| WHEREAS | The      Seller engages in the operation of retail chain stores and is the owner of      activities in the field of leasing, management, development and      improvement of real estate properties owned by it;  and |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| WHEREAS | The      Seller wishes to spin off its activities, in a manner whereby assets and      liabilities connected with and/or related the Seller’s activities in the      field of leasing, management, development and improvement of real estate      properties owned by it (hereinafter: “the Real Estate Activities      Transferred”) will be transferred to the Buyer (hereinafter: “the Spin-Off”);      and |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| WHEREAS | The      Buyer is a public company engaged in the development, initiation and      management of real estate and is controlled by Blue Square Israel Ltd.,      which is also the controlling shareholder in the Seller;    and |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| WHEREAS | The      parties declare that the Spin-Off is being effected for a commercial and      economic objective; and |
|---------|----------------------------------------------------------------------------------------------------------------|

| WHEREAS | The      Spin-Off is being effected in accordance with 105I of the Income Tax      Ordinance, and all the conditions and sub-sections thereof, and is      contingent upon approval by the tax authorities and approval of the      applicability of the tax benefits pursuant to Section 105B of the Income      Tax Ordinance; and |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| WHEREAS | For      purposes of effecting the aforesaid Spin-Off the Seller wishes to sell the      Property Sold to the Buyer, and the Buyer wishes to purchase the Property      Sold from the Seller, as same is defined below, all in accordance with the      terms and conditions set forth in this Agreement;  and |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| WHEREAS | The      parties have applied to the tax authorities with an application to obtain      an approval in advance pursuant to which the Property Sold will be      transferred from the Seller to the Buyer in accordance with Section 105I      of the Income Tax Ordinance (New Version), 5721-1961 and on the terms and      conditions as will be specified in the approval of the tax authorities;      and |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| WHEREAS | The      parties wish to specify and define in the framework of the provisions of      this Agreement the legal relationship between them regarding the      acquisition of the Property Sold and the transfer thereof, all in      accordance with the terms and conditions set forth below in this      Agreement; |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1. | Preamble      and interpretation |
|----|----------------------------------|

|   | 1.1 | The      preamble to the Agreement, the appendices hereto and the declarations by      the parties constitute an integral parthereof. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.2 | The      division of this Agreement into clauses and sub-clauses and the headings      which appear herein have been inserted solely for the sake of convenience,      and no use shall be made thereof for purposes of the interpretation of the      Agreement. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Definitions |
|----|-------------|

|   | 2.1 | “The property sold” –      the properties transferred and the liabilities transferred, as defined      below. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------|

----

|   | 2.2 | “The properties      transferred” – the real estate properties listed in Appendix      A to this Agreement (hereinafter: “the Real Estate      Properties”), including all the Seller’s rights in relation to the      Real Estate Properties (including goodwill), as well as the Seller’s      shares in the holding companies listed in Appendix      A to this Agreement (hereinafter: “the Shares      Transferred”, and “Holding Companies”,      respectively), including all the Seller’s rights in relation to the Shares      Transferred (including goodwill) and in relation to shareholders’ loans      that were given by the Seller to the Holding Companies, and the Seller’s      rights pursuant to the Agreement. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.3 | “The liabilities      transferred” – the Seller’s liabilities pursuant to the agreements,      as well as the Seller’s financial liabilities in connection with financing      the Real Estate activities being transferred against which encumbrances      have been created and/or will be created over the properties transferred      or part thereof, all as described in Appendix      B which will be signed and attached to this Agreement after receipt      of the approval from the tax authorities (hereinafter: “the Financial      Liabilities”).  The balance of the Financial Liabilities      as at the effective date will stand at a sum equivalent to the value of      the Real Estate Properties and the shares transferred as set forth in      Appendix      A to this Agreement, plus a sum equivalent to the balance of the      shareholders loans which were provided to the Holding Companies by the      Seller, as same are presented in the financial statements of the Holding      Companies as at the effective date, and the plus or minus (as the case may      be) the increase or decrease, respectively, in the Seller’s proportionate      share (according to its percentage holdings in the Holding Company) in the      difference between the total assets of one of the Holding Companies      (excluding the Real Estate Property) as at the effective date and the      total liabilities of each of the Holding Companies as at the effective      date, as against the difference specified in Appendix      C to this Agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.4 | “The agreements” –      contractual engagements between the Seller and third parties in connection      with the Real Estate Properties and/or the Shares Transferred, including      leasehold agreements and/or lease agreements and/or co-ownership      agreements and/or purchase agreements and/or management agreements and/or      any other agreement between the Seller and any third party in connection      with the Real Estate Properties and/or the Shares Transferred, including      and without derogating from the generality of the foregoing, the finance      agreement between the Seller and the bank / the financial entity which is      providing the finance in connection with the financial liabilities      (hereinafter: “the      Finance Agreement”). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.5 | “The effective date” –      March 31, 2009. |
|--------|-----|---------------------------------------------------------------|

