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Exhibit 1

|THE COMPANIES ORDINANCE (NEW VERSION)
COMPANY LIMITED BY SHARES
ARTICLES OF ASSOCIATION
OF
ON TRACK INNOVATIONS LTD.
|--------------------------------------------------------------------------------------------------------------------
|                                                                                                                    

# SCHEDULE II EXCLUDED

|1. | The Regulations in Schedule II to the Companies Ordinance (New Version) shall
          not apply to the Company.
|-- | -----------------------------------------------------------------------------------------------------------------

# INTERPRETATION

|2. | In these Articles, unless inconsistent with the subject matter or context, the
          following terms shall bear the meanings assigned to them below:-
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

TERMS
                  MEANINGS

these
Articles  These Articles of Association as originally adopted or as altered from
time to time by Special Resolution.

the
Board  The Board of Directors of the Company.

the
Company   The above-named Company.

the
Directors  The Directors for the time being of the Company.

the
Memorandum  the Memorandum of Association

Month
  Gregorian Month.

the
Office  The registered office for the time being of the Company.

Officer  A
Director, the general manager, the head business manager, the general managers
deputy, other manager directly subject to the general manager, and any such other officer
of the Company, even if his title is different.

Ordinary
Shares  ordinary shares of NIS 0.1 each in the capital of the Company.

the
Register  the Register of members of the Company administered in accordance with
Section 61 of the Statutes.

the
Seal  The Common Seal of the Company.

the Secretary   the
Secretary of the Company nominated under Article 93 below.

the
Statutes  The Companies Ordinance (New Version), 5743-1983, and every amendment
thereto and every other statute for the time being in force concerning limited companies
and affecting the Company or the shares in any stock exchange in which they are traded.

| | Writing
shall include printing and lithography and any other mode or modes of representing or
reproducing words in a visible form.
| | ----------------------------------------------------------------------------------------------------------------------------------

| | Words
importing the singular number only shall include the plural number, and vice versa.
| | -----------------------------------------------------------------------------------------



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| | Words
importing the masculine gender shall include the feminine gender, and words importing
persons shall include corporations and any other legal entity.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------

| | Subject
as aforesaid, any words or expressions defined in the Statutes shall, unless inconsistent
with the subject matter or context, bear the same meanings in these Articles.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# PUBLIC COMPANY

|3. | The
Company is a public company, and accordingly, it shall not have less than           seven
members.
|-- | ------------------------------------------------------------------------------------------------------

# BUSINESS

|4. | The
Board shall be entitled to undertake at such time or times as they shall           think
fit any branch or kind of business which, according to the Memorandum of
          Association of the Company or these Articles, the Company is authorised,
          expressly or impliedly, to undertake, and the Board may suspend or terminate
any           such business, whether such branch or kind of business may actually have
been           commenced or not, so long as the Board may deem it expedient not to
commence or           proceed with such branch or kind of business.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# OFFICE

|5. | The
Office shall be located at a place as the Board shall from time to time
          approve.
|-- | ----------------------------------------------------------------------------------------------

# SHARES

|6. | The authorised share capital of the Company is NIS 3,000,000 divided into
          30,000,000 Ordinary Shares.
|-- | ---------------------------------------------------------------------------------------------------------------

|7. | The Ordinary Shares shall be equally ranked with each other pari passu,
          and shall vest in their holders the following rights:-
|-- | ----------------------------------------------------------------------------------------------------------------------------------------

| | 7.1. | The
right to receive invitations to the general meetings of the Company (annual           and
extraordinary meetings), and to participate and vote in these meetings.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2. | The
right to participate in the distribution of dividends, bonus shares, assets           or
any other distribution of the Company.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------

| | 7.3. | The
right to receive the nominal value thereof upon liquidation of the Company           and
after payment of all other debts of the Company.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------

|8. | The
shares taken by the subscribers to the Memorandum of Association shall be           duly
issued by the Board. Subject as aforesaid, the shares shall be under the
          control of the Board, which may allot and issue the same to such persons, on
          such terms and conditions, in such manner and at such times as the Board shall
          deem fit.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|9. | The Company may pay commission at a rate not exceeding ten percent of the price
          at which the shares are issued to any person in consideration of his subscribing
          or agreeing to subscribe (whether absolutely or conditionally) for any shares in
          the Company or procuring or agreeing to procure subscriptions (whether absolute
          or conditional) for any shares in the Company.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | When any shares are issued for the purpose of raising money to defray the
          expenses of the construction of any works or buildings or the provision of any
          plant which cannot be made profitable for a lengthy period, the Company may,
          subject to the conditions and restrictions mentioned in Section 140 of the
          Statutes, pay interest on so much of such share capital as is for the time being
          paid up for the period, and may charge the sum so paid by way of interest to
          capital as part of the cost of the construction of the work or building or the
          provision of a plant.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11. | If two or more persons are registered as joint holders of any share, any one of
          such persons may give valid and effectual receipts for any dividends or other
          moneys in respect of such share.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12. | No person shall be recognised by the Company as holding any share upon any
          trust, and the Company shall not be bound by or required to recognise any
          equitable, contingent, future, or partial interest in any share or any right
          whatsoever in respect of any share other than an absolute right to the entirety
          thereof by the registered holder.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13. | Every member shall be entitled without payment to receive within two months
          after allotment or registration of transfer (unless the conditions of issue
          provide for a longer interval) one certificate under the Seal for all the shares
          registered in his name, specifying the number and denoting the numbers of the
          shares in respect of which it is issued and the amount paid up thereon. In the
          case of joint holders the Company shall not be bound to issue more than one
          certificate to all the joint holders, and delivery of such certificate to any
          one of them shall be sufficient to all. Every certificate shall be signed by two
          directors or by one Director and countersigned by the Secretary or some other
          person nominated by the Board for that purpose.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|14. | If any share certificate shall be defaced, worn out, destroyed, or lost, it may
          be renewed on such evidence being produced, and such indemnity (if any) being
          given as the Board shall require and (in case of defacement or wearing out) upon
          delivery of the old certificate, and in any case on payment of such sum as the
          Board may from time to time require.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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# LIEN

|15. | Deleted.
|--- | --------

|16. | Deleted.
|--- | --------

|17. | Deleted.
|--- | --------

|18. | Deleted.
|--- | --------

# CALLS FOR PAYMENT ON
SHARES

|19. | The
Board may, subject to the provisions of these Articles, from time to time           call
upon the members respecting all moneys unpaid on their shares as the Board
          think fit, provided that at least fourteen days notice is given prior to
          each call, and each member shall be liable to pay the amount of every call made
          upon him, by instalments (if any) and at the times and places appointed by the
          Board.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20. | No
member shall be entitled to receive any dividend or to exercise any           privileges
as a member until he shall have paid all calls for the time being due           and
payable on every share held by him, whether alone or jointly with any other
          person, together with interest, linkage differentials and expenses (if any).
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21. | A
call shall be deemed to have been made at the time when the resolution of the
          Board authorising such a call was passed.
|--- | -----------------------------------------------------------------------------------------------------------------------------------

