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# Exhibit 1.2

Articles of Association
As amended and restated December 26, 2007



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THE COMPANIES LAW, 1999
A COMPANY LIMITED BY SHARES

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# ARTICLES OF ASSOCIATION

# OF

# LUMENIS LTD.

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AS AMENDED AND RESTATED
ON DECEMBER 26, 2007

# PRELIMINARY

|1. | INTERPRETATION.
|-- | ---------------

| | (a) | In
these Articles, the following capitalized terms shall bear the meanings set
                    forth opposite to them respectively, unless inconsistent with the
subject or                     context.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                        |                                                                                                                                                                                                             
| | ---------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | "Articles"             | shall mean these Articles of Association, as amended from time to time by a Shareholders' resolution.                                                                                                       
| |                       
| | "Board of Directors"   | shall mean the Board of Directors of the Company.                                                                                                                                                           
| |                       
| | "Company"              | shall mean Lumenis Ltd.                                                                                                                                                                                     
| |                       
| | "Companies Law"        | shall mean the Israeli Companies Law, 5759-1999, as amended from time to time, or any statutory re-enactment or modification thereof being in force at the time, and any regulations promulgated thereunder.
| |                       
| | "Director(s)"          | The member(s) of the Board of Directors appointed in accordance with these Articles holding office at any given time;                                                                                       
| |                       
| | "External Director(s)" | shall mean directors appointed and serving in accordance with of the Companies Law.                                                                                                                         
| |                       
| | "Office"               | shall mean the current registered office of the Company.                                                                                                                                                    
| |                       
| | "Office Holder"        | shall have the meaning set forth in Section 1 of the Companies Law.                                                                                                                                         
| |                       
| | "Shareholder(s)"       | shall mean the shareholder(s) of the Company, at any given time.                                                                                                                                            
| |                       
| | "in writing"           | shall mean written, printed, photocopied, typed, sent via facsimile or produced by any visible substitute for writing, or partly one and partly another, and signed shall be construed accordingly.         
| |                       
| | "Year" and "Month"     | shall mean a Gregorian month or year.                                                                                                                                                                       

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| | (b) | Unless
otherwise defined in these Articles or required by the context, terms
                    used herein shall have the meaning provided therefor under the
Companies Law.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Words
and expressions importing the masculine gender shall include the feminine
                    gender, and words and expressions importing persons shall include
bodies                     corporate.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | Save
as aforesaid any words or expressions defined in the Companies Law or in
                    the Companies Ordinance (New Version), 5743-1983 (to the extent still
in effect                     according to the provisions of the Companies Law), shall,
if not inconsistent                     with the subject or context, bear the same
meaning in these Articles.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | The
captions in these Articles are for convenience only and shall not be deemed
                    a part hereof or affect the construction of any provision hereof.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | AMENDMENTS.
|-- | -----------

| | These
Articles may be amended or replaced at any time and from time to time, by a
Shareholders resolution adopted by the General Meeting, unless a provision of these
Articles or the Companies Law requires a greater majority.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# LIMITED LIABILITY

|3. | The
Company is a Limited Liability Company and therefore each shareholders
          obligations to the Companys obligations shall be limited to the payment
of           the par value of the shares held by such shareholder, subject to the
provisions           of the Companies Law.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# COMPANYS
OBJECTIVES

|4. | The
purpose of the Company is to engage in any legal business.
|-- | --------------------------------------------------------------

|5. | The
Company may extend reasonable donations for any cause that the Board of
          Directors finds appropriate, even if the donation is not for business
          considerations for the purpose of achieving profits to the Company.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# SHARE CAPITAL

|6. | SHARE
CAPITAL.
|-- | --------------

| | (a) | The
authorized share capital of the Company is Ninety Million New Israeli
                    Shekels (NIS 90,000,000) divided into Nine Hundred Million
(900,000,000)                     Ordinary Shares, par value NIS 0.1 per share (the
Ordinary                     Shares).
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
Ordinary Shares all rank pari passu in all respects. The Ordinary Shares may
                    be redeemable to the extent set forth in Article 19.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | INCREASE
OF AUTHORIZED SHARE CAPITAL.
|-- | -------------------------------------

| | (a) | The
Company may, from time to time, by a Shareholders resolution, whether or not
                    all the shares then authorized have been issued, and whether or not
all the                     shares theretofore issued have been called up for payment,
increase its                     authorized share capital by the creation of new shares.
Any such increase shall                     be in such amount and shall be divided into
shares of such nominal amounts, and                     such shares shall confer such
rights and preferences, and shall be subject to                     such restrictions, as
such resolution shall provide.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (b) | Except
to the extent otherwise provided in such resolution, any new shares
                    included in the authorized share capital increased as aforesaid shall
be subject                     to all the provisions of these Articles which are
applicable to shares of such                     class included in the existing share
capital without regard to class (and, if                     such new shares are of the
same class as a class of shares included in the                     existing share
capital, to all of the provisions which are applicable to shares                     of
such class included in the existing share capital).
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | SPECIAL
RIGHTS; MODIFICATION OF RIGHTS.
|-- | ---------------------------------------

| | (a) | Without
prejudice to any special rights previously conferred upon the holders of
                    existing shares in the Company, the Company may, from time to time,
by a                     Shareholders resolution, provide for shares with such
preferred or                     deferred rights or rights of redemption or other special
rights and/or such                     restrictions, whether in regard to dividends,
voting, repayment of share capital                     or otherwise, as may be stipulated
in such resolution.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | (i)
If at any time the share capital is divided into different classes of
                    shares, the rights attached to any class, unless otherwise provided
by these                     Articles, may be modified or abrogated by the Company,
subject to a resolution                     passed at a separate General Meeting of the
holders of the shares of such class.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii)
            The provisions of these Articles relating to General Meetings shall, mutatis
          mutandis, apply to any separate General Meeting of the holders of the shares of
          a particular class, provided, however, that the requisite quorum at any such
          separate General Meeting shall be two or more shareholders present in person or
          by proxy and holding not less than thirty three and one third percent (33 (1)/3%)
of the issued shares of such class.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii)
            Unless otherwise provided by these Articles, the increase of an authorized
          class of shares, or shares, or the issuance of additional shares thereof out of
          the authorized and unissued share capital, shall not be deemed, for purposes of
          this Article 8(b), to modify or abrogate the rights attached to previously
          issued shares of such class or of any other class.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. | CONSOLIDATION,
SUBDIVISION, CANCELLATION AND REDUCTION OF SHARE           CAPITAL.
|-- | ----------------------------------------------------------------------------------

| | (a) | The
Company may, from time to time, by a Shareholders resolution hereof
                    and to applicable law):
| | --- | --------------------------------------------------------------------------------------------------------------------

| | (i) | consolidate
and divide all or any part of its issued or unissued authorized                     share
capital into shares of a per share nominal value which is larger than the
                    per share nominal value of its existing shares;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | subdivide
its shares (issued or unissued) or any of them, into shares of smaller
                    nominal value (subject, however, to the provisions of the Companies
Law), and                     the resolution whereby any share is subdivided may
determine that, as among the                     holders of the shares resulting from
such subdivision, one or more of the shares                     may, in contrast to
others, have any such preferred or deferred rights or rights                     of
redemption or other special rights, or be subject to any such restrictions,
                    as the Company may attach to unissued or new shares;
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (iii) | cancel
any shares which, at the date of the adoption of such resolution, have
                    not been taken or agreed to be taken by any person, and diminish the
amount of                     its share capital by the amount of the shares so canceled;
or
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv) | reduce
its share capital in any manner, and with and subject to any incident
                    authorized, and consent required, by law.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | With
respect to any consolidation of issued shares into shares of a larger
                    nominal value per share, and with respect to any other action which
may result                     in fractional shares, the Board of Directors may settle
any difficulty which may                     arise with regard thereto, as it deems fit,
and, in connection with any such                     consolidation or other action which
could result in fractional shares, may,                     without limiting its
aforesaid power:
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | determine,
as to the holder of shares so consolidated, which issued shares shall
                    be consolidated into a share of a larger nominal value per share.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | allot,
in contemplation of or subsequent to such consolidation or other action,
                    shares or fractional shares sufficient to preclude or remove
fractional share                     holdings;
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | redeem,
in the case of redeemable preference shares, and subject to applicable
                    law, such shares or fractional shares sufficient to preclude or
remove                     fractional share holdings;
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv) | cause
the transfer of fractional shares by certain shareholders of the Company
                    to other shareholders thereof so as to most expediently preclude or
remove any                     fractional shareholdings, and cause the transferees of
such fractional shares to                     pay the transferors thereof the fair value
thereof, and the Board of Directors                     is hereby authorized to act in
connection with such transfer, as agent for the                     transferors and
transferees of any such fractional shares, with full power of
                    substitution, for the purposes of implementing the provisions of this
                    sub-Article 9(b)(iv).
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | ISSUANCE
OF SHARE CERTIFICATES, REPLACEMENT OF LOST                     CERTIFICATES.
|--- | -------------------------------------------------------------------------------------