----

| 3. | Declarations      and undertakings by theSeller |
|----|-------------------------------------------------|

|   | 3.1 | The      Seller’s rights in each of the Real Estate Properties are as stated      alongside each Real Estate Property in Appendix      A to this Agreement, with it being agreed that in relation to      Property No. 20 (Tel Aviv – Tel Kabir) the contents of Appendix      D to this Agreement willapply. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 | The      Seller is the sole owner of the Shares  Transferred. |
|--------|-----|---------------------------------------------------------------|

|   | 3.3 | Apart      from the properties listed alongside each company in Appendix      A to this Agreement (hereinafter: “the Holding Company’s      Properties”), the liabilities mentioned in the financial statements      that are attached to this Agreement as Appendix      E. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.4 | The      Seller’s rights in Real Estate Properties and in the Shares Transferred      are free and clear of any attachment and/or encumbrance and/or pledge      and/or any other right in favor of a third party, except only encumbrances      that have been created and/or may be created as security for the      liabilities transferred, and which shall continue to remain in force and      be binding on the Buyer in all respects, according to the terms and      conditions of the Financial Liabilities.  The Seller undertakes      that its rights as aforesaid will remain in the condition as described      above until same are registered in the name of the Buyer in the Land      Registry and/or until the transfer thereof into the Buyer’s name in the      relevant register of the companies, as the case may  be. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.5 | The      leasehold contracts between the Seller and the Israel Lands Administration      or the Tel Aviv Municipality, as the case may be, in respect of the Real      Estate Properties that are leased under leasehold to the Seller and/or to      the Holding Companies by the Israel Lands Administration or the Tel Aviv      Municipality, are in force, and the Seller is not aware of any grounds for      the cancellation of any of them. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.6 | Except      for the legal proceedings described in Appendix      F to this Agreement, no legal proceedings are pending against the      Company and/or the Holding Companies in connection with the Real Estate      Properties and/or the Holding Companies’ assets and/or the Shares      Transferred. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.7 | In      relation to the Real Estate Properties and the Holding Companies’ assets      which are not registered in the name of the Seller or the Holding      Companies, as the case may be, the Seller declares that there is no      material impediment to completing registration of the rights in and to the      Properties in the name of the Seller or the Holding Companies, as the case      may be. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.8 | Except      for the Property in Kfar Saba (Property No. 6, to which the provisions of      sub-clause 6.5 below will apply), there are no faults and/or defects      and/or damage in the structural frame of the buildings and/or in the      water-proofing of the buildings which form part of the Real Estate      Properties and/or the Holding Companies’assets. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 3.9 | Subject      to the fulfillment of the conditions precedent, there is no legal,      contractual or other bar or impediment to the Seller entering into this      Agreement and to performance of its obligations pursuant to this Agreement      in full and punctually on due date. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Declarations      and undertakings by theBuyer |
|----|------------------------------------------------|

|   | 4.1 | It      is purchasing the Property Sold in its condition “as is” at the time of      signing of this Agreement, without any representation and/or declaration      by the Seller, including, without limitation, in regard to the condition      of the Real Estate Properties and/or the Holding Companies’ assets and/or      the Shares Transferred from the physical and/or zoning and/or legal aspect      and/or from any other aspect and/or in regard to the value thereof, except      only the Seller’s representations as set forth in Clause 3 above, and the      Seller’s undertaking as set forth below in this  Agreement. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.2 | Subject      to the fulfillment of the conditions precedent, there is no legal,      contractual or other bar or impediment to its enter into this Agreement      and to the performance of its obligations under this Agreement in full and      punctually on due date. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Conditions      precedent |
|----|---------------------------|