|22. | The joint holders of a share shall be jointly and severally liable for the
          payment of all calls and instalments in respect thereof.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------

|23. | If a call or instalment payable in respect of a share is not paid on or before
          the date appointed for payment, the holder, or allottee, of the share shall pay
          linkage differentials and interest on the amount of the call or instalment at
          such rate as the Board shall fix from the day appointed for payment thereof to
          the time of actual payment, provided that, the Board may waive payment of such
          interest and or linkage differentials, wholly or in part.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|24. | Any sum, which by the terms of allotment of a share is made payable upon
          allotment or at any fixed date, whether on account of the amount of the share or
          by way of premium, shall, for the purposes of these Articles, be deemed to be a
          call duly made, and payable on the date appointed for payment, and in the event
          of non-payment the provisions of these Articles as to payment of interest,
          linkage differentials and expenses, forfeiture and the like, and all other
          relevant provisions of these Articles shall apply as if such sum were a call
          duly made and notice in respect of such call had been given in the manner
          provided for in Article 19 above.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|25. | The Board may from time to time make arrangements on the issue of shares that
          differentiate between the holders of such shares in the amount of calls to be
          paid and in the time of payment of such calls.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|26. | The Board may, if they think fit, receive from any member willing to advance the
          same, all or any part of the moneys due upon his shares before payment of such
          amount has been called for, and may pay to such member such interest and linkage
          differentials (as may be agreed between the Board and such member) in respect of
          such advance payment until the date on which such payment would have been due if
          it had not been paid in advance, in addition to the dividends, if any, payable
          upon such shares in respect of which such advance has been made.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# TRANSFER OF SHARES

|27. | Subject to the Statutes and without prejudice to the possibility to transfer
          Ordinary Shares through the clearance system applicable to the Stock Exchange in
          which the Ordinary Shares are traded at any time, shares shall be transferable,
          by means of the delivery of a document in the usual common form, or in such
          other form as the Board shall from time to time approve, to the Office, together
          with the certificate of the shares to be transferred, and such other evidence
          (if any) as the Board may require to prove the title of the intending
          transferor.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|28. | The instrument of transfer of a share shall be executed both by the transferor
          and the transferee and the transferor shall be deemed to remain the holder of
          the share until the name of the transferee is entered in the Register in respect
          thereof.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|29. | A fee, as determined by the Board from time to time, may be charged for
          registration of a transfer.
|--- | -------------------------------------------------------------------------------------------------------------

|30. | The Register shall be closed during the fourteen days immediately preceding
          every Ordinary General Meeting of the Company and at such other times (if any)
          and for such period as the Board may from time to time determine, provided
          always that it shall not be closed for more than thirty days in a calendar year.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|31. | In the case of the death of a Member, the surviving holder or holders, where the
          deceased was a joint holder, and the executors or administrators of the deceased
          where he was a sole or only surviving holder, shall be the only persons
          recognized by the Company as having any title to his shares, but nothing herein
          contained shall release the estate of a deceased joint holder from any liability
          in respect of any share jointly held by him.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|32. | Any person becoming entitled to a share in consequence of the death or
          bankruptcy of any Member, may, upon producing such evidence of title as the
          Board shall require, with the consent of the Board be himself registered as
          holder of the share, or subject to the provisions as to transfers herein
          contained, transfer the same to some other person.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|33. | A person entitled to a share by transmission shall be entitled to receive, and
          may give a discharge for, any dividends or other moneys payable in respect of
          the share, but he shall not be entitled in respect of it to receive notices of,
          or to attend or vote at meetings of the company or, save as aforesaid, to
          exercise any of the rights or privileges of a member unless and until he shall
          become a member in respect of the share.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|34. | Any Shareholder whose holdings increase above 1%, and thereafter each 5%
          threshold (i.e., 5%, 10%, 15%, 20% etc.) of the Companys then outstanding
          share capital is obliged to notify the Company, in writing, of such a change
          within ten days of the date of such change. Shareholders complying with the
          filing requirements of Sections 13(d) and 13(g) of the U.S. Securities Exchange
          Act 1934 and the regulations promulgated thereunder will not be subject to this
          requirement.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|35. | A shareholder who failed to comply with the provisions of Article 34 will be
          denied of his voting rights in the General Meeting in respect of the number of
          shares exceeding the threshold of which crossing was not reported for a period
          determined by the Board in its sole discretion, which period shall be of no less
          than 6 months and no more than 24 months. Unless the circumstances otherwise
          require, the length of such period shall be determined by the Board while taking
          into consideration the scope of the violation of Article 34 and the length of
          the delay in notice thereunder, or the lack of such notice.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# FORFEITURE OF SHARES

|36. | If any member fails to pay the whole or any part of any call or instalment of a
          call on or before the day appointed for the payment thereof, the Board may at
          any time thereafter, during such time as the call or instalment or any part
          thereof remains unpaid, serve a notice on him or on the person entitled to the
          share by transmission requiring him to pay such call or instalment, or such part
          thereof as remains unpaid, together with interest at such rate and linkage
          differentials as the Board shall determine, and any expenses that may have
          accrued by reason of such non-payment.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|37. | If the requirements of any such notice as aforesaid are not complied within the
          seven day period, then any share in respect of which such notice has been given
          may at any time thereafter (but before the payment required by the notice has
          been made), be forfeited by a resolution of the Board to that effect. A
          forfeiture of shares shall include all dividends in respect of the shares not
          actually paid before the forfeiture, notwithstanding that they shall have been
          declared.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|38. | When any share has been forfeited in accordance with these Articles notice of
          the forfeiture shall forthwith be given to the holder of the share or to the
          person entitled to the share by transmission, as the case may be, and an entry
          of such notice having been given, and of the forfeiture with the date thereof,
          shall forthwith be made in the Register opposite to the share, but the
          provisions of this Article are directory only and no forfeiture shall in any
          manner be invalidated by any omission or neglect to give such notice or to make
          such entry aforesaid.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|39. | Notwithstanding any such forfeiture as aforesaid, the Board may, at any time
          before the forfeited share has otherwise been disposed of, annul the forfeiture
          upon the terms of payment of all calls, linkage differentials and interest due
          upon and expenses incurred in respect of the shares and upon such further terms
          (if any) as they shall see fit.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|40. | Every share which shall be forfeited shall thereupon become the property of the
          Company and may be cancelled or sold or reallotted or otherwise disposed of
          either to the person who was the holder thereof prior to the forfeiture or was
          entitled thereto, or to any other person, upon such terms and in such manner as
          the Board shall think fit.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|41. | A shareholder whose shares have been forfeited shall, notwithstanding such
          forfeiture, be liable to pay to the Company all calls made and not paid on such
          shares at the time of forfeiture, as well as linkage differentials and interest
          thereon to the date of payment, in the same manner in all respects as if the
          shares had not been forfeited and to satisfy all the claims and demands (if any)
          which the Company might have enforced in respect of the shares at the time of
          forfeiture, without any deduction or allowance for the value of the shares at
          the time of forfeiture.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|42. | The forfeiture of a share shall involve the extinction at the time of forfeiture
          of all interest in and all claims and demands against the Company in respect of
          the share, and all other rights and liabilities incidental to the share as
          between the shareholder whose share is forfeited and the Company, save only for
          those rights and liabilities as are expressly saved by these Articles, or as are
          imposed or granted by the Statutes in respect of past members.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|43. | A sworn declaration in writing that the declarant is a Director of the Company,
          and that a share has been duly forfeited in pursuance of these Articles and
          stating the date upon which it was forfeited shall, as against all persons
          claiming to be entitled to the share adversely to the forfeiture thereof, be
          conclusive evidence of the facts therein stated, and such declaration, together
          with the receipt of the Company for the consideration (if any) given for the
          share on the sale or disposition thereof, and a certificate of proprietorship of
          share under the Seal delivered to the person to whom the same is sold or
          disposed of, shall constitute a good title to the share ,and such person shall
          be registered as the holder of the share and shall be discharged from all call
          made prior to such sale or disposition, and shall not be bound to see to the
          application to the purchase money (if any) nor shall his title to the share be
          affected by any act, omission or irregularity relating to or connected with the
          proceedings in relation to the forfeiture, sale, re-allotment or disposal of the
          share.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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# ALTERATIONS OF CAPITAL

