Document:

ttii10q0310_991.htm

BUSINESS AND FINANCIAL CONSULTING AGREEMENT

THIS BUSINESS AND FINANCIAL CONSULTING AGREEMENT (“Agreement”) is entered into in duplicate this 22 day of February, 2010 by and between Tree Top Industries, a Nevada corporation with its operating office at 840 N. Hollywood Way, 2nd floor, Burbank, CA  91505 (“Company”) and Asia Pacific Capital Corporation, a Nevada Corporation with corporate offices at 123 West Nye Lane, Suite 129, Carson City, Nevada, 89706.

RECITALS

Whereas, the Company desires to retain APC to consult with the Company and assist the Company in international business development  for the Company, including but not limited to identification, introduction, and analysis of business partners and strategic alliances in the areas of investment banking, as well as guidance in any other matters or special projects that may be referred to the Company from time to time effective upon signing of this agreement, on the terms and subject to the conditions specified in this Agreement.

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES, UNDERTAKINGS AND COVENANTS SPECIFIED HEREIN, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, WITH THE INTENT TO BE OBLIGATED LEGALLY AND EQUITABLY, THE PARTIES AGREE WITH EACH OTHER AS FOLLOWS:

1. Incorporation of Recitals. The recitals of this Agreement, specified above, by this reference, are made a part of this Agreement, as though specified completely and specifically at length in this Agreement.

2. Services and Costs.

2.1 Services to be provided. APC shall consult with the Board and the officers of the Company, at reasonable times, concerning any issue of importance regarding certain opportunities available to the Company and other relevant matters relating to the business of the Company. Subject to those restrictions specified in Paragraph 8, APC shall specifically assist the officers of the Company, at the Company’s request and within the specific scope of the Company’s request, regarding the following matters:

	
(i)  

	
Positioning the Company in front of APC’s business network;

	
(ii)  

	
Identifying strategic business relationships for the Company in alignment with its international business strategy; and

	
(iii)  

	
Providing international business development assistance and help strategize possible financing options

2.2 Costs. APC will be responsible for any and all costs associated with executing its responsibilities as enumerated in the agreement.  Any exceptions must be in written request form, signed by both parties and approved by the Company. The Company will reimburse APC for reasonable out-of-pocket expenses, including but not limited to travel, lodging and meals, incurred in connection with its representation and services hereunder.  Reimbursement for out-of-pocket expenses will be paid by the Company within thirty (30) days of receipt of invoice from APC, except for the significant expenses of the institutional road show (including, without limitation, travel, lodging and institutional lunches) which will be paid directly by the Company.  The Company’s obligation to APC for

reimbursement of out-of-pocket expenses incurred during the Term of the Agreement will survive the termination of this Agreement.  All planned expenditures must be approved in writing by the Company prior to being incurred.

  

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3.   Term of Agreement. The respective duties and obligations of the parties shall commence upon the signing of this Agreement (“Effective Date”) and shall continue for a period of twelve months. In the event either party to this Agreement desires to terminate this Agreement, that party shall provide to the other party notice of that party’s intention to terminate this Agreement, and which notice shall specify the date of termination of this Agreement; provided.

4. Compensation.

The Company agrees to compensate APC for its efforts with above enumerated services

with TTI stock in the amount of 2,000,000 shares.  Fifteen days after the signing of this agreement, the Company shall deliver or cause to be delivered to APC Five Hundred Thousand (500,000) shares of the Company’s restricted common Stock (the “Common Stock” and the first 500,000 shares the “First Tranche of Common Stock”).  Subsequently, the Company shall deliver or cause to be delivered to APC an additional One Million and Five Hundred Thousand (1,500,000) shares of Common Stock to be deposited in three (3) equal tranches at the end of each subsequent ninety day period (each such tranche of Common Stock a “Subsequent Tranche” and each a “Common Stock Tranche”). The Agreement is subject to review at the close of every quarter and can be ended with no additional shares being issued.

Each Common Stock Tranche will be subject to a “trickle out” agreement between the Company and APC, whereby the total amount of stock issued to APC for such Tranche is trickled out in a maximum of 6 equal monthly installments, such trickle out period to commence as of the date that such Common Stock Tranche could be legally sold under SEC Rule 144.  Company management shall enter into substantially equivalent agreements for all stock owned directly or indirectly by such management members.  Elias Argyropoulos shall enter into substantially equivalent agreements for all stock owned directly or indirectly by him and shall further arrange for at least 80% of the stock owned by his “group” to be similarly locked up subject to the same trickle out agreement.  The form of the trickle out agreement will be agreed upon within 15 days of the execution of this Agreement and be fully executed by all parties described in this Agreement within 30 days of the execution of this Agreement.  Notwithstanding the foregoing, during any period in which the Company’s stock has traded an average of at least 100,000 shares for the previous 15 trading days, then for so long as the Company’s stock continues to trade at least an average of 100,000 shares per day, the provisions of the trickle out agreement shall not apply until such time as the volume drops below an average of 100,000 shares per day, at which point the trickle out agreement shall again apply.

In addition, the Company also reserves the right to pay out a discretionary bonus to APC related to performance of the above mentioned services.

5. Confidential Information.

5.1 Definition of Confidential Information. As used in this Agreement, “Confidential Information” shall, subject to the provisions set forth at Section 5.2 of this Agreement, included, but not be limited to, computer programs, software, source codes, computations, data files, algorithms, techniques, processes, designs, specifications, drawings, charts, plans, schematics, computer disks, magnetic tapes, books, files, records, reports, documents, instruments, agreements, contracts, correspondence, letters, memoranda, financial, accounting, sales, purchase and employment data, capital structure information, corporate organizational information, identities, names and addresses of shareholders, directors, officers, employees, contractors, vendors, suppliers, customers, clients and all persons and entities associated with the Company, information pertaining to projects, projections, assumptions and analyses, and all other data and information and similar items relating to the business of the Company and all other data and information and similar items relating to the Company of whatever kind or nature and whether or not prepared or compiled by the Company.

5.2 General Knowledge. Confidential Information, as that term is used in this Agreement shall not include information which:

(a) is already known without restriction to APC; or

(b) is or becomes publicly known as a result of no wrongful act of APC;   or

(c) is received from a third party without restriction and without breach of this

Agreement; or

(d) is independently developed by APC.

  

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5.3. Non-Disclosure. APC and its representatives, heirs, successors, employees, assigns, attorneys, affiliates, agents and other representatives, as the case may be, and each of their shareholders, partners, directors, officers, employees, representatives, attorneys, and all other persons or entities acting by, through, under, or in connection with them, or any of them, shall not, directly or indirectly, divulge, disclose, disseminate, distribute, license, circulate, publish, use, sell or otherwise make known any Confidential Information to any third party or person or entity not expressly authorized by the Company in advance in writing to receive such Confidential Information. APC shall prevent disclosure of any Confidential Information to any third party and shall exercise the most stringent care and discretion in accordance with APC duty pursuant to this Agreement to prevent any such disclosure.

5.4. Ownership and Reproduction or Translation of Confidential Information. All Confidential Information is and shall remain the property of the Company and may not be reproduced, replicated, recreated, reconstructed, remanufactured, engineered, reverse engineered, copied, translated, compiled, interpreted or decompiled, in any manner whatsoever whether electronic, electromagnetic, electromechanical, mechanical, chemical or photographic without the prior written consent of the Company.

5.5. Removal and Return of Confidential Information. APC shall only remove such original or reproduced, replicated or photocopied Confidential Information from the premises of the Company or any bailee(s) or other place of repository as may be expressly permitted in advance in writing by the Company. APC shall promptly return to the Company all Confidential Information upon the request of the Company and shall not retain any reproductions, replications, photocopies or other copies or renditions of any Confidential Information. APC shall certify in writing to the Company that APC has either returned or destroyed all such reproductions, replications, photocopies or copies or other renditions.

5.6. Prohibition of Use.  APC shall not directly or indirectly make any use whatsoever of Confidential Information or of any feature, specification, detail or other characteristic contained in, or derived from, any Confidential Information, except as may be expressly authorized by the Company in writing.

5.7. Competitive Activities. Any unauthorized use, sale, licensing, marketing, transfer or disclosure of Confidential Information obtained by APC, including information concerning the Confidential Information and any future or proposed activities by the Company or any of the Company’s employees, associates, affiliates, agents, APC or representatives, and the fact that those activities may be considered or in production, as well as any description of the features, specifications, or characteristics of those activities, shall constitute unfair competition and shall be a breach of this Agreement and of APC’s fiduciary duties to the Company.  APC shall not engage in any unfair competition with the Company at any time, whether during or following the completion of the term of this Agreement.

6. Management Power of APC. The business affairs of the Company and the operation of business of the Company shall be conducted by the officers and administrative staff and employees of the Company. It is the intention of the Company not to confer on APC, and APC shall not have, any power of direction, management, supervision or control of the administrative staff or other employees of the Company, or to otherwise be involved with the management of the business of the Company.

7. Authority to Contract. APC shall have no power to, and APC shall not, obligate the Company in any manner whatsoever to any contract, agreement, undertaking, commitment or other obligation.

8. Registration Status of APC. APC is not engaged in the business of effecting transactions in securities for the accounts of others.  APC is not registered with any agency as a broker-dealer, investment advisor or investment manager, and, as a result, is precluded by law from providing to the Company services which would be considered to be those of a broker-dealer, investment advisor or investment manager in connection with the placement, offer or sale of securities. In that regard, APC shall not offer, offer to sell, offer for sale, sell, or induce or attempt to induce the purchase or sale of securities of the Company. None of the services to be provided by APC pursuant to the provisions of this Agreement are intended to be or shall be construed as offering or selling securities, or providing investment, legal or tax advice.  None of the services intended to be provided by APC require registration as a broker-dealer, investment advisor or investment manager.

  

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9. Services of APC Not Exclusive. Subject to the provisions of Section 5.7 of this Agreement, APC may represent, perform services for, and be employed by, any additional persons as APC, in APC’s sole discretion, determines to be necessary or appropriate.

10. Relationship Created. APC is not an employee of the Company for any purpose whatsoever, but is an independent contractor. The Company is interested only in the results obtained by APC. The Company shall not have the right to require APC to collect accounts, investigate customer or shareholder complaints, attend meetings,. All expenses and disbursements, including, but not limited to, those for maintenance, entertainment, office, clerical and general administrative expenses, that may be incurred by APC in connection with this Agreement shall be borne and paid wholly and completely by APC, and the Company shall not be in any way responsible or liable therefore. Consultant further acknowledges the consideration provided hereinabove is a gross amount of consideration and that the Company will not withhold from such consideration any amounts as to income taxes, social security payments or any other payroll taxes.  All such income taxes and other such payment shall be made or provided for by Consultant and the Company shall have no responsibility or duties regarding such matters.

11.  Indemnification

 

a) The Company warrants and represents that all oral communications, written documents or materials furnished to APC by the Company with respect to financial affairs, operations, profitability and strategic planning of the Company are accurate and APC may rely upon the accuracy thereof without independent investigation.  The Company will protect, indemnify and hold harmless Consultant against any claims or litigation including any damages, liability, cost and reasonable attorney's fees as incurred with respect thereto resulting from APC’s communication or dissemination of any said information, documents or materials excluding any such claims or litigation resulting from APC’s communication or dissemination of information not provided or authorized by the Company.

 

b) APC covenants that all oral communications, written documents or materials regarding the Company delivered or furnished by APC to any third party shall be based upon and accurately reflect the information given APC by Company.  APC shall protect, indemnify and hold harmless Company against any claims or litigation including any damages, liability, cost and reasonable attorney's fees as incurred with respect thereto resulting from APC’s communication or dissemination of any information which does not accurately or truthfully reflect the information given by Company to APC.

 

12. Governmental Rules and Regulations. The provisions of this Agreement and the relationship contemplated by the provisions of this Agreement are subject to any and all present and future orders, rules and regulations of any duly constituted authority having jurisdiction of that relationship.

13. Notices. All notices, requests, demands or other communications pursuant to this Agreement shall be in writing or by telex or facsimile transmission and shall be deemed to have been duly given: - (i) on the date of service, if delivered in person or by telex or facsimile transmission (with the telex or facsimile confirmation of transmission receipt serving as confirmation of service when sent and provided telexed or telecopied notices are also mailed by first class, certified or registered mail, postage prepaid); or (ii) 48 hours after mailing by first class, registered or certified mail, postage prepaid, and properly addressed as follows:

  

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If to the Company:

 

840 N. Hollywood Way

2nd Floor

Burbank, CA 91505

Telephone: (310) 601 4598

Faxcimile: (775) 890 3823

        Email: david@ttiiob.com

www.ttiiob.com

If to APC:

Asia Pacific Capital Corporation

123 West Nye Lane, Suite 129

Carson City, NV 89706

Telephone: (949) 335 5920

Facsimile: (949) 335 5130

Email: info@apacapital.com

www.apacapital.com

or at such other address as the party affected may designate in a written notice to such other party in compliance with this paragraph.

14.  Entire Agreement. This Agreement is the final written expression and the complete and exclusive statement of all the agreements, conditions, promises, representations, warranties and covenants between the parties with respect to the subject matter of this Agreement, and this Agreement supersedes all prior or contemporaneous agreements, negotiations, representations, warranties, covenants, understandings and discussions by and between and among the parties, their respective representatives, and any other person, with respect to the subject matter specified in this Agreement. This Agreement may be amended only by an instrument in writing which expressly refers to this Agreement and specifically states that such instrument is intended to amend this Agreement and is signed by each of the parties.

15. Number and Gender. Whenever the singular number is used in this Agreement, and when required by the context, the same shall include the plural, and vice versa; the masculine gender shall include the feminine and neuter genders, and vice versa; and the word "person" shall include Company, firm, trust, estate, joint venture, governmental agency, sole proprietorship, political subdivision, company, congregation, organization, fraternal order, club, league, society, municipality, association, joint stock company, partnership or other form of entity.

16. Execution in Counterparts. This Agreement may be prepared in multiple copies and forwarded to each of the parties for execution. All of the signatures of the parties may be affixed to one copy or to separate copies of this Agreement and when all such copies are received and signed by all the parties, those copies shall constitute one agreement which is not otherwise separable or divisible.

17. Choice of Law and Consent to Jurisdiction. All questions concerning the validity, interpretation or performance of any of the terms, conditions and provisions of this Agreement or of any of the rights or obligations of the parties, shall be governed by, and resolved in accordance with, the U.S. Federal laws, and the laws of the state of Nevada. The parties agree that any appropriate State or United States District Court located in Los Angeles County, California, shall have exclusive jurisdiction over any case or controversy arising hereunder, and shall be the proper forum in which to adjudicate such case or controversy.

18. Assignability. Neither party shall sell, assign, transfer, convey or encumber this Agreement or any right or interest in this Agreement or pursuant to this Agreement, or suffer or permit any such sale, assignment, transfer or encumbrance to occur by operation of law without the prior written consent of the other party.  In the event of any sale, assignment, transfer or encumbrance consented to by such other party, the transferee or such transferee's legal representative shall agree with such other party in writing to assume personally, perform and be obligated by, the covenants, obligations, warranties, representations, terms, conditions and provisions specified in this Agreement.

