----

----

| Chapter One - General                               |        3                                                                   |
|-----------------------------------------------------|--------------------------------------------------------------------------------------|
|    1.                                | Definitions and      Interpretation                                                  |   3  |
|    2.                                | Public Company                                                                       |        5  |
|    3.                                | The Purpose of the      Company                                                      |        5  |
|    4.                                | The Objectives of the      Company                                                   |        5  |
|    5.                                | Limited      Liability                                                               |        5  |
| Chapter Two - The Share Capital of the      Company |        6                                                                   |
|    6.                                | Share Capital                                                                        |        6  |
|    7.                                | The Issuance of Shares      and Other Equity Securities                              |        6  |
|    8.                                | Calls for      Payment                                                               |        7  |
|    9.                                | The Shareholder      Registers of the Company and the Issuance of Share Certificates |        8  |
|    10.                               | Transfer of Shares of      the Company                                               |        9  |
|    10A.                              | Limitations on      Transfer of Shares                                               |        11  |
|    10B.                              | Required Minimum      Holdings                                                       |        13  |
|    11.                               | Bearer Share      Certificate                                                        |        13  |
|    12.                               | Pledge of      Shares                                                                |        13  |
|    13.                               | Changes in the Share      Capital                                                    |        14  |
| Chapter Three - General Meetings                    |        16                                                                  |
|    14.                               | The Authority of the      General Meeting                                            |        16  |
|    15.                               | Kinds of General      Meetings                                                       |        17  |
|    16.                               | The Holding of General      Meetings                                                 |        18  |
|    17.                               | The Agenda of General      Meetings                                                  |        19  |
|    18.                               | Discussions in General      Meetings                                                 |        20  |
|    19.                               | Voting of the      Shareholders                                                      |        21  |
|    20.                               | The Appointment of a      Proxy                                                      |        24  |
|    21.                               | Deed of Vote, Voting      Via the Internet                                           |        25  |
| Chapter Four - The Board ofDirectors                |        25                                                                  |
|    22.                               | The Authority of the      Board of Directors                                         |        25  |
|    23.                               | The Appointment of      Directors and the Termination of Their Office                |        27  |
|    24.                               | Actions of      Directors                                                            |        31  |

----

|    25.                                                               | Committees of the      Board of Directors                                           |   35       |
|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|----------------------|
|    25A.                                                              | Committee for Security      Matters                                                 |        35  |
|    25B.                                                              | Approval of Certain      Related Party Transactions                                 |        37  |
|    26.                                                               | Chairman of the Board      of Directors                                             |        37  |
| Chapter Five - Officers who are not Directors and      the Auditor                  |        38                                                                 |
|    27.                                                               | The General      Manager                                                            |        38  |
|    28.                                                               | The Corporate      Secretary, Internal Controller and Other Officers of the Company |        40  |
|    29.                                                               | The Auditor                                                                         |        41  |
| Chapter Six - The Share Capital of the Company and      its Distribution            |        41                                                                 |
|    30.                                                               | Permitted      Distributions                                                        |        41  |
|    31.                                                               | Dividends and Bonus      Shares                                                     |        42  |
|    32.                                                               | The Acquisition of      Shares                                                      |        46  |
| Chapter Seven - Insurance, Indemnification and      Release of Officers             |        46                                                                 |
|    33.                                                               | Insurance of      Officers                                                          |        46  |
|    34.                                                               | Indemnification of      Officers                                                    |        47  |
|    35.                                                               | Release of      Officers                                                            |        48  |
| Chapter Eight - Liquidation and Reorganization of      the Company                  |        49                                                                 |
|    36.                                                               | Liquidation                                                                         |        49  |
|    37.                                                               | Reorganization                                                                      |        49  |
| Chapter Nine - Miscellaneous                                                        |        50                                                                 |
|    38.                                                               | Notices                                                                             |        50  |
| Chapter 10 - Intentionally Deleted                                                  |        51                                                                 |
|    39.                                                               | Intentionally      Deleted                                                          |        51  |
|    40.                                                               | Intentionally      Deleted                                                          |        51  |
|    41.                                                               | Intentionally      Deleted                                                          |        51  |
|    42.                                                               | Intentionally      Deleted                                                          |        51  |
| Chapter 11 - Compliance with the License/      Limitations on Ownership and Control |        51                                                                 |
|    43.                                                               | Compliance                                                                          |        51  |
|    44.                                                               | Limitations on      Ownership and Control                                           |        51  |

----

| 1. | Definitions and      Interpretation |
|----|-------------------------------------|

|   | 1.1. |      The following terms in these Articles of      Association bear the meaning appearing alongside them below: |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | Articles of      Association | The Articles of Association of the Company, as set forth herein or      as amended, whether explicitly or pursuant to any Law. |
|--------|------------------------------|--------------------------------------------------------------------------------------------------------------------------------|

|   | Business      Day | Sunday to Thursday, inclusive, with the exception of holidays and      official days of rest in the State of Israel. |
|--------|-------------------|----------------------------------------------------------------------------------------------------------------------|

|   | Companies      Law | The Companies Law, 1999. |
|--------|--------------------|--------------------------|

|   | Companies      Ordinance | The Companies Ordinance [New Version],1983. |
|--------|--------------------------|---------------------------------------------|

|   | Companies      Regulations | Regulations issued pursuant to the Companies Ordinance or Companies      Law. |
|--------|----------------------------|-------------------------------------------------------------------------------|

|   | Director | A Director of the Company in accordance with the definition in      Section 1 of the Companies Law, including an Alternate Director or an      empowered representative. |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Document | A printout and any other form of written or printed words,      including documents transmitted in writing, via facsimile, telegram,      telex, e–mail, on a computer or through any other electronic      instrumentation, producing or allowing the production of a copy and/or an      output of a document. |
|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Founding      Shareholder | A “founding shareholder or its substitute” as defined in Section      21.8 of the License. |
|--------|---------------------------|--------------------------------------------------------------------------------------------------------|

|   | Founding Israeli      Shareholder | A Founding      Shareholder who also qualifies as an “Israeli Entity” as defined for      purposes of Section 22A of the License. |
|--------|-----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | Financial      Statements | The balance sheet, profit and loss statement, statement of changes      in the share capital and cash flow statements, including the notes      attached to them. |
|--------|---------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Law | The provisions of any law (“din”) as defined in the Interpretation      Law, 1981. |
|--------|-----|------------------------------------------------------------------------------------------------|

|   | License | The Company’s General License for the Provision of Mobile Radio      Telephone Services using the Cellular Method in Israel dated April 7,      1998, and the permit issued by the Ministry of Communications dated April      7, 1998. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Linkage | Payments with respect to changes in the Israeli consumer price      index or the representative exchange rate of NIS vis-a-vis the U.S.      dollar, as published by the Bank of Israel, or any other rate which      replaces such rate. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Minimum Founding      Shareholders Holding | The minimum      shareholding in the Company required to be held by Founding Shareholders      pursuant to Section 22A.1 of the License. |
|--------|--------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | Minimum Israeli      Holding | The minimum      shareholding in the Company required to be held by Founding Israeli      Shareholders pursuant to Section 22A.2 of the License. |
|--------|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | NIS | New Israeli Shekel |
|--------|-----|--------------------|

|   | Office | The registered office of theCompany. |
|--------|--------|--------------------------------------|

|   | Ordinary      Majority | A simple majority of the shareholders who are entitled to vote and      who voted in a General Meeting in person, by means of a proxy or by means      of a deed of voting. |
|--------|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Periodic      Statement | According to its definition in Chapter B of the Securities      Regulations (Periodic and Immediate Reports), 1970, or such Securities      Regulations replacing them. |
|--------|-------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Qualified Israeli      Director | A director who at all times (i) is a citizen of Israel and resident      in Israel, (ii) qualifies to serve as a director under applicable law,      (iii) qualifies as a Director with Clearance as defined in section 25A,      and (iv) is appointed to the Board of Directors of the Company pursuant to      section 23.2.6 of these Articles. |
|--------|---------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Record      Date | The date on which a shareholder must be registered as a Shareholder      in order to receive the right to participate in and vote at an upcoming      general meeting of Shareholders. |
|--------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Securities | Shares, bonds, capital notes or securities negotiable into shares      and certificates, conferring a right in such securities, or other      securities issued by the Company. |
|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Securities      Law | The Securities Law, 1968. |
|--------|---------------------|---------------------------|

|   | Securities      Regulations | Regulations issued pursuant to the Securities  Law. |
|--------|-----------------------------|-----------------------------------------------------|

|   | Shares | shares in the share capital of theCompany. |
|--------|--------|--------------------------------------------|

|   | Shareholder | Anyone registered as a shareholder in the Shareholder Register of      the Company. |
|--------|-------------|-------------------------------------------------------------------------------------|

----

|   | Special      Majority | A majority of at least three quarters of the votes of shareholders      who are entitled to vote and who voted in a general meeting, in person, by      means of a proxy or by means of a deed of voting. |
|--------|-----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.2. | The provisions of Sections 3 through 10 of the Interpretation Law,      1981, shall also apply to the interpretation of these Articles of      Association, mutatis mutandis, unless the context otherwise requires. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.3. | Except as otherwise provided in this Article, each word and      expression in these Articles of Association shall have the meaning given      to it in accordance with the Companies Law, and to the extent that no      meaning is attached to it in the Companies Law, the meaning given to it in      the Companies Regulations, and if they lack reference thereto, as stated,      the meaning given to it in the Securities Law or Securities Regulations,      and in the absence of any meaning, as stated, the meaning given to it in      another Law, unless it contradicts the relevant provision or its contents. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Public      Company |
|----|---------------------|

|   | The Company is a public company. |
|--------|----------------------------------|

| 3. | The Purpose of the      Company |
|----|---------------------------------|

|   | The purpose of the Company is to operate in accordance with      business considerations to generate profits; provided, however, the Board      of Directors is entitled to donate reasonable amounts to worthy causes,      even if such a donation is not within the framework of business      considerations, as stated. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The Objectives of the      Company |
|----|------------------------------------|

|   | The Company shall engage in any legal business. |
|--------|-------------------------------------------------|

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

|   | The liability of the Shareholders of the Company is limited, each      one up to the full amount he undertook to pay for the Shares allotted to      him, at the time of the allotment. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6. | Share      Capital |
|----|--------------------|

|   | 6.1. | The authorized share capital of the Company is NIS 2,350,000,      divided into 235,000,000 ordinary shares at a par value of NIS 0.01 each      (hereinafter: the “Ordinary Shares”). |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6.2. | Each Ordinary Share shall confer upon its holder the right to      receive notices of, and to attend and vote in, general meetings, and to      one vote for each Ordinary Share held by him. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6.3. | Each class of Shares shall also confer equal rights to each holder      in the class with respect to the amounts of equity which were paid or      credited as paid with respect to their par value, in all matters      pertaining to dividends, the distribution of bonus shares and any other      distribution, return of capital and participation in the distribution of      the balance of the assets of the Company upon liquidation. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6.4. | The provisions of these Articles of Association with respect to      Shares, shall also apply to other Securities issued by the Company,      mutatis mutandis. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | The Issuance of Shares      and Other Securities |
|----|--------------------------------------------------|

|   | 7.1. | The Board of Directors of the Company may issue Shares and other      equity Securities of the Company, up to the limit of the registered share      capital of the Company. In the event that the share capital of the Company      includes several classes of Shares and other equity Securities, no shares      and other equity Securities shall be issued above the limit of the      registered share capital for its class. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.2. | The Board of Directors of the Company may issue redeemable      Securities, having such rights and subject to such conditions as will be      determined by the Board of Directors. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.3. | Subject to the provisions of these Articles of Association, the      Board of Directors may allot Shares and other Securities according to such      stipulations and conditions, at par value or by way of a premium, as it      deems fit. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.4. | The Board of Directors may decide on the issuance of a series of      bonds or other debt securities within the framework of its authority or to      take a loan on behalf of the Company and within the limits of the same      authority. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.5. | The Shareholders of the Company at any given time shall not have      any preemption right or priority or any other right whatsoever with      respect to the acquisition of Securities of the Company. The Board of      Directors, in its sole discretion, may decide to offer Securities of the      Company first to existing Shareholders or to any one or more of them. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.6. | The Company is entitled to pay a commission (including underwriting      fees) to any person, in consideration for underwriting services, or the      marketing or distribution of Securities of the Company, whether reserved      or unreserved, as determined by the Board of Directors. Payments, as      stated in this Article, may be paid in cash or in Securities of the      Company, or partly in one manner and partly in another manner. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8. | Calls of      Payment |
|----|-----------------------|

