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Exhibit 1.2

# THE COMPANIES LAW
A COMPANY LIMITED BY
SHARES
SECOND AMENDED AND
RESTATED ARTICLES OF
ELLOMAY CAPITAL LTD.

# I PRELIMINARY

|1. | Interpretation
|-- | --------------

| | 1.1. | In
these Articles the following terms shall bear the meaning ascribed to them
          below:
| | ---- | ----------------------------------------------------------------------------------------------

| | Affiliate is
defined in Article 25.5.1 herein.
| | ------------------------------------------------

| | Alternate
Director defined in Article 37.1 herein.
| | ----------------------------------------------------

| | The
Articles shall mean the articles of association contained in the
Articles, as originally registered and as they may from time to time be amended.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Board shall mean the Companys Board of Directors.
| | --------------------------------------------------------

| | The
Company shall mean the above named company.
| | -------------------------------------------------

| | Control is
defined in Article 25.5.1 herein.
| | ----------------------------------------------

| | Determining
Majority as defined in Article 6 herein.
| | ------------------------------------------------------

| | External
Director as defined in the Law.
| | ------------------------------------------

| | Extraordinary
Meetings as defined in Article 21.1 herein.
| | -----------------------------------------------------------

| | The
Law shall mean the Companies Law, 5759  1999, as the same may be
amended from time to time, and all the rules and regulations promulgated thereunder.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Memorandum shall mean the Memorandum of Association of the Company, as
originally registered and as it may from time to time be amended.
| | ----------------------------------------------------------------------------------------------------------------------------------------------

| | Obligation as
defined in Article 13.1 herein.
| | -----------------------------------------------

| | Officer is
defined in Article 25.5.1 herein.
| | ----------------------------------------------

| | The
Ordinance shall mean the Companies Ordinance [New Version], 5743-1983,
as the same may be amended from time to time.
| | --------------------------------------------------------------------------------------------------------------------------

| | The
Register of Members shall mean the Companys Register of Members.
| | -----------------------------------------------------------------------

| | Registered
Holder as defined in Article 10 herein.
| | ----------------------------------------------------

| | Securities as
defined in Article 18 herein.
| | ---------------------------------------------

| | Shareholders
Agreement shall mean the Shareholders Agreement, dated as of March 24, 2008,
between Kanir Joint Investments (2005) Limited Partnership (Kanir) and
S. Nechama Investments (2008) Ltd. (Nechama Investments), a copy of
which is attached hereto as Exhibit A.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Terms
and expressions used in the Articles and not defined herein, shall bear the same meaning
as in the Law.
| | -------------------------------------------------------------------------------------------------------------

| | 1.2. | Sections
2, 3, 4, 5, 6, 7, 8 and 10 of the Interpretation Law, 5741-1981, shall
               apply, mutatis mutandis, to the interpretation of the Articles.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------



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| | 1.3. | The
captions in the Articles are for convenience only and shall not be deemed a
               part hereof or affect the interpretation of any provision hereof.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Name
|-- | ----

| | The
Name of the Company shall be Ellomay Capital Ltd., and in Hebrew:
| | ---------------------------------------------------------------------

|3. | Purpose
and Objective
|-- | ---------------------

| | 3.1. | The
objective of the Company shall be to undertake any lawful activity,
               including any objective set forth in the Memorandum (for as long as it is
in                effect).
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.2. | The
purpose of the Company is to operate in accordance with commercial
               considerations with the intention of generating profits. Such
considerations may                take into account, amongst others, public interest and
the interests of the                Companys creditors and employees. In addition,
the Company may contribute                reasonable amounts for any suitable purpose
even if such contributions do not                fall within the business considerations
of the Company. The Board may determine                the amounts of the contributions,
the purpose for which the contribution is to                be made, and the recipients
of any such contribution.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# II SHARE CAPITAL

|4. | Share
Capital
|-- | -------------

| | The
Companys authorized share capital will be NIS 170,000,000 divided into 170,000,000
ordinary shares of the Company, nominal value NIS 1.00 each.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------

|5. | Limited
Liability
|-- | -----------------

| | The
liability of the shareholders of the Company for the indebtedness of the Company shall be
limited to payment of the nominal value of such shares.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------

|6. | Alteration
of Share Capital
|-- | ---------------------------

| | The
Company may, from time to time, by a resolution approved at a General Meeting by such
majority as is required to amend these Articles (as set forth in Article 25 below), or, if
higher, such majority as shall be required to amend the Memorandum (for as long as it is
still in force) (collectively, a Determining Majority):
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.1. | Increase
its share capital in an amount it considers expedient by the creation                of
new shares. The power to increase the share capital may be exercised by the
               Company whether or not all of the shares then authorized have been issued
and                whether or not all of the shares theretofore issued have been called
up for                payment. Such resolution shall set forth the amount of the
increase, the number                of the new shares created thereby, their nominal
value and class, and may also                provide for the rights, preferences of
deferred rights that shall be attached to                the newly created shares and the
restrictions to which such shares shall be                subject;
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.2. | Consolidate
all or any of its issued or unissued share capital and divide same                into
shares of nominal value larger than the one of its existing shares;
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

2

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| | 6.3. | Subdivide
all or any of its issued or unissued share capital, into shares of                nominal
value smaller than the one of its existing shares; provided, however,                that
the proportion between the amount paid and the amount unpaid on each share
               which is not fully paid-up shall be retained in the subdivision;
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.4. | Cancel
any shares which, as at the date of the adoption of the resolution, have
               not been issued or agreed to be issued, and thereby reduce the amount of
its                share capital by the aggregate nominal value of the shares so
canceled;
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# III SHARES

|7. | Rights
Attached to Shares
|-- | -------------------------

| | 7.1. | Subject
to any contrary provisions of the Memorandum (for as long as it is in
               effect) or the Articles, same rights, obligations and restrictions shall
be                attached to all the shares of the Company regardless of their
denomination or                class.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2. | If
at any time the share capital is divided into different classes of shares,
               the rights attached to any class may be modified or abrogated by a
resolution                adopted by a Determining Majority at a General Meeting and by
the adoption of a                resolution, supported by a Determining Majority,
approving same modification or                abrogation at a General Meeting of the
holders of the shares of such class.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
provisions of the Articles relating to General Meeting of the Company shall apply, mutatis
mutandis, to any separate General Meeting of the holders of the shares of a specific
class, provided, however, that the requisite quorum at any such separate General Meeting
shall be one or more members present in person or by proxy and holding not less than
thirty three and one third percent (331/3%) of the issued shares of such class.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.3. | The
creation of additional shares of a specific class, or the issuance of
               additional shares of a specific class, shall not be deemed, for purposes
of                article 7.2, a modification or abrogation of rights attached to shares
of such                class or of any other class.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | Issuance
of Shares
|-- | ------------------

| | Issuance
of shares of the Company shall be under the control of the Board, who shall have the
authority to issue the Companys shares or grant options to acquire shares, to such
persons and on such terms and conditions as the Board may think fit, or to delegate such
authority in accordance with the Law.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. | Share
Certificates
|-- | ------------------

