Document:

20-F

Exhibit 4.16  

Confidential treatment requested as
to portions of this agreement, which were omitted and filed separately with the
Securities and Exchange Commission  

ORIGINAL DESIGN,
MANUFACTURE AND 
SUPPLY AGREEMENT 

By and Between 

***

AND 

Crow Electronic
Engineering LTD 

ORIGINAL DESIGN,
MANUFACTURER, AND SUPPLY AGREEMENT 

        THIS
ORIGINAL DESIGN MANUFACTURE AND SUPPLY AGREEMENT (“Agreement”) is entered
into as of the ____ day of _____________, 2006, between Crow Electronic Engineering
LTD, an Israeli company organized under the laws of the State of Israel, having its main
place of business at 12 Kineret Street, Airport City, Israel(“Original Design
Manufacturer” or “ODM”) and *** (a division of ****), a company
organized under the laws of *** (“***”). ODM and *** shall be referred
collectively as “Parties” or individually as “Party.”
Unless otherwise noted, all capitalized terms in this Agreement shall have the meanings
set forth in Article 1. 

RECITALS 

             A.        
          ODM and *** desire to enter into a relationship whereby ODM will design,
          manufacture, assemble, supply and provide support for the Products. 

             B.        
          The Parties desire the Products to be marketed and sold by *** under the ***
          label on a worldwide basis. 

             C.        
          The Parties desire to set forth the terms and conditions of their relationship
          in this Agreement. 

        NOW,
THEREFORE, in consideration of the mutual premises and covenants contained herein below,
the Parties hereby agree as follows: 

    1.        DEFINITIONS  

        “Addendum”
means an addendum, including a Product Addendum (as defined below), to this Agreement. 

        “Affiliate”
means any *** Affiliate (as defined below), subcontractor or other third party authorized
in writing by *** to purchase Products. 

        “Defective
Product” means any Product that has a defect in design, material or workmanship
or that does not comply with the Specifications. 

        “Delivery
Date” means the date specified in a Purchase Order for the delivery of Products
by ODM to ***‘s shipping agent. 

        “Effective
Date” means the date this Agreement is executed by the last Party to execute it. 

***Confidential Treatment Requested 

        “Intellectual
Property Rights” means all rights in patents, copyrights, trade secrets, mask
works, Marks and other similar rights. 

        “Marks”
means the trademarks, service marks, trademark and service mark applications, trade dress,
trade names, logos, insignia, symbols, designs or other marks identifying a Party or its
products. 

        “Month”
means a calendar month. 

        “Products”
means Products set forth in Product Addenda B-1 to B-5 (collectively, the “Initial
Products”) and in all subsequently agreed upon Product Addenda. 

        “Product
Addendum” means each addendum setting forth the description of Products and
Product-specific requirements attached to this Agreement, beginning with Exhibit B-1,
and any subsequent addendum entered into between ODM and *** in the form attached to this
Agreement as Exhibit C. 

        “Purchase
Order” means a written or electronic purchase order issued by *** or its
Affiliate to ODM for purchase of the Products. 

        “Scope
of Work” or “SOW” means a written document that outlines design goals
and project deliverables by the ODM. It is an integral part of this agreement but is not
in itself a specification. 

        “Specifications”
means the technical and functional requirements for the assembly of the Products as
specified in an attachment to a Product Addendum. 

        “Subsidiary”
means an entity controlled by or under common control with a Party, through ownership or
control of more than 50 percent of the voting power of the shares or other means of
ownership or control, provided that such control continues to exist. 

        “Term”
has the meaning given to it in Section 14.1 and includes the initial term and any renewal
term. 

        “***
Affiliate” means any person controlled, controlling or under common control with
*** 

    2.        PURCHASE
AND SALE OF PRODUCTS  

        2.1
 Subject to the terms and conditions in this Agreement, ODM agrees to design, manufacture
and assemble the Products, and to sell the same to *** in accordance with the terms
hereof.  

        2.2
Design Ownership. *** and ODM will maintain design ownership of each Product as
outlined in the applicable Product Addendum.  

***Confidential Treatment Requested 

2

        2.3
Supplier. *** agrees that ODM shall be the supplier to *** for the Products
specified in the Addendum until the end of the Term or earlier termination of this
Agreement such that ODM shall not, during the Term of this Agreement, produce or sell any
Products set forth in Product Addenda B-1 to B-5 inclusively (and any subsequent
Addendum) or any other product which is identical (unless stated otherwise in the
exclusivity paragraph of each applicable Addendum) with the applicable Product to any
third party that is not an Affiliate, in any jurisdiction (unless stated otherwise in the
Addendum). ODM agrees and acknowledges that it is supplying Products pursuant to this
Agreement for resale by *** to third parties in all jurisdictions throughout the world
without further payment by *** to ODM except as expressly set forth in any applicable
Purchase Order.  

        Notwithstanding
the foregoing, should ODM be unable to meet delivery schedules for Products specified in
any Purchase Order or in the amounts forecast in the Rolling Forecasts set forth in
Section 3 below, *** shall have the temporary right, provided such inability to meet
delivery schedules for Product persists for a period of sixty (60) days, to have those
Products for which ODM is not able to meet forecasted delivery schedules produced in-house
or by third parties under agreement with ***. Such *** or third party production may
continue until such time as ODM notifies *** in writing that it is again able to meet
forecasted delivery schedules. In case of such in-house or third party production
-  *** shall guarantee to the ODM’s satisfaction that such
production shall not infringe, harm, miss-use, or expose in any way
the intellectual property rights of the ODM It is hereby agreed that in respect
of such Products produced in house by *** or by a third party in accordance with the
preceding sentence, until such time as ODM notifies *** that it can resume Product
deliveries to *** as described in the preceding sentence, *** shall be solely responsible
for the quality, warranty, fitness of use and compliance with all laws, regulations and
standards in respect of the Products produced by *** or its subcontractors or any third
party producing the Product for *** and ODM shall bear no responsibility whatsoever in
respect of said Products. 

        For
the sole purpose of the immediately preceding paragraph, ODM grants to *** a limited
royalty-free license to use all intellectual property necessary to produce the Products
only during the periods during which *** is entitled to produce the Products in-house or
have the Products produced by a third party, as described in the preceding paragraph and
subject thereto. 

    3.        FORECASTS,
ORDERS AND DELIVERY  

        3.1
Products.  

	 	        3.1.1
Intentionally left blank. 

	 	        3.1.2
Rolling Forecast. *** agrees to provide to ODM, initially by the fifteenth day
after signing this Agreement and subsequently by the first Tuesday of each month
thereafter, a 6-month rolling forecast (“Rolling Forecast”), each said
Rolling Forecast setting forth the Products anticipated to be delivered by ODM during the
6-month period commencing on the first day of the month following the month in which the
Rolling Forecast was delivered.  

***Confidential Treatment Requested 

3

	 	        (a)
          Products forecast for delivery only in the first two (2) months of each Rolling
          Forecast are firm and committed orders which shall not change and on which ODM
          is entitled to rely.  

	 	        (b)
          With respect to Products forecast for delivery in the third (3rd)
          month of any Rolling Forecast, said Products are firm and committed orders on
          which ODM is entitled to rely, except that *** has the right to request in
          writing and at least fifteen (15) days prior to the commencement of the second
          month of any Rolling Forecast an increase or decrease in the quantity of a
          Products order by up to 15 percent (15%) from the quantity forecasted for that
          order when it was first identified in a Rolling Forecast (and provided that it
          does not decrease more than the minimum quantity per delivery as specified the
          Product Addenda). 