|   | 8.1. | In the event that according to the terms of a Share allotment,      there is no fixed date for the payment of any part of the price that is to      be paid for the Shares, the Board of Directors may issue from time to time      calls of payment to the Shareholders with respect to the moneys which were      not yet paid by them in relation to the Shares (hereinafter: “Calls of      Payment” or “a Call of Payment”, as the case may be). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.2. | A Call of Payment shall set a date, which will not be earlier than      thirty days from the date of the notice, by which the amount indicated in      the Call of Payment must be paid, together with interest, Linkage and      expenses incurred in consequence of the non–payment, according to the      rates and amounts set by the Board of Directors. The notice shall further      specify that in the event of a failure to pay within the date fixed, the      Shares in respect of which payment or the rate is required may be      forfeited. In the event that a Shareholder fails to meet any of its      obligations, under a Call of Payment, the Share in respect of which said      notice was issued pursuant to the resolution of the Board of Directors may      be forfeited at any time thereafter. The forfeiture of Shares shall      include the forfeiture of all the dividends on same Shares which were not      paid prior to the forfeiture, even if such dividends were declared. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.3. | Any amount, which according to the terms of a Share allotment, must      be paid at the time of issuance or at a fixed date, whether at the par      value of the Share or at a premium, shall be deemed for the purposes of      these Articles of Association to be combined in a duly issued Call of      Payment. In the event of non-payment of any such amount, all the      provisions of these Articles of Association shall apply with respect to      such an amount, as if a proper Call of Payment has been made and an      appropriate notice thereof was given. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.4. | The Board of Directors, acting reasonably and in good faith, may      differentiate among Shareholders with respect to amounts of Calls of      Payment and/or their payment time. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.5. | The joint holders of Shares shall be liable, jointly and severally,      for the payment of Calls of Payment in respect of such Shares. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.6. | Any payment for Shares shall be credited, pro rata, according to      the par value of and according to the premium on such Shares. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.7. | A Call of Payment may be cancelled or deferred to another date, as      may be decided by the Board of Directors. The Board of Directors may waive      any interest, Linkage and expenses or any part of them. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 8.8. | The Board of Directors may receive from a Shareholder any payments      for his Shares, in addition to the amount of any Call of Payment, and the      Board of Directors may pay to the same Shareholder interest on amounts      which were paid in advance, as stated above, or on same part of them, in      excess of the amount of the Call of Payment, or to make any other      arrangement with him which may compensate him for the advancement of the      payment. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.9. | A Shareholder shall not be entitled to a dividend or to his other      rights as a Shareholder, unless he has fully paid the amounts specified in      the Calls of Payment issued to him, together with interest, Linkage and      expenses, if any, unless otherwise determined by the Board of Directors. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.10. | The Board of Directors is entitled to sell, re-allot or transfer in      any other manner any Share which was forfeited, in the manner it decides,      with or without any amount paid on the Share or deemed as paid on it. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.11. | The Board of Directors is entitled at all times prior to the sale,      reallotment or transfer of the forfeited Share to cancel the forfeiture on      the conditions it may decide. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.12. | A person whose Shares have been forfeited shall, notwithstanding      the forfeiture, remain liable to pay to the Company all moneys which, up      until the date of forfeiture, were due and payable by him to the Company      in respect of the Shares, including interest, Linkage and expenses up      until the actual payment date in the same manner as if the Shares were not      forfeited, and shall be compelled to fulfill all the requirements and      claims which the Company was entitled to enforce with respect to the      Shares up until the forfeiture date, without any decrease or discount for      the value of the Shares at the time of forfeiture. His liability shall      cease only if and when the Company receives the full payment set at the      time of allotment of the Shares. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.13. | The Board of Directors may collect any Calls of Payment which were      not paid on the forfeited Shares or any part of them, as it deems fit, but      it is not obligated to do so. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.14. | The forfeiture of a Share shall cause, as of the time of      forfeiture, the cancellation of all rights in the Company and of any claim      or demand against the Company with respect to that Share, and of other      rights and obligations of the Shareholder in respect of the Company, save      as otherwise provided by Law. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | The Shareholder      Registers of the Company and the Issuance of Share      Certificates |
|----|-------------------------------------------------------------------------------------------|

|   | 9.1. | The Company shall maintain a Shareholder Register and a Register of      Significant Shareholders, together with a notation of any Exceptional      Holdings in accordance with the provisions set forth in Article 10A below,      to be administered by the corporate secretary of the Company, subject to      the oversight of the Board of Directors. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 9.2. | A Shareholder is entitled to receive from the Company, free of      charge, within two months after an allotment or the registration of a      transfer (unless the conditions of the allotment fix a different period)      one or several certificates with respect to all the Shares of a certain      class registered in his favor, which certificate must specify the number      of the Shares, the class of the Shares and the amount paid for them and      also any other detail deemed important by the Board of Directors. In the      event a Share is held jointly, the Company shall not be obligated to issue      more than one certificate for all the joint holders, and the delivery of      such a certificate to any of the joint holders shall be viewed as if it      was delivered to all of them. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.3. | Each and every Share certificate shall be stamped with the seal or      the stamp of the Company or bear the Company’s printed name, and shall      also bear the signature of one Director and of the corporate secretary of      the Company, or of two Directors or of any other person appointed by the      Board of Directors for this purpose. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.4. | The Company is entitled to issue a new Share certificate in place      of an issued Share certificate which was lost or spoiled or corrupted,      following evidence thereto and guarantees and indemnities, as may be      required by the Company and the payment of an amount determined by the      Board of Directors. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.5. | Where two people or more are registered as joint holders of Shares,      each of them is entitled to acknowledge the receipt of a dividend or other      payments in connection with such jointly held Shares, and such      acknowledgement of any one of them shall be good discharge of the      Company’s obligation to pay such dividend or other payments. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | Transfer of      Shares |
|-----|-------------------------|

|   | 10.1. | The Shares are transferable. The transfer of Shares shall not be      registered unless the Company receives a deed of transfer (hereinafter:      “Deed of Transfer”) or other proper Document or instrument of transfer. A      Deed of Transfer shall be drawn up in the following manner or in any      substantially similar manner or in any other manner approved by the Board      of Directors. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Deed of Transfer |
|------------------|

|   | I, _________________, (hereinafter: “The Transferor”) of      ____________, do hereby transfer to ___________ (hereinafter: “The      Transferee”) of __________, for valuable consideration paid to me,      _________ Share(s) having a par value of NIS 0.01 each, numbered ________      to ________ (inclusive), of Partner Communications Company Ltd.      (hereinafter: the “Company”) to hold unto the Transferee, his executors,      administrators and assigns, subject to the same terms and conditions on      which I held the same at the time of the execution hereof; and I, the said      Transferee, do hereby agree to take the said Share(s) subject to the      aforesaid terms and conditions. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In witness whereof we have hereunto set our hands this _____ day of      _________, _____. |
|--------|--------------------------------------------------------------------------------------------|

----

|  | The Transferor                    | The Transferee             |
|--|-----------------------------------|----------------------------|
|  | Name:      _______________        | Name:      _______________ |
|  | Signature: ____________           | Signature: ____________    |
|  |                              |
|  | Witness      to the Signature of: |
|  | The      Transferor               | The      Transferee        |
|  | Name:      _______________        | Name:      _______________ |
|  | Signature: ____________           | Signature: ____________    |

|   | 10.2. | The transfer of Shares which are not fully paid, or Shares on which      the Company has a lien or pledge, shall have no validity unless approved      by the Board of Directors, which may, in its absolute discretion and      without giving any reasoning thereto, decline the registration of such a      transfer. The Board of Directors may deny a transfer of Shares as      aforesaid and may also impose a condition of the transfer of Shares as      aforesaid an undertaking by the transferee to meet the obligations of the      transferor with respect to the Shares or the obligations for which the      Company has a lien or pledge on the Shares, signed by the transferee      together with the signature of a witness, authenticating the signature of      the transferee. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.3. | The transfer of a fraction of a Share shall lack validity. |
|--------|-------|------------------------------------------------------------|

|   | 10.4. | A transferor of Shares shall continue to be regarded as the holder      of the transferred Shares, until the name of the transferee of the Shares      is registered in the Shareholder Register of the Company. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.5. | A Deed of Transfer shall be filed with the Company’s office for      registration, together with the Share Certificates for the Shares which      are to be transferred (if such are issued) and also any other evidence      which the Company may require with respect to the proprietary right of the      transferor or with respect to his right to transfer the Shares. Deeds of      Transfer which are registered shall remain with the Company. The Company      is not obligated to retain the Deeds of Transfer and the Share      Certificates, which may be cancelled, after the completion of a seven-year      period from the registration of the transfer. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.6. | A joint Shareholder may transfer his right in a Share. In the event      the transferring Shareholder does not hold the relevant Share Certificate,      the transferor shall not be obligated to attach the Share Certificate to      the Deed of Transfer, so long as the Deed of Transfer shall indicate that      the transferor does not hold the Share Certificate, that the right he has      in the Shares therein is being transferred, and that the transferred Share      is held jointly with others, together with their details. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7. | The Company may require payment of a fee for the registration of      the transfer, at an amount or a rate determined by the Board of Directors      from time to time. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.8. | The Board of Directors may close the Shareholder Register for a      period of up to thirty days in each year. |
|--------|-------|----------------------------------------------------------------------------------------------------------------|

----

|   | 10.9. | Subject to Article 10.10, upon the death of a Shareholder, the      Company shall recognize the custodians or administrators of the estate or      executors of the will, and in the absence of such, the lawful heirs of the      Shareholder, as the only holders of the right for the Shares of the      deceased Shareholder, after receipt of evidence to the entitlement      thereto, as determined by the Board of Directors. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.10. | In the event that a deceased Shareholder held Shares jointly with      others, the Company shall acknowledge each survivor as a joint Shareholder      with respect to said Shares, unless all the joint holders in the Share      notify the Company in writing, prior to the death of any of them, of their      will that the provisions of this Article shall not apply to them. The      foregoing shall not release the estate of a joint Shareholder of any      obligation in relation to a Share which is held jointly. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.11. | A person acquiring a right in Shares in consequence of being a      custodian, administrator of the estate, the heir of a Shareholder, a      receiver, liquidator or a trustee in a bankruptcy of a Shareholder or      according to another provision of the Law, is entitled, after providing      evidence to his right, to the satisfaction of the Board of Directors, to      be registered as the Shareholder or to transfer such Shares to another      person, subject to the provisions of these Articles of Association with      respect to transfers. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.12. | A person becoming entitled to a Share because of the death of a      Shareholder shall be entitled to receive, and to give receipts for,      dividends or other payments paid or distributions made, with respect to      the Share, but shall not be entitled to receive notices with respect to      General Meetings of the Company or to participate or vote therein with      respect to that Share, or to exercise any other right of a Shareholder,      until he has been registered in the Shareholder Register as the holder of      that Share. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.13. | Notwithstanding anything to the contrary in Articles 10.5 and 10.7,      the transfer of Shares as a result of a realization of a share pledge      entered into by a Shareholder of the Company in connection with the      Company’s $650 million credit facility dated August 13, 1998, as amended      from time to time, will not require additional evidence with respect to      the proprietary right of the transferor or with respect to his right to      transfer the shares other than a properly completed deed of transfer and      valid Share Certificate (if issued), nor will the Company require a fee      for the registration of said transfer. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10A. | Limitations on      Transfer of Shares |
|------|----------------------------------------|

|   | 10A.1. | Exceptional Holdings shall be registered in the Register of Members      (Shareholder Register) together with a notation that such holdings have      been classified as “Exceptional Holdings”, immediately upon the Company’s      learning of such matter. Notice of such registration shall be sent by the      Company to the registered holder of the Exceptional Holding and to the      Minister of Communications. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 10A.2. | Exceptional Holdings, registered in the manner set forth in Article      10A.1, shall not entitle the holder to any rights in respect to his      holdings, and such holdings shall be considered “Dormant Shares” within      the meaning of Section 308 of the Companies Law, except, however, that the      holder of such shares shall be entitled to receive dividends and other      distributions to shareholders (including the right to participate in a      rights offering calculated on the basis of Means of Control of the Company      (as defined in the License), provided, however, that such additional      holdings shall be considered Exceptional Holdings). Therefore, any action      taken or claim made on the basis of a right deriving from an Exceptional      Holdings shall have no effect, except for the receipt of dividends or      other distribution as stated above. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Without derogating from the above: |
|--------|------------------------------------|

|   | 10A2.1 | A Shareholder participating in a vote of the General Meeting will      certify to the Company prior to the vote or, if the vote is by Deed of      Vote, on the Deed of Vote, as to whether or not his holdings in the      Company or his vote require consent pursuant to Sections 21 and 23 to the      License; in the event the shareholder does not provide notification as      aforesaid, he shall not vote and his vote shall not be counted. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10A.2.2 | No Director shall be appointed, elected or removed on the basis of      Exceptional Holdings. In the event a Director is appointed, elected or      removed from his position as a Director as set forth above, such      appointment, election or removal shall have no effect. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10A.2.3 | Exceptional Holdings shall have no voting rights at a General      Meeting of the Company. |
|--------|---------|--------------------------------------------------------------------------------------------|

|   | For the purposes of this Article 10A, “Exceptional Holdings”      means the holdings of Traded Means of Control held without the consent of      the Minister of Communications pursuant to Section 21 to the License or as      a result of a breach of the provisions of Section 23 to the License, and      all holdings of a holder of Traded Means of Control who acted contrary to      the provisions of Section 24 to the License; and as long as the consent of      the Minister of Communications is required but has not been obtained      pursuant to Section 21 to the License, or the circumstances exist which      constitute a violation of the provisions of Sections 23 or 24 to the      License. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For the purposes of this Article 10A, “Traded Means of Control”      means Means of Control (as defined in the License) including Global or      American Depositary Shares (GDRs or ADRs) or similar certificates,      registered for trade on a securities exchange in Israel or abroad or which      have been offered to the public in connection with a prospectus, and are      held by the public in Israel or abroad. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10A.3. | The provisions of Article 10A shall not apply to those who were      Shareholders of the Company on the eve of the first registration of the      Company’s Shares for trade. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10B. | Required Minimum      Holdings |
|------|--------------------------------|

|   | 10B.1. | Our License requires that Founding Shareholders hold Shares      constituting at least the Minimum Founding Shareholders Holding and that      Founding Israeli Shareholders hold Shares constituting at least the      Minimum Israeli Holding. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10B.2. | Shares held by Founding Shareholders, to the extent such Shares      constitute all or a portion of the Minimum Founding Shareholders Holding,      shall be registered directly in the name of the Founding Shareholder in      the shareholder register of the Company, with a note indicating that such      Shares are “Minimum Founding Shareholders Shares.” Minimum Founding      Shareholders Shares that are held by Founding Israeli Shareholders, to the      extent such Shares constitute all or a portion of the Minimum Israeli      Holding, shall also be recorded in the shareholder register with a note      indicating that such Shares are “Minimum Israeli Holding Shares. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10B.3. | No transfer by a Founding Shareholder of Minimum Founding      Shareholder Shares or by a Founding Israeli Shareholder of Minimum Israeli      Holding Shares shall be recorded in the Company’s shareholder register, or      have any effect, unless the Company’s Secretary shall have received      written confirmation from the Ministry of Communications that the transfer      complies with section 21.8 of the License. The Company Secretary may, in      his or her discretion, refer any question in connection with the recording      of Minimum Founding Shareholders Shares or Minimum Israeli Holding Shares,      or their transfer, to the Company’s audit committee whose decision shall      be binding on the Company. As a condition to any transfer of Minimum      Founding Shareholders Shares or Minimum Israeli Holding Shares, the      transferee shall be required to deliver to the Company’s Secretary (a) a      share transfer deed that includes an undertaking by the transferee to      comply with all requirements of section 22A of the License and (b) all      information requested with respect to the transferee’s qualification as a      Founding Shareholder and/or a Founding Israeli Shareholder. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | Bearer Share      Certificate |
|-----|-------------------------------|

|   | The Company shall not issue bearer Share Certificates which grant      the bearer rights in the Shares specified therein. |
|--------|---------------------------------------------------------------------------------------------------------------------------|