| | 9.1. | Each
member shall be entitled, not later than 60 days from the date of issuance
               or the date of transfer, to receive from the Company one share certificate
in                respect of all the shares of any class registered in his name on the
Register of                Members or, if approved by the Company, several share
certificates, each for one                or more of such shares.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.2. | Each
share certificate issued by the Company shall be numerated, denote the
               class of the shares represented thereby and the name of the owner, thereof
as                registered on the Register of Members, and may also specify the amount
paid-up                thereon. A share certificate shall be signed on behalf the Company
by the person                or persons authorized by the Board.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 9.3. | A
share certificate denoting two or more persons as joint owners of the shares
               represented thereby shall be delivered to any one of the persons named on
the                Register of Members in respect of such joint ownership.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.4. | A
share certificate defaced or defective, may be replaced upon being delivered
               to the Company and being canceled. A share certificate lost or destroyed
may be                replaced upon furnishing of evidence to the satisfaction of the
Board proving                such loss or destruction and subject to the submission to
the Company of an                indemnity letter and/or securities as the Board may
think fit.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | A
member requesting the replacement of a share certificate shall bear all expenses incurred
by the Company in connection with the provisions of this Article.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | Owners
of Shares
|--- | ----------------

| | The
Company shall be entitled to treat the person registered in the Register of Members as the
holder of any share, as the absolute owner thereof (a Registered
Holder) and shall also treat any other person deemed as a holder of shares
pursuant to the Law, as an owner of shares.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11. | Calls
on Shares
|--- | ---------------

| | 11.1. | The
Board may, from time to time, make calls upon members to perform payment of
               any amount of the consideration of their shares not yet paid, provided
same                amount is not, by the terms of issuance of same shares, payable at a
definite                date. Each member shall pay to the Company the amount of every
call so made upon                him at the time(s) and place(s) designated in such call.
Unless otherwise                stipulated in the resolution of the Board, each payment
with respect to a call                shall be deemed to constitute a pro-rata payment on
account of all of the shares                in respect of which such call was made.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.2. | A
call may contain a demand for payment in installments.
| | ----- | --------------------------------------------------------

| | 11.3. | A
call shall be made in writing and shall be delivered to the member(s) in
               question not less than fourteen (14) days prior to the date of payment
               stipulated therein. Prior to the due date stipulated in the call the Board
may,                by delivering a written notice to the member(s), revoke such call, in
whole or                in part, postpone the designated date(s) of payment or change the
designated                place of payment.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.4. | If,
according to the terms of issuance of any share, any amount is due at a
               definite date, such amount shall be paid on same date, and the holder of
the                same share shall be deemed, for all intents and purposes, to have duly
received                a call in respect of such amount.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.5. | The
joint holders of a share shall be bound jointly and severally to pay all
               calls in respect thereof. A call duly made upon one of the joint holders
shall                be deemed to have been duly made upon all of the joint holders.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.6. | Any
amount not paid when due shall bear an interest from its due date until its
               actual payment at a rate equal to the then prevailing rate of interest for
               unauthorized overdrafts as charged by Bank Hapoalim Ltd, unless otherwise
               prescribed by the Board.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | The
provisions of this Article 11.6 shall in no way deprive the Company of, or derogate from
any other rights and remedies the Company may have against such member pursuant to the
Articles or any pertinent law.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.7. | The
Board may agree to accept prepayment by any member of any amount due with
               respect to his shares, and may direct the payment of interest for such
               prepayment at a rate as may be agreed upon between the Board and the
member so                prepaying.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.8. | Upon
the issuance of shares of the Company, the Board may stipulate similar or
               different terms with respect to the payment of the consideration thereof
by                their respective holders.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12. | Forfeiture
and Surrender
|--- | ------------------------

| | 12.1. | If
any member fails to pay when due any amount payable pursuant to a call, or
               interest thereon as provided for herein, the Company may, by a resolution
of the                Board, at any time thereafter, so long as said amount or interest
remains                unpaid, forfeit all or any of the shares in respect of which said
call had been                made. All expenses incurred by the Company with respect to
the collection of any                such amount of interest, including, inter-alia,
attorneys fees and costs                of legal proceedings, shall be added to,
and shall constitute a part of the                amount payable to the Company in
respect of such call for all purposes                (including the accrual of interest
thereon).
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 12.2. | Upon
the adoption of a resolution of forfeiture, the Board shall cause the
               delivery of a notice thereof to the member in question. Same notice shall
               specify that, in the event of failure to pay the entire amount due within
the                period stipulated in the notice (which period shall be not less than
thirty (30)                days), same failure shall cause, ipso facto, the forfeiture of
the shares. Prior                to the expiration of such period, the Board may extend
the period specified in                the notice of forfeiture or nullify the resolution
of forfeiture, but such                nullification shall not estop nor derogate from
the power of the Board to adopt                a further resolution of forfeiture in
respect of the non-payment of said amount.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 12.3. | Whenever
shares are forfeited as herein provided, all dividends theretofore
               declared in respect thereof and not actually paid shall be deemed to have
been                forfeited together with the shares.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 12.4. | The
Company, by a resolution of the Board, may accept the voluntary surrender by
               any member of all or any part of his shares.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------

| | 12.5. | Any
share forfeited or surrendered as provided herein shall thereupon constitute
               the property of the Company, and may be resold. Such shares that have not
yet                been resold shall be considered dormant shares.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 12.6. | Any
member whose shares have been forfeited or surrendered shall cease to be a
               member in respect of the forfeited or surrendered shares, but shall,
               notwithstanding, be obligated to pay to the Company all amounts at the
time of                forfeiture or surrender due to the Company with respect thereof,
including                interest and expenses as aforesaid until actual repayment,
whether the maturity                date of same amounts is on or prior to the date of
forfeiture or surrender or at                any time thereafter, and the Board, in its
discretion, may enforce payment of                such amounts or any part thereof,
unless such shares have been resold in which                event the provisions of the
Law shall apply. In the event of such forfeiture or                surrender, the
Company, by a resolution of the Board, may accelerate the                maturity date(s)
of any or all amounts then owed to the Company by same member                and not yet
due, however, arising whereupon all of such amounts shall forthwith                become
due and payable.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | The
Board may, at any time before any share so forfeited or surrendered shall have been
reissued or otherwise disposed of to a third party, nullify the forfeiture or the
acceptance of the surrender on such conditions as it thinks fit, but such nullification
shall not estop nor derogate from the power of the Board to re-exercise its powers of
forfeiture pursuant to this Article 12.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13. | Lien
|--- | ----

| | 13.1. | The
Company shall have, at all times, a first and paramount lien upon all the
               shares registered in the name of each member on the Register of Members,
upon                all the dividends declared in respect of such shares and upon the
proceeds of                the sale thereof, as security for his obligations. For the
purposes of this                Article 13 and of Article 14, the term Obligation shall
mean any and                all present and future indebtedness owed to the Company by a
member with respect                to his shares, however arising, whether such
indebtedness is absolute or                contingent, joint or several, matured or
unmatured, liquidated or                non-liquidated.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.2. | Shall
a member fail to fulfill any or all of his Obligations, the Company may
               enforce the lien, after same member was provided with a period of fourteen
(14)                days to fulfill the Obligations so breached.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.3. | A
member shall be obliged to reimburse the Company for all expenses thereby
               incurred with respect to the enforcement of a lien upon same members
               shares, and such obligation shall be secured by the shares which are
subject to                same lien.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|14. | Sale
of Shares after Forfeiture or Surrender or in Enforcement of Lien
|--- | ----------------------------------------------------------------------