 

 

  

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19. Force Majeure.  If any party is rendered unable, completely or partially, by the occurrence of an event of "force majeure" (hereinafter defined) to perform such party's obligations created by the provisions of this letter of intent, such party shall give to the other party prompt written notice of the event of "force majeure" with reasonably complete particulars concerning such event; thereupon, the obligations of the party giving such notice, so far as those obligations are affected by the event of "force majeure," shall be suspended during, but no longer than, the continuance of the event of "force majeure." The party affected by such event of "force majeure" shall use all reasonable diligence to resolve, eliminate and terminate the event of "force majeure" as quickly as practicable. The requirement that an event of "force majeure" shall be remedied with all reasonable dispatch as hereinabove specified, shall not require the settlement of strikes, lockouts or other labor difficulties by the party involved, contrary to such party's wishes, and the resolution of any and all such difficulties shall be handled entirely within the discretion of the party concerned. The term “force majeure” as used in this letter of intent shall be defined as and mean any act of God, strike, civil disturbance, lockout or other industrial disturbance, act of the public enemy, war, blockage, public riot, earthquake, tornado, hurricane, lightning, fire, public demonstration, storm, flood, explosion, governmental action, governmental delay, restraint or inaction, unavailability of equipment, and any other cause or event, whether of the type enumerated specifically in this section or otherwise, which is not reasonably within the control of the party claiming such suspension.

20. Consent to Agreement. By executing this Agreement, each party, for himself, represents such party has read or caused to be read this Agreement in all particulars, and consents to the rights, conditions, duties and responsibilities imposed upon such party as specified in this Agreement.

21. APC’s Representations.  In connection with the acceptance of the Common Stock, the Consultant represents and warrants to the Company and FCP, to the best of its actual knowledge, as follows:

 

a. Entirely for Own Account.   Consultant understands that Company is making this Agreement with the Consultant in reliance upon the Consultant's representation to Company, which by the Consultant's execution of this Agreement the Consultant hereby confirms, that the Securities will be acquired for investment for the Consultant's own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Consultant has no present intention of selling, granting any participation in, or otherwise distributing the same.  By executing this Agreement, the Consultant further represents that the Consultant does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the Securities.

 

b. Disclosure of Information.  Consultant has received and reviewed information about the Company and has had an opportunity to discuss the Company’ business, management and financial affairs with its management.  Consultant understands and acknowledges that such discussions, as well as any written information issued by Company, (i) were intended to describe the aspects of the Company’s business and prospects which Company believes to be material, but were not necessarily an exhaustive description, and (ii) may have contained forward-looking statements involving known and unknown risks and uncertainties which may cause Company’s actual results in future periods or plans for future periods to differ materially from what was anticipated and that no representations or warranties were or are being made with respect to any such forward-looking statements or the probability of achieving any of the results projected in any of such forward-looking statements.

 

c. Investment Experience.  The Consultant acknowledges that it is able to fend for itself, can bear the economic risk of its investment and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Securities. Consultant’s acceptance of the Securities as consideration for the Services is reasonable in relation to the Consultant’s net worth, which is in excess of ten (10) times the Consultant’s cost basis in the Shares.  Notwithstanding the foregoing, Consultant represents that it has consulted with independent legal counsel and/or tax, financial and business advisors, to the extent the Consultant deemed necessary.

 

d. Accredited Investor.  The Consultant is an "accredited investor" within the meaning of SEC Rule 501 of Regulation D and a “Purchaser” within the meaning of 25102 (f) (2) of the California Corporate Securities Law of 1968, each as now in effect and shall submit to Company or FCP such further assurances of such status as may be reasonably requested by either.

 

  

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e. Restricted Securities.  The Consultant understands that the Securities it is receiving are characterized as “restricted securities” under the federal securities laws inasmuch as they are being acquired in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the Securities Act of 1933 (the “Act”), only in certain limited circumstances, and not unless the Company has received an opinion of counsel reasonably satisfactory to the Company that such resale or transfer is exempt from the registration requirements of that Act.  In this connection, the Consultant represents that it is familiar with SEC Rule 144, as now in effect, and understands the resale limitations imposed thereby and by the Act.

 

f. Legends.  It is understood that the certificates evidencing the Assigned Optioned Shares may bear one or all of the following legends:

 

 “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT AND/OR APPLICABLE STATE SECURITIES LAWS, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.” and

 

Any legend required by applicable state securities laws.

 

IN WITNESS WHEREOF the parties have executed this Business and Financial Consulting Agreement in duplicate and in multiple counterparts, each of which shall have the force and effect of an original, on the date specified in the preamble of this Agreement.

COMPANY:                                                                           APC:

Dated:  February ______, 2010                                          Dated: February ______, 2010

Tree Top Industries, Inc.                                                       Asia Pacific Capital Corporation

By: /s/ Kathy M. Griffin                                                         By: /s/ Benjamin Tran                         

Kathy M. Griffin                                                                       Benjamin Tran

President                                                                                   Chief Executive Officer

 

 

7Unassociated Document

    Exhibit
10.1

    Execution
Copy

     

    AGREEMENT
AND PLAN OF MERGER

     

    dated as
of

     

    July 16,
2010

     

    by and
among

     

    YMAX
CORPORATION

     

    VOCALTEC
COMMUNICATIONS LTD.

     

    and

     

    VOCALTEC
MERGER SUB, INC.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    	 
      	 
      	 
      	
                                                            Page

                                                          
	 
      	 
      	 
      	 
      
	
                                                            ARTICLE
      1

                                                          
	
                                                            DEFINITIONS

                                                          
	 	 	 	 
	
                                                            Section
      1.01

                                                          	
                                                            Definitions

                                                          	 
      	
                                                            2

                                                          
	
                                                            Section
      1.02

                                                          	
                                                            Other
      Definitional and Interpretative Provisions

                                                          	 
      	
                                                            8

                                                          
	 
      	 
      	 
      	 
      
	
                                                            ARTICLE
      2

                                                          
	
                                                            THE
      MERGER; RELATED ACTIONS

                                                          
	 
      	 
      	 
      	 
      
	
                                                            Section
      2.01

                                                          	
                                                            The
      Merger

                                                          	 
      	
                                                            9

                                                          
	
                                                            Section
      2.02

                                                          	
                                                            Conversion
      of Shares

                                                          	 
      	
                                                            9

                                                          
	
                                                            Section
      2.03

                                                          	
                                                            Surrender
      and Payment

                                                          	 
      	
                                                            10

                                                          
	
                                                            Section
      2.04

                                                          	
                                                            Fractional
      Shares

                                                          	 
      	
                                                            12

                                                          
	
                                                            Section
      2.05

                                                          	
                                                            Withholding
      Rights

                                                          	 
      	
                                                            12

                                                          
	
                                                            Section
      2.06

                                                          	
                                                            Lost
      Certificates

                                                          	 
      	
                                                            12

                                                          
	 
      	 
      	 
      	 
      
	
                                                            ARTICLE
      3

                                                          
	
                                                            THE
      SURVIVING CORPORATION

                                                          
	 
      	 
      	 
      	 
      
	
                                                            Section
      3.01

                                                          	
                                                            Certificate
      of Incorporation and Bylaws

                                                          	 
      	
                                                            12

                                                          
	
                                                            Section
      3.02

                                                          	
                                                            Directors
      and Officers

                                                          	 
      	
                                                            13

                                                          
	 
      	 
      	 
      	 
      
	
                                                            ARTICLE
      4

                                                          
	 
      	 
      	 
      
	
                                                            REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

                                                          
	 
      	 
      	 
      	 
      
	
                                                            Section
      4.01

                                                          	
                                                            Corporate
      Existence and Power

                                                          	 
      	
                                                            13

                                                          
	
                                                            Section
      4.02

                                                          	
                                                            Corporate
      Authorization

                                                          	 
      	
                                                            13

                                                          
	
                                                            Section
      4.03

                                                          	
                                                            No
      Conflict

                                                          	 
      	
                                                            14

                                                          
	
                                                            Section
      4.04

                                                          	
                                                            Governmental
      Authorization

                                                          	 
      	
                                                            14

                                                          
	
                                                            Section
      4.05

                                                          	
                                                            Capitalization

                                                          	 
      	
                                                            15

                                                          
	
                                                            Section
      4.06

                                                          	
                                                            Subsidiaries

                                                          	 
      	
                                                            16

                                                          
	
                                                            Section
      4.07

                                                          	
                                                            Financial
      Statements

                                                          	 
      	
                                                            17

                                                          
	
                                                            Section
      4.08

                                                          	
                                                            Absence
      of Certain Changes or Events.

                                                          	 
      	
                                                            18

                                                          
	
                                                            Section
      4.09

                                                          	
                                                            Finders’
      Fees

                                                          	 
      	
                                                            18

                                                          
	
                                                            Section
      4.10

                                                          	
                                                            Antitakeover
      Laws

                                                          	 
      	
                                                            18

                                                          
	
                                                            Section
      4.11

                                                          	
                                                            Litigation

                                                          	 
      	
                                                            18

                                                          
	
                                                            Section
      4.12

                                                          	
                                                            Employee
      Plans; Labor Matters

                                                          	 
      	
                                                            19

                                                          
	
                                                            Section
      4.13

                                                          	
                                                            Taxes

                                                          	 
      	
                                                            19

                                                          
	
                                                            Section
      4.14

                                                          	
                                                            Insurance

                                                          	 
      	
                                                            20

                                                          
	
                                                            Section
      4.15

                                                          	
                                                            Properties

                                                          	 
      	
                                                            20

                                                          
	
                                                            Section
      4.16

                                                          	
                                                            Intellectual
      Property

                                                          	 
      	
                                                            21

                                                          
	
                                                            Section
      4.17

                                                          	
                                                            Material
      Contracts

                                                          	 
      	
                                                            21

                                                          

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	
                                                  Section
      4.18

                                                	
                                                  Environmental;
      Health and Safety

                                                	 
      	
                                                  22

                                                
	
                                                  Section
      4.19

                                                	
                                                  Interested
      Party Transactions

                                                	 
      	
                                                  22

                                                
	
                                                  Section
      4.20

                                                	
                                                  Compliance
      with Applicable Law; Governmental Authorizations

                                                	 
      	
                                                  22

                                                
	
                                                  Section
      4.21

                                                	
                                                  No
      Reliance

                                                	 
      	
                                                  23

                                                
	 
      	 
      	 
      	 
      
	
                                                  ARTICLE
      5

                                                
	
                                                  REPRESENTATIONS
      AND WARRANTIES OF PARENT

                                                
	 
      	 
      	 
      	 
      
	
                                                  Section
      5.01

                                                	
                                                  Corporate
      Existence and Power

                                                	 
      	
                                                  23

                                                
	
                                                  Section
      5.02

                                                	
                                                  Corporate
      Authorization

                                                	 
      	
                                                  23

                                                
	
                                                  Section
      5.03

                                                	
                                                  Governmental
      Authorization

                                                	 
      	
                                                  24

                                                
	
                                                  Section
      5.04

                                                	
                                                  Capitalization

                                                	 
      	
                                                  24

                                                
	
                                                  Section
      5.05

                                                	
                                                  Subsidiaries

                                                	 
      	
                                                  25

                                                
	
                                                  Section
      5.06

                                                	
                                                  SEC
      Filings

                                                	 
      	
                                                  25

                                                
	
                                                  Section
      5.07

                                                	
                                                  Financial
      Statements

                                                	 
      	
                                                  26

                                                
	
                                                  Section
      5.08

                                                	
                                                  Finders’
      Fees

                                                	 
      	
                                                  26

                                                
	
                                                  Section
      5.09

                                                	
                                                  Antitakeover
      Laws

                                                	 
      	
                                                  27

                                                
	
                                                  Section
      5.10

                                                	
                                                  Grants,
      Incentives and Subsidies

                                                	 
      	
                                                  27

                                                
	
                                                  Section
      5.11

                                                	
                                                  Foreign
      Corrupt Practices Act

                                                	 
      	
                                                  27

                                                
	
                                                  Section
      5.12

                                                	
                                                  Employee
      Plans; Labor Matters

                                                	 
      	
                                                  27

                                                
	
                                                  Section
      5.13

                                                	
                                                  Litigation

                                                	 
      	
                                                  28

                                                
	
                                                  Section
      5.14

                                                	
                                                  Taxes

                                                	 
      	
                                                  28

                                                
	
                                                  Section
      5.15

                                                	
                                                  Insurance

                                                	 
      	
                                                  29

                                                
	
                                                  Section
      5.16

                                                	
                                                  Properties

                                                	 
      	
                                                  29

                                                
	
                                                  Section
      5.17

                                                	
                                                  Intellectual
      Property

                                                	 
      	
                                                  30

                                                
	
                                                  Section
      5.18

                                                	
                                                  Environmental
      Health and Safety

                                                	 
      	
                                                  30

                                                
	
                                                  Section
      5.19

                                                	
                                                  No
      Reliance

                                                	 
      	
                                                  30

                                                
	 
      	 
      	 
      	 
      
	
                                                  ARTICLE
      6

                                                
	
                                                  COVENANTS
      OF THE COMPANY

                                                
	 
      	 
      	 
      	 
      
	
                                                  Section
      6.01

                                                	
                                                  Indemnification
      Agreements and D&O insurance

                                                	 
      	
                                                  31

                                                
	
                                                  Section
      6.02

                                                	
                                                  Form
      6-K; Public Announcements; Management

                                                	 
      	
                                                  31

                                                
	
                                                  Section
      6.03

                                                	
                                                  Filing
      of Registration Statement; Extension of Exercise Period of Current Option
      Holders

                                                	 
      	
                                                  32

                                                
	 
      	 
      	 
      	 
      
	
                                                  ARTICLE
      7

                                                
	
                                                  CONDITIONS
      TO THE MERGER

                                                
	 
      	 
      	 
      	 
      
	
                                                  Section
      7.01

                                                	
                                                  Conditions
      to the Obligations of Each Party

                                                	 
      	
                                                  32

                                                
	
                                                  Section
      7.02

                                                	
                                                  Conditions
      to the Obligations of Parent and Merger Subsidiary

                                                	 
      	
                                                  33

                                                
	
                                                  Section
      7.03

                                                	
                                                  Conditions
      to the Obligations of the Company

                                                	 
      	
                                                  33

                                                
	 
      	 
      	 
      	 
      
	
                                                  ARTICLE
      8

                                                
	
                                                  MISCELLANEOUS

                                                
	 
      	 
      	 
      	 
      
	
                                                  Section
      8.01

                                                	
                                                  Notices

                                                	 
      	
                                                  34

                                                

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  Section
      8.02

                	
                  Survival
      of Representations, Warranties and Agreements

                	 
      	
                  35

                
	
                  Section
      8.03

                	
                  Amendments
      and Waivers

                	 
      	
                  35

                
	
                  Section
      8.04

                	
                  Expenses

                	 
      	
                  35

                
	
                  Section
      8.05

                	
                  Binding
      Effect; Benefit; Assignment

                	 
      	
                  35

                
	
                  Section
      8.06

                	
                  Governing
      Law

                	 
      	
                  36

                
	
                  Section
      8.07

                	
                  Jurisdiction

                	 
      	
                  36

                
	
                  Section
      8.08

                	
                  Waiver
      of jury trial

                	 
      	
                  36

                
	
                  Section
      8.09

                	
                  Counterparts;
      Effectiveness

                	 
      	
                  36

                
	
                  Section
      8.10

                	
                  Entire
      Agreement

                	 
      	
                  37

                
	
                  Section
      8.11

                	
                  Severability

                	 
      	
                  37

                
	
                  Section
      8.12

                	
                  Specific
      Performance

                	 
      	
                  37

                
	
                  Section
      8.13

                	
                  Disclosure
      Schedule References

                	
                    

                	
                  37

                

        

      

    

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

    List of
Exhibits

    

    Exhibit A
– Certificate of Merger

    Exhibit B
– Exchange Agent Agreement

    Exhibit C
– Irrevocable Instructions to Exchange Agent

    Exhibit D
– Letter of Transmittal

    Exhibit E
– Affidavit of Lost Certificate and Indemnity

    Exhibit F
– Form 6-K

    Exhibit G
– Press Release

    Exhibit H
– Amendment to Parent's Articles of Association

    Exhibit I
- Resignation Letter

    Exhibit J
– Registration Rights Agreement

    
      Exhibit K
– Listing Application

    

    
      
         

      

      
        iv

        
          

        

      

      
         

      

    

    AGREEMENT
AND PLAN OF MERGER

     

    AGREEMENT
AND PLAN OF MERGER (this “Agreement”) dated as of July
16, 2010 among YMAX CORPORATION, a Delaware corporation (the “Company”), VocalTec
Communications Ltd., a company organized under the laws of the State of Israel
(“Parent”) and VocalTec
Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent
(“Merger
Subsidiary”).