|   | 5.1 | This      Agreement and the implementation hereof are contingent upon the      fulfillment of and compliance with the following cumulative conditions      (hereinafter: “the      Conditions Precedent”): |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.1.1 | Receipt      from the Seller’s competent organs of all the resolutions and approvals      that are required for implementation of the transaction that is the      subject matter of this Agreement. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.1.2 | Approval      of the Buyer’s audit committee and its board of directors to      implementation of the transaction that is the subject matter of this      Agreement, including to the terms and conditions of the Finance Agreement      and the conditions of the approval of the tax authorities, as well as      further approval by the Buyer’s general meeting for implementation of the      transaction that is the subject matter of this Agreement, to the extent      that it is specified by the Buyer’s audit committee that such approval is      necessary. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.1.3 | Obtaining      an approval from the Income Tax Commission for effecting the Spin-Off in      accordance with the provisions of this Agreement, to the satisfaction of      the parties (hereinbefore and hereinafter: “the Approval of the Tax      Authorities”). |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 5.1.4 | Fulfillment      of the conditions for the coming into force and implementation of the      lease agreements mentioned in Clause 6.2.2  below. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.2 | If      the Conditions Precedent or any of them are not fulfilled within 6 months      from the date of signing of this Agreement, and the parties have not      agreed on extending the period as stated in sub-clause 5.3 below, this      Agreement will be null and void without this being deemed to be a breach      hereof and without any party having any right to relief as a consequence      thereof. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3 | Notwithstanding      the contents of sub-clause 5.2 above, the board of directors of either of      the parties will be entitled, by way of written notice to the other party,      to extend the period for fulfillment of the Conditions Precedent, each      time for a period of an additional 60 days beyond the last date that was      fixed for fulfillment of the Conditions Precedent prior to the giving of      the notice, but it is agreed that under no circumstances will the period      for fulfillment of the Conditions Precedent be extended beyond a period of      12 months from the date of signing of this  Agreement. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | The      transaction and the effectivedate |
|----|--------------------------------------------|

