---

---

Exhibit 1.2

# B.O.S BETTER ON-LINE
SOLUTIONS LTD.

# ARTICLES OF ASSOCIATION

# IN ACORDANCE WITH THE
COMPANIES LAW, 5759-1999

|1. | The
Companys Name
|-- | ------------------

| | The
Companys name is B.O.S. Better On-Line Solutions Ltd.
| | ------------------------------------------------------------

|2. | The
Companys Objects
|-- | ---------------------

| | The
Companys object is to engage in any legal business.
| | --------------------------------------------------------

|3. | Interpretation
|-- | --------------

| | 3.1 | Everything
mentioned in the singular shall include the plural and vice versa, and everything
mentioned in the masculine shall include the feminine and vice versa.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.2 | Unless
these articles include special definitions for certain terms, every word and expression
herein shall bear the meaning attributed thereto in the Companies Law, 5759-1999
(hereinafter referred to as the Companies Law), unless the context otherwise
admits.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.3 | For
the avoidance of doubt, it is expressed that in respect of matters regulated in the
Companies Law such that it is possible to qualify the arrangements in respect thereof in
articles, and these articles do not include in respect thereof provisions different from
those of the Companies Law  the provisions of the Companies Law shall apply in
respect thereof.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The
Companys Share Capital and the Rights Attached to Shares
|-- | -------------------------------------------------------------

| | 4.1 | The
 Company's  authorized  capital  is  NIS  140,000,000  divided  into  35,000,000
                    ordinary shares of NIS 4 n.v. each. (amended May 2003 and May 2006).
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.2 | The
ordinary shares shall vest the holders thereof with -
| | --- | ---------------------------------------------------------

| | 4.2.1 | an
equal right to participate in and vote at the Companys general meetings, whether
ordinary or special, and each of the shares in the Company shall entitle its holder,
present at the meeting and participating in the vote, himself, by proxy or through a
voting instrument, to one vote;
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.2.2 | an
equal right to participate in a distribution of dividends, whether in cash or by way of
bonus shares, in a distribution of assets or in any other distribution, pro rata to the
nominal value of the shares held by them;
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.2.3 | an
equal right to participate in a distribution of the Companys surplus assets on
winding up pro rata to the nominal value of the shares held by them.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.3 | The
board of directors may issue shares and other securities which are convertible or
exercisable into shares up to the limit of the Companys authorised share capital.
With regard to computing the limit of the authorised capital, securities convertible or
exercisable into shares shall be deemed to have been converted or exercised on the date
of their issue. The board of directors may delegate such authority as permitted by law.
(amended May 2006)
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | The
shareholders liability for the Companys debts shall be limited to the full
amount (nominal value plus premium) they are required to pay the Company for the shares
and not yet paid by them.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---

|6. | Joint
Shareholders and Share Certificates
|-- | -----------------------------------------

| | 6.1 | Where
two or more persons are listed in the shareholders register as the joint holders of
a share, each of them may give binding receipts for any dividend or other monies in
connection with such share.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.2 | A
shareholder who is listed in the shareholders register may receive from the
Company, without payment, within three months of the allotment or registration of the
transfer, one share certificate bearing a seal in respect of all the shares registered in
his name, which shall specify the number of shares. In the case of a jointly held share,
the Company shall issue one share certificate to all the joint shareholders, and the
delivery of such a certificate to one of the joint shareholders shall be deemed delivery
to all of them.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Each
share certificate shall bear the signature of at least one director together with the
Companys stamp or its printed name.
| | -------------------------------------------------------------------------------------------------------------------------------

| | 6.3 | A
share certificate which has been defaced, destroyed or lost may be renewed in reliance
upon proof and guarantees as required by the Company from time to time.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | The
Companys Reliefs in relation to Shares Not Paid in Full
|-- | ------------------------------------------------------------

| | 7.1 | If
the consideration which the shareholder undertook to pay the Company for his shares or
any part thereof is not paid at the time and on the terms prescribed in the sharesallotment
terms and/or in the payment call mentioned in paragraph 7.2 below, the Company may,
pursuant to the board of directors resolution, forfeit the shares whose
consideration has not been paid in full. The shares shall be forfeited, provided that the
Company has sent the shareholder written warning of its intention to forfeit his shares,
at least seven days from the date of receiving the warning if the payment is not effected
during the period specified in the warning letter.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
board of directors may, at any time prior to the date on which a share forfeited is sold,
re-allotted or otherwise transferred, cancel the forfeiture on such terms as it deems
fit.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
shares forfeited shall be held by the Company as dormant shares or shall be sold to
another.
| | ------------------------------------------------------------------------------------------------