     

    WITNESSETH:

     

    WHEREAS,
the Board of Directors of the Company has: (a) determined that the merger of
Merger Subsidiary with and into the Company (the “Merger”) upon the terms and
subject to the conditions set forth herein is advisable; (b) approved this
Agreement and the Merger hereunder; and (c) recommended that the Stockholders of
the Company approve this Agreement and each of the transactions contemplated
hereby, including the Merger; and

     

    WHEREAS,
the Board of Directors of the Merger Subsidiary has: (a) determined that the
Merger upon the terms and subject to the conditions set forth herein is
advisable; (b) approved this Agreement and the Merger hereunder; and (c)
recommended that the sole Stockholder of the Merger Subsidiary approve this
Agreement and each of the transactions contemplated hereby, including the
Merger; and

     

    WHEREAS,
the Board of Directors of Parent has approved this Agreement;

     

    WHEREAS,
the Stockholders of each of the Company and the Merger Subsidiary have approved the Merger
and this Agreement, by means of an action by written consent of their respective
Required Stockholders Vote (the "Company Stockholders Written
Consent" and the "Merger
Subsidiary Stockholders Written Consent", respectively); and

     

    WHEREAS,
(i) immediately prior to execution of this Agreement, the Parent's Board of
Directors has approved and the Parent has effected a 1-for-5 reverse split (the
"Reverse Split") of the
issued and outstanding shares of Parent Common Stock, resulting in (i) the
number of the issued and outstanding shares of Parent Common Stock being reduced
by dividing the number of such issued and outstanding shares immediately prior
to the Reverse Split by five and the par value of such shares being multiplied
by five and (ii) the number of shares of Parent Common Stock underlying
outstanding options and warrants being divided by five and the exercise price of
each share of Parent Common Stock underlying such options or warrants being
multiplied by five, and (ii) immediately after effecting the Reverse Split, the
Parent's articles of association were amended as set forth in Exhibit H.

     

    NOW,
THEREFORE, in consideration of the foregoing and the respective representations,
warranties, covenants and agreements herein contained, and intending to be
legally bound hereby, the parties hereto agree as follows:

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    ARTICLE
1

    DEFINITIONS

     

    Section
1.01              Definitions

     

    (a)               As
used herein, the following terms have the following meanings:

     

    “Affiliate” means, with respect
to any Person, any other Person directly or indirectly controlling, controlled
by, or under common control with such Person.  As used in this
definition, the term “control” (including the terms “controlling,” “controlled
by” and “under common control with”) means possession, directly or indirectly,
of the power to direct or cause the direction of the management or policies of a
Person, whether through the ownership of voting securities, by contract or
otherwise.

     

    “Applicable Law” means, with
respect to any Person, any international, national, federal, state, local,
municipal or other law (statutory, common or otherwise), constitution, treaty,
convention, ordinance, code, rule, regulation, order, injunction, judgment,
decree or other ruling or requirement issued, enacted, adopted, promulgated,
implemented or otherwise applied by, or under the authority of, any Governmental
Authority of competent jurisdiction that is binding upon or applicable to such
Person, as amended unless expressly specified otherwise, and any orders, writs,
injunctions, awards, judgments and decrees, applicable to such Person or any of
its Subsidiaries, to any of their respective assets, properties or
businesses.

     

    “Business Day” means a day,
other than Saturday, Sunday or any other day on which commercial banks in New
York, New York, or in the State of Israel are authorized or required by
Applicable Law to close.

     

    “Code” means the U.S. Internal
Revenue Code of 1986.

     

    “Company Balance Sheet” means
the audited consolidated balance sheet of the Company and its Subsidiaries as of
December 31, 2009 and the notes thereto.

     

    “Company Material Adverse
Effect” means any change, effect, event, occurrence, condition,
development or state of facts that: (i) has a material adverse effect on the
business,  assets, results of operations or financial condition of the
Company and its Subsidiaries, taken as a whole, or (ii) would prevent the
Company from consummating the transactions contemplated by this Agreement; other
than, with respect to sub-section (i) hereof, any change, effect, event,
occurrence, condition, development or state of facts arising from or relating
to: (A) any action taken by the Company or any of its Subsidiaries as
contemplated or permitted by this Agreement, (B) the negotiation, announcement,
execution, pendency or performance of this Agreement, or the consummation of the
Merger (including the impact thereof on the relationship, contractual or
otherwise, of the Company and its Subsidiaries with their respective employees,
customers, suppliers, partners, or distributors), (C) changes in general
worldwide, U.S. or Israeli market or economic conditions (including prevailing
interest rate, exchange rate and stock market levels), except to the extent
disproportionately affecting the Company and its Subsidiaries compared to other
similarly situated companies or businesses operating in any such countries or
regions, (D) changes generally affecting the industries in which the Company
operates, except to the extent disproportionately affecting the Company and its
Subsidiaries compared to other similarly situated participants in such
industries, (E) any declaration of war by or against, or an escalation of
hostilities involving, or an act of terrorism against, any country where the
Company or its major sources of supply have material operations or where the
Company or any of its Subsidiaries has sales, except to the extent
disproportionately affecting the Company and its Subsidiaries compared to other
companies or businesses operating in any such country (and other than such
effect that causes any damage or destruction to, or renders physically unusable,
any facility or property of the Company or any of its Subsidiaries or otherwise
disrupts in any material manner the business or operations of the Company or any
of its Subsidiaries), or (F) changes in Applicable Law or GAAP, or changes
in general legal, regulatory or political conditions.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    “Company Owned IP” means each
item of material Intellectual Property owned by the Company or any of its
Subsidiaries.

     

    “Company Stock” means the
shares of common stock, par value $0.01 per share, of the Company.

     

    “Delaware Law” means the
General Corporation Law of the State of Delaware.

     

    “Employee Plan” means, with respect to any
Person, (i) each “employee benefit plan” as defined in Section 3(3) of ERISA,
(ii) each employment or consultancy agreement with each executive officer or
employee or consultant having a scope of responsibilities similar to executive
officers in companies of the size and nature of business similar to the relevant
Person and (iii) each other plan, policy, agreement or arrangement providing for
compensation, bonuses, profit-sharing, stock option or other equity-based
compensation or other forms of incentive or deferred compensation, vacation
benefits, insurance (including any self-insured arrangements), medical, dental,
vision or prescription benefits, disability or sick leave benefits, life
insurance, workers’ compensation, supplemental unemployment benefits, severance
benefits and post-employment, retirement or pension benefits (including
compensation, pension, health, medical or life insurance benefits); in each
case, that is maintained, administered, sponsored or contributed to, by such
Person, any of its Subsidiaries or any of their respective ERISA Affiliates and
covers any current or former director, officer or employee of such Person or any
of its Subsidiaries or with respect to which such Person or any of its
Subsidiaries has any material liability.

     

    “ERISA” means the U.S. Employee
Retirement Income Security Act of 1974.

     

    “ERISA Affiliate” of any entity
means any other entity that, together with such entity, would be treated as a
single employer under Section 414 of the Code.

     

    “FCPA” means the U.S. Foreign
Corrupt Practices Act of 1977, as amended, and the rules and regulations
thereunder.

     

    “GAAP” means generally accepted
accounting principles in the United States.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    “Governmental Authority” means
(i) any government or any state, department, local authority or other political
subdivision thereof, (ii) any governmental body, agency, authority (including
any central bank, Taxing Authority or transgovernmental or supranational entity
or authority), minister or instrumentality (including any court or tribunal)
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government, and(iii) NASDAQ.

     

    “Governmental Authorizations”
means, with respect to any Person, all licenses, permits (including construction
permits), certificates, waivers, consents, franchises (including similar
authorizations or permits), exemptions, variances, expirations and terminations
of any waiting period requirements and other authorizations and approvals issued
to such Person by or obtained by such Person from any Governmental Authority, or
of which such Person has the benefit under any Applicable Law.

     

    “Hazardous Substance” means any
pollutant, contaminant, waste or chemical or any toxic, radioactive, ignitable,
corrosive, reactive or otherwise hazardous substance, waste or material, or any
substance, waste or material having any constituent elements displaying any of
the foregoing characteristics that is designated, defined or regulated by any
Governmental Authority as “hazardous,” “extremely hazardous,” “toxic,” a
“pollutant” or a “contaminant,” including petroleum and its derivatives and
by-products, natural gas and other hydrocarbons and asbestos-containing
materials.

     

    “Intellectual Property” means
any and all intellectual property rights and all rights associated therewith,
including, without limitation, rights in or arising out of: (i) all United
States, international and foreign patents and applications therefor and all
reissues, divisions, renewals, extensions, continuations and
continuations-in-part thereof, (ii) all trade secrets and proprietary
information, (iii) all copyrights, copyright registrations and applications
therefor, and all other rights corresponding thereto throughout the world, (iv)
all industrial designs and any registrations and applications therefor
throughout the world, (v) all mask works and any registrations and applications
therefor throughout the world, (vi) all trade names, trade dress, logos,
registered Internet domain names, common law trademarks and service marks,
trademark and service mark registrations and applications therefor throughout
the world, and (vii) any equivalent rights to any of the foregoing throughout
the world.

     

    “ISA” means the Israel
Securities Authority.

     

    “Israeli Securities Law” means
the Israeli Securities Law 1968.

     

    “Knowledge” of a Person means
the actual knowledge of any executive officer of such Person who is responsible
for such matter in the ordinary course of his or her duties. Reference to
knowledge shall also include any knowledge of any fact, circumstance, event or
other matter or information which a Person would be reasonably expected to have
if that Person had made reasonable inquiries. Without limiting the foregoing,
"Knowledge" of Parent shall mean the Knowledge of each of Ido Gur and Joshua
Di-nur and "Knowledge" of Company shall mean the Knowledge of each of Daniel
Borislow and Peter Russo.

     

    “Lien” means, with respect to
any property or asset, any mortgage, lien, pledge, security interest or
encumbrance in respect of that property or asset.  For purposes of
this Agreement, a Person shall be deemed to own subject to a Lien any property
or asset that it has acquired or holds subject to the interest of a vendor or
lessor under any conditional sale agreement, capital lease or other title
retention agreement relating to such property or asset.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    “NASDAQ” means The NASDAQ Stock
Market.

     

    “1933 Act” means the U.S.
Securities Act of 1933.

     

    “1934 Act” means the U.S.
Securities Exchange Act of 1934.

     

    “Parent Financial Statements”
means the consolidated financial statements of Parent and its Subsidiaries as of
and for the year ended December 31, 2009, and the footnotes therein, all as set
forth in Parent 20-F.

     

    “Parent Common Stock” means
ordinary shares, par value NIS 0.65 per share, of Parent (which par value
reflects the Reverse Split).

     

    “Parent Material Adverse
Effect” means any change, effect, event, occurrence, condition,
development or state of facts that:  (i) has a material adverse effect
on the business, assets, results of operations or financial condition of Parent
and its Subsidiaries, taken as a whole, or, (ii) would prevent Parent from
consummating the transactions contemplated by this Agreement; other than, with
respect to sub-section (i) hereof, any change, effect, event, occurrence,
condition, development or state of facts arising from or relating to: (A) any
action taken by Parent or any of its Subsidiaries as contemplated or permitted
by this Agreement, (B) the negotiation, announcement, execution, pendency or
performance of this Agreement, or the consummation of the Merger (including the
impact thereof on the relationship, contractual or otherwise, of Parent and its
Subsidiaries with their respective employees, customers, suppliers, partners, or
distributors), (C) changes in general worldwide, U.S. or Israeli market or
economic conditions (including prevailing interest rate, exchange rate and stock
market levels), except to the extent disproportionately affecting Parent and its
Subsidiaries compared to other similarly situated companies or businesses
operating in any such countries or regions, (D) changes generally affecting the
industries in which Parent operates, except to the extent disproportionately
affecting Parent and its Subsidiaries compared to other similarly situated
participants in such industries, (E) any declaration of war by or against, or an
escalation of hostilities involving, or an act of terrorism against, any country
where Parent or its major sources of supply have material operations or where
Parent or any of its Subsidiaries has sales, except to the extent
disproportionately affecting Parent and its Subsidiaries compared to other
companies or businesses operating in any such country (and other than such
effect that causes any damage or destruction to, or renders physically unusable,
any facility or property of Parent or any of its Subsidiaries or otherwise
disrupts in any material manner the business or operations of Parent or any of
its Subsidiaries, and (F) changes in Applicable Law or GAAP, or changes in
general legal, regulatory or political conditions.

     

    “Parent 20-F” means Parent’s
annual report on Form 20-F for the fiscal year ended December 31, 2009, filed
with the SEC on May 12, 2010.

     

    “Parent Owned IP” means each
item of material Intellectual Property owned by Parent or any of its
Subsidiaries.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    “Permitted Liens” means (i)
Liens set forth or adequately provided for in the Company Financial Statements
or Parent Financial Statements, as applicable, (ii) Liens for Taxes not yet due
or being contested in good faith, (iii) landlord’s, mechanic’s,
materialman’s, carrier’s, repairer’s and other similar Liens arising or incurred
in the ordinary course of business or not yet due or being contested in good
faith , and (iv) Liens that do not materially interfere with the use of the
property or assets to which such Lien relates.

     

    “Person” means an individual,
corporation, partnership, limited liability company, association, trust or other
entity or organization, including a Governmental Authority.

     

    “Representatives” means, with
respect to any Person, the directors, officers, financial advisors, attorneys,
accountants, agents and other authorized representatives of that Person, acting
in such capacity.

     

    “Required Stockholders Vote”
means, with respect to each resolution of the Stockholders of Parent, Merger
Subsidiary or Company, the majority required to approve such
resolution.

     

    “Sarbanes-Oxley Act” means the
U.S. Sarbanes-Oxley Act of 2002.

     

    “SEC” means the U.S. Securities
and Exchange Commission.

     

    “Stockholder” means a Person
holding shares of common stock or preferred stock in a company.

     

    “Subsidiary” means, with
respect to any Person, any entity of which securities or other ownership
interests having voting power to elect a majority of the board of directors or
other persons performing similar functions are at any time, directly or
indirectly, owned by such Person.

     

    “Tax” means (i) any tax,
governmental fee or other like assessment or charge of any kind whatsoever
(including withholding on amounts paid to or by any Person), together with any
interest, penalty, addition to tax or additional amount imposed by any
Governmental Authority (a “Taxing Authority”) responsible
for the imposition of any such tax (domestic or foreign), and any liability for
any of the foregoing as transferee, (ii) in the case of a Person or any of its
Subsidiaries, liability for the payment of any amount of the type described in
clause (i) as a result of being or having been before the Effective Time a
member of an affiliated, consolidated, combined or unitary group, or a party to
any agreement or arrangement, as a result of which liability of such Person or
any of its Subsidiaries to a Taxing Authority is determined or taken into
account with reference to the activities of any other Person, and (iii)
liability of the Person or any of its Subsidiaries for the payment of any amount
as a result of being party to any Tax Sharing Agreement or with respect to the
payment of any amount imposed on any Person of the type described in (i) or (ii)
as a result of any existing express or implied agreement or arrangement
(including an indemnification agreement or arrangement).

