|   | · | Directors      are granted stock options, with new directors receiving an initial grant      of 50,000 options and continuing directors receiving an “evergreen” option      grant of 16,667 options.  At the annual meeting in October 2009,      shareholders approved a one-time increase of the evergreen option grant to      30,000 options. |
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|   | · | Through      2008, directors did not receive cash compensation for their      services.  However, at the annual meeting in December 2008,      shareholders approved the payment of cash compensation, in addition to the      stated options compensation, according to the  following: |
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|   | 1. | NIS      31,700 base annually per director, as linked to the applicable Israeli      consumer price index, payable in four equal installments at the beginning      of each calendar quarter; and |
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|   | 2. | NIS      1,590 per director per face to face Board or committee meeting or NIS954      (60% of NIS 1590) in case of telephonic participation at such meeting,      payable at the beginning of each calendar quarter following the quarter      during which a Board member participated in a meeting. No separate per      meeting compensation will be paid for committee meetings that are held on      the same day immediately prior or subsequent to a Board      meeting.  In that event, a Board and committee meeting will be      considered one meeting. |
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|   | 3. | For      non-Israeli based directors, the amounts set forth will be paid in United      States dollars, according to the representative rate of exchange published      by the Bank of Israel on the date ofpayment. |
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