| | 14.1. | Upon
any sale of shares after forfeiture or surrender or in the course of
               enforcement of a lien, the Company may appoint any person to execute an
adequate                instrument of transfer or any other instrument required to effect
the sale, and                shall be entitled to register the purchaser on the Register
of Members as the                holder of the shares so purchased. The purchaser shall
not be obliged to check                the regularity of the proceedings of forfeiture,
surrender or enforcement of a                lien or the use that was made consideration
thereby paid with respect to the                shares.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | As
of the entry of the purchasers name in the Register of Members in respect of such
shares, the validity of the sale shall not be rebutted, and the sole remedy of any person
aggrieved by the sale shall be in damages, and against the Company solely.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 14.2. | The
net proceeds of any such sale, after payment of the selling expenses, shall
               serve for repayment of the Obligations of the respective member, and the
balance                if any shall be paid to the member, his inheritors, the executors
of his will,                the administrators of his estate, and to persons on his
behalf.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15. | Redeemable
Securities
|--- | ---------------------

| | Subject
to the Law, the Company may issue redeemable securities and redeem the same.
| | ------------------------------------------------------------------------------------

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|16. | Effectiveness
of Transfer of Shares
|--- | -----------------------------------

| | A
transfer of title to shares of the Company, whether voluntarily or by operation of law,
shall not confer upon the transferee any rights towards the Company as a Registered Holder
unless and until such time as the transfer has been registered in the Register of Members.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17. | Procedure
on Voluntary Transfer of Shares
|--- | -----------------------------------------

| | A
person desiring to be registered as a Registered Holder, shall deliver to the Company an
instrument of transfer of shares according to which he is the transferee accompanied by a
notice to the effect, in a form to be prescribed by the Board, duly executed by such
person and the transferor, and subject to the prior fulfillment of the provisions of
Article 18 below, the Board shall instruct the registration of same in the Register of
Members.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18. | Transfer
of Shares
|--- | ------------------

| | 18.1. | The
transfer of shares of the Company and any other securities issued by the
               Company and owned by a Registered Holder (in this Article 18, hereinafter,
               Securities) shall be made in writing in a conventional
manner                or as established by the Board; it may be effected by the signature
of the                transferor only, on the condition that an appropriate share
transfer deed shall                be submitted to the Company.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.2. | Securities
that are not paid up in full or are subject to any lien or pledge may                not
be transferred unless the transfer is approved by the Board, which may at
               its sole discretion withhold its approval without having to show grounds.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.3. | Any
transfer of Securities that are not paid up in full shall be subject to the
               signature of the transferee and the signature of a witness in verification
of                the authenticity of the signatures on the share transfer deed.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.4. | The
transferor shall be deemed to be the Registered Holder of the transferred
               Securities until the name of the transferee is entered in the Register of
               Members.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.5. | The
share transfer deed shall be submitted to the office for registration
               together with the certificates to be transferred and such other evidence
as the                Company may require with regard to the transferors title or
right to                transfer the Securities. The share transfer deed shall remain
with the Company                after its registration.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.6. | The
Company may demand payment of a transfer registration fee at a rate to be
               determined by the Board from time to time.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------

| | 18.7. | The
Board may close the Register of Members for a period no longer than 30 days
               every year.
| | ----- | ----------------------------------------------------------------------------------------------------------

| | 18.8. | Upon
the death of a Registered Holder of Securities of the Company, the Company
               shall recognize the guardians, administrators of the estate, executors of
the                will, and in the absence of such persons, the inheritors of the
deceased person                as the only ones entitled to be registered as the
Registered Holders of                Securities of the Company, subject to proof of their
rights in a manner                established by the Board.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.9. | In
the event of the deceased member being a Registered Holder of a Security
               jointly with other persons, the surviving member shall be considered the
sole                Registered Holder of said Securities, upon the approval of the
Company, without                exempting the estate of the deceased joint holder from
any of the obligations                relating to the jointly held Securities.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 18.10. | A
person acquiring a right to a Security by virtue of his being a guardian or
               administrator of the estate or inheritor of the deceased member, or
receiver,                liquidator or trustee in liquidation proceedings regarding a
corporate member,                or by any operation of law, may be subject to submission
of such proof of                entitlement as the Board may establish be entered as the
Registered Holder of                the respective Security or transfer the Security
subject to the provisions of                the Articles with regard to such transfer.
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.11. | A
person acquiring a Security as a result of a transfer by operation of law
               shall be entitled to dividends and other rights in respect of the Security
and                also to receive and certify the receipt of dividends and other sums of
money in                connection with the said Security; however, such person shall not
be entitled to                receive notices of the convening of General Meetings of the
Company or to                participate or vote therein or to exercise any right
conferred by the Security                with the exception of the aforementioned rights,
pending the registration of                such person in the Register of Members.
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19. | Issuance
of Shares
|--- | ------------------

| | The
number of shares, and other securities convertible or exercisable into shares, issued by
the Company shall not exceed a maximum amount equal to the registered share capital of the
Company; for this purpose, securities convertible or exercisable into shares, shall be
considered as having been converted or exercised on the date of issuance.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# IV GENERAL MEETINGS

|20. | Annual
Meeting
|--- | --------------

| | 20.1. | An
Annual Meeting shall be held once in every calendar year at such time (within
               a period of not more than fifteen (15) months after the last preceding
Annual                Meeting) and at such place as may be determined by the Board.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 20.2. | The
Annual Meeting shall:
| | ----- | -------------------------

| | 20.2.1. | Discuss
the audited financial statements of the Company for the last fiscal                year;
| | ------- | ------------------------------------------------------------------------------------------------

| | 20.2.2. | Appoint
auditors and establish their remuneration, or empower the Board to
               establish their remuneration;
| | ------- | -----------------------------------------------------------------------------------------------------------------------

| | 20.2.3. | Appoint
the directors as stipulated in Article 32 below, and establish their
               remuneration;
| | ------- | ---------------------------------------------------------------------------------------------------------

| | 20.2.4. | Discuss
any other business to be transacted at a General Meeting according to                the
Articles or by operation of law.
| | ------- | ---------------------------------------------------------------------------------------------------------------------------------

|21. | Extraordinary
Meeting
|--- | ---------------------

| | 21.1. | All
General Meetings other than Annual Meetings shall be called                Extraordinary
Meetings.
| | ----- | --------------------------------------------------------------------------------------------------------

| | 21.2. | The
Board may, whenever it thinks fit, convene an Extraordinary Meeting, and
               shall be obligated to do so upon receipt of a requisition in writing in
               accordance with Section 63 of the Law.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 21.3. | Members
of the Company shall not be authorized to convene an Extraordinary                Meeting
except as provided in Section 64 of the Law.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------

