RETALIX LTD.

D. Employees
Set forth are tables presenting breakdowns of the total amount our employees according to category of activity and according to main geographical
locations of employment:
None of our employees are represented by unions. We consider our relationship with our employees to be good and have not experienced any
interruptions due to labor disputes.
E. Share Ownership
Mr. Barry Shaked, our President, Chief Executive Officer and Chairman of our board of directors, holds, as of June 30, 2006, 917,572 of our
ordinary shares, which equals approximately 4.7% of our issued share capital.
Mr. Brian Cooper, a director and our former Vice President, holds, as of June 30, 2006, 774,635 of our ordinary shares, which equals approximately
4.0% of our issued share capital.
No other director or executive officer beneficially owns 1% or more of our issued share capital.
All other directors and executive officers hold as of June 30, 2006, a total of 72,374 of our ordinary shares, which equals approximately 0.4% of our
issued share capital.
In addition, as of June 30, 2006, Mr. Shaked held options to purchase a total of up to 580,414 of our ordinary shares granted to him on January 1,
2003, January 1, 2004, January 1, 2005 and January 1, 2006 pursuant to a shareholders resolution dated May 28, 1998, authorizing the grant to him, on
January 1 of each year, of options to purchase one percent of our issued capital. The exercise price for each share according to this resolution is the Nasdaq
closing price on December 31 of the year ending just before the date of grant. These options have a term of four years from the date of grant and are
exercisable as follows: 33% - starting one year following the date of grant; 33% - starting two years following the date of grant; and 34% - starting three
years following the date of grant.
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As of December 31,
Category of Activity 2003 2004 2005
Research and Development 290 424 598
Operations 215 306 482
Marketing 101 119 170
Finance and Administration 62 71 93
Total 668 920 1,343
As of December 31,
Geographical Location 2003 2004 2005
United States 308 383 617
Israel 353 443 616
Europe 5 89 93
Rest of The World 2 5 17
Total 668 920 1,343