| | (a) | Share
certificates shall be issued under the corporate seal of the Company and
                    shall bear the signature of one Director, or of any person or persons
authorized                     therefor by the Board of Directors.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Each
shareholder shall be entitled to one numbered certificate for all the
                    shares of any class registered in his name, and if the Board of
Directors so                     approves, to several certificates, each for one or more
of such shares. Each                     certificate shall specify the serial numbers of
the shares represented thereby                     and may also specify the amount paid
up thereon.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | A
share certificate registered in the names of two or more persons shall be
                    delivered to the person first named in the Register of Shareholders
in respect                     of such co-ownership.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | A
share certificate which has been defaced, lost or destroyed, may be replaced,
                    and the Company shall issue a new certificate to replace such
defaced, lost or                     destroyed certificate upon payment of such fee, and
upon the furnishing of such                     evidence of ownership and such indemnity,
as the Board of Directors in its                     discretion deems fit.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|11. | REGISTERED
HOLDER.
|--- | ------------------

| | Except
as otherwise provided in these Articles or the Companies Law, the Company shall be
entitled to treat the registered holder of each share as the absolute owner thereof, and
accordingly, shall not, except as ordered by a court of competent jurisdiction, or as
required by the Companies Law, be obligated to recognize any equitable or other claim to,
or interest in, such share on the part of any other person.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12. | ALLOTMENT
AND REPURCHASE OF SHARES.
|--- | -----------------------------------

| | (a) | The
unissued shares from time to time shall be under the control of the Board of
                    Directors, who shall have the power to allot, issue or otherwise
dispose of                     shares to such persons, on such terms and conditions
(including inter alia terms                     relating to calls set forth in Article
14(f) hereof), and either at par or at a                     premium, or subject to the
provisions of the Companies Law, at a discount and/or                     with payment of
commission, and at such times, as the Board of Directors deems                     fit,
and the power to give to any person the option to acquire from the Company
                    any shares, either at par or at a premium, or, subject as aforesaid,
at a                     discount and/or with payment of commission, during such time and
for such                     consideration as the Board of Directors deems fit.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
Company may at any time and from time to time, subject to the Companies Law,
                    purchase back or finance the purchase of any shares or other
securities issued                     by the Company, in such manner and under such terms
as the Board of Directors                     shall determine, whether from any one or
more shareholders. Such purchase shall                     not be deemed as payment of
dividends and no shareholder will have the right to                     require the
Company to purchase his shares or offer to purchase shares from any
                    other shareholders.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13. | PAYMENT
IN INSTALLMENT.
|--- | -----------------------

| | If
pursuant to the terms of allotment or issue of any share, all or any portion of the price
thereof shall be payable in installments, every such installment shall be paid to the
Company on the due date thereof by the then registered holder(s) of the share or the
person(s) then entitled thereto.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|14. | CALLS
ON SHARES.
|--- | ----------------

| | (a) | The
Board of Directors may, from time to time, as it, in its discretion, deems
                    fit, make calls for payment upon shareholders in respect of any sum
which has                     not been paid up in respect of shares held by such
shareholders and which is                     not, pursuant to the terms of allotment or
issue of such shares or otherwise,                     payable at a fixed time, and each
shareholder shall pay the amount of every call                     so made upon him (and
of each installment thereof if the same is payable in                     installments),
to the person(s) and at the time(s) and place(s) designated by                     the
Board of Directors, as any such times may be thereafter extended and/or such
                    person(s) or place(s) changed. Unless otherwise stipulated in the
resolution of                     the Board of Directors (and in the notice hereafter
referred to), each payment                     in response to a call shall be deemed to
constitute a pro rata payment on                     account of all the shares in respect
of which such call was made.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Notice
of any call for payment by a shareholder shall be given in writing to
                    such shareholder not less than fourteen (14) days prior to the time
of payment                     fixed in such notice, and shall specify the time and place
of payment, and the                     person to whom such payment is to be made. Prior
to the time for any such                     payment fixed in a notice of a call given to
a shareholder, the Board of                     Directors may in its absolute discretion,
by notice in writing to such                     shareholder, revoke such call in whole
or in part, extend the time fixed for                     payment thereof, or designate a
different place of payment or person to whom                     payment is to be made.
In the event of a call payable in installments, only one                     notice
thereof need be given.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (c) | If
pursuant to the terms of allotment or issue of a share or otherwise, an
                    amount is made payable at a fixed time (whether on account of such
share or by                     way of premium), such amount shall be payable at such
time as if it were payable                     by virtue of a call made by the Board of
Directors and for which notice was                     given in accordance with
paragraphs (a) and (b) of this Article 14, and the                     provision of these
Articles with regard to calls (and the non-payment thereof)                     shall be
applicable to such amount (and the non-payment thereof).
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | Joint
holders of a share shall be jointly and severally liable to pay all calls
                    for payment in respect of such share and all interest payable
thereon.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | Any
amount called for payment which is not paid when due shall bear interest
                    from the date fixed for payment until actual payment thereof, at such
rate (not                     exceeding the then prevailing debitory rate charged by
leading commercial banks                     in Israel), and payable at such time(s) as
the Board of Directors may prescribe.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | Upon
the allotment of shares, the Board of Directors may provide for differences
                    among the allottees of such shares as to the amounts and times for
payment of                     calls for payment in respect of such shares.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15. | PREPAYMENT.
|--- | -----------

| | With
the approval of the Board of Directors, any shareholder may pay to the Company any amount
not yet payable in respect of his shares, and the Board of Directors may approve the
payment by the Company of interest on any such amount until the same would be payable if
it had not been paid in advance, at such rate and time(s) as may be approved by the Board
of Directors. The Board of Directors may at any time cause the Company to repay all or any
part of the money so advanced, without premium or penalty. Nothing in this Article 15
shall derogate from the right of the Board of Directors to make any call for payment
before or after receipt by the Company of any such advance.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|16. | FORFEITURE
AND SURRENDER.
|--- | -------------------------

| | (a) | If
any shareholder fails to pay an amount payable by virtue of a call, or
                    interest thereon as provided for in accordance herewith, on or before
the day                     fixed for payment of the same, the Board of Directors, may at
any time after the                     day fixed for such payment, so long as such amount
(or any portion thereof) or                     interest thereon (or any portion thereof)
remains unpaid, forfeit all or any of                     the shares in respect of which
such payment was called for. All expenses                     incurred by the Company in
attempting to collect any such amount or interest                     thereon, including,
without limitation, attorneys fees and costs of legal
                    proceedings, shall be added to, and shall, for all purposes
(including the                     accrual of interest thereon); constitute a part of,
the amount payable to the                     Company in respect of such call.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Upon
the adoption of a resolution as to the forfeiture of a shareholders
                    share, the Board of Directors shall cause notice thereof to be given
to such                     shareholder, which notice shall state that, in the event of
the failure to pay                     the entire amount so payable by a date specified
in the notice (which date shall                     be not less than fourteen (14) days
after the date such notice is given and                     which may be extended by the
Board of Directors), such shares shall be ipso                     facto forfeited,
provided, however, that, prior to such date, the Board of                     Directors
may nullify such resolution of forfeiture, but no such nullification
                    shall stop the Board of Directors from adopting a further resolution
of                     forfeiture in respect of the non-payment of the same amount.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (c) | Without
derogating from Articles 56 and 60 hereof, whenever shares are forfeited
                    as herein provided, all dividends, if any, theretofore declared in
respect                     thereof and not actually paid shall be deemed to have been
forfeited at the same                     time.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | The
Company, by resolution of the Board of Directors, may accept the voluntary
                    surrender of any share.
| | --- | --------------------------------------------------------------------------------------------------------------------------

| | (e) | Any
share forfeited or surrendered as provided herein, shall become the property
                    of the Company, and the same, subject to the provisions of these
Articles, may                     be sold, re-allotted or otherwise disposed of as the
Board of Directors deems                     fit.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | Any
shareholder whose shares have been forfeited or surrendered shall cease to
                    be a shareholder in respect of the forfeited or surrendered shares,
but shall,                     notwithstanding, be liable to pay, and shall forthwith
pay, to the Company, all                     calls, interest and expenses owing upon or
in respect of such shares at the time                     of forfeiture or surrender,
together with interest thereon from the time of                     forfeiture or
surrender until actual payment, at the rate prescribed in Article
                    14(e) above, and the Board of Directors, in its discretion, may, but
shall not                     be obligated to, enforce the payment of such moneys, or any
part thereof. In the                     event of such forfeiture or surrender, the
Company, by resolution of the Board                     of Directors, may accelerate the
date(s) of payment of any or all amounts then                     owing to the Company by
the shareholder in question (but not yet due) in respect                     of all
shares owned by such shareholder, solely or jointly with another.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g) | The
Board of Directors may at any time, before any share so forfeited or
                    surrendered shall have been sold, re-allotted or otherwise disposed
of, nullify                     the forfeiture or surrender on such conditions as it
deems fit, but no such                     nullification shall stop the Board of
Directors form re-exercising its powers of                     forfeiture pursuant to
this Article 16.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17. | LIEN.
|--- | -----