8

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|22. | Notice
of General Meetings
|--- | --------------------------

| | 22.1. | Prior
to any General Meeting, a written notice thereof shall be made
               public as required by Law. Such notice shall specify the place, the day
and the                hour of the General Meeting, the agenda of the meeting and such
other                information required under law. The notice will be published not
less than                fourteen (14) days prior to any General Meeting. The Company
shall not be                required to deliver notice to each shareholder, except as may
be specifically                required by Law.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 22.2. | Any
written notice or other document may be served by the Company upon any
                    member either personally or by sending it by prepaid mail addressed
to such                     member at his address as described in the Register of Members
or such other                     address as he may have designated in writing for the
receipt of notices and                     other documents.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 22.3. | Notwithstanding
anything to the contrary herein, notice by the Company of a                     General
Meeting which is published in one international wire service shall be
                    deemed to have been duly given on the date of such publication.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|23. | Quorum
|--- | ------

| | 23.1. | Two
or more members present in person or by proxy and holding shares conferring
               in the aggregate more than twenty-five percent (25%) of the total voting
power                attached to the shares of the Company, shall constitute a quorum at
General                Meetings. No business shall be considered or determined at a
General Meeting,                unless the requisite quorum is present when the General
Meeting proceeds to                consider and/or determine same business.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 23.2. | If
within half an hour from the time appointed for the General Meeting a quorum
               is not present, the General Meeting shall, if convened upon requisition
under                Section 64 of the Law, be dissolved, but in any other case it shall
stand                adjourned on the same day, in the next week, at the same time and
place. The                requisite quorum at an adjourned General Meeting shall be any
two or more                members, present in person or by proxy. At an adjourned
General Meeting the only                businesses to be considered shall be those
matters which might have been                lawfully considered at the General Meeting
originally called if a requisite                quorum had been present, and the only
resolutions to be adopted are such types                of resolutions which could have
been adopted at the General Meeting originally                called.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|24. | Chairman
|--- | --------

| | The
Chairman, of the Board, or if there is no such chairman, or if he is not present, any
other person appointed by the members present, shall preside as Chairman at a General
Meeting of the Company. The Chairman of any General Meeting shall have no additional or
casting vote.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|25. | Adoption
of Resolution at General Meetings
|--- | ------------------------------------------

| | 25.1. | A
resolution, including, but not limited to, a resolution to amend these
               Articles and to approve a merger of the Company, shall be deemed adopted
at a                General Meeting if the requisite quorum is present and the resolution
is                supported by members present, in person or by proxy, vested with more
than fifty                percent (50%) of the total voting power attached to the shares
whose holders                were present, in person or by proxy, at such General Meeting
and voted thereon,                or such other percentage as is required by these
Articles or by the Law.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 25.2. | Any
proposed resolution put to vote at a General Meeting shall be decided by a
               poll.
| | ----- | ---------------------------------------------------------------------------------------------------

| | 25.3. | Subject
to approval by a General Meeting at which the requisite quorum is                present,
the chairman is obligated at the request of the General Meeting, to
               adjourn the General Meeting, and the adjourned meeting shall convene at
such                date and place as is decided by the General Meeting. If the General
Meeting is                adjourned by more than twenty-one (21) days, a notice of the
adjourned meeting                shall be given in the manner set forth in Sections 67
through 69 of the Law. An                adjourned meeting may only transact such
business as left unfinished at the                original meeting.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 25.4. | A
declaration by the Chairman of the General Meeting that a proposed resolution
               has been adopted or rejected, shall constitute conclusive evidence of the
               adoption or rejection, respectively, of same resolution, and no further
proof                verifying the contents of such declaration or the number or
proportion of the                votes recorded in favor of or against such resolution
shall be required.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 25.5. | Notwithstanding
anything to the contrary herein, for so long as the Shareholders                Agreement
is in effect, at the written request of any two directors with respect                to
any proposed action or transaction described below, such action or
               transaction shall require the approval of the General Meeting by a
resolution                supported by members present, in person or by proxy, vested
with at least 50.1%                of the outstanding shares of the Company, or by such
higher approval threshold                as may be required by Law:
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 25.5.1. | any
transaction of the Company or of a subsidiary of the Company with (i) an
               Officer of the Company or a nominee to become a director of the Company,
(ii) a                shareholder of the Company which owns 5% or more of its outstanding
share                capital, (iii) a family member of the first degree of any of the
foregoing                persons or (iv) an Affiliate of any of the foregoing. Officer               shall
have the meaning of office holder under the Law.                Affiliate shall
mean, with respect to any party, any person                (a) in which such party,
directly or indirectly, owns at least majority interest                (both economic and
voting), (b) which directly or indirectly owns a majority                interest (both
economic and voting) in such party, or (c) which, directly or                indirectly,
is in Control of or is Controlled by such party.                Control shall
mean, with respect to a person that is a                corporation, the ownership,
directly or indirectly, of voting securities of such                person carrying more
than 50% of the voting rights attaching to all voting                securities of such
person which are sufficient, if exercised, to elect a                majority of its
board of directors, and in relation to a person that is a                partnership,
limited partnership, business trust or other similar entity, the
               ownership, directly or indirectly, of voting securities of such person
carrying                more than 50% of the voting rights attaching to all voting
securities of the                person or the ownership of other interests entitling the
holder to exercise                control and direction over the activities of such
person;
| | ------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10

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| | 25.5.2. | any
amendment to the Memorandum or these Articles;
| | ------- | --------------------------------------------------

| | 25.5.3. | any
merger or consolidation of the Company;
| | ------- | -------------------------------------------

| | 25.5.4. | any
material change in the Companys scope of business;
| | ------- | -------------------------------------------------------

| | 25.5.5. | the
voluntary liquidation or dissolution of the Company;
| | ------- | --------------------------------------------------------

| | 25.5.6. | approval
of the Companys annual budget and business plan, and any material
               deviation therefrom; and
| | ------- | -------------------------------------------------------------------------------------------------------------------

| | 25.5.7. | any
change of the signatory rights on behalf of the Company.
| | ------- | ------------------------------------------------------------

|26. | Voting
Power
|--- | ------------

| | 26.1. | Subject
to the provisions of Article 27.1 below and subject to any other                provision
hereof pertaining to voting rights attached or not-attached to shares                of
the Company, whether in general or in respect of a specific matter or
               matters, every member shall have one vote for each share registered in his
name                on the Register of Members, regardless of its denomination or class.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 26.2. | In
case of equality of votes, the resolution shall be deemed to have been
               rejected.
| | ----- | --------------------------------------------------------------------------------------------------

|27. | Attendance
and Voting Rights at General Meeting
|--- | -----------------------------------------------

| | 27.1. | Unless
provided otherwise by the terms of issue of the shares, no member shall                be
entitled to be present or vote at a General Meeting (or be counted as part of
               the quorum thereat) unless all amounts due as at the date designated for
same                General Meeting with respect to his shares were paid.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 27.2. | A
corporate body being a member of the Company and entitled to vote and/or
               attend at a General Meeting may exercise such rights by authorizing any
person,                whether in general or for a specific General Meeting, to be
present and/or vote                on its behalf. Upon the request of the Chairman of the
General Meeting, a                writing evidence of such authorization and its validity
(in a form acceptable to                the Chairman) shall be furnished thereto.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 27.3. | A
member entitled to vote and/or attend at a General Meeting may appoint a
               proxy, whether is general or for a specific General Meeting, to exercise
such                rights, in a form approved by the Board.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 27.4. | The
instrument appointing a proxy shall be delivered to the Company not later
               than forty-eight (48) hours before the time designated for the General
Meeting                at which the person named in the instrument proposes to vote
and/or attend.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 27.5. | A
member entitled to vote and/or attend at a General Meeting and is legally
               incapacitated, may exercise such rights by his custodian.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------

