**Exhibit      1.2**

**AMENDED      AND RESTATED ARTICLES OF ASSOCIATION**

**THE      COMPANIES LAW**

**A      COMPANY LIMITED BY SHARES**

**AMENDED      AND RESTATED ARTICLES OF ASSOCIATION**

**of**

**COMMTOUCH      SOFTWARE LTD.**

| **1.** | **Preliminary** |
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|   | 1.1. | Construction.                In                these Articles, each of the following terms shall have the respective                meaning appearing next to it, if not inconsistent with the subject                or                context: |
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|   | 1.1.1. | **“Articles”**                -                These Articles of Association, as amended from time to                time. |
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|  | 1.1.2. | **“Board”                -**the                board of directors appointed under these Articles.  |
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|   | 1.1.3. | **“Company”**                -                Commtouch Software Ltd. |
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|   | 1.1.4. | **“Companies                Law” -**The                Companies Law, 5759-1999 and any regulations promulgated                thereunder. |
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|   | 1.1.5. | **“General                Meeting” -**                an                Annual Meeting or a Special Meeting as defined in Article                9.2.1. |
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|   | 1.1.6. | **“New                Securities”**                -                any shares of the Company and all rights, options or warrants to                purchase                capital shares and securities of any type whatsoever that are, or                may                become, convertible into shares, except for shares, rights, options,                warrants or other securities issued upon conversion of any New Securities                into shares of the Company, or upon the exchange of any shares                exchangeable into shares of another                class. |
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|   | 1.1.7. | “**on                an as converted basis"**                -                with respect to any given right in uestion, and for any calculation                of                shareholding in the Company, Preferred Shares shall be calculated                as, and                have the effect of, such number of Ordinary Shares into which such                Preferred Shares are convertible at that                time. |
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|  | 1.1.8 | **“Organic                Change”**                -                ** **Any                recapitalization, reorganization, reclassification, consolidation,                merger,                scheme of arrangement, sale of all or substantially all of the Company's                assets to another person or other transaction, in each case which                is                effected in such a way that Shareholders are entitled to receive                securities and/or assets with respect to or in exchange for their                shares                in the Company.   |
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|   | 1.1.9. | **“Shareholder”                -** |
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|   | (a) | A                holder of one or more of the shares of the Company;                or |
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|   | (b) | a                person registered as such in the Register of Shareholders;                or |
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|   | (c) | a                person who holds a share                certificate. |
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|  | 1.1.10. | **“Register                of Shareholders”**                -                The Register of Shareholders pursuant to Article                12. |
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|   | 1.1.11. | **“Year                and Month”**-                A                Gregorian month or year. |
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|  | 1.2. | Any                capitalized term used but not otherwise defined in these Articles                shall                have the meaning ascribed to it in the Companies                Law. |
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| **2.** | **Public                Company** |
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| **3.** | **Share                Capital** |
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|   | 3.1. | The                authorized share capital of the Company is NIS 8,303,001 divided                into                fifty-five million three hundred fifty three thousand three hundred                and                forty (55,353,340) Ordinary Shares of nominal value NIS 0.15 per                share                (“Ordinary Shares”). |
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|   | 3.2. | The                holders of issued and outstanding Ordinary Shares shall have all                the                rights, powers and authorities associated with the shares of the                Company,                including the power to appoint directors, to receive notice of, and                to                vote in, General Meetings of the Company, and to receive dividends                and any                surplus upon the liquidation of the Company. |
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|   | 3.3 | Each                Preferred Share shall grant the holder thereof the right to notice of                any hareholders’ meeting in accordance with these Articles, and the right                to vote, together with holders of Ordinary Shares, with respect to                any                question upon which holders of Ordinary Shares have the right to                vote. In                all such votes, each Preferred Share shall grant the right to one                vote. The Preferred Shares will vote together with the Ordinary Shares                and                not as a separate class in all General Meetings of the Company, except                as                required by law or hereunder. |
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|   |   | In                addition, the holders of issued and outstanding Preferred Shares                shall                have all the rights, powers and authorities held by the holders of                Ordinary Shares and, notwithstanding anything to the contrary in                Articles                8, 9.1.1 and 9.1.5 below, shall have the following additional rights,                powers and authorities: |
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|   | a. | The                right to receive any surplus upon liquidation of the Company prior                to the                distribution of any surplus to the holders of Ordinary Shares, in                an                amount equal to US$1.00 per Preferred Share (“2X Payment”) or, if such                surplus shall be insufficient to permit the payment of the full 2X                Payment                to the holders of the Preferred Shares, then the maximum possible                amount                of the surplus legally available for distribution shall be distributed                ratably among the holders of the Preferred Shares in proportion to                the                preference amount each such holder is otherwise entitled to                receive. |
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|   | b. | The                right to receive any securities and/or assets upon an Organic Change                prior                to the distribution of such securities and/or assets to the holders                of                Ordinary Shares, in an amount equal to the greater of (i) 2X Payment,                or                (ii) the value of the securities and/or assets that they would receive                if                they were to hold an amount of Ordinary Shares equivalent to the                amount of                their Preferred Shares on an as converted                basis. |
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|   | c. | Notwithstanding                anything to the contrary in Article 19, the Company shall not declare                dividends unless the holders of a majority of the voting power of                the                Preferred Shares consent, or until such time as a majority of the                voting                power of the Preferred Shares have converted or exchanged its shares                by                way of its conversion rights hereunder, Organic Change or                otherwise. |
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|   | d. | Notwithstanding                any other provision that may be contrary in these Articles, until                such                time as an aggregate of at least 75% of the Preferred Shares initially                issued under the October 2004 Securities Purchase Agreement and October                2004 Redemption, Amendment and Exchange Agreement between the Company                and                the Buyers and Investors, respectively, listed therein are converted                into                Ordinary Shares or exchanged in connection with an Organic Change,                the                right to veto, by the vote of the holders of a majority of the voting                power of the Preferred Shares, at a separate class meeting, (i) the                creation of a new lass of shares or other securities (debt or equity)                with                rights superior or equal to those of the Preferred Shares in any                way and                (ii) an increase in the authorized share capital that contemplates                an                increase in the amount of Preferred Shares that are issuable by the                Company. |
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|  | e. | For                the period beginning December 14, 2004 and ending September 14, 2005,                the                right to convert each Preferred Share into one Ordinary Share by                way of                written notice to the Company setting forth the number of Preferred                Shares                that a holder intends to convert. For the period beginning September                15,                2005 and thereafter, the right to convert each Preferred Share into                two                Ordinary Shares by way of written notice to the Company setting forth                the                number of Preferred Shares that a holder intends to convert.                Notwithstanding anything herein to the contrary, a decision to convert                Preferred Shares into Ordinary Shares by the holders of a majority                of the                voting power of Preferred Shares shall result in the conversion of                all                outstanding Preferred Shares into Ordinary Shares in the applicable                ratio                set forth above. |
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|  | f. | In                the event that the Company shall at any time change, by subdivision                or                combination in any manner or by the making of a share dividend (i.e.                bonus                shares) the number of Ordinary Shares then outstanding into a different                number of shares, then thereafter the number of Ordinary Shares issuable                upon the conversion of the Preferred Shares shall be increased or                decreased, as the case may be, in direct proportion to the increase                or                decrease in the number of Ordinary Shares by reason of such                change. |
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|  | g. | In                the event of any capital reorganization, or of any reclassification                of the                share capital of the Company or in case of the consolidation or merger                of                the Company with or into any other corporation (other than a consolidation                or merger in which the Company is the continuing corporation and                which                does not result in any change in the Ordinary Shares), each Preferred                Share shall after such capital reorganization, reclassification of                share                capital, consolidation, merger or sale entitle the holder to obtain                the                kind and number of Ordinary Shares, or of the shares of the corporation                resulting from such consolidation or surviving such merger, as the                case                may be, to which such holder would have been entitled if it had held                the                Ordinary Shares issuable upon conversion of such shares of Preferred                Shares immediately prior to such capital reorganization, reclassification                of capital stock, consolidation, merger or sale. To the extent that                this                paragraph relates to matters covered by the definition of “Organic                Change”, this paragraph is not intended to grant the Preferred Share                holders any additional rights to those they possess in the event                of an                occurrence of an Organic Change, rather it is intended to provide                additional clarification of such rights, or a portion thereof. |
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|  | 3.4 | If                at any time the share capital is divided into different classes of                shares,                then, unless the conditions of allotment of such class provide otherwise,                the rights, additional rights, advantages, restrictions and conditions                attached or not attached to any class, at any given time, may be                modified,                enhanced, added or abrogated by the Company by resolution at a meeting                of                the holders of the shares of such                class. |
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| **4.** | **Issuance                of Securities** |
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|   | 4.1. | The                unissued shares of the Company shall be under the control of the                Board. |
