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                                                                 EXHIBIT 4(b)(4)

                        AMENDMENT TO LETTER OF AGREEMENT

     THIS AMENDMENT TO LETTER OF AGREEMENT (this "AMENDMENT"), is made as of
January 26, 2003 by and between Tecnomatix Technologies Ltd., a company duly
incorporated under the laws of the State of Israel, with offices located at 16
Hagalim Avenue, Herzliya, Israel (the "COMPANY"), and Amir Livne, an individual
residing at Be'er Gan Street, Ein Vered 40696, Israel (the "OFFICER") (each, a
"PARTY", together, the "Parties).

                                   WITNESSETH:

     WHEREAS, on January 16, 2001 the Company entered into a Letter of Agreement
(the "AGREEMENT") with the Officer regarding his terms of employment and
compensation as Executive Vice-President Industry Marketing of the Company; and

     WHEREAS, pursuant to Section 6 of the Agreement the Company provided to the
Officer a loan (the "Loan") in the principal amount of U.S. $100,000 (hundred
thousand United States Dollar); and

     WHEREAS, the Parties wish to amend the provisions of Section 6 of the
Agreement, subject to the terms and conditions of this Amendment;

     NOW, THEREFORE, in consideration of the mutual promises hereinafter set
forth and other good and valuable consideration, the receipt of which are hereby
acknowledged, the Parties hereby agree as follows:

1.   AMENDMENT OF SECTION 6

Section 6 of the Agreement shall be amended to read in its entirety as follows:

     "At the Commencement Date (as defined in the Agreement) the Company shall
     provide to you a loan (the "Loan") in an amount of NIS 418,330 (the
     "Principal"). The Principal of the Loan shall be linked to the Israeli
     Consumer Price Index and shall bear interest as of the Commencement Date at
     the rate provided for, from time to time, pursuant to the Regulations
     promulgated under the Israeli Tax Ordinance.

     The forgiven Loan (as detailed below) may be subject to taxes, as required
     by law, which any such taxes shall be under your sole liability.

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     The Loan (principal and accrued interest thereon) will be forgiven after 36
     months of employment, PROVIDED, HOWEVER, that: (i) if you terminate your
     employment at any time prior to the expiration of two years of the
     Commencement Date, you will be required to repay to the Company the
     Principal and any accrued interest thereon; (ii) if you terminate your
     employment at any time after two years from the Commencement Date but prior
     to the expiration of three years of the Commencement Date, you will be
     required to repay to the Company third of the Principal and any accrued
     interest thereon; and (iii) if the Company terminates your employment, for
     reasons other than violation of a material obligation under the employment
     agreement, during the periods specified in (i) or (ii) above, you will be
     required to repay to the Company half of the amounts specified in (i) and
     (ii) above, respectively, in which case, the Company shall bear all taxes
     associated with the forgiven portions of the Loan.

     The Company may deduct any amounts due under the Loan from any amounts owed
     to you by the Company, including any salary, commission payments or expense
     reimbursements. You will remain obligated to repay to the Company the
     balance of any amount due under the Loan which was not repaid as
     aforesaid."

2.   Effective Date

     This Amendment shall have a retroactive effect as of January 1, 2001.

3.   No Change

     All the other provisions, terms and conditions of the Agreement shall
remain the same.

     IN WITNESS WHEREOF, the Parties have duly executed this Amendment hereto
and on the date first above written.

TECNOMATIX TECHNOLOGIES LTD.


By:     /s/ Harel Beit-On                                 /s/ Amir Livne
       ----------------------------------        -------------------------------
Name:   Harel Beit-On                                        AMIR LIVNE
Title:  Chairman of the Board and
        Chief Executive Officer


By:     /s/ Oren Steinberg
       ---------------------------------
Name:   Oren Steinberg
Title:  Chief Financial Officer and
        Executive Vice-President