the State of New York or the United States
District Court for the Southern District of New York, and irrevocably submits to
such jurisdiction,  which  jurisdiction  shall be exclusive.  The Company hereby
waives  any  objection  to such  exclusive  jurisdiction  and that  such  courts
represent an inconvenience  forum. Any such process or summons to be served upon
the  Company  may be served by  transmitting  a copy  thereof by  registered  or
certified mail, return receipt  requested,  postage prepaid,  addressed to it at
the  address  set forth in Section  9.2  hereof.  Such  mailing  shall be deemed
personal  service and shall be legal and binding upon the

                                       13
<PAGE>

Company in any action, proceeding or claim.

         9.4.  PERSONS  HAVING  RIGHTS  UNDER  THIS  AGREEMENT.  Nothing in this
Agreement  expressed and nothing that may be implied from any of the  provisions
hereof is  intended,  or shall be  construed,  to confer  upon,  or give to, any
person or corporation  other than the parties hereto and the registered  holders
of the Warrants  and, for the purposes of Sections 6.1, 6.4, 7.4 and 9.2 hereof,
EBC, any right, remedy, or claim under or by reason of this Warrant Agreement or
of any covenant, condition, stipulation, promise, or agreement hereof. EBC shall
be deemed to be a  third-party  beneficiary  of this  Agreement  with respect to
Sections 6.1, 6.4, 7.4 and 9.2 hereof. All covenants, conditions,  stipulations,
promises,  and agreements  contained in this Warrant  Agreement shall be for the
sole and  exclusive  benefit of the parties  hereto (and EBC with respect to the
Sections 6.1, 6.4, 7.4 and 9.2 hereof) and their  successors  and assigns and of
the registered holders of the Warrants.

         9.5.  EXAMINATION  OF THE WARRANT  AGREEMENT.  A copy of this Agreement
shall be available at all reasonable times at the office of the Warrant Agent in
the Borough of  Manhattan,  City and State of New York,  for  inspection  by the
registered holder of any Warrant.  The Warrant Agent may require any such holder
to submit his Warrant for inspection by it.

         9.6.  COUNTERPARTS.  This  Agreement  may be  executed in any number of
counterparts and each of such  counterparts  shall for all purposes be deemed to
be an original,  and all such counterparts shall together constitute but one and
the same instrument.

         9.7.  EFFECT  OF  HEADINGS.   The  Section   headings  herein  are  for
convenience only and are not part of this Warrant Agreement and shall not affect
the interpretation thereof.

                                       14
<PAGE>

         IN  WITNESS  WHEREOF,  this  Agreement  has been duly  executed  by the
parties hereto as of the day and year first above written.

Attest:                                      ISRAEL TECHNOLOGY ACQUISITION CORP.

__________________                           By:  ______________________________
                                                  Name:  Israel Frieder
                                                  Title: Chief Executive Officer

Attest:                                      CONTINENTAL STOCK TRANSFER
                                              & TRUST COMPANY

__________________                           By:  ______________________________
                                                  Name:  Steven Nelson
                                                  Title: Chairman

                                       15EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT
                              --------------------

      THIS AGREEMENT (the  "Agreement") is entered into by and between  AMERICAN
PALLET  LEASING,  INC.,  a Delaware  corporation  ("Company")  and BYRON  HUDSON
("Employee").

                                R E C I T A L S:

      WHEREAS,  Company  is  engaged  in  the  APL  is a  vertically  integrated
manufacturer  and  logistical  supplier  of  pallets.   APL  is  engaged  in  an
acquisition roll up of strategically  located wood pallet  manufacturers and saw
(lumber) mills; and

      WHEREAS,  Employee is  experienced  as a  controller  and chief  financial
officer of public companies;

      WHEREAS,  the Company and Employee  desire  Employee to perform his duties
pursuant to the terms hereof;

      NOW  THEREFORE,  for and in  consideration  of the mutual  advantages  and
benefits  accruing  respectively  to the  parties  hereto,  the mutual  promises
hereinafter made and the acts to be performed by the respective  parties hereto,
the Company and the Employee do hereby contract and agree as follows:

      1.    EMPLOYMENT.  The Company hereby employs  Employee as Chief Financial
Officer,  and Employee  hereby accepts such employment and agrees to perform the
duties and render services as herein set forth.