|44. | The
Company may from time to time by special resolution:-
|--- | ---------------------------------------------------------

| | 44.1. | consolidate
and divide all or any of its share capital into shares of larger           amounts than
its existing shares, or
| | ----- | ---------------------------------------------------------------------------------------------------------------------------

| | 44.2. | cancel
any shares not taken or agreed to be taken by any person, or
| | ----- | -------------------------------------------------------------------

| | 44.3. | divide
its share capital or any part thereof into shares of smaller amounts than           is
fixed by its Memorandum by sub-division of its existing shares or any of           them,
subject nevertheless to the provisions of the Statutes, so that as between           the
resulting shares, one or more of such shares may by the resolution by which
          sub-division is effected, be given any preference or advantage as regards
          dividend, capital, voting or otherwise over the others or any other of such
          shares, or
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 44.4. | reduce
its share capital and any capital redemption reserve fund in any way that           may
be considered expedient and in particular exercise any or all of the powers
          conferred by Section 151 of the Statutes, or any statutory modification
thereof.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# INCREASE OF CAPITAL

|45. | The Company may from time to time by Special Resolution, whether all the shares
          for the time being authorised shall have been issued or all the shares for the
          time being issued shall have been fully paid-up or not, increase its share
          capital by the creation of new shares, such new capital to be of such amount and
          to be divided into shares of such respective amounts and (subject to any special
          rights for the time being attached to any existing class of shares) to carry
          such preferential, deferred or other special rights (if any) or to be subject to
          such conditions or restrictions (if any) in regard to dividends, return of
          capital, voting or otherwise as the General Meeting resolving upon such increase
          directs.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|46. | Except so far as otherwise provided by the Statutes or pursuant to these
          Articles or by the conditions of issue, any new share capital shall be
          considered as part of the original share capital of the Company, and shall be
          subject to the same provisions with reference to the payment of calls, lien,
          transfer, transmission, forfeiture and otherwise as are applicable to the
          original share capital.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# MODIFICATION OF CLASS
RIGHTS

|47. | If at any time the share capital is divided into different classes of shares,
          the rights attached to any class (unless otherwise provided by the terms of
          issue of the shares of that class) may be varied with the consent in writing of
          the holders of three-fourths of the issued shares of that class, or with the
          sanction of an extraordinary resolution passed at a separate General Meeting of
          the holders of the shares of that class. The provisions of these Articles
          relating to the General Meetings shall mutatis mutandis apply to every
          such separate General Meeting, save that the necessary quorum shall be at least
          two persons holding, or representing by proxy, one-third of the issued shares of
          the class and that any holder of shares of the class present in person or by
          proxy may demand a poll.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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# GENERAL MEETINGS

|48. | General Meetings shall be held at least once in every calendar year at such
          time, not being more than fifteen months after the holding of the last preceding
          General Meeting, and at such place as may be determined by the Board. Such
          General Meetings shall be called Ordinary Meetings
          and all other meetings of the Company shall be called Extraordinary
          Meetings.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|49. | The Board may, whenever they think fit, and they shall upon such requisition in
          writing as provided by Section 109 of the Statutes, convene an Extraordinary
          Meeting. Any such requisition shall state the objects for which the meeting is
          to be called, shall be signed by the requisitioners, and must be deposited at
          the office of the Company. Such requisition may consist of several documents in
          like form, each signed by one or more requisitioners. If the Board do not within
          twenty-one days from the date of the deposit of such requisition proceed to
          convene a meeting, the requisitioners, or any of them representing more than
          one-half of the total voting rights of all of the total voting rights of all of
          the requisitioners, may themselves convene the meeting, but any meeting so
          convened shall not be held after three months from the date on which the
          requisition was deposited, as aforesaid, at the office of the Company.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|50. | Subject to the provisions herein relating to Special Resolutions, not less than
          fourteen days notice, specifying the place, the day and the hour of an
          Ordinary or Extraordinary Meeting, and in the case of special business the
          general nature of such business, shall be given in the manner hereinafter
          mentioned to such members as are under the provisions of these Articles entitled
          to receive notices from the Company.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|51. | Whenever it is proposed to pass a Special Resolution twenty-one days
          notice of the General Meeting convened to pass such resolution shall be given;
          provided that the accidental omission to give such notice to, or the non-receipt
          of such notice by, any member shall not invalidate any resolution passed or
          proceedings at any such meeting, and, with the consent of all the members for
          the time being entitled to receive notices of meetings, a meeting may be
          convened upon a shorter notice or without notice and generally in such manner as
          such members may approve.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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# PROCEEDINGS AT GENERAL
MEETINGS