| | 7.2 | If
pursuant to the issue terms of shares there is no fixed date for payment of any part of
the price payable therefor, the board of directors may from time to time make calls for
payment on the shareholders in respect of the monies not yet paid for the shares held by
them, and every shareholder shall be liable to pay the Company the amount of the call
made on him on the date specified as aforesaid, provided that he receives 14 days notice
of the date and place for payment (hereinafter referred to as call). The
notice shall state that non-payment on the date specified or prior thereto at the place
specified might result in the forfeiture of the shares in relation to which the call was
made. A call may be cancelled or postponed to another date, as resolved by the board of
directors.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.3 | In
the absence of another provision in the shares allotment terms, a shareholder shall
not be entitled to receive dividend or to exercise any right as a shareholder in respect
of shares not yet paid up in full.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.4 | Persons
who are joint holders of a share shall be jointly and severally liable for payment of the
amounts due to the Company in respect of the share.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.5 | The
provisions of this paragraph are not such as to derogate from any other relief available
to the Company vis-a-vis a shareholder who has not paid his debt to the Company in
respect of his shares.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | Transfer
of Shares
|-- | ------------------

| | 8.1 | The
Company's shares may be transferred.
| | --- | ----------------------------------------

| | 8.2 | A
share  transfer  shall be effected in writing and shall not be registered unless 
| | --- | ------------------------------------------------------------------------------------

- 2 -

---

---

| | 8.2.1 | a
due share transfer instrument is furnished to the Company at its registered office
together with the certificates relating to the shares to be transferred, if issued. The
transfer instrument shall be signed by the transferor and a witness verifying the
transferors signature. In the case of a transfer of shares which are not fully paid
up on the date of the transfer, the transfer instrument shall also be signed by the
transferee and a witness verifying the transferees signature; or
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.2.2 | the
Company is given a court order to amend the registration; or
| | ----- | ----------------------------------------------------------------

| | 8.2.3 | it
is proved to the Company that the legal  conditions for  transmission
                                of the right to the share have been fulfilled.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.3 | A
transfer of shares which are not fully paid up requires the approval of the board of
directors, which may refuse to grant its approval in its absolute discretion and without
giving grounds therefor.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.4 | The
transferee shall be deemed the shareholder in relation to the shares being transferred
from the moment his name is listed in the shareholders register.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. | Alteration
to Capital
|-- | ---------------------

| | 9.1 | The
general meeting may increase the Companys authorized share capital by creating new
shares of an existing class or of a new class, as determined in the general meetings
resolution.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.2 | The
general meeting may cancel authorized share capital which has not yet been allotted,
provided that the Company has not undertaken, including conditionally, to allot the
shares.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.3 | The
general meeting may, subject to the provisions of any law:
| | --- | --------------------------------------------------------------

| | 9.3.1 | consolidate
and re-divide its share capital,  or any part thereof,  into
                                shares of a nominal value greater than that of the
existing shares;
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.3.2 | sub-divide
its existing shares, or any of them, or its share capital, or any part thereof, into
shares of a nominal value smaller than that of the existing shares;
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.3.3 | reduce
its share capital and any capital redemption reserve fund in such manner and on such
terms and conditions and with the receipt of such approval as the Companies Law requires.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | Alteration
of the Rights Attached to Classes of Shares
|--- | ------------------------------------------------------

| | 10.1 | So
long as not otherwise provided in the shares issue terms and subject to the
provisions of any law, the rights attached to a particular class of shares may be
altered, after a resolution is passed by the Company and with the approval of a
resolution passed at a general meeting of the holders of the shares of such class or the
written agreement of all the class holders.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
provisions of the Companys articles regarding general meetings shall apply, mutatis
mutandis, to a general meeting of the holders of a particular class of shares.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10.2 | The
rights vested in the holders of shares of a particular class that were issued with
special rights shall not be deemed to have been altered by the creation or issue of
further shares ranking equally with them, unless otherwise provided in such sharesissue
terms.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11. | General
Meetings
|--- | ----------------

| | 11.1 | The
Company's  resolutions  on the following  matters shall be passed at the general meeting

| | ---- | ----------------------------------------------------------------------------------------------

| | 11.1.1 | alterations
to the articles;
| | ------ | ----------------------------

| | 11.1.2 | the
 exercise  of the  board of  directors'  powers  when  the  board of
                                directors is unable to function;
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------

| | 11.1.3 | the
appointment and dismissal of the Company's auditor;
| | ------ | -------------------------------------------------------

| | 11.1.4 | the
appointment of directors, including external directors;
| | ------ | -----------------------------------------------------------