     

    “Tax Return” means any report,
return, document, declaration or other information or filing required to be
supplied to any Taxing Authority with respect to Taxes, including information
returns, any documents with respect to or accompanying payments of estimated
Taxes, or with respect to or accompanying requests for the extension of time in
which to file any such report, return, document, declaration or other
information.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    “Tax Sharing Agreements” means
all existing agreements or arrangements (whether or not written) binding a
Person or any of its Subsidiaries that provide for the allocation,
apportionment, sharing or assignment of any Tax liability or benefit, or the
transfer or assignment of income, revenues, receipts, or gains for the purpose
of determining any Person’s Tax liability.

     

    “Third Party” means any Person,
including as defined in Section 13(d) of the 1934 Act, other than Parent or any
of its Affiliates or Representatives.

     

    Each of
the following terms is defined in the Section set forth opposite such
term:

     

    
      
        
          	
                  Term

                	 
      	
                  Section

                
	
                  Agreement

                	 
      	
                  Preamble

                
	
                  Balance
      Sheet Date

                	 
      	
                  ‎Section
      4.07(a)

                
	
                  Certificates

                	 
      	
                  ‎Section
      2.03(a)

                
	
                  Certificate
      of Merger

                	 
      	
                  ‎Section
      2.01(b)

                
	
                  Closing

                	 
      	
                  ‎Section
      2.01(c)

                
	
                  Closing
      Date

                	 
      	
                  ‎Section
      2.01(c)

                
	
                  Company

                	 
      	
                  Preamble

                
	
                  Company
      Disclosure Schedule

                	 
      	
                  ‎Article
      4

                
	
                  Company
      Financial Statements

                	 
      	
                  ‎Section
      4.07(a)

                
	
                  Effective
      Time

                	 
      	
                  ‎Section
      2.01(d)

                
	
                  Exchange
      Agent

                	 
      	
                  ‎Section
      2.03(a)

                
	
                  Grants

                	 
      	
                  ‎Section
      5.10

                
	
                  Letter
      of Transmittal

                	 
      	
                  ‎Section
      2.03(a)

                
	
                  Merger

                	 
      	
                  Preamble

                
	
                  Merger
      Consideration

                	 
      	
                  ‎Section
      2.02(a)

                
	
                  Merger
      Subsidiary

                	 
      	
                  Preamble

                
	
                  Parent

                	 
      	
                  Preamble

                
	
                  Parent
      Disclosure Schedule

                	 
      	
                  ‎Article
      5

                
	
                  Parent
      SEC Documents

                	 
      	
                  ‎Section
      5.06(a)

                
	
                  Allocation
      Certificate

                	 
      	
                  ‎Section
      4.05(f)

                
	
                  Surviving
      Corporation

                	 
      	
                  ‎Section
      2.01(a)

                
	
                  Tax
      Items

                	 
      	
                  ‎Section
      4.13(a)

                

        

      

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    Section
1.02              Other Definitional and
Interpretative Provisions.

     

    The words
“hereof,” “herein” and “hereunder” and words of like import used herein shall
refer to this Agreement as a whole and not to any particular provision of this
Agreement.  The captions herein are included for convenience of
reference only and shall be ignored in the construction or interpretation
hereof.  References to Articles, Sections, Annexes, Exhibits and
Schedules are to Articles, Sections, Annexes, Exhibits and Schedules of this
Agreement unless otherwise specified.  All Exhibits and Schedules
annexed hereto or referred to herein are hereby incorporated in and made a part
of this Agreement as if set forth in full herein.  Any capitalized
terms used in any Annex, Exhibit or Schedule but not otherwise defined therein,
shall have the meaning as defined herein.  Any singular term herein
shall be deemed to include the plural, and any plural term the
singular.  Whenever the words “include,” “includes” or “including” are
used herein, they shall be deemed to be followed by the words “without
limitation,” whether or not they are in fact followed by those words or words of
like import.  “Writing,” “written” and comparable terms refer to
printing, typing and other means of reproducing words (including electronic
media) in a visible form.  References to any statute are to that
statute, as amended from time to time, and to the rules and regulations
promulgated thereunder.  References to any specific agreement or
contract are to that agreement or contract as amended, modified or supplemented
prior to the date hereof in accordance with the terms
thereof.  References to “$” and “dollars” are to the currency of the
United States.  References to NIS are to the currency of the State of
Israel.  References to any Person include the successors and permitted
assigns of that Person.  References from or through any date mean,
unless otherwise specified, from and including or through and including,
respectively.  References to “law,” “laws” or to a particular statute
or law shall be deemed also to include any Applicable Law.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    ARTICLE
2

    The
Merger; Related Actions

     

    Section
2.01              The Merger.

     

    (a)               Upon
the terms and subject to the conditions set forth herein, in the Certificate of
Merger filed pursuant to ‎Section 2.01‎(d) and the
Delaware Law, at the Effective Time, Merger Subsidiary shall be merged (the
“Merger”) with and into
the Company in accordance with Delaware Law, whereupon the separate existence of
Merger Subsidiary shall cease and the Company shall be the surviving corporation
in the Merger under the name YMax Corporation (the “Surviving
Corporation”).

     

    (b)               The
Merger shall have the effects set forth in this Agreement, in the Certificate of
Merger and in the Delaware Law. Without limiting the generality of the
foregoing, and subject thereto, from and after the Effective Time, the Surviving
Corporation shall possess all the rights, powers, privileges and franchises and
be subject to all of the obligations, liabilities, restrictions and disabilities
of the Company and Merger Subsidiary, all as provided under the applicable
provisions of Delaware Law.

     

    (c)               The
consummation of the Merger (the “Closing”) shall take place (i)
via an electronic closing in which separate counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument, will first be delivered by a facsimile or electronic mail exchange
of signature pages, with originals to follow by reputable overnight courier
addressed to each party’s counsel and (ii) immediately after execution of this
Agreement, subject to satisfaction or waiver of the last to be satisfied or
waived of the conditions to the Merger set forth in ‎Article 7 (the
date upon which the Closing occurs, the “Closing Date”).

     

    (d)               At
the Closing, the Company and Merger Subsidiary shall file a certificate of
merger with the Delaware Secretary of State, in the form attached hereto as
Exhibit
A (the "Certificate of
Merger") and make all other filings or recordings required by Delaware
Law in connection with the Merger. The Merger shall become effective at such
time as the Certificate of Merger is duly filed with the Delaware Secretary of
State the “Effective
Time”).

     

    Section
2.02              Conversion of
Shares.  At the Effective Time:

     

    (a)               except
as otherwise provided in ‎Section 2.02‎(b) and ‎Section 2.02‎(c), each share of
Company Stock outstanding immediately prior to the Effective Time shall be
converted into the right to receive 0.10 share of Parent Common Stock,
reflecting the Reverse Split (with any fractional shares of Parent Common Stock
resulting from the foregoing conversion being rounded up, the “Merger Consideration”). The
allocation of Merger Consideration to Company Stockholders shall be performed by
Parent based and in complete reliance on the certificate (the "Allocation Certificate")
provided by the Company to Parent concurrently with this Agreement, and the
Company represents that the Allocation Certificate is true and correct in all
respects. The Company represents that the Allocation Certificate sets forth
accurately and completely all of the following information: (i) the names of all
the Company Stockholders and their respective addresses; (ii) the number of
shares of Company Stock held by such Persons (which constitutes the entire
ownership interest of such Person in the issued and outstanding Company Stock or
voting securities of the Company as of the date hereof) and the respective
certificate numbers; and (iii) the number of shares of Parent Common Stock
issuable to such Person out of the Merger Consideration. Parent shall have no
obligation to examine the accuracy of, nor any liability with respect to the
allocation of Merger Consideration performed in accordance with, the Allocation
Certificate;

    
      
         

      

      
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    (b)               any
Company Stock held by the Company immediately prior to the Effective Time shall
be canceled, and no payment shall be made with respect thereto;

     

    (c)               each
share of Company Stock held by Parent, Merger Subsidiary and any other wholly
owned Subsidiary of Parent immediately prior to the Effective Time shall be
canceled, and no payment shall be made with respect thereto; and

     

    (d)               each
share of Common Stock of Merger Subsidiary outstanding immediately prior to the
Effective Time shall be converted into and become one share of common stock of
the Surviving Corporation, with the same rights, powers and privileges as the
shares so converted and shall constitute the only outstanding shares of capital
stock of the Surviving Corporation.

     

    Section
2.03              Surrender and
Payment.

     

    (a)               Parent
has appointed American Stock Transfer & Trust Company (the “Exchange Agent”) for the
purpose of exchanging for the Merger Consideration certificates representing
shares of Company Stock (the “Certificates”), in accordance
with the Exchange Agent Agreement, a copy of which is attached hereto as Exhibit
B.  At the Effective Time, Parent shall provide to the Exchange
Agent irrevocable instructions, in the form attached hereto as Exhibit
C, with respect to the issuance of the Merger Consideration upon
surrender of Certificates and properly completed Letters of
Transmittal.  Promptly after the Effective Time, and in any event
within two Business Days thereafter, the Exchange Agent will send, to each
holder of Company Stock at the Effective Time, in accordance with the list which
was provided by the Company to Parent concurrently with this Agreement (the
“Shareholders List”), a
letter of transmittal, which will include Form W-8 and W-9 (the “Letter of Transmittal”) in the
form attached hereto as Exhibit
D. The Letter of Transmittal shall be sent to Company Stockholders in
complete reliance on the Shareholders List and Parent shall not
take any action to confirm its accuracy. Parent shall have no liability with
respect to incorrect addresses listed on the Shareholders List, and all
liability thereof shall be borne by the Company.

     

    (b)               Each
holder of shares of Company Stock that have been converted into the right to
receive the Merger Consideration shall be entitled to receive, upon surrender to
the Exchange Agent of a Certificate, together with a properly completed Letter
of Transmittal (including the Form W-8 or W-9, as applicable), the Merger
Consideration in respect of each share of Company Stock represented by such
Certificate.  The shares of Parent Common Stock constituting the
Merger Consideration shall be issued in physical certificates, which shall carry
a legend in substantially the following form:

    
      
         

      

      
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    "THE
SHARES EVIDENCED HEREBY WERE ISSUED IN TRANSACTIONS EXEMPT FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY ONLY BE
TRANSFERRED (I) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR
(II) IN A TRANSACTION EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE ACT, AND IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS OF
ANY STATE OF THE UNITED STATES."

    

    Until so
surrendered or transferred, as the case may be, each Certificate shall represent
after the Effective Time for all purposes only the right to receive such Merger
Consideration upon surrendering the Certificate and a fully completed Letter of
Transmittal of the holder of such Certificate. To the extent a holder of shares
of Company Stock fails to deliver to the Exchange Agent a complete Form W-9 or
W-8, as applicable, such holder shall be required, as a condition to receiving
the Merger Consideration, to deposit with the Exchange Agent an amount equal in
cash to the withholding liability applicable to the Merger Consideration payable
to such holder, which amount shall be determined by Parent.

     

    (c)               No
portion of the Merger Consideration shall be paid to anyone but the Person in
whose name the surrendered Certificate is registered.

     

    (d)               After
the Effective Time, there shall be no further registration of transfers of
Company Stock outstanding immediately prior to the Effective
Time.  If, after the Effective Time, Certificates are presented to the
Surviving Corporation, they shall be canceled and exchanged for the Merger
Consideration in accordance with the procedures set forth in this ‎Article 2;
provided that in no event shall the Merger Consideration exceed 10,562,895
shares of Parent Common Stock (reflecting the Reverse Split).

     

    (e)               Any
portion of the Merger Consideration made available to the Exchange Agent
pursuant to ‎Section 2.03‎(a) that remains
unclaimed by the holders of Company Stock six months after the Effective Time
shall be returned to Parent, upon demand, and any such holder who has not
exchanged such shares for the Merger Consideration in accordance with this ‎Section 2.03 prior
to that time shall thereafter look only to Parent for payment of the Merger
Consideration in respect of such Company Stock.  Notwithstanding the
foregoing, Parent shall not be liable to any holder of Company Stock for any
amounts properly paid to a public official pursuant to applicable abandoned
property, escheat or similar laws.  Any amounts remaining unclaimed by
holders of Company Stock two years after the Effective Time (or such earlier
date immediately prior to such time when the amounts would otherwise escheat to
or become property of any Governmental Authority) shall become, to the extent
permitted by Applicable Law, the property of Parent free and clear of any claims
or interest of any Person previously entitled thereto.

     

    (f)               No
dividends or other distributions with respect to Parent Common Stock
constituting part of the Merger Consideration shall be paid to the holder of any
Certificates not surrendered until such Certificates are surrendered or
transferred, as the case may be, together with all other required documents as
provided in this ‎Section
2.03.  Following such surrender or transfer, there shall be paid,
without interest, to the Person in whose name the shares of Parent Common Stock
have been registered, (i) at the time of such surrender or transfer, the amount
of all dividends or other distributions with a record date after the Effective
Time previously paid with respect to such shares, and (ii) at the appropriate
payment date, the amount of dividends or other distributions payable with
respect to such shares with a record date after the Effective Time and prior to
surrender or transfer, and with a payment date subsequent to surrender or
transfer.

    
      
         

      

      
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    Section
2.04              Fractional
Shares.

     

    No
fractional shares of Parent Common Stock shall be issued in the
Merger.  All fractional shares of Parent Common Stock that a holder of
Company Stock would otherwise be entitled to receive as a result of the Merger
shall be aggregated and if a fractional share results from such aggregation,
such fractional share shall be rounded up to the nearest whole
share.

     

    Section
2.05              Withholding
Rights.

     

    Each of
the Exchange Agent, Parent and the Surviving Corporation shall be entitled to
deduct and withhold from the consideration otherwise payable to any holder of
Company Stock pursuant to this ‎Article 2 such
amounts as it is required to deduct and withhold with respect to the making of
such payment under any provision of Tax law or any other Applicable
Law.

     

    Section
2.06              Lost
Certificates.

     

    If any
Certificate shall have been lost, stolen or destroyed, upon the making of an
affidavit in the form attached hereto as Exhibit
E of that fact by the Person claiming such Certificate to be lost, stolen
or destroyed and, if required by the Surviving Corporation or the Exchange
Agent, the posting by such Person of a bond, in such reasonable amount as the
Exchange Agent, Parent or the Surviving Corporation may direct, as indemnity
against any claim that may be made against the Exchange Agent, Parent or the
Surviving Corporation with respect to such Certificate, the Exchange Agent shall
pay, in exchange for such lost, stolen or destroyed Certificate, the Merger
Consideration to be paid in respect of the Company Stock represented by such
Certificate, as contemplated by this ‎Article
2.

    

    ARTICLE
3

    The
Surviving Corporation

     

    Section
3.01              Certificate of Incorporation and
Bylaws.

     

    By virtue
of the Merger and without any action on the part of the Merger Subsidiary or the
Company, the Certificate of Incorporation of the Company in effect at the
Effective Time shall be the Certificate of Incorporation of the Surviving
Corporation, and the Bylaws of Merger Subsidiary as in effect immediately prior
to the Effective Time shall be the Bylaws of the Surviving Corporation, in each
case, until amended in accordance with Applicable Law.