|52. | The business at an Ordinary Meeting shall be to elect the Directors, to appoint
          the auditors of the Company (the Auditors), toreceive
          and consider the profit and loss account, the balance sheet, and the ordinary
          reports of the Board and Auditors, and to fix the remuneration of the Board and
          Auditors. All other business shall be deemed special and shall be transacted at
          an Extraordinary Meeting provided that it shall be permitted to consider any
          special matter at the Ordinary Meeting, when the required notice of such matter
          has been included in the notice of such Ordinary Meeting.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|53. | Any member entitled to be present and to vote at a meeting may submit to any
          General Meeting any resolution which is relevant to the objects for which the
          meeting is convened, provided that within the prescribed time before the day
          appointed for the meeting he shall have served upon the company a notice in
          writing signed by him containing the proposed resolution, and stating his
          intention to submit the same. The aforementioned prescribed time shall be such
          that, between the date on which the notice is served or deemed to be served, and
          the day appointed for the meeting, there shall be not less than four and not
          more than fourteen intervening days.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|54. | Upon receipt of any such notice as set out in the immediately preceding Article,
          the Secretary, or if no Secretary has been appointed, the person authorised by
          the Board so to act, shall, in any case where the notice of intention is
          received before the notice of the meeting is dispatched to the members, include
          it in the notice of the meeting and shall, in any other case, issue, as quickly
          as possible, to the members entitled to notice of the meeting, notice that such
          a resolution will be proposed.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|55. | No business shall be transacted at any General Meeting unless a quorum is
          present when the meeting proceeds to business. The quorum at a General Meeting
          (whether an Ordinary Meeting or an Extraordinary Meeting) shall be two members
          present in person or by proxy holding at least 25% of the issued and outstanding
          Ordinary Shares of the Company; provided, however that as long as the Company is
          listed on National Association of Securities Dealers Automated Quotation System
          (NASDAQ), the quorum at such General Meeting (whether an Ordinary
          Meeting or an Extraordinary Meeting) shall be two members present in person or
          by proxy holding at least 33 1/3% of the issued and outstanding Ordinary Shares
          of the Company or such higher percentage as NASDAQ may impose on listed
          companies from time to time so long as such higher percentage is in effect.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|56. | If within half an hour from the time appointed for the holding of a General
          Meeting a quorum is not present, the meeting, if convened on the requisition of
          members, shall be dissolved. In any other case it shall stand adjourned to the
          same day in the next week (or the business day following such a day, if such a
          day is not a business day) at the same time and place and if at such adjourned
          meeting a quorum is not present within half an hour from the time appointed for
          holding the meeting, the members then present at such adjourned meeting shall
          constitute a quorum.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|57. | The Chairman (if any) of the Board shall preside at every General Meeting, but
          if there shall be no such Chairman or if at any meeting he shall not be present
          within fifteen minutes after the time appointed for holding the same, or shall
          be unwilling to act as Chairman, the members present shall choose one Director
          present at the aforesaid General Meeting or if no Director be present, or if all
          the Directors present decline to take the chair, they shall choose some members
          present at the aforesaid General Meeting to be Chairman of the meeting.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|58. | The Chairman, may, with the consent of any meeting at which a quorum is present
          and shall if so directed by the meeting, adjourn any meeting from time to time
          and from place to place as the meeting shall determine. Whenever a meeting is
          adjourned for ten days or more, notice of the adjourned meeting shall be given
          in the same manner as in the case of an original meeting. Save as aforesaid, no
          member shall be entitled to any notice of an adjournment or of the business to
          be transacted at an adjourned meeting. No business shall be transacted at any
          adjourned meeting other than the business which might have been transacted at
          the meeting from which the adjournment took place.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|59. | At all General Meetings a resolution put to the vote of the meeting shall be
          decided on a show of hands unless before or upon the declaration of the result
          of the show of hands a poll be demanded in writing by the Chairman (being a
          person entitled to vote) or by at least two members present, or by a holder or
          holders in person or by proxy of at least a one-twentieth part of the issued
          Ordinary Share capital of the Company, and, unless a poll be so demanded, a
          declaration by the Chairman of the Meeting that a resolution has been carried,
          or has been carried unanimously or by a particular majority, or lost, or not
          carried by a particular majority, shall be conclusive, and an entry to that
          effect in the minute book of the Company shall be conclusive evidence thereof,
          without proof of the number of proportion of the votes recorded in favour of or
          against such resolution.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|60. | If a poll be demanded in the manner aforesaid, it shall be taken forthwith, and
          the result of the poll shall be deemed to be the resolution of the meeting at
          which the poll was demanded.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|61. | The demand of a poll shall not prevent the continuance of a meeting for the
          transaction of any business other than the question on which a poll has been
          demanded.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|62. | In the case of an equality of votes either on a show of hands or a poll, the
          Chairman of the meeting shall not be entitled to a further or casting vote.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

# VOTES OF MEMBERS

|63. | Subject and without prejudice to any special privilege or restrictions for the
          time being affecting any special class of shares for the time being forming part
          of the capital of the Company, every member shall have one vote for every
          Ordinary Share of which he is the holder, whether on a show of hands or a poll.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|64. | If any member be of unsound mind or legally incompetent, he may vote through his
          custodian, guardian (natural or legal), receiver, administrator or other legal
          curator and such last-mentioned persons may give their votes either personally
          or by proxy.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|65. | If two or more persons are jointly entitled to a share, then in voting upon any
          question the vote of the senior who tenders a vote, whether in person or by
          proxy, shall be accepted to the exclusion of the votes of the other registered
          holders of the share, and for this purpose seniority shall be determined by the
          order in which the names stand in the Register.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|66. | Votes, whether on a show of hands or a poll, may be given either personally or
          by proxy. A proxy need not be a member of the Company.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------

|67. | The instrument appointing a proxy shall be in writing under the hand of the
          appointor or of his attorney duly authorised in writing, or if such appointor is
          a corporation, under its common seal, if any, and if none, then under the hand
          of some officer duly authorised in that regard.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|68. | A vote given in accordance with the terms of an instrument of proxy shall be
          valid notwithstanding the previous death or legal incompetence of the principal
          or revocation of the proxy or transfer of the share in respect of which the vote
          is given unless a notice in writing of the death, legal incompetence, revocation
          or transfer shall have been received at the Office before the meeting. Provided
          that if a poll shall be directed, a notice in writing revoking an instrument of
          proxy shall be effective if such notice shall be under the hand of the appointor
          and shall be received at the office not later than one hour before the
          commencement of the poll.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|69. | The instrument appointing a proxy, together with the power of attorney or other
          authority (if any) under which it is signed or a notarially certified copy, or a
          copy certified by a lawyer of such power of attorney, shall be deposited at the
          Office or at such other place or places, whether in Israel or elsewhere, as the
          Board may, from time to time, either generally or in a particular case of class
          of cases, prescribe, at least forty-eight hours before the time appointed for
          holding the meeting or adjourned meeting at which the person named in such
          instrument proposes to vote, failing which the person so named shall not be
          entitled to vote in respect thereof, provided that (unless a longer period for
          its validity is specified therein), no instrument appointing a proxy shall be
          valid after the expiration of twelve months from the date of its execution.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|70. | Any instrument appointing a proxy (whether for a specified meeting or otherwise)
          shall be in the following form or as near thereto as circumstances will admit:-
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | "I, the undersigned, of __________ , a member of __________ and entitled
to _ votes hereby appoint __________ of __________ , and failing him of _ to
vote for me and on  my behalf at the (Ordinary, Extraordinary or Adjourned,
as the case may be) General Meeting of the Company to be held on the __________  day of
__________ and at every adjournment thereof.       As Witness my hand this
__________ day of __________ 19__."
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|71. | Subject to the provisions of the Statutes, a resolution in writing signed by the
          holder or holders of all the shares of the Company for the time being issued and
          entitled to vote in respect thereof at General Meetings of the Company shall be
          as valid and effectual for all purposes as a resolution passed at a General
          Meeting of the Company duly convened, held and constituted for the purpose of
          passing such resolution. Such a resolution may consist of several documents in
          identical form, each signed by one or more of the members.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# DIRECTORS