	 	        (c)
          All Products Rolling Forecasts beyond the third month can be changed by *** as
          its forecast changes, provided that such changes are made in writing and
          delivered to ODM at least forty-five (45) days prior to the commencement of the
          relevant month, provided that it does not decrease more than the minimum
          quantity per delivery as specified the Product Addenda.  

	 	        (d)
          If a Product Rolling Forecast is reduced to zero, *** will purchase work in
          progress units and stock of exclusive parts used for the manufacturing of the
          Products, as identified and agreed upon by both parties on the day the Rolling
          Forecast is reduced to zero.  

		    3.1.3.        Exclusivity.
Exclusivity, other than ODM’s obligation not to produce           or sell the
Products to any third party that is not an Affiliate, as set forth           in Section
2.3 hereof, (if any), during the Term of this Agreement, is to be           agreed upon
between *** and the ODM in each Product Addendum separately.  

        3.2
Purchase Order. Not less than forty five (45) days prior to the specified Delivery
Date, *** shall deliver to ODM a Purchase Order (electronically or through facsimile)
confirming the details of the purchase of Products previously specified in the Rolling
Forecast. Each Purchase Order shall include: (i) a reference to the relevant Product
Addendum(s); (ii) Product unit quantity; (iii) Delivery Date; (iv) price
of each Product model; and (v) other instructions or requirements pertinent to the
Purchase Order. The Purchase Order may not increase or decrease the price or the amount
of Products previously specified for delivery in months one and two of any Rolling
Forecast.  

        3.3.
Delivery Destination. Unless otherwise agreed in writing between the
          Parties, all Products shall be shipped to *** on a *** basis ***. ***  

        3.4
Order Acknowledgment. A Purchase Order shall be deemed to have been placed as of
the date ODM acknowledges acceptance of a Purchase Order electronically or through
facsimile to ***. If *** requests an advance in the delivery date or an adjustment to
increase the quantity specified in a Purchase Order, ODM will use commercially reasonable
efforts to  advance the delivery date of the Purchase Order or accommodate an increase in
the quantity specified in the Purchase Order. Any costs incurred by ODM to advance the
delivery date of the Purchase Order or accommodate an increase in the quantity specified
in the Purchase Order shall be borne by *** provided that ODM shall have advised *** of,
and obtained ***‘s written consent to, any costs to be incurred prior to proceeding
to advance the delivery date or increase the quantity.  

***Confidential Treatment Requested 

4

        3.5
Change in Specifications. The Specifications may be changed upon mutual written
agreement of the Parties at any reasonable time prior to manufacture of corresponding
Products and in any case not less than ninety (90) days prior to commencement of
manufacturing of the corresponding Products. Any costs incurred by ODM (and approved in
writing by ***) to accommodate such changes as well as any possible price difference
following such change (and agreed in writing by ***) shall be borne by ***. 

    4.        PRODUCT
ADDENDUM  

        4.1
Initial  Product  Addendum.  The Initial  Products to be supplied by ODM to *** are
 specified on the Product Addenda attached hereto as Exhibits B-1 to B-5 inclusively. 

        4.2
New Product Addendum. *** and ODM may by mutual consent, from time to time, add
products to this Agreement by executing a Product Addendum. The first new Product shall be
specified on a Product Addendum to be attached hereto as Exhibit B-6. Each subsequent
Product Addendum shall be numbered consecutively (e.g., Exhibit B-6,
Exhibit B-7) and shall include the information specified on the blank Product
Addendum (attached hereto as Exhibit C) and such other terms and conditions as agreed
upon by the Parties. 

        4.3
Precedence. In the event of a conflict between this Agreement and a Product
Addendum, the terms and conditions set forth in a Product Addendum will control and take
precedence over any conflicting terms in this Agreement. 

        4.4
Documentation. ODM shall provide *** with all the information reasonably necessary
for the preparation of user and technical materials by ***, that *** makes available with
the Products. 

    5.        PRICE;
PAYMENT TERMS  

        5.1
Price. The price for a Product shall be as specified on the applicable Product
Addendum (prices listed in the Product Addendum are net) and may not be changed without
written agreement by the Parties.  

        5.2
Payment Terms.  

        *** 

***Confidential Treatment Requested 

5

    6.        SHIPMENT
AND ACCEPTANCE  

        6.1
Product Labeling. To the extent specified in the applicable Product Addendum or
attachment thereto, ODM will ensure that the Products and the packaging contain such
information and ***‘s Marks. 

        6.2
Complete Delivery. All Product units specified in a Purchase Order are to be
shipped complete. In the event ODM knows that only a portion of the Products will be
available for shipment to meet a Delivery Date, ODM shall immediately notify *** in
writing. In such event, *** shall have the option to accept partial shipment or direct ODM
to reschedule the shipment, which *** will confirm in writing with ODM’s written
agreement. 

        6.3
Option to Accept Overshipment. If ODM ships more Product units than ordered, ***
may accept in writing the amount of the overshipment with payment due in accordance with
Section 5. 

        6.4
Delays. If ODM knows it cannot meet or has missed the Delivery Date, ODM shall
immediately notify *** of such event and the anticipated delivery dates for the Products
affected. ODM shall use all commercially reasonable efforts to meet the Delivery Date or
to complete the delivery as soon as possible thereafter. If, however, the delay is to the
extent that ODM cannot meet the Delivery Date, but reasonably believes that it can meet
***‘s reasonable commitment to deliver to ***‘s customer destination
(“Commitment Destination”), then ODM shall use commercially reasonable
efforts to ship the Products directly to the Commitment Destination by ***‘s required
delivery dates to its customers. ODM shall pay for any resulting increase in the freight
cost over that which *** would have been required to pay by the standard method of
transportation. If delay has been notified to *** or has occurred, *** shall have the
right to cancel any Purchase Order if (a) *** notifies ODM of the Commitment
Destination and delivery date to the Commitment Destination and (b)(i) ODM
acknowledges that it cannot meet the delivery date to the Commitment Destination; or
(ii) ODM misses the delivery date to the Commitment Destination. *** shall undertake
commercially reasonable methods to mitigate ODM’s costs associated with above
described expedient delivery for the affected Products. Notwithstanding the foregoing,
this Section 6.4 shall be subject to Article 11 in the event of a force majeure.
For the purpose of this Agreement and without derogating from Article 11 below, delivering
the Products within 5 days from the scheduled Delivery Date shall not be considered as a
delay in delivery. 

        6.5
Packing List. Each delivery of Products must include a packing list that contains
at least: (i) *** model number; (ii) quantity of Products shipped; and
(iii) date of shipment. 

        6.6
Packaging; Damages. ODM shall properly package, handle and pack all Products so as
to protect the Products from loss or damage, in conformance with good commercial practice
and the Specifications and other applicable standards specifically set forth in the
applicable Product Addendum. Special static protection, if specified in the applicable
Product Addendum, or attachment thereto, shall be provided. 

***Confidential Treatment Requested 

6

        6.7
Acceptance. Upon delivery of a shipment to ***‘s shipping dock, *** shall have
ten (10) days to accept or reject such shipment if not in compliance with the relevant
purchase 

order and accordingly will notify ODM
of any rejection within said period. Failure to reject such shipment in writing within
such period shall be deemed to be acceptance of the shipment. 