- 3 -

---

---

| | 11.1.5 | the
approval of acts and  transactions  requiring the general  meeting's
                                approval  pursuant to the  provisions of the Companies
Law and any other                                 law;
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.1.6 | increasing
and reducing the authorized share capital;
| | ------ | -----------------------------------------------------

| | 11.1.7 | a
merger as defined in the Companies Law.
| | ------ | -----------------------------------------

|12. | Convening
General Meetings
|--- | --------------------------

| | 12.1 | General
meetings shall be convened at least once a year at such place and time as determined by
the board of directors but no later than 15 months from the last general meeting. Such
general meetings shall be called annual meetings. The Companys other
meetings shall be called special meetings.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 12.2 | The
annual meetings agenda shall include a discussion of the board of directors reports
and the financial statements as required at law. The annual meeting shall appoint an
auditor, appoint the directors pursuant to these articles and discuss all the other
matters which must be discussed at the Companys annual general meeting, pursuant to
these articles or the Law, as well as any other matter determined by the board of
directors.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 12.3 | The
board of directors may convene a special meeting pursuant to its resolution and it must
convene a general meeting if it receives a written requisition from any one of the
following (hereinafter referred to as requisition):
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 12.3.1 | two
directors or one quarter of the directors holding office; and/or
| | ------ | --------------------------------------------------------------------

| | 12.3.2 | one
or more  shareholders  holding at least 5% of the issued capital and
                                at least 1% of the voting rights in the Company; and/or
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 12.3.3 | one
or more  shareholders  holding at least 5% of the  voting  rights in
                                the Company.
| | ------ | ---------------------------------------------------------------------------------------------------------------------

| | 12.4 | A
requisition must detail the objects for which the meeting must be convened and shall be
signed by the persons requisitioning it and sent to the Companys registered office.
The requisition may be made up of a number of documents in an identical form of wording,
each of which shall be signed by one or more of the persons requisitioning the meeting.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 12.5 | Where
the board of directors is required to convene a special meeting, it shall do so within 21
days of the requisition being submitted to it, for a date that shall be specified in the
invitation pursuant to paragraph 12.6 below and subject to the law.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 12.6 | Notice
to the Companys members regarding the convening of a general meeting shall be sent
to all the shareholders listed in the Companys shareholders register at least
21 days prior to the meeting and shall be published in other ways insofar as required by
the law. The notice shall include the agenda, proposed resolutions and arrangements with
regard to a written vote.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

|13. | The
Discussion at the General Meetings
|--- | --------------------------------------

| | 13.1 | No
 discussions  may be commenced at the general  meeting unless a quorum is present
                    at the time of the discussion's  commencement.  A quorum is the
presence of at least                     two  shareholders  holding at least 331/3% of the
voting  rights  (including  presence                     through a proxy or a voting
 instrument),  within half an hour of the time fixed for                     the
meeting's commencement. (amended August 2004)
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.2 | If
no quorum is present at a general meeting within half an hour of the time fixed for the
commencement thereof, the meeting shall be adjourned for one week, to the same day, time
and place, or to a later time if stated in the invitation to the meeting or in the notice
of the meeting (hereinafter referred to as the adjourned meeting.)
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.3 | The
quorum for the  commencement  of the  adjourned  meeting  shall be any number of
participants.
| | ---- | --------------------------------------------------------------------------------------------------

| | 13.4 | The
board of directors chairman shall serve as the general meetings chairman. If
the board of directors chairman is not present at the meeting within 15 minutes of
the time fixed therefor or if he refuses to chair the meeting, the chairman shall be
elected by the general meeting.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 4 -

---

---

| | 13.5 | A
general meeting at which a quorum is present may resolve to adjourn the meeting to
another place and time determined by it, and in such case notices and invitations in
respect of the adjourned meeting shall be given as provided in paragraph 12.6 above.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|14. | Voting
at the General Meeting
|--- | -----------------------------

| | 14.1 | A
shareholder of the Company may vote at the general  meetings  himself or through a
                    proxy or a voting instrument.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------

| | The
shareholders entitled to participate in and vote at the general meeting are the
shareholders on the date specified by the board of directors in the resolution to convene
the general meeting, and subject to the law.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 14.2 | In
every vote each shareholder shall have a number of votes according with the number of
shares held by him.
| | ---- | ------------------------------------------------------------------------------------------------------------