11

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| | 27.6. | If
two or more persons are registered as joint owners of any share, the right to
               attend at a General Meeting, if attached to such share, shall be conferred
upon                all of the joint owners, but the right to vote at a General Meeting
and/or the                right to be counted as part of the quorum thereat, if attached
to such share,                shall be conferred exclusively upon the senior amongst the
joint owners                attending the General Meeting, in person or by proxy; and for
this purpose                seniority shall be determined by the order in which the names
appear on the                Register of Members.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 27.7. | The
voting on the terms of the instrument of proxy shall be legal even in case
               of prior death or incapacity or bankruptcy of the principal, and in
respect of a                corporate principal, in case of its winding up or revocation
of the instrument                of proxy or transfer of the respective share, unless a
notice in writing of such                death or incapacity or bankruptcy or winding up
or revocation of share transfer                shall have been received by the Register
of Members.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
written notice of revocation of the proxy shall be valid if signed by the principal and
received by the Register of Members not later than one hour before the start of voting.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 27.8. | No
proxy shall be valid after the expiry of 12 months from the date of its           issue.
| | ----- | -------------------------------------------------------------------------------------------

# V BOARD OF DIRECTORS

|28. | Powers
of the Board
|--- | -------------------

| | 28.1. | The
Board shall be vested with the exclusive authority to exercise all of the
               Companys powers which are not, by Law, the Memorandum (for as long
as it                is in effect), the Articles or any applicable law, required to be
exercised by                the General Meeting, the General Manager, or any other organ
of the Company as                such term is defined in the Law.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 28.2. | The
Board shall set the policy guidelines for the Company and shall supervise
               the performance and activities of the General Manager.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------

|29. | Exercise
of Powers of the Board
|--- | -------------------------------

| | 29.1. | The
powers conferred upon the Board shall be vested in the Board as a collective
               body, and not in each one or more of the directors individually, and all
such                powers may be exercised by the Board by adopting resolutions in
accordance with                the provisions of the Articles.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 29.2. | Except
as otherwise required by these Articles, a resolution shall be deemed
               adopted at a meeting of the Board if supported by a majority of the
directors                attending such meeting and entitled to vote thereon. The
Chairman of the Board                shall have no casting vote, except as set forth in
Article 41.2.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 29.3. | The
Board may hold meetings using any means of communication, provided that all
               of the directors participating can simultaneously hear one another.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 29.4. | The
Board may adopt resolutions without convening a meeting, as provided in the
               Law.
| | ----- | ---------------------------------------------------------------------------------------------------

12

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|30. | Committees
of Directors
|--- | -----------------------

| | 30.1. | The
Board may, subject to Section 112 of the Law, delegate any or all of its
               powers to committees, each consisting of two or more directors, one of
which                shall be an External Director, and it may, from time to time, revoke
or alter                the powers so delegated. Without derogating from the generality
of the                foregoing, subject to the Law, the Board may delegate to a
committee its power                to approve the terms of compensation of officers. Each
committee shall, in the                exercise of the powers so delegated, conform to
any regulations and conditions                prescribed by the Board upon the delegation
or at any other time. Each                resolution adopted by a committee within the
powers delegated to it by the Board                shall be deemed to have been held by
the Board.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 30.2. | The
Board will appoint from among its members an audit committee. All External
               Directors shall be members of the audit committee.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------

| | 30.3. | The
provision of the Articles with respect to the meetings of the Board, their
               convening and adoption of resolutions thereat shall apply, mutatis
mutandis, to                the meetings of any such committee, unless otherwise
prescribed by the Board.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|31. | Number
of Directors
|--- | -------------------

| | Unless
otherwise prescribed by a resolution adopted at a General Meeting, the Board shall consist
of not less than four (4) nor more than eight (8) directors (including the External
Directors appointed as required under the Law).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|32. | Appointment
and Removal of Directors
|--- | ------------------------------------

| | 32.1. | The
directors shall be elected annually at a General Meeting as aforesaid and
               shall remain in office until the next Annual Meeting at which time they
shall                retire, unless their office is vacated previously as stipulated in
the Articles,                provided however that the External Directors shall be
appointed, and shall                remain in office, as prescribed in the Law.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 32.2. | The
elected directors shall assume office on the day of their election.
| | ----- | -----------------------------------------------------------------------

| | 32.3. | A
retiring director may be reelected. Pending the convening of an Annual Meeting
               at which the directors are to retire from office, all directors shall
remain in                office until the convening of the Annual Meeting of the Company
except in case                of prior vacation of a directors office according to
the Articles.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 32.4. | If
no directors are elected at the Annual Meeting, all the retiring directors
               shall remain in office pending their replacement by a General Meeting of
the                Company.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 32.5. | Except
with regard to a director whose tenure of office expires upon the
               convening of a General Meeting or a person recommended by the Board to
serve as                director, no motions for appointment of a candidate as a director
shall be made                unless a notice in writing signed by a member of the Company
(other than the                candidate himself) who is entitled to participate in and
vote at the meeting,                stating the intent of the said member to propose a
candidate for election to the                office of director, together with a document
in writing by the candidate                expressing his consent to be so elected, shall
have been received at the office                of the Company within a period of not
less than forty-eight (48) hours and not                more than forty-two (42) days
before the appointed date of the General Meeting.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 32.6. | The
General Meeting may, by way of a resolution, remove a director from office
               before the expiry of his tenure, and appoint another person to serve as
director                of the Company in his place, and also appoint a number of
directors in the event                of the number of directors having decreased below
the minimum established by the                General Meeting.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 32.7. | The
provisions of this Article 32 shall not apply to External Directors, whose
               appointment and removal shall be pursuant to the relevant provisions of
the Law.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|33. | Qualification
of Directors
|--- | --------------------------

| | No
person shall be disqualified to serve as a director by reason of his not holding shares in
the Company or by reason of his having served as director in the past.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
provisions of this Article 33 shall not apply to External Directors, whose qualifications
are as set forth in the relevant provisions of the Law.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------

|34. | Vacation
of Directors Office
|--- | -----------------------------

| | The
office of a director shall be vacated:
| | ------------------------------------------

| | 34.1. | Upon
his death;
| | ----- | ---------------

| | 34.2. | On
the date at which he is declared a bankrupt;
| | ----- | -----------------------------------------------

| | 34.3. | On
the date he is declared legally incapacitated;
| | ----- | -------------------------------------------------

| | 34.4. | On
the date stipulated therefor in the resolution of his election or the notice
               of his appointment, as the case may be;
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------

| | 34.5. | On
the date stipulated therefor in the resolution or notice of his removal or on
               the date of the delivery of such notice to the Company, whichever is
later;
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 34.6. | On
the date stipulated therefor in a written notice of resignation thereby
               delivered to the Company or upon its delivery to the Company, whichever is
               later.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 34.7. | If
he is convicted in a final judgment of an offence of a nature which
               disqualifies a person from serving as a director, as set forth in the Law.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 34.8. | If
a court of competent jurisdiction decides to terminate his office, in
               accordance with the provisions of the Law, in a decision or judgment for
which                no stay of enforcement is granted.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|35. | Remuneration
of Directors
|--- | -------------------------

| | The
directors shall be entitled to remuneration by the Company for their services as
directors. The remuneration may be established as a global sum or as a fee for
participation in meetings. In addition to such remuneration, every director shall be
entitled to a refund of reasonable expenses for travel, per diem money, and other expenses
related to the discharge of his duties as a director.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
provisions of this Article 35 shall not apply to External Directors, whose remuneration
shall be in accordance with the relevant provisions of the Law.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------