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|  | 4.2. | The                Board shall have the power to allot, issue or otherwise dispose of                shares                to such persons, at such times, on such terms and conditions, and                either                at par or less than par, at a premium, for cash or other consideration,                in                whole or in part, at a discount or with payment of commission, with                such                preferred or deferred rights, restrictions or conditions, all in                accordance with the provisions of the Companies Law and as the Board                shall                deem fit from time to time, provided that such shares do not exceed                the                registered share capital of the Company. The Board of Directors shall                also                have the power to give any person the option to acquire from the                Company                any shares, either at par or less than par, at a premium, for cash                or                other consideration, in whole or in part, at a discount or with payment                of                commission, all in accordance with the provisions of the Companies                Law and                as the Board shall deem fit from time to time.  |
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|  | 4.3. | The                Board may resolve to issue one or more series of debentures; however,                such                borrowing power shall be limited to actions that do not unreasonably                jeopardize the Company’s ability to pay its debt or to conduct its                business as an entity that seeks to maximize profits.  |
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|   | 4.4. | The                Company may, subject to applicable law, issue redeemable shares and                redeem                the same. |
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| **5**. | **Reorganization                of Capital** |
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|   | 5.1. | Increase                of Capital |
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|   | 5.1.1. | The                Company may, from time to time, by resolution of the Shareholders,                whether                or not all the shares then authorized have been issued, and whether                or not                all the shares issued have been called for payment, increase its                authorized share capital. Any such increase shall be in such amount                and                shall be divided into shares of such nominal amounts, with such rights                and                preferences and subject to such restrictions, as such resolution                shall                provide. |
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|   | 5.1.2. | Except                to the extent otherwise provided in such resolution, any new hares                included in the authorized share capital increased under Article                5.1.1                shall be subject to all the provisions of these Articles which are                applicable to shares included in the existing share capital, without                regard to class (and, if such new shares are of the same class as                a class                of shares included in the existing share capital, to all of the provisions                that are applicable to shares of such class included in the existing                share                capital).  |
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|   | 5.2. | Consolidation,                Subdivision, Cancellation and Reduction of Capital. |
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|   | 5.2.1. | consolidate                all or any part of its issued or unissued share capital into shares                of a                per share nominal value that is greater than the per share nominal                value                of its existing shares; |
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|   | 5.2.2. | subdivide                its shares (issued or unissued) or any of them into shares of lesser                nominal value than is fixed by these                Articles; |
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|   | 5.2.3. | cancel                any shares that have not been issued or subscribed for, and decrease                the                amount of its authorized share capital by the amount of the shares                so                canceled, subject to any commitment (including a conditional commitment)                given by the Company in respect of such                shares. |
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|   | 5.2.4. | reduce                its share capital in any manner, and with and subject to any consent                required by law. |
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|   | 5.3. | With                respect to any action that may result in fractional shares, the Board                may                settle any difficulty that may arise with regard thereto as it deems                fit,                and in connection with any such consolidation or other action that                may                result in fractional shares may, without                limitation: |
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|   | 5.3.1. | determine,                as to the holder of the shares so consolidated, which issued shares                shall                be consolidated into a share of a larger nominal value per                share; |
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|   | 5.3.2. | allot,                in contemplation of or subsequent to such consolidation or other                action,                shares or fractional shares sufficient to preclude or remove fractional                share holdings; |
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|   | 5.3.3. | redeem,                in the case of redeemable shares and subject to the Companies Law,                such                shares or fractional shares sufficient to preclude or remove fractional                share holdings; or |
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|   | 5.3.4. | cause                the transfer of fractional shares by certain Shareholders to ther                Shareholders so as most expediently to preclude or remove any fractional                share holdings, and cause the transferees of such fractional shares                to pay                the transferors of such fractional shares the fair value thereof,                and the                Board is hereby authorized to act in connection with such transfer                as                agent for the transferors and transferees of any such fractional                shares,                with full power of substitution, for the purpose of implementing                the                provisions of this Article 5.3. |
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| **6.** | **Transfer                of Shares** |
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|   | 6.1. | Registration                of Transfer |
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|   | 6.1.1. | No                transfer of shares shall be registered in the Register of Shareholders                unless one of the following conditions has been                met: |
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|   | 6.1.1.1. | a                proper writing or instrument of transfer (in any customary form or                any                other form satisfactory to the Board) signed by the transferee and                the                transferor, together with the share certificate(s) and such other                evidence                of title as the Board may reasonably require, were submitted to the                Company, and the relevant provisions in these Articles to effect                a                transfer of shares have been fully complied with. Until the transferee                has                been registered in the Register of Shareholders in respect of the                shares                so transferred, the Company may continue to regard the transferor                as the                owner thereof. |
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|   | 6.1.1.2. | The                Company received a court order requiring the change in the Register                of                Shareholders. |
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|   | 6.1.1.3. | The                Company received proof that the legal requirements for the assignment                of                rights to any Shares were fulfilled. |
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|   | 6.1.1.4. | The                occurrence of a condition that is sufficient, under these Articles,                to                effect the change in the Register of                Shareholders. |
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|   | 6.2. | Decedent’s                Shares |
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|   | 6.2.1. | In                case of a share registered in the names of two or more holders, the                Company may recognize the survivor(s) as the sole owner(s) thereof                unless                and until the provisions of Article 6.2.2 have been effectively                invoked. |
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|  | 6.2.2. | Any                person becoming entitled to a share in consequence of the death of                any                person, upon producing evidence of the grant of probate or letters                of                administration or order of inheritance (or such other evidence as                the                Board may reasonably deem sufficient), shall be egistered as a Shareholder                in respect of such share, or may, subject to the regulations as to                transfer herein contained, transfer such share.  |
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|   | 6.3. | Receivers                and Liquidators |
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|   | 6.3.1. | The                Company may recognize any receiver, liquidator or similar official                appointed to wind up, dissolve or otherwise liquidate a corporate                Shareholder, and a trustee, manager, receiver, liquidator or similar                official appointed in bankruptcy or in connection with the reorganization                of, or similar proceeding with respect to a Shareholder or its properties,                as being entitled to the shares registered in the name of such                Shareholder. |
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|   | 6.3.2. | Such                receiver, liquidator or similar official appointed to wind up, dissolve                or                otherwise liquidate a corporate Shareholder, and such trustee, manager,                receiver, liquidator or similar official appointed in bankruptcy                or in                connection with the reorganization of, or similar proceeding with                respect                to, a Shareholder or its properties, upon producing such evidence                as the                Board may deem sufficient as to his authority to act in such capacity                or                under this Article, shall with the consent of the Board (which the                Board                may grant or refuse in its absolute discretion) be registered as                a                Shareholder in respect of such shares, or may, subject to the regulations                as to transfer contained in these Articles, transfer such                shares. |
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| **7.** | **Limitation                of Liability** |
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| **8.** | **Amendments                to the Articles** |
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| **9.** | **General                Meetings** |
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|  | 9.1. | The                Powers of the General Meeting |
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|   | 9.1.1. | Amendment                of these Articles. |
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|   | 9.1.2. | Exercise                of the powers vested in the Board in the event that the Board is                unable to                exercise such powers, as provided in Section 52(a) of the Companies                Law. |
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|   | 9.1.3. | Appointment                and termination of the Company’s auditors. |
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|   | 9.1.4. | Approval                of actions and transactions that are required pursuant to Sections                254 and                255, and 270 through 275, of the Companies                Law. |
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|   | 9.1.5. | Increase                and reduction of the authorized share capital of the Company in accordance                with Sections 286 and 287 of the Companies                Law. |
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|   | 9.1.6. | Approval                of a merger in accordance with Section 320(a) of the Companies                Law. |
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|   | 9.1.7. | Discussion                of the financial statements at an Annual Meeting (as defined                below). |
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|   | 9.1.8. | Appointment                of Outside Directors in accordance with Section 239(b) of the Companies                Law. |
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|   | 9.2. | Annual                Meetings and Special Meetings |
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|   | 9.2.1. | An                Annual General Meeting shall be held at least once in every calendar                year                (within a period of not more than 15 months after the last preceding                Annual General Meeting), at such time and at such place as determined                by                the Board. Such Annual General Meetings shall be referred to as “Annual                Meetings”. Any other Shareholders meetings shall be referred to as                “Special Meetings”. |
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|   | 9.2.2. | The                agenda at an Annual Meeting shall include a discussion of the annual                financial statements of the Company and of the report submitted by                the                Board that shall include explanations concerning the various events                that                had an influence on the financial                statements. |