      2.    TERM.  Except  in  the  case  of  earlier  termination,   Employee's
employment with the Company  pursuant to this Agreement shall be for a period of
five (5) years beginning as of September 22, 2004 and ending  September 21, 2009
("Termination  Date"),  unless  renewed or extended by mutual  agreement  of the
parties as herein provided.

EMPLOYMENT AGREEMENT * BYRON HUDSON                                            1
<PAGE>

      3.    COMPENSATION.

            [a]   BASE  COMPENSATION.  As base  compensation for the services of
Employee  during the term hereof,  the Company  shall pay the Employee an annual
salary in accordance with the schedule below.  However, the Company reserves the
right to pay  Employee  an annual  salary  that is greater  than  shown  herein,
subject solely to the discretion and determination of the Compensation Committee
of the Company's Board of Directors. In no event shall be less than $150,000 per
year commencing  September 22, 2004, and shall be increased on the dates of this
Agreement as shown below, which in no event shall be less than the following:

October 1, 2005     $240,000
October 1, 2006     $360,000
October 1, 2007     $600,000
October 1, 2008     $600,000 or more at the discretion of the Board of Directors
October 1, 2009     $600,000 or more at the discretion of the Board of Directors

      Employee's  salary  hereunder  shall  be  paid in  bi-weekly  installments
(subject to reduction  for such  payroll and  withholding  deductions  as may be
required by law).

      Employee  shall  also be  compensated  with:  (i)  health  and  disability
insurance  coverage  at the  Company's  expense  with  coverage to be in amounts
determined  from time to time by the  Compensation  Committee  of the  Company's
Board of Directors;  (ii) health insurance coverage at the Company's expense for
Employee's  spouse  and  dependents;  (iii)  the  right to all  fringe  benefits
generally made available to other  Employees of the Company,  and (iv) the right
to participate in retirement plans implemented by the Company.

      In  addition  to the  foregoing,  Employee  shall be entitled to a minimum
annual  vacation  leave of four (4) weeks per year with full pay which shall not
be accumulated and carried forward from year to year if not used.

EMPLOYMENT AGREEMENT * BYRON HUDSON                                            2
<PAGE>

            [b]   PERFORMANCE  BONUS  COMPENSATION  (CASH).  Employee  shall  be
entitled to (a) receive cash quarterly bonuses(1) for each immediately preceding
three month period in an amount to be determined  in the sole  discretion of the
Compensation  Committee  of  the  Board  of  Directors  (the  "Committee").  The
Committee will utilize the following  criteria in their assessment of Employee's
performance  and  determination  of that  quarter's  cash  bonus:  [1]  that the
Company's  10Q's and 10K are  filed on a timely  basis;  [2] that the  Company's
certified  financial   statements  are  issued  on  a  timely  basis;  [3]  that
acquisitions are completed on a timely basis;  [4] that the financial  reporting
and  accounting  functions  are  directed  and  executed  well and; [5] whatever
additional  performance criteria the Committee determines in its sole discretion
is  appropriate.  The quarterly  bonuses,  if due, shall be paid no more than 60
days  following the end of the preceding  quarter.  Beginning the 3rd quarter of
fiscal year 2005 (July 1, 2005 thru  September  30, 2005)  Employee's  quarterly
bonus will not be less than 50% of that  quarter's  salary as defined in Section
3.[a].