    
      
         

      

      
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    Section
3.02              Directors and
Officers.

     

    From and
after the Effective Time, until successors are duly elected or appointed and
qualified in accordance with Applicable Law, (i) the directors of the Company at
the Effective Time shall be the directors of the Surviving Corporation, and (ii)
the officers of the Company at the Effective Time shall be the officers of the
Surviving Corporation, in each case except as provided herein.

     

    ARTICLE
4

     

    Representations
and Warranties of the Company

     

    Except as
disclosed in the Company Disclosure Schedule delivered to Parent
contemporaneously with the execution and delivery of this Agreement (the “Company Disclosure Schedule”), the
Company represents and warrants to Parent that:

     

    Section
4.01              Corporate Existence and
Power.

     

    The
Company is a company duly incorporated, validly existing and in good standing
under the laws of the State of Delaware and has all corporate powers and all
Governmental Authorizations required to carry on its business as now
conducted.  The Company is duly qualified or licensed to do business
as a foreign corporation and, to the extent applicable, is in good standing in
each jurisdiction where such qualification is necessary, except for those
jurisdictions where failure to be so qualified or licensed and in good standing
would not reasonably be expected to have, individually or in the aggregate, a
Company Material Adverse Effect.  Schedule 4.01 of the
Company Disclosure Schedule contains a true and complete copy of the Certificate
of Incorporation and Bylaws of the Company as currently in effect.

     

    Section
4.02              Corporate
Authorization.

     

    (a)               The
execution, delivery and performance by the Company of this Agreement and the
consummation by the Company of the transactions contemplated hereby are within
the Company’s corporate powers and have been duly authorized by all necessary
corporate action on the part of the Company.  This Agreement has been
duly executed and delivered by the Company, and assuming due authorization,
execution and delivery by Parent and Merger Subsidiary, constitutes a valid and
binding agreement of the Company enforceable in accordance with its terms,
subject, as to enforcement, to applicable bankruptcy, insolvency,
reorganization, fraudulent conveyance and similar laws relating to creditors’
rights and to general principles of equity.

    
      
         

      

      
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    (b)               At
a meeting duly called, held and conducted, the Company’s Board of Directors has
(i) determined that this Agreement and the transactions contemplated hereby are
fair to, and in the best interests of, the Company and its Stockholders, (ii)
approved and adopted this Agreement and the transactions contemplated hereby,
and (iii) resolved to recommend the approval and adoption of this Agreement and
the Merger by the Company Stockholders. ‎Section 4.02‎(b) of the Company
Disclosure Schedule contains a true and complete copy of the Company Board of
Directors resolution. Such Company Board of Directors resolution has been
adopted in full compliance with the requirements under Delaware Law and the
Company's Certificate of Incorporation and Bylaws.

     

    (c)               ‎Section 4.02‎(c) of the Company
Disclosure Schedule contains a true and complete copy of the Company
Stockholders Written Consent approving this Agreement and the transactions
contemplated herein, including the Merger. The Company Stockholders Written
Consent has been adopted in full compliance with the requirements under Delaware
Law and the Company's Certificate of Incorporation and Bylaws (including,
without limitation, with respect to notice and the material to be provided to
each Company Stockholder in advance of the adoption of such written
consent).

     

    Section
4.03              No Conflict.

     

    The
execution, delivery and performance by Company of this Agreement do not, and the
consummation by the Company of the transactions contemplated hereby will not,
(i) conflict with or result in any breach or violation of any provision of the
Company Certificate of Incorporation or Bylaws or any similar organizational
documents of any of its Subsidiaries, (ii) result in a violation or breach
of, or constitute (with or without due notice or lapse of time or both) a
default under, or give rise to any right of termination, amendment, cancellation
or acceleration or the creation or acceleration of any right or obligation
under, or result in the creation of any Lien upon any of the properties or
assets of the Company or any of its Subsidiaries under, any of the terms,
conditions or provisions of any note, bond, mortgage, indenture, deed of trust,
loan, credit agreement, lease, license, permit, concession, franchise, purchase
order, sales order contract, agreement or other instrument, understanding or
obligation, whether written or oral, to which the Company or any of its
Subsidiaries is a party or by which any of its properties or assets may be
bound, or (iii) conflict with or violate any Applicable Law governing the
Company or any Subsidiary thereof or by which any of their respective properties
or assets are bound or affected or violate any judgment, order, writ,
preliminary or permanent injunction or decree applicable to the Company, any of
its Subsidiaries or any of their properties or assets.

     

    Section
4.04              Governmental
Authorization.

     

    The
execution, delivery and performance by the Company of this Agreement and the
consummation by the Company of the transactions contemplated hereby require no
consent, approval, order or authorization of, or registration, declaration,
filing with, or action by or in respect of any Governmental Authority, other
than (i) the filing of a certificate of merger with respect to the Merger with
the Delaware Secretary of State and appropriate documents with the relevant
authorities of other states in which the Company conducts business (whether or
not qualified to conduct business in such states), (ii) compliance with any
applicable requirements of the 1933 Act, the 1934 Act, and any other applicable
securities or takeover laws, and the rules and regulations of NASDAQ; and (iii)
any actions or filings the absence of which would not be reasonably expected to
have, individually or in the aggregate, a Company Material Adverse
Effect.

    
      
         

      

      
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    Section
4.05              Capitalization.

     

    (a)              
The authorized share capital of the Company consists of 500,000,000 shares of
Company Stock.  As of the close of business on July 15, 2010, there
were outstanding (i) 105,628,895 shares of Company Stock, (ii) no shares of
preferred stock of the Company, and (iii) no options, warrants or other rights
to purchase any shares of Company Stock.  All outstanding shares of
Company Stock have been duly authorized and validly issued and are fully paid
and non-assessable, and have not been issued in violation of any Applicable Law,
the Company's Certificate of Incorporation or Bylaws or, if applicable, all
requirements set forth in any applicable contract (including any preemptive or
similar rights).  No Subsidiary of the Company owns any shares of
Company Stock. Neither the Company nor any Subsidiary has agreed to register any
securities under the Securities Act or under any state securities law or granted
registration rights to any individual or entity that, in either case, would
apply to the Parent Common Stock to be received by the Stockholders of the
Company pursuant to the Merger.

     

    (b)               Except
as set forth in ‎Section 4.05(a)
herein, there are no outstanding (i) shares of capital stock of, or other voting
securities or ownership interests in, the Company, (ii) securities of the
Company convertible into or exchangeable for shares of capital stock of, or
other securities or ownership interests in, the Company, (iii) subscriptions,
options, warrants, puts, calls, phantom stock rights, stock appreciation rights,
stock-based performance units, agreements, understandings, claims or other
commitments or rights of any type granted or entered into by the Company or any
of its Subsidiaries relating to the issuance, sale, repurchase or transfer of
any securities of the Company or that give any Person the right to receive any
economic benefit derived from the economic benefits and rights of securities of
the Company, or (iv) obligations of the Company or any of the Company's
Subsidiaries to repurchase, redeem or otherwise acquire any securities of the
Company or any of the Company's Subsidiaries to dispose of any shares of the
capital stock of the Company or any of the Company's Subsidiaries which, with
respect to clause (iv) only, would apply to the Parent Common Stock to be
received by the Stockholders of the Company pursuant to the
Merger. 

     

    (c)               Except
for the capital stock of its Subsidiaries, the Company does not own, directly or
indirectly, any capital stock or other ownership interest in any entity. The
Company is not subject to any obligation or requirement to provide funds or to
or make any investment (in the form of a loan, capital contribution or
otherwise) in any other Person.

     

    (d)               Immediately
following the Effective Time, there will be no contracts or arrangements
(including, without limitation, proxies) relating to voting of shares of Company
Stock: (i) between or among the Company and any of its Stockholders, and (ii) as
far as the Company is aware, between or among any of the Company Stockholders.
The Company has made available to Parent all agreements or arrangements (whether
oral or in writing) granting to any Company Stockholder transfer-related rights
or imposing transfer-related obligations (such as tag along, co-sale rights,
preemptive rights, rights of first refusal etc.), if any.

    
      
         

      

      
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    (e)               There
are no outstanding loans, debts or convertible debts contracts, notes, or other
arrangements between or among the Company and any of its
Stockholders.

     

    (f)               Based
on representation letters executed by each Company Stockholder prior to the date
hereof (collectively, the "Rep
Letters"), or other sources, there are no more than 35 Stockholders of
the Company that are not either "accredited investors", as such term is defined
in Regulation D promulgated under the 1933 Act, or non-“US Persons”, as such
term is defined in Regulation S promulgated under the 1933 Act, provided such
non-"US Persons" are outside the United States at the Effective Time. No
Stockholder of the Company will be, immediately after the Effective Time, in
violation of Section 328(a) of the Israeli Companies Law - 1999 with respect to
shares of Parent Common Stock.

     

    Section
4.06              Subsidiaries.

     

    (a)               Each
Subsidiary of the Company (i) is a legal entity duly formed, validly existing
and, to the extent applicable, in good standing under the laws of its
jurisdiction of formation, (ii) has all organizational powers to carry on
its business as now conducted, and (iii) is duly qualified to do business as a
foreign entity and is in good standing in each jurisdiction where that
qualification is necessary except, in the case of (iii) above, for any failure
to be so qualified that is not reasonably expected to have, individually or in
the aggregate, a Company Material Adverse Effect.  ‎Section 4.06 of
the Company Disclosure Schedule contains a true and complete list of all
Subsidiaries of the Company, their respective capitalization, jurisdictions of
incorporation and their organizational documents and certificates of
incorporations (or equivalent document).

     

    (b)               All
of the outstanding shares of capital stock of, or other voting securities or
ownership interests in, each Subsidiary of the Company are wholly owned by the
Company, directly or indirectly, free and clear of any Lien, except for
Permitted Liens, and are duly authorized, validly issued, fully paid and
non-assessable.  There are no outstanding (i) securities of the
Company or any of its Subsidiaries convertible into or exchangeable for shares
of capital stock of, or other voting securities or ownership interests in, any
Subsidiary of the Company, or (ii) subscriptions, options, warrants, puts,
calls, phantom stock rights, stock appreciation rights, stock-based performance
units, agreements, understandings, claims or other commitments or rights of any
type granted or entered into by the Company or any of its Subsidiaries relating
to the issuance, sale, repurchase or transfer of any securities of any
Subsidiary of the Company or that give any Person the right to receive any
economic benefit or right similar to or derived from the economic benefits and
rights of securities of any Subsidiary of the Company. There are no outstanding
obligations of the Company or any of its Subsidiaries to repurchase, redeem or
otherwise acquire any of the items listed in clauses (i) and (ii)
above.

    
      
         

      

      
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    Section
4.07              Financial
Statements.

     

    (a)               Section
4.07(a) of the Company Disclosure Schedule contains a true and complete copy of
the consolidated audited financial statements of the Company for and as of the
year ended December 31, 2009 and consolidated unaudited financial statements of
the Company for and as of the quarter ended March 31, 2010 (in each case,
including any notes thereto) (the “Company Financial Statements”,
and March 31, 2010 is referred to as the "Balance Sheet
Date").

     

    (b)               The
Company Financial Statements (i) are derived from and in accordance with the
books and records of the Company, (ii) complied as to form in all material
respects with applicable accounting requirements with respect thereto as of
their respective dates, (iii) have been prepared in accordance with GAAP applied
on a consistent basis throughout the periods indicated and consistent with each
other, and (iv) fairly present the consolidated financial position of the
Company and its Subsidiaries as of the dates therein indicated and the results
of operations and cash flows for the periods then ended.

     

    (c)               Except
(i) as disclosed in the Company Financial Statements, (ii) for liabilities and
obligations incurred in the ordinary course of business and consistent with past
practice of the Company and its Subsidiaries since the Balance Sheet Date, or
(iii) for liabilities and obligations arising under this Agreement, neither the
Company nor any of its Subsidiaries has any liability, commitment or obligation
of any nature (matured or un matured, absolute or accrued, fixed or contingent
or otherwise) required by GAAP to be reflected or reserved against on a
consolidated balance sheet of the Company, subject, in the case of any unaudited
financial statements, to standard audit adjustments. Except for obligations and
liabilities reflected in the Company Financial Statements, the Company has no
material off balance sheet obligation or liability of any nature (matured or
un-matured, fixed or contingent) to, or any financial interest in, any third
party or entities, the purpose or effect of which is to defer, postpone, reduce
or otherwise avoid or adjust the recording of debt expenses incurred by the
Company or any Subsidiary thereof.

     

    (d)               Section
4.07(d) of the Company Disclosure Letter accurately lists all indebtedness of
the Company and its Subsidiaries for money borrowed not reflected on the Company
Financial Statements.

    
      
         

      

      
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    Section
4.08              Absence of Certain Changes or
Events.

     

    Since
December 31, 2009 through the date of this Agreement, each of the Company and
its Subsidiaries has conducted its businesses only in the ordinary course and in
a manner consistent with past practice and there has not been a Company Material
Adverse Effect.  Since December 31, 2009, there has not been
(i) any determination with respect to, or any declaration, setting aside or
payment of, any dividend or other distribution with respect to shares of Company
Stock or shares of a Company Subsidiary's Common Stock, or of or any redemption,
purchase or other acquisition of any Company Stock, or any liability incurred
for dividends accrued and unpaid by the Company, (ii) any split,
combination or reclassification of any Company Stock or any issuance or the
authorization of any issuance of any other securities in respect of, in lieu of
or in substitution for shares of Company Stock, (iii) (A) any granting
by the Company or any of its Subsidiaries to any executive officer or director
of the Company or any of its Subsidiaries of any increase in cash compensation,
(B) any granting by the Company or any of its Subsidiaries to any such
executive officer or director of any increase in severance or termination pay,
(C) any granting by the Company or any of its Subsidiaries to any such
executive officer, director or other key employees of any loans or any increases
to outstanding loans, (D) except employment arrangements in the ordinary
course of business consistent with past practice with employees other than any
executive officer of the Company, any entry by the Company or any of its
Subsidiaries into any employment, severance or termination agreement with any
such employee or executive officer or director or (E) except in the
ordinary course of business, any increase in or establishment of any bonus,
insurance, deferred compensation, pension, retirement, profit-sharing or other
employee benefit plan or agreement or arrangement, (iv) any material
damage, destruction or loss, whether or not covered by insurance with respect to
the properties of the Company or its Subsidiaries, (v) any payment to an
Affiliate of the Company other than in the ordinary course of business
consistent with past practice, (vi) any Lien placed upon any of the material
properties or assets of the Company or any of its Subsidiaries other than
licenses with regard to the Company's material Intellectual Property or rights
thereto in the ordinary course of business consistent with past practice,
(vii) any material change in accounting methods, principles or practices by
the Company or (viii) any licensing or other agreement with regard to the
acquisition or disposition of any of the Company's material Intellectual
Property or rights thereto other than licenses or other agreements in the
ordinary course of business consistent with past practice.

     

    Section
4.09              Finders’ Fees.

     

    There is no investment banker, broker,
finder or other intermediary that has been retained by or is authorized to act
on behalf of the Company or any of its Subsidiaries who might be entitled to any
fee or commission from any Person in connection with the transactions
contemplated by this Agreement.

     

    Section
4.10              Antitakeover
Laws.

     

    To the
Knowledge of the Company, no “fair price,” “control share acquisition,”
“moratorium” or other antitakeover laws, other than those with which this
Agreement complies, apply or purport to apply to this Agreement, or any of the
transactions contemplated hereby or thereby.  The Company does not
have a shareholder rights plan or “poison pill.”