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|   | 9.3. | Convening                a General Meeting |
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|   | 9.3.1. | The                Board may, whenever it thinks fit, convene a Special Meeting, at                such time                and place as may be determined by the Board, and shall be obliged                to do so                upon the receipt of a written request from (i) ither 2 directors                or 25% of                the directors then in office, (ii) a Shareholder or group of Shareholders                that holds at least 5% of the issued and outstanding shares of the                Company                and at least 1% of the voting rights in the Company, or a Shareholder                or                group of Shareholders that holds at least 5% of the voting rights                in the                Company, as provided in Section 63 of the Companies                Law. |
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|   | 9.3.2. | Notice                of a General Meeting shall be delivered to Shareholders entitled                to                receive such notice in the manner and to the extent required by the                Companies Law and any regulations promulgated thereunder. The Company                shall make copies of its annual financial statements available for                inspection by the Shareholders at the principal offices of the Company.                The Company shall not be required to send copies of its annual financial                statements to Shareholders, except upon                request. |
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|   | 9.3.3. | The                accidental omission to give notice of a meeting to any Shareholder                or                Shareholders, or the non-receipt of notice sent to such Shareholder,                shall                not invalidate the proceedings at such                meeting. |
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|   | 9.4. | Proceedings                at a General Meeting  |
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|   | 9.4.1. | The                Agenda:                The agenda for a General Meeting shall be determined by the Board,                and                shall include (i) in the case of a Special Meeting, the matters for                which                the Special Meeting was convened pursuant to Section 63 of the Companies                Law, and (ii) matters requested by a Shareholder or Shareholders                holding                not less than (1%) of the voting rights in the General Meeting, provided                that such proposed matter is appropriate for discussion in a General                Meeting. Only resolutions on matters that are specified in the agenda                shall be adopted at such Special                Meeting. |
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|   | 9.4.2. | Quorum:  |
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|  | 9.4.2.1. | No                business shall be transacted at a General Meeting unless a legal                quorum is                present, and no resolution may be passed unless a legal quorum is                present                at the time such resolution is voted upon. |
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|  | 9.4.2.2. | In                the absence of a contrary provision in these Articles or in the Companies                Law, two or more Shareholders, present in person or by proxy and                holding                shares conferring in the aggregate at least one third of the outstanding                voting power of the Company shall constitute a legal quorum at General                Meetings. |
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|  | 9.4.2.3. | If                within half an hour from the time scheduled for a General Meeting                a legal                quorum is not present, the meeting shall be adjourned to the same                day in                the next week, at the same time and place, or to such other day and                at                such other time and other place as the Board may determine in a notice                to                the Shareholders. If within half an hour from the time scheduled                for the                adjourned meeting a legal quorum is not present, then any two Shareholders                entitled to vote, present in person or by proxy, shall constitute                a legal                quorum for such adjourned meeting and shall be entitled to resolve                any                matters on the agenda of the meeting. |
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|   | 9.4.3. | Chairman:                The Chairman of the Board shall preside at every General Meeting                of the                Company and shall be appointed as the Chairman of the General Meeting.                If                a Chairman of the Board was not appointed, or if the Chairman of                the Board                is not present within 15 minutes after the time scheduled for the                meeting                or is unwilling to take the chair, the Shareholders present shall                choose                someone of their number to be the chairman of such meeting. The office                of                Chairman of a General Meeting shall not, by itself, entitle the holder                to                vote at any General Meeting nor shall it grant him a second or casting                vote (without derogating, however, from the right of such Chairman                to vote                as a shareholder or proxy of a shareholder if, in fact, he is also                a                shareholder or such proxy). |
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|   | 9.4.4. | Power                to Adjourn:                The Chairman of a General Meeting at which a quorum is present may,                with                the consent of the holders of a majority of the voting power represented                in person or by proxy and voting on the question of adjournment,                and shall                if so directed by the meeting, adjourn the meeting from time to time                and                from place to place, but no business shall be transacted at any adjourned                meeting except business that might lawfully have been transacted                at the                meeting as originally called. |
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|   | 9.4.5. | Voting                Power:                Every matter submitted to the General Meeting shall be decided by                a vote.                Any vote in a General Meeting shall be conducted in accordance with                the                voting rights that each Shareholder is entitled to in accordance                with the                number of shares granting voting rights that are held by such Shareholder. |
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|   | 9.4.6. | Adoption                of Resolutions at General Meetings:                Subject to the provisions of the Companies Law and to Article 3.3                (d), a                resolution proposed at any General Meeting shall be deemed adopted                if                approved by a majority of the voting shares represented at such meeting                in                person or by proxy. A declaration by the Chairman of the eneral Meeting                that a resolution has been carried unanimously, or carried by a particular                majority, or defeated, and an entry to that effect in the minute                book of                the Company shall be conclusive evidence of the fact without proof                of the                number or proportion of the votes recorded in favor of or against                such                resolution. |
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|  | 9.5. | Resolutions                in Writing. |
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|   | 9.6. | Voting                Rights and Proxies |
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|   | 9.6.1. | No                Shareholder shall be entitled to vote in any General Meeting (or                be                counted as a part of the quorum) unless he fully paid any amounts                due,                whether with or without any demand for payment for his                shares. |
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|   | 9.6.2. | In                the absence of contrary provisions in these Articles or in any condition                or term annexed to any shares of any class, each Shareholder participating                in a General Meeting shall have one vote for each share giving a                right to                vote in a General Meeting that is held by such Shareholder. |
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|   | 9.6.3. | If                two or more persons are registered as joint holders of any share,                the vote                of the person first registered in the Register of Shareholders shall                be                accepted to the exclusion of the vote(s) of the other joint                holder(s). |
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|   | 9.6.4. | A                company or other corporate body being a Shareholder of the Company                may                duly authorize any person to be its representative at any General                Meeting                or to authorize or deliver a proxy on its behalf. Any person so authorized                shall be entitled to exercise on behalf of such Shareholder all the                power                that the latter could have exercised if it were a natural person.                Upon the                request of the Chairman of the meeting, written evidence of such                authorization (in form acceptable to the Chairman of the meeting)                shall be                delivered to him. |
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|   | 9.6.5. | Any                Shareholder entitled to vote may vote either in person or by ballot,                as                provided in Sections 87 to 89 of the Companies Law or by proxy (and                the                proxy need not be a Shareholder) or, if the Shareholder is a company                or                other corporate body, by a representative authorized pursuant to                Article                9.6.4. The Board of irectors may determine, in its discretion, the                matters                that may be voted upon by ballot, in accordance with Section 87(a)(4)                of                the Companies Law. |
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|   | 9.6.6. | Instrument                of Appointment:                An                instrument appointing a proxy shall be in writing and shall be                substantially in the following                form: |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 9.6.7. | The                instrument appointing a proxy (and the power of attorney or other                authority, if any, under which such instrument has been signed) shall                either be delivered to the Company (at its principal place of business                or                at the offices of its registrar or transfer agent, or at such place                as the                Board may specify) not less than 24 hours before the time fixed for                the                meeting at which the person named in the instrument proposes to vote,                or                presented to the Chairman at such General Meeting. An instrument                appointing a proxy that is not limited in time shall expire 12 months                after the date of its execution. If the appointment shall be for                a                specified period, whether in excess of 12 months or not, the instrument                shall be valid for the period stated                therein. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.6.8. | A                vote cast in accordance with an instrument appointing a proxy shall                be                valid despite the prior death or bankruptcy of the appointing hareholder                (or of his attorney-in-fact, if any, who signed such instrument),                or the                transfer of the share in respect of which the vote is cast, unless                written                notice of such matters shall have been received by the Company or                by the                Chairman of such General Meeting prior to such vote being                cast. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 9.6.9. | An                instrument appointing a proxy shall be deemed revoked (i) upon receipt                by                the Company of an instrument or written notice signed by the person                who                signed such instrument or by the Shareholder appointing such proxy                canceling the appointment thereunder (or the authority pursuant to                which                such instrument was signed) or of an instrument appointing a different                proxy, provided such notice of cancellation or instrument appointing                a                different proxy were so received at the place and within the time                for                delivery of the instrument revoked thereby as referred to in Article                9.6.7, or (ii) if the appointing Shareholder is present in person                at the                meeting for which such instrument of proxy was delivered, upon receipt                by                the Chairman of such meeting of written notice from such Shareholder                of                the revocation of such appointment, or if and when such Shareholder                votes                at such meeting. A vote cast in accordance with an instrument appointing                a                proxy shall be valid despite the revocation or purported cancellation                of                the appointment, or the presence in person or vote of the appointing                Shareholder at a meeting for which it was rendered, unless such instrument                of appointment was deemed revoked in accordance with the foregoing                provisions of this Article 9.6.9 at or prior to the time such vote                was                cast.  |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **10.** | **The                Board of Directors** |
|---------|-------------------------------------------|