14

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|36. | Conflict
of Interests
|--- | ---------------------

| | The
approval of any transaction that involves a conflict of interest with an Officer shall be
approved in accordance with the Law and these Articles.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------

|37. | Alternate
Director
|--- | ------------------

| | 37.1. | Subject
to the approval of the Board, a director may, by delivering a written
               notice to the Company, appoint an alternate for himself (hereinafter
referred to                as AlternateDirector), remove such
Alternate                Director and appoint another Alternate Director in place of any
Alternate                Director appointed by him whose office has been vacated for any
reason                whatsoever. The appointment of the Alternate Director shall be for
an indefinite                period and for all purposes, unless restricted to a specific
period, to a                specific meeting or act of the Board, to a specific matter or
in any other                manner, and same restriction was specified in the appointment
instrument or in a                written note delivered to the Company.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 37.2. | Any
notice delivered to the Company pursuant to Article 37.1 shall become
               effective on the date specified therefor therein or upon delivery thereof
to the                Company or upon approval of the Board, whichever is later.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 37.3. | An
Alternate Director shall be vested with all rights and shall bear all
               obligations of the director who appointed him, provided, however, that he
shall                not be entitled to appoint an alternate for himself (unless the
instrument                appointed him expressly provides otherwise), and provided
further that the                Alternate Director shall have no standing at any meeting
of the Board or any                committee thereof whereat the director who appointed
him is present.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 37.4. | The
following may not be appointed nor serve as an Alternate Director: (i) a
               person not qualified to be appointed as a director, (ii) an actual
director, or                (iii) another Alternate Director.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 37.5. | The
office of an Alternate Director shall be vacated under the circumstances,
               mutatis mutandis, set forth in Article 34, and such office shall further
be ipso                facto vacated if the director who appointed such Alternate
Director ceases to be                a director.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|38. | Meeting
of the Board
|--- | --------------------

| | 38.1. | Subject
to Articles 40 and 41 below, the Board may meet, adjourn its meeting and
               otherwise determine and regulate such meetings and their proceedings as it
deems                fit.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 38.2. | Upon
the vacation of the office of a director, the remaining directors may
               continue to discharge their functions until the number of remaining
directors                decreases below the minimum established in the Articles. In the
latter case the                remaining directors may only act to convene a General
Meeting of the Company.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 38.3. | The
Board, by unanimous approval of all directors then in office, may at any
               time appoint any person to serve as director as replacement for a vacated
office                or in order to increase the number of directors, subject to the
condition that                the number of directors shall not exceed the maximum
established in these                Articles. Any so appointed director shall remain in
office until the next Annual                Meeting, at which he may be reelected.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

15

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|39. | Convening
Meetings of the Board
|--- | -------------------------------

| | 39.1. | The
Chairman of the Board may, at any time, convene a meeting of the Board, and
               shall be obliged to do so (i) at least once every three months, (ii) upon
               receipt of a written demand from any one director, or (iii) in accordance
with                Section 122(4) or 169 of the Law. In the event there is no such
Chairman or a                meeting of the Board was not convened to a date which is no
later then ten (10)                days following delivery of such written demand or
receipt of the relevant notice                or report, any of the abovementioned
directors may convene a meeting of the                Board.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Convening
a meeting of the Board shall be made by delivering a notice thereof to all of the
directors within a reasonable length of time prior to the date thereof. Such notice shall
specify the exact time and place of the meeting so called and a reasonably detailed
description of the all of the issues on the agenda for such meeting.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 39.2. | A
resolution adopted at a meeting of the Board, which had not convened in
               accordance with the necessary requirements set forth in the Law or these
               Articles may be invalidated in accordance with the applicable provisions
of the                Law.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 39.3. | A
director may waive his right to receive prior notice of any meeting, in
               general or in respect of a specific meeting, and shall be deemed to have
waived                such right with respect to any meeting at which he was present.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|40. | Quorum
|--- | ------

| | A
majority of the number of directors then in office and entitled to participate in the
discussion shall constitute a quorum at meetings of the Board, except if and as otherwise
required in accordance with the Law. No business shall be considered or determined at any
meeting of the Board unless the requisite quorum is present when the meeting proceeds to
consider or determine same business.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|41. | Chairman
of the Board
|--- | ---------------------

| | 41.1. | The
Board may from time to time elect one of its members to be the Chairman of
                    the Board, remove such Chairman from office and appoint another in
his place.                     However, the General Manager shall not serve as the
Chairman of the Board, nor                     shall the Chairman of the Board be vested
with the powers designated to the                     General Manager, except in
accordance with Section 121(3) of the Law. The                     Chairman of the Board
shall preside at every meeting of the Board, but if there                     is no such
Chairman, or if he is not present or he is unwilling to take the
                    chair at any meeting, the directors present shall elect one of their
members to                     be chairman of such meeting.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 41.2. | The
Chairman of the Board shall have no casting vote, unless (i) the Chairman of
                    the Board is then Mr. Shlomo Nehama and (ii) Nechama Investments,
together with                     any Affiliates thereof, then holds at least 25.05% of
the outstanding shares of                     the Company. Notwithstanding the foregoing,
in case Mr. Shlomo Nehama elects to                     exercise his casting vote in
respect of a specific resolution brought before the                     Board (the Triggering
Resolution), then (a) prior to such                     exercise, Nechama
Investments shall be required to trigger the Buy Me Buy                     You mechanism
set forth in Section 6 of the Shareholders Agreement as an                     Offering
Party (as defined in the Shareholders Agreement), whereby the
                    Triggering Resolution will be pending until the consummation of the
sale of the                     Restricted Shares (as defined in the Shareholders
Agreement) of one party to the                     Shareholders Agreement to the other
party of the Shareholders Agreement in                     accordance with such Buy
Me Buy You mechanism; and (b) in the event                     that three (3)
directors of the Company so require, the Triggering Resolution                     shall
be conditioned upon the approval of the General Meeting pursuant to
                    Article 25.1. Upon a transfer of the Restricted Shares by Kanir to
third party                     in accordance with the terms of the Shareholders
Agreement, the casting vote of                     the Chairman of the Board shall
expire.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

16

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# VI GENERAL MANAGER

|42. | General
Manager
|--- | ---------------

| | 42.1. | The
Board shall appoint one or more persons, whether or not directors, as
               General Manager(s) of the Company, either for a definite period or without
any                limitation of time, and may confer powers, authorities and rights
and/or impose                duties and obligations upon such person or persons and
determine his or their                salaries as the Board may deem fit and subject to
the provisions of the Law.                Subject to the Law, the Board may delegate to
the General Manager its power to                approve the terms of compensation of
other officers.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# VII MINUTES OF THE
BOARD

|43. | Minutes
|--- | -------

| | 43.1. | The
proceedings of each meeting of the Board and meeting of committee of the
               Board shall be recorded in the minutes of the Company. Such minutes shall
set                forth the names of the persons present at every such meeting and all
resolutions                adopted thereat and shall be signed by the chairman of the
meeting.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 43.2. | All
minutes approved and signed by the chairman of the meeting or the Chairman
               of the Board, shall constitute prima facie evidence of its contents.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