|   | 6.1 | On      the date of closing, as defined below, the Seller will transfer the      Property Sold to the Buyer and the Buyer will accept same from the Seller,      with effect from the effective date, including in a manner in which with      effect from the effective date, the Seller will assign its rights in the      Properties transferred to the Buyer, including its rights pursuant to the      Agreement and its rights in connection with the shareholders’ loans that      were provided by the Seller to the Holding Company (including in a manner      in which the obligation of the Holding Company for payment of the      shareholders’ loan, in accordance with the conditions thereof, will apply      in full vis-à-vis      the Buyer), and the Seller will assign the liabilities transferred to the      Buyer, including in a manner in which all the income and expenditure in      respect of the Property Sold shall be borne and paid by the Buyer, with      effect from the effective date.  Included in the foregoing it is      agreed that (a) guarantees and collateral security that were given to the      Seller, if given, in the framework of any of the Agreements, will be      endorsed into the name of the Buyer and/or will be held by the Seller in      trust for the Buyer; (b) the Buyer will take upon itself all the Seller’s      rights and obligations under co-ownership agreements to which the Seller      is a party in relation to any of the Real Estate Properties, and to the      extent necessary the Buyer will sign such co-ownership agreements in place      of the Seller; (c) the encumbrances mentioned in Clause 3.4 shall continue      to remain in force and shall be binding on the Buyer, for all intents and      purposes, according to the conditions of the financial liabilities, on a      basis that the Buyer will take action for completing registration of the      aforesaid encumbrances, in accordance with and subject to the conditions      of the financial liabilities (including the terms and conditions of the      Finance Agreement). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 6.2 | If      one of the parties should bear any payment and/or receive any income in      connection with the Property Sold beyond its entitlement or its      obligation, as the case may be, in accordance with the provisions of this      sub-clause 6.1 above, then the parties shall do an accounting between      them, in a manner whereby each party will bear expenses and will receive      income according to the provisions of this sub-clause 6.1      above.  Included in the contents of sub-clause 6.1 above it is      agreed between the parties asfollows: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6.2.1 | In      relation to assets (or part thereof) forming part of the Real Estate      Properties that are leased to third parties, it is agreed that all the      Seller’s rights and obligations under the lease agreements will be      assigned in favor of the Buyer, with effect from the effective date, in a      manner whereby the Buyer will be entitled and will be obliged vis-à-vis such third      parties, with effect from the effective date onwards, for everything      connected with the lease agreements.  For the removal of doubt      it is clarified that at the latest with effect from the effective date all      the existing lease agreements between the Seller and Blue Square Israel      Ltd. or Blue Square Chain (Hyper Hyper) Ltd. in relation to any of the      Real Estate Properties will be cancelled and in their place the lease      agreement between the Seller and the Buyer as set forth in sub-clause      6.2.2 below shall come into force with respect to such    assets. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 6.2.2 | In      relation to properties forming part of the Real Estate Properties (or part      thereof) in which the Seller makes self-use (including Real Estate      Properties the use of which was transferred to the Seller by Blue Square      Israel Ltd. or the Blue Square (Hyper Hyper) Chain Ltd. and also in      relation to the property held by Hyper Lod Center Ltd. (hereinafter: “Hyper Lod”) – it is      agreed that these properties will be leased to the Seller by the Buyer or      by Hyper Lod, as the case may be, with effect from the date of closing      onwards, in accordance with the conditions of lease as will be set forth      in lease agreements that have been signed or may be signed between the      Seller and the Buyer and between the Seller and Hyper Lod, and which will      come into force on the date of closing as stated in sub-clause 9.1      below. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6.3 | If      the consent of third parties is required for the transfer of the Property      Sold and/or any part thereof, then the Seller undertakes to act diligently      and continuously in order to obtain the consent of such third parties,      until the aforesaid consents are obtained and transfer of the Property      Sold to the Buyer is completed, and the Seller declares and undertakes      that there is no impediment to obtaining all the consents that are      required from third parties for purposes of transferring the Property Sold      to the Buyer.  In a situation in which consent of any third      party is required for the transfer of a right or obligation being      transferred and such consent has not been obtained (hereinafter: “Property the Transfer of which      Requires Consent”) the Seller will continue performing the      contractual arrangement in trust for the Buyer until the transfer is      completed, including on a basis that the income and expenditure in respect      of the Property the Transfer of which Requires Consent will be attributed      to the Buyer, so that receipts that are received by the Seller in respect      of such properties will be transferred to the Buyer, while expenses in      respect of such properties will be paid by the Buyer.  It is      agreed that in a case in which it becomes apparent that notwithstanding      the Seller’s representation as set forth above in this sub-clause, there      is an impediment to obtaining the consent of any third party, the      provisions of sub-clause 10.2 of this Agreement will apply to the      matter. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6.4 | It      is agreed that consent fees and/or capitalization fees to the Israel Lands      Administration and/or to the Tel Aviv Municipality, to the extent that      same apply, and in respect of which a deduction was made from the value of      the Real Estate Properties and/or the Shares Transferred in the scope of      assessing the value that was made for purposes of the transaction that is      the subject matter of this Agreement, shall be borne and paid by the      Buyer.  If it should transpire that in respect of any of the      Real Estate Properties and/or the holding companies’ assets capitalization      fees and/or consent fees to the Israel Lands Administration and/or to the      Tel Aviv Municipality apply, the payment of which is required for purposes      of transferring the rights in the Property Sold into the name of the      Buyer, and which were not deducted in the scope of the assessments of      value referred to above, then such payment shall be borne and paid by the      Seller. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 6.5 | It      is agreed between the parties that payments and/or expenses that may be      demanded for purposes of repairing defects and/or faults and/or the      existing damage in the structural frame of the building in Kfar Saba shall      be borne by the Seller and the Buyer in equal  shares. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Registration      of the rights in the Buyer’sname |
|----|----------------------------------------------------------|