|  | 10.1. | Number                of Directors |
|--|-------|------------------------------------|

|  | 10.2. | Election                and Removal of Directors |
|--|-------|--------------------------------------------------|

|  | 10.3. | Qualification                of Directors |
|--|-------|-------------------------------------------|

----

|  | 10.4. | Continuing                Directors in the Event of                Vacancies |
|--|-------|------------------------------------------------------------------------------|

|  | 10.5. | Remuneration                of Directors |
|--|-------|------------------------------------------|

|  | 10.6. | Conflict                of Interests |
|--|-------|--------------------------------------|

----

|  | 10.7. | Alternate                Directors |
|--|-------|------------------------------------|

|   | 10.7.1. | A                Director may, by written notice to the Company given in the manner                set                forth in Article 10.7.2 below, appoint any individual (whether or                not such                person is then a member of the Board of Directors) as an alternate                for                himself (in these Articles referred to as an "**Alternate                Director**"),                remove such Alternate Director and appoint another Alternate Director                in                place of any Alternate Director appointed by him whose office has                been                vacated for any reason. Unless the appointing Director, by the instrument                appointing an Alternate Director or by written notice to the Company,                limits such appointment to a specified period of time or restricts                it to a                specified meeting or action of the Board of Directors, or otherwise                restricts its scope, the appointment shall be for all purposes, and                for a                period of time, concurrent with the term of the appointing Director. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7.2. | Any                notice to the Company pursuant to Article 10.7.1 shall be given in                person                to, or by sending the same by mail to the attention of, the Chairman                of                the Board of the Company at the principal office of the Company or                to such                other person or place as the Board shall have determined for such                purpose,                and shall become effective on the date fixed therein, or upon the                receipt                thereof by the Company at the place specified above, whichever is                later. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7.3. | An                Alternate Director shall have all the rights and obligations of a                director; provided, however, that (i) an Alternate Director shall                have no                standing at any meeting of the Board or any Committee of the Board                while                the director for whom such Alternate Director was appointed is present;                (ii) he may not in turn appoint an alternate for himself (unless                the                instrument appointing him otherwise expressly provides); and (iii)                the                Alternate Director is not entitled to                remuneration. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7.4. | The                office of an Alternate Director shall be vacated under the circumstances,                mutatis mutandis, set forth in Article 10.8, and such office shall                ipso                facto be vacated if the director for whom the lternate Director was                appointed ceases to be a                director. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 10.8. | Termination                of Office |
|--|-------|--------------------------------------|