| 12. | Pledge of      Shares |
|-----|-----------------------|

|   | 12.1. | The Company shall have a first degree pledge on, and a right to      create a lien on, all Shares which are not fully paid and registered in      the name of any Shareholder, and the proceeds of their sale, with respect      to moneys (which payment time is due or not) whose payment was already      called or are to be paid up within a fixed time. Furthermore, the Company      shall have a first degree pledge right on all the Shares (other than      Shares which were fully paid) registered in the name of any Shareholder to      secure the payment of moneys which are due from him or from his property,      whether with respect to his own debts or debts jointly with others. The      said pledge shall also apply to dividends, declared from time to time,      with respect to these Shares. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 12.2. | For purposes of the realization of any such pledge and or lien, the      Board of Directors is entitled to sell the Shares which are the subject of      the pledge or lien, or any part of them, as it deems fit. No sale, as      aforesaid, shall be carried out, until the date fixed for the payment has      passed and a notice in writing was transferred to same Shareholder with      respect to the intention of the Company to sell them, on condition that      the amounts were not paid within fourteen days after the notice. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.3. | The proceeds of any such sale, after deduction for the payment of      the sale expenses, shall serve for the covering of the debts or      obligations of said Shareholder, and the balance (if any) shall be paid to      him. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.4. | In the event that a sale of Shares was carried out pursuant to the      realization of a pledge or a lien, pursuant to the presumptive authority      conferred above, the Board of Directors is entitled to register such      Shares in the Shareholder Register in favor of the buyer, and the buyer      shall not be under the obligation to examine the fitness of such actions      or the manner in which the purchase price paid for such Shares was used.      After the said Shares are registered in the Shareholder Register in favor      of the buyer, no person shall have the right to object to the validity of      the sale. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13. | Changes in the Share      Capital |
|-----|-----------------------------------|

|   | The General Meeting is entitled to take any of the following      actions at all times, so long as the resolution of the General Meeting is      adopted by a Special Majority. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.1. | Increasing the Share Capital |
|--------|-------|------------------------------|

|   | To increase the share capital of the Company, regardless of whether      all the Shares registered at such a time were issued or not. The increased      share capital shall be divided into Shares having ordinary rights or      preference rights or deferred rights or other special rights (subject to      the special rights of an existing class of Shares) or subject to      conditions and restrictions with respect to entitlement to dividend,      return of capital, voting or other conditions, as may be instructed by the      General Meeting in a resolution with respect to the increase of the share      capital, and in the absence of a special provision, according to the terms      determined by the Board of Directors. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.2. | Classes of Shares |
|--------|-------|-------------------|

|   | To divide the share capital of the Company into various classes of      Shares, and to set and change the rights attaching to each class of      Shares, according to the conditions specified below: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.2.1. | So long as it was not otherwise set in the Share allotment      conditions, the rights of any class may be changed pursuant to a      resolution of the General Meeting of the Shareholders of each class of      Shares, separately, or upon the written consent of all the Shareholders of      all classes. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 13.2.2. | The rights conferred on the holders of Shares of a certain class      shall not be deemed to have been changed as a result of the creation or      allotment of other Shares having identical rights, unless it was otherwise      stipulated in the allotment conditions of said Shares. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.3. | Amalgamation and Redivision of the Share Capital |
|--------|-------|--------------------------------------------------|

|   | To amalgamate and redivide the share capital of the Company,      entirely or partially, into Shares having a higher or lesser par value      than that stated in these Articles of Association. In the event that in      consequence of such amalgamation, there are Shareholders left with      fractions of Shares, the Board of Directors if approved by the      Shareholders at a General Meeting in adopting the resolution for      amalgamation of the capital, may agree as follows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.3.1. | To sell the total of all the fractional shares and to appoint a      trustee for this purpose, in whose name Share Certificates representing      the fractions shall be issued, who will sell them, with the proceeds      received after the deduction of commissions and expenses to be distributed      to those entitled. The Board of Directors shall be entitled to decide that      Shareholders who are entitled to proceeds which are below an amount      determined by it, shall not receive the proceeds of the sale of the      fractional shares, and their share in the proceeds shall be distributed      among the Shareholders who are entitled to proceeds, in an amount greater      than the amount that was determined, relative to the proceeds to which      they are entitled; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.3.2. | To allot to any Shareholder, who is left with a fractional Share      following the amalgamation, Shares of the class of Shares prior to the      amalgamation, which are fully paid, in such a number, the amalgamation of      which together with the fractional Share shall complete a whole Share, and      an allotment as stated shall be viewed as valid shortly before the      amalgamation; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.3.3. | To determine that Shareholders shall not be entitled to receive a      Share in exchange for a fractional Share resulting from the amalgamation      of a half or smaller fraction of the number of Shares, whose amalgamation      creates a single Share, and they shall be entitled to receive a whole      Share in exchange for a fractional Share, resulting from the amalgamation      of more than a half of the number of Shares, whose amalgamation creates a      whole Share. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | In the event that an action pursuant to Articles 13.3.2 or 13.3.3      above requires the allotment of additional Shares, their payment shall be      effected in a manner similar to that applicable the payment of Bonus      Shares. An amalgamation and redivision, as aforesaid, shall not be      regarded as a change in the rights attaching to the Shares which are the      subject of the amalgamation and redivision. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.4. | Cancellation of Unissued Share Capital |
|--------|-------|----------------------------------------|

|   | To cancel registered share capital which has not yet been allotted,      so long as the Company is not under an obligation to allot these Shares. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.5. | The Division of the Share Capital |
|--------|-------|-----------------------------------|

|   | To divide the share capital of the Company, entirely or partially,      into Shares having a lower par value than those stated in these Articles      of Association, by way of dividing the Shares of the Company at such a      time, entirely or partially. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.6. | The provisions specified in this Article 13 shall also apply to      other equity Securities of the Company, mutatis mutandis. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------|

| 14. | The Authority of the      General Meeting |
|-----|-------------------------------------------|

|   | 14.1. | Subjects within the authority of the General Meeting |
|--------|-------|------------------------------------------------------|

|   | The following matters shall require the approval of the General      Meeting: |
|--------|-------------------------------------------------------------------------------|

|   | 14.1.1. | Changes in the Articles of Association, if adopted by a Special      Majority. |
|--------|---------|--------------------------------------------------------------------------------|

|   | 14.1.2. | The exercise of the authority of the Board of Directors, if      resolved by a Special Majority that the Board of Directors is incapable of      exercising its authority, and that the exercise of any of its authority is      essential to the orderly management of the Company. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 14.1.3. | The appointment or reappointment of the Company’s auditor, the      termination or non-renewal of his service, and to the extent required by      Law and not delegated to the Board of Directors, the determination of his      fee. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 14.1.4. | The appointment of Directors, including external Directors. |
|--------|---------|-------------------------------------------------------------|

|   | 14.1.5. | To the extent required by the provisions of Section 255 of the      Companies Law, the approval of actions and transactions with interested      parties and also the approval of an action or a transaction of an officer      which might constitute a breach of the duty of loyalty. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 14.1.6. | Changes in the share capital of the Company, if adopted by a      Special Majority as set forth in Article 13 above. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------|

|   | 14.1.7. | A merger of the Company, as defined in the Companies Law. |
|--------|---------|-----------------------------------------------------------|

|   | 14.1.8. | Changes in the objectives of the Company as set forth in Article 4      above, if adopted by a Special Majority. |
|--------|---------|------------------------------------------------------------------------------------------------------------------|

|   | 14.1.9. | Changes in the name of the Company, if adopted by a Special      Majority. |
|--------|---------|----------------------------------------------------------------------------|

|   | 14.1.10. | Liquidation, if adopted by a Special Majority. |
|--------|----------|------------------------------------------------|

|   | 14.1.11. | Settlements or Arrangements pursuant to Section 233 of the      Companies Ordinance. |
|--------|----------|--------------------------------------------------------------------------------------|

|   | 14.1.12. | Any other matters which applicable Law requires to be dealt with at      General Meetings of the Company. |
|--------|----------|-----------------------------------------------------------------------------------------------------------|

|   | 14.2. | The authority of the General Meeting to transfer authorities      between corporate organs. |
|--------|-------|---------------------------------------------------------------------------------------------|

|   | The General Meeting, by a Special Majority, may assume the      authority which is given to another corporate organ, and may transfer the      authority which is given to the General Manager to the Board of Directors. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The taking or transferring of authorities, as aforesaid, shall be      with regard to a specific issue or for a specific period of time, all as      stated in the resolution of the General Meeting. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15. | Kinds of General      Meetings |
|-----|--------------------------------|

|   | 15.1. | Annual Meetings |
|--------|-------|-----------------|

|   | A General Meeting shall be convened at least once a year, within      fifteen months of the last general meeting. The meeting shall be held at      the registered offices of the Company, unless otherwise determined by the      Board of Directors. These General Meetings shall be referred to as “Annual      Meetings”. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 15.1.1. | An Annual Meeting shall be convened to discuss the following: |
|--------|---------|---------------------------------------------------------------|

|   | (One) | The Financial Statements and the Report of the Board of Directors,      as of December 31st of the calendar year preceding the year of the annual      meeting. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (Two) | The Report of the Board of Directors with respect to the fee paid      to the Company’s auditor. |
|--------|-------|--------------------------------------------------------------------------------------------------------|

|   | 15.1.2. | The Annual Meeting shall be convened to adopt resolutions on the      following matters: |
|--------|---------|------------------------------------------------------------------------------------------|

|   | (One) | The appointment of Directors and the termination of their office in      accordance with Article 23 below. |
|--------|-------|------------------------------------------------------------------------------------------------------------|

|   | (Two) | The appointment of an auditor or the renewal of his office, subject      to the provisions of Article 29 below. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------|

|   | 15.1.3. | The Annual Meeting may discuss, and      decide upon, any matter on the agenda of such meeting. |
|--------|---------|-------------------------------------------------------------------------------------------------|

|   | 15.2. | Extraordinary Meetings |
|--------|-------|------------------------|

|   | General Meetings of the Shareholders of the Company which are not      convened in accordance with the provisions of Article 15.1 above, shall be      referred to as “Extraordinary Meetings”. An Extraordinary Meeting shall      discuss, and decide upon, any matter (other      than those referred to in Article      15.1.1 or 15.1.2),   for which the Extraordinary Meeting was      convened. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 15.3. | Class Meetings |
|--------|-------|----------------|

|   | The provisions of these Articles of Association with respect to      General Meetings shall apply, mutatis mutandis, to meetings of a class of      Shareholders of the Company. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16. | The Holding of General      Meetings |
|-----|--------------------------------------|

|   | 16.1. | The Convening of the Annual Meeting |
|--------|-------|-------------------------------------|

|   | The Board of Directors shall convene Annual Meetings in accordance      with the provisions of Article 15.1 above. |
|--------|--------------------------------------------------------------------------------------------------------------------|

|   | 16.2. | The Convening of an Extraordinary Meeting |
|--------|-------|-------------------------------------------|

|   | The Board of Directors may convene an Extraordinary Meeting, as it      decides, provided, however, that it shall be obligated to convene an      Extraordinary Meeting upon the demand of one of the following: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 16.2.1. | Any two Directors or a quarter of the Directors, whichever is      lower; or |
|--------|---------|------------------------------------------------------------------------------|

|   | 16.2.2. | any one or more Shareholders, holding alone or together at least      4.99% of the issued share capital of the Company. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

----

|   | 16.3. | Date of Convening an Extraordinary Meeting Upon Demand |
|--------|-------|--------------------------------------------------------|

|   | The Board of Directors, which is required to convene a general      meeting in accordance with Article 16.2 above shall announce the convening      of the General Meeting within twenty-one (21) days from the receipt of a      demand in that respect, and the date fixed for the meeting shall not be      more than thirty-five (35) days from the publication date of the      announcement of the General Meeting. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In the event that the Board of Directors shall not have convened an      Extraordinary Meeting, as required in this Article, those demanding its      convening or half of the Shareholders which demand it subject to Article      16.2.2, are entitled to convene the meeting themselves, so long as it is      convened within three months from the date on which the demand was filed,      and it shall be convened, inasmuch as possible, in the same manner by      which meetings are convened by the Board of Directors. In the event that a      General Meeting is convened as aforesaid, the Company shall bear the      reasonable costs and expenses incurred by those demanding it. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 16.4. | Notice of Convening a General Meeting |
|--------|-------|---------------------------------------|

|   | Notice of a General Meeting shall be sent to each registered      Shareholder of the Company as of the Record Date set by the Board of      Directors for that meeting, within five (5) days after that Record Date,      unless a different notice time is required by Law and cannot be altered or      waived in the Company’s Articles of Association. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A General Meeting may be convened following a shorter notice      period, if the written consent of all the Shareholders who are entitled at      such time to receive notices has been obtained. A waiver by a Shareholder      can also be made in writing after the fact and even after the convening of      the General Meeting. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 16.5. | Contents of the Notice |
|--------|-------|------------------------|

|   | Subject to the provisions of any Law, a notice with respect to a      general meeting shall specify the agenda of the meeting, the location, the      proposed resolutions and also the arrangements for voting by means of a      deed of voting or a deed of authorization, and the requirements of Article      10A.2.1. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Any notice to be sent to the Shareholders shall also include a      draft of the proposed resolutions or a concise description of their      particulars. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17. | The Agenda of General      Meetings |
|-----|-------------------------------------|

|   | 17.1. | The agenda of the General Meeting shall be determined by the Board      of Directors and shall also include issues for which an Extraordinary      Meeting is being convened in accordance with Article 15.2 above, or      demanded in accordance with Article 17.2 below. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 17.2. | One or more Shareholders holding alone or in the aggregate, 4.99%      or more of the share capital of the Company may request that the Board of      Directors include an issue on the agenda of a general meeting to be      convened in the future. The Board of Directors shall incorporate such      issue on the agenda of such a future general meeting, provided that the      Board of Directors determines, in its discretion, such issue is suitable      to be discussed in the General Meeting of the Company. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.3. | The General Meeting shall only adopt resolutions on issues which      are on its agenda. |
|--------|-------|------------------------------------------------------------------------------------------|

|   | 17.4. | So long as it is not otherwise prescribed by Law, the General      Meeting is entitled to accept or reject a proposed resolution which is on      the agenda of the General Meeting, the draft or concise description of the      particulars of which were published by the Company, including slight      alterations, however, it is not entitled to take a resolution, which is      materially different than the proposed resolution. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18. | Discussions in General      Meetings |
|-----|--------------------------------------|