     

    Section
4.11              Litigation.

     

    Except as
disclosed in the Company Financial Statements, there is no material suit,
proceeding, claim, mediation, arbitration or investigation pending or, to the
Company’s Knowledge, threatened, against the Company, any of its Subsidiaries,
or any of their respective assets or properties, by or before any Governmental
Authority.  There is no continuing judgment, decree, injunction or
order against the Company or any Subsidiary, any of their respective assets or
properties.

    
      
         

      

      
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    Section
4.12              Employee Plans; Labor
Matters.

     

    (a)               Neither
the Company nor any ERISA Affiliate thereof nor any predecessor thereof
sponsors, maintains or contributes to, or has in the past sponsored, maintained
or contributed to, any Employee Plan subject to Title IV of ERISA.

     

    (b)               Neither
the Company nor any ERISA Affiliate thereof nor any predecessor thereof
contributes to, or has in the past contributed to, any multiemployer plan, as
defined in Section 3(37) of ERISA.

     

    (c)               There
are no actions, suits or claims pending (other than routine claims for
benefits), or threatened against, or with respect to, any of the Company's
Employee Plans or their assets, and there is no basis for any such action, suit
or claim.

     

    (d)               The
Company and its Subsidiaries have substantially performed all obligations,
whether arising by operation of Applicable Law or by contract, required to be
performed by them in connection with the Company's Employee Plans.

     

    (e)               (i)
Neither the Company nor any of its Subsidiaries is a party to any collective
bargaining or other labor union contracts, (ii) no collective bargaining
agreement or other labor union contract is being negotiated by the Company or
any of its Subsidiaries, and (iii) there is no pending or, to the Company's
Knowledge, threatened labor dispute (including a dispute or claim by a present
or former employee or independent contractor performing services for the Company
or any of its Subsidiaries, including with respect to overtime pay, wages,
salaries), strike or work stoppage against the Company or any of its
Subsidiaries, as would reasonably be expected to have a Company Material Adverse
Effect.

     

    (f)               The
Company and its Subsidiaries are and have been in compliance in all material
respects with all labor and employment related Applicable Laws.

     

    Section
4.13              Taxes.

     

    (a)               (i)
The Company and each of its Subsidiaries have paid (or have had paid on their
behalf) or have withheld and remitted to the appropriate Taxing Authority all
income taxes due and payable and, to the Company's Knowledge, all other Taxes
due and payable, or have established (or have had established on their behalf
and for their sole benefit and recourse) in accordance with GAAP an adequate
accrual for all material Taxes through the end of the last period for which the
Company and its Subsidiaries ordinarily record items on their respective books
except for such Taxes as are or will be contested in good faith by appropriate
proceedings, (ii) no penalty, interest or other charge is due with respect to
the late filing by the Company or any subsidiary thereof of any Tax Return or
late payment of any Tax, and (iii) no Tax Return of either the Company or any
Subsidiary thereof is currently subject to any pending audit.

    
      
         

      

      
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    (b)               There
is no written claim against the Company or any of its Subsidiaries for any
Taxes, and no assessment, deficiency or adjustment has been asserted, proposed
or threatened in writing with respect to any Tax Return of or with respect to
the Company or any of its Subsidiaries.

     

    (c)               Neither
the Company nor any of its Subsidiaries has entered into any Tax allocation,
sharing or indemnity agreement under which the Company or its Subsidiaries could
become liable to another Person (other than the Company or its Subsidiaries) as
a result of the imposition of Tax upon such Person, or the assessment or
collection of Tax.

     

    Section
4.14              Insurance.

     

    The
Company and each of its Subsidiaries has in full force and effect insurance
policies providing insurance in such amounts and against such risks as each of
the Company and its Subsidiaries reasonably has determined to be prudent in
accordance with the conduct of their respective businesses. ‎Section 4.14 of
the Company Disclosure Schedule lists all such insurance policies. The Company
has not received any written notice from any insurance provider that any of the
currently effective insurance policies shall not be renewed on terms
substantially identical to the current terms of such policy.

     

    Section
4.15              Properties.

     

    (a)               The
Company and each of its Subsidiaries has good and marketable title to, or in the
case of leased properties and assets, valid leasehold interests in, all of their
properties and assets and all properties and assets leased to them, respectively
in each case that are material to the Company and its Subsidiaries taken as a
whole and are required by them to conduct their respective businesses as
currently conducted, free and clear of all Liens, except for dispositions of
such properties or assets in the ordinary course of business consistent with
past practice and except for Permitted Liens. All leases pursuant to which the
Company or any of its Subsidiaries lease from others real or personal property
are valid and effective in accordance with their respective terms, and there is
not, under any of such leases, any existing material default or event of default
of the Company or any of its Subsidiaries or, to the Company's Knowledge, any
other party (or any event which with notice or the lapse of time, or both, would
constitute a material default and in respect of which the Company or any of its
Subsidiaries has not taken adequate measures to prevent such default from
occurring) that, in each case would be material to the Company and its
Subsidiaries taken as a whole.

     

    (b)               Neither
the Company nor any of its Subsidiaries owns any real property.

     

    (c)               The
representations and warranties set forth in this ‎Section 4.15 do
not apply to Intellectual Property, or other intellectual property assets or
rights.

    
      
         

      

      
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    Section
4.16              Intellectual
Property.

     

    (a)               To
the Company's Knowledge, it has title and ownership to or license to use all
Intellectual Property necessary for its business as now conducted and as
currently proposed to be conducted. To the Company’s Knowledge, as of the date
hereof, the business and operations of the Company and its Subsidiaries as they
are currently conducted do not conflict with or infringe any Intellectual
Property or the rights of any Third Party where such infringement, individually
or in the aggregate, would reasonably be expected to have a Company Material
Adverse Effect (“Company
Material Infringements”).

     

    (b)               Except
as reflected in the Company Financial Statements, the Company has not received
from any other Person any written notification with respect to any Company
Material Infringements.

     

    (c)               Except
as may be required by Applicable Law, there are no material restrictions on the
Company's ability to market, offer for sale, sell, license, transfer, use, make,
have made, distribute, modify, disclose or otherwise exploit any of the
Company's Intellectual Property.

     

    (d)               Except
as reflected in the Company Financial Statements, no procedures have been
commenced in any jurisdiction, nor have any been, to the Company's Knowledge,
threatened, which would be reasonably expected to result in (i) the cancellation
of any Company issued patent, registered trademark or service mark or registered
copyright or (ii) the failure to issue any patent, trademark or service mark or
copyright registration application.

     

    (e)               The
Company has taken security measures, including measures against unauthorized
disclosure, to protect the secrecy, confidentiality and value of the Company's
Intellectual Property, which measures are reasonable and customary in the
industry in which the Company operates.

     

    Section
4.17              Material
Contracts.

     

    With
respect to each contract that is material to the business of the Company and its
Subsidiaries, (i) as of the date hereof, such contract is in full force and
effect, and is valid and enforceable by the Company or the applicable Subsidiary
in accordance with its terms, except as such enforcement may be limited by
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
other similar Applicable Laws relating to or affecting the enforcement of
creditors' rights generally and legal principles of general applicability
governing the availability of equitable remedies (whether considered in a
proceeding in equity or at law or under applicable legal codes), and (ii)
neither the Company nor any of its Subsidiaries is in breach or default thereof,
nor have the Company or any of its Subsidiaries received written notice that the
Company or any of its Subsidiaries is in breach or default thereof, except for a
breach or default that would not reasonably be expected to result in a material
adverse effect on the business, assets, results of operations or financial
condition of the Company and its Subsidiaries, taken as a
whole.

    
      
         

      

      
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    Section
4.18              Environmental; Health and
Safety.

     

    No claim,
action, suit, litigation, proceeding or investigation has been filed or
commenced against the Company or any of its Subsidiaries alleging any failure to
comply with any Applicable Laws concerning the environment, public health and
safety or employee health and safety.  Neither the Company nor any of
its Subsidiaries has any liability under any Applicable Law or common law remedy
concerning the release or threatened release of hazardous substances, public
health and safety, or pollution or protection of the environment.

     

    Section
4.19              Interested Party
Transactions.

     

    (a)               None
of (a) the officers, directors or major Stockholders of the Company or any
Subsidiary thereof, or (b) to the Knowledge of the Company any immediate family
member of any officer, director or major Stockholder of the Company is a party
to, nor is any of such Persons otherwise directly or indirectly interested in,
any material contract to which the Company or any of its Subsidiaries is a party
or by which the Company or any of its Subsidiaries or any of their respective
material assets or properties may be bound or affected, except for normal
compensation for services as an officer, director, employee or consultant
thereof.  All the Company's interested party transactions were duly
approved and received all necessary approvals under any Applicable Law and the
Company's governing documents and agreements.

     

    (b)               Neither
the Company nor any of its Subsidiaries is indebted to any of their respective
directors, officers, employees, consultants or agents (except for current salary
payments and reimbursement of ordinary expenses), and no such Person is indebted
to the Company or any of its Subsidiaries.

     

    Section
4.20              Compliance with Applicable Law; Governmental
Authorizations.

     

    (a)           Each
of the Company and each Subsidiary thereof has complied with and is not in
violation of, and has not received any written notices of violation with respect
to, any Applicable Law, the failure to comply with or violation of would
reasonably be expected to have a material adverse effect on the business,
assets, results of operations or financial condition of the Company and its
Subsidiaries, taken as a whole.

     

    (b)           Other
than those Governmental Authorizations the failure of which to obtain would not
reasonably be expected to have a material adverse effect on the business,
assets, results of operations or financial condition of the Company and its
Subsidiaries, taken as a whole: each of the Company and each Subsidiary has
obtained each Governmental Authorization (i) pursuant to which the Company or
any Subsidiary thereof currently operates or holds any interest in any of its
assets or properties or (ii) that is required for the operation of the Company's
or any of its Subsidiaries' business or the holding of any such interest; and
all such Governmental Authorizations are in full force and
effect.

    
      
         

      

      
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    (c)           Except
as reflected in the Company Financial Statements, neither the Company nor any
Subsidiary thereof has received any written notice or other written
communication or, to the Company's Knowledge, any oral communication or notice
from any Governmental Authority regarding (i) any actual or possible violation
of any Governmental Authorization or any failure to comply with any term or
requirement of any Governmental Authorization or (ii) any actual or possible
revocation, withdrawal, suspension, cancellation, termination or modification of
any Governmental Authorization which would reasonably be expected to have a
Company Material Adverse Effect. None of the Governmental Authorizations will be
terminated or impaired, or will become terminable, in whole or in part, solely
as a result of the consummation of the transactions contemplated hereunder,
except for any Governmental Authorization the loss of which would not reasonably
be expected to result in a material adverse effect on the business, assets,
results of operations or financial condition of the Company and its
Subsidiaries, taken as a whole.

     

    Section
4.21              No Reliance.

     

    Parent
acknowledges that the Company has not made and is not making any representations
or warranties whatsoever regarding the subject matter of this Agreement, express
or implied, except as provided in Section 4.

     

    ARTICLE
5

    Representations
and Warranties of Parent

     

    Except as
expressly disclosed in Parent SEC Documents filed prior to the date hereof, or
as set forth in Parent Disclosure Schedule delivered to the Company
contemporaneously with the execution and delivery of this Agreement (the “Parent Disclosure Schedule”),
Parent represents and warrants to the Company that:

     

    Section
5.01              Corporate Existence and
Power.

     

    Each of
Parent and Merger Subsidiary is a corporation duly incorporated, validly
existing and in good standing under the laws of its jurisdiction of
incorporation and has all corporate powers and all Governmental Authorizations
required to carry on its business as now conducted.  Parent has
heretofore made available to the Company true and complete copies of the
Articles of Association of Parent and the certificate of incorporation and
bylaws of Merger Subsidiary, each as currently in effect.  Since the
date of its incorporation, Merger Subsidiary has not engaged in any activities
other than in connection with or as contemplated by this Agreement.

     

    Section
5.02              Corporate
Authorization.

     

    (a)               The
execution, delivery and performance by Parent and Merger Subsidiary of this
Agreement and the consummation by Parent and Merger Subsidiary of the
transactions contemplated hereby are within the corporate powers of Parent and
Merger Subsidiary and have been duly authorized by all necessary corporate
action on the part of each of Parent and Merger Subsidiary.  This
Agreement has been duly executed and delivered by Parent and Merger Subsidiary,
and assuming due authorization, execution and delivery by the Company,
constitutes a valid and binding agreement of each of Parent and Merger
Subsidiary enforceable in accordance with its terms, subject, as to enforcement,
to applicable bankruptcy, insolvency, reorganization, fraudulent conveyance and
similar laws relating to creditors’ rights and to general principles of
equity.

    
      
         

      

      
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    (b)               At
a meeting duly called and held, Merger Subsidiary’s Board of Directors has: (i)
determined that this Agreement and the transactions contemplated hereby are fair
to, and in the best interests of, Merger Subsidiary and its Stockholder, (ii)
approved and adopted this Agreement and the transactions contemplated hereby,
and (iii) resolved to recommend the approval and adoption of this Agreement and
the Merger by the Merger Subsidiary's Stockholder. Section 5.02(b) of
Parent Disclosure Schedule contains a true and complete copy of the Merger
Subsidiary’s Board of Directors resolution.

     

    (c)               Section 5.02(c) of
Parent Disclosure Schedule contains a true and complete copy of the Merger
Subsidiary Stockholders Written Consent approving this Agreement and the
transactions contemplated herein, including the Merger.

     

    (d)               At
a meeting duly called and held, Parent's Board of Directors has approved this
Agreement and the Merger. Section 5.02(d) of
Parent Disclosure Schedule contains a true and complete copy of the Parent's
Board of Directors resolution

     

    Section
5.03              Governmental
Authorization.

     

    The
execution, delivery and performance by Parent and Merger Subsidiary of this
Agreement and the consummation by Parent and Merger Subsidiary of the
transactions contemplated hereby require no action by or in respect of, or
filing with, any Governmental Authority, other than (i) the filing of a
certificate of merger with the Delaware Secretary of State, (ii) compliance with
any applicable requirements of the 1933 Act, the 1934 Act and any other
applicable securities or takeover laws, and the rules and regulations of NASDAQ
(including submission to NASDAQ, simultaneously herewith, of the NASDAQ Listing
Application in the form of Exhibit
K), and (iii) any actions or filings the absence of which would not
reasonably be expected to have, individually or in the aggregate, a Parent
Material Adverse Effect.  Subject to the truth and accuracy of the
representations to be set forth in each Letter of Transmittal, the offer, sale
and issuance of the shares of Parent Common Stock as Merger Consideration as
contemplated by this Agreement are exempt from the registration requirements of
any applicable securities laws.

     

    Section
5.04              Capitalization.

     

    (a)               The
authorized share capital of Parent consists of 30,000,000 ordinary shares, par
value NIS 0.65 per share (reflecting the Reverse Split).  As of the
date hereof, there are outstanding 1,173,293 shares of Parent Common Stock
(reflecting the Reverse Split, as such number may be adjusted to reflect the
rounding of fractional shares resulting from the Reverse Split), employee stock
options to purchase an aggregate of 548,422 shares of Parent Common Stock
(reflecting the Reverse Split, as such number may be adjusted to reflect the
rounding of fractional shares resulting from the Reverse Split) (of which
options to purchase an aggregate of 296,361 shares of Parent Common Stock
(reflecting the Reverse Split, as such number may be adjusted to reflect the
rounding of fractional shares resulting from the Reverse Split) are currently
exercisable) and warrants to purchase an aggregate of 364,810 shares of Parent
Common Stock (reflecting the Reverse Split, as such number may be adjusted to
reflect the rounding of fractional shares resulting from the Reverse Split), all
of which warrants are currently exercisable.   All outstanding
shares of capital stock of Parent have been duly authorized and validly issued
and are fully paid and nonassessable.