|72. | Subject
to the Statutes, the Board shall not consist at any time of more than           nine (9)
members, of which a majority shall be non-executive directors. The           Directors
shall be appointed, removed or replaced by a majority vote of the           Shareholders
of the Company present (in person or by proxy) in the General           Meeting of the
Company. Subject to the Statutes and Article 74 and except for           the Founders
(that subject to Articles 74.2  74.6 are appointed for an           unlimited
duration), each Director shall hold office until the first General           Meeting of
the Company to be held following termination of the thirty six (36)           month
period commencing on such Directors appointment. Without derogation           from
the above the Founders may not be replaced or removed unless by an           affirmative
vote of 75% (seventy five percent) of the Companys           shareholders entitled
to vote and voting in person or by proxy, at a General           Meeting of which notice
was duly given. Subject to the Statutes, a Director may           be elected for
consecutive terms. In this Article, the term Founders shall mean           Oded Bashan
and Ronnie Gilboa.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|73. | Subject
to contracts (if any) between the Company and the Directors or any of           them and
the Statutes, the remuneration of the Directors shall be such sum (if           any) as
shall from time to time be decided by the Company in General Meeting,           and such
remuneration shall be divided amongst the Directors as the Company in           General
Meeting shall determine, or failing agreement, equally. The Directors           and their
alternates and proxies shall also be entitled to reimbursement of all
          reasonable travelling and hotel expenses (local or overseas and including
          airfare) incurred by them respectively in or about the performance of their
          duties as Directors, including their expenses of travelling to and from Board
          Meetings. If by any arrangement with the Board, any Director shall perform or
          render any special duties or services outside his ordinary duties as a
Director,           the Board may pay him special remuneration, in addition to his
ordinary           remuneration, and such special remuneration may be by way of salary,
commission,           participation in profits, or otherwise as may be arranged, as the
Board shall           determine all subject to the provisions of the Statutes with regard
to such           matters.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|74. | Subject
as herein otherwise provided or to the terms of any subsisting           agreement, the
office of a Director shall be vacated:-
|--- | ---------------------------------------------------------------------------------------------------------------------------------------

| | 74.1. | Unless
otherwise stated in Article 72 above, in the first General Meeting           following 36
months from his appointment, unless he is re-elected in such           meeting.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 74.2. | if
he be found to be of unsound mind or becomes legally incompetent.
| | ----- | --------------------------------------------------------------------

| | 74.3. | If
he was found guilty of a criminal offence with moral turpitude, by a           competent
court of law.
| | ----- | ---------------------------------------------------------------------------------------------------------

| | 74.4. | if
by notice in writing given to the Company he           resigns his office.
| | ----- | -----------------------------------------------------------------------------

| | 74.5. | if
he be removed by the General Meeting in accordance           with Article 72 above.
| | ----- | --------------------------------------------------------------------------------------

|75. | Subject
at all times to the requirements of the           Statutes, a Director may hold any other
office or place of profit under the Company (except that of Auditor) in conjunction with
his office of Director, and on such terms as to remuneration and otherwise as the Board
shall approve.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# MANAGING DIRECTOR

|76. | Subject at all times to the requirements of the Statutes, the Board may from
          time to time appoint any one or more of the Directors to be Managing Director or
          Managing Directors for such period and upon such terms as they think fit, and
          such powers may be made exercisable for such period or periods and upon such
          conditions and subject to such restrictions and generally upon such terms as to
          remuneration and otherwise as they may determine. The remuneration of a Managing
          Director may be by way of salary or commission or participation in profits, or
          by any or all of these modes as the Board may determine.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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# POWERS AND DUTIES OF
DIRECTORS

|77. | The business of the Company shall be managed by the Board who may pay all such
          expenses of and preliminary and incidental to the promotion, formation,
          establishment and registration of the Company as they think fit, and may
          exercise all such powers of the Company and perform on behalf of the Company all
          such acts as may be exercised and performed by the Company and as are not by the
          Statutes or by these Articles required to be exercised or performed by the
          Company in General Meeting, subject, nevertheless, to the provisions of the
          Statutes and of these Articles and to such regulations (being not inconsistent
          with the aforesaid provisions) as may be prescribed by the Company in General
          Meeting; but no regulation made by the Company in General Meeting shall
          invalidate any prior act of the Board which would have been valid if such
          regulation had not been made.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|78. | Subject to Statutes and to the provision of contracts, if such will exist,
          between the Company and the Board or any Director thereof, no Director or any
          other Officer in the Company will be considered unqualified, due to his office,
          to enter into contracts with the Company, whether as a vendor, a buyer, or in
          any other way, and such a contract or any other contract or arrangement made by
          the Company or in its name in which a Director is or will be interested directly
          or indirectly will not be void.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ALTERNATE DIRECTORS

|79. | A
Director may from time to time by writing under his hand appoint a person to
          act as alternate in his place at any meeting of the Board (or of a Committee of
          which such appointor is a member) at which he is not personally present and
such           appointment shall be valid. Every such appointee while he holds office as
an           alternate shall be entitled to notice of meetings of the Board and of such
          Committee as aforesaid, and to attend and vote thereat accordingly, provided
          that not more than one alternate appointed to act in place of a Director
          exercising this power may attend or vote at the same meeting. Any alternate
          appointed by this Article may exercise all powers and privileges of the
Director           appointing him at any meeting at which he attends in place of such
Director, but           he shall ipso facto vacate his office if and when the Director
appointing him           vacates office as a Director or removes such alternate from
office by writing           under his hand. Alternates shall not be entitled to receive
any remuneration           from the Company. However, in a written accord between them
and their appointor,           a copy of which will be delivered to the Company, they may
receive, in place of           their appointor, the remuneration or expenses the
appointor would have received           in the period of alternation, and this payment
will replace the payment to the           appointor.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|79A. | External Directors are not permitted to appoint an alternate.
|---- | -------------------------------------------------------------