    7.        COMPLIANCE
WITH LAWS AND REGULATIONS  

        7.1
Compliance with Laws and Regulations. ODM shall ensure that the Products comply
with all applicable laws and regulations as specified in the Product Addenda. *** shall be
responsible for compliance with all laws and regulations pertaining to the use, shipment
or sale to third parties of the Products upon delivery of the Products to the ***. 

        7.2
Marking Compliance. To the extent specified in the applicable Product Addendum, ODM
shall ensure that such Products comply with the requirements of, and shall mark the
Products with, regulatory, safety and standards organizations marks which signify
compliance with the requirements of those organizations. 

        7.3
Origin Certification; Marking. Upon ***‘s request, ODM will provide *** with
an appropriate certificate stating the country of origin for the Products. Unless
otherwise specified in the applicable Product Addendum, ODM shall also mark each Product,
or the container if there is no room on the Product, with the country of origin in
compliance with customs requirements. 

        7.4
Indemnification. Each Party shall indemnify and hold the other Party harmless from
and against any claim, liability, loss, judgment, expense or cost arising from the breach
or claimed breach of any of the provisions in this Article 7. Any indemnification
under this Agreement shall be made after final judgment is delivered by a competent court
and any settlement proceedings initiated by one Party with any third party shall be
coordinated with the other Party to this Agreement, in as much as such Party is required
to indemnify the other Party pursuant to this Agreement. 

        7.5
Hazardous and Controlled Substances ODM shall comply with the hazardous and
controlled substances limits as set out in Exhibit A. 

    8.        WARRANTIES  

        8.1
Product Warranties. ODM warrants that it has expertise in the areas of product
design, manufacturing, marketing and sales in the product areas set forth in Exhibit A
attached hereto. ODM further warrants that it has the personnel, capacity and facilities
to supply Products of consistently high quality in the quantities forecasted by ***. ODM
warrants that all Products will be free from defects in design, material and workmanship
and will conform to the Specifications. The warranty period for each Product shall
commence on the date of purchase by *** and continue until *** thereafter. In the event
*** discovers a Defective Product within the forgoing warranty period, *** shall notify
ODM in writing within the warranty period and ODM shall repair or, at its option, replace
such Defective Product, all subject to ODM’s standard warranty terms and conditions
attached hereto as Exhibit D. ODM further warrants that all Products will (i) be new,
except as otherwise set forth in the applicable Purchase Order or Product Addendum; and
(ii) be free and clear of all liens, encumbrances, restrictions, and other claims against
title or ownership. 

***Confidential Treatment Requested 

7

        8.2
Support Warranties. ODM will provide *** with maintenance and technical support for
the Products during the Term and during any warranty period for the Products, that extends
beyond the Term, provided, that separate fees will be paid by *** for maintenance and
technical support required after the expiration of the warranty period for the Products,
which fees will be charged at the rate set out in the applicable Product Addendum or
attachment thereto or as shall be agreed upon between the parties. ODM will maintain such
number of qualified personnel and parts as are necessary to provide, and ODM shall
provide, timely and knowledgeable maintenance and support. ODM warrants that all Support
will be provided in a professional and workmanlike manner. ODM shall not independently
offer and provide support services to customers of the Products sold by ***. 

        8.3
DISCLAIMER; LIMITATION OF LIABILITY FOR DEFECTIVE PRODUCTS. EXCEPT AS EXPRESSLY PROVIDED
IN THIS AGREEMENT OR ANY APPLICABLE PRODUCT ADDENDUM, AND SUBJECT TO ANY RIGHTS *** OR ITS
CUSTOMERS MAY HAVE UNDER LAW THAT CANNOT BE EXCLUDED UNDER THIS AGREEMENT, ODM MAKES NO
OTHER WARRANTY, EXPRESS OR IMPLIED, REGARDING THE PRODUCTS AND COMPONENTS, THEIR
MERCHANTABILITY OR THEIR FITNESS FOR A PARTICULAR PURPOSE. EXCEPT AS OTHERWISE PROVIDED
HEREIN, ODM’S SOLE AND EXCLUSIVE LIABILITY AND ***‘S SOLE AND EXCLUSIVE REMEDY
FOR DEFECTIVE PRODUCTS DURING THE WARRANTY PERIOD SHALL BE LIMITED TO REPAIR OR
REPLACEMENT OF THE DEFECTIVE PRODUCT ALL UNDER THE TERMS OF ODM’S STANDARD WARRANTY
CERTIFICATE ATTACHED HERETO AS EXHIBIT D. 

    9.        MARKETING
AND LICENSING  

        9.1
Marketing Authority. *** and its Affiliates shall have the right to use their own
business and license terms for all sales, marketing and distribution of the Products
acquired by them.  

        9.2
No Rights in Marks. Nothing in this Agreement shall be construed to grant either
Party any rights in the Marks of the other Party. To the extent specified in the
applicable Product Addendum, the Products shall be affixed with notices sufficient to give
notice as to the rights of the Parties in their respective Intellectual Property. As
between the Parties, the *** specified packaging design, manuals, *** Marks, manuals and
Product model names (the “*** Elements”) are the property of ***.
Accordingly, ODM shall not use the *** Elements except in connection with fulfillment of
ODM’s obligations hereunder. 

    10.        MUTUAL
INFRINGEMENT INDEMNIFICATION  

        10.1
ODM Intellectual Property Warranty. ODM warrants to *** (on its own behalf and as
agent for the Affiliates) that the manufacture and sale of the Products to *** or its any
of its Affiliates, and by each of them to their customers do not, and will not at the time
of sale of the Products to *** or the resale by *** or its Affiliates to their customers,
violate or infringe any third party Intellectual Property Rights. ODM further warrants to
*** that it has the unfettered right to grant the license set forth in the last paragraph
of Section 2.3 hereof. 

8

        10.2
*** Intellectual Property Warranty. *** warrants to ODM that, the *** Elements, do
not, and will not at the time of sale of the Products to ***, violate or infringe any
third party Intellectual Property Rights. 

        10.3
Duty to Indemnify. Each Party agrees to indemnify and hold the other Party harmless
from and against any claims, losses, liabilities, costs and expenses (including the actual
and reasonable fees of attorneys and other professionals and all related costs and
expenses) (collectively, “Losses”) the indemnified Party may incur as a result
of the other Party’s breach of its warranties in Sections 10.1 or 10.2. For
purposes of this Section 10.3, Party in reference to *** shall mean both *** and its
Affiliates. *** hereby agrees to act as agent on behalf of its Affiliates for purposes of
this Section 10.3. 

        10.4
Notification of Claim. If either Party learns of any claim or any facts upon which
a claim could be made, such Party shall immediately notify the other Party. If after such
notice, the indemnifying Party does not diligently pursue resolution of the claim or
provide the indemnified Party with reasonable assurances that it will diligently pursue
resolution, then the indemnified Party may, without in any way limiting its other rights
and remedies, defend the claim. 

        Any
indemnification under this Agreement shall be made after final judgment is delivered by a
competent court and any settlement proceedings initiated by one Party with any third party
shall be coordinated with the other Party to this Agreement, in as much as such Party is
required to indemnify the other Party pursuant to this Agreement. 