    
      
         

      

      
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    (b)               Except
as set forth in this ‎Section 5.04 and
for changes since March 31, 2010 resulting from the exercise of stock options or
the grant of stock based compensation to directors or employees, there are no
outstanding (i) shares of capital stock of, or other voting securities or
ownership interests in, Parent, (ii) securities of Parent convertible into or
exchangeable for shares of capital stock of, or other voting securities or
ownership interests in, Parent, or (iii) options or other rights to acquire from
Parent, or other obligation of Parent to issue, any capital stock of, or other
voting securities or ownership interests in, or any securities convertible into
or exchangeable for, capital stock of, or other voting securities or ownership
interests in, Parent.  There are no outstanding obligations of Parent
or any of its Subsidiaries to repurchase, redeem or otherwise acquire any of the
items listed in clauses (i), (ii) and (iii) above, except from former employees,
directors and consultants in accordance with currently effective agreements
providing for the repurchase of shares in connection with any termination of
service to it or its Subsidiaries.

     

    (c)               The
shares of Parent Common Stock to be issued as part of the Merger Consideration
have been duly authorized and, when issued and delivered in accordance with the
terms of this Agreement, will have been validly issued and will be fully paid
and nonassessable and the issuance thereof is not subject to any preemptive or
other similar right.

     

    Section
5.05              Subsidiaries.

     

    Each
Subsidiary of Parent: (i)  is a legal entity duly formed, validly
existing and, to the extent applicable, in good standing under the laws of its
jurisdiction of formation, (ii) has all organizational powers to carry on its
business as now conducted, and (iii) is duly qualified to do business as a
foreign entity and is in good standing in each jurisdiction where that
qualification is necessary with such exceptions, in the case of each of clauses
(i) through (iii) above, as would not reasonably be expected to have,
individually or in the aggregate, a Parent Material Adverse
Effect.  All material Subsidiaries of Parent and their respective
jurisdictions of incorporation are identified in Parent 20-F.

     

    Section
5.06              SEC Filings.

     

    (a)               The
following documents are available on the SEC’s EDGAR system: (i) the Parent
20-F, (ii) its report on Form 6-K containing Parent’s results for its fiscal
quarter ended March 31, 2010, and (iii) all of its other reports, statements,
schedules and registration statements filed with or furnished to the SEC by
Parent since January 1, 2009 (the documents referred to in this Section 5.06(a),
collectively, the “Parent SEC
Documents”).

    
      
         

      

      
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    (b)               As
of the date it was filed with, or furnished to, the SEC, each Parent SEC
Document complied as to form in all material respects with the applicable
requirements of the 1933 Act and the 1934 Act, as the case may be.

     

    (c)               As
of the date it was filed with, or furnished to, the SEC, each Parent SEC
Document did not contain any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements made therein,
in the light of the circumstances under which they were made, not
misleading.

     

    (d)               The
principal executive officer and the principal financial officer of Parent have
made all certifications required by Sections 302 and 906 of the Sarbanes-Oxley
Act with respect to the relevant Parent SEC Documents filed by
Parent.

     

    Section
5.07              Financial
Statements.

     

    (a)               The
audited consolidated financial statements and unaudited consolidated interim
financial statements (including, in each case, any notes thereto) included in
the Parent SEC Documents, fairly present, in conformity with GAAP applied on a
consistent basis during the periods involved (except as may be indicated in the
notes thereto), the consolidated financial position of Parent and its
consolidated Subsidiaries as of the dates thereof and the results of operations
and cash flows for the periods then ended (subject to normal year-end
adjustments in the case of any unaudited interim financial
statements).

     

    (b)               Except
(i) as disclosed in the Parent Financial Statements, (ii) for liabilities and
obligations incurred in the ordinary course of business and consistent with past
practice of Parent and its Subsidiaries since the Balance Sheet Date, or (iii)
for liabilities and obligations arising under this Agreement, neither Parent nor
any of its Subsidiaries has any liability, commitment or obligation of any
nature (matured or un matured, absolute or accrued, fixed or contingent or
otherwise) required by GAAP to be reflected or reserved against on a
consolidated balance sheet of Parent, subject, in the case of any unaudited
financial statements, to standard audit adjustments. Except for obligations and
liabilities reflected in the Parent Financial Statements, Parent has no material
off balance sheet obligation or liability of any nature (matured or un-matured,
fixed or contingent) to, or any financial interest in, any third party or
entities, the purpose or effect of which is to defer, postpone, reduce or
otherwise avoid or adjust the recording of debt expenses incurred by Parent or
any Subsidiary thereof.

     

    Section
5.08              Finders’ Fees.

     

    Except as
set forth on Section 5.08 of the Parent Disclosure Schedule, there is no
investment banker, broker, finder or other intermediary that has been retained
by or is authorized to act on behalf of Parent or any of its Affiliates who
might be entitled to any fee or commission from any Person in connection with
the transactions contemplated by this Agreement.

    
      
         

      

      
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    Section
5.09              Antitakeover
Laws.

     

    To the
Knowledge of Parent, no “fair price,” “control share acquisition,” “moratorium”
or other antitakeover laws, other than those with which this Agreement complies,
apply or purport to apply to this Agreement, or any of the transactions
contemplated hereby or thereby.  Parent does not have a shareholder
rights plan or “poison pill.”

     

    Section
5.10              Grants, Incentives and
Subsidies.

     

    Section 5.10 of the
Parent Disclosure Schedule provides a complete list, as of the date hereof, of
all pending and outstanding grants, incentives, exemptions, tax reductions and
subsidies from the Government of the State of Israel or any agency thereof, or
from any foreign governmental or administrative agency (collectively, “Grants”).  Parent
has made available to the Company, prior to the date hereof, correct copies of
all documents evidencing Grants submitted by Parent and of all letters of
approval, certificates of completion, and supplements and amendments thereto,
granted to Parent, and all material correspondence related
thereto.  Section 5.10 of the
Parent Disclosure Schedule lists, as of the date hereof (i) the aggregate amount
of each Grant, the identity of the government agency issuing such Grant, and the
date and title of the document evidencing such Grant, (ii) the aggregate
outstanding obligations of Parent under each Grant with respect to royalties and
(iii) the outstanding amounts to be paid by Parent.  Parent is in
compliance, in all material respects, with the terms and conditions of all
Grants and, except as disclosed in Section 5.10 of the
Parent Disclosure Schedule, has duly fulfilled, in all material respects, all
the undertakings required thereby.  Parent has not received written
notice of the revocation or material modification of any of the
Grants.

     

    Section
5.11              Foreign Corrupt Practices
Act.

     

    Neither
Parent nor any of its Subsidiaries nor, to the Knowledge of Parent, any
director, officer, agent, employee, Affiliate or other Person acting on behalf
of Parent or any of its Subsidiaries is aware of or has taken any action,
directly or indirectly, that would result in a violation by such Persons of the
FCPA, including, without limitation, making use of the mails or any means or
instrumentality of interstate commerce corruptly in furtherance of an offer,
payment, promise to pay or authorization of the payment of any money, or other
property, gift, promise to give, or authorization of the giving of anything of
value to any “foreign official” (as such term is defined in the FCPA) or any
foreign political party or official thereof or any candidate for foreign
political office, in contravention of the FCPA and Parent and, to the Knowledge
of Parent, any director, officer, agent, employee, Affiliate or other Person
acting on behalf of Parent, have conducted their respective businesses in
compliance with the FCPA and have instituted and maintain policies and
procedures designed to ensure, and which are reasonably expected to continue to
ensure, continued compliance therewith.

     

    Section
5.12              Employee Plans; Labor
Matters.

     

    (a)               Section
5.12(a) of Parent Disclosure Schedule sets forth as of the date hereof an
accurate and complete list of all Employee Plans.

    
      
         

      

      
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    (b)               Neither
Parent nor any ERISA Affiliate thereof nor any predecessor thereof sponsors,
maintains or contributes to, or has in the past sponsored, maintained or
contributed to, any Employee Plan subject to Title IV of ERISA.

     

    (c)               Neither
Parent nor any ERISA Affiliate thereof nor any predecessor thereof contributes
to, or has in the past contributed to, any multiemployer plan, as defined in
Section 3(37) of ERISA.

     

    (d)               (i)
Neither Parent nor any of its Subsidiaries is a party to any collective
bargaining or other labor union contracts, (ii) no collective bargaining
agreement or other labor union contract is being negotiated by Parent or any of
its Subsidiaries, and (iii) there is no pending or, to the Knowledge of Parent,
threatened labor dispute (including a dispute or claim by a present or former
employee or independent contractor performing services for Parent or any of its
Subsidiaries, including with respect to overtime pay, wages, salaries)
strike or work stoppage against Parent or any of its Subsidiaries, as would
reasonably be expected to have a Company Material Adverse Effect.

     

    (e)               There
are no actions, suits or claims pending (other than routine claims for
benefits), or, to the Parent's Knowledge, threatened against, or with respect
to, any of Parent's Employee Plans or their assets, and there is no basis for
any such action, suit or claim.

     

    (f)               Parent
and its Subsidiaries have substantially performed all obligations, whether
arising by operation of Applicable Law or by contract, required, to be performed
by them in connection with Parent's Employee Plans.

     

    (g)               Parent
and its Subsidiaries are and have been in compliance in all material respects
with all labor and employment related Applicable Laws.

     

    (h)               Parent’s
obligations to provide severance pay to all employees residing or working in
Israel pursuant to applicable law or contract are either fully funded by
managers' insurance or pension funds or have been provided for in the Parent
Financial Statements.

     

    Section
5.13              Litigation.

     

    Except as
disclosed in the Parent Financial Statements or in ‎Section 5.13 of
the Parent Disclosure Schedule, there is no material suit, proceeding, claim,
mediation, arbitration or investigation pending or, to Parent’s Knowledge,
threatened, against Parent, any of its Subsidiaries, or any of their respective
assets or properties, by or before any Governmental Authority.  There
is no continuing judgment, decree, injunction or order against the Company or
any Subsidiary, any of their respective assets or properties.

     

    Section
5.14              Taxes.

     

    (a)           
(i) Parent and each of its Subsidiaries has paid (or has had paid on its behalf)
or has withheld and remitted to the appropriate Taxing Authority all income
taxes due and payable and, to the Parent's Knowledge, all other Taxes due and
payable, or has established (or has had established on its behalf and for its
sole benefit and recourse) in accordance with GAAP an adequate accrual for all
material Taxes through the end of the last period for which Parent and its
Subsidiaries ordinarily record items on their respective books except for such
Taxes as are or will be contested in good faith by appropriate proceedings, and
(ii) no Tax Return of either the Company or any Subsidiary thereof is currently
subject to any pending audit.

    
      
         

      

      
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    (b)           There
is no written claim against Parent or any of its Subsidiaries for any Taxes, and
no assessment, deficiency or adjustment has been asserted, proposed or
threatened in writing with respect to any Tax Return of or with respect to
Parent or any of its Subsidiaries.

     

    (c)           Neither
Parent nor any of its Subsidiaries has entered into any Tax allocation, sharing
or indemnity agreement under which the Company or its Subsidiaries could become
liable to another Person (other than Parent or its Subsidiaries) as
a  result of the imposition of Tax upon such Person, or the assessment
or collection of Tax.

     

    Section
5.15              Insurance.

     

    Parent
and each of its Subsidiaries has in full force and effect insurance policies
providing insurance in such amounts and against such risks as each of Parent and
its Subsidiaries reasonably has determined to be prudent in accordance with the
conduct of their respective businesses. ‎Section 5.15 of
Parent Disclosure Schedule lists all such insurance policies. Parent has not
received any written notice from any insurance provider that any of the
currently effective insurance policies shall not be renewed on terms
substantially identical to the current terms of such policy.

     

    Section
5.16              Properties.

     

    (a)               Parent
and each of its Subsidiaries has good and marketable title to, or in the case of
leased properties and assets, valid leasehold interests in, all of their
properties and assets and all properties and assets leased to them, respectively
in each case that are material to Parent and its Subsidiaries taken as a whole
and are required by them to conduct their respective businesses as currently
conducted, free and clear of all Liens, except for dispositions of such
properties or assets in the ordinary course of business consistent with past
practice and except for Permitted Liens. All leases pursuant to which Parent or
any of its Subsidiaries lease from others real or personal property are valid
and effective in accordance with their respective terms, and there is not, under
any of such leases, any existing material default or event of default of Parent
or any of its Subsidiaries or, to Parent's Knowledge, any other party (or any
event which with notice or the lapse of time, or both, would constitute a
material default and in respect of which Parent or any of its Subsidiaries has
not taken adequate measures to prevent such default from occurring) that, in
each case would be material to Parent and its Subsidiaries taken as a
whole.

     

    (b)               Neither
Parent nor any of its Subsidiaries owns any real property.

     

    (c)               The
representations and warranties set forth in this ‎Section 5.16 do
not apply to Intellectual Property, or other intellectual property assets or
rights.

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

     

    Section
5.17              Intellectual
Property.

     

    (a)               To
the Parent's Knowledge, it has title and ownership to or license to use all
Intellectual Property necessary for its business as now conducted and as
currently proposed to be conducted. To Parent’s Knowledge, as of the date
hereof, the business and operations of Parent and its Subsidiaries as they are
currently conducted do not conflict with or infringe any Intellectual Property
or the rights of any Third Party where such infringement, individually or in the
aggregate, would reasonably be expected to have a Parent Material Adverse Effect
(a "Parent Material
Infringement").

     

    (b)               Parent
has not received from any other Person any written notification with respect to
any Parent Material Infringement.

     

    (c)               Except
as may be required by Applicable Law, there are no material restrictions on
Parent's ability to market, offer for sale, sell, license, transfer, use, make,
have made, distribute, modify, disclose or otherwise exploit any Intellectual
Property of Parent.

     

    (d)               No
procedures have been commenced in any jurisdiction, nor have any been, to the
Parent's Knowledge, threatened, which would be reasonably expected to result in
(i) the cancellation of any Parent issued patent, registered trademark or
service-mark or registered copyright or (ii) the failure to issue any patent,
trademark or service-mark or copyright registration application.

     

    (e)               Parent
has taken security measures, including measures against unauthorized disclosure,
to protect the secrecy, confidentiality and value of Parent's Intellectual
Property, which measures are reasonable and customary in the industry in which
Parent operates.

     

    Section
5.18              Environmental Health and
Safety.

     

    No claim,
action, suit, litigation, proceeding or investigation has been filed or
commenced against Parent or any of its Subsidiaries alleging any failure to
comply with any such Applicable Laws.  Neither Parent nor any of its
Subsidiaries has any liability under any Applicable Law or common law remedy
concerning the release or threatened release of Hazardous Substances, public
health and safety, or pollution or protection of the environment.

     

    Section
5.19              No Reliance.

     

    The
Company acknowledges that Parent has not made and is not making any
representations or warranties whatsoever regarding the subject matter of this
Agreement, express or implied, except as provided in Section 5.

    
      
         

      

      
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    ARTICLE
6

    Covenants
of the Company

     

    Section
6.01              Indemnification Agreements and
D&O insurance.