# DIRECTORS PROXIES

|80. | A Director and any alternate may attend and vote by proxy at any meeting of the
          Board or of a committee of Directors provided that such proxy has been appointed
          in writing under the hand of his appointor and such appointment may be general
          or for any particular meeting or meetings. A proxy so appointed shall not be
          entitled to vote in place of his appointor at any meeting of the Board or of a
          Committee at which the Director appointing him is present in person, represented
          by his own alternate or (in the case of a proxy appointed by an alternate) at
          which the alternate Director by whom he is appointed is present or at which the
          Director by whom he is appointed is present or at which the Director by whom
          such alternate was appointed is either present in person or represented by his
          alternate.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# PROCEEDINGS OF
DIRECTORS

|81. | The Directors may meet together for the dispatch of business, adjourn and
          otherwise regulate their meetings as they think fit. A quorum for the
          Boards meetings will be two Directors attending themselves or represented
          by alternates or proxies. A Boards meeting can be effected by a telephonic
          conference-call between all Directors, which will be approved in a protocol
          written by the meetings chairman. Questions arising at any meeting shall
          be decided by a majority of votes. For the purpose of this Article two or more
          Directors or alternates may be represented by the same proxy and any such
          representatives shall be entitled to a separate vote for each Director or
          alternate whom he represents in addition to any vote to which he may be entitled
          in his own right (if he has such right).
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|82. | The board may from time to time elect a Chairman (who shall preside the meetings
          of the Board) and determine the period for which he is to hold office. If no
          such Chairman shall be elected, or if at any meeting the Chairman shall not be
          present within five minutes after the time appointed for holding the same, the
          Directors present shall choose someone of their number to be the Chairman of
          such meeting.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|83. | The Chairman of any meeting of the Board shall not have a second or casting
          vote.
|--- | -------------------------------------------------------------------------------------------

|84. | A Director may, at any time, summon a meeting of the Directors.
|--- | ---------------------------------------------------------------

|85. | The Board may delegate any of its powers to committees consisting of such member
          or members as the Board may decide, provided that the majority members of such
          committee shall be Directors. Any committee so formed shall in the exercise of
          the powers so delegated conform to any regulations that may be imposed on it by
          the Board.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|86. | A committee may elect a Chairman to its meetings. If no such Chairman is
          elected, or if at any meeting the Chairman is not present within five minutes
          after the time appointed for holding the same, the committee members present may
          choose one of their number to be the Chairman of the meeting.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|87. | A committee may meet and adjourn as the committee members think proper.
          Questions arising at any meeting shall be determined by a majority of votes of
          the committee members present, and in case of an equality of votes, the chairman
          shall not have a second or casting vote.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|88. | All acts carried out bona fide by any meeting of the Board or of a
          committee or by any person acting as a Director or alternate or as a proxy for a
          Director or alternate shall notwithstanding that it may afterwards be discovered
          that there are some defect in the appointment of any such Director or person
          acting as aforesaid, or that they or any of them were disqualified, be as valid
          as if every such person had been duly appointed and was qualified to be a
          Director or alternate or proxy as the case may be. The Board may ratify any act
          the performance of which at the time of the ratification was within the scope of
          the authority of the Board. The General Meeting shall be entitled to ratify any
          act done by the Board of Directors and/or any committee of the Board without
          authority, or acting ultra vires its authority, or which was tainted by
          some other defect. From the time of the ratification, every act ratified as
          aforesaid, shall be treated as though lawfully performed from the outset.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|89. | The Board shall cause proper minutes to be made of all General Meetings of the
          Company and also of all appointments of Officers, and of the proceedings of all
          meetings of the Board, and committees, and of the attendances thereat, and all
          business transacted at such meetings, and any such minute of any meeting, if
          purporting to be signed by the Chairman of such meeting, or by the Chairman of
          the next succeeding meeting, shall be conclusive evidence without any further
          proof of the facts therein stated.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|90. | A resolution in writing signed by all the Directors, their alternates or proxies
          (or as the case may be, all the members of a committee) entitled to participate
          in such meeting and vote in the matter brought to a decision shall be as
          effective for all purposes as a resolution passed at a meeting of the Board or
          committee, duly convened, held and constituted. Such resolution may consist of
          several documents (including facsimile, telex or cable) in identical form, each
          signed by one or more Directors (and as the case may be one or more committee
          members). Every notice of a Board or committee meeting may be given orally, by
          telex, facsimile, letter, cable or telephone call, provided that such notice is
          given at least 24 hours prior to the time of the meeting, save when all the
          Directors (or as the case may be all the committee members) shall agree to a
          shorter period of notice.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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# THE SEAL AND
SIGNATURES BINDING THE COMPANY

|91. | The Seal of the Company shall be affixed only by authority of a resolution of
          the Board and in the presence of such person or persons as the Board shall
          designate by such resolution. The Board shall have power to appoint from time to
          time a person or persons whose signature or signatures, together with the rubber
          stamp of the Company shall be binding upon the Company; and that could be
          applied always or concerning only a certain matter or certain matters, as the
          Board shall decide from time to time.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# BRANCH REGISTERS

|92. | Subject to and in accordance with the provisions of the Statutes, the Company
          shall be at liberty to cause to be kept in any other country to which the said
          provisions may be extended, a branch register or registers of members resident
          in such other country as aforesaid, and to exercise all the other powers
          mentioned in the Statutes relating to such branch registers.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# SECRETARY

|93. | The Board may appoint a Secretary of the Company on any terms they think proper.
          The Board may from time to time, by resolution, appoint a temporary substitute
          for the Secretary who shall be deemed to be the Secretary during the term of his
          appointment.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# DIVIDENDS, FUNDS AND
CAPITALISATION OF FUNDS AND PROFITS

|94. | The Board may, before proposing any dividend, set aside and carry to reserve
          such sums out of the Profits of the Company, as it deems expedient. All sums
          carried shall, at the discretion of the Board, be applicable for any needs, or
          for equalizing dividends, or for special dividends, or for repairing,
          maintaining, improving or substitution of any properties of the Company or for
          any other purpose. The term dividend as used herein shall have the meaning
          ascribed to it in the Companies Law 5759-1999.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|95. | The Board shall be entitled to invest sums that were set apart as stated in
          Article 94 herein above in such investments as they deem fit, and to take care
          of such investments or vary them from time to time or to use such sums for other
          purposes, as they deem fit, and may divide the reserves into different special
          reserve funds, as they deem fit, and to use any fund or part thereof in the
          Companys business without it being necessary to hold them separately from
          the Companys other assets.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|96. | Subject to Article 97 below, and if the Board will not decide otherwise, the
          Company will distribute yearly its profits available for dividends. No dividends
          shall be paid save fromfunds legally available for dividends.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|97. | The authority to declare and pay dividends or distribute bonus shares, whether
          interim or final, shall be with the Board only.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------

|98. | Dividend will be paid or distributed, as the case may be, to the members
          according to the sum of their nominal and paid up capital or the sum considered
          as paid up capital for their shares, without consideration of any premium paid
          upon them. However, a sum that was paid up on the account of a share before its
          payment was demanded or before its pay date and the Company pays for it interest
          or linkage differentials will not be considered for the sake of this Article as
          a sum paid up on the account of a share.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|99. | The Board may from time to time, in its discretion, pay to the members on
          account of the next forthcoming dividend such interim dividends as is in its
          judgment justified having regard to the profits of the Company.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|100. | Except if the rights attached to any shares or their conditions of issue state
          otherwise, all the dividends, of shares that were not fully paid up in a certain
          period for which the dividends are paid, will be paid according to the sums that
          were paid up or credited as paid up on the shares nominal value for any
          part of the said period on a Pro Rata Temporisbasis.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|101. | Dividends or other benefits in regard to shares will not carry interest or
          linkage differentials.
|---- | -----------------------------------------------------------------------------------------------------------

|102. | The Board may deduct from all dividends or other benefits due to any member, any
          debt or liability owed by such a member to the Company in regard to the relevant
          shares in respect of which such dividend or other benefit is payable, whether
          due for payment or not.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|103. | The Board may retain any dividends or bonus Shares or other benefits on which
          the Company has a lien and may apply the same in or towards satisfaction of the
          debts, liabilities or engagements in respect of which the lien exists.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|104. | Following the Boards recommendation, the General Meeting may decide that
          dividends will be paid fully or partially in the way of specific partition of
          the Companys assets, including fully paid shares, debentures or a series
          of debentures of the Company and of any other company, or in one or several of
          these ways.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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105.