|   | 10.8.1. | Upon                resignation, which shall become effective on the date a written notice                of                such resignation is delivered to the Company, or a later date specified                in                the notice. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.8.2. | If                convicted of a felony, as provided in Section 232 of the Companies                Law. |
|--------|---------|----------------------------------------------------------------------------------------------------------|

|   | 10.8.3. | Pursuant                to a court’s decision, as provided in Section 233 of the Companies Law. |
|--------|---------|-------------------------------------------------------------------------------------------------------|

|   | 10.8.4. | Upon                death or when declared bankrupt. |
|--------|---------|------------------------------------------------------|

|   | 10.8.5. | If                he be found lunatic or becomes of unsound                mind. |
|--------|---------|----------------------------------------------------------------------------------|

|   | 10.9. | No                Corporate Director |
|--------|-------|--------------------------------------|

|   | 10.9.1. | A                corporation will not be qualified to act as a                director. |
|--------|---------|-----------------------------------------------------------------------------------------|

|  | 10.10. | Chairman                of the Board of Directors   |
|--|--------|---------------------------------------------------------------|

|  | 10.11. | Powers                of the Board and Delegation of                Powers |
|--|--------|----------------------------------------------------------------------------|

|  | 10.11.1 | The                determination of the policy of the business of the Company and the                supervision on the performance of the General Manager of the Company                shall                be vested in the Board, which may exercise all such powers and do                all such                acts and things as the Company is authorized to exercise and do and                which                are not required by law or these Articles to be done by the Company                by                action of its Shareholders at a General Meeting. The authority conferred                on he Board by this Article shall be subject to the provisions of                the                Companies Law, these Articles and any resolution consistent with                these                Articles adopted from time to time by the Company at a General Meeting;                provided, however, that no such resolution shall invalidate any prior                act                done by or pursuant to a decision of the Board that would have been                valid                if such resolution had not been                adopted. |
|--|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 10.11.2 | Subject                to the provisions of the Companies Law, the Board may from time to                time,                by power of attorney or otherwise, appoint any person, company, firm                or                body of persons to be the attorney or attorneys of the Company at                law or                in fact for such purpose(s) and with such powers, authorities and                discretions, and for such period and subject to such conditions,                as it                deems fit, and any such power of attorney or other appointment may                contain                such provisions for the protection and convenience of persons dealing                with                any such attorney as the Board deems fit, and may also authorize                any such                attorney to delegate all or any of the powers, authorities and discretions                vested in him.  |
|--|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.12. | Proceedings                of the Board  |
|--|--------|-----------------------------------------------|

|   | 10.12.1. | Meetings |
|--------|----------|----------|

|   | 10.12.1.1. | The                Board may meet and adjourn its meetings and otherwise regulate such                meetings and proceedings in accordance with the Company’s needs; provided,                however, that the Board must meet at least once every 3                months. |
|--------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.12.1.2. | The                Chairman of the Board may convene a meeting of the Board at any time,                and                shall be required to convene a meeting to be held not later than                14 days                following a request by any Director of the Company; provided, that                in the                event that a meeting is convened under the circumstances described                in                Section 122(d), 169 or 257 of the Companies Law, the meeting of the                Board                shall be convened without delay.  |
|--|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 10.12.2. | Failure                to Deliver Notices:                Despite anything to the contrary in these Articles, failure to deliver                notice to a Director of any such meeting may be waived by such Director,                and a meeting shall be deemed to have been duly convened despite                such                defective notice if uch failure or defect is waived prior to action                being                taken at such meeting by all Directors entitled to participate and                vote in                such meeting to whom notice was not duly                given. |
|--------|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.12.3. | Board                Meetings by Means of Telecommunication: A                meeting of the Board may be conducted by using any communication                device,                provided that all directors participating in such meeting can                simultaneously hear each other. |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.12.4. | Quorum:                No                business shall be transacted at a meeting of the Board unless the                requisite legal quorum is present (by means provided under Articles                10.12.3) when the meeting proceeds to business. Until otherwise decided                by                the Board, a legal quorum at a meeting of the Board shall be constituted                by the presence (by means provided under Article 10.12.4) of a majority                of                the number of directors then in                office. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.12.5. | Exercise                of Powers of the Board:                A                resolution proposed at any meeting of the Board shall be deemed adopted                if                approved by a majority of the Directors present when such resolution                is                put to a vote and voting thereon. |
|--------|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.12.6. | The                Agenda:                The agenda for a meeting of the Board shall be determined by the                Chairman                of the Board, and shall include matters determined by the Chairman                of the                Board, matters for which a meeting of the Board was convened pursuant                to                Article 10.12.1.2, and any matter requested by a director or the                General                Manager at least 3 days before the                meeting. |
|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.13. | Resolutions                in Writing |
|--|--------|---------------------------------------|

----

|   | 10.14. | Audit                Committee |
|--------|--------|--------------------------------|

|   | 10.14.1. | The                Board shall appoint an Audit Committee that shall be composed of                three                members of the Board. The Chairman of the Board, any director that                is                employed by the Company or who provides the Company with services                on a                regular basis, and any controlling shareholder (or a relative of                a                controlling shareholder) may not be members of the Audit Committee. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.14.2. | The                Audit Committee shall have the duties set forth in ection 117 of                the                Companies Law. |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.14.3. | Approval                by the majority of the members of the Audit Committee shall be deemed                approval of the Audit Committee. |
|--------|----------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.15. | Committees                of the Board |
|--------|--------|----------------------------------------|

|   | 10.15.1. | Subject                to the provisions of the Companies Law, the Board may delegate any                or all                of its powers to committees, each consisting of one or more persons                who                are directors, and it may from time to time revoke such delegation                or                alter the composition of any such committee. Any committee so formed                (in                these Articles referred to as a **“Committee                of the Board”**)                shall, in the exercise of the powers so delegated, conform to any                regulations imposed on it by the Board. The meetings and proceedings                of                any such Committee of the Board shall, mutatis mutandis, be governed                by                the provisions of these Articles that regulate the meetings of the                Board.                Unless otherwise expressly provided by the Board in delegating powers                to a                Committee of the Board, such Committee shall not be empowered to                further                delegate such powers. |
|--------|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.15.2. | The                Board may revoke any resolution of any Committee of the Board; provided,                however, that any such revocation shall not detract from the validity                of                any transaction entered into with a person that did not know of such                revocation. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 10.16. | Validity                of Acts Despite Defects |
|--|--------|-------------------------------------------------|