|   | 18.1. | Quorum |
|--------|-------|--------|

|   | No discussion shall be held in the General Meeting unless a lawful      quorum is present. Subject to the requirements of the applicable Law in      force at the time these Articles of Association come into force, the rules      of the Nasdaq National Market, the London Stock Exchange and any other      exchange on which the Company’s securities are or may become quoted or      listed, and the provisions of these Articles, any two Shareholders,      present by themselves or by means of a proxy, or who have delivered to the      Company a Deed of Voting indicating their manner of voting, and who hold      or represent at least one-third of the voting rights in the Company shall      constitute a lawful quorum. A Shareholder or his proxy, who may also serve      as a proxy for other Shareholders, shall be regarded as two Shareholders      or more, in accordance with the number of Shareholders he is representing. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 18.2. | Deferral of the General Meeting in the Absence of Lawful Quorum |
|--------|-------|-----------------------------------------------------------------|

|   | In the event that a legal quorum is not present after the lapsing      of 30 minutes from the time specified in the convening notice for the      commencement of the meeting, the meeting may be adjourned to the same day      of the following week (or the first business day thereafter) at the same      time and venue, or to another time and venue, as determined by the Board      of Directors in a notice to the Shareholders, and the adjourned meeting      shall discuss the same issues for which the original meeting was convened.      If at the adjourned meeting, a legal quorum is not present at the time      specified for the commencement of the meeting, then and in such event one      or more Shareholders holding or representing in the aggregate at least 10%      of the voting rights in the Company shall be deemed to form a proper      quorum, subject to the provisions of Section 79 of the Companies Law. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 18.3. | The Chairman of the General Meeting |
|--------|-------|-------------------------------------|

|   | The chairman of the Board of Directors (if appointed) shall preside      at each General Meeting. In the absence of the chairman, or if he fails to      appear at the meeting within 15 minutes after the time fixed for the      meeting, the Shareholders present at the meeting shall choose any one of      the Directors of the Company as the chairman, and if there is no Director      present at the meeting, one of the Shareholders shall be chosen to preside      over the meeting. The chairman shall not have an additional vote or      casting vote. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 18.4. | Adjourned Meeting |
|--------|-------|-------------------|

|   | Upon adoption of a resolution at a General Meeting at which a      lawful quorum is present, the chairman may and upon demand of the General      Meeting shall adjourn the General Meeting from time to time and from venue      to venue, as the meeting may decide (for the purpose of this Article: an      “Adjourned Meeting”). In the event that a meeting is adjourned for      fourteen days or more, a notice of the Adjourned Meeting shall be given in      the same manner as the notice of the original meeting. With the exception      of the aforesaid, a Shareholder shall not be entitled to receive notice of      an Adjourned Meeting or of the issues which are to be discussed in the      Adjourned Meeting. The Adjourned Meeting shall only discuss issues that      could have been discussed at the General Meeting which was adjourned. The      provisions of Articles 17.1, 17.2 and 17.3 of the Articles of Association      shall apply to an Adjourned Meeting. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19. | Voting of the      Shareholders |
|-----|---------------------------------|

|   | 19.1. | Resolutions |
|--------|-------|-------------|

|   | In any General Meeting, a proposed resolution shall be adopted if      it receives an Ordinary Majority, or any other majority of votes set by      Law or in accordance with these Articles of Association. For the avoidance      of doubt, any proposed resolution requiring a Special Majority under the      Companies Ordinance shall continue to require the same Special Majority      even after the effective date of the Companies Law. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In the event of a tie vote, the resolution shall be deemed      rejected. |
|--------|---------------------------------------------------------------------------|

|   | 19.2. | Checking Majority |
|--------|-------|-------------------|

|   | 19.2.1. | The checking of the majority shall be carried out by means of a      count of votes, at which each Shareholder shall be entitled to vote in      each case in accordance with rights fixed for such Shares, subject to      Articles 10A above and Article 44 below. A Shareholder shall be entitled      to a single vote for each share he holds which is fully paid or that Calls      of Payment in respect of which was fully paid. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 19.2.2. | The announcement of the chairman that a resolution in the General      Meeting was adopted or rejected, whether unanimously or with a specific      majority, shall be regarded as prima facie evidence thereof. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.3. | Written Resolutions |
|--------|-------|---------------------|

|   | Subject to the provisions of applicable Law, a written resolution      signed by all of the Shareholders of the Company holding Shares which      entitle their holders to participate in General Meetings of the Company      and vote therein, or of the same class of Shares to which the resolution      refers, as the case may be, shall be regarded as a valid resolution for      all purposes, and as a resolution adopted at a General Meeting of the      Company or at a class meeting of the relevant class of Shares, as the case      may be, which was properly summoned and convened, for the purpose of      adopting such a resolution. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Such a resolution could be stated in several copies of the same      document, each of them signed by one Shareholder or by several      Shareholders. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.4. | Record Date For Participation and Voting |
|--------|-------|------------------------------------------|

|   | The Record Date shall be set by the Board of Directors, or by a      person or persons authorized by the Board of Directors, in accordance with      applicable Law. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.5. | A Right to Participate and Vote |
|--------|-------|---------------------------------|

|   | A Shareholder shall not be entitled to participate and vote in any      General Meeting or to be counted among those present, so long as (i) he      owes the Company a payment which was called for the Shares held by him,      unless the allotment conditions of the Shares provide otherwise, and/or      (ii) his holdings are registered in the Shareholder Register together with      a notation that such holdings have been classified as Exceptional      Holdings, as defined in Article 10A or Affected Shares, as defined in      Article 44. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.6. | Personal Interest in Resolutions |
|--------|-------|----------------------------------|

|   | A Shareholder seeking to vote with respect to a resolution which      requires that the majority for its adoption include at least a third of      the votes of all those not having a personal interest (as defined in the      Companies Law) in the resolution shall notify the registered office of the      Company at least two business days prior to the date of the General      Meeting, whether he has a personal interest in the resolution or not, as a      condition for his right to vote and be counted with respect to such      resolution. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A Shareholder voting on a resolution, as aforesaid, by means of a      Deed of Vote, may include his notice with regard to his personal interest      on the Deed of Vote. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 19.7. | The Disqualification of Deeds of Vote |
|--------|-------|---------------------------------------|

|   | Subject to the provisions of applicable Law, the corporate      secretary of the Company may, in his discretion, disqualify Deeds of Vote      and Deeds of Authorization and so notify the Shareholder who submitted a      Deed of Vote or Deeds of Authorization in the following cases: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.7.1. | If there is a reasonable suspicion that they are forged; |
|--------|---------|----------------------------------------------------------|

|   | 19.7.2. | If there is a reasonable suspicion that they are falsified, or      given with respect to Shares for which one or more Deeds of Vote or deeds      of authorization have been given and not withdrawn; or |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.7.3. | If there is no note on the Deed of Vote or Deed of Authorization as      to whether or not his holding in the Company or his vote require the      consent of the Minister of Communications pursuant to Sections 21 and 23      to the License. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.7.4. | With respect to Deeds of Vote: |
|--------|---------|--------------------------------|

|   | (One) | If more than one choice is marked for the same resolution; or |
|--------|-------|---------------------------------------------------------------|

|   | (Two) | With respect to resolutions which require that the majority for      their adoption includes a third of the votes of those not having a      personal interest in the approval of the resolution, where it was not      marked whether the relevant Shareholder has a personal interest or not, as      aforesaid. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Any Shareholder shall be entitled to appeal on any such      disqualification to the Board of Directors at least one business day prior      to the relevant General Meeting. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.8. | The Voting of a Person without Legal Capacity |
|--------|-------|-----------------------------------------------|

|   | A person without legal capacity is entitled to vote only by means      of a trustee or a legal custodian. |
|--------|-----------------------------------------------------------------------------------------------------------|

|   | 19.9. | The Voting of Joint Holders of a Share |
|--------|-------|----------------------------------------|

|   | Where two or more Shareholders are registered joint holders of a      Share, only the first named joint holder shall vote, without taking into      account the other registered joint holders of the Share. For this purpose,      the first named joint holder shall be the person whose name is registered      first in the Shareholder Register. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.10. | Minutes of the General Meeting |
|--------|--------|--------------------------------|

|   | The chairman of the General Meeting shall cause that the minutes of      each General Meeting shall be properly maintained and shall include the      following: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 19.10.1. | The name of each Shareholder present in person, by Deed of Vote or      by proxy and the number of Shares held or represented by him; |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.10.2. | The principal issues of the discussion, all the resolutions which      were adopted or rejected at the General Meeting, and if adopted –      according to what majority. |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20. | The Appointment of a      Proxy |
|-----|---------------------------------|

|   | 20.1. | Voting by Means of a Proxy |
|--------|-------|----------------------------|

|   | A Shareholder registered in the Shareholder Register is entitled to      appoint by deed of authorization a proxy to participate and vote in his      stead, whether at a certain General Meeting or generally at General      Meetings of the Company, whether personally or by means of a Deed of Vote,      so long as the deed of authorization with respect to the appointment of      the proxy was delivered to the Company at least two Business Days prior to      the date of the General Meeting. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In the event that the deed of authorization is not limited to a      certain General Meeting, then the deed of authorization, which was      deposited prior to a certain General Meeting, shall also be good for other      General Meetings thereafter. This Article 20 shall also apply to a      Shareholder which is a corporation, appointing a person to participate and      vote in a General Meeting in its stead. A proxy is not required to be a      Shareholder of the Company. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 20.2. | The Draft of the Deed of Authorization |
|--------|-------|----------------------------------------|

|   | The deed of authorization shall be signed by the Shareholder and      shall be in or substantially in the form specified below or any such other      form acceptable to the Board of Directors of the Company. The corporate      secretary, in his discretion, may accept a deed of authorization differing      from that set forth below provided the changes are immaterial. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The corporate secretary shall only accept either an original deed      of authorization, or a copy of the deed of authorization which is      certified by a lawyer having an Israeli license or a notary. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Date: ________ |
|--------|----------------|

| To: | Partner Communications Company Ltd. |
|-----|-------------------------------------|

| Attn.: | Corporate Secretary |
|--------|---------------------|

----

|   |   | ——————————————Signature |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|  |
|--|

| (*) | A Shareholder is entitled to give several deeds of authorization,      each of which refers to a different quantity of Shares of the Company held      by him, so long as he shall not give deeds of authorization with respect      to an aggregate number of Shares exceeding the total number he holds. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (**) | In the event that the proxy does not hold an Israeli Identification      number, indicate a passport number, if any, and the name of the country      which issued the passport. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |
|--|

|   | 20.3. | A vote in accordance with a deed of authorization shall be lawful      even if prior to it, the appointer died or became incapacitated or      bankrupt, or if it is a corporation – was liquidated, or if he cancelled      the deed of authorization or transferred the Share in respect of which it      was given, unless a notice in writing was received at the Office of the      Company prior to the meeting with respect to the occurrence of such an      event. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21. | Deed of Vote, Voting      Via the Internet |
|-----|--------------------------------------------|

|   | 21.1. | A Shareholder may vote in a General Meeting by means of a Deed of      Vote (ktav      hatba’ah) on any issue for which voting by Deed of Vote is required      to be offered under applicable Law and on any other issue for which the      Board of Directors has approved voting by Deed of Vote, either generally      or specifically. The form of the Deed of Vote shall be set by the      corporate secretary or any one so authorized by the Board of Directors. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 21.2. | The Board of Directors may authorize Shareholder voting in a      General Meeting via the Internet, subject to any applicable Law. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------|

| 22. | The Authority of the      Board of Directors |
|-----|----------------------------------------------|

|   | 22.1. | The authority of the Board of Directors is as specified both in the      Law and in the provisions of these Articles of Association. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | 22.2. | Signature Authority and Powers of Attorney |
|--------|-------|--------------------------------------------|

----

|   | 22.2.1. | The Board of Directors shall determine the person(s) with authority      to sign for and on behalf of the Company with respect to various issues.      The signature of such person(s), appointed from time to time by the Board      of Directors, whether generally or for a specific issue, whether alone or      together with others, or together with the seal or the stamp of the      Company or its printed name, shall bind the Company, subject to the terms      and conditions set by the Board of Directors. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 22.2.2. | The Board of Directors may set separate signature authorities with      respect to different issues and different amounts. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------|

|   | 22.2.3. | The Board of Directors may, from time to time, authorize any person      to be the representative of the Company with respect to those objectives      and subject to those conditions and for that time period, as the Board of      Directors deems fit. The Board of Directors may also grant any      representative the authority to delegate any or all of the authorities,      powers and discretion given to the Board of Directors. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 22.3. | The Registered Office of theCompany |
|--------|-------|-------------------------------------|

|   | The Board of Directors shall fix the location of the Office of the      Company. |
|--------|----------------------------------------------------------------------------------|

| 23. | The Appointment of      Directors and the Termination of Their Office |
|-----|-----------------------------------------------------------------------|

|   | 23.1. | The Number of Directors |
|--------|-------|-------------------------|

|   | The number of Directors in the Company shall not be less than seven      (7) or more than seventeen (17). |
|--------|-----------------------------------------------------------------------------------------------------------|

|   | 23.2. | The Identity of a Director |
|--------|-------|----------------------------|

|   | 23.2.1. | A member of the Board of Directors may hold another position with      the Company. |
|--------|---------|-------------------------------------------------------------------------------------|

|   | 23.2.2. | A corporation may serve as a Director in the Company, subject to      the provisions of Article 23.6 below. |
|--------|---------|-------------------------------------------------------------------------------------------------------------|

|   | 23.2.3. | For as long as any individual or an entity which is an Interested      Party in the Company is also an Interested Party in Cellcom (Israel) Ltd.      (hereinafter “Cellcom”), such Interested Party or an Office Holder of an      Interested Party in Cellcom or an Office Holder of any entity controlled      by an Interested Party in Cellcom (other than Elron Electronic Industries      Ltd (“Elron”) or an entity controlled by Elron) will not serve as an      Office Holder of the Company, and no Interested Party in Cellcom or any      entity controlled by such Interested Party, may appoint more than two      Directors to the Board of Directors of the Company. For the purposes of      this Article, the terms “control”, “Interested Party” and “Office Holder”      shall bear the same meaning as in, and shall be interpreted in accordance      with, the License. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.2.4. | The Board of Directors shall include independent and/or external      Directors required to comply with the applicable requirements of any Law,      the Nasdaq Stock Market, the London Stock Exchange and any other      investment exchange on which the securities of the Company are or may      become quoted or listed. The requirements of the Companies Law applicable      to an external Director (Dahatz) shall prevail      over the provisions of these Articles of Association to the extent these      Articles of Associations are inconsistent with the Companies Law, and      shall apply to the extent these Articles of Associations are silent. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 23.2.5. | At least 10% of the members of the Board of Directors of the      Company shall be comprised of Qualified Israeli Directors. Notwithstanding      the above, if the board is comprised of up to 14 members, one Qualified      Israeli Director shall be sufficient, and if the board is comprised of      between 15 and 24 members, two Qualified Israeli Directors shall be      sufficient. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.2.6. | Notwithstanding any other provision of these Articles, a Qualified      Israeli Director shall be appointed as a member of the Board of Directors,      and may be removed from such office, only upon written notice to the      Company Secretary of his or her appointment or removal by the Founding      Israeli Shareholders holding Minimum Israeli Holding Shares. For purposes      of this section, a notice signed by at least two of the Founding Israeli      Shareholders who are the record holders of at least 50% of Minimum Israeli      Holding Shares shall be deemed to be sufficient notice on behalf of all      holders of Minimum Israeli Holding Shares. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.3. | The Election of Directors and their Terms of Office |
|--------|-------|-----------------------------------------------------|