| | 14.3 | A
resolution at the general meeting shall be passed by an ordinary majority unless another
majority is specified in the Companies Law or these articles.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | 14.4 | The
declaration of the meetings chairman that a resolution has been passed unanimously
or by a particular majority, or that it has been defeated or not passed by a particular
majority, shall constitute prima facie proof of that stated therein.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 14.5 | If
the votes at a meeting are tied, the chairman of the meeting shall not have an additional
or deciding vote, and the resolution that was put to the vote shall be defeated.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 14.6 | The
Companys shareholders may, in respect of any matter on the meetings agenda,
vote at a general meeting (including a class meeting) through a voting instrument,
provided that the board of directors does not, subject to any law, rule out the
possibility of voting through a proxy instrument on such matter in its resolution to
convene the general meeting.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If
the board of directors prohibits voting through a voting instrument, the fact that the
possibility of voting through a voting instrument has been ruled out shall be stated in
the notice of the meeting pursuant to paragraph 12.6 above.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 14.7 | A
shareholder may state the way in which he is voting in the voting instrument and send it
to the Companys registered office at least 48 hours prior to the meetings
commencement. A voting instrument in which a shareholder states the way in which he is
voting, which reaches the Companys registered office at least 48 hours prior to the
meeting (including the adjourned meeting), shall be deemed presence at the meeting for
the purpose of constituting the quorum as provided in paragraph 13.1 above. (amended
May 2003)
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 14.8 | A
proxy shall be appointed in a written instrument signed by the appointor. A corporation
shall vote through its representatives who shall be appointed by a document duly signed
by the corporation.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 14.9 | Voting
in accordance with the terms and conditions of a proxy instrument shall be legal even if
prior thereto the appointor dies or becomes legally incapacitated, is wound up, becomes
bankrupt, cancels the proxy instrument or transfers the share in relation to which it was
given, unless written notice is received at the office prior to the meeting that the
shareholder has died, become legally incapacitated, been wound up, become bankrupt,
cancelled the appointment instrument or transferred the share as aforesaid.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 14.10 | The
proxy instrument and the power of attorney or a copy certified by an attorney shall be
deposited at the Companys registered office at least 48 hours prior to the time
fixed for the meeting or the adjourned meeting at which the person mentioned in the
document intends voting pursuant thereto.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 14.11 | A
shareholder of the Company shall be entitled to vote at meetings of the Company through a
number of proxies appointed by him, provided that each proxy is appointed in respect of
different parts of the shares held by the shareholder. There shall not be any impediment
to any proxy as aforesaid voting differently at meetings of the Company.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 5 -

---

---

| | 14.12 | If
a shareholder is legally incapacitated, he may vote by his board of trustees, receiver,
natural guardian or other legal guardian, and they may vote themselves or by proxy or
through a voting instrument.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 14.13 | Where
two or more persons are the joint holders of a share, in a vote on any matter the vote of
the person whose name appears first in the shareholders register as the holder of
such share shall be accepted, himself or by proxy, and he is entitled to give the Company
voting instruments.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15. | The
Board of Directors
|--- | ----------------------

| | The
board of directors shall delineate the Companys policy and supervise the performance
of the Managing Directors duties and actions. Any power of the Company which has not
been vested in another organ pursuant to the Companies Law or the articles may be
exercised by the board of directors.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|16. | Appointment
and Dismissal of Directors
|--- | --------------------------------------

| | 16.1 | The
number of directors in the Company (including external directors) shall be determined
from time to time by the annual general meeting, provided that it shall not be less than
four nor more than eleven.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.2 | The
Companys directors shall be elected at the annual meeting and/or at a special
meeting, and shall hold office until the end of the next annual meeting or until they
cease to hold office pursuant to the provisions of the articles. If at a general meeting
of the Company new directors in the minimum amount specified pursuant to the articles are
not elected, the directors who held office until such time shall continue to hold office,
until they are replaced by the Companys general meeting.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.3 | In
addition to the provisions of paragraph 16.2 above, the board of directors may appoint a
director instead of a director whose office has been vacated and/or as an additional
director, subject to the maximum number of directors on the board of directors as
provided in paragraph 16.1 above. The appointment of a director by the board of directors
shall be valid until the next annual meeting or until he ceases to hold office pursuant
to the provisions of the articles.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.4 | A
director whose term of office has come to an end may be re-elected.
| | ---- | ---------------------------------------------------------------------