        10.5
Remedies for Infringing Products. If the use or combination of any Product provided
hereunder is enjoined and is subject to indemnification by a Party under Section 10.3
(“Infringing Product”), the non-indemnifying Party may, in its sole
discretion terminate this Agreement without further obligation upon written notice to the
other Party or, (A) if *** is the non-indemnifying Party, it may require ODM to, at
ODM’s expense (which additional expense may not exceed ten percent (10%) of the
originally agreed upon purchase price of the relevant Product): 

		    (i)        procure
for *** and its customers the right to continue using or combining the
          Infringing Product;  

		    (ii)        replace
the Infringing Product with a noninfringing product of equivalent           function and
performance; or  

		    (iii)        modify
the Infringing Product to be noninfringing, without detracting from           function or
performance;  

or (B) if ODM is the non-indemnifying
Party, it may, at the expense of *** (which additional expense may not exceed ten percent
(10%) of the originally agreed upon purchase price): 

		    (i)        procure
for *** and its customers the right to continue using or combining the
          Infringing Product;  

		    (ii)        replace
the Infringing Product with a noninfringing product of equivalent           function and
performance; or  

***Confidential Treatment Requested 

9

		    (iii)        modify
the Infringing Product to be noninfringing, without detracting from           function or
performance.  

        10.6
Limitations. Neither Party shall be required to indemnify the other party for any
Losses to the extent that such Losses arose as a result of a breach of warranty set forth
in this Article 10 by the non-indemnifying Party 

    11.        FORCE
MAJEURE  

        11.1
Notification. If the performance of either Party is affected by any event of force
majeure, including act of God, actions or directive of a court or public authority or
government, war or civil disturbance, fire, explosion, flood, shortage of fuel, power,
materials, disruption of transportation or communications, strikes or other labor
disruption, destruction of machinery or equipment, or any other natural or man-made event
beyond the reasonable control of such Party, such Party shall immediately notify the other
Party, in writing, giving details of the event. For clarification purposes, an industry
wide inability to obtain a component in commercially reasonable quantity and pricing is a
force majeure event; however, other supplier shortages shall not be force majeure events. 

        11.2
Suspension of Performance. The performance of the Party affected by such force
majeure shall be suspended only for as long as the event of force majeure continues, but
the Parties shall consult and will use their reasonable commercial efforts to find
alternative means of accomplishing such performance. 

        11.3
Commencement of Performance. Immediately upon cessation of the event of force
majeure, the Party affected by force majeure will notify the other Party in writing and
will take steps to recommence or continue the performance that was suspended. 

    12.        CONFIDENTIALITY  

        12.1
Definition of Confidentiality. As used in this Article 12,
“Confidential Information” shall mean all information and material which
is proprietary to a disclosing Party (“Discloser”) which is marked or
otherwise identified as “confidential” or “proprietary” and which is
disclosed to the other Party (“Recipient”) and shall not include
information: (a) being known to the Recipient prior to its disclosure by the
Discloser; (b) being known to the public prior to its disclosure to Recipient by
Discloser; (c) becoming known to the public other than by an act or omission by
Recipient; (d) becoming known to the Recipient through disclosure to either of the
Parties by a third party who is lawfully entitled to make such disclosure;
(e) disclosed to Recipient without full compliance with section 12.5. Confidential
Information shall also include the terms and conditions as well as the existence of this
Agreement, for which purpose each Party shall be deemed to be a Recipient. In addition,
the duty of confidentiality shall not apply to any information required to be disclosed
under applicable law or by authorities on the basis of legal regulations. 

        12.2
Obligation of Confidentiality. All Confidential Information shall be kept in strict
confidence by the Parties and shall not be used or duplicated other than as is required in
connection with the implementation of the terms and conditions of this Agreement. The
Parties agree to use all reasonable efforts to take such action as may be appropriate to
prevent the unauthorized use and disclosure of, and to keep confidential all such
Confidential Information, including: 

***Confidential Treatment Requested 

10

	 	        12.2.1
ensuring that such Confidential Information is disclosed only to responsible employees of
the Recipient who have been properly instructed to maintain such Confidential Information
in confidence; and,  

	 	        12.2.2.
 safeguarding all documents against theft, damage, or access by unauthorized           persons.  

        12.3
Post Termination. Upon expiration or termination of this Agreement, each Party
shall promptly return to the other Party all Confidential Information (including any
reproductions thereof or notes therefrom) received from the other Party. 

        12.4
Upon written request by the Discloser, the Recipient shall promptly return all materials
and documents (which shall include computer-stored information) containing Confidential
Information and shall ensure that any and all materials and documents prepared in
conjunction with or as a result of any Confidential Information shall be destroyed and
shall provide the Discloser with written confirmation of same. 

        12.5
Notwithstanding the foregoing, each Party acknowledges that the other Party is greatly
involved in new product development, and as such, each party does not wish to receive
Confidential Information which may limit its ability to develop such Products, except
where a conscious decision has been made to receive such Confidential Information.
Accordingly, where any Confidential Information relates to new product developments,
before such Confidential Information is disclosed to the other Party, the disclosing Party
shall first provide to the receiving Party a brief description of the new product
development such that the receiving party can determine whether or not it wishes to
receive such Confidential Information. In the event that the receiving Party advises the
disclosing Party that it does not wish to receive the Confidential Information relating to
the new product development described in the description, any disclosure by the disclosing
Party of such information to receiving Party shall not be Confidential Information for the
purposes of this Agreement. 

        12.7
Disclosure of Confidential Information is not precluded if such disclosure is in response
to a valid order of a court or other governmental body having jurisdiction; provided that
Recipient will first give notice to Discloser and make a reasonable effort to obtain a
protective order requiring that the Confidential Information be disclosed only for limited
purposes for which the order was issued. 

        12.8
Without derogating from the provisions of Section 12.1 above, to the extent that
Confidential Information is disclosed verbally, Discloser agrees to identify the
Confidential Information as “confidential” or “proprietary” prior to
the verbal disclosure. Additionally, with respect to such verbal Confidential Information,
Discloser agrees to reduce such verbal Confidential Information to writing or other
tangible medium within thirty (30) days of said verbal disclosure and to provide said
writing or other tangible medium to Recipient of said verbal Confidential Information. 

***Confidential Treatment Requested 

11

        12.9
Press Releases. Neither Party shall issue any press releases or other public
announcement relating to this Agreement or the relationship created by this Agreement
without the prior written consent of the other Party except to the extent required to
comply with the requirements of any law, regulation or regulatory policy or the rules of
any stock exchange. 

    13.        OWNERSHIP  

        13.1
*** Property. With regard to the Products, *** shall own the Intellectual Property
or other rights as provided in a Product Addendum. 

        13.2
ODM Property. Unless otherwise provided in a Product Addendum, all Intellectual
Property and other rights in the Products shall be owned by ODM. 

    14.        TERM;
TERMINATION  

        14.1
Term. This Agreement shall commence as of the Effective Date and continue until the
earlier of (i) one (1) year from the Effective Date; or (ii) *** requesting
the termination of this agreement in writing within at least ninety (90) days written
notice, unless terminated earlier in accordance with this Agreement. After the initial
Term, this Agreement will renew automatically for additional one-year periods, unless
either Party provides the other Party at least ninety (90) days written notice of its
intent to terminate prior to the expiration of the initial Term or the applicable renewal
Term. 

        14.2
Outstanding Orders. All Purchase Order(s) accepted by ODM prior to the
expiration of this Agreement shall be fulfilled and paid pursuant to and subject to the
terms of the Purchase Order. 

        14.3
Termination.  

	 	        14.3.1
Notice of Breach. If either Party is in material breach of any provision of this
Agreement, the nonbreaching Party may, by notice to the breaching Party, terminate this
Agreement or any Purchase Order, unless the breaching Party cures the breach within
thirty (30) days after receipt of notice.  