            [c]   PERFORMANCE  BONUS  COMPENSATION  (SHARES).   Subject  to  the
Committee's  sole  discretion,  Employee  shall be issued  annually  warrants to
purchase the  Company's  common shares equal to 0.25% of the total fully diluted
common shares issued and outstanding at the end of that respective  fiscal year.
The warrants  will have a term of five years and an exercise  price equal to the
closing  bid price of the  shares on the last  trading  day for that  respective
fiscal year end (e.g.  December 31).  These  warrants will be cashless  exchange
warrants. Employee will be entitled to this warrant award for every year of this
Employment  Agreement.  The shares will be issued by January 31 of the following
year. The shares will vest at the rate of 50% immediately

--------

(1)   The  purpose  of the  performance  plan is to promote  the  success of the
Company by providing performance incentives in a manner that preserves,  for tax
purposes,  the  Company's  ability  to  deduct  that  compensation.  The plan is
structured to satisfy the requirements for performance-based compensation within
the  meaning of Section  162(m) of the  Internal  Revenue  Code and  related IRS
regulations.  Section  162(m)  requires that the certain  material  terms of the
plan, including the eligibility,  business criteria and maximum amounts payable,
be approved by the Company's shareholders. The plan permits awards to be paid in
cash, shares, restricted stock and/or restricted stock units.

EMPLOYMENT AGREEMENT * BYRON HUDSON                                            3
<PAGE>

upon issuance and 50% one year  subsequent to issuance.  Should the Company fail
to achieve the performance  targets,  no restricted  shares will be issued under
this Performance Bonus Compensation  section.  The performance targets which are
based upon Net Income Before Taxes as defined by Generally  Accepted  Accounting
Principles for the following fiscal years are as follows:

         2005 - $5 million
         2006 - $25 million
         2007 - $50 million
         2008 - $100 million
         2009 - $200 million

The Compensation  Committee has the authority to adjust the performance  targets
on an annual basis in order to qualify for IRC Section 162(m) and may provide at
the time  the  performance  targets  are  established  that one or more of these
adjustments will not be made as to a specific award or awards. In addition,  the
Compensation  Committee may determine at the time the goals are established that
other  adjustments  will  be made  under  the  selected  business  criteria  and
applicable performance targets to take into account, in whole or in part, in any
manner  specified  by  the  Compensation  Committee,  any  one  or  more  of the
following:  (a) gain or loss from all or certain  claims and/or  litigation  and
insurance  recoveries,  (b) the impact of  impairment  of tangible or intangible
assets, (c) restructuring  activities  reported in the Company's public filings,
and (d) the  impact of  investments  or  acquisitions.  Each of the  adjustments
described in this  paragraph may relate to the Company as a whole or any part of
the  Company's  business  or  operations,  as  determined  by  the  Compensation
Committee at the time the performance  targets are established.  The adjustments
are to be determined in accordance with generally accepted accounting principles
and standards,  unless another  objective method of measurement is designated by
the Compensation  Committee.  Finally,  adjustments will be made as necessary to
any  business  criteria  related to the  Company's  stock to reflect  changes in
corporate capitalization, such as stock splits and certain reorganizations.

EMPLOYMENT AGREEMENT * BYRON HUDSON                                            4
<PAGE>

      [d]   COMMENCEMENT  BONUS - RESTRICTED  SHARE AWARD.  Immediately upon the
effective  date of this  Employment  Agreement,  Employee shall be issued 90,909
restricted  common shares of the Company (the  "Restricted  Share  Award").  The
Restricted  Shares  shall vest 100% upon  issuance.  The shares of Common  Stock
issued as a Commencement  Bonus,  therefore,  constitute  payment for Employee's
agreement   to  be   employed   by  the   Company   and   is  a   nonrefundable,
non-apportionable,  and non-ratable award; such shares of common stock are not a
prepayment  for  future  services.  If the  Company  decides to  terminate  this
Agreement  after  entered  into for any  reason  whatsoever,  it is  agreed  and
understood  that  Employee  will not be  requested or demanded by the Company to
return any of the shares of Restricted Share Award paid as a Commencement  Bonus
hereunder.  Further,  if and in the event the Company is acquired in whole or in
part,  during the term of this Agreement,  it is agreed and understood  Employee
will not be  requested or demanded by the Company to return any of the shares of
Common  Stock  paid to it  hereunder.  Since  these  shares are  restricted  and
unregistered,  for  determination of the compensation  value of the bonus to the
employee,  the Company  shall use the  opening day asking  price for such shares
discounted by 35% for lack of marketability.