| | (a) | Except
to the extent the same may be waived or subordinated in writing, the
                    Company shall have a first and paramount lien upon all the shares
registered in                     the name of each shareholder (without regard to any
equitable or other claim or                     interest in such shares on the part of
any other person), and upon the proceeds                     of the sale thereof, for his
debts, liabilities and engagements to the Company                     arising from any
amount payable by such shareholder in respect of any unpaid or                     partly
paid share, whether or not such debt, liability or engagement has
                    matured. Such lien shall extend to all dividends from time to time
declared or                     paid in respect of such share. Unless otherwise provided,
the registration by                     the Company of a transfer of shares shall be
deemed to be a waiver on the part                     of the Company of the lien (if any)
existing on such shares immediately prior to                     such transfer.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
Board of Directors may cause the Company to sell a share subject to such a
                    lien when the debt, liability or engagement giving rise to such lien
has                     matured, in such manner as the Board of Directors deems fit, but
no such sale                     shall be made unless such debt, liability or engagement
has not been satisfied                     within fourteen (14) days after written notice
of the intention to sell shall                     have been served on such shareholder,
his executors or administrators.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (c) | The
net proceeds of any such sale, after payment of the costs thereof, shall be
                    applied in or toward satisfaction of the debts, liabilities or
engagements of                     such shareholder in respect of such share (whether or
not the same have                     matured), and the residue (if any) shall be paid to
the shareholder, his                     executors, administrators or assigns.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18. | SALE
AFTER FORFEITURE OF SURRENDER OR IN ENFORCEMENT OF                     LIEN.
|--- | ---------------------------------------------------------------------------------

| | Upon
any sale of a share after forfeiture or surrender or for enforcing a lien, the Board of
Directors may appoint any person to execute an instrument of transfer of the share so sold
and cause the purchasers name to be entered in the Register of Shareholders in
respect of such share. The purchaser shall be registered as the shareholder and shall not
be bound to see to the regularity of the sale proceedings, or to the application of the
proceeds of such sale, and after his name has been entered in the Register of Shareholders
in respect of such share, the validity of the sale shall not be impeached by any person,
and person, and the remedy of any person aggrieved by the sale shall be in damages only
and against the Company exclusively.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19. | REDEEMABLE
SHARES.
|--- | ------------------

| | The
Company may, subject to applicable law, issue redeemable shares and redeem the same.
Ordinary Shares issued by the Company may be redeemable upon terms and conditions to be
set forth in a written agreement between the Company and the holder of such shares.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# TRANSFER OF SHARES

|20. | REGISTRATION
OF TRANSFER.
|--- | -------------------------

| | (a) | No
transfer of shares shall be registered unless a proper writing or instrument
                    of transfer (in any customary form or any other form satisfactory to
the Board                     of Directors) has been submitted to the Company (or its
transfer agent),                     together with the share certificate(s) and such
other evidence of title as the                     Board of Directors may reasonably
require. Until the transferee has been                     registered in the Register of
Shareholders in respect of the shares so                     transferred, the Company may
continue to regard the transferor as the owner                     thereof. The Board of
Directors, may, from time to time, prescribe a fee for the
                    registration of a transfer.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21. | SUSPENSION
OF REGISTRATION.
|--- | ---------------------------

| | The
Board of Directors may, in its discretion to the extent it deems necessary, close the
Register of Shareholders of registration of transfers of shares during any year for a
period determined by the Board of Directors, and no registrations of transfers of shares
shall be made by the Company during any such period during which the Register of
Shareholders is so closed.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# TRANSMISSION OF SHARES

|22. | DECEDENTS SHARES.
|--- | ------------------

| | (a) | In
case of a share registered in the names of two or more holders, the Company
                    may recognize the survivor(s) as the sole owner(s) thereof unless and
until the                     provisions of Article 22(b) have been effectively invoked.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Any
person becoming entitled to a share in consequence of the death of any
                    person, upon producing evidence of the grant of probate or letters of
                    administration or declaration of succession (or such other evidence
as the Board                     of Directors may reasonably deem sufficient), shall be
registered as a                     shareholder in respect of such share, or may, subject
to the regulations as to                     transfer herein contained, transfer such
share.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|23. | RECEIVERS
AND LIQUIDATORS.
|--- | --------------------------

| | (a) | The
Company may recognize any receiver, liquidator or similar official appointed
                    to wind-up, dissolve or otherwise liquidate a corporate shareholder,
and a                     trustee, manager, receiver, liquidator or similar official
appointed in                     bankruptcy or in connection with the reorganization of,
or similar proceeding                     with respect to a shareholder or its
properties, as being entitled to the shares                     registered in the name of
such shareholder.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Such
receiver, liquidator or similar official appointed to wind-up, dissolve or
                    otherwise liquidate a corporate shareholder and such trustee,
manager, receiver,                     liquidator or similar official appointed in
bankruptcy or in connection with the                     reorganization of, or similar
proceedings with respect to a shareholder or its                     properties, upon
producing such evidence as the Board of Directors may deem                     sufficient
as to his authority to act in such capacity or under this Article,
                    shall with the consent of the Board of Directors (which the Board of
Directors                     may grant or refuse in its absolute discretion), be
registered as a shareholder                     in respect of such shares, or may,
subject to the regulations as to transfer                     herein contained, transfer
such shares.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# GENERAL MEETINGS

|24. | ANNUAL
GENERAL MEETING.
|--- | -----------------------

| | (a) | An
Annual General 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 General Meeting) and at such place, either within or
out of the State of                     Israel, as may be determined by the Board of
Directors.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Subject
to the provisions of these Articles, the function of the Annual General
                    Meeting shall be to elect the members of the Board of Directors; to
appoint the                     Companys auditors and to fix, or authorize the
directors to fix, their                     remuneration, and to transact any other
business which under these Articles or                     the Companies Law are to be
transacted at a General Meeting.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|25. | SPECIAL
GENERAL MEETINGS.
|--- | -------------------------

| | All
General Meetings other than Annual General Meetings shall be called Special General
Meeting. The Board of Directors may, whenever it thinks fit, convene a Special
General Meeting, at such time and place, within or out of the State of Israel, as may be
determined by the Board of Directors, and shall be obliged to do so upon a requisition in
writing in accordance with Section 63 of the Companies Law. Any Annual General Meeting or
Special General Meeting will be referred to herein as a General Meeting.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|26. | RECORD
DATE FOR GENERAL MEETING AND OTHER ACTION.
|--- | -------------------------------------------------

| | (a) | Notwithstanding
any provision of these Articles to the contrary, and to allow                     the
Company to determine the shareholders entitled to notice of or to vote at
                    any General Meeting or any adjournment thereof, or to express consent
to or                     dissent from any corporate action in writing without a meeting,
or entitled to                     receive payment of any dividend or other distribution
or allotment of any                     rights, or entitled to exercise any rights in
respect of or to take or be the                     subject of any other action, the
Board of Directors may fix, a record date,                     which shall not be more
than and not less than the maximum periods permitted by                     law. A
determination of shareholders of record entitled to notice of or to vote
                    at a meeting shall apply to any adjournment of the meeting; provided,
however,                     that the Board of Directors may fix a new record date for
the adjourned meeting.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (b) | Any
Shareholder or Shareholders of the Company holding, at least, one percent
                    (1%) of the voting rights in the issued share capital of the Company
may,                     pursuant to the Companies Law, request that the Board of
Directors include a                     subject in the agenda of a General Meeting to be
held in the future. Any such                     request must be in writing, must include
all information related to subject                     matter and the reason that such
subject is proposed to be brought before the                     General Meeting and must
be signed by the Shareholder or Shareholders making                     such request. In
addition, subject to the Companies Law and the provisions of                     Article
41, the Board of Directors may include such subject in the agenda of a
                    General Meeting only if the request has been delivered to the
Secretary of the                     Company not later than sixty (60) days and not more
than one hundred and twenty                     (120) days prior to the General Meeting
in which the subject is to be considered                     by the Shareholders of the
Company. Each such request shall also set forth: (i)                     the name and
address of the Shareholder making the request; (ii) a                     representation
that the Shareholder is a holder of record of shares of the                     Company
entitled to vote at such meeting and intends to appear in person or by
                    proxy at the meeting; (iii) a description of all arrangements or
understandings                     between the Shareholder and any other person or
persons (naming such person or                     persons) in connection with the
subject which is requested to be included in the                     agenda; and (iv) a
declaration that all the information that is required under                     the
Companies Law and any other applicable law to provided to the Company in
                    connection with such subject, if any, has been provided. Furthermore,
the Board                     of Directors, may, in its discretion, to the extent it
deems necessary, request                     that the Shareholder(s) making the request
provide additional information                     necessary so as to include a subject
in the agenda of a General Meeting, as the                     Board of Directors may
reasonably require.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Any
Shareholder or group of Shareholders of the Company holding, at least,
                    twelve percent (12%) of the voting rights in the issued share capital
of the                     Company (a 12% Group) may request that the Board
of Directors                     include in the agenda of the next General Meeting in
which directors are due to                     be appointed to the Board, one (1) nominee
designated by such 12% Group for each                     12% of the issued and
outstanding share capital held by such 12% Group. Any such                     request
must be in writing, must include the name of the designated member and a
                    short description of his or her background and working experience,
and must be                     signed by all the members of the 12% Group making such
request. The Board of                     Directors will include such nomination in the
agenda of for such General Meeting                     if the request has been delivered
to the Secretary of the Company not later than                     forty (40) days and
not more than one hundred and twenty (120) days prior to the
                    foregoing General Meeting, provided that the members of the 12% Group
undertake                     to continue holding the shares constituting the 12% Group
at least until the                     record date for such General Meeting, except that
the Board may, by a resolution                     approved by at least 75% of the then
serving directors, determine not to submit                     such nominee for election
as director at the General Meeting, if it believes                     that such
nomination is not in the best interests of the Company. Each such
                    request by a 12% Group shall also set forth: (i) the name and address
of the                     members of 12% Group making the request; (ii) evidence that
the members of the                     12% Group are holders of record of the shares
constituting the 12% Group; (iii)                     a description of all arrangements
or understandings between the members of the                     12% Group and any other
person or persons (naming such person or persons) in                     connection with
any subjects which are proposed to be included in the agenda for                     the
General Meeting; and (iv) a declaration that all the information that is
                    required under the Companies Law and any other applicable law to be
provided to                     the Company in connection with such nomination, if any,
has been provided.                     Furthermore, the Board of Directors, may, in its
discretion, to the extent it                     deems necessary, request that the
members of the 12% Group making the request                     provide additional
information, as the Board of Directors may reasonably                     require.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 10 -