|   | 7.1 | The      parties will act in cooperation until completion of registration in the      name of the Buyer of the transfer of the Seller’s rights in the Real      Estate Properties and in the Shares Transferred, which shall include the      parties signing any deed and/or application and/or any other document that      may be required for purposes of completing the registration as      aforesaid.  Included in the foregoing, the Seller undertakes to      furnish any document required from the Seller and to take any action      (including legal proceedings) that may be required from the Seller and to      bear all the expenses connected with furnishing of documents and/or taking      of actions as aforesaid, in order to facilitate execution of the      registration as aforesaid.  It is agreed that the Buyer shall      bear all the costs and fees connected with registration of the rights in      the Buyer’s name. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.2 | Commencing      from the date of closing, the Buyer will be entitled to register a caveat in its favor in      the Land Registry with respect to the Real Estate Properties, to the      extent that this is possible.  It is further agreed, that in      relation to properties in respect of which it is not possible to register      a caveat as      aforesaid, the Buyer will be entitled, after the date of closing,      and  to the extent that this is possible, to register a pledge      in its favor over the Seller’s contractual rights, which shall remain in      force until completion of registration of the rights in the Buyer’s      name. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.3 | It      is agreed that if attachments and/or encumbrances exist and/or are imposed      on any of the Real Estate Properties and/or the Shares Transferred the      origin of which is connected with the Seller, apart from the encumbrances      for securing the liabilities transfers that are mentioned in Clause 3.4      above, the Seller undertakes to take steps for the removal of such      attachments and/or encumbrances, including in a manner that will      facilitate completion of registration of the transfer of rights from the      Seller to the Buyer. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | Transfer      without consideration |
|----|-------------------------------------|

----

| 9. | The      closing |
|----|------------------|

|   | 9.1 | Within      14 days from the date on which the Conditions Precedent are fulfilled      (hereinbefore and hereinafter: “the Date of Closing”),      after the parties have verified that all the Conditions Precedent have      been fulfilled to their satisfaction, the parties shall perform all the      following acts at one and the same time and will complete the transaction      that is the subject matter of this Agreement, with effect from the      effective date, as follows: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.1 | Possession      of the properties transferred shall be delivered by the Seller to the      Buyer (subject to the lease agreements mentioned in sub-clause 6.2      above). |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.2 | The      Seller and the Buyer shall sign a share transfer deed in respect of the      Shares Transferred. |
|--------|-------|-----------------------------------------------------------------------------------------------------------|

|   | 9.1.3 | The      Seller’s rights arising from the shareholders loans that were provided by      the Seller to the holding company shall be assigned to the      Buyer. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.4 | The      Seller shall lodge with the Buyer an irrevocable notarial power of      attorney in two copies in favor of the Buyer, which enables the Buyer to      perform any act in connection with the Real Estate Properties and/or the      Property Sold, including the transfer of rights in the Real Estate      Properties and the Shares Transferred into the name of the      Buyer. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.5 | The      lease agreement between the Seller and the Buyer in relation to the      Properties forming part of the Real Estate Properties that will be let to      the Seller by the Buyer as stated in sub-clause 6.2.2 above shall come      into force. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.6 | The      lease agreement between Hyper Lod and the Seller in relation to Property      No. 7 will be cancelled, and the new lease agreement between the Seller      and Hyper Lod Center (as referred to in sub-clause 6.2.2 above) shall come      into force. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.7 | The      parties shall sign all the documents required for purposes of the transfer      / assignment of the liabilities being transferred to the Buyer, in      accordance with the terms and conditions of this  Agreement. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.8 | The      parties shall sign any document and shall perform any act that may be      required for purposes of completing the transaction that is the subject      matter of this Agreement. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10. | Liability      and indemnity |
|-----|------------------------------|