	 	        14.3.2
Causes of Breach. For purposes of Section 14.3.1 above, "breach" includes,
without limitation, any: 

		    (1)        proceeding,
whether voluntary or involuntary, in bankruptcy or insolvency with           respect to a
Party; or the inability of a Party to pay its debts generally as           they become
due;  

		    (2)        appointment,
with or without the other Party’s consent, of a receiver or an           assignee
for the benefit of creditors;  

		    (3)        failure
by ODM to deliver the Products in accordance with the requirements of           this
Agreement or any Purchase Order, not as a result of force majeure as           described
herein;  

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		    (4)        failure
by ODM to replace or repair Defective Products in a timely manner as           required
by Article 8, subject to the terms and conditions of ODM’s           standard
warranty;  

		    (5)        failure
by *** to make its payments in accordance with Article 5;  

		    (6)        failure
by *** to make the minimum purchases, if any, as set forth and required           in
 Article 3; or  

		    (7)        any
other failure by a Party to comply with any material provision of this
          Agreement with additional failure to provide the nonbreaching party, upon
          request, with reasonable assurances of future performance.  

	 	        14.3.3.
Termination by ODM. Without derogating from any other right of
          termination granted to ODM pursuant to this Agreement and by law, ODM shall
have           the right to terminate the present Agreement if ***, in any one calendar
year           period fails to purchase the minimum quantities of units of the Product
          specified in most recent Product Addendum.  

	 	        14.3.4
Termination by ***. *** shall have the right to terminate the present Agreement
if, within ninety (90) days of the Effective Date, ODM is unable to deliver samples of
Products meeting the Specifications set forth on Product Addendum for the Initial
Products. In addition, *** shall have the right to terminate this Agreement if ODM
repeatedly (more than an aggregate of ***% of all Products delivered within a three month
period) supplies Defective Products or repeatedly (more than an aggregate of *** days
late for all deliveries in any three month period, not as a result of Force Majeure)
fails to meet Delivery Dates.  

        14.4
LIMITATION OF LIABILITY. UNLESS OTHERWISE STATED IN THIS AGREEMENT, NEITHER PARTY
SHALL BE LIABLE FOR ANY PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OF THE OTHER ARISING
OUT OF ANY PERFORMANCE OF THIS AGREEMENT OR IN FURTHERANCE OF THE PROVISIONS OR OBJECTIVES
OF THIS AGREEMENT, REGARDLESS OF WHETHER SUCH DAMAGES ARE BASED ON TORT, WARRANTY,
CONTRACT OR ANY OTHER LEGAL THEORY, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 

    15.        DISPUTE
RESOLUTION  

        15.1
Amicable Resolution. The Parties agree to carry out this Agreement in a spirit of
mutual cooperation and good faith, and shall attempt to resolve any differences, disputes
or controversies which may arise between them amicably. 

        15.2
Escalation. If such negotiations and meetings do not resolve the dispute within ten
(10) days of written communications of the dispute, then each Party shall nominate one
senior officer of the rank of Vice President, or higher, as their respective
representative. The senior representatives shall meet within ten (10) days of their
nomination to resolve such dispute. If the dispute is not resolved to the satisfaction of
the representatives within thirty (30) days from the date of the original communication,
then either Party may seek arbitration under Section 15.3. 

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        15.3
Arbitration. Any disagreement, dispute, controversy or claim arising out of or
relating to this Agreement or the interpretation hereof or any arrangements relating
hereto or contemplated herein or the breach, termination or invalidity hereof shall be
finally settled by arbitration. 

        15.4
Arbitration Venue. The arbitration shall be conducted in Manchester, United
Kingdom, and shall be conducted in accordance with the Model Law on International
Commercial Arbitration adopted by the United Nations Commission on International Trade Law
on June 21, 1985. 

        15.5
Arbitrators. The arbitral tribunal shall consist of one arbitrator appointed by
mutual agreement. In the event the parties cannot agree upon an arbitrator, each party
shall appoint an arbitrator and the two so selected arbitrators shall select, within
thirty (30) days the single arbitrator who will hear and decide the dispute. 

        15.6
Language. The language used in the arbitration shall be the English language.  

        15.7
Binding Decision. Any decision or award of the arbitral tribunal shall be final and
binding upon the Parties. To the extent permitted by law, the Parties waive any rights to
appeal or to review of such award by any court or tribunal. The Parties further agree that
the arbitral award may be enforced against the Parties to the arbitration proceeding or
their assets wherever they may be found and that a judgment upon the arbitral award may be
entered in any court having jurisdiction thereof. 

        15.8
If any judicial or other proceeding is brought by either party regarding the
interpretation or enforcement of this Agreement, the prevailing party will recover from
the other all costs, attorneys’ fees and other expenses incurred by the prevailing
party with regard to that proceeding, and the right to such costs, attorneys’ fees
and other expenses shall be deemed to have accrued upon the commencement of said
proceeding and shall be enforceable whether or not said proceeding is prosecuted to
judgment. 

    16.        GOVERNING
LAW  

        This
Agreement shall be governed by and construed in accordance with the laws of the United
Kingdom without reference to its conflicts of laws provisions. The Parties expressly
exclude the application of the United Nations Convention on Contracts for the
International Sale of Goods. 

    17.        NOTICE  

        17.1
Notice Address. Any notices given hereunder shall be in writing and shall be served
by hand at, or by being sent by facsimile transmission or prepaid post to, the following
addresses and numbers: 

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	If to ***:	If to ODM:
	 
	***	Crow Electronic Engineering Ltd.
	 
	A Division of ***
	 
	***	12 Kineret Street
	 
	***	Airport City, Israel
	 
	Attention: ***	Attention: Mrs. Monique Bennoun-Melman
	 
	Fax:***	         Fax: +97239726001
	 
	Email:***	         Email: monique@crow.co.il

        17.2
Method of Notice. Any such notice shall be deemed to be served at the time of
delivery (if delivered by hand), at the time of transmission (if served by facsimile and
confirmation of receipt is obtained by the sender) if a working day or else on the next
working day following the date of transmission or upon actual receipt if deposited with an
internationally recognized courier (if served by courier). Without prejudice to the
effectiveness thereof, a notice served by facsimile shall be confirmed promptly in writing
delivered by hand or sent by courier. For the purposes hereof “working
day” means any day other than a Saturday, Sunday or statutory or legal holiday in
the municipality of the Party to whom the notice is directed. 

        17.3
Change of Address. Any Party may, by seven (7) days’ written notice
served to the aforesaid addresses of the other Parties, change the address or facsimile
number for service referred to above. 

    18.        MISCELLANEOUS  

        18.1
Surviving Provisions. The following provisions shall survive expiration or
termination of this Agreement: Articles 1, 4.3, 7, 8, 9 and 10 to 16 inclusive,, Sections
18.1 to 18.4 inclusive and Sections 18.6 to 18.12 inclusive. 

        18.2
Entire Agreement. This Agreement and any attachments and exhibits attached hereto
shall, as of the date of execution hereof, supersede all previous representations,
understandings or agreements, oral or written, among the Parties with respect to the
subject matter hereof, including, without limitation, any non-disclosure agreements
executed by the parties. 

        18.3
Application to Prior Activities. The provisions in Article 12 shall also apply
to the relationship of the Parties prior to the Effective Date. 