# VIII INTERNAL AUDITOR

|44. | Internal
Auditor
|--- | ----------------

| | 44.1. | The
Board shall appoint an internal auditor in accordance with the provisions of
               the Law.
| | ----- | --------------------------------------------------------------------------------------------------------

| | 44.2. | The
Internal Auditor shall submit to the audit committee a proposal for an
               annual or periodic work program for its approval. The Audit Committee
shall                approve such proposal subject to the modifications which it
considers necessary.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 44.3. | The
General Manager shall be in charge of and supervise the Internal                auditors
performance of its obligations.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------

# IX DIVIDENDS AND
PROFITS

|45. | Declaration
of Dividends
|--- | ------------------------

| | 45.1. | The
Board may, from time to time, subject to the provisions of the Law, declare
               a dividend at a rate as the Board may deem considering the accrued profits
of                the Company as set forth in its financial statements, and provided that
the                payment of such dividends will not reasonably prevent the Company from
meeting                its current and expected liabilities.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

17

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| | 45.2. | Subject
to any special or restricted rights conferred upon the holders of shares
               as to dividends, all dividends shall be declared and paid in accordance
with the                paid-up capital of the Company attributable to the shares in
respect of which                the dividends are declared and paid. The paid-up capital
attributable to any                share (whether issued at its nominal value, at a
premium or at a discount),                shall be nominal value of such share. Provided,
however that if the entire                consideration for same share was not yet paid
to the Company, the paid-up                capital attribute thereto shall be such
proportion of the nominal value as the                amount paid to the Company with
respect to the share bears to its full                consideration, and further provided
the amounts which have been prepaid on                account of shares and the Company
has agreed to pay interest thereon shall not                be deemed, for the purposes
of this Article, to be payments on account of such                shares. In the event no
amount has been paid with respect to any shares                whatsoever, dividends may
be declared and paid according to the nominal value of                the shares.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 45.3. | Notice
of the declaration of dividends shall be published as required by
               applicable law.
| | ----- | -------------------------------------------------------------------------------------------------------

|46. | Rights
to Participate in the Distribution of Dividends
|--- | ------------------------------------------------------

| | 46.1. | Subject
to special rights with respect to the Companys profits to be
               conferred upon any person pursuant to these Articles and the Law, all the
               profits of the Company may be distributed among the members entitled to
               participate in the distribution of dividends.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 46.2. | Notwithstanding
for foregoing, a holder of shares shall not be attributed with                the right
to participate in the distribution of dividends the record date for                which
preceded the date of issuance of such shares.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|47. | Interest
on Dividends
|--- | ---------------------

| | The
Company shall not be obligated to pay, and shall not pay interest on declared dividends.
| | --------------------------------------------------------------------------------------------

|48. | Payment
of Dividends
|--- | --------------------

| | Subject
to Article 49, a declared dividend may be paid by wire transfer or a check made to the
order of the person entitled to receive such dividend (and if there are two or more
persons entitled to the dividend in respect of the same share  to the order of any
one of such persons) or to the order of such person as the person entitled thereto may
direct in writing. Same check shall be sent to the address of the person entitled to the
dividend, as notified to the Company.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|49. | Payment
in Specie
|--- | -----------------

| | Upon
the recommendation of the Board, dividends may be paid, wholly or partly, by the
distribution of specific assets of the Company and/or by the distribution of shares and/or
debentures of the Company and/or of any other company, or in any combination of such
manners.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|50. | Setting-Off
Dividends
|--- | ---------------------

| | The
Companys obligation to pay dividends or any other amount in respect of shares, may
be set-off by the Company against any indebtedness, however arising, liquidated or
non-liquidated, of the person entitled to receive the dividend.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

18

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| | The
provisions contained in this Article shall not prejudice any other right or remedy vested
with the Company pursuant to the Articles or any applicable law.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------

|51. | Unclaimed
Dividends
|--- | -------------------

| | 51.1. | Dividends
unclaimed by the person entitled thereto within thirty (30) days after                the
date stipulated for their payment, may be invested or otherwise used by the
               company, as it deems fit, until claimed; but the Company shall not be
deemed a                trustee in respect thereof.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 51.2. | Dividends
unclaimed within the period of seven (7) years from the date                stipulated
for their payment, shall be forfeited and shall revert to the                Company,
unless otherwise directed by the Board.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|52. | Reserves
and Funds
|--- | ------------------

| | 52.1. | The
Board may, before recommending the distribution of dividends, determine to
               set aside out of the profits of the Company or out of an assets
revaluation fund                and carry to reserve or reserves such sums as it deems
fit, and direct the                designation, application and use of such sums. The
Board may further determine                that any such sums which it deems prudent not
to distribute as dividends will                not be set aside for reserve, but shall
remain as such at the disposal of the                Company.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 52.2. | The
Board may, from time to time, direct the revaluation of the assets of the
               Company, in whole or in part, and the creation of an assets revaluation
fund out                of the revaluation surplus, if any.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|53. | Capitalization
of Profits
|--- | -------------------------

| | 53.1. | The
Board may capitalize all or any part of the sums or assets allocated to the
               credit of any reserve fund or to the credit of the profit and loss account
or                being otherwise distributable as dividends (including sums or assets
received as                premiums on the issuance of shares or debentures), and direct
accordingly that                such sums or assets be released for distribution amongst
the members who would                have been entitled thereto if distributed by way of
dividends and in the same                proportion; provided that same sums or assets be
not paid in cash or in specie                but be applied for the payment in full or in
part of the unpaid consideration of                the issued shares held by such members
and/or for the payment in full of the                consideration (as shall be
stipulated in said resolution) for shares or                debentures of the Company to
be issued to such members subsequent to the date of                said resolution,
credited as fully paid up.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 53.2. | In
the event a resolution as aforesaid shall have been adopted, the Board shall
               make all adjustments and applications of the moneys or assets resolved to
be                capitalized thereby, and shall do all acts and things required to give
effect                thereto. The Board may authorize any person to enter into agreement
with the                Company on behalf of all members entitled to participate in such
distribution,                providing for the issuance to such members of any shares or
debentures, credited                as fully paid, to which they may be entitled upon
such capitalization or for the                payment on behalf of such members, by the
application thereto of the                proportionate part of the money or assets
resolved to be capitalized, of the                amounts or any part thereof remaining
unpaid on their existing shares, and any                agreement made under such
authority shall be effective and binding upon all such                members.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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# X ACCOUNTING BOOKS

|54. | Accounting
Books
|--- | ----------------

| | 54.1. | The
Board shall cause the Company to hold proper accounting books and to prepare
               an annual balance sheet, a statement of Profit and Loss, and such other
               financial statements as the Company may be required to prepare under law.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
accounting books of the Company shall be held at the office or at a place deemed fit by
the Board, and they shall be open to inspection by the directors.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 54.2. | The
Board may determine at its sole discretion the terms on which any of the
               accounts and books of the Company shall be open to inspection by members,
and no                member (other than a director) shall be entitled to inspect any
account or                ledger or document of the Company unless such right is granted
by law or by the                Board.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 54.3. | At
least once a year, the Board shall submit to the Annual Meeting financial
               statements for the period from the previous statement as required by Law.
The                balance sheet shall be accompanied by an auditors report, if
available.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 54.4. | The
Company shall not be required to send copies of its financial statements to
               members.
| | ----- | -------------------------------------------------------------------------------------------------------