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|27. | NOTICE
OF GENERAL MEETINGS; OMISSION TO GIVE NOTICE.
|--- | ----------------------------------------------------

| | (a) | The
Company is not required to give notice under Section 69(b) of the
                    Companies Law, subject to any mandatory provision of the Companies
Law.                     Notwithstanding anything herein to the contrary, with the
consent of all                     Shareholders entitled to vote thereon, a resolution
may be proposed and passed                     at such meeting although a lesser notice
period than hereinabove prescribed has                     been given.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
accidental omission to give notice of a meeting to any Shareholder, or the
                    non-receipt of notice sent to such Shareholder, shall not invalidate
the                     proceedings at such meeting.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | No
Shareholder present, in person or by proxy, at the commencement of a General
                    Meeting shall be entitled to seek the abolishment of any proceedings
or                     resolutions adopted at such General Meeting on account of any
defect in the                     notice of such meeting relating to the time or the
place thereof, or any item to                     be acted upon at such meeting which is
such that is usually acted upon at Annual                     General Meetings of the
Company.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# PROCEEDINGS AT GENERAL
MEETINGS

|28. | QUORUM.
|--- | -------

| | (a) | No
business shall be transacted at a General Meeting, or at any adjournment
                    thereof, unless the quorum required under these Articles for such
General                     Meeting or such adjourned meeting, as the case may be, is
present when the                     meeting proceeds to business.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | In
the absence of contrary provisions in these Articles, two or more
                    shareholders (not in default in payment of any sum referred to in
Article 32(a)                     hereof), present in person or by proxy and holding
shares conferring in the                     aggregate at least thirty three and a third
percent (33 1/3%) of the voting                     power of the Company, shall
constitute a quorum of General Meetings.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | If
within half an hour from the time appointed for the meeting a quorum is not
                    present, the meeting shall be adjourned to the same day in the next
week, at the                     same time and place, or to such day and at such time and
place as the Chairman                     may determine. No business shall be transacted
at any adjourned meeting except                     business which might lawfully have
been transacted at the meeting as originally                     called. At such
adjourned meeting (other than an adjourned separate meeting of a
                    particular class of shares as referred to in Article 8(b)of these
Articles), if                     the original meeting was convened upon requisition
under Section 63 of the                     Companies Law, one or more shareholders,
present in person or by proxy, and                     holding the number of shares
required for making such requisition, shall                     constitute a quorum, but
in any other case any two (2) shareholders (not in                     default as
aforesaid) present in person or by proxy, shall constitute a quorum.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|29. | CHAIRMAN.
|--- | ---------

| | The
Chairman, if any, of the Board of Directors, shall preside as Chairman at every General
Meeting of the Company. If at any meeting the Chairman is not present within fifteen (15)
minutes after the time fixed for holding the meeting or is unwilling to act as Chairman,
the Co-Chairman shall preside at the meeting. If at any such meeting both the Chairman and
the Co-Chairman are not present or are unwilling to act as Chairman, Shareholders present
shall choose someone of their number to be Chairman. The office of Chairman shall not, by
itself, entitle the holder thereof to vote at any General Meeting nor shall it entitle
such holder to a second or casting vote (without derogating, however, from the rights of
such Chairman to vote as a shareholder or proxy of a shareholder if, in fact, he is also a
shareholder or such proxy).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|30. | ADOPTION
OF RESOLUTIONS AT GENERAL MEETINGS.
|--- | --------------------------------------------

| | (a) | Subject
to the provisions of the Companies Law or as specifically set in these
                    Articles, including, without limitation, Article 41 below, a
Shareholders                     resolution shall be deemed adopted if approved by the
holders of a majority of                     the voting power represented at the meeting
in person or by proxy and voting                     thereon.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Every
question submitted to a General Meeting shall be decided by a show of
                    hands, but the Chairman of the Meeting may determine that a
resolution shall be                     decided by a written ballot. A written ballot may
be implemented before the                     proposed resolution is voted upon or
immediately after the declaration by the                     Chairman of the results of
the vote by a show of hands. If a vote by written                     ballot is taken
after such declaration, the results of the vote by a show of                     hands
shall be of no effect, and the proposed resolution shall be decided by
                    such written ballot.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | A
declaration by the Chairman of the meeting that a resolution has been carried
                    unanimously, or carried by a particular majority, or lost, and an
entry to that                     effect in the minute book of the Company, shall be
prima facie evidence of the                     fact without proof of the number or
proportion of the votes recorded in favor of                     or against such
resolution.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|31. | RESOLUTIONS
IN WRITING.
|--- | -----------------------

| | Subject
to the Companies Law, a resolution in writing signed by all Shareholders of the Company
then entitled to attend and vote at General Meetings or to which all such shareholders
have given their written consent (by letter, telegram, telex, facsimile or otherwise)
shall be deemed to have been unanimously adopted by a General Meeting duly convened and
held.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|32. | POWER
TO ADJOURN.
|--- | -----------------

| | (a) | The
Chairman of a General Meeting at which a quorum is present may, with the
                    consent of the holders of a majority of the voting power represented
in person                     or by proxy and voting on the question of adjournment (and
shall if so directed                     by the meeting), adjourn the meeting from time
to time and from place to place,                     but no business shall be transacted
at any adjourned meeting except business                     which might lawfully have
been transacted at the meeting as originally called.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | It
shall not be necessary to give any notice of an adjournment, unless the
                    meeting is adjourned for a date which is more than twenty-one (21)
days, in                     which event notice thereof shall be given in the manner
required for the meeting                     as originally called.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 12 -

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|33. | VOTING
POWER.
|--- | -------------

| | Subject
to the provisions of Article 34(a) and to any provision hereof conferring special rights
as to voting, or restricting the right to vote, every Shareholder shall have one vote for
each share held by him of record, on every resolution, without regard to whether the vote
thereon is conducted by a show of hands, by written ballot or by any other means.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|34. | VOTING
RIGHTS.
|--- | --------------

| | (a) | No
shareholder shall be entitled to vote at any General Meeting (or be counted
                    as a part of the quorum thereat), unless all calls then payable by
him in                     respect of his shares in the Company have been paid, but this
Article (a) shall                     not apply to separate General Meetings of the
holders of a particular class of                     shares pursuant to Article 8(b).
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | A
company or other corporate body being a Shareholder of the Company may duly
                    authorize any person to be its representative at any meeting of the
Company or                     to execute or deliver a proxy on its behalf. Any person so
authorized shall be                     entitled to exercise on behalf of such
Shareholder all the power, which the                     latter could have exercised if
it were an individual Shareholder. Upon the                     request of the Chairman
of the meeting, written evidence of such authorization                     (in form
acceptable to the Chairman) shall be delivered to him.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Any
Shareholder entitled to vote may vote either in person or by proxy (who need
                    not be Shareholder of the Company), or, if the Shareholder is a
company or other                     corporate body, by representative authorized
pursuant to Article (b).
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | If
two or more persons are registered as joint holders of any share, the vote of
                    the senior who tenders a vote, in person or by proxy, shall be
accepted to the                     exclusion of the vote(s) of the other joint
holder(s). For the purpose of this                     Article 34(d), seniority shall be
determined by the order of registration of the                     joint holders in the
Register of Shareholder.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# PROXIES

|35. | INSTRUMENT
OF APPOINTMENT.
|--- | --------------------------

| | (a) | An
instrument appointing a proxy shall be in writing and shall be substantially
                    in the following form:
| | --- | --------------------------------------------------------------------------------------------------------------------------

| |    |                                               |    |                                
| | -- | --------------------------------------------- | -- | -------------------------------
| |    |                                               |    |                                
| | "I | _______________________________               | of | _______________________________
| |    | (Name of Shareholder)                         |    | (Address of Shareholder)       
| |    |                                               |    |                                
| |    | Being a member of Lumenis Ltd. hereby appoint
| |    |                                               |    |                                
| |    | _______________________________               | of | _______________________________
| |    | (Name of Proxy)                               |    | (Address of Proxy)             

| | as
my proxy to vote for me and on my behalf at the  General  Meeting  of the  Company to be
                    held on the ___ day of _______, _______ and at any adjournment(s)
thereof.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Signed
this ____ day of ___________, ______.
| | --------------------------------------------

(Signature of
Appointor)"