        18.4
Waivers. No waiver by either Party of any breach or failure to comply with any
provision of this Agreement shall be construed as, or constitute, a continuing waiver of
such provision or a waiver of any other breach of, or failure to comply with, any other
provision of this Agreement. 

15

        18.5
Further Assurances. Each of the Parties hereto agrees to execute and deliver such
other documents and take such other action as may be necessary to more effectively
consummate the purposes and subject matter of this Agreement. 

        18.6
Successors and Assigns. This Agreement and each and every covenant, term and
condition hereof shall be binding upon and inure to the benefit of the Parties hereto and
their respective successors and assigns; provided, however, that neither Party may assign
any of its rights or delegate any of its duties under this Agreement without obtaining the
prior consent of the other Party, except that either Party may, (i) in the event of a
transfer or sale of all or substantially all of its (a) assets, or (b) its
equity, assign this Agreement to the acquiring entity without the other parties consent,
provided the assignee is not a direct competitor of non-assigning party and the assignee
agrees, in a duly executed written instrument addressed and delivered to both Parties, to
assume assignor’s obligations hereunder or (ii) assign this Agreement to any party
controlling, under common control with or controlled by the assignor which is not a direct
competitor of the non-assigning party, and the assignee agrees, in a duly executed written
instrument addressed and delivered to both Parties, to assume the assignor’s
obligations hereunder. 

        18.7
Relationship. This Agreement shall not be construed to create a partnership, joint
venture, agency or employment relationship between the Parties. 

        18.8
Amendments. This Agreement may be amended or modified only by an instrument in
writing duly executed by the Parties.  

        18.9
Severability of Provisions. If any term of provision of this Agreement is for any
reason found invalid, illegal or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not affect the validity of any remaining portion, which shall
remain in full force and effect as if the invalid portion was never a part of this
Agreement when it was executed. 

        18.10
Headings. Headings of Articles and Sections in this Agreement are for
convenience only and shall not substantively affect the terms of this Agreement. 

        18.11
Execution in Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and both of which, taken together,
shall constitute one and the same instrument. 

        18.12
Execution by Facsimile. This Agreement may be executed by either or both Parties by
facsimile and if so executed shall be legal, valid and binding on such Party or Parties
executing in such manner. 

[SIGNATURE PAGE
FOLLOWS] 

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IN WITNESS  WHEREOF,  the Parties
have executed this Original  Design,  Manufacture and Supply  Agreement as of this _____
day of ____, 2006. 

AGREED TO BY: 

		
		
		
		
		
	CROW ELECTRONIC ENGINEERING LTD	***
	 
	 	Division of ***
	 
	By:_______________________________	By:_______________________________
	 
	 
	__________________________________	***
	 	Vice President and General Manager
	Printed Name and Title	Printed Name and Title
	 
	 
	 
	_______________________________	_______________________________
	Date	Date

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Exhibit A –
Hazardous and Controlled Substances 

Products, materials and parts
supplied to *** cannot exceed the specified threshold limits except where exemptions are
noted. All threshold limit values are shown in PPM (part per million) by weight per
homogeneous material. The formula for ppm calculation is 1,000,000 x mass substance/mass
homogeneous material. 

	Substances	Threshold

Intentionally

added	Threshold

Trace

Occurrence	Reference
	Asbestos, asbestos compounds	0 	- 	Directive 1999/77/EC
	Chlorofluorocarbons and halons (Class I and II Ozone depleting Chemicals)	0 	- 	Regulation 2037/2000
	Halogenated dioxins and furans	0 	- 	Germany
	Mercury and mercury compounds	0 	1000 	Directive 2002/95/EC Directive 2000/53/EC
	Polybrominated biphenyls (PBBs) and derivatives including biphenyl ethers (PBDEs)	0 	1000 	Directive 2002/95/EC Directive 2003/11/EC
	Polychlorobiphenyls and directives (PCBs)	0 	- 	Directive 85/467/EEC
	Polychloroterphenyls and directives (PCTs)	0 	- 	Directive 85/467/EEC
	Ethylene Glycol Monomethyl Ether and its acetate	0 	5 	California Prop 65
	Ethylene Glycol Monoethyl Ether and its acetate	0 	5 	California Prop 65
	Cadmium and cadmium compounds  (plastic,  rubber, ink, pigment, paint)	0 	5 	Asian Requirements
	Cadmium and cadmium compounds (all other applications)	0 	100 	Directive 2002/95/EC Directive 2000/53/EC
	Chromium VI (except packaging below)	0 	1000 	Directive 2002/95/EC Directive 2000/53/EC
	Lead  and  lead compounds (except  as in  cable  and packaging below)	0 	1000 	Directive 2002/95/EC Directive 2000/53/EC
	Lead and Lead  compounds in plastics, rubbers, inks, paints	0 	100 	Asian requirements California Prop 65 for cables
	Azo Dyes	0 	30 	Directive 2002/61/EC
	Lead, Cadmium, Chrome VI,and  Mercury in Packaging Materials	0 	100 combined	Directive 94/62/EEC
	Tributyl tin (TBT) and Triphenyl tin (TPT) compounds	0 	- 	Asian Requirements
	Short Chain Chlorinated Paraffins (C10-13, CI>50%)	0 	- 	Directive 2002/45/EC

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Exemptions (As stated in
Directive 2002/95/EC unless otherwise noted) 

	 	1. 	Mercury
in coct fluorescent lamps not exceeding 5 mg per lamp. 

	 	2.	         Mercury
in straight fluorescent lamps for general purposes not exceeding: 

	 	a.	         halophosphate
10 mg  

	 	b.	       triphosphate
with normal lifetime 5 mg  

	 	c.	           triphosphate
with long lifetime 8 mg.  

Exemptions (As stated in
Directive 2002/95/EC unless otherwise noted) 

	 	3.	         Mercury
in straight fluorescent lamps for special purposes. 

	 	4.	        Mercury
in other lamps not specifically mentioned in this Table. 

	 	5.	        Lead
in glass of cathode ray tubes, electronic components and fluorescent tubes. 

	 	
Rev
A 5 of 6  

	 	6. 	Lead
as an alloying element in steel containing up to 0.35 % lead by weight,
               aluminum containing up to 0.4 % lead by weight and as a copper alloy
containing                up to 4 % lead by weight. 

	 	7. 	Lead
in: 

	 	a. 	High
melting temperature type solders (i.e. lead based alloys containing more
               than 85 % by weight or more lead).  

	 	b. 	Lead
in solders for servers, storage and storage array systems, network
                    infrastructure equipment for switching, signaling, transmission as
well as                     network management for telecommunications. Note: this
exemption is determined by                     use of purchased material/ part in a
particular *** application. It is not                     expected that a supplier would
claim this exemption. It is included here for                     completeness).  

	 	c.	            Lead
in electronic ceramic parts (e.g. piezoelectronic devices).  

	 	8.	              Cadmium
and its compounds in electrical contacts and cadmium plating except for
               applications banned under Directive 91/338/EC (1) amending Directive
76/769/EEC                (2) relating to restrictions on the marketing and use of
certain dangerous                substances and preparations. 

	 	9.	        Lead
use in compliant pin connector systems. 

	 	10. 	Lead
as a coating material for the thermal conduction module c-ring. 

	 	11. 	Lead
and cadmium in optical and filter glass. 

	 	12. 	Lead
in solders consisting of more than two elements for the connection between
                    the pins and the package of microprocessors with a lead content of
more than 80%                     and less than 85% by weight. 