      4.    DUTIES AND  SERVICES.  During the term of this  Agreement,  Employee
agrees to (a) do his  utmost to  enhance  and  develop  the best  interests  and
welfare  of the  Company,  (b) give his best  efforts  and employ his top skills
toward  advancing and  promoting the growth and success of the Company,  and (c)
perform  such duties or render such  services as the Board of  Directors  of the
Company may, from time to time, reasonably confer or impose upon Employee.

      Employee shall devote his entire productive time, ability,  attention, and
energies to the business of the Company  during the term of this  Agreement  and
shall not directly or indirectly  render any services of a business,  commercial
or professional  nature to any other person or organization,  whether or not for
compensation, without the prior written consent of the Board of Directors of the
Company.

EMPLOYMENT AGREEMENT * BYRON HUDSON                                            5
<PAGE>

      5.    TERMINATION. In the event of termination of Employee's employment by
the Company in a manner that is a breach of the agreement or  termination by him
for  "good  reason"  as  described  below,   Employee  is  entitled  to  receive
post-termination  annual  bonuses for the full  remaining term of the employment
agreement and the 24-month period thereafter.  Each such post-termination  bonus
would  be in the  amount  of the  highest  bonus  in and of the  years  prior to
termination.  In the event of  termination of employment as a result of death or
disability  or upon  normal  termination  of the  agreement  in  December  2008,
Employee will receive such bonuses for the fiscal year in which the  termination
occurs and for the 24 months following such fiscal year.

            [a]   The Company may terminate  Employee's  employment  pursuant to
this Agreement at any time for "cause" as herein defined. The term "cause" shall
mean any of the  following  events:  (i)  engaging  in  activities  in direct or
indirect  competition  with  the  Company,  including  but  not  limited  to any
violation of the  Non-Competition  and  Non-Solicitation  Agreement contained in
Paragraph  10 of this  Agreement,  (ii)  committing  acts of  gross  negligence,
willful  misconduct,  malfeasance or resignation without approval of the Company
(iii)  demonstration  of any acts of dishonesty or theft on the part of Employee
which,  in the opinion of the Board of Directors of the Company,  is detrimental
to the  best  interests  of the  Company,  and  (iv)  intentional  and  material
violation by Employee of any written policy adopted by the Board of Directors of
the  Company  which is not  corrected  within  ten (10) days  after  receipt  by
Employee of a detailed  written  explanation  from the Board of Directors of the
Company, or (vi) death or incapacity of Employee.

            [b]   "Incapacity,"  as that  term is  used  in  paragraph  5(a)(vi)
above,  shall be defined as an incapacity,  whether by an accident,  sickness or
otherwise, which renders Employee mentally or physically incapable of performing
the services  required pursuant to this Agreement,  and such incapacity,  in the
opinion of a mutually agreeable physician,  is expected to continue for a period
of twelve (12) months.

EMPLOYMENT AGREEMENT * BYRON HUDSON                                            6
<PAGE>

            [c]   The Company may terminate Employee at any time during the term
of this  Agreement if a majority of all of the members of the Board of Directors
of the  Company  determines  that such  action is in the best  interests  of the
Company.