- 13 -

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---

| | or
in any usual or common form or in such other form as may be approved by the Board of
Directors. Such proxy shall be duly signed by the appointor of such persons duly
authorized attorney, or, if such appointor is company or other corporate body, under its
common seal or stamp or the hand of its duly authorized agent(s) or attorney(s).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Subject
to the Companies Law, the instrument appointing a proxy (and the power
                    of attorney or other authority, if any, under which such instrument
has been                     signed) shall be delivered to the Company (at its Registered
Office, at its                     principal place of business, or at the offices of its
registrar or transfer                     agent, or at such place as the Board of
Directors may specify) not less than                     forty eight (48) hours (or such
shorter period as determined by the Board of                     Directors) before the
time fixed for such meeting. Notwithstanding the above,                     the Chairman
shall have the right to waive the time requirement provided above
                    with respect to all instruments of proxies and to accept any and all
instruments                     of proxy until the beginning of a General Meeting.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|36. | EFFECT
OF DEATH OF APPOINTOR OF TRANSFER OF SHARE AND OR REVOCATION OF
                    APPOINTMENT.
|--- | -------------------------------------------------------------------------------------------------------

| | (a) | A
vote cast in accordance with an instrument appointing a proxy shall be valid
                    notwithstanding the prior death or bankruptcy of the appointing
shareholder (or                     of his attorney-in-fact, if any, who signed such
instrument), or the transfer of                     the share in respect of which the
vote is cast, unless written notice of such                     matters shall have been
received by the Company or by the Chairman of such                     meeting prior to
such vote being cast.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Subject
to the Companies Law, an instrument appointing a proxy shall be deemed
                    revoked (i) upon receipt by the Company or the Chairman, subsequent
to receipt                     by the Company of such instrument, of written notice
signed by the person                     signing such instrument or by the Shareholder
appointing such proxy canceling                     the appointment thereunder (or the
authority pursuant to which such instrument                     was signed) or of an
instrument appointing a different proxy (and such other                     documents, if
any, required under Article 35(b) for such new appointment),                     provided
such notice of cancellation or instrument appointing a different proxy
                    were so received at the place and within the time for delivery of the
instrument                     revoked thereby as referred to in Article 35(b) hereof, or
(ii) if the                     appointing shareholder is present in person at the
meeting for which such                     instrument of proxy was delivered, upon
receipt by the Chairman of such meeting                     of written notice from such
shareholder of the revocation of such appointment,                     or if and when
such shareholder votes at such meeting. A vote cast in accordance
                    with an instrument appointing a proxy shall be valid notwithstanding
the                     revocation or purported cancellation of the appointment, or the
presence in                     person or vote of the appointing shareholder at a meeting
for which it was                     rendered, unless such instrument of appointment was
deemed revoked in accordance                     with the foregoing provisions of this
Article 36(b) at or prior to the time such                     vote was cast.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# BOARD OF DIRECTORS

|37. | POWERS
OF BOARD OF DIRECTORS.
|--- | -----------------------------

| | (a) | GENERAL.
The management of the business of the Company shall be vested in                     the
Board of Directors, which may exercise all such powers and do all such acts
                    and things as the Company is authorized to exercise and do, and are
not hereby                     or by law required to be exercised or done by the Company
by action of its                     shareholders at a General Meeting. The authority
conferred on the Board of                     Directors by this Article 37 shall be
subject to the provisions of the Companies                     Law, these Articles and
any regulation or resolution consistent with these                     Articles adopted
from time to time by the Company by action of its shareholders                     at a
General Meeting, provided, however, that no such regulation or resolution
                    shall invalidate any prior act done by or pursuant to a decision of
the Board of                     Directors which would have been valid if such regulation
or resolution had not                     been adopted.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (b) | BORROWING
POWER. The Board of Directors may from time to time, at its
                    discretion, cause the Company to borrow or secure the payment of any
sum or sums                     of money for the purposes of the Company, and may secure
or provide for the                     repayment of such sum or sums in such manner, at
such times and upon such terms                     and conditions as it deems fit, and,
in particular, by the issuance of bonds,                     perpetual or redeemable
debentures, debenture stock, or any mortgages, charges,                     or other
securities on the undertaking or the whole or any part of the property
                    of the Company, both present and future, including its uncalled or
called but                     unpaid capital for the time being.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | RESERVES.
The Board of Directors may, from time to time, set aside any
                    amount(s) out of the profits of the Company as a reserve or reserves
for any                     purpose(s) which the Board of Directors, in its absolute
discretion, shall deem                     fit, including without limitation,
capitalization and distribution of bonus                     shares, and may invest any
sum so set aside in any manner and from time to time                     deal with and
vary such investments and dispose of all or any part thereof, and
                    employ any such reserve or any part thereof in the business of the
Company                     without being bound to keep the same separate from other
assets of the Company,                     and may subdivide or redesignate any reserve
or cancel the same or apply the                     funds therein for another purpose,
all as the Board of Directors may from time                     to time think fit.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|38. | EXERCISE
OF POWERS OF BOARD OF DIRECTORS.
|--- | -----------------------------------------

| | (a) | A
meeting of the Board of Directors at which a quorum is present shall be
                    competent to exercise all the authorities, powers and discretion
vested in or                     exercisable by the Board of Directors, whether in person
or by any other means                     by which the Directors may hear each other
simultaneously.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | A
resolution proposed at any meeting of the Board of Directors shall be deemed
                    adopted if approved by a majority of the Directors present when such
resolution                     is put to a vote and voting thereon.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | The
Board of Directors may adopt resolutions, without convening a meeting of the
                    Board of Directors, in any manner permitted by the Companies Law.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|39. | DELEGATION
OF POWERS.
|--- | ---------------------

| | (a) | The
Board of Directors may, subject to the provisions of the Companies Law,
                    delegate any or all of its powers to Committees, each consisting of
one or more                     persons (who are Directors), and it may from time to time
revoke such delegation                     or alter the composition of any such
committee. Any Committee so formed (in                     these Articles referred to as
a Committee of the Board of                     Directors), shall, in the
exercise of the powers so delegated, conform to                     any regulation
imposed on it by the Board of Directors. The meeting and                     proceedings
of any such Committee of the Board of Directors shall, mutatis
                    mutandis, be governed by the provisions herein contained for
regulating the                     meetings of the Board of Directors, so far as not
superseded by any regulations                     adopted by the Board of Directors under
this Article. Unless otherwise expressly                     provided by the Board of
Directors in delegating powers to a Committee of the                     Board of
Directors, such Committee shall not be empowered to further delegate
                    such powers.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 15 -

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| | (b) | Without
derogating from the provisions of Article 52, the Board of Directors may
                    from time to time appoint a Secretary to the Company, as well as
officers,                     agents, employees and independent contractors, as the Board
of Directors deems                     fit, and may terminate the service of any such
person. The Board of Directors                     may, subject to the provisions of the
Companies Law, determine the powers and                     duties, as well as the
salaries and emoluments, of all such persons, and may                     require
security in such cases and in such amounts as it deems fit.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | The
Board of Directors may from time to time, by power of attorney or otherwise,
                    appoint any person, company, firm or body of persons to be the
attorney or                     attorneys of the Company at law or in fact for such
purposes(s) and with such                     powers, authorities and discretions, and
for such period and subject to such                     conditions, as it deems fit, and
any such power of attorney or other appointment                     may contain such
provisions for the protection and convenience of persons                     dealing with
any such attorney as the Board of Directors deems fit, and may also
                    authorize any such attorney to delegate all or any of the powers,
authorities                     and discretions vested in him.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|40. | NUMBER
OF DIRECTORS.
|--- | --------------------

| | The
Board of Directors of the Company shall consist of such number of Directors (not less than
two nor more than fourteen (14), including the External Directors) as may be fixed, from
time to time, by the Board of Directors of the Company.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|41. | ELECTION
AND REMOVAL OF DIRECTORS.
|--- | ----------------------------------

| | (a) | Subject
to the provisions of Section 41(c) below, Directors shall be elected at
                    a General Meeting by a resolution of the Shareholders represented at
such                     meeting in person or by proxy and voting on the election of
directors, and each                     Director shall serve, subject to Article 44
hereof, and, with respect to a                     Director appointed pursuant to Article
43 hereof, subject to such Article, until                     the Annual General Meeting
following the General Meeting at which such Director                     was elected
pursuant to this Article 41 or Article 43 hereof, or his earlier
                    removal pursuant to this Article 41. Subject to the provisions of
Section 41(c)                     below, the General Meeting, by a resolution of the
Shareholders represented at                     such General Meeting in person or by
proxy, shall be entitled to remove any                     Director(s) from office, to
elect Directors instead of Directors so removed or                     to fill any
vacancy, however created, in the Board of Directors.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
Directors may at any time and from time to time appoint any other person as
                    a Director, whether to fill a vacancy or to add additional Directors
to those                     then serving. Any Director so appointed shall hold office
until the first                     General Meeting convened after such appointment and
may be re-elected.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | In
the event that any 12% Group properly designated nominee(s) to serve on the
                    Board in accordance with Article 26(c), which nominee(s) have not
been properly                     rejected by the Board in accordance with Article 26(c),
such nominees of such                     12% Group shall be deemed elected at such
General Meeting if such election is                     approved by the affirmative vote
of either (i) a majority of the voting power                     present and voting in
person or by proxy at the General Meeting or (ii) all the                     members of
the 12% Group. In the event that the election of such nominee(s) is
                    approved under clause (ii), such election shall be deemed effective
regardless                     of the results of the vote by all shareholders present and
voting in person or                     by proxy at the General Meeting.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 16 -