| **11.** | **General                Manager** |
|---------|------------------------------------|

|   | 11.1. | The                Board shall from time to time appoint one or more persons, whether                or not                Directors, as General Manager or General Managers, and may confer                upon                such person(s), and from time to time modify, or revoke such title(s)                and                such duties and authorities as the Board may deem fit, subject to                such                limitations and restrictions as the Board may from time to time prescribe.                Such appointment(s) may be either for a fixed term or without any                limitation of time, and the Board may from time to time (subject                to the                provisions of the Companies Law and of any contract between any such                person and the Company) fix his, her or their salaries and emoluments,                emove or dismiss such persons from office and appoint another or                others in                their place. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.2. | Unless                otherwise determined by the Board, the General Manager shall have                the                authority with respect to the day to day management of the Company                in the                ordinary course of business, in the framework of, and subject to,                the                policy, guidelines and instructions of the Board from time to time. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.3. | The                General Manager shall have all the management and implementation                authorities that are not expressly delegated in the Articles or by                the                Companies Law, to another organ of the Company, and will be subject                to the                supervision of the Board. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.4. | The                General Manager may, with the consent of the Board, delegate certain                of                his duties to another person who is subject to his                supervision. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.5. | The                General Manager shall notify the Chairman of the Board of any unusual                event that is material to the Company; if the office of Chairman                of the                Board is vacant, or the Chairman of the Board refuses or is unable                to act,                such notification shall be made to all the Directors then in                office. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 11.6. | The                General Manager shall periodically furnish the Board with reports                in                matters, times and format determined by the Board from time to time.                When                a notification or report of the General Manager require the performance                of                an action by the Board, then a Board meeting shall be convened without                delay. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.7. | The                remuneration payable to the General Manager for his services shall                be                fixed from time to time (subject to any contract between the General                Manager and the Company) by the Board, and may be fixed as a regular                salary, commission on dividends, profits or revenues of the Company                or of                any other company in which the Company has an interest, or by                participation in the Company’s profits, combined or separately. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **12.** | **Register                of Shareholders** |
|---------|---------------------------------------------|

|   | 12.1. | The                Company shall maintain a Register of Shareholders in which the following                shall be recorded: |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.1. | the                name, identification card number (if any) and address of every                Shareholder, as such details were provided to the                Company; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.2. | The                number of shares and the particular class of Shares owned by each                Shareholder, noting the nominal value of such shares, if applicable,                and                in case the payment for any shares was not fully satisfied, the unpaid                amount. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.3. | The                date on which the shares were issued or transferred to any Shareholder,                as                the case may be. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.4. | If                the shares were serially numbered, the Company will note next to                the name                of each Shareholder the serial numbers of the shares held by such                Shareholder. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.5. | As                for “Dormant Shares” (as defined in Section 308 of the Companies Law), if                any, the Register of Shareholders shall state the exact number of                Dormant                Shares and the date on which such shares became “Dormant                Shares”. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.6. | A                Shareholder holding shares as a trustee shall be recorded in the                Register                of Shareholder with a note of the trusteeship, and the Company shall                be                entitled to treat such person as the Shareholder in all                respects. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **13.** | **Auditors** |
|---------|--------------|

|   | 13.1. | The                Company shall appoint one or more certified public accountants to                audit,                and provide a report on, the annual financial statements of the Company                (the **“Auditors”**). |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.2. | The                appointment, authorities, duties, responsibilities, rights, remuneration                and powers of the Auditors shall be fixed by applicable law and under                these Articles. The General Meeting shall have the power to appoint                the                Auditors for the maximum time period provided under the Companies                Law. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.3. | The                Board shall cause accurate books of account to be kept in accordance                with                the provisions of any applicable law. Such books of account shall                be kept                at the principal office of the Company, or at such other place or                places                as the Board may deem fit, and they shall always be open to inspection                by                all Directors. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | **Share                Certificates** |
|-----|---------------------------------------|

|   | 14.1. | Share                certificates shall be issued under the corporate seal of the Company                (or                facsimile thereof) and shall bear the signature (or facsimile thereof)                of                two Directors, or the signatures of a Director and the secretary                of the                Company, specifically authorized by the Board for this                purpose. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 14.2. | Each                Shareholder shall be entitled to one numbered certificate for all                the                shares of any class registered in his name, and if the Board so approves,                to several certificates, each for one or more of such shares. Each                certificate shall specify the serial numbers of the shares represented                thereby and may also specify the amount paid up thereon. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 14.3. | A                share certificate registered in the names of two or more persons                shall be                delivered to the person first named in the Register of Shareholders                in                respect of such co-ownership. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 14.4. | A                share certificate that has been defaced, lost or destroyed may be                replaced, and the Company shall issue a new certificate to replace                such                defaced, lost or destroyed certificate upon payment of such fee,                and upon                the furnishing of such evidence of ownership and such indemnity,                as the                Board in its discretion deems                fit. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 15. | **Registered                Holder** |
|-----|--------------------------------------|

| 16. | **Calls                on Shares** |
|-----|------------------------------------|

|   | 16.1. | The                Board may, from time to time, as it in its discretion deems fit,                make                calls for payment upon Shareholders in respect of any sum that has                not                been paid up in respect of shares held by such Shareholder and which                is                not, pursuant to the terms of allotment or issuance of such shares                or                otherwise, payable at a fixed time. Each Shareholder shall pay the                amount                of every call so made upon him (and of each installment thereof if                the                same is payable in installments), to the person(s) and at the time(s)                designated by the Board, as any such time(s) may subsequently be                extended                or such person(s) or place(s) changed. Unless otherwise stipulated                in the                resolution of the Board (and in the notice referred to below), each                payment in response to a call shall be deemed to constitute a pro                rata                payment on account of all the shares of the Shareholder making payment                in                respect of which such call was                made. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 16.2. | Notice                of any call for payment by a Shareholder shall be given in writing                to such                Shareholder not less than 14 days prior to the time of payment fixed                in                such notice, and shall specify the time and place of payment, and                the                person to whom such payment is to be made. Prior to the time for                any such                payment fixed in a notice of a call given to a member, the Board                may in                its absolute discretion, by notice in writing to such Shareholder,                revoke                such call in whole or in part, extend the time fixed for payment                of such                call or designate a different place of payment or person to whom                payment                is to be made. In the event of a call payable in installments, only                one                notice thereof need be given. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 16.3. | If                pursuant to the terms of allotment or issuance of a share, or otherwise,                an amount is made payable at a fixed time (whether on account of                such                share or by way of premium), such amount shall be payable at such                time as                if it were payable by virtue of a call made by the Board of Directors                and                for which notice was given in accordance with this Article, and the                provisions of these Articles with regard to calls (and the non-payment                thereof) shall be applicable to such amount (and the non-payment                thereof). |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 16.4. | Joint                holders of a share shall be jointly and severally liable to pay all                calls                for payment in respect of such share and all interest payable                thereon. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 16.5. | Any                amount called for payment that is not paid when due shall bear interest                from the date fixed for payment until actual payment, at such rate                (not                exceeding the legal rate under any applicable law) and payable at                such                time(s) as the Board may prescribe. The Board may waive any payment                of                such interest under this Article. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 16.6. | With                the consent of the Board, any Shareholder may pay to the Company                any                amount not yet payable in respect of his shares, and the Board may                approve                the payment by the Company of interest on any such amount until the                same                would be payable if it had not been paid in advance, at such rate                and                time(s) as may be approved by the Board. The Board may at any time                cause                the Company to repay all or any part of the money so advanced, without                premium or penalty. Nothing in this Article shall derogate from the                right                of the Board to make any call for payment before or after receipt                by the                Company of any such advance. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **17.** | **Forfeiture                and Surrender** |
|---------|---------------------------------------------|