| | 16.5 | The
office of a director shall commence on the date of his appointment by the annual meeting
and/or the special meeting and/or the board of directors or on a later date if specified
in the appointment resolution of the annual meeting and/or special meeting and/or board
of directors.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.6 | The
board of directors shall elect a board of directors chairman from amongst its
members. If a chairman is not elected or if the chairman is not present at the end of 15
minutes from the time fixed for the meeting, the directors present shall elect one of
their number to chair such meeting, and the person chosen shall conduct the meeting and
sign the discussion minutes.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
board of directors chairman shall not be the Companys MD save on fulfillment
of the conditions mentioned in section 121(c) of the Companies Law.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.7 | The
general meeting may remove any director from his office before the end of his term of
office, whether the director was appointed by it by virtue of paragraph 16.2 above or by
the board of directors by virtue of paragraph 16.3 above, provided that the director is
given a reasonable opportunity to state his case before the general meeting.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.8 | Where
the office of a director is vacated, the remaining directors may continue to act so long
as their number has not fallen below the minimum specified in the articles. Where the
number of directors has fallen below the aforementioned minimum, the remaining directors
may only act in order to fill the place of the director which has been vacated as
mentioned in paragraph 16.3 above or in order to convene a general meeting of the
Company, and until the general meeting is convened as aforesaid they may act to manage
the Companys business only in respect of matters that cannot bear delay.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 6 -

---

---

| | 16.9 | Every
board of directors member may appoint an alternate for himself, provided that such
an appointment shall not be for a period exceeding one month, and that someone who was
appointed as an alternate for another director and/or who is already serving as a
director of the Company may not be appointed as an alternate, except as provided in
section 237(d) of the Companies Law.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
appointment or termination of the office of an alternate shall be effected in a written
document signed by the director who appointed him; however, in any event, the office of
an alternate shall terminate if one of the events specified in paragraph 16.10 below
befalls the alternate or if the office of the board of directors member for whom he
is acting as alternate is vacated for whatsoever reason.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | An
alternate shall be treated as a director and all the provisions of the law and these
articles shall apply to him, save for the provisions regarding the appointment and/or
dismissal of a director specified herein. (amended May 2003 andMay 2006)
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.10 | The
office of a director shall be vacated in any one of the following cases:
| | ----- | ----------------------------------------------------------------------------

| | 16.10.1 | he
resigns from his office by a letter  signed him and  submitted to the
                                Company which specifies the reasons for his resignation;
| | ------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.10.2 | he
is removed from his office by the general meeting;
| | ------- | -----------------------------------------------------

| | 16.10.3 | he
is  convicted  of an  offence  as  provided  in  section  232  of the
                                Companies Law;
| | ------- | -----------------------------------------------------------------------------------------------------------------------

| | 16.10.4 | pursuant
 to a  court  decision,  as  provided  in  section  233  of the
                                Companies Law;
| | ------- | -----------------------------------------------------------------------------------------------------------------------

| | 16.10.5 | he
is declared legally incapacitated;
| | ------- | -------------------------------------

| | 16.10.6 | he
is declared bankrupt, and in the case of a corporation  it is resolved to wind it
up voluntarily or a winding up order is given in respect thereof.
| | ------- | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.11 | The
terms of office of the board of directors members shall be approved by the audit
committee, the board of directors and the general meeting, in this chronological order.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17. | Board
of Directors Meetings
|--- | ----------------------------

| | 17.1 | The
board of directors shall convene in accordance with the Companys requirements and
at least once every three months.
| | ---- | ------------------------------------------------------------------------------------------------------------------------

| | 17.2 | The
board of directors chairman may convene the board of directors at any time. In
addition, the board of directors shall hold a meeting, on a matter that shall be
detailed, in the following cases:
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.2.1 | on
the demand of two directors; however, if at such time the board of directors consists of
five directors or less  on the demand of one director;
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.2.2 | on
the demand of one director if he states in his demand to convene the board of directors
that he has learned of a matter involving the Company in which a prima facie
contravention of the Law or an infringement of proper business procedure has been
discovered;
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.2.3 | a
notice  or  report  of the  managing  director  obliges  action by the
                                board of directors;
| | ------ | ----------------------------------------------------------------------------------------------------------------------------

| | 17.2.4 | the
auditor has notified the board of  directors'  chairman of materials
                                deficiencies in the audit of the Company's accounts.
| | ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.3 | Notice
of a board of directors meeting shall be sent to all its members at least three
days prior to the date of the meeting. The notice shall be sent to the address of the
director which was furnished to the Company in advance, and shall state the date, time
and place of the meeting, and reasonable details of all the matters on the agenda.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Notwithstanding
the aforegoing, the board of directors may convene a meeting without notice, with all the
directors agreement.
| | -------------------------------------------------------------------------------------------------------------------------------