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| | (d) | The
election, qualification and removal of External Directors shall be regulated
                    by the applicable provisions set forth in the Companies Law.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | Notwithstanding
anything to the contrary herein, the term of directorship of a
                    Director may commence as of a date later than the date of the
Shareholders                    Resolution electing said Director, if so specified
in said Shareholder                     Resolution.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|42. | 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 a Director in the past.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|43. | CONTINUING
DIRECTORS IN THE EVENT OF VACANCIES.
|--- | -----------------------------------------------

| | In
the event of one or more vacancies in the Board of Directors, the continuing Directors may
continue to act in every matter, and, pending the filling of any vacancy pursuant to the
provisions of Article 41, may appoint Directors to temporarily fill any such vacancy,
provided, however, that if they number less than a majority of the number provided for
pursuant to Article 40 hereof, they may only act in an emergency or to fill the office of
director which has become vacant up to the minimum number or in order to call a General
Meeting of the Company for the purpose of electing Directors to fill any or all vacancies,
so that at least a majority of the number of Directors provided for pursuant to Article 40
hereof are in office as a result of said meeting.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|44. | VACATION
OF OFFICE.
|--- | -------------------

| | (a) | The
office of a Director shall be vacated, ipso facto, upon his death, or if he
               be found lunatic or become of unsound mind, or if he becomes bankrupt, or
(if                the Director is a company) upon its winding-up, if he is prevented by
applicable                law from serving as a Director, or if his directorship expires
pursuant to these                Articles and/or applicable law.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
office of a Director shall be vacated by his written resignation. Such
               resignation shall become effective on the date fixed therein, or upon the
               delivery thereof to the Company, whichever is later.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|45. | REMUNERATION
OF DIRECTORS.
|--- | --------------------------

| | A
director shall be paid remuneration by the Company for his services as Director to the
extent such remuneration shall have been approved in the manner prescribed by the
Companies Law.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|46. | CONFLICT
OF INTERESTS; APPROVAL OF RELATED PARTY                     TRANSACTIONS.
|--- | ----------------------------------------------------------------------------------

| | (a) | Subject
to the provisions of the Companies Law and these Articles, no Director
                    shall be disqualified by virtue of his office from holding any office
or place                     of profit in the Company or in any company in which the
Company shall be a                     shareholder or otherwise interested, or from
contracting with the Company as                     vendor, purchaser or otherwise, nor
shall any such contract, or any contract or                     arrangement entered into
by or on behalf of the Company in which any Director                     shall be in any
way interested, be avoided, nor, other than as required under                     the
Companies Law, shall any Director be liable to account to the Company for
                    any profit arising from any such office or place of profit or
realized by any                     such contract or arrangement by reason only of such
Directors holding that                     office or of the fiduciary relations
thereby established, but the nature of his                     interest, as well as any
material fact or document, must be disclosed by him at                     the meeting of
the Board of Directors at which the contract or arrangement is                     first
considered, if his interest then exists, or, in any other case, at no
                    later than the first meeting of the Board of Directors after the
acquisition of                     his interest.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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---

|47. | ALTERNATE
DIRECTORS.
|--- | --------------------

| | (a) | Subject
to the provisions of the Companies Law, a Director may, by written
                    notice to the Company, appoint any individual as an alternate for
himself (in                     these Articles referred to as Alternate Director),
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. Unless the appointing
Director, by the instrument appointing an                     Alternate Director or by
written notice to the Company, limits such appointment                     to a specified
period of time or restricts it to a specified meeting or action                     of
the Board of Directors, or otherwise restricts its scope, the appointment
                    shall be for all purposes, and for a period of time concurrent with
the term of                     the appointing Director.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Any
notice to the Company pursuant to Article 47(a) shall be given in person to,
                    or by sending the same by mail to the attention of the Chairman of
the Board of                     Directors at the principal office of the Company or to
such other person or                     place as the Board of Directors shall have
determined for such purpose, and                     shall become effective on the date
fixed therein, or upon the receipt thereof by                     the Company (at the
place as aforesaid), whichever is later, in which case the                     notice
will be effective as of the date of such consent.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | An
Alternate Director shall have all the rights and obligations of the Director
                    who appointed him, provided however, that (i) he may not in turn
appoint an                     alternate for himself (unless the instrument appointing
him otherwise expressly                     provides), and (ii) an Alternate Director
shall have no standing at any meeting                     of the Board of Directors or
any Committee thereof while the Director who                     appointed him is
present.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | Any
individual, who qualifies to be a member of the Board of Directors, may act
                    as an Alternate Director. One person may not act as Alternate
Director for                     several directors.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | An
Alternate Director shall alone be responsible for his own acts and defaults,
                    and he shall not be deemed the agent of the Director(s) who appointed
him.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | The
office of an Alternate Director shall be vacated under the circumstances,
                    mutatis mutandis, set forth in Article 44, and such office shall ipso
facto be                     vacated if the Director who appointed such Alternate
Director ceases to be a                     Director.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# PROCEEDINGS OF THE
BOARD OF DIRECTORS

|48. | MEETINGS.
|--- | ---------

| | (a) | The
Board of Directors may meet and adjourn its meetings and otherwise regulate
                    such meetings and proceedings as the Directors think fit. Subject to
all of the                     other provisions of these Articles concerning meetings of
the Board of                     Directors, the Board of Directors may meet by audio or
video conference so long                     as each Director participating in such call
can hear, and be heard by, each                     other Director participating in such
call.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 18 -

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---

| | (b) | Any
Director may at any time, and the Secretary, upon the request of such
                    Director, shall, convene a meeting of the Board of Directors, but not
less than                     five (5) days notice shall be given of any meeting so
convened, unless                     such notice is waived in writing by all of the
Directors as to a particular                     meeting or unless the matters to be
discussed at such meeting is of such urgency                     and importance that
notice ought reasonably to be waived under the                     circumstances.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Notice
of any such meeting may be given orally, by telephone, in writing or by
                    mail or facsimile. Notwithstanding anything to the contrary herein,
failure to                     deliver notice to a director of any such meeting in the
manner required hereby                     may be waived by such Director, and a meeting
shall be deemed to have been duly                     convened notwithstanding such
defective notice if such failure or defect is                     waived prior to action
being taken at such meeting, by all Directors entitled to                     participate
at such meeting to whom notice was not duly given as aforesaid.
                    Without derogating from the foregoing, no Director present at the
commencement                     of a meeting of the Board of Directors shall be entitled
to seek the abolishment                     of any proceedings or resolutions adopted at
such meeting on account of any                     defect in the notice of such meeting
relating to the time or the place thereof.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|49. | QUORUM.
|--- | -------

| | Until
otherwise unanimously decided by the Board of Directors, a quorum at a meeting of the
Board of Directors shall be constituted by the presence in person or by telephone
conference of a majority of the Directors then in office who are lawfully entitled to
participate in the meeting. No business shall be transacted at a meeting of the Board of
Directors unless the requisite quorum is present (in person or by telephone conference)
when the meeting proceeds to business.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|50. | CHAIRMAN
OF THE BOARD OF DIRECTORS.
|--- | -----------------------------------

| | The
Board of Directors may from time to time, elect one of its members to be the Chairman of
the Board of Directors, and another of its members as Co-Chairman, remove such Chairman
and Co-Chairman from office and appoint others in their place. The Chairman of the Board
of Directors shall preside at every meeting of the Board of Directors, but if there is no
such Chairman, or if at any meeting he is not present within fifteen (15) minutes of the
time fixed for the meeting or if he is unwilling to take the chair, the Co-Chairman shall
preside. If both the Chairman and the Co-Chairman are not present or are unwilling to take
the chair the Directors present shall choose one of their number to be the Chairman of
such meeting. Neither the Chairman nor the Co-Chairman shall have a casting or additional
vote.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|51. | VALIDITY
OF ACTS DESPITE DEFECTS.
|--- | ---------------------------------

| | All
acts done bona fide at any meeting of the Board of Directors, or of a Committee of the
Board of Directors, or by any person(s) acting as Director(s), shall, notwithstanding that
it may afterwards be discovered that there was some defect in the appointment of the
participants in such meeting or any of them or any person(s) acting as aforesaid, or that
they or any of them were disqualified, be as valid as if there were no such defect or
disqualification.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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# CHIEF EXECUTIVE
OFFICER AND PRESIDENT

|52. | CHIEF
EXECUTIVE OFFICER AND PRESIDENT.
|--- | --------------------------------------

| | (a) | The
Board of Directors may from time to time appoint one or more persons,
                    whether or not Directors, as Chief Executive Officer or Officers,
General                     Manager or Managers, or President of the Company and may
confer upon such                     person(s), and from time to time modify or revoke,
such titles and such duties                     and authorities of the Board of Directors
as the Board of Directors may deem                     fit, subject to such limitations
and restrictions as the Board of Directors may                     from time to time
prescribe. Unless otherwise determined by the Board of                     Directors, the
Chief Executive Officer shall have authority with respect of the
                    management of the Company in the ordinary course of business. Such
                    appointment(s) may be either for a fixed term or without any
limitation of time,                     and the Board of Directors may from time to time
(subject to the provisions of                     the Companies Law and of any contract
between any such person and the Company)                     fix his or their salaries
and emoluments, remove or dismiss him or them from                     office and appoint
another or others in his or their place or places.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# MINUTES

|53. | MINUTES.
|--- | --------

| | (a) | Minutes
of each General Meeting and of each meeting of the Board of Directors
                    shall be recorded and duly entered in books provided for that
purpose, and shall                     be held by the Company at its principal office or
its Registered Office or such                     other place as shall have been
determined by the Board of Directors. Such                     minutes shall, in all
events, set forth the names of the persons present at the                     meeting and
all resolutions adopted thereat.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Any
minutes as aforesaid, if purporting to be signed by the chairman of the
                    meeting or by the chairman of the next succeeding meeting, shall
constitute                     prima facie evidence of the matters recorded therein.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# DIVIDENDS