|   | 17.1. | If                any Shareholder fails to pay an amount payable by virtue of a call,                or                interest thereon as provided for in accordance with these Articles,                on or                before the day fixed for payment of the same, the Board may at any                time                after the day fixed for such payment, so long as such amount or any                portion thereof remains unpaid, forfeit all or any of the shares                in                respect of which such payment was called for. All expenses incurred                by the                Company in attempting to collect any such amount or interest thereon,                including without limitation attorney’s fees and costs of legal                proceedings, shall be added to, and shall for all purposes (including                the                accrual of interest thereon) constitute a part of, the amount payable                to                the Company in respect of such                call. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.2. | Upon                the adoption of a resolution as to the forfeiture of a Shareholder’s                shares, the Board shall cause notice thereof to be given to such                Shareholder, which notice shall state that, in the event of the failure                to                pay the entire amount so payable by a date specified in the notice                (which                date shall be not less than 14 days after the date such notice is                given                and which may be xtended by the Board), such shares shall ipso facto                be                forfeited; provided, however that prior to such date the Board may                nullify                such resolution of forfeiture, but no such nullification shall estop                the                Board from adopting a further resolution of forfeiture in respect                of the                non-payment of the same amount. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 17.3. | Without                derogating from any of the provisions of this Article 17, whenever                shares                are forfeited as herein provided, all dividends, if any, theretofore                declared in respect thereof and not actually paid, shall be deemed                to have                been forfeited at the same time. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.4. | Any                share forfeited or surrendered as provided herein shall become the                property of the Company, and the same, subject to the provisions                of these                Articles, may be sold, re-allotted or otherwise disposed of as the                Board                deems fit. From the date of forfeiture until the date such forfeited                shares are sold, re-allotted or otherwise disposed of, such forfeited                shares shall be deemed “Dormant Shares” as defined in Section 308 of the                Companies Law. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.5. | Any                Shareholder whose shares have been forfeited or surrendered shall                cease to                be a Shareholder in respect of the forfeited or surrendered shares,                but                shall nonetheless be liable to pay, and shall promptly pay, to the                Company                all calls, interest and expenses owing upon or in respect of such                shares                at the time of forfeiture or surrender, together with interest thereon                from the time of forfeiture or surrender until actual payment at                the rate                prescribed in this Article 17, and the Board, in its discretion,                may                enforce the payment of such moneys or any part thereof. In the event                of                such forfeiture or surrender, the Company, by resolution of the Board,                may                accelerate the date(s) of payment of any or all amounts then owing                to the                Company by the Shareholder in question (but not yet due) in respect                of all                shares owned by such Shareholder, solely or jointly with                another. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.6. | The                Board may at any time, before any share so forfeited or surrendered                shall                have been sold, re-allotted or otherwise disposed of, nullify the                forfeiture or surrender on such conditions as it deems fit, but no                such                nullification shall estop the Board from re-exercising its powers                of                forfeiture pursuant to this Article                17. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 17.7. | If                pursuant to the terms of allotment or issuance of a share, or otherwise,                an amount is made payable at a fixed time (whether on account of                such                share or by way of premium), such amount shall be payable at such                time as                if it were payable by virtue of a call made by the Board and for                which                notice was given in accordance with this Article, and the provisions                of                these Article shall be applicable to such amount as if a call was                given at                the date fixed for payment. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.8. | Except                to the extent that the same may be waived or subordinated in riting,                the                Company shall have a first and paramount lien upon all the shares                registered in the name of each Shareholder (without regard to any                equitable or other claim or interest in such shares on the part of                any                other person), and upon the proceeds of the sale thereof, for his                debts,                liabilities and obligations to the Company arising from any amount                payable                by such Shareholder in respect of any unpaid or partly paid share,                whether                or not such debt, liability or obligation has matured. Such lien                shall                extend to all dividends from time to time declared or paid in respect                of                such share. Unless otherwise provided, the registration by the Company                of                a transfer of shares shall be deemed to be a waiver on the part of                the                Company of any lien existing on such shares immediately prior to                such                transfer. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.9. | The                Board may cause the Company to sell a share subject to such a lien                when                the debt, liability or obligation giving rise to such lien has matured,                in                such manner as the Board deems fit, but no such sale shall be made                unless                such debt, liability or obligation has not been satisfied within                14 days                after written notice of the intention to sell shall have been served                on                such Shareholder, his executors or                administrators. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.10. | The                net proceeds of any such sale, after payment of the costs thereof,                shall                be applied in or toward satisfaction of the debts, liabilities or                obligations of such Shareholder in respect of such share (whether                or not                the same have matured), and any residue shall be paid to the Shareholder,                his executors, administrators or                assigns. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.11. | Upon                any sale of a share after forfeiture or surrender or for enforcing                a lien,                the Board may appoint any person to execute an instrument of transfer                of                the share so sold and cause the purchaser’s name to be entered in the                Register of Shareholders in respect of such share. The purchaser                shall be                registered as the shareholder and shall not be bound to see to the                regularity of the sale proceedings or to the application of the proceeds                of such sale, and after his name has been entered in the Register                of                Shareholders in respect of such share, the validity of the sale shall                not                be impeached by any person, and the remedy of any person aggrieved                by the                sale shall be in damages only and against the Company                exclusively. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **18.** | Insurance,                Indemnification and Exculpation |
|---------|-----------------------------------------------------------|