      6.    SEVERANCE AND OTHER PAYMENTS.

            a.    If  Employee's   employment  pursuant  to  this  Agreement  is
terminated for "cause" (as herein  defined),  the Company shall not be obligated
to pay or provide any severance compensation or benefits to Employee,  except as
stated in 6(b) below.

            b.    If Employee becomes  incapacitated  (as herein defined) during
the term of this  Agreement  because of  sickness,  injury or physical or mental
disability,  the Company  agrees  that,  from the date of the  determination  of
incapacity  and  continuing  for a period of twenty four (24) months the Company
shall pay to Employee  for the first  twelve (12) months of  incapacitation  one
hundred percent (100%) of Employee's  salary otherwise payable as of the date of
the  determination  of  disability.  During the  second  twelve  (12)  months of
incapacitation,  the  Company  shall pay to  Employee  eighty  percent  (80%) of
Employee's  salary  otherwise  payable  as of the date of the  determination  of
disability. Company may obtain disability insurance coverage to discharge all or
part of its responsibility to Employee under this paragraph and if such coverage
provides for monthly  payments equal to or greater than those  provided  herein,
Employee shall be entitled to such amount.

            c.    If Employee's  employment with the Company is terminated under
Paragraph  5(c) of this  Agreement  or the Company  elects not to  continue  the
Agreement  under  Paragraph 2 above,  the  Company  agrees to pay to Employee an
amount equal to one and one-half of Employee's  then current  annual base salary
(or, if this  Agreement  has  expired,  an amount  equal to one and  one-half of
employee's  annual base  salary on the last  effective  day of this  Agreement's
term) plus one and one half of Employee's  immediately preceding year's bonus as
of the date of Employee's  termination  ("Severance  Payment").  Such  Severance
Payment  shall only

EMPLOYMENT AGREEMENT * BYRON HUDSON                                            7
<PAGE>

be owed to  Employee  and  paid by the  Company  following  the  execution  of a
mutually agreeable  severance agreement by Employee and the Company. At its sole
option,  the Company may elect to make any such Severance Payment to Employee in
six equal monthly installments.  In addition to the foregoing Severance Payment,
Employee may continue to participate in the Company's group health plan, if any,
then in effect,  at no cost to the  Company,  for the term of this  Agreement or
such lesser period as may be limited by applicable law or regulation.

      7.    QUALIFICATION  FOR SURETY BOND.  If  requested,  Employee  agrees to
furnish all  information and take any other steps necessary to enable Company to
obtain a  fidelity  bond  conditioned  on the  rendering  of a true  account  by
Employee of all money,  goods, or other property that may come into the custody,
charge, or possession of Employee,  during the term of employment.  All premiums
on the surety bond are to be paid by Company.

      8.    TRAVEL AND ENTERTAINMENT. Employee is authorized to incur reasonable
business expenses on behalf of the Company as determined by the Company's budget
pre-approved by the Board of Directors of the Company, including, but not by way
of limitation, expenditures for entertainment, gifts and travel

      9.    AUTOMOBILE  ALLOWANCE.  The Company  will provide  Employee  with an
automobile  allowance of $1,000 per month throughout the term of this Agreement.
The  automobile  allowance  may be  used,  at  the  Employee's  discretion,  for
automobile insurance,  gasoline, automobile maintenance,  and/or for the monthly
purchase or lease payment on the Employee's vehicle.

      10.   NON-COMPETITION AND  NON-SOLICITATION  AGREEMENT.  Without the prior
written  consent of the  Company,  Employee  shall not,  during the term of this
Agreement,  or  for a two  (2)  year  period  of  time  following  the  date  of
termination of this Agreement or the  termination of Employee's  employment with
the Company:

EMPLOYMENT AGREEMENT * BYRON HUDSON                                            8
<PAGE>

            [a]   Enter  into or engage in a  Competing  Business,  within  five
hundred  (500)  miles of the  location  of any office  which is  occupied by the
Company,  its  subsidiaries,  affiliates or partners of Company at the time this
Agreement and/or Employee's employment are terminated, and in which, from which,
or in relation to which  Employee  performed  services on behalf of the Company,
and/or any geographic  territory in which Employee worked or had  responsibility
for during his employment  with the Company,  either as an individual,  partner,
joint venturer, employee, agent, consultant,  officer, director,  shareholder or
otherwise.  For purposes of this Agreement,  a "Competing  Business" consists of
any business  providing the same or substantially  similar products and services
as those  provided by the Company during the term of this  Agreement,  including
but not limited to the  creation  and  operation  of mortgage  brokerage/banking
centers in an in-house setting within any real estate-related business.