	 	13. 	Lead
in solders to complete a viable electrical connection between
                    semiconductor die and carrier within integrated circuit Flip Chip
packages. 

	 	14. 	Cadmium,
lead and mercury in batteries per Directive 98/101/EC not to exceed: 

	 	a. 	Cadmium:
250 ppm  

	 	 b. 	Lead:
4,000 ppm 

	 	c.	Mercury:
5 ppm except 2% for button cells  

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EXHIBIT B – 1 

PRODUCT ADDENDUM 

***

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EXHIBIT B – 2 

PRODUCT ADDENDUM 

***

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EXHIBIT B – 3 

PRODUCT ADDENDUM 

***

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EXHIBIT B – 4 

PRODUCT ADDENDUM 

***

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EXHIBIT B – 5 

PRODUCT ADDENDUM 

***

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Exhibit C 

Blank Addendum 

To be provide by *** 

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EXHIBIT D 

CROW WARRANTY TERMS 

CROW ELECTRONIC
ENGINEERING LTD. (“CROW”) 

WARRANTY POLICY CERTIFICATE 

This Warranty Certificate is given in
favor of *** (hereunder “***”) purchasing the products directly from Crow
or from its authorized distributor. 

Crow warrants these products to be
free from defects in materials and workmanship under normal use and service for a period
of *** by *** (hereunder the “Warranty Period”). 

Subject to the provisions of this
Warranty Certificate, during the Warranty Period, Crow undertakes to repair or, at
Crow’s option, replace, free of charge for materials and/or labor, products defective
in materials or workmanship under normal use and service. Repaired products shall be
warranted for the remainder of the original Warranty Period. 

All transportation costs and
in-transit risk of loss or damage related, directly or indirectly, to products returned to
Crow for repair or replacement shall be borne solely by ***. 

Crow’s warranty under this
Warranty Certificate does not cover products that are defective (or shall become
defective) due to: (a) alteration of the products (or any part thereof) by anyone other
than Crow; (b) accident, abuse, negligence, or improper maintenance; (c) failure caused by
a product which Crow did not provide; (d) failure caused by software or hardware which
Crow did not provide or approve the use of in conjunction with the product; (e) use or
storage other than in accordance with Crow’s specified operating and storage
instructions. 

There are no warranties, expressed or
implied, of merchantability or fitness of the products for a particular purpose or
otherwise, which extend beyond the description on the face hereof. 

This limited Warranty Certificate is
***‘s sole and exclusive remedy against Crow and Crow’s sole and exclusive
liability toward *** in connection with the products, including without limitation —
for defects or malfunctions of the products. This Warranty Certificate replaces all other
warranties and liabilities, whether oral, written, (non-mandatory) statutory, contractual,
in tort or otherwise. 

In no case shall Crow be liable to
anyone for any consequential or incidental damages (inclusive of loss of profit, and
whether occasioned by negligence of the Crow or any third party on its behalf) for breach
of this or any other warranty, expressed or implied, or upon any other basis of liability
whatsoever. Crow does not represent that these products can not be compromised or
circumvented; that these products will prevent any person injury or property loss or
damage by burglary, robbery, fire or otherwise; or that these products will in all cases
provide adequate warning or protection. 

*** understands that a properly
installed and maintained product may in some cases reduce the risk of burglary, fire,
robbery or other events occurring without providing an alarm, but it is not insurance or a
guarantee that such will not occur or that there will be no personal injury or property
loss or damage as a result. 

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Consequently, Crow shall have no
liability for any personal injury; property damage or any other loss based on claim that
these products failed to give any warning. 

If Crow is held liable, whether
directly or indirectly, for any loss or damage with regards to these products, regardless
of cause or origin, Crow’s maximum liability shall not in any case exceed the
purchase price of these products, which shall be the complete and exclusive remedy against
Crow. 

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3720-F

Exhibit 4.17  

BINDING TERM SHEET

FOR FINANCING

OF

CROW TECHNOLOGIES 1977 LTD.

JULY 4, 2006 

This Term Sheet summarizes the
principal terms of the proposed financing of Crow Technologies 1977, Ltd., an Israeli
corporation (the “Company”). This Term Sheet is binding upon the parties
hereto, subject only to the conditions set forth herein. The transactions described herein
will be consummated pursuant to definitive binding agreements (the “Definitive
Agreements”), which shall contain representations of each of the parties (provided
that the selling shareholders shall only provide representations in respect of the shares
of the Company sold by them pursuant to the transaction contemplated hereunder) and
closing deliveries of each of the parties as customary for transactions of this type. 

In the event of any dispute among the
parties with respect to the form or substance of such Definitive Agreements, or a breach
of the agreement reflected in this Term Sheet, such dispute shall be submitted to a single
agreed upon third party arbitrator in Israel who is a qualified attorney. If the parties
should fail to agree on the selection of an arbitrator within 14 days of the request for
arbitration by any party, a party may apply to the Chairman of the Israeli Bar to make the
appointment. The arbitrator shall conduct the proceedings in accordance with Israeli
substantive law, but shall not be bound by procedural or evidentiary provisions of law.
All decisions of the arbitrator shall be in writing and shall be reasoned in reasonable
detail. 

Offering Terms  

	 Closing Date:  	
As soon as practicable following the Company's acceptance
of this Term Sheet and satisfaction of the
Conditions to Closing (the "Closing") but in any event no
later than 90 days from the date hereof.  

	 Investors:  	Fortissimo
Capital Fund G.P., L.P. on behalf of the several partnerships in which
it serves as the general partner
("Fortissimo") and, if applicable, other
co-investors, acceptable to the
Company (such acceptance shall not be
unreasonably withheld) provided that
Fortissimo is the lead investor.  

	   Investment Amount: 	
                       The Investors shall acquire 23.5% of the Company, as detailed in
the post-closing                                              capitalization table
attached hereto, as follows: 

	 	
(i)
 By investing $ 4,707,938 million in the Company in exchange for 627,725
                                             newly issued Ordinary Shares at a price per
share of $7.50. 

	 	
(ii)
By acquiring 548,723 Ordinary Shares from the following selling shareholders
                                             at a price per share of $7.50 for a total of
$4,115,423:

	 	
Melman:
  250,000 shares @ $7.50 = $1,875,000

	 	
Silver:
      250,000 shares @ $7.50 = $1,875,000

	 	
Jacobson:
   43,723 shares @ $7.50 = $327,923

	 	
Batchon:
       5,000 shares @$7.50 = $37,500

	Shareholder Agreement:  	
                      The shareholder  agreement currently in effect among Mr. Melman,
 Sender Holdings,                                              Mr. Silver and Mr.
 Eilenberg  (the "Major  Holders")  shall be amended to reflect
                                             the  terms  set forth in this term  sheet.
 Any other  agreements  among the Major
                                             Holders  shall be reviewed  and may be
required to be amended in  connection  with
                                             the terms herein. 