|54. | DECLARATION
OF DIVIDENDS.
|--- | -------------------------

| | The
Board of Directors may from time declare, and cause the Company to pay, such interim or
final dividend as may appear to the Board of Directors to be justified by the profits of
the Company and as permitted by the Companies Law. The Board of Directors shall determine
the time for payment of such dividends, both interim and final, and the record date for
determining the shareholders entitled thereto.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|55. | FUNDS
AVAILABLE FOR PAYMENT OF DIVIDENDS.
|--- | -----------------------------------------

| | No
dividend shall be paid otherwise than out of the profits of the Company.
| | ---------------------------------------------------------------------------

|56. | AMOUNT
PAYABLE BY WAY OF DIVIDENDS.
|--- | -----------------------------------

| | (a) | Subject
to the provisions of these Articles and subject to the rights or
                    conditions attached at that time to any share in the capital of the
Company                     granting preferential, special or deferred rights or not
granting any rights                     with respect to dividends, any dividend paid by
the Company shall be allocated                     among the shareholders entitled
thereto in proportion to the sums paid up or                     credited as paid up on
account of the nominal value of their respective holdings                     of the
shares in respect of which such dividends are being paid, without taking
                    into account the premium paid up for the shares in excess of the
nominal value,                     if any. The amount paid up on account of a share which
has not yet been called                     for payment or fallen due for payment and
upon which the Company pays interest                     to the shareholder shall not be
deemed, for the purposes of this Article, to be                     a sum paid on account
of the share.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 20 -

---

---

| | (b) | Whenever
the rights attached to any shares or the terms of issue of the shares
                    do not provide otherwise, shares which are fully paid up or which are
credited                     as fully or partly paid within any period which in respect
thereof dividends are                     paid shall entitle the holders thereof to a
dividend in proportion to the amount                     paid up or credited as paid up
in respect of the nominal value of such shares                     and to the date of
payment thereof (pro rata temporis).
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|57. | INTEREST.
|--- | ---------

| | No
dividend shall carry interest as against the Company.
| | --------------------------------------------------------

|58. | PAYMENT
IN SPECIE.
|--- | ------------------

| | Upon
the recommendation of the Board of Directors approved by a Shareholders Resolution,
the Company (i) may cause any moneys, investments, or other assets forming part of the
undivided profits of the Company, standing to the credit of a reserve fund, or to the
credit of a reserve fund for the redemption of capital, or in the hands of the Company and
available for dividends, or representing premiums received on the issuance of shares and
standing to the credit of the share premium account, to be capitalized and distributed
among such of the shareholders as would be entitled to receive the same if distributed by
way of dividend and in the same proportion, on the footing that they become entitled
thereto as capital, or may cause any part of such capitalized fund to be applied on behalf
of such shareholders in paying up in full, either at par or at such premium as the
resolution may provide, any unissued shares or debentures or debenture stock of the
Company which shall be distributed accordingly, in payment, in full or in part, of the
uncalled liability on any issued shares or debentures or debenture stock; and (ii) may
cause such distribution or payment to be accepted by such shareholders in full
satisfaction of their interest in the said capitalized sum.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|59. | IMPLEMENTATION
OF POWERS UNDER ARTICLE 56.
|--- | ------------------------------------------

| | For
the purpose of giving full effect to any resolution under Article 58, and without
derogating from the provisions of Article 9(b) hereof, the Board of Directors may settle
any difficulty which may arise in regard to the distribution as it thinks expedient, and,
in particular, may issue fractional certificates, and may fix the value for distribution
of any specific assets, and may determine that cash payments shall be made to any
shareholders upon the footing of the value so fixed, or that fractions of less value than
the nominal value of one share may be disregarded in order to adjust the rights of all
parties, and may vest any such cash, shares, debentures, debenture stock or specific
assets in trustees upon such trusts for the persons entitled to the dividend or
capitalized fund as may seem expedient to the Board of Directors. Where requisite, a
proper contract shall be filed in accordance with Section 291 of the Companies Law, and
the Board of Directors may appoint any person to sign such contract on behalf of the
persons entitled to the dividend or capitalized fund.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|60. | DEDUCTIONS
FROM DIVIDENDS.
|--- | --------------------------

| | The
Board of Directors may deduct from any dividend or other moneys payable to any Shareholder
in respect of a share any and all sums of money then payable by him to the Company on
account of calls or otherwise in respect of shares of the Company and/or on account of any
other matter of transaction whatsoever.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|61. | RETENTION
OF DIVIDENDS.
|--- | -----------------------

| | (a) | The
Board of Directors may retain any dividend or other moneys payable or
                    property distributable in respect of a share on which the Company has
a lien,                     and may apply the same in or toward satisfaction of the
debts, liabilities, or                     engagements in respect of which the lien
exists.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 21 -

---

---

| | (b) | The
Board of Directors may retain any dividend or other moneys payable or
                    property distributable in respect of a share in respect of which any
person is,                     under Articles 22 or 23, entitled to become a Shareholder,
or which any person                     is, under said Articles, entitled to transfer,
until such person shall become a                     Shareholder in respect of such share
or shall transfer the same.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|62. | UNCLAIMED
DIVIDENDS.
|--- | --------------------

| | All
unclaimed dividends or other moneys payable in respect of a share may be invested or
otherwise made use of by the Board of Directors for the benefit of the Company until
claimed. The payment by the Directors of any unclaimed dividend or such other moneys into
a separate account shall not constitute the Company a trustee in respect thereof, and any
dividend unclaimed after a period of seven (7) years from the date of declaration of such
dividend, and any such other moneys unclaimed after a like period from the date the same
were payable, shall be forfeited and shall revert to the Company, provided, however, that
the Board of Directors may, at its discretion, cause the Company to pay any such dividend
or such other moneys, or any part thereof, to a person who would have been entitled
thereto had the same not reverted to the Company. The principal (and only the principal)
of any unclaimed dividend of such other moneys shall be if claimed, paid to a person
entitled thereto.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|63. | MECHANICS
OF PAYMENT.
|--- | ---------------------

| | Any
dividend or other moneys payable in cash in respect of a share may be paid be check or
warrant sent through the post to, or left at, the registered address of the person
entitled thereto or by transfer to a bank account specified by such person (or, if two or
more persons are registered as joint holders of such share or are entitled jointly thereto
in consequence of the death or bankruptcy of the holder or otherwise, to the joint holder
whose name is registered first in the Register of Shareholders or his bank account or the
person who the Company may then recognize as the owner thereof or entitled thereto under
Article 22 or 23hereof, as applicable, or such persons bank account), or to such
person and at such other address as the person entitled thereto may by writing direct.
Every such check or warrant shall be made payable to the order of the person to whom it is
sent, or to such person as the person entitled thereto as aforesaid may direct, and
payment of the check or warrant by the banker upon whom it is drawn shall be a good
discharge to the Company.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|64. | RECEIPT
FROM A JOINT HOLDER.
|--- | ----------------------------

| | If
two or more persons are registered as joint holders of any share, or are entitled jointly
thereto in consequence of the death or bankruptcy of the holder or otherwise, any one of
them may give effectual receipts for any dividend or other moneys payable or property
distributable in respect of such share.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ACCOUNTS

|65. | BOOKS
OF ACCOUNT.
|--- | -----------------

| | The
Board of Directors shall cause accurate books of account to be kept in accordance with the
provisions of the Companies Law and of any other applicable law. Such books of account
shall be kept at the Registered Office of the Company, or at such other place or places as
the Board of Directors may think fit, and they shall always be open to inspection by all
Directors. No shareholder, not being a Director, shall have any right to inspect any
account or book or other similar document of the Company, except as conferred by law or
authorized by the Board of Directors or by a Shareholders Resolution. The Company
shall make copies of its annual financial statements available for inspection by the
shareholders at the principal offices of the Company. The Company shall not be required to
send copies of its annual financial statements to shareholders.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 22 -

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|66. | AUDIT.
|--- | ------

| | At
least once in every fiscal year the accounts of the Company shall be audited and the
correctness of the profit and loss account and balance sheet certified by one or more duly
qualified auditors.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|67. | AUDITORS.
|--- | ---------

| | The
appointment, authorities, rights and duties of the auditor(s) of the Company, shall be
regulated by applicable law, provided, however, that in exercising its authority to fix
the remuneration of the auditor(s), the shareholders in General Meeting may act (and in
the absence of any action in connection therewith shall be deemed to have so acted) to
authorize the Board of Directors to fix such remuneration subject to such criteria or
standards, and if no such criteria or standards are so provided, such remuneration shall
be fixed in an amount commensurate with the volume and nature of the services rendered by
such auditor(s).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# SUPPLEMENTARY REGISTERS

|68. | SUPPLEMENTARY
REGISTERS.
|--- | ------------------------

| | Subject
to and in accordance with the provisions of Sections 138 to 139, inclusive, of the
Companies Law, the Company may cause supplementary registers to be kept in any place
outside Israel as the Board of Directors may think fit, and, subject to all applicable
requirements of law, the Board of Directors may from time to time adopt such rules and
procedures as it may think fit in connection with the keeping of such branch registers.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# EXEMPTION, INDEMNITY
AND INSURANCE

|69. | INSURANCE.
|--- | ----------

| | Subject
to the provisions of the Companies Law with regard to such matters, the Company may, to
the maximum extent permitted under the Companies Law, enter into a contract for the
insurance of the liability, in whole or in part, of any of its Office Holders imposed on
such Office Holder due to an act performed by the Office Holder in the Office
Holders capacity as an Office Holder of the Company arising from any of the
following:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | a
breach of duty of care to the Company or to any other person;
| | --- | ---------------------------------------------------------------

| | (b) | a
breach of his fiduciary duty to the Company, provided that the Office Holder
               acted in good faith and had reasonable grounds to assume that act that
resulted                in such breach would not prejudice the interests of the Company;
and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | a
financial liability imposed on such Office Holder in favor of any other
               person.
| | --- | ------------------------------------------------------------------------------------------------

| | (d) | any
other circumstances arising under the law with respect to which the Company
               may, or will be able to, insure an Office Holder.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------