| | 17.4 | The
quorum for the commencement of a board of directors meeting shall be a majority of
the members of the board of directors. If no quorum is present at the board of directors meeting
within half an hour of the time fixed for the meetings commencement, the meeting
shall be adjourned to another date decided upon by the board of directors chairman,
or in his absence by the directors present at the meeting, provided that three days notice
shall be given to all the directors of the date of the adjourned meeting. The quorum for
the commencement of an adjourned meeting shall be any number of participants.
Notwithstanding the aforegoing, the quorum for discussions and resolutions at the board
of directors on the auditors dismissal or suspension shall be a majority of the
board of directors members.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 7 -

---

---

| | 17.5 | The
board of directors may hold meetings using any communications means, provided that all
the directors participating may hear each other simultaneously.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.6 | The
board of directors may also pass resolutions without actually convening, provided that
all the directors entitled to participate in the discussion and vote on a matter that is
brought for resolution agree not to convene for discussion of the matter. In such a case,
minutes of the resolutions (including the decision not to convene) shall be signed by the
chairman of the board of directors, or alternatively, signatures of the directors shall
be attached to the minutes. Instead of a directors signature, the chairman of the
board or the corporate secretary may attach a signed memo regarding the oral vote of a
director. Resolutions passed without convening, as aforementioned, shall be passed by an
ordinary majority and shall have the same effect as resolutions passed at a duly convened
meeting. (amended
May 2006)
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18. | Voting
at the Board of Directors
|--- | --------------------------------

| | 18.1 | In
a vote at the board of directors, each director shall have one vote.
| | ---- | -----------------------------------------------------------------------

| | 18.2 | The
board of directors resolutions shall be passed on a majority. The board of directors chairman
shall not have an additional or deciding vote and where the votes are tied, the
resolution that was put to the vote shall be defeated.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19. | Board
of Directors Committees
|--- | ------------------------------

| | 19.1 | The
board of directors may establish committees and appoint members from the board of
directors thereto (hereinafter referred to as board of directorscommittee),
and it may from time to time revoke such delegation or alter the composition of such
committee. If board of directors committees are established, the board of directors
shall determine in their terms of authority whether certain powers of the board of
directors will be delegated to the board of directors committee such that a
resolution of the board of directors committee shall be deemed a resolution of the
board of directors or whether a resolution of the board of directorscommittee shall
merely amount to a recommendation which is subject to the board of directors approval,
provided that powers to resolve on the matters specified in section 112 of the Companies
Law shall not be delegated to a committee. If a committee merely has a recommendation
role, the board of directors may also appoint to the committee members who are not
directors. (amended May 2006)
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 19.2 | The
meetings and discussions of any board of directors committee composed of two or
more members shall be governed by the provisions of these articles regarding board of
directors meetings and the voting thereat, mutatis mutandis, and subject to the
board of directors resolutions regarding arrangements for the committees
meetings (if any).
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20. | Audit
Committee
|--- | ---------------

| | 20.1 | The
Companys board of directors shall appoint an audit committee from amongst its
members. The number of members on the audit committee shall not be less than three and
all the external directors shall be members thereof. The board of directors chairman
and any director employed by the Company or providing services to it on a permanent basis
and/or a control owner or his relative shall not be appointed as members of the
committee.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 20.2 | The
duties of the audit committee shall be -
| | ---- | --------------------------------------------

| | 20.2.1 | to
detect deficiencies in the Companys business management, inter alia through
consultation with the Companys internal auditor or with the auditor, and to propose
to the board of directors ways of rectifying them;
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 20.2.2 | to
resolve whether to approve acts and transactions requiring the audit committees
approval pursuant to the Companies Law.
| | ------ | ---------------------------------------------------------------------------------------------------------------------------