| | 105.1. | The
Company in General Meeting may, on the recommendation of the Board, at any           time
and from time to time, pass a resolution that any of the sums for the time
          being standing to the credit of the Companys reserve fund or the fund of
          premiums received on the issue of shares, or capital redemption fund or funds
          created on an equitable basis from the profits of a subsidiary, or from a
          valuation of the property of such subsidiaries or from any other funds being
          capitalized, and that such sum be set free for distribution, subject to these
          Articles of Association and according to them, amongst the shareholders in the
          proportions to which they are entitled according to these Articles of
          Association in condition that they will not be paid in cash but will be used
for           the full payment, whether by their nominal value or in addition of a
premium,           that will be decided by the Company  of shares that were not yet
issued or           of the Companys debentures that will be allotted and
distributed by the           same Members in the said proportion as shares or debentures
that were fully           paid-up, and the Board should apply such a resolution.
| | ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 105.2. | The
Board may decide that bonus shares will be the same kind of shares that           provide
their holders the right to participate in the distribution, or decide           that
bonus shares will be of another kind.
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|106. | 
|---- | 

| | 106.1. | In
any case that the Company will issue bonus shares by way of capitalizing
          profits or funds on a date in which securities issued by the Company and
          providing their holders rights to convert them to shares in the Companys
          share capital or options to purchase shares in the Companys capital will
          be in circulation (and these aforesaid conversion rights or options will be
          hereinafter called the Rights), the Board may (in the case
          that the Rights or any part of them will not be accorded in any other way
          according to their issuance terms) transfer to a special fund which will be
          designated for distribution of future bonus shares (referred to by any name
          which the Board shall deem fit, hereinafter called the Special
          Fund) a sum equal to the indicated sum that those entitled for all or
          part of the Rights would have received due to the issuance of bonus shares if
          they would have taken advantage of their Rights before the date fixing the
right           to receive bonus shares, including Rights to fractions of bonus shares,
and in           the case of a second or other distribution of bonus shares  of
which the           Company acts according to this Article  including a right
created by any           preceding distribution of bonus shares.
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 106.2. | In
the case of the allotment of shares by the Company due to the exploitation of
          the Rights by their owners in cases in which the Board enacted a transfer to
the           Special Fund according to these Rights, and according to the aforesaid
Article           106.1 above, the Company will allot a shareholder as stated above, in
addition           to the shares for which he is entitled due to his exploitation of his
Rights,           such a number of fully paid-up shares, that their nominal value will be
equal to           the sum transferred to the Special Fund due to his Rights, and that,
through the           capitalization of a fitting sum from the Special Fund, and the
Board may decide           upon the way to treat the Rights for fractions of shares as
they deem fit.
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 106.3. | If
after the performance of any transfer to the Special Fund, the Rights will           have
expired or the period for exploitation of the Rights for which the transfer           was
made will expire without such exploitation having occurred, then any sum           that
was transferred to the Special Fund due to the aforesaid unexploited rights
          will be set free, and the Company will be able to treat the aforesaid free sum
          in any way it could have treated it if it was not transferred to the Special
          Fund.
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|107. | For the purpose of performing any resolution on the distribution of shares or
          debentures by way of capitalizing profits as stated above, the Board may:-
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 107.1. | Settle
as it deems expedient any difficulty that arises in respect to the           distribution
and realize all the actions they deem fit to overcome such a           difficulty.
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 107.2. | Issue
fractional certificates or decide that fractions in an amount less than           the
amount that shall be decided by the Board will not be taken into           consideration
for the adjustment of the Rights of the shareholders, or to sell           share
fractions and pay the net consideration to those entitled.
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 107.3. | Sign
or appoint any person to sign on behalf of the shareholders such contract           or
any other document that would be needed to make the distribution valid, and
          they may especially sign or appoint any person who will be capable of signing
          and delivering a contract in accordance with Section 130 of the Statutes.
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 107.4. | To
make any arrangement or settlement that will be needed at the Boards
          discretion to enable the distribution.
| | ------ | -------------------------------------------------------------------------------------------------------------------------

|108. | The Board may, as they deem fit, appoint trustees or nominees for the holders of
          the shares certificates that for a period, as the Board shall decide, did
          not apply to the Company receiving dividends, shares or debentures from the
          capital, or other benefit rights, and for the shareholders who did not notify
          the Company that their address has been changed, and did not apply to the
          Company to receive dividends, shares or debentures from the capital, or other
          benefit rights, in the aforesaid period. These trustees or nominees will be
          appointed for the realization, collection or acceptance of dividends, shares or
          debentures from the capital and rights, and for signing on pre-issued shares
          proposed to the shareholders, but they may not transfer the shares for which
          they were appointed or to vote on their power. In all the terms of trust or
          appointment of nominees, the trustees or the nominees will be obliged to return
          to the same shareholder the share in question and all the other rights held in
          trust by them for him (all according to the matter). Every activity and
          arrangement that will be done by these nominees or trustees and any agreement
          between the Board and these nominees or trustees will be valid and will bind all
          those concerned.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|109. | The Board may fix from time to time the mode of payment of dividend or
          distribution of bonus shares, and the related arrangements. Notwithstanding the
          generality of the aforesaid, the Board may pay any dividend or amounts due and
          payable to shareholders by cheque sent through the post to the registered
          address of the member or person entitled. Every such despatch of a cheque shall
          be made at the shareholders risk.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|110. | In such cases that the Board will fix the payment of dividends, shares or
          debentures from the capital, or rights to sign on pre-issued shares that are
          proposed to shareholders, against the delivery of the suitable coupon attached
          to any share certificate, this payment, distribution or donation of a signing
          right against the coupon to him who holds such a coupon, will be a good
          discharge to the Company of all that is related to this action towards him who
          claims right for such payment, distribution or donation of a signing right, as
          the matter is.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|111. | If two or more people are registered as joint holders of a share, each of them
          may issue a value receipt for any dividend, shares or debentures from the
          capital, and for other sums of money or benefit rights related to the share.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ACCOUNTS