|   | 23.3.1. | The Directors shall be elected at each Annual Meeting and shall      serve in office until the close of the next Annual Meeting, unless their      office becomes vacant earlier in accordance with the provisions of these      Articles of Association. Each Director of the Company shall be elected by      an Ordinary Majority at the Annual Meeting; provided, however, that      external Directors shall be elected in accordance with applicable law      and/or any relevant stock exchange rule applicable to the Company. The      elected Directors shall commence their terms from the close of the Annual      Meeting at which they are elected, unless a later date is stated in the      resolution with respect to their appointment. Election of Directors shall      be not conducted by separate vote on each candidate, unless so determined      by the Board of Directors. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.3.2. | In each Annual Meeting, the Directors that were elected in the      previous Annual Meeting, and thereafter, in any Extraordinary Meeting      shall be deemed to have resigned from their office. A resigning Director      may be reelected. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.3.3. | Notwithstanding the other provisions of these Articles of      Association and without derogating from Article 23.4, an Extraordinary      Meeting of the Company may elect any person as a Director, to fill an      office which became vacant, or to serve as an additional member to the      then existing Board of Directors, or to serve as an external Director      (Dahatz) or an      independent Director and also in any event in which the number of the      members of the Board of Directors is less than the minimum set in the      Articles of Association provided that the maximum number of Directors      permitted under Article 23.1 is not exceeded. Any Director elected in such      manner (excluding an external Director (Dahatz) shall serve in      office until the coming Annual Meeting, unless his office becomes vacant      earlier in accordance with the provisions of these Articles of Association      and may be reelected. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 23.3.4. | An elected external Director (Dahatz) shall commence      his term from the close of the General      Meeting at which he is elected, unless a later date is stated in, the      resolution with respect to his appointment,      and shall serve for the period in accordance with the provisions of the      Companies Law, notwithstanding Article 23.3 above, unless his      office becomes vacant earlier in accordance with the provisions of the      Companies Law. A General Meeting may reelect an external Director (Dahatz) for additional      term(s) as permitted by the Companies Law. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.4. | The election of Directors by the Board of Directors |
|--------|-------|-----------------------------------------------------|

|   | The Board of Directors shall have the right, at all times, upon      approval of at least a simple      majority of the Directors of the Company, to elect any person as a      Director, to fill an office which became vacant, or to serve as an      additional member to the then existing Board of Directors provided that      the maximum number of Directors permitted under Article 23.1 is not      exceeded. Any Director elected in such manner shall serve in office until      the coming Annual Meeting and may be reelected. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.5. | Alternate Director |
|--------|-------|--------------------|

|   | Any Director may, from time to time, appoint for himself an      alternate Director (hereinafter: the “Alternate Director”), dismiss such      Alternate Director and also appoint another Alternate Director instead of      any Alternate Director, whose office becomes vacant, due to whatever      cause, whether for a certain meeting or generally. Anyone who is not      qualified to be appointed as a Director and also anyone serving as a      Director or as an existing Alternate Director shall not serve as an      Alternate Director. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.6. | Representatives of a Director that is a Corporation |
|--------|-------|-----------------------------------------------------|

|   | A Director that is a corporation shall appoint an individual,      qualified to be appointed as a Director in the Company, in order to serve      on its behalf, either generally or for a certain meeting, or for a certain      period of time and the said corporation may also dismiss that individual      and appoint another in his stead (hereinafter: “Representatives of a      Director”). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 23.7. | Manner of Appointment or Dismissal of an Alternate Director or a      Representative of a Director that is a Corporation |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------|

|   | Any appointment or dismissal of Representatives of Directors, when      such Directors are corporations, or of Alternate Directors, shall be made      by means of a notice in writing to the corporate secretary, signed by the      appointing or dismissing body and shall become valid upon the date      indicated in the appointment or dismissal notice or upon the date of its      delivery to the corporate secretary, whichever is the later. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.8. | Miscellaneous Provisions with Respect to Alternate Directors and      Representatives of Directors that are Corporations. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------|

|   | 23.8.1. | Any person, whether he is a Director or not, may serve as the      representative of a Director, and any one person may serve as the      representative of several Directors. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.8.2. | The Representative of a Director – in addition to his own vote, if      he is serving as a Director – shall have a number of votes corresponding      to the number of Directors represented by him. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.8.3. | An Alternate Director and the Representative of a Director shall      have all the authority of the Director for whom he is serving as an      Alternate Director or as a representative, with the exception of the      authority to vote in meetings at which the Director is present in person. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.8.4. | The office of an Alternate Director or a representative of a      Director shall automatically become vacant, if the office of the Director      for whom he is serving as an Alternate Director or as a representative      becomes vacant. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.9. | Termination of the Term of a Director |
|--------|-------|---------------------------------------|

|   | The term of a Director shall be terminated in any of the following      cases: |
|--------|--------------------------------------------------------------------------------|

|   | 23.9.1. | If he resigns from his office by way of a signed letter, filed with      the corporate secretary at the Company’s Office; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------|

|   | 23.9.2. | If he is declared bankrupt or if he reaches a settlement with his      creditors within the framework of bankruptcy procedures; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------|

|   | 23.9.3. | If he is declared by an appropriate court to be incapacitated; |
|--------|---------|----------------------------------------------------------------|

|   | 23.9.4. | Upon his death and, in the event of a corporation, if a resolution      has been adopted for its voluntary liquidation or a liquidation order has      been issued to it; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 23.9.5. | If he is removed from his office by way of a resolution, adopted by      the General Meeting of the Company, even prior to the completion of his      term of office; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.9.6. | If he is convicted of a crime, as stated in Section 232 of the      Companies Law; |
|--------|---------|------------------------------------------------------------------------------------|

|   | 23.9.7. | If his term is terminated by the Board of Directors in accordance      with the provisions of Section 231 of the Companies Law; or |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.9.8 | If his term is terminated by the Board of Directors in case the      Board of Directors concludes that the office of such dDirector is in      violation to the provisions of the License or any other telecommunications      license granted to the Company or to any of its subsidaries or to any      other entity it controls.” |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.10. | The Implications on the Board of Directors of the Termination of      the Term of a Director. |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | In the event that an office of a Director becomes vacant, the      remaining Directors are entitled to continue operating, so long as their      number has not decreased below the minimum number of Directors set forth      in Article 23.1. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In the event that the number of Directors decreased below that      minimum number, the remaining Directors shall be entitled to act solely      for the convening of a General Meeting of the Company for the purpose of      electing additional Directors to the Board of Directors. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.11. | Compensation of Members of the Board of Directors |
|--------|--------|---------------------------------------------------|

|   | Members of the Board of Directors who do not hold other positions      in the Company and who are not external Directors shall not receive any      compensation from the Company, unless such compensation is approved by the      General Meeting and according to the amount determined by the General      Meeting, subject to the provisions of the Law. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The compensation of the Directors may be fixed, as an all-inclusive      payment or as payment for participation in meetings or in any combination      thereof. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company may reimburse expenses incurred by a Director in      connection with the performance of his office, to the extent provided in a      resolution of the Board of Directors. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24. | Actions of      Directors |
|-----|---------------------------|

|   | 24.1. | Convening Meetings of the Board of Directors |
|--------|-------|----------------------------------------------|

----

|   | 24.1.1. | The chairman of the Board of Directors may convene a meeting of the      Board of Directors at any time. |
|--------|---------|----------------------------------------------------------------------------------------------------------|

|   | 24.1.2. | The chairman of the Board of Directors shall convene a meeting of      the Board of Directors at least four times a year, in a manner allowing      the Company to fulfil the provisions of the Law with respect to the      publication of Financial Statements and reporting to the public. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.1.3. | The chairman of the Board of Directors shall convene a meeting of      the Board of Directors on a specific issue if requested by at least two      Directors or one Director, if he is an external Director, within no more      than 14 days from the date of the request. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.1.4. | The chairman of the Board of Directors shall act forthwith for the      convening of a meeting of the Board of Directors, within 14 days from the      time that a Director in the Company has informed him of a matter related      to the Company in which there is an apparent violation of the Law or a      breach of proper management of the business, or from the time that the      auditor of the Company has reported to him that he had become aware of      material flaws in the accounting oversight of the Company. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.1.5. | In the event that a notice or a report of the General Manager      requires an action of the Board of Directors, the chairman of the Board of      Directors shall forthwith convene a meeting of the Board of Directors,      which should be held within 14 days from the date of the notice or the      report. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.2. | Convening of a Meeting of the Board of Directors |
|--------|-------|--------------------------------------------------|

|   | 24.2.1. | Any notice with respect to a meeting of the Board of Directors may      be given in writing, so long as the notice is given at least 14 days prior      to the date fixed for the meeting, unless all the members of the Board of      Directors or their Alternate Directors or their representatives agree on a      shorter time period. A notice, as stated, shall be delivered in writing or      transmitted via facsimile or E-mail or through another means of      communication, to the address or facsimile number or to the E-mail address      or to an address where messages can be delivered through other means of      communication, as the case may be, as the Director informed the corporate      secretary, upon his appointment, or by means of a written notice to the      corporate secretary thereafter. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | A notice, which was delivered or transmitted, as provided in this      Article, shall be deemed to be personally delivered to the Director on its      delivery date. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.2.2. | In the event that a Director appointed an Alternate Director or a      representative, the notice shall be delivered to the Alternate Director or      the representative, unless the Director instructed that the notice should      be delivered to him as well. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.2.3. | The notice shall include the venue, date and time of the meeting of      the Board of Directors, arrangements with respect to the manner of      management of the meeting (in cases where telecommunications are used),      the details of the issues on its agenda and any other material that the      chairman of the Board of Directors requests be attached to the summoning      notice with respect to the meeting. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.3. | The Agenda of Meetings of Board of Directors |
|--------|-------|----------------------------------------------|

|   | The agenda of meetings of the Board of Directors shall be      determined by the chairman of the Board of Directors and shall include the      following issues: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.3.1. | Issues determined by the chairman of the Board of Directors. |
|--------|---------|--------------------------------------------------------------|

|   | 24.3.2. | Issues for which the meeting is convened in accordance with Article      24.1 above. |
|--------|---------|--------------------------------------------------------------------------------------|

|   | 24.3.3. | Any issue requested by a Director or by the General Manager within      a reasonable time prior to the date of the meeting of the Board of      Directors (taking into account the nature of the issue). |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.4. | Quorum |
|--------|-------|--------|

|   | The quorum for meetings of the Board of Directors shall be a      majority of the Directors, which must include one external Director. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.5. | Conducting a Meeting Through Means of Communication |
|--------|-------|-----------------------------------------------------|

|   | The Board of Directors may conduct a meeting of the Board of      Directors through the use of any means of communications, provided all of      the participating Directors can hear each other simultaneously. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.6. | Voting in the Board of Directors |
|--------|-------|----------------------------------|

|   | Subject to Article 23.4 and Article 44, Issues presented at      meetings of the Board of Directors shall be decided upon by a majority of      the votes of the Directors present (or participating, in the case of a      vote through a permitted means of communications) and voting, subject to      the provisions of Article 23.8 above, with respect to Alternate Directors      and representatives of Directors that are corporations. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Each Director shall have a single vote. |
|--------|-----------------------------------------|

|   | 24.7. | Written Resolutions |
|--------|-------|---------------------|

|   | A written resolution signed by all the Directors shall be deemed as      a resolution lawfully adopted at a meeting of the Board of Directors. Such      a resolution may be made in several copies of the same Document, each of      them signed by one Director or by several Directors. Such a resolution may      be adopted by signature of only a portion of the Directors, if all of the      Directors who have not signed the resolution were not entitled to      participate in the discussion and to vote on such resolution in accordance      with any Law whatsoever, so long as they confirm in writing that they are      aware of the intention to adopt such a resolution. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.8. | Resolutions Approved by Means of Communications |
|--------|-------|-------------------------------------------------|

|   | A resolution approved by use of a means of communications by the      Directors shall be deemed to be a resolution lawfully adopted at a meeting      of the Board of Directors, and the provisions of Article 24.6 above shall      apply to the said resolution. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.9. | The Validity of Actions of the Directors |
|--------|-------|------------------------------------------|

|   | All actions taken in good faith in a meeting of the Board of      Directors or by a committee of the Board of Directors or by any person      acting as a Director shall be valid, even if it subsequently transpires      that there was a flaw in the appointment of such a Director or person      acting as such, or if any of them were disqualified, as if any such person      was lawfully appointed and was qualified to serve as a Director. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.10. | Minutes of Meetings of the Board of Directors |
|--------|--------|-----------------------------------------------|

|   | The chairman of the Board of Directors shall cause that the minutes      of meetings of the Board of Directors shall be properly maintained and      shall include the following: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.10.1. | Names of those present and participating at each meeting. |
|--------|----------|-----------------------------------------------------------|

|   | 24.10.2. | All the resolutions and particulars of the discussion of said      meetings. |
|--------|----------|------------------------------------------------------------------------------|

|   | Any such minutes signed by the chairman of the Board of Directors      presiding over that meeting or by the chairman of the Board of Directors      at the following meeting, shall be viewed as prima facie evidence of the      issues recorded in the minutes. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 25. | Committees of the      Board of Directors |
|-----|-------------------------------------------|