- 8 -

---

---

|21. | Managing
Director
|--- | -----------------

| | The
Companys board of directors shall appoint a managing director and may appoint more
than one managing director. The managing director shall be responsible for the routine
management of the Companys affairs within the framework of the policy determined by
the board of directors and subject to its guidelines.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|22. | Exemption,
Insurance and Indemnity (amended May 2006)
|--- | -----------------------------------------------------

| | 22.1 | The
Company may exempt an Office Holder therein in advance for his liability, or any part
thereof, for damage in consequence of a breach of the duty of care vis-a-vis it, except
with respect to Distribution (as defined in the Companies Law).
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 22.2 | The
Company may indemnify an Office Holder retroactively for an obligation or expense as
specified in sub-paragraphs 22.2.1 22.2.2 and 22.2.3 below, imposed on him in consequence
of act done in his capacity as an officer in the Company.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 22.2.1 | a
monetary obligation imposed on him in favor of another person pursuant to a judgment,
including a judgment given in settlement or an arbitrators award that has been
approved by a court;
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 22.2.2 | reasonable
litigation expenses, including advocates professional fees, incurred by the Office
Holder pursuant to an investigation or a proceeding commenced against him by a competent
authority and that was terminated without an indictment and without having a monetary
charge imposed on him in exchange for a criminal procedure (as such terms are defined in
the Companies Law), or that was terminated without an indictment but with a monetary
charge imposed on him in exchange for a criminal procedure in a crime that does not
require proof of criminal intent;
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 22.2.3 | reasonable
litigation expenses, including advocates professional fees, incurred by the Office
Holder or which he is ordered to pay by a court, in proceedings filed against him by the
company or on its behalf or by another person, or in a criminal indictment in which he is
acquitted, or in a criminal indictment in which he is convicted of an offence that does
not require proof of criminal intent.
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 22.3 | The
Company may give an advance undertaking vis-a-vis an Office Holder to indemnify him in
respect of an obligation or expense as specified in paragraph 22.2 above, provided that
the undertaking specified in paragraph 22.2.1 is limited to types of events which in the
board of directors opinion may be anticipated, in light of the Companys
activities, at the time of giving the indemnity undertaking, and to an amount or criteria
which the board of directors determines is reasonable in the circumstances of the case,
both to be specified in the Companys undertaking.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 22.4 | A
company may enter into a contract to insure the liability of an Office Holder therein for
an obligation imposed on him in consequence of an act done in his capacity as an Office
Holder therein, in any of the following cases:
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 22.4.1 | a
 breach  of the  duty of  care  vis-a-vis  the  Company  or  vis-a-vis
                                another person;
| | ------ | ------------------------------------------------------------------------------------------------------------------------

| | 22.4.2 | a
breach of the duty of fidelity vis-a-vis the Company, provided that the Office Holder
acted in good faith and had reasonable basis to assume that the act would not harm the
Company;
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 22.4.3 | a
monetary obligation imposed on him in favor of another person.
| | ------ | ----------------------------------------------------------------

| | 22.5 | Paragraphs
22.1 to 22.4 shall not apply in any of the following cases -
| | ---- | -----------------------------------------------------------------------

| | 22.5.1 | a
breach of the duty of fidelity, save regarding insurance and indemnity provided that the
Office Holder acted in good faith and had reasonable basis to assume that the act would
not harm the Company;
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 22.5.2 | an
 intentional  or rash  breach of the duty of care,  except  where the
                                breach was negligent only;
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------

| | 22.5.3 | an
act done  with the  intention  of  unlawfully  producing  a  personal
                                profit;
| | ------ | ----------------------------------------------------------------------------------------------------------------

| | 22.5.4 | a
fine imposed on an Office Holder.
| | ------ | -----------------------------------

| | 22.6 | Resolutions
regarding the grant of exemption, insurance, indemnity or the grant of an undertaking to
indemnify an Office Holder shall be passed subject to the law.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 9 -

---

---

| | 22.7 | Office
Holder in this section shall include directors and officers as defined in the
Companies Law 1999.
| | ---- | ----------------------------------------------------------------------------------------------------------

|23. | Internal
Auditor
|--- | ----------------

| | 23.1 | The
Companys board of directors shall appoint an internal auditor in accordance with
the audit committees proposal. Interested parties in the Company, officers in the
Company, relatives of any of the aforegoing and the auditor or someone on his behalf may
not hold office as the Companys internal auditor.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 23.2 | The
board of directors shall determine what officer shall be the organ to whom the internal
auditor is subordinate, and in the absence of such a determination it shall be the board
of directors chairman.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 23.3 | The
internal audit plan prepared by the auditor shall be submitted for the audit committees
approval; however, the board of directors may determine that the plan shall be submitted
for the board of directors approval.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|24. | Auditor
|--- | -------

| | 24.1 | The
annual meeting shall appoint an auditor for the Company. The auditor shall hold office
until the end of the following annual meeting, or for a longer term as determined by the
annual meeting, provided that his term of office shall not extend beyond the end of the
third annual meeting following the one at which he was appointed.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 24.2 | The
auditors remuneration for the audit shall be determined by the board of directors.
The board of directors shall report to the annual meeting on the auditors
remuneration.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|25. | Signatory
Rights
|--- | ----------------