|  | 10.1 | All      responsibility and/or liability according to law and/or agreement vis-à-vis any person      and/or any body (including authorities and/or other third parties) in      connection with the use of the Real Estate Properties and/or the Holding      Companies’ assets and/or the Property Sold and/or acts or omissions in      connection with the Real Estate Properties and/or the Holding Companies’      assets and/or the Property Sold, the origin and/or the cause of action      and/or the facts which found same pertain to the period prior to the      effective date or relate to the aforesaid period (whether or not legal      proceedings were instituted in respect thereof as at the date of signing      of this Agreement, including as described in the representations to this      Agreement) shall be borne by the Seller to the exclusion of responsibility      for the Buyer.  The Seller shall indemnify the Buyer in respect      of any damage or expense that may be incurred by it, as a result of a      claim or demand in connection with the Property Sold and the      responsibility for which is imposed on the Seller in accordance with the      foregoing in this clause, provided that the Buyer has notified the Seller      about any demand and/or claim which was instituted or made against it in      connection therewith, within a reasonable period of time from the date of      receipt thereof, and has enabled the Seller to defend such demand or      claim.  It is further agreed that the Buyer will not be entitled      to make a compromise in connection with any such demand or claim, except      subject to receiving the Seller’s prior written  consent. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.2 | Without      derogating from the provisions of Clause 10.1 above, it is agreed that if      during a period of 24 months commencing from the Date of Closing, it      transpires that any of the Seller’s representations in Clause 3 above is      incorrect and/or inaccurate (hereinafter: “Non-Conformity”), on a      basis that had it been aware of the aforesaid Non-Conformity at the time      of signing of this Agreement, this would have had the effect of reducing      the value of any of the Real Estate Properties and/or the Shares      Transferred as same were valued in the appraisals of value that were done      immediately prior to the signing of this Agreement (hereinafter: “the Appraisals of      Value”), then and in that event, without derogating from any remedy      available to the Buyer according to any law, the Seller undertakes to      indemnify the Buyer in respect of the difference (in nominal values)      between the value of the Real Estate Properties and/or the Shares      Transferred, as the case may be, which was fixed for purposes of this      Agreement as stated in the Appendix      G to this Agreement, and the value of the Real Estate Properties      and/or the Shares Transferred (as the case may be) as at the date of the      Appraisals of Value, had the Non-Conformity been known at the time of the      Appraisals of Value. |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 10.3 | It      is further agreed, without derogating from the provisions of sub-clauses      10.1-10.2 above, that since for purposes of drawing up the appraisals of      value for purposes of the transaction that is the subject matter of this      Agreement, data and/or information and/or documents were delivered by the      Seller to the appraiser, O. Haushner Civil Engineering and Real Estate      Appraisal Ltd. and/or Haushner & Co. and/or Oded Haushner      (hereinafter: “the      Appraiser”), and since the Buyer undertook to indemnify the      Appraiser in respect of a claim in connection with the opinion resulting      from data that was supplied to the Appraiser and which turn out to be      incorrect and/or materially inaccurate, the Seller undertakes that if the      Buyer is called upon to pay the Appraiser any amount by virtue of the      aforesaid undertaking for indemnity, the Seller will then indemnify the      Buyer, on a back-to-back basis, in respect of any such      payment. |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.4 | Commencing      from the effective date the Buyer will own all the rights and obligations      in respect of the property sold and will bear all responsibility and/or      liability to any person and/or body, including to various administrative      authorities, in connection with the property sold, the origin of which      and/or the cause of action and/or the facts which serve as a basis for      them pertain to any date subsequent to the effective date – will be borne      by the Buyer alone.  The Buyer will indemnify the Seller in      respect of any damage or expense that it may incur, as a result of a claim      or demand in connection with the property sold the responsibility for      which is imposed on the Buyer in accordance with the foregoing, provided      that such indemnity shall be given subject to the condition that the      Seller has notified the Buyer about any amount and/or claim that was      instituted or made against it in connection therewith, within a reasonable      period of time from the time of receipt thereof, and has enabled the Buyer      to defend against it.  It is further agreed that the Seller will      not be entitled to make a compromise in connection with any such demand or      claim, except subject to receiving the Buyer’s prior written      consent. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | Taxes |
|-----|-------|