- 23 -

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|70. | INDEMNITY.
|--- | ----------

| | (a) | Subject
to the provisions of the Companies Law including the receipt of all
               approvals as required therein or under any applicable law, the Company
may, to                the maximum extent permitted by law, retroactively indemnify an
Office Holder of                the Company with respect to the following liabilities and
expenses, provided                that such liabilities or expenses were imposed on such
Office Holder or incurred                by such Office Holder due to an act performed by
the Office Holder in such                Office Holders capacity as an Office
Holder of the Company:
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | a
financial liability imposed on an Office Holder in favor of another person by
               any court judgment, including a judgment given as a result of a settlement
or an                arbitrators award which has been confirmed by a court in
respect of an act                performed by the Office Holder.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | reasonable
litigation expenses, including attorneys fees, expended by the
               Office Holder as a result of an investigation or proceeding instituted
against                him or her by an authority authorized to conduct such
investigation or                proceeding, provided that (1) no indictment (as defined
in the Companies Law)                was filed against such office holder as a result of
such investigation or                proceeding; and (2) no financial liability as a
substitute for the criminal                proceeding (as defined in the Companies Law)
was imposed upon him or her as a                result of such investigation or
proceeding or if such financial liability was                imposed, it was imposed with
respect to an offence that does not require proof                of criminal intent.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | reasonable
litigation costs, including attorneys fees, expended by an                Office
Holder or which were imposed on an Office Holder by a court in                proceedings
filed against the Office Holder by the Company or in its name or by                any
other person or in a criminal charge in respect of which the Office Holder
               was acquitted or in a criminal charge in respect of which the Office
Holder was                convicted for an offence which did not require proof of
criminal intent.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv) | any
other circumstances arising under the law in respect of which the Company
               may indemnify an Office Holder.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------

| | (b) | Subject
to the provisions of the Companies Law including the receipt of all
               approvals as required therein or under any applicable law, the Company
may, to                the maximum extent permitted by law, undertake to indemnify an
Office Holder, in                advance, with respect to those liabilities and expenses
described in the                following Articles:
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | Sub-Article
70(a)(i) to 70(a)(iv); and
| | --- | --------------------------------------

| | (ii) | Sub-Article
70(a)(i), provided that the undertaking to indemnify:
| | ---- | -----------------------------------------------------------------

| | (1) | is
limited to such events which the Directors shall deem to be likely to occur
               in light of the operations of the Company at the time that the undertaking
to                indemnify is made and for such amounts or criterion which the Directors
may, at                the time of the giving of such undertaking to indemnify, deem to
be reasonable                under the circumstances; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 24 -

---

---

| | (2) | the
undertaking to provide such indemnification shall set forth such events
               which the Directors shall deem to be likely to occur in light of the
operations                of the Company at the time that the undertaking to indemnify is
made, and the                amounts and/or criterion which the Directors may, at the
time of the giving of                such undertaking to indemnify, deem to be reasonable
under the circumstances.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|71. | EXEMPTION.
|--- | ----------

| | Subject
to the provisions of the Companies Law including the receipt of all approvals as required
therein or under any applicable law, the Company may, to the maximum extent permitted by
law, exempt and release, in advance, any Office Holder from any liability for damages
arising out of a breach of a duty of care towards the Company.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|72. | GENERAL.
|--- | --------

| | (a) | Any
amendment to the Companies Law adversely affecting the right of any Office
                    Holder to be indemnified or insured pursuant to Articles 69 to 71 and
any                     amendments to Articles 69 to 71 shall be prospective in effect,
and shall not                     affect the Companys obligation or ability to
indemnify or insure an Office                     Holder for any act or omission
occurring prior to such amendment, unless                     otherwise provided by
applicable law.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
provisions of Articles 69 to 71 are not intended, and shall not be
                    interpreted so as to restrict the Company, in any manner, in respect
of the                     procurement of insurance and/or in respect of indemnification
and/or                     exculpation, in favor of any person who is not an Office
Holder, including,                     without limitation, any employee, agent,
consultant or contractor of the Company                     who is not an Office Holder;
and/or any Office Holder to the extent that such                     insurance and/or
indemnification is not specifically prohibited under law.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# WINDING UP

|73. | WINDING
UP.
|--- | -----------

| | If
the Company is wound up, then, subject to applicable law and to the rights of the holders
of shares with special rights upon winding up, the assets of the Company available for
distribution among the shareholders shall be distributed to them in proportion to the
nominal value of their respective holdings of the shares in respect of which such
distribution is being made.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# MERGERS

|74. | APPROVAL
OF MERGER.
|--- | -------------------

| | Notwithstanding
Section 327 of the Companies Law, a Shareholders resolution approving a merger (as
defined in the Companies Law) of the Company shall be deemed adopted if approved by the
holders of a majority of the voting power represented at the meeting in person or by proxy
and voting thereon.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 25 -

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---

# RIGHTS OF SIGNATURE,
STAMP AND SEAL

|75. | RIGHTS
OF SIGNATURE, STAMP AND SEAL.
|--- | ------------------------------------

| | (a) | The
Board of Directors shall be entitled to authorize any person or persons (who
                    need not be Directors) to act and sign on behalf of the Company, and
the acts                     and signature of such person(s) on behalf of the Company
shall bind the Company                     insofar as such person(s) acted and signed
within the scope of his or their                     authority.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
Board of Directors may provide for a seal. If the Board of Directors so
                    provides, it shall also provide for the safe custody thereof. Such
seal shall                     not be used except by the authority of the Board of
Directors and in the                     presence of the person(s) authorized to sign on
behalf of the Company, who shall                     sign every instrument to which such
seal is affixed.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# NOTICES

|76. | NOTICES.
|--- | --------

| | (a) | Any
written notice or other document may be served by the Company upon any
                    shareholder either personally, by facsimile transmission, or by
sending it by                     prepaid mail (airmail if sent internationally)
addressed to such shareholder at                     his address as described in the
Register of Shareholders or such other address                     as he may have
designated in writing for the receipt of notices and other                     documents.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Any
written notice or other document may be served by any shareholder upon the
                    Company by tendering the same in person to the Secretary or the
General Manager                     of the Company at the principal office of the
Company, by facsimile                     transmission, or by sending it by prepaid
registered mail (airmail if posted                     outside Israel) to the Company at
its Registered Office.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Any
such notice or other document shall be deemed to have been served:
| | --- | ----------------------------------------------------------------------

| | (i) | in
the case of mailing, forty-eight (48) hours after it has been posted, or when
                    actually received by the addressee if sooner than forty-eight hours
after it has                     been posted, or
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | in
the case of overnight air courier, on the next day following the day sent,
                    with receipt confirmed by the courier, or when actually received by
the                     addressee if sooner than three business days after it has been
sent;
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | in
the case of personal delivery, when actually tendered in person, to such
                    shareholder (or to the Secretary or the General Manager).
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv) | in
the case of facsimile transmission, the next day following the date on which
                    the sender receives automatic electronic confirmation by the recipients
                    facsimile machine that such notice was received by the addressee.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | If
a notice is, in fact, received by the addressee, it shall be deemed to have
                    been duly served, when received, notwithstanding that it was
defectively                     addressed or failed, in some other respect, to comply
with the provisions of                     this Article 76.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | All
notices to be given to the shareholders shall, with respect to any share to
                    which persons are jointly entitled, be given to whichever of such
persons is                     named first in the Register of Shareholders, and any
notice so given shall be                     sufficient notice to the holders of such
share.
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| | (f) | Any
shareholder whose address is not described in the Register of Shareholders,
                    and who shall not have designated in writing an address for the
receipt of                     notices, shall not be entitled to receive any notice from
the Company.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g) | Notwithstanding
anything to the contrary contained herein, notice by the Company                     of a
General Meeting, containing the information required to be set forth in
                    such notice under Article 27 hereof, which is published, within
the time                     otherwise required for giving notice of such meeting, in:
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | at
least two daily newspapers in the State of Israel shall be deemed to be           notice
of such meeting duly given, for the purposes of these Articles, to any
          shareholder whose address as registered in the Register of Shareholders (or as
          designated in writing for the receipt of notices and other documents) is
located           in the State of Israel; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | one
daily newspaper in the City of New York and in one international wire           service
shall be deemed to be notice of such meeting duly given, for the           purposes of
these Articles, to any shareholder whose address as registered in           the Register
of Shareholders (or as designated in writing for the receipt of           notices and
other documents) is located outside the State of Israel.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h) | The
mailing or publication date and the date of the meeting shall be counted as
                    part of the days comprising any notice period.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------

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