| | 25.1 | The
rights to sign on the Companys behalf shall be determined from time to time by the
Companys board of directors.
| | ---- | ---------------------------------------------------------------------------------------------------------------------

| | 25.2 | The
signatory on the Companys behalf shall sign together with the Companys stamp
or its printed name.
| | ---- | -------------------------------------------------------------------------------------------------------

|26. | Dividend
and Bonus Shares
|--- | -------------------------

| | 26.1 | The
Companys board of directors shall be the organ authorized to decide upon the
distribution of a dividend and/or the distribution of bonus shares.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------

| | 26.2 | The
shareholders who are entitled to dividend are the shareholders on the date of the
resolution on the dividend or on a later date if another date is specified in the
resolution on the dividends distribution.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 26.3 | If
the board of directors does not otherwise determine, any dividend may be paid by way of a
cheque or payment order that shall be sent by mail in accordance with the registered
address of the shareholder or person entitled thereto, or in the case of registered joint
shareholders to the shareholder whose name appears first in the shareholdersregister
in relation to the joint shareholding. Every such cheque shall be drawn up to the order
of the person to whom it is being sent. The receipt of a person who on the date of the
dividends declaration is listed in the shareholders register as the holder of
any share or, in the case of joint shareholders, of one of the joint shareholders shall
serve as confirmation of all the payments made in connection with such share.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 26.4 | For
the purpose of implementing any resolution pursuant to the provisions of this paragraph,
the board of directors may settle, as it deems fit, any difficulty arising in relation to
the distribution of the dividend and/or bonus shares, including determine the value for
the purpose of the said distribution of certain assets and resolve that payments in cash
shall be made to members in reliance upon the value thus determined, determine
regulations in relation to fractions of shares or in relation to non-payment of amounts
less than NIS 200.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 10 -

---

---

|27. | Redeemable
Securities
|--- | ---------------------

| | The
Company may, subject to any law, issue redeemable securities on such terms as determined
by the board of directors, provided that the general meeting approves the board of
directors recommendation and the terms determined.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|28. | Contributions
|--- | -------------

| | The
Company may contribute a reasonable sum of money for an worthy object, even if the
contribution is not within the scope of business considerations conducive to the
Companys profits.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|29. | Accounts
|--- | --------

| | 29.1 | The
Company shall keep accounts and draw up financial statements pursuant to the Securities
Law and any other law.
| | ---- | ------------------------------------------------------------------------------------------------------------------

| | 29.2 | The
books of account shall be kept at the office or at such other place as the directors deem
fit, and shall always be open for the directors inspection.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|30. | Notices
|--- | -------

| | 30.1 | Subject to any law, notice or any other document which the Company sends and which it may
or is required to give pursuant to the provisions of these articles and/or the Companies
Law shall be sent by the Company to any person personally, by mail in a letter addressed
in accordance with the registered address of such shareholder in the shareholders
register or in accordance with any address which the shareholder specifies in a letter to
the Company as the address for the sending of notices or other documents, or by facsimile
in accordance with the number specified by the shareholder as the number for sending
notices by facsimile. Should the Company publish notice in at least two Israeli daily
newspapers, notice shall be deemed to have been given to any member whose address as
registered in the Companys Register is in Israel.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 30.2 | Any
notices which must be given to the shareholders shall be given, in relation to shares
which are jointly held, to the person whose name appears first in the shareholdersregister
as the holder of such share, and any notice given in this manner shall be adequate notice
to the holders of such share.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 30.3 | Any
notice or other document that is sent shall be deemed to have reached its destination
within three business days  if sent by registered mail and/or ordinary mail in
Israel, and if delivered by hand or sent by facsimile, it shall be deemed to have reached
its destination on the first business day following its receipt. When coming to prove the
delivery, it shall be adequate to prove that the letter that was sent by mail containing
the notice or document was correctly addressed and delivered to the post office as a
stamped letter or as a stamped registered letter, and in respect of a facsimile it is
sufficient to furnish the transmission confirmation from the sending instrument.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 30.4 | Any
entry effected in the ordinary way in the Companys register shall be deemed prima
facie proof regarding the dispatch, as entered in such register.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | 30.5 | Where
it is necessary to give prior notice of a particular number of days or notice that is
valid for any period, the date of delivery shall be taken into account in reckoning the
number of days or the period.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 11 -

---

---