|  | 11.1 | The      parties are aware that a request has been made to the tax authorities in      connection with the implementation of the transaction that is the subject      matter of this Agreement for obtaining an approval from the tax      authorities to the effect that the property sold will be transferred from      the Seller to the Buyer in accordance with Section 105I of the Income Tax      Ordinance, and on conditions that will be specified in the aforesaid      approval of the tax authorities.  The parties agree that with      regard to tax payments the following provisions will apply between      them: |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 11.2 | The      Seller shall bear the payment of any tax or levy, if and to the extent      that same apply to it, in its capacity as seller of the Property Sold, by      virtue of the provisions of any law in respect of any transfer of a right      in the Real Estate that is the subject matter of this Agreement (except      consent fees and/or capitalization fees which are imposed on the Buyer in      accordance with the provisions of sub-clause 6.4 above).  In      addition, it is agreed by the parties that the Seller will bear a      betterment levy as referred to in sub-clause 11.5 below (subject to the      contents of sub-clause 11.6 below). |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.3 | The      Buyer shall bear the payment of Land Acquisition Tax (at a rate of 0.5%)      and the payment of any tax or levy, if and to the extent that same is      imposed on it, in its capacity as purchaser of the property sold, by      virtue of provisions of any law in respect of any acquisition of a right      in the Real Estate that is the subject matter of this      Agreement. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.4 | All      the taxes, rates, fees, levies, and current payments which applied and/or      apply and exist and/or which may apply in connection with the Real Estate      Properties and/or the Holding Companies’ assets, whether or not the      payment thereof has been demanded, including debts to property tax, if      any, in relation to any period up to the effective date, shall be borne by      the Seller, and from the effective date onwards the payments mentioned in      this clause shall be borne by theBuyer. |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.5 | A      betterment levy which applies and/or which may apply in respect of a plan      (including a concession, permit for exceptional use and so forth) which      was approved in relation to any of the Real Estate Properties and/or the      Holding Companies’ assets before December 31, 2008, shall be borne and      paid by the Seller.  A betterment levy which applies and/or      which may apply in respect of a plan (including a concession, permit for      exceptional use and so forth) which was approved in relation to any of the      Real Estate Properties and/or the Holding Companies’ assets after December      31, 2008, shall be borne by theBuyer. |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.6 | Notwithstanding      the contents of sub-clauses 11.4-11.5 above, it is agreed that betterment      levies and past fees levies in respect of which a deduction was made from      the value of the Real Estate Properties and/or the Shares Transferred in      the framework of the appraisals of value – shall be borne and paid by the      Buyer. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | 11.7 | It      is agreed between the parties that in connection with (1) Land      Appreciation Tax and/or capital gains tax payments in respect of the      difference between the value of the assets being transferred to the Buyer      and the value of the assets that are being transferred for tax purposes,      as at the effective date, which shall be borne by the Buyer at the time of      the sale and/or realization of any of the transferred assets and (2) the      depreciation element in respect of the difference between the value of the      assets being transferred to the Buyer and the value of the assets being      transferred for tax purposes as at the effective date – the compensation      and indemnity mechanism described in Appendix      H to this Agreement (which shall be signed and attached to this      Agreement after receipt of the approval of the tax authorities) will apply      between the parties in a manner that will place the Buyer in the same      position with regard to the abovementioned elements as the position in      which it would have been had the fair value of the Properties Transferred      been recognized as cost for tax purposes in the case of the      Buyer. |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12. | Arbitration |
|-----|-------------|

|  | 12.1 | Any      differences of opinion that may arise between the parties, inter alia in      connection with and/or relating to this Agreement and/or in connection      with any of the provisions hereof and/or in connection with the      performance and/or the breach hereof, if any, shall be referred for the      decision of an arbitrator who shall be appointed by the parties by      consensus agreement and in the absence of agreement, the arbitrator will      be appointed by the legal advisor of Blue Square Israel    Ltd. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.2 | The      arbitrator shall adjudicate on the aforesaid differences of opinion or any      of them after having been requested to do so by way of written notice      signed by either of the parties to this  Agreement. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.3 | The      arbitrator will be bound by the substantive law, but will not be bound by      the rules of evidence and ofprocedure. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------|

|  | 12.4 | This      clause constitutes a valid arbitration agreement within the meaning      thereof in the Arbitration Law,5728-1968. |
|--|------|------------------------------------------------------------------------------------------------------------------------------|

| 13. | Miscellaneous |
|-----|---------------|

|  | 13.1 | This      Agreement does not constitute an agreement in favor of a third      party. |
|--|------|--------------------------------------------------------------------------------------|

|  | 13.2 | The      expenses of the transaction that is the subject matter of this Agreement      shall be borne by the Seller and the Buyer in equal shares, with it being      agreed that the Buyer will bear the fees of the appraiser and in addition      will bear part of the total other expenses of the transaction (in respect      of attorney’s fees, payments to consultants and so forth) so that the      aggregate amount of the expenses of the transaction that will be paid by      the Buyer (in respect of the appraiser’s fees and in respect of the other      expenses) will stand at one-half of the total expenses of the transaction      that is the subject of thisAgreement. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | 13.3 | No      alteration, amendment and/or addition to this Agreement will be of any      validity and same will be deemed not to have been made, unless drawn up in      writing and signed by all the parties to this  Contract. |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.4 | The      parties mutually agree to sign any deed and document and to furnish any      certificate and document that is required for purposes of the actual      implementation of the transaction according to this      Agreement.  For the removal of doubt it is clarified that the      parties will be entitled to extend the validity of any period specified in      this Agreement. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.5 | The      parties shall render reports according to law to the competent authorities      in connection with this transaction and the implementation hereof, to      whatever extent may be required bylaw. |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| /s/ David Wiessman, Ilan    Kliger |   | /s/ David Wiessman, Zeev    Stein |
|------------------------------------|--------|-----------------------------------|
| Blue      Square Chain Properties  |   | Blue      Square Real Estate Ltd. |
| &      Investments Ltd.        |   |                              |