|112. | The Board shall cause true accounts to be kept of:-
|---- | ---------------------------------------------------

| | 112.1. | The
assets and liabilities of the Company.
| | ------ | ------------------------------------------

| | 112.2. | All
sums of money received and expended by the Company and the matters in           respect
of which such receipts and expenditure take place.
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------

| | 112.3. | All
sales and purchases of goods by the Company.
| | ------ | ------------------------------------------------

|113. | The
books of account shall be kept at the Office or at such other place as the
          Board shall think fit and shall always be open to the inspection of the
          Directors.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|114. | The
Board shall from time to time determine whether, in any particular case or
          class of cases or generally, and to what extent and at what times and places
and           under what conditions or regulations the accounts and books of the Company,
or           any of them, shall be open to the inspection of members, and no member (not
          being a Director) shall have any right of inspection of any account or book or
          document of the Company, except as conferred by the Statutes or authorized by
          the Board, or by a resolution of the Company in General Meeting.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|115. | At least once in every calendar year the Board shall lay before the Company in
          General Meeting a profit and loss account for the period since the preceding
          account or (in the case of the first account) since the incorporation of the
          company, made up to a date not earlier than the date of the meeting by more than
          twelve months in accordance with the Statutes in that regard, a balance sheet in
          respect of the date of the profit and loss report shall have attached thereto
          the Auditors report and shall be accompanied by a report of the Board as
          to the state of the Companys affairs, and the amount (if any) which it
          recommends to be paid by way of dividend and the amount (if any) which it
          recommends to carry to reserve.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# NOTICES

|116. | A notice required hereunder or any other document may be served by the Company
          either (i) to all members personally or (ii) by sending it through the post in a
          prepaid letter addressed to all members at their registered addresses as
          appearing in the register of members or (iii) to all memebers by facsimile (with
          a certificate of proper transmission) according to the facsimile number as
          appearing in the register of members, or (iv) by the sole manner of publishing
          such notice according to the laws applicable to the Company.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|117. | All notices directed to be given to the members shall with respect to any shares
          to which persons are jointly entitled, be given to whichever of such person is
          named first in the register of members and any notice so given shall be
          sufficient notice to the holders of such share.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|118. | Any member described in the Register by an address whether within or outside
          Israel, shall be entitled to have served upon him at such address any notice to
          which he would be entitled under these Articles, but save as aforesaid, no
          member other than a member described in the Register by an address shall be
          entitled to receive any notice from the Company.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|119. | A notice may be given by the Company to the persons entitled to any share, in
          consequence of the death or bankruptcy of a member by sending it through the
          post in a prepaid letter addressed to them by name or by the titles of
          representatives or trustees of such deceased or bankrupt member, at the address
          (if any) supplied for the purpose by such persons as aforesaid or (until such
          address has been supplied) by giving the notice in the manner in which the same
          would have been given if the death or bankruptcy had not occurred.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|120. | Any notice or other document if served or sent by post shall be deemed to have
          been served or delivered at the time of postage, and in proving such services or
          sending it shall be sufficient to prove that the letter containing the notice or
          document was properly addressed and put into the post office as a prepaid
          letter. Any entry made in the ordinary course in any postal book of the Company
          shall be prima facie evidence of such posting therein recorded.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|121. | Where a given number of days notice or notice extending over any period is
          required to be given, the day of service shall be counted in such number or
          other period.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# RECONSTRUCTION

|122. | On any sale of the undertaking of the Company, the Board or the liquidators on a
          winding-up may, if authorized by special resolution of the Company, accept fully
          paid or partly paid up shares, debentures or securities of any other company,
          whether Israeli or foreign, either than existing or to be formed for the
          purchase in whole or in part of the property of the Company, and the Board (if
          the profits of the Company permit), or the liquidators (on a winding-up), may
          distribute such shares or security, or any other property of the Company amongst
          the members without realization, or vest the same in trustees for them, and any
          special resolution may provide for the distribution and appropriation of the
          cash, Shares, or other securities, benefits, or property, otherwise than in
          accordance with the strict legal rights of the members or contributors of the
          Company, and for the valuation of any such securities or property or in such
          manner as the meeting may approve, and all holders of shares shall be bound to
          accept and shall be bound by any valuation or distribution so authorized, and
          waive all rights in relation thereto, save only in the event that the Company is
          proposed to be or is in the course of being wound-up, for such statutory rights
          (if any) under the provisions or the Statutes as are incapable of being varied
          or excluded hereby.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# INSURANCE AND
INDEMNIFICATION

|123. | Subject
to the provisions of the Statutes with regard to such matters:-
|---- | -----------------------------------------------------------------------

| | 123.1. | The
Company may enter into a contract for the insurance of the liability, in           whole
or in part, to the fullest extent permitted by the Companies Law, of any           of its
Officers with respect to any of the following:-
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (1) | A
breach of duty of care to the Company or to any other person;
| | --- | ---------------------------------------------------------------

| | (2) | A
breach of fiduciary duty to the Company provided that the Officer has acted in
               good faith and that he had reasonable grounds to assume that the act would
not                injure the good of the Company;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | A
financial liability which shall be imposed on such Officer in favour of any
               other person, in respect of an act performed by him by virtue of his being
an                officer of the Company.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 123.2. | The
Company may indemnify an Officer of the Company, to the fullest extent
          permitted by the Companies Law, with respect to any of the following:-
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------

| | (1) | A
financial liability imposed on him in favour of any other person by any
               judgment, including a judgment given as a result of a settlement or an
               arbitrators award which has been confirmed by a court, in respect of
an                act performed by him by virtue of his being an Officer of the Company.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Reasonable
litigation costs, including lawyers fees, expended by an                Officer or
which were imposed on an officer by a court in proceedings filed                against
him by the Company or in its name or by any other person or in a                criminal
charge on which he was acquitted, in respect of an act performed by him                by
virtue of his being an Officer of the Company.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 123.3. | The
Company may exculpate an officer holder in advance, in whole or in part, to           the
fullest extent permitted by the Companies Law, for a breach of Duty of Care.
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# LIQUIDATION

|124. | If the Company shall be liquidated voluntarily, the liquidators may, with the
          sanction of an Extraordinary Resolution, divide among the members any part of
          the assets of the Company, and may with the like sanction vest any part of the
          assets in trustees upon such trusts for the benefit of the members as the
          liquidators with the like sanction shall think fit.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|125. | Merger transactions may be approved by a simple majority of the shareholders
          present, in person or by proxy, at the General Meeting of the Shareholders.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

|126. | A shareholders resolution to amend the Articles of Association requires the
          approval a simple majority of the holders of issued and outstanding Ordinary
          Shares of the Company, present in person or by proxy, at a General Meeting of
          the Shareholders duly convened for such purposes.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|127. | Vacancies on the Board of Directors may be filled by the vote of a majority of
          the directors then in office. Any directors so appointed shall vacate their
          office at the next General Meeting of shareholders at which directors are being
          appointed, unless re-appointed at such meeting.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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