|   | 25.1. | Subject to the provisions of the Companies Law, the Board of      Directors may delegate its authorities or any part of them to committees,      as they deem fit, and they may from time to time cancel the delegation of      such an authority. Any such committee, while utilizing an authority as      stated, is obligated to fulfil all of the instructions given to it from      time to time by the Board of Directors. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 25.2. | Subject to the provisions of the Companies Law, each committee of      the Board of Directors shall consist of at least two Directors, and it may      include members who are not Directors, with the exception of the audit      committee which shall consist of at least three (3) Directors, and all of      the external Directors of the Company shall be members of it. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 25.3. | The provisions with respect to meetings of the Board of Directors      shall apply to the meetings and discussions of each committee of the Board      of Directors, with the appropriate changes, provided that no other terms      are set by the Board of Directors in this matter, and provided that the      lawful quorum for the meetings of the committee, as stated, shall be at      least a majority of the members of the committee, unless otherwise      required by Law. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25A. | Committee for Security      Matters |
|------|-------------------------------------|

|   | 25A.1. | Notwithstanding any other provision in these Articles, the Board of      Directors shall appoint from among its members who have security clearance      and security compatibility to be determined by the General Security      Service (“Directors with Clearance”) a committee to be designated the      “Committee for Security Matters”. The members of the Committee for      Security Matters shall include at least four (4) Directors with Clearance      including at least one external director. Subject to section 25A.2 below,      security matters shall be considered only in the context of the Committee      for Security Matters. Any decision of, or action by the Committee for      Security Matters shall have the same effect as if it had been made or      taken by the Board of Directors. The Board of Directors shall consider a      security matter only if required pursuant to section 25A.2 below, and      subject to the terms of that section. For purposes of this section 25A,      “security matters” shall be defined in the same manner as defined in the      Bezeq Order (Determination of Essential Service Provided by Bezeq-The      Israeli Telecommunications Company Ltd.), 1997, as of March 9, 2005. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 25A.2. | Security matters which the audit committee or board of directors      shall be required to consider in accordance with the mandatory rules of      the Companies Law or other Law applicable to the Company, shall be      considered to the extent necessary only by Directors with Clearance. Other      Directors shall not be entitled to participate in meetings of the audit      committee or board of directors dealing with security matters, or to      receive information or documents related to these matters. A quorum for      these meetings shall include only Directors with Clearance. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 25A.3. | Any director or officer of the Company who would otherwise be      required to receive information or participate in meetings by virtue of      his or her position or these Articles or any Law, but who is prevented      from doing so by the provisions of this Article 25A, will be released from      any liability for any claim of breach of duty of care to the Company which      results from her or his inability to receive information or participate in      meetings, and the Company shall indemnify any such director or officer and      hold her or him harmless to the maximum extent permitted by law for any      injury or damage she or he incurs as a result of the inability to receive      such information or participate in such meetings. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 25A.4. | The shareholders at a general meeting shall not be entitled to      assume, delegate, transfer or exercise any of the authorities granted to      any other corporate body in the Company with respect to security matters. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 25A.5. | (1)        The Minister of      Communications shall be entitled to appoint an observer (the “Security      Observer”) to all meetings of the board of directors and its committees.      The Security Observer shall have the security clearance and security      compatibility to be determined by the General Security Service. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)        The Security Observer      shall be an employee of the State of Israel qualified to serve as a      director pursuant to Chapter C of the Government Companies Law, 1975. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3)        In addition to any      other obligations under Law, the Security Observer shall be bound to      preserve the confidentiality of [information relating to] the Company,      except as required to fulfill his responsibilities as an observer. The      Security Observer will not act as an observer or in any other position at      a competitor of the Company, and will avoid a conflict between his      position as an observer and the interests of the Company. The Security      Observer shall undertake not to serve as an observer or officer or      director, and not serve in any other capacity or be employed, directly or      indirectly, by any entity competing with the Company or in a position of      conflict of interest with the Company during the period of his service as      the Security Observer and for two years after termination of such period. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4)        Notices of meetings      of the board of directors and its committees, including of the Committee      for Security Matters, shall be delivered to the Security Observer, and he      shall be entitled to participate in each such meeting. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5)        The Security Observer      shall have the same right to obtain information from the Company as that      of a Director. If the Company believes that specific information requested      is commercially sensitive and not required by the Security Observer for      fulfillment of his duties, the Company may delay delivery of the      information upon notice to the Security Observer. If the Security Observer      still believes the information is needed for his duties, the matter shall      be brought for decision to the head of the General Security Service. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6)        If the Security      Observer believes that the Company has made a decision, or is about to      make a decision, in a security matter, which conflicts with a provision of      the License or section 13 of the Communications Law (Telecommunications      and Broadcasting), 1982 or section 11 of the General Security Service Law,      2002, he shall promptly notify the Company in writing. Said notice shall      be delivered to the chairman of the board of directors and chairman of the      Committee for Security Matters and shall provide an appropriate defined      period of time, in light of the circumstances, in which the Company shall      be required to correct the violation or change the decision, to the extent      possible.” |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 25B. | Approval of Certain      Related Party Transactions |
|------|-----------------------------------------------------|

|   | A transaction of the type described in Section 270(1) of the      Companies Law i.e. a transaction with directors or officers or a      transaction in which an officer or a director has a personal interest,      provided that such transactions are in the Company’s ordinary course of      business, are on market terms and are not likely to substantially      influence the profitability of the Company, its assets or its liabilities,      may be approved by the Audit Committee, without the need for Board of      Director’s approval, or by the Board of Directors, subject to any      applicable Law and any relevant stock exchange rule applicable to the      Company. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26. | Chairman of the Board      of Directors |
|-----|-----------------------------------------|

|   | 26.1. | Appointment |
|--------|-------|-------------|

|   | 26.1.1. | The Board of Directors shall choose one of its members to serve as      the chairman of the Board of Directors, and shall set in the appointing      resolution the term for his service. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 26.1.2. | Unless otherwise provided in the appointing resolution, the      chairman of the Board of Directors shall be chosen each and every calendar      year at the first meeting of the Board of Directors held after the General      Meeting in which Directors were appointed to the Company. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 26.1.3. | In the event that the chairman of the Board of Directors ceases to      serve as a Director in the Company, the Board of Directors in its first      meeting held thereafter shall choose one of its members to serve as a new      chairman who will serve in his position for the term set in the appointing      resolution, and if no period is set, until the appointment of a chairman,      as provided in this Article. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 26.1.4. | In the event that the chairman of the Board of Directors is absent      from a meeting, the Board of Directors shall choose one of the Directors      present to preside at the meeting. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 26.2. | Authority |
|--------|-------|-----------|

|   | 26.2.1. | The chairman of the Board of Directors shall preside over meetings      of the Board of Directors. |
|--------|---------|----------------------------------------------------------------------------------------------------|

|   | 26.2.2. | In the event of a deadlock vote, the chairman of the Board of      Directors shall not have an additional or casting vote. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------|

----

|   | 26.2.3. | The chairman of the Board of Directors is entitled, at all times,      at his initiative or pursuant to a resolution of the Board of Directors,      to require reports from the General Manager in matters pertaining to the      business affairs of the Company. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 26.3. | Reservations with Regard to Actions of the Chairman of the Board of      Directors |
|--------|-------|------------------------------------------------------------------------------------|

|   | 26.3.1. | The chairman of the Board of Directors shall not serve as the      General Manager of the Company, unless he is appointed in accordance with      the provisions of Article 27.2 below. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 26.3.2. | The chairman of the Board of Directors shall not serve as a member      of the Audit Committee. |
|--------|---------|-------------------------------------------------------------------------------------------------|

| 27. | The General      Manager |
|-----|--------------------------|

|   | 27.1. | The Appointment and Dismissal of the General Manager |
|--------|-------|------------------------------------------------------|

|   | 27.1.1. | The Board of Directors shall appoint a General Manager for a fixed      period of time or for an indefinite period of time. The Board of Directors      may appoint more than one General Manager. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 27.1.2. | The compensation and employment conditions of the General Manager      shall be determined by the Board of Directors in any manner it deems fit.      Where the compensation of the General Manager is regarded by the Board of      Directors in accordance with the Company Law as an “exceptional      transaction” and also in cases of the granting of a release, insurance,      liability for indemnification or indemnification given by a permit, said      compensation requires the prior approval of the audit committee. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 27.1.3. | The Board of Directors may from time to time remove the General      Manager from his office or dismiss the General Manager and appoint another      or others in his stead. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 27.2. | The Chairman of the Board of Directors as the General Manager |
|--------|-------|---------------------------------------------------------------|

|   | 27.2.1. | The General Meeting of the Company is entitled to authorize the      chairman of the Board of Directors to fulfil the position of the General      Manager and to exercise his authority, so long as the majority of the      votes in the General Meeting adopting such a resolution include at least      two thirds of the votes of Shareholders present and entitled to vote at      the meeting who are not controlling Shareholders of the Company as defined      in the Companies Law or representatives of any of them. “Abstain” votes      shall not be taken into account in the counting of the votes of the      Shareholders. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 27.2.2. | The validity of a resolution provided in Article 27.2.1 above is      restricted to a maximum period of three years from the date of the      adoption of the resolution by the General Meeting. In the event that no      period was set in the resolution, the period shall be deemed to be for      three years. Prior to the completion of the three year period, as      aforesaid, and even after the end of this period, the General Meeting is      entitled to extend the validity of such resolution. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 27.2.3. | A resolution, as stated, may relate to the authority of the      chairman of the Board of Directors, generally, or to a specific person who      is serving as the chairman of the Board of Directors. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 27.3. | The Authority of the General Manager and Subordination to the Board      of Directors |
|--------|-------|---------------------------------------------------------------------------------------|

|   | 27.3.1. | The General Manager is responsible for the day-to-day management of      the affairs of the Company within the framework of the policy set by the      Board of Directors and subject to its instructions. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The General Manager shall have all administrative and operational      authority which were not conferred by Law or pursuant to these Articles of      Association to any other corporate organ of the Company, and he shall be      under the supervision of the Board of Directors and subject to its      instructions. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The General Manager shall appoint and dismiss officers of the      Company, with the exception of Directors, and he shall also determine the      terms of their employment, unless otherwise resolved by the Board of      Directors and provided, however, that the appointment and dismissal of      senior managers of the Company shall require consultation with and      approval by the Board of Directors. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 27.3.2. | The Board of Directors may instruct the General Manager on how to      act with respect to a certain issue. If the General Manager fails to      fulfil the instruction, the Board of Directors may exercise the required      authority in order to act in the place of the General Manager. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | The Board of Directors may assume the authority granted to the      General Manager, either with respect to a certain issue or for a certain      period of time. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 27.3.3. | In the event that the General Manager is unable to exercise his      authority, the Board of Directors may exercise such authority in his      stead, or authorize another to exercise such authority. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 27.4. | Reporting Duties of the General Manager |
|--------|-------|-----------------------------------------|

|   | The General Manager is obligated to notify the chairman of the      Board of Directors of any exceptional matter which is material to the      Company, or of any material deviation by the Company from the policy set      by the Board of Directors. In the event that the Company shall be without      a chairman of the Board of Directors for whatever reason the General      Manager shall notify all the members of the Board of Directors, as      aforesaid. The General Manager shall deliver to the Board of Directors      reports on issues, at such time and in such scope, as is determined by the      Board of Directors. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 27.5. | Delegating Authority of the General Manager |
|--------|-------|---------------------------------------------|

|   | The General Manager, upon approval of the Board of Directors, may      delegate to his subordinates any of his authority. However, such      delegation of authority shall not release the General Manager from his      liability. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28. | The Corporate      Secretary, Internal Controller and Other Officers of the      Company |
|-----|------------------------------------------------------------------------------------------|

|   | 28.1. | The corporate secretary |
|--------|-------|-------------------------|

|   | 28.1.1. | The Board of Directors is entitled to appoint a corporate secretary      on terms it deems fit, joint secretaries, sub–secretaries and to determine      the areas of their functions and authorities. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 28.1.2. | In the event that no corporate secretary has been appointed, the      General Manager or anyone authorized by him shall fulfil the functions      assigned to the corporate secretary, in accordance with any Law, to these      Articles of Association and the resolutions of the Board of Directors. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 28.1.3. | The corporate secretary shall be responsible for all documents      which are kept at the Office, as stated in Section 124 of the Companies      Law, and he shall manage all the registries maintained by the Company in      accordance with the Law or Companies Law. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 28.2. | Internal Controller |
|--------|-------|---------------------|

|   | 28.2.1. | The internal controller of the Company shall report to the chairman      of the Board of Directors. |
|--------|---------|-----------------------------------------------------------------------------------------------------|

|   | 28.2.2. | The internal controller shall file with the Board of Directors a      proposal for an annual or other periodic work plan, which shall be      approved by the Board of Directors, subject to any changes it deems fit. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 28.3. | Other Officers of the Company |
|--------|-------|-------------------------------|

|   | The Board of Directors may decide that in addition to the General      Manager and the corporate secretary, other officers may be appointed,      whether generally or for a specific issue. In such event, the Board of      Directors shall appoint the officer, define his position and authority,      and set his compensation and terms of employment. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Board of Directors is entitled to authorize the General Manager      to fulfil any or all of its authorities, as stated. |
|--------|------------------------------------------------------------------------------------------------------------------------------|

| 29. | The      Auditor |
|-----|------------------|

|   | 29.1. | The Shareholders at the Annual Meeting shall appoint an auditor for      a period until the close of the following Annual Meeting. The Annual      Meeting may appoint an auditor for a period not to extend beyond the close      of the third Annual Meeting following the Annual Meeting in which he was      appointed. In the event that the auditor was appointed for said period,      the Annual Meeting shall not address the appointment of the auditor during      said period, unless a resolution is adopted with respect to the      termination of his service. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 29.2. | The General Meeting is entitled at all times to terminate the      service of the auditor or to decide not to renew it. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------|

|   | 29.3. | The Board of Directors shall determine the compensation of the      auditor of the Company and it shall report in that respect to the Annual      Meeting of the Company. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 29.4. | The Board of Directors shall set the compensation of the auditor      for additional services which are not regarded as oversight activities,      and it shall report in this respect at the Annual Meeting of the Company. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30. | Permitted      Distributions |
|-----|------------------------------|

|   | 30.1. | Definitions |
|--------|-------|-------------|

|   | In this Chapter, the following terms shall be construed, in      accordance with their definition in Sections 301 and 302 of the Companies      Law: “distribution”, “acquisition”, “profits”, “profit test”, “adjusted      financial statements” and “balances”. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 30.2. | Distribution of Profits |
|--------|-------|-------------------------|

|   | The Company shall not make any distribution except from its      profits, provided that the Company shall not make any distribution if      there is a reasonable fear that such distribution shall preclude the      Company from having the ability to meet its present and anticipated      liabilities, as they become due. Notwithstanding the aforesaid, the      Company, with the approval of the Court, is entitled to make a      distribution which fails to meet the profit test. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 30.3. | Allotment for a Consideration Below the Par Value |
|--------|-------|---------------------------------------------------|