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| Between: | MEGA      RETAIL LTD. |
|----------|-----------------------|

| And: | BLUE      SQUARE REAL ESTATE LTD. |
|------|-----------------------------------|

| And: | BLUE      SQUARE - ISRAEL LTD. |
|------|--------------------------------|

| WHEREAS: | On      March 31, 2009 a Spin-Off Agreement was signed between the Buyer and the      Seller in accordance with Section 105I of the Income Tax Ordinance      (hereinafter: “the      Agreement”); and |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| WHEREAS: | The      parties wish to make certain amendments to the Agreement, inter alia in      accordance with an approval from the tax authorities as has been received      by the parties, all in accordance with and subject to the contents of this      Addendum below; |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1. | The      preamble to this Addendum constitutes an integral part      hereof.  All the terms and expressions in this Addendum will      have the same meaning ascribed to them in the Agreement, unless otherwise      expressly defined in this Addendum. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | In      Clause 2.3 of the Agreement, the passage starting with the words: “The      balance of Financial Liabilities as at the effective date” and ending at      the end of the clause shall be deleted and in place thereof the following      shall be inserted: “The balance of the financial liabilities as at the      effective date shall stand at a sum equivalent to NIS 390 million      (hereinafter: “Amount of      the FinancialLiabilities”)”. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 3. | Clause      2.6 will be added to the Agreement in the following  text: |
|----|------------------------------------------------------------------------|

| 4. | Clause      3.3 of the Agreement shall be replaced by the following text: “Except the      assets listed alongside each company in Appendix      A to this Agreement (hereinafter: “Holding Companies’      Assets”) and the liabilities mentioned in the financial statements      attached to this Agreement as Appendix      E, the Holding Companies do not have any additional material assets      or liabilities”. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | In      Clause 6.1 of the Agreement, after the words “at the date of closing, as      defined below”, the following words shall be added: “and against effecting      of payment of the difference in the consideration as stated in Clause 8.2      below”. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | In      Clause 6.1 of the Agreement, the second paragraph and the third paragraph      shall be deleted, and in their stead the following shall be      inserted: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 7. | Clause      8 of the Agreement shall be replaced by the following  text: |
|----|--------------------------------------------------------------------------|

|   | “8. | Consideration: |
|--------|-----------|----------------|

| 8. | In      Clause 9 of the Agreement sub-clause 9.1.9 in the following text will be      added: “The Difference in the Consideration, as mentioned in Clause 8.1      above, shall be paid to Ribua Israel by the  Buyer”. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | In      Clause 11 of the Agreement sub-clause 11.8 shall be added in the following      text: “For the removal of doubt, it is agreed that in a case in which, for      any reason, any of the conditions and/or restrictions specified in the      approval of the tax authorities are not complied with and/or if the      approval is cancelled, this will not have the effect of derogating from      the validity of the transaction that is the subject matter of this      Agreement, and the provisions of this Clause 11 above will apply as      between the parties in relation to the taxes in respect of the      transaction, where in relation to Land Acquisition Tax it is agreed that      if the rate of Land Acquisition Tax should exceed 0.5%, then the Seller      and the Buyer will bear the surplus Land Acquisition Tax (above 0.5%) as      may be imposed in practice, in equalshares”. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 10. | In      every case of a conflict or non-conformity as between the clauses and      provisions of this Addendum and the clauses and provisions of the      Agreement, the provisions of this Addendum shall  prevail. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | Apart      from provisions and clauses of the Agreement which have been expressly      altered in this Addendum, all the remaining provisions of the Agreement      shall apply in full and shall continue to bind the parties in all      respects. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| /s/      David Weissman, Zeev Stein |   | /s/      David Weissman, Zeev Vurembrand  |
|-------------------------------------|--------|-------------------------------------------|
| Blue      Square Real Estate Ltd.   |   | Mega      Retail Ltd.                     |
|                                |   |                                      |
|                                |   |                                      |
|                                |   | /s/      David Weissman, Zeev Vurembrand  |
|                                |   | Blue      Square  - Israel Ltd. |

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