            [b]   Solicit  business  from,  attempt to do business  with,  or do
business with any customer of the Company which either:  (1) Employee called on,
serviced, did business with or had contact with during his/her employment at the
Company;  or (2)  Employee  became  acquainted  with  or  received  Confidential
Information  regarding as a result of his/her  employment  at the Company.  This
restriction  applies only to businesses that are within the scope of services or
products provided by the Company.

            [c]   Induce,  solicit or attempt to solicit or induce any  employee
of the Company (or any affiliate of the Company) to leave their  employment with
the Company and/or accept employment elsewhere.

      11.   CONFIDENTIAL INFORMATION.

            During  the  term of  this  Agreement,  the  Company  shall  provide
Employee with initial and ongoing confidential  information and trade secrets of
the Company and the Company's clients (hereinafter  referred to as "CONFIDENTIAL
INFORMATION").   For  purposes  of  this  Agreement,   Confidential  Information
includes, but is not limited to:

EMPLOYMENT AGREEMENT * BYRON HUDSON                                            9
<PAGE>

            a.    Software or other  technology  developed by the  Company,  any
research  data  or  other  documentation  related  to the  development  of  such
software/technology and software source codes;

            b.    Customer lists and prospect lists developed by the Company;

            c.    Information  regarding the Company's customers,  including but
not limited to,  customer  contracts,  work  performed for  customers,  customer
contacts, customer requirements and needs, data used by the Company to formulate
customer bids, customer financial  information,  and other information regarding
the customer;

            d.    Information related to the Company's  business,  including but
not limited to  marketing  strategies  and plans,  sales  procedures,  operating
policies and procedures,  pricing and pricing strategies,  billing  information,
Employee lists, business plans, sales, profits, and other business and financial
information of the Company;

            e.    Training  materials  developed  by and provided to Employee by
the Company;

            f.    Any other  information  which Employee acquired as a result of
his/her employment with the Company and which Employee has a reasonable basis to
believe the Company would not want disclosed to a business  competitor or to the
general public.

      Employee  understands and acknowledges that such Confidential  Information
gives the  Company a  competitive  advantage  over  others  who do not have this
information,   and  that  the  Company  would  be  harmed  if  the  Confidential
Information were disclosed.

      12.   NON-DISCLOSURE OF CONFIDENTIAL INFORMATION.  Employee agrees to hold
all  Confidential  Information  of the Company in trust for the Company and will
not:  (a) use the  information  for any  purpose  other than the  benefit of the
Company or in  furtherance  of the  Company's  business;  or (b) disclose to any
person or entity any Confidential Information of the Company except as necessary
during  Employee's  employment with the Company to perform

EMPLOYMENT AGREEMENT * BYRON HUDSON                                           10
<PAGE>

services on behalf of the Company.  Employee will also take reasonable  steps to
safeguard  such   Confidential   Information   and  prevent  its  disclosure  to
unauthorized persons.

      13.   RETURN OF COMPANY  PROPERTY AND  INFORMATION.  Upon  termination  of
employment,  or at any earlier time as directed by the Company,  Employee  shall
immediately  deliver to the  Company  any and all  Confidential  Information  in
Employee's  possession,  any  other  documents  or  information  which  Employee
acquired as a result of his/her  employment with the Company,  and any copies of
such documents/information. Employee shall not retain any originals or copies of
any documents or materials related to the Company's business which Employee came
into possession of or created as a result of his/her  employment at the Company.
Employee  acknowledges  that such  information,  documents and materials are the
exclusive property of the Company.