|   | In the event the Board of Directors decides to allot Shares having      a par value, for consideration which is less than their par value,      including Bonus Shares, the Company shall convert into share capital from      its profits, premium on its Shares, or any other source, included in its      shareholders equity, as stated in its most recent Financial Statements, an      amount equal to the difference between the par value and the      consideration. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Even if the aforesaid is not done, with the approval of the Court,      the Company shall be entitled to make an allotment of Shares, for      consideration which is less than their par value. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31. | Dividends and Bonus      Shares |
|-----|---------------------------------|

|   | 31.1. | Right to Dividends or Bonus Shares |
|--------|-------|------------------------------------|

|   | 31.1.1. | A Shareholder of the Company shall have the right to receive      dividends or Bonus Shares, if the Company so decides in accordance with      Article 31.2 below, consistent with the rights attaching to such Shares. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1.2. | Dividends or Bonus Shares shall be distributed or allotted to those      who are registered in the Shareholder Register on the date of the      resolution approving the distribution or allotment or upon a latter date,      if another date is determined for this purpose in same resolution      (hereinafter: the “Determining Date”). |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1.3. | In the event that the share capital of the Company consists of      Shares having various par values, dividends or Bonus Shares shall be      distributed in proportion to the par value of each Share. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 31.1.4. | Subject to special rights conferred upon Shares in accordance with      the conditions of their allotment, profits of the Company which the      Company decides to distribute as a dividend or as Bonus Shares shall be      paid in proportion to the amount which was paid or credited on the account      of the par value of the Shares, held by the Shareholder. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1.5. | In the event that it was not otherwise determined in the conditions      applicable to the allotment of the Shares or in a resolution of the      General Meeting, all the dividends or Bonus Shares with respect to Shares,      which were not fully paid within the period in which the dividends or      Bonus Shares are paid, shall be paid in proportion to the amounts which      were actually paid or credited as paid on the par value of the Shares      during any part of said period (pro rata temporis). |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2. | Resolution of the Company with Respect to a Dividend or Bonus      Shares |
|--------|-------|---------------------------------------------------------------------------|

|   | 31.2.1. | The Authority to Distribute Dividends or Bonus Shares |
|--------|---------|-------------------------------------------------------|

|   | The resolution of the Company on the distribution of a dividend or      Bonus Shares to be distributed to the Shareholders according to their      respective rights and benefits, and on their time of payment, shall be      made by the Board of Directors. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2.2. | Funds |
|--------|---------|-------|

|   | The Board of Directors may, in its discretion, allocate to special      funds any amount whatsoever from the profits of the Company or from the      revaluation of its assets or its relative share in the revaluation of      assets of “branch companies,” and also to determine the designation of      these funds. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.3. | The Payment of Dividends |
|--------|-------|--------------------------|

|   | 31.3.1. | Manner of Payment |
|--------|---------|-------------------|

|   | Unless otherwise provided in the resolution with respect to the      distribution of the dividend, the Company may pay any dividend with the      withholding of any tax required by Law, by way of a cheque to the order of      the beneficiary alone, which should be sent by means of registered mail to      the registered address of the Shareholder entitled thereto, or by way of a      bank transfer. Any cheque, as stated, shall be drawn up to the order of      the person to whom it is intended. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In the event of registered joint holders, the cheque shall be      passed to the same Shareholder whose name is registered first in the      Shareholder Register with respect to the joint holding. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | The sending of a cheque to a person whose name is registered in the      Shareholder Register as the holder of the Share upon the Determining Date      or, in the case of joint holders, to any of the joint holders, shall serve      as evidence with respect to all the payments made in connection with same      Shares. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company may decide that a cheque under a certain amount shall      not be sent and the amount of the dividend which was supposed to be paid      shall be deemed to be an unclaimed dividend. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.3.2. | An Unclaimed Dividend |
|--------|---------|-----------------------|

|   | The Board of Directors is entitled to invest the amount of any      unclaimed dividend for one year after it was declared or to utilize it in      any other manner to the benefit of the Company until it is claimed. The      Company shall not be obligated to pay interest or Linkage on an unclaimed      dividend. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.3.3. | Specific Dividend |
|--------|---------|-------------------|

|   | In the event the Company declares a dividend, as provided in      Article 31.2.1 above, it may decide that same dividend shall be paid,      entirely or partially, by way of the distribution of certain assets,      including fully paid Shares or bonds of any other company or in any      combination of these assets. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.4. | Manner of Capitalization of Profits and the Distribution of Bonus      Shares |
|--------|-------|-------------------------------------------------------------------------------|

|   | 31.4.1. | Subject to the provisions of Article 30 above in the event of a      capitalization of profits and distribution of Bonus Shares, the      undistributed profits of the Company, or premium on Shares, or funds      derived from the revaluation of the assets of the Company, or funds      derived on the basis of equity from the profits of “branch companies,” or      from the revaluation of assets of “branch companies” and capital      redemption funds shall be capitalized and distributed among the      Shareholders entitled thereto, as per the provisions of Article 31.1      above, to be held by the shareholders as capital, and that this capital,      entirely or partially, shall be used on behalf of same Shareholders as      full payment, whether according to the par value of the Shares or together      with premium decided upon, for Shares to be distributed accordingly, and      that this distribution or payment shall be received by same Shareholders      as full consideration for their portion of the benefit in the capitalized      amount, as determined by the Board of Directors. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | The provisions of this chapter six shall also apply to the      distribution of bonds. |
|--------|----------------------------------------------------------------------------------------|

|   | 31.4.2. | The Company, in the resolution with respect to the distribution of      Bonus Shares, is entitled in accordance with the recommendation of the      Board of Directors, to decide that the Company shall transfer to a special      fund, designated for the future distribution of Bonus Shares, an amount      the capitalization of which shall be sufficient in order to allot to      anyone having at such time a right to acquire Shares of the Company      (including a right which can be exercised only upon a later date), Bonus      Shares at the par value which would have been due to him had he exercised      the right to acquire the Shares shortly before the Determining Date, at      the price of the right in effect at such time. In the event that after the      Determining Date, the holder of said right shall exercise his right to      acquire the Shares or any part of them, the Board of Directors shall allot      to him fully paid Bonus Shares at such par value and of such class, which      would have been due to him had he exercised shortly before the Determining      Date the right to acquire those Shares he actually acquired, by way of an      appropriate capitalization made by the Board of Directors out of the      special fund, as aforesaid. For the purpose of the determination of the      par value of the Bonus Shares which are to be distributed, any amount      transferred to the special fund, with respect to a previous distribution      of previous Bonus Shares shall be viewed as if it had already been      capitalized and that Shares entitling the holders to the right to acquire      Shares of the Company were already allotted as Bonus Shares. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.4.3. | Upon the distribution of Bonus Shares, each Shareholder of the      Company shall receive Shares of a uniform class or of the class which      confers on its holder the right to receive the Bonus Shares, as determined      by the Board of Directors. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.4.4. | For purposes of carrying out any resolution pursuant to the      provisions of Article 30, the Board of Directors may settle, as it deems      fit, any difficulty arising with regard to the distribution of Bonus      Shares, and, in particular, to issue certificates for fractions of Shares      and sell such fractions of Shares, in order to pay their consideration to      those entitled thereto, and also to set the value for the distribution of      certain assets and to decide that cash payments shall be paid to the      Shareholders on the basis of the value determined in such a way, or that      fractions whose value is less than NIS 0.01 shall not be taken into      account, pursuant to the adjustment of the rights of all parties. The      Board of Directors may pay cash or convey these certain assets to trustees      in trust in favor of those people who are entitled to a dividend or to a      capitalized fund, as the Board of Directors shall deem beneficial. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 32. | Acquisition of      Shares |
|-----|----------------------------|

|   | 32.1. | The Company is entitled to acquire or to finance an acquisition,      directly or indirectly, of Shares of the Company or securities convertible      into Shares of the Company or which could be exercised into Shares of the      Company, including incurring an obligation to take any of these actions,      subject to the fulfillment of the conditions of a permissible      distribution, as stated in Article 30 above. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2. | In the event that the Company acquired any of its Shares, such a      Share shall become a dormant Share, and shall not confer any rights, so      long as it is in the holding of the Company. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.3. | A subsidiary or another corporation in the control of the Company      is entitled to acquire Shares of the Company or securities convertible      into Shares of the Company or which can be exercised into Shares of the      Company, including an obligation to take any of these actions, to the same      extent the Company may make a distribution, so long as the board of      directors of the subsidiary or the managers of the acquiring corporation      have determined that had the acquisition of the Shares been carried out by      the Company it would have been regarded as a permissible distribution, as      specified in Article 30 above. Notwithstanding the foregoing, an      acquisition by a subsidiary or by another corporation in the control of      the Company, which is not fully-owned by the Company, will be considered a      distribution of an amount equal to the product of the amount acquired      multiplied by the percentage of the rights in the capital of the      subsidiary or in the capital of said corporation which is held by the      Company. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.4. | In the event that a Share of the Company is acquired by a      subsidiary or by a corporation in the control of the Company, the Share      shall not confer any voting rights, for so long as said Share is held by      the subsidiary or by said controlled corporation. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33. | Insurance of      Officers |
|-----|----------------------------|

|   | 33.1. | The Company may insure the liability of an officer in the Company,      to the fullest extent permitted by Law. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------|

----

|   | 33.2. | Without derogating from the aforesaid, the Company may enter into      an insurance contract and/or arrange and pay all premiums in respect of an      insurance contract, for the insurance of the liability of an officer in      the Company, resulting directly or indirectly from an action or inaction      by him (or together with other officers of the Company) in his capacity as      an officer in the Company, for any of the following: |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 33.2.1. | The breach of the duty of care toward the Company or toward any      other person; |
|--------|---------|------------------------------------------------------------------------------------|

|   | 33.2.2. | The breach of the duty of loyalty toward the Company provided the      officer has acted in good faith and had reasonable grounds to assume that      the action would not harm the Company; and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 33.2.3. | A financial liability imposed on him in favor of another person. |
|--------|---------|------------------------------------------------------------------|

|   | 33.2.4. | Any other matter in respect of which it is permitted or will be      permitted under Law to insure the liability of an officer in the Company. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

| 34. | Indemnification of      Officers |
|-----|----------------------------------|

|   | 34.1. | The Company may indemnify an officer in the Company.to the fullest      extent permitted by Law. Without derogating from the aforesaid, the      Company may indemnify an officer in the Company as specified in Articles      34.2 through 34.4 below. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 34.2. | Indemnification in Advance |
|--------|-------|----------------------------|

|   | The Company may indemnify an officer in the Company for liability      or expense he incurs or that is imposed on him in consequence with an      action or inaction by him (or together with other officers of the Company)      in his capacity as an officer in the Company, as follows: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 34.2.1. | Any financial liability he incurs or is imposed on him in favor of      another person in accordance with a judgment, including a judgment given      in a settlement or a judgment of an arbitrator, approved by the Court. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 34.2.2. | Reasonable litigation expenses, including legal fees, incurred by      the officer or which he was ordered to pay by the Court, in the context of      proceedings filed against him by the Company or on its behalf or by a      third party, or in a criminal proceeding in which he was acquitted, or in      a criminal proceeding in which he was convicted of an offense which does      not require criminal intent. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 34.2.3. | Reasonable litigation expenses, including legal fees, incurred by      the officer due to such investigation or proceeding conducted against him      by an authority authorized to conduct an investigation or proceeding, and      which was ended without filing an indictment against him and without the      imposition of a financial liability as a substitute for a criminal      proceeding, or that was ended without filing an indictment against him but      for which he was subject to a financial liability as a substitute for a      criminal proceeding relating to an offense which does not require criminal      intent, within the meaning of the relevant terms in the Law. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 34.2.4. | Any other liability or expense in respect of which it is permitted      or will be permitted under Law to indemnify an officer in the Company. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 34.3. | Indemnification in Advance |
|--------|-------|----------------------------|

|   | The Company may undertake in advance to indemnify an officer of the      Company in respect of the following matters:. |
|--------|------------------------------------------------------------------------------------------------------------------------|

|   | 34.3.1. | Matters as detailed in Article 34.2.1 provided however, that the      undertaking to indemnify is restricted to events which in the opinion of      the Board of Directors are anticipated in light of the Company’s      activities at the time of granting the obligation to indemnify, and is      limited to a sum or measurement determined by the Board of Directors to be      reasonable in the circumstances. The undertaking to indemnify shall      specify the events that, in the opinion of the Board of Directors are      expected in light of the Company’s actual activity at the time of grant of      the indemnification and the sum or measurement which the Board of      Directors determined to be reasonable in the circumstances. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 34.3.2. | Matters as detailed in Article 34.2.2 and 34.2.3. |
|--------|---------|---------------------------------------------------|

|   | 34.3.3. | Any other matter permited by Law. |
|--------|---------|-----------------------------------|

|   | 34.4. | Indemnification after the Fact |
|--------|-------|--------------------------------|

|   | The Company may indemnify an officer in the Company for all kinds      of events, retrospectively, subject to any applicable Law |
|--------|----------------------------------------------------------------------------------------------------------------------------------|

| 35. | Release of      Officers |
|-----|--------------------------|

|   | 35.1. | The Company shall not release an officer from his liability for a      breach of the duty of care toward the Company, other than in accordance      with the provisions of this Article. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 35.2. | The Company may release an officer in the Company, in advance, from      his liability, entirely or partially, for damage in consequence of the      breach of the duty of care toward the Company. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 35.3. | Notwithstanding the foregoing, the Company may not release an      officer from his liability, resulting from any of the following events: |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | 35.3.1. | The breach of the duty of loyalty toward the Company. |
|--------|---------|-------------------------------------------------------|

|   | 35.3.2. | The breach of the duty of care made intentionally or recklessly      (“pezizut”); |
|--------|---------|-----------------------------------------------------------------------------------------------|

|   | 35.3.3. | An intentional act intended to unlawfully yield a personal profit; |
|--------|---------|--------------------------------------------------------------------|

|   | 35.3.4. | A criminal fine or a penalty imposed on him. |
|--------|---------|----------------------------------------------|

| 36. | Liquidation |
|-----|-------------|

|   | 36.1. | In the event that the Company is liquidated, whether voluntarily or      otherwise, the liquidator, upon the approval of an Extraordinary Meeting,      may make a distribution in kind to the Shareholders of all or part of the      property of the Company, and he may with a similar approval of the General      Meeting, deposit any part of the property of the Company with trustees in      favor of the Shareholders, as the liquidator with the aforementioned      approval, deems fit. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 36.2. | The Shares of the Company shall confer equal rights among them with      respect to capital amounts which were paid or which were credited as paid      on the par value of the Shares, in all matters pertaining to the refund of      the capital and to the participation in the distribution of the balance of      the assets of the Company in liquidation. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 37. | Reorganization |
|-----|----------------|