     

    (a)               Following
the Effective Time, Parent shall not, and shall cause it Representatives not to,
take any steps to, or that are reasonably expected to, (i) amend in a manner
adverse to any current or past director or officer of Parent any indemnification
agreement to which any such officer or director is currently a party, or any
directors and officers (“D&O”) or other similar
insurance policy which covers such officer or director, or (ii) amend the
indemnification provisions set forth in Parent's Articles of Association in a
manner adverse to any current or past director of officer of
Parent.

     

    (b)               Parent
shall maintain a policy or policies of D&O liability insurance covering any
current or past directors and officers of Parent for acts and omissions
occurring prior to the Closing Date, with coverage in amount and scope no less
favorable in the aggregate than Parent's existing D&O liability insurance
coverage, for a period of seven (7) years after the Closing Date; provided, however, that, if
Parent ceases to maintain a D&O insurance policy during such seven-year
period, Parent shall obtain a “tail” policy for such coverage, which
(i) has an effective term of seven (7) years from the Closing Date,
(ii) covers each current or past director and officer for seven (7) years
following the date on which any such person ceases to serve as officer or
director, provided
that such coverage period shall be no longer than seven (7) years from the
Closing Date and (iii) contains terms that are no less favorable than those
of Parent's directors' and officers' insurance policy in effect at the Closing
Date.  Parent shall maintain such policy in effect and continue to
honor the obligations thereunder for a period of not less than seven (7) years
after the Closing Date. Notwithstanding the foregoing, in no event shall Parent
be required to obtain such "tail" policy if the premium of such policy would
exceed $70,000 per annum.

     

    (c)           The
officers and directors to whom ‎Section 6.01
applies shall be intended third party beneficiaries of ‎Section
6.01.  The provisions of this ‎Section 6.01 are
intended to be for the benefit of each such officer and director, his or her
successors, heirs or representatives.  Parent shall pay all reasonable
expenses, including reasonable attorneys' fees, that may be incurred by any
officer and director covered by this ‎Section
6.01 in enforcing the indemnity and other obligations provided in this ‎Section
6.01.

     

    Section
6.02              Form 6-K; Public Announcements;
Management

     

    (a)           Immediately
following the Effective Time, Parent shall submit to the SEC the Form 6-K
substantially in the form attached hereto as Exhibit
F.

     

    (b)           Immediately
following the Effective Time, Parent and the Company shall issue a joint press
release substantially in the form of Exhibit
G.

     

    (c)           Immediately
following the Effective Time, (i) Mr. Ilan Rosen shall continue as the Chairman
of the board of directors of Parent and Ms. Tsipi Kagan and Mr. Yoseph Dauber
shall continue to serve as external directors of Parent, and (ii) subject to the
discretion of the Chief Executive Officer of Parent, all current officers of
Parent shall retain their current titles (other than Mr. Ido Gur and Mr. Joshua
Di-nur, who shall remain with the Parent in another capacity)) and shall be
responsible for Parent's Israel region in their respective areas of
responsibility.

    
      
         

      

      
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    Section
6.03              Filing of Registration Statement;
Extension of Exercise Period of Current Option Holders

     

    Immediately
prior to the Effective Time, the Parent withdrew certain registration statements
that were previously filed by the Parent with the SEC, including registration
statements on Form S-8, file numbers 333-131870 and 333-106400. The Parent will
file with the SEC, not later than 60 days following the Effective Time, a new
registration statement on Form S-8 covering all shares of Parent Common Stock
underlying all of Parent’s currently existing stock option plans (including
shares underlying currently outstanding options), and will maintain such
registration statement until the earlier of (i) expiration of the period during
which options to purchase shares of Parent Common Stock granted under such stock
option plans may be exercised (reflecting the exercise period extension
described below) and (ii) the date on which all shares underlying such
registration statement are resold. The period during which currently outstanding
options to purchase Parent Common Stock (including options held by directors and
employees of Parent or any Subsidiary thereof, whose service or employment is
terminated in connection with the consummation of the Merger) may currently be
exercised will be extended by the period (the “Extension Period”) that will
elapse from the Effective Time until the date on which the foregoing new
registration statement becomes effective (or, in the event that the exercise
period of any options held by any current employee or director expires before
such new registration statement becomes effective, then such director or
employee shall have the right to exercise the options currently held by him for
a period equal to the Extension Period after such registration statement becomes
effective); and the Parent will execute all such agreements or other documents
(including amendments to currently existing stock option agreements) that are
necessary to accommodate the foregoing rights of the option holders. The service
of the directors of Parent referred to in ‎Section 7.03(a)
will be deemed to have been terminated in connection with the consummation of
the Merger for purposes of this section.

    

    ARTICLE
7

    Conditions
to the Merger

     

    Section
7.01              Conditions to the Obligations of
Each Party.

     

    The
obligation of each of the Company, Parent and Merger Subsidiary to consummate
the Merger is subject to the satisfaction of the following
conditions:

    

    (a)         
     no Applicable Law of any jurisdiction in which
either Parent or the Company has material business or operations, shall prohibit
or enjoin the consummation of the Merger;

     

    (b)               all
approvals, consents, actions, notices and filings that are required to have been
obtained, taken or made shall have been obtained, taken or made;

     

    (c)               the
shares of Parent Common Stock to be issued in the Merger shall have been
approved for listing on NASDAQ, subject to compliance with the $4 per share bid
price requirement and official notice of issuance; and

    
      
         

      

      
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    (d)               no
order or permanent injunction or other order issued by any Governmental
Authority of competent jurisdiction which has the effect of making the Merger
illegal or otherwise permanently prohibiting or preventing the consummation of
the Merger shall be in effect.

     

    Section
7.02              Conditions to the Obligations of
Parent and Merger Subsidiary.

     

    The
obligation of each of Parent and Merger Subsidiary to consummate the Merger is
subject to the satisfaction of the following further conditions:

     

    (a)            
  The Company shall have delivered to Parent and the Exchange Agent
the Allocation Certificate, the Shareholders List and the Rep
Letters.

     

    (b)         
     The Company shall have executed and delivered to
the Parent the Certificate of Merger, duly signed by the Company.

     

    Section
7.03              Conditions to the Obligations of the
Company.

     

    The
obligations of the Company to consummate the Merger are subject to the
satisfaction of the following further conditions:

     

    (a)               Parent
shall have delivered to Company a resignation letter of each of Messrs. Robert
Wadsworth and Eran Dariel from the Parent's board of directors, in the form
attached hereto as Exhibit
I.

     

    (b)               Parent
shall have executed and delivered to the Company a registration rights agreement
between Parent, on the one hand, and Mr. Daniel Borislow, on the other hand, in
the form attached hereto as Exhibit
J.

     

    (c)               The
board of directors of Parent shall have appointed each of Messrs. Daniel
Borislow, Yuen Wah Sing, Richard Schaeffer and Mr. Gerald Vento to the Parent’s
board of directors, effective as of the Effective Time, pursuant to written
resolutions of the board of directors of Parent.

     

    (d)               The
Parent shall have delivered to the Transfer Agent, with a copy to the Company,
the irrevocable instructions in the form attached hereto as Exhibit
C.

     

    (e)               The
Parent's Board of Directors shall have resolved that Mr. Daniel Borislow be
appointed as Chief Executive Officer of Parent, effective at the Effective
Time.

    
      
         

      

      
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    ARTICLE
8

    Miscellaneous

     

    Section
8.01              Notices.

     

    All
notices, requests and other communications to any party hereunder shall be in
writing (including facsimile transmission) and shall be given,

     

    if to
Parent or Merger Subsidiary, to:

     

    12 Benny
Gaon Street, Building 2B

    Poleg
Industrial Area, Netanya

    Attention:
Chief Executive Officer

    Facsimile
No.: (972) (9) 9561867

    

    with a
copy to:

    Meitar
Liquornik Geva & Leshem Brandwein

    16 Abba
Hillel Road

    Ramat Gan
52506

    Israel

    Facsimile:  (972)
(3) 610 3111

    Attention:  Dan
Shamgar, Advocate

                      Mike
Rimon, Advocate

    e-mail:  dshamgar@meitar.com

       
          mrimon@meitar.com

    

    if to the
Company, to:

    

    YMax
Corporation

    5700
Georgia Avenue

    West Palm
Beach, FL  33405

    Attention:  President
and CEO

    Facsimile
No.: 561-832-8377

    

    with a
copy to:

    

    Arnold
& Porter LLP

    555 12th
Street, NW

    Washington,
DC  20004-1206

    Attention:
Richard Firestone, Esq.

    Facsimile
No.: 202-942-5999

    

    and

    

    Gross,
Kleinhendler, Hodak, Halevy, Greenberg & Co.

    1 Azrieli
Center

    Tel Aviv
67021 Israel

    Attention:
Daniel K. Gamulka, Adv.

    Facsimile
No.: +972-3-607-4411

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    

    or to
such other address or facsimile number as such party may hereafter specify for
the purpose by notice to the other parties hereto.  All such notices,
requests and other communications shall be deemed received on the date of
receipt by the recipient thereof if received prior to 5:00 p.m. on a Business
Day in the place of receipt.  Otherwise, any such notice, request or
communication shall be deemed to have been received on the next succeeding
Business Day in the place of receipt.

     

    Section
8.02              Survival of Representations,
Warranties and Agreements.

     

    The
representations, warranties and agreements contained herein and in any
certificate or other writing delivered pursuant hereto shall not survive the
Effective Time; provided that, this ‎Section 8.02 shall
not limit any covenant or agreement of any party hereto that by its terms
expressly contemplates performance after the Effective Time or the survival of
this ‎Article
8 after the Effective Time.

     

    Section
8.03              Amendments and
Waivers.

     

    (a)              
Any provision of this Agreement may be amended or waived prior to the Effective
Time if, but only if, such amendment or waiver is in writing and is signed, in
the case of an amendment, by each party to this Agreement or, in the case of a
waiver, by each party against whom the waiver is to be effective.

     

    (b)               No
failure or delay by any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. The rights and remedies herein provided
shall be cumulative and not exclusive of any rights or remedies provided by
Applicable Law.

     

    Section
8.04              Expenses.

     

    Except as
otherwise provided herein, all costs and expenses incurred in connection with
this Agreement shall be paid by the party incurring such cost or
expense.

     

    Section
8.05              Binding Effect; Benefit;
Assignment.

     

    (a)               Except
as set forth herein, the provisions of this Agreement shall be binding upon and
shall inure only to the benefit of the parties hereto.  Except for the
provisions of, ‎Section 6.01 and
‎Section
6.03, no provision of this Agreement is intended to confer any rights, benefits,
remedies, obligations or liabilities hereunder upon any Person other than the
parties hereto. The persons referred to in, ‎Section 6.01 and
‎Section 6.03
shall be deemed third party beneficiaries thereof.

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

     

    (b)               No
party may assign, delegate or otherwise transfer any of its rights or
obligations under this Agreement without the consent of each other party
hereto.

     

    Section
8.06              Governing Law.

     

    This
Agreement shall be governed by and construed in accordance with the law of the
State of Delaware, without regard to the conflicts of law rules of such state,
except to the extent that certain matters are preempted by the federal
securities laws or are governed by the law of the jurisdiction of organization
of the respective parties hereto.

     

    Section
8.07              Jurisdiction.

     

    The
parties hereto agree that any suit, action or proceeding seeking to enforce any
provision of, or based on any matter arising out of or in connection with, this
Agreement or the transactions contemplated hereby shall be brought in any
federal court located in the State of Delaware or any Delaware state court, and
each of the parties hereby irrevocably consents to the jurisdiction of such
courts (and of the appropriate appellate courts therefrom) in any such suit,
action or proceeding and irrevocably waives, to the fullest extent permitted by
law, any objection that it may now or hereafter have to the laying of the venue
of any such suit, action or proceeding in any such court or that any such suit,
action or proceeding brought in any such court has been brought in an
inconvenient forum.  Process in any suit, action or proceeding
described in the preceding paragraph may be served on any party anywhere in the
world, whether within or without the jurisdiction of any court identified in the
preceding paragraph.  Without limiting the foregoing, each party
agrees that service of process on such party as provided in ‎Section 8.01 shall
be deemed effective service of process on such party.

     

    Section
8.08              Waiver of jury
trial.

     

    Each of
the parties hereto hereby irrevocably waives any and all right to trial by jury
in any legal proceeding arising out of or related to this agreement or the
transactions contemplated hereby.

     

    Section
8.09              Counterparts;
Effectiveness.

     

    This
Agreement may be signed in any number of counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon
the same instrument. This Agreement shall become effective when each party
hereto shall have received a counterpart hereof signed by all of the other
parties hereto.  Until and unless each party has received a
counterpart hereof signed by the other party hereto, this Agreement shall have
no effect and no party shall have any right or obligation hereunder (whether by
virtue of any other oral or written agreement or other
communication).

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

     

    Section
8.10              Entire
Agreement.

     

    This
Agreement and the Confidentiality Agreement dated March 19, 2010, between Parent
and the Company constitute the entire agreement between the parties hereto with
respect to the subject matter hereof and thereof and supersede all prior
agreements and understandings, both oral and written, between the parties with
respect to the subject matter hereof and thereof.

     

    Section
8.11              Severability.

     

    If any
term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction or other Governmental Authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party.  Upon such a determination, the
parties hereto shall negotiate in good faith to modify this Agreement so as to
give effect to the original intent of the parties as closely as possible in an
acceptable manner in order that the transactions contemplated hereby be
consummated as originally contemplated to the fullest extent
possible.

     

    Section
8.12              Specific
Performance.

     

    The
parties hereto agree that irreparable damage would occur if any provision of
this Agreement were not performed in accordance with the terms hereof, and,
accordingly, that the parties shall be entitled to an injunction or injunctions
to prevent breaches of this Agreement or to enforce specifically the performance
of the terms and provisions hereof.

     

    Section
8.13              Disclosure Schedule
References.

     

    The
parties hereto agree that any reference in a particular Section of the Company
Disclosure Schedule or the Parent Disclosure Schedule, as the case may be, shall
only be deemed to be an exception to (or, as applicable, a disclosure for
purposes of) (i) the representations and warranties (or covenants, as
applicable) of the Company or Parent, as the case may be, that are contained in
the corresponding Section of this Agreement, and (ii) any other representations
and warranties of the Company or Parent, as the case may be, that are contained
herein, but only if the relevance of that reference as an exception to (or a
disclosure for purposes of) such other representations and warranties is
reasonably apparent. Any disclosure referenced in this Agreement is solely for
the purposes of this Agreement, and is not a statement by any party as to their
materiality or any statement for any other purpose.

     

    [Remainder
of page intentionally left blank]

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective authorized officers as of the day and year first
above written.

     

    
      
        
          
            
              
                
                  	
                          YMAX
      CORPORATION

                        
	 
      
	
                          By:

                        	
                          /s/ Daniel Borislow

                        
	
                          Name:

                        	
                          Daniel
      Borislow

                        
	
                          Title:

                        	
                          President
      and Chief Executive

                        
	 
      	
                          Officer

                        

                

              

            

          

        

      

    

    

    
      
        	
                VOCALTEC
      COMMUNICATIONS LTD.

              
	 
      
	
                By:

              	
                /s/ Ilan Rosen

              
	
                Name:

              	
                Ilan
      Rosen

              
	
                Title:

              	
                Chairman
      of the Board of

                Directors

              

      

    

    

    
      
        	
                VOCALTEC
      MERGER SUB, INC.

              
	 
      
	
                By:

              	
                /s/ Ilan Rosen

              
	
                Name:

              	
                Ilan
      Rosen

              
	
                Title:

              	
                Chairman
      of the Board of

              
	 
      	
                Directors

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