      14.   NOTICES. All notices or other instruments or communications provided
for in this  Agreement  shall be in writing and signed by the party  giving same
and shall be deemed properly given if delivered in person, including delivery by
overnight  courier,  or if sent by registered  or certified  United States mail,
postage prepaid, addressed to such party at the address listed below. Each party
may, by written  notice to the other  party,  specify any other  address for the
receipt of such notices, instruments or communications.

      15.   DISPUTE  RESOLUTION.  All disputes and claims between the parties to
this Agreement  involving the  construction  or application of any of the terms,
covenants or conditions of this Agreement  that are not resolved  pursuant to an
agreement of the parties  shall be  arbitrated  before the American  Arbitration
Association  ("AAA"),  upon the written  notice of a party to the other party in
writing.  The arbitration of such disputes before the AAA will proceed  pursuant
to the AAA's  Commercial  Arbitration  Rules then in effect.  Judgment  upon any
arbitration  award  may be  entered  in  any  court  or  other  tribunal  having
jurisdiction thereof, and the parties hereby consent to the jurisdiction of such
courts for this purpose.  If the parties  cannot agree upon an

EMPLOYMENT AGREEMENT * BYRON HUDSON                                           11
<PAGE>

arbitrator,  one shall be appointed by the AAA. The arbitrator's  award shall be
binding and in writing. All arbitration  proceedings shall be conducted in Cedar
Rapids,  Iowa.  Notwithstanding  the  above,  in the  event of a breach  of this
Agreement by Employee,  the Company shall be entitled to seek injunctive  relief
from a court of  competent  jurisdiction  to enforce  this  Agreement or prevent
conduct in violation of this Agreement. Any fees and expenses charged by the AAA
or its  designated  arbitrators  shall be shared  equally by the parties to this
Agreement. The parties to this Agreement shall bear their own attorneys' fees.

      16.   MISCELLANEOUS.

            a.    SECTION  HEADINGS.  The  section  headings  contained  in this
Agreement are for reference  only and shall not affect in any way the meaning or
interpretation of this Agreement.

            b.    ASSIGNMENT.  Subject to the condition  that this  Agreement is
not  assignable by either party  without the prior written  consent of the other
party, the terms and provisions of this Agreement shall inure to the benefit of,
and shall be  binding  on,  the  parties  hereto,  the  Company's  subsidiaries,
partners,   affiliates  and  such  parties  respective  heirs,  representatives,
successors and assigns.

            c.    ENTIRE   AGREEMENT.   This  Agreement   supersedes  all  other
agreements,  either oral or in writing,  between the parties of this  Agreement,
including,  but not limited to, the  employment  agreement  entered  into by the
parties  effective   February  1,  2001.  This  Agreement  contains  the  entire
understanding of the parties and all of the covenants and agreements between the
parties with respect to such  employment.  Any such prior  agreements are hereby
terminated without obligation for any payments otherwise due thereunder.

            d.    SEVERABILITY.  If at any time  subsequent  to the date hereof,
any  provision of this  Agreement  shall be held by any  arbitrator  or court of
competent  jurisdiction  to be illegal,  void or  unenforceable,  such provision
shall be of no force and effect, but the illegality or

EMPLOYMENT AGREEMENT * BYRON HUDSON                                           12
<PAGE>

unenforceability  of such  provision  shall  have no  effect  upon and shall not
impair the enforceability of any other provision of this Agreement.

            e.    COUNTERPARTS.  This  Agreement  may be executed in one or more
counterparts,  each of which shall be deemed an original, but all of which taken
together shall constitute one and the same instrument.

            f.    AMENDMENTS. Except as otherwise provided herein, amendments or
modifications  may be made to this Agreement  only with the written  approval of
both parties,  and any alleged amendment or modification  herein which is not so
approved shall not be effective as to either party.

            g.    REFORMATION.  In the  event  that any  arbitrator  or court of
competent   jurisdiction   holds  any  restrictions  in  this  Agreement  to  be
unreasonable and/or unenforceable as written, the court or arbitrator may reform
the Agreement to make it  enforceable,  and the  Agreement  shall remain in full
force and effect as reformed by the arbitrator or court.