|   | 37.1. | Upon the sale of the property of the Company, the Board of      Directors or the liquidators (in case of a liquidation), if they are so      authorized by a resolution of the General Meeting of the Company adopted      with a Special Majority, may receive fully or partially paid up Shares,      bonds or securities of another company, either Israeli or foreign, whether      incorporated or which is about to incorporated for the purpose of      acquiring property of the Company, or any part thereof, and the Directors      (if the profits of the Company allow for it) or the liquidators (in case      of a liquidation) may distribute among the Shareholders the Shares or the      securities mentioned above or any other property of the Company without      selling them or depositing them with trustees on behalf of the      Shareholders. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 37.2. | The General Meeting may, pursuant to a resolution adopted by a      Special Majority, decide on the valuation of the securities or of the      aforementioned property at a price and in the same manner as it deems      appropriate and all the Shareholders shall be obligated to accept any      valuation or distribution, authorized in accordance with the foregoing and      to waive their rights in this matter, unless the Company is about to      liquidate or is in a liquidation process, of same lawful rights (if any)      which according to the provisions of the Law should not be altered or      denied. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 38. | Notices |
|-----|---------|

|   | 38.1. | A notice or other document may be sent by the Company to any      Shareholder appearing in the Shareholder Register of the Company either      personally or by way of sending by registered mail, at the registered      address of the Shareholder in the Shareholder Register, or at such address      as the Shareholder shall have provided in writing to the Company as the      address for the delivery of notices. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 38.2. | All the notices to be given to Shareholders, shall, in respect of      Shares held jointly, be given to the person whose name is mentioned first      in the Shareholder Register, and any notice given in such a manner shall      be viewed as a sufficient notice to all the joint Shareholders. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 38.3. | Any Shareholder registered in the Shareholder Register, with an      address, whether in Israel or overseas, is entitled to receive, at such      address, any notice he is entitled to receive in accordance with the      Articles of Association or according to the provisions of the Law. Unless      otherwise stated above, no person who is not registered in the Shareholder      Register shall be entitled to receive any notices from the Company. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 38.4. | Any notice or other document which is sent to a Shareholder in      accordance with these Articles of Association shall be considered lawfully      sent with respect to all the Shares held by him (whether with respect to      Shares held by him alone or held by him jointly with others) even if same      Shareholder had died by that time or had become bankrupt or had received      an order for its liquidation or if a trustee or a liquidator or a receiver      was appointed with respect to his Shares (whether the Company was aware of      it or not) until another person is registered in the Shareholder Register      in his stead, as the holder thereof. The sending of a notice or other      document, as aforesaid, shall be viewed as a sufficient sending to any      person having a right in these Shares. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 38.5. | Any notice or other document which was sent by the Company via      registered mail, to an address in Israel, shall be considered sent within      72 hours from its posting at the post office. In order to prove sufficient      sending, it is enough to show that the letter containing the notice or the      document was addressed to the correct address and was posted at the post      office. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 38.6. | Any accidental omission with respect to the giving of a notice of a      General Meeting to any Shareholder or the non-receipt of a notice with      respect to a meeting or any other notice on the part of whatever      Shareholder shall not cause the cancellation of a resolution taken at that      meeting, or the cancellation of processes based on such notice. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 38.7. | Any Shareholder and any member of the Board of Directors may waive      his right to receive notices or waive his right to receive notices during      a specific time period and he may consent that a General Meeting of the      Company or a meeting of the Board of Directors, as the case may be, shall      be convened and held notwithstanding the fact that he did not receive a      notice with respect to it, or notwithstanding the fact that the notice was      not received by him within the required time, in each case subject to the      provisions of any Law prohibiting any such waiver or consent. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 39. | Intentionally      Deleted |
|-----|----------------------------|

| 40. | Intentionally      Deleted |
|-----|----------------------------|

| 41. | Intentionally      Deleted |
|-----|----------------------------|

| 42. | Intentionally      Deleted |
|-----|----------------------------|

| 43. | Compliance |
|-----|------------|

|   | The Shareholders and the Company shall at all times comply with the      terms of the License and of any other telecommunications license held by      the Company. Nothing herein shall be construed as requiring or permitting      the performance of any acts which are inconsistent with the terms of the      License and of any other telecommunications license held by the Company.      If any article of these Articles shall be found to be inconsistent with      the terms of the License and of any other telecommunications license held      by the Company, the provisions of such Article shall be null and void, but      the validity, legality or enforceability of provisions of the other      Articles shall not be affected thereby. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 44. | Limitations on      Ownership and Control |
|-----|-------------------------------------------|

|   | 44.1. | This Article is to ensure that so long as and to the extent that      any Operating Right is conditional on or subject to any conditions or      restrictions relating to ownership or control over the Company imposed by      the Ministry, the Company is so owned and controlled. This Article shall      not affect or influence in any way the interpretation or application of      Article 10A. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 44.2. | In this Article: |
|--------|-------|------------------|

|   | “Affected      Share” means any Share determined to be dealt with as such pursuant      to Article 44.4; |
|--------|----------------------------------------------------------------------------------------------------------------------|

|   | “Affected Share      Notice” means a notice in writing served in accordance with Article      44.5; |
|--------|-----------------------------------------------------------------------------------------------------------------|

|   | “Depositary” means a      custodian or other person appointed under contractual arrangements with      the Company (or a nominee for such custodian or other person) whereby such      custodian or other person holds or is interested in Shares and which      issues securities evidencing the right to receive such Shares; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Depositary      Receipts” means receipts or similar documents of title issued by or      on behalf of a Depositary; |
|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | “Depositary      Shares” means the Shares held by a Depositary or in which a      Depositary is interested in its capacity as a Depositary; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Intervening      Act” means the refusal, withholding, suspension or revocation of      any Operating Right applied for, granted to or enjoyed by the Company, or      the imposition of any conditions or limitations upon any such Operating      Right which materially inhibit the exercise thereof, in either case by any      state, authority or person (including the Ministry) by reason of the      activities of persons holding Shares in and/or controlling the Company; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Ministry”      means the Ministry of Communications and/or Minister of Communications; |
|--------|-----------------------------------------------------------------------------------------------------|

|   | “Operating      Right” means all or any part of any authority, permission, licence      or privilege applied for, granted to or enjoyed by the Company, including      the Licence, for the establishment, subsistence, maintenance and operation      of a mobile radio telephone system using the cellular method and the      provision of mobile radio telephone services to the public in Israel; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Permitted      Maximum” means the maximum aggregate permitted number of Relevant      Shares specified by the Board of Directors in accordance with the terms of      the Licence, any other requirements of the Ministry and any relevant      requirements of Law; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Relevant      Person” means: |
|--------|-------------------------------------------|

|   | (a) | any person who, without the approval of the Ministry, acquires,      directly or indirectly, any Means of Control (as defined in the Licence)      in breach of Section 21 of the Licence other than a person who falls      within Article 10A; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | any Interested Party (as defined in the Licence) who, or who has an      Officer Holder (as defined in the Licence) who, is in breach of Sections      23 or 24 of the Licence other than a person who falls within Article 10A; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Relevant      Share” means any Share (other than a Share removed from the      Relevant Shares Register (defined in Article 44.3.2) pursuant to Article      44.3.5), in which a Relevant Person has an interest or which is declared      to be a Relevant Share pursuant to Article 44.3.4; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 44.3. |   |
|--------|-------|--------|

|   | 44.3.1. | The Board of Directors shall not register a person as a holder of a      Share unless the person has given to the Board of Directors a declaration      (in a form prescribed by the Board of Directors) signed by him or on his      behalf, stating his name, nationality, that he is not a Relevant Person      falling within paragraphs (c) or (d) of the definition of that term and      other information required by the Board of Directors. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 44.3.2. | The Board of Directors shall maintain a register (the “Relevant      Shares Register”), in which shall be entered particulars of any Share      which has been: |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | acknowledged by the holder (or by a joint holder) to be a Relevant      Share; |
|--------|-----|--------------------------------------------------------------------------------|

|   | (b) | declared to be a Relevant Share pursuant to Article 44.3.4; or |
|--------|-----|----------------------------------------------------------------|

|   | (c) | determined to be an Affected Share pursuant to Article 44.4.2.; |
|--------|-----|-----------------------------------------------------------------|

|   | and which has not ceased to be a Relevant Share. The particulars in      the Relevant Shares Register in respect of any Share shall include the      identity of the holder or joint holders and information requested by and      supplied to the Board of Directors. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 44.3.3. | Each registered holder of a Share which has not been acknowledged      to be a Relevant Share who becomes aware that such Share is or has become      a Relevant Share shall forthwith notify the Company accordingly. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 44.3.4. | The Board of Directors may notify in writing the registered holder      of a Share which is not in the Relevant Shares Register and appears to be      a Relevant Share, requiring him to show that the Share is not a Relevant      Share. Any person to whom such notice has been issued may within 21 clear      days after the issue of the notice (or such longer period as the Board of      Directors may decide) represent to the Board of Directors why such Share      should not be treated as a Relevant Share but if, after considering such      representations and other relevant information, the Board of Directors is      not so satisfied, it shall declare such Share to be a Relevant Share and      treat it as such. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 44.3.5. | The Board of Directors shall remove a Relevant Share from the      Relevant Shares Register if the holder of the Relevant Share gives to the      Board of Directors a declaration (in a form prescribed by the Board of      Directors), together with such other evidence as the Board of Directors      may require, which satisfies it that such Share is no longer, or should      not be treated, as a Relevant Share. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 44.4. |   |
|--------|-------|--------|

|   | 44.4.1. | Article 44.4.2 shall apply for so long as the Company holds or      enjoys any Operating Right where the Board of Directors determines that it      is necessary to take steps to protect any Operating Right because an      Intervening Act is contemplated, threatened or intended, may take place or      has taken place; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 44.4.2. | Where a determination has been made under Article 44.4.1, the Board      of Directors shall take such of the following steps as they consider      necessary or desirable to overcome, prevent or avoid an Intervening Act: |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 44.4.2.1. | the Board of Directors may remove any Director from office, by a      resolution passed by a majority of 75 per cent or more of the other      Directors present and voting at the relevant meeting; |
|--------|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 44.4.2.2. | the Board of Directors may seek to identify those Relevant Shares      which gave rise to the determination under Article 44.4.1 and by a      resolution passed by a majority of 75 per cent or more of the Directors      present and voting at the relevant meeting deal with such Shares as      Affected Shares; and |
|--------|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 44.4.2.3. | when the aggregate number of Relevant Shares in the Relevant Shares      Register exceeds the Permitted Maximum, the Board of Directors may deal      with the Relevant Shares which it decides, by a resolution passed by a      majority of 75 per cent or more of the Directors present and voting at the      relevant meeting, are in excess of the Permitted Maximum as Affected      Shares. |
|--------|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 44.5. | The Board of Directors shall give an Affected Share Notice to the      registered holder of any Affected Share and state that Article 44.6 is to      be applied forthwith in respect of such Affected Share. The registered      holder of the Affected Share may within 21clear days after the issue of      the notice (or such longer period as the Board of Directors may decide)      represent to the Board of Directors why such Share should not be treated      as an Affected Share and if, after considering such representations and      other relevant information, the Board of Directors considers that the      Share should not be treated as an Affected Share it shall forthwith      withdraw the Affected Share Notice and Article 44.6 shall no longer apply      to the Share. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 44.6. | An Affected Share in respect of which an Affected Share Notice has      been served shall be treated as a dormant share (as defined in section 308      of the Companies Law) except that the registered holder of the Affected      Share shall continue to have the right to receive dividends and other      distributions of the Company and participate in bonus or rights issues of      the Company in respect of such Share. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 44.7. | In deciding which Shares are to be treated as Affected Shares, the      Board of Directors shall have regard to the Relevant Shares which in its      opinion have directly or indirectly caused the determination under Article      44.4 and the chronological order in which Relevant Shares have been      entered in the Relevant Shares Register (and accordingly treat as Affected      Shares those Relevant Shares entered in the Relevant Shares Register most      recently) except where such criterion would in their opinion be      inequitable, in which event the Board of Directors shall apply such other      criterion or criteria as they may consider appropriate. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 44.8. | Subject to the other provisions of this Article 44, the Board of      Directors shall be entitled to assume without enquiry that: |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | 44.8.1. | all Shares not in the Relevant Shares Register and not falling      within clause 44.8.2 are neither Relevant Shares nor Shares which would be      or be capable of being treated as Affected Shares; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 44.8.2. | all or some specified number of the Shares are Relevant Shares      falling within paragraphs (a)-(b) in the definition of that term if they      (or interests in them) are held by a Depositary, trustee, registration or      nominee company or other agent unless and for so long as, in respect of      any such Shares, it is established to their satisfaction that such Shares      are not Relevant Shares. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 44.9. | Any resolution or determination of, or any decision or the exercise      of any discretion or power by, the Board of Directors or any one of the      Directors under this Article 44 shall be final and conclusive. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 44.10. |   |
|--------|--------|--------|

|   | 44.10.1. | On withdrawal of the determination under Article 44.4.1, the Board      of Directors shall cease to act pursuant to such determination and inform      every person on whom an Affected Share Notice has been served that Article      44.6 no longer applies in respect of such Share. The withdrawal of such a      determination shall not affect the validity of any action taken by the      Board of Directors under this Article whilst that determination remained      in effect and such actions shall not be open to challenge on any ground      whatsoever. |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 44.10.2. | The Board of Directors shall, so long as it acts reasonably and in      good faith, be under no liability to the Company or to any other person      for failing to treat any Share as an Affected Share or any person as a      Relevant Person in accordance with this Article and it shall not be liable      to the Company or any other person if, having acted reasonably and in good      faith it determines erroneously that any Share is an Affected Share, or      any person is a Relevant Person or on the basis of such determination or      any other determination or resolution, they perform or exercise their      duties, powers, rights or discretions under this Article in relation to      such Share. |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 44.11. | A person who has an interest in Shares by virtue of having an      interest in Depositary Receipts shall be deemed to have an interest in the      number of Shares represented by such Depositary Receipts and not (in the      absence of any other reason why he should be so treated) in the remainder      of the Depositary Shares held by the relevant Depositary. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----