	Matters Requiring Board Approval:  	           The Company will not, without Board approval: 

	 	
(i)
make  any loan or  advance  to, or own any stock or other  securities  of, any
                                             subsidiary or other corporation,
 partnership, or other entity unless it is wholly
                                             owned by the Company;  (ii) make any loan or
advance to any person, including, any
                                             employee or director,  except  advances and
similar  expenditures  in the ordinary
                                             course of business or under the terms of a
employee  stock or option plan approved                                              by
the Board of  Directors;  (iii) guarantee,  any  indebtedness  except for trade
                                             accounts  of the  Company  or any
 subsidiary  arising in the  ordinary  course of
                                             business;  (iv) make any investment  other
than  investments  in prime  commercial
                                             paper,  money market funds,  certificates
 of deposit in any United States bank or
                                             obligations  issued or guaranteed  by the
United  States of America,  in each case
                                             having a maturity not in excess of one year;
(v) incur any aggregate  indebtedness                                              in
excess of $250,000  that is not already  included in a  Board-approved  budget,
                                             other than trade credit  incurred in the
ordinary  course of business;  (vi) enter
                                             into or be a party to any  transaction  with
any director,  officer or employee of                                              the
Company or any  "associate"  (as defined in Rule 12b-2  promulgated  under the
                                             Exchange Act) of any such person  (vii)
hire,  fire, or change the compensation of
                                             the executive officers,  including
 approving any option plans;  (viii) change the
                                             principal  business  of the  Company,  enter
 new lines of  business,  or exit the
                                             current line of business;  or  (ix) sell,
 transfer,  license,  pledge or encumber
                                             technology or intellectual  property,  other
than licenses granted in the ordinary                                              course
of business.

2

	Board of Directors:  	                        At the  Closing,  the Board  shall be  increased  to
include  two  representatives                                              designated by
Fortissimo, in addition to the current board members. 

	Registration Rights:  	
                        After  the  first six  months  of the  Closing,  the  Investors
 may  request  two                                              registrations  by the
Company of their shares on form F-3 (no more than one demand
                                             in any 12 month period).  A  registration
 will count for this purpose only if (i)                                              at
least 50% of Registrable  Securities  requested to be registered are registered
                                             and (ii) it is closed,  or withdrawn at the
request of the  Investors  (other than                                              as a
result of a material adverse change to the Company). 

	 	
The
 Investors are also  entitled,  for 36 months after the first six months after
                                             the Closing, to "piggyback"  registration
rights on all registration statements of                                              the
Company, subject to any underwriter cutbacks.

	 	
All
 registration  expenses  shall be borne by the  Company,  other  than fees and
                                             commissions, which will be borne by the
Investors.

	 	
The
 Investors  and the Major  Holders  agree to enter into lock-up  agreements if
                                             required by the underwriters.

	 D&O insurance:  	
                           The Company will bind D&O insurance  with a carrier and in an
amount  satisfactory                                              to the Board of
Directors. 

	Right to Participate in Future Rounds:  	       The Investors  and the Major  Holders shall have a
pro rata right,  based on their                                              percentage
equity ownership in the Company to participate in subsequent  issuances
                                             of equity  securities of the Company
(subject to the customary  exceptions such as
                                             ESOP, finders, strategic transactions,
credit transactions, etc). 

3

	Right of
first refusal/Co-sale right/Co-buy right:  	                          Fortissimo  and the
Major  Holders  have a right of first  refusal with respect to
                                             any shares of the  Company  proposed  to be
sold by any of them in a private  sale                                              (not
via the public market), subject to customary permitted transfers. 

	 	
Before
 Fortissimo  or any Major  Holder may sell shares of the Company to a third
                                             party in a private sale (not via the public
market),  they must provide each other                                              with
an opportunity to  participate in such sale on a basis  proportionate  to the
                                             amount  of  securities  held by the  seller
 and those  held by the  participating
                                             shareholders, subject to customary permitted
transfers.

	 	
Fortissimo
 and the Major  Holders  shall  inform each other of all  purchases  of
                                             Ordinary Shares of the Company,  including
from the public,  on a quarterly basis.                                              At
such time,  all the other  shareholders  may acquire their pro rata  percentage
                                             from such shareholder that acquired shares
during such quarter,  at the same terms                                              at
which he acquired such shares.

	Drag Along:  	
                                 Fortissimo and the Major Holders  (collectively  the
"Sellers")  agree that in the                                              event  that
the  Sellers  holding at least 60% of the issue  share  capital of the
                                             Company held by such Sellers  decide to
enter into a  transaction  for the sale of
                                             control of the Company to a third  party,
 provided  that such sale is for a price                                              per
share of at least  $22.5 per share  (subject  to the  customary  adjustments),
                                             then,  the  remainder of the  Sellers,
 shall be obliged to agree to such sale and
                                             sell their pro-rata share accordingly. 

	Dividend Policy:  	
                            Fortissimo and the Major Holders shall agree upon and
establish a dividend  policy                                              for the Company. 

	Conditions to
Closing:  	                       This term sheet shall be a binding  obligation of the
parties  hereto,  subject to                                              the approval of
Bank Hapoalim and any other third party approvals  required by the
                                             Company as well as the  approval of the
board and audit  committee  of the Company
                                             as well as the shareholders of the Company
(the selling shareholders  undertake to                                              vote
in  favor of  approval  of this  term  sheet in the  general  meeting  of the
                                             Company).  Notwithstanding the above,
 Fortissimo may withdraw from its commitment
                                             to invest in the Company,  if it uncovers
and discloses to the Company in writing,
                                             within 30 days after the date hereof,  a
material item which the Company failed to
                                             disclose to it that it believes  can have a
material  adverse  effect on the value                                              of
the Company. 

4

	Counsel and Expenses:  	
                        Company to pay all legal and financial due diligence and
 administrative  costs of                                              the financing at
 Closingbetween  $30,000 and $50,000),  plus  reasonable fees and
                                             expenses of counsel,  all as shall be
 determined by the Board of Directors of the
                                             Company  unless the  transaction is not
completed  because the Investors  withdraw
                                             their  commitment not in accordance  with
the  materiality  clause in the previous
                                             Section entitled "Conditions to Closing. 

	No Shop/Confidentiality:  	
                    The  parties  agree to work in good faith  expeditiously  towards a
closing.  The                                              Company  agrees that it will
not, for a period of  forty-five  days from the date
                                             these terms are  accepted,  take any action
to solicit,  initiate,  encourage  or                                              assist
the  submission of any proposal,  negotiation  or offer from any person or
                                             entity other than the Investors  relating to
the sale or issuance,  of any of the                                              capital
 stock of the  Company  and shall  notify the  Investors  promptly of any
                                             inquiries  by any third  parties in regards
to the  foregoing.  In the event that                                              the
 Company   breaches  this  no-shop   obligation   and,   closes  any  of  the
                                             above-referenced  transactions  then  the
 Company  shall  pay to  the  Investors
                                             $250,000  upon the closing of any such
 transaction  as liquidated  damages.  The
                                             Company is a publicly  traded  company,  and
 therefore may disclose the terms of                                              this
Term Sheet as required under applicable laws and regulations.  The Investors
                                             shall  not  make  any  public  statement
 relating  to  this  Term  Sheet  or the
                                             transactions contemplated hereby unless
approved in advance by the Company. 

	Expiration:  	This
Term Sheet expires on July 6, 2006 if not accepted by the Company and the
                                             selling shareholders by that date. 

This Term Sheet supersedes any prior
discussions, correspondence, proposals, agreements and understandings between the parties
with respect to the transactions proposed herein, and may be signed in any number of
counterparts. 

5

[Signature Page to
Term Sheet] 

		
		
		
		
		
	Crow Technologies 1977 Ltd. 	Fortissimo Capital Fund 
	 
	By: _____________________	By: _________________________
	Name:	Name:
	 
	 
	__________________________	 
	Shmuel Melman
	 
	 
	_________________________	 
	Abraham Silver
	 
	 
	________________________	 
	Meir Jacobson
	 
	 
	________________________	 
	Jacob Batchon

6

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