            h.    NO WAIVER.  Failure in any one or more instances of a party to
insist upon  performance  of any of the terms,  covenants or  conditions of this
Agreement or to exercise any right or privilege conferred by this Agreement,  or
the waiver by a party of any breach of any of the terms, covenants or conditions
of this  Agreement,  shall not be construed  as a subsequent  waiver of any such
terms, covenants,  conditions, rights or privileges, but the same shall continue
and  remain in full  force and  effect as if no such  forbearance  or waiver had
occurred. No waiver shall be effective unless it is in writing and signed by the
waiving party. A breach of any representation, warranty or covenant shall not be
affected  by the  fact  that a more  general  or more  specific  representation,
warranty or covenant was not also breached.

            i.    BINDING EFFECT. This Agreement shall be binding upon and inure
to  the  benefit  of  Employee,  the  Company  and  any  parents,  subsidiaries,
affiliated companies, successors or assigns of the Company.

EMPLOYMENT AGREEMENT * BYRON HUDSON                                           13
<PAGE>

            j.    GOVERNING LAW. This Agreement has been made under and shall be
governed by the laws of the State of Iowa.

            k.    AUTHORIZATION BY COMPANY'S BOARD OF DIRECTORS.  This Agreement
has been authorized by a Resolution of the Board of Directors of the Company.

      IN WITNESS  WHEREOF,  the parties  hereto  have  executed  this  Agreement
effective as of the 22nd day of September, 2004.

                                                 AMERICAN PALLET LEASING, INC.

                                        By:
                                           -------------------------------------
                                             TIMOTHY BUMGARNER, CHAIRMAN & CEO

                                        By:
                                           -------------------------------------
                                             JAMES CRIGLER, DIRECTOR OF APL

                                             EMPLOYEE:

                                        By:
                                           -------------------------------------
                                             BYRON HUDSON, CFO

EMPLOYMENT AGREEMENT * BYRON HUDSON                                           14
<PAGE>

                                   EXHIBIT "A"
                                   -----------

      For the purposes of  calculating  the bonus  referred to in Paragraph 3 of
the  Employment  Agreement,  Net Profit  will be defined as cash  receipts  from
revenue,  less cost of sales,  less  general and  administrative  expense  (GA),
before taxes.

EMPLOYMENT AGREEMENT * BYRON HUDSON                                           15
<PAGE>

                                   EXHIBIT "B"
                                   -----------

Section 162(m) of the Internal Revenue Code generally  disallows a tax deduction
to public corporations for compensation over $1,000,000 paid for any fiscal year
to the  corporation's  chief  executive  officer  and  four  other  most  highly
compensated  executive officers as of the end of any fiscal year.  However,  the
statute exempts  qualifying  performance-based  compensation  from the deduction
limit if certain requirements are met.

The  Executive  Compensation  Committee  believes  that it is  generally  in the
Company's best interest to attempt to structure performance-based  compensation,
including stock option grants and annual bonuses,  to executive officers who may
be  subject  to  Section  162(m)  in  a  manner  that  satisfies  the  statute's
requirements.  However, the Executive Compensation Committee also recognizes the
need to retain  flexibility  to make  compensation  decisions  that may not meet
Section  162(m)  standards  when  necessary  to enable  the  Company to meet its
overall objectives,  even if the Company may not deduct all of the compensation.
Accordingly,  the Board,  the Executive  Compensation  Committee  have expressly
reserved  the  authority to award  non-deductible  compensation  in  appropriate
circumstances.  Further,  because of  ambiguities  and  uncertainties  as to the
application  and  interpretation  of Section 162(m) and the  regulations  issued
thereunder,  no assurance can be given,  notwithstanding  the Company's efforts,
that  compensation  intended  by the  Company to satisfy  the  requirements  for
deductibility under Section 162(m) does in fact do so.

EMPLOYMENT AGREEMENT * BYRON HUDSON                                           16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]