|   |   | The                Company may insure, indemnify and exculpate its Office Holders to                the                fullest extent permitted by law, from time to time. Without limiting                the                generality of the foregoing: |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 18.1. | Subject                to the provisions of the Companies Law, the Company may enter into                a                contract for the insurance of its Office Holders, for actions or                omissions                done in their capacity as Office Holders, in whole or in part, against                any                of the following: |
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|  | 18.2. | Subject                to the provisions of the Companies Law, the Company is entitled                retroactively to indemnify any Office Holder, or provide a prior                undertaking to indemnify an Office Holder, where such prior undertaking                is                limited to categories of events that the Board believes are foreseeable                in                light of the Company’s activities on the date of grant of the undertaking                to indemnify, and to an amount or in accordance with guidelines determined                by the Board to be reasonable in the circumstances (and such undertaking                includes the categories of events that the Board believes are foreseeable                in light of the Company’s activities on the date of grant of the                undertaking to indemnify and to an amount or in accordance with guidelines                determined by the Board to be reasonable in the circumstances), for                any of                the following events: |
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|   |   | 18.2.2                reasonable                legal costs, including attorney’s fees, expended by an Office Holder as a                result of an investigation or proceeding instituted against the Office                Holder by a competent authority, provided that such investigation                or                proceeding concludes without the filing of an indictment against                the Office Holder and either (A) no financial liability was imposed                on the Office Holder in lieu of criminal proceedings, or                (B) financial liability was imposed on the Office Holder in lieu of                criminal proceedings but the alleged criminal offense does not require                proof of criminal intent; and |
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|   |   | 18.2.3.                reasonable costs of litigation, including attorney’s fees, expended by an                Office Holder or for which an Office Holder has been charged by a                court,                in an action brought against the Office Holder by or on behalf of                the                Company or a third party, or in a criminal action in which an Office                Holder was found innocent, or in a criminal offense in which an Office                Holder was convicted and in which a proof of criminal intent is not                required. |
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|   | 18.3. | Subject                to the provisions of the Companies Law, the Company may exculpate                an                Office Holder in advance from liability, or any part of liability,                for                damages sustained by a breach of duty of care to the                Company. |
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| **19.** | **Dividends** |
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|   | 19.1. | No                dividend shall be paid otherwise than in accordance with Chapter                2 of Part                7 of the Companies Law. |
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|   | 19.2. | Subject                to the rights of Shareholders as to dividends and to the provisions                set                forth in Article 3.3 (c), any dividend paid by the Company shall                be                allocated among the Shareholders entitled thereto, in proportion                to the                sums paid up or credited as paid up on account of the nominal value                of                their respective holdings of the shares in respect of which such                dividend                is being paid without taking into account the premium paid up for                the                shares. The amount paid up on account of a share that has not yet                been                called for payment or fallen due for payment and upon which the Company                pays interest to the shareholder shall not be deemed, for the purposes                of                this Article, to be a sum paid on account of the                share. |
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|   | 19.3. | Subject                to the provisions of Section 303 of the Companies Law, no dividend                shall                be paid otherwise than out of the Profits of the Company, as defined                in                Section 302(b) of the Companies Law. |
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|   | 19.4. | No                dividend shall carry interest as against the                Company. |
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|   | 19.5. | Subject                to the provisions of these Articles and the Companies Law, the Company                may                cause any moneys, investments or other assets forming part of the                undivided distributable profits of the Company to be capitalized                and                distributed among such of the Shareholders as would be entitled to                receive                the same if distributed by way of dividend and in the same proportion. |
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|   | 19.6. | For                the purpose of giving full effect to any resolution under this Article                19,                the Board may settle any difficulty that may arise in regard to the                distribution as it deems expedient, and in particular may issue fractional                certificates, and may fix the value for distribution of any specific                assets, and may determine that cash payments shall be made to any                Shareholders upon the basis of the value so fixed, or that fractions                of                less value than the nominal value of one share may be disregarded                in order                to adjust the rights of all parties, and may vest any such cash,                shares,                debentures, debenture stock or specific assets in trustees upon such                trusts for the persons entitled to the dividend or capitalized fund                as may                seem expedient to the Board. |
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|   | 19.7. | Without                derogating from this Article 19, the Board may give an instruction                that                shall prevent the distribution of a dividend to the holders of shares                on                which the full nominal amount has not been paid                up. |
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|   | 19.8. | The                Board may retain any dividend or other moneys payable or property                distributable in respect of shares on which the Company has a lien,                and                may apply the same in or toward satisfaction of the debts, liabilities                or                obligations in respect of which the lien                exists. |
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|   | 19.9. | The                Board may retain any dividend or other moneys payable or property                distributable in respect of a share in respect of which any person                is,                under Article 6.2 or Article 6.3, entitled to become a Shareholder,                or                which any person is, under such Articles, entitled to transfer, until                such                person shall become a Shareholder in respect of such share or shall                transfer the same. |
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| 20. | **Minutes** |
|-----|-------------|

|   | 20.1. | Minutes                of each General Meeting, of each meeting of the Board and of each                meeting                of a Committee of the Board shall be recorded and duly entered in                books                provided for that purpose, and shall be maintained by the Company                at its                principal office or such other place as shall be determined by the                Board.                Such minutes shall, in all events, set forth the name of the persons                at                the meeting and all resolutions adopted at the                meeting. |
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|   | 20.2. | Any                such minutes, if purporting to be signed by the chairman of the meeting                or                by the chairman of the next succeeding meeting, shall constitute                prima                facie evidence of the matters recorded                therein. |
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| 21. | **Charitable                Contributions** |
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| 22. | **Notices** |
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|   | 22.1. | Any                written notice or other document may be served by the Company upon                any                Shareholder either personally or by sending it by prepaid mail (airmail                if                sent internationally) addressed to such Shareholder’s address as it                appears in the Register of Shareholders or such other address as                he may                have designated in writing for the receipt of notices and other documents,                provided however that the Board may resolve that any such address                must be                located within the State of Israel. |
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|   | 22.2. | Notwithstanding                anything to the contrary contained herein, notice by the Company                of a                General Meeting which is published in at least two daily newspapers                in the                State of Israel within the time otherwise required for giving notice                of                such meeting under Article 9.3.2 hereof and containing the information                required to be set forth in such notice under such Article shall                be deemed                to be a notice of such meeting duly given, for purposes of these                Articles,                to any Shareholder whose address as registered in the Register of                Shareholders is located in the State of Israel. |
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|   | 22.3. | Any                written notice or other document may be served by any Shareholder                upon the                Company by tendering the same in person to the Secretary or the General                Manager of the Company at the principal office of the Company or                by                sending it by prepaid registered mail (airmail if posted internationally)                to he Company at its principal office. Any such notice or other document                shall be deemed to have been served when actually tendered if hand                delivered, or 48 hours (7 business days if sent internationally)                after it                has been posted (or when actually received by the addressee if sooner).                Notice sent by telegram, telex, facsimile or e-mail shall be deemed                to                have been served when actually received by the addressee. A notice                that is                defectively addressed or that otherwise fails to comply with the                provisions of this Article 22.3 shall nevertheless be deemed to have                been                served if and when actually received by the                addressee. |
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|   | 22.4. | All                notices to be given to the Shareholders shall, with respect to any                share                to which such persons are jointly entitled, be given to whichever                of such                persons is named first in the Register of Shareholders, and any notice                so                given shall be sufficient notice to all the holders of such                share. |
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|   | 22.5. | Any                Shareholder whose address is not listed in the Register of Shareholders,                and who shall not have designated in writing an address for the delivery                of notices, shall not be entitled to receive any notice from the                Company. |
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|   | 22.6. | Notwithstanding                any other contrary provision of these Articles, the Board may fix                a date,                not exceeding forty (40) days prior to the date of any General Meeting,                as                the date as of which shareholders entitled to notice of and to vote                at                such meetings shall be determined, and all persons who were holders                of                record of voting shares on such date shall be entitled to notice                of and to                vote at such meeting. |
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