# XI BRANCH REGISTERS

|55. | Authority
to keep Branch Registers
|--- | ----------------------------------

| | The
Company may keep branch registers in any reciprocal state.
| | --------------------------------------------------------------

|56. | Provisions
in respect of keeping Branch Registers
|--- | -------------------------------------------------

| | Subject
to the provisions contained in the Law, the Board shall be authorized to make such rules
and procedures in connection with the keeping of branch registers as it may, from time to
time, think fit.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# XII SIGNATURES

|57. | The
Companys Signature
|--- | -----------------------

| | 57.1. | A
document shall be deemed signed by the Company upon the fulfillment of the
               following:
| | ----- | ------------------------------------------------------------------------------------------------------

| | 57.1.1. | It
bears the name of the Company in print;
| | ------- | ------------------------------------------

| | 57.1.2. | It
bears the signature of one or more persons authorized therefor by the Board;
               and
| | ------- | --------------------------------------------------------------------------------------------------

| | 57.1.3. | The
act of the person authorized by the Board as aforesaid was within its
               authority and without deviation therefrom.
| | ------- | -----------------------------------------------------------------------------------------------------------------------------------

| | 57.2. | The
signatory rights on behalf of the Company shall be determined by the Board.
| | ----- | -------------------------------------------------------------------------------

| | 57.3. | An
authorization by the Board as provided in Article 57.2 may be for a specific
               matter, for a specific document or for a certain sort of document or for
all the                Companys documents or for a definite period of time or for
an unlimited                period of time, provided that any such authority may be
terminated by Board, at                will.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 57.4. | The
provisions of this Article shall apply both to the Companys documents
               executed in Israel and the Companys documents executed abroad.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

# XIII NOTICES

|58. | Notices
in Writing
|--- | ------------------

| | 58.1. | Notices
pursuant to the Law, the Memorandum and the Articles shall be made in                the
manner prescribed by the Board from time to time.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------

| | 58.2. | Unless
otherwise prescribed by the Board, all notices shall be made in writing
               and shall be sent by mail.
| | ----- | ------------------------------------------------------------------------------------------------------------------------

|59. | Delivery
of Notices
|--- | -------------------

| | 59.1. | Each
member and each director shall notify the Company in writing of his address
               for the receipt of notices, documents and other communications relating to
the                Company, its business and affairs.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 59.2. | Any
notice, document or other communication shall be deemed to have been
               received at the time received by the addressee, or if sent by registered
mail,                within three (3) days from its dispatch, whichever is earlier.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 59.3. | The
address for the purposes of Article 59.2 shall be the address furnished
               pursuant to Article 59.1, and the address of the Company for the purposes
of                Article 59.2 shall be its registered address or principal place of
business.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# XIV INDEMNITY AND
INSURANCE

|60. | Indemnity
of Officers
|--- | ---------------------

| | 60.1. | The
Company may, from time to time and subject to any provision of law,           indemnify
an Officer in respect of a liability or expense set out below which is           imposed
on him or incurred by him as a result of an action taken in his capacity           as an
Officer of the Company:
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 60.1.1. | monetary
liability imposed on him in favor of a third party by a judgment,           including a
settlement or a decision of an arbitrator which is given the force           of a
judgment by court order;
| | ------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 60.1.2. | reasonable
litigation expenses, including legal fees, incurred by the Officer as           a result
of an investigation or proceeding instituted against such Officer by a
          competent authority, which investigation or proceeding has ended without the
          filing of an indictment or in the imposition of financial liability in lieu of
a           criminal proceeding, or has ended in the imposition of a financial obligation
in           lieu of a criminal proceeding for an offence that does not require proof of
          criminal intent (the phrases proceeding that has ended without the filing
          of an indictment and financial obligation in lieu of a criminal
          proceeding shall have the meanings ascribed to such phrases in Section
          260(a)(1a) of the Companies Law); and
| | ------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 60.1.3. | reasonable
litigation expenses, including legal fees, which the Officer has           incurred or is
obliged to pay by the court in proceedings commenced against him           by the Company
or in its name or by any other person, or pursuant to criminal           charges of which
he is acquitted or criminal charges pursuant to which he is           convicted of an
offence which does not require proof of criminal intent.
| | ------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 60.2. | The
Company may, from time to time and subject to any provision of the law:
| | ----- | ---------------------------------------------------------------------------

| | 60.2.1. | Undertake
in advance to indemnify an Officer of the Company for any of the           following:
| | ------- | -----------------------------------------------------------------------------------------------

| | (i) | any
liability as set out in Article 60.1.1 above, provided that the undertaking
               to indemnify is limited to the classes of events which in the opinion of
the                Board can be anticipated in light of the Companys activities at
the time                of giving the indemnification undertaking, and for an amount
and/or criteria                which the Board has determined are reasonable in the
circumstances and, the                events and the amounts or criteria that the Board
deem reasonable in the                circumstances at the time of giving of the
undertaking are stated in the                undertaking; or
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | any
liability stated in Article 60.1.2 or 60.1.3 above;
| | ---- | -------------------------------------------------------

| | 60.2.2. | indemnify
an Officer after the occurrence of the event which is the subject of           the
indemnity.
| | ------- | -------------------------------------------------------------------------------------------------------

|61. | Insurance
of Officer
|--- | --------------------

| | The
Company may enter into an agreement for the insurance of the liability of an Officer, in
whole or in part, with respect to any liability which may imposed upon such Officer as a
result of an act performed by same Officer in his capacity as an Officer of the Company,
for any of the following:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 61.1.1. | A
breach of a cautionary duty toward the Company or toward another person;
| | ------- | --------------------------------------------------------------------------

| | 61.1.2. | A
breach of a fiduciary duty toward the Company, provided the Officer acted in
          good faith and has had reasonable ground to assume that the act would not be
          detrimental to the Company;
| | ------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 61.1.3. | A
monetary liability imposed upon an Officer toward another.
| | ------- | ------------------------------------------------------------

|61A. | Exemption
|---- | ---------

| | Subject
to the provisions of the Companies Law, including the receipt of all approvals as required
therein or under any applicable law, the Board may resolve in advance to exempt an Officer
from all or part of such Officers responsibility or liability for damages caused to
the Company due to any breach of such Officers duty of care towards the Company.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# XV WINDING UP

|62. | Distribution
of Assets
|--- | ----------------------

| | If
the Company be wound up, then, subject to provisions of any applicable law and to any
special or restricted rights attached to a share, the assets of the Company in excess of
its liabilities shall be distributed among the members in proportion to the paid-up
capital of the Company attributable to the shares in respect of which such distribution is
being made. The paid-up capital attributable to any share (whether issued at its nominal
value, at a premium or at a discount), shall be a nominal value of such share, provided,
however, that if the entire consideration for same share was not yet paid to the Company,
the paid-up capital attributable thereto shall be such proportion of the nominal value as
the amount paid to the Company with respect to the share bears to its full consideration.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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